Annual report 2016

NOTE 3
SEGMENT REPORTING
         
             
Ferd's segment reporting complies with IFRS 8. Ferd is an investment company, and the Company's management makes decisions, monitors and evaluates these decisions based on the development in value and fair value of the Company's investments.
             
Ferd has four commercial business areas:
             
Ferd Capital is a long-term investor working actively with the companies during the period of ownership to secure the development in value to be the best possible. Ferd Capital comprises three mandates: Private companies, public companies and Special Investments.
 
Those companies where Ferd Capital has control, are consolidated into the group accounts, and the segment reporting in the consolidated financial statements consequently comprises the consolidated results from these companies, in addition to value changes and management costs on non-consolidated companies and other investments. The value of the investments and the value changes are included in Ferd AS' company accounts, where Ferd Capital reports MNOK 1 788 in operating profit. The value of Ferd Capital's portfolio constitutes MNOK 13 515 at 31 December 2016 and MNOK 10 616 at 31 December 2015 measured at fair value.
             
Ferd Capital's largest investments as of 31 December 2016 are:
             
- Elopak (100.0 percent stake) is one of the world's leading manufacturers of packaging systems for fluid food articles. With an organisation and cooperating partners in more than 40 countries, the company's products are sold and marketed in more than 100 countries.
- Aibel (49.4 percent stake) is a leading supplier to the international upstream oil and gas industry concentrating on the Norwegian shelf. The company is engaged in operating, maintaining and modifying offshore and land based plants, and is also supplying complete production and processing installations.
- Interwell (58.1 percent stake) is a preeminent Norwegian supplier of high-tech well tools to the international oil and gas industry. The company's most important market is the Norwegian shelf, but it has in recent years also gained access to several significant markets internationally.
- Swix Sport (100.0 percent stake) is developing, manufacturing and marketing ski wax, ski sticks, accessories and textiles for sporting and active leasure time use. The company has extensive operations in Norway and abroad.
- Mestergruppen (78.4 percent stake) is a prominent actor in the Norwegian building materials market concentrating on the professional part of the market. The company's operations include the sale of building materials and developing land and projects, housing and cottage chains.
- Servi (99.5 percent stake) develops and manufactures customer specific hydraulics systems, cylinders and vents to the offshore, maritime and land based industries.
- Fjord Line (44.6 percent stake) is a modern shipping company offering sea transport between Norway, Denmark and Sweden. In addition to passenger traffic, Fjord Line has adequate capacity for freight of all types of utility vehicles handled by the shipping company's cargo departments in Norway and Denmark.
- Petroleum Geo-Services (10.6 percent stake) supplies seismology, electro- magnetic services and reservoir analyses to oil companies engaged in offshore operations all over the world.
- Scatec Solar (12.5 percent stake) develops, builds, owns and operates solar energy plants all over the world.
- Benchmark Holdings (11.1 percent stake) contributes to improving fish health within fish farming by manufacturing special meal, roe and vaccines.
             
Ferd Invest mainly invests in listed Nordic limited companies. The ambition is to beat a Nordic share index (the MSCI Nordic Mid Cap Index). The investment team is not focusing on the reference index in the management of the portfolio, but concentrates on the companies in which they invest and their development.
             
Ferd Hedge Fund has two mandates: Hedge funds investing in various types of hedge funds managed by external hedge fund environments. The aim is to achieve an attractive risk-adjusted return, both in absolute terms and relatively to the hedge fund index (HFRI FoF: Conservative Index). In the Global Fund Opportunities mandate (GFO), Ferd Hedge Fund can invest in externally managed opportunities not suitable for the hedge funds portfolio.
             
Ferd Real Estate is an active property investor responsible for the Group's efforts concerning property. Developments mainly take place within housing projects, new office buildings and warehouse/combined buildings. The projects are partly carried out in-house, partly together with selected external cooperating partners. Investments concerning financial property only are also made.
             
