Mint of Finland Group’s Annual Report 2014 ■■Mint of Finland Group is a responsible partner. Mint of Finland Annual Report 2014 Mint of Finland Group in brief Net revenues by market area

Contents €5m 2014 On the path of Finland 5 2013 The Annual Report consists of two parts. development €27m This part, the report proper, mainly covers Other EU countries 61 operations in Finland and Germany, while Mint of Finland has developed its operations the financial statements present the finan- radically in the past year. The objective of this Non-EU €44m cial performance of the entire Group. development is to ensure the Group’s com- countries 31 petitiveness and growth potential also in the future. Mint of Finland Group in brief The global circulation coin market was qui- Personnel by country 2 On the path of development et in early 2014, but revived towards the end of the year, which was reflected in Mint of Fin- 100 CEO’s report Share of export Germany land’s order book. We sought to improve ef- in net revenue 115 4 On the right path ficiency and achieve cost savings through a 61 Operating environment number of measures over the course of the Finland 65 6 Trust in cash year, and Mint of Finland can now proudly state that its circulation coin, blank and col- 42 Sales lector item business areas rest on the strong- Spain 90% 31 8 New sales horizon est foundation in a long time. 95% The need for cash is not disappearing – in 9 Finances the euro zone, for example, it is still the most Norway 10 Financial responsibility 10 common means of payment. In unstable provides security for the future times, the importance of reliability is empha- Personnel sised and reliance on cash increases. Various 12 A year of teamwork disruptions in telecommunications networks have also reminded us of the importance of Production cash. 14 Efficiency and cost savings Awareness of Mint of Finland has grown as expected, and the Group’s clientele has ex- Collector coins panded in regions such as Asia, Africa and 18 Celebrating with coins The Group’s €76.2m −€2.6m −3.4% Latin America. We have identified new poten- €97.3m, 2013 −€6.4m, 2013 –6.6%, 2013 Governance principles tial in the domestic collector coin market, and key indicators and corporate governance the work to realise this has begun. 20 Strongly Finnish Corporate social responsibility will be a strong element in Mint of Finland’s opera- Net revenues Operating profit Operating profit tions also in the future. Being proactive and as share of revenue 22 Group’s Board of Directors influencing things send a positive message to customers and build trust in the future. 23 Members of the Group Executive Committee 26 The Board of Directors’ −7.1% −3.5% 47.6% 73.4% rules of procedure –15.3%, 2013 –7.6%, 2013 50.6%, 2013 58.1%, 2013 30 Content comparison with the corporate responsibility reporting model for unlisted state-owned Return on equity Return on Equity ratio Net gearing companies capital invested

2 Mint of Finland Annual Report 2014 CEO’s report On the right path

Customers have noticed ●●CEO Paul Gustafsson. the changes in our operating methods and liked them. Practically all of our customers would recommend As a whole, the past year was Orders until 2017 operations. Major organisational changes have a good one for Mint of Finland Demand for circulation coins remained quiet in been made in Halsbrücke, moving the plant’s Mint of Finland to Group. We posted a loss, but the early 2014 and few tenders were invited, but Mint corporate culture into a more open direction. of Finland took its share from the little on offer. The two factories’ erp systems* will be merged others procuring year was fruitful in terms of the The quiet markets silenced Mint of Finland’s fac- finally in the summer of 2015. corresponding products. development of operations. The past tory for a few months, until production was once The blank factory posted a good result for year holds promise for the future. again started as a result of contracts won in the 2014. Jarmo Hakkarainen will continue as Man- spring. Since July, the factory has been running aging Director of the factory, in close coopera- vides an opportunity to create business that will Mint of Finland Group had a solid operating mar- several projects simultaneously. tion with Plant Manager Dirk Höhne and Busi- even out times of poor demand caused by busi- gin and positive cash flow, even though we did In spite of the lay-offs, the atmosphere at work ness Controller Tobias Bading. Höhne and ness cycles. not make a profit. The loss we posted in 2014 was has turned for the better. Our internal survey in- Bading are both members of the Group Execu- nevertheless considerably smaller than in 2013. dicated that employees feel that, despite its trou- tive Committee. Responsibility in all actions In 2015, Mint of Finland has set its sights on a bles, Mint of Finland is going in the right direction. The unhealthy competition in the circulation positive result. The number of advance orders Our collector’s product sales exceeded targets, Development of CoinTune continues coin market has chafed at the industry for a long received for 2015 makes achieving this objective which is a source of great satisfaction. At the beginning of 2014, Mint of Finland time. It also has a negative impact on the de- seem highly likely. Selling collector coins remains challenging, and a customer jointly piloted two-euro coins velopment of the whole sector. For this reason, The restructuring we carried out in order to but the groundwork done by Sales has succeed- equipped with the CoinTune feature. CoinTune we have emphatically stated our opinions on the crystallise our business model was a success, and ed in considerably expanding our customer base. is a safety feature that ensures the authenticity need to restore the health of the industry. our circulation coins, blanks and collector’s prod- Two much-anticipated collector coins will be of coins and makes forgery more difficult. In the Mint of Finland has been working to im- ucts will all be sold from Finland from now on. launched in 2015: Jean Sibelius and Finnish sisu. pilot, the functionality of the CoinTune feature prove responsibility for some years now. We Material acquisitions have also been concentrat- The Group’s prospects took a positive turn in was also successfully tested with the authenti- will adopt the iso 26000 standard one section ed in Finland. early autumn. Mint of Finland won several circu- cation devices generally used by central banks. at a time, with human rights being addressed Our hard work is reflected in the results of lation coin contracts with tenders submitted in CoinTune will provide a significant improve- in 2015. Human rights are an important issue the customer satisfaction survey. Customers the spring. These orders will already be felt in the ment to the safety of coins. The system is al- to the Group due to its subcontracting chains. have noticed the changes in our operating meth- production of 2015. As a new positive develop- so the greatest breakthrough made in the coin Naturally, we must also see the human rights is- ods and liked them. Practically all of our cus- ment, Mint of Finland signed several multi-year market for decades. The innovation is a massive sues closer to home, in Finland. tomers would recommend Mint of Finland to contracts in 2014. We now have orders in our one, marking a leap from analog to digital iden- The past year had its challenges, but our em- others procuring corresponding products. The books until 2017. Established supplier relation- tification technology. ployees’ belief in the company has strength- good results of the survey were anticipated, but ships benefit the supplier and customer both. The commercialisation of CoinTune will al- ened. The situation looks bright. Mint of Fin- we were still surprised by such an enormous de- The factory in Vantaa and blank production in so make it a financially significant innovation to land Group is on the right path. The need for gree of satisfaction. Halsbrücke continued the harmonisation of their Mint of Finland. For Mint of Finland, this pro- cash will not go anywhere.

4 Mint of Finland Annual Report 2014 * Enterprise Resource Planning systems CEO’s report 5 Operating environment ■■In the euro zone, cash is the most common official form of The excitement payment, and the cheapest and fastest one for small purchases. Trust in surrounding the alternative cash system has caused dramatic surges in the alternative currency’s value.

Increased political instability livery fees, thus promoting the ease and safety of nor is their operation supervised. Even though munications networks reminded us of the utility and disruptions to electricity transactions. such systems have received extensive media cov- of cash. The Bank of Finland also stated that the and communications erage, it should be remembered that they are still euro system holds enough cash to meet sudden Legal tender is subject to common used by a very small group of customers. The ex- spikes in demand. networks have reminded us agreements and supervision citement surrounding this alternative system has We cannot and do not want to return to a pure of the reliability of cash. Legal tender is provided for in legislation, and caused dramatic surges in the alternative curren- cash economy, but cash remains a good crutch to central banks have been charged with the safe- cy’s value. help citizens through any disruptions or excep- Cash payments will retain their position along- guarding of its value – price stability – along In unstable times, the importance of reliabil- tional circumstances. Safeguarding the continu- side card payments and other forms of electronic with responsibility for the reliability, security and ity is emphasised and reliance on cash increases. ous operation of the cash dispenser network is of transactions. The availability of cash and banking efficiency of the payments system. particular importance. services is an essential part of a functional finan- Payment systems, such as Bitcoin, have re- Cash can help you through For as long as there are places without elec- cial system. Central banks and states supply offi- ceived attention in recent times. The operating exceptional circumstances tronic payment terminals, people will need cial tender as a wholesale service and without de- principles of such systems have not been verified, Last year, disruptions in the electricity and com- cash.

