Statement of changes in equity

               
2011
             
               
NOK 1 000
 
Share capital
Share
premium
fund
Other
paid-in
equity
Total paid-in
equity
 
Other equity
Total other
equity
 
Total equity
               
Equity at 31 December 2010
183 268
3 057 406
809 905
4 050 579
8 345 818
8 345 818
12 396 397
       
 
   
 
Changes in principles (note 19)
       
4 283 651
4 283 651
4 283 651
               
Equity at 1 January 2011
183 268
3 057 406
809 905
4 050 579
12 629 469
12 629 469
16 680 048
               
Total comprehensive income 2011
       
- 391 319
- 391 319
- 391 319
       
 
   
 
Transactions with owners
     
 
   
 
Proposed provision for dividend
       
- 17 620
- 17 620
- 17 620
Proposed rendered group conribution
       
- 20 240
- 20 240
- 20 240
Total transactions with owners
       
- 37 860
- 37 860
- 37 860
Equity at 31 December 2011
183 268
3 057 406
809 905
4 050 579
12 200 290
12 200 290
16 250 869
               
               
2012
             
               
NOK 1 000
 
Share capital
Share premium
fund
Other
paid-in
equity
Total paid-in
equity
 
Other equity
Total other
equity
 
Total equity
               
Equity at 31 December 2011
183 268
3 057 406
809 905
4 050 579
12 200 290
12 200 290
16 250 869
       
 
   
 
Total comprehensive income 2012
       
3 631 902
3 631 902
3 631 902
       
 
   
 
Transactions with owners
     
 
   
 
Proposed provision for dividend
       
- 26 875
- 26 875
- 26 875
Proposed rendered group conribution
       
- 18 000
- 18 000
- 18 000
Equity effect of merger (note 20)
       
4 918
4 918
4 918
Total transactions with owners
       
- 39 957
- 39 957
- 39 957
Equity at 31 December 2012
183 268
3 057 406
809 905
4 050 579
15 792 234
15 792 234
19 842 813
NOTE 1
GENERAL INFORMATION AND ACOUNTING PRINCIPLES
         
             
General information
Ferd AS is a privately owned Norwegian investment company located in Strandveien 50,Lysaker. The Company is involved in long-term and active ownerships of companies with international potential,and financial activities through investments in a wide range of financial assets.
 
Ferd is owned by Johan H. Andresen and his family. Andresen is the Chair of the Board.
 
The Company's financial statements for 2012 were approved by the Board of Directors on 8 April 2013.
 
Basis for the preparation of the financial statements
Ferd AS’ financial statements are prepared in accordance with the Norwegian Accounting Act section 3-9 and regulation on simplified application of international accounting standards.
 
Summary of the most significant accounting principles
The most significant accounting principles applied in the preparation of the financial statements are described below. The accounting principles are consistent for similar transactions in the reporting periods presented,if not otherwise stated.
 
Ferd has changed the principle for measuring investments in subsidiaries from using acquisition cost to fair value in accordance with IAS 39. Note 19 has details.
 
Investments in subsidiaries
Subsidiaries are companies where the parent company Ferd AS has a controlling influence. Such influence normally exists when Ferd AS has a stake exceeding 50 % of the voting capital.
 
Subsidiaries are classified as tangible assets in the balance sheet and measured at fair value. Value changes on subsidiaries,current returns like dividend and gain or loss on the realisation of subsidiaries are recognised as net operating income in the income statement.
 
Investments in associates and joint ventures
Associates are entities over which Ferd has significant,but not controlling,influence. Significant influence implies that Ferd is involved in strategic decisions concerning the company’s finances and operations without controlling these decisions. Significant influence normally exists for investments where Ferd holds between 20 % and 50 % of the voting capital.
 
A joint venture is a contractual arrangement requiring unanimous agreement between the owners about strategic,financial and operational decisions.
 
Investments in associates and joint ventures are classified as non-current assets in the balance sheet and are recognised at fair value. Value changes on the investments,current returns like dividend and gain or loss on the realisation of investments are recognised as net operating income in the income statement.
 
Revenue recognition
Revenue is recognised when earned. The Company's revenue mainly includes rendering services to other group companies and other related parties. Income from the sale of services is recognised according to the service's level of completion,provided the progress of the service and its income and costs can be reliably measured. Revenue is presented as Other income in the income statement.
 
Foreign currency translation
The financial statements are presented in Norwegian kroner (NOK),which is the functional currency of Ferd AS. Transactions in foreign currency are recognised and measured in NOK at the date of the transaction. Monetary items in foreign currency are translated to NOK on the basis of the exchange rate at the date of the balance sheet. Gain and loss due to currency changes is recognised in the income statement.
 
Classification of financial instruments
Financial instruments constitute a substantial part of Ferd’s balance sheet and are of considerable significance for the Company's financial position and result. Financial assets and liabilities are recognised when the Company becomes a party to the contractual obligations and rights of the instrument. All financial instruments are classified in the following categories,pursuant to IAS 39,at their initial recognition:
 
1. Financial instruments at fair value and with changes in value recognised through profit and loss
2. Loans and receivables
3. Financial liabilities
 
Financial instruments are classified as held for trading and included in category 1 if acquired primarily for benefiting from short-term price fluctuations. Derivatives are classified as held for trading and as current assets.
 
Pursuant to the “fair value option” in IAS 39,financial instruments can also be classified at fair value,with changes in value recognised in the income statement. The instrument must initially be recognised at fair value with value changes through profit and loss and also meet certain criteria. The key assumption for applying the “fair value option” is that a group of financial assets and liabilities are managed on a fair value basis and that management evaluates the earnings following the same principle.
 
Loans and receivables are non-derivative financial assets with fixed or determinable payments not quoted in an active market. They are classified as current assets,unless they are expected to be realised more than 12 months after the balance sheet date. Loans and receivables are presented as trade receivables,other receivables and bank deposits in the balance sheet.
 
Financial liabilities that are not included in the category held for trading and not measured at “fair value through profit and loss” are classified as other liabilities.
 
Recognition,measurement and presentation of financial instruments in the income statement and balance sheet
 
Financial instrument transactions are recognised on the date of the agreement,which is when the Company has made a commitment to buy or dispose of the financial instrument. Financial instruments are derecognised when the contractual rights to the cash flows from the asset expire or are transferred to another party. Correspondingly,the financial instruments are derecognised when the Company on the whole has transferred the risks and rewards connected with the ownership.
 
Financial instruments at “fair value through profit and loss” are initially measured at quoted prices at the balance sheet date or estimated on the basis of measurable market information available at the balance sheet date. Transaction costs are recognised in profit or loss. In subsequent periods,the financial instruments are presented at fair value based on market values or generally accepted calculation methods.
 
