Technology Industries of Finland: Closing the GDP Gap with Annual Growth of 3.0%

1. Technology Industry /Finnish Economic OutlookMay 2019 Technology Industries of Finland

2. Overcoming the Gap in GDP Will Require 3.0% Growth in Finland Annually in 2019-2023 *) The IMF forecast for the euro area in January 2019: 1.6 in 2019, 1.7 in 2020, 1.5% in 2021, 1.5 % in 2022 and 1.4 % in 2023. Source: Macrobond, IMF, Federation of Finnish Technology Industry Technology Industries of Finland

3. The Finnish Technology Industry Is Comprised of Five Sub-Sectors MECHANICAL ENGINEERING Abloy, Cargotec, Finn-Power, Fiskars, Glaston, Kone, Konecranes, Metso, Meyer Turku, Normet, Oras, Patria, Pemamek, Ponsse, Stala, Valmet, Valtra, Wärtsilä… METALS INDUSTRY Boliden, Componenta, Kuusakoski, Luvata, Outokumpu, Outotec, Ovako, Sacotec, SSAB … ELEKTRONICS AND ELECTROTECHNICAL INDUSTRY ABB, Ensto, Microsoft Mobile, MurataElectronics, Nokia, Planmeca, Polar Electro, Suunto, Vacon, Vaisala… INFORMATION TECHNOLOGY Affecto, Basware, Bilot, CGI, Comptel, Digia, Efecte, Enfo, F-Secure, Fujitsu Finland, IBM, Innofactor, Knowit, Microsoft, Nixu, Tieto… CONSULTING ENGINEERING A-Insinöörit, Citec, Elomatic, Etteplan, FCG, Granlund, Neste Jacobs, Pöyry, Ramboll, Rejlers, SITO, SWECO, WSP… Technology Industries of Finland

4. The Finnish Technology Industry Is Comprised of Five Sub-Sectors • MECHANICAL ENGINEERING • Machinery, metal products, vehicles • Turnover (2018): 31.7 billioneuros • Personnel (2018): 133,000 • METALS INDUSTRY • Steel products, non-ferrousmetals, castings, metallicminerals • Turnover (2018): 10.8 billioneuros • Personnel (2018): 16,400 • ELEKTRONICS AND ELECTROTECHNICAL • INDUSTRY • Data communicationsequipment, electricalmachinery, medicaltechnology • Turnover (2018): 15.3 billioneuros • Personnel (2018): 38,600 • INFORMATION TECHNOLOGY • IT services, applications and programming • Turnover (2018): 13.0 billioneuros • Personnel (2018): 68,900 • CONSULTING ENGINEERING • Expertise for constructionindustry and infrastructure • Turnover (2018): 6.3 billioneuros • Personnel (2018): 54,300 Technology Industries of Finland

5. The Technology Industry – the Largest Export Sector in Finland 2018 Over 50 % of totalexports. 320,000employeddirectly in thesector, includingindirect effects 660,000 people. Effect on value added totaling € 57 billion, or 28% of GDP value added. Bring to Finland € 18 billion tax revenue annually. InvestmentsaboutEUR 5.0 billionannually in Finland. 70 % of private-sector R&D investment. Technology Industries of Finland

6. Value Added to the Economy Generated by the Technology Industry Is EUR 55 Billion, or over 28% of GDP * (2017) *) GDP value added was EUR 193.3 billion in 2017. Source: Economic Impact of the Technology Industry in Finland 11/2018 Teknologiateollisuus

7. Technology Industry Generates nearly 650,000 Jobs in Finland (over 25% of All Employees) (2017) Source: Economic Impact of the Technology Industry in Finland 11/2018 10 jobs in the technology industry bring 11 jobs to the rest of the economy Teknologiateollisuus

8. Every Job in the Technology Industry Generates almost another Job in the Services (2017) *) Excl. the services industries in the technology industry. Source: Economic Impact of the Technology Industry in Finland 11/2018 Teknologiateollisuus

9. Technology Industry Generates over 18 Billion Euros in Tax Revenue Annually in Finland (2017) Source: Economic Impact of the Technology Industry in Finland 11/2018 Teknologiateollisuus

10. Turnover of the Technology Industry in Finland Source: Macrobond, Statistics Finland, Technology Industries of Finland Technology Industries of Finland

11. *) In addition to goodsexportsthesectorexportedservicesworth some 13 billioneuros. Source: National Board of Customs, Statistics Finland Export of Technology Industry Goodsfrom Finland by Area in 2018 Total goodsexports 32.5 billioneuros* Central and Eastern Europe 5.06 billion € 15.5 % Western Europe 17.51 billion € 53.9 % North America 3.04 billion € 9.4 % Asia 5.04 billion € 15.5 % Middle and Central East 0.48 billion € 1.5 % South and Middle America 0.89 billion € 2.7 % Africa 0.48 billion € 1.5 % Technology Industries of Finland

