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ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
financial statements
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Elenia Verkko Oyj Group, Report of the Board of Directors 2025
Elenia Group’s Business Operations
Elenia Verkko Oyj Group (“Elenia or Elenia Verkko Oyj”) consisted
of Elenia Verkko Oyj (the parent company) and its fully owned
subsidiary Elenia Innovations Oy. Elenia Innovations had no busi-
ness in 2025. Elenia Verkko Oyj is a fully-owned subsidiary of
Elenia Oy
Business Review – Network Business
Elenia Verkko Oyj is Finland’s second-largest electricity distribu-
tion system operator (DSO) with a 18 % market share in terms of
total length of the network and 12% market share in terms of the
number of customers. The company has a regional monopoly po-
sition, and it serves all customers in the geographical areas de-
fined in the licence granted by the Energy Authority (EA). The li-
cence holder has the exclusive right to build and operate an elec-
tricity distribution network in its geographical area of responsibil-
ity.
With an electricity network of approximately 77,400 kilome-
tres, Elenia Verkko Oyj supplies electricity to 443,200 end users.
In addition to residential customers, key customer segments in-
clude industrial, service, construction and public sectors. The
company has operations in more than 100 cities and municipali-
ties spanning a geographical area of nearly 600 km in length
across central Finland, from Southern Häme to Northern Ostro-
bothnia.
During the financial year, Elenia’s network business distrib-
uted 5,977 GWh of electricity, compared to 6,142 GWh in the
previous year. The distribution volume declined by 165 GWh (2.7
%). The decline is entirely attributable to the warm winter
weather during the first quarter of 2025.
Revenue from the network business was EUR 346.4 million
(EUR 341.1 million in 2024). Revenue increased by EUR 5.3 mil-
lion (1.5 %) driven by a tariff increase. The EBITDA of the network
business was EUR 222.4 million (EUR 233.4 million in 2024).
EBITDA decreased by EUR 11.0 million (4.7 %). The negative
EBITDA development was driven by the costs related to Storm
Hannes.
In 2025 Elenia suffered from several smaller storms and in-
curred one major power disruption i.e. Storm Hannes (27-28 De-
cember 2025). Storm Hannes caused over 3,000 fault repair tasks
in our network and impacted approximately 150,000 customers.
It caused the most severe damages to our network since 2011. At
the worst moment, there were 76,000 customers without elec-
tricity. The following table shows the number of customers with-
out electricity according to the length of the outage:
Outage length
Number of customers
Less than 6h
90,100
6-12h
23,500
12-24h
18,500
24-48h
9,300
48-72h
3,700
72-120h
3,400
Over 120h
Total
149,400
While most of the customers got power back reasonably
quickly, the longest outages were over a week, which illustrates
the need to still improve security of supply and continue to deploy
capex. The total costs of Storm Hannes are estimated to be over
EUR 15 million, consisting of mandatory customer compensations
of over EUR 8.0 million and with other mainly fault repairing) re-
lated costs of EUR 7.3 million. Additionally, Elenia’s voluntary
compensation for customers for outages over 6 hours amounted
to EUR 0.6 million and it is reflected as a customer rebate reduc-
ing revenues. Storm Hannes is categorised as class 4 storm and
the costs will be treated as exceptional and non-recurring for pur-
poses of calculating EBITDA excluding items affecting compara-
bility as well as in the covenant calculations.
The SAIDI (System Average Interruption Duration Index) was
270 minutes due to the storms (196 minutes in 2024). Excluding
the influence of Hannes storm, the result was an excellent 51
minutes (94 without impact of Storm Jari in 2024). SAIFI (System
Average Interruption Frequency Index) was 2.3 interruptions per
customer and excluding Storm Hannes an excellent 1.6 interrup-
tions per customer. The number of short interruptions (less than
3 minutes) per customer was 2.7 (4.0 in 2024).
The Electricity Market Act (“EMA”) states that 100% of cus-
tomers must be within the scope of the quality requirements by
the end of 2036
. Elenia
is seeking
to achieve this target by in-
creasing the underground cabling rate to 90 % by the end of 2036.
The investment plan of Elenia’s network business is designed to
improve the security of supply via underground cabling. Since
2009, Elenia has built only weatherproof distribution network. At
the end of the year, 66.4 % of Elenia’s network was underground,
compared to 65.1 % at the end of 2024.
At the end of the year, 84.7 % of the customers of Elenia’s net-
work business were within the scope of the quality requirements
stipulated by the EMA. The corresponding figure at the end of
2024 was 83.4%. While the main focus
in the development of the
security of supply is on underground cabling, Elenia also seeks to
improve the security of supply by other means. In 2020, a BESS
was successfully deployed in the Kuru area to provide electricity
to local households in case of an outage. Based on the positive ex-
periences, Elenia has now invested into two additional BESS sys-
tems, which have been successfully commissioned: one has been
1
Pursuant to the EMA, which was amended in 2021, by the end of 2036,
all customers (100%) must be connected to a secure network where out-
ages caused by storms or snow cannot last more than 6 hours in zoned
areas and not more than 36 hours in other areas. For Elenia, 75% of
customers must be connected to a secure network by the end of 2023,
and 100% by the end of 2036. The previous deadline for the quality re-
quirements was the end of 2028, which still applies to some network
companies (whose underground cabling rate was over 60% at the end of
2018).
3
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
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commissioned during 2025 and the other one during January
2026.
In June 2026 Elenia will submit to the EA its statutory net-
work development plan. The previous network development plan
was submitted to the EA in June 2024. The work for finalising the
forecast for capex requirements for 2026-2036 is currently ongo-
ing. In the 2024 network development plan, Elenia’s estimated
capex requirements to replace aging overhead lines and improve
the security of supply exceeds EUR 1,900 million by 2036. Addi-
tionally, green transition related capex was expected to amount
to approximately EUR 500 million by 2036. This capex included
for example the deployment of smart meters, increase of the net-
work capacity to enable connection of wind and solar power and
electrification of transportation, heating and industrial processes.
Exact numbers are not yet available at this stage, however, it is
expected that the capex requirement is somewhat higher than
previously estimated, even though the forecast period is two
years shorter than previously (2026-2036 vs. 2024-2036).
Elenia invested EUR 132.5 million in developing electricity
networks during the financial year. In 2024, the corresponding
amount was EUR 133.9 million. Elenia Verkko Oyj cut its invest-
ments significantly in 2023 as the result of the sudden mid-period
change to the regulatory methods by the EA, and the investments
were maintained at the lower level in 2024 and 2025 due to the
changes to the regulatory methods that the EA made for the sixth
and the seventh regulatory periods. In 2026 Elenia will invest ap-
proximately EUR 130-140 million in line with previous years,
which is approximately EUR 40 million lower than in 2021 and sig-
nificantly lower than required as per the network development
plan.
As part of the 2022 network development plan, Elenia was re-
quired for the first time to organise a public hearing for its cus-
tomers and stakeholders on the network development plan. One
of the findings of the hearing was that 85% of the customers think
that 12 hours is the maximum acceptable outage length, which is
significantly shorter than the 36-hour limit set in EMA for 2036.
The results of the 2024 public hearing were in line with the previ-
ous findings, indicating that the EMA quality requirements set for
2036 are inadequate already now. With the estimated pace of
electrification, it is clear that it would in the best interests of
Elenia’s customers and the entire Finnish society that Elenia is
able to improve security of supply faster and beyond the EMA
quality requirements.
In 2025, 114 MW of new wind power capacity (271 MW in
2024) and 1196 new solar panel installations (2,507 in 2024)
w
ere connected to Elenia's distribution grid. This represents a
capacity increase 34 MW (28 MW in 2024), At the end of 2025,
the wind power capacity connected to Elenia’s network totalled
1631 MW (1517 MW at the end of 2024). At the end of 2025, the
solar power installations connected to Elenia’s network totalled
19,724 (18,514 in 2024) representing generation capacity of 211
MW (178 MW in 2024). The renewable electricity generated to
Elenia’s network totalled 4 295 GWh (3,973 GWh in 2024). In re-
lation to the electricity distributed to Elenia’s customers, the re-
newable production was increased to 72 % (65 % in 2024).
Elenia Verkko Oyj continued to develop its asset management
system in line with the international ISO 55001:2014 standard.
The standard provides a systematic framework for planning, con-
structing, operating, maintaining and repairing the electricity net-
work, ensuring that the network operates reliably, safely and effi-
ciently throughout its lifecycle. Through this framework, Elenia
ensures continuous improvement in network operations and se-
curity of supply, availability of sufficient capacity to meet growing
electricity demand, and high network safety. The standard also
requires suppliers and service providers to commit to responsible
high-quality operations. Certified asset
management system sup-
ports Elenia’s objective of managing its network to responds to
the current and future needs of customers, stakeholders and so-
ciety at large. Elenia Verkko Oyj was recertified in November
2025 by LRQA. New standard version of the ISO 55001 was pub-
lished in 2024. The adoption of the new version has been sched-
uled for spring 2027, and preparatory work is underway.
The EA oversees the operations of Finnish distribution system
operators. The regulation is based on four-year regulatory peri-
ods. The past year was the second year of the sixth regulatory pe-
riod (2024 –2027). Elenia received a new regulatory decision on
29 December 2023 regarding the regulatory methods that are in
force for two consecutive regulatory periods: sixth regulatory pe-
riod from 1 January 2024 until 31 December 2027 and seventh
regulatory period from 1 January 2028 until 31 December 2031.
There were numerous changes in the current regulatory
methods compared to the previously applied methods. The key
changes to the previous methods include freezing of the asset
base to 2022 construction costs and the calculation of industry
wide unit prices. The changes compared to the previous methods
were significant and in Elenia’s view unnecessary, sudden and un-
justified. Elenia, along with almost all other Finnish DSOs, ap-
pealed the methods to the market court. The market court gave
its decision on 24 November 2025 rejecting the appeals. Conse-
quently, Elenia along with almost all other Finnish DSOs, have ap-
pealed to the Supreme Administrative Court in December 2025,
which means that the final outcome of the proceedings will not be
known until in 2027, the earliest.
Concurrently with the court case related to the regulatory
methods for the sixth and the seventh regulatory periods, Elenia
and the other Finnish DSOs have another market court case re-
lated to a sudden mid-period change to the regulatory methods
for 2022 and 2023, which is still pending. The oral hearings for
this case took place in February and March 2026 and a verdict is
expected towards the end of the year 2026. It is also likely that
this ruling will be appealed to Supreme Administrative Court by
either side.
On 28 May 2025, Elenia received a decision from the EA in
connection with the EA’s routine end-of-regulatory-period re-
view, claiming that Elenia has incorrectly treated two items since
the beginning of the previous regulatory period in 2020. These
items were created in connection with the sale of the district
heating business in 2019 and Elenia group's reorganisation in
2020. The decision pertains to the information presented in the
differentiated accounts, which is a note to the financial state-
ments. Furthermore, it was EA’s view that these items have af-
fected the reasonable return of Elenia Verkko Oyj for 2020-2023,
and the EA is making necessary amendments to the said reasona-
ble return calculations. Elenia does not agree with the EA’s view
and has appealed to the market court. Currently, the timetable for
the market court process is unclear, but Elenia does not expect a
verdict before 2027, which can still be subject to an appeal to the
Supreme Administrative Court, which means that the final out-
come might not be known before 2029.
The EA’s decision on differentiated accounts, if it stands, is ex-
pected to negatively impact Elenia's regulatory asset base and
reasonable return. The effect of the decision would be that Eleni-
a's cumulative regulatory position at the end of the previous reg-
ulatory period might change from a deficit to a surplus, hence pos-
sibly necessitating the offsetting of any regulatory surplus during
the current regulatory period ending in 2027. The decision has a
limited impact on Elenia's regulatory accounts beyond 2027.
The impact of the decision on Elenia is highly dependent on
the outcome of the industry-wide ongoing in-court processes
with regards to both the 5th regulatory period (2020-2023) and
the current 6th and 7th regulatory periods (2024-2031), as well
as any mitigative actions that might be implemented. If Elenia is
unsuccessful in all of these actions, or in the appeal of the actual
decision, it may need to implement measures to offset its surplus,
such as providing temporary rebates to customers for a limited
time in the remainder of the current regulatory period (2024-
2027). The impact of such temporary measures, if implemented,
4
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
financial statements
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could have a material adverse effect on Elenia's earnings during
the limited time when such temporary measures are applicable,
but will not impact, for example, Elenia's ability to carry out
planned capex. If such temporary measures are implemented,
Elenia expects that they will be treated as an exceptional and non-
recurring item in the financial statements.
In 2025, the reasonable rate of return was 7.20 % (7.37 % for
2024) and for 2026 the EA has confirmed that the reasonable rate
of return is 6.87
%. The EA has updated several of the WACC pa-
rameters including risk-free rate, debt premium, asset beta and
capital structure assumptions. Risk-free rate is updated every
year, but the others are updated every two years and will be valid
for 2026 and 2027.
Financing
Elenia Group’s financing activities are centralised into Elenia
Verkko Oyj. In February 2025, Elenia entered into a EUR 100 mil-
lion loan agreement with the Nordic Investment Bank. The loan is
used to finance part of Elenia’s investment programme designed
to improve the security of supply and enable green transition. The
loan has been fully drawn.
Elenia Verkko Oyj has entered as a creditor into an intra-
group a EUR 25 million promissory note with Elenia Group Oy.
The promissory note has final maturity at 31 December 2033 and
it carries a coupon of 4.5%. The note has been drawn in full.
In October, Elenia Verkko Oyj returned to the Eurobond mar-
ket with a EUR 500 million issuance under its EMTN program af-
ter over five years of hiatus. The bond is listed at Euronext Dublin
and carries a coupon of 3.375 % with the final maturity in June
2033. The issue was very well received; it was oversubscribed al-
most 4 times and finally priced at 103 bps over midswaps. The is-
suance was the first under Elenia’s Green Finance Framework
that was published in May 2025. The Green Finance Framework
is
aligned both with EU’s Green Bond Standards (“EU GBS”) as
well as with ICMA’s Green Bond Principles. Elenia was the first
corporate issuer in the Nordics to publish a green finance frame-
work aligned with EU’s GBS and the first Nordic DSO to issue
bonds under EU GBS.
In the future, Elenia expects to be a repeat issuer with EUR
500 million benchmark-sized issues to finance capex and re-
finance maturing debt. At the same time with the new issuance,
Elenia tendered EUR 250 million of a bond maturing in February
2027. Following a tender in January 2026 of EUR 117.8 million of
bonds maturing in July 2026, next upcoming maturities are EUR
22.2 million of bonds maturing in July 2026 and the remaining
EUR 250 million of the bond maturing in February 2027.
As a result of the new issuance, the Group’s solvency and li-
quidity was very strong. At the end of the financial year, cash and
cash equivalents amounted to EUR 288.7 million (EUR 42.7 mil-
lion at the end of 2024).
Starting from the most recent issuance, bonds issued by Elenia
Verkko Oyj will be listed at Euronext Dublin at the Irish Stock Ex-
change. Previously issued bonds are listed at the London Stock
Exchange and until further notice Elenia has bonds listed at both
exchanges. The bonds and notes issued by Elenia Verkko Oyj have
a BBB (Stable) issue rating from S&P Global Ratings.
The Group’s credit facilities consist of a EUR 250 million
Capex Facility, a EUR 50 million Working Capital Facility and a
EUR 70 million Liquidity Facility that were renewed in 2023 and
extended by another year in 2025 utilising the last extension op-
tion. The first two facilities mature in May 2030. These facilities
also have a sustainability linkage, meaning that Elenia’s perfor-
mance on LTIF, SAIDI and CO
2
mine the margin that Elenia pays on these facilities. The five-year
Liquidity Facility matures in May 2030, and it is renewed annually.
All the credit facilities were entirely undrawn at the end of 2025
(as was the case at the end of 2024).
Elenia Group has two financial covenants in its financing
agreements: Interest Coverage Ratio (ICR) and Leverage Ratio
(LR). For each relevant period until 31 December 2027 (“the First
Ratio Adjustment period”), the trigger event ratio levels are
1.46x for ICR and 10.18x for LR and the default ratios are 0.96x
for ICR and 11.33x for LR. At the end of 2025, the ICR and LR were
4.56 and 8.28, respectively. At end of 2024, the corresponding
levels were 4.59x and 8.15x. Elenia Group is in compliance with
the financial covenants. Elenia always retains adequate head-
room to both financial covenants on a historical and forward-
looking basis.
Employees
Elenia Verkko Oyj number of employees increased slightly in
2025.
31 Dec 2025
31 Dec 2024
Elenia Verkko
Oyj
80
77
At the year-end, the total FTE of Elenia Verkko Oyj was 80
(77
in 2024). However, the total employment impact of the Group and
its external subcontractor’s network is approximately 1,000 peo-
ple.
In 2025, we continued the safety TUISKU project, which was
originally launched in 2022 to promote and improve safety cul-
ture in cooperation with our partners. We have also continued to
run the safety academy, which further strengthens and deepens
the safety behaviour and activities of our personnel and partners.
We continued to systematically develop our people’s compe-
tencies and training as the ongoing energy transition changes in
job demands. At the end of the year, we launched the fourth Ex-
pert Academy training program together with Aalto University.
The three previous Expert
Academies were organized in 2022-
2024. In 2025, we also invested in increasing leader competence
by launching the Manager Academy in spring 2025.
In addition, we have produced topical Elenia Academy lec-
tures for our personnel on the topics of brain health, resilience
and Building Peace – globally and in everyday life. We take diver-
sity into account in our recruitment. In our collaboration with ed-
ucational institutions, we emphasize active dialogue and collabo-
ration to address the
competence challenges of the future work-
force. We offer students internship and thesis opportunities
throughout the year.
For more information on Elenia’s personnel, please see our
sustainability report at
www.elenia.com
.
Acquisitions and Divestments
There were no acquisitions or divestments during the financial
year.
Corporate Governance
Elenia Verkko Oyj’s Board of Directors has five members: Jorma
Myllymäki (Chairman of the Board), Ville Sihvola, Jarkko Kohtala,
Tommi Valento and Anne-Marie Malmberg. There were no
c
hanges to the board during the fiscal year. The Board of
2
nanciers are parties to these agreements. These documents are the Com-
mon Terms Agreement (CTA), the Security Trust and Intercreditor Deed
(STID) and the Master Definitions Agreement (MDA). In 2018, the trigger
event and event of default levels for both ICR and LR were amended in
accordance with the requirements of the Common Terms Agreement
(CTA) to mitigate the impact of the IFRS 15 standard, which became effec-
tive on 1 January 2018 obliging Elenia to change the revenue recognition
of connection charges. The change affected only figures such as EBITDA
that are reported in accordance with IFRS, it had no impact on FAS, taxes,
cash flows or regulatory accounting.
5
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
financial statements
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Directors made 10 written resolutions during the financial year,
and no meetings were held.
Auditor
Elenia Oy’s auditor is Ernst & Young Oy, with Miikka Hietala, Au-
thorised Public Accountant, as the auditor with principal respon-
sibility.
Shares
Elenia Verkko Oyj has ninety (90) outstanding shares. Each share
entitles the holder to one vote at the Annual General Meeting and
carries equal rights to dividends.
Sustainability
Please see Elenia’s sustainability report at
www.elenia.com
.
Risk Management
Please see Elenia’s sustainability report at
www.elenia.com
.
Cyber Security and IT
In 2025, the pressure to further develop electricity network ca-
pacity and reliability, as well as to increase demand flexibility by
digital solutions was high on Elenia’s digital agenda. The key
driver for this development was growth in the Finnish electricity
use, especially in industrial scale electrification.
Nationally, Elenia has been closely involved in the technical
specification of the Finnish national flexibility market digital plat-
form. Internally, the new generation smart meter roll-out was
completed, providing near real-time data directly from each point
of electricity consumption. During 2025, this data was already
utilized in enhanced network operations, for example to further
automate processes. On-going development projects focus
mostly on improving advanced predictive network load estimates
and scenarios.
During the year, several Artificial Intelligence pilots were car-
ried out and especially Large Language Model -based solutions
are now already widely in use. Customer services, both front-end
and back-end are important focus areas in this development.
Cyber security continued to be a focal topic covering all digital
solutions. Elenia participated in both Finnish national, interna-
tional, and internally organized cyber security exercises and also
renewed ISO/IEC 27001 certificate for information security man-
agement. Elenia maintained close co-operation with the Finnish
National Cyber Security Centre as well as with other DSOs.
Significant events after the Balance Sheet Date
In January, Elenia Verkko Oyj purchased in open market transac-
tions an aggregate of EUR 117.8 million (in principal amount) of
its 3.038 % fixed rate bonds due 2 July 2026 and cancelled them.
Following the purchases and cancellation of the bonds, the out-
standing principal amount of the bonds due 2 July is EUR 2.2 mil-
lion.
On 3 March, Fitch Ratings assigned Elenia Verkko Oyj a senior
secured debt rating of BBB with stable outlook. Elenia Verkko
Oyj’s bond and notes now hold BBB rating with stable outlook
from both Fitch Ratings and S&P Global Ratings.
Outlook
Electrification and green transition will continue in Finland and in
Elenia’s network. Elenia expects to connect more renewable en-
ergy to its network in 2026. Also, the number of batteries con-
nected to Elenia’s network is expected to increase in 2026 both at
the industrial as well as consumer level. Elenia will continue to roll
out its capex program albeit at a slower pace than previously en-
visaged. The network capex is estimated to be approximately EUR
136 million in 2026. Elenia will conduct a public hearing in May
2026 and submit its revised network development plan to the EA
in June 2026.
The Board of Directors’ Proposal for Profit-related
Measures
The Board of Directors proposes no dividend to be distributed.
