2013-03-15 10:59:39 CET
2013-03-15 11:00:52 CET
REGULATED INFORMATION
Finnvera Oyj - Annual report/ annual accounts
Financial Statements of the Finnvera Group 1 January–31 December 2012
Growing and internationalising enterprises the core of the strategy
Early in 2012, Finnvera's operations underwent an external and independent
international evaluation. In the main, the company's operations received
excellent marks in the evaluation, especially when compared to corresponding
organisations abroad. The evaluation also provided good material for developing
Finnvera's operations.
Finnvera's revised strategy reflects the conclusions of the evaluation, as well
as the issues recorded for Finnvera in the Government Programme. A central
feature of the strategy is the increasingly strong support that Finnvera's
operations give to the industrial policy of the Government of Finland, where
growing and internationalising enterprises are a core element.
Business operations and financial trend
The amount of export credit guarantees and special guarantees offered rose by
41 per cent on the previous year, to EUR 5,351 million. Demand for export
credits was also brisk. In SME financing, the amount of credits and domestic
guarantees shrank by 13 per cent, to EUR 853 million. The amount of direct
equity investments increased on the previous year.
The Finnvera Group's profit for the year 2012 was EUR 53 million, or 11 per
cent less than the year before. The main reasons underlying the decline in
profit were higher credit risks in Finnvera plc's SME financing and the
consequent write-downs and provisions for losses, and the decrease in profits
for items carried at fair value.
Export financing accounted for EUR 62 million of the parent company's profit of
EUR 56 million, while SME financing accounted for EUR -6 million. The
subsidiaries and associated companies had an impact of EUR -3 million on the
Group's profit.
The Group's profit for October-December was EUR 23 million, or more than double
the profit for the third quarter, EUR 11 million. The profit for the fourth
quarter accounted for over 40 per cent of the profit for the whole year. During
the fourth quarter, the impairment losses on receivables and guarantee losses
were clearly smaller than during the previous quarter.
-- At the end of December, the Finnvera Group's capital adequacy ratio was
15.9 per cent, or 0.4 percentage points better than a year ago.
-- The Group's cost-to-income ratio improved by 1.6 percentage points on the
previous year and was 27.6 per cent.
-- The Group's equity ratio declined by 4.4 percentage points and stood at
20.3 per cent at the end of December.
Finnvera Q4/201 Q3/201 Q2/201 Q1/201 Q4/201 Change 2012 2011 Change
Group 2 2 2 2 1 % MEUR MEUR %
MEUR MEUR MEUR MEUR MEUR
Net interest 17 15 15 16 16 5 63 63 0
income
Fee and 29 27 30 26 25 18 112 95 17
commission
income and
expenses
(net)
Gains/losses 5,2 -0,3 -4,0 1,3 -1,2 542 2 6 -64
from items
carried at
fair value
Administrati -12 -9 -11 -11 -12 4 -43 -42 2
ve expenses
Impairment -13 -22 -33 -8 -12 9 -75 -55 36
losses,
guarantee
losses
- Loans and -25 -39 -37 -14 -23 12 -115 -84 37
domestic
guarantees
- Credit 14 19 10 7 11 28 50 32 56
loss
compensatio
n from the
State
- Export -1 -1 -6 -2 0 1620 -10 -4 178
credit
guarantees
and special
guarantees
Operating 25 11 -4 23 15 60 54 62 -13
profit
Profit for 23 11 -4 23 15 52 53 60 -11
the period
Future prospects and impending risks
Economic growth is expected to be slow in Finland this year. Sluggish growth
and banks' possibly even stricter criteria for lending may make the financial
position of companies, in particular SMEs, more difficult. This may increase
the demand for Finnvera's services. On the other hand, the continued low level
of investments will reduce the need for financing. Credit risks will remain
high. Demand for export financing varies depending on individual major capital
goods transactions. In the short term, losses arising from Finnvera's
outstanding export credit guarantees are estimated to be low, but because of
risk concentrations, the situation may change rapidly.
The uncertainty factors associated with economic trends make it more difficult
to predict Finnvera's financial performance. According to the current estimate,
the Finnvera Group's financial performance for 2013 is likely to remain at the
same level as in 2012. If materialised, individual risks may weaken the result
considerably.
CEO Pauli Heikkilä:
The year 2012 was characterised by continued volatility in the world economy,
which is why the uncertain economic trend persisted throughout the year.
In Finnvera's view, the situation on the corporate finance market in Finland,
as in the other Nordic countries, is better and more stable than in Southern
and Central Europe. However, the measures already decided for regulating the
operations of banks, and the issues still under discussion, had an impact on
the availability of financing. Banks have the need to manage their balance
sheets, which is why the arrangement of credits, especially new, large and
long-term ones, became more cumbersome. For SMEs, in many cases this meant more
expensive debt financing and more stringent requirements for collateral.
The operating environment is challenging for companies because of intense
competition. It is likely that the unstable economic situation, particularly in
the euro area, will continue. This may further delay the investment decisions
of both domestic enterprises and their customers abroad.
Additional information:
Pauli Heikkilä, Chief Executive Officer, tel. +358 29 460 2400
Ulla Hagman, Senior Vice President, Finances and IT, tel. +358 29 460 2458
Finnvera publishes its Annual Report for 2012 as an electronic document on the
company's website. The Annual Report also includes the Corporate Responsibility
Report.
Read the Annual Report: http://annualreport2012.finnvera.fi/en/
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