Annual report2015

funding forms. The University of Oulu has invested in creating practices for the new EU programme period 2014–2020 and pro-viding support to applicants. We have increased funding for H2020 projects in particular. In 2015, preparation funding was also granted to Horizon 2020 projects from strategic research funds a total of EUR 100,000 that aimed to increase both application activeness and the competitiveness of applications. A record number of applications was submitted during the application processes related to the first work programme of the H2020 programme. So far, 24 projects have received funding.

In order to acquire complementary funding related to re-search, a support service unit for research was created in 2015. The unit’s task is to offer research service managers to be placed in faculties with a current and comprehensive status view of the pos-sibilities of complementary funding. Research service managers help researchers form better project consortiums. The unit’s task is also to lighten the burden on researchers related to contractual issues and reporting.

The planning for the renewal of the communication, market-ing and brand of the University of Oulu continued in 2015 led by the new head of communications. The objective of the communica-tion reform is that students and researchers in Finland and abroad find the University of Oulu and its faculties an attractive option, that the entire organisation communicates in accordance with common targets and that communication is effectively organised. A further objective is to improve the internal information flow and interaction.

The renewal of the university’s strategy was started in the spring of 2015. The renewal process has involved a large group of members of the university community. The new strategy aims at creating a clear scientific profile for the university. As a result of the development projects, the university will be more attractive and influential. According to its renewed strategy, the University of Oulu is an international research and innovation university that participates in meeting global challenges in its own areas of ex-pertise. Within those expertise areas, the university’s research is internationally cutting-edge, and the international level is reached in many areas. The university offers research-based higher educa-

Notable events during the financial periodIn 2015, an organisational reform was carried out across the whole university. Research units were formed in all faculties as their basic organisational structure and in which the teaching and research personnel were placed. Apart from the Sodankylä Geophysical Observatory, separate departments were given up and their research staff were placed in the research units of faculties.

Faculties have been obligated to base their funding distribu-tion on performance. An organisation that is based on research units not only supports profiling, but also improves performance through heightened cost-awareness, intrapreneurship and coherence of the groups. The organisational reform aims at the improved competitive-ness of the university, efficient operations and a sense of community.

The management system of the university has been renewed by establishing a new post of a Vice Rector for Cooperation Affairs alongside the Vice Rectors for Education and Research. Three Vice Rectors have also been assigned faculties they are in charge of. Implementing the third task of the university requires investing in the development of social interaction. Previously, these tasks were included in the strategy for research and education. In 2015, it was decided that the profile of these strategies would be highlighted and the objectives of social impact would be separated into an entity that could be measured.

It was decided as part of the organisation renewal that as of the beginning of 2016, the University of Oulu Infrastructure Platform starts its operation. It includes the university’s extensive internal infrastructures that cross the international, national and faculty boundaries. It is funded and centrally led by the mandate of the Vice Rector for Research. The university-level infrastructures include Biocenter Oulu Infrastructure Core, Biodiversity Unit, Laboratory Animal Centre, LeaForum – Multi-disciplinary Interaction Research Community, Center of Microscopy and Nanotechnology, and Oulan-ka Research Station. The service capability, functioning and market-ing of the infrastructures is enhanced with a joint steering group of infrastructure managers led by the Vice Rector for Research.

In terms of acquiring international research funding, the Uni-versity of Oulu emphasises succeeding in the application processes of the EU Framework Programme for Research and Innovation, Ho-rizon 2020, and in particular the European Research Council’s (ERC)

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The University of Oulu has implemented a renewal of doctoral training that covers the whole university. We continue to develop the structure of the doctoral training with the aim of improving mentoring and graduating within the target time and increasing the relevance to working-life in addition to an academic career. The thematic doctoral programmes of the university’s doctoral training cover all of the doctoral training, and strategic resources are allocat-ed according to the strategy to the areas of expertise and new oppor-tunities. The strategic resourcing of the doctoral training covers 150 education posts and the organisation of operation and training events. The University of Oulu will centralise all of the doctoral training into multidisciplinary doctoral programmes. The develop-ment of the doctoral training is based on research. In 2015, based on the results of a scientific survey carried out on doctoral students, special attention will be paid to the quality of mentoring and the training of mentors.

The strategic action plan supported the achieving of targeted performance related to education. In 2015, the number of complet-ed Bachelor’s degrees was 1,438, while the target was 1,280. The increase in the number of Bachelor’s degrees compared to the pre-vious year was 184, corresponding to more than 14%. In 2015, the University of Oulu exceeded its target for the number of completed Bachelor’s degrees. Similarly, the number of completed Master’s degrees was 1,245, while the target was 1,545. The decrease in the number of degrees compared to the previous year was 148, corre-sponding to 10%.

Based on calculation in accordance with the funding model, the proportion of students who have completed 55 ECTS credits was 37.1% of basic university degree students, which considerably ex-ceeds the target of 30% set in the performance agreement. In 2014, which is the previous year with available statistics, the proportion of these students was 32.8%. Compared to 2014, the increase in the number of students who have completed 55 credits was 398, that is 12%, which is mainly due to the first and second year students. A positive development is expected to continue.

The number of university staff has fallen, measured in person-years, between 2012 and 2015 by more than 200 persons, while the reduction has fallen upon the support personnel al-most exclusively. The reduction has been achieved by centralising support services under the control of the process management in question, which ensures efficient and economical operation but also enables a good and uniform service level. Outsourcing ser-vices to Certia, a service centre for universities, has been used in a comprehensive manner both in financial administration and personnel administration.

tion and trains young people to serve society and mankind. The work carried out by the university results in new research-based infor-mation, competence and future professionals, and possibilities for innovations.

The University of Oulu’s strategy is based on five thematic, internationally significant research focus areas. Within these areas, the university participates in solving global challenges and produces new information in order to construct a more sustainable, healthier, more intelligent and more humane world. The focus areas are the following:

› Creating sustainability through materials and systems

› Molecular and environmental basis of lifelong health

› Digital solutions in sensing and interactions

› Earth and near-space system and environmental change

› Understanding humans in change

These five focus areas have been formed while considering the university’s Research Assessment Exercise results (RAE2014 report), international peer reviews of the university’s thematic research areas, success in national Centre of Excellence programmes, other national and international analyses of disciplines and the national role and regional impact. The university’s profile is also affected by strategic cooperation agreements and distribution of work with other univer-sities and operators.

Based on the number of scientific publications, the univer-sity’s research-related performance remained at the same level as during previous years, but the number of doctorates (171) increased compared to previous years and exceeded the target (158). Two new Academy of Finland Centres of Excellence will operate in the Uni-versity of Oulu for the period 2014–2019 under the coordination of researchers from the University of Oulu: the Centre of Excellence in the Relational and Territorial Politics of Bordering, Identities, and Transnationalisation and the Centre of Excellence in Research on Solar Long-term Variability and Effects. In addition, during 2012–2017, the Centre of Excellence in Cell–Extracellular matrix research operates at the University of Oulu. The first programme period of the strategic council of the Academy of Finland started at the end of 2015, and the researchers of the University of Oulu are responsible for the coordination of a selected project and they act as a partner in another project.

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studies offering has had a positive effect on the speed of course completion, and it has reduced the number of course completions pending from the first year of studies.

