Mint of Finland Ltd

Report of the Board of Directors

Operating environment

Mint of Finland is one of the world’s leading mints in terms of exports. The company manufactures circulation and commemorative coins, and blanks. Most of the company’s production is exported. In 2017, Mint of Finland’s most important market areas were Africa, South America and Asia. Customers are largely central banks and mints in different countries worldwide.

Most of the company’s business is of a project nature based on non-recurring or multiannual agreements. Mint of Finland Group comprises the companies in Finland and Germany, and the Spanish blank manufacturer Compañía Europea de Cospeles S.A. (CECO SA), in which Mint of Finland and Fábrica Nacional de Moneda y Timbre-Real Casa de la Moneda (Royal Mint of Spain) each have a 50% holding.

New different means of payment are constantly increasing and this has led to a need to examine cash from a new perspective. The company must carefully monitor this perspective and its potential implications on future operations. The company also actively strives to develop new business and new business models such as in the service sector. Nevertheless, cash has, to date, retained its position well, especially in small transactions, which continue to account for a significant share of transactions worldwide.


Consolidated revenue was up significantly year on year and amounted to €85.0m (2016: €66.6m). EBITA continued to be positive. The Group posted a loss of €1.9m,which equates to -2.2% of revenue (2016: -€1.6m, -2.5% of revenue).The Group's result for the accounting period was -€2.3m, which equates to -2.7% of revenue (2016: -€2.2m, -3.3% of revenue). The Group’s result for the accounting period includes no non-recurring costs.

The blank business picked up significantly compared to 2016 and profitability was at a satisfactory level. The capacity utilisation rate in blank production was good. The blank business showed growth particularly in the Asian market.

In the circulation coins business, volumes grew compared to 2016, but profitability proved challenging. The capacity utilisation rate in circulation coin production centred around the first half of the year. Fluctuation in capacity utilisation reflects the cyclical nature of the industry, which is a result of central banks’ purchasing cycles.

Sales in the commemorative coin business picked up owing to the interest triggered by Finland’s centennial year. Profitability of commemorative coin products is at a satisfactory level.


Balance sheet and cash flow

Consolidated assets at year-end 2017 were €59.4m (2016: €64.8m). ). Cash and cash equivalents grew by €0.1m and current liabilities increased by €7.5m. Return on investment at year-end 2017 was €50.7m (2016: €52.7m).

Consolidated cash flow from operating activities in 2017 was €1.1m (2016: €3.6m). Cash flow from investing activities improved by +€0.8m and at year-end 2017 was -€1.2m (2016: -€2.0m).


Group net investments in fixed assets totalled €1.2m (2016: €2.2m). The most significant investments were in packaging automation, production equipment and information systems.



During the year, the Group employed an average of 169 persons (2016: 186 persons), 62 of whom (2016: 65) worked in Finland. At year-end, there were a total of 174 persons in the Group’s service. Wages and salaries paid to employees during the report year amounted to €7.9m (2016: €8.0m). Worker consultations initiated at the Vantaa site in 2017 resulted in some employees being temporarily laid off.

Management remuneration

In 2017, the Board of Directors were paid fees of €160k (2016: €171k). The CEO was paid a fixed salary of €209k and the Management Team €583k in 2017. No target bonuses based on annual performance were paid, but bonuses of €9k to the CEO and €28k to the Management Team were paid based on personal targets for 2017 under the company’s incentive scheme. The company had no supplementary pension arrangements at year-end 2017.

Key performance indicators 2013-2017

2017 2016 2015 2014 2013
Mint of Finland Group Revenue (1 000 €) 84 996 66 557 88 219 76 208 97 325
Change in revenue % 27,70 % -24,60 % 15,80 % -21,70 % -18,20 %
Operating profit/loss % -2,20 % -2,50 % -4,20 % -3,40 % -5,70 %
ROE % -6,90 % -5,50 % -11,10 % -7,10 % -13,20 %
ROI % -3,70 % -3,00 % -6,10 % -4,00 % -7,90 %
Equity ratio % 44,20 % 44,10 % 45,80 % 47,10 % 50,60 %
Personnel, average 169 186 197 211 230
Mint of Finland Ltd Revenue (1 000 €) 66 630 40 857 48 995 23 620 32 982
Change in revenue % 63,10 % -16,60 % 107,40 % -28,40 % -36,60 %
Operating profit/loss % -0,80 % -2,90 % -1,10 % -11,60 % -16,10 %
ROE % -1,40 % -2,80 % -1,30 % -6,20 % -11,80 %
ROI % -0,90 % -1,80 % -0,90 % -4,90 % -7,80 %
Equity ratio % 61,00 % 58,70 % 55,80 % 60,80 % 61,20 %
Personnel, average 62 65 63 61 73
The operating profit and ROI percentages have been restated in the comparable information to better reflect the new profit and loss layout, where extraordinary items are included in operating profit/loss.


