1. The Federation of Finnish Technology Industries February 2014

2. The Technology Industry Is Comprised of Five Sub-sectors
Electronics and Electrotechnical Industry
ABB, Ensto, Murata Electronics, Nokia, Nokia Siemens Networks, Planmeca, Polar Electro, Suunto, Vacon, Vaisala...
Metals Industry
Boliden, Componenta, Kuusakoski, Luvata, Norilsk Nickel, Outokumpu, Outotec, Ovako, Rautaruukki, Sacotec…
Mechanical Engineering
Abloy, Cargotec, Fiskars, Glaston, Kone, Konecranes, Metso, Normet, Oras, Patria, Pemamek, Ponsse, Prima Power, Stala, STX Finland, Valtra, Wärtsilä...
Information Technology
Affecto Finland, Basware, CGI, Codebakers, Codenomicon, Comptel, Digia, Efecte, Enfo,
F-Secure, Fujitsu Finland, IBM, Knowit, Microsoft, Nixu, Tieto…
Consulting Engineering A-insinöörit, Citec, Elomatic, Etteplan, FCG, Finnmap, Granlund, Neste Jacobs, Pöyry, Ramboll, Sito, SWECO, Vahanen, WSP… 2

3. The Technology Industry in Finland
The Technology Industry in Finland
Electronics and Electrotechnical Industry
Data communications equipment, instruments, electrical machinery
Turnover (2013): 14.2 billion euros
Personnel (2013):
Metals Industry
Steel products, non-ferrous metals, castings
Turnover (2013): 9.4 billion euros
Personnel (2013):
Information Technology
IT services, applications and programming
Turnover (2013): 8.3 billion euros
Personnel (2013):
Mechanical Engineering
Machinery, metal products, vehicles
Turnover (2013): 26.3 billion euros
Personnel (2013):
Consulting Engineering
Expertise for construction
industry and infrastructure
Turnover (2013): 5.5 billion euros
Personnel (2013): 3

4. The Technology Industry – the Most Important Sector in Finland
55% of total Finnish exports.
80% of private-sector R&D investment.
Almost 300,000 employed directly in the sector, 740,000 employed in total, equalling about 30% of the entire Finnish labour force.
The Federation of Finnish Technology Industries has over 1,600 member companies.

5. Turnover of the Technology Industry in Finland
Billion euros,at current prices
Source: Statistics Finland, The Federation of Finnish Technology Industries 5

6. Export of Technology Industry Goods from Finland by Area in 2012
Total goods exports 26.5 billion euros*
Central and Eastern Europe
5.3 billion €
20.2 %
Western Europe
12.0 billion €
45.2 %
North America
2.2 billion €
8.2 %
the Middle East
0.6 billion €
2.3 %
Asia
4.1 billion €
15.6 %
Africa
0.8 billion €
3.0 %
South and Central America
1.5 billion €
5.5 %
*) In addition to goods exports the sector exports services worth about 12 billion euros.
Source: National Board of Customs, Statistics Finland

7. Turnover of the Industry and Technology Industry in Finland
Change: 1-10, 2013 / 1-10, 2012, %
-4 %
-6 %
2005
2006
2007
2008
2009
2010
2011
2012
2013
Seasonally adjusted turnover index, latest information 10/2013.
Source: Statistics Finland

8. Turnover of the Technology Industry in Finland
Change: 1-10,2013 / 1-10,2012, %
+11 %
+3 %
-6 %
-8 %
-13 %
2005
2006
2007
2008
2009
2010
2011
2012
2013
Seasonally adjusted turnover index, latest information 10/2013. Share of total turnover in 2012: mechanical engineering 41 %,
electronics and electrotechnical industry 26 %, metals industry 14 %, information technology 11 %, consulting engineering 8 %
Source: Statistics Finland

9. Value of New Orders in the Technology Industry* in Finland
Million euros, at current prices
2005
2006
2007
2008
2009
2010
2011
2012
2013
Change:
IV,2013 / IV,2012
IV,2013 / III,2013
Export:
-15 %
+15 %
Domestic:
-3 %
+13 %
Combined:
-12 %
*) Excluding metals industry.
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies,
latest information October-December 2013