6
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
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financial statements
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CONSOLIDATED FINANCIAL STATEMENTS
2025
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
for the year ended 31 December 2025
Consolidated statement
EUR 1,000
Note
1 Jan - 31 Dec 2025
1 Jan - 31 Dec 2024
Revenue
2.1.1
Other operating income
2.2.1
Materials and services
-82 619
-69 792
Employee benefit expenses
2.3.3
-4 165
-4 213
Depreciation, amortisation and impairment
3
-102 592
-97 771
Other operating expenses
2.3.1
-37 274
-33 909
Operating profit
Finance income
Finance costs
-56 387
-52 917
Finance income and costs
4.1
-46 056
-50 771
Profit before tax
Income tax
6.1.1
-18 148
-20 817
Profit for the year
CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
for the year ended 31 December 2025
EUR 1,000
1 Jan - 31 Dec 2025
1 Jan - 31 Dec 2024
Profit for the year
Other comprehensive income
Other comprehensive income not to be reclassified to
profit or loss in subsequent years:
Re-measurement gains on defined benefit plans
-8
Income tax effect
-13
Other comprehensive income / (loss) for the year after tax
-7
Total comprehensive profit for the year
The accompanying notes are an integral part of these con-
solidated financial statements.
7
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
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financial statements
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CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
as at 31 December 2025
Consolidated statement
of financial position
EUR 1,000
Note
31 Dec 2025
31 Dec 2024
Assets
Non-current assets
Property, plant and equipment
3.1
Goodwill
3.2
Intangible assets
3.2
Right-of-use assets
3.1, 3.3
Other non-current financial assets
Other non-current receivables
Deferred tax assets
6.1.2
Total non-current assets
Current assets
Trade receivables
2.1.4
Other current receivables
2.1.4
Cash and cash equivalents
Total current assets
Total assets
EUR 1,000
Note
31 Dec 2025
31 Dec 2024
Equity and liabilities
Equity
Share capital
4.4
Unrestricted equity
4.4
-747 816
-605 396
Retained earnings
4.4
Total equity
-75 463
-573
Non-current liabilities
Loans from financial institutions
4.2
Bonds and notes
4.2
Lease liabilities
3.3
Employee benefit liability
6.2
Provisions
2.3.4
Liabilities related to contracts with customers
2.1.3
Deferred tax liabilities
6.1.2
Total non-current liabilities
Current liabilities
Bonds and notes
4.2
Lease liabilities
2.3.2, 3.3
Trade payables
2.3.2
Liabilities related to contracts with customers
2.1.3
Other current liabilities
2.3.2
Total current liabilities
Total equity and liabilities
The accompanying notes are an integral part of these consolidated financial statements.
8
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financial statements
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CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 December 2025
Consolidated statement
of cash flows
1 000 EUR
1 Jan - 31 Dec
2025
1 Jan - 31 Dec
2024
Operating activities
Profit for the year
Adjustments to reconcile profit to net cash flows
Depreciation, amortisation and impairment
Gains and losses on the disposal of non -current assets
-232
-63
Finance income
-10 331
-2 146
Finance costs
Taxes
Other adjustments
-17
-33
Working capital adjustments
Increase (+) / decrease (-) in trade and other current liabilities
Increase (-) / decrease (+) in trade and other current receivables
-2 655
Increase (+) / decrease (-) in provisions
-196
Interests received
Interest and financial expenses paid
-51 484
-51 552
Interest paid on lease liabilities
-8
-12
Taxes paid
-2 507
-2 506
Net cash flows from operating activities
1 000 EUR
1 Jan - 31 Dec
2025
1 Jan - 31 Dec
2024
Investing activities
Capital expenditure
-130 067
-129 948
Changes in investments
Loans granted
-25 000
Net cash flows used in investing activities
-154 832
-129 798
Financing activities
Proceeds from long-term borrowings
Repayment of long-term borrowings
-244 520
Equity repayment
-142 420
-100 000
Repayment of lease liabilities
-257
-234
Group contributions received
Net cash flows from financing activities
-82 898
Net increase in cash and cash equivalents
-17 416
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December
Cash and cash equivalents comprise of cash balance at bank accounts.
The accompanying notes are an integral part of these consolidated financial statements.
9
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Consolidated statement
of changes in equity
for the year ended 31 December 2025
Unrestricted equity
EUR 1,000
Share capital
Reserve for invested unre-
stricted equity
Common control reserve
Retained earnings
Total equity
Equity at 1 January 2025
-2 206 243
-573
Profit for the year
Other components of comprehensive income (adjusted by tax effect)
-7
-7
Total comprehensive income for the year
Transactions with shareholders
Group contributions
Return of equity
-142 420
-142 420
Total transactions with shareholders
-142 420
-130 484
Equity at 31 December 2025
-2 206 243
-75 463
for the year ended 31 December 2024
Unrestricted equity
EUR 1,000
Share capital
Reserve for invested unre-
stricted equity
Common control reserve
Retained earnings
Total equity
Equity at 1 January 2024
-2 206 243
-27 051
Profit for the year
Other components of comprehensive income (adjusted by tax effect)
Total comprehensive income for the year
Transactions with shareholders
Group contributions
Return of equity
-56 553
-56 553
Total transactions with shareholders
-56 553
-37 660
Equity at 31 December 2024
-2 206 243
-573
The accompanying notes are an integral part of these consolidated financial statements.
10
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Changes in the equity are explained in more details in Note 4.4.
11
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
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financial statements
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1 GROUP ACCOUNTING POLICIES
1.1 GENERAL INFORMATION
in Tampere. Address is
Elenia Verkko Oyj’s parent company is
, having its
registered office at Patamäenkatu 7, Tampere. The ultimate par-
ent of the Group is
bourg.
The consolidated financial statements of
") are consolidated in the financial
statements of Elenia Oy ("Elenia Group"), available at the follow-
ing address: Patamäenkatu 7, 33900 Tampere. Elenia Group is
the owner and operator of an electricity distribution network
(Elenia Verkko Oyj, ’Elenia Networks’) and it also has a customer
service business, construction business and intercompany ser-
vices (Elenia Oy, ’Elenia Services’).
The Board of Directors approved the consolidated financial
statements on
11 March
2026.
either to approve, reject or change the consolidated financial
statements in the Annual General Meeting.
1.2 BASIS OF PREPARATION
The consolidated financial statements for the year ended 31 De-
c
ember 2025 have been prepared in accordance with the Inter-
national Financial Reporting Standards (IFRS) and their interpre-
tations (IFRIC) approved for application within the European Un-
ion (EU). The consolidated financial statements are compliant
with the provisions of the Finnish Accounting Act and other reg-
ulations governing the preparation of financial statements in Fin-
land.
The consolidated financial statements have been prepared
based on a historical cost. All Group companies use euro (“EUR”)
as their operating currency and all figures are reported in euros.
The consolidated financial statements are presented in thou-
sands of euros. There may be rounding discrepancies in the sum
totals due to the presentation method used.
1.3 CHANGES IN ACCOUNTING POLICIES AND DIS-
CLOSURES
The Group applied for the first-time certain standards and
amendments which are effective for annual periods beginning on
or after 1 January 2025. The nature of each new standard and
amendment adopted by the Group has been described in the rel-
evant note. New standards, amendments and interpretations not
material for the Group have been described in Note 5.
1.4 SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTI-
MATES AND ASSUMPTIONS
The preparation of consolidated financial statements requires
management to make judgements, estimates and assumptions
that affect the reported amounts of assets, liabilities, revenues,
expenses and the accompanying disclosures and the disclosure
of contingent liabilities.
Estimates and assumptions are based on the management’s
best judgement on the reporting date. Estimates are made based
on historical experience and expectations of future events that
are considered probable on the reporting date. However, uncer-
tainty about these assumptions and estimates could result in
Accounting policies
have been described in the
relevant note and can be recognized from char-
acter:
Significant judgements, estimates and assump-
tions made by the Group management
have
been presented in the relevant note and can be
recognized from character:
Risk management principles
have been de-
scribed in the relevant note and can be recog-
nized from character:
outcomes that require an adjustment to the carrying amount of
assets and liabilities affected in future periods. The Group’s sig-
nificant accounting judgements, estimates and assumptions are
described either below or in the relevant notes.
12
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
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financial statements
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1.4.1 Judgements
The preparation of consolidated financial statements requires
management to make judgements in applying the accounting
principles. The significant judgements made by the Group man-
agement have been presented in the relevant note except for the
going concern which is described below.
GOING CONCERN
The consolidated financial statements are prepared on a going
concern basis. The Board of Directors has noted that the Group
made a profit before tax for 2025 of EUR 73 748 thousand and
has a net equity of EUR -75 463 thousands as at 31 Decem-
ber2025.
The Group's management has made an assessment of the
Group's ability to continue as a going concern and is satisfied
that the Group has sufficient resources to continue in business
for the foreseeable future. The management's assessment is ba-
sed on the following:
•
The Group has a €3 billion EMTN (Euro Medium Term
Note) programme listed in Ireland for the issuance of bonds.
As at 31 December 2025, the Group has issued bonds un-
der the programme totalling €1,421 million. In October
2025, Elenia Verkko Oyj issued a €500 million European
green bond maturing in 2033, which attracted strong inves-
tor demand. The debt programme is supported by Elenia
Verkko Oyj’s investment-grade credit rating of BBB with a
stable outlook, assigned by S&P Global Ratings.
•
The Group has sufficient liquidity based on its cash position
and undrawn credit facilities of EUR 370 million from a syn-
dicate of international banks (as fully described in Note
4.2.9).
DIFFERENTIATED ACCOUNTS
On 28 May 2025, Elenia received a decision from the EA in con-
nection with the EA’s routine end-of-regulatory-period review,
claiming that Elenia has incorrectly treated two items since the
beginning of the previous regulatory period in 2020. These items
were created in connection with the sale of the district heating
business in 2019 and Elenia group's reorganisation in 2020. The
decision pertains to the information presented in the differenti-
ated accounts, which is a note to the financial statements. Fur-
thermore, it was EA’s view that these items have affected the
reasonable return of Elenia Verkko Oyj for 2020-2023, and the
EA is making necessary amendments to the said reasonable re-
turn calculations. Elenia does not agree with the EA’s view and
has appealed to the market court. Currently, the timetable for
the market court process is unclear, but Elenia does not expect a
verdict before 2027, which can still be subject to an appeal to the
Supreme Administrative Court, which means that the final out-
come might not be known before 2029.
The EA’s decision on differentiated accounts, if it stands, is
expected to negatively impact Elenia's regulatory asset base and
reasonable return. The effect of the decision would be that Eleni-
a's cumulative regulatory position at the end of the previous reg-
ulatory period might change from a deficit to a surplus, hence
possibly necessitating the offsetting of any regulatory surplus
during the current regulatory period ending in 2027. The deci-
sion has a limited impact on Elenia's regulatory accounts beyond
2027.
The impact of the decision on Elenia is highly dependent on
the outcome of the industry-wide ongoing in-court processes
with regards to both the 5th regulatory period (2020-2023) and
the current 6th and 7th regulatory periods (2024-2031), as well
as any mitigative actions that might be implemented. If Elenia is
unsuccessful in all of these actions, or in the appeal of the actual
decision, it may need to implement measures to offset its sur-
plus, such as providing temporary rebates to customers for a lim-
ited time in the remainder of the current regulatory period
(2024-2027). The impact of such temporary measures, if imple-
mented, could have a material adverse effect on Elenia's earn-
ings during the limited time when such temporary measures are
applicable, but will not impact, for example, Elenia's ability to
carry out planned capex. If such temporary measures are imple-
mented, Elenia expects that they will be treated as an excep-
tional and non-recurring item in the financial statements.
CLIMATE CHANGE
In accordance with the recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD), Elenia’s manage-
ment has assessed the financial risks and opportunities related
to climate change for Elenia’s business. The main risks identified
are related to potential capacity challenges in the electricity net-
work as the green transition advances, regulation related to a
low-carbon economy, and the increasing likelihood of extreme
weather events over the long term. The opportunities, in turn,
relate to the green transition and electrification of society. Elenia
has made significant investments in a smart weatherproof elec-
tricity network during 2021–2025, which helps reduce the po-
tential impacts of extreme weather events on Elenia’s opera-
tions. These investments will continue at least until 2036, in-
creasing the underground cabling rate to approximately 90 per-
cent. Actions to mitigate climate change involve costs for Elenia,
such as purchasing guarantees of origin to cover network losses
and own use, and replacing existing network components con-
taining SF6 gas with new SF6-free technical solutions.
1.4.2 Estimates
Estimates are based on the management’s best judgement on the
reporting date. Estimates are made on the basis of historical ex-
perience and expectations of future events that are considered
probable on the reporting date. However, actual results and tim-
ing may differ from these estimates. The Group’s significant ac-
counting estimates have been described in the relevant note.
13
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
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ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
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2 OPERATING PROFIT
2.1 REVENUE AND TRADE AND OTHER CURRENT
RECEIVABLES
Revenue from the distribution of electricity is recognised at the
time of delivery. Other revenue, for example contracting in-
come is recognised in the period in which such services are ren-
dered.
Connection fees paid by customers for joining an electricity
network are recognised as revenue in the consolidated state-
ment of profit or loss. Until the end of 2017 revenue from new
connections was recognised immediately after signing of the
contract or completion of the physical distribution network
connection. As a result of the implementation of IFRS 15 stand-
ard, from 1 January 2018 onwards the new connection revenue
has been recognised over a period of 30 years for the electricity
network connections. The time period is in line with the depre-
ciation period of the connection assets.
Electricity network connection fees, which have been paid
by the customers before 2008, must be refunded net of demoli-
tion costs, if the customer wants to terminate the electricity
connection. Similar refunding obligation applies to all district
heating connection fees. A provision has been recorded for fu-
ture refunds.
The Group pays to the customers voluntary outage com-
pensations due to interruption of over 6 hours in the electricity
distribution. These compensations are recognised as a reduc-
tion of revenue at a point in time and included in the item
"other revenue" in the disaggregation of revenue -table below.
Outage compensations in accordance with the Electricity Mar-
ket Act, which are paid to the customers due to interruption of
over 12 hours in the electricity distribution, are recognised as
other operating expenses (Note 2.3.1).
Payments from all the Group's contracts with customers
are generally due within 14 days and consideration for services
are paid in cash. Contracts do not have any significant financing
components.
ACCOUNTING POLICY
2.1.1 Contracts with customers: revenue recognition
and payment terms
Group revenue consists of revenue from the distribution of elec-
tricity, connection fees paid by the customers for joining an elec-
tricity network and other revenues consist mainly of contracting
income.
2.1.3 Liabilities related to contracts with customers
EUR 1,000
2025
2024
Non-current liabilities related to contracts with
customers
66 668
56 095
Current liabilities related to contracts with cus-
tomers
2 631
2 184
Total
69 300
58 280
Liabilities related to contracts with customers include the unrec-
ognised part of new connection revenue for the electricity net-
work. Revenue will be recognised over a period of next 30 years
for the electricity network connections. The amount reported as
current liabilities will be recognized during the next 12 months.
2.1.2 Disaggregation of revenue
REVENUE BY TYPE OF SERVICE
EUR 1,000
2025
2024
Distribution of electricity
341 667
336 680
Connection fees
2 386
2 003
Other revenues
524
981
Total
344 576
339 663
TIMING OF REVENUE RECOGNISION
EUR 1,000
2025
2024
Transferrred at a point in time
342 191
337 661
Transferred over time
2 386
2 003
Total
344 576
339 663
15
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
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TRADE RECEIVABLES
Trade receivables are recorded on the balance sheet at their
transaction price. Impairment is recorded on trade receiva-
bles when there is evidence that the Group will not be able
to collect all amounts due according to the original terms of
the agreements. The Group records impairment based on
lifetime expected credit losses from all trade receivables in-
curred as a result of transactions subject to IFRS15. The im-
pairment amount is measured as the difference between the
asset’s original carrying value and the estimated future cash
flows.
Trade receivables also include invoiced sales revenue
based on estimates.
ACCOUNTING POLICY
CREDIT RISK
Invoicing for electricity distribution services is based on
measured consumption and the distribution tariffs specified
in the public electricity network price list.
The invoicing period may be one month or two months.
In the event that a customer fails to pay the invoice, the
electricity distribution company has the right to discontinue
the supply of electricity after sending the required collec-
tion letters. Also, the wide fragmentation of the customer
base reduces the credit risk.
DISTRIBUTION VOLUME AND PRICE RISKS
Electricity distribution operations do not involve particular
volume or price risks in the medium term due to being sub-
j
ect to reasonable return under electricity distribution li-
cense. In the short-term changes in distribution volumes and
electricity prices have an impact on revenues and operating
expenses respectively.
RISK MANAGEMENT
2.1.4 Trade and other current receivables
TRADE AND OTHER CURRENT RECEIVABLES
EUR 1,000
2025
2024
Trade receivables
17 523
15 668
Accrued income and prepaid expenses
45 753
44 718
Group contribution receivable
11 937
18 893
Other current receivables
182
229
Total trade and other receivables
75 394
79 507
BREAK-DOWN OF ACCRUED INCOME AND PREPAID EXPENSES
EUR 1,000
2025
2024
Sales accruals
42 809
43 950
Accrued financial items
557
560
Other accrued income and receivables
2 386
208
Total accrued income
45 753
44 718
TRADE RECEIVABLES
The Group's trade receivables at the end of 2025 were EUR 17.5
million (2024: EUR 15.7 million). EUR 0,0 million collateral secu-
rities were received for trade receivables (2024: EUR 0.0 mil-
lion).
CHANGE IN EXPECTED CREDIT LOSSES
EUR 1,000
2025
2024
Expected credit loss 1 Jan
835
655
Additions
963
1 033
Realized credit losses
-924
-853
Expected credit loss 31 Dec
874
835
IMPAIRMENT OF TRADE RECEIVABLES
Group records lifetime expected credit losses from all trade re-
ceivables incurred as a result of transactions subject to IFRS15.
Trade receivables do not contain any significant financing com-
ponent.
However, applying the impairment requirements of IFRS 9
has had an impact on the method used in calculation of the credit
loss allowance for trade receivables, but the amount of credit
loss allowances has not changed remarkably. The Group has ap-
plied the simplified approach and recorded lifetime expected
losses on all trade receivables.
The amount of Credit loss allowance for trade receivables is
checked and updated quarterly and it is recognised with similar
principles both in IFRS- and FAS-reporting. Uncertain receiva-
bles are booked to separate bookkeeping account in Group re-
porting. The calculation of the amount of credit loss reserve is
based on the relative proportion of credit losses calculated from
historically realized level. The customers are segmented to pri-
vate and company customers to be able to consider the differ-
ences between these customer groups in the calculation. Gener-
ally, trade receivables are written off on a monthly basis based
on customers' credit rating level and payment history.
16
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
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financial statements
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BREAKDOWN AND IMPAIRMENT OF TRADE RECEIVABLES BY AGE
31 Dec 2025
Trade receivables
EUR 1,000
Undue
1-90 days
91-180 days
Over 180 days
Total
Trade receivables by age
12 760
4 235
455
946
18 398
Expected credit loss rate, private customers
0,1 %
6,4 %
33,4 %
49,4 %
Expected credit loss, private customers
-11
-159
-133
-181
-484
Expected credit loss rate, company customers
0,1 %
2,0 %
28,8 %
58,7 %
Expected credit loss, company customers
-3
-36
-11
-340
-390
Total expected credit losses
-14
-194
-145
-521
-874
Total trade receivables
12 746
4 041
311
425
17 523
31 Dec 2024
Trade receivables
EUR 1,000
Undue
1-90 days
91-180 days
Over 180 days
Total
Trade receivables by age
11 458
3 585
491
968
16 502
Expected credit loss rate, private customers
0,1 %
6,8 %
35,1 %
54,0 %
Expected credit loss, private customers
-10
-169
-134
-259
-573
Expected credit loss rate, company customers
0,1 %
2,4 %
30,1 %
46,5 %
Expected credit loss, company customers
-3
-26
-28
-206
-262
Total expected credit losses
-13
-195
-162
-465
-835
Total trade receivables
11 445
3 390
329
503
15 668
17
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
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2.2 OTHER OPERATING INCOME
ACCOUNTING POLICY
2.2.1 Other operating income
Other operating income includes income from non-operat-
ing activities, such as income from trade receivables collec-
tion and from sales of used fixed assets, insurance compen-
sation and rental income.
Government grants relating to the other purpose than
the purchase of property, plant and equipment are recog-
nised as other income in the consolidated statement of
profit or loss for the period in which the expenses relating to
the grant are incurred and in which the decision on the grant
is received.
OTHER OPERATING INCOME
EUR 1,000
2025
2024
Rental income
38
52
Indemnities
598
557
Income from the trade receivables collection
976
1 019
Income from the sales of obsolete materials and
used fixed assets
1
0
Gains on sales of fixed assets
232
63
Other operating income
32
3
Total
1 877
1 694
2.3 OTHER OPERATING EXPENSES AND RELATED
LIABILITIES
2.3.1 Other operating expenses
Outage compensations
Outage compensations in accordance with the Electricity
Market Act, which are paid to the customers due to an inter-
ruption of over 12 hours in the electricity distribution, are
recognised as other operating expenses and included in the
item "Outage compensation costs" in the table below. The
Group pays to the customers voluntary outage compensa-
tions due to interruption of over 6 hours in the electricity
distribution. These compensations are recognised as a re-
duction of revenue at a point in time (Note 2.1.1).
Research and development costs
Research costs are expensed as incurred. Development
expenditures on an individual project are recognised as an
intangible asset only when the Group can demonstrate:
●
The technical feasibility of completing the in-
tangible asset so that the asset will be available
for use or sale
●
Its intention to complete and its ability to use
or sell the asset
●
How the asset will generate future economic
benefits
●
The availability of resources to complete the
asset
●
The ability to measure reliably the expenditure
during development
Following initial recognition of the development ex-
penditure as an asset, the asset is carried at cost less any ac-
cumulated amortisation and accumulated impairment
losses. Amortisation of the asset begins when development
is complete, and the asset is available for use. It is amortised
over the period of expected future benefit. During the pe-
riod of development, the asset is tested for impairment an-
nually. The Group has not recognised any development ex-
penditures as an intangible asset.
