Notes to the financial statements

1 Basis of preparation for the financial statements

1.1 Income recognition principles

Hansel’s net sales consist of service fees for joint procurement and sales of expert services. The service fees are charged in arrears based on the sales reports of contractual suppliers so that the supplier reports their sales from the previous period to Hansel at the start of the new one. The reporting period is usually a month, but it can also be a quarter. Expert services are mainly charged in arrears based on the realised workhours on a monthly basis.

1.2 Valuation principles

Fixed assets are entered on the balance sheet at cost less planned depreciation. Reducing balance depreciation of 25% is applied to machinery and equipment. Software licences are amortised on a straight-line basis over five years. Other long-term expenses are amortised on a straight-line basis over five years.

Foreign currency items

Foreign currency denominated assets and liabilities are recognised at the European Central Bank average exchange rate on the closing date of the financial period.

1.3 Comparability of accounts

The accounting principles that were applied in 2020 were also applied in 2021.

2 Notes to the profit and loss statement

2.1 Personnel expenses and average number of personnel	2021	2020
Salaries	–8,519,422.23	–8,157,688.55
Fees and remuneration of the Managing Director and the Board of Directors	–321,930.41	–327,655.00
Pension expenses	–1,507,084.29	–1,321,911.97
Other indirect personnel expenses	–299,919.14	–289,796.14
Personnel expenses total	–10,648,356.07	–10,097,051.66
Total monetary value of fringe benefits	–62,320.47	–65,473.67
Number of employees
At the end of the financial period	124	118
On average during the financial period	116	111

2.2 Depreciation
Depreciation according to plan during the financial period
Intangible assets
Software licenses	–9,821.82	–22,178.47
Tangible assets
Machinery and equipment	–32,062.16	–42,749.63
Depreciation during the financial period total	–41,883.98	–64,928.10

2.3 Other operating expenses
Subsidies received	320,468.57	376,062.03
Other operating expenses	1,560,494.37	1,290,317.22
	1,880,962.94	1,666,379.25
2.4 Financial expenses
Administration expenses	–3,307,571.32	–3,028,853.27
Expenses from facilities	–699,428.91	–716,491.29
Telephone, data communications and office expenses	–716,224.20	–784,196.28
Marketing expenses	–150,423.49	–43,366.73
Travel expenses	–36,211.76	–55,331.71
PR expenses	–368.35	–1,677.66
Other operating expenses	–97,600.33	–95,456.82
Other operating expenses total	–5,007,828.36	–4,725,373.76

2.5 Financial income and expenses
Financial income
Interest income	163.49	1,335.49
Exchange rate gains	0.00	0.00
Other income from securities	296,125.64	32,051.71
Financial income total	296,289.13	33,387.20

Financial expenses
Interest expenses	–982.59	–547.56
Exchange rate losses	–68.26	–344.46
Other expenses from securities	–2,976.07	0.00
Financial expenses total	–4,026.92	–892.02

2.5 Auditors’ fees
Audit fees	–14,113.82	–19,507.32
Other fees	–16,223.84	–16,709.34
Auditors’ fees total	–30,337.66	–36,216.66

3 Notes to assets on the balance sheet	2021	2020
3.1 Changes in non-current assets
Intangible assets
Acquisition cost 1 Jan	498,302.58	498,302.58
Procured during financial period	0.00	0.00
Acquisition cost 31 Dec	498,302.58	498,302.58
Accumulated depreciation 1 Jan	–473,884.80	–451,706.33
Depreciation during the financial period	–9,821.82	–22,178.47
Accumulated depreciation 31 Dec	–483,706.62	–473,884.80
Balance sheet value 31 Dec	14,595.96	24,417.78
Tangible assets
Acquisition cost 1 Jan	1,082,945.15	1,082,945.15
Procured during financial period	0.00	0.00
Financial period’s deductions	0.00	0.00
Acquisition cost 31 Dec	1,082,945.15	1,082,945.15
Accumulated depreciation 1 Jan	–954,695.66	–911,946.02
Depreciation during the financial period	–32,062.20	–42,749.64
Accumulated depreciation 31 Dec	–986,757.86	–954,695.66
Balance sheet value 31 Dec	96,187.29	128,249.49
The company does not have any depreciation difference.

