Mint of Finland Ltd.’s annual report and the report of the Board of Directors 2009 ■■5 cent coins for Ireland. The Circu- lation Coins unit reached a new pro- duction record in 2009 with 1.3 billion coins. Read more on pages 16 –17.

Key figures

Turnover, 89 M€ Mint of Finland 96 M€, 2008 Group

Content Net profit of the 4 CEO’s review − financial year, 2.1 M€ Mint of Finland − 3.8 M€ , 2008 6 Brand reform Group 8 Internationality

12 Business environment in 2009

16 Circulation Coins Turnover, 18 Collector Items 39 M€ Mint of Finland 25 M€ , 2008 Ltd. 20 Employees

26 Environment

28 Future

32 Company management Net profit of the financial year, 35 Report of the Board of Directors + 0.3 M€ Mint of Finland − 3.0 M€ , 2008 37 Profit and Loss Statement Ltd.

38 Balance sheet

40 Cash flow statement

41 Notes to the financial statements Sickness absense, 46 Auditor’s report 5 . 1 % Mint of Finland bc. New coins issued in 2009 Ltd.

Delivery reliability, 9 2 . 6 % Mint of Finland Ltd. Key Mint of Finland figures in short

Mint of Finland Ltd. is the leading mint in Scandinavia and the Baltics. Its business is to design, market and mint money. Mint of Finland is The values of Mint of Finland owned by the Republic of Finland. are the following:

Mint of Finland Group comprises the 100% Trustworthiness: Mint of Finland is proud of its owned subsidiary ab Myntverket and the 50% reputation and will always deliver on promises. owned Mint of Norway Ltd., Nordic Moneta Ltd. Its reliability is based on know-how and on tak- and Mint of Finland Ltd. ing a long-term view in its thinking and actions. Mint of Finland Ltd. produces metal circu- lation coins, commemorative and special coins, Speed: Mint of Finland sees things clearly and sets of coins, medals, badges of honour and jew- quickly and acts fast. It is actively seeking new ellery. 2010 marks the 150th anniversary of the opportunities and works to identify them as soon Mint’s foundation by the order of Tsar Alexander as possible. It has efficiency at its core. II. During the jubilee year, Mint of Finland will is- sue five new commemorative coins, open an on- Courage: Mint of Finland dares to try new things line boutique, and in October, Finns can discov- and continue to develop. It has the courage to en- er how coins are minted at an exposition at the joy its success and learn from its failures. Mint Finnish Science Centre Heureka. For further de- of Finland never says “No!” categorically: it listens tails about jubilee year events, see our website at and thinks about what was said. www.mint.fi. Approachability: Mint of Finland is genuinely in- Mission: Mint of Finland gives value to money. terested in its customers and cares about them. It is not a hierarchical or an authoritatian institute. Vision: Mint of Finland is the most respected Mint of Finland listens and responds. mint in the world. Pride: Mint of Finland is positively proud of its Strategy: The core of Mint of Finland’s strategy know-how. It knows how to appreciate itself and consists of solid coin circulation and the minting others, and instills healthy respect among its of circulation coins. The core is supported by col- competitors. lector’s business activities, which have increased considerably. Mint of Finland is the leading Nor- dic manufacturer of medals and decorations. The reputation of Mint of Finland is built on satisfied customers, motivated employees and demonstrated excellence in design, technology and project management.

Annual Report 2009 – 3 CEO’s review Moving forward

●●President and CEO Maarit Aarni-Sirviö.

The year 2009 was marked by change have created new customer relationships in Afri- at Mint of Finland: this year, the ca, the Middle East and Latin America. Through company decided to find a new and these endeavours, we have put Mint of Finland a more dynamic way of operating. squarely on the map of minting companies around The changes we made will have far- the world. reaching effects well into the future. Collector Items Although the parent company Mint of Finland Ltd. The marketing of traditional collector and com- had a positive year in terms of its results and op- memorative coins is impacted by two factors: the eration, the financial result for the entire group markets are almost entirely domestic and the op- will be negative due to the downturn in the glo- erational environment is strictly regulated. bal economy. Financially, last year was still a good The weak domestic demand was remedied one for Mint of Finland. We set several significant somewhat by the success of new collector coins things in motion. in Russia and Asian countries, amongst others. The two sets of coins designed by Mint of Finland Circulation Coins themselves went on to show that there is room The growth in circulation coin business was the to create increased demand for collector coins most positive thing in 2009. The Circulation by becoming a more international company. The Coins business unit surpassed the forecast re- dollar-nominated coins were released on the Re- sults and their objectives for the year. Mint of public of the Fiji Islands. Finland minted 1.3 billion coins during the year. During 2009, organisational changes were The success was due to determined effort to be- made in the Collector Items business unit. The come a truly international company. new organisation, which now includes Gifts and The bidding for the business of internation- Decorations as part of Collector Items, became al Central banks between minting companies has active on January 1, 2010. intensified. There is a lot of spare minting capac- ity in Europe, which increases the competition for Subsidiaries prospective contracts. The ownership structure The global downturn is visible in the results for of minting companies varies a lot as well, which the Group, but the sharp decline in the domestic makes a difference in the competitive situation. demand for collector coins was a surprise. Turno- The concepts of margins and profitability vary ver fell at the subsidiary company Nordic Moneta greatly between different competitors. Ltd., which is in charge of the commemorative and Over the past year, we have formulated a clear collector coins. The subsidiary started several large picture of the global circulation coin business. We projects during the year, which weakened its abili-

4 – Mint of Finland Exports (as a percentage 6 8 % 71 % of the turnover)

Mint of Finland Group Mint of Finland Ltd.

ty to control sales and deliveries. Coupled with the 150-year-old name. With the name change, we global downturn and the decline in customer de- will need to think about who we are now and who mand, this reduced the results significantly. Nordic we want to be in the future. We are a Nordic en- Moneta Ltd. is at a crossroads and the coming year terprise that operates in a global marketplace and 2010 will bring changes for the company. we will rebuild ourselves accordingly. We want In Sweden at ab Myntverket no circulation our soul to be visible in our public image. This is coins were minted during the year 2009. Their why we have chosen a modern version of the he- operation was concentrated on the production of raldic Finnish lion to appear in our logo. medals made of precious metals and some export projects as well. Future At the Mint of Norway, the focus was on do- It is our goal to be the most respected minting mestic circulation coin production and export company globally within the next five years. On products. The main export products included the today’s increasingly competitive market, our suc- Mandela-medals and other medals associated cess will depend on our size, our know-how and with the Nobel Prize. our collective understanding of the business. We are big enough to handle large orders. Our em- Change ployees are motivated; our design is excellent; we We are looking for a competitive advantage operate modern equipment and our project man- through change in what is a very challenging agement is of the highest quality. We understand global marketplace. The change culminates in the needs of the customer, even those that are not a Workplace Development Programme-project. visible at a glance. During a project that lasts almost two years, Mint We are in a strong position for the coming year. of Finland is looking to establish a new culture Our customer base is stable and solid and it will of know-how and how-to. The project spans the continue to grow during the course of the year. entire company personnel. The most visible part The new markets gives us an opportunity to in- of the project during the year were the develop- crease the size of our operation further. mental discussions that took place with company We have several excellent projects underway in executives. During 2010, all Mint of Finland em- our Product Development division. We are open- ployees will take part in these developmental dis- ing our own web store in the spring. The store will cussions. The change is fundamental and without sell all of our products: commemorative and col- a doubt, it will be very challenging for the em- lector coins and jewellery. It is doubtful that the ployees as well as the company. store will increase our operations significantly Change is now also the new look of Mint of during the first year, but it does present us as a Finland. Mint of Finland goes back to using its modern, forward-thinking company.

Annual Report 2009 – 5 Brand reform Born as a Finnish company, Nordic by nature and international by design

995 1686 Mint of Sweden Mint of Norway begins its operations begins its operations

In 2009, Mint of Finland began business partners, customers and competitors? redesigning its brand. Due to the The strengths that are inherent at Mint of Fin- history of the company brand, land were brought to the fore of the brand strat- the Mint had not considered egy plan. Being Finnish and Nordic values were revamping its image in the past. used as the basis for positioning Mint of Finland and promising the added value it can provide as Mint of Finland was a department of the Minis- an international export company. Born in Finland, try of Finance until 1993. The move to the euro it grew to be a Nordic company, one that is now an took all the attention of the company in the 1990s, international operator in the minting industry. and the government-owned corporations did not The aim of reworking the brand was to gain a have time to reflect on image or brand matters. larger share of the market. Competition in Europe The situation changed along with the currency has been getting tougher year by year and there is change to euros, when Mint of Finland became an a lot of excess capacity as well. Many of the de- operator on the marketplace of international cir- veloping countries do not have proper circulation culation coins. coinage. This gives us an opportunity to signif- After the turn of the century, Mint of Finland icantly increase our business. The image is im- discovered that the company’s public image need- portant. The technical know-how that Mint of ed some attention and the brand’s image had to Finland possesses is of the highest internation- be reevaluated. Why does Mint of Finland exist? al standards. This fact will be brought to the fore What does it represent? How is it viewed by its even more than before.

