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ANNUAL REPORT 2014

F Notes on personnel and management

F1 Number of employees
              Finnvera Group Finnvera plc
(Number) 31 Dec 2014 31 Dec 2013 31 Dec 2014 31 Dec 2013
Number of employees        
- Permanent full-time 349 360 336 345
- Permanent part-time 22 16 22 16
- Temporary 23 23 18 21
Total 394 399 376 382
Personnel as person-years 378 381 361 365
 
F2 Key management personnel in the Group
In the Group, key management personnel are members of the parent company Board of Directors, members of the Supervisory Board, CEO Pauli Heikkilä, Executive Vice President Topi Vesteri as well as the Management Group, which is comprised of the CEO and Executive Vice President, along with: Ulla Hagman, Risto Huopaniemi, Katja Keitaanniemi (since 22 Sebtember 2014), Hannu Puhakka, Tarja Svarström and Kari Villikka. Other members in the Management Group in 2014 were John Erickson (until 31 August 2014), Pentti Kinnunen (until 31 August 2014) and Leo Houtsonen (until 31 August 2014).

The key persons have no reportable business transactions with companies included in the Group.
F3 Key personnel benefit expenses
The table below shows the employment benefits received by key management personnel. The employment benefits shown are performance-based. Employee benefits include the bonus corresponding to one month’s total remuneration paid to the Chief Executive Officer and the other members of the Management Group in 2013. Post-employment benefits are dealt with as voluntary pension plans, which include both defined contribution and defined benefit pension plans.
                  Finnvera Group
(EUR 1,000)                 31 Dec 2014 31 Dec 2013
Salaries and other short-term employee benefits 1,811 1,886
Supplementary pension commitments 185 156
Remuneration of the Board of Directors and Supervisory Board members 219 243
Total 2,215 2,285

The CEO belongs to the defined contribution pension plan, whose retirement age is 63 years. The group supplementary pension plan was changed from defined benefit to defined contribution as of 1 January 2013. The target retirement age for the CEO is starting at 63 years of age and the supplementary pension with a fixed 11.47 per cent bonus and other performance-based salary items deducted from the earnings-related pension insurance (TyEL).

The Executive Vice President belongs to the defined benefit pension plan, which offers eligibility for retirement at 60 years of age. Therefore, the target pension is 60 per cent of the average yearly earnings over the previous five years. Lowering the retirement age from the statutory retirement age is done with a defined benefit supplementary pension.

The period of notice for the CEO is six months, in addition to which the CEO will receive termination benefits equivalent to 18 months' salary if 'the company terminates their employment. The period of notice for the Executive Vice President is six months, in addition to which the Executive Vice President will receive termination benefits equivalent to 12 months' salary if the company terminates their employment.

The monthly remuneration for members of the Board of Directors is: EUR 1,500 for the chairman, EUR 850 for the deputy chairman and EUR 700 for members.

The attendance allowance is EUR 500/meeting.

The attendance allowance for members of the Supervisory Board are: EUR 800/meeting for the chairman, EUR 600/meeting for the deputy chairman and 500/meeting for members.
F4 Salaries, remuneration and pension commitments for the key personnel
  Finnvera Group
  31 Dec 2014 31 Dec 2013
  Salaries Pension commitments Salaries Pension commitments
(EUR 1,000)   Voluntary Statutory   Voluntary Statutory
Management salaries (incl. social security costs) as well as applicable pension commitments
CEO Pauli Heikkilä 339 35 60 331 36 57
Executive Vice President Topi Vesteri 258 66 46 252 76 44
Other members of the Management Group 1,214 80 215 1,303 44 226
Members of the Board of Directors:            
Markku Pohjola, chairman 30 No - 33 No -
Pekka Timonen, I deputy chairman 22 No - 14 No -
Marianna Uotinen, II deputy chairman 22 No - 14 No -
Kirsi Komi 22 No - 12 No -
Vesa Luhtanen 18 No - 12 No -
Pirkko Rantanen-Kervinen 20 No - 13 No -
Risto Paaermaa 21 No - 22 No -
Marjaana Aarnikka, member until 26 April 2013       8 No -
Johanna Ala-Nikkola, member until 26 April 2013       7 No -
Leila Helaakoski, member until 26 April 2013       8 No -
Timo Kekkonen, member until 26 April 2013       9 No -
Timo Lindholm, member 26 April 2013       9 No -
Elise Pekkala, member until 26 April 2013       2 No -
Kristina Sarjo, II deputy chairman until 26 April 2013       10 No -
Heikki Solttila, member until 26 April 2013       2 No -
Petri Vanhala, member until 26 April 2013       8 No -
Members of the Supervisory Board (total) 64 No - 59 No -
 