The company’s CEO is Jonne Hankimaa. Ville Nikulainen, Mint of Finland’s new CFO, was appointed to the Management Team in November 2017. Minna Toivianen joined the company as the new General Counsel in January 2018 and her remit also includes HR.


Risk management

Risks at Mint of Finland relate both to changes taking place in the business environment and to the company’s operating activities.

Fluctuations in metal prices expose the company to risks that relate to the pricing of tenders. Efforts are made to mitigate this risk by negotiating fixed prices with metals suppliers as early as possible for projects and by negotiating price revision clauses in sales agreements to eliminate the risks associated with price changes.

Mint of Finland is also dependent on the delivery reliability of its materials suppliers. To minimise this risk, the most important suppliers are evaluated at least once a year. In addition, it is important to be able to recognise the most critical materials and suppliers for each project and to align our own operations to demands.

Currency risks are minimised by hedging all significant items denominated in foreign currencies.

Operative risks involve potential process and quality issues, faults, malfunction of machinery or systems, which in turn could lead to delivery delays and unpredicted costs. Operative risks also include demand and customer risks. Demand risks means fluctuations in demand and economic, political and operative risks relating to the company’s different market areas. Customer risks refers to changes in the buying behaviour of major individual customers, the project-like nature of operations, dependency on a number of customers and the ability to offer consumers interesting products. Global excess capacity and the approaches of different actors make for a challenging business playing field.

In 2017, the sites in Germany and Finland started to use a process modelling tool. All activities are systematically fed through the process. This will have long-term implications also on mitigating operative risks as operating quality improves and becomes more efficient.

With regard to insurance, efforts have been made to build comprehensive cost-effective insurance cover.

Decisions of the Annual General Meeting

Mint of Finland’s Annual General Meeting was held in Helsinki on 28 March 2017. The Meeting adopted the financial statements for 2016 and discharged members of the Board of Directors and the CEO from liability for the accounting period 1 January-31 December 2016.

Pekka Hurtola, Pekka Leskinen, Päivi Marttila, Hanna Maria Sievinen, Ari Viinikkala and Anna Maija Wessman were elected as members of the Board of Directors. Hanna Maria Sievinen was elected as chairperson of the Board of Directors and Pekka Leskinen as vice chairperson.

The fee for the chairperson of the Board of Directors was fixed at €2,800 a month, the vice chairperson’s fee at €1,970 a month and ordinary members at €1,400 a month. In addition, an attendance fee of €600 is paid to each member for each meeting at which he or she is present. During 2017, the Board of Directors met nine times and held three email meetings.

Accountant firm EY was elected as the company’s auditors.


Share capital

The company’s share capital at 31 December 2017 was €5,000,000. The company has 16,000 shares, each of which conveys one (1) vote at shareholder meetings. At year-end 2017, the Finnish State owned all the shares.

Market and business outlook for 2018

Competition in the industry is tough and margins are very low. The arrival of new actors, for example from China, on the international market, especially in the coin blank business, will further increase competition. Potential factors of uncertainty that could impact the company’s business are discussed in the “Risks” section. The coin blank business is characterised by excess capacity on the one hand, although on the other hand most suppliers have been unable to optimise their production processes in response to peaks in demand and thus their production suffers from bottlenecks caused by demand peaks. Mint of Finland is developing its operations to even out strong fluctuations in demand by, among other things, striving to develop a new service concept and business models and by further improving its organisation.

To improve business performance, Mint of Finland will continue to implement its change programme. Under this programme, activities are centred on strategic focus areas drawing on the company’s values and strengths, and on improving the company’s competitiveness with the future in mind.

Events since the balance sheet date

Since the balance sheet date, employee consultations were held at the company’s Vantaa site to adjust and reorganise operations. The consultations resulted in the loss of less than 10 jobs. There have been no other significant events since the balance sheet date.

Board of Directors’ proposal for the distribution of profit

Mint of Finland Ltd’s Board of Directors proposes that the parent company pay no dividend for 2017 and that the loss of €550,798.69 be retained.

Annual General Meeting

Mint of Finland Ltd’s Annual General Meeting will be held on Wednesday 28 March 2018 at the Government Palace at Snellmaninkatu 1 A, 00100 Helsinki.

Vantaa, 19 March 2018

Mint of Finland Ltd’s Board of Directors