THE YEAR 2016 01 • the YEAR 2016 • New in 2016

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THE YEAR 2016 01 • the YEAR 2016 • New in 2016 THE YEAR 2016 01 • THE YEAR 2016 • New in 2016 ..................................................................................................04 Arctia 2016 • The year 2016 in figures .............................................................................. 05 • CEO’s review ..................................................................................................06 02 • ARCTIA • Operating environment ...............................................................................08 • Core messages and organisation .................................................................12 • Corporate social responsibility management .............................................17 • Financial responsibility .................................................................................21 • Society and human rights ............................................................................24 RELIABLE SERVICES • Environment .................................................................................................27 03 • SERVICE AREAS IN ARCTIC CONDITIONS • Icebreaking services ......................................................................................33 • Offshore services ...........................................................................................36 Arctia’s main mission is to safeguard icebreaking • Oil recovery services ......................................................................................38 • Harbour icebreaking .....................................................................................39 operations and winter navigation in the Finnish marine • Arctia Events .................................................................................................40 areas. We offer our customers reliable maritime services 04 • PERSONNEL AND GOVERNANCE • Personnel and governance ...........................................................................43 in challenging conditions throughout the world. • Competence and expertise ...........................................................................47 In 2016, we achieved all service targets set for • Fleet ...............................................................................................................50 us in the Baltic Sea. We also represented and 05 • FINANCIAL STATEMENTS 2016 • Annual report ................................................................................................52 promoted Finland’s unique Arctic expertise worldwide. • Income statement .........................................................................................60 • Balance sheet ................................................................................................61 • Cash flow statement .....................................................................................63 • Notes to the financial statements ................................................................64 • Auditor’s report .............................................................................................77 • Principles of CSR reporting ...........................................................................79 • Stakeholders and their expectations ...........................................................80 • List of CSR reporting requirements ..............................................................81 THE YEAR 2016 ARCTIA SERVICE AREAS PERSONNEL AND GOVERNANCE FINANCIAL STATEMENTS 02 FLEET MODERNISATION AND REPLACEMENT PROGRAMME UNDERWAY In summer 2016, icebreaker Voima underwent THE YEAR 2016 a ten-year life span extension in which, e.g. the navigation equipment on the bridge was replaced. 01 In the autumn, the new-generation icebreaker Polaris, designed for the most challenging conditions in the Baltic Sea, joined our fleet. DIVERSE OFFSHORE EXPERTISE Icebreaker Otso provided assistance in a seismic survey of the seafloor in the waters along the North-East coast of Greenland in August– September 2016. In 2016, Arctia investigated the service needs of operators carrying out scientific research in the polar regions or those interested in doing so, and took the initiative of launching HARBOUR ICEBREAKING THROUGHOUT THE BOTHNIAN ARC In April 2016, Arctia Karhu Ltd expanded its operations to the entire Bothnian Arc when it signed a contract on escort tug services with the Port of Luleå. Image: Patrik Raski THE YEAR 2016 ARCTIA SERVICE AREAS PERSONNEL AND GOVERNANCE FINANCIAL STATEMENTS 03 2016 New in Polaris joins Ahto now also Life span of Changes in the the fleet assisting in Luleå Voima extended STCW Code increase training needs The world’s first LNG icebreaker Pola- In April 2016, Arctia Karhu Ltd and The icebreaker Voima spent the The training