6 Mint of Finland Annual Report 2014 Operating environment 7 Sales At sales, we now have a Towards the ISO New sales horizon better understanding of 26000 CSR standard the challenges faced by the The ISO 26000 standard  presents an international conception of corpo- production department rate social responsibility and defines the CSR issues that organisations – this improvement in should address. The standard consists of the key principles and core subjects cooperation has been of corporate social responsibility. An- other concept central to the standard realised as cost savings is the sphere of influence, which refers and improvements in to the engagement of shareholders. The principles of corporate social re- delivery reliability. sponsibility form the foundation of CSR, influencing all aspects of it. The stand- ard specifies accountability, transpar- ency, ethical behaviour, respect for stakeholder interests, respect for the The past year was a busy one for and competitive tendering resumed. The factory operations over the last two years. According to our rule of law, respect for international sales. Mint of Finland expanded in Vantaa was put back into operation and per- circulation coin and blank customers, a good corpo- norms of behaviour and respect for hu- man rights as principles to follow. its customer base in regions sonnel were called back to work. rate image and attractiveness as a partner are Mint of Finland’s strengths. The company’s environmental In the autumn, the Group’s Execu- such as Latin America and Africa. Fierce competition responsibility was also appreciated. tive Committee reviewed the general state of the Group’s corporate social Coins have still not given in to The operating environment for circulation coins A full one hundred per cent of respondents would responsibility in relation to the core plastic, and demand keeps rising. and blanks has not changed. Mint of Finland is a recommend Mint of Finland to entities making sim- subjects of ISO 26000, including cor- well-known supplier to central banks and mints, ilar procurements. The survey was directed at central porate governance, human rights, la- In sales at Mint of Finland, 2014 was a year of and is invited to participate in the majority of banks and mints of various countries and it also in- bour practices, the environment, fair great internal development. The practices of the tendering processes. dicated that a significant number of respondents pre- operating practices, consumer is- sales organisation were harmonised and made Mint of Finland has built up its presence in dicted an increase in their coin procurement in 2015. sues, and community involvement and more efficient. Today, we all do things according new market areas through determined sales work Mint of Finland has acquired new customers in development. to the same process. We plan better, follow sales in potential markets. These measures have in- Latin America and Africa in particular. Deliveries for The results of the review indicated which core subjects are essential with systematically, and also identify risks better. creased awareness about Mint of Finland in South the contracts won in the autumn of 2014 were made regard to sustainable development. These new working methods have injected and Middle America and Africa in particular. in early 2015. In early 2015, the Executive Com- new enthusiasm into our staff. Our efficient sales The competition for orders nevertheless re- mittee addressed human rights in work has secured our order books from the spring mains fierce, and the circulation coin market is Responsibility as a competitive advantage more detail. The core subject of hu- of 2015 until 2017. a very challenging one. The entity offering the Mint of Finland Group always seeks to develop and man rights is divided into the issues of Even closer cooperation and instant communi- cheapest price most often wins the contract. renew its operations. We have seen that matters and due diligence, human rights risk situ- cation between the sales and production depart- However, Mint of Finland seeks to build a com- practices can change. The sales department of Mint ations, avoidance of complicity, griev- ments have played a crucial role in this success. At petitive advantage through product quality and of Finland aims to anticipate customer needs and of- ance resolution, discrimination and sales, we now have a better understanding of the reliable and responsible operations, in addition to fer its services at the right time. Being proactive and vulnerable groups, civil and political rights, economic, social and cultural challenges faced by the production department and offering a competitive price. Mint of Finland is a influencing things builds trust in the future. rights, and fundamental principles and are able to take them better into account. This im- reliable company that never compromises on the The Group has worked hard to develop its corpo- rights at work. This detailed review of provement in cooperation has been realised as cost quality of its work. We have internalised the phi- rate social responsibility, and the iso 26000 certifi- the core subject of human rights re- savings and improvements in delivery reliability. losophy of 100 per cent responsibility, and this is cate is being adopted one section at a time. This year, sulted in a list of actions for Mint of Demand for blanks produced by Mint of Fin- reflected in our work. we will focus on human rights. The blank factory in Finland. The human rights perspec- land Group remained steady and brisk throughout Halsbrücke will adopt the iso 50001 energy efficien- tive will be integrated into the Group’s the year. The demand for circulation coins flagged In the customer’s interest cy certificate in the spring. management systems and be con- and hardly any tenders were invited in early 2014. A customer satisfaction survey showed that Mint Even though most contracts are still won by price, sidered in more detail in supply chain management and the cooperation with For this reason, the production staff in Vantaa of Finland’s customers are very satisfied with its change is in the air. Customers have shown interest our agents. was laid off for almost five months. Demand for operations. The feedback was extremely positive. in Mint of Finland’s csr themes. In the future, re- circulation coins nevertheless picked up in July Customers have noticed the improvement in our sponsibility will be a major competitive advantage.

8 Mint of Finland Annual Report 2014 Sales 9 Finances Tax footprint by country

Financial responsibility Mint of Finland Group reports all taxes paid by it. We leave nothing out. Taxes in 7.1 7.5 4.6 1.7 total provides security for M€ M€ M€ M€ the future €1,000 Finland Germany Spain Norway Direct taxes paid for Income tax — –14 — — financial period Employer’s contributions 935 406 488 91 Real estate tax 85 — — 3 Other taxes — 6 35 — Taxes collected for Withholding tax — 271 — 199 financial period VAT, sales 3,094 1,669 1,184 243 VAT, purchases 3,016 5,234 2,552 1,184 Excise tax — — 345 — Other taxes — — — 15 Financial responsibility is managed tax impact of its operations and the distribution Turnover 23,620 41,307 13,979 5,730 by the Executive Committee, of this impact across different countries. Profit before taxes –381 1,903 –73 –118 which reports to the ceo of Mint The objective of Mint of Finland’s tax strategy Personnel 61 persons 82 persons 39 persons 9 persons is to support the company’s business operations of Finland Ltd. The realisation of * Figures based on the official financial statements released in each country.Intra-group items included in the country- and to ensure their appropriate implementation specific figures. financial responsibility is monitored from the perspective of taxation. Mint of Finland on a monthly basis, by indicators complies with local legislation regarding the pay- Mint of Finland Ltd. Saxonia Eurocoin GmbH ment, collection, settlement and reporting of tax- Capital flows to stakeholders defined individually for each year. €1,000 2014 2013 2014 2013 es. We pay taxes to the countries where they be- For Mint of Finland, responsibility largely con- long on the basis of our business operations. In Customers Net revenue 23,620 32,982 37,529 50,254 sists of securing the operating conditions for its transfer pricing, the company is committed Other operating income 110 150 — — the future. Small things count. Our objective is to compliance with local legislation, and Mint Income from shares in 8,803 — — — to care for and shoulder our responsibility. The of Finland’s transfer prices are based on publicly associated companies company is committed to the continuous reduc- quoted prices when applicable quotes are availa- Suppliers and Materials and service purchases 21,346 25,791 23,998 37,312 tion of wastage, i.e. the activities that generate no ble. The high-quality management of tax returns service providers Other operating expenses 2,745 4,645 7,782 8,252 value for the customer. The principle of finan- and other statutory obligations is essential to cial responsibility is to provide value for money Mint of Finland Group’s tax management. Personnel Personnel costs (including pension and other ancillary costs) 3,382 4,266 2,138 2,739 tomorrow as well. The key development areas of Mint of Finland Group reports all taxes paid by Mint of Finland’s financial responsibility are the it. We leave nothing out. Public sector Taxes (income taxes) — — 556 –108 management of capital, increasing the company’s The tax footprint consists of three principal Non-profit entities Support and donations given — — — — value, the improvement of profitability, increas- areas: the direct taxes paid by the company (e.g. Shareholders Dividends paid to shareholders — — 8,803 1,000 ing the amount of seigniorage* received from the income tax, various employer’s contributions, ve- Funding providers Financing costs (net) 274 –997 –12 –24 launch of collector coins, and safeguarding con- hicle taxes, capital transfer taxes, real estate tax- Funds available for development of company operations 4,786 –2,567 –5,760 1,035 tinuity. The realisation of financial responsibil- es, etc.), the indirect taxes paid by the company Investments 118 7,834 51 492 ity is described in Mint of Finland’s financial (taxes paid as part of the product’s/service’s price, statements. but collected by the seller, such as insurance pre- Key performance Mint of Finland’s tax policy forms part of the mium tax, car tax, etc.) and the taxes collected by Mint of Finland Ltd. Saxonia Eurocoin GmbH company’s responsibility. the company (e.g. withholding tax, tax at source indicators €1,000 Realisation Goal Realisation Goal The state and municipalities levy taxes in or- and vat). der to cover their costs. As part of society, com- Net revenues 23,620 69,043 37,529 35,745 * Seigniorage is the issuer’s income from metal coins, Operating profit –2,672 –2,497 1,885 1,972 panies pay a corporation tax on their profits. Mint consisting of the difference between the nominal value of Finland uses the tax footprint to describe the and acquisition cost. Accident frequency (qty / million hours) 63 0 20 0