12. Technology, Forest and Chemical Industries Provide 81 % of Finland's Goods and Services Exports Revenue Goods and serviceexports: billioneuros and theshare of Finnish exports in 2017 *) Service exportsindustry-specific data for theyear 2017 arepreliminaryinformation. Source: Board of Customs, Statistics Finland (National Accounts, Foreigntrade in services), Federation of Finnish Technology Industries Technology Industries of Finland

13. Turnover of the Industry and Technology Industry in Finland Source: Macrobond, Statistics Finland Technology Industries of Finland

14. Turnover of the Technology Industry in Finland Source: Macrobond, Statistics Finland Technology Industries of Finland

15. Value of New Orders in the Technology Industry* in Finland Source: The Federation of Finnish Technology Industries’ orderbooksurvey’srespondentcompanies, latestobservationJanuary-March 2019 Millioneuros, at currentprices *) Excl. metalsindustry, gameindustry and data center companies Technology Industries of Finland

16. Value of Order Books in the Technology Industry* in Finland Source: The Federation of Finnish Technology Industries’ orderbooksurvey’srespondentcompanies, latestobservation 31th March 2019. Millioneuros, at currentprices Combined *) Excl. metalsindustry, gameindustry and data center companies Technology Industries of Finland

17. TenderRequests* Receivedbythe Technology Industry Companies in Finland Source: The Federation of Finnish Technology Industries’ orderbooksurvey’srespondentcompanies, the last questionnaire in April 2019. *) ”Haveyouexperienced a notableincreaseordecrease in thenumber of requests for tenders in recentweeks in comparison to thesituationthreemonthsago?”. Balancefigure = thenumber of companiesreceivingmorerequests - thenumber of companiesreceivinglessrequests.” Technology Industries of Finland

18. Value of New Orders in theElectronics and Electrotechnical Industry in Finland Source: The Federation of Finnish Technology Industries’ orderbooksurvey’srespondentcompanies, latestobservation October-December 2018 Millioneuros, at currentprices Technology Industries of Finland

19. Value of New Orders in theElectronics and Electrotechnical Industry in Finland Source: The Federation of Finnish Technology Industries’ orderbooksurvey’srespondentcompanies, latestobservationJanuary-March 2019 Millioneuros, at currentprices Technology Industries of Finland

20. Value of Order Books in theElectronics and Electrotechnical Industry in Finland Source: The Federation of Finnish Technology Industries’ orderbooksurvey’srespondentcompanies, latestobservation 31th March 2019. Millioneuros, at currentprices Combined Technology Industries of Finland

21. Value of New Orders in theMechanical Engineering in Finland Source: The Federation of Finnish Technology Industries’ orderbooksurvey’srespondentcompanies, latestobservationJanuary-March 2019 Millioneuros, at currentprices Technology Industries of Finland

22. Value of Order Books in theMechanical Engineering in Finland Source: The Federation of Finnish Technology Industries’ orderbooksurvey’srespondentcompanies, latestobservation 31th March 2019. Millioneuros, at currentprices Combined Technology Industries of Finland

23. Value of New Orders in the Consulting Engineering in Finland Source: The Federation of Finnish Technology Industries’ orderbooksurvey’srespondentcompanies, latestobservation 31th March 2019. Millioneuros, at currentprices Technology Industries of Finland

24. Value of Order Books in the Consulting Engineering in Finland Source: The Federation of Finnish Technology Industries’ orderbooksurvey’srespondentcompanies, latestobservation 31th March 2019. Millioneuros, at currentprices Combined Technology Industries of Finland

25. Value of New Orders in theInformation Technology* in Finland Source: The Federation of Finnish Technology Industries’ orderbooksurvey’srespondentcompanies, latestobservation 31th March 2019. Millioneuros, at currentprices *) Excl. gameindustry and data center companies Technology Industries of Finland

26. Value of Order Books in theInformation Technology* in Finland Source: The Federation of Finnish Technology Industries’ orderbooksurvey’srespondentcompanies, latestobservation 31th March 2019. Millioneuros, at currentprices *) Excl. gameindustry and data center companies Technology Industries of Finland

27. Technology Industry Personnel in Finland and Abroad Source: Statistics Finland, The Federation of Finnish Technology Industries’ labour force survey, Macrobond March 31 Technology Industries of Finland

28. Technology Industry PersonnelRecruitment in Finland byQuarters Source: The Federation of Finnish Technology Industries’ labour force survey Technology Industries of Finland

29. Technology Industry Personnel in Finland by Branch Source: Statistics Finland, The Federation of Finnish Technology Industries’ labour force survey, Macrobond March 31 Technology Industries of Finland

