NOTE 1

GENERAL INFORMATION AND ACCOUNTING 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 consolidated financial statements

Ferd AS' consolidated financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS) as approved by the EU. This is the first year consolidated financial statements have been prepared for Ferd AS.

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.

Consolidation and consolidated financial statements

The consolidated financial statements show the overall financial results and the overall financial position for the parent company Ferd AS and entities where Ferd has a direct or indirect controlling influence. A controlling interest normally exists when Ferd AS either directly or by other controlling entities has a stake exceeding 50 % of the voting capital.

Non-controlling interests in subsidiaries are disclosed as part of equity,but separated from the equity that can be attributed to the shareholders of Ferd AS. The non-controlling interests are either measured at fair value or at the proportionate share of identified assets and liabilities.The principle for measuring non-controlling interests is determined separately for each business combination.

Subsidiaries are consolidated from the date when the Group achieves control,and are excluded when such control ceases. Should there be a change in ownership in a subsidiary without loss of control,the change is accounted for as an equity transaction. The difference between the compensation and the carrying value of the non-controlling interests are directly recognised in equity and allocated to the shareholders of Ferd AS. At a loss of control,the subsidiary's assets,liabilities,non-controlling interests and any accumulated currency differences are derecognised. Any remaining interests at the date of loss of control are measured at fair value,and gain or loss is recognised in the income statement.

Inter-company transactions,balances and unrealised internal gains are eliminated. When required,adjustments are made to the financial statements of subsidiaries to bring their accounting principles in line with those used by the Group.

Business combinations

Business combinations are accounted for by the acquisition method. This implies the identification of the acquiring company,the determination of the date for the take-over,the recognition and measurement of identifiable acquired assets,liabilities and any non-controlling interests in the acquired company,and the recognition and measurement of goodwill or gain from an acquisition made on favourable terms.

Assets,liabilities taken over and contingent liabilities taken over or incurred are measured at fair value at the acquisition date. Goodwill is recognised as the total of the fair value of the consideration,including the value of the non-controlling interests and the fair value of former owner’s share,less net identifiable assets in the business combination. Direct costs connected with the acquisition are recognised in the income statement.

Any contingent consideration from the Group is recognised at fair value at the acquisition date. Changes in the value of the contingent consideration considered to be a financial liability pursuant to IAS 39,are recognised in the income statement when incurred. At step-by-step business combinations,the Group’s former stake is measured at fair value at the date of the take-over. Any adjustments in value are recognised in the income statement.

Investments in associates and joint ventures

Associates are entities over which the Group has significant,but not controlling,influence. Significant influence implies that the Group is involved in strategic decisions concerning the company’s finances and operations without controlling these decisions. Significant influence normally exists for investments where the Group holds between 20 % and 50 % of the voting capital. Associates are accounted for in accordance with the equity method in the consolidated financial statements.

A joint venture is a contractual arrangement requiring unanimous agreement between the owners about strategic,financial and operational decisions. Joint ventures are incorporated in the consolidated financial statements using the equity method.

Investments in associates and joint ventures are classified as non-current assets in the balance sheet.

The exemption clause in IAS 28 about using the equity method for investments in associated companies owned by investment entities,and the corresponding exemption in IAS 31 for joint ventures,is the basis for presenting the investments in the business area Ferd Capital. These associates are recognised at fair value with value changes through profit and loss,and are classified as current assets in the balance sheet.

Associates and joint ventures are accounted for using the equity method,which implies that Ferd's share of associates' profit or loss is disclosed on a seperate line in the income statement. The carrying amount of the investment includes the share of total comprehensive income in the associated company. The accounting principles are adjusted to bring them in line with those of the Group. The carrying amount of investments in associates is classified as “Investments in associated companies and joint ventures”,and includes goodwill identified at the date of acquisition,reduced by any subsequent impairments.

Revenue recognition

Revenue is recognised when earned. The Group’s consolidated revenue mainly includes selling goods,rendering IT services and delivering packing systems.

