Medical Equipment and Supplies in Finland: A Strategic Reference, 2006

Medical Equipment and Supplies in Finland: A Strategic Reference, 2006 Edited by Philip M. Parker, Ph.D. Eli Lilly Cha...

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Medical Equipment and Supplies in Finland: A Strategic Reference, 2006

Edited by

Philip M. Parker, Ph.D. Eli Lilly Chair Professor of Innovation, Business and Society INSEAD (Fontainebleau & Singapore)

www.icongrouponline.com

©2007 Icon Group International, Inc.

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COPYRIGHT NOTICE ISBN 0-497-35938-3 All of ICON Group International, Inc. publications are copyrighted. Copying our publications in whole or in part, for whatever reason, is a violation of copyrights laws and can lead to penalties and fines. Should you want to copy tables, graphs, or other materials from our publications, please contact us to request permission. ICON Group International, Inc. often grants permission for very limited reproduction of our publications for internal use, press releases, and academic research. Such reproduction requires, however, confirmed permission from ICON Group International, Inc. Please read the full copyright notice, disclaimer, and user agreement provisions at the end of this report.

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About Icon Group International, Inc. Icon Group International, Inc.’s primary mission is to assist managers with their international information needs. U.S.-owned and operated, Icon Group has field offices in Paris, Hong Kong, and Lomé, Togo (West Africa). Created in 1994, Icon Group has published hundreds of multi-client databases, and global/regional market data, industry and country publications. Global/Regional Management Studies: Summarizing over 190 countries, management studies are generally organized into regional volumes and cover key management functions. The human resource series covers minimum wages, child labor, unionization and collective bargaining. The international law series covers media control and censorship, search and seizure, and trial justice and punishment. The diversity management series covers a variety of environmental context drivers that effect global operations. These include women’s rights, children’s rights, discrimination/racism, and religious forces and risks. Global strategic planning studies cover economic risk assessments, political risk assessments, foreign direct investment strategy, intellectual property strategy, and export strategies. Financial management studies cover taxes and tariffs. Global marketing studies focus on target segments (e.g. seniors, children, women) and strategic marketing planning. Country Studies: Often managers need an in-depth, yet broad and up-to-date understanding of a country’s strategic market potential and situation before the first field trip or investment proposal. There are over 190 country studies available. Each study consists of analysis, statistics, forecasts, and information of relevance to managers. The studies are continually updated to insure that the reports have the most relevant information available. In addition to raw information, the reports provide relevant analyses which put a more general perspective on a country (seen in the context of relative performance vis-à-vis benchmarks). Industry Studies: Companies are racing to become more international, if not global in their strategies. For over 2000 product/industry categories, these reports give the reader a concise summary of latent market forecasts, pro-forma financials, import competition profiles, contacts, key references and trends across 200 countries of the world. Some reports focus on a particular product and region (up to four regions per product), while others focus on a product within a particular country.



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Table of Contents 1

INTRODUCTION & METHODOLOGY.............................................................................1

1.1

What Does This Report Cover?

1

1.2

How to Strategically Evaluate Finland

1

1.3

Latent Demand and Accessibility in Finland

3

2

MEDICAL EQUIPMENT AND SUPPLIES IN FINLAND................................................5

2.1

Latent Demand and Accessibility: Background

5

2.2

Latent Demand: Market Composition

5

2.3

Latent Demand: Market Data

6

2.4

Latent Demand: Leading Segments

6

2.5

Prospective Buyers

7

2.6

Accessibility: Market Entry

7

2.7

Import Climate

7

2.8

Accessibility: Distribution Strategies

8

2.9 Market Issues and Obstacles 8 2.9.1 Cost-Efficiency Ratio ................................................................................................................................. 8 2.9.2 Customer-Supplier Relationship ................................................................................................................ 8 2.9.3 Company Image ......................................................................................................................................... 8 2.9.4 Service and Maintenance............................................................................................................................ 9 2.10

Accessibility: Local Production

9

2.11

Accessibility: Foreign Entrants

9

2.12

Key Contacts

9

3 FINANCIAL INDICATORS: SURGICAL AND MEDICAL INSTRUMENTS AND APPARATUS................................................................................................................................11 3.1 Overview 11 3.1.1 Financial Returns and Gaps in Finland..................................................................................................... 12 3.1.2 Labor Productivity Gaps in Finland ......................................................................................................... 15 3.1.3 Limitations and Extensions ...................................................................................................................... 15 3.2 Financial Returns in Finland: Asset Structure Ratios 16 3.2.1 Overview .................................................................................................................................................. 16 3.2.2 Assets – Definitions of Terms .................................................................................................................. 16 3.2.3 Asset Structure: Outlook .......................................................................................................................... 19 3.2.4 Large Variances: Assets ........................................................................................................................... 20 3.2.5 Key Percentiles and Rankings .................................................................................................................. 23



Contents

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3.3 Financial Returns in Finland: Liability Structure Ratios 38 3.3.1 Overview .................................................................................................................................................. 38 3.3.2 Liabilities and Equity – Definitions of Terms .......................................................................................... 38 3.3.3 Liability Structure: Outlook ..................................................................................................................... 40 3.3.4 Large Variances: Liabilities ..................................................................................................................... 41 3.3.5 Key Percentiles and Rankings .................................................................................................................. 44 3.4 Financial Returns in Finland: Income Structure Ratios 57 3.4.1 Overview .................................................................................................................................................. 57 3.4.2 Income Statements – Definitions of Terms .............................................................................................. 57 3.4.3 Income Structure: Outlook ....................................................................................................................... 60 3.4.4 Large Variances: Income.......................................................................................................................... 61 3.4.5 Key Percentiles and Rankings .................................................................................................................. 64 3.5 Financial Returns in Finland: Profitability Ratios 79 3.5.1 Overview .................................................................................................................................................. 79 3.5.2 Ratios – Definitions of Terms .................................................................................................................. 79 3.5.3 Ratio Structure: Outlook .......................................................................................................................... 81 3.5.4 Large Variances: Ratios ........................................................................................................................... 82 3.5.5 Key Percentiles and Rankings .................................................................................................................. 85 3.6 Productivity in Finland: Asset-Labor Ratios 100 3.6.1 Overview ................................................................................................................................................ 100 3.6.2 Asset to Labor: Outlook ......................................................................................................................... 101 3.6.3 Asset to Labor: International Gaps......................................................................................................... 102 3.6.4 Key Percentiles and Rankings ................................................................................................................ 105 3.7 Productivity in Finland: Liability-Labor Ratios 120 3.7.1 Overview ................................................................................................................................................ 120 3.7.2 Liability to Labor: Outlook .................................................................................................................... 121 3.7.3 Liability and Equity to Labor: International Gaps.................................................................................. 122 3.7.4 Key Percentiles and Rankings ................................................................................................................ 125 3.8 Productivity in Finland: Income-Labor Ratios 138 3.8.1 Overview ................................................................................................................................................ 138 3.8.2 Income to Labor: Outlook ...................................................................................................................... 139 3.8.3 Income to Labor: Gaps ........................................................................................................................... 140 3.8.4 Key Percentiles and Rankings ................................................................................................................ 143

4

MACRO-ACCESSIBILITY IN FINLAND ......................................................................158

4.1 Executive Summary 158 4.1.1 Nokia – A Big Company in a Small Country......................................................................................... 158 4.1.2 Finnish-U.S. Trade ................................................................................................................................. 158 4.1.3 Finland: A Springboard to Russia and the Baltic States......................................................................... 158 4.2 Economic Fundamentals and Dynamics 159 4.2.1 Government Intervention Risks.............................................................................................................. 159 4.2.2 Balance of Payments Issues ................................................................................................................... 159 4.2.3 Infrastructure Development.................................................................................................................... 160 4.3 Political Risks 160 4.3.1 Economic Relationship with the United States ...................................................................................... 160 4.3.2 The Political System............................................................................................................................... 161 www.icongrouponline.com


Contents

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4.4 Marketing Strategies 161 4.4.1 Creating a Sales Office........................................................................................................................... 161 4.4.2 Creating a Joint Venture......................................................................................................................... 161 4.4.3 Agents and Distributors.......................................................................................................................... 161 4.4.4 Checking Bona Fides.............................................................................................................................. 162 4.4.5 Distribution Channel Options................................................................................................................. 162 4.4.6 Selling Strategies.................................................................................................................................... 163 4.4.7 Pricing and Licensing............................................................................................................................. 163 4.4.8 Advertising Options ............................................................................................................................... 163 4.4.9 Trade Promotion..................................................................................................................................... 164 4.4.10 Public Sector Marketing......................................................................................................................... 165 4.5 Import and Export Regulation Risks 166 4.5.1 Adherence to Free Trade Agreements .................................................................................................... 166 4.5.2 Trade Barrier Risks ................................................................................................................................ 166 4.5.3 Tariff Rates............................................................................................................................................. 166 4.5.4 Restrictions on Imports .......................................................................................................................... 167 4.5.5 Local Standards ...................................................................................................................................... 167 4.5.6 Labeling Issues....................................................................................................................................... 169 4.5.7 Controls on Exports................................................................................................................................ 170 4.5.8 Import Tariffs and License Requirements .............................................................................................. 170 4.5.9 Customs Regulations and Contact Information...................................................................................... 171 4.5.10 Entering Temporary Imports .................................................................................................................. 171 4.5.11 Additional Trade Issues.......................................................................................................................... 171 4.5.12 Free Trade Zones and Warehouses......................................................................................................... 172 4.6 Investment Climate 172 4.6.1 Openness to Foreign Investment ............................................................................................................ 172 4.6.2 Conversion and Transfer Policies........................................................................................................... 173 4.6.3 Expropriation and Compensation ........................................................................................................... 173 4.6.4 Dispute Settlement ................................................................................................................................. 173 4.6.5 Performance Requirements and Incentives ............................................................................................ 173 4.6.6 Right to Private Ownership and Establishment ...................................................................................... 174 4.6.7 Intellectual Property Risks ..................................................................................................................... 174 4.6.8 Transparency of the Regulatory System................................................................................................. 175 4.6.9 Capital Market Risks .............................................................................................................................. 175 4.6.10 Political Violence ................................................................................................................................... 175 4.6.11 Corruption .............................................................................................................................................. 175 4.6.12 Bilateral Investment Agreements ........................................................................................................... 176 4.6.13 OPIC and Other Investment Insurance................................................................................................... 176 4.6.14 Labor ...................................................................................................................................................... 177 4.7 Trade and Project Financing 177 4.7.1 The Banking System .............................................................................................................................. 177 4.7.2 Foreign Exchange Control Risks............................................................................................................ 177 4.7.3 General Financing Availability .............................................................................................................. 178 4.7.4 Financing Export Strategies ................................................................................................................... 178 4.7.5 Types of Available Export Financing and Insurance ............................................................................. 178 4.7.6 Financing Projects .................................................................................................................................. 180 4.7.7 Banks with Correspondent Banking Arrangements ............................................................................... 180 4.8 Travel Risks 180 4.8.1 Local Business Practices ........................................................................................................................ 180



Contents 4.8.2 4.8.3 4.8.4

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Visa Requirements and Travel Information ........................................................................................... 180 Infrastructure for Conducting Business.................................................................................................. 181 Country Data .......................................................................................................................................... 182

4.9 Key Contacts 182 4.9.1 U.S. Embassy Trade Personnel .............................................................................................................. 182 4.9.2 Washington-Based U.S. Government Contacts...................................................................................... 183 4.9.3 Chambers of Commerce......................................................................................................................... 184 4.9.4 World Trade Center in Helsinki ............................................................................................................. 185 4.9.5 Trade Associations ................................................................................................................................. 185 4.9.6 Finnish Government Agencies ............................................................................................................... 187 4.9.7 Market Research Firms .......................................................................................................................... 189 4.9.8 Commercial Banks ................................................................................................................................. 189

5

DISCLAIMERS, WARRANTEES, AND USER AGREEMENT PROVISIONS .........191

5.1

Disclaimers & Safe Harbor

191

5.2

Icon Group International, Inc. User Agreement Provisions

192



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1 1.1

INTRODUCTION & METHODOLOGY WHAT DOES THIS REPORT COVER?

The primary audience for this report is managers involved with the highest levels of the strategic planning process and consultants who help their clients with this task. The user will not only benefit from the hundreds of hours that went into the methodology and its application, but also from its alternative perspective on strategic planning relating to medical equipment and supplies in Finland. As the editor of this report, I am drawing on a methodology developed at INSEAD, an international business school (www.insead.edu). For any given industry or sector, including medical equipment and supplies, the methodology decomposes a country’s strategic potential along four key dimensions: (1) latent demand, (2) micro-accessibility, (3) proxy operating proforma financials, and (4) macro-accessibility. A country may have very high latent demand, yet have low accessibility, making it a less attractive market than many smaller potential countries having higher levels of accessibility. With this perspective, this report provides both a micro and a macro strategic profile of medical equipment and supplies in Finland. It does so by compiling published information that directly relates to latent demand and accessibility, either at the micro or macro level. The reader new to Finland can quickly understand where Finland fits into a firm’s strategic perspective. In Chapter 2, the report investigates latent demand and micro-accessibility for medical equipment and supplies in Finland. In Chapters 3 and 4, the report covers proxy operating pro-forma financials and macro-accessibility in Finland. Macro-accessibility is a general evaluation of investment and business conditions in Finland.

1.2

HOW TO STRATEGICALLY EVALUATE FINLAND

Perhaps the most efficient way of evaluating Finland is to consider key dimensions which themselves are composites of multiple factors. Composite portfolio approaches have long been used by strategic planners. The biggest challenge in this approach is to choose the appropriate factors that are the most relevant to international planning. The two measures of greatest relevance to medical equipment and supplies are “latent demand” and “market accessibility”. The figure below summarizes the key dimensions and recommendations of such an approach. Using these two composites, one can prioritize all countries of the world. Countries of high latent demand and high relative accessibility (e.g. easier entry for one firm compared to other firms) are given highest priority. The figure below shows two different scenarios. Accessibility is defined as a firm’s ease of entering or supplying from or to a market (the “supply side”), and latent demand is an indicator of the potential in serving from or to the market (the “demand side”).



Introduction & Methodology

2

Framework for Prioritizing Countries Demand/Market Potential Driven Firm

High

Highest Priority

High Priority Latent Demand

Moderate Priority Low Priority

Low

Lowest Priority Low

High Relative Accessibility

Accessibility/Supply Averse Firm High Highest Priority High Priority Latent Demand

Moderate Priority Low Priority Lowest Priority

Low High

Low Relative Accessibility



Introduction & Methodology

3

In the top figure, the firm is driven by market potential, whereas the bottom figure represents a firm that is driven by costs or by an aversion to difficult markets. This report treats the reader as coming from a “generic firm” approaching the global market – neither a market-driven nor a costdriven company. Planners must therefore augment this report with their own company-specific factors that might change the priorities (e.g. a Canadian firm may have higher accessibility in Canada than a German firm).

1.3

LATENT DEMAND AND ACCESSIBILITY IN FINLAND

This report provides a detailed overview of factors driving latent demand and accessibility for medical equipment and supplies in Finland. Latent demand is largely driven by economic fundamentals specific to medical equipment and supplies. This topic is discussed in Chapter 2 using work carried out in Finland on behalf of American firms and authored by the United States government (typically commercial attachés or similar persons in local offices of the U.S. Department of State). I have included a number of edits to clarify the information provided. Latent demand only represents half of the picture. Chapter 2 also deals with micro-accessibility for medical equipment and supplies in Finland. I use the term “micro” since the discussion is focused specifically on medical equipment and supplies. Chapter 3 is also a stand-alone report that I have authored. It covers proxy pro-forma financial indicators of firms operating in Finland. I use the word “proxy” because the provided figures only cover a “what if” scenario, based on actual operating results for firms in Finland. The numbers are only indicative of an average firm whose primary activity is in Finland. It covers a vertical analysis of the maximum likelihood balance sheet, income statement, and financial ratios of firms operating in Finland. It does so for a particular Standard Industrial Classification (SIC) code. That code covers “surgical and medical instruments and apparatus”, as defined in Chapter 3. Again, while “surgical and medical instruments and apparatus” does not exactly equate to “medical equipment and supplies”, it nevertheless gives an indicator of how Finland compares to other countries for a proxy adjacent category along various dimensions. Chapter 4 deals with macro-accessibility and covers factors that go beyond medical equipment and supplies. A country may at first sight appear to be attractive due to a high latent demand, but it is often less attractive when one considers at the macro level how easy it might be to serve that entire potential and/or general business risks. While accessibility will always vary from one company to another for a given country, the following domains are typically considered when evaluating macro-accessibility in Finland: •

Openness to Trade in Finland

•

Openness to Direct Investment in Finland

•

Local Marketing and Entry Strategy Alternatives

•

Local Human Resources



Introduction & Methodology •

4

Local Risks

Across these domains, a number of not-so-obvious factors can affect accessibility and risk. These are covered in the Chapter 4, which is a general overview of investment and business conditions in Finland. Chapter 4 is also presented from the perspective of an American firm, though is equally applicable to most firms entering Finland. This chapter is also authored by local offices of the U.S. government, as is Chapter 2. Likewise, I have included a number of edits to clarify the provided information as it relates to the general strategic framework mentioned earlier.



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2 2.1

MEDICAL EQUIPMENT AND SUPPLIES IN FINLAND LATENT DEMAND AND ACCESSIBILITY: BACKGROUND

High quality and technically sophisticated medical equipment has large market potential in Finland. The United States is the most important exporter of medical equipment to Finland with an approximate 26% share of the import market. Finland also produces high technology medical equipment; 80% of local production is exported. Increasing competition in the marketplace is expected as local production expands.

2.2

LATENT DEMAND: MARKET COMPOSITION

In Finland, the total market for medical equipment was estimated at $756 million in 2005 by the Finnish Healthcare Technology Association. The operating costs of Finnish hospitals have been reduced, and major hospital procurement is mainly replacing older equipment and buying some new. However, investments in new medical equipment within the private health care sector are expected to increase. The population of Finland is 5.2 million. In total, 440 municipalities across the country have the responsibility for organizing health care as well as specialist medical care for their residents. Finland is divided into 21 hospital districts, including the autonomous province of Aland island that forms its own hospital district. Each district has a central and regional hospital. Out of the central hospitals, five are university hospitals offering more demanding forms of specialist medical care. Each municipality has to belong to one hospital district that organizes and provides specialist medical services for the population of its area. Private health care complements the public healthcare system. Private services are mainly concentrated in larger cities, and they offer medical and dental services, physiotherapy, and occupational health care. There are a few private hospitals in Finland, and sickness insurance covers a part of private medical and dental expenses. There is also a partial reimbursement of the costs of tests and treatments prescribed by a doctor. Total annual expenditures for new equipment are determined in the annual budgets of hospitals. These budgets are prepared according to estimates based on the previous year. The market is very receptive to U.S. products. A considerable portion of the market is penetrated with foreign production, and products from the United States are considered to be very competitive.



Medical Equipment and Supplies

2.3

6

LATENT DEMAND: MARKET DATA

Imports, 2003-2005 (USD Millions) Total Market Size Local Production Exports Imports Imports from the USA

2003 607 1,060 848 395 109

2004 634 1,033 827 428 110

2005 756 1,175 940 521 111

Exchange rate: $1= Euro 0.80 (year 2005 average) Sources: The Finnish Healthcare Technology Association, Finnish Customs and local sources. Local production and the year 2005 U.S. imports figure are unofficial estimates. The most important exporters of medical equipment to Finland are: •

USA 25.6%

•

Germany 16.4%

•

Sweden 10.2%

•

France 6.3%

•

Japan 5.8%

•

Switzerland 5.6%

•

Netherlands 5.4%

•

The UK 5.1%

•

Denmark 3.5%

•

Ireland 2.4%

•

Others 13.7%

Source: The Finnish Healthcare Technology Association

2.4

LATENT DEMAND: LEADING SEGMENTS

High quality and technically sophisticated medical equipment has the best market potential in Finland, especially equipment that increases efficiency and reduces occupancy rates in hospitals. Products, such as the following, have the best sales potential in Finland: •

Patient monitoring systems.

•

Mini invasive surgery (MIS).

•

Day surgery equipment.



Medical Equipment and Supplies •

Magnetic resonance imaging (MRI) equipment.

•

Video endoscopes.

•

Digital image processing.

•

Picture archiving.

2.5

7

PROSPECTIVE BUYERS

Municipal health centers provide primary health care. A municipality may run its own health center or do so with other municipalities. Some purchase nearly all health services from private providers. Health centers have many branches and wards for bed care. Primary health care also covers maternity and child welfare clinics, school health care, medical rehabilitation, and dental care. Most end users in the Finnish medical sector are public ones. There are five university hospitals, 16 central hospitals, and 25 smaller, regional hospitals in Finland. In addition, there are hospital sections in subsidized health centers. Public, subsidized hospitals are owned by municipalities. About 10% of all hospitals are private. Due to budget cuts in public health care and reduced occupancy rates, there are no plans currently to build new hospitals in Finland. Finnish hospitals are very eager to try out new technology in the implementation of most modern treatment methods. Implementation of new technologies is rather effective, as Finnish medical personnel are very technology literate. Local distributors provide the market with equipment packages and maintenance programs. All regular residents in Finland are entitled to sickness insurance compensation. Insurance covers the daily sickness benefit and rehabilitation allowance and reimburses private medical and dental fees, laboratory and treatment costs, pharmaceutical expenses as well as travel expenses related to treatment. It also covers maternal, paternal, and parental allowances; the special maternity allowance; and the special care allowance. The amount of sickness insurance depends on what is being claimed for, and the allowances are assessed according to income.

2.6

ACCESSIBILITY: MARKET ENTRY

Finland joined the European Union (EU) in 1995. As a member of the EU, Finland’s local legislation concerning medical devices complies with EU directives. Please see www.nam.fi/english/legislation/index.html for further information on both local and EU legislation. Medical trade is duty-free within the EU. Import duties are collected from production coming from non-EU countries. The amount of duty for medical equipment exported from the United States fluctuates according to a specific product, ranging from 5-12%.

2.7

IMPORT CLIMATE

The receptivity of the Finnish market for foreign medical equipment is very high, as the majority of equipment used in Finland is imported. Domestic production is getting stronger, though. If there is a domestic product competing with the imported ones, the Finnish competitor holds an advantage. This is partly due to the fact that domestic products are reliable and competitive in price.




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There are no restrictions on imports in Finland, as long as they comply with EU qualifications. Although marketing requires thorough knowledge of end user needs, the import climate is receptive to equipment that is new and of good quality. There is hard competition in the market, however.

2.8

ACCESSIBILITY: DISTRIBUTION STRATEGIES

It is highly recommended to use local distributors with good after-sales services. It is not recommended to appoint a regional distributor in other Nordic countries to service the Finnish market. Finnish buyers are reluctant to deal with a representative located outside the country. The Finnish health care sector usually buys equipment and supplies directly from distributors. In some cases hospitals have also formed joint procurement organizations. All major public procurements must be published in the Finnish Official Journal and later in the EU Official Journal. Procurement procedures can be either open or restricted.

2.9

MARKET ISSUES AND OBSTACLES

According to local sources, the following criteria are taken into consideration when choosing a supplier.

2.9.1

Cost-Efficiency Ratio

Hospitals are focusing on the latest available technology and cost savings, which make quality the most important purchasing criterion in Finland. High price is justified, if the equipment increases efficiency and saves money in the long run. Reliability of the product is very important. Finnish hospital personnel are very technologically literate, which supports the implementation of new equipment and increases demand for high technology where it saves resources.

2.9.2

Customer-Supplier Relationship

Mutual trust and personal contacts are important in customer-supplier relationships. Doctors are primary decisionmakers when procuring new equipment; nurses or administrators of hospitals are secondary decision-makers. Customers value long-term relationships and reliability of the supplier. Buyers are reluctant to deal with foreign suppliers.

2.9.3

Company Image

Marketing of medical equipment is partially based on company image and brand marketing. Therefore, company image and brand awareness are important. U.S. companies in general have a good reputation in Finland. Some doctors prefer European or Japanese products rather than those from the United States, often depending on where they did their advanced training.




2.9.4

9

Service and Maintenance

To ensure proper service and maintenance, a local distributor or a subsidiary is highly recommended. It is not recommended to have a service center in neighboring countries to serve the Finnish market. However, a service center in Finland can be used to support market activity in Western Russia and the Baltic countries. According to local sources, Finnish hospitals are ready to pay a high price for good quality equipment that will reduce operating costs of the hospitals. Leasing agreements have been rare, but leasing markets are currently developing. Offering financing support may provide a competitive benefit in the Finnish market for medical equipment. Hospitals have very similar investment patterns. They seem to invest in brands that the other hospitals are also using. It is very common that the three biggest brands conquer around 80% of the total market in a particular area. A strong periodical campaign of a small brand may bring very good results, if the barriers of collectiveness can be broken.

2.10

ACCESSIBILITY: LOCAL PRODUCTION

Local production for medical equipment is well known for its quality and high technology. It is concentrated in specialized sectors, such as dental equipment, anesthesia monitors, specialized x-ray equipment, and chemical analyzers. Due to the high degree of specialization connected to the small size of the domestic market, over 80% of all domestic production is exported. This is also why domestic production and imports do not overlap and compete much with each other. However, the allocations are changing as local production is developing. Finnish medical equipment is considered to be very competitive and of very high quality.

2.11

ACCESSIBILITY: FOREIGN ENTRANTS

With an import market share of 26%, the United States is the most important external supplier of medical equipment in Finland. Other important external supplier countries are Germany, Sweden, France, Japan, and Switzerland, in rank order. A very strict order is hard to establish, though, because of the high specialization of the industry. A purchasing decision in just one field may affect greatly the importance of a single country, as the volumes are relatively low from countries other than the United States. Therefore volumes from other countries cannot be accurately determined because of variations in purchasing patterns.

2.12

KEY CONTACTS

•

Ministry of Social Affairs and Health: www.stm.fi

•

National Agency for Medicines: www.nam.fi

•

VTT Industrial Systems, Medical Device Technology Group: www.vtt.fi




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Association of Laboratory and Health Care Products Suppliers — SAI-LAB ry P.O. Box 150 FI-00251 Helsinki Finland Tel: +358 9-431 560 Fax: +358 9-4315 6105 E-mail: [email protected] Finnish Healthcare Technology Association — FiHTA P.O. Box 325 FI 00131 Helsinki Finland Tel: +358 9-6220 410 Fax: +358 9-176 135 E-mail: [email protected] Web site: www.ytl.fi/toimialat/fihta/index.html (information available in Finnish only)



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3 3.1

FINANCIAL INDICATORS: SURGICAL AND MEDICAL INSTRUMENTS AND APPARATUS OVERVIEW

Is Finland competitive? With the globalization of markets, the increased mobility of corporate assets, and the need for productive human resources, this question has become all the more complex to answer. The financial indicators section was prepared to tackle this question by focusing on certain fundamentals: financial performance and labor productivity. Rather than focus on the economy as a whole, the analysis presented here considers only one sector: surgical and medical instruments and apparatus. We are essentially interested in the degree to which firms operating in Finland have fundamentally different financial structures and performance compared to firms located elsewhere. With respect to this view of competitiveness, if one were to invest or operate in Finland, how would the firm’s asset structure likely vary compared to a firm operating in some other country in Europe or average location in the world? In Finland, do firms typically hold more cash and other short term assets, or do they concentrate their assets in physical plant and equipment? On the liability side, do firms operating in Finland have a higher percent of payables compared to other firms operating in Europe, or do they hold a higher concentration of long term debt? The structure of the income statement is also telling. Do firms operating in Finland have relatively higher costs of goods sold, operating costs, or income taxes compared to firms located elsewhere in the region or the world in general? Are returns on equity higher in Finland? Are profit margins greater? Are inventories held longer? The financial indicators section was designed to answer these and similar questions that naturally affect one’s decision to invest or operate in Finland. Again, we are particularly interested in surgical and medical instruments and apparatus, and not the economy as a whole. In many instances, people make all the difference. In addition to financial competitiveness, we consider the extent to which labor deployment and productivity in Finland differs from regional and global benchmarks. In this case, we are interested in the amount of labor required to operate a typical business in Finland and the likely returns on this human investment. What is the typical ratio of short-term and long-term assets to employee (employed in surgical and medical instruments and apparatus operations)? What are typical capital-labor ratios? How different are these ratios to those in Europe in general and the world as a whole? What are the average sales and net profits per employee in Finland compared to regional benchmarks? The goal of this section is to assist managers in gauging the competitive performance of Finland at the global level for surgical and medical instruments and apparatus. With the globalization of markets, greater foreign competition, and the reduction of entry barriers, it becomes all the more important to benchmark Finland against other countries on a worldwide basis. Doing so, however, is not an obvious task. This report generates international benchmarks and measures gaps that might be revealed from such an exercise. First, data is collected from companies across all regions of the world. For each of these firms, data are standardized into comparable categories (assets, liabilities, income and ratios), by country, region and on a worldwide basis. From there, we eliminate all currency effects by standardizing within each category. Global benchmarks are then compared to those estimated for surgical and medical instruments and apparatus in Finland. Though we heavily rely on historical performance, the figures reported are not historical but are forecasts and projections for the coming fiscal year.



Financial Indicators

3.1.1

12

Financial Returns and Gaps in Finland

The approach used in this report to evaluate operating performance for surgical and medical instruments and apparatus in Finland is called "vertical analysis." For those unfamiliar with this type of analysis, frequently taught in graduate schools of business, the reader is recommended Jae K. Shim and Joel G. Siegel’s recent book titled Financial Management.1 In their discussion of financial statement analysis and ratios, Skim and Siegel (p. 42-43), describe common-size statement (vertical analysis) as follows: A common-size statement is one that shows each item in percentage terms. Preparation of common-size statements is known as vertical analysis, in which a material financial statement item is used as a base value and all other accounts on the financial statement are compared to it. In the balance sheet, for example, total assets equal 100 percent, and each individual asset is stated as a percentage of total assets. Similarly, total liabilities and stockholders’ equity are assigned a value of 100 percent and each liability or equity account is then stated as a percentage of total liabilities and stockholders’ equity, respectively. … For the income statement, a value of 100 percent is assigned to net sales, and all other revenues and expense accounts are related to it. It is possible to see at a glance how each dollar of sales is distributed among various costs, expenses, and profits. The authors suggest that vertical analyses involve industry-based comparisons. Such a comparison “allows you to answer the question, ‘How does a business fare in the industry?’ You must compare the company’s ratios to… industry norms.” (p. 43-44) This approach is extended to country competitiveness (in this case Finland) for a particular sector (in this case surgical and medical instruments and apparatus). This involves calculating country, regional and global norms. This introduction will describe the seven-stage methodology used to perform this analysis. Each stage should be seen as a working assumption behind the numbers presented in later chapters. Stage 1. Industry Classification. This stage begins by classifying the company into an industry. For this, we have relied on a combination of the North American Industry Classification System (NAICS pronounced “Nakes”), a relatively new system for classifying business establishments, and the older Standard Industrial Classification (SIC) system. Adopted in 1997, NAICS codes are the new industry classification codes used by statistical agencies of the United States. NAICS was developed jointly by the U.S., Canada, and Mexico to provide comparability in statistics about business activity across North America. After 60 years of service, the outdated SIC system was retired on October 1, 2000, leaving only the NAICS codes for official use. The NAICS classification system adds some 350 new industries and represents a revision to over 60% of the previous SIC industries. Despite its official retirement, the SIC system is still commonly used (and often reported in firm’s financial statements). For most companies in the world, classification within either the new NAICS or older SIC systems is a rather straight forward exercise. For some, however, it can be problematic. This is true for several reasons. The first being that the SIC or NAICS classification systems are rather broad for many product and industry categories (a firm’s products or services may be only a minor aspect of the classification’s definition). The second is that some firms’ activities span multiple codes. Finally, it is possible that a firm is classified by one source using its SIC code, and by another using its NAICS code, and by a third using both. Furthermore, some sources do not report either code, but instead use qualitative statements of the firm’s activities. Nevertheless, if one wishes to pursue a vertical analysis, some classification needs to take place which selects a peer group. In making this classification, one can rely on a number of sources. In some countries, firms must “self” classify in official periodic reports (e.g. annular reports, 10Ks, etc.) to public authorities (such as the Securities and Exchange Commission). These reports are then open for public scrutiny (e.g. EDGAR filings). In other cases, commercial data vendors or private research firms provide SIC/NAICS codes for specific companies. These include: •

Bloomberg - www.bloomberg.com

•

Datastream (Thomson Financial) - www.datastream.com

1

Skim and Siegel (2000), Financial Management published by Barron’s Educational Series, Inc. (BARON’S BUSINESS LIBRARY Series), ISBN: 0-7641-1402-6. www.icongrouponline.com


Financial Indicators •

13

Dun & Bradstreet - www.dnb.com

•

Hoovers - www.hoovers.com

•

HarrisInfoSource - www.HarrisInfo.com

•

InfoUSA - www.infousa.com

•

Investext (Thomson Financial) - www.investext.com

•

Kompass International Neuenschwander SA. – www.kompass.com

•

Moody's Investors Service - www.moodys.com

•

Primark (Thomson Financial) - www.primark.com

•

Profound (The Dialog Corporation – A Thomson Company) - www.profound.com

•

Reuters - www.reuters.com

•

Standard & Poor's - www.standardandpoors.com

It is interesting to note that commercial vendors often report different qualitative descriptions and industrial classifications from one to another. These descriptions and classifications may also be different from those reported by the firm itself. Anyone hoping to perform a benchmarking study, therefore, has to make a judgment call across these various sources in order to determine a reasonable classification. In this report, we have decided a metaanalytic process, by combining various sources (including linking a classification’s keywords to qualitative descriptions of the firm’s product line). In cases of inconsistency, the most recent or globally comparable available is chosen. Again, the overall goal is to classify firms, which either produce similar products, offer similar services, or are in the same stage of the value chain for a particular industrial classification. In the case of this report, the SIC code selected is: 3841 which is defined as “surgical and medical instruments and apparatus”. This classification should be seen as a working assumption. In order to obtain a more detailed discussion of this classification, the reader is referred to the Web sites developed by the U.S. Census Bureau: http://www.census.gov/epcd/www/naics.html. Basic definitions and descriptions are provided at: http://www.census.gov/epcd/www/drnaics.htm#q1. A full correspondence table between SIC and NAICS codes, and detailed definitions are given at http://www.census.gov/epcd/www/naicstab.htm. Stage 2. Firm-Level Data Collection. A global search was conducted across over 20,000 companies in over 40 major economies, including Finland, for those that report financials (balance sheet and income statements) and that are involved in surgical and medical instruments and apparatus. It should be noted that the public-domain financials can be either historic or projections. It should also be noted that even historic figures can be modified in the future and often represent “estimates” of performance. Stage 3. Standardization. Once collected, public domain financial figures of firms identified in Stage 2 are standardize into comparable categories (assets, liabilities, and income). Again, these are limited to firms involved in some aspect of surgical and medical instruments and apparatus (i.e. are members of the value chain). From there, we eliminate all currency effects by standardizing within each category (creating ratios). In order to maintain comparability over time and across countries, vertical analysis is used. In the case of a firm’s assets, we treat the total assets as equaling 100, irrespective of the value of the local currency. All other assets are then calculated as a percent of total assets. In this way, the structure of the firm’s assets can be easily interpreted and compared with international benchmarks. For liabilities, total liabilities and equity are indexed to equal to 100. For the income statement, total revenue is indexed to equal 100, and all other figures are calculated as a percent of these figures. Stage 4. Filtering. Not all the firms selected in Stage 2 or the ratios calculated in Stage 3 are used for the country, regional or global benchmarks, as a number of companies are purposely dropped from the analysis. This is justified by the “outlier” phenomenon that plagues such analysis. The problem lies in that any given company in the benchmarking pool may be facing some exceptional event or may be organized in an exceptional way so as to make its ratios vastly different from the norm. By including such firms, the global benchmarks can be overly skewed. In many countries, firms are organized into holding groups. These groups nominally have very few employees (e.g. 4




14

to 25 employees), but have extremely large assets, liabilities, or revenues. As such, the inclusion or exclusion of firms having this form of management can affect the ratios and benchmarks reported. Likewise, some firms have no net sales, no assets, no liabilities, or ratios. Others have ratios that appear implausible for a normal or viable company. In order to not allow these firms to affect the global benchmarks, only those firms with reasonable financials have been chosen. Finally, in some countries, detailed financials are not available or are not comparable to either the company in question or the global norm (e.g. various forms of depreciation). In this case, only those which exist and are comparable are reported. The details, therefore, that comprise a given ratio or set of ratios may not be reported. This may lead to the addition of several ratios, not summing to the whole. Stage 5. Calculation of Global Norms. Once the filtering process has eliminated outliers, a final list of companies included is compiled. Based on this list, the ratios discussed in Stage 3 are calculated for every firm, and then averaged to create country, regional and global benchmarks. The world average is calculated using each country’s population as a weight. Stage 6. Projection of Deviations. The goal of this report is not only to estimate raw ratios or averages, but also to present the difference between Finland and projected global averages for that same ratio. Furthermore, it can be insightful to know the location of each ratio within the distribution of the countries represented in Stage 5. These deviations, in fact, can be seen as projections or likely scenarios for the future. This is often true for two reasons. First, while a company’s financials change from year to year, its ratios are often stable. This is especially true for the country, regional and global benchmarks which represent averages across companies. From a purely Bayesian sense, the difference between the company’s recent ratios and the benchmarks are a reasonable prior for future deviations. This is true, even if the entire industry is hit by an external or exogenous shock, such as an oil crisis or economic slowdown. In other words, we assume that the structure of the variance in the industry’s financials remains stable. Second, many of the data are based on preliminary reports that might be changed in future filings. As forecasts, therefore, the numbers derived from these are also forecasts of past and future performance (with associated uncertainties). The calculation of the difference between a country’s ratios and the global benchmarks is meant to yield roughly approximate forecasts, or "useful measures". Within Europe, the reliability of estimates varies from one country to another for those ratios given in tables that report national averages. This is true because reliable source statistics are not available for all countries in Europe. Countries with the highest reliability, or sample sizes after filtering in Stage 4, include Denmark, France, Germany, Netherlands, Sweden, Switzerland, and United Kingdom. Others are generally econometrically extrapolated using models that use country characteristics (e.g. income per capita) as independent variables (i.e. countries having similar economic structures are assumed to have similar operating ratios). Again, the forecasts are based on the assumption of relative stability. This assumption has proven extremely robust in previous applications of this methodology (i.e. today’s weather is a good predictor of tomorrow’s weather, but not the weather three years from now). The results reported should be viewed as those for a “proto-typical” firm operating in Finland whose primary activity is surgical and medical instruments and apparatus. Stage 7. Projection of Ranks and Percentiles. Based on the calculation of deviations, relative ranks and percentiles are calculated across the firms used in the benchmarks. The percentile estimates the percent of a representative sample of countries in the world having values of the ratio lower than Finland. It is important to note that a percentile being high (or low) does not mean good (or bad) past, present or future financial performance. The reader must draw this conclusion on their own. The estimates provided were created to provide managerial insight, and not a recommendation with respect to particular investments within any country. We graphically report, for each part of the financial statement, the larger structural differences between Finland and the regional and global benchmarks, and provide a summary table of ranks and percentiles. These are estimates for firm which would be involved in surgical and medical instruments and apparatus. A deviation from the global norm need not be a bad sign. Rather, it is simply a substantial difference that might merit further attention or perhaps signal a country's relative strength or weakness for the coming fiscal year.




