Annual Report 2017

The Building Information Foundation RTS sr

2 RAKENNUSTIETO | Vuosikertomus 2017

The Building Information Foundation RTS sr

Report Of The Board For The Financial Period 1 Jan–31 Dec 2017

The headquarters of the OP financial group in Vallila, Helsinki (2015), designed by JKMM Architects. Photo by Tuomas Uusiheimo, from the book The Building of Finland.

THE BUILDING INFORMATION FOUNDATION RTS SR | Annual Report 2017 3

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The Building Information Foundation RTS sr was founded in 1972 with the aim of promoting good zoning, construction and property management practices.

The Building Information Foundation RTS sr (herein-after referred to as the foundation) and its wholly and partly owned subsidiaries form a foundation-oriented group referred to as the Building Information group. The Building Information Foundation RTS is the group’s par-ent organisation. It is responsible for strategic manage-ment and community relations. The foundation manag-es the research and development activities of the entire organisation and, through its committee system, content production to promote best practice in zoning, construc-tion and property management. The foundation’s activ-ities include issuing classifications and awarding schol-arships, prizes, subsidies and recognitions. The founda-tion implements its mission with a long-term view for the benefit of the entire industry, continuously investing in development with a service-based approach.

Management The board of the foundation convened eight times during the review period and held one meeting via email. The board contains 12 people. The chairman was Juha Lem-ström and the vice-chairman was Ari Autio. The founda-tion’s director general was Matti Rautiola. The director general is a regulatory member of the board and acts as the chairman of the board of Building Information Ltd (hereinafter referred to as the company). The business of the company was reported as usual to the board of the foundation.

The board is responsible for approving the action plan, financial plan, annual report and financial statements. At the end of the year, 54 background organisations be-longed to the board of representatives and there were 57 designated representatives. The chairman of the board of representatives was Gunnar Åström and the vice-chairs

were Aija Staffans and Harri Tuomaala.

The Building Information Foundation employed 8 people during the reporting year.

Strategy The boards of the foundation and the company hold a joint annual seminar to prepare the strategy. The semi-nar was also attended by representatives of ET-INFOke-skuse AS. This time, the seminar was held on Building Information's premises in October and lasted for one day. The seminar assessed the relevance of the current strate-gy, the future of the operating environment and the need for updates.

The foundation’s strategy complies with the obligations and limits set out in its rules. The company’s strategy was updated. Significant changes in the operating environ-ment that concern Building Information include building classification systems, new growth areas, globalisation, digital economy and the related revenue model, the de-velopment of search services, environmental issues and non-toxic buildings.

R&D activitiesThe majority of the information content for Building In-formation’s services is created by voluntary committees consisting of experts. In the review year, there were 56 committees – including the main committees – with a total of 600 members. The RYL series has required the greatest investment. Refurbishment RYL “Facades” and Infrastructure RYL “Surface Structures” were published in the review year. Significant progress has been made on the work to modernise the contents of Infrastructure RYL “Soil, base and rock structures” and Technical Sys-tems RYL, and work began to update Estate RYL.

Committee chairmen are paid a meeting fee of EUR 60, while members receive EUR 40. Parking expenses are re-imbursed and travel expenses are paid against a valid re-ceipt for people arriving from other localities. Commit-tee members are given access to a free copy of an online product in their area of expertise for the duration of their membership. Related parties are also involved in com-mittee work. Related party committee members are paid a meeting fee and compensation for expenses under the same principles as committee members who are not re-lated parties.

4 THE BUILDING INFORMATION FOUNDATION RTS sr | Annual Report 2017

The foundation is a partner in R&D projects. A cautious approach was taken to new R&D projects, but more pro-jects were initiated than in previous years. The most significant projects were related to urban policies and housing, the development of city modelling, infrastruc-ture modelling, environmental classification of buildings and the development of building classification systems. The KIRA-digi project, which is in line with a key pro-ject of the Finnish Government, continued successfully. Its operational office was located within the foundation's organisation.

ClassificationThe foundation’s indoor climate classification work was actively continued. Almost 4,300 construction materi-al products, ventilation products and items of furniture were classified at the end of the year.

The RTS environmental classification, which takes ac-count of the environmental perspectives of construction projects, was launched in 2017, and there were 30 active projects on the system at the end of the year under re-view. At the end of the year, work was initiated to devel-op the criteria for RTS environmental classification with the aim of taking the amended national regulations and guidelines into consideration. The suitability of the tool for the infrastructure sector is being assessed.

Public relationsIn order to promote its community relations, the foun-dation and its representatives were involved in several Finnish and international collaboration schemes, or-ganisations and projects in the course of the year. The popularity of building forums – public discussion events arranged by the foundation – continued to grow. Build-ing forums are open to all participants and are free of charge.

Scholarships, awards, recognitions, support and benefitsThe foundation granted golden badges of honour, award-ed the Building Information ga prize, the RAKEVA prize and scholarships.