10 Mint of Finland Annual Report 2014 Finances 11 Personnel Gender distribution of personnel A year of teamwork The most significant Mint of Finland Ltd. result of the autumn Female Male Employees 26% 74% survey was the feedback Clerical provided in the free- employees 60% 40% Professional form comments, which & managerial 56% 44% employees indicated that Mint of Board of 43% 57% Directors Finland’s personnel feel Saxonia Eurocoin GmbH that the Group is going Production in the right direction employees 26%Saxonia Eurocoin GmbH74%

Administration 50% 50%

Group Executive Committee

In 2014, Mint of Finland it contributes to the flexibility and efficiency of Responsibility and Lean philosophy Group Executive 38% 62% Group took steps in the right production. In the future, the diversification of Internal communications was a shared Committee direction, even though the lay- competencies will also play a greater role at the development area across the Group in Halsbrücke factory. 2014, based on the feedback collected by Average length of employment offs in Vantaa and organisational a personnel survey. A repeat survey con- changes in Germany tested the New competencies ducted in September indicated that im- Mint of Saxonia organisation’s capability to adapt. in Halsbrücke provements had been achieved, but the Finland Ltd. Eurocoin GmbH In the field of human resources development, the issue still requires work in order to find Less than For the personnel of Mint of Finland’s factory in blank factory in Halsbrücke had some good news the best practices. The most significant 5 years 28% 31% Vantaa, 2014 was an exceptional year. Two-thirds for the entire Group. The factory’s own Fit for the result of the autumn survey was the of our production personnel had to be temporar- Future development project kicked off in 2014 feedback provided in the free-form com- 5–9 years 23% 26% ily laid off in early 2014. The entire production and will continue through 2015. This extensive ments, which indicated that the Group is staff was called back to work in the summer, as a project consists of several sub-projects in which going in the right direction. In the future, 10–19 years 27% 28% tender submitted in the spring was realised into the project teams develop, for example, processes we will seek to find ways to improve the an order. for management and the development of compe- response rate also in Halsbrücke in order 20–29 years 15% nil Before restarting work, we organised two tence, as well as cooperation throughout the or- to direct development work at the right More than workshops in cooperation with occupation- ganisation. As a result of the project, the facto- targets. 7% 15% 30 years al health care in which all employees, whether ry’s organisational structure has been simplified While Halsbrücke will continue with they had been laid off or not, were given the op- and more resources have been allocated to man- the Fit for the Future project in 2015, a portunity to discuss their feelings. This proved agers. The project has also served as a natural way new project for the improvement of work to be a wise decision, and work got off to a good of harmonising practices and tools between Van- practices is planned for Vantaa. The pro- Number of training days start. taa and Halsbrücke. ject will combine one hundred per cent re- Mint of Finland Ltd. The competencies of our production depart- The development projects included in the sponsibility thinking and Lean philosophy, ment in Vantaa have diversified and the mobili- wider project have been selected on the ba- with a customer-oriented approach. 2014 136 ty of personnel between tasks has increased. Our sis of an extensive round of personnel inter- Despite a hard year for our personnel, 2013 233 production staff has always been extremely com- views, and an employee representative sits on the Group has moved forward. It is a won- petent and in command of numerous tasks, and the project’s steering group. The factory’s staff derful thing that the whole staff feels that Saxonia Eurocoin GmbH we have now found functioning models for cap- is committed to the project, whose progress is the measures taken will move the entire 2014 107 italising on this resource. We will continue to reviewed regularly between management and Group in the right direction together, to- promote the diversification of competencies, as personnel. wards a bright future. 2013 145

12 Mint of Finland Annual Report 2014 Production

Environ- Over 80% Over 16% Below 8% Efficiency and cost mental goals 86% 18% 6% savings and indicators 83%, 2013 23%, 2013 5%, 2013 Goal for 2014 displayed above the indicators Utilisation Material recycling of Mixed percentage mixed metal waste

In 2014, Mint of Finland Group of the timeliness of our deliveries is also due to has built a foundation that will the new factory, in which procedures are clear-cut Transport CO² emissions Forms of transport in deliveries  and material flows efficient. by mode of transport be evident in all our operations in (grammes per tonne kilometre) the coming years. Our circulation More efficiency 88% coin, blank and collector’s product Mint of Finland Group wants to be even more 15 Shipping cost-effective in 2015. This will involve aspects Mint of businesses are stronger than 61% Finland Ltd. such as project management and a precise under- they have been in a long time. Saxonia standing of market-price awareness with regard Eurocoin GmbH The global circulation market was anticipatory at to raw material and production costs. At the be- 11% the beginning of 2014. Hardly any tenders were ginning of 2015, we also adopted a new pricing 41* Road invited, and the circulation coin production de- model, centralising pricing in our sales depart- 39% partment of the Vantaa factory was almost en- ment in Finland. tirely laid off for five months. In July, personnel Our factories aim for maximum utilisation of were called back to work when tenders submitted capacity. Our production department anticipates 1% 595 Air ■■Deliveries of Saxonia Eurocoin products are in the spring were realised as orders. gaps between projects and communicates them to nil affected by the factory’s location in Central Europe, In the autumn, the market became even liveli- sales in time. The sales department then deter- where deliveries to European destinations are er. Mint of Finland won several contracts in new mines whether suitable customers could be found made by road and the distance to the closest port regions such as Latin America and Africa. At the to fill the gaps. This cooperation between produc- * Semi-trailer is longer than in Finland. beginning of 2015, we have orders for both circu- tion and sales has been extremely successful. lation coins and blanks long into 2017. The 2015 Our blank factory will continue operating ac- order books of our blank business in Halsbrücke cording to the contract manufacturer model. All Recycling and 2014 Consumption of 2014 began filling up in the autumn of 2014, which gave material procurement will be handled from Fin- utilisation percentages 2013 natural resources per 2013 rise to some positive challenges regarding project land, with the materials delivered to Germany. Mint of Finland Ltd. tonne of blanks management and the improvement of the flexi- In the blank market, price and delivery relia- 63% Saxonia Eurocoin GmbH 4.8 bility of the factory’s capacity. bility are the principal factors in addition to the The collector’s product business operates in company’s reputation. In this regard, Mint of 88% short cycles from order to delivery, requiring ef- Finland has been developing its supplier network 43% ficient and flexible processes. Despite these short and looks for the best material prices for each 40% 71% 997 263 3.2 cycles, the application of Lean philosophy has project. 894 enabled us to move our production into a more order-steered direction throughout the order– New winds blowing in Germany 166 delivery chain and shorten our reaction times to- The blank factory in Halsbrücke went through a 18% wards customers. major organisational change, with senior man- 13% 12% Mint of Finland’s new operating model, in agement being almost completely replaced. Dirk 5% 6% which information flows rapidly between produc- Höhne is the Plant Manager in Germany, work- nil tion and sales, is equally well-suited to bringing ing with Business Controller Tobias Bading. Mr. Not measured in 2013 long and short projects to conclusion. The co- Höhne and Mr. Bading are also members of the Percentage Electricity Natural gas Water operation is coordinated by a project manager. Group Executive Committee. Jarmo Hakkarainen of plated consumption consumption consumption This model has created significant savings in cost continues as the Managing Director of the blank waste waste blanks in kWh / tonne kWh / tonne m³ / tonne material management and time. The further improvement factory. to landfill production Recycled Utilisation as energy Hazardous Mixed waste

14 Mint of Finland Annual Report 2014 Biodegradable Production 15 In Germany, energy-efficiency is rewarded with tax reliefs. Halsbrücke has long been working towards meeting the requirements of the ISO 50001 Energy Efficiency Certificate.