3.1.2

15

Labor Productivity Gaps in Finland

In the case of labor productivity measures, this report maintains comparability over time and across countries by using a common currency (the US dollar) and relates each measure to a “per employee basis”. Ratios are projected using raw financial statistics and, as ratios, are therefore comparable. Given a country’s human resource ratios, the resulting figures are benchmarked across regional and global averages. The seven stage approach given above is used in a similar manner. We then report, for each part of the financial statement, the larger labor productivity gaps that Finland has vis-à-vis the worldwide average (for surgical and medical instruments and apparatus). Again, a gap need not be a bad sign. Rather, it is simply a substantial difference that might merit further attention or signal a firm’s relative incentive to invest locally. All figures are projections, so due caution is required.

3.1.3

Limitations and Extensions

Shim and Siegal (p. 60) stress that “while ratio analysis is an effective tool for assessing a company’s financial condition,” operating Finland or any other country, “its limitations must be recognized.” They find that (p. 59) “no single ratio or group of ratios is adequate for assessing all aspects of a company’s financial condition” operating in a particular country. The authors note the following limitations associated with ratio analyses which apply to the global benchmarking and vertical analysis presented here (p.60): •

Accounting standards or policies may limit useful comparisons across companies

•

Management accounting practices across companies and countries may not be performed in the same style

•

Ratios are static and do not reveal future trends

•

Ratios do not indicate the quality of the components used to calculate the ratios (i.e. ratios have ambiguous interpretations)

•

Reported ratios may not reflect real values

•

Companies may be highly diversified, limiting the comparability of their ratios to others

•

Industry averages or norms are approximate; finer industry definitions may be required for certain interpretations or comparisons

•

Financial statements and resulting ratios often mean different things to different people depending on their points of view or motivations.

Again, all figures reported here are estimates, so due caution is required. The above caveats, and the fact that statements made in this report are forward-looking, requires that this point be emphasized. A number of intervening factors can have material effect on the ratios and variances forecasted. These include changes in a company's management style, exchange rate volatility, changes in accounting standards, the lack of oversight or comparability in accounting standards, changes in economic conditions, changes in competition, changes in the global economy, changes in source data quality, and similar factors.




3.2 3.2.1

16

FINANCIAL RETURNS IN FINLAND: ASSET STRUCTURE RATIOS Overview

In this chapter we consider the asset structure of companies involved in surgical and medical instruments and apparatus operating in Finland benchmarked against global averages. The chapter begins by defining relevant terms. A common-size statement, or vertical analysis of assets is then presented for companies operating in Finland and the average global benchmarks (total assets = 100 percent). For ratios where there are large deviations between Finland and the benchmarks, graphics are provided (sometimes referred to as a financial “gap” analysis). Then the distribution of ratios is presented in the form of ranks and percentiles. Certain key vertical analysis asset ratios are highlighted across countries in the comparison group.

3.2.2

Assets – Definitions of Terms

The following definitions are provided for those less familiar with the asset-side of financial statement analysis. As this chapter deals with the vertical analysis and global benchmarking of assets, only definitions covering certain terms used in this chapter’s tables and graphs are provided here . The glossary below reflects commonly accepted definitions across various countries and official sources. •

Accumulated Depreciation - Buildings. Accumulated depreciation is commonly understood as a contra asset account used to report the accumulation of periodic credits to reflect the use of the estimated service life of a fixed asset. Buildings are fixed assets which represent the acquisition and improvement costs of permanent structures owned or held by the company. Such structures typically include office buildings, storage quarters, or other facilities and also associated items such as loading docks, heating and airconditioning equipment, refrigeration equipment, and all other property permanently attached to or forming an integral part of the structure. However, it generally does not include furniture, fixtures, or other equipment which are not an integral part of the building.

•

Accumulated Depreciation -Machinery & Equipment. Accumulated depreciation of machinery and equipment is commonly understood to be contra asset account used to report the accumulation of periodic credits to reflect the use of the estimated service life of machinery and equipment.

•

Buildings. Buildings are defined as fixed assets which represent the acquisition and improvement costs of permanent structures owned or held by the company. Such structures include office buildings, storage quarters, or other facilities and also associated items such as loading docks, heating and air-conditioning equipment, refrigeration equipment, and all other property permanently attached to or forming an integral part of the structure. However, it does not include furniture, fixtures, or other equipment which are not an integral part of the building.

•

Cash. Cash is typically defined as money on hand, on deposit with chartered bank, or held in the form of eligible securities.

•

Current Assets. Current assets are generally defined to be resources which are available, or can readily be made available, to meet the cost of operations or to pay current liabilities.




17

•

Deferred Charges. Deferred charges are generally understood to represent the amount which has been paid for services already received by the company but has not been charged to operations.

•

Finished Goods. Finished goods generally comprise the ready-for-sale inventory.

•

Intangible Other Assets. Intangible assets are generally understood to be nonphysical assets such as legal rights (patents and trademarks) recorded at their historical cost then reduced by systematic amortization.

•

Investments in Unconsolidated Subsidiaries. Investments in unconsolidated subsidiaries are typically defined as investments for the purpose of generating revenue in subsidiaries whose financial statements are not combined with the company's.

•

land. Land is generally considered to be a fixed asset. If land is purchased, its capitalized value typically includes the purchase price plus costs such as legal fees, filling and excavation costs which are incurred to put the land in condition for its intended use. If land is acquired by gift, its capitalized value typically reflects its appraised value at the time of acquisition. Land typically does not include depletable resources.

•

long Term Receivables. Long-term receivables are commonly defined as amounts due within a period exceeding one year from private persons, businesses, agencies, funds, or governmental units which are expected to be collected in the form of moneys, goods, and/or services.

•

Machinery & Equipment. Machinery and equipment is commonly defined as a fixed asset classification which typically includes tangible property (other than land, buildings, and improvements other than buildings) with a life of more than one year. Such assets typically include office equipment, furniture, machine tools, and motor vehicles. Equipment may be attached to a structure for purposes of securing the item, but unless it is permanently attached to an integral part of the building or structure, it will generally be classified as equipment and not buildings. Equipment is generally defined as tangible property other than land, buildings, or improvements other than buildings, which is used in operations. Examples include machinery, tools, trucks, cars, furniture, and furnishings.

•

Property Plant and Equipment - Gross. Gross property, plant and equipment generally consists of the gross book value (rather than the more commonly-used measures of fixed capital stocks in current or real value), of all commercial buildings, associated land and equipment used therein that are owned by the company and that are either used or operated by the company or leased or rented to others.

•

Property Plant and Equipment - Net. Net PP&E equals the original cost of property, plant, and equipment (PP&E), less accumulated depreciation, depletion and amortization (DD&A).

•

Raw Materials. Raw materials are materials which will be converted by a manufacturer into a finished product.

•

Receivables (Net). Net receivables are defined as the net amount due to the company from private persons, businesses, agencies, funds, or governmental units which is expected to be collected in the form of moneys, goods, and/or services.

•

Short Term Investments. Short-term investments are investments which can be typically liquidated in less than one year.

•

Total Assets. Total assets are defined as the financial representation of economic resources, the beneficial interest in which is legally or equitably secured to a particular organization as a result of a past transaction or event.




18

•

Total Inventories. Total inventories are defined as the total amount of goods on hand.

•

Work in Process. Work in progress includes goods which have been started but are not yet ready for sale.




3.2.3

19

Asset Structure: Outlook

Using the methodology described in the introduction, the following table summarizes asset structure benchmarks for firms involved in surgical and medical instruments and apparatus in Finland. To allow comparable benchmarking, a common index of Total Assets = 100 is used. All figures are current-year projections for companies operating in Finland based on latest financial results available. Asset Structure Finland Europe World Avg. _________________________________________________________________________________________________________

Cash & Short Term Investments Cash Short Term Investments Receivables (Net) Total Inventories Raw Materials Work in Process Finished Goods Other Current Assets Current Assets - Total Long Term Receivables Investments in Unconsolidated Subsidiaries Other Investments Property Plant and Equipment - Net Property Plant and Equipment - Gross Land Buildings Machinery & Equipment Other Property Plant & Equipment Accumulated Depreciation - Total Accumulated Depreciation - Buildings Accumulated Depreciation -Machinery & Equipment Accumulated Depreciation - Other Prop & Equip Other Assets Deferred Charges Intangible Other Assets Total Assets

9.31 7.84 5.82 30.65 18.02 5.79 2.08 7.16 5.05 63.04 1.01 0.09 1.33 19.11 33.58 0.87 11.87 18.97 1.88 17.45 4.03 13.29 0.28 16.24 0.34 14.18 100.00

13.54 10.50 2.11 21.40 15.68 4.14 3.63 8.03 3.29 51.84 0.82 0.59 4.44 17.71 30.02 3.28 8.96 17.48 5.40 12.27 2.37 11.90 3.24 10.21 0.33 6.71 100.00

10.94 3.80 6.87 20.04 15.52 2.71 2.58 3.10 1.27 47.75 0.73 0.22 2.61 19.10 35.42 1.56 5.93 21.96 4.72 16.32 1.64 12.75 2.40 7.03 2.04 3.92 100.00

_________________________________________________________________________________________________________

Source: Philip M. Parker, Professor, INSEAD, copyright 2007




3.2.4

20

Large Variances: Assets

The following graphics summarize for surgical and medical instruments and apparatus the large asset structure gaps between firms operating in Finland and the world average. A gap cannot necessarily be interpreted as a positive or negative reflection on performance. Gaps may signal areas of specialization, market focus, or expertise. More contextual information is required to fully interpret these gaps. The gaps highlighted here are simply those that are large.

Gap: Cash 12 10 8

10.5 7.84

6

3.8

4

4.04

2 0 Finland

Europe

World Average

Gap

Gap: Receivables (Net) 40 30.65 30

21.4

20

20.04 10.61

10 0 Finland

Europe

World Average

Gap

Gap: Raw Materials 6

5.79

5

4.14

4

2.71

3

3.08

2 1 0 Finland


Europe

World Average

Gap



21

Gap: Finished Goods 10 8

7.16

8.03

6 3.1

4

4.06

2 0 Finland

Europe

World Average

Gap

Gap: Other Current Assets 6 5

5.05

4

3.78

3.29

3 2

1.27

1 0 Finland

Europe

World Average

Gap

Gap: Current Assets - Total 80

63.04 51.84

60

47.75

40 15.29

20 0 Finland

Europe

World Average

Gap

Gap: Buildings 12

11.87 8.96

10 8

5.93

6

5.94

4 2 0 Finland


Europe

World Average

Gap



22

Gap: Machinery & Equipment 25 20

18.97

21.96 17.48

15 10 5 0

-2.99

-5 Finland

Europe

World Average

Gap

Gap: Other Property Plant & Equipment 5.4

6 4 2

4.72

1.88

0 -2

-2.84

-4 Finland

Europe

World Average

Gap

Gap: Other Assets 20

16.24

15 10.21 10

7.03

9.21

5 0 Finland

Europe

World Average

Gap

Gap: Intangible Other Assets 15

14.18 10.26

10

6.71 3.92

5 0 Finland


Europe

World Average

Gap



3.2.5

23

Key Percentiles and Rankings

We now consider the distribution of asset ratios for surgical and medical instruments and apparatus using ranks and percentiles. What percent of countries have a value lower or higher than Finland (what is the ratio's rank or percentile)? The table below answers this question with respect to the vertical analysis of asset structure. The ranks and percentiles indicate, from highest to lowest, where a value falls within the distribution of all countries considered in the global benchmark (the number of countries in the benchmark per line item may vary, as indicated in the Rank). Again, a high or low figure does not necessarily indicate good or bad performance. After the summary table below, a few key vertical asset ratios are highlighted in additional tables. Asset Structure

Finland

Rank of Total

Percentile

9.31 7.84 5.82 30.65 18.02 5.79 2.08 7.16 5.05 63.04 1.01 0.09 1.33 19.11 33.58 0.87 11.87 18.97 1.88 17.45 4.03 13.29 0.28 16.24 0.34 14.18 100.00

35 of 53 21 of 52 17 of 43 12 of 53 18 of 53 11 of 46 26 of 46 12 of 47 10 of 34 21 of 53 17 of 31 23 of 24 31 of 42 23 of 53 26 of 53 20 of 26 9 of 45 23 of 51 31 of 45 20 of 53 7 of 45 19 of 51 38 of 44 8 of 42 20 of 29 6 of 42

33.96 59.62 60.47 77.36 66.04 76.09 43.48 74.47 70.59 60.38 45.16 4.17 26.19 56.60 50.94 23.08 80.00 54.90 31.11 62.26 84.44 62.75 13.64 80.95 31.03 85.71

_________________________________________________________________________________________________________


_________________________________________________________________________________________________________





24

Cash & Short Term Investments Countries

Value (total assets = 100)

Rank

Percentile

67.25 67.21 60.89 57.94 44.41 44.04 44.03 36.70 33.03 32.54 30.09 26.79 24.96 23.57 23.22 22.75 21.67 19.54 17.09 16.84 16.50 14.97 14.20 13.82 13.51 12.95 11.80 11.75 10.74 9.37 9.31 8.45 7.66 7.59 6.21 6.17 5.98 5.29 5.18 5.16 4.46 3.24 3.19 2.84 2.46

1 2 3 4 5 6 7 9 11 12 13 14 15 17 18 19 20 21 22 23 25 26 27 28 29 30 31 32 33 34 35 37 38 39 40 41 42 43 44 45 48 50 51 52 53

98.11 96.23 94.34 92.45 90.57 88.68 86.79 83.02 79.25 77.36 75.47 73.58 71.70 67.92 66.04 64.15 62.26 60.38 58.49 56.60 52.83 50.94 49.06 47.17 45.28 43.40 41.51 39.62 37.74 35.85 33.96 30.19 28.30 26.42 24.53 22.64 20.75 18.87 16.98 15.09 9.43 5.66 3.77 1.89 0.00

Region

_________________________________________________________________________________________________________

Malaysia South Africa Brazil Chile Israel Ireland Thailand Taiwan Portugal Peru Greece Czech Republic Argentina Belgium New Zealand Hong Kong Sweden Philippines Japan Norway USA Switzerland France Netherlands Canada Luxembourg the United Kingdom Italy Denmark South Korea Finland Russia Austria Hungary Poland Singapore Germany Indonesia Turkey Mexico Australia China Pakistan Spain India

Asia Africa Latin America Latin America the Middle East Europe Asia Asia Europe Latin America Europe Europe Latin America Europe Oceana Asia Europe Asia Asia Europe North America Europe Europe Europe North America Europe Europe Europe Europe Asia Europe Europe Europe Europe Europe Asia Europe Asia the Middle East Latin America Oceana Asia the Middle East Europe Asia

_________________________________________________________________________________________________________





25

Cash & Short Term Investments (Surgical and Medical Instruments and Apparatus) Countries in Europe


Rank

Percentile

44.04 33.03 31.62 30.09 28.40 27.89 27.53 26.79 25.43 25.42 23.57 21.82 21.67 16.84 16.67 14.97 14.20 13.97 13.82 12.95 11.85 11.80 11.75 10.74 9.31 9.04 8.62 8.60 8.45 8.43 7.66 7.59 7.58 7.39 7.39 6.82 6.49 6.39 6.21 5.98 5.98 5.77 5.58 5.37 5.36 4.92 4.51 4.39 4.23 2.84 2.66

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Ireland Portugal Cyprus Greece Albania Malta Isle of Man Czech Republic Latvia Croatia Belgium Faroe Islands Sweden Norway Iceland Switzerland France Liechtenstein Netherlands Luxembourg Vatican City the United Kingdom Italy Denmark Finland Estonia Belarus Slovakia Russia Lithuania Austria Hungary San Marino Jersey Guernsey Ukraine Gibraltar Georgia Poland Germany Monaco Andorra Moldova Kazakhstan Bulgaria Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro Spain Slovenia

_________________________________________________________________________________________________________

Source: Philip M. Parker, Professor, INSEAD, copyright 2007 www.icongrouponline.com



26

Receivables (Net) Countries


Rank

Percentile

51.50 45.82 38.97 37.04 36.84 35.29 31.95 31.33 31.22 31.09 30.83 30.65 28.23 27.83 26.86 25.98 25.69 24.66 24.46 24.03 23.96 23.12 22.40 21.26 21.13 21.07 18.75 18.39 17.47 15.54 11.73 10.57 9.53 9.49 9.37 7.93 7.93 7.76 7.18 6.83 6.48 6.46 5.19 3.84 2.30

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 32 35 36 37 38 39 40 41 42 43 44 45 47 50 52

98.11 96.23 94.34 92.45 90.57 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 43.40 39.62 33.96 32.08 30.19 28.30 26.42 24.53 22.64 20.75 18.87 16.98 15.09 11.32 5.66 1.89

Region

_________________________________________________________________________________________________________

Austria India Australia Spain Denmark Norway Germany Italy France Israel Ireland Finland Netherlands Belgium Japan the United Kingdom Taiwan Sweden New Zealand Singapore Hong Kong Portugal Canada Switzerland USA Greece Czech Republic Luxembourg Argentina Indonesia South Korea Russia China Hungary Pakistan Malaysia South Africa Poland Brazil Chile Turkey Mexico Thailand Peru Philippines

Europe Asia Oceana Europe Europe Europe Europe Europe Europe the Middle East Europe Europe Europe Europe Asia Europe Asia Europe Oceana Asia Asia Europe North America Europe North America Europe Europe Europe Latin America Asia Asia Europe Asia Europe the Middle East Asia Africa Europe Latin America Latin America the Middle East Latin America Asia Latin America Asia

_________________________________________________________________________________________________________





27

Receivables (Net) (Surgical and Medical Instruments and Apparatus) Countries in Europe


Rank

Percentile

51.50 51.01 49.73 49.73 37.04 36.84 35.29 34.78 31.95 31.58 31.33 31.22 30.83 30.65 28.23 27.83 25.98 24.66 23.30 23.12 22.98 22.47 22.13 21.35 21.26 21.07 19.84 19.53 19.27 18.75 18.39 17.80 17.79 11.31 10.79 10.77 10.57 10.54 9.49 8.54 8.12 7.99 7.76 6.98 6.72 6.71 6.15 5.65 5.49 5.29 3.35

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Austria San Marino Guernsey Jersey Spain Denmark Norway Slovenia Germany Vatican City Italy France Ireland Finland Netherlands Belgium the United Kingdom Sweden Monaco Portugal Faroe Islands Andorra Cyprus Iceland Switzerland Greece Liechtenstein Malta Isle of Man Czech Republic Luxembourg Latvia Croatia Estonia Belarus Slovakia Russia Lithuania Hungary Ukraine Gibraltar Georgia Poland Moldova Kazakhstan Bulgaria Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro Albania

_________________________________________________________________________________________________________




28

Total Inventories Countries


Rank

Percentile

38.39 33.78 33.29 30.91 29.24 27.38 25.36 23.51 22.95 22.06 21.48 20.41 20.07 18.65 18.30 18.02 17.57 17.23 17.15 16.10 15.95 15.89 14.83 14.78 14.49 14.37 13.76 12.91 10.56 8.81 8.79 7.06 7.00 5.86 5.86 5.84 5.31 5.25 5.05 4.79 4.26 3.97 3.84 2.84 1.70

1 2 3 5 6 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 28 29 30 31 32 33 34 36 37 38 39 40 41 42 43 44 45 46 47 50 52

98.11 96.23 94.34 90.57 88.68 86.79 84.91 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 47.17 45.28 43.40 41.51 39.62 37.74 35.85 32.08 30.19 28.30 26.42 24.53 22.64 20.75 18.87 16.98 15.09 13.21 11.32 5.66 1.89

Region

_________________________________________________________________________________________________________

Singapore Italy Indonesia Australia Austria Germany Spain France Norway Belgium Canada China Pakistan USA Denmark Finland the United Kingdom India Switzerland Japan South Korea Netherlands Luxembourg New Zealand Hong Kong Russia Sweden Hungary Poland Turkey Mexico Israel Ireland Malaysia South Africa Taiwan Brazil Portugal Chile Greece Czech Republic Argentina Thailand Peru Philippines

Asia Europe Asia Oceana Europe Europe Europe Europe Europe Europe North America Asia the Middle East North America Europe Europe Europe Asia Europe Asia Asia Europe Europe Oceana Asia Europe Europe Europe Europe the Middle East Latin America the Middle East Europe Asia Africa Asia Latin America Europe Latin America Europe Europe Latin America Asia Latin America Asia

_________________________________________________________________________________________________________





29

Total Inventories (Surgical and Medical Instruments and Apparatus) Countries in Europe


Rank

Percentile

37.22 35.90 34.05 33.78 29.24 28.96 28.23 28.23 27.38 25.36 23.81 23.51 22.95 22.06 18.84 18.30 18.02 17.57 17.15 16.01 15.89 15.38 14.83 14.68 14.64 14.37 14.34 13.89 13.76 12.91 11.61 11.04 10.87 10.56 9.50 9.14 9.12 8.37 7.68 7.46 7.20 7.00 5.25 5.03 4.79 4.44 4.38 4.26 4.04 4.04 2.48

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Monaco Andorra Vatican City Italy Austria San Marino Jersey Guernsey Germany Spain Slovenia France Norway Belgium Iceland Denmark Finland the United Kingdom Switzerland Liechtenstein Netherlands Estonia Luxembourg Belarus Slovakia Russia Lithuania Faroe Islands Sweden Hungary Ukraine Gibraltar Georgia Poland Moldova Kazakhstan Bulgaria Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro Ireland Portugal Cyprus Greece Malta Isle of Man Czech Republic Latvia Croatia Albania

_________________________________________________________________________________________________________




30

Current Assets - Total Countries


Rank

Percentile

89.72 83.93 83.24 81.34 81.29 77.94 75.20 75.08 74.78 73.65 70.44 70.08 69.57 69.36 69.24 68.31 67.05 65.54 65.10 63.11 63.04 62.53 62.43 61.27 61.10 59.97 58.55 58.20 57.97 56.88 54.94 53.26 50.64 47.51 47.17 39.35 37.38 35.55 34.95 33.69 30.27 24.75 23.63 20.65 20.59

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 33 34 35 36 40 41 42 43 45 46 48 49 50 51

98.11 96.23 94.34 92.45 90.57 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 43.40 41.51 37.74 35.85 33.96 32.08 24.53 22.64 20.75 18.87 15.09 13.21 9.43 7.55 5.66 3.77

Region

_________________________________________________________________________________________________________

Austria Israel Ireland Malaysia South Africa Italy Belgium Norway Australia Brazil Spain Chile Singapore Taiwan France Germany Denmark India Sweden Japan Finland New Zealand Portugal Hong Kong USA Netherlands Canada the United Kingdom Indonesia Greece Switzerland Thailand Czech Republic Luxembourg Argentina Peru South Korea China Pakistan Russia Hungary Poland Philippines Turkey Mexico

Europe the Middle East Europe Asia Africa Europe Europe Europe Oceana Latin America Europe Latin America Asia Asia Europe Europe Europe Asia Europe Asia Europe Oceana Europe Asia North America Europe North America Europe Asia Europe Europe Asia Europe Europe Latin America Latin America Asia Asia the Middle East Europe Europe Europe Asia the Middle East Latin America

_________________________________________________________________________________________________________





31

Current Assets - Total (Surgical and Medical Instruments and Apparatus) Countries in Europe


Rank

Percentile

89.72 88.86 86.64 86.64 83.24 78.57 77.94 75.20 75.08 70.44 69.24 68.31 67.46 67.05 66.13 65.10 65.06 63.04 62.43 61.73 59.97 59.76 58.75 58.20 56.88 54.94 52.72 52.02 51.26 50.64 48.06 48.04 47.51 36.04 34.39 34.35 34.32 33.69 33.61 30.27 27.22 25.88 25.48 24.75 22.25 21.42 21.38 19.62 18.00 17.50 16.88

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Austria San Marino Guernsey Jersey Ireland Vatican City Italy Belgium Norway Spain France Germany Monaco Denmark Slovenia Sweden Andorra Finland Portugal Iceland Netherlands Cyprus Faroe Islands the United Kingdom Greece Switzerland Malta Isle of Man Liechtenstein Czech Republic Latvia Croatia Luxembourg Estonia Belarus Albania Slovakia Russia Lithuania Hungary Ukraine Gibraltar Georgia Poland Moldova Kazakhstan Bulgaria Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro

_________________________________________________________________________________________________________




32

Property Plant and Equipment - Net Countries


Rank

Percentile

40.77 36.74 33.01 30.63 30.02 28.80 27.00 26.64 26.06 25.34 25.22 24.99 23.25 22.52 22.46 21.97 21.61 19.75 19.11 18.41 17.71 17.66 17.57 17.36 15.32 14.95 14.91 12.69 11.23 11.14 11.13 10.08 10.06 9.59 7.29 5.39 5.09 3.55 3.52 3.24 2.93 2.64 2.41 2.14 2.00

1 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 42 43 45 46 47 48 50 51 52 53

98.11 94.34 92.45 90.57 88.68 86.79 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 43.40 41.51 39.62 37.74 35.85 33.96 32.08 30.19 28.30 26.42 20.75 18.87 15.09 13.21 11.32 9.43 5.66 3.77 1.89 0.00

Region

_________________________________________________________________________________________________________

South Korea Russia Hungary New Zealand Hong Kong Indonesia Poland India Japan Singapore the United Kingdom Switzerland Denmark Turkey Mexico Canada Luxembourg Germany Finland Norway USA China Netherlands Pakistan Australia Belgium Sweden Spain France Malaysia South Africa Brazil Italy Chile Thailand Peru Austria Israel Ireland Philippines Taiwan Portugal Greece Czech Republic Argentina

Asia Europe Europe Oceana Asia Asia Europe Asia Asia Asia Europe Europe Europe the Middle East Latin America North America Europe Europe Europe Europe North America Asia Europe the Middle East Oceana Europe Europe Europe Europe Asia Africa Latin America Europe Latin America Asia Latin America Europe the Middle East Europe Asia Asia Europe Europe Europe Latin America

_________________________________________________________________________________________________________





33

Property Plant and Equipment - Net (Surgical and Medical Instruments and Apparatus) Countries in Europe


Rank

Percentile

39.30 37.51 37.43 36.74 36.65 33.01 29.68 28.78 28.22 27.79 27.00 25.22 24.99 24.58 24.27 23.70 23.36 23.32 23.31 23.25 21.61 21.39 19.75 19.63 19.11 19.08 18.41 18.41 17.89 17.57 14.95 14.91 12.69 11.92 11.23 10.14 10.06 5.09 5.04 4.92 4.92 4.70 3.52 2.64 2.53 2.41 2.23 2.20 2.14 2.03 2.03

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Estonia Belarus Slovakia Russia Lithuania Hungary Ukraine Faroe Islands Gibraltar Georgia Poland the United Kingdom Switzerland Monaco Moldova Andorra Kazakhstan Bulgaria Liechtenstein Denmark Luxembourg Romania Germany Bosnia & Herzegovina Finland Macedonia Norway Serbia & Montenegro Iceland Netherlands Belgium Sweden Spain Slovenia France Vatican City Italy Austria San Marino Jersey Guernsey Albania Ireland Portugal Cyprus Greece Malta Isle of Man Czech Republic Latvia Croatia

_________________________________________________________________________________________________________




34

Accumulated Depreciation - Total Countries


Rank

Percentile

38.22 35.06 32.39 30.06 28.15 25.61 24.76 24.40 23.97 21.67 21.41 19.61 18.96 18.58 18.43 18.36 18.12 17.45 15.06 14.29 13.03 12.21 12.08 12.02 11.52 10.88 9.78 8.00 6.67 6.65 6.49 5.14 5.10 4.25 3.93 3.93 3.83 3.56 3.49 3.39 3.10 2.89 2.58 1.90 1.14

1 2 3 4 6 7 8 9 10 11 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 29 30 31 32 33 34 36 37 38 39 40 41 42 43 44 45 46 47 50 52

98.11 96.23 94.34 92.45 88.68 86.79 84.91 83.02 81.13 79.25 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 45.28 43.40 41.51 39.62 37.74 35.85 32.08 30.19 28.30 26.42 24.53 22.64 20.75 18.87 16.98 15.09 13.21 11.32 5.66 1.89

Region

_________________________________________________________________________________________________________

Germany Spain Japan Indonesia the United Kingdom Norway Switzerland Denmark India Netherlands Luxembourg USA New Zealand Hong Kong China France Pakistan Finland Belgium Canada Sweden Italy South Korea Singapore Australia Russia Hungary Poland Turkey Mexico Austria Israel Ireland Taiwan Malaysia South Africa Portugal Brazil Greece Chile Czech Republic Argentina Thailand Peru Philippines

Europe Europe Asia Asia Europe Europe Europe Europe Asia Europe Europe North America Oceana Asia Asia Europe the Middle East Europe Europe North America Europe Europe Asia Asia Oceana Europe Europe Europe the Middle East Latin America Europe the Middle East Europe Asia Asia Africa Europe Latin America Europe Latin America Europe Latin America Asia Latin America Asia

_________________________________________________________________________________________________________





35

Accumulated Depreciation - Total (Surgical and Medical Instruments and Apparatus) Countries in Europe


Rank

Percentile

38.22 35.06 32.91 28.15 25.61 24.76 24.40 23.11 21.67 21.41 19.81 18.36 17.82 17.45 15.06 13.03 12.30 12.21 11.66 11.64 11.24 11.11 11.09 10.88 10.86 9.78 8.79 8.36 8.23 8.00 7.19 6.92 6.91 6.49 6.43 6.34 6.27 6.27 5.82 5.65 5.45 5.10 3.83 3.66 3.49 3.23 3.19 3.10 2.95 2.94 1.66

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Germany Spain Slovenia the United Kingdom Norway Switzerland Denmark Liechtenstein Netherlands Luxembourg Iceland France Faroe Islands Finland Belgium Sweden Vatican City Italy Monaco Estonia Andorra Belarus Slovakia Russia Lithuania Hungary Ukraine Gibraltar Georgia Poland Moldova Kazakhstan Bulgaria Austria San Marino Romania Jersey Guernsey Bosnia & Herzegovina Macedonia Serbia & Montenegro Ireland Portugal Cyprus Greece Malta Isle of Man Czech Republic Latvia Croatia Albania

_________________________________________________________________________________________________________




36

Intangible Other Assets Countries


Rank

Percentile

19.69 17.78 15.77 15.28 14.87 14.18 13.64 13.12 11.81 11.71 11.61 10.29 9.68 9.09 8.71 8.22 8.01 7.94 7.45 7.06 6.82 6.58 4.95 4.48 4.46 4.01 3.74 3.67 3.28 3.17 2.83 2.75 2.73 2.72 1.95 1.91 1.16 0.95

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 25 26 27 28 29 30 31 33 34 35 36 39 40 41 42

97.62 95.24 92.86 90.48 88.10 85.71 83.33 80.95 78.57 76.19 73.81 71.43 69.05 66.67 64.29 61.90 59.52 57.14 54.76 52.38 50.00 47.62 45.24 40.48 38.10 35.71 33.33 30.95 28.57 26.19 21.43 19.05 16.67 14.29 7.14 4.76 2.38 0.00

Region

_________________________________________________________________________________________________________

USA Netherlands Switzerland France Sweden Finland Luxembourg Canada the United Kingdom Israel Ireland Australia Taiwan Belgium Portugal Denmark Spain Greece Italy Czech Republic Germany Argentina South Korea India Russia Hungary New Zealand Hong Kong Poland Indonesia Austria Norway Turkey Mexico China Pakistan Japan Singapore

North America Europe Europe Europe Europe Europe Europe North America Europe the Middle East Europe Oceana Asia Europe Europe Europe Europe Europe Europe Europe Europe Latin America Asia Asia Europe Europe Oceana Asia Europe Asia Europe Europe the Middle East Latin America Asia the Middle East Asia Asia

_________________________________________________________________________________________________________





37

Intangible Other Assets (Surgical and Medical Instruments and Apparatus) Countries in Europe


Rank

Percentile

19.90 17.78 15.77 15.28 14.87 14.72 14.18 13.64 11.81 11.61 9.09 8.71 8.34 8.22 8.01 7.94 7.52 7.51 7.45 7.35 7.26 7.06 6.82 6.71 6.70 4.77 4.55 4.54 4.46 4.45 4.01 3.60 3.52 3.42 3.37 3.28 2.94 2.83 2.83 2.83 2.80 2.75 2.73 2.73 2.60 2.38 2.32 2.23 0.92 0.89

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

98.00 96.00 94.00 92.00 90.00 88.00 86.00 84.00 82.00 80.00 78.00 76.00 74.00 72.00 70.00 68.00 66.00 64.00 62.00 60.00 58.00 56.00 54.00 52.00 50.00 48.00 46.00 44.00 42.00 40.00 38.00 36.00 34.00 32.00 30.00 28.00 26.00 24.00 22.00 20.00 18.00 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00

_________________________________________________________________________________________________________

Iceland Netherlands Switzerland France Sweden Liechtenstein Finland Luxembourg the United Kingdom Ireland Belgium Portugal Cyprus Denmark Spain Greece Slovenia Vatican City Italy Malta Isle of Man Czech Republic Germany Latvia Croatia Estonia Belarus Slovakia Russia Lithuania Hungary Ukraine Faroe Islands Gibraltar Georgia Poland Moldova Kazakhstan Austria Bulgaria San Marino Norway Guernsey Jersey Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro Monaco Andorra

_________________________________________________________________________________________________________





3.3 3.3.1

38

FINANCIAL RETURNS IN FINLAND: LIABILITY STRUCTURE RATIOS Overview

In this chapter we consider the liability structure of firms operating in Finland benchmarked against global averages. The chapter begins by defining relevant terms. A common-size statement, or vertical analysis of liabilities and shareholder equity is then presented for the proto-typical firm operating in Finland and the average global benchmarks (sometimes referred to as a financial “gap” analysis). The figure reflect firms involved in surgical and medical instruments and apparatus in Finland. For ratios where there are large deviations between Finland and the benchmarks, graphics are provided (total liabilities and equity = 100 percent). Then the distribution of ratios is presented in the form of ranks and percentiles. Certain key vertical analysis liability ratios are highlighted.

3.3.2

Liabilities and Equity – Definitions of Terms

The following definitions are provided for those less familiar with the liability-side of financial statement analysis. As this chapter deals with the vertical analysis and global benchmarking of liabilities and equity, only definitions covering certain terms used in this chapter’s tables and graphs are provided here . The glossary below reflects commonly accepted definitions across various countries and official sources. •

Accounts Payable. Accounts payable are defined as amounts owed on open account to private persons or organizations for goods or services received.

•

Accrued Payroll. Accrued payroll is defined as the cost of payroll that has been incurred but has not yet been paid. Payroll is typically defined as comprising records detailing the salaries, wages, allowances and deductions for each employee for a specific period of time.

•

Capital Surplus. Capital surplus is commonly defined as an amount of equity which is directly contributed capital in excess of the par value.

•

Common Equity. Common equity is defined to equal the company's net worth. It typically comprises capital stock, capital surplus, retained earnings, and, in some cases, net worth reserves. Common equity is the portion of total net worth belonging to the common stockholders. Synonyms which are often used for common equity are “common stock” and “net worth”.

•

Common Stock. Common stock is defined as the securities which represent the company's ownership interest. Common stockholders typically assume greater risk than preferred stockholders; although common stockholders maintain greater control and generally greater dividends and capital appreciation. Common stock can be used interchangeably with the term capital stock when the company has no preferred stock.

•

Current Liabilities - Total. Total current liabilities are defined as the total amount of obligations which would require the use of current assets or other current liabilities to pay.

•

Current Portion of Long Term Debt. The current proportion of long term debt is typically defined as debt which is payable in more than one year.




39

•

Deferred Taxes. Deferred taxes are compulsory charges from a previous accounting period which are yet unpaid.

•

Income Taxes Payable. Income taxes payable are understood to mean taxes which are levied by state, federal, and local governments on the company's reported accounting profit. Income taxes payable are those which are due in the current accounting period.

•

Long Term Debt. Long-term debt is defined to be due in a period exceeding one year or one operating cycle, whichever is longer. Long-term debt can have an extended repayment period such as a many-year mortgage on land and buildings, or debt that's intended to be permanent such as bonds issued to investors.

•

Long Term Debt Excluding Capitalized Leases. Long term debt excluding capitalized leases is defined as debt which is typically due in a period exceeding one year or one operating cycle, whichever is longer, less capitalized leases (see Long Term Debt for exceptions). Capital leases are generally recorded as assets with liability at the current value of the lease payment.

•

Minority Interest. Minority interest is the proportional share of the minority ownership's interest (less than 50 percent) in the earnings or losses.

•

Retained Earnings. proprietary funds.

•

Shareholders Equity. Shareholders equity is commonly defined to be the amount of total equity reserved for common and preferred shareholders.

•

Short Term Debt. Short term debt is generally defined as debt payable within one year.

•

Total Liabilities. Total liabilities are generally defined to include all the claims against a corporation. Liabilities include accounts and wages and salaries payable, dividends declared payable, accrued taxes payable, fixed or long-term liabilities such as mortgage bonds, debentures, and bank loans.