Borrowings,receivables and financial liabilities are initially measured at fair value with the addition of direct transaction costs. In subsequent periods,the assets and liabilities are measured at amortised cost by using the effective interest method. Losses on loans and receivables are recognised in profit and loss.
 
Gain and loss from the realisation of financial instruments,changes in fair values and interest income are recognised in the income statement in the period they arise. Dividend is recognised as income when the Company has established the right to receive payment. Net income related to financial instruments is presented as operating income in the income statement.
 
Financial derivatives and hedge accounting
The Company applies financial derivatives to reduce any potential loss from exposures to unfavourable changes in exchange rates or interest rates. The derivates are recognised as financial instruments at fair value,and the the value changes are recognised in the income statement. Ferd does not apply hedge accounting in the financial statements.
 
Income taxes
The income tax expense includes tax payable and changes in deferred tax. Income tax on items recognised in other comprehensive income (OCI) is also recognised in OCI,and tax effects on items recognised directly in equity is also recognised in equity.
 
The tax payable for the period is calculated according to the tax rates and regulations ruling at the end of the reporting period. Deferred tax is calculated on temporary differences between book and tax values of assets and liabilities in the financial statements and any tax effects of loses carried forward at the reporting date.
 
Deferred tax assets are only recognised in the balance sheet to the extent that it is probable that there will be sufficient taxable profits to utilise the benefits of the tax reducing temporary differences. Deferred tax liabilities and assets are calculated according to the tax rates and regulations ruling at the end of the reporting period and at nominal amounts. Deferred tax liabilities and assets are recognised net when the Company has a legal right to net assets and liabilities,and is able to and intend to settle the tax obligation net.
 
Property,plant and equipment
Property,plant and equipment are measured at cost less accumulated depreciation and impairment. The cost includes expenses directly attributable to the acquisition of the asset. Expenses incurred after the acquisition are recognised as assets when future economic benefits are expected to arise from the asset and can be reliably measured,whereas current maintenance is expensed.
 
Property,plant and equipment are depreciated on a straight-line basis over their expected useful lives. If indications of impairment exist,the asset is tested for impairment.
 
Impairment
Property,plant and equipment is considered for impairment when there are indications to the effect that future earnings cannot support the carrying amount.
 
The difference between the carrying value and recoverable amount is charged to the income statement as a write-down. The recoverable amount is the higher of an asset's fair value less costs to sell and its value in use. Fair value less costs to less is the amount that can be recovered at a sale of an asset in a transaction performed at arm’s length between well informed and voluntary parties,less costs to sell. The value in use is the present value of future cash flows expected to be generated by an asset or a cash-generating unit. Impairment losses are subsequently reversed when the impairment indicator no longer exists.
 
Leasing
Leases are classified either as operating or finance leases based on the actual content of the agreements. Leases under which the lessee assumes a substantial part of risk and return are classified as finance leases. All of the Company's present leases are classified as operating leases.
 
Leasing costs in operating leases are charged to the income statement when incurred and are classified as other operating expenses.
 
Trade and other receivables
Current receivables are initially recognised at fair value. In subsequent periods,provisions for actual and possible losses are considered. The Company reviews the receivables on a regular basis and prepares estimates for losses as a basis for the provisions in the balance sheet.
 
Cash and cash equivalents
Cash and cash equivalents include cash,bank deposits and other short-term and easily realisable investments that will fall due within 3 months,also including restricted funds. Bank overdraft is presented as short-term debt to finance institutions in the balance sheet. In the statement of cash flows,the overdraft facility is included in cash and cash equivalents.
 
Pension costs and pension funds/obligations
Defined benefit plans
A defined benefit plan is a pension scheme defining the pension payment an employee will receive at the time of retirement. The pension is normally determined as a part of the employee's salary. The Company's net obligation from defined benefit pension plans is calculated separately for each scheme. The obligation represents an estimate of future retirement benefits that the employees have earned at the balance sheet date as a concequence of their service in the present and former period. The benefits are discounted to present value reduced by the fair value of the pension funds.
 
The net pension cost of the period is included in payroll costs and comprises the total of the benefits earned during the year,the interest cost on the liability,the expected yield of the pension funds and the accrued social security tax. Estimate deviations are recognised as other income and expenses in the statement of comprehensive income.
 
Changes in defined benefit obligations due to changes in pension schemes are recognised over the estimated average remaining service period when the changes are not immediately recognised. Gain or loss on a curtailment or settlement of a plan is recognised in the income statement when the curtailment or settlement occurs. A curtailment occurs when the Company decides to reduce significantly the number of employees covered by a plan or amends the terms of a defined benefit plan to the effect that a significant part of the current employees’ future earnings no longer qualify for benefits or will qualify for reduced benefits only.
 
Provisions
A provision is recognised when the Company has an obligation as a result of a previous event,it is probable that a financial settlement will take place and the amount can be reliably measured. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period,discounted at present value if the discount effect is significant.
 
Current liabilities
Accounts payable and other current liabilities are initially recognised at fair value and subsequently measured at amortised cost. Accounts payable and liabilities are classified as current when they fall due within 12 months after the balance sheet date or are integrated in the Company’s ordinary operating activities.
 
Dividend
Dividend and the distribution of group contribution proposed by the Board is recognised as current liabilities pursuant to the exemption in the regulation to the Norwegian Accounting Act section 3-9.
 
Business areas
Ferd reports business areas in line with how the Company`s management makes,monitors and evaluates its decisions. The segments are identified based on whose results are regularly reviewed by management and used for allocation of capital and other resources,and assess performance.
 
Cash flow statement
The cash flow statement has been prepared using the indirect method,implying that the basis used is the Company’s profit before tax to present cash flows generated by operating activities,investing activities and financing activities respectively.
 
Related parties
Parties are considered to be related when one of the parties has the control,joint control or significant influence over another party. Parties are also related if they are subject to a third party’s control,or one party can be subject to significant influence and the other joint control. A person or member of a person’s family is related when he or she has control,joint control or significant influence over the business. Companies controlled by or being under joint control by key executives are also considered to be related parties. All related party transactions are completed in accordance with written agreements and established principles.
 
New accounting standards according to IFRS
The financial statements have been prepared in accordance with standards approved by the International Accounting Standards Board (IASB) and International Financial Reporting Standards - Interpretations Committee (IFRIC) effective for accounting years starting on 1 January 2012 or earlier.
 
New and amended standards applied by Ferd effective from the accounting year 2012:
Amendments to IAS 1 Presentation of Financial Statements
The amendments include a requirement to group income and expenses in total comprehensive income on the basis of whether there is a potential for reclassifying them to the income statement or not. The amendment has had an impact on the presentation of comprehensive income and the statement of changes in equity.
 
Amendment to IFRS 7 Financial Instruments - disclosures
The amendment concerns disclosure requirements in connection with transfers of financial assets where the Company still has an involvement. The amendment has no significant impact for Ferd AS.
 