ACCOUNTING POLICY
OTHER OPERATING EXPENSES
EUR 1,000
2025
2024
Lease expenses
-597
-531
External services
-2 877
-3 152
IT and communication expenses
-3 732
-4 141
Research and development costs
-206
250
Marketing and communications
-143
-152
Insurances
-355
-312
Mailing expenses
-53
-306
Other personnel expenses
-280
-272
Travelling expenses
-97
-88
Outage compensation costs
-7 842
-4 804
Elenia service expenses
-17 750
-16 995
Other expenses
-3 343
-3 406
Total
-37 274
-33 909
Research and development costs mainly include the costs of re-
search projects that do not meet the criteria for capitalization.
18
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
financial statements
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AUDIT FEES
EUR 1,000
2025
2024
Auditing fees
-138
-233
Fees for other services
-68
-31
Total
-206
-264
Ernst & Young was appointed as the auditor until the Annual
General Meeting held in the 2026 reporting period.
AUDITING FEES
Auditing fees include fees for auditing the consolidated financial
statements and interim accounts and for auditing the parent
company and subsidiaries. Fees for other services consist of
other assignments.
TRADE AND OTHER CURRENT PAYABLES
EUR 1,000
2025
2024
Short-term bonds and notes
140 000
0
Short-term financial lease liabilities
223
237
Trade payables
3 045
8 497
Accrued expenses
Employee benefits expenses
1 904
1 768
Interest expenses
19 256
16 225
Other accrued expenses
51 851
50 075
Liabilities related to contracts with customers
2 631
2 184
Other liabilities
VAT liability
15 925
14 458
Energy taxes
17 165
16 816
Prepayments received
2 986
2 561
Other liabilities
2 036
1 568
Total
257 022
114 388
2.3.2 Trade and other current payables
According to the management’s estimate, the fair value of trade
and other payables does not materially deviate from the balance
sheet value.
Trade payables are non-interest bearing and are normally
settled on 14-30 days terms. Other accrued expenses comprise
mainly of deferred material and service purchases as well as de-
ferred financing items.
2.3.3 Employee benefits expense
The total remuneration paid by Elenia Verkko to its employees
consists of salaries, fringe benefits and short-term performance
bonuses.
EUR 1,000
2025
2024
Salaries and remuneration paid to other
key members of the management
Salaries and other short-term employee
benefits
-272
-228
Other long-term employee benefits
-44
-53
Pension expenses related to salaries and
employee benefits
-57
-51
Total
-373
-332
Salaries and remuneration were not paid to CEO in 2025 and
2024.
Elenia Group applies two incentive plans. All employees of the
Elenia Group are included within the scope of the short-term an-
nual performance bonus plan; in addition, the key members of
t
he management are included in a long-term incentive plan. Both
EMPLOYEE BENEFIT EXPENSES
EUR 1,000
2025
2024
Salaries and remuneration
-3 527
-3 523
Pensions
Defined contribution plans
-583
-630
Social security costs
-54
-60
Total
-4 165
-4 213
s
19
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
financial statements
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p
lans are company-specific,, but the principles and criteria are
mainly uniform. Companies’ Boards of Directors approve both
the criteria as well as payment under the plans. The total remu-
neration paid by the Group to its employees consists of salaries,
fringe benefits and short-term performance bonuses. All em-
ployees of the Group are included within the scope of the perfor-
mance bonus scheme.
The annual performance bonuses (i.e. short-term annual per-
formance bonus plan) are based for example on the Group profit-
ability, work safety and customer or personnel satisfaction. Also,
the achievement of the individual key objectives in employee’s
own responsibility area is taken into consideration.
The key members of the management personnel of Elenia
Group companies are included within the scope of the long-term
incentive plan. The purpose of the plan is to align the interests of
the management with those of the shareholders in order to im-
prove the competitiveness of the business and promote long-
term financial success. Key management includes management
team and Board members of Elenia Oy.
The long-term incentive plan is measured over a three-year
period and potential remunerations are paid during the following
three years after the earnings period. The payment is made only
if the goals have been achieved also during the year preceding
the payment. In 2025, the remunerations related to the 2020-
2022, 2021-2023 and 2022-2024 programmes were paid. Dur-
ing 2025 there were three programmes on-going: 2023-2025,
2024-2026 and 2025-2027.
During 2025 EUR 6 thousand (2024: EUR 28 thousand) was
paid out related to the long-term incentive plan in Elenia Verkko
Oyj.
The key members of the management have no share or op-
tion-based incentive schemes. Five of the key management per-
sons of Elenia Oy and Elenia Verkko Oyj have invested in Elton
Investment S.à r.l. which is the ultimate owner of Elenia Oy. The
management investment is channelled through a management
owned holding company Manco Investment Oy, which owns ap-
proximately 0.3% of Elton Investment S.à r.l. after the arrange-
ment. The equity investment has been made at fair market val-
ues, and it therefore is not a compensation plan. The equity own-
ership forms an additional tool for retaining key management
members and therefore promotes continuity, and it also signals
strong commitment from the senior management into the long-
term development of Elenia.
2.3.4 Provisions
ACCOUNTING POLICY
PROVISIONS
Provisions are recognised when the Group has a present le-
gal or constructive obligation as a result of past events to a
third party, provided that it is probable that the obligation
will be realised, and the amount can be reliably estimated.
SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES
AND ASSUMPTIONS
PROVISIONS
Electricity network connection fees, which have been paid
by the customers prior to 2008, must be refunded net of
demolition costs, if the customer wants to terminate the
electricity connection.
A provision for refundable connection fees for electricity
network has been calculated by discounting estimated fu-
ture annual connection fee refunds to their present value.
The calculation is based on the management’s estimate of
the volume and timing of refundable connection fees. The
historical level of refunded connection fees is taken into ac-
count while compiling the calculations and the discount
rates applied correspond to the rates used in impairment
testing of goodwill for network.
PROVISIONS
2025
EUR 1,000
Provision for refunds of con-
nection fees
Provisions at 1 January
6 325
Increase
962
Use of provisions
-551
Provisions at 31 December
6 736
PROVISIONS
2024
EUR 1,000
Provision for refunds of con-
nection fees
Provisions at 1 January
6 521
Decrease
113
Use of provisions
-309
Provisions at 31 December
6 325
20
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
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3
INVESTMENTS AND LEASE COMMITMENTS
3.1 PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment comprise mainly electricity
distribution networks, machinery, equipment and buildings.
Property, plant and equipment are stated at original ac-
quisition cost less accumulated depreciation and accumu-
lated impairment losses, if any (see Note 3.2 Accounting pol-
icy for Impairment of non-financial assets). The original ac-
quisition cost includes expenditure that is directly attributa-
ble to the acquisition of an item. Subsequent costs are in-
cluded in the asset’s carrying amount or recognised as a sep-
arate asset, as appropriate, only when it is probable that fu-
ture economic benefits associated with the item will flow to
the Group and the acquisition cost of the item can be relia-
bly measured.
When a property, plant and equipment asset no longer
has any expected revenue streams, the asset is dismantled
and the remaining carrying value is recognised as an ex-
pense under depreciation, amortisation and impairment.
Acquired assets on the acquisition of a new subsidiary
are stated at their fair values at the date of acquisition.
The same principles are followed as in the Elenia Group
and have been followed before the restructuring and the
formation of the Elenia Network Group. Until December 31,
2018 land use rights for underground cables have been capi-
talized in intangible assets for other long-term expenditure,
but those rights have been capitalized in property, plant and
equipment as networks as of January 1, 2019. According to
the estimate of the Group's management, they are not
treated as lease contracts under IFRS 16.
All other repairs and maintenance costs are charged to
the consolidated statement of profit or loss during the finan-
cial period in which they are incurred.
Land and water areas are not depreciated since they have
indefinite useful lives. Depreciation on other assets is calcu-
lated on a straight-line basis over the estimated useful lives
of the assets as follows:
Buildings and structures
15-50 years
Electricity distribution network
10-30 years
Electricity transmission network
25-40 years
Machinery and equipment
3-30 years
Right-of-use assets are depreciated on a straight-line basis
over the lease term between the commencement date of
the lease and the end of the lease term or using the esti-
mated useful life of the asset. Leases of buildings and vehi-
cles generally have lease terms between 3 and 5 years.
The assets’ residual values and useful lives are reviewed
and adjusted, if appropriate, at each financial year end. An
asset’s carrying amount is written down immediately to its
recoverable amount if the asset’s carrying amount is greater
than its estimated recoverable amount.
Gains and losses on the sales of property, plant and
equipment are recorded as the difference between the sell-
ing price and carrying value and recognised in the consoli-
dated statement of profit or loss under other operating in-
come or expenses.
Government grants
Government grants relating to the purchase of property,
plant and equipment are recognised by reducing the book
value of the asset they relate to when the decision on the
grant has been received. The grants are thus reflected in the
form of lower depreciation over the useful life of the asset.
to the purchase of property, plant and equipment.
Borrowing costs
Borrowing costs directly attributable to the acquisition or
construction of an asset that necessarily takes a substantial
period of time to get ready for its intended use or sale are
capitalised as part of the cost of the asset. No borrowing
costs are currently capitalized in the Group’s assets.
All other borrowing costs are expensed in the period in
which they occur. Borrowing costs consist of interest and
other costs that an entity incurs in connection with the bor-
rowing of funds
ACCOUNTING POLICY
21
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
financial statements
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PROPERTY PLANT AND EQUIPMENT
Land and wa-
ter areas
Buildings
Networks
Machinery and
equipment
Other tangible
assets
Prepayments
Total
EUR 1,000
Cost at 1 January 2025
2 335
6 837
2 909 273
224 134
56
12 216
3 154 851
Additions
0
0
115 186
14 817
0
267
130 271
Disposals
-3
0
-3 384
0
0
0
-3 387
Transfers between balance sheet items
0
0
-1 467
3
0
1 464
0
Cost at 31 December 2025
2 333
6 837
3 019 609
238 954
56
13 947
3 281 735
Accumulated depreciation, amortisation and impairment at 1 January 2025
-1
-6 281
-1 259 860
-161 746
-56
-1 427 945
Depreciation and amortisation for the year
0
-154
-88 435
-9 482
0
-98 071
Accumulated depreciation and amortisation on disposals
0
0
3 384
0
0
3 384
Impairment for the year*
0
0
-1 279
0
0
-1 279
Accumulated depreciation, amortisation and impairment at 31 December 2025
-1
-6 435
-1 346 189
-171 228
-56
-1 523 910
Book value at 31 December 2025
2 332
401
1 673 419
67 725
0
13 947
1 757 825
Book value at 31 December 2024
2 334
556
1 649 413
62 387
0
12 216
1 726 907
*Networks' impairment for the year relates to the demolition of electricity networks.
Land and wa-
ter areas
Buildings
Networks
Machinery and
equipment
Other tangible
assets
Prepayments
Total
EUR 1,000
Cost at 1 January 2024
2175
6 837
2 799 569
199 145
56
19 264
3 027 046
Additions
128
0
106 607
24 986
0
222
131 943
Disposals
0
0
-4 137
0
0
0
-4 138
Transfers between balance sheet items
33
0
7 235
3
0
-7 270
0
Cost at 31 December 2024
2 335
6 837
2 909 273
224 134
56
12 216
3 154 851
Accumulated depreciation, amortisation and impairment at 1 January 2024
-1
-6 127
-1 176 719
-154 504
-56
-1 337 406
Depreciation and amortisation for the year
0
-154
-85 275
-7 243
0
-92 672
Accumulated depreciation and amortisation on disposals
0
0
4 050
0
0
4 050
Impairment for the year*
0
0
-1 916
0
0
-1 917
Accumulated depreciation, amortisation and impairment at 31 December 2024
-1
-6 281
-1 259 860
-161 746
-56
-1 427 945
Book value at 31 December 2024
2 334
556
1 649 413
62 387
0
12 216
1 726 907
Book value at 31 December 2023
2 174
710
1 622 850
44 641
0
19 264
1 689 639
22
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
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3.2 INTANGIBLE ASSETS
Intangible assets, except goodwill and intangible assets
with indefinite life, are stated at original acquisition cost
less accumulated amortisation and impairment losses if
applicable and amortised on a straight-line method over
their expected useful lives.
Computer software and licenses
Acquired computer software licenses are capitalised based
on the costs incurred from the acquisition and implemen-
tation of the software. These costs are amortised over
their estimated useful lives (three to five years). Costs as-
sociated with developing or maintaining computer soft-
ware are recognised as an expense as incurred. IFRS inter-
pretations committee issued an agenda decision in April
2021 on configuration and customization costs in a cloud
computing arrangement. In the agenda decision the com-
mittee considered whether an intangible asset according
to IAS 38 can be recognised related to configuration and
customization costs of a cloud-based software and if not,
how these costs should be accounted for.
Licenses concerning cloud-based software can only be
capitalized if the group has the right and ability to take
possession of the software and run it on own servers. Oth-
erwise, the license is considered to be a service contract,
and costs are expensed when incurred. Concerning the
implementation costs of a cloud-based software only cus-
tomization related costs can be capitalized if they create
and asset that is distinct, controlled by the group and it
creates economic benefits that flow to the group. The part
of the implementation costs that is not capitalized is ex-
pensed when incurred.
Compensation paid to landowners
One-time compensation payments paid to landowners for
inconvenience and damage caused by the network com-
pany’s overhead lines, cables and equipment are capital-
ized.
Until December 31, 2018, land use rights for underground
cables have been capitalized in intangible assets for other
long-term expenditure, but those rights have been capital-
ized in property, plant and equipment as networks as of Jan-
uary 1, 2019. According to the estimate of the Group's man-
agement, they are not treated as lease contracts under IFRS
16. Recurring annual compensation payments are recog-
nised as an expense on the consolidated statement of profit
or loss under other operating expenses
.
Contractual customer relationships
Contractual customer relationships acquired in a business
combination are recognised at fair value on the acquisition
date. The contractual customer relations have a finite useful
life and are carried at acquisition cost less accumulated
amortisation and assessed for impairment whenever there
is an indication that the intangible asset may be impaired.
Amortisation is calculated using the straight-line method
over the useful economic life of the customer relationship.
Goodwill
Goodwill represents the excess of the cost of an acquisition
over the fair value of the Group’s share of net assets of the
acquired subsidiary/associate at the date of acquisition.
Goodwill on acquisitions of subsidiaries is included in intan-
gible assets. Goodwill is tested annually for impairment and
carried at acquisition cost less accumulated impairment
losses. Impairment losses on goodwill are not reversed.
Amortisation periods for intangible assets
Computer software and licenses
3-5 years
Customer relationships
20 years
Compensation paid to landowners
10-30 years
The assets’ useful lives are reviewed and adjusted, if appro-
priate, at each financial year end.
Impairment of non-financial assets
Besides the information given below, disclosures relating to
impairment of non-financial assets are also provided in the
note 3.1 concerning property, plant and equipment.
The carrying values for individual assets are assessed at
each reporting date to determine whether there is any indi-
cation of impairment. When considering the need for im-
pairment, the Group assesses whether events or changes in
circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognised if the carrying
value of an asset or cash-generating unit exceeds its recov-
erable amount. An asset’s recoverable amount is the higher
of an asset’s or cash-generating unit’s fair value less costs to
sell and its value in use.
An impairment loss relating to property, plant and equip-
ment and intangible assets other than goodwill is reversed in
the event of a change in circumstances that results in the as-
set’s recoverable amount changing from the time the impair-
ment loss was recorded. An impairment loss recorded on
goodwill is not reversed under any circumstances.
Intangible assets with indefinite useful lives are tested
for impairment annually as at 31 December either individu-
ally or at the cash-generating unit level, as appropriate, and
when circumstances indicate that the carrying value may be
impaired.
Goodwill is tested for impairment annually as at 31 De-
cember and when circumstances indicate that the carrying
value may be impaired. In assessing value in use, the esti-
mated future cash flows expected to be derived from a cash-
generating unit are discounted to their present value. The fi-
nancial projections used in the calculations are based on
business plans approved by management.
ACCOUNTING POLICY
23
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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financial statements
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S
IGNIFICANT ACCOUNTING JUDGEMENTS
GOODWILL IMPAIRMENT TESTING
The Group tests goodwill annually for impairment. The re-
coverable amounts of cash-generating units are based on es-
timated future cash flows. Preparation of these estimates
requires management to make assumptions relating to fu-
ture cash flows. The main variables in determining cash
flows are the discount rate and the assumptions and esti-
mates used.
The Group has conducted a sensitivity analysis of the ef-
fects of the key assumptions underlying the impairment
testing on the test results.
E
STIMATES AND ASSUMPTIONS
IMPAIRMENT TESTING OF GOODWILL
Goodwill, of EUR 418 million, has been allocated to the cash gen-
erating unit, Network business segment. Projected cash flows
have been assessed based on long-term operational plans, which
have been approved by the senior management and the Board of
Directors. Cash flows have been discounted to determine the
value in use. The discount rate applied (pre-tax) reflects the risk
profile of the business.
The company performed its annual impairment test in Jan-
uary 2026. Due to the regulated and stable nature of the elec-
tricity distribution business, the basis for cash flow projections is
the long-term business plan covering the period 2025-2055
which has been approved by the Board of Directors. A volume
growth of approximately 0.5% p.a. has been incorporated for the
forecast period. The discount rate applied is 6.0% (pre-tax), cal-
culated based on relevant studies and the Energy Authority's
communication regarding the required rate of return in the dis-
tribution business (in 2024 the applied discount rate was 6.0%).
Long-term capital expenditure plans have been prepared to
meet the security of supply requirements in line with the Elec-
tricity Market Act as well as the expected requirements of elec-
trification as per the government’s national net zero emission
commitment of 2035.
The projected cash flows reflect the regulatory methods
confirmed by the Energy Authority for the period 2024-2031,
but based on the current understanding of the company senior
management and the Board of Directors as well as public com-
munication by other system operators and stakeholders, the cur-
rent regulatory methods do not enable the execution of the in-
vestments required by the electrification of the society, nor the
security of supply investments required by the Electricity Mar-
ket Act (588/2013) within the required period by the end of
2036.
On November 21, 2025, The Market Court ruled on the
appeal of the confirmed regulatory methods for 6
th
th
latory periods and rejected the appeals. Elenia has appealed to
the Supreme Administrative Court together with the industry.
The Energy Authority sent Elenia a decision on May 28
th
,
2025, regarding practices in the differentiated financial state-
ments. The decision stated that Elenia has prepared the differen-
tiated financials statements incorrectly since 2020. Elenia ap-
pealed the decision in June 2025, with a market court ruling ex-
pected towards the end of 2026. If the decision remains un-
changed it affects the regulatory asset base and correspondingly
the reasonable return by decreasing their value since 2020. The
decision has a limited impact on Elenia's regulatory accounts be-
yond 2027.
In addition, Elenia, as well as other DSOs, has an ongoing
Market Court process regarding the changes made to the regula-
tory methods for the 5
th
The future verdicts of the Market Court and the Supreme
Administrative Court add significant uncertainty to the assump-
tions of the future cash flow estimates. As a result, the impair-
ment test calculation has been performed using scenarios taking
into account the impacts of the alternative outcomes of the Mar-
ket Court and Supreme Administrative Court processes on the
company’s business plan.
One scenario assumes a ruling in favor of Elenia and the
industry. As the potential contents of the verdicts are difficult to
predict, the forecast for the regulatory calculation includes an
adjustment that increases the reasonable return which in turn is
based on the regulatory asset base.
The other scenario assumes that the Market Court and
Supreme Administrative Court rulings are all against the indus-
try resulting in cash flow projections based on the regulatory
methods confirmed by the Energy Authority on December 29,
2023 and the Decision on May 28
th
differentiated financial statements). In addition, the reasonable
return in the 5
th
calculations by the Energy Authority with no changes driven by
appeals.
The value in use has been calculated based on these out-
comes, weighting them equally (50%/50%). This reflects the view
of the senior management and the Board of Directors on the
company’s recoverable value. Based on the analysis in January
2026 there is a headroom of 1,793 million euros.
SENSITIVITY TO CHANGES IN ASSUMPTIONS IN DISCOUNT
RATE
Discount rate of the projected cashflows is based on the actual
risk-free interest rates of the valuation timing and the parame-
ters based on the Energy Authority's communication regarding
the required rate of return in the distribution business. The dis-
count rate (pre-tax) increasing by 4.3% (433 bps) would cause
the recoverable value of the assets to be equal to its book value.
24
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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INTANGIBLE ASSETS
EUR 1,000
Goodwill
Intangible
rights
Other long-
term ex-
penditure
Total
Cost at 1 January 2025
417 823
22 869
48 255
488 947
Additions
0
240
1 941
2 181
Disposals
0
-12
0
-12
Cost at 31 December 2025
417 823
23 097
50 196
491 116
Accumulated depreciation, amortisation and impairment at 1 January 2025
0
-15 831
-29 136
-44 967
Depreciation and amortisation for the year
0
-463
-2 780
-3 243
Accumulated depreciation and amortisation on decrease
0
12
0
12
Accumulated depreciation, amortisation and impairment at 31 December 2025
0
-16 282
-31 916
-48 198
Book value at 31 December 2025
417 823
6 815
18 280
442 918
Book value at 31 December 2024
417 823
7 038
19 119
443 980
Goodwill
Intangible
rights
Other long-
term ex-
penditure
Total
EUR 1,000
Cost at 1 January 2024
417 823
22 707
46 503
487 033
Additions
0
162
1 752
1 914
Cost at 31 December 2024
417 823
22 869
48 255
488 947
Accumulated depreciation, amortisation and impairment at 1 January 2024
0
-15 338
-26 445
-41 783
Depreciation and amortisation for the year
0
-493
-2 691
-3 184
Accumulated depreciation, amortisation and impairment at 31 December 2024
0
-15 831
-29 136
-44 967
Book value at 31 December 2024
417 823
7 038
19 119
443 980
Book value at 31 December 2023
417 823
7 368
20 058
445 249
As a result of acquisitions in 2012 goodwill of EUR 515.6 million was created. Goodwill is based on the assessment of organisational competence and knowhow which is
expected to benefit business operations in coming years. At the end of 2021 the value of Goodwill is 417,8 million euros, since 97,8 million euros was allocated to heating
business which was sold in 2019.