In 2015, in order to reduce the fragmentation of studies, ac-tions were continued to increase the minimum number of course credits to five. Dividing studies into larger entities has also been found to speed up studies.

The operation of Examinarium, a camera-supervised envi-ronment taken into use in the autumn 2013, has been further de-veloped. The Exam examination system and the implementation of online examinations will enable the renewal of the entire examina-tion logistics of the university. Online examinations will be adopted during the academic year 2016–2017.

The University of Oulu continues the development tasks of the national student selection process by requiring that the study path system complies with the ECTS guidance and uniform selec-tion criteria are applied. The implementation of a national student selection system for higher education requires a uniform descrip-tion method of education and attractive degree programmes. The university has acted as an example to the entire university estab-lishment when they have described and renewed the educational structures according to the requirements of the European Credit Transfer and Accumulation System (ECTS).

Key figures of education in 2012–2015.

Year 2012 2013 2014 2015

Master’s degrees 1 315 1324 1393 1245

Bachelor’s degrees 1 144 1067 1254 1438

Completed credits 412 246 425 749 439 585 442 133

Master’s degrees completed by foreign students

73 91 120 98

Number of students who completed 55 credits

2 833 2 927 3 295 3 693

EducationDuring 2015, the University of Oulu continued to execute the educational strategy for 2012–2015. Progress was made in the actions included in the strategy related to the fluency, relevance to working-life and international outreach of studies according to the strategy. The strategy has had a significant effect on the university’s performance and internationalisation and the implementation of studying-oriented information systems.

During 2013–2015, the number of completed degrees has steadily increased. In 2015, the share of Master’s degrees completed by foreign students was slightly below 8% (98 degrees). Within one year, the number of completed degrees has decreased by 18.3%.

During 2015, the University of Oulu has significantly de-veloped the quality management of education and renewed the support services of education. In addition to a good operational input–output ratio, the objective of these measures is to be able to offer basic degree education that is globally attractive due to its high quality and a good studying experience. Based on the results of the Bachelor feedback survey, each degree programme has been obli-gated to analyse and record any statistically significant deviations from the university’s average or the average of their own field. In addition, the degree programmes have been expected to initiate development actions. This process is repeated annually.

Based on the results of the Bachelor feedback survey 2015, the University of Oulu must pay special attention on the mentoring of Bachelor’s theses, developing the teaching methods and improving the students’ possibilities to influence and participate. Compared to the results of the year before, interaction between students and the teaching staff has improved the most. The response rate in the Bachelor feedback survey carried out by the University of Oulu was the second highest in Finland, 82%.

Starting from the autumn term of 2012, the Linnanmaa cam-pus has applied a common teaching timetable. This has resulted in a significant improvement in the utilisation rate of teaching prem-ises. The median credit accumulation for both the first and second year students has continued to increase and is at a level of 56 course credits and 57.5 course credits.

Since 2011, the annual study period has been extended by summer studies offered in cooperation with the Open University and the Summer University of Northern Ostrobothnia. The summer

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training while taking into account the strategic goals of the uni-versity. Further key targets in this renewal include implementing doctoral education within the target time of four years, and lower-ing the average age of completing a doctoral thesis. In the future, national and international recruitment for the UniOGS will be further developed. An example of this is the joint doctorate pro-gramme started together with the University of Ulm. The views of doctorate students on developing researcher training were studied with the help of a survey (Pyhältö 2016).

As of the beginning of 2016, the University of Oulu Infra-structure Platform starts its operation. It includes the university’s extensive internal infrastructures that cross the international, national and faculty boundaries. It is funded and centrally led by the mandate of the Vice Rector for Research. The university-level infrastructures include Biocenter Oulu Infrastructure Core, Bio-diversity Unit, the Laboratory Animal Centre, LeaForum – Mul-ti-disciplinary Interaction Research Community, Center of Micros-copy and Nanotechnology, and the Oulanka Research Station. The service capability, functioning and marketing of the infrastruc-tures is enhanced with a joint steering group of infrastructure managers led by the Vice Rector for Research.

The University of Oulu participates in 12 infrastructure networks accepted to the national Roadmap 2014–2020 by the Academy of Finland. The University of Oulu has the responsibility of Finnish coordination of four international infrastructural net-works. In 2015, the Academy of Finland granted EUR 12.8 million in conditional funding for the construction of the international scientific EISCAT 3D radar system in Norway, Sweden and Finland. In Finland, the project is coordinated by the Sodankylä Geophysical Observatory of the University of Oulu.

One of the conditions on the funding set by major research donors in the United States, Europe and several other countries has been that research data is saved in public archives and that they are opened as extensively as possible to be used by the community of researchers. At the same time, the aim to protect personal privacy and the possibility of using research results commercially have created the need for data policy guidelines on how these seemingly opposing aims can be merged. In Finland, this work is steered by the Open Science and Research Initiative launched by the Ministry of Education and Culture. The University of Oulu’s Open Science and Research Initiative guidelines are part of this aim to merge the requirements of open science and the rights of a researcher and the aim to protect the privacy of an individual in all situations.

The University of Oulu has formed the principles with which open science and research become a natural part of all operations in

ResearchIn 2015, the focus areas for the strategic guidance for research have been the development of research environments, processing the Research Assessment Exercise results, recruitment of top-level inter-national researchers by using the tenure track process, establishing the practices related to the operation of the doctorate programmes at the University of Oulu, utilising the outcomes of the national infrastructure road map, mapping research materials, and creating a data policy. The renewed faculty organisation facilitates the stra-tegic guidance of research and resource allocation to high-quality research groups.

The university has contributed to the improvement of the conditions for conducting high-quality research by supporting multi-disciplinary research centres, namely Biocenter Oulu, Infotech Oulu, the Thule Institute and the Eudaimonia Institute. In 2015, 13 new projects were selected to Biocenter Oulu following a recommendation of an international assessment panel.

The operation of the Medical Research Center (MRC), a joint research organisation of the University of Oulu and the hospital district of Northern Ostrobothnia, is closely related to the Borealis Biobank, established in 2014 by the University of Oulu with the hos-pital districts of Northern Finland and their laboratory unit NordLab. Valvira issued a licence to the Borealis Biobank; it was entered in the national biobank registry on 10 July 2015 and can therefore start operations in 2016.

Since 2008, when the Oulu Mining School network was found-ed, its operational scope has expanded beyond basic educational tasks, and it is currently also involved in research activities. The Faculty of Oulu Mining School was established in 2014. After the establishment of the faculty, a professor of applied geophysics (a joint professorship with the Geological Survey of Finland, as of 1 March 2015), a professor of enrichment technology (as of 1 August 2015) and a professor of economic geology (as of 1 August 2015) have been recruited in the faculty. During the spring of 2016, a professor will be appointed in mining engineering (an international application process is about to be completed).

Year 2015 was the fourth full operational year for the Univer-sity of Oulu Graduate School (UniOGS). UniOGS is a major organ-isational change, where the dean heading the school and three doctoral education committees process all policies related to doctor-al education, fill the doctorate student positions, approve education plans and grant degrees. Compared to the earlier faculty-based operational model, this provides a major opportunity to harmonise processes, promote equal treatment of students and plan researcher

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the university. The University of Oulu’s data policy and action plan are important parts in this. The action plan has been approved as a part of the University of Oulu’s strategic action plan in January 2016. Researchers are supported in all of the phases of material manage-ment, and open publication is promoted. National and international requirements of open science and research are followed in the Uni-versity of Oulu while considering the requirements set by innovation operation and the protection of privacy.