6 – Mint of Finland ●●In 1918, the Finnish heraldic lion supplanted the double-headed eagle motif of Russia in the 5 penni coin for the first time.

1860 1918 1993 2000 2003 2010 Tsar Alexander Mint of Nordic 50% of the The Finnish II’s manifesto Finland is Moneta is shares of Mint State and Mint stated: their own incorporated founded of Norway of Finland currency and their are acquired have walked own mint by Mint of hand in hand Finland through their As part of the brand renewal, Mint of Finland 2001 shared history. has changed its logo and renewed its public ap- The ownership of Mint of pearance. The cornucopia depicted on the old lo- Sweden passes go was passed over for a modern lion to depict the on to Mint of nature of the Finnish minting company. The most Finland externally visible part of our new look is our web- site. Another sign of the change is the change of name. Mint of Finland has returned in Finland to company as well. It helps the employees to better its 150-year-old name Suomen Rahapaja. understand the change and to digest it. It shows what an important part everyone plays in the Mint of Finland a branded product building of our success. A change is taking place at Mint of Finland on With the brand renewal, Mint of Finland is now many different levels. The change of the brand is one of the forerunners in its field of business. The just a small part of the bigger picture. In the midst concept of a mint as a branded product has only of change, it is sometimes difficult to see where been applied recently to the field. one is headed and be sure that one is still going The new look of Mint of Finland was first pre- into the right direction. The concepts defined in sented internationally in 2010 at the World Mon- the brand help keep the company’s aim and goals ey Fair in Berlin. We received a very positive re- clear and visible to all concerned. This is why the sponse. Despite this, the work on our brand is brand remake has been so significant within the still very much in its infancy.

Annual Report 2009 – 7 Internationality The whole world as a marketplace

In recent years, Mint of Finland has Finland expanded its market area to cover the Mint of Finland Ltd. entire world. Following the current trend Average number of employees 101. of internationalisation, the Collector Items business unit is following in the footsteps Nordic Moneta Ltd. of the Circulation Coins business unit and Parent company ownership is starting to look for new markets for 50 %. The company sells and markets Mint of Finland’s nu- its commemorative and collector coins. mismatic product range in Finland as well as Sweden, The Circulation Coins business unit of Mint of Finland Denmark, Estonia, Latvia and is a well-respected operator on the international cir- Lithuania. culation coins marketplace. It has a reputation of qual- ity and trustworthiness. The reliability is also clear- ly visible in the production figures. The Circulation Sweden Coins business unit broke a new production record in Myntverket AB Mint of Sweden has been 2009, producing a whopping 1.3 billion coins. part of the Group since 2002. The developing countries are a very interesting The company is over a thou- market for the Circulation Coins business. A signifi- sand years old and steeped cant part of future growth of the business will be com- in tradition. ing from these countries. Mint of Finland has expe- Barbro Brunman rience in starting up the monetary systems they will Plant Manager need in the future. The next interesting step for the Myntverket AB circulation coins market in Europe is the expansion of “Mint of Sweden has over the eurozone to new member countries. thousand years of minting tra- dition. Despite our age, we Much like the Circulation Coins, the Collector have not remained where we Items business unit is actively engaging the interna- are. We continuously develop tional markets. Traditionally the best market area for the company, our produc- the commemorative and collector coins has been Fin- tion process, our products land. When minted as euro-nominated, commemora- and our employees. We are stronger together with Mint of tive and collector coins have also raised some interest Finland. Our customers reap among the European collector circles. Becoming inter- the benefits of the synergies national requires a diverse product portfolio. In 2009, created by our co-operation.” Mint of Finland released two dollar-nominated collec- tor coins that were created by the mint’s own design- ers for the Republic of the Fiji Islands. The new col- Becoming ourful coins received a lot of positive attention in the global collector coins marketplace. international The new products and market areas will start con- requires a diverse tributing to the company’s turnover in 2010. product portfolio.

8 – Mint of Finland Norway coins and sets of coins for Europe Africa Asia Mint of Norway Ltd both local and international 2 Mint of Finland manufactured a 4 Mint of Finland 9 Mint of Finland manufac- Mint of Norway produces customers and medals for the total of 226 million euro coins manufactured 47 million tured 980 million circulation both the circulation coins and Samlerhuset Group. Our 9 for both circulation in Finland 7 circulation coins for use in 8 coins for use in Asia. the commemorative and spe- cooperation with Mint of and for export. A total of 66 million Northern Africa. XXCirculation Coins, cial coins for use in Norway. It Finland shows promise for 2 million coins were manufac- XXCirculation Coins, pp. 16 –17 0 pp. 16 –17 has been part of Mint of Fin- the coming year as well. Our million tured for circulation in Europe, million Thailand land Group since 2003. joint department at the World outside of the eurozone. Daral Piruncharoen Money Fair in Berlin is an im- XXCirculation Coins, pp. 16 –17 Sales and Marketing Anne-Berit Løver portant forum for meeting and Manager Marketing Consultant networking with the people Grand PC Co., Ltd. Mint of Norway Ltd who work in this field – and Grand PC Company is the “Mint of Norway produces having fun together.” representative of Mint of Fin- land in Thailand. GPC’s busi- ness involves importing prod- ucts and services in both public and private sectors in Thailand. Daral Piruncharoen appreciates the technological know-how that Finland pos- sesses. Such knowhow is al- so high in Thailand as well - computers are Thailand’s principal export.

Australia Veronica McGuire Director Treasures of Oz “It is a pleasure to work with the Mint of Finland and to in- troduce their high quality col- lector coins to a broader au- dience internationally. Mint of Finland coins are now distrib- uted in China, the Asia Pacific and the United States and there is a strong focus on the development of new coin is- sues tailored to the require- ments of specific markets. With growing awareness and innovative new coin issues, the Mint of Finland is creating a striking impression on the Sweden Andorra Estonia Slovenia Latvia Georgia Armenia Thailand Vietnam Fiji Islands global coin market.” 1 krona 2009. Mint of Finland National Museum 100th anniversary Money of Water- Ilory St. George The 200th an- 1 baht. Produced 5000 dong coin. Mint of Finland al- “A wonderful also releases in- of Estonia of powered flight commemorative Church- niversary of out of the metal Produced out of so releases interna- story from a ternational com- 100 years- in Slovenia- coin, commemorative Khachatour of the withdrawn the metal of the tional commemora- country across memorative coins commemorative collector coin, LVL 1, silver. coin, GEL 10, Abovyan-com- 10 and 50 Finnish withdrawn Finn- tive coins issued by the sea.” Sweden issued by the coin, EEK 10, € 100, gold. silver. memorative coin, pence coins. ish mark coins. the Central Bank of 1809 – 2009 Central Bank of silver. AMS 10 000, XXEnvironment, XXEnvironment, the Fiji Islands. Finland. Andorra. gold. pp. 26 – 27 pp. 26 – 27 XXPp. 18 –19 Map: U.S. Department of the Interior, U.S. Geological Survey Map: U.S. Department of the Interior,

Annual report 2009 – 9 ■■The international company Mint of Finland has its roots in the Nordic landscape and the company's character reflects this. The Finnish nature has been a source of inspiration for the artists in case of both the circulation coins and in many of the commemorative coins as well. In the picture, Mustalam- pi in Nuuksio National Park in Finland.

