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2016-01-28

Työttömyysvakuutusrahasto: Työttömyysvakuutusrahasto - Unemployment Insurance Fund's (TVR) preliminary results for Year 2015

Unemployment Insurance Fund Stock Exchange Release 28 January 2016 at
15:00

Unemployment Insurance Fund's (TVR) preliminary results for Year 2015

Key points

· Unemployment insurance contributions and other income was 3.330
million euros, increase 10 %
· Benefits paid including administration expenses was 4.002 million
euros, increase 8 %
· Change in net position (profit/loss) was - 674 million euros
· Net position of the Buffer fund was - 683 million euros
· Total amount of Investments and assets was 663 million euros
· Total amount of Debt and other liabilities was 1.346 million euros
· Unemployment rate was 9,4 % (estimate), increased with 0,7 %-
points
· Investment return was 0,2 %

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| Preliminary results for Year 2015 |
| Financial performance |
| Year 2015 Year 2014 Change Change Year 2013 Change |
| EURm 2015 / 2014 2015 / 2014 2015 / 2013 |
| % % |
| |
| Unemployment insurance contributions 2 188 1 977 211 11 % 2 222 -2 % |
| Other income * 1 142 1 054 88 8 % 1 039 10 % |
| Benefits paid incl. admin. expenses -4 002 -3 706 -296 8 % -3 186 26 % |
| Investment and Financing income, net -1 3 -4 2 |
| Profit/loss -674 -672 -2 77 |
| |
| Investments and assets 663 498 165 33 % 869 -24 % |
| Debt and liabilities -1 346 -507 -839 165 % -207 550 % |
| Buffer Fund -683 -9 -674 663 -203 % |
| Statutory limit for Buffer 1 533 1 522 1 309 |
| |
| Unemployment rate % (est.) 9,4 8,7 0,7 8,2 1,2 |
| Change in wage sum % (est.) 0,8 0,6 0,2 0,8 |
| Investment return % 0,2 0,6 0,2 |
| Contribution %, employers 2,34 2,19 0,15 2,36 |
| Contribution %, employees 0,65 0,50 0,15 0,60 |
| The figures for 2015 are unaudited |
| * contributions from MSAH |
| ** includes net investment income, funding costs and other financing income |
|and costs |
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Operating environment was challenging in 2015

The performance of the Finnish economy was still rather low during 2015. GDP
growth was very small, total value of exports decreased and employment
deteriorated. The average rate of unemployment in Finland was estimated to
increase by 0,7 %- points and the total amount of benefits paid by TVR kept
rising at a steady pace. The budget for the year 2015 was determined already
in August 2014 and according to that was the yearly result expected to be a
deficit of 550 million euros. The preliminary change in the net position
(profit and loss) for the year 2015 is a deficit of 674 million euros.

Unemployment insurance contributions increased as planned

TVR managed to issue and collect Unemployment insurance contributions well
according to budget in the year 2015. The direct contribution income was
2.188 million euros, plus the funding provided by the Ministry of Social
Affairs and Health (MSAH) worth 1.134 million euros as the Government's share
of the benefits paid by TVR. The total amount of Unemployment insurance
contributions increased by 10 %.

The benefits paid by TVR were financed with substantial debt issuance

The net position of TVR became negative at the end of 2014 and the deficit
increased further in the year 2015. The Board of Directors of TVR determined
the guidelines of the debt issuance policy for the year 2015 at 16 December
2014. The debt servicing plan was implemented actively during the year 2015.
The Unemployment Insurance Fund signed a single currency revolving credit
facility agreement with six major Nordic banks in April 2015 worth 1.000
million euros. The Finnish Parliament approved a state guarantee as for its
own debt in the maximum amount of EUR 770 million for a part of the TVR's
loans under the facility agreement, and such guarantee was issued in
connection with the signing of the facility agreement. The revolving credit
facility has been unutilized during 2015.

TVR was actively issuing Debt instruments in Capital markets. Credit agency
Standard&Poor's assigned an issuer credit rating of AA+ for TVR.
Unemployment Insurance Fund transacted two senior bond issues with three and
four year maturities with the total nominal value of 900 million euros.
Addition to that issued TVR frequently commercial paper in the domestic money
markets and by that strengthened its liquidity position. European Central
Bank incorporated in July 2015 the bonds issued by TVR as part of the buying
program for public bonds (PSPP).

The liquidity of TVR was on a good level during the year 2015 and represented
on an average a level of two months benefit payments.

Outlook for the year 2016 remains weak

The number of persons unemployed is expected to increase further during the
year 2016 compared to previous year. The growth rate of unemployment might be
smaller than expected earlier. TVR estimates, that the total amount of
unemployment benefits paid is still increasing during the year 2016. The
substantial increases in the unemployment insurance contributions were
implemented in 2016 and that will have a noticeable positive effect to TVR's
contribution income during the current fiscal year. Is spite of this TVR
foresees the yearly financial result of its operations to stay negative in
2016.

Unemployment Insurance Fund is in a better capacity to give out estimates
regarding the development of unemployment in Finland and its operations in
late March 2016, when it is planning to present the Full-Year report for
2015.

On January 2016 TVR estimates, that the average unemployment rate in Finland
increases by 0,5 %- points in 2016 compared to 2015. This estimate equals the
one made by TVR in August 2015 when the budget for 2016 was determined and is
somewhat more conservative than the current consensus estimate.

Additional information:

Janne Metsämäki, Managing Director. tel. +358 40 522 3614
Tapio Oksanen, Deputy Managing Director, CFO tel. +358 40 539 4651

Helsinki, 28 January 2016

Unemployment Insurance Fund (TVR)

Tapio Oksanen
Deputy Managing Director

Distribution:
NASDAQ OMX Helsinki
Media
www.tvr.fi

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Työttömyysvakuutusrahasto via Globenewswire

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