F5 Defined benefit pension plans
The Group has several defined benefit group pension insurance plans, which cover personnel who transferred to Finnvera from previous organisations, and supplementary pension insurance plans for Management Group members and Regional Directors appointed before 2 April 2009. At the end of the year, there were 142 people covered by the plans. When a person resigns or retires, the insurance is changed to a defined contribution plan, because paid-up policies and pensions are increased by a credit issued by the insurance provider.

From the beginning of 2013, Management Group supplementary pension insurance changed from defined benefit to defined contribution, with the retirement age remaining at 63 years, with certain transitional conditions. This is presented in accounting as compliance with obligations.

The plans are funded with annual contributions paid to the insurance company and based on actuarial calculations. The plans are subject to local tax and other legislation.

The obligation is shown as the pledge made to all insurees and the asset is shown as the share of this obligation assumed by the insurance provider. The amount of assets is calculated using the same discount interest rate as an equivalent obligation. As a result, the risk posed by changes in the discounted interest rate only affects the net liabilities. A hypothetical 0.25% increase in salary would increase the obligation 1.2% (1.3%) and, correspondingly, an equivalent decrease would have the opposite effect.

Balance sheet items arising from the defined benefit:
  Finnvera Group
(EUR 1,000) 31 Dec 2014 31 Dec 2013
Pension obligation
Present value of funded obligations 1 Jan   3,079   9,357
Unrecognised actuarial gains or losses 279   921  
Interest on obligation 92   281  
Effect of fulfilling the plan and reducing the obligation -139   -2,415  
Revaluation of defined benefit pension plans        
- Caused by changes in financial assumptions 773   -1,081  
- Caused by changes in demographic assumptions 0   -603  
- Based on experience -409 596 -3,381 -6,278
Present value of funded obligations 31 Dec   3,674   3,079
Fair value of assets        
Fair value of plan assets 1 Jan   3,565   8,037
Interest income on assets 109   249  
Effect of fulfilling the obligation -139   -2,308  
Return on plan assets, excluding items contained in interest expenses or income 823   -2,283  
Contributions paid to the plan -155 638 -130 -4,472
Fair value of plan assets 31 Dec   4,203   3,565
Net liabilities (difference between obligations and assets)   -528   -486
Consolidated statement of comprehensive income – pension costs        
Unrecognised actuarial gains or losses   279   921
Effect of fulfilling the obligation   0   -107
Net interest expenses   -17   32
Consolidated income statement defined benefit pension costs   262   846
Items resulting from revaluation   -459   -2,782
The net liabilities of the Group's defined benefits have changed during the financial period as follows:
  Finnvera Group
(EUR 1,000) 31 Dec 2014 31 Dec 2013
Defined benefit net liabilities        
Pension debt (+) /Pension receivable (-) 1 Jan   -486   1,320
Expenses recognised in the income statement   262   846
Paid pension contributions   155   130
Other items recognised in the consolidated statement of comprehensive income   -459   -2,782
Pension debt (+)/Pension receivable (-) 31 Dec   -528   -486
Information on the distribution of assets by plan asset category is unavailable, because the assets belong to the insurance provider.
              Finnvera Group
Actuarial assumptions   31 Dec 2014 31 Dec 2013
Discount rate     1.70%   3.00%
Future salary increases     2.40%   2.40%
Future pension increases     1.20%   0.69%
Based on the weighted average, the duration of the obligation is 15.6 years. Finnvera expected to pay EUR 174,748 towards defined benefit plans in 2015.

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