Business environment in 2009 Work in the shadow of the recession

The financial crisis that begun two Business years ago continued as a recession challenges in 2009. The economic outlook The competition in the industry became a lot was gloomy and unemployment harder in the past year. There was a lot of compe- became a reality for more and tition for the orders from the Central banks. The more people. During the month of ownership base of the minting companies around February, Finland officially became Europe varies from privately owned to state con- part of the recession as the gross trolled, which makes a great deal of difference in domestic product decreased the competitive situation and the pricing of the for a second quarter running. bids for orders. There is a lot of excess capaci- ty in the marketplace, as it is undeveloped and regulated. The year in brief Both business units will be faced with a lot of in the business units challenges going forward. The competition is not At Mint of Finland, the difficult economical con- likely to decrease, so it is necessary to be more ditions were mostly felt by the Collector Items competitive than ever before. There are also no business unit, which mostly operates on the con- guarantees for a quick recovery of the economy. sumer markets. The impact was directly visible The business units will look for opportunities for in the results of the parent company as well as in growth abroad. The Circulation Coins business the subsidiary company Nordic Moneta Ltd. The unit has made a lot of progress in doing so al- consumers were economising and not buying col- ready and Collector Items business unit will fol- lector or commemorative coins. This resulted in low suit. a sharp decline in the turnover of Nordic Moneta Long-term investment in becoming more in- Ltd., which fell by one-third. ternational coupled with active marketing and However, 2009 was a year of significant growth sales activity helped create the record results for for the Circulation Coins business unit. The pro- the Circulation Coins business unit despite the duction volumes of circulation coins grew expo- global economic downturn. nentially in comparison to the previous year. They minted a record 1.3 billion coins during the year. Corporate policies The business unit has become more international, for the future which resulted in new customer relationships and Mint of Finland is looking to grow actively and its in large orders for the business. goal is to be the most respected company in its

12 – Mint of Finland Developing countries are a promising market area. The positive results and future growth will be achieved from those markets.

field globally in five years time. This will require and even the European market is not sufficient for excellence in all areas of the business; production sustained future growth. The business unit con- and design as well as marketing. tinues to develop the product portfolio to more An expansion beyond the borders of Europe closely meet the international demand. This will and into the developing markets is inevitable. The mean more interesting themes and products for developing countries are a very promising market the commemorative and collector coins to attract area. These markets promise positive results and customers. future growth. Becoming international sets the expectations The circulation coins market in Europe is a lot high for design. The concept of beauty varies more challenging. Many of our old customers have greatly depending on local culture. This means the reduced their order quantities due to the global artless and simple Nordic designs will not engage economic downturn. Excess capacity also makes the Asian audience. Diversity and multiple facets the competitive situation a lot harder in Europe. of demand for designs will also present the de- In addition, many of the expected projects from signer with more opportunities than before. H. C. the new eurozone countries have been experienc- Andersen and The Year of the Tiger 2010 collec- ing delays. tor coin series went on to show that the in-house The recession is also driving the Central banks design at Mint of Finland can appeal to consum- to look for savings. In many countries, coated ers in Russia and Asian countries. steel coins produced by Mint of Finland have re- Interest in precious metals coins in the East. placed the coins manufactured out of copper and When currency is volatile, the stable gold coin is nickel alloys. The savings offered by such coins a good choice for consumers. are significant. The webstore that is opening in the spring of One new change at Mint of Finland this year 2010 is a major investment in customer service. was the automated packaging of circulation coins. Until now, the collector coins have been sold by It allows the customer to define the method of our business partners. The ability to reinvent and packaging that best suits them. This project will rejuvenate one’s image is the greatest challenge continue during 2010. for the collector coins business in both distri- bution as well as design. If the planned success Collector Coins design materialises, 2010 will be a reasonably good year takes on the new markets for the collector coins business. The export side In the collector coins business, going internation- of the collector coins business is clearly growing, al is the only way forward. The domestic market thanks to the new market areas.

Annual Report 2009 – 13

■■In 2009, Mint of Finland produced 1.3 billion circulation coins. In the picture, coin billets minutes from being minted as coins. Circulation Coins 1.3 billion coins

The Circulation Coins business ers are now well known. This work will help cre- unit at Mint of Finland gave ate a solid base for years to come. everyone a positive surprise in 2009. The records of circulation Europe is not enough coin production were shattered in Developing markets present a significant oppor- volume, results and turnover as well. tunity for growth for the Circulation Coins busi- ness unit. Developing economies lack the pay- The new production record is quite impressive. ment structures we take for granted. If a coin is 1.3 billion coins were minted at Mint of Finland something new and exciting, one can only im- during the year. The billionth coin was minted on agine how long it will take until such countries Monday 5th November 2009. are ready for the world of card payments. Mint of The production record involves many factors, Finland has handled the euro exchange process in such as active sales and marketing, the reliability six European countries. It knows how to start up of deliveries and a well-planned process execution. a monetary system. The sale of circulation coins happens as It is necessary to see the entire world as a mar- projects and depends on when the sales take place. ket area in order to reach the objectives of the busi- It is very challenging to predict them. Financial ness. The markets on the old continent are limited matters are important to everyone, even on this and they are further hampered by excess capacity. scale. Reliability and security are important fac- Many national mints have planned their produc- tors, but nothing replaces a good customer re- tion capabilities so that they can handle the up- lationship. Large-scale circulation coin sales are coming national coin renewal. Needless to say, this very slow to materialise, and it often takes time will further increase competetion. The only mints to close on a deal. which can survive in this environment are the ones The circulation coin business is picking up the that are are large and strong. Customer relation- pace. Talk and willingness are not enough, if the ships must be handled with the utmost care. One actions do not deliver on the promises made. The must be a fast, reliable supplier and also offer the past year has proven that Mint of Finland is now customers the best available technical know-how. the world’s leading circulation coin seller. Mint of Finland is being routinely short-listed due to ac- Central banks tive marketing efforts when offers are requested tighten their belts by Central banks in many countries. Hard work During a recession, coins become currency again – has born its fruit: the global markets and its play- not just something you find in your jacket pocket

16 – Mint of Finland The markets on the old continent are limited and they are further hampered by excess capacity.

forced the Central banks to look for solutions that are more economical. Mint of Finland has been offering its custom- ers coins that are manufactured from cheaper raw materials. The small 1–5 cent coins look like they are made out of copper and nickel alloy, but they are actually made of coated steel. When the coin material is changed, the savings for Central banks is quite significant. This is an excellent competi- tive advantage.

Active now and in the future Economists agree that the economic situation in 2010 is not going to improve much over the previous year. Despite the recession, the circula- tion coin production of Mint of Finland contains ■■782 coins per minute, 46,920 coins per hour, promise for the future. A lot of work has gone in- 375,360 coins per work day and almost 1.9 million to future projects this year. This is a sign of con- coins per week. In 2009, Mint of Finland produced tinuance for the internationalisation process. 1.3 billion coins. There are a lot of countries in the world that do not have any circulation coins or a monetary sys- tem to speak of. This represents a wealth of op- portunity for us. Once the economy starts improving, there will every once in a while. The increased use of coins be work opportunities in Europe as well. Many as a method of payment is visible in the reduction projects of the new eurozone countries have been of demand for new coins. On the European mar- delayed. Mint of Finland has the knowledge and ket, many old customers have reduced the size of the skills to handle the transition to euros, once their orders, as the existing coinage is being uti- Estonia, the other Baltic states and Poland decide lised more effectively than before. New coins are to start using euros. The competition for these still required, but the tight financial situation has large projects, however, will be severe.

Annual Report 2009 – 17 Collector Items The economising collectors

The year for the Collector Items had its designed for the Asian market by Erkki Vainio ups and downs. On one hand, the reces- was released in the Fiji Islands as well. These two sion made domestic customers watch products are a gambit into a new kind of collec- their wallets. There was not enough tor coin production and on many levels, they are a money in their collective wallets to buy sign of things to come in the future. commemorative and collector coins as Traditionally the best market area for commem- they had previously done, which lead to orative coins has been Finland. When minted as a severe drop in the sales volumes of euro-nominated, they have also raised some inter- collector coins on the domestic mar- est among the European collectors. The mind of a ket. The biggest reason for the drop collector searches for completeness or the whole in in business, then, was the reduction something, be it cars, flowers, composers or sport- in private spending. However, the year themed collector coins. Distinct and well-defined brought other new things, like the drive themes will make the coin more interesting inter- to become more international. That, nationally. However, the domestic commemorative amongst other things, will help build a coins are nationally themed. There are two differ- base for future growth in this business. ent themes: significant events and prominent peo- ple. The first coin published this year in the new Much like the Circulation Coins, the Collector Items Ethical Commemorative Coins series with its glo- business unit moved on to the international mar- bally valid Peace and Security theme created a lot kets in 2009. It started to conquer the new markets more interest from foreign collectors than tradi- with a diverse product portfolio, not just with the tional commemorative coins have had in the past. equivalent of the domestic commemorative coins. The more eastern the location on the map, the Being national more impressive and flamboyant the coin. The in an international marketplace concept of beauty is culture-specific and subjec- Nationality is often clearly visible in the design. tive, and it is a good idea to listen to what the cus- The external appearance of the coins is subtle and tomers want. understated in the Finnish way. The Finnish com- The set of four colourful silver coins designed memorative coins often are the work of sculptors. by Mint of Finland in-house designer Juha Kauko Numismatists and other coin collectors will un- which depict the H. C. Andersen fairy tales was doubtedly recognise the unique style of the Finn- something completely new in style, a departure ish commemorative coin when they see it. from earlier designs. The coins were also not re- The Collector Coin Committee decides which leased in Finland, but in the Republic of the Fi- commemorative coins will go into production. It ji Islands. The Year of the Tiger 2010 silver coin operates according to the rules set by the Minis-

18 – Mint of Finland Much like the Circulation Coins, the Collector Items business moved on to the international markets. It acquired new customers from Russia, Asia, Australia and Argentina.