The University of Oulu has been successful in utilising the na-tional Finnish Distinguished Professor’s Programme (FiDiPro), and currently there are ongoing projects by nine recruited professors or fellows. In 2015, the University of Oulu received a new FiDiPro fel-low: Stefanos Zafeiriou, PhD, from the UK to the research project on computer vision led by Guoying Zhao and carried out in the Faculty of Information Technology and Electrical Engineering.

The Academy of Finland has established a strategic council whose funding is used for pursuing support for managing with data, solutions for the renewal of Finnish society and ideas for the future of economic and working life. The first programme period started at the end of 2015, and the researchers of the University of Oulu are responsible for the coordination of a selected project and they act as a partner in a project coordinated by the Finnish Geospatial Research Institute.

The University of Oulu participates in a professors pool supported by certain foundations, whereby professors can apply for funding to finance a research leave. In the 2015 application process, 8 researchers from the University of Oulu were granted research leave.

Key figures of research in 2011–2015.

Research funding * 2011 2012 2013 2014 2015

Research funding from the Academy of Finland, 1000 €

18 609 20 449 19 366 18 486 19 712

Tekes funding **, 1000 € 10 752 16 044 16 109 14 871 15 753

Competitive international research funding, 1000 €

5 497 4 915 5 598 6 257 5 892

Ratio of competitive funding to total funding, %

29,9 % 30,7 % 27,8 % 26,7 % 25,5%

Number of scientific publications 2 374 2 188 2 253 2 222 2511

* the share of research has been defined based on the criteria that the Ministry of Education and Culture applies to research cost calculations: the numerator includes the research expenses and the expenses of the competitive research, whereas the denominator includes the total expenses of ordinary operations as stated in the profit and loss statement.

** excluding the EAKR funding for Tekes projects

Innovation activitiesThe university aims to utilise the commercial potential of research findings that provides economic gain both to the researcher, univer-sity and society. In view of this, the university regards the produc-tive use of research findings and professional competence as an important merit for its staff.

As a new form of funding, the university invested EUR 100,000 this year in the so-called Proof-of-Concept (PoC) phase. The objective of the PoC project is to carry out the first implementation of a commercially potential idea and collect primary data in order to demonstrate the feasibility of the idea.

During the year, investments in spin-offs of research con-ducted at the University of Oulu amounted to nearly EUR 5 million in total. During 2015, three new research spin-off companies were founded including Valossa Labs Ltd in which Butterfly Ventures made an initial stage investment of EUR 650,000.

The university is a minority shareholder in five spin-off com-panies, and is making preparations for the ownership of another two companies.

Commercial utilization of research findings supports the university’s research activities in various ways, such as providing a source of supplementary competitive funding. In 2015, the Uni-versity of Oulu was successful in five bids for funding from Tekes under the TUTLI (New knowledge and Business from Research Ideas) funding programme. Funding is granted to develop new, re-search-based business.

Research findings may be the start of a new business. In 2015, the university received a total of 54 invention disclosures. Further-more, during the past year, thirteen technology transfer agreements were made with the companies participating in research projects. For business partners, invention disclosures are an important indi-cator of the success of research cooperation. In addition to invention disclosures, a number of innovations are created that come under the copyright act, including computer programmes and algorithms.

Seven priority patent applications were filed by the University of Oulu. At the end of 2015, the university held 24 patent families consisting of priority patents or patent applications.

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The University of Oulu implements a separate fundraising campaign according to instructions issued by the state on universi-ties on capitalisation on 1 November 2014–30 June 2017. With the campaign called Growing Together, the University of Oulu wishes to communicate the importance of science and basic research in constructing the growth and well-being of the future.

To support the campaign, the university put together an exter-nal management team comprising university alumni members and stakeholders. Industrial counsellor Jorma Terentjeff is the chairman of the management team and Paavo Lipponen, the former Prime Minister, was nominated as the patron of the campaign.

The University of Oulu has set a target of increasing the university’s donation assets with the campaign by EUR 21 million including state funding that matches private donations. This means a result of at least six million euros by 30 June 2017. The aim is that the campaign will also create a permanent culture of making a donation to research among alumni and the public. The university aims at having at least 2,000 donors as a result of the campaign.

In 2015, the total result of fundraising was EUR 2,320,022 of which the share of campaign donations was EUR 2,318,659.

At the end of 2015, the total result of the fundraising cam-paign started in November 2014 was EUR 4,469,044, including paid donations EUR 2,494,544 and confirmed donation commitments EUR 1,974,500. At the end of the year, the total number of individu-al donors was 912.

Fundraising assets are a significant part of the investment as-sets of the University of Oulu. At the end of 2015, the market value of the fundraising investment portfolio was EUR 47.9 million.

Key figures of fundraising in 2015.

Campaign donations 1 January – 31 December 2015 EUR 2,318,659

Other fundraising (product sales) 1 January – 31 December 2015 EUR 1,363

The result of fundraising 2015 EUR 2,320,022

Campaign donations 1 November 2014 – 31 December 2015 EUR 2,494,544

Donation commitments 1 November 2014 – 31 December 2015 EUR 1,974,500

The total result of the campaign 31 December 2015 EUR 4,469,044

Key figures of innovation activities in 2012–2015.

Year 2012 2013 2014 2015

Invention disclosures 57 82 53 54

Priority patent applications 4 3 2 7

University’s patent portfolio (number of patent families)

20 22 22 24

Technology transfer contracts 4 10 13 13

Spin-off companies part owned by the university

6 3 4 3

TUTLI funding by Tekes (M€) 7 7 6 5

The Oulu Innovation Alliance is a strategic agreement entered into in 2009 by the City of Oulu, the University of Oulu, the Oulu University of Applied Science, VTT and Technopolis Oyj, whereby operations are focused on agreed innovation fields in order to enhance the utili-sation of research knowledge and special competences to strengthen business operations and to create new operations. The focus areas are internet research (Centre for Internet Excellence), printed electron-ics (PrintoCent), international business operations (Martti Ahtisaari Institute), health and well-being (Centre for Health Technology) and the fields of environment and energy (Centre for Environment and Energy). In 2015, the innovation alliance for metal and mechanical engineering industry, which is coordinated by the University of Oulu, started its operations. In 2015, a new strategy was planned for the Oulu Innovation Alliance, and the focus areas of operations were outlined for 2016.

FundraisingActivities related to community relations and fundraising facilitate achieving the university’s strategic objectives, and they contribute to the university’s regional and societal influence in its core compe-tence areas.

The University of Oulu performs active fundraising and allo-cates profits on the equity acquired by fundraising according to the university’s strategy to those operations that increase the effective-ness of the university and also increase the vitality and competitive-ness of the region and the whole country.

During 2015, the operations of fundraising and alumni rela-tions were integrated as part of the university’s service entity of com-munication, social relations and marketing. The basic competence of fundraising was also improved by recruiting a fundraising specialist.