Retained earnings is an equity account reflecting the accumulated earnings of



3.3.3

40

Liability Structure: Outlook

Using the methodology described in the introduction, the following table summarizes liability and equity structure benchmarks for firms involved in surgical and medical instruments and apparatus in Finland. To allow comparable benchmarking, a common index of Total Liabilities & Shareholders Equity = 100 is used. All figures are current-year projections for companies operating in Finland based on latest financial results available. Liability Structure Finland Europe World Avg. _________________________________________________________________________________________________________

Accounts Payable Short Term Debt & Current Portion of Long Term Debt Accrued Payroll Income Taxes Payable Other Current Liabilities Current Liabilities - Total Long Term Debt Long Term Debt Excluding Capitalized Leases Provision For Risks and Charges Deferred Taxes Other Liabilities Total Liabilities Minority Interest Common Equity Common Stock Capital Surplus Other Appropriated Reserves Unappropriated Reserves Retained Earnings Treasury Stock Total Liabilities & Shareholders Equity

5.00 11.41 4.84 0.59 14.76 32.94 8.37 8.37 0.74 0.76 1.11 43.67 0.05 56.28 6.49 4.94 0.49 0.06 45.01 0.18 100.00

7.50 12.86 2.78 1.45 8.22 29.80 5.63 5.40 2.47 -0.13 1.30 38.24 0.38 43.55 9.41 22.01 2.42 2.81 14.69 2.36 100.00

10.41 12.11 0.39 0.46 4.15 28.07 19.19 19.07 1.05 0.09 0.53 48.56 0.13 26.23 10.65 7.78 -0.30 0.35 9.13 0.95 100.00

_________________________________________________________________________________________________________





3.3.4

41

Large Variances: Liabilities

The following graphics summarize for surgical and medical instruments and apparatus the large liability structure gaps between firms operating in Finland and the world average. A gap cannot necessarily be interpreted as a positive or negative reflection on performance. Gaps may signal areas of specialization, market focus, or expertise. More contextual information is required to fully interpret these gaps. The gaps highlighted here are simply those that are large.

Gap: Accounts Payable 15 10

5

5

7.5

10.41

0 -5

-5.41

-10 Finland

Europe

World Average

Gap

Gap: Accrued Payroll 5

4.84

4.45

4 2.78

3 2 1

0.39

0 Finland

Europe

World Average

Gap

Gap: Other Current Liabilities 15

14.76 10.61

10

8.22 4.15

5 0 Finland


Europe

World Average

Gap



42

Gap: Current Liabilities - Total 40

32.94

30

29.8

28.07

20 10

4.87

0 Finland

Europe

World Average

Gap

Gap: Long Term Debt 19.19

20 10

8.37

5.63

0 -10

-10.82

-20 Finland

Europe

World Average

Gap

Gap: Long Term Debt Excluding Capitalized Leases 20 15 10 5 0 -5 -10 -15

19.07 8.37

5.4

-10.7 Finland

Europe

World Average

Gap

Gap: Total Liabilities 50

43.67

40

48.56 38.24

30 20 10 0

-4.89

-10 Finland


Europe

World Average

Gap



43

Gap: Common Equity 60

56.28

50

43.55

40 26.23

30

30.05

20 10 0 Finland

Europe

World Average

Gap

Gap: Common Stock 15 10

9.41

10.65

6.49

5 0 -4.16

-5 Finland

Europe

World Average

Gap

Gap: Capital Surplus 22.01

25 20 15 10 5

7.78

4.94

0

-2.84

-5 Finland

Europe

World Average

Gap

Gap: Retained Earnings 50

45.01 35.88

40 30 20

14.69

10

9.13

0 Finland


Europe

World Average

Gap



3.3.5

44


We now consider the distribution of liability ratios for surgical and medical instruments and apparatus using ranks and percentiles. What percent of countries have a value lower or higher than Finland (what is the ratio's rank or percentile)? The table below answers this question with respect to the vertical analysis of liability structure. The ranks and percentiles indicate, from highest to lowest, where a value falls within the distribution of all countries considered in the global benchmark (the number of countries in the benchmark per line item may vary, as indicated in the Rank). Again, a high or low figure does not necessarily indicate good or bad performance. After the summary table below, a few key vertical liability ratios are highlighted in additional tables. Liability Structure

Finland

Rank of Total

Percentile

5.00 11.41 4.84 0.59 14.76 32.94 8.37 8.37 0.74 0.76 1.11 43.67 0.05 56.28 6.49 4.94 0.49 0.06 45.01 0.18 100.00

36 of 53 24 of 42 2 of 21 28 of 43 5 of 53 19 of 53 20 of 35 19 of 35 24 of 35 6 of 40 15 of 29 21 of 53 27 of 27 17 of 53 37 of 52 37 of 49 20 of 34 20 of 22 1 of 52 15 of 19

32.08 42.86 90.48 34.88 90.57 64.15 42.86 45.71 31.43 85.00 48.28 60.38 0.00 67.92 28.85 24.49 41.18 9.09 98.08 21.05

_________________________________________________________________________________________________________


_________________________________________________________________________________________________________





45

Accounts Payable Countries

Value (total liabilities & equity = 100)

Rank

Percentile

22.68 19.20 15.22 15.02 14.88 13.91 13.67 13.66 13.30 12.93 12.88 12.78 11.13 10.65 10.52 10.29 9.63 9.58 9.53 8.77 8.73 7.77 7.74 7.24 7.08 6.62 6.17 6.07 6.05 5.82 5.51 5.03 5.00 4.97 4.46 3.65 3.04 3.04 2.98 2.97 2.70 2.56 1.95 1.44 0.86

1 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 35 36 37 38 39 40 41 42 43 45 46 47 50 52

98.11 94.34 90.57 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 43.40 41.51 39.62 37.74 33.96 32.08 30.19 28.30 26.42 24.53 22.64 20.75 18.87 15.09 13.21 11.32 5.66 1.89

Region

_________________________________________________________________________________________________________

Indonesia Spain India France Singapore China Pakistan Canada Japan Italy Israel Ireland the United Kingdom Taiwan Belgium Norway Germany Portugal Australia Austria Greece Czech Republic Netherlands Argentina Sweden Denmark New Zealand USA Hong Kong Switzerland South Korea Luxembourg Finland Russia Hungary Poland Turkey Mexico Malaysia South Africa Brazil Chile Thailand Peru Philippines

Asia Europe Asia Europe Asia Asia the Middle East North America Asia Europe the Middle East Europe Europe Asia Europe Europe Europe Europe Oceana Europe Europe Europe Europe Latin America Europe Europe Oceana North America Asia Europe Asia Europe Europe Europe Europe Europe the Middle East Latin America Asia Africa Latin America Latin America Asia Latin America Asia

_________________________________________________________________________________________________________





46

Accounts Payable (Surgical and Medical Instruments and Apparatus) Countries in Europe


Rank

Percentile

19.20 18.03 15.02 14.43 13.91 13.04 12.93 12.78 11.13 10.52 10.29 9.63 9.58 9.17 8.77 8.73 8.69 8.47 8.47 8.09 7.99 7.77 7.74 7.38 7.38 7.08 6.62 6.13 5.82 5.80 5.43 5.31 5.07 5.06 5.03 5.00 4.97 4.96 4.46 4.01 3.82 3.76 3.65 3.28 3.16 3.15 2.89 2.65 2.58 2.49 1.26

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Spain Slovenia France Monaco Andorra Vatican City Italy Ireland the United Kingdom Belgium Norway Germany Portugal Cyprus Austria Greece San Marino Guernsey Jersey Malta Isle of Man Czech Republic Netherlands Latvia Croatia Sweden Denmark Iceland Switzerland Faroe Islands Liechtenstein Estonia Belarus Slovakia Luxembourg Finland Russia Lithuania Hungary Ukraine Gibraltar Georgia Poland Moldova Kazakhstan Bulgaria Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro Albania

_________________________________________________________________________________________________________




47

Current Liabilities - Total Countries


Rank

Percentile

54.41 49.35 47.78 45.59 43.33 41.08 38.29 37.66 37.45 36.91 35.60 35.19 34.87 34.11 33.63 32.94 32.00 31.11 30.26 30.18 29.76 27.65 25.30 25.18 25.11 24.88 24.68 23.91 23.47 22.88 22.42 21.09 20.56 18.51 16.94 16.86 16.07 16.06 15.01 14.55 13.98 13.84 10.52 7.77 4.67

1 2 3 5 6 8 9 10 11 12 13 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 34 35 36 37 38 39 40 41 42 43 44 45 46 47 50 52

98.11 96.23 94.34 90.57 88.68 84.91 83.02 81.13 79.25 77.36 75.47 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 43.40 41.51 39.62 35.85 33.96 32.08 30.19 28.30 26.42 24.53 22.64 20.75 18.87 16.98 15.09 13.21 11.32 5.66 1.89

Region

_________________________________________________________________________________________________________

Spain Indonesia Italy South Korea Australia Russia Singapore Norway France Hungary India Austria the United Kingdom Japan Belgium Finland Denmark Germany China Poland Pakistan Switzerland Sweden Turkey Mexico Israel Ireland Luxembourg Netherlands New Zealand Hong Kong USA Taiwan Portugal Canada Greece Malaysia South Africa Czech Republic Brazil Argentina Chile Thailand Peru Philippines

Europe Asia Europe Asia Oceana Europe Asia Europe Europe Europe Asia Europe Europe Asia Europe Europe Europe Europe Asia Europe the Middle East Europe Europe the Middle East Latin America the Middle East Europe Europe Europe Oceana Asia North America Asia Europe North America Europe Asia Africa Europe Latin America Latin America Latin America Asia Latin America Asia

_________________________________________________________________________________________________________





48

Current Liabilities - Total (Surgical and Medical Instruments and Apparatus) Countries in Europe


Rank

Percentile

54.41 51.08 48.17 47.78 43.95 41.94 41.85 41.08 40.98 37.66 37.45 37.13 36.91 35.81 35.19 34.87 34.86 33.98 33.98 33.63 33.19 32.94 32.00 31.56 31.11 31.07 30.18 27.65 27.14 26.12 26.07 25.80 25.30 24.68 23.92 23.91 23.47 21.95 21.50 21.34 21.31 20.58 18.51 17.72 16.86 15.63 15.42 15.01 14.25 14.24 6.79

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Spain Slovenia Vatican City Italy Estonia Belarus Slovakia Russia Lithuania Norway France Monaco Hungary Andorra Austria the United Kingdom San Marino Guernsey Jersey Belgium Ukraine Finland Denmark Gibraltar Germany Georgia Poland Switzerland Moldova Kazakhstan Bulgaria Liechtenstein Sweden Ireland Romania Luxembourg Netherlands Bosnia & Herzegovina Faroe Islands Macedonia Iceland Serbia & Montenegro Portugal Cyprus Greece Malta Isle of Man Czech Republic Latvia Croatia Albania

_________________________________________________________________________________________________________




49

Long Term Debt Countries


Rank

Percentile

42.57 35.25 21.62 21.26 14.72 14.56 11.22 11.08 10.37 10.16 9.71 9.22 9.00 8.97 8.92 8.69 8.64 8.37 7.78 7.28 7.27 7.13 7.01 6.99 5.99 5.72 4.77 4.76 3.91 2.81 2.51

1 2 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 22 23 24 25 26 27 28 29 30 31 33 34 35

97.14 94.29 85.71 82.86 80.00 77.14 74.29 71.43 68.57 65.71 62.86 60.00 57.14 54.29 51.43 48.57 45.71 42.86 37.14 34.29 31.43 28.57 25.71 22.86 20.00 17.14 14.29 11.43 5.71 2.86 0.00

Region

_________________________________________________________________________________________________________

India Indonesia China Pakistan Sweden Denmark Netherlands USA Switzerland France the United Kingdom Canada Norway Luxembourg Italy Japan South Korea Finland Russia New Zealand Belgium Hong Kong Spain Hungary Germany Poland Turkey Mexico Australia Singapore Austria

Asia Asia Asia the Middle East Europe Europe Europe North America Europe Europe Europe North America Europe Europe Europe Asia Asia Europe Europe Oceana Europe Asia Europe Europe Europe Europe the Middle East Latin America Oceana Asia Europe

_________________________________________________________________________________________________________





50

Long Term Debt (Surgical and Medical Instruments and Apparatus) Countries in Europe


Rank

Percentile

14.72 14.56 11.22 11.20 10.37 10.16 9.71 9.67 9.00 9.00 8.97 8.92 8.37 8.33 7.95 7.93 7.78 7.76 7.27 7.01 6.99 6.84 6.58 6.29 5.99 5.98 5.89 5.72 5.14 4.95 4.94 4.53 4.16 4.04 3.90 2.72 2.63 2.51 2.48 2.42 2.42

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41

97.56 95.12 92.68 90.24 87.80 85.37 82.93 80.49 78.05 75.61 73.17 70.73 68.29 65.85 63.41 60.98 58.54 56.10 53.66 51.22 48.78 46.34 43.90 41.46 39.02 36.59 34.15 31.71 29.27 26.83 24.39 21.95 19.51 17.07 14.63 12.20 9.76 7.32 4.88 2.44 0.00

_________________________________________________________________________________________________________

Sweden Denmark Netherlands Iceland Switzerland France the United Kingdom Liechtenstein Norway Vatican City Luxembourg Italy Finland Estonia Belarus Slovakia Russia Lithuania Belgium Spain Hungary Faroe Islands Slovenia Ukraine Germany Gibraltar Georgia Poland Moldova Kazakhstan Bulgaria Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro Monaco Andorra Austria San Marino Guernsey Jersey

_________________________________________________________________________________________________________





51

Total Liabilities Countries


Rank

Percentile

84.35 77.81 63.20 62.68 61.79 58.43 52.65 52.48 50.91 48.33 47.97 47.72 47.30 46.96 46.92 46.43 44.40 43.67 42.01 41.14 40.74 40.10 40.07 38.69 36.33 35.21 32.27 32.18 30.29 29.68 29.34 25.10 24.90 20.75 18.67 17.01 16.07 16.06 15.15 14.55 14.11 13.84 10.52 7.77 4.67

1 2 4 5 6 7 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 34 35 36 37 38 39 40 41 42 43 44 45 46 47 50 52

98.11 96.23 92.45 90.57 88.68 86.79 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 43.40 41.51 39.62 35.85 33.96 32.08 30.19 28.30 26.42 24.53 22.64 20.75 18.87 16.98 15.09 13.21 11.32 5.66 1.89

Region

_________________________________________________________________________________________________________

India Indonesia Italy Spain Germany South Korea Russia Norway France Denmark the United Kingdom China Hungary Japan Pakistan Australia Sweden Finland Switzerland Singapore Austria Belgium Netherlands Poland Luxembourg USA Turkey Mexico New Zealand Hong Kong Canada Israel Ireland Taiwan Portugal Greece Malaysia South Africa Czech Republic Brazil Argentina Chile Thailand Peru Philippines

Asia Asia Europe Europe Europe Asia Europe Europe Europe Europe Europe Asia Europe Asia the Middle East Oceana Europe Europe Europe Asia Europe Europe Europe Europe Europe North America the Middle East Latin America Oceana Asia North America the Middle East Europe Asia Europe Europe Asia Africa Europe Latin America Latin America Latin America Asia Latin America Asia

_________________________________________________________________________________________________________





52

Total Liabilities (Surgical and Medical Instruments and Apparatus) Countries in Europe


Rank

Percentile

63.71 63.20 62.68 61.79 58.85 56.32 53.76 53.63 52.65 52.53 52.48 50.91 48.33 47.97 47.30 44.40 43.67 42.54 42.01 40.74 40.44 40.36 40.10 40.07 39.89 39.82 39.35 39.35 39.20 38.69 38.47 36.33 35.57 34.78 33.47 33.41 30.66 28.46 28.14 27.34 26.38 24.90 18.67 17.87 17.01 15.77 15.56 15.15 14.38 14.37 6.79

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Vatican City Italy Spain Germany Slovenia Estonia Belarus Slovakia Russia Lithuania Norway France Denmark the United Kingdom Hungary Sweden Finland Ukraine Switzerland Austria Gibraltar San Marino Belgium Netherlands Monaco Georgia Guernsey Jersey Liechtenstein Poland Andorra Luxembourg Iceland Moldova Kazakhstan Bulgaria Romania Faroe Islands Bosnia & Herzegovina Macedonia Serbia & Montenegro Ireland Portugal Cyprus Greece Malta Isle of Man Czech Republic Latvia Croatia Albania

_________________________________________________________________________________________________________




53

Common Equity Countries


Rank

Percentile

83.93 83.88 75.99 74.90 74.28 72.31 70.18 69.74 68.34 64.18 61.90 59.56 59.26 58.81 57.91 57.55 56.28 55.71 54.95 53.94 53.57 52.35 51.82 51.59 50.76 49.77 48.15 47.27 45.18 42.09 41.02 40.60 37.16 36.96 35.83 35.63 33.21 27.16 24.39 22.65 22.59 22.19 13.61 13.38 10.37

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 30 32 33 34 36 37 38 39 40 42 43 44 45 46 51 52 53

98.11 96.23 94.34 92.45 90.57 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 43.40 39.62 37.74 35.85 32.08 30.19 28.30 26.42 24.53 20.75 18.87 16.98 15.09 13.21 3.77 1.89 0.00

Region

_________________________________________________________________________________________________________

Malaysia South Africa Brazil Israel Ireland Chile Canada New Zealand Hong Kong USA Taiwan Belgium Austria Netherlands Singapore Switzerland Finland Portugal Thailand Sweden Australia Japan the United Kingdom Denmark Greece Luxembourg France Norway Czech Republic Argentina South Korea Peru Spain Russia Italy Germany Hungary Poland Philippines Turkey Mexico Indonesia China Pakistan India

Asia Africa Latin America the Middle East Europe Latin America North America Oceana Asia North America Asia Europe Europe Europe Asia Europe Europe Europe Asia Europe Oceana Asia Europe Europe Europe Europe Europe Europe Europe Latin America Asia Latin America Europe Europe Europe Europe Europe Europe Asia the Middle East Latin America Asia Asia the Middle East Asia

_________________________________________________________________________________________________________





54

Common Equity (Surgical and Medical Instruments and Apparatus) Countries in Europe


Rank

Percentile

74.28 65.53 64.84 59.56 59.26 58.81 58.69 57.55 57.23 57.23 56.28 56.16 55.71 54.16 53.94 53.70 53.32 51.82 51.59 50.76 49.77 48.15 47.27 47.04 46.42 45.18 42.89 42.87 39.54 37.74 37.65 37.16 36.96 36.88 36.12 35.83 35.63 35.44 34.88 33.21 29.86 28.40 27.96 27.16 24.42 23.50 23.46 21.52 19.75 19.20 18.52

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Ireland Faroe Islands Iceland Belgium Austria Netherlands San Marino Switzerland Jersey Guernsey Finland Monaco Portugal Andorra Sweden Liechtenstein Cyprus the United Kingdom Denmark Greece Luxembourg France Norway Malta Isle of Man Czech Republic Latvia Croatia Estonia Belarus Slovakia Spain Russia Lithuania Vatican City Italy Germany Albania Slovenia Hungary Ukraine Gibraltar Georgia Poland Moldova Kazakhstan Bulgaria Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro

_________________________________________________________________________________________________________




55

Retained Earnings Countries


Rank

Percentile

45.01 39.42 39.39 37.16 36.82 35.69 33.96 33.77 33.09 32.14 31.34 29.40 27.31 26.26 25.81 25.34 25.17 24.12 22.04 19.07 16.40 15.55 14.01 12.79 12.59 12.15 11.45 10.98 10.30 9.91 9.79 8.59 8.57 6.85 6.80 5.91 5.66 5.60 5.10 4.65 4.14 3.85 3.43 3.38

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 22 23 24 27 28 29 30 31 32 33 34 35 37 38 40 41 42 43 44 46 47 48 50 51 52

98.08 96.15 94.23 92.31 90.38 88.46 86.54 84.62 82.69 80.77 78.85 76.92 75.00 73.08 71.15 69.23 67.31 65.38 63.46 57.69 55.77 53.85 48.08 46.15 44.23 42.31 40.38 38.46 36.54 34.62 32.69 28.85 26.92 23.08 21.15 19.23 17.31 15.38 11.54 9.62 7.69 3.85 1.92 0.00

Region

_________________________________________________________________________________________________________

Finland Malaysia South Africa Switzerland Norway Brazil Chile New Zealand Hong Kong Luxembourg USA Canada Singapore Australia Thailand Japan Denmark the United Kingdom Netherlands Peru Belgium South Korea Russia Sweden Hungary Austria Philippines Italy Poland Germany Spain Turkey Mexico Israel Ireland France Taiwan Indonesia Portugal Greece Czech Republic Argentina China Pakistan

Europe Asia Africa Europe Europe Latin America Latin America Oceana Asia Europe North America North America Asia Oceana Asia Asia Europe Europe Europe Latin America Europe Asia Europe Europe Europe Europe Asia Europe Europe Europe Europe the Middle East Latin America the Middle East Europe Europe Asia Asia Europe Europe Europe Latin America Asia the Middle East

_________________________________________________________________________________________________________





56

Retained Earnings (Surgical and Medical Instruments and Apparatus) Countries in Europe


Rank

Percentile

45.01 37.16 36.82 34.68 32.14 31.73 31.66 26.49 25.54 25.17 24.12 22.04 16.65 16.40 14.99 14.31 14.28 14.01 13.98 12.79 12.59 12.15 12.04 11.73 11.73 11.32 11.07 10.98 10.77 10.60 10.30 9.91 9.79 9.26 9.19 8.91 8.89 8.16 7.49 7.28 7.02 6.80 5.91 5.10 4.88 4.65 4.31 4.25 4.14 3.93 3.92

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Finland Switzerland Norway Liechtenstein Luxembourg Faroe Islands Iceland Monaco Andorra Denmark the United Kingdom Netherlands Albania Belgium Estonia Belarus Slovakia Russia Lithuania Sweden Hungary Austria San Marino Jersey Guernsey Ukraine Vatican City Italy Gibraltar Georgia Poland Germany Spain Moldova Slovenia Kazakhstan Bulgaria Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro Ireland France Portugal Cyprus Greece Malta Isle of Man Czech Republic Latvia Croatia

_________________________________________________________________________________________________________




3.4 3.4.1

57

FINANCIAL RETURNS IN FINLAND: INCOME STRUCTURE RATIOS Overview

In this chapter we consider the income structure of companies operating in Finland benchmarked against global averages. The chapter begins by defining relevant terms. A common-size statement, or vertical analysis of income is then presented for the proto-typical firm involved in surgical and medical instruments and apparatus operating in Finland and the average global benchmarks (total revenue = 100 percent). For ratios where there are large deviations between Finland and the benchmarks, graphics are provided. Then the distribution of ratios is presented in the form of ranks and percentiles. Certain key vertical analysis income ratios are highlighted across countries in the comparison group.

3.4.2

Income Statements – Definitions of Terms

The following definitions are provided for those less familiar with the income-side of financial statement analysis. As this chapter deals with the vertical analysis and global benchmarking of income, only definitions covering certain terms used in this chapter’s tables and graphs are provided here . The glossary below reflects commonly accepted definitions across various countries and official sources. •

Amortization. Amortization generally refers to the depreciation, depletion, or charge-off to expense of intangible and tangible assets over a period of time. Amortization is commonly understood to be the taking as an expense (writing off) of the loss of value of an intangible asset such as a copyright, a patent, or a mailing list, in an accounting period.

•

Cost of Goods Sold (excluding depreciation). For retail companies, cost of goods sold is generally defined as the equivalent of starting inventory plus purchases minus ending inventory. In manufacturing, cost of goods sold is defined to equal the starting inventory plus the cost of goods manufactured minus ending inventory. Most pure service firms do not generally have cost of goods sold.

•

Current Domestic Income Tax. Current domestic income taxes are commonly defined as compulsory charges levied by the government where the company is located on current income.

•

Current Foreign Income Tax. Current foreign income taxes are commonly defined as compulsory charges levied by foreign governments on current income.

•

Deferred Domestic Income Tax. Deferred domestic income tax is defined as a compulsory charge from a previous accounting period which is yet unpaid to the government where the company is located on current income.

•

Deferred Foreign Income Tax. Deferred foreign income tax is generally defined as a compulsory charge from a previous accounting period which is yet unpaid to foreign governments on current income.

•

Depletion. Depletion is commonly defined to be included as one of the elements of amortization, and is understood to be the portion of the carrying value (other than the portion associated with tangible assets) prorated in each accounting period for financial reporting purposes.




58

•

Depreciation. Depreciation generally is defined as the expiration in the service life of fixed assets, other than depletable assets, attributable to wear and tear, deterioration, action of the physical elements, inadequacy and obsolescence. Depreciation is commonly defined as the portion of the cost of a fixed asset charged as an expense during a particular period. In accounting for depreciation, the cost of a fixed asset, less any salvage value, is prorated over the estimated service life of such an asset, and each period is charged with a portion of such cost. Through this process, the cost of the asset is ultimately charged off as an expense.

•

Earnings Before Interest and Taxes (EBIT). EBIT is a financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. In other words, operating and non-operating profit before the deduction of interest and income taxes.

•

Extraordinary Items. Extraordinary items are defined to include income and expense items associated with events and transactions that possess a high degree of abnormality and are of a type that would not reasonably be expected to recur in the foreseeable future.

•

Gain/Loss Sale of Assets. Gains or losses associated with the sale of assets are defined as increases or decreases in equity (net assets) resulting from the sale of assets.

•

Gross Income. Gross income is commonly defined as all the money, goods, and property received by the company that must be included as taxable income.

•

Income Taxes. Income taxes are defined to include those taxes levied by state, federal, and local governments on the company's reported accounting profit. Income taxes generally include both deferred and paid taxes. They are generally determined after the interest expense has been deducted.

•

Interest Expense on Debt. Interest expenses on debt are those which are spent on current debt and added to the net income so avoid underestimating interest coverage.

•

Minority Interest. Minority interest is the proportional share of the minority ownership's interest (less than 50 percent) in the earnings or losses.

•

Net Income Available to Common. Net income available to common is defined as the net income available to common stockholders.

•

Net Income Before Preferred Dividends. Net income before preferred dividends is generally calculated as the difference between total revenues and total expense prior to the granting of preferred dividends.

•

Net Sales or Revenues. Revenues or net sales are defined as payments made to and received by an entity. May take the form of taxes, user fees, fines, fees for service, and so on.

•

Non-Operating Interest Income. Non-operating interest income is generally understood to be any interest received (e.g., royalty, production payment, net profits interest) that does not involve the operation of the company.

•

Operating Expenses. Operating expenses are generally defined as those incurred in paying for the company’s day-to-day activities.

•

Operating Income. Operating income is generally defined to equal operating revenues less operating expenses. It typically excludes items of other revenue and expense such as equity in earnings of unconsolidated companies, dividends, interest income and expense, income taxes, extraordinary items, and cumulative effect of accounting changes.




59

•

Pretax Equity In Earnings. Pretax equity in earnings is generally defined to equal a company's proportional share (based on ownership) of the gross earnings or losses of an unconsolidated company.

•

Pretax Income. Pretax income is generally defined as income before tax deductions.

•

Selling, General & Administrative Expenses. Selling, general and administrative expenses are expenses independent from cost of sales for the purpose of illustrating the amount of the company's selling and administrative costs. Generally included in this figure are the costs of employees' salaries, commissions, and travel expenses; company payroll and office costs; and advertising and promotion.




3.4.3

60

Income Structure: Outlook

Using the methodology described in the introduction, the following table summarizes income structure benchmarks for firms involved in surgical and medical instruments and apparatus in Finland. To allow comparable benchmarking, a common index of Net Sales or Revenues = 100 is used. All figures are current-year projections for companies operating in Finland based on latest financial results available. Income Structure Finland Europe World Avg. _________________________________________________________________________________________________________

Net Sales or Revenues Cost of Goods Sold (Excluding Depreciation) Depreciation, Depletion & Amortization Gross Income Selling, General & Administrative Expenses Other Operating Expenses Operating Expenses - Total Operating Income Extraordinary Credit - Pretax Extraordinary Charge - Pretax Non-Operating Interest Income Pretax Equity In Earnings Other Income/Expense Net Earnings Before Interest and Taxes (EBIT) Interest Expense on Debt Pretax Income Income Taxes Current Domestic Income Tax Current Foreign Income Tax Deferred Domestic Income Tax Deferred Foreign Income Tax Minority Interest Net Income Before Extra Items/Prefer Dividends Extraordinary Items & Gain/Loss Sale Of Assets Net Income Before Preferred Dividends Net Income Available to Common

100.00 43.49 4.73 50.88 39.95 89.57 0.50 7.97 0.16 0.30 0.60 -0.01 0.63 8.90 1.10 7.80 2.95 2.49 0.93 0.50 0.19 -0.03 4.87 2.05 6.92 4.87

100.00 49.84 3.63 28.70 22.86 74.98 1.45 6.69 0.66 0.82 0.77 -0.02 0.51 7.39 1.66 5.85 1.25 2.07 0.56 -0.13 0.02 0.07 4.55 0.03 4.58 4.55

100.00 54.58 2.91 18.75 7.66 66.71 2.42 9.05 0.24 0.32 0.58 0.00 -0.08 9.38 2.77 6.62 1.18 1.13 0.06 -0.05 0.00 0.02 5.45 -0.01 5.44 5.31

_________________________________________________________________________________________________________





3.4.4

61

Large Variances: Income

The following graphics summarize for surgical and medical instruments and apparatus the large income structure gaps between firms operating in Finland and the world average. A gap cannot necessarily be interpreted as a positive or negative reflection on performance. Gaps may signal areas of specialization, market focus, or expertise. More contextual information is required to fully interpret these gaps. The gaps highlighted here are simply those that are large.

Gap: Cost of Goods Sold (Excluding Depreciation) 60

43.49

49.84

54.58

40 20 0 -11.09

-20 Finland

Europe

World Average

Gap

Gap: Depreciation, Depletion & Amortization 5

4.73 3.63

4

2.91

3

1.82

2 1 0 Finland

Europe

World Average

Gap

Gap: Gross Income 60

50.88

50 40

32.13

28.7

30

18.75

20 10 0 Finland


Europe

World Average

Gap



62

Gap: Selling, General & Administrative Expenses 40

39.95 32.29

30

22.86

20 7.66

10 0 Finland

Europe

World Average

Gap

Gap: Other Operating Expenses 100

89.57 74.98

80

66.71

60 40

22.86

20 0 Finland

Europe

World Average

Gap

Gap: Operating Expenses - Total 3

2.42 1.45

2 1

0.5

0 -1 -2 Finland

Europe

World Average

-1.92 Gap

Gap: Interest Expense on Debt 2.77

3 2

1.1

1.66

1 0 -1 -1.67

-2 Finland


Europe

World Average

Gap



63

Gap: Income Taxes 3

2.95

2.5 1.77

2 1.25

1.5

1.18

1 0.5 0 Finland

Europe

World Average

Gap

Gap: Current Domestic Income Tax 2.5

2.49 2.07

2 1.5

1.13

1.36

1 0.5 0 Finland

Europe

World Average

Gap

Gap: Extraordinary Items & Gain/Loss Sale Of Assets 2.5

2.05

2.04

2 1.5 1 0.5

0.03

0 Finland

Europe

0.01 World Average

Gap

Gap: Net Income Before Preferred Dividends 8

6.92

6

4.58

5.44

4 1.48

2 0 Finland


Europe

World Average

Gap



3.4.5

64


We now consider the distribution of income ratios for surgical and medical instruments and apparatus using ranks and percentiles. What percent of countries have a value lower or higher than Finland (what is the ratio's rank or percentile)? The table below answers this question with respect to the vertical analysis of income structure. The ranks and percentiles indicate, from highest to lowest, where a value falls within the distribution of all countries considered in the global benchmark (the number of countries in the benchmark per line item may vary, as indicated in the Rank). Again, a high or low figure does not necessarily indicate good or bad performance. After the summary table below, a few key vertical income ratios are highlighted in additional tables. Income Structure

Finland

Rank of Total

Percentile

100.00 43.49 4.73 50.88 39.95 89.57 0.50 7.97 0.16 0.30 0.60 -0.01 0.63 8.90 1.10 7.80 2.95 2.49 0.93 0.50 0.19 -0.03 4.87 2.05 6.92 4.87

31 of 53 12 of 53 5 of 53 6 of 40 18 of 52 26 of 35 29 of 53 18 of 24 31 of 35 30 of 52 9 of 15 22 of 52 28 of 53 32 of 53 27 of 53 14 of 53 16 of 43 5 of 12 3 of 32 3 of 9 30 of 34 31 of 53 1 of 9 23 of 53 31 of 53

41.51 77.36 90.57 85.00 65.38 25.71 45.28 25.00 11.43 42.31 40.00 57.69 47.17 39.62 49.06 73.58 62.79 58.33 90.63 66.67 11.76 41.51 88.89 56.60 41.51

_________________________________________________________________________________________________________


_________________________________________________________________________________________________________





65

Cost of Goods Sold (Excluding Depreciation) Countries

Value (total revenue = 100)

Rank

Percentile

82.41 81.07 79.42 79.29 76.08 75.42 73.56 69.82 67.96 64.62 62.31 61.34 61.06 59.63 58.22 57.02 56.97 54.70 53.99 53.60 51.14 50.54 49.94 49.69 49.68 45.29 43.76 43.49 43.38 43.35 41.65 41.54 39.27 37.84 37.37 37.32 37.02 30.85 28.40 27.76 25.29 22.52 20.99 20.98 12.60

1 2 3 4 6 7 8 9 11 12 13 14 15 16 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 38 39 40 41 42 43 44 45 47 49 50 52

98.11 96.23 94.34 92.45 88.68 86.79 84.91 83.02 79.25 77.36 75.47 73.58 71.70 69.81 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 43.40 41.51 39.62 37.74 35.85 33.96 32.08 28.30 26.42 24.53 22.64 20.75 18.87 16.98 15.09 11.32 7.55 5.66 1.89

Region

_________________________________________________________________________________________________________

Indonesia India Norway Singapore France South Korea Germany Spain Russia Canada Japan Belgium Hungary Italy the United Kingdom Austria Denmark New Zealand Sweden Hong Kong Australia China Poland Pakistan USA Netherlands Switzerland Finland Malaysia South Africa Turkey Mexico Brazil Luxembourg Chile Israel Ireland Taiwan Thailand Portugal Greece Czech Republic Peru Argentina Philippines

Asia Asia Europe Asia Europe Asia Europe Europe Europe North America Asia Europe Europe Europe Europe Europe Europe Oceana Europe Asia Oceana Asia Europe the Middle East North America Europe Europe Europe Asia Africa the Middle East Latin America Latin America Europe Latin America the Middle East Europe Asia Asia Europe Europe Europe Latin America Latin America Asia

_________________________________________________________________________________________________________





66

Cost of Goods Sold (Excluding Depreciation) (Surgical and Medical Instruments and Apparatus) Countries in Europe


Rank

Percentile

79.42 76.89 76.08 74.15 73.56 72.70 69.82 69.39 69.23 67.96 67.80 65.55 61.34 61.06 60.12 59.63 58.22 57.02 56.97 56.48 55.07 55.07 54.91 53.99 52.21 51.40 51.39 50.19 49.94 45.29 44.90 43.76 43.49 43.21 43.13 40.83 39.58 37.84 37.02 36.32 35.30 34.05 27.76 26.57 25.29 23.44 23.13 22.52 21.37 21.36 18.32

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Norway Monaco France Andorra Germany Estonia Spain Belarus Slovakia Russia Lithuania Slovenia Belgium Hungary Vatican City Italy the United Kingdom Austria Denmark San Marino Jersey Guernsey Ukraine Sweden Gibraltar Georgia Faroe Islands Iceland Poland Netherlands Moldova Switzerland Finland Kazakhstan Bulgaria Liechtenstein Romania Luxembourg Ireland Bosnia & Herzegovina Macedonia Serbia & Montenegro Portugal Cyprus Greece Malta Isle of Man Czech Republic Latvia Croatia Albania

_________________________________________________________________________________________________________




67

Selling, General & Administrative Expenses Countries


Rank

Percentile

49.69 48.56 48.16 40.49 40.13 39.95 39.89 37.86 36.64 36.12 35.55 34.89 34.50 34.03 33.03 32.91 31.23 29.30 28.17 28.14 27.29 24.93 24.43 22.60 19.23 18.52 12.54 11.75 10.59 10.12 9.51 7.78 6.49 6.47 6.21 6.10

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 30 31 33 34 36 37 38 39

97.50 95.00 92.50 90.00 87.50 85.00 82.50 80.00 77.50 75.00 72.50 70.00 67.50 65.00 62.50 60.00 57.50 55.00 52.50 50.00 47.50 45.00 42.50 40.00 37.50 35.00 32.50 30.00 25.00 22.50 17.50 15.00 10.00 7.50 5.00 2.50

Region

_________________________________________________________________________________________________________

Australia Israel Ireland Netherlands Taiwan Finland Switzerland Sweden Denmark Portugal Canada USA Luxembourg Belgium Austria Greece the United Kingdom Czech Republic Italy Japan Argentina New Zealand Hong Kong Germany France Norway Singapore South Korea Russia Indonesia Hungary Poland Turkey Mexico China Pakistan

Oceana the Middle East Europe Europe Asia Europe Europe Europe Europe Europe North America North America Europe Europe Europe Europe Europe Europe Europe Asia Latin America Oceana Asia Europe Europe Europe Asia Asia Europe Asia Europe Europe the Middle East Latin America Asia the Middle East

_________________________________________________________________________________________________________





68

Selling, General & Administrative Expenses (Surgical and Medical Instruments and Apparatus) Countries in Europe


Rank

Percentile

48.16 40.49 39.95 39.89 37.86 37.22 36.64 36.12 35.24 34.57 34.50 34.03 33.03 32.91 32.71 31.90 31.90 31.23 30.50 30.10 29.30 28.40 28.17 27.81 27.79 23.43 22.60 19.23 18.52 12.16 11.73 11.33 10.81 10.78 10.59 10.56 9.51 8.55 8.13 8.01 7.78 6.99 6.73 6.72 6.16 5.66 5.50 5.30

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48

97.92 95.83 93.75 91.67 89.58 87.50 85.42 83.33 81.25 79.17 77.08 75.00 72.92 70.83 68.75 66.67 64.58 62.50 60.42 58.33 56.25 54.17 52.08 50.00 47.92 45.83 43.75 41.67 39.58 37.50 35.42 33.33 31.25 29.17 27.08 25.00 22.92 20.83 18.75 16.67 14.58 12.50 10.42 8.33 6.25 4.17 2.08 0.00

_________________________________________________________________________________________________________

Ireland Netherlands Finland Switzerland Sweden Liechtenstein Denmark Portugal Iceland Cyprus Luxembourg Belgium Austria Greece San Marino Guernsey Jersey the United Kingdom Malta Isle of Man Czech Republic Vatican City Italy Latvia Croatia Faroe Islands Germany France Norway Monaco Andorra Estonia Belarus Slovakia Russia Lithuania Hungary Ukraine Gibraltar Georgia Poland Moldova Kazakhstan Bulgaria Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro

_________________________________________________________________________________________________________





69

Operating Expenses - Total Countries


Rank

Percentile

10.59 10.58 9.59 9.12 8.24 8.22 7.47 7.11 6.93 5.12 4.58 3.73 3.42 3.21 3.08 2.84 2.61 2.50 2.45 2.11 1.51 0.50 0.28 0.28 0.27 0.25 0.20 0.17 0.17