Amendments to IAS 12 Income Taxes
Under the amendments the measurement of deferred tax liability is required to reflect the tax consequences of recovering the carrying amount of an investment property entirely through sale. The changes have had no impact for the financial statements of Ferd AS.
 
New and amended standards not yet implemented by Ferd:
Amendments to IAS 19 Employee Benefits
In the changed IAS 19,the ”corridor method” is not allowed for the recognition of actuarial gains/losses. Actuarial gains/losses shalI in their entirety be recognised in other comprehensive income in the period they arise. Ferd does not apply the corridor method,hence this change has no impact for Ferd.
 
The amended IAS 19 also a new approach to presenting pensions
The pension earnings shall be presented in the income statement as salary expenses,whereas net interest can be included in the finance items. In addition,in benefit schemes net interest shall be calculated by applying the discount interest rate on the net obligation,i.e.,the pension obligation less earned funds. This implies that return shall no longer be calculated on the funds. The changes are effective for acounting years starting on 1 January 2013. Ferd expects to implement the amended standard from this date.
 
Amendment to IFRS 7 Financial Instruments- disclosures
The amendment implies that enterprises must provide a number of quantitative information related to setting-off financial assets against financial liabilities. The amendment is effective for accounting years starting on 1 January 2013. The Company expects to implement the changed standard from this date,but the changes are expected to have no or very limited impact for Ferd AS.
 
Amendments to IAS 32 Financial Instruments – presentation
IAS 32 has been amended to clarify the set-off requirements in the standard. The changes become effective for annual periods beginning on 1 January 2014. Ferd expects to implement the amended standard from this date,but the changes are expected to have no or very limited impact for Ferd AS.
 
IFRS 9 Financial Instruments
IFRS 9 will replace the current IAS 39. The project is divided in several phases. The first phase concerns classification and measurement and has been finalised by IASB. The classification and measurement requirements for financial liabilities in IAS 39 are continued,with the exception of financial liabilities recognised at fair value with changes in value through profit and loss (the fair value option),where changes in value connected with the company’s own credit risk is separated and recognised in other income and expenses in total comprehensive income. Phase 2 concerns impairment of financial instruments and phase 3 hedge accounting,but neither has so far been completed by IASB. IFRS 9 is effective for accounting years starting on 1 January 2015,but the standard has not yet been approved by the EU. Ferd expects to implement IFRS 9 starting on 1 January 2015. Those parts of IFRS 9 that have been completed so far,have relatively limited consequences for Ferd AS.
 
IFRS 12 Disclosure of Interests in Other Entities
IFRS 12 applies to enterprises with interests in companies that are consolidated,and companies not consolidated,but in which the enterprise nevertheless is engaged. IFRS 12 combines the disclosure requequirements for subsidiaries,joint arrangements,associates and non-consolidated entities into one standard. IFRS 12 becomes effective for annual periods beginning on or after 1 January 2014 (earlier adoption is allowed),and the standard has been approved by the EU. Ferd expects to implement IFRS 12 starting on 1 January 2014,and the implementation will have an impact on Ferd's notes to the financial statements as a consequence of increased information requirements.
 
IFRS 13 Fair Value Measurement
The standard specifies principles and guidance for measuring fair value on assets and liabilities. The objective of the standard has been to establish a single source of guidance under IFRS for all fair value measurements,with a view to ensuring a common definition of fair value across all other standards and provide a uniform guidance to measuring fair value. IFRS 13 becomes effective for annual periods beginning on or after 1 January 2014 (earlier adoption is allowed),and the EU has approved the standard. Ferd expects to implement IFRS 13 starting on 1 January 2014,but it is not expected that the clarifications in IFRS 13 will have any significant consequences for Ferd.
 
Amendments to IAS 27 Separate Financial Statements (revised)
As a consequence of the new IFRS 10 and IFRS 12,amendments were made to IAS 27 coordinating this standard with the new accounting standards. IFRS 10 replaced those parts of IAS 27 that concerned consolidated financial statements. IAS 27 is now limited to accounting for the financial statements of the parent company,and will therefore not apply for the group accounts when implemented. The changes become effective for annual periods beginning on or after 1 January 2014,and the standard has been approved by the EU. Ferd expects to implement the amended standard starting on 1 January 2014.
NOTE 2
ACCOUNTING ESTIMATES AND JUDGMENTAL CONSIDERATIONS
           
               
Management has used estimates and assumptions in the preparation of the financial statements. This applies for assets, liabilities, income, expenses and disclosures. The underlying estimates and assumptions for valuations are based on historical experience and other factors considered to be relevant for the estimate on the balance sheet date. Estimates can differ from actual results. Changes in accounting estimates are recognised in the period they arise. The main balances where estimates have a significant impact on disclosed values are mentioned below. The methods for estimating fair value on financial assets are also described below.
 
Determination of the fair value of financial assets
The balance sheet of the Ferd includes a large part of financial assets at fair value. The fair value assessment of financial assets will at varying degrees be influenced by estimates and assumptions related to factors like future cash flows, the required rate of return and interest rate level. The most significant uncertainty concerns the determination of fair value of the unlisted financial assets.
 
Listed shares
Fair value on financial assets with standard terms traded in active and liquid markets are determined at noted market prices on the balance sheet date (the official closing price of the market).
 
Unlisted shares and investments in other equity instruments
The class “Unlisted shares and bonds” comprises private shares and investments in private equity funds. Fair value is determined by applying well-known valuation models. The input to the valuation models is related to future estimates and assessments of a number of factors existing on the balance sheet date.
 
Ferd is of the opinion that estimates of fair value reflect estimates and assumptions that the parties in an independent transaction are expected to consider relevant, including the factors impacting expected cash flows and the degree of risk associated with them.
 
Hedge funds
The hedge funds are managed by external parties providing Ferd with monthly, quarterly or half-yearly estimates of the fair value. The estimates are verified by independent administrators. In addition, the total return from the funds is assessed for reasonableness against benchmark indices.
 
Investments in debt instruments
The fair value of interest-bearing investments is determined on the basis of quoted prices. If such prices are not available, the investment is valued in accordance with price models based on the current yield curve and external credit ratings.
 
Derivatives
The fair value of derivatives is based on quoted market prices. If such prices are not available, the investment is valued in accordance with price models based on the current yield curve and other relevant factors.
 
Determination of the fair value of subsidiaries with properties
Ferd has subsidiaries with significant properties recognised at fair value. The fair value is based on the discounted value of future cash flows, and the estimate will be impacted by estimated future cash flows and the required rate of return. The main principles for deciding the cash flows and required rates of return are described below.
   
Future cash flows are based on the following factors:
 
1) Existing contracts
2) Expected future rentals
3) Expected vacancies
   
The required rate of return is based on a risk-free interest with the addition of a risk premium for the property.
   