10. Million euros, at current prices
Value of Order Books in the Technology Industry* in Finland
Million euros, at current prices
Combined
2005
2006
2007
2008
2009
2010
2011
2012
2013
Change: / /
Export:
-12 %
-2 %
Domestic:
-7 %
-5 %
Combined:
-11 %
*) Excluding metals industry.
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies,
latest information

11. Value of New Orders in the Electronics and Electrotechnical Industry in Finland
Million euros, at current prices
2005
2006
2007
2008
2009
2010
2011
2012
2013
Change:
IV,2013 / IV,2012
IV,2013 / III,2013
Export:
-13 %
+25 %
Domestic:
-34 %
-3 %
Combined:
-15 %
+23 %
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies,
latest information October-December 2013

12. Value of Order Books in the Electronics and Electrotechnical Industry in Finland
Million euros, at current prices
Combined
2005
2006
2007
2008
2009
2010
2011
2012
2013
Change: / /
Export:
-15 %
+18 %
Domestic:
-33 %
-4 %
Combined:
-16 %
+16 %
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies,
latest information

13. Value of New Orders in the Mechanical Engineering in Finland
Million euros, at current prices
2005
2006
2007
2008
2009
2010
2011
2012
2013
Change:
IV,2013 / IV,2012
IV,2013 / III,2013
Export:
-19 %
+2 %
Domestic:
-4 %
+13 %
Combined:
-16 %
+4 %
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies,
latest information October-December 2013

14. Million euros, at current prices
Value of Order Books in the Mechanical Engineering in Finland
Million euros, at current prices
Combined
2005
2006
2007
2008
2009
2010
2011
2012
2013
Change: / /
Export:
-11 %
Domestic:
-17 %
-12 %
Combined:
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies,
latest information

15. Value of New Orders in the Consulting Engineering in Finland
Million euros, at current prices
2005
2006
2007
2008
2009
2010
2011
2012
2013
Change:
IV,2013 / IV,2012
IV,2013 / III,2013
Export:
+31 %
+30 %
Domestic:
+17 %
+26 %
Combined:
+19 %
+27 %
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies,
latest information October-December 2013

16. Million euros, at current prices
Value of Order Books in the Consulting Engineering in Finland
Million euros, at current prices
Combined
2005
2006
2007
2008
2009
2010
2011
2012
2013
Change: / /
Export:
+12 %
+6 %
Domestic:
+25 %
+2 %
Combined:
+22 %
+3 %
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies,
latest information

17. Value of New Orders in the Information Technology in Finland
Million euros, at current prices
2005
2006
2007
2008
2009
2010
2011
2012
2013
Change:
IV,2013 / IV,2012
IV,2013 / III,2013
Combined:
+23 %
+21 %
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies,
latest information October-December 2013

18. Value of Order Books in the Information Technology in Finland
Million euros, at current prices
2007
2008
2009
2010
2011
2012
2013
Change: / /
Combined:
+3 %
+1 %
Source: The Federation of Finnish Technology Industries’ order book survey’s respondent companies,
latest information

19. Change in Value of Order Books in the Technology Industry in Finland Compared with a Year Earlier
Change by companies: / , %
Median: 0 %
Average: -11 %
Companies in random order
Source: The Federation of Finnish Technology Industries’ order book survey’s
respondent companies, latest information

20. Personnel in the Technology Industry
Some of employees affected by temporary or
part-time lay-offs
Source: Statistics Finland, The Federation of Finnish Technology Industries’ labour force survey

21. Change in the Number on Personnel in the Technology Industry in Finland Compared with a Year Earlier
Change by companies: /
Median: -1,3 %
Average: -2,1 %
Companies in random order
Source: The Federation of Finnish Technology Industries’ labour force survey

22. Technology Industry Personnel in Finland
Source: Statistics Finland, The Federation of Finnish Technology Industries’ labour force survey

23. Retirement of Technology Industry Personnel
Individuals per year
Salaried employees
Blue collar employees
Source: Wage inquiry of the Federation of Finnish Technology Industries, Finnish Centre for Pensions, Statistics Finland

24. Retirement of Technology Industry Blue Collar Employees
Individuals per year
Source: Wage inquiry of the Federation of Finnish Technology Industries, Finnish Centre for Pensions, Statistics Finland