●●The H. C. Andersen-coin series designed by Juha Kauko has four partially coloured silver coins. In the picture is the Nightingale coin.

try of Finance. The committee usually makes the decisions about the commemorative coins to be minted for one year at a time. In 2009, four com- memorative coins were released. On the interna- tional markets, the competitors are able to release commemorative coins far into the future. Mint of Finland finds it challenging to be successful in the commemorative coins marketplace, as their oper- ations are regulated.

A good job is rewarded even in a recession The medals business slowed down during the re- cession. Medals are even more national than com- ●●The commemorative Peace and Security coin, memorative coins. In 2009 there were less medal se- which was designed by Tapio Kettunen, is the ries made and their production quantities were low. first coin issued in the new Ethical Commemo- The Gifts and Decorations business did manage to rative Coins series. improve its profitability, however. Decorations and badges were given out despite the recession. It looks like the coming year will be challeng- ing but also promising. Design and planning ahead will both play a crucial role in the years to come. Becoming international requires a diverse product portfolio. New products and new mar- ket areas will increase the company’s turnover in 2010 already. They will also increase the product margins and balance out the commemorative coin sales over the year. In April 2010, a significant move in the con- sumer markets was the opening of our own Mint of Finland webstore. It is unlikely to have a signif-

●●The Year of the Tiger 2010 commemorative icant impact on the company’s results in its first coin for the Asian market was designed by Erk- year of operation, but its importance is likely to ki Vainio. grow in the years to come.

Annual Report 2009 – 19 Employees The employees lived up to the production record and the change in the culture

In 2009 the employees of Mint of the amount of long serving employees the company Finland did a historically spectacular has and in the very low employee attrition rates. job. It minted over a billion coins during the year, almost four times Growing expectations more than the year before. A billion During the year, Mint of Finland had 84 permanent coins is not just a record figure or a employees and 16 personnel on fixed term contracts production record: it tells a story about on its payroll. The figures are virtually unchanged the professionals behind it, those who since last year. The year was labour-intensive, and have the skills to exceed expectations. large projects alway require more personnel, espe- This is a good way to define the cially on the production side of the business. The employees of Mint of Finland. shortfall was met with temporary personnel and with personnel on fixed-term contracts. In 2010, there was a culturally significant change in There were new employees both in production the company towards being more customer orient- and in administration. New posts were still not ed. At Mint of Finland, the first in-house collector created, but new employees came in to replace coin designs made it to production and sales. Our those who resigned or retired. own design in the H. C. Andersen and The Year of Mint of Finland is undergoing a major shift in the Tiger 2010 collector coin series appealed to the its culture to become a modern, competitive and consumer in Russia and in Asian countries. The flexible company. This change was put in motion change in the culture is immense and fundamental just over a year ago. Bottom-line thinking and and is asking a lot from our employees. customer orientation will be equally important What do the employees think of Mint of Fin- land as an employer? Reliable and stable, of course. ■■Packer Teemu ■■ Ribbonist Marianne Maybe a little bit unknown to outsiders, despite Antikainen prepares Vuorinen cuts and sews the fact it is a state-owned company. Minting the coin pallet to be the silk ribbon for a coins is always interesting; there is something covered in plastic. badge by hand. Once ready, the pallet special about it. is sent to a customer ■■Chief Quality Control Mint of Finland has made every effort to look abroad. Officer Miia Arkiomaa after its employees. There is much emphasis on measures the strength ■■Head Designer Erkki required for separat- wellbeing at work. The perquisites are clearly su- Vainio is checking the ing the parts of an euro perior to those of similar jobs elsewhere. The posi- plaster model of the coin consisting of two tive image of the employer can be clearly seen in Martti Ahtisaari medal. kinds of metals.

20 – Mint of Finland

The know-how of older employees is valued. New recruitment is aimed at creating a balance, where seasoned professionals transfer their knowledge on to the next generation.

on every rung of the ladder in the organisation curity matters. In the future the old employees going forward. The change is major and it may be will just be given an annual update on the sub- hard on employees in terms of their know-how jects, but the course will become part of the new and their ability to work, as the demands made of employee induction. them will be clearly increasing. The change is guided by a Workplace Devel- Sickness absense down opment Programme-funded rsa-project. In the The flip-side of having many long-serving em- name of the workplace development project, the ployees is that the average age of employees tends letter r stands for results, s for sure delivery and to be higher. The average age of Mint of Finland a for ability to work. These are the central themes employees is over 40. There is a steady supply within the success of the project. The sizeable of milestone birthday celebrations. Having said programme is geared towards moving on to the that, the know-how of older employees is highly next level in everything the company does. Being valued in the company. New recruitment aims at multi-skilled grows in importance, as does the creating a balance, where seasoned professionals ability to work together and be flexible. transfer their knowledge on to the younger mem- bers of staff. Everyone’s project The work in production is physical and hard. The project began in the autumn of 2008 with an The older employees have a greater tendency to employee study. The management team started feeling weary and other issues that affect their with the programme at the end of the year, and the ability to work. This is why the employees are en- entire workforce will participate in the programme couraged to do exercise and to otherwise look af- in stages. Thanks to the programme, in 2009 de- ter themselves. The employees also have a per- velopmental discussions took place with company sonal treatment insurance, which allows them to executives for the first time. In 2010, developmen- be treated immediately should a problem arise. tal discussions will be held with all personnel. There is an in-house gym, swimming pool and In addition to the rsa-project, there were a various group exercise classes to help employees number of smaller training projects underway in keep in shape. During the year, the employees have the company. The implementation and training had the opportunity to attend Weight Watcher on the erp system that was purchased the year meetings and exercise groups that concentrate on before continued throughout the year. The system the neck and back areas in-house. The employees tracks the production and stock levels, amongst have also been challenged to do exercise through other things, so almost every employee uses it. various competitive events. A company-wide exer- Every employee took part in the Mint Pass- cise day was held in the autumn at Nuuksio. Dur- port-training, which takes an exhaustive look in- ing the year the employees were also given vouch- to organisation, personnel, work and company se- ers to attend exercise classes and cultural events. These were quite popular among employees.

■■Mechanic Asko Kahra The investment in well-being at work is bear- is adjusting a Schuler ing its fruit. The sickness absenses fell below the stamping machine. industry average during the year.

Annual Report 2009 – 23 ■■ Nowadays many cen- tral banks require that tenders include a de- scription of the environ- mental issues caused by the circulation coin production. In the pic- ture, a stand of young white birch in Tuusula.

Environment Environmental matters became a competitive advantage

Mint of Finland received and the emissions caused by them. Metal coins an environmental certification will always be heavy to transport, so there must in the spring of 2009. be an effort to reduce the amount of emissions. The preparations for certification More economical packing is one way of achieving began at the end of the previous this. The size of the containers and the packaging year with environmental training method are of critical importance in this. Once for all employees. Learning new the containers are packed on pallets of the correct things takes time and also requires size, the volume of the containers can be utilised a change in attitudes as well. much more effectively. It preserves the environ- ment and saves on costs for all parties concerned. The environmental certificate iso 14001:2004 is Mint of Finland has three environmental ob- based on principle of continuous improvement. jectives: to improve the sorting of waste material, Mint of Finland has outlined its objectives and to reduce the use of packaging materials and to works actively to achieve them. The progress to- recycle all metals. wards meeting these objectives are monitored an- The sorting of waste is everyone’s responsibil- nually. For example, the percentage of waste recy- ity. The sorting has been made as easy as possible. cled in 2008 was 35, and it should be 40 in 2009. One way of doing that is colour coding. Happily, it seems that objective will be reached. Mint of Finland closely follows its legal obli- All metal gations. However, the company does not require is recycled an environmental permit as the authorities have The usage of packaging materials is being reduced deemed the emissions caused by the production by planning the packaging process better and by to be minimal. The only special requirement for recommending the best and most suitable pack- Mint of Finland is to monitor the metal content aging option for the customers. Many tenders re- of its waste waters. The waste emissions must re- quire that packaging materials be recyclable. main below the predefined levels. The levels are There are a lot of automated payment ma- monitored by means of quarterly sampling. chines used by the end customer around the world. These automated machines require a great Deliveries cause deal of small change. This is why today the coins the most emissions are increasingly packed in plastic bags, which are Most of the environmental effects caused by easy to empty into the automatic machines. Mint of Finland is connected with its deliveries Mint of Finland only used to recycled the metal