25
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
financial statements
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6
The Group’s management has estimated that lease con-
tracts related to indoor secondary substations, primary sub-
stations and certain office premises are immaterial contracts
(referring to IAS 1 which defines the materiality of the infor-
mation presented in the financial statements) and therefore
IFRS 16 has not been applied to these contracts. The defini-
tion of contracts as “immaterial” is based on the low value of
leases paid under these contracts which causes the lease lia-
bilities arising from them to be immaterial in relation to the
Group’s consolidated statement of financial position. Lease
payments on these contracts are recognised on the consoli-
dated statement of profit or loss as other operating expenses
over the lease term. The effect of these costs on the income
statement in 2025 was approximately EUR 251 thousand
(D<Year_previous>: EUR 149 thousand).
One-time subsurface rights compensations are paid to
landowners based on perpetual contracts. Compensations are
capitalized to the network’s assets in the consolidated state-
ment of financial position and amortized over their expected
useful lives. Normally subsurface rights should be recognised
as leases under IFRS 16 but as compensations are paid based
on perpentual contracts, they are not treated as lease con-
tracts under IFRS 16.
3.3 LEASE COMMITMENTS
ACCOUNTING POLICY
3.3.1 LEASES
The Group assesses at contract inception whether a contract
is, or contains, a lease. That is, if the contract conveys the right
to control the use of an identified asset for a period of time in
exchange for consideration.
3.3.2 GROUP AS THE LESSOR
Leases in which the Group does not transfer substantially all
the risks and rewards incidental to ownership of an asset are
classified as operating leases. Initial direct costs incurred in
negotiating and arranging an operating lease are added to the
carrying amount of the leased asset and recognised over the
lease term on the same basis as rental income. Contingent
rents are recognised as other operating income in the period
in which they are earned (See Note 2.2).
Lease agreements comprise fixed-term agreements and
agreements which are valid until further notice.
3.3.3 THE GROUP AS THE LESSEE
According to the requiremets of IFRS 16 the Group recog-
nises lease liabilities to make lease payments and right-of-use
assets representing the right to use the underlying assets con-
cerning certain lease contracts related to office premises, car
leasing contracts, and lease contracts related to electricity
meters.
The Group applies the short-term lease exemption to a
part of the contracts related to office premises and to IT-con-
tracts. Lease payments on short-term leases are recognised in
the consolidated statement of profit or loss as other operating
expenses over the lease term. The impact of these costs on
the income statement in 2025 was approximately EUR 44
thousand (D<Year_previous>: Approximately EUR 45 thou-
sand).
Right-of-use assets
The Group recognizes right-of-use assets at the commencement
date of the lease (the date the underlying asset is available for
use). Right-of-use assets are measured at cost, less any accumu-
lated depreciation and impairment losses, and adjusted for any
remeasurement of lease liabilities. The cost of right-of-use assets
includes the amount of lease liabilities recognized, initial direct
costs incurred, and lease payments made at or before the com-
mencement date less any lease incentives received. Right-of-use
assets are depreciated on a straight-line basis over the lease
term between the commencement date of the lease and the end
of the lease term or using the estimated useful life of the asset.
Leases of buildings and vehicles generally have lease terms be-
tween 3 and 5 years.
If ownership of the leased asset transfers to the Group at the
end of the lease term or the cost reflects the exercise of a pur-
chase option, depreciation is calculate using the estimated useful
life of the asset. The right-of-use assets are also subject to im-
pairment (see accounting policies in Notes 3.1 and 3.2).
Lease liabilities
At the commencement date of the lease, the Group recognizes
lease liabilities measured at the present value of lease payments
to be made over the lease term. The lease payments include fixed
payments (including insubstance fixed payments) less any lease
incentives receivable, variable lease payments that depend on an
index or a rate, and amounts expected to be paid under residual
value guarantees. The lease payments also include the exercise
price of a purchase option reasonably certain to be exercised by
the Group and payments of penalties for terminating the lease, if
the lease term reflects the Group exercising the option to termi-
nate. In calculating the present value of lease payments, the
Group uses as interest rate an estimated average medium-term
financing cost at the lease commencement date because the in-
terest rate implicit in the lease is not readily determinable.
After the commencement date, the amount of lease liabilities
is increased to reflect the accretion of interest and reduced for
the lease payments made. In addition, the carrying amount of
lease liabilities is remeasured if there is a change in the lease
term, a change in the lease payments (e.g., changes to future pay-
ments resulting from a change in an index or rate used to deter-
mine such lease payments) or a change in the assessment of an
option to purchase the underlying asset.
The Group’s lease liabilities are included in non-current and
current financial liabilities.
26
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
financial statements
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6
Set out below are the carrying amounts of right-of-use assets recognised and the move-
ments during the period
EUR 1,000
Buildings
Machinery
and equip-
ment
Total
As at 1 January 2025
319
122
440
Additions
0
120
120
Depreciations
-143
-112
-255
As at 31 December 2025
176
129
305
Machinery
and equip-
ment
EUR 1,000
Buildings
Total
As at 1 January 2024
462
176
638
Additions
0
46
46
Depreciations
-143
-101
-243
As at 31 December 2024
319
122
440
Set out below are the carrying amounts of lease liabilities and the movements during
the period
LEASE LIABILITIES
EUR 1,000
2025
2024
As at 1 January
471
659
Additions
128
292
Disposals
0
-234
Payments
-257
-234
Interest expenses
-8
-12
As at 31 December
334
471
The maturity analysis of lease liabilities is disclosed in Note 4.2.6.
During 2025 the Group had total cash outflows for leases of EUR 552 thousand (2024: EUR
427 thousand).
The Group has several lease contracts that include extension and termination options.
These options are negotiated by management to provide flexibility in in managing the
leased-asset portfolio according to needs of business. Management exercises significant
judgement in determining whether these extension and termination options are reasonably
certain to be exercised (see Note 1.4).
The lease contract concerning the main premises of the group changed from a valid un-
till further notice to a two-year fixed term contract in March 2023.
According to management's assumption, the Group estimates that it will not use termi-
nation options of car's leases.
Amounts recognised in profit or loss
EUR 1,000
2025
2024
Depreciation expense of right-of-use assets
-255
-243
Interest expense on lease liabilities
-8
-12
Expense related to short-term leases
(incl. in other operating expenses)
-44
-45
Total amount recognised in profit or loss
-308
-300
27
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
financial statements
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6
4 CAPITAL STRUCTURE AND FINANCIAL ITEMS
4.1 FINANCE INCOME AND COSTS
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT
The management of financial risks is based on the following
principles.
The Group's Treasury policy, approved by the Board of
Directors, defines financial risk management governance,
responsibilities and processes for reporting risks and risk
management. Treasury Policy defines principles covering
currency, liquidity, interest rate and counterparty risks.
Also, the Group's existing loan arrangements include guide-
lines and restrictions pertaining to financial risk manage-
ment. Elenia Verkko Oyj is responsible for the Group finan-
cial risk management.
●
For credit risk management refer Note 2.1.4.2.;
●
For liquidity risk, refinancing risk, interest rate risk
and currency risk management refer Note 4.2.9.
CAPITAL MANAGEMENT
As the electricity distribution business is a capital-intensive,
the Group must ensure it has adequate capital to meet its
operating requirements. Business planning includes as-
sessing the adequacy of available capital in relation to the
risks arising from business operations and the operating en-
vironment.
ACCOUNTING POLICY
TRANSLATION DIFFERENCES
Transactions in foreign currencies are initially recorded by
the Group's entities at their respective functional currency
spot rates at the date the transaction first qualifies for
recognition. Monetary assets and liabilities denominated in
foreign currencies are translated at the functional currency
spot rates of exchange at the reporting date. Differences
arising on settlement or translation of monetary items are
recognised in the consolidated statement of profit or loss
with the exception of monetary items that are designated as
part of the hedge of the Group's net investment of a foreign
operation. These are recognised in other comprehensive in-
come until the net investment is disposed of, at which time,
the cumulative amount is reclassified to the consolidated
statement of profit or loss. Tax charges and credits attribut-
able to exchange differences on those monetary items are
also recorded in other comprehensive income.
Non-monetary items that are measured in terms of his-
torical cost in a foreign currency are translated using the ex-
change rates at the dates of the initial transactions. Non-
monetary items measured at fair value in a foreign currency
are translated using the exchange rates at the date when the
fair value is determined.
The gain or loss arising on translation of non-monetary
items measured at fair value is treated in line with the recog-
nition of gain or loss on change in fair value of the item (i.e.,
translation differences on items whose fair value gain or loss
is recognised in other comprehensive income or consoli-
dated statement of profit or loss are also recognised in other
comprehensive income or statement of profit or loss, re-
spectively).
Any goodwill arising on the acquisition of a foreign oper-
ation and any fair value adjustments on the carrying
amounts of assets and liabilities arising on the acquisition
are treated as assets and liabilities of the foreign operation
and translated at the spot rate of exchange at the reporting
date
The assets and liabilities of foreign operations are translated
into EUR at the rate of exchange prevailing at the reporting
date and their statement of profit or loss and other
comprehensive income are translated at exchange rates
prevailing at the dates of the transactions. The exchange
differences arising on translation for consolidation are
recognised in other comprehensive income.
EUR 1,000
2025
2024
Interest expenses
Loans from financial institutions
-10 973
-11 904
Bonds and notes
-40 334
-37 050
Interest expenses related to lease liabili-
ties
-8
-12
Other interest expenses
-3
-7
Total interest
-51 317
-48 973
Other finance costs
-5 066
-3 942
Exchange rate losses
Loans and receivables
-3
-2
Total finance costs
-56 387
-52 917
Interest income
Other interest income
4 206
2 146
Exchange rate gains
Other finance income
6 125
0
Total finance income
10 331
2 146
Finance costs (net)
-46 056
-50 771
28
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
financial statements
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4.2 FINANCIAL ASSETS AND LIABILITIES
IFRS 9 FINANCIAL INSTRUMENTS
The initial measurement of financial instruments is made at fair
value for all financial assets. Financial assets that are debt in-
struments and to which the fair value option is not applied are
measured following initial recognition either at amortized cost
or fair value, depending on the company’s business model for the
management of financial assets and contractual cash flows of the
financial assets.
As a rule, all equity instruments are measured at fair value
following the initial measurement, either through consolidated
statement of profit or loss or through consolidated statement of
other comprehensive income. All equity instruments held for
trading are to be measured at fair value through profit or loss.
Items that are recognized through other comprehensive income
will no longer be recognized in the consolidated statement of
profit or loss if the entity has elected to measure it at fair value
through consolidated statement of other comprehensive in-
come.
The impairment requirements in IFRS 9 are based on an ex-
pected credit loss model. In addition, IFRS 9 standard comprises
hedge accounting model in which the criteria for applying the
hedge accounting are relieved and more designations of groups
of items as the hedged items are possible. The hedge accounting
model aims to enable companies to better reflect their risk man-
agement strategy and objectives in the financial statements.
The Group has applied the simplified approach and recorded life-
time expected losses on all trade receivables.
29
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
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Notes to the consolidated
financial statements
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6
FINANCIAL INSTRUMENTS – INITIAL RECOGNITION AND
SUBSEQUENT MEASUREMENT
Classification of current and non-current assets and liabilities
An asset or a liability is classified as current when it is expected
to be realized within twelve months after the financial year
end or it is classified as financial assets or liabilities held at fair
value through profit or loss. Liquid funds are classified as cur-
rent assets.
All other assets and liabilities are classified as non-current
assets and liabilities.
4.2.1 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, bank de-
posits as well as highly liquid fund investments that are con-
vertible into cash within three months and subject to an insig-
nificant risk of changes in value
4.2.2 Financial assets
Initial recognition and measurement
Financial assets within the scope of IFRS 9 are classified as fi-
nancial assets carried at amortized cost, financial assets at fair
value through profit or loss or financial assets at fair value
through other comprehensive income (OCI), as appropriate.
The Group determines the classification of its financial assets
at initial recognition.
All financial assets are recognized initially at fair value plus
transaction costs, except in the case of financial assets rec-
orded at fair value through profit or loss. Purchases or sales of
financial assets are recognized on the trade date.
The classification of financial assets at initial recognition de-
pends on the financial asset's contractual cash flow character-
istics and the Group's business model for managing them. At
the reporting date the Group holds money market fund invest-
ments measured at fair value. Trade receivables that do not
contain a significant financing component or for which the
Group has applied the practical expedient are measured at the
transaction price determined under IFRS15. Refer to the ac-
counting policies in Note 2.1.1 Revenue from contracts with
customers.
Subsequent measurement
The subsequent measurement of financial assets depends on
their classification as described below:
Financial assets carried at amortised cost
Financial assets carried at amortised cost are non-derivative
financial assets with fixed or determinable payments that are
not quoted in an active market. Financial assets carried at
amortised cost also include trade receivables and other re-
ceivables. Loans are carried at amortised cost using the effec-
tive interest rate method less accumulated impairment. Amor-
tised cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral
part of the effective interest rate. The effective interest rate
amortisation is included in finance income in the consolidated
statement of profit or loss. The losses arising from impairment
are recognised in the consolidated statement of profit or loss
in finance costs for loans and in cost of sales or other operat-
ing expenses for receivables.
If there is objective evidence that an impairment loss has
been incurred, the amount of the loss is measured as the dif-
ference between the asset’s carrying amount and the present
value of estimated future cash flows (excluding future ex-
pected credit losses that have not yet been incurred). The pre-
sent value of the estimated future cash flows is discounted at
the financial asset’s original effective interest rate. If a loan
has a variable interest rate, the discount rate for measuring
any impairment loss is the current effective interest rate.
The carrying amount of the asset is reduced using an al-
lowance account and the loss is recognised in the consolidated
statement of profit or loss. Interest income continues to be ac-
crued on the reduced carrying amount and is accrued using
the rate of interest used to discount the future cash flows for
measuring the impairment loss. The interest income is rec-
orded as finance income in the consolidated statement of
profit or loss. Loans together with the associated allowance
are written off when there is no realistic prospect of future re-
covery, and all collateral has been realised or has been trans-
ferred to the Group.
ACCOUNTING POLICY
If, in a subsequent year, the amount of the estimated impair-
ment loss increases or decreases because of an event occur-
ring after the impairment was recognised, the previously rec-
ognised impairment loss is increased or reduced by adjusting
the allowance account. If a write-off is later recovered, the re-
covery is credited to finance costs in the consolidated state-
ment of profit or loss.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include fi-
nancial assets held for trading and financial assets designated
upon initial recognition at fair value through profit or loss. Fi-
nancial assets are classified as held for trading if they are ac-
quired for selling or repurchasing in the near term.
Derivatives, including separated embedded derivatives
are also classified as held for trading unless they are desig-
nated as effective hedging instruments as defined by IFRS
9.Financial assets at fair value through profit or loss are car-
ried in the consolidated statement of financial position at fair
value with net changes in fair value presented as finance costs
(negative net changes in fair value) or finance income (positive
net changes in fair value) in the consolidated statement of
profit or loss. Financial assets designated upon initial recogni-
tion at fair value through profit or loss are designated at their
initial recognition date and only if the criteria under IFRS 9 are
satisfied.
Financial assets at fair value through other comprehensive
income (OCI)
Derivatives are measured at fair value and gains and
losses
from
fair value measurement are treated as determined by the
purpose of the derivatives. The effects on results of changes in
the value of derivatives that are eligible for hedge accounting
and that are effective hedging instruments are presented con-
sistent with the hedged item. Derivatives eligible for hedge ac-
counting are classified as financial assets at fair value through
other comprehensive income. The effective portion of the gain
or loss on the hedging instrument is recognized directly in
other comprehensive income.
Any ineffective portion is recognized immediately in the
consolidated statement of profit or loss as financial income or
costs. The group had no derivatives at the balance sheet date.
30
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
financial statements
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Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include
financial liabilities held for trading and financial liabilities des-
ignated upon initial recognition as at fair value through profit
or loss. Financial liabilities are classified as held for trading if
they are acquired for the purpose of selling in the near term.
This category includes derivative financial instruments en-
tered into by the Group that are not designated as hedging in-
struments in hedge relationships as defined by IFRS 9. Gains
or losses on liabilities held for trading are recognized in the
consolidated statement of profit or loss.
Derecognition of Financial liabilities
A financial liability is derecognized when the obligation under
the liability is discharged or cancelled or expires. When an ex-
isting financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an ex-
isting liability are substantially modified, such an exchange or
modification is treated as the derecognition of the original lia-
bility and the recognition of a new liability. The difference in
the respective carrying amounts is recognized in the consoli-
dated statement of profit or loss.
4.2.5 Offsetting of financial instruments
Financial assets and financial liabilities are offset, and the net
amount is reported in the consolidated statement of financial
position if there is a currently enforceable legal right to offset
the recognized amounts and there is an intention to settle on a
net basis, to realise the assets and settle the liabilities simulta-
neously.
4.2.4 Financial liabilities
Initial recognition and measurement
Financial liabilities within the scope of FRS 9 are classified as
financial liabilities at fair value through profit or loss, loans
and borrowings, payables, or as derivatives designated as
hedging instruments in an effective hedge, as appropriate. The
Group determines the classification of its financial liabilities at
initial recognition.
All financial liabilities are recognised initially at fair value
and, in the case of loans and borrowings, net of directly at-
tributable transaction costs.
The Group’s financial liabilities include trade and other
payables, loans and borrowings and derivative financial in-
struments.
The Group has two financial covenants in its financing
agreements. According to IAS1 the liability is to be classified
as non-current, if the company has the right to defer settle-
ment of the liability for at least twelve months after the re-
porting period. If the company is required to comply with cov-
enants on or before the end of the reporting period, these cov-
enants will affect whether such a right exists at the end of the
reporting period.
Subsequent measurement
The measurement of financial liabilities depends on their clas-
sification as described below:
Loans and borrowings
After initial recognition, interest bearing loans and borrow-
ings are subsequently measured at amortized cost using the
effective interest rate method. Gains and losses are recog-
nized in the consolidated statement of profit or loss when the
liabilities are derecognized as well as through the effective in-
terest rate amortization process.
Amortized cost is calculated by taking into account any
discount or premium on acquisition and fees or costs that are
an integral part of the effective interest rate. The effective in-
terest rate amortization is included as finance costs in the
consolidated statement of profit or loss.
Derecognition of financial assets
Financial assets are derecognized when:
◾
The rights to receive cash flows have expired; or
●
The Group has transferred its rights to receive cash flows
from the asset or has assumed an obligation to pay the
received cash flows in full without material delay to a
third party under a ‘pass-through’ arrangement; and ei-
ther (a) the Group has transferred substantially all the
risks and rewards of the asset, or (b) the Group has nei-
ther transferred nor retained substantially all the risks
and reward s of the asset, but has transferred control of
the asset.
4.2.3 Impairment of financial assets
The Group recognizes an allowance for expected credit losses
(ECLs) for all debt instruments not held at fair value through
profit or loss. ECLs are based on the difference between the
contractual cash flows due in accordance with the contract
and all the cash flows that the Group expects to receive, dis-
counted at an approximation of the original effective interest
rate.
ECL' are recognized in two stages. For credit exposures for
which there has not been a significant increase in credit risk
since initial recognition, ECLs are provided for credit losses
that result from default evets that are possible within the next
12-months (a 12-month ECL). For those credit exposures for
which there has been a significant increase in credit risk since
initial recognition, a loss allowance is required for credit losses
expected over the remaining life of the exposure, irrespective
of the timing of the default (a lifetime ECL).
For trade receivables and other receivables, the Group ap-
plies a simplified approach in calculating ECLs. Therefore, the
Group does not track changes in credit risk but instead recog-
nizes a loss allowance based on lifetime ECLs at each report-
ing date. The Group has established a provision matrix that is
based on its historical credit loss experience, adjusted for for-
ward-looking factors specific to the debtors and the economic
environment.
31
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
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4.2.6 Carrying amounts by category and maturity profile of financial assets and liabilities
CARRYING AMOUNTS OF FINANCIAL ASSETS AND LIABILITIES BY
CATEGORY
VALUES at 31 DECEMBER 2025
Balance sheet item, EUR 1,000
Note
Amortised cost
Carrying value
of balance
sheet items
Fair value
Non-current financial assets
Loan receivables
25 581
25 581
25 581
Total non-current financial assets
25 581
25 581
25 581
Current financial assets
Trade receivables and other non-interest -bearing
receivables
2.1.4
17 523
17 523
17 523
Cash and cash equivalents
288 706
288 706
288 706
Total Current assets
306 229
306 229
306 229
Carrying amount by category
331 811
331 811
331 811
Non-current financial liabilities
Bonds and notes
4.2.8-9
-1 787 761
-1 787 761
-1 746 193
Loans from financial institutions
4.2.8-9
-349 776
-349 776
-349 776
Interest-bearing non-current liabilities
- Leases
3.3
-111
-111
-111
Total interest-bearing non-current liabilities
-2 137 648
-2 137 648
-2 096 080
Bonds and notes
Loans from financial institutions
4.2.8-9
-140 000
-140 000
-140 000
Other current interest-bearing liabilities
- Leases
3.3
-223
-223
-223
Trade payables
2.3.2
-3 045
-3 045
-3 045
Total current financial liabilities
-143 268
-143 268
-143 268
Carrying amount by category
-2 280 916
-2 280 916
-2 239 348
The valuation of financial assets and liabilities at fair value has not had an effect on the income state-
ment or the statement of comprehensive income in 2025 and 2024.