1 2 3 4 5 6 7 8 9 12 13 15 16 17 18 19 21 22 23 24 25 26 27 28 30 31 33 34 35

97.14 94.29 91.43 88.57 85.71 82.86 80.00 77.14 74.29 65.71 62.86 57.14 54.29 51.43 48.57 45.71 40.00 37.14 34.29 31.43 28.57 25.71 22.86 20.00 14.29 11.43 5.71 2.86 0.00

Region

_________________________________________________________________________________________________________

Malaysia South Africa Brazil Chile France Switzerland Germany Luxembourg Thailand Peru India Italy Netherlands Singapore Philippines Denmark Belgium New Zealand Hong Kong the United Kingdom Canada Finland Indonesia Sweden USA Japan Australia China Pakistan

Asia Africa Latin America Latin America Europe Europe Europe Europe Asia Latin America Asia Europe Europe Asia Asia Europe Europe Oceana Asia Europe North America Europe Asia Europe North America Asia Oceana Asia the Middle East

_________________________________________________________________________________________________________





70

Operating Expenses - Total (Surgical and Medical Instruments and Apparatus) Countries in Europe


Rank

Percentile

8.24 8.22 7.67 7.47 7.11 4.47 3.76 3.73 3.42 3.11 3.00 2.84 2.61 2.35 2.11 0.50 0.28 0.27

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

94.44 88.89 83.33 77.78 72.22 66.67 61.11 55.56 50.00 44.44 38.89 33.33 27.78 22.22 16.67 11.11 5.56 0.00

_________________________________________________________________________________________________________

France Switzerland Liechtenstein Germany Luxembourg Albania Vatican City Italy Netherlands Monaco Andorra Denmark Belgium Faroe Islands the United Kingdom Finland Sweden Iceland

_________________________________________________________________________________________________________





71

Operating Income Countries


Rank

Percentile

44.63 44.60 40.41 38.45 29.22 21.59 15.31 15.00 13.40 12.97 12.84 12.51 11.20 11.10 10.42 9.72 9.39 9.21 9.13 9.12 9.08 8.18 7.99 7.97 7.61 7.35 6.85 6.85 6.71 6.53 6.24 6.01 5.55 5.20 5.17 5.01 5.00 4.71 3.65 3.13 2.24 2.20 1.04 -0.45 -0.97

1 2 3 4 5 8 10 11 12 13 14 15 16 17 19 20 21 22 23 24 25 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 45 47 49 50 51 52 53

98.11 96.23 94.34 92.45 90.57 84.91 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 64.15 62.26 60.38 58.49 56.60 54.72 52.83 49.06 47.17 45.28 43.40 41.51 39.62 37.74 35.85 33.96 32.08 30.19 28.30 26.42 24.53 22.64 20.75 18.87 15.09 11.32 7.55 5.66 3.77 1.89 0.00

Region

_________________________________________________________________________________________________________

Malaysia South Africa Brazil Chile Thailand Peru New Zealand Hong Kong Australia Philippines Switzerland Canada USA Luxembourg Netherlands India Denmark Israel Ireland Sweden South Korea Russia France Finland Taiwan Hungary Italy Portugal the United Kingdom Japan Greece Poland Czech Republic Austria Argentina Turkey Mexico Singapore Indonesia Norway China Pakistan Germany Spain Belgium

Asia Africa Latin America Latin America Asia Latin America Oceana Asia Oceana Asia Europe North America North America Europe Europe Asia Europe the Middle East Europe Europe Asia Europe Europe Europe Asia Europe Europe Europe Europe Asia Europe Europe Europe Europe Latin America the Middle East Latin America Asia Asia Europe Asia the Middle East Europe Europe Europe

_________________________________________________________________________________________________________





72

Operating Income (Surgical and Medical Instruments and Apparatus) Countries in Europe


Rank

Percentile

18.85 14.39 12.84 11.98 11.31 11.10 10.42 9.39 9.13 9.12 8.75 8.35 8.33 8.18 8.16 7.99 7.97 7.35 6.91 6.85 6.85 6.71 6.61 6.55 6.28 6.24 6.19 6.01 5.78 5.71 5.55 5.40 5.27 5.27 5.20 5.20 5.19 5.15 5.03 5.03 4.76 4.56 4.40 4.37 4.25 4.10 3.13 1.04 -0.43 -0.45 -0.97

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Albania Faroe Islands Switzerland Liechtenstein Iceland Luxembourg Netherlands Denmark Ireland Sweden Estonia Belarus Slovakia Russia Lithuania France Finland Hungary Vatican City Italy Portugal the United Kingdom Ukraine Cyprus Gibraltar Greece Georgia Poland Malta Isle of Man Czech Republic Moldova Latvia Croatia Austria Kazakhstan Bulgaria San Marino Jersey Guernsey Romania Monaco Andorra Bosnia & Herzegovina Macedonia Serbia & Montenegro Norway Germany Slovenia Spain Belgium

_________________________________________________________________________________________________________




73

Earnings Before Interest and Taxes (EBIT) Countries


Rank

Percentile

47.98 47.95 43.44 41.33 31.41 23.21 16.29 15.43 13.94 13.65 13.15 12.80 12.55 12.11 11.81 11.81 11.59 11.16 11.06 11.05 10.56 10.41 9.22 8.90 8.30 7.94 7.56 7.15 7.07 6.99 6.73 6.59 6.43 6.41 6.27 5.40 5.26 4.38 4.37 4.00 2.42 1.48 1.46 -2.63 -4.85

1 2 3 4 5 8 10 11 12 13 14 15 16 17 19 20 21 22 23 24 25 26 27 28 29 30 31 33 34 35 36 37 38 39 40 41 42 43 44 46 47 50 51 52 53

98.11 96.23 94.34 92.45 90.57 84.91 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 43.40 41.51 37.74 35.85 33.96 32.08 30.19 28.30 26.42 24.53 22.64 20.75 18.87 16.98 13.21 11.32 5.66 3.77 1.89 0.00

Region

_________________________________________________________________________________________________________

Malaysia South Africa Brazil Chile Thailand Peru Italy Australia Philippines Switzerland Canada New Zealand Hong Kong France Luxembourg Denmark Netherlands Israel Ireland USA India Sweden Taiwan Finland Portugal South Korea Greece Russia Austria the United Kingdom Czech Republic Norway Hungary Singapore Argentina Japan Poland Turkey Mexico Germany Indonesia China Pakistan Belgium Spain

Asia Africa Latin America Latin America Asia Latin America Europe Oceana Asia Europe North America Oceana Asia Europe Europe Europe Europe the Middle East Europe North America Asia Europe Asia Europe Europe Asia Europe Europe Europe Europe Europe Europe Europe Asia Latin America Asia Europe the Middle East Latin America Europe Asia Asia the Middle East Europe Europe

_________________________________________________________________________________________________________





74

Earnings Before Interest and Taxes (EBIT) (Surgical and Medical Instruments and Apparatus) Countries in Europe


Rank

Percentile

20.26 16.43 16.29 13.65 12.74 12.11 12.03 11.81 11.81 11.59 11.17 11.06 10.41 8.90 8.30 7.94 7.65 7.56 7.30 7.29 7.15 7.14 7.07 7.01 7.01 6.99 6.91 6.83 6.83 6.73 6.59 6.43 6.39 6.39 6.21 5.99 5.78 5.49 5.41 5.26 4.72 4.55 4.54 4.16 4.00 3.82 3.71 3.58 -2.63 -4.55 -4.85

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Albania Vatican City Italy Switzerland Liechtenstein France Faroe Islands Luxembourg Denmark Netherlands Iceland Ireland Sweden Finland Portugal Cyprus Estonia Greece Belarus Slovakia Russia Lithuania Austria Malta San Marino the United Kingdom Isle of Man Guernsey Jersey Czech Republic Norway Hungary Latvia Croatia Monaco Andorra Ukraine Gibraltar Georgia Poland Moldova Kazakhstan Bulgaria Romania Germany Bosnia & Herzegovina Macedonia Serbia & Montenegro Belgium Slovenia Spain

_________________________________________________________________________________________________________




75

Pretax Income Countries


Rank

Percentile

47.97 47.94 43.44 41.33 31.41 23.21 17.86 17.50 14.37 13.94 13.28 12.48 12.37 10.79 10.31 10.19 10.00 9.95 9.87 9.76 8.70 8.22 7.80 7.40 6.74 6.00 5.81 5.59 5.18 5.10 4.80 4.79 4.32 3.88 3.57 3.18 2.98 2.68 2.65 2.64 0.44 0.27 0.26 -4.41 -6.63

1 2 3 4 5 8 9 10 12 13 14 15 16 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 38 39 40 41 42 43 44 45 47 50 51 52 53

98.11 96.23 94.34 92.45 90.57 84.91 83.02 81.13 77.36 75.47 73.58 71.70 69.81 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 43.40 41.51 39.62 37.74 35.85 33.96 32.08 28.30 26.42 24.53 22.64 20.75 18.87 16.98 15.09 11.32 5.66 3.77 1.89 0.00

Region

_________________________________________________________________________________________________________

Malaysia South Africa Brazil Chile Thailand Peru New Zealand Hong Kong Australia Philippines Italy Switzerland Canada Luxembourg Netherlands Denmark France Israel Ireland USA Sweden Taiwan Finland Portugal Greece Czech Republic the United Kingdom Argentina Austria Singapore South Korea Japan Russia Hungary Norway Poland Germany India Turkey Mexico Indonesia China Pakistan Belgium Spain

Asia Africa Latin America Latin America Asia Latin America Oceana Asia Oceana Asia Europe Europe North America Europe Europe Europe Europe the Middle East Europe North America Europe Asia Europe Europe Europe Europe Europe Latin America Europe Asia Asia Asia Europe Europe Europe Europe Europe Asia the Middle East Latin America Asia Asia the Middle East Europe Europe

_________________________________________________________________________________________________________





76

Pretax Income (Surgical and Medical Instruments and Apparatus) Countries in Europe


Rank

Percentile

20.26 16.78 13.39 13.28 12.48 11.64 10.79 10.31 10.19 10.00 9.87 9.87 8.70 7.80 7.40 7.09 6.74 6.25 6.17 6.00 5.81 5.70 5.70 5.18 5.13 5.00 5.00 4.95 4.77 4.62 4.41 4.40 4.32 4.31 3.88 3.57 3.49 3.32 3.27 3.18 2.98 2.86 2.75 2.74 2.52 2.31 2.24 2.17 -4.41 -6.22 -6.63

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Albania Faroe Islands Vatican City Italy Switzerland Liechtenstein Luxembourg Netherlands Denmark France Ireland Iceland Sweden Finland Portugal Cyprus Greece Malta Isle of Man Czech Republic the United Kingdom Latvia Croatia Austria San Marino Guernsey Jersey Monaco Andorra Estonia Belarus Slovakia Russia Lithuania Hungary Norway Ukraine Gibraltar Georgia Poland Germany Moldova Kazakhstan Bulgaria Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro Belgium Slovenia Spain

_________________________________________________________________________________________________________




77

Income Taxes Countries


Rank

Percentile

4.89 4.89 4.43 4.21 3.89 3.87 3.77 3.62 3.44 3.30 3.21 3.20 3.13 2.95 2.86 2.77 2.41 2.37 2.08 1.42 1.22 1.21 1.16 1.10 1.03 1.02 1.02 0.99 0.98 0.96 0.85 0.81 0.78 0.76 0.69 0.68 0.67 0.62 0.58 0.36 0.22 0.22 0.02 -0.67 -0.98

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 19 20 21 23 24 25 27 29 30 31 32 33 34 35 36 37 38 39 40 41 42 44 45 46 49 50 51 52 53

98.11 96.23 94.34 92.45 90.57 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 64.15 62.26 60.38 56.60 54.72 52.83 49.06 45.28 43.40 41.51 39.62 37.74 35.85 33.96 32.08 30.19 28.30 26.42 24.53 22.64 20.75 16.98 15.09 13.21 7.55 5.66 3.77 1.89 0.00

Region

_________________________________________________________________________________________________________

Malaysia South Africa Brazil Chile France Italy Canada Switzerland Australia USA Netherlands Thailand Luxembourg Finland Sweden Denmark Japan Peru the United Kingdom Philippines South Korea Singapore Germany Russia Belgium Israel Ireland Hungary New Zealand Hong Kong Taiwan Poland India Portugal Greece Turkey Mexico Czech Republic Argentina Indonesia China Pakistan Spain Austria Norway

Asia Africa Latin America Latin America Europe Europe North America Europe Oceana North America Europe Asia Europe Europe Europe Europe Asia Latin America Europe Asia Asia Asia Europe Europe Europe the Middle East Europe Europe Oceana Asia Asia Europe Asia Europe Europe the Middle East Latin America Europe Latin America Asia Asia the Middle East Europe Europe Europe

_________________________________________________________________________________________________________





78

Income Taxes (Surgical and Medical Instruments and Apparatus) Countries in Europe


Rank

Percentile

3.90 3.89 3.87 3.62 3.38 3.34 3.21 3.13 2.95 2.86 2.77 2.08 2.07 1.18 1.17 1.16 1.13 1.13 1.12 1.10 1.10 1.03 1.02 0.99 0.92 0.89 0.85 0.83 0.81 0.76 0.73 0.73 0.70 0.70 0.69 0.64 0.64 0.64 0.62 0.59 0.59 0.59 0.57 0.55 0.02 0.02 -0.65 -0.65 -0.67 -0.67 -0.98

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Vatican City France Italy Switzerland Liechtenstein Iceland Netherlands Luxembourg Finland Sweden Denmark the United Kingdom Albania Estonia Monaco Germany Andorra Belarus Slovakia Russia Lithuania Belgium Ireland Hungary Faroe Islands Ukraine Gibraltar Georgia Poland Portugal Cyprus Moldova Kazakhstan Bulgaria Greece Malta Romania Isle of Man Czech Republic Bosnia & Herzegovina Latvia Croatia Macedonia Serbia & Montenegro Spain Slovenia Jersey Guernsey San Marino Austria Norway

_________________________________________________________________________________________________________




3.5 3.5.1

79

FINANCIAL RETURNS IN FINLAND: PROFITABILITY RATIOS Overview

In this chapter we consider additional financial ratios estimated for firms involved in surgical and medical instruments and apparatus operating in Finland benchmarked against global averages. The chapter begins by defining relevant terms. Estimates are then presented for the proto-typical firm operating in Finland compared to average global benchmarks. For ratios where there are large deviations between the average firm in Finland and the benchmarks, graphics are provided. Then the distribution of ratios is presented in the form of ranks and percentiles. Certain key ratios are highlighted across countries in the comparison group.

3.5.2

Ratios – Definitions of Terms

The following definitions are provided for those less familiar with financial ratio analysis. As this chapter deals with the global benchmarking of ratios, only definitions covering certain terms used in this chapter’s tables and graphs are provided here . The glossary below reflects commonly accepted definitions across various countries and official sources. •

Accounts Receivables Days. The number of days' receivable sales generally correlates to the amount of the accounts receivables to the average daily sales on account. Accounts receivables days is often determined by dividing the gross receivables by (net sales/365).

•

Cash Earnings Return On Equity (%). Cash earnings return on equity generally measures the return of revenues to the shareholders. This ratio is generally calculated by dividing (net income before nonrecurring items minus preferred dividends) by the average common equity.

•

Cash Flow. Cash flow is generally defined as being equal to the company's net income plus the charge-off amounts for depreciation, depletion, amortization, extraordinary charges to reserves. These are bookkeeping deductions which are not paid out as cash.

•

Current Ratio. The current ratio is generally defined as a ratio of liquidity measuring the ability of a business to pay its current obligations when due. The current ratio is generally calculated by dividing total current assets by total current liabilities. Managers and lenders often want the current ratio to be 2.00 or greater. This ratio is often seen as an indication of short-term debt-paying ability. The higher the ratio, the more liquid the company.

•

Dividend Payout (% Earnings) - Total Dividends (%). The dividend payout ratio is generally used to measure the amount of current earnings per common share which are paid out in dividends. This ratio is generally determined by dividing dividends per common share by diluted earnings per share.

•

Fixed Charge Coverage Ratio. The fixed charge coverage ratio is generally seen as an indication of the company's ability to cover its fixed charges. This ratio is typically determined by dividing recurring earnings excluding interest expense, tax expense, equity earnings, and minority earnings plus interest from rentals by interest expense including capitalized interest and interest from rentals.

•

Gross Profit Margin (%). The gross profit margin is typically defined to equals the difference, in percent, between net sales revenue and the cost of goods sold.




80

•

Inventories (# of Days) Held. Inventory days held is generally determined by dividing the ending inventory by (the cost of goods held/365). The number of days held results in the average daily cost of goods held.

•

Inventory Turnover (%). Inventory turnover is used as a measure of the balance of inventory. It generally compares the amount of inventory with the total sales for the year. The ratio can reflect both on the quality of the inventory and the efficiency of management. Typically, the higher the turnover rate, the greater the likelihood that profits would be larger and less working capital bound up in inventory.

•

Net Margin (%). The net margin is the ratio of net income dollars generated by each dollar of sales.

•

Operating Profit Margin (%). Operating profit margin percent is the ratio of operating profit to net sales. Operating profit (loss) is income or loss before taxes calculated by the difference between total revenues and total expense disregarding the effects of any extraordinary transactions.

•

Quick Ratio. The quick ratio, also commonly known as the “acid test ratio”, is a refined current ratio and is often seen as a more conservative measure of liquidity. The quick ratio is generally determined by dividing cash and equivalents plus trade receivables by total current liabilities. The ratio shows the degree to which a company's current liabilities can be covered by the most liquid current assets. Financial management texts generally conclude that any value of less than 1 to 1 implies a reciprocal dependency on inventory or other current assets to liquidate short-term debt.

•

Reinvestment Rate - Total (%). The reinvestment rate is typically defined as the rate at which an investor assumes interest payments made on a debt security can be reinvested over the life of that security.

•

Return on Assets (%). Return on assets is generally used to measure a company's ability to use assets to create profit.

•

Return on Equity - Total (%). The return on total equity ratio is often seen to reflect the profitability of the company's operations after income taxes. Return on equity is often considered to be a good measure of the company's profitability. Tax laws and tax loss carryovers can affect the net income and therefore can also affect the return on equity.

•

Return on Invested Capital (%). The ratio of return on invested capital is typically defined as an evaluation of earnings performance without regard to the method of financing. This ratio measures the earnings on investment and is an indication of how well the company utilizes its asset base. Return on investment is a type of return on capital, therefore this ratio can be an indication of the company’s ability to reward investors who provide long-term funds and to attract future investors.

•

Tax Rate (%). The tax rate is typically defined as the average rate of domestic tax owed to government by the company.

•

Working Capital. Net working capital equals the difference between total current assets and total current liabilities. Working capital often reflects a company's ability to expand volume and meet obligations. Since growth is usually one goal, the amount of working capital on this year's balance sheet should be greater than that of the previous year's. This is an efficiency, or turnover, ratio which benchmarks the rate at which current assets less current liabilities are used by the company in making sales. A low ratio can indicate a less profitable use of working capital in making sales. On the other hand, a very high ratio can indicate the company is wasting current assets which could be more efficiently deployed in production and in increasing sales and profits; or that the company my be undercapitalized, and thus vulnerable to liquidity problems in a period of weak business conditions.




3.5.3

81

Ratio Structure: Outlook

Using the methodology described in the introduction, the following table summarizes ratio structure benchmarks for firms involved in surgical and medical instruments and apparatus in Finland. All figures are current-year projections for companies operating in Finland based on latest financial results available. Ratios Finland Europe World Avg. _________________________________________________________________________________________________________

Profitability Return on Equity - Total (%) Reinvestment Rate - Total (%) Return on Assets (%) Return on Invested Capital (%) Cash Earnings Return On Equity (%) Cash Flow % Sales Cost Goods Sold / Sales (%) Gross Profit Margin (%) Selling, General & Administrative Expense/Net Sales (%) Research & Development / Net Sales (%) Operating Profit Margin (%) Operating Inc / Total Capital (%) Pretax Margin (%) Tax Rate (%) Net Margin (%) Total Asset Turnover (X) th USD Asset Utilization Inventory Turnover (%) Net Sales % Working Capital Capital Expenditure % Gross Fixed Assets Capital Expenditure % Total Assets Capital Expenditure % Total Sales Accumulated Depreciation % Gross Fixed Assets Leverage Total Debt % Total Capital Long Term Debt % Total Capital Equity % Total Capital Fixed Charge Coverage Ratio Dividend Payout (% Earnings) - Total Dividends Fixed Assets % Common Equity Working Capital % Total Capital Liquidity Quick Ratio Current Ratio Inventories % Total Current Assets Accounts Receivables Days Inventories (# of Days) Held

13.49 6.43 9.07 11.81 19.85 9.76 43.49 50.88 30.70 9.25 7.97 13.54 7.80 50.58 6.92 1.16

10.54 9.22 5.56 7.18 20.33 8.26 49.84 28.70 18.15 5.49 6.69 10.76 5.85 21.39 4.58 0.73

7.95 4.50 7.16 8.36 21.20 8.10 54.58 18.75 6.69 1.58 9.05 17.39 6.62 31.63 5.44 0.90

3.99 4.68 25.82 9.20 7.89 53.92

3.07 -1.15 20.96 5.58 7.47 36.35

3.38 5.78 6.89 2.69 2.79 33.70

26.29 15.46 84.46 49.28 45.26 41.95 44.61

24.87 10.29 71.06 91.55 10.95 43.55 32.85

40.83 33.25 40.47 833.01 6.30 104.75 29.75

1.47 2.21 28.80 93.55 96.70

1.29 1.85 26.41 82.53 116.33

1.18 1.67 26.23 71.93 71.97

_________________________________________________________________________________________________________





3.5.4

82

Large Variances: Ratios

The following graphics summarize for surgical and medical instruments and apparatus the large ratio structure gaps between firms operating in Finland and the world average. A gap cannot necessarily be interpreted as a positive or negative reflection on performance. Gaps may signal areas of specialization, market focus, or expertise. More contextual information is required to fully interpret these gaps. The gaps highlighted here are simply those that are large.

Gap: Gross Profit Margin (%) 60

50.88

50 40

32.13

28.7

30

18.75

20 10 0 Finland

Europe

World Average

Gap

Gap: Selling, General & Administrative Expense/Net Sales (%) 40 30.7 30

24.01 18.15

20

6.69

10 0 Finland

Europe

World Average

Gap

Gap: Tax Rate (%) 60

50.58

50 40

31.63

30

21.39

18.95

20 10 0 Finland


Europe

World Average

Gap



83

Gap: Capital Expenditure % Gross Fixed Assets 30

25.82

25

20.96

18.93

20 15 10

6.89

5 0 Finland

Europe

World Average

Gap

Gap: Accumulated Depreciation % Gross Fixed Assets 60

53.92

50

36.35

40

33.7

30

20.22

20 10 0 Finland

Europe

World Average

Gap

Gap: Equity % Total Capital 100

84.46 71.06

80 60

43.99

40.47

40 20 0 Finland

Europe

World Average

Gap

Gap: Fixed Charge Coverage Ratio 833.01

1000 500 49.28

91.55

0 -500 -783.73

-1000 Finland


Europe

World Average

Gap



84

Gap: Dividend Payout (% Earnings) - Total Dividends 50

45.26 38.96

40 30 20

10.95

10

6.3

0 Finland

Europe

World Average

Gap

Gap: Fixed Assets % Common Equity 150

104.75

100 50

41.95

43.55

0 -50

-62.8

-100 Finland

Europe

World Average

Gap

Gap: Accounts Receivables Days 100

93.55

82.53

80

71.93

60 40

21.62

20 0 Finland

Europe

World Average

Gap

Gap: Inventories (# of Days) Held 116.33

120

96.7

100

71.97

80 60 40

24.73

20 0 Finland


Europe

World Average

Gap



3.5.5

85


We now consider the distribution of financial ratios for surgical and medical instruments and apparatus using ranks and percentiles. What percent of countries have a value lower or higher than Finland (what is the ratio's rank or percentile)? The table below answers this question with respect to financial ratios. The ranks and percentiles indicate, from highest to lowest, where a value falls within the distribution of all countries considered in the global benchmark (the number of countries in the benchmark per line item may vary, as indicated in the Rank). Again, a high or low figure does not necessarily indicate good or bad performance. After the summary table below, a few key financial ratios are highlighted in additional tables. Ratios

Finland

Rank of Total

Percentile

13.49 6.43 9.07 11.81 19.85 9.76 43.49 50.88 30.70 9.25 7.97 13.54 7.80 50.58 6.92 1.16

21 of 53 27 of 45 18 of 53 18 of 53 28 of 53 28 of 53 31 of 53 5 of 53 7 of 40 12 of 46 29 of 53 32 of 53 27 of 53 5 of 50 23 of 53 11 of 53

60.38 40.00 66.04 66.04 47.17 47.17 41.51 90.57 82.50 73.91 45.28 39.62 49.06 90.00 56.60 79.25

3.99 4.68 25.82 9.20 7.89 53.92

17 of 53 12 of 53 9 of 52 5 of 52 15 of 52 8 of 53

67.92 77.36 82.69 90.38 71.15 84.91

26.29 15.46 84.46 49.28 45.26 41.95 44.61

19 of 42 18 of 35 14 of 53 18 of 53 1 of 37 27 of 53 28 of 53

54.76 48.57 73.58 66.04 97.30 49.06 47.17

1.47 2.21 28.80 93.55 96.70

29 of 53 27 of 53 24 of 53 16 of 53 22 of 53

45.28 49.06 54.72 69.81 58.49

_________________________________________________________________________________________________________

Profitability Return on Equity - Total (%) Reinvestment Rate - Total (%) Return on Assets (%) Return on Invested Capital (%) Cash Earnings Return On Equity (%) Cash Flow % Sales Cost Goods Sold / Sales (%) Gross Profit Margin (%) Selling, General & Administrative Expense/Net Sales (%) Research & Development / Net Sales (%) Operating Profit Margin (%) Operating Inc / Total Capital (%) Pretax Margin (%) Tax Rate (%) Net Margin (%) Total Asset Turnover (X) th USD Asset Utilization Inventory Turnover (%) Net Sales % Working Capital Capital Expenditure % Gross Fixed Assets Capital Expenditure % Total Assets Capital Expenditure % Total Sales Accumulated Depreciation % Gross Fixed Assets Leverage Total Debt % Total Capital Long Term Debt % Total Capital Equity % Total Capital Fixed Charge Coverage Ratio Dividend Payout (% Earnings) - Total Dividends Fixed Assets % Common Equity Working Capital % Total Capital Liquidity Quick Ratio Current Ratio Inventories % Total Current Assets Accounts Receivables Days Inventories (# of Days) Held

_________________________________________________________________________________________________________





86

Gross Profit Margin (%) Countries

Value

Rank

Percentile

Israel Ireland Malaysia South Africa Finland Brazil Switzerland Netherlands Taiwan Chile Australia USA Luxembourg Portugal New Zealand Sweden Hong Kong Greece Denmark Austria Thailand the United Kingdom Italy Czech Republic Belgium Japan Argentina Canada Peru Spain Germany South Korea Russia France Singapore Hungary Norway Philippines India Indonesia Poland Turkey Mexico China Pakistan

57.76 57.29 55.22 55.18 50.88 50.00 49.85 48.19 47.74 47.57 46.72 46.13 43.11 42.97 42.10 41.82 41.25 39.15 38.80 38.23 36.16 36.14 35.05 34.85 34.36 33.73 32.46 31.79 26.72 25.61 22.47 21.10 19.01 18.40 17.36 17.08 17.03 16.04 14.30 14.05 13.97 11.65 11.62 8.62 8.47

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 31 32 33 34 37 38 39 40 41 42 43 44 45 48 49 52 53

98.11 96.23 94.34 92.45 90.57 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 41.51 39.62 37.74 35.85 30.19 28.30 26.42 24.53 22.64 20.75 18.87 16.98 15.09 9.43 7.55 1.89 0.00

Region

_________________________________________________________________________________________________________

the Middle East Europe Asia Africa Europe Latin America Europe Europe Asia Latin America Oceana North America Europe Europe Oceana Europe Asia Europe Europe Europe Asia Europe Europe Europe Europe Asia Latin America North America Latin America Europe Europe Asia Europe Europe Asia Europe Europe Asia Asia Asia Europe the Middle East Latin America Asia the Middle East

_________________________________________________________________________________________________________





87

Gross Profit Margin (%) (Surgical and Medical Instruments and Apparatus) Countries in Europe

Value

Rank

Percentile

Ireland Finland Switzerland Netherlands Iceland Liechtenstein Luxembourg Portugal Sweden Cyprus Faroe Islands Greece Denmark Austria San Marino Guernsey Jersey Malta the United Kingdom Isle of Man Vatican City Italy Czech Republic Belgium Latvia Croatia Spain Slovenia Albania Germany Estonia Belarus Slovakia Russia Lithuania France Hungary Norway Monaco Andorra Ukraine Gibraltar Georgia Poland Moldova Kazakhstan Bulgaria Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro

57.29 50.88 49.85 48.19 46.60 46.52 43.11 42.97 41.82 41.13 39.56 39.15 38.80 38.23 37.87 36.92 36.92 36.28 36.14 35.80 35.33 35.05 34.85 34.36 33.08 33.06 25.61 24.04 23.32 22.47 20.34 19.41 19.37 19.01 18.97 18.40 17.08 17.03 16.83 16.23 15.36 14.60 14.38 13.97 12.56 12.09 12.06 11.07 10.16 9.87 9.52

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

_________________________________________________________________________________________________________




88

Pretax Margin (%) Countries

Value

Rank

Percentile

Malaysia South Africa Brazil Chile Thailand Peru New Zealand Hong Kong Australia Philippines Italy Switzerland Canada Luxembourg Netherlands Denmark France Israel Ireland USA Sweden Taiwan Finland Portugal Greece Czech Republic the United Kingdom Argentina Austria Singapore South Korea Japan Russia Hungary Norway Poland Germany India Turkey Mexico Indonesia China Pakistan Belgium Spain

47.97 47.94 43.44 41.33 31.41 23.21 17.86 17.50 14.37 13.94 13.28 12.48 12.37 10.79 10.31 10.19 10.00 9.95 9.87 9.76 8.70 8.22 7.80 7.40 6.74 6.00 5.81 5.59 5.18 5.10 4.80 4.79 4.32 3.88 3.57 3.18 2.98 2.68 2.65 2.64 0.44 0.27 0.26 -4.41 -6.63

1 2 3 4 5 8 9 10 12 13 14 15 16 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 38 39 40 41 42 43 44 45 47 50 51 52 53

98.11 96.23 94.34 92.45 90.57 84.91 83.02 81.13 77.36 75.47 73.58 71.70 69.81 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 43.40 41.51 39.62 37.74 35.85 33.96 32.08 28.30 26.42 24.53 22.64 20.75 18.87 16.98 15.09 11.32 5.66 3.77 1.89 0.00

Region

_________________________________________________________________________________________________________

Asia Africa Latin America Latin America Asia Latin America Oceana Asia Oceana Asia Europe Europe North America Europe Europe Europe Europe the Middle East Europe North America Europe Asia Europe Europe Europe Europe Europe Latin America Europe Asia Asia Asia Europe Europe Europe Europe Europe Asia the Middle East Latin America Asia Asia the Middle East Europe Europe

_________________________________________________________________________________________________________





89

Pretax Margin (%) (Surgical and Medical Instruments and Apparatus) Countries in Europe

Value

Rank

Percentile

Albania Faroe Islands Vatican City Italy Switzerland Liechtenstein Luxembourg Netherlands Denmark France Ireland Iceland Sweden Finland Portugal Cyprus Greece Malta Isle of Man Czech Republic the United Kingdom Latvia Croatia Austria San Marino Guernsey Jersey Monaco Andorra Estonia Belarus Slovakia Russia Lithuania Hungary Norway Ukraine Gibraltar Georgia Poland Germany Moldova Kazakhstan Bulgaria Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro Belgium Slovenia Spain

20.26 16.78 13.39 13.28 12.48 11.64 10.79 10.31 10.19 10.00 9.87 9.87 8.70 7.80 7.40 7.09 6.74 6.25 6.17 6.00 5.81 5.70 5.70 5.18 5.13 5.00 5.00 4.95 4.77 4.62 4.41 4.40 4.32 4.31 3.88 3.57 3.49 3.32 3.27 3.18 2.98 2.86 2.75 2.74 2.52 2.31 2.24 2.17 -4.41 -6.22 -6.63

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

_________________________________________________________________________________________________________




90

Quick Ratio Countries

Value

Rank

Percentile

4.68 4.68 4.25 4.24 4.03 3.19 3.06 3.03 3.03 3.01 2.96 2.90 2.61 2.51 2.39 2.26 2.26 2.12 2.06 1.99 1.83 1.71 1.68 1.68 1.52 1.47 1.47 1.37 1.36 1.36 1.35 1.31 1.21 1.08 0.82 0.73 0.42 0.37 0.33 0.30 0.26 0.25 0.24 0.20 0.20

1 2 3 4 5 6 7 8 9 10 11 12 13 15 16 18 19 20 21 22 23 24 25 26 28 29 30 31 32 33 34 35 36 38 39 40 41 43 45 47 48 49 50 51 52

98.11 96.23 94.34 92.45 90.57 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 71.70 69.81 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 47.17 45.28 43.40 41.51 39.62 37.74 35.85 33.96 32.08 28.30 26.42 24.53 22.64 18.87 15.09 11.32 9.43 7.55 5.66 3.77 1.89

Region

_________________________________________________________________________________________________________

Malaysia South Africa Denmark Brazil Chile Belgium Thailand Israel Canada Ireland New Zealand Hong Kong USA Taiwan Sweden Peru Portugal Netherlands Greece Japan Czech Republic Argentina Austria Germany Switzerland Finland Norway Italy Philippines India France Luxembourg the United Kingdom Australia Singapore Spain Indonesia South Korea Russia Hungary China Pakistan Poland Turkey Mexico

Asia Africa Europe Latin America Latin America Europe Asia the Middle East North America Europe Oceana Asia North America Asia Europe Latin America Europe Europe Europe Asia Europe Latin America Europe Europe Europe Europe Europe Europe Asia Asia Europe Europe Europe Oceana Asia Europe Asia Asia Europe Europe Asia the Middle East Europe the Middle East Latin America

_________________________________________________________________________________________________________





91

Quick Ratio (Surgical and Medical Instruments and Apparatus) Countries in Europe

Value

Rank

Percentile

4.25 3.19 3.01 2.78 2.64 2.39 2.26 2.16 2.12 2.06 1.98 1.91 1.88 1.83 1.74 1.74 1.68 1.68 1.66 1.62 1.62 1.52 1.47 1.47 1.42 1.38 1.37 1.35 1.31 1.21 0.79 0.76 0.73 0.69 0.36 0.34 0.34 0.33 0.33 0.30 0.27 0.26 0.25 0.24 0.22 0.21 0.21 0.19 0.18 0.17 0.17

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Denmark Belgium Ireland Faroe Islands Iceland Sweden Portugal Cyprus Netherlands Greece Albania Malta Isle of Man Czech Republic Latvia Croatia Austria Germany San Marino Guernsey Jersey Switzerland Finland Norway Liechtenstein Vatican City Italy France Luxembourg the United Kingdom Monaco Andorra Spain Slovenia Estonia Belarus Slovakia Russia Lithuania Hungary Ukraine Gibraltar Georgia Poland Moldova Kazakhstan Bulgaria Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro

_________________________________________________________________________________________________________




92

Current Ratio Countries

Value

Rank

Percentile

5.06 5.06 4.94 4.84 4.58 4.55 4.36 3.97 3.72 3.64 3.37 3.35 3.31 3.28 3.02 2.79 2.79 2.71 2.55 2.51 2.45 2.30 2.29 2.24 2.21 2.14 2.13 2.03 2.03 1.99 1.90 1.88 1.87 1.84 1.47 1.29 1.17 0.82 0.74 0.72 0.71 0.67 0.54 0.45 0.45

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 19 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 38 39 41 44 46 47 48 49 50 51 52

98.11 96.23 94.34 92.45 90.57 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 64.15 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 43.40 41.51 39.62 37.74 35.85 33.96 32.08 28.30 26.42 22.64 16.98 13.21 11.32 9.43 7.55 5.66 3.77 1.89

Region

_________________________________________________________________________________________________________

Malaysia South Africa Canada Denmark Brazil Belgium Chile USA New Zealand Hong Kong Israel Ireland Thailand Sweden Netherlands Germany Taiwan Japan Austria Portugal Peru Switzerland Greece France Finland Italy Norway Czech Republic Singapore Luxembourg Argentina the United Kingdom Australia India Philippines Spain Indonesia South Korea Russia China Pakistan Hungary Poland Turkey Mexico

Asia Africa North America Europe Latin America Europe Latin America North America Oceana Asia the Middle East Europe Asia Europe Europe Europe Asia Asia Europe Europe Latin America Europe Europe Europe Europe Europe Europe Europe Asia Europe Latin America Europe Oceana Asia Asia Europe Asia Asia Europe Asia the Middle East Europe Europe the Middle East Latin America

_________________________________________________________________________________________________________





93

Current Ratio (Surgical and Medical Instruments and Apparatus) Countries in Europe

Value

Rank

Percentile

4.84 4.55 4.01 3.49 3.35 3.28 3.02 2.79 2.55 2.53 2.51 2.46 2.46 2.40 2.30 2.29 2.24 2.21 2.16 2.15 2.14 2.14 2.13 2.12 2.09 2.03 1.99 1.97 1.93 1.93 1.90 1.88 1.29 1.22 0.79 0.76 0.76 0.74 0.74 0.67 0.60 0.57 0.56 0.54 0.49 0.47 0.47 0.43 0.40 0.38 0.37

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Denmark Belgium Iceland Faroe Islands Ireland Sweden Netherlands Germany Austria San Marino Portugal Guernsey Jersey Cyprus Switzerland Greece France Finland Vatican City Liechtenstein Italy Albania Norway Malta Isle of Man Czech Republic Luxembourg Monaco Latvia Croatia Andorra the United Kingdom Spain Slovenia Estonia Belarus Slovakia Russia Lithuania Hungary Ukraine Gibraltar Georgia Poland Moldova Kazakhstan Bulgaria Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro

_________________________________________________________________________________________________________




94

Inventories % Total Current Assets Countries

Value

Rank

Percentile

Indonesia Singapore Italy South Korea Australia Germany Russia Spain China Pakistan Canada Hungary Austria France Switzerland USA Norway the United Kingdom Belgium Denmark Finland Poland Luxembourg Netherlands India Japan New Zealand Hong Kong Turkey Mexico Sweden Israel Ireland Malaysia South Africa Taiwan Brazil Portugal Chile Greece Czech Republic Argentina Thailand Peru Philippines