26 – Mint of Finland from withdrawn coins, but now the mixed metal ●●The coin metal is recycled many times. The like the packaging pallet binding bands and spray old marks of Finland were melted and minted into 5000 dong coins for use in Vietnam. cans are also recycled. It may seem like a small thing to do, but the mining and refining of new metals needlessly encumbers the environment. It makes more sense to recycle. tive advantage. The tenders from numerous cen- Mint of Finland has developed a system for tral banks require a detailed report on environ- utilising liquid metal waste. In the manufacturing mental management at the mint. process of silver commemorative coins, their sur- This report can be several pages long. It can be face releases metal into the acid bath. A compa- substituted by an environmental certification is- ny specialising in metal recycling precipitates the sued by a certifying institute which states that silver from the liquid and makes it usable again. the company complies with the requirements set The silver that is collected in this manner cov- in iso 14001:2004. The environmental system at ers the expense of its recycling and also makes a Mint of Finland covers the production of circula- small profit. This is a good example of an envi- tion coins and collector items at Vantaa. ronmental problem being turned into a small ad- The European central banks and mints co-op- vantage through a workable idea. erate in environmental matters by carrying out The coins that do not pass quality control are studies, amongst other things. In 2009, Mint of destroyed and delivered to the billet manufacturer Finland took part in a life span analysis of the en- for melting. In this way, the metal returns to pro- vironmental effects of coins and notes with an- duction as a new billet, where it will be minted as other central bank. There have also been discus- a coin again. For example, shortly after the change sions by the mint quality commission reporting to the euro was made, the withdrawn old marks of to the European Central Bank on adding new en- Finland were melted and minted into 5000 dong vironmental requirements to the existing euro coins for use in Vietnam. The 10 and 50 pence coin production obligations. coins of the Finnish mark period ended up as one There is no room for standing still when it baht coins in Thailand. comes to environmental matters. Customers have become more demanding and aware of the envi- Central banks and mints ronmental burden created by their orders. The ef- working together fect of changes by law or statute requires constant On international markets, the successful handling monitoring. The next major change takes place in of environmental matters has become a competi- 2011, when waste legislation will change.

Annual Report 2009 – 27 Future The coin will not relent

What do we really need In 2009, product development at Mint of Fin- coins for in the future? land concentrated on examining the possibili- Won’t all payments be handled ties of coins as something other than a method of with cards in five years time payment. At the end of the year, the company em- or by phone or by another method barked on a project in which eight Aalto Universi- yet unknown to us? ty students will examine the coin, its appearance and uses in ten years’ time. How can current meg- The coin found its shape and function quite a atrends such as ecologicality, globalisation, com- long time ago. Product development in that line of munality and individuality be translated in the business has been almost non-existent. Even the different uses of the coin and into its shapes and development of technology and materials has not materials? The results of the project will be pub- caused a great deal of changes to the coin. Now lished during the company’s jubilee year (2010). there are a lot of signs that indicate that a major change is imminent. The coin may end up serving A more valuable coin requires an entirely different function in the future. new security features Very soon after the move to the euro, debate be- What is the material gan over whether the two euro coin had too low a of the new coin? nominal value. Should the five euro note have been The coatings and material choices are central a coin after all? By now, the discussion has moved themes in the future product development of to the largest possible size for the coin with the the business line. Small coins are already being highest nominal value. When the five mark coin made out of steel and then coated with copper. with its image of an ice-breaker ship was released The coins still make the same tinkle as before but in 1973, its purchasing power was significant. If they are a little bit lighter. If the coin were was manufactured out of polymer plastic, it would be ■■Mint of Finland tests the properties very light to carry and it would not wear through of the coins they mint in many differ- ent ways. The machine in the picture a pocket or a bag. Coins could even be made out measures the strength required for of some sort of ceramic material. The choices are separating the parts of an euro coin many. consisting of two kinds of metals.

28 – Mint of Finland

The security feature must be unambiguous, cheap to make and be recognisable by both man and machine. In addition, it must be entirely reliable and must last for the entire lifespan of the coin.

adjusted to the current euro, its purchasing power as planned, the partners in co-operation have filed would be just over six euros. for patents and prototypes of the new prospec- At the discussion forum mdc (Mint Directors’ tive coins exist. As an example, the five euro coin Conference) which meets on biannual basis, the could be in use in a minimum of five years’ time. discussion now is on coins with a nominal value The security feature requires practical testing pri- of five euros, five sterling pounds and five dollars. or to the release of the five euro coin all over. Ten euro coins are still too large to contemplate. In Europe, the coin would require broad political The amount of coins approval before becoming a reality. But it is hard- is growing steadily ly a problem, once the largest obstacle has been The traditional coin has its champions. The coin overcome: the safety of the circulation coin. is a fast and effective method of payment in small The five euro coin must contain features that transactions. This is why it endures. A coin is permit authentication. The security feature must anonymous and the transaction leaves no trace. be unambiguous, cheap to make and be recog- People in the Nordic countries are enthusiastic nisable by both man and machine. In addition, it users of payment cards. When one moves further must be entirely reliable and it must last for the south, cash increases in importance. The number entire lifespan of the coin. of coins in Europe has increased steadily since 1955, There are several technical product development following the increase in the amount of payment projects underway at Mint of Finland where these transactions. Developing countries are only now security features are being researched. The devel- increasing their use of circulation coins. There is opmental work is a co-operative effort of techno- always someone in the world who needs coins. logical universities, research facilities and busi- Somewhat surprisingly, the coin has regained nesses in the field. The projects have progressed some of its value during the recession. When the economy slows down, the coin always be- comes a more acceptable method of payment in ■■In 2009 Mint of Finland acquired a the marketplace. This phenomena is visible right piece of machinery for quality con- trol purposes, which measures sev- now. Consumers have dug up the coins from their eral properties of the coin by photo- pockets into their wallets and are making use of graphing and analysing it. them. The coin will not relent.

Annual Report 2009 – 31 Company Management Group Board of Directors

Chairman of the Board 2009

Pentti Kivinen 1943, Lic. (Laws) ●● Finnish Fair Cooperative, Manag- ing Director ●● Other positions of trust: Founda- tion for Economic Education, Dep- uty Chairman of the Board, Central Chamber of Commerce, Member of the Board and Chairman of the Elections Committee, Foundation for Children’s Day, Chairman of the Board, National Foundation, Chair- man of the Board, Finnish National Opera, Member of the Board ●● Main work experience: Federa- tion of Finnish Wholesalers, Law- yer 1969– 71, Director 1971– 77, Rautakonttori Ltd., Managing Di- rector 1977– 84, Wholesalers Ltd., Chief Executive Office 1985– 92 Members ●● Mint of Finland Ltd., Chairman of the Board of the Board 2009–, Member of the Jukka Ohtola Board 2008– Hille Korhonen 1967, m.sc. (Econ.), cefa 1961, Lic. (Tech.) ●● Finnish Government Office, Ne- Deputy Chairman ●● Fiskars plc, Director, Production, gotiation Officer of the Board 2009 Logistics and Administration ●● Other positions of trust: Bore- ●● Other positions of trust: Nokia al Plant Breeding Ltd., Member of Harry Linnarinne Tyres plc, Member of the Board and the Board, Member of the Awards 1965, d.sc. (Econ.), m.sc. (Econ.) Member of Nominations and Re- Committee ●● Outotec plc, Director of Business wards Committee, Central Cham- ●● Main work experience: Finnish Development ber of Commerce, Member of Eco- Government Office, Department of ●● Other positions of trust: – nomic Delegation Committee Ownership Direction, Negotiating ●● Main work experience: Nokia plc, ●● Main work experience: Fiskars Officer 2007–, Ministry of Finance, various management roles (Finland, plc, Director 2008–, Iittala Group, Department of Ownership Policy, Poland) 1998– 2002, Manager Fin- Director 2003–, Nokia plc, various Chief Inspector 1997– 2007, vari- pro Asia (Japan) 2005– 07 management roles 1996–2003 ous roles in finance 1994– 96 ●● Mint of Finland Ltd., Deputy ●● Mint of Finland Ltd., Member of ●● Mint of Finland Ltd., Member of Chairman of the Board 2009– the Board 2008– the Board 2008–

32 – Mint of Finland ■■From left Hille Korhonen, Company Management Catharina Stackelberg- Hammaren, Harry Linnarinne, Executive Group Jukka Ohtola, Pentti Kivinen and Anssi Pihkala.