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PremisesAt the end of 2015, the University of Oulu rented premises cov-ering a floor area of 186,100 m2. In 2015, the University of Oulu discontinued the leases with a 12-month notice for a total of 13,500 m2: the facilities in the zoo (700 m2), the western parts of Linnanmaa (10,000 m2) and the facilities of architecture in the city centre (2,800 m2).

During 2015, renovations supporting the structural develop-ment or alteration works caused by space rearrangements were car-ried out at the premises rented by the University of Oulu. The total area where renovations and alterations were made covered 8,900 m2: changes in the facilities of mechanical engineering and industrial management, facilities for biology and mathematics, teaching labo-ratories for chemistry and physics, and phase 1 of workshop facili-ties at Linnanmaa campus.

Construction work was started at Linnanmaa Campus for the second phase in workshops (1,640 m2) and in the Center of Microscopy and Nanotechnology (200 m2). In Kontinkangas, the construction was started on facilities for the City of Oulu, the Oulu University of Applied Science and the Dentistry Department of the University of Oulu. The total area is 9,245 m2, of which the universi-ty will use an area of about 2,000 m2. In addition, a project plan was prepared for the Center of Microscopy and Nanotechnology that covers a total of 700 m2.

In 2015, facility changes took place in Linnanmaa due to centralised library operations in the Pegasus Library when all of the operations of the campus library were transferred into Pegasus. The Tellus Library that is no longer used as a library was changed with minor modifications into the TellUs Innovation Arena. Laboratory changes were implemented in the main building at the Oulanka Research Station due to the discontinued use of the laboratory and accommodation building.

The Campus Vision 2040, a joint effort by University Proper-ties of Finland Ltd and the University of Oulu, provides guidelines for land use and space utilisation for a period of 30 years.

As the financial situation of the University of Oulu is chang-ing and the university’s organisation structure will change into a research unit-based structure, and the fact that research teams have the opportunity to discontinue using spare facilities, projects in the planning phase and the objectives of the campus vision were again examined during the summer and autumn of 2015. The Faculty of Science’s project phases 2, 3 and 4 and project phases 2 and 3 of pro-

cess engineering and mining were decided to be postponed, a total area of 8,500 m2. The preparation of the projects was continued for phase 1 of architecture and computer science and process engineer-ing and mining (7,700 m2). The situation for other projects being planned will be evaluated again in the autumn of 2016.

According to the agreement on the Linnanmaa facility and lease arrangements, the division of the extensive lease contract concerning the construction phases 1–7 in Linnanmaa (82,000 m2) into partial contracts and the preparation of the facilities of which the contract would be discontinued (about 21,500 m2) were imple-mented with University Properties of Finland Ltd mainly during 2015. The objective is that renewed agreements will be finalised and signed in early 2016.

In 2015, an assessment was also started on parking in Lin-nanmaa and Kontinkangas, as well as on the audio-visual equip-ment in teaching and meeting facilities. In addition, the compre-hensive planning and development of Väylä at Linnanmaa campus was started along with tidying the overall look in the area.

Financial position 2015The gross income during 2015 was EUR 221.8 million (EUR 222.0 million in 2014) with a profit of EUR 11.9 million (profit of EUR 3.7 million in 2014). Excluding the revenue from investments and fundraising, the earnings of the University of Oulu before interests and taxes were EUR -15,900 (EUR -4.0 million in 2014). Solvency remained excellent, with an equity ratio of 87.8 % (85.8 % in 2014). Also liquidity was good.

According to the agreement between the Ministry of Educa-tion and Culture and the University of Oulu, core funding for 2015 was EUR 149.3 million (EUR 146.7 million in 2014). For 2015, the university index defined in section 49 subsection 2 of the Univer-sities Act was applied in half, but the effect of halving the index was compensated with a one-off compensation. The university also received a EUR 13.2 million (EUR 15.8 million in 2014) state grant based on the agreement on VAT compensation for universities.

Income from ordinary operations (revenue from supplementa-ry funding) was EUR 72.2 million (EUR 75.3 million), representing 32.6 % (33.9 %) of total revenue. Income from ordinary operations consisted of revenue from grants amounting to EUR 58.4 million (EUR 62.2 million), revenue from business operations amounting to EUR 9.4 million (EUR 9.1 million) and other income amounting to EUR 4.5 million (EUR 4.0 million). Received subsidies include

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of Oulu currently owns 10.41% of the share capital of University Properties of Finland Ltd and 19.49 % of the share capital of Certia Ltd. Certia Ltd distributed funds from the SVOP fund in 2015. The share allocated to the University of Oulu was EUR 155,900 which was posted as a deduction to share procurement cost. A significant number of projects linked to the use of income from investment activities were postponed from 2015 to 2016.

Investment activities 2015 The long-term objective of the university’s investment activities is to ensure a purposeful, productive and safe investment of funds, while taking into account profit targets, acceptable risk levels, accounta-bility and requirements for liquid assets. The University of Oulu is a responsible investor, and it requires that its cooperation partners related to financial asset management have signed the UN Princi-ples for Responsible Investment. The UN Principles for Responsible Investment discuss the environmental, social and governance fac-tors relevant to investment activities. In 2011, the management of financial investment assets was outsourced to three asset managers with full authorization. The asset managers were selected based on a competitive bidding -process.

According to the investment policy approved by the Univer-sity Board, the university’s financial assets are intended to be in-vested with an investment horizon of several decades, but at least a proportion of the annual return must be available on short notice for the Board to make annual decisions regarding the allocation of revenue. The income from investment activities is mainly used to finance specific projects approved by the Board and to increase equity, which ensures that more and/or larger projects can be financed in the future.

The accounting result for investment and financing activities during 2015 was EUR 12.2 million (EUR 8.0 million). At the end of 2014, appreciations entered in the fair value reserve were en-tered as income in the profit and loss statement as asset managers sold their shares after the rise in early 2015. Dividends received amounted to EUR 1.3 million (EUR 1.8 million), and they include a EUR 1.3 million (EUR 1.6 million) dividend from University Prop-erties of Finland Ltd.

2015 proved to be a good investment year, especially in the western stock markets and regarding government bonds. In 2015, the annual profit from the investment portfolios of the University of Oulu varied between 2.0 and 13.3%. For the whole year, the best profits were yielded by European shares 14.5% and North-Amer-ican shares 11.8 %, of which the profit was mainly achieved as a

compensations paid to teacher training schools amounting to EUR 5.4 million (EUR 5.1 million).

Expenses for ordinary operations for the financial period were EUR 221.8 million (EUR 226.1 million), of which personnel expenses accounted for EUR 146.9 million, corresponding to 66.2% of overall operational expenditure (EUR 151.9 million and 67.2% in 2014). In 2015, the average number of employees was 2,900 (3,019 in 2014). The pay raise for 2015 for the 2014–2017 agreement period of the collective agreement for universities took effect on 1 August 2015. The raise was 0.3–0.4% depending on the salary system.

Supplementary research funding, which must be reported to the Ministry of Education and Culture, amounted to EUR 56.6 million (EUR 60.4), which represents 25.5% (26.7%) of the univer-sity’s total expenditure. The figure is calculated using a formula specified by the Ministry and it deviates slightly from the amount of revenue from grants stated in the profit and loss statement. The share of international competitive research funding of total ex-penditure amounted to EUR 5.9 million (EUR 6.3). Supplementa-ry funding mainly consists of project funding from the Finnish Funding Agency for Technology (Tekes), the Academy of Finland and the European Union.

