The operating principles of finance

The key long-term targets of Fingrid's financial control are:

• Good cost efficiency and continuous improvement of productivity to maintain service pricing on a moderate level. The company aims at being among the most cost-efficient TSOs in Europe and maintaining its main grid pricing among the three most affordable in its peer group (companies with similar grids);
• High credit rating to ensure the availability of long-term decentralised funding, affordable funding costs and good debt repayment capacity;
• Creating shareholder value, which is achieved by maintaining the company's adjusted income on the level allowed by regulation and paying dividends that correspond to shareholders' profit targets.
  
  

Fingrid seeks to ensure the steady price development of its services through long-term planning of the company's finances, investments, risk management and funding. Short-term financial targets do not guide investment decisions or any other decision making. The company's annual placement at the top of international benchmark studies measuring the cost efficiency and quality of main grid operations and the international asset management certificate granted to the company are indications of the cost efficiency of operations and efficient management of cost and other risks relating to main grid assets. 

Fingrid generally sets transmission prices for one year at a time; when market-based uncertainties prevail, however, the company strives for development that is as steady as possible. If market fluctuations are large, it may be necessary to adjust prices up or down during an individual year.

A significant proportion of profits collected by Fingrid is used for investments in Finland. Furthermore, the company's profits are directed to, for example, the operations of service providers, personnel salaries, compensations to landowners and financiers, taxes, and finally, as reasonable dividends, to shareholders, i.e. the state and domestic pension and insurance companies. 

 * The Board of Directors' proposal to the Annual General Meeting on the maximum dividend to be distributed.