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Annual Report 2014 Table of Contents Year 2014 4 from the CEO

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Annual Report 2014 Table of Contents Year 2014 4 from the CEO Annual Report 2014 Table of Contents Year 2014 4 From the CEO . 1 Strategy and vision . 46 Key figures . 2 Materiality assessment . 48 Board of Directors . 6 Accomplishments in 2014 . 50 Personnel . 9 Responsible procurement . 51 Report by the Board of Directors 2014 . 13 CSR aspects in the procurement process . 51 Operations of the central procurement unit . 13 Accounting for CSR in framework agreements . 53 Financial status and key figures . 14 Environmental label . 55 Framework agreements as services . 15 Market functionality and SMEs . 59 Review of events in 2014 . 16 Digitisation of society having Risks and risk management . 18 an impact on procurement . 62 Personnel and organisation . 19 Data-secure solutions . 64 Forecast and targets for 2015 . 20 Working together Board of Directors’ proposal for successful procurement . 65 for the disposal of profit . 21 Case: Criminal Sanctions Agency Financial statements . 22 put its inspection services up for tender . 67 Cash flow statement . 22 Case: Tax Administration a frequent user of HR services . 69 Profit and loss statement . 23 Case: Keeping the police on the move . 71 Balance sheet . 24 Stakeholders . 73 Notes to the financial statements . 26 Closer co-operation in State governance . 73 Signatures to the financial statements and auditor’s confirmation . 32 Stakeholder analysis . 74 Auditor’s Report . 33 External working groups . 77 Memberships in organisations Sustainability report and disclosures . 79 Transparency and stakeholder Hansel in brief . 35 communications . 80 Our operations . 35 Customer and supplier satisfaction . 81 Organisation . 36 Work community . 83 Structure of the Corporate Good employer . 83 Responsibility Report . 37 Hansel Academy . 85 Corporate responsibility programme . 38 Benefit package . 87 CSR management . 38 Green Office . 88 Hansel’s values . 39 Personnel statistics . 90 Code of Ethics . 40 GRI index . 94 Savings to the society . 42 Key figure formulae . 99 Trends affecting operations . 45 Independent assurance report . 100 This pdf has been compiled from the contents of the online Annual Report. Read the online report at http://annualreport2014.hansel.fi From the CEO We at Hansel operate as the state central procurement unit with the goal of producing savings. In 2014, the value of goods and services procured through our agreements rose to a record high of €715 million. The state centralised procurement system produced savings of nearly €250 million. In addition to centralised procurement we offer procurement consulting services for our customers. This service generates further value to our customers and the feedback we have received has been positive. Hansel participated in state procurement worth approximately one billion euros in 2014. I am proud of the responsibilities that we have carried out. We have been able to acknowledge the environmental and economic responsibility in our contracts. We still have a lot to do, especially in the area of social responsibility. We address our sustainability work closer in our corporate sustainability report. We welcome a wider use of electronic solutions in procurement. A new procurement act coming into force next year will require procurement to be subject to competitive electronic tendering. Currently we are introducing an electronic tendering service for the state. We predict that digitalisation of the procurement process will add efficiency to both customers and suppliers. Digitalisation will reduce the administrative burden and increase transparency in procurement. The basis of all our activities is cooperation – cooperation with customers, suppliers and other stakeholder groups. Cooperation is the key to our mutual success. I would like to warmly thank all our partners and Hansel's excellent staff for successful year 2014. 1 Key figures Central procurements by sector EUR thousand 2014 2013 2012 2011 2010 Change 13/14 Procurement sector Category ICT procurement Data communications 32 296 32 299 30 491 25 413 23 017 0% ICT equipment 84 692 79 585 83 705 81 480 84 171 6% Software 29 810 27 834 27 410 22 452 23 870 7% ICT services 46 957 31 935 26 321 29 379 34 899 47% Total 193 756 171 653 167 927 158 724 165 956 13% Procurement of administrative Financial management 50 725 51 356 40 141 31 463 35 702 –1% services Organisational and HR 84 365 86 605 83 893 76 264 68 979 –3% development Travel management 78 939 78 784 73 505 72 799 71 811 0% Total 214 030 216 745 197 538 180 525 176 492 –1% Procurement of materials and Vehicle and transport 51 201 50 080 49 394 42 367 44 001 2% technical services services Material and facilities 70 432 56 786 52 596 57 083 48 977 24% services Office supplies 63 927 64 828 66 183 63 286 52 249 –1% Energy supply 121 238 134 898 153 338 173 572 65 669 –10% Total 306 798 306 592 321 511 336 308 210 896 0% Total 714 584 694 990 686 976 675 558 553 345 3% 2 Development of central procurement EUR thousand Framework