Revenue from the sale of goods is recognised when the Group has transferred to the buyer the significant risks and reward of the ownership,income from the sale can be expected and the amount can be reliably measured. Revenue 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. Should the contract contain several elements,revenue from each element is recognised separately,provided that the transfer of risk and control can be separately assessed. Contracts concerning the sale of filling machines and packing materials are commercially connected,and revenue is therefore recognised in total for the contract.

Revenue is measured at fair value and presented net of rebates,value added tax and similar taxes.

At the sale of intangible and tangible assets,gain or loss is calculated by comparing the proceeds with the residual value of the sold asset. Calculated gain/loss is included in operating income or expenses,respectively.

Foreign currency translation

Transactions in foreign currency in the individual Group entities are recognised and measured in the functional currency of the entity at the transaction date. Monetary items in foreign currency are translated into the functional currency at the exchange rate prevailing at the balance sheet date. Currency differences are recognised in the income statement with the exception of currency differences on loans in foreign currencies hedging a net investment and inter-company balances considered to be part of the net investment. These differences are recognised in total comprehensive income until the investment is disposed of.

The consolidated financial statements are presented in Norwegian kroner (NOK),which is the functional currency of the parent company. When a subsidiary in foreign currency is consolidated,income and expense items are translated into Norwegian kroner at an average weighted exchange rate throughout the year. For balance sheet items,including excess values and goodwill,the exchange rate prevailing at the balance sheet date is used. Exchange differences arising when consolidating foreign subsidiaries are recognised in total comprehensive income until the subsidiary is disposed of.

Classification of financial instruments

Financial instruments constitute a substantial part of Ferd’s consolidated accounts and are of considerable significance for the overall financial standing and result of the Group. Financial assets and liabilities are recognised when the Group becomes a party to the contractual obligations and rights of the instrument. Pursuant to IAS 39,all Ferd’s financial instruments are initially classified in the following categories:

 

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 as part of category 1 if acquired primarily for benefiting from short-term price deviations. Derivatives are classified as held for trading unless they are part of a hedging instrument,another asset or liability. Assets held for trading are classified 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 statement of financial position

Purchases and sales of financial instrument transactions are recognised on the date of the agreement,which is when the Group 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 have been transferred to another party. Correspondingly,financial instruments are derecognised when the Group on the whole has transferred the risk and reqard of 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.

Loans and financial liabilities are initially measured at fair value with the addition of direct transactions costs. In subsequent periods,the assets and liabilities are measured at amortised cost by using the effective interest method. Loss on impairment of loans and receivables is recognised in the income statement.

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 income is recognised when the Group has established the right to receive payment. Net finance income related to financial instruments is classified as operating income and presented as “Income from financial investments” in the income statement.

Financial derivatives and hedge accounting

The Group applies financial derivatives to reduce any potential loss from exposures to unfavourable changes in exchange rates or interest rates. Financial derivatives related to a highly probable planned transaction (cash flow hedges) are recognised in accordance with the principles for hedge accounting when the hedge has been documented and meets the relevant requirements for effectiveness. Ferd is not applying hedge acounting of derivatives aquired to reduce risk in an asset or liabilities recognised in the balance sheet. Derivatives not qualified for hedge accounting are classified as financial instruments at fair value,and changes in value are recognised in the income statement.

Cash flow hedging is presented by recognising a change in fair value of the financial derivative applied as cash flow hedging in total comprehensive income until the underlying transaction is accounted for. The ineffective portion of the hedge is recognised immediately in profit or loss.

When the hedge instrument expires or is disposed of,the planned transaction is carried out,or when the hedge no longer meets the criteria for hedge accounting,the accumulated effect of the hedging is recognised in the income statement.

Income taxes

The income tax expense includes tax payable and changes in deferred tax. Income tax on balances recognised in other income and expenses in total comprehensive income is also set-off against other income and expenses in total comprehensive income,and tax on balances related to equity transactions are set off against 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 carrying values and tax values of assets and liabilities. Deferred tax liabilities associated with the initial recognition of goodwill in business combinations are not carried in the balance sheet. No deferred tax is recognised on those investment properties at fair value that are expected to be sold as limited companies and thereby not setting off any tax liability.

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 Group has a legal right to net assets and liabilities.

Goodwill

Goodwill is the difference between the cost of an acquisition and the fair value of the Group’s share of net assets in the acquired business at the acquisition date. Goodwill arising on the acquisition of subsidiaries is classified as intangible assets.