Anssi Pihkala 1963, Dr. (Pol.Sc.) ●● Hansel Ltd., Managing Director ●● Other positions of trust: kl- Kuntahankinnat Ltd., Member of the Board, Finnish Association of Purchasing and Logistics, Deputy Chairman of the Board ●● Main work experience: Han- sel Ltd., Director of Legal Matters 2003– 2005, Finnish Municipal As- sociation, Lawyer 1997– 2003, Koi- vuhovi Lawyers, Lawyer 1994– 97 ●● Mint of Finland Ltd., Member of the Board 2008–

Catharina Stackelberg- Maarit Aarni-Sirviö ■■From left Mika Hammaren Managing Director (President) Peippo, Juha 1970, m.sc. (Econ.) Ruskola, Matti ●● Marketing Clinic Ltd., Managing Paul Gustafsson Rastas, Maarit Director Executive Vice President Aarni-Sirviö, ●● Other positions of trust: Alma Paul Gustafsson Media plc, Member of the Board Juha Hörkkö and Juha ●● Main work experience: Coca- Chief Financial Officer Hörkkö. Cola Finland Ltd., Managing Di- rector 2003– 2004, Coca-Cola Matti Rastas Sweden Ltd., Managing Director Vice President, Circulation Coins 2002– 2003, Coca-Cola Finland Ltd., Managing Director 2000– 2002, Juha Ruskola Coca-Cola Nordic & Baltic Division, Vice President, Collector Items Marketing Director 2000, Coca- Cola Finland Ltd., Marketing Direc- Mika Peippo tor 1996– 2000, Sentra plc, Mar- Vice President, Gifts and Decorations keting Director 1994– 96 ●● Mint of Finland Ltd., Member of the Board 2004–

Annual Report 2009 – 33 ■■Despite the increasing- ly difficult economic situ- ation distinguished citi- zens were rewarded for their significant contribu- tions to a wider good. The plaster cast going into the foundry furnace will produce the neck chain decorations for the Grand Cross of the Order of the White Rose of Finland. Mint of Finland Ltd. Report of the Board of Directors

Business development and business risks (2008: −2 964 t€). As a result of its global mar- The competition on export markets will contin- keting efforts, the company started exporting to ue to intensify for both the circulation coins and the Russian market for the first time. A new pro- the collector items. The domestic market is un- duction record was reached in circulation coins. likely to grow very much, so global marketing and For the first time ever, over one billion coins were product development will be key success factors minted during the year (1.3 billion). in the future. The price of metal continued to fluctuate Investments throughout the period. This volatility is expect- The Group’s net investments into tangible and ed to continue in the future. The company is pre- intangible assets was 1.6 million euros. paring for this eventuality through purchasing agreements. Changes in the Group structure There has been no changes in the Group structure Financial result during the financial year. Group net revenue fell by 7% in comparison to the previous year, totalling 89.4 m€. An operating Employees loss of 3.9 m€, or −4.4% of net revenue (−1.8 m€ During the year, Mint of Finland Ltd. employed or −1.9% of net revenue), was recorded. The con- an average of 257 persons (268), of which 158 solidated operating loss for the period came to (160) worked in Finland. At the end of the year, 2.1 m€, or −2.3% of net revenue (−3.8 m€ or −3.9% the Group had 248 employees. The salaries and of net revenue). The financial results of the Group bonuses paid during the year totalled 14.4 m€ were heavily impacted by the clear drop in con- (15.3 m€). sumer demand caused by the recession. The net revenues of Nordic Moneta were Organisation 40.1 m€ (60.3 m€), clearly under budget and re- Maarit Aarni-Sirviö was the President and ceo. sulting in an annual loss. This was caused by the Until the agm held on April 29, 2009, the recession, the updating of it and logistical sys- Board of Directors was comprised of the following tems and a change in the operating environment members: Raimo Sailas (Chairman), Pentti Kivin- from direct sales to internet sales. en, Hille Korhonen, Jukka Ohtola, Anssi Pihkala The net revenues of the parent company Mint and Catharina Stackelberg-Hammaren. After the of Finland increased to 38.6 m€ (2008: 25.0 m€). agm, the Board of Directors was comprised of the Profits during the operating year totalled €290 t€ following members: Pentti Kivinen (Chairman),

Report of the Board of Directors 2009 – 35 Harry Linnarinne, Hille Korhonen, Jukka Ohtola, much; an economic recovery would have a signif- Anssi Pihkala and Catharina Stackelberg-Ham- icant impact on the demand for collector items. maren. The company has been audited by Tuokko The competition in the circulation coins market Tilintarkastus Ltd. and the principal auditor was will intensify further, markedly weakening the Timo Tuokko Authorised Public Accountant. relative profitability. Mint of Finland celebrates its 150th anniver- The outlook for 2010 sary in 2010. In honour of this, a golden ‘Finnish According to the strategy approved by the Board currency 150 years’ collector coin will be minted of Directors, it is the aim of Mint of Finland to in April and in the autumn of 2010, an exhibition become one of the largest mints in Europe for cir- will be held at the Finnish Science Centre Heu- culation coin production, whose success is based reka. Mint of Finland will open a web store in the on the following: spring of 2010. During the year the strategic product develop- ●● efficient production ment projects, such as the modelling of tools and ●● strategical marketing knowledge manufacturing of precious metal products, will ●● co-operation / shared ownership continue. There are two ongoing projects aimed at schemes with the coin billet supplier developing the security features of coins as well. ●● continuous product development. Investments in product development will remain The company aims to be the forerunner in the at the levels of 2009. design and technology of commemorative coins. The awards products are being developed into a The Board of Directors’ proposal profitable business by investing in products with for the distribution of retained earnings a higher margin. The Board of Directors proposes that no divi- The Group turnover is expected in increase a dend be distributed and the profit for the peri- little from the levels reached in 2009. The eco- od of (€ 289,989.85) be transferred into retained nomical conditions are not expected to improve earnings.

Key ratios for years 2005–2009

2009 2008 2007 2006 2005

Mint of Turnover (€1,000) 89,378 96,035 120,507 122,243 104,962 Finland Operating profit-% − 4.4 % − 1.9 % 4.0 % 9.0 % 5.5 % Group Return on capital invested − 5.4 % − 2.3 % 5.4 % 12.0 % 6.5 % Equity ratio 71.6 % 73.0 % 70.3 % 64.4 % 65.5 % Avg. number of employees 257 268 263 247 233

Mint of Turnover (€1,000) 38,554 24,981 36,688 42,857 20,776 Finland Operating profit-% − 0.5 % − 23.4 % − 12.8 % 3.3 % 10.4 % Ltd. Return on capital invested − 0.3 % − 10.4 % − 7.9 % 2.4 % 2.6 % Equity ratio 90.6 % 94.6 % 94.9 % 90.1 % 95.5 % Avg. number of employees 101 97 89 95 64

36 – Mint of Finland Profit and loss statement

1.1.– 31.12. 1.1.− 31.12. Thousand, euros 2009 2008

Mint of Turnover 89,378 96,035 Finland Increase in stock of finished and non-finished goods +/− 544 1,209 Group Other operating income 910 331 Raw materials and services − 58,799 − 63,541 Employee costs − 14,401 − 15,323 Depreciation − 1,222 − 1,473 Other operating expenses − 20,306 − 19,073

Operating profit − 3,895 − 1,836 Financial income and expenses − 193 382

Profit before appropriations and taxes − 4,088 − 1,454 Extraordinary items 259 451

Profit before appropriations and taxes − 3,830 − 1,003 Income taxes − 2 9 − 1,166 Minority interest 1,787 − 1,586

Net profit of the financial year − 2,072 − 3,755

Mint of Turnover 38,554 24,981 Finland Increase in stock of finished and non-finished goods +/− 449 1,264 Ltd. Other operating income 1,220 365 Raw materials and services − 30,432 − 22,128 Employee costs − 5,956 − 5,603 Depreciation − 747 − 858 Other operating expenses − 3,270 − 3,868

Operating profit − 183 − 5,848 Financial income and expenses 164 2,819 Extraordinary income 310 0

Profit before appropriations and taxes 290 − 3,028 Appropriations 0 64 Income taxes 0 0

Net profit of the financial year 290 − 2,964

Financial Statements 2009 – 37 Balance sheet

31.12. 31.12. Thousand euros 2009 2008

Mint of Assets Fixed assets and other long-term investments Finland Intangible assets 967 536 Group Tangible assets 3,993 3,958 Investments 15 15 Total 4,974 4,510