VALUES at 31 DECEMBER 2024
Balance sheet item, EUR 1,000
Note
Amortised cost
Carrying value
of balance
sheet items
Fair value
Current financial assets
Trade receivables and other non-interest -bearing
receivables
2.1.4
15 668
15 668
15 668
Cash and cash equivalents
42 745
42 745
42 745
Total Current assets
58 412
58 412
58 412
Carrying amount by category
58 412
58 412
58 412
Non-current financial liabilities
Bonds and notes
4.2.8-9
-1 685 033
-1 685 033
-1 605 853
Loans from financial institutions
4.2.8-9
-250 000
-250 000
-250 000
Interest-bearing non-current liabilities
- Leases
3.3
-235
-235
-235
Total interest-bearing non-current liabilities
-1 935 268
-1 935 268
-1 856 088
Bonds and notes
4.2.8-9
Other current interest-bearing liabilities
- Leases
3.3
-237
-237
-237
Trade payables
2.3.2
-8 497
-8 497
-8 497
Total current financial liabilities
-8 734
-8 734
-8 734
Carrying amount by category
-1 944 002
-1 944 002
-1 864 822
CASH AT BANKS AND ON HAND
Elenia had short-term bank deposits amounting to EUR
288.7 million (2024: EUR 42.7 million). Cash and cash
equivalents comprise cash, bank deposits and highly liquid fund investments. All bank deposits were denominated in euros.
BONDS AND NOTES
32
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
financial statements
Virhe.
Kirjanmerkkiä ei ole määritetty.
1
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määritetty.
2
3
4
5
6
The fair value of the bonds have been calculated based on the
required rate of return estimated using the EUR-denominated
swap rate yield curve and the estimated risk premium calcu-
lated based on the market quotes of Elenia Verkko Oyj's bonds
at the balance sheet date.
FINANCIAL LIABILITIES
Interest-bearing liabilities increased by EUR 342.4 million
(2024: decrease EUR 0.8 million) during the year and interest-
bearing liabilities at the balance sheet date totaled EUR 2,278
million (2024: EUR 1,936 million).
The fair value of short-term trade receivables and paya-
bles, other non-interest-bearing receivables, finance leases
and cash and cash equivalents correspond essentially the car-
rying amount.
The table below summarizes the maturity profile of the Group's financial liabilities based on contractual payments.
The loans include principal and interest.
31 December 2025
Average
interest
rate %
Maturity
EUR 1,000
Within 1 year
1-5 years
Over 5 years
Total
Loans from financial institutions
2,92 %
285 736
106 693
392 429
Bonds
2,72 %
584 474
914 986
1 499 459
Notes
2,71 %
234 107
364 619
598 725
Lease liabilities
111
0
111
Total interest-bearing non-current liabilities
1 104 427
1 386 297
2 490 724
Loans from financial institutions
10 349
10 349
Bonds
171 309
171 309
Notes
14 059
14 059
Lease liabilities
223
223
Total current interest -bearing liabilities
195 940
195 940
Trade payables
3 045
0
0
3 045
Total current financial liabilities
3 045
0
0
3 045
Total
198 985
1 104 427
1 386 297
2 689 709
31 December 2024
Average
interest
rate %
Maturity
EUR 1,000
Within 1 year
1-5 years
Over 5 years
Total
Loans from financial institutions
4,03 %
90 125
212 653
302 777
Bonds
1,96 %
824 038
596 744
1 420 782
Notes
2,71 %
161 344
451 440
612 784
Lease liabilities
235
0
235
Total interest-bearing non-current liabilities
1 075 742
1 260 836
2 336 577
Loans from financial institutions
10 973
10 973
Bonds
26 275
26 275
Notes
14 059
14 059
Lease liabilities
237
237
Total current interest -bearing liabilities
51 543
51 543
Trade payables
8 497
0
0
8 497
Total current financial liabilities
8 497
0
0
8 497
Total
60 040
1 075 742
1 260 836
2 396 618
33
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
financial statements
Virhe.
Kirjanmerkkiä ei ole määritetty.
1
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Virhe. Kirjanmerkkiä ei ole
määritetty.
2
3
4
5
6
4.2.7 Changes in financial liabilities arising from financing activities
CHANGES IN LIABILITIES ARISING FROM FINANCING ACTIVITIES
4.2.8 Fair value hierarchy of financial assets and liabili-
ties
ACCOUNTING POLICY
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS
Fair value related to disclosures for financial instru-
ments and non-financial assets that are measured at fair
value or where fair values are disclosed, are summarised in
the following notes:
●
Disclosures for valuation methods, significant estimates
and assumptions Notes 4.2.6 and 4.2.8
●
Quantitative disclosures of fair value measurement hier-
archy Note 4.2.8
●
Financial instruments (including those carried at amor-
tised cost) Note 4.2.6
Fair value is the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction be-
tween market participants at the measurement date. The
fair value measurement is based on the presumption that
the transaction to sell the asset or transfer the liability takes
place either:
●
In the principal market for the asset or liability, or
●
In the absence of a principal market, in the most advan-
tageous market for the asset or liability
The principal or the most advantageous market must be ac-
cessible by the Group.
The fair value of an asset or a liability is measured using
the assumptions that market participants would use when
pricing the asset or liability, assuming that market partici-
pants act in their economic best interest. The Group uses
valuation techniques that are appropriate in the circum-
stances and for which sufficient data are available to meas-
ure fair value.
The fair value of financial instruments that are traded in
active markets at each reporting date is determined by ref-
erence to quoted market prices or dealer price quotations,
without any deduction for transaction costs.
The "Other changes" column includes the effect of reclassification of non-current portion of obligations under finance leases to
current due to passage of time, the effect of capitalization of interests of other long-term loans and the effect amortisation of trans-
action costs of bonds and notes using the effective interest rate method.
The Group classifies interest paid as cash flows from operating activities.
EUR 1,000
1 January
2025
Cash flows
New leases
IFRS 16
Other changes
3
1 December
2025
Current interest-bearing loans and borrowings (excl.
items listed below)
0
0
0
140 000
140 000
Current obligations under lease liabilities
237
-257
0
243
223
Non-current interest-bearing loans and borrowings
(excl. items listed below)
1 935 033
347 160
0
-144 657
2 137 536
Non-current obligations under lease liabilities
235
0
120
-244
111
EUR 1,000
1 January
2024
Cash flows
New leases
IFRS 16
Other changes
31 December
2024
Current obligations under lease liabilities
111
-234
0
360
237
Non-current interest-bearing loans and borrowings
(excl. items listed below)
1 934 021
0
0
1 011
1 935 033
Non-current obligations under lease liabilities
548
0
364
-678
235
34
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
financial statements
Virhe.
Kirjanmerkkiä ei ole määritetty.
1
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määritetty.
2
3
4
5
6
FAIR VALUE HIERARCHY
All assets and liabilities for which fair value is measured or dis-
c
losed in the consolidated financial statements are categorised
within the fair value hierarchy, described as follows, based on
the lowest level input that is significant to the fair value meas-
urement as a whole:
Level 1 Quoted (unadjusted) market prices in active markets
for identical assets or liabilities
that is significant to the fair value measurement is directly or in-
directly observable
Level 3 Valuation techniques for which the lowest level input
that is significant to the fair value measurement is unobservable
For financial instruments not traded in an active market, the
fair value is determined using appropriate valuation tech-
niques. Such techniques may include:
●
Using recent arm’s length market transactions
●
Reference to the current fair value of another instrument
that is substantially the same
●
A discounted cash flow analysis or other valuation mod-
els
For assets and liabilities that are recognised in the consoli-
dated financial statements at fair value on a recurring basis,
the Group determines whether transfers have occurred be-
tween levels in the hierarchy by re-assessing categorisation
(based on the lowest level input that is significant to the fair
value measurement as a whole) at the end of each reporting
period. The transfers between levels of the fair value hierar-
chy shall be disclosed at the date of the event or change in
circumstances that caused the transfer.
For fair value disclosures, the Group has determined
classes of assets and liabilities on the basis of the nature,
characteristics and risks of the asset or liability and the level
of the fair value hierarchy as explained next.
An analysis of fair values of financial instruments and
further details as to how they are measured are provided in
Notes 4.2.6 and 4.2.8.
As at 31 December 2025, the Group held the following financial instruments carried at amortised cost in the con-
solidated statement of financial position:
FINANCIAL ASSETS AND LIABILITIES
Level 2
Level 3
Total
EUR 1,000
2025
2024
2025
2024
2025
2024
2025
2024
Financial liabilities
EUR 1,000
Financial instruments, current liabili-
ties
Bonds and notes
0
0
-140 000
0
0
0
-140 000
0
Total current financial liabilities
0
0
-140 000
0
0
0
-140 000
0
Financial instruments, non-current lia-
bilities
Bonds and notes
0
0
-1 746 193
-1 605 853
0
0
-1 746 193
-1 605 853
Total non-current financial liabilities
0
0
-1 746 193
-1 605 853
0
0
-1 746 193
-1 605 853
Total financial liabilities
0
0
-1 886 193
-1 605 853
-1 886 193
-1 605 853
35
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
financial statements
Virhe.
Kirjanmerkkiä ei ole määritetty.
1
Virhe. Viitteen lähdettä ei löytynyt.
Virhe. Kirjanmerkkiä ei ole
määritetty.
2
3
4
5
6
4.2.9 Risk management
FINANCIAL RISK MANAGEMENT
The interest rate risk is managed primarily by entering
into loans with fixed interest. At the balance sheet date 86%
(2024: 86%) of the loans were fixed rate loans.
A parallel shift of +/- 1.0 percentage points in the inter-
est rate curve at the balance sheet date would have EUR +/-
3.7 million (2024: EUR +/-2.7 million) effect on the interests
relating to floating rate loans.
COMMODITY PRICE RISK
Changes in commodity prices affect mainly electricity pur-
chases used for distribution losses and purchases of electric-
ity network components. The Group has a hedging policy
covering electricity purchases for at least the following 2-3
years to mitigate the impact of short-term price fluctua-
tions. The majority of electricity purchases are hedged for
the following year, with a declining hedging profile for the
subsequent years. The regulatory methods governing elec-
tricity distribution operations provide protection against
changes in commodity prices over the medium term.
Changes in raw material prices such as oil, aluminum and
copper affecting purchases of network components, causes
fluctuations primarily in capital expenditure.
COUNTERPARTY AND CREDIT RISK
Accepted financial counterparties are counterparties ap-
proved in existing financing agreements and other counter-
parties separately approved by the Board of Directors. Cash
and cash equivalents consist solely of short-term bank de-
posits.
The Group has financial covenants relating to interest cover
and leverage. The covenants are typical in such arrange-
ments. For each relevant period until 31 December 2027,
the trigger event ratio levels are 1.46x for ICR and 10.18x
for LR and the default ratios are 0.96x for ICR and 11.33x
for LR. At the end of 2025, the ICR and LR were 4.59x and
8.15x, respectively. At end of 2024, the corresponding levels
were 4.53x and 8.73x. Elenia Verkko Oyj is in compliance
with the financial covenants. The covenants are tested semi-
annually. Elenia Verkko Oyj always retains adequate head-
room to both financial covenants on a historical and for-
ward-looking basis. Elenia Verkko Oyj monitors the finan-
cial markets in order to carry out loan refinancing at an ap-
propriate time, ahead of the due date of the current loans.
At the balance sheet date, the company had no draw downs
on the Capex credit limit (2024: no drawings) nor the work-
ing capital limit (2024: no drawings) granted by interna-
tional banks. At the balance sheet date, Elenia Verkko Oyj
had credit facilities of EUR 250 million from the European
Investment Bank (EIB) and EUR 100 million from the Nordic
Investment Bank (NIB). Both facilities have been fully drawn
and mature between 2028 and 2033.
INTEREST RATE RISK
Elenia is exposed to interest rate risk mainly through its in-
terest-bearing net debt. The objective of the Group's inter-
est rate risk management is to limit volatility of interest ex-
penses in the income statement. The Group's interest rate
risk management is handled by Group Treasury.
LIQUIDITY RISK
Liquidity risk refers to the risk of the Group not having ade-
quate liquid assets to finance its operations, pay interest and
repay its loans.
The management of liquidity risk is divided into short-
term and long-term liquidity management. Short-term li-
quidity risk is managed by cash flow planning that takes into
account the expected trade receivables, trade payables and
other known expenses for a period of two weeks. The ade-
quacy of long-term liquidity is assessed by 12-month fore-
casts conducted monthly.
CURRENCY RISK
Elenia operates in Finland and uses the Euro as its primary
operating currency. Elenia's currency risk is based on pur-
chases of raw materials and services denominated in curren-
cies other than the Euro. The purchases of raw materials and
services denominated in currencies other than the Euro
have a negative effect on Elenia's result and cash flow in the
event that the currencies in question appreciate against the
Euro. As the Group's purchasing operations are currently
primarily focused on Finland, the currency risk related to
purchasing is limited.
The Group has guidelines for the management of cur-
rency risk as part of the purchasing policy for network oper-
ations approved by the Management team . Currency risks
that have an impact on profit or loss are primarily hedged
operationally through contractual currency rate clauses.
Operating profit or finance costs does not include mate-
rial exchange rate differences in 2025. At the end of 2025
there were no outstanding receivables or payables in for-
eign currencies.
REFINANCING RISK
Elenia Verkko Oyj issues bonds and notes. Bonds are issued
under the EMTN programme and listed at the Dublin Stock
Exchange. Bonds issued prior to 2025 were listed on the
London Stock Exchange. Notes are unlisted private place-
ments targeted mostly to the North American investors
through private placements.
CASH AND CASH EQUIVALENTS AND COMMITTED UNUTILIZED CREDIT FACILITIES
31 December 2025
EUR 1,000
Facility amount
In use
Available amount
Maturity
Capex facility
250 000
0
250 000
1 - 5 years
Working Capital facility
50 000
0
50 000
1 - 5 years
Liquidity facility
70 000
0
70 000
1 - 5 years
EIB credit facility
250 000
250 000
0
1 - 5 years
NIB credit facility
100 000
100 000
0
1 - 5 years
Cash and cash equivalents
288 706
Total
720 000
350 000
658 706
36
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
financial statements
Virhe.
Kirjanmerkkiä ei ole määritetty.
1
Virhe. Viitteen lähdettä ei löytynyt.
Virhe. Kirjanmerkkiä ei ole
määritetty.
2
3
4
5
6
4.3 OTHER COMMITMENTS AND CONTINGENCIES
OTHER COMMITMENTS
EUR 1,000
2025
2024
Registered floating charges:
Provided on behalf of own and Group liabili-
ties
9 000 000
9 000 000
Mortgages
200 000
202 000
Refundable connection fees
284 222
284 633
Group bank accounts have been pledged as security for loans from fi-
nancial institutions and bonds.
4.4 EQUITY
Share capital
The share is issued and fully paid.
Reserve for invested unrestricted equity
The reserve for invested non-restricted equity comprises of all
other equity investments and paid share subscription price, that
has not been specifically booked as share capital.
Equity repayment
Elenia Verkko Oyj decided on March 12, 2025 the equity repay-
ment of €41.2m and on December 15, 2025 the equity repay-
ment of €101.2m. The equity repayment was done from Unre-
stricted equity.
Elenia Verkko Oyj decided on April 25,2024 the equity re-
payment of €56.6m. The equity repayment was done from Unre-
stricted equity.
Equity investment and common control reserve
In 2024 or 2025 there were no restructurings.
EUR 1,000
2025
2024
Reserve for invested unrestricted
equity 1 Jan
1 600 847
1 657 400
Equity repayment
-142 420
-56 553
Reserve for invested unrestricted
equity 31 Dec
1 458 427
1 600 847
EUR 1,000
2025
2025
Common control reserve 1 Jan
-2 206 243
-2 206 243
Common control reserve 31 Dec
-2 206 243
-2 206 243
Retained earnings
The change in retained earnings of 11 937 thousand euros for
the fiscal year 2025 is due to group contribution received from
Elenia Oy. The change in retained earnings of 18 893 thousand
euros for the fiscal year 2024 consists of the group contribution
received from Elenia Oy.
Earnings per share
Earnings per share are calculated by dividing the profit or loss at-
tributable to equity holders of the parent by the average number
of shares during the reporting period:
EUR
2025
2024
Profit attributable to equity holders
of the parent, EUR
55 593 588
64 137 934
Average number of shares, pcs
90
90
Earnings/share, EUR - basic = di-
l
uted
617 707
712 644
37
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
financial statements
Virhe.
Kirjanmerkkiä ei ole määritetty.
1
Virhe. Viitteen lähdettä ei löytynyt.
Virhe. Kirjanmerkkiä ei ole
m
ääritetty.
2
3
4
5
6
5 CONSOLIDATION
5.1 BASIS OF CONSOLIDATION
The consolidated financial statements comprise the parent com-
pany Elenia Oy and its subsidiaries which the Group controls.
Control is achieved when the Group is exposed, or has rights, to
variable returns from its involvement with the investee and has
ability to affect those returns through its power over the inves-
tee. The consolidated financial statements also include, as asso-
ciated companies, any companies over which the Group has sig-
nificant influence. Significant influence generally involves a
shareholding of over 20% of the voting rights or when the Group
has the power to participate in the financial and operating policy
decisions of the investee but has not control or joint control over
those policies.
Subsidiaries are included in the consolidated financial state-
ments using the acquisition cost method. The acquisition cost is
measured as the aggregate of the fair value of the assets given
and liabilities incurred or assumed at the date of exchange. Costs
related to acquisitions are recorded on the consolidated state-
ment of profit or loss as other operating expenses. The excess of
the cost of acquisition over the fair value of the Group’s share of
the net assets acquired is recorded as goodwill. Subsidiaries are
fully consolidated from the date on which control is transferred
to the Group.
Intercompany transactions, receivables and debts are elimi-
nated in the consolidated financial statements.
Where necessary, the accounting policies of subsidiaries
have been changed to ensure consistency with the accounting
policies adopted by the Group.
As at 31 December 2025, the subsidiaries do not have non-
controlling interests.
5.2 BUSINESS COMBINATIONS AND GOODWILL
Business combinations are accounted for using the acquisition
method. The cost of an acquisition is measured as the aggregate
of the consideration transferred, which is measured at acquisi-
tion date fair value and the amount of any non-controlling inter-
est in the acquiree. For each business combination, the Group
elects whether to measure the non-controlling interest in the ac-
quiree at fair value or at the proportionate share of the ac-
quiree’s identifiable net assets. Acquisition-related costs are ex-
pensed as incurred and included in administrative expenses.
When the Group acquires a business, it assesses the financial
assets and liabilities assumed for appropriate classification and
designation in accordance with the contractual terms, economic
circumstances and pertinent conditions as at the acquisition
date. This includes the separation of embedded derivatives in
host contracts by the acquiree.
If the business combination is achieved in stages, the previ-
ously held equity interest is remeasured at its acquisition date
fair value and any resulting gain or loss is recognised in the state-
ment of profit or loss. It is then considered in the determination
of goodwill. Any contingent consideration to be transferred by
the acquirer will be recognised at fair value at the acquisition
date. Contingent consideration classified as an asset or liability
that is a financial instrument and within the scope of IFRS 9 Fi-
nancial Instruments, is measured at fair value with changes in
fair value recognised either in the statement of profit or loss or
as a change to other comprehensive income. If the contingent
consideration is not within the scope of IFRS 9, it is measured in
accordance with the appropriate IFRS. Contingent consideration
that is classified as equity is not remeasured and subsequent set-
tlement is accounted for within equity.
Goodwill is initially measured at cost, being the excess of the
aggregate of the consideration transferred and the amount rec-
ognised for non-controlling interests, and any previous interest
held, over the net identifiable assets acquired and liabilities as-
sumed. If the fair value of the net assets acquired is in excess of
the aggregate consideration transferred, the Group re-assesses
whether it has correctly identified all of the assets acquired and
all of the liabilities assumed and reviews the procedures used to
measure the amounts to be recognised at the acquisition date. If
the reassessment still results in an excess of the fair value of net
assets acquired over the aggregate consideration transferred,
then the gain is recognised in the consolidated statement of
profit or loss.
After initial recognition, goodwill is measured at cost less any
accumulated impairment losses. For the purpose of impairment
testing, goodwill acquired in a business combination is, from the
acquisition date, allocated to each of the Group’s cash-generat-
ing units that are expected to benefit from the combination, irre-
spective of whether other assets or liabilities of the acquiree are
assigned to those units.
Where goodwill has been allocated to a cash-generating unit
and part of the operation within that unit is disposed of, the
goodwill associated with the disposed operation is included in
the carrying amount of the operation when determining the gain
or loss on disposal. Goodwill disposed in these circumstances is
measured based on the relative values of the disposed operation
and the portion of the cash-generating unit retained.
5.3 ACQUISITIONS AND DISPOSALS
In 2025 or 2024 there were no business disposals and no acqui-
sitions to be accounted for as business combinations.
38
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
financial statements
Virhe.
Kirjanmerkkiä ei ole määritetty.
1
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2
3
4
5
6
5.4 OTHER CHANGES IN ACCOUNTING POLICIES AND
DISCLOSURES / NEW AND AMENDED STANDARDS
AND INTERPRETATIONS ISSUED BUT NOT YET
EFFECTIVE
5.4.1 Changes in accounting policies and disclosures
The Group applied for the first-time certain standards and
amendments which are effective for annual periods beginning on
or after 1 January 2025. The nature of each new standard and
amendment adopted by the Group has been described in the rel-
evant note. New standards and amendments not material for the
Group have been described below:
AMENDMENTS TO IAS 21 THE EFFECTS OF CHANGES IN
FOREIGN EXCHANGE RATES: LACT OF EXCHANGEABILITY
The amended standards will be effective for annual periods be-
ginning on or after 1 January 2025 with early adoption permit-
ted.
The amendments affect an entity that has transactions or op-
erations in a foreign currency that is not convertible into another
currency for a specified purpose at the measurement date.
A currency is convertible when it has the ability to obtain the
other currency (subject to normal administrative delays) and the
transaction would occur through a market or exchange mecha-
nism that creates enforceable rights and obligations.