57.43 52.32 42.44 41.92 41.23 39.29 37.78 36.00 35.22 34.63 34.07 33.94 32.59 32.37 32.02 31.09 30.60 29.83 29.66 29.51 28.80 27.76 27.69 26.88 26.29 25.87 24.38 23.89 23.15 23.09 22.84 8.41 8.34 7.21 7.20 6.95 6.53 6.26 6.21 5.70 5.08 4.73 4.72 3.49 2.09

1 3 4 5 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 36 37 38 39 40 41 42 43 44 45 46 47 50 52

98.11 94.34 92.45 90.57 86.79 84.91 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 43.40 41.51 39.62 37.74 35.85 32.08 30.19 28.30 26.42 24.53 22.64 20.75 18.87 16.98 15.09 13.21 11.32 5.66 1.89

Region

_________________________________________________________________________________________________________

Asia Asia Europe Asia Oceana Europe Europe Europe Asia the Middle East North America Europe Europe Europe Europe North America Europe Europe Europe Europe Europe Europe Europe Europe Asia Asia Oceana Asia the Middle East Latin America Europe the Middle East Europe Asia Africa Asia Latin America Europe Latin America Europe Europe Latin America Asia Latin America Asia

_________________________________________________________________________________________________________





95

Inventories % Total Current Assets (Surgical and Medical Instruments and Apparatus) Countries in Europe

Value

Rank

Percentile

Monaco Andorra Vatican City Italy Estonia Germany Belarus Slovakia Russia Lithuania Spain Hungary Slovenia Austria France San Marino Switzerland Guernsey Jersey Iceland Norway Ukraine Liechtenstein the United Kingdom Belgium Denmark Gibraltar Finland Georgia Poland Luxembourg Netherlands Moldova Kazakhstan Bulgaria Faroe Islands Sweden Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro Ireland Portugal Cyprus Greece Malta Isle of Man Czech Republic Latvia Croatia Albania

50.73 48.92 42.78 42.44 40.41 39.29 38.57 38.48 37.78 37.69 36.00 33.94 33.80 32.59 32.37 32.28 32.02 31.47 31.47 31.41 30.60 30.52 29.88 29.83 29.66 29.51 29.02 28.80 28.57 27.76 27.69 26.88 24.96 24.02 23.97 22.91 22.84 22.00 20.19 19.62 18.93 8.34 6.26 5.99 5.70 5.28 5.21 5.08 4.82 4.82 3.04

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

_________________________________________________________________________________________________________




96

Accounts Receivables Days Countries

Value

Rank

Percentile

Italy Austria India New Zealand Hong Kong Israel Ireland Japan France Spain Taiwan Netherlands Norway Portugal Belgium Finland Canada Greece Germany Sweden Czech Republic the United Kingdom Singapore Switzerland Argentina USA Denmark Australia Luxembourg South Korea Russia Malaysia South Africa Hungary Brazil Chile Poland Thailand Turkey Mexico Indonesia Peru China Pakistan Philippines

197.01 190.83 175.92 144.45 141.54 134.56 133.45 120.51 113.98 113.49 111.20 104.41 100.09 100.08 96.76 93.55 91.24 91.19 89.63 87.55 81.18 79.76 78.07 77.39 75.62 74.41 72.41 71.57 66.93 49.69 44.78 43.86 43.83 40.23 39.71 37.78 32.90 28.72 27.45 27.37 26.56 21.22 16.29 16.01 12.74

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 32 33 34 35 36 37 38 39 40 41 42 47 49 50 52

98.11 96.23 94.34 92.45 90.57 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 43.40 39.62 37.74 35.85 33.96 32.08 30.19 28.30 26.42 24.53 22.64 20.75 11.32 7.55 5.66 1.89

Region

_________________________________________________________________________________________________________

Europe Europe Asia Oceana Asia the Middle East Europe Asia Europe Europe Asia Europe Europe Europe Europe Europe North America Europe Europe Europe Europe Europe Asia Europe Latin America North America Europe Oceana Europe Asia Europe Asia Africa Europe Latin America Latin America Europe Asia the Middle East Latin America Asia Latin America Asia the Middle East Asia

_________________________________________________________________________________________________________





97

Accounts Receivables Days (Surgical and Medical Instruments and Apparatus) Countries in Europe

Value

Rank

Percentile

Vatican City Italy Austria San Marino Guernsey Jersey Faroe Islands Ireland France Spain Slovenia Netherlands Norway Portugal Belgium Cyprus Finland Greece Germany Sweden Malta Isle of Man Czech Republic the United Kingdom Switzerland Latvia Croatia Monaco Iceland Andorra Denmark Liechtenstein Luxembourg Estonia Belarus Slovakia Russia Lithuania Hungary Ukraine Gibraltar Georgia Poland Moldova Kazakhstan Bulgaria Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro Albania

198.60 197.01 190.83 189.01 184.29 184.29 135.73 133.45 113.98 113.49 106.54 104.41 100.09 100.08 96.76 95.80 93.55 91.19 89.63 87.55 84.52 83.40 81.18 79.76 77.39 77.05 77.02 75.70 75.18 73.01 72.41 72.22 66.93 47.91 45.72 45.62 44.78 44.67 40.23 36.18 34.40 33.87 32.90 29.58 28.47 28.42 26.08 23.93 23.26 22.43 18.52

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

_________________________________________________________________________________________________________




98

Inventories (# of Days) Held Countries

Value

Rank

Percentile

Italy Belgium Austria Switzerland Luxembourg Netherlands Australia USA Canada Singapore New Zealand Japan Hong Kong Spain Sweden Israel the United Kingdom Ireland France Denmark Germany Finland Norway India Taiwan South Korea Malaysia South Africa Portugal Russia Greece Brazil Indonesia Hungary Chile Czech Republic Argentina Poland Thailand Turkey Mexico China Pakistan Peru Philippines

478.52 272.70 235.24 191.09 165.26 144.50 141.84 139.92 132.80 132.51 130.80 129.23 128.17 118.08 113.30 103.73 103.27 102.87 102.65 101.81 98.22 96.70 94.22 91.48 85.73 82.27 77.28 77.23 77.15 74.14 70.29 69.97 68.93 66.61 66.57 62.58 58.29 54.48 50.60 45.44 45.31 42.27 41.56 37.39 22.45

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 31 32 33 34 35 36 38 39 40 41 43 44 46 48 50 52

98.11 96.23 94.34 92.45 90.57 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 41.51 39.62 37.74 35.85 33.96 32.08 28.30 26.42 24.53 22.64 18.87 16.98 13.21 9.43 5.66 1.89

Region

_________________________________________________________________________________________________________

Europe Europe Europe Europe Europe Europe Oceana North America North America Asia Oceana Asia Asia Europe Europe the Middle East Europe Europe Europe Europe Europe Europe Europe Asia Asia Asia Asia Africa Europe Europe Europe Latin America Asia Europe Latin America Europe Latin America Europe Asia the Middle East Latin America Asia the Middle East Latin America Asia

_________________________________________________________________________________________________________





99

Inventories (# of Days) Held (Surgical and Medical Instruments and Apparatus) Countries in Europe

Value

Rank

Percentile

Vatican City Italy Belgium Austria San Marino Jersey Guernsey Switzerland Liechtenstein Luxembourg Netherlands Iceland Monaco Andorra Faroe Islands Spain Sweden Slovenia the United Kingdom Ireland France Denmark Germany Finland Norway Estonia Portugal Belarus Slovakia Russia Lithuania Cyprus Greece Hungary Malta Isle of Man Czech Republic Ukraine Latvia Croatia Gibraltar Georgia Poland Moldova Kazakhstan Bulgaria Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro Albania

482.39 478.52 272.70 235.24 233.00 227.18 227.18 191.09 178.32 165.26 144.50 141.35 128.49 123.92 122.90 118.08 113.30 110.85 103.27 102.87 102.65 101.81 98.22 96.70 94.22 79.31 77.15 75.70 75.52 74.14 73.96 73.85 70.29 66.61 65.15 64.29 62.58 59.90 59.40 59.37 56.95 56.07 54.48 48.98 47.13 47.05 43.17 39.62 38.50 37.14 32.63

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

_________________________________________________________________________________________________________




3.6 3.6.1

100

PRODUCTIVITY IN FINLAND: ASSET-LABOR RATIOS Overview

In this chapter, we consider numerous asset-labor ratios for surgical and medical instruments and apparatus in Finland benchmarked against global averages. Productivity and utilization ratios are presented for companies oprating in Finland and the average global benchmarks for surgical and medical instruments and apparatus. For ratios where there are large deviations between Finland and the benchmarks, graphics are provided (sometimes referred to as a “gap” analysis). Then the distribution of ratios is presented in the form of ranks and percentiles. Certain asset-labor ratios are highlighted across countries in the comparison group. In the case of asset-labor ratios, this report maintains comparability over time and across countries by using a common currency (the US dollar) and relates each measure to a “per employee basis”. Ratios are projected using raw financial statistics and, as ratios, are therefore comparable. Given a country’s human resource ratios, the resulting figures are benchmarked across regional and global averages. We then report the larger asset-labor ratio gaps for surgical and medical instruments and apparatus that Finland has vis-à-vis the worldwide average. Again, a gap need not be a bad sign. Rather, it is simply a substantial difference that might merit further attention or signal a firm’s relative incentive to invest locally. All figures are projections, so due caution is required.




3.6.2

101

Asset to Labor: Outlook

The following tables and graphs are prepared using the methodology described at the beginning of this section. All units are in thousands of US dollars per employee. All figures are current-year projections for surgical and medical instruments and apparatus in Finland based on latest financial results available. Labor-asset Ratios ($k/employee) Finland Europe World Avg. _________________________________________________________________________________________________________


15.06 13.43 8.73 52.04 30.35 10.45 3.67 13.94 9.15 106.60 2.17 0.14 2.47 30.39 58.64 1.45 20.53 33.75 2.90 31.30 7.11 23.98 0.42 30.05 0.64 26.96 170.22

38.98 26.94 3.68 46.09 37.74 10.13 12.79 22.31 15.16 132.29 2.74 1.32 17.92 55.63 81.33 12.94 24.73 52.13 12.73 25.55 5.46 34.41 6.42 32.16 0.97 17.78 228.38

16.54 6.48 7.61 16.52 12.85 3.99 4.70 3.82 5.64 49.53 1.08 0.31 7.22 24.24 37.10 3.49 8.15 22.11 3.78 12.88 1.84 13.90 1.40 12.18 0.96 6.58 89.77

_________________________________________________________________________________________________________





3.6.3

102

Asset to Labor: International Gaps

The following graphics summarize for surgical and medical instruments and apparatus the large labor-asset gaps between firms operating in Finland and the world average. A gap cannot necessarily be interpreted as a positive or negative reflection on performance. Gaps may signal areas of specialization, market focus, or expertise. More contextual information is required to fully interpret these gaps. The gaps highlighted here are simply those that are large.

Gap: Receivables (Net) ($k/employee) 60

52.04

50

46.09 35.52

40 30

16.52

20 10 0 Finland

Europe

World Average

Gap

Gap: Total Inventories ($k/employee) 37.74

40 30

30.35

20

17.5

12.85

10 0 Finland

Europe

World Average

Gap

Gap: Finished Goods ($k/employee) 25

22.31

20 15

13.94 10.12

10 3.82

5 0 Finland


Europe

World Average

Gap



103

Gap: Current Assets - Total ($k/employee) 150

132.29 106.6

100 49.53

50

57.07

0 Finland

Europe

World Average

Gap

Gap: Property Plant and Equipment - Gross ($k/employee) 100 80 60

81.33 58.64 37.1

40

21.54

20 0 Finland

Europe

World Average

Gap

Gap: Buildings ($k/employee) 25

24.73 20.53

20 12.38

15 8.15

10 5 0 Finland

Europe

World Average

Gap

Gap: Machinery & Equipment ($k/employee) 60

52.13

50 40

33.75

30

22.11

20

11.64

10 0 Finland


Europe

World Average

Gap



104

Gap: Accumulated Depreciation - Total ($k/employee) 40

31.3

30

25.55 18.42

20

12.88

10 0 Finland

Europe

World Average

Gap

Gap: Other Assets ($k/employee) 40 30

30.05

32.16 17.87

20

12.18

10 0 Finland

Europe

World Average

Gap

Gap: Intangible Other Assets ($k/employee) 30

26.96

25

20.38

17.78

20 15 10

6.58

5 0 Finland

Europe

World Average

Gap

Gap: Total Assets ($k/employee) 228.38

250 200

170.22

150 89.77

100

80.45

50 0 Finland


Europe

World Average

Gap



3.6.4

105


We now consider the distribution of asset-labor ratios using ranks and percentiles across . What percent of countries have a productivity indicator lower or higher than Finland (what is the indicator's rank or percentile)? The table below answers this question with respect to asset-labor structure. The ranks and percentiles indicate, from highest to lowest, where a value falls within the distribution of all countries considered in the global benchmark (the number of countries in the benchmark per line item may vary, as indicated in the Rank). Again, a high or low figure does not necessarily indicate good or bad performance or productivity. After the summary table below, a few key asset-labor ratios are highlighted in additional tables. Asset Structure ($k/employee)

Finland

Rank of Total

Percentile

15.06 13.43 8.73 52.04 30.35 10.45 3.67 13.94 9.15 106.60 2.17 0.14 2.47 30.39 58.64 1.45 20.53 33.75 2.90 31.30 7.11 23.98 0.42 30.05 0.64 26.96 170.22

39 of 53 21 of 52 16 of 43 10 of 53 17 of 53 15 of 46 22 of 46 8 of 47 10 of 34 23 of 53 13 of 31 18 of 24 25 of 42 18 of 53 18 of 53 17 of 26 16 of 45 16 of 51 28 of 45 14 of 53 8 of 45 13 of 51 39 of 44 18 of 42 19 of 29 8 of 42 25 of 53

26.42 59.62 62.79 81.13 67.92 67.39 52.17 82.98 70.59 56.60 58.06 25.00 40.48 66.04 66.04 34.62 64.44 68.63 37.78 73.58 82.22 74.51 11.36 57.14 34.48 80.95 52.83

_________________________________________________________________________________________________________


_________________________________________________________________________________________________________





106

Cash & Short Term Investments Countries

Value ($K/employee)

Rank

Percentile

112.21 111.28 92.73 90.94 83.46 76.04 67.70 63.06 58.39 58.35 55.27 54.45 52.86 50.30 49.81 49.21 46.50 44.75 38.23 36.60 35.90 33.63 30.53 30.44 29.08 28.25 27.69 27.25 26.70 25.19 23.91 22.47 16.96 15.06 14.94 14.01 13.91 11.88 6.80 4.75 1.89 1.05 0.71 0.44 0.43

1 2 3 4 5 6 7 8 9 10 11 12 13 15 16 17 18 19 20 21 22 23 25 26 28 30 31 32 33 34 35 36 38 39 40 42 43 44 45 46 47 48 49 52 53

98.11 96.23 94.34 92.45 90.57 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 52.83 50.94 47.17 43.40 41.51 39.62 37.74 35.85 33.96 32.08 28.30 26.42 24.53 20.75 18.87 16.98 15.09 13.21 11.32 9.43 7.55 1.89 0.00

Region

_________________________________________________________________________________________________________

Israel Ireland Taiwan Belgium Portugal Greece Czech Republic Argentina Malaysia South Africa South Korea Japan Brazil Chile Russia Sweden USA Hungary Thailand Poland Italy Switzerland Turkey Mexico Luxembourg Peru France New Zealand Hong Kong Netherlands Norway Austria Philippines Finland Canada Singapore the United Kingdom Denmark Germany Australia Spain India Indonesia China Pakistan

the Middle East Europe Asia Europe Europe Europe Europe Latin America Asia Africa Asia Asia Latin America Latin America Europe Europe North America Europe Asia Europe Europe Europe the Middle East Latin America Europe Latin America Europe Oceana Asia Europe Europe Europe Asia Europe North America Asia Europe Europe Europe Oceana Europe Asia Asia Asia the Middle East

_________________________________________________________________________________________________________





107

Cash & Short Term Investments (Surgical and Medical Instruments and Apparatus) Countries in Europe

Value ($K/employee)

Rank

Percentile

111.28 90.94 83.46 79.89 76.04 70.48 69.55 67.70 64.26 64.23 53.29 50.86 50.74 49.81 49.69 49.21 46.98 44.75 40.24 38.26 37.67 36.60 36.19 35.90 33.63 32.91 31.67 31.61 31.38 29.08 29.01 27.69 26.62 25.87 25.60 25.19 24.95 24.66 23.91 22.47 22.26 21.70 21.70 15.06 13.91 13.59 13.10 11.88 6.80 1.89 1.78

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Ireland Belgium Portugal Cyprus Greece Malta Isle of Man Czech Republic Latvia Croatia Estonia Belarus Slovakia Russia Lithuania Sweden Iceland Hungary Ukraine Gibraltar Georgia Poland Vatican City Italy Switzerland Moldova Kazakhstan Bulgaria Liechtenstein Luxembourg Romania France Bosnia & Herzegovina Macedonia Faroe Islands Netherlands Serbia & Montenegro Albania Norway Austria San Marino Jersey Guernsey Finland the United Kingdom Monaco Andorra Denmark Germany Spain Slovenia

_________________________________________________________________________________________________________




108

Receivables (Net) Countries

Value ($K/employee)

Rank

Percentile

151.13 91.45 78.55 77.90 77.41 64.92 60.30 58.43 53.23 52.04 49.32 48.53 47.39 45.24 44.23 44.14 42.73 42.19 40.39 39.57 36.86 36.49 32.34 31.10 30.24 29.14 28.85 26.18 24.71 23.57 23.10 21.41 19.60 17.86 17.81 6.89 6.88 6.23 5.93 4.51 3.33 2.09 2.00 1.28 1.26

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 27 28 29 30 31 32 33 34 35 36 38 39 40 41 42 45 47 48 52 53

98.11 96.23 94.34 92.45 90.57 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 49.06 47.17 45.28 43.40 41.51 39.62 37.74 35.85 33.96 32.08 28.30 26.42 24.53 22.64 20.75 15.09 11.32 9.43 1.89 0.00

Region

_________________________________________________________________________________________________________

Austria Italy Israel Ireland Japan Taiwan France Portugal Greece Finland Netherlands Norway Czech Republic Singapore Belgium Argentina Sweden Switzerland Australia USA Germany Luxembourg South Korea Canada the United Kingdom Russia Denmark Hungary Spain New Zealand Hong Kong Poland India Turkey Mexico Malaysia South Africa Brazil Chile Thailand Peru Indonesia Philippines China Pakistan

Europe Europe the Middle East Europe Asia Asia Europe Europe Europe Europe Europe Europe Europe Asia Europe Latin America Europe Europe Oceana North America Europe Europe Asia North America Europe Europe Europe Europe Europe Oceana Asia Europe Asia the Middle East Latin America Asia Africa Latin America Latin America Asia Latin America Asia Asia Asia the Middle East

_________________________________________________________________________________________________________





109

Receivables (Net) (Surgical and Medical Instruments and Apparatus) Countries in Europe

Value ($K/employee)

Rank

Percentile

151.13 149.70 145.95 145.95 92.19 91.45 77.90 60.30 58.43 55.93 53.23 52.04 49.34 49.32 48.69 48.53 47.39 44.98 44.96 44.23 43.87 42.73 42.30 42.19 39.97 39.37 36.86 36.49 31.18 30.24 29.76 29.69 29.14 29.07 28.85 26.18 24.71 23.55 23.19 22.39 22.15 22.04 21.41 19.25 18.53 18.49 16.97 15.57 15.14 14.60 2.91

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Austria San Marino Jersey Guernsey Vatican City Italy Ireland France Portugal Cyprus Greece Finland Malta Netherlands Isle of Man Norway Czech Republic Latvia Croatia Belgium Monaco Sweden Andorra Switzerland Iceland Liechtenstein Germany Luxembourg Estonia the United Kingdom Belarus Slovakia Russia Lithuania Denmark Hungary Spain Ukraine Slovenia Gibraltar Faroe Islands Georgia Poland Moldova Kazakhstan Bulgaria Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro Albania

_________________________________________________________________________________________________________




110

Total Inventories Countries

Value ($K/employee)

Rank

Percentile

149.95 106.74 85.80 50.60 44.50 43.17 40.10 36.68 36.03 35.10 33.83 32.17 31.65 30.92 30.35 30.35 29.47 28.28 25.90 24.58 24.51 23.21 21.04 18.35 17.84 17.70 16.91 14.75 13.27 12.09 10.76 10.03 8.55 8.38 7.37 5.09 5.09 4.61 4.47 4.39 3.33 2.74 2.70 2.46 1.48

1 2 3 4 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 44 47 48 50 52

98.11 96.23 94.34 92.45 90.57 88.68 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 52.83 50.94 49.06 47.17 45.28 43.40 41.51 39.62 37.74 35.85 33.96 32.08 30.19 28.30 26.42 24.53 22.64 20.75 16.98 11.32 9.43 5.66 1.89

Region

_________________________________________________________________________________________________________

Italy Singapore Austria Belgium South Korea Japan Russia France Hungary Switzerland USA Germany Norway Australia Luxembourg Finland Poland Netherlands Canada Turkey Mexico Sweden the United Kingdom Denmark Israel Ireland Spain Taiwan Portugal Greece Czech Republic Argentina New Zealand Hong Kong India Malaysia South Africa Brazil Indonesia Chile Thailand China Pakistan Peru Philippines

Europe Asia Europe Europe Asia Asia Europe Europe Europe Europe North America Europe Europe Oceana Europe Europe Europe Europe North America the Middle East Latin America Europe Europe Europe the Middle East Europe Europe Asia Europe Europe Europe Latin America Oceana Asia Asia Asia Africa Latin America Asia Latin America Asia Asia the Middle East Latin America Asia

_________________________________________________________________________________________________________





111

Total Inventories (Surgical and Medical Instruments and Apparatus) Countries in Europe

Value ($K/employee)

Rank

Percentile

151.16 149.95 103.51 99.82 85.80 84.99 82.86 82.86 50.60 42.90 40.94 40.85 40.10 40.01 36.68 36.03 35.10 34.18 32.75 32.40 32.17 31.65 30.80 30.35 30.35 30.33 29.47 28.28 26.49 25.49 25.45 23.35 23.21 21.43 21.04 20.83 20.09 18.35 17.70 16.91 15.88 13.27 12.70 12.09 11.21 11.06 10.76 10.22 10.21 8.03 2.15

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Vatican City Italy Monaco Andorra Austria San Marino Jersey Guernsey Belgium Estonia Belarus Slovakia Russia Lithuania France Hungary Switzerland Iceland Liechtenstein Ukraine Germany Norway Gibraltar Luxembourg Finland Georgia Poland Netherlands Moldova Kazakhstan Bulgaria Romania Sweden Bosnia & Herzegovina the United Kingdom Macedonia Serbia & Montenegro Denmark Ireland Spain Slovenia Portugal Cyprus Greece Malta Isle of Man Czech Republic Latvia Croatia Faroe Islands Albania

_________________________________________________________________________________________________________




112

Current Assets - Total Countries

Value ($K/employee)

Rank

Percentile

280.36 263.31 212.07 210.32 192.71 182.65 175.27 167.79 163.44 157.74 147.28 143.72 132.33 129.62 127.95 125.44 124.04 119.18 114.58 108.22 107.67 106.60 104.09 99.09 90.27 90.02 79.42 76.49 73.50 70.62 70.57 69.25 63.94 60.84 60.34 59.43 58.23 46.98 46.24 34.16 28.04 20.52 7.79 4.77 4.69

1 2 3 4 5 6 7 8 9 10 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 29 30 31 32 33 34 35 36 37 38 39 40 41 44 45 47 49 52 53

98.11 96.23 94.34 92.45 90.57 88.68 86.79 84.91 83.02 81.13 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 45.28 43.40 41.51 39.62 37.74 35.85 33.96 32.08 30.19 28.30 26.42 24.53 22.64 16.98 15.09 11.32 7.55 1.89 0.00

Region

_________________________________________________________________________________________________________

Italy Austria Israel Ireland Belgium Japan Taiwan Singapore South Korea Portugal Russia Greece Hungary USA Czech Republic France Sweden Argentina Switzerland Poland Netherlands Finland Norway Luxembourg Turkey Mexico Germany Australia Canada Malaysia South Africa the United Kingdom Brazil Chile Denmark New Zealand Hong Kong Spain Thailand Peru India Philippines Indonesia China Pakistan

Europe Europe the Middle East Europe Europe Asia Asia Asia Asia Europe Europe Europe Europe North America Europe Europe Europe Latin America Europe Europe Europe Europe Europe Europe the Middle East Latin America Europe Oceana North America Asia Africa Europe Latin America Latin America Europe Oceana Asia Europe Asia Latin America Asia Asia Asia Asia the Middle East

_________________________________________________________________________________________________________





113

Current Assets - Total (Surgical and Medical Instruments and Apparatus) Countries in Europe

Value ($K/employee)

Rank

Percentile

282.63 280.36 263.31 260.80 254.28 254.28 210.32 192.71 162.70 157.74 157.56 156.91 150.99 150.38 150.04 147.28 146.94 143.72 133.20 132.33 131.45 130.95 127.95 125.44 124.04 121.44 121.39 119.00 114.58 113.14 111.40 108.22 107.67 106.92 106.60 104.09 99.09 97.30 93.64 93.47 85.77 79.42 78.71 76.49 73.79 69.25 60.34 55.84 46.98 44.10 29.82

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Vatican City Italy Austria San Marino Jersey Guernsey Ireland Belgium Monaco Portugal Estonia Andorra Cyprus Belarus Slovakia Russia Lithuania Greece Malta Hungary Isle of Man Iceland Czech Republic France Sweden Latvia Croatia Ukraine Switzerland Gibraltar Georgia Poland Netherlands Liechtenstein Finland Norway Luxembourg Moldova Kazakhstan Bulgaria Romania Germany Bosnia & Herzegovina Macedonia Serbia & Montenegro the United Kingdom Denmark Faroe Islands Spain Slovenia Albania

_________________________________________________________________________________________________________




114

Property Plant and Equipment - Net Countries

Value ($K/employee)

Rank

Percentile

177.04 159.53 143.34 117.23 97.78 97.51 72.57 58.62 50.70 38.87 38.83 38.76 34.96 33.60 31.98 30.39 29.59 26.57 26.04 24.57 24.14 24.13 22.79 18.43 15.86 14.94 11.40 9.67 9.66 8.97 8.90 8.75 8.47 8.33 7.42 6.67 6.33 6.08 5.41 5.04 4.68 3.87 2.81 2.37 2.33

1 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 43 45 46 49 52 53

98.11 94.34 92.45 90.57 88.68 86.79 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 43.40 41.51 39.62 37.74 35.85 33.96 32.08 30.19 28.30 26.42 24.53 22.64 18.87 15.09 13.21 7.55 1.89 0.00

Region

_________________________________________________________________________________________________________

South Korea Russia Hungary Poland Turkey Mexico Japan Switzerland Luxembourg Belgium Canada Singapore Netherlands USA the United Kingdom Finland Italy New Zealand Hong Kong Denmark Sweden Norway Germany France Australia Austria India Malaysia South Africa Israel Ireland Brazil Spain Chile Taiwan Portugal Thailand Greece Czech Republic Argentina Peru Indonesia Philippines China Pakistan

Asia Europe Europe Europe the Middle East Latin America Asia Europe Europe Europe North America Asia Europe North America Europe Europe Europe Oceana Asia Europe Europe Europe Europe Europe Oceana Europe Asia Asia Africa the Middle East Europe Latin America Europe Latin America Asia Europe Asia Europe Europe Latin America Latin America Asia Asia Asia the Middle East

_________________________________________________________________________________________________________





115

Property Plant and Equipment - Net (Surgical and Medical Instruments and Apparatus) Countries in Europe

Value ($K/employee)

Rank

Percentile

170.67 162.89 162.52 159.53 159.16 143.34 128.90 122.55 120.66 117.23 105.40 101.43 101.24 92.90 85.26 82.86 79.93 58.62 54.70 50.70 38.87 37.59 36.25 34.96 33.95 31.98 30.39 29.83 29.59 24.97 24.57 24.14 24.13 22.79 18.43 14.94 14.80 14.43 14.43 8.90 8.47 7.95 6.67 6.39 6.08 5.64 5.56 5.41 5.14 5.14 4.08

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Estonia Belarus Slovakia Russia Lithuania Hungary Ukraine Gibraltar Georgia Poland Moldova Kazakhstan Bulgaria Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro Switzerland Liechtenstein Luxembourg Belgium Monaco Andorra Netherlands Iceland the United Kingdom Finland Vatican City Italy Faroe Islands Denmark Sweden Norway Germany France Austria San Marino Jersey Guernsey Ireland Spain Slovenia Portugal Cyprus Greece Malta Isle of Man Czech Republic Latvia Croatia Albania

_________________________________________________________________________________________________________




116

Accumulated Depreciation - Total Countries

Value ($K/employee)

Rank

Percentile

80.78 51.15 45.60 44.24 41.09 38.16 36.92 35.28 34.27 34.10 34.03 33.44 31.30 31.13 30.20 25.19 25.12 24.07 23.38 23.37 20.72 19.82 19.06 18.71 13.00 12.89 11.90 10.74 10.25 9.67 8.81 7.84 7.30 7.05 6.91 4.04 3.41 3.41 3.09 2.94 2.48 2.43 2.24 1.65 0.99

1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 40 41 42 43 45 46 47 50 52

98.11 96.23 94.34 92.45 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 56.60 54.72 52.83 50.94 49.06 47.17 45.28 43.40 41.51 39.62 37.74 35.85 33.96 32.08 30.19 28.30 24.53 22.64 20.75 18.87 15.09 13.21 11.32 5.66 1.89

Region

_________________________________________________________________________________________________________

Japan Switzerland South Korea Luxembourg Russia Germany Hungary Netherlands the United Kingdom Italy USA Norway Finland Belgium Poland Turkey Mexico Denmark Spain France Sweden Singapore Austria Canada Israel Ireland Australia Taiwan India Portugal Greece Czech Republic Argentina New Zealand Hong Kong Indonesia Malaysia South Africa Brazil Chile China Pakistan Thailand Peru Philippines

Asia Europe Asia Europe Europe Europe Europe Europe Europe Europe North America Europe Europe Europe Europe the Middle East Latin America Europe Europe Europe Europe Asia Europe North America the Middle East Europe Oceana Asia Asia Europe Europe Europe Latin America Oceana Asia Asia Asia Africa Latin America Latin America Asia the Middle East Asia Latin America Asia

_________________________________________________________________________________________________________





117

Accumulated Depreciation - Total (Surgical and Medical Instruments and Apparatus) Countries in Europe

Value ($K/employee)

Rank

Percentile

51.15 47.73 44.24 43.96 41.96 41.86 41.09 41.00 38.16 36.92 35.28 34.38 34.37 34.27 34.10 33.44 33.20 31.57 31.30 31.13 31.08 30.20 27.15 26.13 26.08 24.07 23.93 23.38 23.37 21.96 21.95 21.34 20.72 20.59 19.22 19.06 18.88 18.54 18.41 18.41 12.89 9.67 9.25 8.81 8.16 8.06 7.84 7.44 7.44 6.63 1.44

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Switzerland Liechtenstein Luxembourg Estonia Belarus Slovakia Russia Lithuania Germany Hungary Netherlands Vatican City Iceland the United Kingdom Italy Norway Ukraine Gibraltar Finland Belgium Georgia Poland Moldova Kazakhstan Bulgaria Denmark Romania Spain France Bosnia & Herzegovina Slovenia Macedonia Sweden Serbia & Montenegro Monaco Austria San Marino Andorra Guernsey Jersey Ireland Portugal Cyprus Greece Malta Isle of Man Czech Republic Latvia Croatia Faroe Islands Albania

_________________________________________________________________________________________________________




118

Intangible Other Assets Countries

Value ($K/employee)

Rank

Percentile

49.74 46.68 39.69 37.10 32.09 29.59 29.34 26.96 25.45 24.91 24.45 24.01 22.71 22.01 21.63 20.05 19.44 19.22 17.85 16.63 15.90 13.26 13.22 10.76 10.22 10.16 9.71 8.31 5.34 4.64 3.54 3.47 2.79 1.91 1.82 0.43 0.26 0.26

1 2 3 4 5 6 7 8 9 10 11 12 13 15 16 17 18 19 20 21 22 23 24 26 27 28 29 30 31 32 33 34 35 36 37 38 41 42

97.62 95.24 92.86 90.48 88.10 85.71 83.33 80.95 78.57 76.19 73.81 71.43 69.05 64.29 61.90 59.52 57.14 54.76 52.38 50.00 47.62 45.24 42.86 38.10 35.71 33.33 30.95 28.57 26.19 23.81 21.43 19.05 16.67 14.29 11.90 9.52 2.38 0.00

Region

_________________________________________________________________________________________________________

Netherlands USA France Switzerland Luxembourg Israel Ireland Finland Sweden the United Kingdom Taiwan South Korea Canada Portugal Russia Greece Hungary Italy Czech Republic Argentina Poland Turkey Mexico Belgium Denmark Australia Germany Austria Spain Norway New Zealand Hong Kong Japan India Singapore Indonesia China Pakistan

Europe North America Europe Europe Europe the Middle East Europe Europe Europe Europe Asia Asia North America Europe Europe Europe Europe Europe Europe Latin America Europe the Middle East Latin America Europe Europe Oceana Europe Europe Europe Europe Oceana Asia Asia Asia Asia Asia Asia the Middle East

_________________________________________________________________________________________________________





119

Intangible Other Assets (Surgical and Medical Instruments and Apparatus) Countries in Europe

Value ($K/employee)

Rank

Percentile

49.74 47.16 39.69 37.10 34.62 32.09 29.34 26.96 25.45 24.91 23.14 22.09 22.04 22.01 21.63 21.58 21.07 20.05 19.44 19.37 19.22 18.58 18.34 17.85 17.48 16.94 16.94 16.62 16.36 15.90 14.29 13.75 13.73 12.60 11.56 11.24 10.84 10.76 10.22 9.71 8.31 8.23 8.02 8.02 5.34 5.02 4.64 3.33 1.77 1.70

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

98.00 96.00 94.00 92.00 90.00 88.00 86.00 84.00 82.00 80.00 78.00 76.00 74.00 72.00 70.00 68.00 66.00 64.00 62.00 60.00 58.00 56.00 54.00 52.00 50.00 48.00 46.00 44.00 42.00 40.00 38.00 36.00 34.00 32.00 30.00 28.00 26.00 24.00 22.00 20.00 18.00 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00

_________________________________________________________________________________________________________

Netherlands Iceland France Switzerland Liechtenstein Luxembourg Ireland Finland Sweden the United Kingdom Estonia Belarus Slovakia Portugal Russia Lithuania Cyprus Greece Hungary Vatican City Italy Malta Isle of Man Czech Republic Ukraine Latvia Croatia Gibraltar Georgia Poland Moldova Kazakhstan Bulgaria Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro Belgium Denmark Germany Austria San Marino Guernsey Jersey Spain Slovenia Norway Faroe Islands Monaco Andorra

_________________________________________________________________________________________________________





3.7 3.7.1

120

PRODUCTIVITY IN FINLAND: LIABILITY-LABOR RATIOS Overview

In this chapter we consider the liability-labor ratios of companies operating in Finland benchmarked against global averages for surgical and medical instruments and apparatus. For ratios where there are large deviations between Finland and the benchmarks, graphics are provided (sometimes referred to as a “gap” analysis). Then the distribution of productivity ratios is presented in the form of ranks and percentiles. Certain key liability-labor ratios are highlighted for surgical and medical instruments and apparatus across countries in the comparison group. Definitions of liability statement terms are given in Chapter 3. In the case of liability-labor ratios, this report maintains comparability over time and across countries by using a common currency (the US dollar) and relates each measure to a “per employee basis”. Ratios are projected using raw financial statistics and, as ratios, are therefore comparable. Given a country’s human resource ratios, the resulting figures are benchmarked across regional and global averages. I then report the larger liability-labor ratio gaps for surgical and medical instruments and apparatus that Finland has vis-à-vis the worldwide average. Again, a gap need not be a bad sign. Rather, it is simply a substantial difference that might merit further attention or signal a firm’s relative incentive to invest locally. All figures are projections, so due caution is required.




3.7.2

121

Liability to Labor: Outlook

The following tables and graphs are prepared using the methodology described at the beginning of this section. All units are in thousands of US dollars per employee. All figures are current-year projections for surgical and medical instruments and apparatus in Finland based on latest financial results available. Labor-liability Ratios ($k/employee) Finland Europe World Avg. _________________________________________________________________________________________________________


9.27 19.32 8.74 0.88 24.80 56.43 12.83 12.83 1.40 1.40 1.84 73.42 0.10 96.70 12.60 9.35 0.95 0.09 76.68 0.40 170.22

18.61 41.75 5.22 3.10 25.72 88.52 15.50 14.61 6.47 -0.73 3.25 110.52 0.77 117.01 31.36 59.84 4.88 8.20 30.03 9.30 228.38

7.59 15.22 0.75 0.62 8.88 33.02 11.08 10.74 2.22 0.25 1.33 46.94 0.26 41.97 14.40 15.14 0.72 0.99 13.14 3.56 89.77

_________________________________________________________________________________________________________





3.7.3

122

Liability and Equity to Labor: International Gaps

The following graphics summarize for surgical and medical instruments and apparatus the large labor-liability gaps between firms operating in Finland and the world average. A gap cannot necessarily be interpreted as a positive or negative reflection on performance. Gaps may signal areas of specialization, market focus, or expertise. More contextual information is required to fully interpret these gaps. The gaps highlighted here are simply those that are large.

