C Segment information
Finnvera’s segment information is based on the company’s internal division into business areas and on the organisational structure. Client enterprises have been divided into business areas according to their size and the need for financing at their development stage. A service concept has been devised for each business area. Finnvera’s segments are locally operating small companies, SMEs focusing on the domestic markets, SMEs seeking growth and internationalisation, export financing and venture capital financing. In the parent company, export financing comprises export credit guarantees. In the Group, it also includes export credits.
The clients of the local micro-enterprises segment are locally operating enterprises that have fewer than 10 employees. This segment offers financial services for the start-up and development of enterprises in cooperation with regional enterprise services and other financiers.
The clients of the segment for enterprises on the domestic market are SMEs and, on special grounds, large corporations. The clientele includes companies engaged in production and in services. In cooperation with other financiers, financial solutions are provided especially for the development and growth needs of companies and for transfers of business to the next generation.
The clients of the segment for growing and internationalising enterprises are SMEs and midcap companies* that have a growth strategy based on internationalisation. Some clients already engage in exports on the international market, while others are still starting out on this development path. In general, these enterprises also use the services of other organisations providing services for growth enterprises (Finpro, Tekes, Centres for Economic Development, Transport and the Environment) and make use of the services offered by Finnvera for export financing.
The export financing segment consists of financing for export credit guarantees and export credits. The clients are exporters operating in Finland, generally classified as large corporations, as well as domestic and foreign providers of financing for these. In addition, the segment includes Finnish Export Credit Ltd, a subsidiary of Finnvera that provides financing for export credits and export financing based on tax agreements and administers the interest equalisation system for officially supported export credits and domestic ship financing in accordance with the OECD Arrangement. Finnvera has official Export Credit Agency (ECA) status.
The segment for venture capital investments consists of the Group’s venture capital investment activities. Two of Finnvera’s subsidiaries – Veraventure Ltd and ERDF-Seed Fund Ltd – make venture capital investments in enterprises. Finnvera plc sold the majority holding in Seed Fund Vera Ltd to a buyer outside the Group on 16 December 2016. With its holding of 19.99 per cent in the company, Finnvera remains a minority shareholder. For this reason, Seed Fund Vera Ltd is no longer included in the consolidated financial statements on 31 December 2016. The figures of Seed Fund Vera Ltd are included in the segment information up to 16 December 2016.
Income, expenses, assets and liabilities are allocated to each segment when they are deemed to fall within that segment or when such allocation is otherwise sensible. All income and expenses have been allocated to segments. There is no notable intra-segment business.
Assessment of the profitability of Finnvera’s segments is based on the operating profit. The assets and liabilities of segments are valued according to the principles for drawing up the financial statements.
The Finnvera Group has operations only in Finland and its clientele consists of a wide spectrum of clients in various sectors.
* Midcap = A national definition included in the Government’s commitment to compensate Finnvera plc for credit and guarantee losses. The term refers to an enterprise that is larger than the definition of an SME applied by the EU. Its turnover may not exceed EUR 300 million in the latest financial statements adopted by the enterprise. If the enterprise has drawn up consolidated financial statements, the turnover is taken from them.
|C1 Consolidated income statement by segments|
|(EUR 1,000)||Locally operating small companies||SMEs focusing on the domestic markets||SMEs seeking growth and internation-alisation||Export financing||Venture capital financing||Eliminations||Total|
|Net interest income||8,533||22,547||7,138||10,649||1,422||0||50,290|
|Net fee and commission income||5,213||20,799||14,210||103,730||-2||0||143,949|
|Net impairment loss on financial assets, guarantee and export credit guarantee losses||-1,465||-363||-7,857||-56,209||192||0||-65,702|
|Operating expenses *)||-10,329||-14,764||-9,739||-25,317||-5,130||17,044||-48,237|
|Depreciation and amortization||-220||-1,142||-496||-468||-13||0||-2,339|
|Other income/expenses **)||107||-368||187||5,339||1,295||-15,265||-8,705|
|Net interest income||9,102||28,642||6,697||11,057||519||0||56,016|
|Net fee and commission income||4,523||21,444||13,986||101,330||-3||0||141,281|
|Net impairment loss on financial assets, guarantee and export credit guarantee losses||-1,691||-17,144||12,354||-6,811||-1,378||0||-14,669|
|Operating expenses *)||-11,090||-16,093||-9,821||-20,649||-4,867||12,974||-49,546|
|Depreciation and amortization||-83||-434||-211||-283||-34||0||-1,047|
|Other income/expenses **)||-395||-1,731||-354||16,813||-19,826||-12,964||-18,455|
|Net interest income||8,533||22,547||7,138||5,544||0||-1,337||42,425|
|Net fee and commission income||5,213||20,799||14,210||92,794||0||9,685||142,701|
|Net impairment loss on financial assets, guarantee and export credit guarantee losses||-1,465||-363||-7,857||-56,120||0||-65,805|
|Operating expenses *)||-10,329||-14,764||-9,739||-9,465||-7,221||-13,246||-64,764|
|Depreciation and amortization||-220||-1,142||-496||-468||0||0||-2,326|
|Other income/expenses **)||107||-368||187||384||7,221||4,897||12,428|
|Net interest income||9,102||28,642||6,697||3,936||0||0||48,377|
|Net fee and commission income||4,523||21,444||13,986||100,652||0||0||140,606|
|Net impairment loss on financial assets, guarantee and export credit guarantee losses||-1,691||-17,144||12,354||-6,811||0||0||-13,291|
|Operating expenses *)||-11,090||-16,093||-9,821||-18,254||0||0||-55,258|
|Depreciation and amortization||-83||-434||-211||-283||0||0||-1,012|
|Other income/expenses **)||-395||-1,731||-354||3,072||-25,000||0||-24,407|
|*) Operating expenses = administrative expenses + other operating expenses - depreciation and amortization|
|**) Gains/losses from financial instruments carried at fair value + net income from investments + other operating income + impairment losses on other financial assets|