Further information on the Technology Industry

Further information on the Technology Industry

Changes in the Production Structure Production structure in Finland and the US 9% Share of GDP 8% 7% 6% 5% 4% 3% 2% 1% % 186 187 188 189 19 191 192 193 194 195 196 197 198 199 2 21 US, Agriculture FIN, Agriculture US, Services FIN, Services Source: Statistics Finland, Bureau of Economic Analasys 29.8.212 36

Kansantalouden suhdannekuva Economic outlook in Finland Talouden kasvu, määrän muutos, % Economic growth, real change, % 211 212e 213e 214e BKT GDP 2,9,9 2,6 2,7 Teollisuustuotanto Industrial production 2,3 2,6 4,7 5,4 Vienti Exports -,8 2,3 5,5 5, Tuonti Import,1 2,7 3,8 3,5 Yksityiset investoinnit Private investment 5, -1,4 3,6 4,1 Yksityinen kulutus Private consumption 3,3 1,7 1,5 1,6 Julkinen kulutus Public consumption,8,5,5,7 * ) % BKT:sta / % of GDP Maaliskuu / March 212 Talouden tasapaino Balance of economy 211 212e 213e 214e Kuluttajahinnat Consumer prices, % 3,4 2,7 1,8 1,8 Ansiotaso Earnings, % 2,7 3,1 2,9 2,8 Työttömyysaste Unemployment rate, % 7,8 7,7 7,3 6,8 Euribor-korko 3 kk Euribor rate, 3 months, % 1,4,9 1,1 2,2 Vaihtotaseen ylijäämä* Current account* -,4-1,2 -,6 -,2 Suomen EMU-ylijäämä* Government deficit* -,5 -,7 -,4, Suomen EMU-velka* Government gross debt* 48,6 51,4 52,7 53,1 Lähde: ETLA, Tilastokeskus / Source: ETLA, Statistic Finland R:\yleinen talous\jpyl1af.ppt 21.3.212/mp 37

Teollisuuden luottamus ja tuotanto Suomessa Industrial Confidence and Volume of Output in Finland 4 Sbar / CCI Volyymi / Volume 24% 3 18% 2 12% 1 6% % -1-6% -2-12% -3-18% -4 2 21 22 23 24 25 26 27 28 29 21 211 212 213 Teollisuuden luottamus / Industrial confidence (1 Tuotannon volyymi / Volume of Output (2-24% 1) Teollisuuden luottamusindikaattori, viipeistetty 3kk eteenpäin / Industrial confidence indicator with a 3 month forward lag 2) Teollisuustuotannon volyymin 3kk liukuva vuosimuutos / Change y-o-y in industrial output volume, 3 mma Lähde / Source: Tilastokeskus, Euroopan komissio / Statistics Finland, European Comission

Teknologiateollisuuden* tilaukset Suomessa Value of Orders in the Technology Industry* in Finland 22 2 18 Tilauskanta, Milj. EUR / Order books Mill. EUR Uudet tilaukset, Milj. EUR / New orders Mill. EUR 11 1 9 Vientitilauskanta / Export order books 16 14 12 1 8 8 7 6 5 4 Kotimaan tilauskanta / Domestic order books Kotimaan uudet tilaukset / Domestic new orders 6 4 2 25 26 27 28 29 21 211 212 3 2 1 Uudet tilaukset yhteensä / Total new orders *) Pl. metallien jalostus / Excluding metals industry. Tilauskanta Uudet tilaukset Vienti / Export Kotimaa / Domestic Yhteensä / Total Vienti / Export Kotimaa / Domestic Yhteensä / Total II,212 / II,211-7 % 8 % -2 % -24 % +8 % -16 % II,212 / I,212-7 % 6 % -3 % -3 % -6 % -5 % Lähde/Source: Teknologiateollisuus ry:n tilauskantatiedustelu, viimeinen havainto 3.6.212 / The Federation of Finnish Technology Industries order book survey, last observation 3.6.212

Kone- ja metallituoteteollisuuden tilaukset Suomessa Value of Orders in the Engineering Industry in Finland 15 Tilauskanta, Milj. EUR / Order books Mill. EUR Uudet tilaukset, Milj. EUR / New orders Mill. EUR 5 Vientitilauskanta / Export order books 12 9 4 3 Kotimaan tilauskanta / Domestic order books 6 2 Kotimaan uudet tilaukset / Domestic new orders 3 1 Uudet tilaukset yhteensä / Total new orders 25 26 27 28 29 21 211 212 *) Pl. metallien jalostus / Excluding metals industry. Tilauskanta Uudet tilaukset Vienti / Export Kotimaa / Domestic Yhteensä / Total Vienti / Export Kotimaa / Domestic Yhteensä / Total II,212 / II,211-1 % + % -1 % -21 % -18 % -21 % II,212 / I,212-8 % +4 % -6 % -5 % -4 % -5 % Lähde/Source: Teknologiateollisuus ry:n tilauskantatiedustelu, viimeinen havainto 3.6.212 / The Federation of Finnish Technology Industries order book survey, last observation 3.6.212

Situational overview - Finland is in the grip of structural change. Development remains uneven between companies. - Turnover in Finland in 211 was some EUR 68 billion. Turnover in the pre-crisis year 28 was EUR 82 billion. - The monetary value of new orders in April-June was 16 % lower than in the corresponding period of 211, and 5 % lower than at the level of the preceding quarter. - At the end of June, the value of order books was 2 % lower year on year, and 3 % below the value reported at the end of March. - It should be noted that the volume of new orders was still almost 4 % below, and that of order books more than 4 % below, the pre-crisis level of the autumn of 28. - Since 28, personnel numbers in Finland have shrunk by 28, employees, totalling 31, at the end of June. - Small and medium-sized enterprises in particular have reported weak development in profitability. 31.8.212 41

Summary of outlook The Global economic situation remains very fragile and subject to sudded changes. The Finnish technology industry s main export region, Europe, is experiencing a eecession. Also the outlook is weak. As well the global structural changes in industry pose a challenge to Finland's competitiveness. Turnover will fall short of last year s level in the autumn. Turnover remains significantly below its pre-crisis level. Enterprises are concerned about rising costs in Finland. The rapid increase in the national debt is a serious problem in Europe, the United States and Japan. 31.8.212 42

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 31.8.212 43