C Segment information
Segment reporting in Finnvera Group is based on internal business areas and 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 micro-financing, regional financing, financing for growth and internationalisation, export financing, and venture capital investments.
Micro-financing clients are enterprises with less than 10 employees that operate locally. Micro-financing provides financial services for the start-up and development of enterprises in cooperation with regional enterprise services and other financiers.
The clients of regional financing are SMEs and, on special grounds, large enterprises. The clientele includes companies engaged in production or services. In cooperation with other financiers, regional financing provides financing solutions especially for development and growth needs and for changes of generation.
The clients of financing for growth and internationalisation are SMEs with a growth strategy based on internationalisation. Some clients already operate on the international market and engage in exports, while others are still at the start of this development. 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.
Export financing clients are mostly exporters operating in Finland and classified as large enterprises, as well as domestic and foreign bodies providing financing for these exports. Finnvera has official Export Credit Agency (ECA) status. Export financing offers competitive export credit guarantee services to meet client needs.
Two of Finnvera’s subsidiaries – Veraventure Ltd and Seed Fund Vera Ltd – make venture capital investments in enterprises. Another subsidiary, Finnish Export Credit Ltd, administers the interest equalisation system associated with export credits granted on OECD terms and domestic ship financing.
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, and decisions concerning resources allocated to segments, are based on operating profit. The assets and liabilities of segments are valued according to the principles for drawing up the consolidated financial statements.
Finnvera Group has operations only in Finland and its clientele consists of a wide spectrum of clients in various sectors.
|C1 Consolidated income statement and balance sheet by segments|
|Financing for growth and internation-alisation||Export
|Venture capital financing||Eliminations||Total|
|Net interest income||8,197||23,361||11,679||6,933||1,588||0||51,758|
|Net fee and commission income||3,970||19,215||16,333||98,971||-2||0||138,487|
|Net impairment loss on financial assets, guarantee and security losses||4,510||-39,519||-7,223||9,448||-1,033||0||-33,817|
|Depreciation and amortization||-85||-445||-211||-263||-42||0||-1,047|
|Net interest income||9,108||24,661||15,886||4,594||1,315||0||55,564|
|Net fee and commission income||3,968||17,247||17,901||95,171||-2||0||134,284|
|Net impairment loss on financial assets, guarantee and security losses||-3,220||-20,966||-25,339||-12,585||-1,476||0||-63,586|
|Depreciation and amortization||-91||-475||-231||-309||-40||0||-1,147|
|Net interest income||8,197||23,361||11,679||3,460||0||46,697|
|Net fee and commission income||3,970||19,215||16,333||97,939||0||137,457|
|Net impairment loss on financial assets, guarantee and security losses||4,510||-39,519||-7,223||9,448||0||-32,784|
|Depreciation and amortization||-85||-445||-211||-263||0||0||-1,005|
|Net interest income||9,108||24,661||15,886||2,850||0||0||52,504|
|Net fee and commission income||3,968||17,247||17,901||93,452||0||0||132,567|
|Net impairment loss on financial assets, guarantee and security losses||-3,220||-20,966||-25,339||-12,585||0||0||-62,110|
|Depreciation and amortization||-91||-475||-231||-309||0||0||-1,106|
|* 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 financial assets