The year’s most important hr development project in Halsbrücke was Fit for the Future, Certified security in Vantaa which sought to identify essential development areas through staff interviews. Practices such as Mint of Finland’s circulation coin and blank shift supervision will be improved in 2015 as a re- customers are typically state central banks. sult of the project. Customers expect many things from Mint of Finland, but security most of all. Mint of Finland Everyone in a common system has therefore defined corporate security as one of the most crucial tools for building trust in the Good progress was made with the Group-wide eyes of our customers. adoption of the erp system used in Finland in Mint of Finland’s Director of Security Jussi 2014. Much work has been done to achieve the Kriikku says that security is one of the founda- integration, and Mint of Finland’s production tions of the Group’s operations, and significant and inventory management functions will have investments have been made in it. The new of- adopted the system by the summer of 2015. A fice and production facilities that Mint of Finland shared system brings transparency and efficien- moved into in 2013 have been designed with cy to operations. high security in mind. We perform a thorough risk analysis on an annual basis. In blank quality assurance, we made a major And now, Mint of Finland has acquired the investment in a new quality control camera sys- international TAPA (Transported Asset Protec- tem in late 2014. Blanks are inspected via camera tion Association) FSR certificate for logistics before being packed. The new cameras spot de- and inventory management. “As a result of an fects better and more quickly, further minimis- audit of our operations, we were granted an ing wastage. The Group also recruited a quality A-class TAPA FSR certificate, which guides our manager from Germany. The quality manager is logistics and inventory management processes responsible for the quality of blanks, circulation on many levels. The certificate considers safe- coins and collector’s products. He is tasked with ty from the perspectives of structures, persons, technical systems, and the control of docu- the integration of the Group’s quality manage- ments and material,” says Jussi Kriikku. ment systems. Mint of Finland’s blank factory in Halsbrücke, In Germany, energy-efficiency is rewarded Germany, intends to apply for the certificate in with tax reliefs. Halsbrücke has long been work- 2016, which will close the final gap in the TAPA ing towards meeting the requirements of the FSR certification of the Group’s transport chain. iso 50001 Energy Efficiency Certificate. The -cer “This means that we will be able to monitor the tificate will be implemented at the blank factory security of the transport and storage of the in April 2015. customer’s product from the very beginning of the production process until final delivery to the The CoinTune safety feature developed by customer,” Jussi Kriikku concludes. Mint of Finland is the most revolutionary in- Mint of Finland operates in close coopera- novation in circulation coins for 20 years. The tion with security authorities and is constantly project is currently in the further development honing its readiness to anticipate and deal with stage, and we are exploring new markets for the various threats to security. Group personnel al- product. so receive regular training in matters of occupa- Mint of Finland has demonstrated that it is tional safety. state-of-the-art in all of its operations.

Production 17 Collector coins Celebrating with coins

Collector coins celebrate an important strides have been made in that direction. We only ●●Facing page: on the left, commemorative coin for the creator of the Moomins, Tove Jansson; on the right, date, person or cause. Everyone fell a little short of our sales targets. golden First Mark and Numismatics collector coin above, Literacy collector coin in glass case below. This page: This success is based on results-oriented and on the left, Wilderness and Waters collector coins from the Northern Nature series; in the middle, Savonia’s has days that have left beautiful Black-Throated Loon and Åland’s White-Tailed Eagle collector coins from the Animals of the Provinces series; on systematic work. Sales, marketing and production the right, commemorative Ilmari Tapiovaara coin in a coin pendant and in its original packaging. memories in their lives. Collector worked in close cooperation in a constructive and coin sales are on the growth track. enthusiastic spirit. Our base sales and marketing in itself is not enough. The collector coin must years will have passed from the end of the Second processes rest on a solid foundation. come closer to a utility article, such as a piece of World War in Europe. Last year, Mint of Finland released eleven differ- jewellery. ent collector coins. The motifs included Animals Great potential The collector coin feedback group was estab- New sales channels of the Provinces, Northern Nature, First Mark Collector coins are bought by either numismatists lished at the end of 2014, and Mint of Finland in- A customer satisfaction survey indicated that Mint and Numismatics, Literacy, sculptor Emil Wik- or collectors. They usually purchase the coins for tends to actively nurture this cooperation. The of Finland’s retailers and online customers are ex- ström, designer Ilmari Tapiovaara and artist Tove their own use. To these customer segments, the group consists of less than a dozen coin collec- tremely satisfied with the Mint’s new operating Jansson. coins’ value development, subject and price are tors. They provide feedback on our collector coin methods. The growth of the customer base was al- In theory, anyone can suggest a subject for a col- the principle selection criteria. Collectors are also business and state their opinions on the collector ready evident in the number of respondents, which lector coin, but the decision to mint the coin is al- attracted to small mintages. These existing cus- coins planned for release in 2017. had multiplied several times over in two years. ways made by the Ministry of Finance. By decision tomers are the bedrock of Mint of Finland’s col- Mint of Finland’s retailers commended our of the Ministry of Finance, Mint of Finland has ex- lector coin sales and marketing. Sibelius and sisu expertise and willingness to be of service. The clusive rights to mint collector coins in Finland. A study commissioned by Mint of Finland For the first time, a study was conducted on the customers of the online shop felt that Mint of Collector coins are a challenging product to demonstrated that there is a large group of po- subjects of the collector coins to be released in Finland’s corporate image, packagings, and trans- sell, and the sales process was overhauled in 2014. tential collector coin customers who have not yet 2015. The motifs chosen for 2015 are familiar and action and delivery security contributed to the We reviewed our strategy, updated our customer purchased coins, but might consider doing so. approachable. Coins will be minted for Jean Sibe- online shop’s success. registers and succeeded in multiplying the num- Finding and activating this relatively young lius, Finnish sisu, Akseli Gallen-Kallela and Tapio The operating environment for collector coins ber of newsletter subscribers, making the news- group is an important task for the collector coin Wirkkala, among others. still requires work. The coins must be made easily letter into an effective sales tool. sales team. These potential customers would pre- Mint of Finland will also launch 70 Years available to customers. In 2014, Mint of Finland These measures were successful. Our collector fer buying collector coins as presents, as long as of Peace in Europe collector coins in coopera- tested the sales of collector coins in department coin business is not yet profitable, but significant they are clearly identifiable as such. A shiny coin tion with other European countries. In 2015, 70 stores, with extremely promising results.

18 Mint of Finland Annual Report 2014 Collector coins 19 Governance principles and corporate governance The company’s governance aims at simple, basic and clear solutions. Well Strongly Finnish managed and transparent governance is a part of corporate social responsibility.

