As a government-owned company, Finnish Industry Investment has a special mandate and follows the Finnish government's ownership steering policies in its operations. The policy objectives are based on the best possible overall social and economic result, which is primarily evaluated on the basis of how the company achieves its service mission and the costs that this incurs. The government's ownership steering policy focuses on increasing ownership value in a sustainable and responsible manner, taking all stakeholders into account.
FII's operations must be profitable over the long-term, meaning that the real value of the capital invested in the company must increase. FII’s operations have been profitable when reviewed over the whole period of operation.
Over the whole 17 years of operation, FII has posted profits after taxes amounting to €184 million and losses totalling €71 million. The cumulative total of €470 million of investments in FII by the Finnish government has grown into €575 million in shareholders’ equity. Calculated over the whole period of operation, the average return on investment to the government has remained above the set target, at approx. 3.5%. The continuity and growth of investment operations have been secured with governmental equity investments as well as with financing from the company’s own income.
Continuity and growth of investment activities
|Group's investments and commitments, m€||718.60||669.90||666.90||603.30||559.40||459.30|
|Portfolio companies, directly and through funds||510.00||486.00||480.00||462.00||438.00||438.00|
|Consolidated profit/loss, m€||7.30||-12.60||-6.20||-11.60||-23.80||48.10|
|New commitments during financial year||57.10||78.00||105.80||64.60||152.10||180.90|
|Governmental equity investments in FII, since 1995||470.00||420.00||420.00||420||269.80||269.80|
Finnish Industry Investment's direct economic impacts comprise direct investments and capital calls paid to portfolio companies and funds, payments to suppliers of goods and services, personnel expenses, taxes paid and investments. FII also makes small donations to charitable bodies. The direct economic impacts on stakeholders are illustrated in the table.
|Capital flows by stakeholder group, € thousands|
|Portfolio companies||Direct investments paid||-24,610.95||-48,036.28||-52,637.49|
|Repayments of direct investments and sales proceeds||7,593.51||11,998.21||3,553.12|
|Portfolio funds||Capital calls paid to funds||-57,512.72||-57,955.53||-60,427.22|
|Repayments of principle and profit shares from funds||28,597.91||40,992.26||28,078.23|
|Suppliers of goods and services||Other operating expenses||-2,326.95||-2,515.68||-2,460.97|
|Personnel||Salaries and fees||2,800.24||-2,374.34||-2,386.04|
|Other personnel expenses||118.06||-113.96||-110.05|
|Personnel expenses, total||3.39||-2,913.49||-2,885.57|
|Public sector||Direct taxes||0.00||-519.31||20.20|
|Charitable bodies||Donations given||-2.10||-1.90||-4.34|
|Shareholders||Dividends paid to owners||0.00||0.00||0.00|
|Investments||Investments in tangible and intangible assets||-649.72||-66.89||0.00|