Gap: Short Term Debt & Current Portion of Long Term Debt ($k/employee) 50

41.75

40 30 20

19.32

15.22

10

4.1

0 Finland

Europe

World Average

Gap

Gap: Accrued Payroll ($k/employee) 10

8.74

7.99

8 5.22

6 4 2

0.75

0 Finland

Europe

World Average

Gap

Gap: Other Current Liabilities ($k/employee) 30 25

24.8

25.72

20

15.92

15

8.88

10 5 0 Finland


Europe

World Average

Gap



123

Gap: Current Liabilities - Total ($k/employee) 100

88.52

80 60

56.43 33.02

40

23.41

20 0 Finland

Europe

World Average

Gap

Gap: Long Term Debt Excluding Capitalized Leases ($k/employee) 15

12.83

14.61 10.74

10 5

2.09

0 Finland

Europe

World Average

Gap

Gap: Total Liabilities ($k/employee) 110.52

120 100 80

73.42

60

46.94

40

26.48

20 0 Finland

Europe

World Average

Gap

Gap: Common Equity ($k/employee) 117.01

120

96.7

100 80 60

41.97

54.73

40 20 0 Finland


Europe

World Average

Gap



124

Gap: Capital Surplus ($k/employee) 59.84

60 40 20

15.14

9.35

0

-5.79

-20 Finland

Europe

World Average

Gap

Gap: Retained Earnings ($k/employee) 80

76.68 63.54

60 40

30.03 13.14

20 0 Finland

Europe

World Average

Gap

Gap: Treasury Stock ($k/employee) 9.3

10

3.56

5 0.4 0

-3.16 -5 Finland

Europe

World Average

Gap

Gap: Total Liabilities & Shareholders Equity ($k/employee) 228.38

250 200

170.22

150 89.77

100

80.45

50 0 Finland


Europe

World Average

Gap



3.7.4

125


We now consider the distribution of liability-labor ratios using ranks and percentiles across . What percent of countries have a value lower or higher than Finland (what is the indicator's rank or percentile)? The table below answers this question with respect to liability-labor ratios. The ranks and percentiles indicate, from highest to lowest, where a value falls within the distribution of all countries considered in the global benchmark (the number of countries in the benchmark per line item may vary, as indicated in the Rank). Again, a high or low figure does not necessarily indicate good or bad performance or productivity. After the summary table below, a few key liabilitylabor ratios are highlighted in additional tables. Liability Structure ($k/employee)

Finland

Rank of Total

Percentile

9.27 19.32 8.74 0.88 24.80 56.43 12.83 12.83 1.40 1.40 1.84 73.42 0.10 96.70 12.60 9.35 0.95 0.09 76.68 0.40 170.22

33 of 53 14 of 42 1 of 21 23 of 43 12 of 53 17 of 53 23 of 35 23 of 35 26 of 35 7 of 40 15 of 29 16 of 53 27 of 27 25 of 53 27 of 52 30 of 49 24 of 34 19 of 22 3 of 52 15 of 19 25 of 53

37.74 66.67 95.24 46.51 77.36 67.92 34.29 34.29 25.71 82.50 48.28 69.81 0.00 52.83 48.08 38.78 29.41 13.64 94.23 21.05 52.83

_________________________________________________________________________________________________________


_________________________________________________________________________________________________________





126

Accounts Payable Countries

Value ($K/employee)

Rank

Percentile

41.37 37.97 34.38 32.56 32.29 26.91 26.54 25.74 25.68 24.22 23.14 22.06 21.69 20.79 19.64 18.30 17.00 14.18 14.14 13.45 13.17 12.81 12.17 12.01 11.27 11.27 11.19 10.51 10.23 9.68 9.27 6.51 6.48 6.44 6.35 3.05 2.58 2.58 2.34 2.23 1.87 1.84 1.69 1.25 0.75

1 2 3 4 5 6 7 8 9 10 12 13 14 15 16 17 18 19 20 21 22 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 40 41 42 43 45 46 47 50 52

98.11 96.23 94.34 92.45 90.57 88.68 86.79 84.91 83.02 81.13 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 54.72 52.83 50.94 49.06 47.17 45.28 43.40 41.51 39.62 37.74 35.85 33.96 32.08 30.19 28.30 24.53 22.64 20.75 18.87 15.09 13.21 11.32 5.66 1.89

Region

_________________________________________________________________________________________________________

Italy Singapore Japan Israel Ireland Taiwan France Austria South Korea Portugal Russia Greece Canada Hungary Czech Republic Argentina Poland Turkey Mexico Norway Netherlands Spain the United Kingdom Belgium USA Sweden Switzerland Australia Germany Luxembourg Finland India New Zealand Denmark Hong Kong Indonesia Malaysia South Africa Brazil Chile China Pakistan Thailand Peru Philippines

Europe Asia Asia the Middle East Europe Asia Europe Europe Asia Europe Europe Europe North America Europe Europe Latin America Europe the Middle East Latin America Europe Europe Europe Europe Europe North America Europe Europe Oceana Europe Europe Europe Asia Oceana Europe Asia Asia Asia Africa Latin America Latin America Asia the Middle East Asia Latin America Asia

_________________________________________________________________________________________________________





127

Accounts Payable (Surgical and Medical Instruments and Apparatus) Countries in Europe

Value ($K/employee)

Rank

Percentile

41.71 41.37 36.82 35.51 32.29 26.54 25.74 25.50 24.86 24.86 24.75 24.22 23.63 23.57 23.18 23.14 23.08 22.06 20.79 20.45 20.18 19.64 18.69 18.64 18.64 17.77 17.50 17.00 15.29 14.71 14.68 13.47 13.45 13.17 12.81 12.37 12.17 12.02 12.02 12.01 11.59 11.39 11.27 11.19 10.44 10.23 9.68 9.27 6.44 6.09 1.09

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Vatican City Italy Monaco Andorra Ireland France Austria San Marino Jersey Guernsey Estonia Portugal Belarus Slovakia Cyprus Russia Lithuania Greece Hungary Malta Isle of Man Czech Republic Ukraine Latvia Croatia Gibraltar Georgia Poland Moldova Kazakhstan Bulgaria Romania Norway Netherlands Spain Bosnia & Herzegovina the United Kingdom Slovenia Macedonia Belgium Serbia & Montenegro Iceland Sweden Switzerland Liechtenstein Germany Luxembourg Finland Denmark Faroe Islands Albania

_________________________________________________________________________________________________________




128

Current Liabilities - Total Countries

Value ($K/employee)

Rank

Percentile

207.53 193.27 187.01 168.03 137.42 114.62 114.31 103.28 94.42 83.40 69.44 62.87 62.35 59.81 56.43 51.96 51.72 48.95 46.77 44.70 44.61 42.61 42.17 42.00 41.62 40.98 37.93 36.29 35.46 35.33 34.83 27.92 21.00 20.57 15.23 13.95 13.94 12.63 12.02 9.13 6.75 6.63 4.06 4.05 4.00

1 2 4 5 6 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 45 46 50 51 52

98.11 96.23 92.45 90.57 88.68 86.79 84.91 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 43.40 41.51 39.62 37.74 35.85 33.96 32.08 30.19 28.30 26.42 24.53 22.64 20.75 15.09 13.21 5.66 3.77 1.89

Region

_________________________________________________________________________________________________________

South Korea Italy Russia Hungary Poland Turkey Mexico Austria Japan Singapore France Israel Ireland Switzerland Finland Taiwan Luxembourg Norway Portugal Australia Belgium Greece Netherlands the United Kingdom Sweden USA Czech Republic Spain Denmark Argentina Germany Canada New Zealand Hong Kong India Malaysia South Africa Brazil Chile Thailand Peru Indonesia China Philippines Pakistan

Asia Europe Europe Europe Europe the Middle East Latin America Europe Asia Asia Europe the Middle East Europe Europe Europe Asia Europe Europe Europe Oceana Europe Europe Europe Europe Europe North America Europe Europe Europe Latin America Europe North America Oceana Asia Asia Asia Africa Latin America Latin America Asia Latin America Asia Asia Asia the Middle East

_________________________________________________________________________________________________________





129

Current Liabilities - Total (Surgical and Medical Instruments and Apparatus) Countries in Europe

Value ($K/employee)

Rank

Percentile

200.07 194.83 193.27 190.95 190.51 187.01 186.58 168.03 151.10 143.66 141.45 137.42 123.55 118.90 118.68 108.90 103.28 102.30 99.94 99.74 99.74 97.13 93.69 80.87 77.99 69.44 62.35 59.81 56.43 55.81 51.72 48.95 46.77 44.77 44.61 42.61 42.17 42.00 41.62 41.40 39.49 38.97 37.93 36.29 36.00 35.99 35.46 34.83 34.07 19.73 5.89

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Estonia Vatican City Italy Belarus Slovakia Russia Lithuania Hungary Ukraine Gibraltar Georgia Poland Moldova Kazakhstan Bulgaria Romania Austria San Marino Bosnia & Herzegovina Guernsey Jersey Macedonia Serbia & Montenegro Monaco Andorra France Ireland Switzerland Finland Liechtenstein Luxembourg Norway Portugal Cyprus Belgium Greece Netherlands the United Kingdom Sweden Iceland Malta Isle of Man Czech Republic Spain Latvia Croatia Denmark Germany Slovenia Faroe Islands Albania

_________________________________________________________________________________________________________




130

Long Term Debt Countries

Value ($K/employee)

Rank

Percentile

38.54 34.73 31.21 25.52 25.10 23.39 22.90 22.88 22.08 21.52 21.29 21.23 21.22 20.23 20.04 19.22 18.21 14.44 13.04 12.90 12.83 7.86 7.36 5.93 5.81 5.00 4.74 4.68 3.84 2.90 2.85

1 3 4 5 6 7 8 9 10 11 12 13 14 15 16 18 19 20 21 22 23 24 25 26 27 28 29 30 32 34 35

97.14 91.43 88.57 85.71 82.86 80.00 77.14 74.29 71.43 68.57 65.71 62.86 60.00 57.14 54.29 48.57 45.71 42.86 40.00 37.14 34.29 31.43 28.57 25.71 22.86 20.00 17.14 14.29 8.57 2.86 0.00

Region

_________________________________________________________________________________________________________

South Korea Russia Hungary Poland Italy Switzerland Canada Japan Belgium USA Turkey Mexico Sweden Luxembourg Netherlands France India the United Kingdom Norway Denmark Finland Germany Austria New Zealand Hong Kong Singapore Indonesia Spain Australia China Pakistan

Asia Europe Europe Europe Europe Europe North America Asia Europe North America the Middle East Latin America Europe Europe Europe Europe Asia Europe Europe Europe Europe Europe Europe Oceana Asia Asia Asia Europe Oceana Asia the Middle East

_________________________________________________________________________________________________________





131

Long Term Debt (Surgical and Medical Instruments and Apparatus) Countries in Europe

Value ($K/employee)

Rank

Percentile

37.16 35.46 35.38 34.73 34.65 31.21 28.06 26.68 26.27 25.52 25.31 25.10 23.39 22.95 22.08 22.08 22.04 21.83 21.74 21.22 20.23 20.23 20.04 19.22 18.56 18.04 17.40 14.44 13.04 12.90 12.83 7.86 7.36 7.29 7.10 7.10 5.57 4.85 4.68 4.68 4.39

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41

97.56 95.12 92.68 90.24 87.80 85.37 82.93 80.49 78.05 75.61 73.17 70.73 68.29 65.85 63.41 60.98 58.54 56.10 53.66 51.22 48.78 46.34 43.90 41.46 39.02 36.59 34.15 31.71 29.27 26.83 24.39 21.95 19.51 17.07 14.63 12.20 9.76 7.32 4.88 2.44 0.00

_________________________________________________________________________________________________________

Estonia Belarus Slovakia Russia Lithuania Hungary Ukraine Gibraltar Georgia Poland Vatican City Italy Switzerland Moldova Belgium Kazakhstan Bulgaria Liechtenstein Iceland Sweden Luxembourg Romania Netherlands France Bosnia & Herzegovina Macedonia Serbia & Montenegro the United Kingdom Norway Denmark Finland Germany Austria San Marino Jersey Guernsey Faroe Islands Monaco Andorra Spain Slovenia

_________________________________________________________________________________________________________





132

Total Liabilities Countries

Value ($K/employee)

Rank

Percentile

258.87 241.13 233.28 209.59 171.41 142.97 142.58 128.74 119.58 94.09 93.11 88.52 80.52 73.42 72.66 70.49 69.04 68.87 68.84 63.43 62.91 61.81 58.03 56.79 52.42 50.11 47.35 47.18 42.99 41.80 38.27 36.08 35.65 26.86 26.32 13.95 13.94 12.63 12.02 10.45 9.13 6.75 6.41 6.30 4.05

1 2 4 5 6 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 44 48 49 50 52

98.11 96.23 92.45 90.57 88.68 86.79 84.91 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 43.40 41.51 39.62 37.74 35.85 33.96 32.08 30.19 28.30 26.42 24.53 22.64 20.75 16.98 9.43 7.55 5.66 1.89

Region

_________________________________________________________________________________________________________

South Korea Italy Russia Hungary Poland Turkey Mexico Japan Austria France Switzerland Singapore Luxembourg Finland Norway Sweden Germany Netherlands USA Israel Ireland the United Kingdom Belgium Canada Taiwan Denmark Australia Portugal Greece Spain Czech Republic India Argentina New Zealand Hong Kong Malaysia South Africa Brazil Chile Indonesia Thailand Peru China Pakistan Philippines

Asia Europe Europe Europe Europe the Middle East Latin America Asia Europe Europe Europe Asia Europe Europe Europe Europe Europe Europe North America the Middle East Europe Europe Europe North America Asia Europe Oceana Europe Europe Europe Europe Asia Latin America Oceana Asia Asia Africa Latin America Latin America Asia Asia Latin America Asia the Middle East Asia

_________________________________________________________________________________________________________





133

Total Liabilities (Surgical and Medical Instruments and Apparatus) Countries in Europe

Value ($K/employee)

Rank

Percentile

249.56 243.08 241.13 238.19 237.64 233.28 232.73 209.59 188.48 179.21 176.44 171.41 154.12 148.31 148.04 135.85 124.66 121.16 119.58 118.44 116.87 115.48 115.48 94.09 93.11 86.89 85.84 82.78 80.52 73.42 72.66 70.49 69.54 69.04 68.87 62.91 61.81 58.03 50.11 47.18 45.16 42.99 41.80 39.84 39.32 39.25 38.27 36.33 36.31 25.24 5.89

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Estonia Vatican City Italy Belarus Slovakia Russia Lithuania Hungary Ukraine Gibraltar Georgia Poland Moldova Kazakhstan Bulgaria Romania Bosnia & Herzegovina Macedonia Austria San Marino Serbia & Montenegro Guernsey Jersey France Switzerland Liechtenstein Monaco Andorra Luxembourg Finland Norway Sweden Iceland Germany Netherlands Ireland the United Kingdom Belgium Denmark Portugal Cyprus Greece Spain Malta Isle of Man Slovenia Czech Republic Latvia Croatia Faroe Islands Albania

_________________________________________________________________________________________________________




134

Common Equity Countries

Value ($K/employee)

Rank

Percentile

189.25 187.68 187.10 184.93 173.91 166.65 159.07 156.40 149.73 143.62 140.76 128.25 127.97 126.06 125.98 122.45 114.17 109.10 109.02 106.35 104.53 102.14 101.86 96.70 93.85 88.57 73.67 72.87 72.82 69.65 68.25 65.97 64.40 62.77 54.61 47.71 46.37 45.73 35.25 24.78 21.17 4.44 2.98 1.83 1.80

1 2 3 4 5 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 27 28 29 30 31 32 33 34 35 36 37 38 39 40 43 45 46 48 49 52 53

98.11 96.23 94.34 92.45 90.57 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 49.06 47.17 45.28 43.40 41.51 39.62 37.74 35.85 33.96 32.08 30.19 28.30 26.42 24.53 18.87 15.09 13.21 9.43 7.55 1.89 0.00

Region

_________________________________________________________________________________________________________

Israel Ireland Belgium South Korea Austria Russia Japan Taiwan Hungary USA Portugal Greece Netherlands Switzerland Singapore Poland Czech Republic Sweden Luxembourg Argentina Italy Turkey Mexico Finland France Canada the United Kingdom Malaysia South Africa New Zealand Hong Kong Brazil Norway Chile Australia Thailand Denmark Germany Peru Spain Philippines India Indonesia China Pakistan

the Middle East Europe Europe Asia Europe Europe Asia Asia Europe North America Europe Europe Europe Europe Asia Europe Europe Europe Europe Latin America Europe the Middle East Latin America Europe Europe North America Europe Asia Africa Oceana Asia Latin America Europe Latin America Oceana Asia Europe Europe Latin America Europe Asia Asia Asia Asia the Middle East

_________________________________________________________________________________________________________





135

Common Equity (Surgical and Medical Instruments and Apparatus) Countries in Europe

Value ($K/employee)

Rank

Percentile

187.68 187.10 178.28 173.91 172.26 170.16 169.77 167.95 167.95 166.65 166.26 149.73 145.09 140.76 134.74 134.64 128.25 128.02 127.97 126.06 126.04 122.45 122.16 118.87 117.81 117.64 117.30 114.17 110.10 109.10 109.02 108.37 108.32 105.95 105.76 105.38 104.53 97.04 96.70 93.85 89.06 86.55 83.49 73.67 65.44 64.40 46.37 45.73 30.77 24.78 23.26

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Ireland Belgium Estonia Austria San Marino Belarus Slovakia Jersey Guernsey Russia Lithuania Hungary Iceland Portugal Cyprus Ukraine Greece Gibraltar Netherlands Switzerland Georgia Poland Monaco Malta Andorra Liechtenstein Isle of Man Czech Republic Moldova Sweden Luxembourg Latvia Croatia Kazakhstan Bulgaria Vatican City Italy Romania Finland France Bosnia & Herzegovina Macedonia Serbia & Montenegro the United Kingdom Faroe Islands Norway Denmark Germany Albania Spain Slovenia

_________________________________________________________________________________________________________




136

Retained Earnings Countries

Value ($K/employee)

Rank

Percentile

80.76 78.14 76.68 75.26 65.36 65.09 58.95 47.97 43.00 40.73 37.27 35.66 34.22 34.20 33.83 33.59 30.99 30.18 29.48 28.76 28.49 27.91 27.83 25.97 24.68 23.89 22.41 20.58 20.53 17.32 17.18 16.56 14.31 12.88 12.28 12.18 11.74 10.45 9.94 9.73 6.53 0.75 0.46 0.45

1 2 3 4 5 6 7 8 9 10 11 12 13 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 34 35 36 37 38 39 41 42 43 44 45 47 48 51 52

98.08 96.15 94.23 92.31 90.38 88.46 86.54 84.62 82.69 80.77 78.85 76.92 75.00 71.15 69.23 67.31 65.38 63.46 61.54 59.62 57.69 55.77 53.85 51.92 50.00 48.08 46.15 44.23 42.31 34.62 32.69 30.77 28.85 26.92 25.00 21.15 19.23 17.31 15.38 13.46 9.62 7.69 1.92 0.00

Region

_________________________________________________________________________________________________________

Japan Belgium Finland Switzerland USA Luxembourg Netherlands Norway Singapore Canada South Korea Austria Malaysia South Africa Italy Russia Brazil Hungary Chile Australia New Zealand Hong Kong the United Kingdom Sweden Poland Denmark Thailand Turkey Mexico Israel Ireland Peru Taiwan Portugal Germany France Greece Czech Republic Philippines Argentina Spain Indonesia China Pakistan

Asia Europe Europe Europe North America Europe Europe Europe Asia North America Asia Europe Asia Africa Europe Europe Latin America Europe Latin America Oceana Oceana Asia Europe Europe Europe Europe Asia the Middle East Latin America the Middle East Europe Latin America Asia Europe Europe Europe Europe Europe Asia Latin America Europe Asia Asia the Middle East

_________________________________________________________________________________________________________





137

Retained Earnings (Surgical and Medical Instruments and Apparatus) Countries in Europe

Value ($K/employee)

Rank

Percentile

78.14 76.68 75.26 70.23 66.03 65.09 58.95 47.97 41.70 40.21 35.93 35.66 35.32 34.44 34.44 34.29 34.21 34.10 33.83 33.59 33.51 30.18 27.83 27.14 26.77 25.97 25.80 25.40 24.68 23.89 22.19 21.35 21.31 19.56 17.95 17.44 17.18 16.83 14.45 12.88 12.33 12.28 12.18 11.74 10.88 10.74 10.45 9.92 9.91 6.53 6.13

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Belgium Finland Switzerland Liechtenstein Iceland Luxembourg Netherlands Norway Monaco Andorra Estonia Austria San Marino Jersey Guernsey Belarus Slovakia Vatican City Italy Russia Lithuania Hungary the United Kingdom Ukraine Faroe Islands Sweden Gibraltar Georgia Poland Denmark Moldova Kazakhstan Bulgaria Romania Bosnia & Herzegovina Macedonia Ireland Serbia & Montenegro Albania Portugal Cyprus Germany France Greece Malta Isle of Man Czech Republic Latvia Croatia Spain Slovenia

_________________________________________________________________________________________________________




3.8 3.8.1

138

PRODUCTIVITY IN FINLAND: INCOME-LABOR RATIOS Overview

In this chapter we consider the income-labor ratios for surgical and medical instruments and apparatus in Finland benchmarked against global averages. For ratios where there are large deviations between the average firm operating in Finland and the benchmarks, graphics are provided (sometimes referred to as a “gap” analysis). Then the distribution of ratios is presented in the form of ranks and percentiles. Certain key income-labor ratios are highlighted across countries in the comparison group. In the case of income-labor ratios, this report maintains comparability over time and across countries by using a common currency (the US dollar) and relates each measure to a “per employee basis”. Ratios are projected using raw financial statistics and, as ratios, are therefore comparable. Given a country’s human resource ratios, the resulting figures are benchmarked across regional and global averages. We then report the larger income-labor ratio gaps for surgical and medical instruments and apparatus that Finland has vis-à-vis the worldwide average. Again, a gap need not be a bad sign. Rather, it is simply a substantial difference that might merit further attention or signal a firm’s relative incentive to invest locally. All figures are projections, so due caution is required.




3.8.2

139

Income to Labor: Outlook

The following tables and graphs are prepared using the methodology described at the beginning of this section. All units are in thousands of US dollars per employee. All figures are current-year projections for surgical and medical instruments and apparatus in Finland based on latest financial results available. Labor-income Ratios ($k/employee) Finland Europe World Avg. _________________________________________________________________________________________________________


194.60 85.32 8.88 98.16 77.08 173.70 0.85 15.47 0.35 0.67 1.13 -0.02 1.37 17.36 2.20 15.17 5.68 4.50 2.04 0.94 0.42 -0.05 9.54 4.50 14.04 9.54

172.61 109.42 7.11 55.48 44.55 173.21 2.67 14.05 1.91 1.81 1.38 -0.05 0.38 14.90 3.96 11.08 2.47 3.87 1.19 -0.17 0.05 0.12 8.52 0.07 8.60 8.52

71.85 48.69 2.72 20.41 11.85 65.04 1.43 7.77 0.66 0.63 0.53 -0.01 -0.15 7.92 2.05 5.87 1.30 1.05 0.12 -0.01 0.00 0.03 4.57 -0.01 4.56 4.52

_________________________________________________________________________________________________________





3.8.3

140

Income to Labor: Gaps

The following graphics summarize for surgical and medical instruments and apparatus the large labor-income gaps between firms operating in Finland and the world average. A gap cannot necessarily be interpreted as a positive or negative reflection on performance. Gaps may signal areas of specialization, market focus, or expertise. More contextual information is required to fully interpret these gaps. The gaps highlighted here are simply those that are large.

Gap: Net Sales or Revenues ($k/employee) 200

194.6

172.61

150

122.75

100

71.85

50 0 Finland

Europe

World Average

Gap

Gap: Cost of Goods Sold (Excluding Depreciation) ($k/employee) 109.42

120 100

85.32

80 48.69

60 40

36.63

20 0 Finland

Europe

World Average

Gap

Gap: Depreciation, Depletion & Amortization ($k/employee) 10

8.88 7.11

8

6.16

6 4

2.72

2 0 Finland


Europe

World Average

Gap



141

Gap: Gross Income ($k/employee) 100

98.16 77.75

80 55.48

60 40

20.41

20 0 Finland

Europe

World Average

Gap

Gap: Selling, General & Administrative Expenses ($k/employee) 80

77.08 65.23

60

44.55

40 11.85

20 0 Finland

Europe

World Average

Gap

Gap: Other Operating Expenses ($k/employee) 200

173.7

173.21

150

108.66

100

65.04

50 0 Finland

Europe

World Average

Gap

Gap: Operating Income ($k/employee) 20 15.47 15

14.05 7.77

10

7.7

5 0 Finland


Europe

World Average

Gap



142

Gap: Earnings Before Interest and Taxes (EBIT) ($k/employee) 20

17.36 14.9

15

9.44

7.92

10 5 0 Finland

Europe

World Average

Gap

Gap: Pretax Income ($k/employee) 20 15

15.17 11.08

10

9.3 5.87

5 0 Finland

Europe

World Average

Gap

Gap: Net Income Before Preferred Dividends ($k/employee) 15

14.04 9.48

8.6

10

4.56

5 0 Finland

Europe

World Average

Gap

Gap: Net Income Available to Common ($k/employee) 10

9.54

8.52

8 6

4.52

5.02

4 2 0 Finland


Europe

World Average

Gap



3.8.4

143


We now consider the distribution of income-labor ratios using ranks and percentiles across . What percent of countries have a value lower or higher than Finland (what is the ratio's rank or percentile)? The table below answers this question with respect to income-labor ratios. The ranks and percentiles indicate, from highest to lowest, where a value falls within the distribution of all countries considered in the global benchmark (the number of countries in the benchmark per line item may vary, as indicated in the Rank). Again, a high or low figure does not necessarily indicate good or bad performance or productivity. After the summary table below, a few key income-labor ratios are highlighted in additional tables. Income Structure ($k/employee)

Finland

Rank of Total

Percentile

194.60 85.32 8.88 98.16 77.08 173.70 0.85 15.47 0.35 0.67 1.13 -0.02 1.37 17.36 2.20 15.17 5.68 4.50 2.04 0.94 0.42 -0.05 9.54 4.50 14.04 9.54

10 of 53 19 of 53 9 of 53 2 of 53 5 of 40 10 of 52 24 of 35 20 of 53 16 of 24 21 of 35 19 of 52 10 of 15 14 of 52 22 of 53 20 of 53 18 of 53 9 of 53 9 of 43 5 of 12 5 of 32 3 of 9 32 of 34 27 of 53 1 of 9 11 of 53 27 of 53

81.13 64.15 83.02 96.23 87.50 80.77 31.43 62.26 33.33 40.00 63.46 33.33 73.08 58.49 62.26 66.04 83.02 79.07 58.33 84.38 66.67 5.88 49.06 88.89 79.25 49.06

_________________________________________________________________________________________________________


_________________________________________________________________________________________________________





144

Cost of Goods Sold (Excluding Depreciation) Countries

Value ($K/employee)

Rank

Percentile

240.76 232.10 209.15 187.91 154.54 153.68 133.93 130.52 128.19 127.84 117.03 111.71 105.46 104.13 88.92 88.27 85.32 84.86 80.80 79.75 79.35 78.80 74.84 73.38 62.22 61.70 53.74 51.42 46.28 42.16 37.54 34.97 30.76 24.56 24.44 24.43 24.06 23.63 22.13 21.06 16.00 14.49 14.25 11.83 7.10

1 2 4 5 6 7 8 9 10 11 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 42 43 45 46 47 50 52

98.11 96.23 92.45 90.57 88.68 86.79 84.91 83.02 81.13 79.25 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 43.40 41.51 39.62 37.74 35.85 33.96 32.08 30.19 28.30 26.42 24.53 20.75 18.87 15.09 13.21 11.32 5.66 1.89

Region

_________________________________________________________________________________________________________

Singapore South Korea Russia Hungary Japan Poland Norway France Turkey Mexico Austria Australia Italy Germany Sweden USA Finland Switzerland Netherlands the United Kingdom Belgium Canada Denmark Luxembourg Israel Ireland Spain Taiwan Portugal Greece Czech Republic Argentina India New Zealand Malaysia South Africa Hong Kong Indonesia Brazil Chile Thailand China Pakistan Peru Philippines

Asia Asia Europe Europe Asia Europe Europe Europe the Middle East Latin America Europe Oceana Europe Europe Europe North America Europe Europe Europe Europe Europe North America Europe Europe the Middle East Europe Europe Asia Europe Europe Europe Latin America Asia Oceana Asia Africa Asia Asia Latin America Latin America Asia Asia the Middle East Latin America Asia

_________________________________________________________________________________________________________





145

Cost of Goods Sold (Excluding Depreciation) (Surgical and Medical Instruments and Apparatus) Countries in Europe

Value ($K/employee)

Rank

Percentile

233.46 225.15 223.75 213.55 213.06 209.15 208.66 187.91 168.98 160.67 158.19 153.68 138.18 133.93 132.97 132.73 130.52 121.79 117.03 115.92 113.02 113.02 111.77 108.63 106.31 105.46 104.78 104.13 89.17 88.92 85.32 84.86 80.80 79.75 79.35 79.18 74.84 73.38 61.70 53.74 50.45 46.28 44.30 42.16 39.08 38.56 37.54 35.63 35.61 23.08 10.32

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Monaco Andorra Estonia Belarus Slovakia Russia Lithuania Hungary Ukraine Gibraltar Georgia Poland Moldova Norway Kazakhstan Bulgaria France Romania Austria San Marino Guernsey Jersey Bosnia & Herzegovina Macedonia Vatican City Italy Serbia & Montenegro Germany Iceland Sweden Finland Switzerland Netherlands the United Kingdom Belgium Liechtenstein Denmark Luxembourg Ireland Spain Slovenia Portugal Cyprus Greece Malta Isle of Man Czech Republic Latvia Croatia Faroe Islands Albania

_________________________________________________________________________________________________________




146

Selling, General & Administrative Expenses Countries

Value ($K/employee)

Rank

Percentile

85.48 80.94 80.27 79.31 77.08 73.93 71.21 67.90 67.79 66.90 66.55 64.57 61.06 60.21 54.92 54.85 48.83 45.49 45.24 45.21 39.93 35.48 34.62 31.98 31.66 31.64 28.73 27.97 23.50 19.60 19.54 12.57 12.32 2.90 1.78 1.75

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 25 26 27 28 29 30 31 32 34 35 36 39 40

97.50 95.00 92.50 90.00 87.50 85.00 82.50 80.00 77.50 75.00 72.50 70.00 67.50 65.00 62.50 60.00 57.50 55.00 52.50 50.00 47.50 45.00 42.50 37.50 35.00 32.50 30.00 27.50 25.00 22.50 20.00 15.00 12.50 10.00 2.50 0.00

Region

_________________________________________________________________________________________________________

Switzerland Israel Ireland Australia Finland Luxembourg Netherlands Belgium Austria Taiwan Sweden USA Japan Portugal Italy Greece Czech Republic Argentina Denmark the United Kingdom Canada South Korea Singapore Russia France Germany Hungary Norway Poland Turkey Mexico New Zealand Hong Kong Indonesia China Pakistan

Europe the Middle East Europe Oceana Europe Europe Europe Europe Europe Asia Europe North America Asia Europe Europe Europe Europe Latin America Europe Europe North America Asia Asia Europe Europe Europe Europe Europe Europe the Middle East Latin America Oceana Asia Asia Asia the Middle East

_________________________________________________________________________________________________________





147

Selling, General & Administrative Expenses (Surgical and Medical Instruments and Apparatus) Countries in Europe

Value ($K/employee)

Rank

Percentile

85.48 80.27 79.77 77.08 73.93 71.21 67.90 67.79 67.15 66.55 65.47 65.47 65.23 60.21 57.63 55.36 54.92 54.85 50.84 50.17 48.83 46.35 46.33 45.24 45.21 34.21 33.57 32.65 32.57 32.37 31.98 31.90 31.66 31.64 28.73 27.97 25.84 24.56 24.18 23.50 21.13 20.33 20.29 18.62 17.09 16.61 16.02 11.81

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48

97.92 95.83 93.75 91.67 89.58 87.50 85.42 83.33 81.25 79.17 77.08 75.00 72.92 70.83 68.75 66.67 64.58 62.50 60.42 58.33 56.25 54.17 52.08 50.00 47.92 45.83 43.75 41.67 39.58 37.50 35.42 33.33 31.25 29.17 27.08 25.00 22.92 20.83 18.75 16.67 14.58 12.50 10.42 8.33 6.25 4.17 2.08 0.00

_________________________________________________________________________________________________________

Switzerland Ireland Liechtenstein Finland Luxembourg Netherlands Belgium Austria San Marino Sweden Guernsey Jersey Iceland Portugal Cyprus Vatican City Italy Greece Malta Isle of Man Czech Republic Latvia Croatia Denmark the United Kingdom Estonia Monaco Belarus Slovakia Andorra Russia Lithuania France Germany Hungary Norway Ukraine Gibraltar Georgia Poland Moldova Kazakhstan Bulgaria Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro Faroe Islands

_________________________________________________________________________________________________________





148

Operating Expenses - Total Countries

Value ($K/employee)

Rank

Percentile

17.63 14.91 13.55 12.90 9.40 6.99 5.97 5.96 5.70 5.40 5.14 3.99 3.91 2.89 2.55 2.44 1.90 1.74 1.73 0.85 0.78 0.70 0.69 0.68 0.43 0.25 0.08 0.05 0.05

1 2 3 4 5 6 7 8 9 10 11 12 13 16 17 18 20 21 22 24 25 26 27 28 29 30 31 34 35

97.14 94.29 91.43 88.57 85.71 82.86 80.00 77.14 74.29 71.43 68.57 65.71 62.86 54.29 51.43 48.57 42.86 40.00 37.14 31.43 28.57 25.71 22.86 20.00 17.14 14.29 11.43 2.86 0.00

Region

_________________________________________________________________________________________________________

Singapore Switzerland France Luxembourg Germany Netherlands Malaysia South Africa Italy Brazil Chile Denmark Thailand Peru the United Kingdom Belgium Canada India Philippines Finland USA Japan New Zealand Hong Kong Sweden Australia Indonesia China Pakistan

Asia Europe Europe Europe Europe Europe Asia Africa Europe Latin America Latin America Europe Asia Latin America Europe Europe North America Asia Asia Europe North America Asia Oceana Asia Europe Oceana Asia Asia the Middle East

_________________________________________________________________________________________________________





149

Operating Expenses - Total (Surgical and Medical Instruments and Apparatus) Countries in Europe

Value ($K/employee)

Rank

Percentile

17.09 16.48 14.91 13.92 13.55 12.90 9.40 6.99 5.75 5.70 3.99 2.55 2.52 2.44 0.85 0.78 0.65 0.43

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

94.44 88.89 83.33 77.78 72.22 66.67 61.11 55.56 50.00 44.44 38.89 33.33 27.78 22.22 16.67 11.11 5.56 0.00

_________________________________________________________________________________________________________

Monaco Andorra Switzerland Liechtenstein France Luxembourg Germany Netherlands Vatican City Italy Denmark the United Kingdom Albania Belgium Finland Iceland Faroe Islands Sweden

_________________________________________________________________________________________________________





150

Operating Income Countries

Value ($K/employee)

Rank

Percentile

30.68 26.53 25.21 25.15 25.13 24.16 22.77 22.72 21.96 21.67 20.41 20.25 18.13 17.25 17.07 16.69 16.47 16.30 15.47 15.35 15.22 14.43 13.92 13.88 12.88 12.68 12.66 12.17 11.41 10.68 10.40 9.76 9.26 9.19 9.01 8.62 7.31 5.68 3.69 2.14 1.05 0.64 0.63 -0.35 -1.53

1 2 3 4 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 28 30 31 32 33 34 35 36 37 38 39 41 42 44 45 46 47 50 51 52 53

98.11 96.23 94.34 92.45 90.57 88.68 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 52.83 47.17 43.40 41.51 39.62 37.74 35.85 33.96 32.08 30.19 28.30 26.42 22.64 20.75 16.98 15.09 13.21 11.32 5.66 3.77 1.89 0.00

Region

_________________________________________________________________________________________________________

Switzerland Luxembourg South Korea Malaysia South Africa Australia Brazil Russia USA Chile Hungary Netherlands Sweden Singapore Canada Poland Thailand Japan Finland Israel Ireland France Turkey Mexico Denmark Taiwan Italy Peru Portugal Austria Greece the United Kingdom Czech Republic New Zealand Hong Kong Argentina Philippines Norway India Germany Indonesia China Pakistan Spain Belgium

Europe Europe Asia Asia Africa Oceana Latin America Europe North America Latin America Europe Europe Europe Asia North America Europe Asia Asia Europe the Middle East Europe Europe the Middle East Latin America Europe Asia Europe Latin America Europe Europe Europe Europe Europe Oceana Asia Latin America Asia Europe Asia Europe Asia Asia the Middle East Europe Europe

_________________________________________________________________________________________________________





151

Operating Income (Surgical and Medical Instruments and Apparatus) Countries in Europe

Value ($K/employee)

Rank

Percentile

30.68 28.63 26.53 24.30 23.19 23.14 22.72 22.66 22.18 20.41 20.25 18.35 18.13 17.45 17.18 16.73 16.69 16.14 15.47 15.22 15.01 14.44 14.43 14.42 13.23 12.88 12.76 12.66 12.14 11.80 11.41 11.38 10.93 10.68 10.62 10.58 10.40 10.31 10.31 9.76 9.64 9.51 9.26 8.79 8.78 8.64 5.68 2.14 -0.33 -0.35 -1.53

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Switzerland Liechtenstein Luxembourg Estonia Belarus Slovakia Russia Lithuania Iceland Hungary Netherlands Ukraine Sweden Gibraltar Georgia Monaco Poland Andorra Finland Ireland Moldova Kazakhstan France Bulgaria Romania Denmark Vatican City Italy Bosnia & Herzegovina Macedonia Portugal Serbia & Montenegro Cyprus Austria Albania San Marino Greece Guernsey Jersey the United Kingdom Malta Isle of Man Czech Republic Latvia Croatia Faroe Islands Norway Germany Slovenia Spain Belgium

_________________________________________________________________________________________________________




152

Earnings Before Interest and Taxes (EBIT) Countries

Value ($K/employee)

Rank

Percentile

32.27 27.91 27.74 27.04 27.02 25.87 24.48 23.41 23.29 22.33 21.77 21.70 20.41 19.62 19.35 18.60 18.44 17.70 17.67 17.62 17.36 16.13 15.37 14.52 14.42 14.41 13.83 13.08 12.60 12.24 12.02 11.99 11.22 10.45 10.10 7.86 5.83 4.01 3.66 3.59 0.69 0.43 0.42 -3.73 -5.25

1 2 3 4 5 6 7 8 9 10 11 12 13 15 16 17 18 19 20 21 22 23 24 26 27 28 29 31 32 33 34 35 36 38 39 41 43 44 45 46 47 50 51 52 53

98.11 96.23 94.34 92.45 90.57 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 71.70 69.81 67.92 66.04 64.15 62.26 60.38 58.49 56.60 54.72 50.94 49.06 47.17 45.28 41.51 39.62 37.74 35.85 33.96 32.08 28.30 26.42 22.64 18.87 16.98 15.09 13.21 11.32 5.66 3.77 1.89 0.00