Mint of Finland Ltd is a limited nia EuroCoin GmbH. The Norwegian Det Norske seven members, elected for one-year terms by the rectors, and prepares the proposals submitted to liability company owned by the Myntverket and Spanish Ceco sa are also part of Annual General Meeting. The Chairperson and the Board of Mint of Finland Ltd. Finnish state since 1993, when the the Group structure. Vice-Chairperson of the Board are elected by the Mint of Finland’s statutory governing bodies Annual General Meeting. The CEO internationalisation of the company are the Annual General Meeting, Board of Direc- The Board of Directors of Mint of Finland is 1 is responsible for the day-to-day manage- began. The export business is tors and ceo of Mint of Finland Ltd, along with responsible for the management and supervision ment of the Group in accordance with the Ar- vital to Mint of Finland, and the the Boards and ceos of Group subsidiaries. The of Mint of Finland in accordance with the Finn- ticles of Association, Finnish Limited Liabili- company is the world’s leading ceo of Mint of Finland proposes candidates for ish Limited Liability Companies Act, the Articles ty Companies Act and the instructions of the the Boards of Directors of subsidiaries and oth- of Association, the Board’s rules of procedure and Board of Directors. exporter of coins at the moment. er Group companies. The Board of Directors of the instructions of the company’s owners. 2 reports to the Board of Directors. The company’s governance aims at simple, ba- the parent company appoints the Board mem- The Board serves as the independent body re- 3 is responsible for preparing the Group’s strat- sic and clear solutions. Well managed and trans- bers, taking into account that the work of statu- ferred to in the Corporate Governance Code, with egy and action plans, and for presenting them parent governance is a part of corporate social tory management bodies may involve supporting the objective of making business decisions and to the Board of Directors for approval. responsibility. the management of business operations. discharging its statutory duty of supervision in 4 regularly informs the Board of Directors of the The business operations of Mint of Finland accordance with the company’s best interests, company’s operations and financial position. Governance principles Group are managed by the Executive Committee, ensuring the growth of the company’s value over 5 presents matters to be decided by the Board Mint of Finland’s governance principles specify whose members report to the ceo of Mint of Fin- the long term. The Board of Directors shall en- of Directors, unless the manager responsible the key duties, mutual relationships, remunera- land Ltd. The operative management of subsidiar- sure that it has access to the information re- for the matter or an expert is tasked with the tion, internal supervision and auditing, risk man- ies is the responsibility of their ceos, who report quired for discharging its duties. The Board shall presentation. agement and audit procedures of the company’s to their companies’ Boards. see to it that the Group acts in accordance with governing bodies. the business principles approved and targets set Mint of Finland Group Executive Committee Annual General Meeting for it. The Executive Committee of Mint of Finland Regulations applied The highest decision-making body in Mint of The Board of Directors decides on the key Ltd supports the ceo in his work. Meetings of Mint of Finland Ltd is a Finnish limited liability Finland Group is the Annual General Meeting policies followed by the Group and on matters the Committee are convened by the ceo, with company whose decision-making and governance of Mint of Finland Ltd. The Articles of Associ- that are both major and significant with regard the attendance determined by the matters to be are conducted in compliance with the Finnish Lim- ation stipulate that the Annual General Meeting to the scope of the Group, which deviate from discussed. ited Liability Companies Act and the company’s shall be convened by registered letters sent no lat- the Group’s normal business operations, or Articles of Association. Where applicable, Mint of er than eight days before the meeting to the ad- which the Board of Directors specifically decides The Group Executive Committee Finland also complies with the Finnish Securities dresses entered by shareholders into the share to discuss and resolve. The principal duties of 1 Ensures that the decisions made by governing Market Association’s Finnish Corporate Govern- register. The ordinary Annual General Meeting the Board of Directors are set out in its rules of bodies are appropriately implemented in the ance Code that entered into force in 2009. shall be held once per year, on a date before the procedure. organisation. end of June set by the Board of Directors, in either The Board monitors and evaluates its operating 2 Proposes improvements to the strategy of Group structure the company’s domicile or in Helsinki. methods through annual internal assessments. Mint of Finland Group for approval by the The management of Mint of Finland Group aims The Annual General Meeting elects the Board The remuneration of Board members is de- Board of Directors. at simple, basic and clear solutions. Mint of Fin- of Directors of Mint of Finland Ltd and a Chair- scribed under Management remuneration. 3 Assists the ceo of Mint of Finland Ltd in pre- land Group manufacturers blanks, circulation person and Vice-Chairperson for the Board. paring for meetings of the Board of Directors, coins and collector coins. Mint of Finland Group CEO of Mint of Finland Ltd and investigates any matters submitted to it includes the completely owned subsidiaries Mint Board of Directors The ceo makes decisions independently and with by the ceo. of Finland Ltd and Saxonia EuroCoinGmbH. Mint The Board of Directors of Mint of Finland Ltd support from the Group’s Executive Committee 4 Actively promotes cooperation between busi- of Finland Ltd is the parent company of Saxo- consists of no less than three and no more than within the mandate defined by the Board of Di- ness areas and agrees on common princi-

20 Mint of Finland Annual Report 2014 Governance principles and corporate governance 21 Company Management Finland, Managing Director, 2015–; tics Finland, Head of Division of En- Jaakko Pöyry Consulting, Inc., Sen- Company Management Sisäsuomi Ltd, ceo 2012; Outotec terprise Statistics 1983–1988, var- ior Consultant 1990–1993; Kym- Plc, Director of Business Develop- ious duties in economic statistics mene Corporation, Voikkaa Paper Group’s ment 2007–2010; Finpro, Head of 1971–1983. Mill, Product Development Manager Members of the group Trade Center (Japan) 2005–2007; ●● Member of the Board of Direc- 1986–1990; Finnish Pulp and Paper Nokia Plc, various executive posi- tors of Destia Ltd, 2012–2014; Mem- Research Institute, Senior Research board of tions (Finland, Poland) 1998–2002 ber of the Board of Directors of Itel- Associate 1980–1986. executive committee ●● Vice-Chairman of the Board of la Plc 2005–2012; Vice-Chairman of ●● Member of the Board Working directors Mint of Finland since 2009 the Board of Directors of Raskone Ltd Group of Sustainability for edana, 2005–2012; member of the Board of European Disposables and Nonwov- Board Members Directors of Finnair Plc 2006–2008; ens Association, 2009–2014; mem- Chairman 2014 member of the Board of Directors of ber of the Board of PaperImpact vr Group Ltd 1999–2005. Member (European Speciality Paper Manu- of the Board of Directors of Sonera facturers’ Association), 2010–2013; Plc 1998–2001. Chairwoman of the Social Relations ●● Member of the Board of Mint of (environment) and Legislation Com- CEO Paul Gustafsson Juha Hörkkö Finland since 2013 mittee of PaperImpact, 2009–2013; Chairman, born 10 Aug Born 26 Jul 1962, msc member of the Paper Engineers’ As- 1955, msc (Tech.). With (Econ.), cfo. With Mint of Riitta Mynttinen sociation since 2008. ●● Mint of Finland since 2003. Finland since 2006. Pentti Kivinen Member of the Board of Mint of born 1960, Civil Engineer, mba Finland since 2011 born 20 August 1943, llm ●● Key concurrent positions: Member ●● Key concurrent positions: Chair- of the Board of Tikkurila Ltd 2011–, man of the Boards of Lasten Päivän member of the Audit Committee of Säätiö foundation and Kansallissäätiö Tikkurila Ltd 2012– Anssi Pihkala foundation, Chairman of the Board of ●● Key experience: Minerals Technol- the Foundation for Private Entrepre- ogies nv, Vice President smi Europe, born 27 April 1963, DSSc neurs, Vice-Chairman of the Board of 2005–2009, Vice President Glob- ●● Hansel Ltd, ceo the Snellman foundation, member of al Paper Business 2009–2014. Ro- ●● Key concurrent positions: – Hanna Sievinen Tobias Bading Henna Karjalainen the Board of the Finnish National Op- hm and Haas Company, various man- ●● Key experience: Hansel Ltd, Gen- Born 4 Sep 1980, Dipl.-Wi.- Born 8 Jun 1967, era, Secretary General of the Finnish agement positions in sales, marketing, eral Counsel, 2003–2005, Manag- born 1972, msc (Econ.), ma Fair Foundation integration and business operations ing Director, 2005–; Association of in International Business Ing., Business Controller, ma, Vice President, ●● Key experience: Finnexpo, Manag- 1998–2005. Ferro Corporation, Eu- Finnish Local and Regional Authori- ●● Key concurrent positions: Mem- Halsbrücke. With Mint of Communications. With ing Director 1993-2011; Tukkukau- rope Corporate Marketing Manager ties, Legal Counsel, 1997–2003; Asi- ber of the Board of Mint of Cinia Ltd, Finland since 2014. Mint of Finland since 2009. ppojen Ltd, President, 1985–1992; 1996–1998 anajotoimisto Koivuhovi attorneys at 2015– Rautakonttori Ltd, managing direc- ●● Member of the Board of Mint of law, attorney, 1995–1997 ●● Key experience: Independent con- tor, 1977–1984; Federation of Finn- Finland since 2010 ●● Member of the Board of Mint of sultant, 2014–; Nokia, Chief Re- ish Wholesale Organizations, Legal Finland since 2008 structuring Officer, 2012–2014; Counsel, 1969–1971, Managing Di- Nokia, Vice President, North Europe; rector, 1971–77 Nokia, ceo of Nokia GmbH 2010– ●● Chairman of the Board of Mint of 2011; Nokia, Vice President, Strategy Finland since 2009, member since and Business Development, 2008– 2008 2010; Nokia, Head of Strategy, Pro- Jarmo Hakkarainen Sirpa Kuusirati cess and Quality, India 2006–2007; Born 3 Mar 1971, Civil Born 21 Apr 1971, msc Nokia, Director, Corporate Strategy Vice-Chairman 2014 Kalevi Alestalo Engineer, cto. With Mint (Econ.), Vice President, Anna Maija Wessman 2004–2006; Nokia, Senior Manager, born 1947, mssc Marketing Planning and Offer Devel- of Finland since 2011. Sales. With Mint of ●● Prime Minister’s Office, Senior Fi- born 27 October 1958, opment, 2004; Nokia, Manager, Ac- Finland since 2013. nancial Counsellor Licentiate of Science quisitions, 2000–2004; Skandina- ●● Key concurrent positions: Member (Technology) viska Enskilda Banken, Credit Analyst, of the Boards of Cinia Ltd and Tap- ●● Key concurrent positions: - 1999–2000; Enskilda Securities, An- io Ltd ●● Key experience: Vice Presi- alyst, Investment Banking & Corpo- Harry Linnarinne ●● Key experience: Prime Minister’s dent, Sustainability at Ahlstrom Plc, rate Finance, 1997–1999. Office, Government Ownership Steer- 2008–2014; Managing Director of ●● Member of the Board of Mint of born 23 February 1965, dsc ing Department, Senior Financial Ad- Ahlstrom Sales Helsinki Ltd (formerly Finland since 2012 (Tech.), msc (Econ.) viser 2007–; Ministry of Trans- Ahlstrom Nordic Ltd) and Chairwom- Dirk Höhne ●● Stena Recycling Finland Ltd, port and Communications, Director an of the Board of Ahlstrom Sales Ltd Board meetings in 2014 Born 28 Feb 1970, Dr.- Heli Säilä Managing Director, 2015– of Unit for Corporate and Owner- 2002–2008; Ahlstrom Atlanta, Inc., The Board of Directors convened 10 Born 28 Mar 1975, ba, bba, ●● Key concurrent positions: Mem- ship Policy, Senior Financial Counsel- President and ceo of Ahlstrom Paper times in the financial period. The at- Ing., Plant Manager, ber of the Board of Directors of lor 2000–2007, Ministerial Advisor Group Boston, Inc.1998–2001; In- tendance rate at Board meetings was Halsbrücke. With Mint hr Director. With Mint Darekon Ltd with various duties in corporate and ternational Paper Company, Product 100 per cent. of Finland since 2013. of Finland since 2011. ●● Key experience: Stena Recycling ownership policy 1988–2000; Statis- Development Manager 1993–1998;