Goodwill is tested for impairment annually,or more often if there are indications of impairment,and carried at cost less accumulated depreciation. Impairment losses are not reversed in subsequent periods. Goodwill arising on the acquisition of a share in an associate is included in the carrying amount of the investment and tested for impairment as part of the carrying amount of the investment. Gain or loss arising from the realisation of a business includes goodwill allocated to the business sold. For the purpose of impairment testing,goodwill is allocated to the relevant cash-generating units or groups of cash-generating units that are expected to benefit from the synergies of the combinations.

Intangible assets

Intangible assets acquired separately are initially carried at cost. Intangible assets acquired in a business combination are recognised at their fair value at the time of the combination. In subsequent periods,intangible costs are recognised at cost less accumulated depreciation and impairment.

Intangible assets with a definite economic life are depreciated over their expected useful life. Normally,straight-line depreciation methods are applied,as this generally reflects the use of the assets in the most appropriate manner. This applies for intangible assets like software,customer relations,patents and rights and capitalised development costs. Intangible assets with an indefinite life are not depreciated,but tested for impairment annually. Some of the Group’s capitalised brands have indefinite economic lives.

Research,development and other in-house generated intangible assets

Expenses relating to research activities are recognised in the income statement as they arise.

In-house generated intangible assets arising from development are recognised in the balance sheet only if the following conditions are met:

• The asset can be identified.

• It is probable that the asset will generate future cash flows.

• The development costs can be reliably measured.

In-house generated intangible assets are amortised over their estimated useful lives from the date when the assets are available for use. If the conditions for capitalisation are not met,the expenses are recognised in the income statement as incurred.

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. Current maintenance is expensed.

Property,plant and equipment are depreciated systematically over their expected useful lives,normally on a straight-line basis. If indications of impairment exist,the asset is tested for impairment.

Impairment

Property,plant and equipment and intangible assets that are depreciated are considered for impairment when there are indications to the effect that future earnings cannot support the carrying amount. Intangible assets with undefined useful lives and goodwill are depreciated,but evaluated annually for impairment.

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. Other leases are classified as operating leases.

The object and liability of finance leases with the Group as the lessee is initially recognised at the lower of the object’s fair value and the present value of the minimum lease. Lease payments are apportioned between the liability and finance cost in order to achieve a constant rate of interest on the remaining balance of the liability. Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset and the lease term,provided that the Group will not assume ownership by the end of the lease term.

Finance leases with the Group as the lessor are initially recognised at the beginning of the period as a receivable equal to the Group’s net investment in the lease agreement. The lease payments are apportioned between the repayment of the main balance and finance income. The finance income is calculated and recognised as a constant periodical return on the net investment over the lease period. Direct costs incurred in connection with the lease agreement are included in the value of the asset.

Leasing costs in operating leases are charged to the income statement when incurred and are classified as other operating expenses.

Investment property

Investment properties are acquired to achieve long-term return on hiring or an increase in value,or both. Properties are measured at cost at the acquisition date,including transaction costs. In subsequent periods,investment properties are measured at fair value,based on market prices. The fair value of investment properties reflects,i.a.,rental income from existing lease contracts and the expectation of the future rental income based on the market situation on the balance sheet date.

Revenue from investment properties includes the period’s net change in value of the properties together with rental income of the period less property related costs in the same period.

Inventories

Inventories are stated at the lower of cost and net realisable value. The costs of inventories are determined on a first-in-first-out basis. The cost of finished goods and goods in progress consists of costs related to product design,consumption of materials,direct wages and other direct costs. The net realisable value is the estimated selling price less estimated variable expenses for completion and sale.

Accounts receivable and other receivables

Current receivables are initially recognised at fair value. In subsequent periods,provisions for actual and possible losses are considered. The Group 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. Restricted funds are also included. Drawings on bank overdraft are presented as current liabilities 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 Group'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 periods. 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 return of the pension funds and the accrued social security tax. Positive and negative 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 Group 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.

Defined contribution plans

Contributions to defined contribution pension plans are recognised as expenses in the income statement when the employees have rendered services entitling them to the contributions.

