2015 was the 19th year of operations for JAMK University of Applied Sciences. 

Overall, 2015 went according to expectations. The most significant deviation occurred in RDI activities, which started more slowly than expected in the new funding period, even though quite a few positive funding decisions were received.

JAMK retained its good operating capacity by deciding not to cut its personnel significantly during the change of the RDI funding period. The purpose of this is to ensure that the organisation retains its competence, and RDI operations can be conducted strongly in the new funding period. The Jyväskylä region offered a positively challenging operating environment with several significant development projects: the Äänekoski bioproduct mill, new hospital, Hippos and development of the Kangas area. JAMK has taken part in these with a multidisciplinary approach, offering its competence in line with its mission: Turning expertise into competitiveness. The influence of these development projects will be highly visible in future, both in the Jyväskylä region and in JAMK’s operations.

The factors with the most significant effect on the negative result were the cut in the Ministry of Education and Culture’s funding, the termination fee of the long-term rental agreement for the Puistokatu building as well as the costs of the music department’s trial. The operational activities were only slightly negative and lower than expected. All of the personnel have shown good judgement and self-control in this.

While this year’s result is expected to be negative, the target for 2017 is clearly positive. By then, the rationalisation of costs is expected to have taken place and the turnover to have increased.

The company’s profit development strongly reflects the Ministry of Education and Culture’s cut in study places, which took place in 2012, and the cuts in the funding of universities of applied sciences. Funding by the ministry reduced by approx. €2.1 million. The external funding of RDI activities also dropped more steeply than expected. 

In addition to the reduction in funding, the finances were undermined by the €2.46 million termination fee of the long-term rental agreement for the building at Puistokatu 35 as well as the costs relating to redundancies in the music department, €0.5 million. The combined net effect of these on the result was approx. €3.0 million. In addition, as a result of the delay in the termination of the Puistokatu rental agreement, the rental expenses were approx. €0.5 million higher than what was expected. The result was improved by the cancellation of an operating provision of approx. €2.2 million.

The value-added tax processing of universities of applied sciences has changed: from the beginning of 2014, only rental expenses were VAT-deductible, and in 2015, all expenses including VAT became deductible. Due to this, the figures from different years are not directly comparable in full.

Jyväskylän Turbiini Oy, which is part of the Group, sold the Turbiini building in late September.

Jyväskylän Turbiini Oy established the fund company JAMK Turbiini-Rahasto Oy, which it owns in full, with the goal of supporting start-up companies rooted in institutes of higher education.


Degree programmes in JAMK University of Applied Sciences produced 1,108 bachelor’s degrees in 2015 (1,121 in 2014) as well as 198 master’s degrees (164 in 2014). The number of ECTS credits completed in the Open University of Applied Sciences was 11,766 (7,206 in 2014).

The number of students at the Teacher Education College during the financial year was 819, and vocational teaching qualifications were achieved by 431 people.

The funding of the education reduced by approx. €2.1 million from the previous year. At the same time, the finances were undermined by the delay in the termination of a long-term rental agreement as well as the termination fee incurred. In spite of the rationalisation and cost-saving measures, the cost structure of the education must be further developed. 

Research and development activities

Due to a changed funding period, the volume of research and development (RDI) activities dropped very low, to €6.9 million (approx. €9.1 million in 2014). External funding amounted to €2.5 million (€6.1 million in 2014). However, RDI activities are on the rise again, and JAMK received several positive funding decisions for RDI activities in the latter part of the year. The RDI portfolio grew to €26.6 million by the end of the year. The volume of RDI activities fell significantly below the planned level, the key reason for this being the delay of the funding decisions from what was expected.

In addition to this, JAMK carried out education and RDI development projects funded by the Ministry of Education and Culture totalling €1.5 million, which shows in the appropriation income. A special feature was the diploma education pilot, which ended in early 2016.

The RDI activities highlighted JAMK’s focus areas. In future, RDI activities will be strengthened in the strong areas determined by the new strategy, which are education and business competence, bioeconomy, cybersecurity, rehabilitation as well as automation and robotics.

Other activities

The turnover for services totalled approx. €4.3 million. Despite the recession and cuts in the funding of public organisations, the volume of the services remained high, which is an indication of JAMK’s competitiveness among working-life organisations.

JAMK has focused its services on competence areas where the competence is based on the public educational mission. This way, the services particularly strengthen the quality of the education and keep it relevant and up-to-date in terms of the working life.


The average number of personnel at JAMK University of Applied Sciences during the past financial year was 596 (639 in 2014). The average number of personnel decreased by 43, and the staff expenses dropped by €0.2 million. The staff expenses included €0.2 million of costs relating to redundancies in the music department. 