22 Mint of Finland Annual Report 2014 Governance principles and corporate governance 23 The objective of risk management is to identify, measure and manage risks which, if realised, could jeopardise the company’s operations or, on the other hand, present opportunities.

ples and development activities related to the outside the Group also follow the procedure may be paid remuneration if it is warranted in or- nancial year and annual projections constitute management of the Group. outlined above, while taking shareholder rights, der to achieve equal treatment of Board members. an integral part of the management and moni- 5 Supervises business development functions. the company’s Articles of Association and the The remuneration principles are agreed by the toring process. Day-to-day development is the responsibility provisions of any shareholders’ agreement into Board of Directors of Mint of Finland Ltd., which Group-level supervisory measures are man- of the vice presidents of business areas. Long- account. submits its proposal on the matter to the Annual aged by the cfo and at business area level by the term development projects and projects ex- General Meeting. Vice President of each business area. Supervision pressly relegated by business areas are led by Management remuneration In addition to a monthly salary, the members of is implemented by controllers appointed for each the ceo and/or Executive Committee. Remuneration of Board members. The month- the Executive Committee of the Group are eligi- business area, who together with management 6 Is convened by the ceo approximately once ly fee of the Chairman of the Board is eur 2,800, ble for an incentive bonus to a maximum amount ensure that business transactions are recorded in per month. that of the Vice-Chairman eur 1,970, and those equal to three months’ salary. The ceo proposes a timely fashion and appropriately and efficient- of other Board members eur 1,400. An additional the criteria for incentive bonuses paid to the Ex- ly reported in compliance with the specific Group Subsidiaries attendance fee of eur 600 is paid for each meet- ecutive Committee of the Group, and the criteria guidelines concerning the substance of internal In the general meetings of subsidiaries, the share- ing of the Board. are approved by the Board of Directors of Mint of supervision and reporting. holders of Mint of Finland Ltd are represented by Finland Ltd. the Chairman of the Board of Mint of Finland CEO terms of employment. The ceo is paid a The Group has no stock option programmes. Internal auditing Ltd or by a person appointed by him. The parent monthly salary, which was eur 17,952 at the end No performance-based bonuses were paid to Mint of Finland Ltd has no distinct internal au- company’s Board of Directors appoints the Board of 2014, including benefits. The monthly salary management in 2014. dit organisation in place. Internal auditing falls members of subsidiaries from the candidates pro- is supplemented by a bonus tied to performance. within the purview of the Board of Directors. Au- posed by the ceo. The maximum amount of the bonus is 29.4% of Pensions dit plans are reviewed and adopted by the Board, It is the responsibility of the chairpersons of the ceo’s annual salary. The determination of re- Managers belonging to the Executive Commit- which in cooperation with the auditors evaluates the boards of subsidiaries to ensure that their muneration is tied to the profit made by the Mint tee of the Group, including the ceo, fall within and ensures the appropriateness and function of boards legally ratify the decisions required to im- of Finland Group, and to the meeting of separate- the scope of the pension system provided for in the Group’s internal supervision system, the ex- plement the decisions made by the Board of Di- ly defined targets. The yearly targets for theceo ’s the Employees’ Pensions Act. An additional pen- pediency and effectiveness of functions, the relia- rectors, ceo and Group Executive Committee bonus are defined by the Board. sion insurance policy has also been taken out for bility of financial data and reporting, and compli- of Mint of Finland Ltd in accordance with these No performance bonuses were paid to manage- the ceo of the Group and members of the Execu- ance with the policies and instructions specified Corporate Governance Guidelines. ment or other personnel groups in 2014. tive Committee who have signed a director agree- in the rules of procedure. The Board also creates In addition to the industry’s standard busi- Should the Board discharge the ceo from his ment. The age of retirement of the Group ceo is added value for the organisation through consul- ness responsibilities and reporting obligations, or her duties, the period of notice is three months, 63 years. The retirement ages of other members of tancy on these matters. the duties of the boards and ceos of subsidiaries and the ceo is entitled to compensation equal to the Executive Committee are determined by their of Mint of Finland Group include: 12 months’ salary. If the ceo resigns on his or her employment contracts. The Board of Directors Risk management ●● Ensuring the company’s compliance with own volition, the period of notice is three months. of Mint of Finland Ltd decides on any additional The objective of risk management is to identi- the regulations laid down in the Articles of See the Pensions section below for pension pension benefits. fy, measure and manage risks which, if realised, Association and the instructions of Group entitlements. could jeopardise the company’s operations and management. Internal supervision the achievement of its objectives or, on the other ●● Ensuring the company’s compliance with local Other remuneration of management. As a rule, The purpose of internal supervision is to ensure hand, present opportunities. legislation and regulations, and responsibili- no additional remuneration is paid to employees the efficient and profitable operation of Group Risk management is a part of ordinary busi- ty for keeping track of legislation and inform- of Mint of Finland who are also members of the companies, the reliability of information and ness operations and the responsibility of all vice ing the vice presidents of their business are- Boards of Directors of subsidiaries. The remu- compliance with legislation and policies. Internal presidents and their staff. Responsibility for the as and the ceo of Mint of Finland Ltd of any neration payable to Board members not affiliated supervision is the responsibility of the company’s development and implementation of the Group’s amendments. with the Group is determined by the Board of Di- Board of Directors. risk management process and coordination of ●● Ensuring that all tasks appointed by the ceo rectors of Mint of Finland Ltd. Employees of Mint Operations are managed and monitored on risk management efforts lies with the hr director. of Mint of Finland Ltd are carried out. of Finland who are also members of the Boards of a monthly basis by business area and company. The perspective of risk management is broad As a rule, companies with shareholders from Directors of associated companies or subsidiaries Examination of projections for the current fi- and the aim is to accomplish a comprehensive