Provisions

A provision is recognised when the Group 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.

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 proposed by the Board is classified as equity and recognised as a liability when approved by the shareholders in a General Meeting.

Business areas

Ferd reports business areas in line with how Ferd'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 resorces,and assess performance.

Cash flow statement

The cash flow statement has been prepared using the indirect method,implying that the basis used is the Group’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 implemented by Ferd effective from the accounting year 2012:

The amendments only concern presentation and 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.

The amendment concerns disclosure requirements in connection with transfers of financial assets where the Group still has an involvement. The amendment has no significant or very limited impact for Ferd.

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 change has implied that Ferd no longer recognises deferred tax on investment properties,as it is assumed that all sales of investment properties are made as sales of shares and thereby not setting-off any tax liability.

New and amended standards not yet implemented by Ferd:

In the changed IAS 19,the ”corridor method” is not allowed for the recognition of estimate deviations. Estimate deviations shalI in their entirety be recognised in the statement of 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 has 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 finance items. In addition,net interest in benefit schemes 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 no longer shall be calculated on the funds. The changes are effective for accounting years starting on 1 January 2013. Ferd expects to implement the amended standard from this date.

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. Ferd expects to implement the changed standard from this date,but the changes are expected to have no or very limited impact for Ferd AS.

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. The Group expects to implement the amended standard from this date,but the changes are expected to have no or very limited impact for Ferd.

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 a 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.

IFRS 10 replaces the portion of IAS 27 Consolidated and Separate Financial Statements that addresses the accounting for consolidated financial statements and SIC-12 Consolidation — Special Purpose Entities. IFRS 10 establishes a single control model that applies to all entities. The content of the term “control” is somewhat changed compared to IAS 27. IFRS 10 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. In addition,IASB has issued a proposal for amending IFRS 10 concerning an exemption to consolidate investment entities. The amendmends are also expected to be effective from 1 Januar 2014. Ferd expects to implement IFRS 10 starting on 1 January 2014,but the changes are expected to have very limited consequences for Ferd.

IFRS 11 replaces IAS 31 Interests in Joint Ventures and SIC-13 Jointly-controlled Entities — Non-monetary Contributions by Venturers. IFRS 11 concerns joint arrangements and have guidelines for accounting for two different types of joint arrangements – joint operations and joint ventures. According to IFRS 11,joint ventures shall be accounted for using the equity method pursuant to IAS 28. IFRS 11 becomes effective for annual periods beginning on or after 1 January 2014,and the EU has approved the standard. Ferd intends to implement IFRS 10 starting on 1 January 2014. Ferd must analyse all joint arrangements to clarify whether there are any arrangements qualifying to be joint activities,but Ferd expects that the consequences from applying IFRS 11 will be limited.

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 requirements 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.

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.

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.

IAS 28 has been extended to include investments in joint ventures. The standard describes the accounting for such investments and how to apply the equity method. The changes become effective for annual periods beginning on or after 1 January 2014,and the standard has been approved by the EU. The Group expects to implement IFRS 10 starting on 1 January 2014,but the consequences are expected to be insignificant,as Ferd presently applies the equity method on joint ventures.

NOTE 2

ACCOUNTING ESTIMATES AND JUDGMENTAL CONSIDERATIONS

Management has used estimates and assumptions in the preparation of the consolidated 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 Group 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 external credit ratings.

Determination of the fair value of investment properties

The Ferd Group has several investment 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 determining the cash flows and required rates of return are described below.

Future cash flows are based on the following factors:

• Existing contracts

• Expected future rentals

• 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:

• Location

• Standard

• Expected market development

• Rent level compared to the rest of the market

• The tenant’s financial strength

• 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.

Impairment considerations of goodwill

Goodwill is tested annually for impairment by discounting expected future cash flows of the cash-generating unit to which goodwill is allocated. If the discounted value of future cash flows is lower than the carrying value, goodwill is written down to the recoverable amount. The impairment tests are based on assumptions of future expected cash flows and estimates of the discount interest rate.

Note 8 has details on the impairment considerations for goodwill .