In 2015, rental expenses for premises and other leases were EUR 28.1 million (EUR 28.2 million), amounting to 12.7 % (12.5 %) of expenses of ordinary operations. The actual deficit from ordinary operations according to the foundation formula was EUR -149.6 million (EUR 150.8 million), of which EUR 149.5 million (EUR 146.7 million) was covered by a general grant from the state.

On 31 December 2015, the balance sheet total was EUR 219.1 million (EUR 213.4 million). Fixed assets amounted to EUR 69.7 million (EUR 68.8 million) and current assets to EUR 144.3 million (EUR 139.8 million). A major part of the university’s basic capital comprises the shares of University Properties of Finland Ltd and funds collected by fundraising activities, including government co-financing. The amount of total equity at the end of the year was EUR 178.6 million (EUR 171.7 million), of which the value of the shares of University Properties of Finland Ltd is EUR 54.2 million, representing 30.3 %. Current liabilities amounted to EUR 34.8 mil-lion (EUR 37.2 million) and provisions for liabilities and charges to EUR 0.4 million (EUR 0.4 million).

Total investments in the financial statement amounted to EUR 6.7 million (EUR 6.5 million). Investment grants amounted to EUR 0.7 million (EUR 1.2 million). Investments in intangible and tangi-ble assets amounted to EUR 6.7 million (EUR 6.5 million) and other investments to EUR 0.0 million (EUR 0.0 million). The University

16—17

result of the exchange currency. With regard to long interest in-vestments, the profit of 2015 was negative apart from government bonds. In the university’s investment portfolio, government bonds were the most profitable interest rate instrument with their 1.7 % profit. During 2015, the total market value of investment port-folios increased by EUR 3.6 million and, at the end of 2015, the asset managers were responsible for investments worth EUR 111.3 million. In 2015, the change in the market value of the fundraising portfolio was EUR 1.7 million, amounting to 3.6 %, and the portfo-lio for financial assets funded by the government yielded a profit of EUR 0.9 million, amounting to 2.0 %. The university’s investment activities have been successful in 2012–2015. In 2011, the return from investment activities was negative.

Share values reflect high growth expectations. Should com-panies fail to fulfil these expectations, the inevitable fluctuation on stock markets resulting from this would also have an impact on the profits from the investment portfolio of the University of Oulu in 2016. Low interest rate levels and the relatively high levels of stock market prices pose a challenge for investments in 2016. Investing in interest rate instruments will be challenging during the current financial period. It will be difficult to find investments that will yield profits, and the normalisation of the monetary policy applied by the Federal Reserve System may cause market disturbances. In terms of economic development, the flow of statistics has not changed much. The expectations of the industry are weak both in the United States and China, but the outlook is positive in service industries. This is partly affected by the strong position of the dollar and yuan, and it is partly an indication of the structural changes in China’s economy. The basic growth of the economy seems stable in the United States as consumer confidence and employment appear to be strong. In Eu-rope, the outlook of the industry and service industries has remained slightly positive.

Although fears of lower growth seem excessive, the investment year 2016 has started in a volatile mood and share prices have de-clined. In January, all stock indexes pointed downward, which was the weakest start to the year in the stock market since 2008. Increas-ing fears of weak global economic growth, China-related risks and reduced prices of raw materials are causes to the weakness.

At the beginning of 2015, shares are moderately overweight in the investment portfolio of the University of Oulu with weight in European shares. Within the property class of shares, asset managers

overemphasised Europe and underemphasised the United States. In terms of interests, high yield bonds are overemphasised and govern-ment bonds are underemphasised.

In 2015, the Board of the University of Oulu decided to spend a maximum of EUR 10 million of its income from investments during 2016–2020 for high-quality recruitments that would pro-mote research and education and comply with the strategy, and for developing learning environments.

The members of the investment committee of the Universi-ty of Oulu are Director Staffan Sevón (Ilmarinen Mutual Pension Insurance Company) responsible for tactical allocations, Man-aging Director Leena Mörttinen (Perheyritysten liitto), Professor Juha-Pekka Kallunki (University of Oulu) and Director of Finance Pirjo Kytösalmi (University of Oulu). The investment committee started operations in the autumn of 2013.

Forecast of future performanceThe ordinary operations deficit budgeted by the University of Oulu for 2016 and the potential savings targeted by the Finnish govern-ment in accordance with the government policy statement force the University of Oulu’s management to continue actions that improve the performance of research and education and increase the amount of competitive supplementary funding. Furthermore, it is necessary to continue actions that increase the efficiency of study processes and shorten the time it takes students to complete their studies. Performance related to publication activities must be improved, and internationalisation must proceed in all areas. Performance in core functions is the key factor when evaluating the level of funding in the coming years. The key indicators are performance in education and research compared to other universities and agreed targets.

In addition to performance, the general economic situation in Finland impacts the basic funding universities receive from the gov-ernment. The development in the funding of the university sector within the next few years depends on the allocation of the expend-iture cuts related to the state economy. If government finances are balanced by savings, it is possible that the level of basic funding will permanently decrease in the coming years. In addition, competition for supplementary funding, students, staff, resources and visibility on a national and international level will further increase.

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Risk managementRisk management is a part of the university’s management system. Risk management is geared toward ensuring that risks that may affect the activities of the university will be identified, assessed, managed and monitored. The risk management system is aimed at enhancing the university’s capacity to carry out its core functions, profile itself in the international higher education sector, implement the chosen strategy and realize the goals defined in it, and protect students, personnel and property from risks and hazards. Risk man-agement ensures continuous operation at a high standard and in a cost-effective manner. To that end, it must also take account of the most important external service providers.

Risks, be they internal or external, may involve research and education activities,¬ decision making, economy, funding, students, personnel, property or interest groups. They may hinder the implementation of strategy, legitimacy of activities or good governance, adherence to good scientific practice, productivity, appropriate management of assets and property, safety and health of students and personnel, as well as the adequacy or reliability of management information.

Strategic, operational and damage risks facing the university can be classified as follows:

Strategic risks: › status of university in the operating environment

(reputation, collaboration relationships, size of age groups, attractiveness)

› dependence on external funding

› level of national infrastructure funding

› changes in student and researcher populations

› changes in funding sources and in financing conditions and criteria

› future funding model of the Ministry of Education and Culture

› state economy and core funding allocated to universities

Operational risks: › performance in education and research compared

to other universities and agreed targets

› dependence on professional competence of personnel

› compensatory recruitment to replace retiring personnel

› risks related to funding

Damage risks: › damage to persons or property

› damage to premises or equipment

Risk management seeks to guarantee that planning, deci-sion-making and management processes are based on sufficient and reliable information. For efficient operation, the board, rector, faculty councils, deans and other unit heads must have access to up-to-date information on risks relating to education and research.

Internal control is an important part of risk management. The Board, the Rector, Deans, the heads of research units, the heads of departments and the heads of the areas of responsibility perform internal control and monitor the operation and risks.