24 Mint of Finland Annual Report 2014 Governance principles and corporate governance 25 The board of The Board is convened when required, but no less directors’ rules than six times each year. of procedure

charting and management of risks. Risks come The purpose of this document is to ●● making decisions on the general principles 10 Authorising the ceo to take measures not in- under particular examination in connection specify the information presented of the group’s incentive system. cluded in the day-to-day management of the with strategic planning, annual planning, and in Mint of Finland’s Principles 5 Approval of operating policies and monitor- Group. Such authorisations may concern a the planning of investments and projects. The ing of their implementation. When approving specific action or be of a more general and vice presidents are tasked with reporting on of Corporate Governance. an operating policy, the Board of Directors al- permanent nature. risks. so specifies reporting requirements for it. 11 Annual evaluation of the Board of Directors’ The Group conducts annual risk surveys of The operation of the Board of Directors in- 6 The organisation of internal supervision and activities and working methods. either strategic, financial, operative or accident cludes decision-making at meetings of the drawing up of inspection plans in cooperation 12 Ensuring that the documents constitut- risks. Strategic risks include those related to the Board and the continuous supervision and with the ceo. Monitoring the external audi- ing Mint of Finland’s Principles of Corpo- company’s corporate culture, market and com- management of the company’s affairs as re- tor’s reports and carrying out the measures rate Governance are up-to-date, and updating petitive situation, customers, investments, cor- quired by corporate law, throughout the deemed necessary according to the reports in them when required. porate acquisitions, infrastructure, internation- Board’s term of office. The Board of Direc- cooperation with the ceo. 13 Creating the organisational structure neces- alisation, business cycles, political risk factors, tors is tasked with ensuring that the decisions 7 Company acquisitions and sales: sary for the company’s operations and secur- networks, r&d risk factors, human capital, repu- made by company management further the ●● definition of the company acquisition strat- ing those operations. tation and brand. Financial risks include those re- company’s interests and contribute to increas- egy (joint ventures included), which specifies The Board of Directors mainly bases its decisions lated to capital, currency risk, price risk, solven- ing the company’s value, and that the compa- the limitations (e.g. trade price) within which on written and justified draft decisions prepared cy, profitability, customer relationships, contract ny’s shareholders receive equal treatment. the ceo, when required, is authorised to sign by the ceo. partners, credit losses, international operations, a preliminary agreement with another party, The Board of Directors appoints a secretary to investments, financial malpractice and invest- Main duties of the Board of Directors with the final contract requiring the approval take minutes of meetings of the Board of Directors. ment risks. Operative risk factors include those 1 Appointing the ceo. of the Board of Directors; In addition to the above information, the Finn- related to accounting, reporting, hr management, 2 Defining and confirming the company’s ●● approving the timing for announcing each ish Limited Liability Companies Act contains production, communications, information secu- long-term objectives and the main strate­ company transaction; several special provisions for including certain rity, it systems, liabilities, agreements and litiga- gies required for achieving them, and reg­ ●● approving all final company transactions activities in the duties of the Board of Directors tion risks. Accident risks include those related to ular revisions of these to ensure they are on the basis of an investment proposal made or its members. personal injuries, fire or explosion, environmen- up-to-date. by operative management once the economic tal damage, transport and traffic, extremist organ- 3 Approval of business-specific action, in- grounds for the deal, the contents of the due Convening of meetings and quorum isations, criminal activities, natural phenome- vestment and finance plans for the fiscal diligence account, the impact of matters re- The Chairman of the Board of Directors shall en- na, addictions, interruptions, and machinery and year and the supervision of reporting on lated to competition law, and the terms of the sure that the Board is convened when required, equipment. these matters. deed are clear. but no less than six times each year. Whenever 4 Ensuring that the Group and its companies 8 Making decisions on significant investments, possible, meetings will be rotated between dif- Statutory auditing prepare the appropriate external financial divestments of property, and financial ar- ferent offices of the Group. The members of the Statutory auditing in the Group is organised so statements as required by law; rangements (loans, mortgages, pledges). The Board of Directors and the ceo are entitled re- that the firm of authorised public accountants ●● appointing and dismissing the com- Board of Directors discusses and approves the quest a meeting of the Board of Directors. The elected by the general meeting of shareholders for pany’s ceo and making decisions on the annual investment plan. Investments exceed- reason for convening a meeting may be a spe- the parent company performs its audit in Mint ceo’s salary benefits; appointing and dis- ing €200,000 require a separate discussion by cific matter falling within the remit of the Board of Finland Group and is responsible for auditing missing the immediate subordinates of the the Board of Directors before their implemen- of Directors, or simply the need for a report of across the entire Group. Executive Committee and ceo and decid- tation. Investments exceeding €100,000 that the state and operations of the company. If the The firm of authorised public accountants ing on their salaries; are not included in the investment plan must Chairman does not or cannot convene the Board elected is Deloitte & Touche Ltd with apa Ari ●● approving business areas and main likewise be discussed and approved by the of Directors, other members are entitled and, to Hakkola as principal auditor. The auditor is elect- duties; Board of Directors. prevent an impending loss to the company, even ed by the general meeting of shareholders to serve ●● monitoring the development of person- 9 Making decisions on significant expansion obligated to do so. Meetings can be held as tele- for one year at a time. nel competence; and curtailment of business. phone conferences if so agreed.