Depreciation and impairment of tangible and intangible assets

Tangible and intangible assets with definite lives are recognised at cost. The acquisition cost less the residual value is depreciated over the expected useful economic life. The carrying values will depend on the the Group’s estimates on useful lives and residual values. These assumptions are estimated on the basis of experience, history and judgemental considerations. The estimates are adjusted if the expectations change.

Testing for impairment is undertaken when indicators of a permanent decline in value of tangible or intangible assets are identified. These tests are based on estimates and assumptions on future cash flows and discount interest rate.

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 17 has details on the assumptions used. Changes in assumptions can result in significant changes in pension obligations and funds in the balance sheet.

Deferred tax assets

Deferred tax assets of tax losses to carry forward and other tax-reducing differences are recognised in the balance sheet to the extent that it is probable that the deferred tax assets can be utilised against future taxable income. Management is required to use significant judgement to determine the size of the deferred tax assets recognised in the balance sheet, the basis being the expectation of the future taxable income, the expected time for utilising the deferred tax asset and future tax planning strategies.

Provision for losses on receivables

The provision for losses on receivables is estimated on the risk for not recovering the outstanding amounts due. The assessment is based on historical experience, the aging of the receivable and the counterparty’s financial situation.

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 prioritises investments in companies where we have the relevant expertise. The team comprises highly qualified staff with operational experience from active owner funds, 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 internatinally both in Europe and the Middle-East.

Ferd Invest is an active investor managing a considerable portfolio of Nordic listed shares. The business area primarily invests in individual shares, which are assumed to have a large potential, and is measured against a total Nordic index.

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 the total risk exposure. Additionally, operating expenses related to Ferd's management and internal bank are included .

NOK 1 000

Ferd AS

Group

Ferd

Capital

Ferd

Invest

Ferd Special

Investments

Ferd

Hedgefond

Ferd

Eiendom

Other

Result 2012

Sales income

Income from financial investments

Other income

Operating income

Operating expenses excl. depreciation and impairment

EBITDA

Depreciation and impairment

Operating profit

Share of profit from associated companies and joint ventures

Profit before finance items and income tax expense

Statement of financial position 31 December 2012

Intangible assets

Tangible assets and investment properties

Investments accounted for by the equity method

Investments classified as current asset

Other assets*

Total assets

*) The business area's net bank overdraft are included here and deducted from the other assets.

NOK 1 000

Ferd AS

Group

Ferd

Capital

Ferd

Invest

Ferd Special

Investments

Ferd

Hedgefond

Ferd

Eiendom

Other

Income statement 2011

Sales income

Income from financial investments

Other income

Operating income

Operating expenses

EBITDA

Depreciation and impairment

Operating profit

Income on investments accounted for by the equity method

Profit before finance items and income tax expense

Statement of financial position 31 December 2011

Intangible assets

Tangible assets and investment properties

Investments accounted for by the equity method

Investments classified as current asset

Other assets*

Total assets

*) The business area's net bank overdraft are included here and deducted from the other assets.

NOTE 4

GEOGRAPHICAL ALLOCATION OF REVENUES

NOK 1 000

2012

2011

Norway

Sweden

Germany

Netherlands

USA

Russia

Canada

Austria

Denmark

Spain

Great Britain

France

Rest of the world

Total revenue

Sales revenues are allocated on the basis of where the customers live.

NOTE 5

INCOME FROM FINANCIAL INVESTMENTS

Income from financial investments by the varous investments categories:

NOK 1 000

2012

2011

Listed shares

Unlisted shares and investments in other equity instruments

Hedge funds

Investments in debt instruments

Total income from financial investments

NOTE 6

SALARIES AND REMUNERATIONS

NOK 1 000

2012

2011

Salaries

Social security tax

Pension costs (note 17)

Other benefits

Total

Average number of man-labour years

Salary and remuneration to group management

2012

2011

NOK 1 000

Salary

Bonus

Benefits

in kind

Pension

Salary

Bonus

Benefits in

kind

Pension

Group CEO, Johan H. Andresen

(from 1 Jan. 2012 until 30 Sept. 2012)

Group CEO, John Giverholt

(from 1 Oct. 2012 until 31 Dec. 2012)

Other members of group management

(from 1 Jan. 2012 until 30 Sept. 2012)

Other members of group management

(from 1 Oct. 2012 until 31 Dec. 2012)

Sum

Ferd's group management has changed considerably during 2012. Dag Opedal resigned from group management in the spring of 2012. Effective from 1 October, Ferd was reorganised, and Johan H. Andresen and Arthur Sletteberg resigned from group management. Tom Erik Myrland became Chief Investment Director and Erik Rosness Chief Financial Officer. Former CFO,John Giverholt, became the new Group Chief Executive Officer. The above remunerations represent payment up until 1 October for the former group management and after 1 October for the new.