The risk premium is based on:
1) Location
2) Standard
3) Expected market development
4) Rent level compared to the rest of the market
5) The tenant`s financial strength
6) Property specific knowledge
   
In the event that transactions concerning comparable properties close to the balance sheet date have taken place, these values are applied as a cross-reference for the valuation.
   
Determination of fair value of other subsidiaries
Ferd has subsidiaries with investments of the same character as Ferd AS. The fair value of these subsidiaries are set to the carrying value of equity, adjusted for non-recognised unrealised gain on the underlying investments. The underlying investments are value according to the same principles and methods as Ferd AS' direct investments.
   
Pension funds and obligations
The calculation of pension obligations implies the use of judgements and estimates on a number of financial and demographical assumptions. Note 15 has details on the assumptions used. Changes in assumptions can result in significant changes in pension obligations and funds in the balance sheet.
NOTE 3
BUSINESS AREAS
       
               
Ferd's segment reporting complies with IFRS 8. Ferd is an investment company, and the Company's management makes decisions and monitors and evaluates these decisions based on the fair value of the Company's investments and their changes in value. The operating segments are identified on the basis of capital and resource allocation. Ferd is divided into the following five business areas:
               
Ferd Capital is an active and long-term investor in privately owned and listed companies. Ferd has a general approach to investments in the area going from late-venture to "buy-out". Ferd Capital prioritises investments in companies where we have the relevant expertise. The team comprises highly qualified staff with operational experience from manufacturing, business development, finance and strategic consultancy. Ferd Capital manages the Group's long-term active equity investments, the largest investments being:
               
- Elopak (97 percent stake) is one of the world's leading manufacturers of packing 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 on all continents.
               
- TeleComputing (97 percent stake) is a leading supplier of IT services to small and medium-sized enterprises in Norway and Sweden. The company supplies a broad range of netbased applications and customised operating and outsourcing services in addition to system development, customer assistance and other consultancy services.
               
- Swix Sport (100 percent stake) is developing, manufacturing and marketing ski wax, ski poles, accessories and textiles for sporting and active leasure time use under the brands Swix, Ulvang and Bavac, Toko, Original and Lundhags. The company has extensive operations in Norway as well as abroad through subsidiaries in, i.a., Sweden, USA, Japan and Germany.
               
- Mestergruppen (94,5 percent stake) is a prominent participant in the Norwegian building materials market concentrating on the professional part of the market. The company's operations include developing land and projects, housing and cottages and the sale of building materials.
               
- Aibel (49 percent stake) is a leading supplier to the international upstream and gas industry with the emphasis 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 (34 percent stakel) 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 both in Europe and the Middle-East. The company supplies innovative plugs and packs highly in demand with the customers. The products and services are primarily utilised in the manufacturing phase and play a important role in the oil companies' efforts to secure wells or increase the exploitation rate on existing oil and gas fields.
               
Ferd Special Investments (SI) has a wide mandate to make investments, but so far only hedge fund in the second-hand market have been purchased. SI makes investments where Ferd assumes there are opportunities within this niche.
               
Ferd Hedgefond invests in types of hedge funds with varying mandates, managed by asset managers based abroad. In addition to giving a satisfactory risk-adjusted return, the business area shall ensure a risk diversification for Ferd in total.
               
Ferd Eiendom is an active property investor responsible for Ferd's investments in property. Operations include developing, leasing and managing office, warehouse and logistic properties and developing housing property for sale, mainly in the Oslo area. The projects are partly carried out internally, partly together with selected external cooperating partners. Ferd Eiendom also invests in foreign property funds.
               
Other mainly comprises investments in externally managed private equity funds that do no require much daily follow-up and are monitored by management rather than allocated to a separate business area. Hence, these securities are part of Other. Other also comprises some financial instruments management may acquire to adjust Ferd's total risk exposure. Additionally, opreating expenses related to Ferd's management and internal bank are included in Other.
               
NOK 1 000
Ferd AS
Ferd Capital
Ferd Invest
Ferd Special
Investments
Ferd Hedgefond
Ferd Eiendom
Other
Income statement 2012
             
Operating income
3 936 778
1 731 345
654 655
174 584
137 678
72 390
1 166 127
Operating expenses
- 196 627
- 91 091
- 24 005
- 12 411
- 8 292
- 13 409
- 47 418
Operating profit
3 740 151
1 640 254
630 650
162 173
129 385
58 981
1 118 709
               
Balance sheet 31 December 2012
             
Investments in subsidiaries
8 610 741
6 781 355
 
35 438
 
1 168 849
625 100
Investments classified as current assets
12 268 488
1 241 127
3 473 772
1 464 558
1 607 396
130
4 481 505
Other assets*
1 931 900
890 581
52 671
274 261
79 079
264 034
371 275
Total assets
22 811 130
8 913 063
3 526 443
1 774 256
1 686 475
1 433 013
5 477 881
               
*) The business area's net bank overdraft are included here and deducted from the other assets.
               
NOK 1 000
Ferd AS
Ferd Capital
Ferd Invest
Ferd Special
Investments
Ferd Hedgefond
Ferd Eiendom
Other
Income statement 2011
             
Operating income
- 281 051
177 668
- 653 837
131 607
- 58 985
122 967
- 470
Operating expenses
- 177 878
- 95 710
- 7 972
- 15 884
- 10 479
- 14 233
- 33 601
Operating profit
- 458 929
81 958
- 661 809
115 723
- 69 464
108 734
- 34 071
               
Balance sheet 31 December 2011
             
Investments in subsidiaries
6 483 565
4 688 261
 
29 302
 
1 129 949
636 052
Investments classified as current assets
11 427 992
1 160 771
2 895 122
1 266 352
1 582 940
130
4 522 678
Other assets*
2 059 782
492 975
- 8 496
95 351
- 104 779
317 555
1 267 177
Total assets
19 971 338
6 342 007
2 886 625
1 391 005
1 478 160
1 447 634
6 425 906
               
*) The business area's net bank overdraft are included here and deducted from the other assets.
NOTE 4
INCOME FROM FINANCIAL INVESTMENTS
             
NOK 1 000
   
Dividend and group
contributions from
financial investments *)
Unrealised value
change on
financial investments
Net gains on
sales of
financial investments
Total
             
Investments in subsidiaries
   
101 786
1 662 327
 
1 764 113
Shares and stakes in other companies
   
 
- 3 084
 
- 3 084
Listed shares
   
72 442
355 399
149 066
576 907
Unlisted shares and investments in other equity instruments
   
21 322
1 380 165
- 111 916
1 289 571
Hedge funds
   
9 131
- 120 558
138 374
26 947
Investments in debt instruments
   
- 952
265 693
- 2 117
262 625
Total 2012
   
203 730
3 539 942
173 407
3 917 079
             
NOK 1 000
   
Dividend and group
contributions from
financial investments *)
Unrealised value
change on
financial investments
Net gains on
sales of
financial investments
Total
             