In 2017, Building Information's ga prize – EUR 2,000

– was awarded to Tarmo Pipatti, managing director of the Confederation of Finnish Construction Industries (CFCI), in recognition of his open-minded approach to promoting collaboration, both within the real estate and construction sector and between various entities in the sector and in society. Thanks to his extensive network, superlative interaction skills and cross-disciplinary in-sight, he has been able to leverage significant societal in-fluence.

The 2017 RAKEVA prize was awarded to Professor Yr-jänä Haahtela of the Haahtela companies in recognition of his long career as a researcher and the numerous, widely used project and real estate management meth-ods that he has created. In addition, he has developed tools for use in the construction and real estate sector.

The board of Building Information Foundation RTS grants scholarships for Master’s theses or theses by stu-dents of universities of applied sciences covering various areas of building. The scholarships are also intended for students in the fields of productisation, service business, e-business and IT. There were 19 scholarship applica-tions in 2017, and the board decided to grant scholar-ships worth EUR 7,000 to the following:

> Herman Mitish, Tampere University of Technology, Architecture

> Ella Lahtinen, Tampere University of Technology, Civil Engineering

> Sonja Turunen & Heikki Huttunen, South-East-ern Finland University of Applied Sciences, Social Sciences & Design

To the best of the board’s knowledge, none of the prize winners or scholarship recipients belonged to the foun-dation’s limited group of related parties.

The foundation's major project, a book entitled “The Building of Finland” in honour of the centenary of Fin-land's independence, was completed in autumn 2017. In addition to the foundation's involvement, the project re-ceived support and contributions from several other en-tities in the sector. The Building Information Foundation has a publication agreement with Finnish Construction Managers and Engineers RKL for the Builders’ Yearbook, which is published by Building Information Ltd. Build-ing Information Ltd operates as a retailer of the Raken-nustaito magazine published by RKL and it receives two free pages of advertising space in every issue.

The members of Building Information’s boards and the company’s personnel receive a discount of 40 per cent on Building Information Ltd’s own products. People belong-

THE BUILDING INFORMATION FOUNDATION RTS sr | Annual Report 2017 5

ing to the foundation’s limited group of related parties have been able to make purchases from Building Infor-mation Ltd’s shop and product selections. Information on purchases by related parties is not actively collected. Board members are entitled to a free licence to access an online product of their choosing for the duration of their board membership. The average value of such a licence is EUR 1,000 per year. Members of the company’s board and the chairman of the foundation’s board also receive free copies of books published by Building Information Ltd. A total of 37 new books were published in 2017, and the market value of the free copies received totalled EUR 1,952 per recipient. Other related parties were offered Building Information group’s products at normal prices.

Property The foundation group includes Building Information Ltd (wholly owned by RTS); a majority interest in ET-IN-FOkeskuse AS (with RTS holding 69.2 per cent); and a majority interest in St. Petersburg Construction Centre Ltd, owned jointly by RTS and Building Information Ltd (RTS holding 42 per cent and Building Information Ltd 42 per cent). The previously established companies, Mos-cow Construction Centre Ltd (RTS 41 per cent, PCC 10 per cent), Latvia Building Centre Ltd (RTS 60 per cent) and Suomen Määrälaskenta Oy, are not currently active. The foundation is a shareholder of Haahtela-kehitys Oy (RTS 2.5 per cent) and FISE Oy (7.4 per cent). Addition-ally, the foundation is a founding member of the FINEDU Foundation (Rakennus-, kiinteistö- ja ympäristöalan Venäjä-koulutus- ja kehittämisyhteistyön tukisäätiö) and a founding member of the Bryggman Foundation.

On 31 December 2017, the foundation recognised a write-down in the value of invested companies' shares on the balance sheet in an amount of EUR 63,586.41. The write-down is due to the uncertainties connected with the companies' activities. The write-down was treated as a non-recurring item and it will not affect cash flow.

The foundation’s equity investments in subsidiaries to-talled EUR 325,936.22 on 31 December 2017, while in-vestments in other equities amounted to EUR 263,065.64 and investments in artwork amounted to EUR 16,904.

The content produced by the committees is owned by the foundation or, in a few cases, jointly owned by the foun-dation with a partner. Building Information Ltd pays for the content it uses in accordance with the relevant agree-ment.

The foundation’s liquid assets are in bank accounts and investment funds in accordance with an asset manage-ment plan. During the reporting year, a decision was made to transfer a minor share of the assets from bank accounts to funds.

The foundation has a small amount of art, which has been listed and valued.

FinancesThe foundation’s finances depend on the company’s turn-over and related licence fees. As the company’s turnover increased, the foundation’s turnover grew slightly. The constant expansion of the classification operations un-derpins the foundation's finances.

The foundation makes an annual agreement to purchase finance and administration services from the compa-ny and to rent its offices from the company. In 2017, a total of EUR 107,964 was paid to the company to pur-chase services and lease premises. The subsidiaries did not purchase goods or services from the foundation dur-ing the period under review. The foundation has no loan arrangements, guarantees or other commitments with companies belonging to the group. The foundation has not collected a dividend from the company.