The Group CEO's bonus scheme is limited to one year's salary. Bonus is based on the results achieved 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 pension basis higher than 12 G and and an early retirement pension scheme giving him the opportunity to retire when he is 65.

The Group CEO is entitled to 9 months pay after termination of employment if 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. Ferd has adequate security for the loan. The loan has no defined instalment plan.

Fees to the Board

No specific fees have been paid for board positions in Ferd AS.

NOTE 7

INTANGIBLE ASSETS

NOK 1 000

2012

2011

Goodwill (note 8)

Other intangible assets

Carrying amount at 31 December

2012

NOK 1 000

Software

Brands

Patents

and rights

Capitalised

development

costs

Customer

relations

Total

Cost at 1 January

Additions

Disposals

Exchange difference

Cost at 31 December

Acc. amortisation and impairment at 1 January

Additions of amortisations at acquisitions

Current year amortisation charge

Disposals

Exchange differences

Accumulated amortisation at 31 December

Accumulated impairment at 31 December

Carrying amount at 31 December

Economic life

3-5 years

> 20 years to indefinite

3-10 years

10 years

10-15 years

Amortisation method

Straight-line

Straight-line

Straight-line

Straight-line

Straight-line

2011

NOK 1 000

Software

Brands

Patents

and rights

Capitalised

development

costs

Customer

relations

Total

Cost at 1 January

Additions

Disposals

Exchange difference

Cost at 31 December

Acc. amortisation and impairment at 1 January

Additions of amortisations at acquisitions

Current year amortisation charge

Disposals

Exchange differences

Accumulated amortisation at 31 December

Accumulated impairment at 31 December

Carrying amount at 31 December

Economic life

3-5 years

> 20 years to indefinite

3-10 years

10 years

10-15 years

Amortisation method

Straight-line

Straight-line

Straight-line

Straight-line

Straight-line

Research and development

Costs expensed to research and development in fiscal year 2012 totalled MNOK 118. The corresponding cost for 2011 was MNOK 114.

 

NOTE 8

GOODWILL AND INFORMATION ON BUSINESS COMBINATIONS

Pursuant to IFRS 3 Business combinations, the net assets of acquired companies have been assessed at fair value at the acquisition date. The remaining part of the consideration after allocating the consideration to identifiable assets and liabilities, is recognised as goodwill. The table below shows the values and movements in the the various goodwill items in the Group.

2012

NOK 1 000

Norrwin AB

(Lundhags)

Alf Valde

Elopak Europa

Seco Invest

(TeleComputing)

Total

Cost at 1 January

Additions

Disposals

Exchange differences

Cost at 31 December

Accumulated impairment at 1 January

Impairment

Disposal of subsidiary

Exchange differences

Accumulated impairment at 31 December

Carrying amount at 31 December

Changes in 2012:

In 2012, Ferd (through Swix) has acquired Norrwin AB and Original Teamwear AS with accounting effect from 1 January 2012. The acquisitions have increased intangible assets (brands and patents) by a total of MNOK 37,6 (note 7), in addition to goodwill amounting to appr. one million. The cost of the shares in Norrwin AB constituted MNOK 66,8, whereas the shares in Original Teamwear AS were purchased in two steps. Original was an associate with a carrying value of MNOK 8,8 at the beginning of 2012, and in addition MNOK 28,4 were paid in 2012. The companies have contributed to Ferd's consolidated financial statements with MNOK 142 in turnover and MNOK 19 in profit before tax in 2012.