Internal control is an integral part of the university’s manage-ment system, which -promotes the successful performance of core tasks, management of strategic risks and systematic monitoring and evaluation of performance and productivity. In 2015, the University of Oulu’s internal audit was subjected to a competitive bidding pro-cess. Following the competitive bidding process, BDO Oy continues as the internal auditor.

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PersonnelIn 2015, the average number of employees was 2,900 (3,019 in 2014). The total number of person-years was 2,635 (2,751). In 2015, the average number of personnel fell by 119 persons and the number of person-years by 116. Teaching by part-time teachers is included in the number of person-years. This amounted to 80 person-years in 2015.

Number of employees, Number of person-years and Person-years per personel group (source: Sisu reporting system for average number, Personec F for person-years and the number of personnel 31 December)

2011 2012 2013 2014 2015

Number of personnel (avg.) 2980 3112 3092 3019 2900

Number of personnel (total) 31.12. 2983 3154 3014 2945 2863

Number of personnel (p-y) 2790 2885 2762 2751 2635

- teaching and research personnel (p-y) 1588 1641 1554 1657 1629

- other personnel (p-y) 1095 1137 1101 989 901

- teacher training schools (p-y) 107 107 106 106 105

2790 2885 2762 2751 2635

Person-years excluding part-time hourly-instruction

2716 2801 2671 2662 2555

Influenced by the economic situation, retirements, the coop-eration negotiation process in 2014 and termination of fixed-term contracts have had an effect on staff reductions.

In 2015, an organisational reform was carried out across the whole university. Research units were formed in all faculties as their basic organisational structure and in which the teaching and re-search personnel were placed. Separate departments were given up and their research staff were placed in the research units of faculties. The effects of changes in the number of staff in units will be visible in the information for 2016.

According to decisions made by the Board, the operations and personnel of centralised processes have been included under the con-trol of the process management. In connection with the organisation reform, the organisation and personnel of university services were divided under the management of vice rectors, the head of adminis-tration, the chief financial officer and the head of communications. The objective of the change is to develop and improve the efficiency of processes and their service entities.

Compared to the previous year, the number of staff on fixed-term contracts has decreased. Fixed-term staff represented 59.2 % (61.6 % in 2014) of the entire staff. Converting fixed-term positions to permanent positions has continued. Research staff in doctoral training and the post-doc phase is always fixed-term.

A total of 74% (73% in 2014) of the university’s staff work in faculties. The share of teaching and research personnel of the whole personnel was at the same level as the previous year. The intention has been to increase the number of teaching and research staff, espe-cially the number of post-doctoral positions for researchers.

The objective of staff planning in various units has been the development of careers in research (tenure tracks, personal career paths), balancing of tasks at various career phases and the inter-nationalisation of research personnel. This has been made possible by channelling the strategy funding of research. The number of personnel in the 11 phases of a research career has increased from previous years.

In 2015, 60 doctoral training positions based on separate funding were open for application. Positions have been filled and they started as doctoral training positions for four years or two years in 2016. The total number of doctoral training positions is 150. The objective has been that the doctoral training positions are filled as four-year positions and half of the positions are opened for applica-tion every two years. The aim has been to systematically improve the possibilities of the mentoring and career support of doctoral students.

In the university, a total of 223 positions were open for appli-cation in the Saima online recruitment system. Of these, 16 were professorial and tenure track positions. Advertisements for vacan-cies have been published regularly in newspapers and/or indus-try-specific publications as well as in Academic Positions, Euraxess and Linkedin portals. The majority of vacancies were in teaching and research. The number of applicants was about 4,600; more than half of these were from abroad. About 1,500 applicants applied for doctoral training positions.

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Average number of personnel by faculty and change compared to previous year (source: Personec F, including hourly employees)

Personnel according to the faculty

31.12. 2014

31.12. 2015

change (number)

14–15

change% 14–15

share % 2015

Faculty of Humanities 150 153 3 2 % 5 %

Faculty of Education 265 245 -20 -8 % 9 %

Faculty of Science 309 306 -3 -1 % 11 %

Oulu Mining School 25 21 -4 -16 % 1 %

Faculty of Medicine 413 410 -3 -1 % 14 %

Faculty of Biochemistry and Molecular Medicine

119 114 -5 -4 % 4 %

Oulu Business School 104 110 6 6 % 4 %

Faculty of Technology 256 247 -9 -4 % 9 %

Oulu School of Architecture 33 28 -5 -15 % 1 %

Faculty of Information Technology and Electrical Engineering

487 490 3 1 % 17 %

Total faculties 2161 2124 -37 -2 % 74 %

Separate Departments 470 435 -35 -7 % 15 %

University Services 206 187 -19 -9 % 7 %

Service points 119 117 -2 -2 % 4 %

Total 2956 2863 -93 -3 % 100 %

At the turn of the year, the number of international staff was 435, representing 15% of the entire staff. Thus the proportion of international staff has increased slightly (2014: 411 and 14%). A majority of the international staff originate from China, Russia, India, Germany and Pakistan. The staff of the University of Oulu has representatives of more than 69 nationalities.

In 2015, researchers of the University of Oulu made about sixty (60) trips of longer than a month to universities and research institutes abroad. The majority of the trips were made to the United States. In Europe, the most popular destinations were Germany and Spain. Japan was the most visited country in Asia. Compared to the previous year, the number of researcher visits decreased slightly, as in 2014, there were about eighty (80) trips of longer than a month.

In June 2014, the European Commission awarded the Uni-versity of Oulu a significant recognition for developing careers in research. The recognition with the HR Excellence in Research Label means that the human resources policy of the University of Oulu

fulfils all the criteria based on the European Charter for Research-ers. Efforts to develop the working environment of researchers and to increase the appreciation of a career in research have continued according to the plan. In 2016, an internal audit will be conducted on the label and, in about three years, the results of the development work will undergo an external evaluation in accordance with in-structions by the European Commission.

A total of 47.5% of the university staff are women (in 2014/48.3%), with women less well represented among IT staff and service and maintenance staff.

The average age of university staff was 42.8. In 2015, 51 per-sons retired (47 in 2014), of whom two retired on disability pension and four retired on fixed-term disability pension. By 2020, a total of 240 permanent employees will reach the age of 65.

The university has implemented a personnel programme for 2013–2015, which has been prepared in cooperation with the em-ployee organisations of the university. The themes and development activities in this programme are related to staff planning and re-cruiting, management, well-being at the workplace and competence development. The personnel programme will be updated during 2016 on the basis of the new strategy.

The pay rise for 2015 for the 2014–2017 agreement period of the collective agreement for universities took effect on 1 August 2015. The rise was 0.3–0.4% depending on the salary system. Incen-tives for 2014 were paid in the spring of 2015 to about 200 people totalling EUR 360,000.

During 2015, the development of occupational well-being has been continued at the university level and in units based on the action plan for the management of work ability that is updated annually. In the autumn of 2015, a well-being survey was carried out, and based on the results of the survey, the overall well-being in the university has improved in every area being evaluated. The overall average is 3.5 (on a scale of 1 to 5), whereas in the well-being survey carried out in 2013 it was 3.3. “Sense of community in our unit” im-proved the most, and the best average grade was awarded to “Imme-diate superior”.