The amendments provide additional guidance on determin-
ing when a currency is convertible. When a currency is not con-
vertible into another currency at the measurement date, an en-
tity shall estimate the exchange rate prevailing on that date. In
estimating the exchange rate, an entity’s objective is to describe
the rate at which an orderly exchange transaction would take
place between market participants in prevailing economic condi-
tions at the measurement date. In such cases, an entity shall also
provide additional information.
The amendments do not have a material impact on the con-
solidated financial statements.
AMENDMENTS TO THE CLASSIFICATION AND MEASURE-
MENT OF FINANCIAL INSTRUMENTS (AMENDMENTS TO
IFRS 9 AND IFRS 7)
The amended standards will be effective for annual periods be-
ginning on or after 1 January 2026 with early adoption permit-
ted.
The amendments provide additional guidance and clarifica-
tion.
• Clarify the requirements for the recognition and derecogni-
tion of certain financial assets and liabilities, including a new ex-
emption for some financial liabilities that are settled through an
electronic funds transfer system.
• Clarify and add guidance for assessing whether the future
cash flows of a financial asset consist solely of payments of prin-
cipal and interest.
• Add new disclosure requirements for certain instruments
whose contractual terms can change cash flows (such as instru-
ments that have features related to achieving environmental, so-
cial and governance (ESG) objectives).
• Update disclosure requirements for equity instruments
classified as at fair value through other comprehensive income.
The amendments have a material impact on the consolidated
financial statements.
CONTRACTS REFERENCING NATURE-DEPENDENT ELEC-
TRICITY AMANDMENTS TO IFRS 9 AND IFRS 7
The amended standards will be effective for annual periods be-
ginning on or after 1 January 2026 with early adoption permit-
ted.
Electricity sources that depend on natural conditions, such as
wind or solar power, are increasingly being used to reduce car-
bon emissions. These are often structured as long-term power
purchase agreements (PPAs), which can be either physical or vir-
tual. A key challenge is that electricity production depends on
natural conditions, which makes it difficult to apply certain as-
pects of IFRS 9.
The IASB has made amendments to the “own use” exception
and hedge accounting requirements in IFRS 9 and has added spe-
cific disclosure requirements to IFRS 7. These amendments only
apply to agreements that expose an entity to fluctuations in the
amount of electricity because its source of production depends
on uncontrollable natural conditions. These are referred to in the
amendments as “power contracts that depend on natural condi-
tions”.
The amendments might have a material impact on the consol-
idated financial statements.
5.4.2 New and amended standards and interpretations
issued but not yet effective
Certain new and amended standards and interpretations are is-
sued but not yet effective up to the date of issuance of the con-
solidated financial statements. The Group intends to adopt these
standards, amendments and interpretations, if applicable, when
they become effective. The nature of each new standard and
amendment to be adopted by the Group has been described be-
low:
IFRS 18: PRESENTATION AND DISCLOSURE IN FINANCIAL
STATEMENTS
The standard will be effective for annual periods beginning on or
after 1 January 2027 with early adoption permitted.
the income statement and mandatory subtotals, as well as the re-
quirement to present additional information on certain key fig-
ures defined by management.
The standard has a considerable impact on the consolidated fi-
nancial statements
REGULATORY ASSETS AND REGULATORY LIABILITIES: POSSI-
BLE NEW STANDARD
The International Accounting Standards Board published in Jan-
uary 2021 an exposure draft on Regulatory Assets and Regula-
tory Liabilities. The Exposure Draft sets out the IASB’s proposals
for a model to account for regulatory assets and regulatory
liabilities. If issued as a new IFRS Standard, the proposals would
replace IFRS
14
Regulatory Deferral Accounts
. The IASB discussed
feedback on the Exposure Draft during October and November
2021 and will begin redeliberating the proposals in the Exposure
Draft at a future meeting.
Group is following closely the development of this initiative
a
nd evaluating impacts.
39
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Virhe.
Kirjanmerkkiä ei ole määritetty.
Notes to the consolidated
financial statements
Virhe.
Kirjanmerkkiä ei ole määritetty.
1
Virhe. Viitteen lähdettä ei löytynyt.
Virhe. Kirjanmerkkiä ei ole
määritetty.
2
3
4
5
6
6 OTHER NOTES
6.1 TAXES
6.1.1 Income taxes
ACCOUNTING POLICY
INCOME TAXES
Current income tax assets and liabilities for the current pe-
riod are measured at the amount expected to be recovered
from or paid to the taxation authorities. The tax rates and
tax laws used to compute the amount are those that are en-
acted or substantively enacted at the reporting date in the
countries where the Group operates and generates taxable
income.
Current income tax relating to items recognised directly
in equity is recognised in equity and not in the consolidated
statement of profit or loss. Management periodically evalu-
ates positions taken in the tax returns with respect to situa-
tions in which applicable tax regulations are subject to inter-
pretation and establishes provisions where appropriate.
SIGNIFICANT ACCOUNTING JUDGEMENTS,
ESTIMATES AND ASSUMPTIONS
INCOME TAXES
Uncertainties exist with respect to the interpretation of com-
plex tax regulations, changes in tax laws, and the amount and
timing of future taxable income. Given the long-term nature
and complexity of existing contractual agreements, differ-
ences arising between the actual results and the assumptions
made, or future changes to such assumptions, could necessi-
tate future adjustments to the tax estimation.
The Group companies establish provisions based on rea-
sonable estimates. In the case that the final taxes are differ-
ent than the amounts initially recognized, these differences
will affect income tax and provisions for deferred tax during
the year when the determination of tax differences took
place. Management estimates that the estimated tax shown
in the consolidated financial statement represents a reasona-
ble estimate of the Group's tax position.
The major components of income tax expense for the
years ended 31 December 2025 and 2024 are:
CONSOLIDATED STATEMENT OF PROFIT AND LOSS
EUR 1,000
2025
2024
Current income tax charge
-2 507
-2 503
Adjustments in respect of current income tax
of previous periods
0
-3
Deferred taxes
-15 641
-18 311
Income tax expense reported in the consoli-
dated statement of profit or loss
-18 148
-20 817
CONSOLIDATED STATEMENT OF OCI
EUR 1,000
2025
2024
Deferred tax related to items recognised in
OCI during the year:
Remeasurement gains (losses) on defined
benefit plans
2
-13
Deferred tax charged to OCI
2
-13
INCOME TAX RATE
Tax on profit before tax deviates from the nominal tax calculated ac-
cording to the tax rate as follows:
EUR 1,000
2025
2024
Profit before tax
73 748
84 901
Theoretical income tax using the nominal tax
rate of 20.0% (2024: 20.0%)
-14 750
-16 980
- tax-free income items
-192
0
- expenses that are non-deductible in taxation
-819
-55
- adjustment of taxes based on previous peri-
ods
0
-3
- deductible income not recorded in profit and
loss (group contribution)
-2 387
-3 779
Income tax in the income statement
-18 148
-20 817
Effective tax rate was 25% (2024: 25%)
40
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Virhe.
Kirjanmerkkiä ei ole määritetty.
Notes to the consolidated
financial statements
Virhe.
Kirjanmerkkiä ei ole määritetty.
1
Virhe. Viitteen lähdettä ei löytynyt.
Virhe. Kirjanmerkkiä ei ole
määritetty.
2
3
4
5
6
6.1.2 Deferred tax
ACCOUNTING POLICY
DEFERRED TAX
Deferred tax is provided using the liability method on tempo-
rary differences between the tax bases of assets and liabilities
and their carrying amounts for financial reporting purposes at
the reporting date.
Deferred tax liabilities are recognised for all taxable tempo-
rary differences, except:
●
When the deferred tax liability arises from the initial
recognition of goodwill or an asset or liability in a transac-
tion that is not a business combination and, at the time of
the transaction, affects neither the accounting profit nor
taxable profit or loss.
●
In respect of taxable temporary differences associated
with investments in subsidiaries, associates and interests
in joint ventures, when the timing of the reversal of the
temporary differences can be controlled, and it is probable
that the temporary differences will not reverse in the fore-
seeable future.
Deferred tax assets are recognised for all deductible tempo-
rary differences, the carry forward of unused tax credits and
any unused tax losses. Deferred tax assets are recognised to
the extent that it is probable that taxable profit will be availa-
ble against which the deductible temporary differences, and
the carry forward of unused tax credits and unused tax losses
can be utilised, except:
●
When the deferred tax asset relating to the deductible
temporary difference arises from the initial recognition of
an asset or liability in a transaction that is not a business
combination and, at the time of the transaction, affects nei-
ther the accounting profit nor taxable profit or loss.
●
In respect of deductible temporary differences associated
with investments in subsidiaries, associates and interests
in joint ventures, deferred tax assets are recognised only
to the extent that it is probable that the temporary differ-
ences will reverse in the foreseeable future and taxable
profit will be available against which the temporary differ-
ences can be utilized.
The carrying amount of deferred tax assets is reviewed at
each reporting date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available
to allow all or part of the deferred tax asset to be utilised. Un-
recognised deferred tax assets are reassessed at each report-
ing date and are recognised to the extent that it has become
probable that future taxable profits will allow the deferred tax
asset to be recovered.
Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply in the year when the asset is
realised or the liability is settled, based on tax rates (and tax
laws) that have been enacted or substantively enacted at the
reporting date.
Deferred tax relating to items recognised outside the state-
ment of profit or loss is recognised outside the statement of
profit or loss. Deferred tax items are recognised in correlation
to the underlying transaction either in other comprehensive in-
come or directly in equity.
The Group offsets deferred tax assets and deferred tax lia-
bilities if, and only if, it has a legally enforceable right to set off
current tax assets and current tax liabilities and the deferred
tax assets and deferred tax liabilities relate to income taxes
levied by the same taxation authority on either the same taxa-
ble entity or different taxable entities which intend either to
settle current tax liabilities and assets on a net basis, or to real-
ise the assets and settle the liabilities simultaneously, in each
future period in which significant amounts of deferred tax lia-
bilities or assets are expected to be settled or recovered.,
ACCOUNTING JUDGEMENTS
DEFERRED TAX
The Group recognizes deferred tax assets by taking into ac-
count their recoverability, based on the existence of de-
ferred tax liabilities with similar maturities for netting and
the possibility of generation of sufficient future taxable
profits. The management assessed the deferred tax booked
in the financial statements to be recoverable.
The estimations and the actual flows of taxes paid or re-
ceived could differ from the estimates made by the Group as
a result of unforeseen future legal changes in estimates.
ACCOUNTING ESTIMATES
DEFERRED TAX
The Group has deferred tax assets and liabilities which are
expected to be realised through the consolidated statement
of profit or loss over certain periods of time in the future.
The calculation of deferred tax assets and liabilities involves
making certain assumptions and estimates regarding the fu-
ture tax consequences attributable to differences between
the carrying amounts of assets and liabilities as recorded in
the financial statements and their tax basis.
41
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Virhe.
Kirjanmerkkiä ei ole määritetty.
Notes to the consolidated
financial statements
Virhe.
Kirjanmerkkiä ei ole määritetty.
1
Virhe. Viitteen lähdettä ei löytynyt.
Virhe. Kirjanmerkkiä ei ole
määritetty.
2
3
4
5
6
CHANGE IN DEFERRED TAX ASSETS AND LIABILITIES IN 2025
Deferred tax assets
Balance
sheet 1
Jan 2025
Recognised in
the statement of
profit or loss
Recognised in
other compre-
hensive income
Balance
sheet 31 Dec
2025
EUR 1,000
Defined benefit plans
20
-3
2
18
Liabilities related to contracts with cus-
tomers
11 657
2 204
0
13 861
Finance leases
6
0
0
6
Cloud computing arrangements
36
-8
0
28
Total
11 719
2 193
2
13 913
Deferred tax assets
11 719
13 913
Deferred tax liabilities
Balance
sheet 1
Jan 2025
Recognised in
the statement of
profit or loss
Recognised in
other compre-
hensive income
Balance
sheet 31 Dec
2025
EUR 1,000
Interest-bearing liabilities
794
275
0
1 069
Depreciation differences
148 527
21 872
0
170 400
Measurement of assets at fair value in
acquisition
45 449
-4 314
0
41 135
Total
194 770
17 834
0
212 604
Deferred tax liabilities
194 770
212 604
CHANGE IN DEFERRED TAX ASSETS AND LIABILITITES IN 2024
Deferred tax assets
Balance
sheet 1
Jan 2024
Recognised in
the statement of
profit or loss
Recognised in
other compre-
hensive income
Balance
sheet
31 Dec2024
EUR 1,000
Defined benefit plans
39
-6
-13
20
Liabilities related to contracts with cus-
tomers
9 899
1 758
0
11 657
Finance leases
11
-5
0
6
Cloud computing arrangements
18
18
0
36
Total
9 967
1 765
-13
11 719
Deferred tax assets
9 967
11 719
Deferred tax liabilities
Balance
sheet 1
Jan 2024
Recognised in
the statement of
profit or loss
Recognised in
other compre-
hensive income
Balance
sheet
31 Dec2024
EUR 1,000
Interest-bearing liabilities
949
-155
0
794
Depreciation differences
123 982
24 546
0
148 527
Measurement of assets at fair value in
acquisition
49 762
-4 313
0
45 449
Total
174 693
20 077
0
194 770
Deferred tax liabilities
174 693
194 770
42
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Virhe.
Kirjanmerkkiä ei ole määritetty.
Notes to the consolidated
financial statements
Virhe.
Kirjanmerkkiä ei ole määritetty.
1
Virhe. Viitteen lähdettä ei löytynyt.
Virhe. Kirjanmerkkiä ei ole
määritetty.
2
3
4
5
6
6.2 PENSIONS AND OTHER POST-EMPLOYMENT
BENEFITS
ACCOUNTING POLICY
PENSION OBLIGATIONS
Pension arrangements are categorised as defined benefits
or defined contribution plans. Under defined contribution
plans, the Group pays fixed pension contributions and has
no legal or constructive obligation to make additional pay-
ments. This category includes the Finnish Statutory Employ-
ment Pension Scheme (TyEL). Payments relating to defined
contribution pension plans are recognised in the consoli-
dated statement of profit or loss under personnel expenses
for the period in which they are due. For defined benefit
plans, pension costs are assessed using the projected unit
credit method. The cost of providing pensions is recorded in
the consolidated statement of profit or loss as to spread the
service cost over the service lives of employees. The defined
benefit obligation is calculated annually on the reporting
date and is measured as the present value of the estimated
future cash flow.
The Group applies the IAS 19 standard to calculations on
defined benefit pension plans. Under this standard, all actu-
arial gains and losses are recognised in the period in which
they occur in total in other comprehensive income and the
net defined benefit liability or asset is presented in full on
the consolidated statement of financial position. The ex-
pected return on plan assets is calculated using the same
discount rate as applied for discounting the benefit obliga-
tion to its present value. Current and past service costs as
well as net interest on net defined benefit liability are rec-
orded in the consolidated statement of profit or loss. Items
arising from the remeasurement of the net defined benefit
liability are recognised in consolidated statement of other
comprehensive income. The Group has defined contribution
pension plans concerning additional pensions. The benefits
are insured by an insurance company.
The benefits include both defined benefit (DB) and de-
fined contribution (DC) parts as defined in IAS 19. In the fol-
lowing tables, figures are presented for DB part of the plan.
Items recognised on the consolidated statement of financial po-
sition at 31 December:
EUR 1,000
2025
2024
Items recognised on the consolidated statement
of financial position at 31 December
Current value of funded obligations
1 362
1 528
Fair value of assets
-1 269
-1 429
Deficit
93
99
Value of the obligation on the consolidated
statement of financial position
93
99
The obligations of defined benefit pension plans have changed as
follows:
EUR 1,000
2025
2024
Obligation at the beginning of the year
1 528
1 557
Interest expenses
45
60
Actuarial losses
-35
90
Benefits paid
-176
-180
Obligation at the end of the year
1 362
1 528
The fair value of the assets of defined benefit pension plans has
developed as follows:
EUR 1,000
2025
2024
Fair value of plan assets at the beginning of the
year
1 429
1 365
Expected income from assets
42
54
Actuarial gains
-43
158
Payments by the employer
17
33
Benefits paid
-176
-180
Fair value of plan assets at the end of the year
1 269
1 429
43
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Kirjanmerkkiä ei ole määritetty.
Notes to the consolidated
financial statements
Virhe.
K
irjanmerkkiä ei ole määritetty.
1
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määritetty.
2
3
4
5
6
The obligation in the consolidated statement of financial position
consists of the following items:
EUR 1,000
2025
2024
Obligation at the beginning of the year
99
192
Net cost recognised in the statement of profit or
loss
3
6
Payments by the employer
-17
-33
Profits and losses recognised in other compre-
hensive income
8
-67
Value of the obligation at year end
93
99
Items recognised in the consolidated statement of profit or loss:
EUR 1,000
2025
2024
Interest income
-42
-54
Interest expenses
45
60
Total
3
6
Items recognised in the consolidated statement of other compre-
hensive income for the year:
EUR 1,000
2025
2024
Actuarial gains/(losses) on assets
43
-158
Actuarial gains/(losses) on obligations
-35
90
Total
8
-67
Sensitivity analysis of defined benefit pension plans
The following table shows how the discount rate affects to projected benefit obligation, related
service cost and interest cost.
2025
Assumption
EUR 1,000
Defined bene-
fit obligations
Fair value of
Plan assets
Net Liability
Net interest
Discount rate 3.5%
1 362
1 269
93
3
0.5% increase
1 301
1 217
84
3
0.5% decrease
1 428
1 325
103
3
2024
Assumption
EUR 1,000
Defined bene-
fit obligations
Fair value of
Plan assets
Net Liability
Net interest
Discount rate 3.1 %
1 528
1 429
99
3
0.5% increase
1 457
1 368
89
3
0.5% decrease
1 605
1 496
109
3
44
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
Virhe. Viitteen lähdettä ei löytynyt.
Virhe.
Kirjanmerkkiä ei ole määritetty.
Notes to the consolidated
financial statements
Virhe.
Kirjanmerkkiä ei ole määritetty.
1
Virhe. Viitteen lähdettä ei löytynyt.
Virhe. Kirjanmerkkiä ei ole
määritetty.
2
3
4
5
6
As the defined benefit plans are managed by an external insur-
ance company, it is not possible to present a division of the fair
values of the plan assets.
Expected contributions for 2026 are estimated to be EUR 11
thousand.
The weighted average duration of defined benefit obligation
is 10 years.
The following table shows the maturity profile of the future
benefit payments.
EUR 1,000
2025
2024
Under 1 year
177
183
1-10 years
822
882
10-20 years
566
611
20-30 years
301
334
Over 30 years
149
171
Total
2 016
2 181
ACTURIAL ASSUMPTIONS USED IN CALCULATIONS
%
2025
2024
Discount rate
3,5 %
3,1 %
Estimate of salary increases
2,2 %
2,1 %
Inflation
2,0 %
1,9 %
6.3 RELATED PARTY DISCLOSURES
In accordance with IAS 24, related parties include the board of
directors, CEO and other members of the Elenia Oy group's man-
agement team, the head of the Elenia Oy group's procurement
and development unit, their close family members, and entities in
which the above-mentioned persons directly or indirectly exer-
cise control. In addition, related parties include Elenia's signifi-
cant shareholders who own more than 20 percent of the compa-
ny's shares or the combined number of votes of all shares.
The company maintains lists of related parties. The company
has guidelines for identifying related party transactions of enti-
ties identified in the related party register, and they are obliged
to notify the company in advance of their planned contracts and
legal actions with companies belonging to the group, if the value
of the transaction exceeds EUR 5,000.00. In addition, they are
asked annually to confirm the related party activities that have
been carried out. Related party transactions that are not part of
the company's normal business or are made outside of the usual
commercial terms are handled in the company in accordance
with the applicable related party administration guidelines.
Shareholders
All of the shares in Elenia Verkko Oyj are owned by a Finnish
company, Elenia Oy.
owned by a consortium of infrastructure investors: Société
Foncière Européenne B.V.(SFE) and Allianz Infrastructure Lux-
embourg I S.à r.l. (AIL), Lynx Elton S.à r.l. (Lynx Elton), Allianz Eu-
ropean Infrastructure Acquisition Holding S.à r.l. (AEIAH), Elton
Ventures S.à r.l., Manco Investment Oy and Valtion Eläkerahasto
(VER).
SFE and AIL are fully indirect subsidiaries of Allianz SE, and
therefore members of the Allianz Group. AEIAH is an investment
vehicle of the Allianz European Infrastructure Fund S.A. RAIF
(AEIF), a fund managed by Allianz Capital Partners (ACP) and
Lynx Elton is a vehicle managed by CapMan Infra and advised by
ACP. Elton Ventures S.à r.l. is an entity managed by Macquarie
Infrastructure and Real Assets (Europe) Limited (MIRA) and
whose majority shareholder is Macquarie Super Core Infrastruc-
ture Fund SCSp. Manco Investment Oy is owned by five Elenia's
key management persons.
SUBSIDIARIES AND ASSOCIATES
Elenia Verkko Group was formed on January 1, 2020, as a result
of corporate restrucutrings. Elenia Verkko Oyj owns all the
shares in Elenia Innovations Oy.
SENIOR MANAGEMENT
Elenia Verkko Oyj is managed by its Board of Directors. Elenia's
senior management includes the Board of Directors and the
CEO. Elenia Group has not had any business transactions with
persons included in its senior management and Elenia Group has
not granted loans to these persons.
Five of the key management persons have invested into Elton
Investment S.à r.l. which is the ultimate owner of Elenia Oy. The
management investment is channelled through a management
owned holding company Manco Investment Oy, which owns ap-
proximately 0.3% of Elton Investment S.à r.l. after the arrange-
ment. The equity investment has been made at fair market val-
ues.
MANAGEMENT TEAM
Management team of Elenia Verkko Oyj's parent company
Elenia Oy is included within the scope of the long-term incentive
plan. Description of the long-term incentive plan has been dis-
closed in note 2.3.3
45
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
financial statements
Virhe.
Kirjanmerkkiä ei ole määritetty.