During 2012, Ferd (through Mestergruppen) acquired Alf Valde AS with accounting effect from 1 July 2012. The acquisition has increased Ferd's goodwill by MNOK 16. The cost for the shares constituted MNOK 23. Alf Valde has contributed to Ferd's consolidated financial statements with MNOK 33 in turnover og MNOK 2 in profit before tax in 2012.

There are minor changes in the purchase price allocations of Mestergruppen and Telecomputing (acquisitions in 2011). The changes have resulted in a reduction in goodwill of MNOK 28, whereas customer relations have increased by MNOK 20 (note 7).

2011

NOK 1 000

Elopak Europa

Seco Invest

(TeleComputing)

Total

Cost at 1 January

Additions

Disposals

Exchange differences

Cost at 31 December

Accumulated impairment at 1 January

Impairment

Disposal of subsidiary

Exchange differences

Accumulated impairment at 31 December

Carrying amount at 31 December

Changes in 2011:

In 2011, Ferd acquired Mestergruppen and the Telecomputing Group (Seco Invest), effective from 1 May 2011.

The acquisition of Telecomputing has increased the Group's goodwill by MNOK 622. Before the acquisition, Ferd had a stake of 46 % and recognised the investment in Telecomputing at fair value. The acquisition of Telecomputing has also increased intangible assets of MNOK 134,8 in customer relations and MNOK 80,4 in brands as well as minor additions of patents and rights (note 7). The cost of Ferd's shares in Telecomputing was MNOK 461. The acquisition of Telecomputing has contributed positively to the Group's result before tax with MNOK 85,2 in 2011.

The acquisition of Mestergruppen has increased the Group's carrying amount of customer relations by MNOK 230,1 (note 7). The cost of Ferd's shares in Mestergruppen was MNOK 396. Mestergruppen has contributed to the Group's result before tax with MNOK 83,6 in 2011.

Impairment testing for goodwill:

Goodwill is allocated to the Group's cash generating units, and is tested for impairment annually or more frequently if there are indications of impairment. Testing for impairment implies determining the recoverable amount of the cash generating unit. The recoverable amount is determined by discounting future expected cash flows, based on the cash generating unit's business plans. The discount rate applied to the future cash flows is based on the Group's weighted average cost of capital (WACC), adjusted to the market's appreciation of the risk factors for each cash generating unit. Growth rates are used to project cash flows beyond the periods covered by the business plans.

Cash generating units

The goodwill items specified above are mainly related related to Elopak and Telecomputing, in addition to two minor goodwill items related to new acquisitions in 2012 in the sub-groups Swix and Mestergruppen.

Goodwill related to Elopak is allocated to the cash generating unit Europe, which consists of Elopak's European markets, including the internal production and supply organisation. This goodwill has a carrying value of MNOK 302 at 31 December 2012. The rationale for determining Europe as one cash-generating unit is the inherent dynamics of this market. The trend is that customers are merging, and have easy access to the supply in Europe. Elopak adapts to its customers by distributing the production of cartons for the various markets according to the optimal production efficiency in Europe. The historical geographical criteria for production and demands from customers are no longer as important. As a consequence of this development, the split of margins along Elopak's value chain will be subject to change from one year to another. Hence, one European business unit will be the best indicator for assessing any impairment of goodwill.

Goodwill related to Telecomputing concerns Telecomputing's operations in Norway and Sweden. The goodwill has a carrying amount of MNOK 594 as at 31 December 2012. For impairment purposes, Telecomputing is considered to be one cash generating unit due to similar activities.

Goodwill in Mestergruppen concerns the acquisition of Alf Valde in 2012. The goodwill amounts to MNOK 16 and is considered as a separate cash generating unit at impairment testing. This goodwill has not been tested for impairment in 2012.

Impairment testing and assumptions:

The recoverable amount for the cash generating unit is calculated on the basis of the present value of expected cash flows. The cash flows are based on assumptions about future sales volumes, selling prices and direct costs. These assumptions are based on historical experience from the market, adopted budgets and the Group's expectations of market changes. Having carried out impairment testing, the Group does not expect significant changes in current trade. This implies that expected future cash flows mainly are a continuation of observed trends.

Determined cash flows are discounted at a discount interest rate. The rate applied and other assumptions are shown below.