Investments in subsidiaries
   
287 583
- 243 023
 
44 560
Shares and stakes in other companies
   
 
 
 
 
Listed shares
   
61 535
- 806 129
47 803
- 696 791
Unlisted shares and investments in other equity instruments
   
54 114
116 818
236 711
407 643
Hedge funds
   
 
- 184 120
207 572
23 452
Investments in debt instruments
   
5 388
- 86 697
4 194
- 77 115
Total 2011
   
408 620
-1 203 150
496 279
- 298 251
             
*) Cash distributions from private equity are mainly offset against the carrying value of the funds and are not recognised in the income statement.
NOTE 5
SALARIES AND REMUNERATIONS
         
NOK 1 000
2012
2011
 
Salaries
123 145
93 173
 
Social security tax
16 770
12 998
 
Pension costs (note 15)
4 667
11 616
 
Other benefits
3 359
3 657
 
Total
147 941
121 444
 
         
Average number of man-labour years
45
 
         
         
Salary and remuneration to Group CEO
   
NOK 1 000
Salary
Bonus
Benefits in kind
Pension
John Giverholt
2 626
0
202
911
         
The Group CEO's bonus agreement is limited to an annual salary. Bonus is based on achieved results in the Group.
         
The Group CEO participates in Ferd's collective pension schemes and is thereby entitled to a defined benefit pension. He also has an additional arrangement for a penson basis higher than 12 G and and an early retirement pension scheme giving him the opportunity to retire at the age 65.
         
The Group CEO is entitled to 9 months pay after termination of employment is he has to resign from his position.
         
Ferd AS has a receivable on the CEO of NOK 600 000, which is subject to interest on market based terms. The loan has no defined instalment plan.
         
Fees to the Board
No specific fees have been paid for board positions in Ferd AS.
NOTE 6
OTHER OPERATING EXPENSES
     
NOK 1 000
2012
2011
Lease of buildings etc.
6 006
6 090
Fees to auditors, lawyers, consultants
20 815
29 310
Travel expenses
2 243
1 461
Other expenses
17 686
18 125
Total
46 750
54 986
NOTE 7
AUDIT FEES
 
         
Specification of fees to the Company's auditors, Ernst & Young:
         
NOK 1 000
2012
2011
   
Audit fees
1 330
880
   
Other attestation services
12
 
   
Tax assistance
12
270
   
Other non-audit services
940
2 337
   
Total
2 295
3 487
   
         
Other non-audit services mainly comprise due diligence servicies and assistance in the facilitation and quality assurance of data in connection with Ferd's implementation of a new consolidation tool. All amounts are exclusive of VAT.
NOTE 8
INCOME TAXES
   
       
NOK 1 000
2012
2011
The tax expense comprises:
   
Income tax payable
1 931
 
Change in deferred tax
- 38 366
- 96 063
Tax concerning prior periods
3 122
1 348
Tax effect of net rendered group conribution
69 113
87 833
Tax expense
35 800
- 6 882
       
Reconciliation of nominal and effective tax rate
NOK 1 000
2012
2011
Result before tax
3 664 764
- 386 971
Expected tax expense according to nominal tax rate (28 %)
1 026 134
- 108 352
Non-taxable gains/losses and return on securities
- 34 861
- 136 007
Changes in value, securities
- 959 693
228 144
Adjustment of tax from prior periods
3 122
1 348
Tax effect of other permanent differences
1 098
7 986
Tax expense
35 800
- 6 882
Effective tax rate
1,0 %
4,8 %
   
 
 
Deferred tax assets and liabilites
NOK 1 000
2012
2011
Receivables
- 3 310
- 5 768
Shares and bonds
1 285
35 541
Tangible assets
6 874
8 536
Provisions
- 5 662
 
Net pensions
- 19 508
- 21 406
Balance sheet value 31 December, deferred tax asset (-)/liability (+)
- 20 320
16 903
       
Change in net deferred tax recognised in balance sheet
NOK 1 000
2012
2011
Balance sheet value 1 January
16 903
117 333
Charged in period
- 38 366
- 96 063
Tax set-off against other comprehensive income (actuarial gains/losses - pensions)
1 143
- 4 367
Balance sheet value 31 December
- 20 320
16 903
NOTE 9
TANGIBLE ASSETS
     
         
2012
       
NOK 1 000
Buildings
and land
Fixtures
and equipment
Total
Cost at 1 January
2 709
19 906
22 615
Additions
371
2 925
3 296
Disposals
 
- 765
- 765
Cost at 31 December
3 080
22 066
25 146
         
Accumulated depreciation and impairment at 1 January
 
13 262
13 262
Depreciation of the year
 
1 936
1 936
Accumulated depreciation and impairment at 31 December
 
15 198
15 198
         
Carrying amount at 31 Decmeber
3 080
6 868
9 948
         
Estimated economic life of depreciable assets
-
4-10 years
 
Depreciation method
 
Straight-line
 
         
2011
       
NOK 1 000
Buildings
and land
Fixtures
and equipment
Total
Cost at 1 January
2 709
18 351
21 060
Additions
 
3 784
3 784
Disposals
 
- 2 229
- 2 229
Cost at 31 December
2 709
19 906
22 615
         
Accumulated depreciation and impairment at 1 January
 
12 996
12 996
Depreciation of the year
 
1 448
1 448
Disposal of depreciation
 
- 1 182
- 1 182
Accumulated depreciation and impairment at 31 December
 
13 262
13 262
         
Carrying amount at 31 Decmeber
2 709
6 644
9 353
         
         
Estimated economic life of depreciable assets
-
4-10 years
 
Depreciation method
 
Straight-line
 
NOTE 10
SHARES AND STAKES EXCEEDING 10 % OWNERSHIP IN OTHER COMPANIES
 
   
 
Business office
Stake
Subsidiaries
   
Det Oversøiske Compagnie AS
Bærum
100 %
Elopak AS
Røyken
97,2%
FC Well Invest AS
Bærum
100 %
FC-Invest AS
Bærum
100 %
Ferd Aibel Holding AS
Bærum
100 %
Ferd Capital Partners AS
Bærum
100 %
Ferd Eiendom AS
Bærum
100 %
Ferd Malta Holdings ltd
Malta
100 %
Ferd MG Holding AS
Bærum
97 %
Ferd Sosiale Entreprenører AS
Bærum
100 %
Kapole II AS
Bærum
18,2%
Norse Crown Company Ltd. AS
Bærum
100 %
Swix Sport AS
Oslo
100 %
     