Development work on induction that was started in 2014 was continued in 2015 in occupational health and safety operations. From the point of view of occupational safety, an induction model for working in machine shops was implemented together with instruc-tions on reporting chemical risks. In addition, the aim has been to strengthen the role of occupational safety personnel as part of devel-oping the occupational health and safety operations in the University of Oulu. The number of accidents involving staff and students was 49,

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which was 20 accidents fewer than in 2014.

The master plan for occupational health care at the University of Oulu was updated in spring 2014. The framework plan’s objec-tives and procedures were specified in more detail in the action plan for 2015. The objectives for the operation of the University of Oulu’s occupational health care have in particular been the early recognition of risks related to the ability to work, the management of work-related stress, supporting personnel and managers in the change process, the management of risks related to chemicals, and the quality of indoor air. As indicators of well-being, the number and percentage of absences due to sickness are monitored as well as absence costs, the costs of occupational health care and the number of work-related accidents. The number of absences due to sickness has fallen and it has affected all indicators in a positive manner. The number of absences due to sickness was 3.9 days/person-year.

The Equality and Diversity Committee continued the im-plementation of the actions of the previous Equality and Diver-sity Plan in units and prepared the new Equality and Diversity Plan which was confirmed by the Rector on 14 December 2015. In addition, a survey on the current status of gender equality at workplace was conducted in accordance with the Act on Equality between Women and Men. This report included detailed informa-tion on proportions of men and women in various positions and a mapping of job grades and salaries of men and women as well as gender pay gaps. Gender pay gaps in the university organisation are minor, and they are mainly based on differences in compe-tence requirements and performance.

The planning of the personnel training offered in a central-ised manner was based on the university’s strategy and personnel programme, the units’ action and financial plans, and develop-ment needs identified during development discussions. In 2015, the training offering focused on leadership and management training, training related to research and teaching tasks, and language training. New opportunities included customer service training and mindfulness training. University pedagogical stud-ies were completed by 30 persons for 25 credits and five persons for 35 credits.

Training events in 2014 resulted in a reduction of about EUR 90,000 in the university’s unemployment insurance contri-bution according to the three-day training agreement. Most of the training hours resulted from trainings targeted at research and teaching tasks and personnel management and trainings that support internationalisation. The personnel training portal was used more efficiently both as a channel for training offering and storing training information.

Indicator Realisation 2014

Realisation 2015

The number of absences due to sickness/person-year 4.1 3.9

Absence due to sickness % The number of absences due to sickness in relation to workdays 1.6 1.6

Costs of absences due to sickness Costs caused by absences due to sickness (when the costs for one day are about EUR 350)

EUR 3.9 million

EUR 3.4 million

Health % Share of persons who have no absences due to sickness 72 74

Accident frequency/ Number of accidents 8/74 7/49

Costs of occupational health care Preventive health care and medical treatment

EUR

1,110,505

EUR

1,135,988

Ratio of costs Kela I/II % 30 / 70 36 / 64

Costs € / person-year EUR 404 EUR 431

(source: IF’s reports on accident frequency and the number of accidents, SAP HR system: the number of absences due to sickness and absence due to sickness %, Terveystalo’s Extranet: Health%, Kela application: costs of occupational health care, ratio of costs and costs €/ person-year)

26—27

University Board and AuditorsDuring the financial period, the Chairman of the University Board was Hans Söderlund, and board members were Risto Murto (Vice Chair), Katja Bargum, Pekka Erkkilä, Juha Vidgrén, Lea Kauppi, Sanna Järvelä, Juha Vaara, Seija Jalagin, Jukka Hiltunen, Jonne Kettunen and Ilari Nisula.

As of the beginning of 2016, the members of the Board are: Risto Murto (Chairman), Liisa Hyssälä (Vice Chair), Katja Bargum, Juha Vidgrén, Pasi Sahlberg, Mari Walls, Sanna Järvelä, Juha Vaara, Seija Jalagin, Jukka Hiltunen, Jonne Kettunen and Pauli Väisänen.

The audit was carried out by PricewaterhouseCoopers Finland with Authorised Public Accountant Tuomas Honkamäki and Char-tered Public Finance Auditor, Registered Accountant Outi Kirvesoja as auditors with principal responsibility.

Proposal of the University Board concerning the result of the financial period The board proposes that the result of the financial period, amounting to EUR 11,871,875.27, be recorded in the balance sheet as unrestrict-ed equity under retained earnings.

At a meeting on 12 February 2013, the board decided to set up a free fund, to which non-earmarked donations will be transferred after approval of the financial statements each year. In 2015, such donations amounted to EUR 440.71. A fund transfer to a free reserve is made as an internal transfer on the balance sheet after the approv-al of the financial statement.

According to the guidelines set by the Ministry, donations allo-cated to the fundraising campaign have been transferred to a stat-utory reserve, and the reserve entry has been made in the group of financial statement transfers in the profit and loss statement before the financial period surplus. Donations allocated to the fundraising campaign are considered reserved for their use purpose, as they can only be used either to support the operation in accordance with sec-tion 2 of the Universities Act or to support a field of education. From the point of view of accounting, the transactions of the reserve do not affect the result. The amount transferred to the statutory reserve is EUR 2,213,898.43.