Other areas mainly comprise investments in externally managed private equity funds and hedge funds acquired in the second-hand market. Other areas also comprise some financial instruments to be utilised by management to adjust the total risk exposure. Costs to the company's management, staff and in-house bank are also included.
             
             
NOK 1 000
Ferd AS Group
Ferd Capital
Ferd Invest
Ferd Hedge Fund
Ferd Real Estate
Other areas
Result 2016
           
Sales income
14 185 117
14 184 120
-
-
997
-
Income from financial investments
76 357
196 203
- 523
-59 429
-8 070
-51 823
Other income
760 980
25 534
-
-
731 512
3 934
Operating income
15 022 454
14 405 857
- 523
-59 429
724 439
-47 889
             
Operating expenses excl. depreciation and impairment
13 402 215
13 211 083
11 302
13 833
73 609
92 388
EBITDA
1 620 239
1 194 773
-11 825
-73 262
650 830
-140 277
             
Depreciation and impairment
659 037
653 677
-
-
4 032
1 328
Operating profit
961 202
541 096
-11 825
-73 262
646 797
-141 605
             
Income on investments accounted for by the equity method
56 613
57 065
-
-
- 452
-
Result before finance items and income tax expense
1 017 815
598 162
-11 825
-73 262
646 346
-141 605
             
Balance sheet as at 31 December 2016
           
Intangible assets
3 802 321
3 802 321
-
-
-
-
Tangible assets and investment properties
4 893 835
2 086 093
-
-
2 801 037
6 706
Investments accounted for by the equity method
551 317
386 488
-
-
164 830
-
Investments classified as current assets
16 258 553
4 211 231
5 262 505
3 707 612
478 330
2 598 875
Bank deposits 1)
1 628 513
1 219 606
12 031
-67 344
-83 647
547 868
Other assets
7 187 421
5 084 474
8 501
142 972
1 720 357
231 117
Total assets
34 321 961
16 790 212
5 283 037
3 783 240
5 080 906
3 384 566
1) The business area's net withdrawals from the bank accounts are included here.
             
NOK 1 000
Ferd AS Group
Ferd Capital
Ferd Invest
Ferd Hedge Fund
Ferd Real Estate
Other areas
Result 2015
           
Sales income
12 912 698
12 910 948
-
-
1 750
-
Income from financial investments
1 985 920
-177 017
1 419 511
144 773
119 783
478 870
Other income
315 246
34 665
60
- 143
278 272
2 392
Operating income
15 213 863
12 768 596
1 419 571
144 630
399 804
481 262
             
Operating expenses excl. depreciation and impairment
12 132 631
11 996 794
9 181
11 503
46 843
68 310
EBITDA
3 081 232
771 802
1 410 390
133 127
352 961
412 952
             
Depreciation and impairment
773 269
770 004
-
68
2 153
1 045
Operating profit
2 307 964
1 798
1 410 390
133 060
350 809
411 907
             
Income on investments accounted for by the equity method
34 548
37 442
-
-
-2 894
-
Result before finance items and income tax expense
2 342 512
39 240
1 410 390
133 060
347 915
411 907
             
Balance sheet at 31 December 2015
           
Intangible assets
3 153 719
3 153 719
-
-
-
-
Tangible assets and investment properties
4 411 259
2 057 210
-
-
2 346 947
7 102
Investments accounted for by the equity method
494 635
338 967
-
-
155 668
-
Investments classified as current assets
15 652 095
2 031 641
6 218 513
3 887 561
460 530
3 053 850
Bank deposits 1)
1 852 737
1 175 613
53 061
41 352
173 494
409 217
Other assets
6 674 347
5 963 617
27 259
19 946
326 031
337 495
Total assets
32 238 792
14 720 767
6 298 833
3 948 858
3 462 670
3 807 664
1) The business area's net withdrawals from the bank accounts are included here.

Strandveien 50
1324 Lysaker

Postbox 34
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Phone 67 10 80 00
Fax 67 10 80 01

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