Non-current ownership > 10 %
   
Herkules Capital I AS
 
40,0 %
NMI AS
 
12,5 %
     
Current ownership > 10 %
   
ARKeX Ltd
 
17,3 %
CF Engine AS
 
37,9 %
Energy Ventures AS
 
31,8 %
Energy Ventures IS
 
19,1 %
Energy Ventures II AS
 
26,0 %
Energy Ventures II KS
 
22,1 %
Energy Ventures III AS
 
25,0 %
Energy Ventures III GP LP
 
25,0 %
Energy Ventures III LP
 
18,7 %
Eniram Ltd
 
27,6 %
Help Forsikring AS
 
17,0 %
Herkules Private Equity Fund I (LP-I) Limited
 
76,1 %
Herkules Private Equity Fund II (LP-I) Limited
 
74,5 %
Herkules Private Equity Fund III (LP-I) Limited
 
25,1 %
Intera Fund I
 
12,0 %
Marical Inc
 
22,4 %
Napatech AS
 
39,8 %
NRP Fleetfinance IV D.I.S
 
20,0 %
SPV Herkules II LP
 
81,5 %
Streaming Media AS
 
16,6 %
The Cloud Ltd
 
14,8 %
Vensafe ASA
 
23,1 %
NOTE 11
FINANCIAL INSTRUMENTS
               
The table below is an overview of carrying and fair value of the Company's financial instruments and their classification in the financial statements. It is the starting point for additional information on the Company's financial risk and refers to notes to follow.
               
     
Financial instruments measured at fair value over profit and loss
Financial instruments measured at amortised cost
   
NOK 1 000
 
Lending and receivables
Financial obligation
TOTAL
Fair value
   
Non-current assets
             
Investments in subsidiaries
   
8 610 741
   
8 610 741
8 610 741
Loans to group companies
     
675 967
 
675 967
675 967
Non-current shares and ownership in other companies
   
51 599
   
51 599
51 599
Other non-current receivables
     
67 040
 
67 040
67 040
Total 2012
   
8 662 340
743 007
 
9 405 347
9 405 347
Total 2011
   
6 538 248
629 637
 
7 167 885
7 167 885
               
Current assets
             
Short-term receivable on group companies
     
64 648
 
64 648
64 648
Other short-term receivables
     
131 351
 
131 351
131 351
Listed shares
   
3 476 584
   
3 476 584
3 476 584
Unlisted shares and investments in other equity instruments
   
5 574 122
   
5 574 122
5 574 122
Hedge funds
   
3 062 694
   
3 062 694
3 062 694
Investments in debt instruments
   
155 088
   
155 088
155 088
Bank deposits
     
911 028
 
911 028
911 028
Total 2012
   
12 268 488
1 107 027
 
13 375 515
13 375 515
Total 2011
   
11 427 992
1 366 109
 
12 794 101
12 794 101
               
Long-term debt
             
Long-term interest-bearing debt
       
2 493 514
2 493 514
2 493 514
Total 2012
       
2 493 514
2 493 514
2 493 514
Total 2011
       
3 323 266
3 323 266
3 323 266
               
Short-term debt
             
Trade accounts payable
       
5 378
5 378
5 378
Public duties etc.
       
9 752
9 752
9 752
Debt to group companies
       
272 498
272 498
272 498
Other short-term debt
       
11 508
11 508
11 508
Total 2012
       
299 136
299 136
299 136
Total 2011
       
222 640
222 640
222 640
               
Fair value hierachy - Financial assets and liabilities
               
Ferd classifies instruments measured at fair value in the balance sheet by a fair value hierachy. The hierarchy has the following levels:
               
Level 1: Valuation based on quoted prices in active markets for identical assets without adjustments. An active market is characterised by the fact that the security is traded with adequate frequency and volume in the market. The price information shall be continuously updated and represent expected sales proceeds. Only listed shares owned by Ferd Invest are considered to be level 1 investments.
               
Level 2: Investments where there are quoted prices, but the markets do not meet the requirements for being characterised as active. In addition, investments where the valuation can be fully derived from the value of other quoted prices, including the value of underlying securities, interest rate level, exchange rate etc. Financial derivatives like interest rate swaps and currency futures are also considered to be level 2 investments. Some funds in Ferd's hedge fund portfolio are considered to meet the requirements of level 2. These funds comprise composite portfolios of shares, unit trust funds, interest securities, raw materials and other negotiable derivatives. For such funds the value (NAV) is reported on a continuous basis, and the reported NAV is applied on transactions in the fund.
               
Level 3: All Ferd's other securities are valued on level 3. The valuation is based on valuation models where parts of the utilised information cannot be observed in the market. Securities valued on the basis of quoted prices or reported value (NAV), but where significant adjustments are required, are assessed on level 3. Shares with little or no trading, where an internal valuation is required to determine the fair value, are assessed on level 3. For Ferd this concerns all venture investments, private equity investments and funds where reported NAV need to be adjusted. A reconciliation of the movements of assets on level 3 is shown in a separate table.
               
The table shows at what level in the valuation hierarchy the different measurement methods for the Group's financial instruments at fair value is considered to be:
               
NOK 1 000
     
Level 1
Level 2
Level 3
Total 2012
Investments in subsidiaries
         
8 610 741
8 610 741
Non-current shares and ownership in other companies
         
51 599
51 599
Listed shares
     
3 476 584
   
3 476 584
Unlisted shares and investments in other equity instruments
       
6 448
5 567 674
5 574 122
Hedge funds
       
1 600 948
1 461 746
3 062 694
Investment in debt instruments
       
155 088
 
155 088
Total 2012
     
3 476 584
1 762 484
15 691 760
20 930 828
               
NOK 1 000
     
Level 1
Level 2
Level 3
Total 2011
Investments in subsidiaries
         
6 483 565
6 483 565
Non-current shares and ownership in other companies
         
54 683
54 683
Listed shares
     
2 895 122
 
 
2 895 122
Unlisted shares and investments in other equity instruments
     
9 042
 
4 548 984
4 558 026
Hedge funds
     
 
1 371 510
1 477 781
2 849 291
Investments in debt instruments
     
 
1 125 553
 
1 125 553
Total 2011
     
2 904 164
2 497 063
12 565 013
17 966 239
               
Reconciliation of movements in assets on level 3
NOK 1 000
 
Opening bal. 1 Jan. 2012
Purchases
Sales
Transfers from level 3
Recognised in P/L 2012
Closing bal. 31 Dec. 2012
Investments in subsidiaries
 
6 483 565
469 949
- 5 100
 
1 662 327
8 610 741
Non-current shares and ownership in other companies
 
54 683
     
- 3 084
51 599
Unlisted shares and investments in other equity instruments
 
4 548 984
186 454
- 390 765
- 6 448
1 229 449
5 567 674
Hedge funds
 
1 477 781
690 982
- 490 577
- 375 735
159 295
1 461 746
Total
 
12 565 013
1 347 385
- 886 442
- 382 183
3 047 987
15 691 760
               
NOK 1 000
 
Opening bal. 1 Jan. 2012
Purchases
Sales
Transfers from level 3
Recognised in P/L 2012
Closing bal. 31 Dec. 2012
Investments in subsidiaries
   
781 410
   
- 243 023
6 483 565
Non-current shares and ownership in other companies
 
38 598
16 085
   
 
54 683
Listed shares
 
6 976
 
 
 
- 6 976
 
Unlisted shares and investments in other equity instruments
 
4 928 026
215 635
- 856 169
- 6 976
268 468
4 548 984
Hedge funds
 
683 823
1 521 043
- 689 884
 
- 37 201
1 477 781
Total
 
11 602 601
2 534 173
-1 546 053
- 6 976
- 18 732
12 565 013
               
Investments in unlisted shares managed in-house are valued on the basis of an earnings multiple, adjusted by a liquidity discount reduction and the addition of a control premium. The corrections are made directly on the multiple. Finally, the equity value is calculated by deducting net interest-bearing debt.
               