Inventories and financial assets Inventories 23,358 21,586 Long-term receivables 1,292 1,020 Current receivables 13,766 13,379 Cash in hand and at banks 28,143 31,771 Total 66,560 67,757

Total assets 71,534 72,267

Liabilities Shareholders’ equity Share capital 5,000 5,000 Share premium reserve 6,448 6,448 Reserve fund 199 188 Retained earnings 41,660 44,846 Net profit of the financial year − 2,072 − 3,755 Shareholders’ equity, total 51,235 52,726

Minority interest 7,697 9,075

Liabilities Long-term liabilities 861 1,134 Short-term liabilities 11,742 9,332 Total 12,603 10,466

Total liabilities 71,534 72,267

38 – Mint of Finland 31.12. 31.12. Thousand euros 2009 2008

Mint of Assets Fixed assets and other long-term investments Finland Intangible assets 320 371 Ltd. Tangible assets 1,412 1,697 Advance payments 570 58 Investments 10,696 11,232 Total 12,997 13,358

Inventories and financial assets Inventories 14,057 14,031 Long-term receivables 0 0 Current receivables 7,081 2,686 Cash in hand and at banks 22,385 23,736 Total 43,523 40,454

Total assets 56,521 53,812

Liabilities Shareholders’ equity Share capital 5,000 5,000 Share premium reserve 6,448 6,448 Retained earnings 39,481 42,445 Net profit of the financial year 290 − 2,964 Shareholders’ equity, total 51,219 50,929

Appropriations Depreciation difference 44 0

Liabilities Long-term liabilities 0 0 Short-term liabilities 5,258 2,883

Total liabilities 56,521 53,812

Financial Statements 2009 – 39 Cash flow statement Mint of Finland Mint of Finland Group Ltd.

1.1.– 31.12. 1.1.– 31.12. 1.1.– 31.12. 1.1.– 31.12. Thousand euros 2009 2008 2009 2008

Net cash flow Operating profit − 3,895 − 1,836 − 183 − 5,848 from operating Adjustments 1,209 2,245 714 858 activities Change in working capital 66 3,371 − 1,822 2,706 Interest paid and other expenses − 356 − 304 − 1,756 − 1,133 Dividends received 0 0 453 3,159 Interest received 258 1,172 1,458 793 Other financial items − 7 0 − 2,575 0 0 Income taxes paid 868 − 2,531 0 0 Net cash flow from operating activities − 1,922 − 458 − 1,136 535

Net cash Investments in intangible used in and tangible assets − 1,587 − 1,736 − 780 − 626 investing Proceeds from the sale of 152 766 34 63 activities intangible and tangible assets Loans granted 0 0 0 0 Other investments 0 − 8 1 0 Payment of loan receivables 0 0 0 0 Proceeds from the sale of other assets 0 4 0 671 Interest received from investments 1 0 0 0 Net cash used in investing activities − 1,434 − 974 − 745 109

Net cash Repayment of short-term loans 0 0 0 0 used in Drawing of long-term loans 0 132 0 0 financing activities Repayment of long-term loans − 273 − 609 0 0 Dividends paid 0 − 3,800 0 − 1,800 Received and paid Group contributions 0 0 0 0 Net cash used in financing activities − 273 − 4,277 0 − 1,800

Change in cash and cash equivalents − 3,628 − 5,709 − 1,882 − 1,156 Cash received from a merger 0 0 531 0 Cash and cash equivalents Jan. 1st 31,771 37,480 23,736 24,892 Cash and cash equivalents Dec. 31st 28,143 31,771 22,385 23,736

Change in working capital Increase/decrease in trade and − 383 5,975 − 4,395 4,116 other receivables +/− Increase/decrease in stocks +/− − 1,297 − 351 199 − 1,347 Increase/decrease in trade and 1,745 − 2,252 2,375 − 6 4 other payables +/− 66 3,371 − 1,822 2,706

40 – Mint of Finland Notes to the financial statements

Principles for preparing the Valuation of inventories consolidated financial statements Inventories are valued according to the fifo prin- The consolidated financial statements, which in- ciple at their acquisition cost, or the replacement clude all the group companies, have been prepared value – which is lower than the acquisition value using the acquisition cost method. The difference – or the net realisable value. Variable costs have between the subsidiaries’ acquisition cost and been included in the inventory value. equity at the time of acquisition is presented as consolidated goodwill and Group reserve without Cash in hand and at banks allocating them to the subsidiaries’ assets. Con- Cash in hand and at banks include liquid assets, solidated goodwill and Group reserve have been bank balances and short-term deposit for less offset. Intra-Group transactions and margins than three months. have been eliminated. The profit and loss accounts of Group’s com- Currency items panies outside the eurozone have been converted Receivables and liabilities not originally in euros into euros according to the financial year’s aver- have been converted to euros in accordance with age exchange rate, and their balance sheets ac- the average rate of the European Central Bank on cording to the exchange rate on the closing date. the closing date of the accounting period. Euro conversion differences are incorporated into retained earnings. Pensions The figures of the Nordic Moneta sub-group The pension coverage for the personnel of the have not yet been confirmed by the Board. Group’s companies has been handled through ex- ternal pension companies. The pension expens- Tangible and intangible assets es will be incurred during the year of accumula- and depreciation tion. The pension expenses for the personnel of Tangible and intangible assets are stated at their the Norwegian subsidiary (31 persons) and the historical cost less planned depreciation. Planned expenses that are incurred during the accounting depreciation is calculated on a straight-line basis period are based on the estimates of the actuary. to write off the costs of the assets over their ex- pected useful lives. Deferred taxes Depreciation periods are: Deferred tax liabilities or assets are calculated on ●● Intangible assets and the temporary differences between their carry- other expenses with long- ing amount and the tax base, using the tax base term effect 3– 5 years for subsequent years confirmed on the balance ●● Goodwill 5 years sheet date. The balance sheet includes deferred ●● Consolidated goodwill 5 years tax liabilities in their entirety and deferred tax as- ●● Buildings 25 years sets based on their estimated, probable amounts. ●● Production machinery 3– 10 years Group income tax assets and liabilities are pre- ●● Equipment 3– 5 years sented as separate items in the balance sheet.

Financial Statements 2009 – 41 Notes to the financial statements

Thousand euros 2009 2008

1. Net sales by Finland 25,854 31,374 market area Other eu countries 34,455 46,137 Non-eu countries 29,069 18,523 Total 89,378 96,035

2. Materials Raw materials and supplies and services Purchases during the financial year 48,724 54,095 Change in inventories 1,097 269 49,820 54,363

External services 8,979 9,178

Total 58,799 63,541

3. Employees Number of employees during the financial year Executives 172 182 Workers 85 86 Total 257 268

Employee costs Salaries and bonuses 11,516 12,250 Pension costs 1,699 1,673 Other indirect employee costs 1,186 1,400 Total 14,401 15,323

4. Depreciation Depreciation according to plan tangible and intangible assets 1,222 1,473 Specification of depreciation by balance sheet item included under fixed assets.

5. Financial Interest and financial income 1,943 1,849 income and Interest expenses and other financial expenses − 2,136 − 1,467 expenses Total − 193 382

Interest and financial expenses includes exchange rate gains (net) − 386 − 406

6. Extra­ Change in tax periodizing fund 259 451 ordinary items

42 – Mint of Finland Thousand euros 2009 2008

7. Income taxes Income taxes on ordinary operations 109 926 Change in deferred taxes 80 − 239 Income taxes total 29 1,166

Intangible Intangible Consolidated Other long- 8. Assets assets rights Goodwill goodwill term exp. Total

Acquisition cost Jan. 1, 2009 1,208 19,924 1,150 1,291 23,573 Exchange rate gains/losses +/− 46 1,469 − − 1,515 Gains 38 − − 582 620 Losses − − − − 0 Acquisition cost Dec. 31, 2009 1,292 21,393 1,150 1,874 25,708

Accumulated depreciation Jan. 1, 2009 1,100 19,822 1,075 1,040 23,037 Exchange rate gains/losses +/− 45 1,446 − 14 1,506 Accumulated depreciation − − − − 0 Depreciation of the 60 35 19 83 198 financial year Accumulated depreciation Dec. 31, 2009 1,205 21,303 1,094 1,138 24,741

Book value Dec. 31, 2009 86 89 56 735 967

Tangible Real Machinery & Invest­ assets Estate Buildings equipment Total ments

Acquisition cost Jan. 1, 2009 366 1,576 17,390 19,332 15 Exchange rate gains/losses +/− 28 132 605 765 − Gains − 49 933 982 − Losses − − 149 149 − 1 Acquisition cost Dec. 31, 2009 394 1,756 18,780 20,930 15