25. Situational overview and outlook
Situational overview and outlook
- Finland is in the grip of structural change. Development remains uneven between companies.
- Turnover in Finland in 2013 was some EUR 64 billion. Turnover in the pre-crisis year 2008 was EUR 82 billion.
- The monetary value of new orders in October-December 2013 was 12 % lower than in the corresponding period of 2012, but 15 % higher than at the level of the preceding quarter.
- At the end of December, the value of order books was 11 % lower year on year, and 2 % lower the value reported at the end of September
- The turnover of technology industry companies in early 2014 is expected to be roughly equal in comparison with the corresponding period last year.
- Since 2008, personnel numbers in Finland have shrunk by 31,000 employees, totalling 296,000 in 2013.
- Small and medium-sized enterprises in particular have reported weak development in profitability.

26. Optimism with regard to an upturn in the growth of the global economy has increased

27. Industrial Production Volume
Industrial production volume in EU countries 10 %,
but in Finland 18 % lower since early 2008
2008=100
2008
2009
2010
2011
2012
2013
Seasonally adjusted volume index, latest information 11/2013 or 12/2013.
Source: Eurostat, Federal Reserve (USA), Statistics Bereau and Statistics Center (Japan)

28. Industrial Production Volume in EU Countries
2008=100
2008
2009
2010
2011
2012
2013
Seasonally adjusted volume index, latest information 10/2013 or 11/2013.
Source: Eurostat

29. Euro Countries Are Developing Unevenly
Manufacturing and Services Sector Purchasing Magers’ Index
50 = no change on previous month
Latest information January 2014.
Source: Markit

30. Growth Continues in Developing Countries,
but Slower than During Last Years
Manufacturing and services sector purchasing magers’ index
50 = no change on previous month GDP, % v/v, y/y
Latest information December 2013.
Source: Markit, HSBC

31. Breakdown of World Industrial Production%
Purchasing power parity adjusted shares.
Source: Maddison (Historical Statistics), IMF and ETLA

32. Industrial Production Development by Year
2005=100
Source: Consensus Economics

33. Almost all Western Countries have Excessive Public Debt
Public debt / GDP, %
Source: OECD, Economic Outlook, November 2013

34. The Big Challenge for Finland after 2008

35. Finnish Exports up to EUR 20 – 30 Billion Short of Annual Target Level
Export of goods and services by quarter, billion euros, at current prices
2005
2006
2007
2008
2009
2010
2011
2012
2013
Working day and seasonally adjusted index.
Latest information July-September 2013.
Source: Statistics Finland / National Accounts

36. Finnish Exports lagging Behind Competitors
Export of goods and services by quarter, billion euros, at current prices, index
2005,I = 100
2005
2006
2007
2008
2009
2010
2011
2012
2013
Working day and seasonally adjusted index.
Latest information July-September 2013.
Source: Eurostat

37. The Share of Industry in GDP in Finland 1900-2012
Source: Statistics Finland

38. Finland not attracting Companies’ Investment
Companies’ Fixed Investments in Different Countries
Indeksi, 2005=100
Source: OECD, Economic Outlook, November 2013

39. Unit Labour Costs at the National Economy Level
(Including the Effective Exchange Rates)
2005,I =100
Finland’s cost competitiveness
declines
Finland’s cost competitiveness
improves
2005
2006
2007
2008
2009
2010
2011
2012
2013
*) In the ECB Harmonised Competitiveness Index, the average effective exchange rate of each country is calculated vis-à-vis 20 to 30 main trade partners, as well as the development of unit labour costs for the total economy
Latest information III/2013.
Source: European Central Bank

40. What should be done? Support the renewal of the industry
Taxes should support growth and investment in Finland
Support decision making in companies related to compensation and working time
No new European nor national burdens on companies, which are deteriorating the competitiveness

41. Long-Term Outlook and Challenges
Global Structural Change Set to Continue Apace
Industrial production and services will relocate to rapidly developing economic areas
Strong growth, large markets, cheap labour and increasing expertise will increase the attractiveness of these regions.
Competition over Skills and Raw Materials Set to Increase
Due to an increase in retirement, the sector’s annual recruitment need in Finland will rise considerably in the coming years.
The availability of reasonably-priced energy also threatens to become an investment bottleneck in Finland
Combating Climate Change
A challenge as costs are set to grow faster than in competitor countries
An opportunity for new environmental and energy technologies