Annual report 2015

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. The operating segments are identified on the basis of investment type/mandate, capital and resource allocation and risk assessment. Ferd is operating the following four 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: Non-listed companies, listed companies and Special Investment. Special Investments is a mandate in the initial phase.
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 286 in operating profit. The value of Ferd Capital's portfolio constitutes MNOK 10 616 at 31 December 2015 and MNOK 10 317 at 31 December 2014 measured at fair value.
 
   
Ferd Capital's largest investments as of 31 Descember 2015 are:
 
               
- Elopak (100 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 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.
 
- TeleComputing (96 percent stake) is a leading supplier of IT services to small and medium-sized enterprises in Norway and Sweden. The company supplies netbased applications and customised operating and outsourcing services.
 
- Interwell (58 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 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 (95 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 (100 percent stake). Servi develops and manufactures customer specific hydraulics systems, cylinders and vents to the offshore, maritime and land based industries.
 
- Petroleum Geo-Services (10,1 percent stake). Petroleum Geo-Services (PGS) supplies seismology, electro-magnetic services and reservoir analyses to oil companies engaged in offshore operations all over the world.
 
- Fjord Line (38,5 percent stake). Fjord Line is a modern shipping company offering safe and comfortable sea transport between Norway, Denmark and Svweden. 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.
 
               
*) The TeleComputing business was sold in 2016, and operations are not included in the segment information of Ferd Capital for 2015. The income statement items for 2014 have been correspondingly restated for presentation purposes. Note 33 has more information.
 
               
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 oncentrates on the companies in which they invest and their development.
 
               
Ferd Hedge Fund comprises two mandates: Hedge funds investing in various types of hedge funds managed by hedge fund environments abroad. 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 Hedgefond can invest in externally managed opportunities not suitable for the hedge funds portfolio, but are attractive in view of Ferd's total portfolio and contribute to spread risk in the Group.
 
               
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 comprises investments in externally managed private equity funds and hedge funds acquired in the second-hand market. These investments do no require much daily follow-up and are therefore monitored by management. 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 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
399 805
481 262
 
             
 
Operating expenses excl. depreciation and impairment
12 132 630
11 996 794
9 181
11 503
46 843
68 310
 
EBITDA
3 081 233
771 801
1 410 391
133 127
352 962
412 952
 
               
Depreciation and impairment
773 269
770 004
 
68
2 153
1 045
 
Operating profit
2 307 964
1 797
1 410 391
133 060
350 809
411 908
 
             
 
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
39 239
1 410 391
133 060
347 915
411 908
 
               
Balance sheet as at 31 December 2015
             
Intangible assets
3 153 719
3 153 719
 
 
 
 
 
Tangible assets and investment properties
4 411 260
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 asset
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
6 674 348
5 963 617
27 259
19 947
326 031
337 495
 
Total assets
32 238 793
14 720 767
6 298 833
3 948 859
3 462 670
3 807 664
 
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 2014
             
Sales income
11 852 804
11 851 557
 
 
1 247
 
 
Income from financial investments
599 704
-1 291 897
665 319
96 164
78 267
1 051 850
 
Other income
277 624
32 206
 
48
244 962
407
 
Operating income
12 730 131
10 591 866
665 319
96 213
324 476
1 052 258
 
               
Operating expenses excl. depreciation and impairment
10 872 651
10 741 804
8 694
8 248
36 779
77 126
 
EBITDA
1 857 480
- 149 938
656 625
87 965
287 697
975 132
 
               
Depreciation and impairment
540 968
535 748
40
45
3 989
1 146
 
Operating profit
1 316 513
- 685 685
656 585
87 919
283 707
973 986
 
               
Income on investments accounted for by the equity method
30 367
33 211
 
 
- 2 843
 
 
Result before finance items and income tax expense
1 346 880
- 652 475
656 585
87 919
280 864
973 986
 
               
Balance sheet at 31 December 2015
             
Intangible assets
4 117 955
4 116 955
 
 
1 000
 
 
Tangible assets and investment properties
4 823 075
2 166 416
 
 
2 649 138
7 521
 
Investments accounted for by the equity method
442 250
312 318
 
 
129 932
 
 
Investments classified as current asset
14 361 391
1 438 482
5 645 279
2 869 671
348 035
4 059 924
 
Bank deposits 1)
1 320 725
1 520 642
11 390
- 157 173
- 178 796
124 662
 
Other assets
5 819 699
4 607 573
3 769
146 700
408 314
653 343
 
Total assets
30 885 095
14 162 386
5 660 439
2 859 197
3 357 622
4 845 450
 
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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