Some subsidiaries are valued in the same manner as unlisted shares, cf. above. The valuation of other subsidairies is based on the companies' recorded equity and adjusted for value changes not recognised. Underlying investments are valued according to the same principles as in Ferd AS, whereas investment properties are valued by discounting future expected cash flows.
               
A significant part of venture investments constitutes companies with no positive cash flows. This implies a greater degree of uncertainty in the valuations of the companies. Valuations are based on international guidelines (EVCA guidelines), i.e., the lower of cost and fair value unless a transaction at a higher value has taken place.
               
The valuation of investments in externally managed private equity and hedge funds is based on value reports received from the funds. The hedge funds in the SI portfolio are adjusted for estimated discount on the funds based on estimates made by brokers.
 
NOTE 12
RISK MANAGEMENT - INVESTMENT ACTIVITIES
       
           
There have been no significant changes concerning the Company's risk management in the area during the period.
           
CAPITAL ALLOCATION AND IMPAIRMENT RISK
   
           
The capital allocation in Ferd is decided by the Board each year. The allocation of capital is one of the Board's most important responsibilities, as the return and risk to a high degree is determined by the classes of assets Ferd is investing in, and the allocation between these classes. A structured capital allocation secures a conscious relationship to the diversification and use of Ferd's capital base and ability to manage risk. Ferd's management is, on a regular basis, assessing Ferd's available risk capacity and whether the distribution of the funds at all times is in line with the assumptions and requirements that are the basis for the allocation.
           
Ferd's principal strategic allocation is seeking a balance between industrial and financial investments.
           
The allocation shall be in line with the owner's willingness and ability to take risk. One measure of this risk willingness is the size of the decline in value in kroner or per cent the owner accepts if any of the markets Ferd is exposed to should experience very heavy and quick downfalls. This has an impact on how much equity that can be invested in assets with a high risk of decline in value and is measured and followed up by stress tests.
           
The loss risk is assessed as a possible total reduction in value expressed in kroner and as a percentage of equity. Due to Ferd's long-term approach, the owner can accept significant fluctuations in value-adjusted equity.
           
CATEGORIES OF FINANCIAL RISK
   
           
Liquidity risk
   
Ferd strongly emphasises liquidity and assumes that the return from financial investments shall contribute to cover current interest costs. Hence, it is important that Ferd's balance sheet is liquid, and that the possibility to realise assets corresponds well when Ferd's debt is due. Ferd has determined that under normal market conditions, at least 4 billion kroner of the financial investments shall comprise assets that can be realised within a quarter of a year. This is primarily managed by investments in listed shares and hedge funds. Note 16 has an overview of due dates of the debt.
           
Currency risk
   
Ferd has defined intervals for exposure in Norwegian kroner, euro, USD and Swedish kroner. As long as the exposure is within these intervals, Ferd is not making any currency adjustments. If Ferd's exposure exceeds these intervals, steps are taken to adjust the exposure to the established currency curve.
           
SENSITIVITY ANALYSIS, IMPAIRMENT RISK IN INVESTMENT ACTIVITIES
           
The stress test is based on a classification of Ferd's equity in different asset classes, exposed for impairment as follows:
 
- The Norwegian stock market declines by 30 percent
- International stock market decline by 20 percent
- The market value of property declines by 10 percent
- The interest rate curve shifts by 1 percentage point
- The Norwegian krone appreciates by 10 percent
           
In order to refine the calculations, it is considered whether Ferd's investments will decline more or less than the market. As an example, it is assumed that private investments in a stress test scenario have an impairment loss of 1.5 - 2 times the market (30-60 per cent in Norway and 20-40 per cent abroad).
           
The impairment risk is presented as an impairment expressed in NOK and as a percentage of equity. The table below shows the estimated impairment risk for the last two years.
           
NOK 1 000
2012
2011
Price risk: Norwegian shares decline by 30 percent
-4 400 000
-4 100 000
Price risk: International shares decline by 20 percent
-1 100 000
- 700 000
Price risk: The market value of property declines by 10 percent
- 200 000
- 200 000
Interest rate risk: The interest rate curve increases by 1 percentage point
 
 
Currency risk: The Norwegian krone appreciates 10 percent
- 600 000
- 500 000
Total impairment in value-adjusted equity
-6 300 000
-5 500 000
           
Impairment as a % of net asset value
32 %
34 %
           
In the sensitivity analyses, Ferd's exposure in Aibel in 2012 is reduced to 49 % compared to 2011, when it amounted to appr. 80 %, as a consequence of the transaction with Ratos made in December 2012. Ferd's exposure in Pronova will not be reduced until 2013, as the sale of shares transaction takes place in the new year.
NOTE 13
BANK DEPOSITS
         
The following restricted funds are included in the bank deposits in the balance sheet:
         
NOK 1 000
2012
2011
 
Employees' withheld tax
5 518
4 130
 
NOTE 14
SHARE CAPITAL AND SHAREHOLDER INFORMATION
     
         
The share capital of the Company consists of 183.267.630 shares at a nominal value of NOK 1.-.
         
Owner structure
         
Shareholders as at 31 December 2012:
     
Number of shares
Stake
Ferd Holding AS
 
176 629 907
96,38 %
Dref Lojal AS
 
2 649 588
1,45 %
Dref Lojal II AS
 
1 381 898
0,75 %
Dref Lojal III AS
 
2 244 577
1,22 %
Dref Lojal IV AS
 
361 660
0,20 %
Total number of shares
 
183 267 630
100,00 %
         
Ferd AS is a subsidiary of Ferd Holding AS, being a subsidiary of Ferd JHA AS. Ferd shares offices with its parent companies in Lysaker, Bærum. The consolidated financial statements of the parent company are available upon request.
         