1
Virhe. Viitteen lähdettä ei löytynyt.
Virhe. Kirjanmerkkiä ei ole
m
ääritetty.
2
3
4
5
6
BUSINESS TRANSACTIONS
All transactions with related parties take place in an arm's length
manner.
Group companies have no intercompany transactions, but
Elenia Verkko Oyj has transaction with a parent company Elenia
Oy and upper Finnish entity Elenia Group Oy. Transactions are
related to internal services and construction provided by Elenia
Oy and Elenia Group Oy to Elenia Verkko Oyj.
During the fiscal year 2025, the group has €25.6m long-term
loan receivable from Elenia Group Oy.
The meeting of Elenia Verkko Oyj’s shareholders decided on
12 March 2025 the equity repayment of €41.2m and on 15 De-
cember 2025 the equity repayment of €101.2m.
The meeting of Elenia Verkko Oyj’s shareholders decided on
25 April 2024 the equity repayment of €56.6m.
Long-term loan
receivable 1 Jan
2025
Decrease during
2025
Long-term loan
receivable 31
Dec 2025
EUR 1,000
Elenia Group
Oy
0
0
25 581
46
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Virhe.
Kirjanmerkkiä ei ole määritetty.
Notes to the consolidated
financial statements
Virhe.
Kirjanmerkkiä ei ole määritetty.
1
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Virhe. Kirjanmerkkiä ei ole
määritetty.
2
3
4
5
6
6.4 SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD
In January, Elenia Verkko Oyj purchased in open market transactions an aggregate of EUR 117.8 mil-
lion (in principal amount) of its 3.038 % fixed rate bonds due 2 July 2026 and cancelled them. Follow-
ing the purchases and cancellation of the bonds, the outstanding principal amount of the bonds due 2
July is EUR 2.2 million.
On 3 March, Fitch Ratings assigned Elenia Verkko Oyj a senior secured debt rating of BBB with
stable outlook. Elenia Verkko Oyj’s bond and notes now hold BBB rating with stable outlook from
both Fitch Ratings and S&P Global Ratings.
47
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
financial statements
Virhe.
Kirjanmerkkiä ei ole määritetty.
1
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määritetty.
2
3
4
5
6
6.5
Finland’s transmission system operator, Fingrid granted re-
bate for 3 months in 2024. This is the result of significantly
higher than expected congestion in-come caused by electricity
price differences at Finland’s boarders. Elenia’s distribution rev-
enue decreased correspondingly by the proportion of grid ser-
vice fees invoiced directly from customers connected to Elenia’s
high voltage network.
The maximum monthly average electricity price in Finland
during the previous 10-year period was 57 €/MWh as per June
2021. On this basis, costs from network losses exceeding 60
€/MWh on a monthly basis are treated as exceptional.
48
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Kirjanmerkkiä ei ole määritetty.
Notes to the consolidated
financial statements
Virhe.
Kirjanmerkkiä ei ole määritetty.
1
Virhe. Viitteen lähdettä ei löytynyt.
Virhe. Kirjanmerkkiä ei ole
määritetty.
2
3
4
5
6
PARENT COMPANY
FINANCIAL STATEMENTS (FAS)
49
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
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PARENT COMPANY INCOME STATEMENT
EUR
Notes
1 Jan - 31 Dec 2025
1 Jan - 31 Dec 2024
Revenue
1.1
356 147 383,63
348 763 694,63
Other operating income
1.2
1 877 188,71
1 693 568,54
Materials and services
1.3
-82 618 689,96
-69 792 141,05
Personnel expenses
1.4
-4 181 497,77
-4 245 235,93
Depreciation, amortisation and impairment
1.5
-171 615 856,20
-166 781 511,96
Other operating expenses
1.6
-37 128 080,98
-34 282 473,75
Operating profit
62 480 447,43
75 355 900,48
Finance income and expenses
1.7
-47 421 921,38
-49 976 665,89
Profit / loss before appropriations and taxes
15 058 526,05
25 379 234,59
Appropriations
1.8
Change in accelerated depreciations
-109 362 242,93
-122 727 932,64
Group contributions
11 936 500,00
18 893 000,00
Income taxes
1.9
-2 506 889,39
-2 506 240,76
Profit / loss for the year
-84 874 106,27
-80 961 938,81
50
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
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PARENT COMPANY BALANCE SHEET
EUR
Notes
31 Dec 2025
31 Dec 2024
ASSETS
Non-current assets
Intangible assets
2.1
Intangible rights
22 126 900,12
22 321 344,87
Goodwill
1 842 424 904,89
1 894 162 289,89
Other capitalized long-term expenditure
18 420 107,45
19 297 549,72
1 882 971 912,46
1 935 781 184,48
Tangible assets
2.2
Land and water areas
2 331 705,08
2 334 274,42
Buildings and constructions
225 590,37
236 860,17
Network
2 148 693 827,77
2 137 960 627,46
Machinery and equipments
67 596 139,31
62 265 924,09
Advance payments and construction in progress
13 947 223,53
12 216 354,26
2 232 794 486,06
2 215 014 040,40
Investments
2.3
Other shares and holdings
194 229,69
194 229,69
194 229,69
194 229,69
Total non-current assets
4 115 960 628,21
4 150 989 454,57
EUR
Notes
31 Dec 2025
31 Dec 2024
Current assets
Long-term receivables
2.4
Other receivables
6 393 322,52
1 582 937,54
Loan receivables from group companies
25 581 250,00
0,00
31 974 572,52
1 582 937,54
Short-term receivables
2.4
Trade receivables
17 523 343,11
15 667 639,04
Receivables from group companies
12 195 123,80
18 933 783,82
Other receivables
1 169 505,25
464 809,89
Prepayments and accrued income
45 502 550,32
44 685 520,60
76 390 522,48
79 751 753,35
Other current financial assets
100 090 951,18
0,00
Cash and cash equivalents
2.4
188 615 002,80
42 744 688,22
Total current assets
397 071 048,98
124 079 379,11
TOTAL ASSETS
4 513 031 677,19
4 275 068 833,68
51
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
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PARENT COMPANY BALANCE SHEET
EUR
Notes
31 Dec 2025
31 Dec 2024
EQUITY AND LIABILITIES
Capital and reserves
3.1
Subscribed capital
80 000,00
80 000,00
Non restricted equity
1 458 426 997,76
1 600 846 997,76
Retained earnings
-317 144 366,43
-240 440 585,02
Profit / Loss for the financial year
-84 874 106,27
-80 961 938,81
1 056 488 525,06
1 279 524 473,93
Cumulative accelerated depreciations
3.2
852 005 797,67
742 643 554,74
Liabilities
3.3
Non-current liabilities
Connection fees
200 882 618,20
201 433 677,35
Bonds and notes
1 799 487 000,00
1 689 500 000,00
Loans from financial institutions
350 000 000,00
250 000 000,00
2 350 369 618,20
2 140 933 677,35
Current liabilities
Bonds and notes
140 000 000,00
0
Advances received
706 999,28
1 608 891,80
Trade payables
3 044 952,30
8 497 303,52
Liabilities to group companies
26 719 145,68
32 603 524,32
Other short-term liabilities
35 126 090,70
32 841 050,64
Accruals and deferred income
48 570 548,30
36 416 357,38
254 167 736,26
111 967 127,66
Total liabilities
2 604 537 354,46
2 252 900 805,01
TOTAL EQUITY AND LIABILITIES
4 513 031 677,19
4 275 068 833,68
52
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
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PARENT COMPANY CASH FLOW STATEMENT
EUR
1 Jan - 31 Dec 2025
1 Jan - 31 Dec 2024
Cash flow from operating activities
Profit / Loss before appropriations and taxes
15 058 526,05
25 379 234,59
Adjustments
Depreciation, amortisation and impairment
171 615 856,20
166 781 511,96
Finance income and expenses
47 421 921,38
49 976 665,89
Other adjustments
-232 085,66
-62 829,36
Cash flow before change in working capital
233 864 217,97
242 074 583,08
Change in working capital:
Increase (-) / decrease (+) in non-interest-bearing re-
ceivables
-2 654 784,14
2 082 015,67
Increase (+) / decrease (-) in non-interest-bearing liabili-
ties
-4 190 172,31
2 796 897,28
Operating cash flow before financial items and taxes
227 019 261,52
246 953 496,03
Interest payments
-47 642 906,56
-49 380 780,40
Interests received
3 581 959,09
2 146 395,29
Payments for other finance items
-3 841 526,78
-2 372 890,75
Connection fee refunds
551 059,15
308 672,46
Taxes paid
-2 506 889,39
-2 506 240,76
Cash flow from operating activities
177 160 957,03
195 148 651,87
EUR
1 Jan - 31 Dec 2025
1 Jan - 31 Dec 2024
Cash flow from investing activities
Capital expenditures
-130 067 131,88
-130 051 074,21
Proceeds from disposals of investments
234 655,00
150 000,00
Loans granted
-25 000 000,00
0,00
Cash flow from investing activities
-154 832 476,88
-129 901 074,21
Cash flow from financing activities
Proceeds from long-term borrowings
591 680 000,00
0,00
Repayment of long-term borrowings
-244 520 214,39
0,00
Equity repayment
-142 420 000,00
-100 000 000,00
Group contributions received
18 893 000,00
17 336 000,00
Cash flow from financing activities
223 632 785,61
-82 664 000,00
Change in cash and cash equivalents
245 961 265,76
-17 416 422,34
Cash and cash equivalents 1 Jan
42 744 688,22
60 161 110,56
Cash and cash equivalents 31 Dec
288 705 953,98
42 744 688,22
Other current financial assets
100 090 951,18
0,00
Cash and cash equivalents
188 615 002,80
42 744 688,22
Cash and cash equivalents consist of bank deposits, fund investments and other
short-term financial assets.
In the balance sheet, the group bank account is presented as receivable from group companies, and in the cash
flow statement as liquid assets.
53
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
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NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS
ACCOUNTING PRINCIPLES
The financial statements of Elenia Oy have been prepared in ac-
cordance with the Finnish Accounting Standards (FAS).
Transactions denominated in foreign currencies and de-
rivative agreements
Transactions denominated in foreign currencies are recognised
at the rate prevailing at the time of the transaction. At the bal-
ance sheet date the receivables and liabilities in balance sheet
denominated in foreign currencies are converted to Euro using
the exchange rate prevailing at the balance sheet date. The pos-
sible currency exchange rate differences are recognised in fi-
nance income or costs or other operating costs in accordance
with the underlying item.
Presentation of bank balances
The company's group bank account is presented as either an
asset or liability from/to entities within the same group.
Deferred tax liabilities and assets
Deferred tax liabilities or assets have been calculated for tempo-
rary differences between taxation and the financial statements
using the tax rate established at the balance sheet date for the
following years. The balance sheet includes the deferred tax lia-
bility in its entirety and the deferred tax asset in the amount of
the estimated probable receivable.
During 2025, the company decided on a change to the ac-
counting and calculation principles for deferred tax liabilities. As
a result of this change, the company no longer recognizes a de-
ferred tax liability arising from temporary differences between
the book value and the tax value related to the allocation of
goodwill. The company originally recognized this deferred tax li-
ability in the 2020 financial statements based on particular pru-
dence.
The company has subsequently realized that this accounting
principle leads to an incorrect view of the company’s financial
position regarding the deferred tax liability. Due to its extensive
investment program, the company holds a substantial tax depre-
ciation base and is able to fully utilize declining balance
depreciations for the foreseeable future and can therefore freely
determine its taxable income. Consequently, the non-deductibil-
ity of goodwill allocated to network assets is not material and
will not affect the company’s financial position before the major-
ity of the related deferred tax liability has been derecognized
from the balance sheet through annual straight-line amortisa-
tions.
The comparative figures for the financial year 2024 have
been restated to reflect the change in the accounting principles.
After the restatement, profit / loss for the financial year 2024 is
EUR -80 962 thousand (decreased by EUR 4 258 thousand com-
pared to the profit / loss reported in the financial statements
2024), goodwill in the balance sheet is EUR 1 894 162 thousand
(decreased by EUR 93 679 thousand) and deferred tax liability in
the balance sheet is EUR 0 (decreased by EUR 89 421 thousand).
Intangible and tangible assets
For tangible and intangible assets have been used direct acquisi-
tion prices which have been deducted with planned deprecia-
tions. Depreciations according to the plan are linear and are
based on the following assets economical lifetimes:
Intangible fixed assets
3–30 years
Goodwill
40 years
Other capitalized long-term expenditures
5–25 years
Buildings and construction
15–50 years
Transmission network
25–40 years
Distribution network
10–30 years
Machinery and equipment
3–30 years
Connection fees are non-refundable and therefore they have
been booked as revenue in the profit and loss account.
54
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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1 NOTES TO INCOME STATEMENT
1.1 Revenue
EUR 1,000
2025
2024
Distribution income
341 651
336 684
Contracting income
1 488
1 286
Connection fee income
13 406
10 794
Other sales income
237
340
Voluntary outage compensation
-635
-341
Total
356 147
348 764
1.2 Other operating income
EUR 1,000
2025
2024
Revenue from collection of trade receiva-
bles
976
1 019
Gains on the sale of scrap and used fixed as-
sets
233
63
Other operating income
668
612
Total
1 877
1 694
1.3 Materials and services
EUR 1,000
2025
2024
Grid costs
-37 344
-24 878
Network losses
-14 771
-16 331
External services
-28 172
-26 689
Materials
-2 332
-1 895
Total
-82 619
-69 792
1.4 Personnel expenses
EUR 1,000
2025
2024
Salaries
-3 527
-3 523
Pension expenses
-600
-663
Other employee expenses
-54
-60
Total
-4 181
-4 245
Salaries and remuneration were not paid to CEO in 2025 or 2024.
Average number of personnel during the fi-
nancial year
80
75
1.5 Depreciations according to the plan
EUR 1,000
2025
2024
Impairment
-1 279
-1 916
Intangible fixed assets
-1 094
-1 101
Goodwill
-55 996
-55 996
Other capitalized long-term expenditure
-2 818
-2 704
Buildings and constructions
-11
-11
Network
-101 049
-97 912
Machinery and equipments
-9 369
-7 142
Total
-171 616
-166 782
1.6 Other operating expenses
EUR 1,000
2025
2024
Lease expenses
-862
-812
Other external services
-24 550
-24 439
Other operating expenses
-11 717
-9 032
Total
-37 128
-34 282
AUDIT CHARGES
EUR 1,000
2025
2024
Auditing fees
-138
-233
Fees for other services
-68
-31
Total
-206
-264
55
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
financial statements
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1.7 Financial income and expenses
EUR 1,000
2025
2024
Interest and other financial income
Other interest and financial income
10 331
2 146
Total
10 331
2 146
Interest and other financial expenses
Interest expenses
-51 307
-48 955
Other financial expenses
-6 446
-3 168
Total
-57 753
-52 123
Total financial income and expenses
-47 422
-49 977
1.8 Appropriations
EUR 1,000
2025
2024
Change in accelerated depreciations
-109 362
-122 728
Group contribution received
11 937
18 893
Total
-97 426
-103 835
1.9 Income taxes
EUR 1,000
2025
2024
Income taxes for the financial period
-2 507
-2 503
Adjustment in income taxes for the previ-
ous periods
0
-3
Total
-2 507
-2 506
2 NOTES TO THE BALANCE SHEET ASSETS
2.1 Intangible assets
INTANGIBLE RIGHTS
EUR 1,000
2025
2024
Cost 1 Jan
41 442
40 469
Investments
899
973
Disposals
-12
0
Cost 31 Dec
42 329
41 442
Accumulated depreciation 1 Jan
-19 120
-18 020
Depreciation according to the plan
-1 094
-1 101
Disposals
12
0
Book value 31 Dec
22 127
22 321
GOODWILL
EUR 1,000
2025
2024
Cost 1 Jan
2 259 730
2 259 730
Disposals
-89 421
-93 679
Cost 31 Dec
2 170 309
2 166 050
Accumulated depreciation 1 Jan
-271 889
-215 893
Depreciation according to the plan
-55 996
-55 996
Book value 31 Dec
1 842 425
1 894 162
OTHER CAPITALIZED LONG-TERM EXPENDITURE
EUR 1,000
2025
2024
Cost 1 Jan
339 933
337 990
Investments
1 941
1 943
Cost 31 Dec
341 874
339 933
Accumulated depreciation 1 Jan
-320 636
-317 932
Depreciation according to the plan
-2 818
-2 704
Book value 31 Dec
18 420
1
9 298
2.2 Tangible assets
LAND AND WATER AREAS
EUR 1,000
2025
2024
Cost 1 Jan
2 335
2 175
Investments
0
160
Disposals
-3
0
Cost 31 Dec
2 333
2 335
Impairment
-1
-1
Book value 31 Dec
2 332
2 334
BUILDINGS AND CONSTRUCTIONS
EUR 1,000
2025
2024
Cost 1 Jan
3 119
3 119
Cost 31 Dec
3 119
3 119
Accumulated depreciation 1 Jan
-2 883
-2 871
Depreciation according to the plan
-11
-11
Book value 31 Dec
226
237
NETWORK
EUR 1,000
2025
2024
Cost 1 Jan
3 458 428
3 349 535
Investments
113 061
113 030
Disposals
-3 384
-4 137
Cost 31 Dec
3 568 105
3 458 428
Accumulated depreciation 1 Jan
-1 320 467
-1 224 689
Impairment
-1 279
-1 916
Disposals
3 384
4 050
Depreciation according to the plan
-101 049
-97 912
Book value 31 Dec
2 148 694
2 137 961
56
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
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MACHINERY AND EQUIPMENT
EUR 1,000
2025
2024
Cost 1 Jan
132 963
108 020
Investments
14 700
24 943
Cost 31 Dec
147 663
132 963
Accumulated depreciation 1 Jan
-70 697
-63 555
Depreciation according to the plan
-9 369
-7 142
Book value 31 Dec
67 596
62 266
OTHER TANGIBLE ASSETS
EUR 1,000
2025
2024
Cost 1 Jan
56
56
Cost 31 Dec
56
56
Accumulated depreciation 1 Jan
-56
-56
ADVANCE PAYMENTS AND CONSTRUCTION IN PROGRESS
EUR 1,000
2025
2024
Cost 1 Jan
12 216
19 352
Increase
1 731
134
Decrease
0
-7 270
Book value 31 Dec
13 947
12 216
2.3 Investments
HOLDINGS IN GROUP COMPANIES
EUR 1,000
2025
2024
Cost 1 Jan
194
194
Book value 31 Dec
194
194
2.4 Receivables
LONG-TERM RECEIVABLES
EUR 1,000
2025
2024
Loan receivables
25 581
0
Other receivables
6 393
1 583
Long-term receivables total
31 975
1 583
SHORT-TERM RECEIVABLES
Receivables from group companies
EUR 1,000
2025
2024
Accrued income
259
41
Group contribution receivables
11 937
18 893
Group bank account
Receivables from group companies total
12 195
18 934
External receivables
EUR 1,000
2025
2024
Trade receivables
17 523
15 668
Other short-term receivables
1 170
465
Accrued income
45 503
44 686
External receivables total
64 195
60 818
External accrued income
EUR 1,000
2025
2024
Sales accruals
42 809
43 950
Other accrued income and receivables
2 693
736
E
xternal accrued income total
45 503
44 686
57
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
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Notes to the consolidated
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3
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Short term receivables total
76 391
79 752
Total receivables
108 365
81 335
Other current financial assets
100 091
0
Cash and cash equivalents
188 615
42 745
58
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
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3 NOTES TO THE BALANCE SHEETS EQUITY AND LIA-
BILITIES
3.1 Capital and reserves
EUR 1,000
2025
2024
Subscribed capital
80
80
Non restricted equity 1 Jan
1 600 847
1 657 400
Equity repayment
-142 420
-56 553
Non restricted equity 31 Dec
1 458 427
1 600 847
Retained earnings 1 Jan
-317 144
-240 441
Profit / Loss for the financial year
-84 874
-80 962
Total capital and reserves
1 056 489
1 279 524
Distributable equity
1 056 409
1 279 444
3.2 Cumulative accelerated depre-
ciations
EUR 1,000
2025
2024
Cumulative accelerated depreciations
852 006
742 644
Accelerated depreciations include deferred tax liability
of EUR 170 401 thousand.
3.3 Liabilities
NON-CURRENT LIABILITIES
EUR 1,000
2025
2024
Connection fee liability 1 Jan
201 434
201 742
Connection fee refunds
-551
-309
Connection fee liability 31 Dec
200 883
201 434
Bonds and notes
1 799 487
1 689 500
Loans from financial institutions
350 000
250 000
Total non-current liabilities
2 350 370
2 140 934
CURRENT LIABILITIES
EUR 1,000
2025
2024
Bond and notes
140 000
0
Advances received
707
1 609
Trade payables
3 045
8 497
Other short-term liabilities
35 126
32 841
Accrued expenses
Salaries and social expenses
1 904
1 768
Accrued interest expenses
19 256
16 225
Other accrued expenses
27 410
18 424
Total
48 571
36 416
Liabilities to group companies
Accrued expenses
6 497
4 783
Group bank account
20 222
27 821
Total
26 719
32 604
Total current liabilities
254 168
111 967
Total liabilities
2 604 537
2 252 901
59
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Maturity breakdown of financial liabilities
31 December 2025
1,000 EUR
Effective interest
rate
Under 1 year
1-5 years
Maturity over 5
years
Total
Bonds
2,72 %
171 309
584 474
914 986
1 670 769
Notes
2,71 %
14 059
234 107
364 619
598 726
Loans from financial institutions
2,92 %
10 349
285 736
106 693
392 429
Total interest-bearing non-current liabilities
195 717
1 104 317
1 386 298
2 661 924
Maturity breakdown of financial liabilities
31 December 2024
1,000 EUR
Effective interest
rate
Under 1 year
1-5 years
Maturity over 5
years
Total
Bonds
4,03 %
26 275
824 038
596 744
1 447 057
Notes
1,96 %
14 059
161 344
451 440
626 843
Loans from financial institutions
2,71 %
10 973
90 125
212 653
313 751
Total interest-bearing non-current liabilities
51 307
1 075 507
1 260 837
2 387 651
3.4 Liabilities and guarantees for debts
EUR 1,000
2025
2024
Provided on behalf of own and group liabili-
ties
Guarantees
Floating charges
9 000 000
9 000 000
Mortgages
200 000
202 000
Leasing agreements
Within one year
135
142
After one year but not more than five
years
123
45
Total
257
187
Other own liabilities
Connection fees not included in the bal-
ance sheet values
85 114
85 114
60
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
financial statements
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Group bank accounts have been pledged as security for
loans from financial institutions and bonds.