Accumulated depreciation Jan. 1, 2009 − 376 14,998 15,374 − Exchange rate gains/losses +/− − 46 467 513 − Accumulated depreciation − − − 2 7 − 2 7 − Depreciation of the − 71 953 1,024 − financial year Accumulated depreciation Dec. 31, 2009 − 493 16,444 16,938 −

Book value Dec. 31, 2009 394 1,263 2,335 3,993 15

Financial Statements 2009 – 43 Notes to the financial statements

Group and parent company Domicile ownership-% and country

9. Group Companies owned by the companies parent company: Oy Nordic Moneta Ab 50 Vantaa, Finland ab Myntverket 100 Eskilstuna, Sweden Det Norske Myntverket as 50 Kongsberg, Norway Kiinteistö Oy Äkäsloiste 55. 7 8 Kolari, Finland Insnia ab 100 Eskilstuna, Sweden Beremal Oy 100 Helsinki, Finland

Companies owned by subsidiary ventures: Mynthuset Sverige ab 100 Malmö, Sweden Mønthuset Danmark as 100 Copenhagen, Denmark Eesti Mundiari oü 100 Tallinn, Estonia Latvijas Monétu Nams sia 100 Riga, Latvia Nordic Coin ab 100 Eskilstuna, Sweden Monetu Namai 100 Vilnius, Lithuania

Thousand euros 2009 2008

10. Inventories Raw materials and supplies 11,507 12,011 Unfinished goods/products 928 1,767 Finished goods/products 9,449 6,954 Advance payments 1,474 854 Total 23,358 21,586

11. Receivables Long-term receivables Pension fund receivables 933 670 Deferred tax assets 359 351 Total 1,292 1 020

Current receivables Trade receivables 12,569 10,388 Income tax receivables 144 377 vat receivable 362 1,041 Accrued income and prepaid expenses 691 1,573 Total 13,766 13,379

44 – Mint of Finland Thousand euros 2009 2008

12. Share­ Share capital Jan. 1 and Dec. 31 5,000 5,000 holders’ equity Share premium reserve Jan. 1 6,448 6,448 Transfers from retained earnings 0 0 Transfers to reserve fund 0 0 Share premium reserve Dec. 31 6,448 6,448

Reserve fund Dec. 1 188 216 Transfers from retained earnings 0 0 Transfers from share premium reserve 0 0 Translation differences 11 − 2 8 Reserve fund Dec. 31 199 188

Retained earnings Dec. 1 41,090 47,828 Transfers to share 0 0 Translation differences 570 − 1,182 Distribution of dividends 0 − 1,800 Retained earnings Dec. 31 41,660 44,846

Net profit of the financial year − 2,072 − 3,755

Shareholders’ equity, total 51,235 52,726 Distributable shareholders’ equity 39,588 41,090

13. Deferred Deferred tax assets tax assets From timing differences 304 261 and liabilities From consolidation entries 55 90

Deferred tax liabilities Appropriations 11 11

14. Liabilities Long-term liabilities Deferred tax liabilities 11 11 Tax liabilities due to timing differences 782 990 Long-term debts 68 132 Total 861 1,134

Short-term liabilities Repayment of long-term loans 0 0 Advances received 2,156 918 Trade payables 4,017 4,172 Other short-term liabilities 971 236 Income tax liabilities 126 − 539 Other accrued liabilities 4,472 4,545 Total 11,742 9,332

Financial Statements 2009 – 45 To Mint of Finland Ltd.’s Annual General Meeting Auditor’s report

We have audited Mint of Finland’s accounting, fi- be this due to error or fraud. In planning said au- nancial statements, Board of Directors’ report and diting procedures, the auditor also evaluates the administration for January 1– December 31, 2009. internal control of the preparation of the Finan- The financial statements comprise the Consoli- cial Statements and their presentation. Further- dated and Parent Company Balance Sheet, the more, the overall presentation of the Financial Consolidated and Parent Company Profit and Statements and Board of Directors’ report, the ac- Loss Account, the Cash Flow Statement and the counting principles applied and any significant es- Notes to the Financial Statements. timates made by management are evaluated. The Board of Directors and the President and This audit was performed in accordance with ceo are responsible for the preparation of the fi- good auditing practise in Finland. We believe that nancial statements and the Board of Directors’ re- the auditing procedures we have applied provide a port, and for ensuring their fair presentation of the sufficient basis for the opinion we express herein. required information in accordance with the laws and regulations in force in Finland. The Board of Opinion Directors is responsible for the due arrangement We hereby submit our opinion that the Financial of the control of the company’s accounts and fi- Statements and Board of Directors’ report, which nancial administration, and the President and ceo presents a profit for the period of 289,989.85 € for ensuring that the company’s accounting is in for the parent company and a consolidated loss of accordance with the law and that its financial af- € 2,071,966, give a fair and true statement of the fi- fairs are organised in a reliable manner. nancial performance and position of the group and The auditor is entrusted with performing the parent company, as per the rules and regulations audit according to good accounting practises ap- pertaining to the preparation of financial statements plicable in Finland and issuing its opinion, on the and board of directors’ reports in Finland. The infor- basis of the said audit of the Financial Statements, mation contained in the Board of Directors’ report is Consolidated Financial Statements and Board of consistent with that in the Financial Statements. Directors’ report. In this respect, good auditing We recommend that the Financial Statement and practises presuppose the following of the relevant the Consolidated Financial Statement be adopted. ethical principles and the planning and perform- The proposal by the Board of Directors regarding ance of the audit in such a manner as to obtain the use of the profit shown on the balance sheet is reasonable assurance that the Financial State- in compliance with the Limited Liability Compa- ments and Board of Directors’ report are free of nies Act. We recommend that the members of the any material misstatement and that the members Board of Directors and well as the President and of the parent company’s Board of Directors and ceo of the parent company should be discharged the President and ceo have acted in accordance from liability for the financial period audited by us. with the Limited Liability Companies Act. Through the auditing procedure, the accuracy of Helsinki, 26th March 2010 the figures and information given in the Financial Tuokko Tilintarkastus Ltd. Statements and Board of Directors’ report must Authorised Public Accountants be verified. Said auditing procedures are adopted based on the auditor’s professional judgment and his/her assessment of the risk that the final -ac Timo Tuokko counts are subject to any material misstatement, Authorised Public Accountant

46 – Mint of Finland Commemorative and collector coins New coins issued in 2009

200 years of the Diet of Porvoo collector coin Nominal value €100 Diameter 22.0 mm Metal Au 917 Weight 6.78 g Year stamp 2009 Mintage proof 7 500 Designer Reijo Paavilainen Issued 27.3.2009 Country Finland

Fredrik Pacius – 200 years collector coin Nominal value €10 Diameter 38.6 mm Metal Ag 925 Weight 25.5 g Year stamp 2009 Mintage proof 28 000 BU 7 000 Designer Pertti Mäkinen Issued 6.2.2009 Country Finland

EMU 10 years Peace and security €2 commemorative coin collector coin Nominal value €2 Nominal value €20 Diameter 25.75 mm Diameter 38.61 mm Metal base metal Metal Ag 925 Weight 8.5 g Weight 33.62 g Year stamp 2009 Year stamp 2009 Mintage proof 25 000 Mintage proof 11 500 Designer George BU 3 500 Stamatopoulos Designer Tapio Kettunen Issued 15.1.2009 Issued 19.8.2009 Country Finland Country Finland

1809, a crucial year Council of State – 200 years €2 commemorative coin collector coin Nominal value €2 Nominal value €10 Diameter 25.75 mm Diameter 38.6 mm Metal base metal Metal Ag 925 Weight 8.5 g Weight 25.5 g Year stamp 2009 Year stamp 2009 Mintage proof 25 000 Mintage proof 15 000 Designer Reijo BU 5 000 Paavilainen Designer Reijo Issued 23.10.2009 Paavilainen Country Finland Issued 2.10.2009 Country Finland

www.mint.fi Mint of Finland Group

Mint of Finland Ltd Det Norske Myntverket AS po box 100 (Turvalaaksontie 1) Postboks 53 (Hyttegaten 1) FI-01741 Vantaa 3602 Kongsberg Finland Norge tel. +358 9 894 31 tel. +47 32 299 530 fax +358 9 898 274 fax +47 32 299 550 www.mint.fi www.myntverket.no

AB Myntverket Oy Nordic Moneta AB Box 401 (Smedjegatan 19) Valimotie 16 63106 Eskilstuna FI-00380 Helsinki Sverige Finland tel. +46 16 428 100 tel. 010 808 040 fax +46 16 428 120 fax (09) 241 9683 www.myntverket.se www.rahapajamoneta.fi