Region

_________________________________________________________________________________________________________

Switzerland Luxembourg Australia Malaysia South Africa Italy Brazil France Chile Netherlands South Korea USA Sweden Russia Singapore Israel Ireland Thailand Canada Hungary Finland Denmark Taiwan Austria Japan Poland Portugal Peru Greece Norway Turkey Mexico Czech Republic Argentina the United Kingdom Philippines Germany India New Zealand Hong Kong Indonesia China Pakistan Spain Belgium

Europe Europe Oceana Asia Africa Europe Latin America Europe Latin America Europe Asia North America Europe Europe Asia the Middle East Europe Asia North America Europe Europe Europe Asia Europe Asia Europe Europe Latin America Europe Europe the Middle East Latin America Europe Latin America Europe Asia Europe Asia Oceana Asia Asia Asia the Middle East Europe Europe

_________________________________________________________________________________________________________





153

Earnings Before Interest and Taxes (EBIT) (Surgical and Medical Instruments and Apparatus) Countries in Europe

Value ($K/employee)

Rank

Percentile

32.27 30.12 27.91 26.08 25.87 23.41 22.33 21.92 20.98 20.41 20.03 19.98 19.62 19.57 18.77 18.44 18.10 17.62 17.36 16.13 15.85 15.07 14.84 14.52 14.41 14.38 14.02 14.02 13.83 13.24 12.96 12.60 12.47 12.45 12.24 11.68 11.53 11.42 11.42 11.22 10.65 10.64 10.48 10.19 10.10 9.83 5.83 3.44 -3.51 -3.73 -5.25

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Switzerland Liechtenstein Luxembourg Vatican City Italy France Netherlands Iceland Estonia Sweden Belarus Slovakia Russia Lithuania Monaco Ireland Andorra Hungary Finland Denmark Ukraine Gibraltar Georgia Austria Poland San Marino Jersey Guernsey Portugal Cyprus Moldova Greece Kazakhstan Bulgaria Norway Malta Isle of Man Romania Albania Czech Republic Latvia Croatia Bosnia & Herzegovina Macedonia the United Kingdom Serbia & Montenegro Germany Faroe Islands Slovenia Spain Belgium

_________________________________________________________________________________________________________




154

Pretax Income Countries

Value ($K/employee)

Rank

Percentile

30.03 27.03 27.02 25.97 25.45 24.48 23.29 20.42 20.04 19.42 19.01 17.77 17.70 17.43 16.69 16.59 16.45 15.17 13.90 13.71 13.11 13.08 12.34 11.31 11.24 11.21 10.99 10.63 10.20 10.01 9.32 9.16 8.50 7.85 7.49 6.92 6.25 6.23 4.43 1.02 0.13 0.08 0.08 -5.10 -7.65

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 20 21 23 24 25 26 27 28 29 30 32 33 35 36 37 38 39 40 42 43 45 46 47 50 51 52 53

98.11 96.23 94.34 92.45 90.57 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 66.04 62.26 60.38 56.60 54.72 52.83 50.94 49.06 47.17 45.28 43.40 39.62 37.74 33.96 32.08 30.19 28.30 26.42 24.53 20.75 18.87 15.09 13.21 11.32 5.66 3.77 1.89 0.00

Region

_________________________________________________________________________________________________________

Switzerland Malaysia South Africa Luxembourg Australia Brazil Chile Italy Netherlands USA France Sweden Thailand Singapore Canada Israel Ireland Finland Denmark Taiwan Japan Peru Portugal South Korea Greece New Zealand Hong Kong Austria Russia Czech Republic Argentina Hungary the United Kingdom Philippines Poland Norway Turkey Mexico Germany India Indonesia China Pakistan Spain Belgium

Europe Asia Africa Europe Oceana Latin America Latin America Europe Europe North America Europe Europe Asia Asia North America the Middle East Europe Europe Europe Asia Asia Latin America Europe Asia Europe Oceana Asia Europe Europe Europe Latin America Europe Europe Asia Europe Europe the Middle East Latin America Europe Asia Asia Asia the Middle East Europe Europe

_________________________________________________________________________________________________________





155

Pretax Income (Surgical and Medical Instruments and Apparatus) Countries in Europe

Value ($K/employee)

Rank

Percentile

30.03 28.02 25.97 20.59 20.42 20.04 19.62 19.01 17.77 16.91 16.45 16.30 15.17 13.90 12.34 11.81 11.42 11.24 10.91 10.63 10.53 10.52 10.42 10.41 10.39 10.28 10.26 10.26 10.20 10.17 10.01 9.50 9.50 9.16 8.50 8.24 7.83 7.71 7.49 6.92 6.74 6.48 6.47 5.94 5.45 5.30 5.11 4.43 -4.79 -5.10 -7.65

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Switzerland Liechtenstein Luxembourg Vatican City Italy Netherlands Iceland France Sweden Monaco Ireland Andorra Finland Denmark Portugal Cyprus Albania Greece Estonia Austria Faroe Islands San Marino Malta Belarus Slovakia Isle of Man Guernsey Jersey Russia Lithuania Czech Republic Latvia Croatia Hungary the United Kingdom Ukraine Gibraltar Georgia Poland Norway Moldova Kazakhstan Bulgaria Romania Bosnia & Herzegovina Macedonia Serbia & Montenegro Germany Slovenia Spain Belgium

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156

Income Taxes Countries

Value ($K/employee)

Rank

Percentile

8.85 7.65 7.45 6.55 6.30 6.12 5.99 5.81 5.68 5.34 5.19 4.89 3.54 2.98 2.80 2.76 2.75 2.52 2.50 2.37 2.27 2.16 1.85 1.80 1.71 1.69 1.67 1.55 1.54 1.41 1.33 1.27 1.16 1.03 0.96 0.80 0.30 0.27 0.26 0.10 0.06 0.06 0.01 -1.38 -1.44

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 19 20 21 22 23 24 25 26 27 28 29 30 33 35 36 37 38 40 41 43 44 45 46 49 50 51 52 53

98.11 96.23 94.34 92.45 90.57 88.68 86.79 84.91 83.02 81.13 79.25 77.36 75.47 73.58 71.70 69.81 67.92 64.15 62.26 60.38 58.49 56.60 54.72 52.83 50.94 49.06 47.17 45.28 43.40 37.74 33.96 32.08 30.19 28.30 24.53 22.64 18.87 16.98 15.09 13.21 7.55 5.66 3.77 1.89 0.00

Region

_________________________________________________________________________________________________________

Switzerland Luxembourg France USA Netherlands Japan Italy Australia Finland Sweden Canada Singapore Denmark the United Kingdom South Korea Malaysia South Africa Russia Brazil Chile Hungary Belgium Poland Thailand Israel Ireland Germany Turkey Mexico Taiwan Peru Portugal Greece Czech Republic Argentina Philippines India New Zealand Hong Kong Indonesia China Pakistan Spain Austria Norway

Europe Europe Europe North America Europe Asia Europe Oceana Europe Europe North America Asia Europe Europe Asia Asia Africa Europe Latin America Latin America Europe Europe Europe Asia the Middle East Europe Europe the Middle East Latin America Asia Latin America Europe Europe Europe Latin America Asia Asia Oceana Asia Asia Asia the Middle East Europe Europe Europe

_________________________________________________________________________________________________________





157

Income Taxes (Surgical and Medical Instruments and Apparatus) Countries in Europe

Value ($K/employee)

Rank

Percentile

8.85 8.26 7.65 7.45 6.61 6.30 6.04 5.99 5.68 5.34 4.75 4.58 3.54 2.98 2.70 2.58 2.57 2.52 2.52 2.27 2.16 2.04 1.94 1.91 1.85 1.69 1.67 1.67 1.60 1.60 1.47 1.35 1.31 1.27 1.26 1.22 1.16 1.16 1.07 1.06 1.03 0.98 0.98 0.25 0.01 0.01 -1.34 -1.34 -1.37 -1.38 -1.44

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

98.04 96.08 94.12 92.16 90.20 88.24 86.27 84.31 82.35 80.39 78.43 76.47 74.51 72.55 70.59 68.63 66.67 64.71 62.75 60.78 58.82 56.86 54.90 52.94 50.98 49.02 47.06 45.10 43.14 41.18 39.22 37.25 35.29 33.33 31.37 29.41 27.45 25.49 23.53 21.57 19.61 17.65 15.69 13.73 11.76 9.80 7.84 5.88 3.92 1.96 0.00

_________________________________________________________________________________________________________

Switzerland Liechtenstein Luxembourg France Iceland Netherlands Vatican City Italy Finland Sweden Monaco Andorra Denmark the United Kingdom Estonia Belarus Slovakia Russia Lithuania Hungary Belgium Ukraine Gibraltar Georgia Poland Ireland Germany Moldova Kazakhstan Bulgaria Romania Bosnia & Herzegovina Macedonia Portugal Serbia & Montenegro Cyprus Albania Greece Malta Isle of Man Czech Republic Latvia Croatia Faroe Islands Spain Slovenia Jersey Guernsey San Marino Austria Norway

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4 4.1

MACRO-ACCESSIBILITY IN FINLAND EXECUTIVE SUMMARY

Since joining the European Union (EU) in 1995, Finland with its population of 5.2 million and once viewed as a remote northern outpost, has become a robust market for a variety of international businesses. A Nordic country, Finland shares a long border with Russia. Finland has a unique position as the center of a rapidly developing marketplace formed by northwestern Russia, Scandinavia and the Baltic States, with about 80 million prospective consumers. Finland’s business attitude towards the United States is very positive. Commercial relations between Finnish and U.S. companies are often based on many years of mutual experience. New companies, with innovative and competitively priced products, will find a welcoming market – with new partners often willing to go the extra mile to ensure success. Finland’s import climate is open and receptive to U.S. products and investments. There are no significant trade barriers or regulations that U.S. firms need to take into consideration.

4.1.1

Nokia – A Big Company in a Small Country

No guide about Finland would be complete without mentioning Nokia. Headquartered in Finland, this mobile phone maker has grown to become a multi-national giant in a small country. Its contribution to the Finnish economy is significant. Nokia remains the major player in the ICT cluster. But it is not alone. There are thousands of small and medium-sized companies in the cluster. Hundreds are direct first-tier suppliers to Nokia, known in Finland as the “Nokia network”. Finland’s mobile communications standard-bearer, Nokia, has established itself as one of the World’s most valuable and prominent brands. However, Finnish high-tech is much more than just mobile phones and telecommunications technology. The technology spill off from the electronics area can also be seen in other market sectors, such as environmental products, biotech and the medical industries.

4.1.2

Finnish-U.S. Trade

The United States is Finland’s most important trading partner outside of Europe. Major exports from the United States to Finland continue to be machinery, telecommunications equipment and parts, aircraft and aircraft parts, computers, peripherals and software, electronic components, electric machinery, chemicals, medical equipment and some agricultural products. The primary competition for American companies comes from European suppliers, especially German, Swedish, and British. The main export items from Finland to the United States are ships and boats, paper and paperboard, refined petroleum products, telecommunications equipment and parts.

4.1.3

Finland: A Springboard to Russia and the Baltic States

The value of Finland’s gateway position between east and west was also noted when Finland became a member of the EU; this position was strengthened during Finland’s EU Presidency (July-December 1999). As an EU member state bordering Russia, Finland remains vital as a trans-shipment channel to Russian markets, especially the



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northwestern regions. About 40 percent of the EU’s road shipments to Russia are shipped from Finland or arrive via Finland. Finns know how to do business in Russia and the Baltic States. Finland’s excellent infrastructure and its geographical proximity to Russia and the Baltic countries, especially Estonia, give Finland an advantage as a gateway to these burgeoning markets. Many foreign and U.S. companies are using Finland as a base for opening their transportation and marketing activities to the former Soviet Union, taking advantage of established logistics and distribution networks.

4.2

ECONOMIC FUNDAMENTALS AND DYNAMICS

On January 1, 1999, eleven EU member countries including Finland joined the third stage of the European Monetary Union (EMU). This third and final stage of EMU commenced with the irrevocable locking of the exchange rates of the eleven currencies participating in the Euro area and with the conduct of a single monetary policy under the responsibility of the European Central Bank (ECB). The Finnmark (FIM) was pegged to the Euro at 5.9457. on January 1, 2002, the Finnmark was replaced by the Euro, and the Finnmark ceased to be legal tender as of March 1, 2002.

4.2.1

Government Intervention Risks

During the severe recession of the early 1990s, the Finnish government’s financial position deteriorated rapidly. The government became deeply indebted because, as tax revenues fell, transfer payments under the country’s extensive social welfare programs rose dramatically. At the same time, the government was forced to bail out several major banks whose failure would have prompted a collapse of the banking system. Since then, the major aim of the government’s fiscal policy, in addition to curbing unemployment, has been to curb the growth of debt. The Finnish government has traditionally played a dominant role in the economy. In the decades since World War II, state-owned companies have held a dominant position in Finland’s national economy. The basic strategy for the privatization process has been to treat each company as an individual case. The aim of the new government is to be an active shareowner, to develop the companies concerned and to increase the value of the holding. Incomes from any sale of state-owned companies are channeled into R&D financing or into capital finance for Finnish Industry Investment Ltd, a government-owned investment company. It engages in equity capital investment and invests in venture capital funds, private equity funds and directly in selected target companies. Finnish Industry Investment Ltd is administered by the Ministry of Trade and Industry.

4.2.2

Balance of Payments Issues

With the onset of Stage Three of EMU on January 1, 1999, Finland’s balance of payments lost its importance for monetary and exchange rate policy. In the future, the European Central Bank will aggregate all of the EMU member states’ balance of payments and report them quarterly. Only the current account for the whole Euro area can affect the Euro´s exchange rate against other major currencies. Investment outflows continue to exceed direct investment in Finland. Some tax changes, the promotion of Finland as a gateway for Russian markets and Finnish membership in the EU encourage foreigners to invest more in Finland.



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160

Infrastructure Development

Finland has a well-developed infrastructure. Finland’s transportation system is based on an efficient rail and road network, supported by a wide network of freight forwarders and trucking companies. Finland’s domestic distribution system for goods and services is efficient. Finland has over 50 merchant shipping ports, of which more than 10 are located on inland waterways connected to the Baltic Sea by the Saimaa Canal. Twenty-three seaports are open year round. Finnish ports, 15 of which deal with transit traffic through Finland, can handle a wide range of cargo. The 10 biggest ports handle more than 75 percent of all sea-borne cargo traffic. The ports near the Russian border (Hamina, Kotka and Mustola) concentrate on forestry goods, bulk cargo and free zone activities. Ports are secure and automated; loading and unloading operations are consistently quick and trouble-free. The well-functioning transportation system and the fact that Finland’s rail gauge is the same as Russia’s make the country a good transshipment point for Russian trade. The E18 road, from Kristiansand, Norway, through Sweden and Finland, to St. Petersburg, Russia, is part of the European Union Trans European Road Network system, connecting EU-member Nordic capitals with efficient roads. Finland’s international telecom set-up began to admit limited competition in 1993, with further deregulation on July 1, 1994. on the domestic telecommunications front, competition entered the picture at the beginning of 1994. Finland’s telecommunications environment is one of the most advanced in Europe and the growth of international telecom is of significant importance to the Finnish economy. The number of mobile telephones exceeded the number of fixed line connections already in 1998 in Finland. The number of Internet hosts per 1000 inhabitants amounts to 183; Internet penetration in Finland is the second highest in the world, right after the U.S. Finland was the first country to grant licenses for third generation mobile networks. Four telecommunications companies have received licenses to construct a third generation (3G) mobile network. Almost every Finn has access to broadband networks. Fiber optic cables cover 95 percent of Finnish municipalities and 99 percent of the population live in these municipalities. Altogether 98 percent of Finns live within a few kilometers of high-speed fiber optic cable networks. The large number of connections in educational institutions and workplaces compensate for the relative lack of household connections. The change in household structures in the direction of single-person households is slowing down the spread of IT through the population. In 1999, significant steps were taken to establish a digital television system in Finland, when the Ministry of Transport and Communications granted licenses for digital television channels. The licenses were granted for 10 years, from September 2000 to August 2010. The government also granted licenses for three special digital channels and a television channel that broadcasts regional programs. Digital transmissions began on August 27, 2001.

4.3 4.3.1

POLITICAL RISKS Economic Relationship with the United States

Relations between the United States and Finland are excellent and free from bilateral disputes except for occasional trade disputes, now largely covered by the broader U.S. - EU trade relationship. The U.S. cooperates with Finland in various international organizations such as the UN, OSCE and OECD. Finland’s 1995 accession to the European Union (EU) has added a new dimension to U.S.-Finnish relations. Both countries share a deep interest in the stable political and economic development of Russia and the Baltic States. This interest is reflected in the U.S. Enhanced Partnership in Northern Europe initiative (ePINE) and the Finnish-inspired EU Northern Dimension program. Finland remains militarily non-aligned; it is an active member in NATO’s Partnership for Peace (PfP) program.



Macro-Accessibility

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161

The Political System

Finland is a parliamentary democracy headed by a president, although presidential power has been somewhat reduced by the country’s new constitution, which took effect on March 1, 2000. The president is elected for a sixyear term and has primary responsibility for bilateral relations and national security issues. The Prime Minister, on the other hand, is the head of government and has responsibility for domestic and EU affairs. Parliamentary elections are normally held every four years.

4.4 4.4.1

MARKETING STRATEGIES Creating a Sales Office

If a foreign organization intends to establish an office in Finland, the following steps should be taken: 1)

Drafting the Memorandum of Association

2)

Drafting the Articles of Association

3)

Subscription of the shares

4)

Constituent meeting of the shareholders

5)

Adoption of the Articles of Association

6)

Payment of the capital share

7)

Registration of a limited company

For further information, please contact the Employment and Economic Development Center (www.te-keskus.fi) and/or Invest in Finland Bureau (www.investinfinland.fi).

4.4.2

Creating a Joint Venture

Several U.S. companies have established themselves in the Finnish market with subsidiaries or joint ventures, with particular interest in access to Finnish-Russian joint ventures. A number of Finnish firms are interested in using their long-established contacts in the former Soviet Union and the Baltic countries to market U.S. goods. Due to its physical proximity and Finland’s network of railroad and air connections, there are many strong selling features regarding access to Russia. As a full member of the European Union, Finland has its feet firmly planted in the West but possesses unique access to and expertise about the Russian market.

4.4.3

Agents and Distributors

One exclusive agent/distributor is usually appointed to cover the entire country, mainly due to the relatively small size of the Finnish market. Finnish importers often represent several different product lines. In selecting a representative, the exporter should check whether that company handles competing products. Consumer goods and similar merchandise requiring maintenance of stock are often imported through wholesalers or trading houses. Such products may also be sold directly to retail chains, department stores, and other retail outlets.



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Contacting local trade associations for a list of importers is a good way of finding a distributor in Finland. Finnish importers attend major trade fairs in Europe and in the United States in order to find new products and ideas, but also to find new representation.

4.4.4

Checking Bona Fides

Dun & Bradstreet Finland Oy and Suomen Asiakastieto Oy offer a variety of business and credit information services. For further information, please contact: Dun & Bradstreet Finland Oy Vattuniemenkatu 21 A FIN-00210 Helsinki, Finland Tel: +358-9-2534 4400 Fax: +358-9-502 2940 E-mail: [email protected] www.dnb.com Or any Dun & Bradstreet office in the U.S. Suomen Asiakastieto Oy P.O. Box 16 FIN-00581 Helsinki, Finland Tel: +358-9-148 861 Fax: +358-9-753 3231 E-mail: [email protected] www.asiakastieto.fi Suomen Asiakastieto Oy’s partner in the U.S.: Veritas 121 Whitney Avenue New Haven, CT 06510 Tel: (203) 503-6700 Fax: 781-3833 E-mail: [email protected] www.veritas-usa.com

4.4.5

Distribution Channel Options

Distribution channels in Finland are similar to those in the United States. Goods may be sold through an agent, distributor, established wholesaler, or selling directly to retail organizations. Most of the larger importers, wholesalers and trading houses are members of the Federation of Finnish Commerce and Trade (FFCT), which is a central organization of 41 trade associations covering the bulk of foreign goods sold to Finnish trade and industry. The members of FFCT are particularly strong in certain specialized sectors, such as electronics, electric components and instruments, pharmaceutical and health care products, technical products and machinery, raw materials and chemicals. The majority of Finnish commission agents are members of the Finnish Foreign Trade Agents’ Federation, which has 18 divisions for different products. These commission agents are relatively small, private companies, most of them operating in sectors such as textiles, apparel, furnishings and raw materials.



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4.4.6

163

Selling Strategies

Selling factors and techniques are very similar in Finland to those in the United States. Terms generally applied to international trade with industrialized countries apply to selling in Finland. When selling to the Finnish market, it is recommended that a local agent/distributor who has a sales network covering the whole of Finland be appointed. Only one local distributor is needed to cover the whole country, since Finland is a small market, but distances are long and therefore a distributor with a countrywide network is most desirable. Consumer goods and similar merchandise requiring maintenance of stock are often imported through wholesalers or trading houses. These products can also be sold directly to retail chains, department stores and other retail outlets. U.S. suppliers should provide the local distributor with English language product literature and export prices. Strong promotion efforts are very important to introduce new products into the Finnish market.

4.4.7

Pricing and Licensing

Product Licensing agreements are quite common in Finland because of the good quality of Finnish manufacturing, the small size of the market and the relatively high cost of transporting goods to the country. Royalties and licensing fees may be freely transferred out of Finland. All goods and services are subject to VAT, which ranges from 8 percent on books, drugs and pharmaceuticals, 17 percent on foodstuffs and feeds, to 22 percent on industrial goods. Excise taxes are levied on fuel, alcohol, beer, tobacco, soft drinks and mineral water. Finland is an EU (European Union) country. Imports from the other EU (European Union) countries enter Finland duty-free and without customs formalities. The EU also has free trade agreements with a large number of non-EU countries (e.g. countries that belong to the PAN-European cumulation and EFTA (European Free Trade Association) countries. Imports from these countries, with some exceptions, enter Finland duty-free if the products have been manufactured in one of these countries. However, import duties are levied on imports from countries such as the United States, Australia, Japan and Canada, depending on specific product lines.

4.4.8

Advertising Options

All media in Finland is open for advertising. There are two regulatory structures in place concerning marketing, the Consumer Protection Act and the Act on Unfair Business Practice. The Consumer Ombudsman and the Marketing Court control advertising. The general rule is that advertisements may not contain claims which cannot be substantiated or which are offensive to minorities (race, sex, etc.). There are also restrictions concerning the use of children in advertising. Advertising of tobacco products and spirits is completely prohibited in Finland’s mass media. However, advertising of beer, wines, and low alcohol level beverages (less than 22%) has been allowed since 1995.

Major Newspapers Helsingin Sanomat P.O. Box 77 FIN-00089 Sanomat, Finland Tel: 358-9-1221 Fax: 358-9-605 709 www.helsinginsanomat.fi



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Aamulehti P.O. Box 327 FIN-33101 Tampere, Finland Tel: 358-3-266 6111 Fax: 358-3-266 6259 www.aamulehti.fi

Business Magazines and Journals Kauppalehti (Business Daily) P.O. Box 189 FIN-00101 Helsinki, Finland Tel: 358-9-507 81 Fax: 358-9-660 383 www.Kauppalehti.fi Taloussanomat (Business daily) P.O. Box 35 FIN-00089 Sanomat, Finland Tel: 358-9-1221 Fax: 358-9-122 4179 www.taloussanomat.fi Talouselama (Business weekly) P.O. Box 920 FIN-00101 Helsinki, Finland Tel: 358-20 442 40 Fax: 358-20 442 4130 www.talentum.com

E-Commerce Web Sites •

SoneraPlaza: http://plaza.fi/

•

Elisa Communications: www.elisa.com

•

Jippii Group: www.jippii.fi

4.4.9

Trade Promotion

The main fair centers in Finland are located in the cities of Helsinki, Jyvaskyla, Turku, Tampere and Lahti. For further information, please contact: The Finnish Fair Corporation P.O. Box 21 FIN-00521 Helsinki, Finland Tel: 358-9-150 91 Fax: 358-9-142 358 http://www.suomenmessut.fi Jyvaskyla Fair Ltd. www.icongrouponline.com


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P.O. Box 127 FIN-40101 Jyvaskyla, Finland Tel: 358-14-334 0000 Fax: 358-14-610 272 www.jklfairs.fi/ Lahti Fair Ltd. P.O. Box 106 FIN-15141 Lahti, Finland Tel: 358-3-525 820 Fax: 358-3-525 8225 www.lahdenmessut.fi/ Turku Fair Center Ltd. P.O. Box 57 FIN-20201 Turku, Finland Tel: 358-2-337 111 Fax: 358-2-2401 440 http://www.turunmessukeskus.fi Tampere Trade Fairs Ltd. P.O. Box 163 FIN-33201 Tampere, Finland Tel: 358-3-2516 111 Fax: 358-3-2123 888 www.tampereenmessut.fi/html/indeng.html Supplying As a rule, one exclusive agent/distributor is appointed to cover the entire country. Finnish importers often represent several different product lines. Importers may serve large customers themselves while dealers work with smaller customers, often located outside the Helsinki metropolitan area. Dealers are often specialized in supplying a specific industry area. Training, usually organized and carried out by dealers, is an important aspect. Service points should cover the whole country rather than just the southern parts.

4.4.10

Public Sector Marketing

Finnish procurement agencies follow the procurement procedures of the EU and the World Trade Organization (WTO). The EU rules of procurement and the WTO’s GPA agreement only apply to procurements of or above the threshold value. National legislation requires procurement units to submit competitive tenders for procurements that fall below the threshold value. This is done by sending requests for tenders to a number of potential suppliers or by publishing an announcement. The main principles of procurement are that purchases should be made on an open and competitive basis, and that suppliers should be treated equally. The principle of openness stipulates that the procurement unit announce, on a sufficiently large scale, that it is making a purchase. The principle of equality and non-discrimination entails that the decision to buy must be made in accordance with established criteria. Of the offers received, the lowest offer or the one which is the most affordable in terms of overall economy, has to be selected. Information on threshold values can be found at www.vn.fi/ktm/2/julha/english/index.html.



Macro-Accessibility

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166

IMPORT AND EXPORT REGULATION RISKS Adherence to Free Trade Agreements

Finland joined the EU on January 1, 1995, which means that Finland complies with trade agreements that the EU has made with third countries. Finland is also a member of the European Free Trade Association and the European Economic Area.

4.5.2

Trade Barrier Risks

Finland’s adoption of EU internal market practices in 1995 defines Finland’s trade relations both inside the EU and with non-EU countries. Finland replaced its turnover tax with a value-added tax in June 1994. While the change has had little effect on overall revenues, several areas not previously taxed or taxed at a lower rate, including many corporate and consumer services and construction, are now subject to the new VAT in conformity with EU practices. The government has kept the basic VAT rate at the same level as the old turnover tax, which is 22 percent. Food products are taxed at 17 percent. Sport facilities usage, medicines, books, cinemas, passenger transport services, hotel and other accommodation, entertainment performances, sporting events, zoos, museums, and other such events or institutions are taxed at 8 percent. Other services, including health care, education, insurance, newspaper & periodical subscriptions and rentals are not subject to VAT. Agricultural and forestry products continue to be subject to different forms of taxation outside the VAT. A uniform tax rate of 28 percent on capital gains took effect in 1996, which includes dividends, rental income, insurance, savings, forestry income, and corporate profits. The tax rate on capital income and corporate income was raised from 28 percent to 29 percent from the beginning of year 2000. In March 1997 EU commitments required the establishment of a tax border between the autonomously governed, but territorially Finnish, Aland Islands and the rest of Finland. As a result, the trade of goods and services between the rest of Finland and Aland Islands is now treated as if it were trade with a non-EU area. Even though the Aland Islands are part of the EU, just as Finland is, Aland does not belong to the Union’s tax area. This exception was drafted in order to protect the important shipping traffic and the tax-free sales when EU countries abandoned dutyfree sales. The trade effect of this treatment is minimal since the Aland Islands are part of the EFTA tariff area. Finland has also introduced EU practices on imports of agricultural products. Some agricultural goods are subject to the standard import-licensing system, EU-wide quotas, import taxes or other provisions. In mid-1996 the Finnish government’s inter-ministerial licensing authority began, within the EU, selectively to oppose American company applications for commercialization of genetically modified organisms (GMOs) such as insect-resistant corn. Finland’s attitude towards biotechnology is markedly more open than in many other EU Member States and Embassy Helsinki has been working actively with Finnish partners to distribute accurate and scientific information on this issue.

4.5.3

Tariff Rates

Duties and other import taxes are levied on the customs value of the goods at the point of importation. The customs value is based on the transaction value of the goods imported. In practice, the C.I.F. value is commonly used as the customs value. To assess customs value, the place of importation must be indicated. In the case of sea and air cargo, the place of importation is the unloading location. In surface transportation, it is the Customs Office at the frontier. The customs value is determined according to the GATT Valuation Agreement and the Community Customs Code www.icongrouponline.com


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(Council regulation 2913/92) and the Regulation Laying down Provisions for Implementation of the Customs Code (Commission regulation 2454/93).

4.5.4

Restrictions on Imports

Finnish law prohibits the import of the following products: •

PCB and PCT chemicals used in transformers and condensers causing problem waste products

•

Whale meat

4.5.5

Local Standards

Finland uses the metric system. Products for sale in Finland should be adapted to the metric system whenever possible. It is also highly recommended that U.S. products imported into Finland meet international or European standards. Examples of products where conformity to directives is mandatory are electric equipment, machines, toys, pressure vessels, construction products and personal protective equipment. In these cases CE-marking acquired in any EU/EEA country is also valid in Finland. There are several Notified Bodies in Finland participating in the CEmarking procedures. The central body for standardization in Finland is the Finnish Standards Association - SFS (www.sfs.fi). SFS and its standards writing bodies, SESKO Standardization in Finland (www.sesko.fi) and Finnish Communications Regulatory Authority (www.ficora.fi) are members of the European standards organizations CEN, CENELEC and ETSI. National SFS Standards are sold in Finland only by SFS. National ISO member bodies abroad handle distribution of SFS standards. SFS and SESKO are the Finnish sources for all international standards and drafts of the International Organization for Standardization (ISO), for European standards and drafts of CEN and for publications of ISO member bodies. SFS also distributes other foreign standards and technical regulations. The only organization that develops standards in Finland is the Finnish Standards Association (www.sfs.fi).

List of Finland’s Main National Testing or Conformity Assessment Bodies Low voltage (LVD): •

SGS Fimko Oy (www.fimko.fi)

Simple pressure vessels (SPVD): •

Inspecta Oy (www.inspecta.fi)

Construction products: •

VTT Building and Transport (www.vtt.fi/rte)

•

SFS-Inspecta Sertifiointi Oy (www.sfs-sertifionti.fi)

•

Sahkotarkastus Fimtekno Oy (www.fimtekno.fi)

•

Contesta Oy (www.contesta.fi)

•

Oy DNV Certification Ab (www.dnv.fi)



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Electromagnetic compatibility (EMC): •

Competent Bodies - SGS Fimko Oy (www.fimko.fi), Nemko Oy (www.nemko.fi), TCC Salo (www.finas.fi), NATLABS Oy - Nordic Accredited Testing Laboratories (www.natlabs.fi)

•

Competent Administrative Authority – Turvatekniikan keskus – Safety Technology Authority (www.tukes.fi)

Personal protective equipment (PPE): •

Tyoterveyslaitos – Finnish Institute of Occupational Health (www.ttl.fi)

Explosives for civil use: •

Finnish Defense Forces Technical Research Center (PvTT) (www.mil.fi)

Medical devices: •

VTT Industrial Systems (www.vtt.fi)

Equipment explosive atmospheres (ATEX): •


Recreational craft: •


Lifts: •

Sähkötarkastus Fimtekno Oy (www.fimtekno.fi)

•

Oy Elspecta Ab (www.hissiproffat.fi)

•

Suomen Hissitarkastus Oy

Pressure equipment (PED) •

Inspecta Oy (www.inspecta.fi)

•

Polartest Oy (www.polartest.fi)

Machinery: •


•

SGS Fimko Oy (www.fimko.fi)

Diagnostic medical devices: •


Radio equipment and telecommunications terminal equipment and the mutual recognition of their conformity: •

Finnish Communications Regulatory Authority: Viestintävirasto (www.ficora.fi)

Transportable pressure equipment •

Polartest Oy (www.polartest.fi)



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Noise emission in the environment by equipment for use outdoors: •

Maa- ja elintarviketalouden tutkimuskeskus – Agrifood Research Finland (www.mtt.fi)

Product Certification Product certification is voluntary.

Accreditation Please contact the Finnish Accreditation Service, FINAS (www.mikes.fi).

Technical Regulations EU member states have to inform and consult each other and the Commission before they adopt new national technical regulations for products or services of the Information Society. The information procedure is based on Directive 98/34/EC of the European Parliament and the Council, as amended by Directive 98/48/EC. The above Directives have been implemented in Finland through a Government Decision. The Decision obliges all parties drafting technical regulations to notify the Ministry of Trade and Industry of the drafts. The Ministry is the National Contact Point in contacts with both the Commission and with national authorities, industrial associations and other stakeholders. Further details, and draft technical regulations and the final texts of regulations of all member states which are public documents, are available on the TRIS (Technical Regulation Information System) Web pages of the Commission Directorate-General for Enterprise: http://europa.eu.int/comm/enterprise/tris/about/index_en.htm.

4.5.6

Labeling Issues

Labeling and marking requirements in Finland are based on the Act on Product Safety, which was enacted in accordance with the EU directive on general product safety. The following information should be included in retail packaging, or otherwise marked on the product (a sticker, label, etc.): •

Name of the product (indicating clearly the contents of the package)

•

Name of the manufacturer or the name of the company that had the product manufactured

•

Amount of contents (weight or volume of the contents to be specified, measures in metric system).

If warranted by safety considerations or economic security of the consumer, the following information should also be included on the retail packaging or otherwise clearly identified on the product: contents of the product, care instructions, operating instructions, and a warning of possible danger related to the use or disposal of the product. Finland has precise labeling requirements for foodstuff. A retail-size food package must show the name of the manufacturer, packer or importer, commercial name of the product, net metric weight or volume, ingredients in descending order of weight, last recommended date of sale, and storage instructions if perishable or intended for infants. Mandatory information described above must be provided in Finnish and Swedish.

The Swan Label Besides the CE Mark, which is required across the European Union, the Swan Label is a neutral and reliable Nordic Environmental Label. It directs products, their production and consumption into a more environmentally friendly direction. The Swan Label indicates that the products burden the environment less than other corresponding products - without compromising performance characteristics.



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The European Eco-Label The purpose of the European Eco-Label is to promote the development, manufacture, marketing, and use of products that least burden the environment. To consumer, the Eco-Label gives better and more reliable information on the environmental friendliness of the product (http://europa.eu.int/ecolabel). Key contact: SFS-Standardisointi (Finnish Standards Association) Maistraatinportti 2 FIN-00240 Helsinki Finland Tel: 358-9-149 9331 Fax: 358-9-146 4925 E-mail: [email protected] www.sfs.fi

4.5.7

Controls on Exports

Finland is an active participant in all export control regimes, notably the Nuclear Suppliers Group (NSG), the NPT Exporters Committee (Zangger Committee), the Missile Technology Control Regime (MTCR), the Australia Group (AG) and the Wassenaar Arrangement (WA). Finland chaired the Zangger Committee in 1989-93 and the NSG in 1995-96 and was the chair of the MTCR until fall 2001. A basic principle of Finland’s export control policy is that there is no published or unpublished “black list” of undesired destinations except those subject to sanctions by the UN or the EU. All license applications are considered on a case-by-case basis, taking into account the information exchanged within the relevant export control regime.

Ministry for Foreign Affairs The Ministry for Foreign Affairs (MFA) is in charge of Finnish non-proliferation policy as well as the security and trade policy aspects of export controls. In the MFA, the Political Department and its Division for Non-Proliferation, Arms Control and Disarmament, coordinates Finland’s participation in the international cooperation concerned, for example in the export control regimes. The MFA’s Department of External Economic Relations monitors export controls from the trade policy point of view. Ministry for Foreign Affairs Division for Non-Proliferation, Arms Control and Disarmament Tel: +358-9-16005 Fax: +358-9-16056066 http://formin.finland.fi/english

4.5.8

Import Tariffs and License Requirements

Most goods can be imported into or exported from Finland without a special permit. Some restrictions apply, however. Finland follows the import-licensing procedures of the EU. Licenses can be applied for from the National Board of Customs. Certain agricultural products are subject to import duties and/or fees imposed in accordance with EU rules and regulations. Among the products subject to these duties and fees are cereals, flour, certain fats and oils, fish products, butter, cheese, eggs, poultry, meat, cattle and hogs. The transitional period that allowed Finland to



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maintain its stricter (than EU) import regulations on certain agricultural products (primarily meat and livestock) expired in 1998.

4.5.9

Customs Regulations and Contact Information

Customs duties are levied on goods imported to Finland. As a member of the EU, Finland is part of the EU-wide Customs Territory and applies EU Custom’s legislation. You can consult Customs Information for customs related matters. Suomen Tulli (Finnish Customs) PL 512 FIN-00101 Helsinki, Finland Tel: +358 20 391 100 Fax: +358 20 492 1812 (See also www.tulli.fi)

4.5.10

Entering Temporary Imports

Temporary exemption from duty can be granted, for instance, to the following: •

Goods intended for public displays at exhibitions and fairs

•

Commercial samples

•

Professional tools and equipment

If the goods are put to unauthorized use or are not exported within the prescribed time they must go through normal customs clearance and become liable for relevant duties and taxes. In Finland, the ATA-Carnet, the international customs documentation for temporary duty-free admission is issued by the Chamber of Commerce. The ATA-Carnets are frequently used for temporary imports e.g. samples, exhibition materials, and professional equipment (laptop computers, software), and are valid for one year.

4.5.11

Additional Trade Issues

Certain import/export items need to meet with special requirements and certifications set by the EU or national standards. These are mostly articles that might damage health, welfare or country’s economy, or result in the spread of animal and plant diseases. The following items, among others, are subject to restrictions: •

Foodstuffs

•

Fodder and fertilizers

•

Alcoholic beverages and other products containing alcohol

•

Pharmaceuticals

•

Narcotics and dangerous drugs



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Some chemicals

•

Nuclear and radioactive substances

•

Explosives

•

Blade knives firearms and ammunition

•

Obscene publications

•

Pressure vessels

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Free Trade Zones and Warehouses

Finland has one free port in Hanko, located at the southernmost tip of the country. The port has a year-round railwayferry link with Turku. In addition, there are 20 storage areas in other locations in the country. The duty-free storage areas, which are usually run by municipal corporations, are available to domestic and foreign-owned companies. Warehousing, assembly and manufacturing are allowed in these areas, with permission from the Board of Customs.