30. Technology Industry Personnel in Subsidiaries Abroad by Branch Source: The Federation of Finnish Technology Industries’ labour force survey, Macrobond Technology Industries of Finland

31. Technology Industry Personnel in Subsidiaries Abroad by Country Source: The Federation of Finnish Technology Industries’ labour force survey Information from year 2018 Technology Industries of Finland

32. Retirement of Technology Industry Personnel in Finland Source: Wageinquiry of theTechonologyIndustries of Finland, Finnish Centre for Pensions, Statistics Finland Individuals per year Salariedemployees Bluecollaremployees Technology Industries of Finland

33. Retirement of Technology Industry BlueCollarEmployees in Finland Source: Wageinquiry of theTechonologyIndustries of Finland, Finnish Centre for Pensions, Statistics Finland Individuals per year Technology Industries of Finland

34. Overview of theSituation in the Technology Industry and Outlook for theSpring 2019 - Turnover in Finland totalled some EUR 77 billion in 2018. Theturnoverwasup 6 % year-on-year. In 2008, prior to thefinancialcrises, thecorrespondingfigurewas EUR 86 billion. - The monetaryvalue of newordersreportedbetweenJanuary-March 2019 was at thesamelevel as in theprecedingquarter, but 14 higherthan in thecorrespondingperiod in 2018. - At theend of March, thevalue of orderbookswas 6 % higherthan at theend of December, and 14 % higherthan in March 2018. - The turnover of technology industry companies in the spring 2019 is expected to be higher than in the corresponding period last year. - The number of personnel employed by technology industry companies in Finland grew by over 3 per cent in January-March from the 2018 average. The industry employed some 318,500 people, up nearly 7,500 from 2018. In 2008, the industry employed a total of 326,000 people in Finland. - Therecruitment activities increased again in January-March. Companies recruited a total of 12,500 new employees. Technology Industries of Finland

35. World Economic Outlook - Finland as a Part of Global Economy Technology Industries of Finland

36. GDP Growth Forecasts for 2019 Have Been Weakened in Recent Months Source: ConsensusEconomics Forecastperiod Technology Industries of Finland

37. GDP also Grows in Finland, but the Backlog for the Other Euro Area Countries Is up to 7% Lähde: Macrobond Technology Industries of Finland

38. Finnish Exports Growth Has Come to an End during 2018, Backlog for the Other Euro Area Countries is nearly 40% Source: Macrobond, Eurostat Technology Industries of Finland

39. Finland’s Economic Growth Has recently been Supported by Exports, Private Consumption and Construction Source: Macrobond, Statistics Finland Technology Industries of Finland

40. Gross Domestic Product Has Grown Long in Europe and the USA, Finland is Lagging Behind Souce: Macrobond Technology Industries of Finland

41. Lähde: Macrobond In China, Growth Is Slowing Down, Brazil and Russia Are Experiencing Weak Growth Share of global GDP in China, India, Brazil and Russia is 31 % (adjusted for PP) Technology Industries of Finland

42. Latest informationApril 2019 Source: Markit Economic Growth in the Euro Area Has Slowed Down RapidlyPurchase Managers’ Index (PMI), 50 = no changefrompreviousmonth Technology Industries of Finland

43. New Orders in Manufacturing in the Euro Area Have Declined, with Small Growth in Services PurchaseManagers’ Index (PMI), 50 = no changefrompreviousmonth LatestinformationApril 2019 Source: Markit Technology Industries of Finland

44. Industrial Production Has also Grown in Finland, but the Backlog to EU Average Is 15% Source: Macrobond Technology Industries of Finland

45. Industrial Production Volume in the EU Countries Source: Macrobond Technology Industries of Finland

46. Finland’s Industrial Production Has Lagged Behind the Competition Countries Source: Macrobond, The CPB Netherlands Bureau for Economic Policy Analysis Technology Industries of Finland

47. Latest informationApril 2019 Source: Markit Industrial Production in China Is MildlyIncreasingPurchase Managers’ Index (PMI) in manufacturingindustry in China Technology Industries of Finland

48. Latest informationApril 2019 Source: Markit Industrial Production in Russia Is MildlyGrowingPurchaseManagers’ Index (PMI) in manufacturingindustry in Russia Technology Industries of Finland

49. Latest informationApril 2019 Source: Markit Industrial Production in Brazil Is GrowingSlowerPurchase Managers’ Index (PMI) in manufacturingindustry in Brazil Technology Industries of Finland

50. Source: Macrobond Industrial Production in USA is GrowingSlowerPurchase Managers’ Index (PMI) in manufacturingindustry 50 = no changefrompreviousmonth Technology Industries of Finland