3.3 Receivables
Travel advances	4,672.61	7,418.71
Other receivables total	4,672.61	7,418.71

3.4 Prepayments and accrued income
Deferred expenses	11,679,746.20	655,330.07
Deferred expenses total	11,679,746.20	655,330.07

3.5 Financial securities	Book value	Book value
Other shares and similar rights of ownership
Fund units	2,206,864.00	2,203,374.80
	2,206,864.00	2,203,374.80

	Market value	Market value
	2,241,020.04	2,513,467.72
	2,241,020.04	2,513,467.72
	Book value	Book value
Pension investments	529,000.00	555,675.33
	529,000.00	555,675.33
	Market value	Market value
	585,821.52	555,675.33
	585,821.52	555,675.33
	Book value	Book value
Capital redemption policy	300,000.00	0.00
	300,000.00	0.00
	Market value	Market value
	310,126.58	0.00
	310,126.58	0.00
Financial securities total book value	3,035,864.00	2,759,050.13

4 Notes to equity and balance sheet liabilities	2021	2020
4.1 Equity
Restricted equity
Share capital 1 Jan	5,000,000.00	5,000,000.00
Reduction of share capital	0.00	0.00
Share capital 31 Dec	5,000,000.00	5,000,000.00
Restricted equity total	5,000,000.00	5,000,000.00

Unrestricted equity
Unrestricted equity reserve 1 Jan	2,968,128.27	2,968,128.27
Deduction from unrestricted equity reserve	0.00	0.00
Unrestricted equity reserve 31 Dec	2,968,128.27	2,968,128.27

Retained profit/loss 1 Jan	137,877.64	1,861,094.91
Pension investment correction in the 2020 financial period	–26,675.33	0.00
Retained profit/loss 31 Dec	111,202.31	1,861,094.91
Profit/loss for the financial period	–1,251,791.88	–1,723,217.27
Unrestricted equity total	1,827,538.70	3,106,005.91
Equity total 31 Dec	6,827,538.70	8,106,005.91

Calculated distributable assets 31 Dec

Unrestricted equity reserve	2,968,128.27	2,968,128.27
Profit from previous financial periods	111,202.31	1,834,419.58
Loss for the financial period	–1,251,791.88	–1,723,217.27
Distributable assets	1,827,538.70	3,079,330.58

Reserve for contingencies
Pension liabilities carried forward	523,574.00	477,452.00

4.3 Current liabilities
Accruals and deferred income
Annual holiday pay and related social security contributions	1,199,550.50	1,156,710.13
Salary liabilities and related social security contributions	232,832.85	209,145.03
Mandatory employer’s insurance payments	310.23	0.00
Other accrued expenses	16,366,906.73	1,098,825.48
Accruals and deferred income total	17,799,600.31	2,464,680.64

5 Notes on collateral and contingent liabilities
5.1 Transactions by related parties
Of the company’s net sales, EUR 2,561,273.61 (20.9 %) comes from the sales of expert services to the government and regional government, or organisations outside the government/regional government, but tied to them.
5.2 Commitments and liabilities
Other own commitments
Rental liabilities, less than one year	815,753.76	795,137.22
Rental liabilities, more than one year	840,226.37	1,654,476.28
Leasing liabilities, less than one year	79,989.67	75,076.75
Leasing liabilities, more than one year	132,869.43	196,076.89
Commitments and liabilities total	1,868,839.23	2,720,767.14

Electricity derivatives
Market value	45,198,267.10	3,446,239.94
Value of hedged volume (underlying security)	65,869,911.00	73,141,788.48

Government electricity procurement is handled centrally through Hansel’s framework agreement and involves derivatives that hedge against changes in electricity prices, in accordance with the government’s electricity hedging strategy. Hansel is responsible for the management of this portfolio and is the counterparty to the derivative agreements on behalf of its customers. The counterparties used by Hansel are large operators in the field, and to reduce risks, Hansel distributes the portfolio between various counterparties. At present, there are six potential counterparties. For Hansel, electricity derivatives trading is a pass-through item, and the related expenses and income are charged for in full from the Hansel portfolio customers. The market values of derivatives are not recorded on the balance sheet.

A monitoring group for electricity procurement, set up by Hansel, supervises government electricity procurement and proposes improvements if necessary. Hansel’s category manager summons the monitoring group. Hansel’s representatives meet the representatives of the Ministry of Finance regularly about electricity procurement.

The Ministry of Finance decides on the government’s hedging strategy for electricity procurement. According to this strategy, a portfolio manager chosen by Hansel through tendering decides on individual hedges and their scheduling. Hedges have been made accordingly until 2026.

5.3 Pending legal proceedings

At the end of 2021, Hansel had one pending claim in the Market Court. The company received five decisions in the Market Court in 2021. Three cases dismissed the claims, and in two cases, the claims were not processed, because they were dropped. In 2021, Hansel received two judgements of the Supreme Administrative Court on the same service concept. In these cases, there was no need to comment on the presented requirements, because the claims were dropped.

5.4 Key events after the financial year

The coronavirus pandemic continues to have a negative impact on Hansel’s business. It has been acknowledged in the company’s financial planning, but the pandemic has increased the number of risk factors. The Russian attack on Ukraine that began on 24 February 2022 has introduced more risk factors. This affects especially Hansel’s energy category.