Significant events after the end of the financial year

The operations have continued as planned after the end of the financial year.


 The Ministry of Education and Culture’s cuts in funding have the strongest effects in 2015 and 2016. After this, positive development can be expected, provided that JAMK retains its position in relation to other universities of applied sciences and that the ministry will no longer reduce the funding of universities of applied sciences.

The volume of RDI activities has started increasing again and is expected to grow within the next few years. The turnover development of the services has remained good, and the performance will now also need to be improved in addition to growing the sales.


The key risks are the Parliament’s education funding decisions affecting the funding of institutes of higher education. From the perspective of financing indicators, this also has to do with how well JAMK retains its position in relation to other universities of applied sciences. The Ministry of Education and Culture’s financing indicators will change at the beginning of 2017, but this is currently not expected to weaken JAMK’s financial position.

As regards the facilities, the challenge has been the management of indoor air quality issues, but the ongoing renovations are expected to improve the situation significantly.


The environmental legislation and its changes do not require any particular measures as regards the company’s business, but taking account of environmental issues may have significance for the company’s image. JAMK University of Applied Sciences has been actively involved in bioeconomy RDI and education activities and in the Finnish Innovation Fund Sitra’s project Resource-Wise Jyväskylä. JAMK has the Green Office certificate.

Administration and organisation

The Board of Directors of the parent company assembled 11 times during the year of operation. The most essential decisions included regular matters concerning the budget and financial statements as well as the performance agreement proposals.

Rector Jussi Halttunen served as the president, Vice Rector Heikki Malinen as the president’s deputy, BDO Oy as the auditor and Jarmo Lohi (Chartered Accountant, Chartered Public Finance Auditor) as the principal auditor.

Management team

Chair    Jussi Halttunen, Rector
  Heikki Malinen, Vice Rector
  Mikko R. Salminen, Director of Administration
  Pekka Jääskö, Business Director, JAMK Generator
  Pertti Malkki, Director, School of Health and Social Studies
  Pasi Raiskinmäki, Director of Unit, School of Technology
  Pekka Risku, Director of Unit, School of Technology
  Asta Wahlgrén, Director of Unit, School of Business and Services
Staff representative Esa Salmikangas, Senior Lecturer
Secretary Heli Toivola, Marketing Manager

Board members

Board members of JAMK University of Applied Sciences Ltd. 1 January – 31 December 2015.

Aila Paloniemi, Chair

Ahola Lotta                           Halttunen Simo 
Kurkela Jouni       Molander Olli 
Nojonen Mirja     Partanen Pauli
Pirttiaho Tuuli-Kirsikka  Valkeinen Uljas

and Eino Leisimo as controller for the City of Jyväskylä.

Mikko R. Salminen, Director of Administration, served as the Board’s secretary. 

The Annual General Meeting was held on 11 May 2015.

The JAMK University of Applied Sciences Group is a subgroup of the Jyväskylä City Corporation. The domicile of the City Corporation is the City of Jyväskylä.

A copy of the consolidated financial statements is available at: City of Jyväskylä, Talouskeskus public utility, Heikinkatu 3 B, FI-40100 Jyväskylä.

Company shares

The parent company has 160 shares of the same type, with a nominal value of €168.19 each.

Board of director's proposal to the annual general meeting 

The Board of Directors proposes to the Annual General Meeting that the financial statements be approved and that the parent company’s loss for the financial year €2,167,707.18, be left in the profit account.

  2015 2014 2013 2015 2014 2013
Turnover 52 506 906 58 061 833 60 942 311 52 541 225 58 082 865 60 983 859
Operating profit -4 400 109 26 634 1 543 357 -4 336 789 339 184 1 858 998
Operating profit, % of turnover -8,4 0,0 2,5 -8,3 0,6 3,0
Salaries and remuneration 30 067 490 30 288 783 30 230 329 30 067 490 30 288 783 30 230 329
Salaries and remuneration, % of turnover 57,3 52,2 49,6 57,2 52,1 49,6
Number of employees 596 639 649 596 639 649
Rents 9 823 802 8 032 136 8 025 705 9 821 423 8 038 698 8 056 757
Rents, % of turnover 18,7 13,8 13,2 18,7 13,8 13,2
Advance rents, long-term 11 496 385 12 353 812 13 092 851 11 496 385 12 353 812 13 092 851
Equity ratio (%) 83,8 84,9 85,3 82,4 77,1 77,4
Return on equity (%)  -14,7 0,1 5,2 -16,8 1,4 7,7
Sijoitetun pääoman tuotto (%) -14,8 0,1 5,2 -16,7 1,3 7,6
Quick ratio 4,2 4,2 4,1 3,5 3,7 3,3