26 Mint of Finland Annual Report 2014 The Board of Directors has a quorum when above, do not fall within the purview of the It is our objective to 3 Human rights. We respect and follow the more than a half of its members are present. Quo- Board of Directors or within the scope of reg- principles of the United Nations’ Universal rum requires that all members of the Board of Di- ulations contained in other Group guidelines. achieve environmental Declaration on Human Rights. As an employer, rectors are given an opportunity to participate in ●● Planning, managing and monitoring the com- sustainability in all our company respects the fundamental rights the discussion if possible before the decision is pany’s business operations. of workers as defined by the International La- made. In practice, it is not always possible to in- ●● Recruitment of personnel not falling with- our operations. bour Organisation. form all members of the Board of Directors of a in the remit of the Board of Directors as de- 4 Equality and work. We comply with all laws meeting, for instance due to lengthy trips abroad. scribed above. and regulations on equality. We respect the In such circumstances, the meeting can be held ●● Management of the drawing up of ordinary to the company’s operations. This right to take fundamental rights of workers. In their activi- and the required decisions made even if the notice purchase and customer agreements. urgent measures may arise because a competent ties, our employees are committed to compli- of meeting could not be delivered to a member. ●● Preparation and presentation of the functions meeting of the Board of Directors cannot be con- ance with the strict safety measures required Due to the collegial nature of a limited liability of the company’s governing bodies and the vened within a reasonable timeframe due to rea- by the nature of their work. company’s Board of Directors, each member must implementation of their decisions. sons such as a member’s resignation, illness or 5 Health and safety. We wish to guarantee take a stand on issues during decision-making at Day-to-day management does not include ac- death. The ceo’s competence can also be extend- our employees safe working conditions that meetings. Members are prohibited from abstain- tivities deemed unusual or far-reaching with re- ed to encompass unusual and far-reaching meas- do not put their health at risk. It is our ob- ing from a vote for a reason other than bias. Re- gard to the scope and nature of the company’s ures in cases when quorum is reached at a meet- jective to prevent health hazards and acci- cording a divergent opinion in the minutes is not activities. ing, but the Board cannot make a decision on the dents at work. We work actively to minimise always sufficient to release the person concerned The Board of Directors always has the right and, matter due to reasons such as differences among risks caused by the working environment. We from his/her responsibility. The members who when the company’s interest so requires, the obli- the members. The ceo must inform the Board maintain systems supporting the health and expressed a divergent opinion recorded in the gation to give instructions and orders to the ceo. of Directors of such measures as soon as possi- working capacity of our employees. These sys- minutes to avoid liability may also be obligated The ceo is obligated to follow such instructions ble. Available members of the Board of Directors tems are designed to detect and prevent pos- to notify the Annual General Meeting of matters regardless of whether they are separate instruc- should be notified of the measures as they are be- sible threatening or problematic situations such as a decision they considered illegal or, as tions on individual cases or general, permanent ing taken if possible. and to quickly react to them. a last resort, to resign from the Board of Direc- orders. The instructions may be verbal or writ- 6 Conflicts of interest.Our employees are al- tors. The ceo also has the right to have a diver- ten in form. Ethical Guidelines in practice ways expected to act in the best interest of the gent opinion recorded in the minutes. The ceo is obligated to inform the Board of Di- Mint of Finland’s Ethical Guidelines outline the company by abstaining from business rela- rectors on important matters related to the com- ethical dimensions of the company’s principles tionships that may cause conflicts of inter- Minutes pany’s operations, such as sales development, for conducting business and position on human est. Our employees must avoid personal or fi- Minutes are taken of the meetings of the Board significant changes in liquidity and profitability, rights, equality, health and safety, conflicts of in- nancial actions which may be in conflict with of Directors and signed by the Chairman of the significant credit losses and important purchase terest, suppliers and the environment. their duties to our company. meeting and one other member. The minutes or other agreements. 1 Compliance with legislation and regulations. 7 Suppliers. Suppliers are an important and are taken as abbreviated minutes and decisions. The Board of Directors can authorise the ceo We are committed to compliance with nation- essential part of the Group’s supply chain, When discussing issues of significance, the main to undertake activities not included in day-to- al and international law, regulations and gen- and they are expected to observe the same justifications for the decision shall also be record- day management. Such authorisations may con- erally accepted principles and practices in all high legal, ethical, environmental and em- ed in the minutes. The minutes are numbered se- cern a specific action or be of a more general and our activities. We respect the norms of differ- ployment standards as Mint of Finland. Mint quentially and stored permanently in the compa- permanent nature. The authorisation will be is- ent cultures and legal practices in all places of of Finland promotes adherence to these ny’s main office. sued in writing or recorded in the minutes of the business. In cases and situations requiring in- standards among its subcontractors and meeting of the Board of Directors. However, such terpretation, we resort to expert help. seeks to supervise their activities in this Duties of the CEO authorisation may never be given for activities 2 Business principles. In our business activi- regard. The ceo’s duties include the day-to-day manage- that are included in the duties of the Board of Di- ties, we follow generally acceptable, ethical and 8 Environment. We support environmental- ment of the company in accordance with legisla- rectors by law or according to the provisions of honest principles and act openly and trans- ly friendly activities. It is our objective to tion and the instructions and orders of the Board the company’s Articles of Association. parently. In our operations, we follow shared achieve environmental sustainability in all our of Directors. The Limited Liability Companies Act specifies values and respect commitments made to our operations. Day-to-day management refers to ordinary, special provisions on the duties and position of customers and other stakeholders. We inform 9 Ethical Guidelines in practice. Our Ethical recurring functions within the company’s line ceos. our customers and stakeholders openly, im- Guidelines apply to all company employees. of business. The ceo’s main duties include the partially and honestly of our operations. We The guidelines are adopted by decision of the following: Urgent measures maintain a mutual and continuous interaction Board of Directors. Once the guidelines have ●● Deciding on the investments, expenses, di- The ceo has the right to take unusual or with the authorities and various organisations. been adopted, we ensure that personnel are vestments of property and financial arrange- far-reaching measures if waiting for the Board of We do not finance parties or elections. As for familiar with them and follow them in all their ments of Group companies which, as specified Directors’ decision would cause significant harm non-profit donations, we take a moderate line. activities.

28 Mint of Finland Annual Report 2014 Governance principles and corporate governance 29 Content comparison with the corporate responsibility * Government decision-in-principle concerning ownership policy, 3 November 2011 reporting model for unlisted state-owned companies*

Section of the reporting model Reporting Location in the report and comments Section of the reporting model Reporting Location in the report and comments

1 Description of the organisation, administration and principles of operation 4 Environment 1.1 Basic details of the organisation Reported ––Mint of Finland Group in brief, pp. 2–3 4.1 Environmental management Reported in ––Production, pp. 14–19 2012, and part- ––Governance principles and corporate governance, pp. 1.2 Management and operating principles Reported in ––Governance principles and corporate governance, pp. ly in 2014 20–29 of corporate social responsibility part 20–29 Environmental management reported on in 2012. The management and operating principles of corporate social responsibility were reported on in the 2011 report. 4.2 Key environmental indicators Reported ––Production, pp. 14–19 In 2014, the situation was unchanged. 1.3 Stakeholders and Reported in Stakeholders and interaction with them were reported 5 Society interaction with them 2012 on in 2012. 5.1 Local communities Reported in Local communities were reported on in earlier reports. part The situation is unchanged. 2 Financial responsibility 5.2 Bribery and corruption Reported in Bribery and corruption were reported on in earlier re- 2.1 Management of financial Reported in ––Governance principles and corporate governance, pp. part ports. The situation is unchanged. responsibility part 20–29 5.3 Political participation Reported in Political participation was reported on in earlier reports. ––Finances, pp. 10–11 part The situation is unchanged. Management of financial responsibility was report- 5.4 Restrictions on competition Reported in Restrictions on competition were reported on in earlier ed on in the 2011 report. In 2014, the situation was part reports. The situation is unchanged. unchanged. 5.5 Compliance with regulations Reported in Compliance with regulations was reported on in earlier 2.2 Key indicators of financial operations Reported ––Mint of Finland Group in brief, pp. 2–3 part reports. The situation is unchanged. ––Finances, pp. 10–11 ––CEO’s report, pp. 4–5 ––Separate financial statements 6 Product liability 6.1 Customer satisfaction Reported in Customer satisfaction is reported on pages 4, 8 and 19. 3 Personnel part 3.1 hr management Reported in ––Personnel, pp. 12–13 6.2 Health and safety effects of Reported in Health and safety effects of products and services were 2012, and part- ––Governance principles and corporate governance, pp. products and services part reported on in earlier reports. The situation is unchanged. ly in 2014 20–29 6.3 Product and service information Reported in Product and service information and marketing commu- HR management reported on in 2012. and marketing communications part nications were reported on in earlier reports. The situa- tion is unchanged. 3.2 Number and structure of personnel Reported ––Personnel, pp. 12–13 6.4 Protection of customer Reported in Protection of customer details and privacy was reported – – 3.3 Restructuring situations and Reported – Personnel, pp. 12 13 details and privacy part on in earlier reports. redundancies / Employee- employer relations 6.5 Sustainable consumption Reported in Sustainable consumption was reported on in earlier re- part ports. The situation is unchanged. 3.4 Equality Reported in ––Personnel, pp. 12–13 2012, and part- Gender equality plan reported on in 2012. ly in 2014 7 Human rights 3.5 Remuneration Reported ––Governance principles and corporate governance, pp. 7.1 Human rights issues related to Reported in Operations-related human rights issues are reported on 20–29 the company’s operations part the company website and in earlier reports. 3.6 Competence development Reported ––Personnel, pp. 12–13 and training 8 Delivery chain 3.7 Wellbeing at work Reported ––Personnel, pp. 12–13 8.1 Delivery chain management Reported ––Production, pp. 14–19 3.8 Occupational health and safety Reported earlier Occupational health and safety was reported on in ear- Delivery chain management was reported on in earlier lier reports. reports. 9 Reporting and accounting principles 9.1 Reporting and accounting principles Reported in Reporting and accounting principles were reported on in part earlier reports. The situation is unchanged.

30 Mint of Finland Annual Report 2014 31 Mint of Finland Group

Mint of Finland Ltd. Saxonia EuroCoin GmbH PL 100 (Suokallionkuja 4) Erzstrasse 5 a 01741 Vantaa 09633 Halsbrücke Finland Deutschland t. +358 9 894 31 t. +49 3731 4195 80 f. +358 9 898 274 f. +49 3731 4195 888 www . mint . fi www . saxoniamint . de

Det Norske Myntverket AS CECO S.A. Postboks 53 (Hyttegaten 1) Calle Cronos, 67 3602 Kongsberg 28037 Madrid Norge España t. +47 32 299 530 t. +34 91 371 7544 f. +47 32 299 550 f. +34 91 371 7487 / 88 www . myntverket . no www . ceco-sa . com