organised by Arctia for ris joined Arctia’s fleet in September the Port of Luleå signed a contract on rest of the summer 2016 in Naantali its sea personnel in 2016 focused on 2016. This unique vessel uses both escort tug services in the open water where it underwent a major life span the renewal of qualifications and liquefied natural gas (LNG) and low- season. Arctia hopes that the con- extension. For example, its bottom refresher training due to changes sulphur diesel as fuel. The use of LNG tract is a beginning of long-standing was fitted with about 250 tonnes made in the international STCW Code significantly reduces the vessel’s emis- cooperation with the Port of Luleå. of new sheet metal and the naviga- (International Convention on Stand- sions. Polaris is the most eco-effi- For the port, the contract is part of tion equipment on the bridge was ards of Training, Certification and cient diesel-electric icebreaker in the the Malmporten project. Channels replaced. The lifetime of the vessel Watchkeeping for Seafarers). The world. It started its operation as a leading to the port are dredged to was increased by ten years with the extensive training schedule organ- Baltic Sea icebreaker in January 2017. allow access to larger Panamax and life span extension. Arctia donated ised by the employer in a centralised The EU supported the construction of post-Panamax class vessels. Larger two of Voima’s old engine order tel- way offered new aspects into increas- Polaris with TEN-T funding. ships need escort tug services, and egraphs to maritime museums. The ingly safe operating methods even the contract between Arctia Karhu modernisation of Voima was part for the most experienced seafarers. Ltd and the Port of Luleå will meet of the WINMOS II project, and it In 2017, the sea personnel is able this need. was partly funded by the European to continue working with updated Union’s Connecting Europe Facility qualifications and knowledge. The (CEF) for Transport. changes in the STCW Code will have an impact on the training needs of sea personnel also in the future. Image: Patrik Raski Image: Timo Aaltonen THE YEAR 2016 ARCTIA SERVICE AREAS PERSONNEL AND GOVERNANCE FINANCIAL STATEMENTS 04 1 January 2016 7 May 2016 27 September 2016 8 December 2016 Due to restructuring of the Group, Icebreaking season 2015–2016 ends IB Otso returns Icebreaking season 2016–2017 starts Arctia Shipping Ltd to be known as as Kontio returns to Katajanokka from Greenland after Otso leaves Katajanokka for Arctia Ltd as from this date from the Bay of Bothnia the Bay of Bothnia 2016 11 April 2016 28 May 2016 28 September 2016 New contract for Arctia Karhu Ltd Life span extension of IB Voima started IB Polaris joins Arctia’s fleet Staff Result of the Total Turnover Operating profit financial period Gross investment Return on capital invested 273 MEUR MEUR MEUR MEUR % 265 261 75 25 25 150 2016 Sea personnel 70 20 20 120 237 5.7 233 230 65 15 15 90 Office personnel 60 10 10 60 36 55 5 5 30 2015 32 31 50 0 0 0 11.8 14 15 16 14 15 16 14 15 16 14 15 16 Operating days Baltic Sea 2016 60.7 2016 12.9 2016 9.1 2016 131.6* 175 2014 385 338 11.3 2015 2015 2015 2015 Offshore 64.4 18.1 14.6 14.8 380 2014 2014 2014 2014 2016 2015 2014 61 78 61.7 16.8 12.9 15.6 *Polaris THE YEAR 2016 ARCTIA SERVICE AREAS PERSONNEL AND GOVERNANCE FINANCIAL STATEMENTS 05 on market terms, and it has a significant basic value of state enterprises. Arctia is impact on the company’s balance sheet. the first Finnish shipping company to pro- CEO’s review The vessel is the most eco-efficient ice- vide a regular public report on corporate breaker of all time as it uses liquefied nat- responsibility. Financial responsibility is ural gas, LNG, as fuel in addition to ultra- born by safeguarding the company’s self- low-sulphur diesel. In terms of its technical sufficiency and development possibilities properties, Polaris has turned out to be with long-term partnerships. Environmen- THE SEAS ARE an excellent icebreaker for the Baltic Sea, tal responsibility is constantly developed able to work efficiently in changing and with new technical solutions, e.g. utilising demanding ice conditions. environmentally friendly fuel technology. CHANGING The life span of the oldest vessel in our We assume our social responsibility by tak- fleet, icebreaker Voima, was extended in ing care of the continuity and develop- the summer. The modernised vessel will ment of human capital with training and In 2016, the Arctia Group’s performance be able to carry on its icebreaking duties mentoring. The number of occupational remained at a good level and the operational for the next ten years. Harbour icebreaker accidents fell in 2016 as a result of tar- cash flow was positive despite a fall in turno- Ahto, on the other hand, fostered Finnish- geted occupational safety development
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