The foundation has no loan arrangements or other com-mitments to or agreements with individual related par-ties or companies owned by them other than the afore-mentioned.

Members of the boards of the foundation and the com-pany have been paid a reasonable fee for attending meet-ings and the chairman of the foundation’s board receives an annual emolument. The director general has been paid a monthly salary based on an overall sum of remu-neration. In total, EUR 172,770 was paid in salaries and fees to the members of the boards of the foundation and the company, the director general and the auditors. This sum includes the meeting fees paid to the director gen-eral, who acts as the chairman of the company’s board. The auditors were paid in accordance with their invoice.

To clarify the related party activities carried out in 2017, the foundation has enquired whether the members of its board, the director general, the members of the compa-ny’s board and the company's managing directors are aware of any related party activities within the founda-tion group, and it has declared that there are no other related party transactions.

6 THE BUILDING INFORMATION FOUNDATION RTS sr | Annual Report 2017

Most significant risks and uncertaintiesThe most significant risks and uncertainties affecting the foundation's activities are connected with selecting stra-tegic development targets, resourcing and implementa-tion. The foundation must be able to address forthcom-ing challenges in its research and development activities and ensure sufficient expertise and resources. The foun-dation's activities are also affected by the development of Building Information Ltd's business and the related financial risks.

Helsinki, 18 April 2018

THE BUILDING INFORMATION FOUNDATION RTS SR

Juha Lemström, Chairman

Ari Autio, Vice-chairman

Markku Hedman

Paula Huotelin

Anne Jarva

Kim Kaskiaro

Mari Matomäki

Jari Mäkimattila

Pauno Narjus

Matti Pentti

Mikko Somersalmi

Harri Tanska

THE BUILDING INFORMATION FOUNDATION RTS sr | Annual Report 2017 7

THE BUILDING INFORMATION FOUNDATION RTS SR, BUSINESS ID 0201937-0

BALANCE SHEET

ASSETS 31/12/2017 31/12/2016

FIXED ASSETSIntangible assets

Computer software 625,08 966,12Renovations 9 677,44 12 378,12

Total intangible assets 10 302,52 13 344,24Tangible assets

Machinery and equipment 8 151,06 11 964,16Total tangible assets 8 151,06 11 964,16Investments

Shares and holdings 263 065,64 326 652,05Shares in group companies 325 936,22 325 936,22Works of art 16 900,00 16 900,00

Total investments 605 901,86 669 488,27

CURRENT ASSETSShort-term receivables

Accounts receivable 272 497,30 88 112,35Receivables from group companies 135 041,15 73,591,92Pre-payments and accrued income 15 578,42 81,78Total short-term receivables 423 116,87 161,786,05

Financial securitiesFinancial securities 361 574,52 209 490,29

Total financial securities 361 574,52 209,490,29

Cash and bank deposits 191,699,69 425,725,08 TOTAL ASSETS 1 600 746,52 1 491 798,09

LIABILITIES AND SHAREHOLDERS’ EQUITY 31/12/2017 31/12/2016

CAPITAL AND RESERVESBasic capital 8 409,40 8 409,40Other funds

Contingency reserve 1 220 953,22 1 284 558,44Contingency fund for profile publications 9,000,00 10,000,00Reima Pietilä Fund 9 818,79 9 818,79

Total other funds 1 239 772,01 1 304 377,23

Total capital and reserves 1 248 181,41 1 312 786,63

LIABILITIESCurrent liabilities

Accounts payable 32 055,64 22 078,90Liabilities to group companies 11 672,25 4 687,05Other liabilities 86 767,40 28 175,55Accruals and deferred income 222 069,82 124 069,96

Total current liabilities 352 565,11 179 011,46 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 1 600 746,52 1 491 798,09

PROFIT AND LOSS ACCOUNT

1/1-31/12/2017 1/1-31/12/2016

Ordinary operationsR&D activities

Income 706 074,28 461 381,05Administrative expenses

Personnel expenses -653,146,74 -509 472,42Depreciation -8 149,03 -8 936,16Other expenses -624 997,75 -429 456,38 -1 286 293,52 -947 864,96

Surplus/trading deficit -580 219,24 -486 483,91

Fund-raisingIncome 595 081,99 579 044,21Surplus/trading deficit 595 081,99 579 044,21

Investment and financing activitiesIncome 12 046,23 28 142,00Expenses -67 514,20 -4 536,58

Surplus/trading deficit -55 467,97 23 605,42

Transfers to funds 40 605,22 -116 165,72

Surplus for the period 0,00 0,00

8 RAKENNUSTIETO | Vuosikertomus 2017

The Building Information Foundation RTS srrts@rakennustieto.fi

Building Information Ltd.rakennustieto@rakennustieto.fi

Malminkatu 16 A, 00100 Helsinki, FinlandTel. +358 207 476 400 www.rakennustieto.fi

Verstas Arkkitehdit won an architectural competition for the extension of the Lapland Central Hospital in 2015. Photo by Verstas Arkkitehdit, from the book The Building of Finland.