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ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
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Notes to the consolidated
financial statements
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Shares and Holdings
a
a
a
a
a
Domicile
Share
Vote share
Share of
ownership
Nominal value
EUR 1,000
Book value
EUR 1,000
Subsidiary
Elenia Innovations Oy
Tampere
100 %
100 %
100 %
0
0
Other shares and holdings
194
194
62
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
financial statements
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ELECTRICITY NETWORK BUSINESS DIFFERENTI-
ATED STATEMENT OF PROFIT AND LOSS
1 000 EUR
1 Jan - 31 Dec
2025
1 Jan - 31 Dec
2024
Revenue
356 101
348 561
Other operating income
1 845
1 662
Materials and services
Materials and goods
Purchase during the financial period
Network losses
-14 771
-16 331
Other materials
-2 321
-1 835
Services
Grid costs
-38 845
-26 262
Other external services
-28 152
-26 605
Personnel expenses
Salaries
-3 516
-3 478
Other personnel related costs
-651
-709
Depreciation, amortisation and impairment
Impairment of network
-1 279
-1 916
Merger loss
-90 988
-90 988
Network assets
-77 215
-71 876
Other assets
-2 135
-2 001
Other operating expenses
Lease expenses
-551
-413
Operational IT-systems
-3 875
-3 663
Network rents and network leasing expenses
-9
-61
Other operating expenses
-31 167
-28 739
Operating profit
62 474
75 349
1 000 EUR
1 Jan - 31 Dec
2025
1 Jan - 31 Dec
2024
Finance income and expenses
Interest and other financial income
From group companies
From other companies
10 331
2 146
Interest and other financial expenses
From other companies
-57 753
-52 123
Profit / loss before appropriations and taxes
15 052
25 372
Appropriations
Change in accelerated depreciations
Network assets
-108 496
-121 916
Other assets
-915
-876
Group contributions
Group contribution received
11 937
18 893
Income taxes
-2 507
-2 506
Loss for the year
-84 929
-81 033
63
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
financial statements
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ELECTRICITY NETWORK BUSINESS DIFFERENTI-
ATED BALANCE SHEET
1 000 EUR
31 Dec 2025
31 Dec 2024
ASSETS
Non-current assets
Intangible assets
Intangible rights
23 460
24 291
Goodwill
1 842 425
1 894 162
Other capitalized long-term expenditure
17 087
17 328
1 882 972
1 935 781
Tangible assets
Land and water areas
190
190
Buildings and constructions
226
237
Electricity network
1 517 425
1 466 762
Merger losses
699 848
734 840
Machinery and equipments
1 159
769
Advance payments and construction in progress
13 947
12 216
2 232 794
2 215 014
Total non-current assets
4 115 766
4 150 795
1 000 EUR
31 Dec 2025
31 Dec 2024
Current assets
Long-term receivables
Loan receivables
Loan receivables
25 581
Other long-term receivables
6 393
1 583
31 975
1 583
Short-term receivables
Trade receivables
17 523
15 668
Receivables from group companies
12 195
18 934
Other receivables
933
228
Prepayments and accrued income
45 503
44 686
76 154
79 515
Other current financial assets
100 091
Cash and cash equivalents
182 459
28 985
Total current assets
390 678
110 083
TOTAL ASSETS
4 506 445
4 260 878
64
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
financial statements
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ELECTRICITY NETWORK BUSINESS DIFFERENTI-
ATED BALANCE SHEET
1 000 EUR
31 Dec 2025
31 Dec 2024
Capital and reserves
Subscribed capital
80
80
Non restricted equity
1 458 427
1 600 847
Retained earnings
-303 309
-226 534
Profit / Loss for the financial year
-84 929
-81 033
1 070 269
1 293 360
Cumulative accelerated depreciations
Cumulative accelerated depreciations, network assets
845 305
736 809
Cumulative accelerated depreciations, other assets
6 557
5 643
851 862
742 452
Liabilities
Non-current liabilities
Non-current liabilities, interest -free
Connection fees
200 883
201 434
Non-current liabilities, interest -bearing
Loans from financial institutions and other long-term loans
2 149 487
1 939 500
2 350 370
2 140 934
Current liabilities
Current liabilities, interest -free
Trade payables
3 044
8 484
Liabilities to group companies
6 497
4 783
Other short-term liabilities
35 126
32 841
Accruals and deferred income
49 278
38 025
Current liabilities, interest -bearing
Current loans
140 000
233 944
84 133
Total liabilities
2 584 314
2 225 066
TOTAL EQUITY AND LIABILITIES
4 506 445
4 260 878
65
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
financial statements
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NOTES TO DIFFERENTIATED FINANCIAL
STATEMENTS
According to the Electricity Market Act, a company operating on electricity market must differenti-
ate its electricity network business from other business activities. This differentiation requirement
also applies to legally separated network operator. Only items that are relevant for network busi-
ness operations are included in the differentiated financial statements. The differentiated financial
statements of electricity business should be published and attached to company's official financial
statements.
Differentiated financial statements include income statement and balance sheet, which should
be derived from the accounting.
In addition to Electricity Network business Elenia Verkko Oyj contains Elenia group's financing
and administrative related services and items.
Differentiation principles
Income statement items have been allocated into the differentiated business directly on the basis of
accounting.
Balance sheet items have been allocated to the differentiated business directly on the basis of
accounting or using an allocation key.
Depreciation principles for intangible and tangible assets are based on Elenia Verkko Oyj's de-
preciations rules which have been presented in the beginning of parent company notes.
During 2025, Elenia Verkko Oyj decided on a change to the accounting and calculation principles
for deferred tax liabilities. As a result of this change, the company no longer recognizes a deferred
tax liability arising from temporary differences between the book value and the tax value related to
the allocation of goodwill.
The comparative figures in the differentiated accounts for the financial year 2024 have been re-
stated to reflect the change in the accounting principles for deferred tax liabilities. After the restate-
ment, profit / loss for the financial year 2024 in the differentiated statement of profit and loss is EUR
-81 033 thousand (decreased by EUR 4 258 thousand compared to the profit / loss reported in the
financial statements 2024), goodwill in the balance sheet is EUR 1 894 162 thousand (decreased by
EUR 93 679 thousand), deferred tax liability in the balance sheet is EUR 0 (decreased by EUR 89 421
thousand) and Return on Equity for network business is 1.21% (decreased by 0.22 percentage
points).
Elenia Verkko Oyj has restated the comparative figures of network rents and network leasing
expenses in the differentiated accounts for the financial year 2024. After the restatement the
amount of networks rents is EUR 61 thousand (decreased by EUR 316 thousand compared to the
amount reported in the financial statements 2024). In addition, the operational IT systems expenses
of EUR 3 663 thousand for the year 2024 have been reported on a separate line in the statement of
profit and loss. After these restatements, the amount of other operating expenses in the differenti-
ated accounts for the financial year 2024 is EUR 28 739 thousand (decreased by EUR 3 346 thou-
sand compared to the amount reported in the financial statements 2024).
In connection with its routine end-of-regulatory-period review, the Energy Authority (the “EA”)
has determined that Elenia Verkko Oyj has incorrectly presented two items in its differentiated ac-
counts. These items were created in connection with the sale of the district heating business in 2019
and Elenia group’s reorganization in 2020. In the same context, the EA specified the accounting
treatment of the reserve for invested unrestricted equity as well as cash and cash equivalents in the
differentiated accounts.
On 28 May 2025 Elenia Verkko Oyj received a decision from the EA, requiring it to change the
accounting treatment accordingly and as further detailed below. The decision pertains solely to in-
formation presented in this note and does not require the restatement of historical financial state-
ments. Elenia does not concur with the EA on their view of the correct accounting treatment and has
appealed to the market court. The court process is currently ongoing and a ruling is expected to-
wards the end of 2026. However, despite the market court process, Elenia is obliged to follow EA’s
instructions at this time.
Elenia Verkko Oyj has made changes to the differentiation principles of financial statements for
the financial period 1 January – 31 December 2024 based on the decision received from the EA on
28 May 2025 as follows:
The non-restricted equity (EUR 1,600.8 million at the end of the financial year ended 31 De-
cember 2024) has been allocated in its entirety to the network business.
The interest income received by Elenia Verkko Oyj from the loan receivable from Elenia Group
Oy in the financial years 2020 and 2021 has been allocated to other than network business. The
impact of the change on retained earnings for the financial year 1.1.-31.12.2024 is EUR 2.6 mil-
lion.
Any reconciliations between the balance sheets of the differentiated financial statements have
been made to the item cash and cash equivalents.
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ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
f
inancial statements
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Electricity Network business' key figures
1 000 EUR
2025
2024
INVESTMENTS
Intangible assets
Intangible rights
1 187
1 066
Other capitalized long-term expenditures
Connection fees
1 600
1 607
Other capitalized long-term expenditures
53
244
Tangible assets of electricity network business
Land and water areas
0
160
Electricity network
110 535
111 113
Demolition costs
2 526
1 917
Meters
14 079
24 943
Other tangible assets
621
0
OTHER KEY FIGURES
Refundable connection fees
200 883
201 434
Capital gain on the sales of a power line included in the other operating income
216
63
Mandatory outage compensations
7 842
4 804
EU DSO Entity membership fees
6
5
R&D expenses in the profit and loss account during the financial year
57
224
Operative expenses included in security of supply incentive during the financial year
Demolition costs in the balance sheet at the end of the financial year
42 120
41 326
Return On Equity, network business (%)
0,72 %
1,21 %
Average number of personnel in the network business
81
75
67
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
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Notes to the consolidated
financial statements
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SIGNATURES TO THE FINANCIAL
STATEMENTS
Tampere, 11 March 2026
Jorma Myllymäki
Chairman of the Board of Directors
CEO
Jarkko Kohtala
Anne-Marie Malmberg
Ville Sihvola
Tommi Valento
AUDITORS NOTE
A report on the audit carried out has been issued today.
Tampere, 12 March 2026
Ernst & Young Oy
Authorized Public Accountant Firm
Miikka Hietala
KHT
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ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
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Notes to the consolidated
financial statements
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AUDITOR’S REPORT
(TRANSLATION OF THE FINNISH ORIGINAL)
To the Annual General Meeting of Elenia Verkko Oyj
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Elenia Verkko Oyj (business identity code 3001882-6)
for the year ended 31 December, 2025. The financial statements comprise the consolidated balance
sheet, income statement, statement of comprehensive income, statement of changes in equity,
statement of cash flows and notes, including material accounting policy information, as well as the
parent company’s balance sheet, income statement, statement of cash flows and notes.
In our opinion
●
the consolidated financial statements give a true and fair view of the group’s financial
position, financial performance and cash flows in accordance with IFRS Accounting
Standards as adopted by the EU.
●
the financial statements give a true and fair view of the parent company’s financial per-
formance and financial position in accordance with the laws and regulations governing
the preparation of financial statements in Finland and comply with statutory require-
ments.
Our opinion is consistent with the additional report submitted to the Board of Directors.
Basis for Opinion
We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities
under good auditing practice are further described in the
Auditor’s Responsibilities for the Audit of Fi-
nancial Statements
We are independent of the parent company and of the group companies in accordance with the ethi-
cal requirements that are applicable in Finland and are relevant to our audit, and we have fulfilled
our other ethical responsibilities in accordance with these requirements.
In our best knowledge and understanding, the non-audit services that we have provided to the par-
ent company and group companies are in compliance with laws and regulations applicable in Finland
regarding these services, and we have not provided any prohibited non-audit services referred to in
Article 5(1) of regulation (EU) 537/2014. The non-audit services that we have provided have been
disclosed in note 2.3.1. to the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
K
ey Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial statements of the current period. These matters were addressed in the
context of our audit of the financial statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters.
We have fulfilled the responsibilities described in the
Auditor’s responsibilities for the audit of the finan-
cial statements
cluded the performance of procedures designed to respond to our assessment of the risks of mate-
rial misstatement of the financial statements. The results of our audit procedures, including the pro-
cedures performed to address the matters below, provide the basis for our audit opinion on the ac-
companying financial statements.
eration of whether there was evidence of management bias that represented a risk of material mis-
statement due to fraud.
There are no significant risks of material misstatement referred to in EU regulation No 537/2014,
point (c) of Article 10(2) relating to the consolidated financial statements or the parent company’s
financial statements.
Key Audit Matter
How our audit addressed the Key Audit Matter
Revenue Recognition
We refer to the Group’s accounting policies and
the notes to the consolidated financial state-
ments 2.1.
Revenue from the distribution of electricity
is recognized at the time of delivery.
Revenue includes large volume of transac-
tions and the Group focuses on revenue as a
key performance measure which could cre-
ate an incentive for premature revenue
recognition.
Our audit procedures included, among others:
●
We assessed the reasonableness of the
Group’s accounting policies over
revenue recognition and compliance
with applicable accounting standards.
●
We assessed the IT-systems, processes,
and methods for revenue recognition.
●
We examined the recorded sales
transactions during the year against
underlying documents.
●
We examined the sales accruals.
●
We obtained confirmations of open
accounts receivable balances at year
end from customers and analyzed credit
69
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
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Notes to the consolidated
financial statements
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invoices issued after the balance sheet
date.
●
We performed data-analytics
procedures on revenues.
●
We considered the appropriateness of
the Group’s disclosures in respect of
revenues.
Responsibilities of the Board of Directors and the Managing Director for the Financial
Statements
The Board of Directors and the Managing Director are responsible for the preparation of consoli-
dated financial statements that give a true and fair view in accordance with International Financial
Reporting Standards (IFRS) as adopted by the EU, and of financial statements that give a true and
fair view in accordance with the laws and regulations governing the preparation of financial state-
ments in Finland and comply with statutory requirements. The Board of Directors and the Managing
Director are also responsible for such internal control as they determine is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud
or error.
In preparing the financial statements, the Board of Directors and the Managing Director are respon-
sible for assessing the parent company’s and the group’s ability to continue as going concern, disclos-
ing, as applicable, matters relating to going concern and using the going concern basis of accounting.
The financial statements are prepared using the going concern basis of accounting unless there is an
intention to liquidate the parent company or the group or cease operations, or there is no realistic
alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance on whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with good auditing practice will always detect a material mis-
statement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of the financial statements.
As part of an audit in accordance with good auditing practice, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
●
Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery, inten-
tional omissions, misrepresentations, or the override of internal control.
●
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of ex-
pressing an opinion on the effectiveness of the parent company’s or the group’s internal
control.
●
Evaluate the appropriateness of accounting policies used and the reasonableness of ac-
counting estimates and related disclosures made by management.
●
Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s
use of the going concern basis of accounting and based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast sig-
nificant doubt on the parent company’s or the group’s ability to continue as a going con-
cern. If we conclude that a material uncertainty exists, we are required to draw attention
in our auditor’s report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the au-
dit evidence obtained up to the date of our auditor’s report. However, future events or
conditions may cause the parent company or the group to cease to continue as a going
concern.
●
Evaluate the overall presentation, structure and content of the financial statements, in-
cluding the disclosures, and whether the financial statements represent the underlying
transactions and events so that the financial statements give a true and fair view.
●
Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within the group to express an opinion on the consolidated
financial statements. We are responsible for the direction, supervision and performance
of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with rele-
vant ethical requirements regarding independence, and communicate with them all relationships
and other matters that may reasonably be thought to bear on our independence, and where applica-
ble, related safeguards.
From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditor’s report unless law or reg-
ulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
d
etermine that a matter should not be communicated in our report because the adverse
70
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
financial statements
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consequences of doing so would reasonably be expected to outweigh the public interest benefits of
such communication.
Other Reporting Requirements
Information on our audit engagement
We were first appointed as auditors on 13.5.2019, and our appointment represents a total period of
uninterrupted engagement of 7 years. Elenia Verkko Oyj has been a public interest entity since
1.7.2020.
Other information
The Board of Directors and the Managing Director are responsible for the other information. The
other information comprises the report of the Board of Directors and the information included in
the Annual Report, but does not include the financial statements and our auditor’s report thereon.
We have obtained the report of the Board of Directors prior to the date of this auditor’s report, and
the Annual Report is expected to be made available to us after that date.
Our opinion on the financial statements does not cover the other information.
In connection with our audit of the financial statements, our responsibility is to read the other infor-
mation identified above and, in doing so, consider whether the other information is materially incon-
sistent with the financial statements or our knowledge obtained in the audit, or otherwise appears
to be materially misstated. With respect to report of the Board of Directors, our responsibility also
includes considering whether the report of the Board of Directors has been prepared in accordance
with the applicable laws and regulations.
In our opinion, the information in the report of the Board of Directors is consistent with the infor-
mation in the financial statements and the report of the Board of Directors has been prepared in ac-
cordance with the applicable laws and regulations.
If, based on the work we have performed on the other information that we obtained prior to the date
of this auditor’s report, we conclude that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report in this regard.
Tampere March 12
th
, 2026
Ernst & Young Oy
Authorized Public Accountant Firm
Miikka Hietala
Authorized Public Accountant
71
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
financial statements
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INDEPENDENT AUDITOR’S REPORT ON ELENIA
VERKKO OYJ’S ESEF-CONSOLIDATED FINANCIAL
STATEMENTS (
TRANSLATION OF THE FINNISH ORIGINAL
)
To the Board of Directors of Elenia Verkko Oyj
We have performed a reasonable assurance engagement on the
financial statements 743700XGU4ZB5G4RPK50-2025-12-
31.zip of Elenia Verkko Oyj (y-identifier: 3001882-6) that have
been prepared in accordance with the Commission’s regulatory
technical standard for the financial year ended 31.12.2025.
Responsibilities of the Board of Directors and the Manag-
ing Director
The Board of Directors and the Managing Director are responsi-
ble for the preparation of the company’s report of Board of Di-
rectors and financial statements (the ESEF financial statements)
in such a way that they comply with the requirements of the
Commission’s regulatory technical standard. This responsibility
includes:
●
preparing the ESEF financial statements in XHTML for-
mat in accordance with Article 3 of the Commission’s
regulatory technical standard
●
tagging the primary financial statements, notes and
company’s identification data in the consolidated finan-
cial statements that are included in the ESEF financial
statements with iXBRL tags in accordance with Article
4 of the Commission’s regulatory technical standard
and
●
ensuring the consistency between the ESEF financial
statements and the audited financial statements.
The Board of Directors and the Managing Director are also re-
sponsible for such internal control as they determine is neces-
sary to enable the preparation of ESEF financial statements in
a
ccordance the requirements of the Commission’s regulatory
technical standard.
Auditor’s Independence and Quality Management
We are independent of the company in accordance with the
ethical requirements that are applicable in Finland and are
relevant to the engagement we have performed, and we have
fulfilled our other ethical responsibilities in accordance with
these requirements.
The firm applies International Standard on Quality Management
(ISQM) 1, which requires the firm to design, implement and
operate a system of quality management including policies or
procedures regarding compliance with ethical requirements,
professional standards and applicable legal and regulatory
requirements
Auditor’s Responsibilities
Our responsibility is to, in accordance with Chapter 7, Section 8
of the Securities Markets Act, provide assurance on the financial
statements that have been prepared in accordance with the
Commission’s technical regulatory standard. We express an
opinion on whether the consolidated financial statements that
are included in the ESEF financial statements have been tagged,
in all material respects, in accordance with the requirements of
Article 4 of the Commission's regulatory technical standard.
Our responsibility is to indicate in our opinion to what extent the
assurance has been provided. We conducted a reasonable
assurance engagement in accordance with International
Standard on Assurance Engagements (ISAE) 3000.
The engagement includes procedures to obtain evidence on:
●
whether the primary financial statements in the consol-
idated financial statements that are included in the
ESEF financial statements have been tagged, in all ma-
terial respects, with iXBRL tags in accordance with the
requirements of Article 4 of the Commission’s regula-
tory technical standard and
●
whether the notes and company's identification data in
the consolidated financial statements that are included
in the ESEF financial statements have been tagged, in
all material respects, with iXBRL tags in accordance
with the requirements of Article 4 of the Commission's
regulatory technical standard and
●
whether there is consistency between the ESEF finan-
cial statements and the audited financial statements.
The nature, timing and extent of the selected procedures depend
on the auditor’s judgement. This includes an assessment of the
risk of material deviations due to fraud or error from the
requirements of the Commission’s technical regulatory standard.
We believe that the evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Opinion
Our opinion pursuant to Chapter 7, Section 8 of the Securities
Markets Act is that the primary financial statements, notes and
company's identification data in the consolidated financial state-
ments that are included in the ESEF financial statements of
Elenia Verkko Oyj 743700XGU4ZB5G4RPK50-2025-12-31.zip
for the financial year ended 31.12.2025 have been tagged, in all
material respects, in accordance with the requirements of the
Commission's regulatory technical standard.
Our opinion on the audit of the consolidated financial state-
ments of Elenia Verkko Oyj for the financial year ended
31.12.2025 has been expressed in our auditor's report dated
12.3.2026. With this report we do not express an opinion on the
audit of the consolidated financial statements nor express an-
other assurance conclusion.
72
ELENIA VERKKO OYJ GROUP FINANCIAL STATEMENT 2025
CONTENTS
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Notes to the consolidated
financial statements
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Helsinki 23.3.2026
Ernst & Young Oy
Authorized Public Accountant Firm
Miikka Hietala
Authorized Public Accountant