THE YEAR 2015 01 • The year 2015 • New at Arctia in 2015 ..................................................................04 Arctia 2015 • The year 2015 in figures ............................................................. 05 • CEO’s Review ................................................................................06 02 • Arctia • Operating environment ...............................................................08 • Core messages and organisation ................................................12 • Corporate responsibility management ......................................17 • Financial responsibility ................................................................20 • Society and human rights ...........................................................23 EXPERT IN ARCTIC • Environment ................................................................................26 03 • Service areas CONDITIONS • Icebreaking services ......................................................................32 • Offshore services ..........................................................................34 Arctia’s icebreakers ensure the reliability and safety of • Oil spill prevention and response ................................................36 • Harbour icebreaking ....................................................................37 Finland’s shipping lanes in the winter. In 2015, we met • Arctia Events .................................................................................38 all service targets set for us in the Baltic Sea. Outside 04 • Personnel and governance • Personnel and governance ..........................................................41 Finland’s icebreaking season, we offered our customers • Competence and expertise ..........................................................45 reliable icebreaking and offshore services in challenging • Fleet ...............................................................................................48 conditions. 05 • Financial statements 2015 • Annual report ...............................................................................50 • Income statement ........................................................................58 • Balance sheet ................................................................................59 • Financial statement ......................................................................61 • Notes to the financial statements ...............................................62 • Auditor’s report ............................................................................75 • Principles of CR reporting ............................................................76 • Stakeholders and their expectations ...........................................77 • List of CSR reporting requirements .............................................78 02 01 The year 2015 KONTIO AND OTSO KEPT BUSY IN THE BAY OF BOTHNIA The Baltic ice winter was mild in 2014–2015. Only Kontio and Otso operated in assistance tasks in the Bay of Bothnia. Arctia’s conventional icebreakers were maintained in Helsinki and the multipurpose MODERN HARBOUR ICEBREAKING icebreakers in Rauma. The escort towing trial of harbour ice- breaker Ahto was successfully completed in the open water season in 2015. The vessel performed superbly as an escort tug and THREE SHIPS ABROAD met all expectations set for it. The Baltic winter only required the services of two Finnish icebreakers, while three vessels operated elsewhere in the summer. Nordica and Fennica worked in Alaska, while Otso operated in the waters of Greenland. STEADY PERFORMANCE Arctia’s turnover improved slightly from 2014. After the elimination of non- recurring items, the company achieved the best profit in its history in terms of operating margin. 03 News in 2015 Otso turned Nordica and Fennica New Finnish Arctic coopera- into a polar navigate the icebreaker tion in Finland icebreaker Northwest Passage named Polaris and abroad In 2015, the icebreaker Otso was out- The multipurpose icebreakers Nordica and The 2015 icebreaking season ended Arctia continued its cooperation with fitted for global duties in addition to Fennica returned from their summer ice on a festive note with the naming of various parties in the fields of ice- icebreaking in the Baltic Sea. The ves- management operation on the Chukchi Finland’s newest icebreaker in Arctech breaking and sustainable economic sel was fitted with a flume tank that Sea in October. On their return voyage, dockyard in Helsinki. The nearly 110- development in the Arctic. For exam- enables efficient operations in open- the vessels navigated the challenging metre long vessel was named Polaris, ple, Arctia is a member of the Team sea conditions. Otso’s hull was also ice conditions of the Northwest Passage. with Deputy Speaker of Parliament Arctic partnership that brings major reinforced and the vessel was fitted The Northwest Passage is a sea route con- Paula Risikko as its godmother. The Finnish companies together for the with new lifeboats and a removable necting the Pacific and Atlantic Oceans design and construction of Polaris development of solutions and joint helideck. These modifications received through Canada’s Arctic Archipelago at features advanced Finnish technology. business concepts for Arctic invest- international recognition in the form the northern tip of North America. In com- This unique vessel is capable of using ment targets. CEO Tero Vauraste is a of the ASF North America Innovation parison to the traditional route through both diesel and LNG as fuel, which member of the Board of Directors of Award. The modifications enable the the Panama Canal, the route saves time significantly reduces its carbon diox- the Arctic Society of Finland and the vessel to carry out tasks such as assist- and fuel. At the same time, taking this ide emissions. Polaris, commissioned by Vice-President of the Arctic Economic ing research vessels in all polar waters. route presented an excellent opportu- the Finnish Transport Agency, is cur- Council. In 2015, IB Urho hosted dig- By using the air-bubbling system and nity for collaboration with our Canadian rently the world’s most environmen- nitaries such as a group of MPs from adjusting the angle of its rudders, Otso partners and demonstrated the opera- tally friendly icebreaker. Arctia will be the Barents Sea region, Commissioner can also open a wider than usual chan- tional capabilities of Finnish icebreakers registered as Polaris’ owner in 2016. Jody Thomas of the Canadian Coast nel through the ice. in the most challenging conditions. On this Guard and former Prime Minister of unique passage, the vessels carried scien- Finland Paavo Lipponen, along with tists who studied the surrounding nature numerous journalists from around and ice and weather conditions. the world. 04 7 May 2015 10 July 2015 22 October 2015 The 2014–2015 icebreaking season ends in the Otso departs for Greenland. Otso arrives in Rauma. Baltic Sea with the arrival of Kontio in Helsinki. 2015 21 May 2015 16 October 2015 23 November 2015 Nordica arrives in Portland, Oregon, Nordica and Fennica start their return voyage Fennica arrives in Rauma, followed followed by Fennica four days later. from the Chukchi Sea through the Northwest by Nordica three days later. Passage. Staff Total Result of Profit Turnover the financial period Gross investment Return on investment, 261 MEUR MEUR MEUR MEUR % 273 267 75 25 25 25 2015 Sea personnel 70 20 20 20 230 11.8 237 236 65 15 15 15 Office personnel 60 10 10 10 31 55 5 5 5 2014 36 31 50 0 0 0 11.3 13 14 15 13 14 15 13 14 15 13 14 15 Operating days Baltic Sea 2015 62.1 2015 18.1 2015 14.6 2015 14.8 338 2013 175 573 12.5 2014 2014 2014 2014 Offshore 61.3 16.8 12.9 15.6 78 2013 2013 2013 2013 2015 2014 2013 380 244 63.0 17.5 13.4 17.8 05 Polaris will improve icebreaking service The company’s current operating areas, reliability in the Baltic Sea. the Baltic Sea and the Arctic region, are CEO’s Review Fennica’s ground touch in Alaska in both exceptionally fragile environments. July 2015, in an area where the water In addition to environmental matters, depth was significantly lower than business operations in the Arctic must marked on the charts, presented a chal- take into account the future of the lenge for our entire organisation. The area’s inhabitants and communities. For NEW incident tested our leadership abilities this purpose, our operations in US and in a crisis situation and our responsibili- Canadian waters have included scientists ties to our customer, the environment to monitor the natural environment. In and the authorities. Thanks to the excel- the coming years, Arctia plans to expand HORIZONS lent leadership of the officers on board, its cooperation with parties engaged in damage to the environment and injury polar research even further. to the crew were avoided. Our customer The order book for 2016 looks good In line with expectations, Arctia achieved a did not suffer any losses due to the inci- and the company is expecting a posi- positive result and cash flow for 2015. The dent, which was handled responsibly in tive result. However, Arctia’s ice manage- Baltic ice winter was uncommonly mild, but cooperation with the authorities. ment contract on the coast of Alaska will we were able to increase the utilisation rate For Arctia, corporate responsibility end and the market has undergone sig- of our fleet by converting IB Otso into a polar means responsible management of the nificant changes. Considering the current icebreaker alongside