4.6 4.6.1

INVESTMENT CLIMATE Openness to Foreign Investment

The Finnish Government maintains a favorable attitude toward direct foreign investment. In 1993, laws restricting foreign ownership were abolished to support the already commonly accepted liberal treatment of foreign investments in Finland. Because of liberalization, Finland’s EU entry, the opening of former Soviet markets - creating opportunities for Finland to act as a gateway - and the economic recovery, foreign investment in Finland has accelerated in recent years. Unlike many other countries, however, Finland does not “positively” discriminate in favor of foreign-owned firms by giving them tax holidays or other subsidies not available to other firms in the economy. Instead, Finland relies on “condition-providing policies” which means pursuing policies that offer all firms in the economy appropriate conditions and sufficient pools of advanced factors of production, including an educated labor force and well-functioning infrastructure. There are some legal requirements for non-European Area residents (persons or companies) to conduct business in Finland. In certain areas involving specific safety or health hazards or financial risks, specific conditions must be met to conduct trade. These regulated forms of trade are governed by section 3 of the Trade Act as well as by specific legislation. A non-European Economic Area resident (person or company) operating in Finland must refer to the authorities to obtain a license or a notification when starting a business in the “regulated” forms of trade, including: banking and insurance, nuclear energy-related activities, mining, manufacturing and sale of medicinal substances, dangerous chemicals and explosives, private security services, travel agencies, restaurant and catering services. Supply of mandatory labor pension insurance and workers’ compensation is possible only through a company established in Finland. This provision is designed to ensure compliance with social security legislation. The Aland Islands are an exception to common Finnish practice. Based on international agreements dating from 1921, property ownership and the right to conduct business are limited to only those individuals with right of domicile in the Aland Islands. The “Invest in Finland” Bureau operates within the government-sponsored Finpro (formerly Finnish Foreign Trade Association). Its purpose is to provide potential investors with detailed information on investing in Finland (www.finpro.fi).



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Conversion and Transfer Policies

Finland does not have any exchange controls. There are no restrictions on transferring investment capital or profits abroad in freely convertible currencies at a legal market rate. There is no limit on dividend distributions, as long as they correspond to a company’s official earnings records. Foreign investors are not required to pay tax on capital gains or investment income derived from Finland. The stamp duty on transactions conducted on the Stock Exchange and on the OTC market has been abolished. The Bank of Finland compiles the country’s balance of payments data in accordance with International Monetary Fund (IMF) standards. To this end, the main details of all single payment items exceeding EUR 8,000 (USD 8,480) are to be submitted on a form either to the Finnish bank effecting the payment or directly to the Bank of Finland.

4.6.3

Expropriation and Compensation

Private property rights are well protected in Finland. There have been no cases of expropriation or nationalization since the Second World War.

4.6.4

Dispute Settlement

In 1969, Finland became a member of the International Center for the Settlement of Investment Disputes (ICSID). There is no record of any significant investment dispute in the last three decades.

4.6.5

Performance Requirements and Incentives

There are no performance requirements or commitments imposed on foreign investment in Finland. However, to conduct business in Finland, some residency requirements must be met to ensure that persons liable for the company’s acts can be brought to court if necessary. At least half of the founders (natural or legal persons) of a company to be established in Finland must reside within the EEA. Otherwise, a special permit issued by the Ministry of Trade and Industry is needed. The residence requirement can, in most cases, be fulfilled by appointing a legal representative with residence in Finland to be in charge of the business. The nationality of the founder is thus irrelevant. The extensively revised Companies Act came into force in September 1997. In line with common Western European practices, the law divides limited liability companies into public (Oyj) and private limited (Oy) companies. New financing instruments, such as capital loan and preference shares, were made available to companies. All companies registered in Finland have access to government assistance under special development programs. Foreign-owned companies are eligible for government incentives on an equal footing with Finnish-owned companies. Assistance and subsidies are granted by the Ministry of Trade and Industry (MTI) or other ministries depending on the field of business activity, the Technology Development Center (TEKES), the Parliament-managed venture capital fund, and the Finnish National Fund for Research and Development (SITRA). Companies operating in Finland have access to EU structural funds through national programs. EU funding may cover half the total costs of a program provided that the other half comes from national private and/or public sources. Finnish policy on business aid has sought to reduce sectoral aid and channel aid into intangible investments and development of the operating environment. The business support system has been simplified and supervision www.icongrouponline.com


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intensified. Support is provided in the form of tax benefits, loans, guarantees, cash grants and investment in equity, as well as in supply of expertise and employee training, and most of the support is for SMEs. Small firms can also get start-up aid to help with their first 12 months of operation. This subsidy can amount to as much as 45 percent of the project’s wage costs. Subsidies may be given for manufacturing, tourism and business services. MTI provides subsidies for investments in the form of regional investment aid, aid for small businesses or development aid for small and medium size enterprises (SMEs) and aid for improvement of the operational environment of the undertaking. SITRA’s corporate funding operations comprise venture capital, which is divided between seed funding and growth funding, fund investment and the commercialization of trading technology. TEKES is the main financing organization for applied and industrial R&D in Finland. Its funds are awarded from the state budget. The Foundation for Finnish Innovations provides risk financing for developing the innovations of private investors and small entrepreneurs. Firms established in development regions may receive subsidies for the transportation costs of products. MTI provides grants to promote internationalization. Aid for export promotion projects to be undertaken in EU/EEA territory is available only to SMEs as defined by EU/EEA state aid regulations. MTI grants energy subsidies to companies and organizations for investments promoting energy conservation and the use of domestic energy sources. To promote venture capital investments in Finnish SMEs, Finnvera grants venture capital guarantees.

4.6.6

Right to Private Ownership and Establishment

Private ownership and entrepreneurship is the norm in Finland. In most fields of business activity, participation by foreign companies or individuals is unrestricted. As the government pursues privatization of state-owned companies, both private and foreign participation is welcome except in some enterprises operating in sectors related to national security. Competitive equality is the official standard applied to private enterprises in competition with public enterprises. Private companies do not face discrimination. With the end of the Restriction Act in January 1993, Finland removed most restrictions on foreign ownership of property in Finland. Restrictions, such as requirements to obtain permission of the local government in order to purchase a vacation home in Finland were abolished January 1, 2000, bringing Finland fully in line with EU norms.

4.6.7

Intellectual Property Risks

The Finnish legal system protects property rights, including intellectual property, and Finland adheres to numerous international agreements concerning intellectual property. Finland has joined the most important copyright agreements. Patent rights are consistent with international standards. In Finland a granted patent applies for 20 years. In 1996, Finland joined the European Patent Convention (EPC) and the European Patent Organization (EPO). Finland is clearly the leader when the number of so-called high-tech patent applications (8 applications/ 1 million Finns) is compared in proportion to the population of different countries. Finland is a member of WIPO, and participates primarily through its membership in the EU. The idea of protection of intellectual property is well developed. Information on copying and copyright infringement is provided by several copyright holder interest organizations such as the Copyright Information and Anti-Piracy Center. The Business Software Alliance (BSA), a worldwide software anti-piracy organization, began operations in Finland in January 1994. Finland has been a member of the Paris Convention for the Protection of Industrial Property since 1921, the Berne Convention for the Protection of Literary and Artistic works since 1928 and the Rome International Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organizations since 1983.



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The Finnish Copyright Act, which traditionally also grants protection to authors, performing artists, record producers, broadcasting organizations and catalog producers, has been adjusted to comply with EU directives. As part of this harmonization, the period of copyright protection was extended from 50 years to 70 years. Protection for database producers (currently a part of catalog producer rights) has been defined consistent with EU practice. National transition period procedures are defined in Parliament. The Finnish Copyright Act provides for sanctions ranging from fines to imprisonment for up to two years. Search and seizure are authorized in the case of criminal piracy, as is the forfeiture of financial gains. The Copyright Act has covered computer software since 1991.

4.6.8

Transparency of the Regulatory System

The Trade Act, as well as specific legislation referred to in it, provides more detailed information on trade practices in Finland. Section V of the Trade Act names “regulated forms of trade” in which a non-EEA resident needs permission from the Ministry of Trade and Industry. Also, according to the Trade Act, everyone launching a business in Finland is obliged to submit a notice to the Trade Register, which is maintained by the National Board of Patents and Registration. The Securities Market Act contains regulations on corporate disclosure procedures and requirements, responsibility for flagging share ownership, insider regulations and offenses, the issuing and marketing of securities, and trading. The law defines and takes into account new instruments, which have become common in financial markets, such as securities lending and repurchase agreements. Finnish legislation recognizes the same internationally common financial market contractual arrangements as legislation elsewhere in EU. Regulations concerning clearing of securities trades have been incorporated in the law since 1998. Clearing has become subject to licensing, and is supervised by the Financial Supervision Authority, which oversees the financial markets. The law defines the requirements of clearing parties and their mutual responsibilities. Finnish tax, labor, health and safety, and related laws and policies are largely neutral towards the efficient mobilization and allocation of investment. Finnish legislation does not normally influence regional distribution of investments except when specifically designed to do so, such as through regional incentive programs.

4.6.9

Capital Market Risks

Credit is allocated on market terms and is made available to foreign investors in a non-discriminatory manner. The private sector has access to a variety of credit instruments. Legal, regulatory, and accounting systems are transparent and consistent with international norms.

4.6.10

Political Violence

There have been no instances of political violence since the struggle for independence in 1918.

4.6.11

Corruption

Corruption in Finland is covered by the Criminal Code (R1 101/19.12.89) and provides for sanctions ranging from fines to imprisonment for up to four years, depending on the seriousness of the crime. Both giving and accepting a bribe is considered a criminal act under the Criminal Code. Finland does not have statutory rules concerning bribes paid to foreign officials. The Finnish Parliament has started to review amendments to the criminal code with a view to eliminating the current dual criminality provision relating to the offence of bribing of a foreign public official. www.icongrouponline.com


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Corresponding payments to domestic public officials are non-deductible on the basis of case law and practice of the tax authorities. In case law, the same rule applies to bribes paid to foreign public officials and the same rule is applied by tax authorities. Finnish authorities declare that the non-deductibility of bribes is self-evident, and that the issue has never been raised in Finland. In June, 2002 the Finnish Parliament passed a government bill implementing the European Council’s Criminal Law Convention on Corruption which, when in force, would make it possible to prosecute also Members of Parliament (MPs), as well as MP candidates, and Members of the European Parliament for unlawful conduct in office, including corruption. In October 2002, Parliament gave the final formal approval to the new legislation. Previously, corruption of MPs had not been a criminal offense in Finland, and Finland had been one of the few European countries where MP’s still had immunity. Only a few persons are convicted of bribery each year in Finland. The high moral standard of Finnish civil servants, the independence in the exercise of their duties, the monitoring systems built into public administration and the transparency of Finnish society and institutions promotes an almost corruption-free environment in Finland. Transparency International has rated Finland the least corrupt country in terms of business practices (August 2002). Finland scored almost the maximum possible score, 9.7 of 10 (=highly clean). Finland ratified the 1959 European Convention on Mutual Legal Assistance in Criminal Matters and its 1978 Additional Protocol. The U.S and Finland have an extradition treaty, signed in June 1976; it entered into force in May,1980. Finland is a party to the 1957 European Convention on Extradition. Finland is a signatory to the OECD Convention on Combating Bribery. The instruments of ratification of the convention were deposited in December 1998. The amended Penal Code entered into force on 1 January 1999. The convention entered into force on 15 February 1999.

4.6.12

Bilateral Investment Agreements

Finland has concluded bilateral investment agreements with the following 45 countries: Albania, Argentina, Belarus, Bosnia-Herzegovina, Bulgaria, Chile, China, the Czech Republic, Egypt, El Salvador, Estonia, Ecuador, Hungary, India, Indonesia, Kazakhstan, Croatia, Kuwait, Latvia, Lithuania, Macedonia, Malaysia, Morocco, Mexico, Oman, Peru, Philippines, Poland, Qatar, Republic of Korea, Republic of Lebanon, Republic of Moldova, Republic of Slovenia, Romania, Russia, Slovakia, South Africa, Sri Lanka, Tanzania, Thailand, Turkey, Ukraine, United Arab Emirates, Uzbekistan, and Vietnam. In September 1989, Finland and the U.S. signed a convention (TIAS 12101) for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital. The convention entered into force December 30, 1990.

4.6.13

OPIC and Other Investment Insurance

In January 1996, OPIC and Finnvera (former Finnish Guarantee Board FGB) signed an agreement to encourage joint U.S. - Finnish private investments in Russia and the Baltic States. Under the agreement, OPIC and Finnvera will work together to enhance the development of joint ventures by promoting private investment, encouraging cooperative efforts in specific target sectors, and working jointly with appropriate authorities in the host country to promote foreign investment. OPIC is the U.S. Government agency that assists U.S. investors with project financing, political risk insurance, and privately managed equity investment funds in developing markets and emerging economies. Finnvera is a Finnish government-operated export credit guarantee agency.



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The 1996 agreement was preceded, in 1992, by a Principles of Cooperation Agreement between OPIC and the Finnish Fund for Industrial Cooperation (Finnfund). The two organizations agreed to share information concerning opportunities for private investment, exchange knowledge of techniques for the encouragement and sustenance of investment, including approaches to risk mitigation and management, and encourage cooperative enterprises among their nationals to finance private investment in developing economies. The former Soviet Union and Eastern Europe were targeted as areas of focus. Finland has been a member of the Multilateral Investment Guarantee Agency (MIGA) since 1988.

4.6.14

Labor

The Finnish labor force is highly skilled and well educated. The Act on Employment Contracts is the main regulating act applied to employment relationships. It includes the minimum conditions regarding working hours, annual leave, safety conditions etc. In addition, in most industrial sectors the employer and employee organization have concluded collective agreements on payment and working conditions. High costs have led much of Finnish industry to use labor-saving high technology whenever possible. High unemployment has made trade unions somewhat more open to discuss increased labor flexibility. Finland adheres to most ILO conventions; enforcement of worker rights is effective.

4.7 4.7.1

TRADE AND PROJECT FINANCING The Banking System

In the last few years, the Finnish banking system has undergone rapid change. The initial impetus for this process was the step-by-step deregulation of financial markets and capital movements in the 1980s as part of the overall financial integration in Europe. Then the recession in the early 1990s and a severe banking and financial sector crisis, aggravated by bad lending practices in the late 1980s, touched off a consolidation of excess banking capacity. Tighter competition ensued from Finland’s EU entry, accelerating cost cutting in the sector. Financial consolidation has been accomplished by reducing personnel, closing branch offices and introducing modern banking technology. The Finnish banking system is dominated by three major groups of deposit banks: Nordea as well as OKO Bank (the Cooperative Bank Group) and the Sampo Group. Most Finnish banks offer banking services through WAP (wireless application protocol). Customers are able to handle bank transfers, pay bills, ask for accounting info, send/receive customer mail, shop and even buy shares on the Finnish stock market using a WAP phone. The first bank in the world to offer WAP banking services was Merita Nordbanken (now Nordea). The service has been available since October 1999.

4.7.2

Foreign Exchange Control Risks

All Finnish foreign exchange controls have been abolished.



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General Financing Availability

The Finnish financial market is typical of European countries where banks and financing institutions have the dominant role, although insurance institutions play a major role in credit supply. Insurance companies, through their management of compulsory insurance schemes of the public social security system, lend a substantial part of the money back to the companies that pay the compulsory premiums. Financing is also available through the stock exchange and the government’s financing systems.

4.7.4

Financing Export Strategies

Government-owned companies or agencies provide financing and guarantees for exports. Depending on the nature of the goods exported and on the risks connected to trading partners, a portion of the export costs must be provided by the company in question. Finland prefers that, in subsidized export financing, (where Finland adheres to OECD principles), international arrangements be made with a minimum of government involvement. In addition to government activities, commercial banks provide financing, with guarantees when possible, for exports. The banks advise their customers on bank loans as well as on loans granted by other credit institutions.

4.7.5

Types of Available Export Financing and Insurance

Financing and guarantees for exports are provided for by the Sampo Group and Finnvera. Major Finnish government and other programs are detailed below.

Sampo Sampo is Finland’s first full service financial group, providing financial, investment and insurance services to its customers. The insurance company Sampo and the banking group Leonia merged at the beginning of 2001 to Sampo-Leonia and in April 2001 the name was shortened to Sampo. Sampo provides medium- and long-term financing for the export of capital goods and services from Finland to markets throughout the world. Credit structures applied by Sampo bank in export and project finance transactions are divided into buyer-credit, credit line and project finance. Credits extended by Sampo can be divided to three major groups according to the level of official support; market-term credits, OECD term-export credits and concessional credits. Sampo has in-depth expertise in structuring, arranging and financing international projects, especially in the following defined industry sectors; pulp and paper, energy and infrastructure, and telecommunications (www address: www.sampo.fi)

Finnfund: The Finnish Fund for Industrial Cooperation Similar to the U.S. government-sponsored OPIC, Finnfund promotes investments in developing countries. Finnfund acts as an agent in Finland for EU programs for the financing of investment in emerging continents. Finnfund provides equity capital as well as long-term investment loans and also participates in guarantee arrangements. In addition to financing, the corporation offers a broad range of fund-management and advisory services. Finnfund is owned by the State of Finland, Finnvera, the Confederation of Finnish Industry and Employers, and the state-owned company Solidium (Web site: www.finnfund.fi).

NIB: Nordic Investment Bank NIB is a multilateral financial institution owned by the five Nordic countries. Its head office is located in Helsinki. NIB extends loans and provides guarantees on normal banking terms for export and investment projects in line with Nordic interests. Loans and guarantees are given to investments that assure energy supply, improve infrastructure or



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support research and development. The core of NIB’s international lending consists of project investment loans, which are granted to projects with Nordic participation, usually with a government guarantee. Outside the Nordic area, NIB finances a variety of international projects, both in emerging market and the OECD countries. The bank extends credits for projects supporting economic development in the Nordic countries’ neighboring areas and for investments in parts of the world which are of mutual interest to the recipient country and the Nordic countries. (Web site: www.nib.fi).

Finnvera Finnvera is a specialized finance company promoting Finnish exports by offering export-credit guarantees and supporting domestic operations of small and medium-sized companies by offering risk financing and guarantees. Owned entirely by the Finnish State, Finnvera was formed by merging the activities of Kera Corporation and the Finnish Guarantee Board (FGB) on January 1, 1999. Finnvera’s domestic development and financing solutions are particularly geared towards small and medium- sized companies, and thus Finnvera also helps to promote the government’s regional policy objectives. Finnvera is the official Finnish export-credit agency (ECA), in addition to FIDE, providing export guarantees and insurance. Finnvera also acts as an Intermediary for financing by the EU Joint European Venture Initiative (JEV) and by the European Investment Fund. It is involved in cooperation in the OECD, EU and Berne Union. It represents Finland at meetings of the Paris Club and works in cooperation with the European Mutual Guarantee Association (EMGA). Finnvera’s export credit guarantee and insurance commitments are fully guaranteed by the state of Finland (Web site: www.finnvera.fi).

FIDE Ltd. FIDE Ltd. is a state-owned limited liability company that began operations on January 1, 1997. The Company was set up by virtue of the Act on an Interest Equalisation Company for Officially Supported Export Credits and its activities are governed by the Act on the Interest Equalisation of Officially Supported Export Credits. The Company has been accorded the Export Credit Agency (ECA) status based on international agreements. From January 1, 1999 FIDE is a subsidiary of Finnvera. FIDE Ltd. offers companies and financial institutions an internationally competitive possibility to utilize OECD-term export credits by administrating the interest equalization system and by developing the Finnish export finance system. FIDE provides companies and financial institutions with interest equalization offers and concludes interest equalization agreements with Finnish and foreign financial institutions. FIDE advises companies on the financing of exports and participates in the international co-operation of export financing, particularly in the OECD and the EU. FIDE is an internationally notified official Export Credit Agency (ECA) (Web site: www.fide.fi)

SITRA and TEKES SITRA (the Finnish National Fund for Research and Development) and TEKES (the Technology Development Center) are public financing institutions with the purpose of strengthening the role of research in economic life and promoting new products with the aim of introducing internationally competitive high-technology products and production methods. SITRA makes equity-related investments in high-tech companies during their start up and growth stages and finances management buy-outs and spin-offs from large and medium-sized companies (corporate venturing) and the incorporation of these new businesses. It is a shareholder in about 100 different technology enterprises. TEKES stimulates and coordinates research and development projects between Finnish companies, universities and research institutes and their foreign counterparts. Activities should diversify production structures, increase production and exports, and create a foundation for employment and well-being (Web site: www.sitra.fi & www.tekes.fi)

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(SMEs). Special investment and start-up aid is available for small companies in the whole country, especially in rural areas and structural adjustment areas. This subsidy can be up to 45 percent of the investment in development areas and up to 15 percent elsewhere in the country. SMEs can obtain special development aid for improving their competitiveness in the long run or operations increasing internationalization. The ceiling of aid for product development projects is 35 percent which, however, can be exceeded by 5 percentage points inside the development area. (Web site: www.ktm.fi)

4.7.6

Financing Projects

Sampo Group and Finnfund provide financing for overseas projects. The participation of third-country firms in projects is possible. The Nordic Investment Bank (NIB) can help finance projects presenting adequate security and good risk classification, both within and outside the Nordic area.

4.7.7

Banks with Correspondent Banking Arrangements

All principal Finnish banks have extensive correspondent relationships with U.S. banks, maintaining relationships with banks in every state as well as with all of the larger financial center banks. Further information on correspondent relationships can be obtained from the Finnish Bankers’ Association, P.O. Box 1009, FIN-00101 Helsinki; Tel: 358-9-4056 120, Fax: 358-9-40561-291(Web site: www.pankkiyhdistys.fi).

4.8

TRAVEL RISKS

4.8.1

Local Business Practices

Finland is a modern, commercially mature country that enjoys close relations with its Nordic neighbors. Social and business protocol is similar to that in the United States and requires no special mentions of taboos. It is worth noting that relationships are important within the social and business world, as Finns prefer to deal with people they know and trust.

Workweek The average Finnish workweek is 40 hours per week, with annual leave of 25 days, 12.5 free days, and 9 paid holidays. Part-time employment averages to 17.8 hours per week.

4.8.2

Visa Requirements and Travel Information

With the exception of Nordic (Sweden, Norway, Denmark, Iceland) citizens, citizens of EU countries (except Greece), and citizens of Switzerland, San Marino and Liechtenstein, foreigners entering Finland must have a valid passport. A tourist or business visa is not required for stays of up to three months. For non-EU citizens a visa is needed for stays exceeding 90 days. Visa applications should be submitted to a Finnish diplomatic mission before entry into Finland. A foreigner needs a residence permit in order to stay in Finland for a longer period of time. However, residence permits are also needed for short stays of less than three months if the purpose of the stay is to work in Finland. Residence permits require either a valid passport or a travel document. Foreigners must have work permits if they www.icongrouponline.com


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intend to work in Finland. Exceptions are citizens of the Nordic countries or citizens of EU/EEA countries. EUcitizens outside the Nordic countries need to apply for an EEA-card from the local police for stays exceeding 90 days. An EEA-card is a combined work and residence permit. For more travel information please go to www.travel.state.gov.

4.8.3

Infrastructure for Conducting Business

Language The two official languages in Finland are Finnish and Swedish. About 92 percent of the population speak Finnish and 5.5 percent speak Swedish. Both languages are compulsory at school. English is widely spoken in Finland, especially among younger people and in major cities.

Education and Training Services Finland invests more in education than the EU countries on average. All children aged 7-15 – even disabled – attend school in Finland. Comprehensive school is a nine-year compulsory general schooling for all children aged 7-16. The municipalities pay for teachers’ salaries, books, health care, and school meals. After completing comprehensive school, students may attend high school for three years or receive vocational education. High school prepares students for university studies. Tuition at universities is minimal. Helsinki has international, English, German, Russian, French, and Jewish schools in which classes are taught partly in foreign languages and partly in Finnish. The International, English, German and Jewish schools are private and charge tuition. University level education is mainly in Finnish, with exception of English language BBA and MBA programs in certain universities and polytechnics.

Medical Services Medical facilities are widely available. The public hospital system will not honor foreign credit cards and/or U.S. insurance coverage. However, private hospitals and clinics that accept major credit cards are widely available. Travelers have found that, in some cases, a letter from their carrier describing supplemental medical insurance with specific overseas coverage has proved useful. A foreigner is usually covered by the Finnish social security after moving to Finland, with health care as one of the benefits. Services are provided within each municipality. The quality of public health care is equivalent to care given by private doctors. In addition, the employers subsidize occupational health care.

Housing Most people in Finland own their own housing. The cost to rent an apartment varies depending on the size, age, condition and location. Rents are generally quite high, especially within the Helsinki area, and most places come unfurnished.

Food Despite prices converging with other EU levels, Finland’s price structure regarding food and household needs is the lowest of the Nordic countries and only slightly above the OECD average. Finnish food is consistent to produce that is in season, which provides an array of berries, mushrooms, seafood etc. Potatoes are a main staple and accompany most evening dishes. www.icongrouponline.com


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Country Data

Population: 5.200.000 Population growth rate: 0.2% Religions: •

Lutheran (84.6%)

•

Orthodox (1.1%)

•

No denomination (13.1%)

•

Other (1.1%)

Government system: Republic Languages: •

Finnish (92.14%)

•

Swedish (5.58%)

•

Lappish (0.03%)

•

Russian (0.64%)

•

Other (1.61%)

Length of workweek: •

38.1 h (employed full time)

•

20.1 h (part time employees)

Employment rate (persons aged 15-64): 67.7% Source: Statistics Finland

4.9 4.9.1

KEY CONTACTS U.S. Embassy Trade Personnel

Commercial Service of the United States Itainen Puistotie 14 B FIN-00140 Helsinki, Finland or PSC 78, Box H APO AE 09723 Tel: (358-9) 616 250 Fax: (358-9) 6162 5130 E-mail: [email protected]



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Economic Section Itainen Puistotie 14 B FIN-00140 Helsinki, Finland Tel: (358-9) 616 250 Fax: (358-9) 6162 5766 Defense Attache Office Itainen Puistotie 14 B FIN-00140 Helsinki, Finland Tel: (358-9) 616 250 Fax: (358-9) 6162 5808 Foreign Agricultural Service Dag Hammarskjolds Vag 31 S-115 89 Stockholm, Sweden Tel: (46-8) 783 5390 Fax: (46-8) 662 8495 E-mail: [email protected]

4.9.2

Washington-Based U.S. Government Contacts

Ms. Leah Markowitz Desk Officer for Scandinavia U.S. Department of Commerce MAC EU Office Washington, D.C. 20230 Tel: (202) 482-4414 Fax: (202) 482-2897 E-mail: [email protected] Mr. Scott Bleggi Area Director – Western Europe Foreign Agricultural Affairs U.S. Department of Agriculture Washington, D.C. 20250 Tel: (202) 690-3412 Fax: (202) 690-2909 E-mail:[email protected] U.S. Department of Agriculture Foreign Agricultural Service Trade Assistance and Promotion Office Tel: (202) 720-7420 Fax: (202) 690-4374 www.fas.usda.gov E-mail: [email protected] / [email protected] TIC Trade Information Center in Washington Tel: 1-800-USA-TRADE www.trade.gov/td/tic E-mail: [email protected] www.icongrouponline.com


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U.S. Department of State Commercial and Business Affairs (E/CBA) 2201 C Street NW, Room 2318 Washington, D.C. 20520 Tel: (202) 647-1625 Fax: (202) 647-3953 www.state.gov/www/about_state/business/index.html E-mail: [email protected] Overseas Private Investment Corporation (OPIC) 1100 New York Avenue, NW Washington, D.C. 20527 Tel: (202) 336-8400 Fax: (202) 408-9859 www.opic.gov E-mail: [email protected]

4.9.3

Chambers of Commerce

Mr. Kari Jalas Managing Director Central Chamber of Commerce P.O. Box 1000 (Aleksanterinkatu 17, WTC Helsinki) FIN-00101 Helsinki, Finland Tel: (358-9) 696 969 Fax: (358-9) 650 303 www.keskuskauppakamari.fi E-mail: [email protected] Mr. Timo Vuori Secretary General International Chamber of Commerce (ICC) Aleksanterinkatu 17, WTC Helsinki FIN-00101 Helsinki, Finland Tel: (358-9) 669 459 Fax: (358-9) 6969 6647 www.iccfin.fi E-mail: [email protected] Mr. Heikki J. Perala Managing Director Helsinki Chamber of Commerce Kalevankatu 12 FIN-00100 Helsinki, Finland Tel: (358-9) 228 601 Fax: (358-9) 2286 0228 www.helsinki.chamber.fi E-mail: [email protected] Mr. Matti Sundberg President and Chairman www.icongrouponline.com


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Finnish-American Chamber of Commerce* P.O. Box 50 00441 Helsinki, Finland Tel: (358-9) 228 28 311 Fax: (358-9) 228 28 328 www.finlandtrade.com E-mail: [email protected]

4.9.4

World Trade Center in Helsinki

Ms. Sirpa Rissa-Anttilainen Managing Director World Trade Center Helsinki P.O. Box 800 (Aleksanterinkatu 17) FIN-00100 Helsinki, Finland Tel: (358-9) 6969 2020 (358-9) 6969 2121 (trade information) Fax: (358-9) 6969 2027 www.wtc.fi E-mail: [email protected]

4.9.5

Trade Associations

Mr. Guy Wires Managing Director Federation of Finnish Commerce and Trade Mannerheimintie 76 A FIN-00251 Helsinki, Finland Tel: (358-9) 431 560 Fax: (358-9) 4315 6302 www.kaupankl.fi E-mail: [email protected] Central organization for 40 branch associations Ms. Airi Vaaranto Head of Secretariat Finnish Foreign Trade Agents’ Federation Elimaenkatu 29 FIN-00510 Helsinki, Finland Tel: (358-9) 8683 1650 Fax: (358-9) 8683 1651 www.agenttiliitto.fi E-mail: [email protected] Mr. Jari Perko Managing Director Finnish Direct Marketing Association Lonnrotinkatu 11 A FIN-00120 Helsinki, Finland



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Tel: (358-9) 2287 7400 Fax: (358-9) 6121 039 www.ssml-fdma.fi E-mail: [email protected] Mr. Leif Fagernäs Managing Director Confederation of Finnish Industry and Employers P.O. Box 30 (Etelaranta 10) FIN-00130 Helsinki, Finland Tel: (358-9) 686 81 Fax: (358-9) 6868 2316 www.tt.fi E-mail: [email protected] Mr. Martti Maenpaa Director General Technology Industries of Finland P.O. Box 10 (Etelaranta 10) FIN-00130 Helsinki, Finland Tel: (358-9) 192 31 Fax: (358-9) 624 462 www.teknologiateollisuus.fi E-mail: [email protected] Mr. Timo Poranen President Finnish Forest Industries’ Federation P.O. Box 336 (Snellmaninkatu 13) FIN-00170 Helsinki, Finland Tel: (358-9) 132 61 Fax: (358-9) 1324 445 www.forestindustries.fi E-mail: [email protected] Mr. Tapani Kaskeala President Finpro P.O. Box 358 (Porkkalankatu 1) FIN-00181 Helsinki, Finland Tel: (358-204) 6951 Fax: (358-204) 695 200 www.finpro.fi E-mail: [email protected] Ms. Sirkka Aura Chief Executive Invest in Finland Bureau Aleksanterinkatu 17, WTC Helsinki FIN-00101 Helsinki, Finland Tel: (358-9) 6969 125 Fax: (358-9) 6969 2530 www.investinfinland.fi www.icongrouponline.com


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E-mail: [email protected]

4.9.6

Finnish Government Agencies

Dr. Jaana Husu-Kallio Director, Department of Food and Health Ministry of Agriculture and Forestry Hallituskatu 3 A, P.O. Box 30 FIN-00023 Government, Finland Tel: (358-9) 160 3385 Fax: (358-9) 160 3338 www.mmm.fi E-mail: [email protected] Mr. Hannu Paju Director Employment and Economic Development Center P.O. Box 15 (Maistraatinportti 2) FIN-00240 Helsinki, Finland Tel: (358-9) 2534 2111 Fax: (358-9) 2534 2000 www.te-keskus.fi E-mail: [email protected] Dr. Osmo Maki-Petays Head of Meat Hygiene Unit National Food Agency P.O. Box 28 FIN-00581 Helsinki, Finland Tel: (358-9) 3931 5516 Fax: (358-9) 3931 590 www.elintarvikevirasto.fi/english/ E-mail: [email protected] Mr. Veikko Koskela Senior Inspector The National Board of Customs P.O. Box 512 (Erottajankatu 2) FIN-00120 Helsinki, Finland Tel: (358-9) 614 3804 (358) 20 391 100 (Customs Information) Fax: (358-9) 20 492 2852 (358) 20 492 1812 (Customs Information) www.tulli.fi E-mail: [email protected] Ms. Heli Jeskanen-Sundstrom Director General Statistics Finland Tyopajankatu 13 FIN-00022 Statistics Finland www.icongrouponline.com


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Tel: (358-9) 173 41 Fax: (358-9) 1734 2750 www.stat.fi E-mail: [email protected] Mr. Reijo Aarnio Data Protection Ombudsman Office of Data Protection Ombudsman Ministry of Justice P.O. Box 315 (Albertinkatu 25 A, 3rd fl.) FIN-00180 Helsinki, Finland Tel: (358-9) 259 8771 Fax: (358-9) 259 87735 www.tietosuoja.fi E-mail: [email protected] Mr. Pekka Järvinen Manager, Information Services Finnish Standardization Association (SFS) Maistraatinportti 2 A, 3rd fl. FIN-00240 Helsinki, Finland Tel: (358-9) 1499 3366 Fax: (358-9) 1464 925 www.sfs.fi E-mail: [email protected] or [email protected] Mr. Tuomo Ilomaki Managing Director Finnish Electrotechnical Standard Association (SESKO) P.O. Box 134 (Sarkiniementie 3) FIN-00210 Helsinki, Finland Tel: (358-9) 696 391 Fax: (358-9) 677 059 www.sesko.fi E-mail: [email protected] or [email protected] Mr. Martti Enajarvi Director General National Board of Patents and Registration of Finland Arkadiankatu 6 A FIN-00100 Helsinki, Finland Tel: (358-9) 6939 500 Fax: (358-9) 6939 5328 www.prh.fi/engl.html E-mail: [email protected] Ms. Marita Wilska Director General National Consumer Administration P.O. Box 5 (Haapaniemenkatu 4 A, 7th fl.) FIN-00530 Helsinki, Finland Tel: (358-9) 772 61 Fax: (358-9) 7726 7586 www.icongrouponline.com


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www.kuluttajavirasto.fi E-mail: [email protected]

4.9.7

Market Research Firms

Mr. Ari Heino Managing Director Research International Finland Oy Lapinlahdenkatu 3 A 14 FIN-00180 Helsinki, Finland Tel: (358-9) 6859 930 Fax: (358-9) 6859 9333 www.research-int.fi Mr. Risto Seppälä Managing Director A.C. Nielsen Finland Oy Tietajantie 14 FIN-02130 Espoo, Finland Tel: (358-9) 430 030 Fax: (358-9) 463 628 www.acnielsen.fi E-mail: [email protected] Mr. Kyosti Pietola Director of Economic Research (Professor) MTT Economic Research Luutnantintie 13 FIN-00410 Helsinki, Finland Tel: (358-9) 5608 6300 Fax: (358-9) 563 1164 www.mtt.fi/mttl/ E-mail: [email protected] Mr. Andrew Cannon Managing Director Marketing Radar LTD Lauttasaarentie 28-30 FIN-00200 Helsinki, Finland Tel: (358-9) 615 4511 Fax: (358-9) 6154 5200 www.radar.fi E-mail: [email protected]

4.9.8

Commercial Banks

Mr. Markku Pohjola Managing Director Nordea Bank Finland



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Aleksanterinkatu 36 B FIN-00020 Nordea, Finland Tel: (358-9) 1651 Fax: (358-9) 165 54500 www.nordea.com or www.nordea.fi Mr. Mikael Silvennoinen President Osuuspankkien Keskuspankki Oyj (OKO Bank) Teollisuuskatu 1 B FIN-00510 Helsinki, Finland Tel: (358-9) 4041 Fax: (358-9) 4043 703 www.okobank.com Mr. Mika Ihamuotila EVP, Head of Distribution & Banking Sampo Pankki Oyj. (Sampo Bank Plc.) Unioninkatu 22 FIN-00075 SAMPO, Finland Tel: (358-10) 5151s Fax: (358-10) 516 0051 www.sampo.com Mr. Kari Laukkanen Managing Director Citibank International Plc. Finland Branch Aleksanterinkatu 48 A FIN-00100 Helsinki, Finland Tel: (358-9) 348 87200 Fax: (358-9) 3488 7388 www.citibank.com



191

5 5.1

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END



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Renewable Energy Equipment and Services in India: A Strategic Reference, 2006

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Wireless Communication Equipment and Services in Finland: A Strategic Reference, 2006

Medical Equipment and Supplies for Cardiac Surgery in India: A Strategic Reference, 2007

Wind Energy Equipment in India: A Strategic Reference, 2006

Telecommunications Equipment in Taiwan: A Strategic Reference, 2006

Biotechnology in Japan: A Strategic Reference, 2006

Defense in Mexico: A Strategic Reference, 2006

Biotechnology in Brazil: A Strategic Reference, 2006

Biofuel Equipment and Services in Turkey: A Strategic Reference, 2007

Differentiating Surgical Equipment and Supplies

Broadband Equipment and Services in China: A Strategic Reference, 2007

Biofuel Equipment and Services in Greece: A Strategic Reference, 2007

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Electronic and Biometric Security Equipment and Services in Saudi Arabia: A Strategic Reference, 2006

Water and Wastewater Equipment and Services in Taiwan: A Strategic Reference, 2006

Air Pollution Control Equipment and Services in Brazil: A Strategic Reference, 2006

Semiconductor Production Equipment in Taiwan: A Strategic Reference, 2007

Travel and Tourism Services in Australia: A Strategic Reference, 2006

Renewable Energy Equipment and Services in India: A Strategic Reference, 2006

Nuclear Power Generating Equipment in Canada: A Strategic Reference, 2003

Telecommunication Equipment in Bulgaria: A Strategic Reference, 2007

Wind Energy Equipment in Egypt: A Strategic Reference, 2007

Renewable Energy Equipment in Poland: A Strategic Reference, 2007

Thermal Power Generating Equipment in China: A Strategic Reference, 2007

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