Shares indirectly owned by the CEO and board members of Ferd AS:
Position
 
Stake
Johan H. Andresen
Chair of the Board
 
15,14 %
John Giverholt
CEO/Board member
 
0,29 %
Erik Rosness
Board member
 
0,06 %
Gry Skorpen
Board member
 
0,05 %
         
The children of Johan H. Andresen own appr. 85 % of Ferd AS indirectly by ownership of shares in Ferd Holding AS.
NOTE 15
PENSION COSTS AND LIABILITIES
 
           
FERD'S PENSION PLANS
 
Ferd has established pension schemes in accordance with Norwegian legislation. The employees participate in defined benefit plans complying with the requirements of mandatory occupational pension.
           
Defined benefit plans
Defined benefit pension plans give the employees the right to determined future pension benefits. Ferd's net obligation reagarding these pension schemes is calculated separately for each scheme. The obligation is an estimate of future benefits earned by the employees, based on the number of service years and the salary level at the age of retirement. The benefits are disounted to present value, and the recognised obligation is reduced by the fair value of the pension funds for funds based pension schemes. Changes in assumptions, total number of members and deviations between estimated and actual salary increases and return on funds result in actuarial gains and losses. Such gains and losses are recognised in total comprehensive income.
           
The defined benefit plans comprise collective schemes and some additional arrangements including early retirement pension for Group mnagement. Until 2012, Ferd has also had a benefit plan for employees with a pension pension exceeding 12 G, but this scheme was replaced by a contribution plan at the end of 2012. The plan change has been recognised in the income statement.
           
Financial assumptions at 31 December
 
     
2012
2011
 
Discount rate
2,20 %
2,60 %
 
Expected return from pension assets
3,60 %
4,10 %
 
Expected wage growth
3,25 %
3,50 %
 
Future expected pension regulation
1,30 %
1,30 %
 
Expected regulation of base amount (G)
3,00 %
3,25 %
 
           
DEFINED BENEFIT PLANS
     
Specification of the recognised liability
     
NOK 1 000
2012
2011
 
Present value of unfunded pension liabilities
 
   
27 976
46 177
 
Present value of wholly or partly funded obligations
102 614
91 271
 
Total present value of defined benefit obligations
 
   
130 590
137 448
 
Fair value of pension assets
60 920
61 000
 
Total defined benefit obligation recognised in the balance sheet
69 670
76 448
 
           
Movement in the liability for defined benefit pension plans
     
NOK 1 000
2012
2011
 
Liability for defined benefit pension plans at 1 January
137 448
119 323
 
Present value of the pension earnings of the year
13 715
3 500
 
Interest expense on the pension liability
2 819
4 423
 
Actuarial gains/losses on the pension liability
- 9 017
15 597
 
Plan changes
- 9 826
 
 
Benefits paid
- 4 549
- 5 395
 
Liability for defined benefit pension plans at 31 December
130 590
137 448
 
           
Movement in fair value of pension assets for defined benefit pension plans
     
NOK 1 000
2012
2011
 
Fair value of pension assets at 1 January
61 000
56 277
 
Expected return from pension assets
2 548
2 697
 
Actuarial gains/losses on pension funds
- 4 936
 
 
Contribution from employer
6 455
5 366
 
Administration expenses
- 508
 
 
Benefits paid
- 3 639
- 3 340
 
Fair value of pension assets at 31 December
60 920
61 000
 
           
Pension assets include the following
     
NOK 1 000
2012
2011
 
Managed by insurance companies
   
60 920
61 000
 
Total pension assets
60 920
61 000
 
           
Pension costs recognised in the income statement
     
NOK 1 000
2012
2011
 
Present value of this year's pension earnings
13 715
9 890
 
Interest expense on the pension liability
2 818
4 423
 
Plan changes
- 9 826
 
 
Administration expenses
508
 
 
Expected return from pension assets
- 2 548
- 2 697
 
Total pension costs recognised in the income statement
4 667
11 616
 
NOTE 16
LONG-TERM DEBT
       
Long-term interest-bearing debt by currency
NOK 1 000
Amount in
currency 2012
Amount in
NOK 2012
Amount in
NOK 2011
NOK
 
500 000
1 200 000
USD
200 000
1 113 050
1 193 590
EUR
120 000
880 464
929 676
Balance sheet value at 31 December
 
2 493 514
3 323 266
       
Ferd has a total lending facility of NOK 5 billion, and the above debt is included therein.
       
All the long-term debt is due in 2015.
NOTE 17
TRANSACTIONS AND BALANCES WITH GROUP COMPANIES
   
       
Ferd AS has the following loans and balances with group companies:
       
NOK 1 000
2012
2011
Receivables
   
Long-term loans to group companies
675 967
628 926
Short-term receivables on group companies
64 648
82 543
Total receivables
740 615
711 469
       
Debt
   
Short-term debt to group companies
272 498
194 728
Sum gjeld
272 498
194 728
       
Alle group balances bear an interest of 6 months NIBOR + 2 % points.
Long-term loans bear interest at assumed market terms.
       
NOK 1 000
2012
2011
Services billed to group companies
   
Management fees
8 640
4 428
Property management
10 820
9 596
Total income
19 460
14 024
       
Interest income on intercompany loans
   
Interest income
53 839
51 604
Total interest income
53 839
51 604
NOTE 18
CONTINGENT AND OBLIGATIONS NOT RECOGNISED IN BALANCE SHEET
   
       
Guarantees and obligations not recognised in balance sheet
NOK 1 000
2012
2011
Unpaid, committed capital to private equity funds
828 261
1 213 456
Total
828 261
1 213 456
       
Contingent obligations and litigation
Ferd AS has been sued by Amorin in connection with Ferd's former engagement in TiMar (Portugal). In 2013, Ferd agreed to a settlement involving an insignificant amount.
NOTE 19
CHANGE OF PRINCIPLE
           
               
Ferd AS is an investment company, where measurement at fair value is key. Hence, Ferd presents financial statements with all investments at fair value. Ferd applies fair value in the daily management of the Company, in allocation of the Company's capital and when monitoring the Company's results. Pursuant to IAS 27.38, Ferd has decided to change the measurement of the subsidiaries to fair value in the statement of financial position.
               
The change of principle implies that the subsidiaries are converted to fair value at 1 January 2011, i.e., by the beginning of the first comparable period. In numbers, the consequences for 2011 of the change of principle are as follows (NOK000):
               
Shares in subsidiaries and equity increase by NOK 4 283 651 at 1 January 2011
Operating income and result for 2011 are reduced by NOK 243 023
Shares in subsidiaries and equity have increased by NOK 4 040 628 at 31 December 2011
NOTE 20
MERGER
           
               
On 27 November 2012, Ferd AS has merged with the wholly owned Kapole AS. The merger was carried out in accordance with the rules on simplified merger in the Companies Act, and no compensation was paid. As Kapole AS was fully owned by the acquiring party, the merger has been accounted for using the continuity method.
Ferd

Strandveien 50
1324 Lysaker

Postboks 34
Google maps

Phone 67 10 80 00
Fax 67 10 80 01

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