agreements, top 15 EUR thousand 2014 2013 Share Growth Electricity 81 415 90 879 11% –10% Occupational health care services 61 138 65 923 9% –7% Computers and peripherals 50 932 47 982 7% 6% Technical ICT consultancy 40 416 31 682 6% 28% Equipment leasing services 33 641 31 797 5% 6% Scheluded flights 31 404 32 958 4% –5% Fuel 30 497 36 292 4% –16% Facility user services 28 798 23 960 4% 20% Distribution channels for Microsoft access rights 28 517 25 723 4% 11% Vehicles and economic driving training 26 326 28 814 4% –9% Office furniture 25 062 22 825 4% 10% Domestic accommodation and conference services 23 116 22 740 3% 2% Voice solutions 18 611 17 662 3% 5% Office and ICT-supplies 15 860 17 917 2% –11% 3 Security technology 13 613 7 573 2% 80% Other total 205 238 190 262 29% 8% Total 714 584 694 990 100% 3% Central procurements by branch of administration EUR thousand 2014 2013 Share Growth Ministry of Defence 124 077 107 803 17 % 15 % Ministry of Finance 103 360 89 356 14 % 16 % Ministry of Education and Culture 101 746 98 160 14 % 4 % Ministry of Employment and the Economy 81 965 84 609 11 % –3 % Ministry of the Interior 68 406 69 324 10 % –1 % Ministry of Transport and Communication 60 891 56 654 9 % 7 % Ministry of Justice 38 525 45 014 5 % –14 % Finnish Government 34 855 42 274 5 % –18 % Ministry of Social Affairs and Health 34 629 39 874 5 % –13 % Ministry of Agriculture and Forestry 30 456 27 915 4 % 9 % Parliament of Finland 11 705 12 080 2 % –3 % Ministry of Foreign Affairs 10 737 13 652 2 % –21 % Ministry of the Environment 5 177 4 727 1 % 10 % Agencies of the European Union 2 029 1 706 0 % 19 % Office of the President of the Republic of Finland 1 103 1 404 0 % –21 % Unallocated to any branch of the public administration 4 921 436 1 % 1 028 % Total 714 584 694 990 100% 3 % 4 Cost development EUR thousand 5 Board of Directors Timo Laitinen, b. 1958 Master of Laws Director General State Treasury Member of the board since 2012 Selena Savo, b. 1973 Vice Chair Master of Arts Personnel Manager Ministry of Finance Member of the board since 2013 6 Tiina Lukkari, b. 1954 Master of Arts Executive Vice President Purchases Alko Inc. Member of the board since 2010 Rami Metsäpelto, b. 1968 Master of Laws Director General Finnish Transport Agency Member of the board since 2014 7 Panu Kilpinen, b. 1974 Vocational Qualification in Business and Administration Customer Manager Hansel Ltd Member of the board since 2013 8 Personnel Customer Manager Kari Eronen, Category Category Manager Aino-Maija Lahtela, Legal Manager Pia Degerholm, Procurement Counsel Karolina Lehto, Category Manager Assistant Sanna Huhtala, Head of Unit Sami Tero Lehtisaari, Category Manager Sasu Seppälä, Customer Manager Marika Hilke Laitinen Customer Manager Ritva Huusko, Statistic Category Manager Timo Malmberg, Legal administrator Merja Leppänen, Senior Counsel Katja Mikkonen, Legal Counsel Minna Specialist Anne Majalampi, Head of Unit Olli- Eskola, Customer Manager Taina Maukonen Pekka Leskinen 9 Chief Executive Officer Anssi Pihkala, Chief Accountant Petri Nousiainen, Sourcing Marketing Manager Arja Muuri, Senior Consultant Tommi Nurmi, Head of Unit Mervi Specialist Jani Mäkinen, Legal Counsel Outi Olkinuora, ICT Specialist Niko Myllynen Jousi, Sourcing Consultant Juha Ståhl Communications Manager Thomas Sund, System Specialist Terhi Siitonen, Legal Counsel Sourcing Assistant Irmeli Kreander, Senior Ansa Nikander, Legal trainee Annukka Specialist Eero Korkeakoski, Assistant Käsnänen Controller Annika Hämäläinen 10 Head of Tendering Unit Ilkka Sihvola, Chief Senior Specialist Milja Virtanen, Sourcing Legal Counsel Eija Kontuniemi, Sourcing Consultant Tuomo Vuorinen, Category Consultant Mirke Turunen, Sourcing Manager Sari Ylipalo, Sourcing Consultant Consultant Olli Surakka Mirka Österberg Bookkeeper Lea Helppi, Category Manager Controller Heli Jokela, HR Manager Minna Pontus Grönholm, Senior Specialist Maare Hälvä, Senior Specialist Minna Isoherranen Heinikoski, Sourcing Consultant Kristian Hartikainen Senior Specialist Kari Mattsson, Chief IT Manager Mikko Saavalainen, Customer Category Officer Susanna Närvänen, Legal Advisor Mia Lindroos, Controller Anne Counsel Liisa Lehtomäki Saarnio, Legal Counsel Jukka-Pekka Salmela, Specialist in Marketing Communications Saana Salonen 11 Specialist Tero Dits, Customer Manager Panu Category Manager Mika Saarinen, Sourcing Kilpinen, Customer Advisor Anne Juslin, Legal Consultant Jussi Pyykkönen, Category Counsel Jukka Hämäläinen, Procurement Manager Jesse Ruotsalainen, Development Assistant Elina Somero, Chief Financial Officer Manager Timo Rantanen, Senior Specialist Kirsi Koivusaari Tuula Risikko Sourcing Consultant Petteri Pohto, Customer Relations Director Petri Kalavainen, Assistant to Chief Executive Officer Tiina Pietiläinen, Head of Unit Kalle Hietaranta 12 Operations of the central procurement unit Hansel Ltd is the central procurement unit of the Finnish Government. The objective of Hansel’s operations is to generate savings for the Finnish Government, by putting framework agreements for products and services out to tender.
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