28—29

30—31

University of Oulu’s finacial statements of 2015

INCOME STATEMENT 1.1.–31.12.2015 1.1.–31.12.2014

ORDINARY OPERATIONS

Income Statement Income from grants 58 392 345,88 62 247 562,68

Income from business activities

9 408 342,86 9 106 299,00

Other income 4 450 570,46 3 952 949,04

Expenses Personnel expenses -146 919 015,78 -151 866 397,22

Depreciations -4 808 056,24 -4 310 569,80

Other expenses -70 079 071,48 -69 890 011,49

Surplus / deficit from ordinary operations

-149 554 884,30 -150 760 167,79

FUNDRAISING

Income Income from fundraising 2 318 858,750 93 724,00

Donations 0,00 2 500,00

Income from business activities of the fundraising

1 163,34 3 198,81

Expenses Expenses from business activities of the fundraising

-553,61 -1 680,62

Other fundraising expenses -105 366,40 -31 522,45

Fundraising total 2 214 102,08 66 219,74

Surplus / deficit from fundraising

-147 340 782,22 -150 693 948,05

INVESTMENT AND FINANCIAL ACTIVITIES

Income Dividend income 1 283 439,36 1 834 136,15

Interest income 77 274,70 236 035,00

Profit on sale of investments 12 423 802,38 6 349 752,73

Other income 369 667,08 245 112,39

Expenses Loss on sale of investments -1 794 148,17 -544 823,71

Other expenses -90 064,74 -100 363,02

Investment and financial activities total 12 269 970,61 8 019 849,54

Surplus / deficit -135 070 811,61 -142 674 098,51

GENERAL GRANTS Government funding as per Universities Act

149 538 941,20 146 741 000,00

RESULT OF THE FINANCIAL YEAR 14 468 129,59 4 066 901,49

APPROPRIATION Adjustment of tied-up funds -2 635 270,36 -341 326,72

Other direct taxes 39 016,04 -43 774,62

NET PROFIT (loss) for financial year 11 871 875,27 3 681 800,15

BALANCE SHEET

Assets 31.12.2015 31.12.2014

FIXED ASSETS

Intangible assets

Intangible rights 421 071,77 462 688,65

Other long-term procurements

1 648 786,19 2 069 857,96 1 901 611,08 2 364 299,73

Tangible assets

Buildings and constructions

38 693,07 26 458,48

Machinery and equipment 11 418 524,24 10 556 087,38

Other tangible assets 26 568,29 26 568,29

Advance payments and incomplete procurements

1 167 169,16 12 650 954,76 626 776,35 11 235 890,50

Investments

Shares in associated companies

55 024 059,19 55 024 059,19 55 179 950,78 55 177 950,78

Assets in tied-up funds 5 066 706,21 4 900 073,31

CURRENT ASSETS

Inventories

Other inventories 7 666 781,79 7 666 781,79 6 534 825,97 6 534 825,97

Receivables

Long-term receivables

Other receivables 253 908,58 253 908,58 0,00 0,00

Current receivables

Sales receivables 15 911 329,85 14 747 295,70

Other receivables 227 395,17 908 383,51

Prepaid expenses and accrued income

3 893 310,46 20 032 035,48 6 355 264,32 22 010 943,53

Securities

Other stocks and holdings 2 518 876,00 4 414 931,00

Other securities 103 795 124,97 106 314 000,97 97 787 873,60 102 202 804,60

Cash and bank 10 019 676,46 9 003 278,56

TOTAL ASSETS 219 097 981,40 213 432 066,98

Liabilities 31.12.2015 31.12.2014

EQUITY

Basic capital 88 518 429,83 88 518 429,83

Market value funds 3 461 352,24 10 767 501,98

Tied-up funds 4 888 419,03 4 467 047,10

Other tied-up funds 2 280 727,69 66 329,26

Unrestricted reserves 2 000 478,66 1 998 129,97

Other equity

Operating equity 35 268 582,32 35 268 582,32

Retained earnings 30 331 421,87 26 897 977,02

Net profit (loss) for financial year

11 871 875,27 77 471 879,46 3 681 800,15 65 848 359,49

Total equity 178 621 286,91 171 665 797,63

OBLIGATORY RESERVES

Other provisions 409 284,42 409 284,42 402 915,79 402 915,79

LIABILITIES

Liabilities in tied-up funds

497,10 497,10 1 300,94 1 300,94

Long-term liabilities

Advances received 5 266 474,30 3 670 286,00

Other liabilities 0,00 5 266 474,30 445 996,12 4 116 282,12

Lyhytaikainen

Advances received 10 434 481,97 9 671 302,32

Accounts payable 4 026 523,37 3 209 756,89

Other liabilities 5 875 403,19 9 228 692,87

Accrued expenses 14 464 030,14 34 800 438,67 15 136 018,42 37 245 770,50

TOTAL EQUITY AND LIABILITIES 219 097 981,40 213 432 066,98

CASH FLOW STATEMENT

OPERATIONAL CASH FLOW 1.1.-31.12.2015 1.1.-31.12.2014

Cash flow from primary operations

Operating deficit -149 554 884 -150 760 168

Depreciation 4 808 056 4 310 570

Change in operating capital

Change in current assets -1 131 956 8 726 459

Change in interest-free receivables 1 724 999 -985 645

Change in interest-free short-term liabilities

-3 351 203 -7 225 259

Adjustment for other items -856 510 1 425 067

Cash flow from primary operations -148 361 498 -144 508 977

Fund raising cash flow 2 214 102 66 220

Extraordinary items (+/-) 0 0

Received subsidies 149 538 941 146 741 000

Direct tax paid 0 0

Cash flow from tied-up funds 2 635 770 341 327

Operational cash flow (A) 6 027 316 2 639 570

CASH FLOW FROM INVESTMENTS

Investments in tangible and intangible assets -6 661 064 -6 525 747

Received investment subsidies 722 695 1 177 782

Capital gains on intangible and tangible assets 9 690 61 969

Placement in investments -10 861 091 -5 908 579

Capital gains from other investments 1 283 439 1 834 136

Other net income from investments

10 909 257 5 949 678

Cash flow from investments (B) -4 597 074 -3 410 760

CASH FLOW FROM FINANCING

Income from financing 77 275 236 035

Interest and other financial expenses 0 0

Cash flow from financing in tied-up funds -487 058 -320 194

Cash flow from financing (C) -409 783 -84 159

Change in liquid assets (A+B+C) increase (+) / decrease (-) 1 020 458 -855 349

Liquid assets at start of fiscal year 9 003 279 9 674 210

Liquid assets at end of fiscal year 10 019 676 9 003 279

1 016 398 -670 932

Cash and cash equivalents in tied-up funds at start of fiscal year 134 368 318 786

Cash and cash equivalents in tied-up funds at end of fiscal year 138 428 134 368

4 060 -184 418

CHANGE IN LIQUID ASSETS 1 020 458 -855 349

Realized outcomes of quantitative targets 2012–2015AVG. 2012–2015 2014 TARGET 2013–2016

Doctoral degrees 152 171 158

Master’s degrees 1319 1245 1545

Bachelor’s degrees 1226 1438 1280

Foreign degree students 820 875 600

Supplementary funding (expenditure-based), M€2013 2014 2015

Supplementary funding 64,0 60,4 56,6

%, total expenditure 27,8 26,7 25,5

National competitive research funding, M€2013 2014 2015

Academy of Finland 19,4 18,5 19,7

Tekes 16,1 14,9 15,8

International competitive research funding, M€2013 2014 2015

Framework programmes of the EU 4,0 4,8 4,6

Other foreign funding 1,6 1,5 1,3

Financial performance measures

2014 2015Operating income / Operating expenses, %

98,2 % 100,0%

Operating profit (without depreciations) / depreciations, %

6,8 % 99,7%

Internal financing of investments, % 4,5 % 71,9%

Equity ratio, % 85,8 % 87,8%

Return on equity, % 2,2 % 13,3%

Quick ratio 4,83% 5,60%

Current ratio 3,75 % 4,15

Cash adequacy, days 175 182

FORMULA FOR CALCULATION OF INDICATORS:

Operating income/ Operating expenses, % = 100 * (Core funding + Subsidies + Operating revenue + Other revenue)/ Operating expenditure

Operating profit/ Depreciations, % = 100 * Operating profit (without depreciations)/ Depreciations

Internal financing of investments, % = 100 * Operating profit (without depreciations)/ Investment acquisition cost

Equity ratio, % = 100 * Total assets/ (Total assets – Advances received)

Return on equity, % = 100 * Profit or loss for the financial year/ Total equity

Quick ratio = Liquid assets/ Current liabilities

Current ratio = (Liquid assets + Inventories)/ Current liabilities

Cash adequacy ratio, days = 365 * Cash and cash equivalents 31.12./ Payments made in the financial period

Distribution of revenue (M€)2014 2015

Core funding 146,7 149,5

Compensation by home municipality to other service provider

5,1 5,4

Other general subsidies

0 0

Supplementary funding

70,2 66,9

TOTAL 222,0 221,8

Distribution of operating expenses (M€)2014 2015

Personnel expenses 151,9 146,9

Depreciations 4,3 4,8

Materials and commodities

9,7 9,9

Purchase of services 14,1 12,8

Rental expenses 28,2 28,1

Travel expenses 6,3 6,6

Other expenses 11,6 12,7

TOTAL 226,1 221,8

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