Mint of Finland Annual Report 2009
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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.