Calculated recoverable amounts in the impairment tests are positive, and based on the tests, the conclusion is that no impairment is required in2012. The inherent uncertainty connected with the assumptions on which the impairment testing is based is illustrated by sensitivity analyses. The conclusions are tested for changes in discount and growth rates. The sensitivity analyses show robust conclusions for impairment testing.

Detailed description of the assumptions used:

Discount rate after tax (WACC)

Discount rate before tax

Growth rate 2-5 years

Long-term growth rate

2012

2011

2012

2011

2012

2011

2012

2011

Europe

Seco Invest

The discount rate reflects the market's assessment of the risk specific to the cash generating unit. The rate is based on the weighted average cost of capital for the industry. This rate has been further adjusted to reflect the specific risk factors related to the cash generating unit, which has not been reflected in the cash flows.

The average growth rate in the period 2 to 5 years is based on Ferd's expectations for the development in the market in which the business operates. Ferd uses a stable growth rate to extrapolate the cash flows beyond 5 years.

EBITDA represents operating profit before depreciation and is based on the expected future market development. Committed operating efficiency improvement measures are taken into account. Changes in the outcomes for these initiatives may influence future estimated EBITDA.

Investment costs necessary to meet expected future growth are taken into account. Based on management's assessment, the estimated investment costs do not include investments that improve the current assets' performance. The related cash flows are treated correspondingly.

NOTE 9

TANGIBLE ASSETS

2012

NOK 1 000

Buildings and

property

Machines and

installations

Fixtures and

equipment

Total

Cost at 1 January

Additions

Disposals

Exchange differences

Cost at 31 December

Accumulated depreciation and impairment at 1 January

Accumulated depreciation on acquisition

Depreciation of the year

Impairment of the year

Derecognised depreciation

Exchange differences

Accumulated depreciation at 31 December

Accumulated impairment at 31 December

Carrying amount at 31 December

Estimated economic life of depreciable assets

5-50 years

5-15 years

3-13 years

Amortisation method

Straight-line

Straight-line

Straight-line

2011

NOK 1 000

Buildings and

property

Machines and

installations

Fixtures and

equipment

Total

Cost at 1 January

Additions

Disposals

Exchange differences

Cost at 31 December

Accumulated depreciation and impairment at 1 January

Accumulated depreciation on acquisition

Depreciation of the year

Impairment of the year

Derecognised depreciation

Exchange differences

Accumulated depreciation at 31 December

Accumulated impairment at 31 December

Carrying amount at 31 December

Estimated economic life of depreciable assets

5-50 years

5-15 years

3-13 years

Amortisation method

Straight-line

Straight-line

Straight-line

NOTE 10

OTHER OPERATING EXPENSES

NOK 1 000

2012

2011

Sales and administration costs

Lease of buildings etc.

Travel expenses

Losses and change in write-downs of trade receivables

Fees to auditors, lawyers, consultants

Other expenses

Total

NOTE 11

AUDIT FEES

Ernst & Young is Ferd's Group auditor. Some minor Group companies are audited by other audit firms.

NOK 1 000

Audit fee

Other

assurance

services

Tax services

Other

non-audit

services

Total

2012

Ernst & Young

Others

Total

2011

Ernst & Young

Others

Total

Fees are exclusive of VAT.

Other non-audit services mainly comprise due diligence services 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 12

INVESTMENTS IN ASSOCIATED COMPANIES AND JOINT VENTURES

Associates and joint ventures are accounted for using the equity method.

A list of all associates and joint ventures and shareholdings is presented in note 20.

2012

NOK 1 000

Al-Obeikan Elopak factory for Packaging Co

Elopak South Africa Ltd

Lala Elopak S.A. de C.V.

Tiedemanns-

byen DA

Harbert European Real Estate Fund II

Harbert European Real Estate Fund III

Others

Total

Ownership and voting share

Cost at 1 January

Share of result at 1 January

Accumulated impairment of goodwill at 1 January

Transfer from the company

Net exchange differences/eliminations

Carrying amount at 1 January

Additions

Disposals

Sale during the year

Share of the result of the year*

Transfers from the company

Net exchange differences/eliminations

Carrying amount at 31 December

*) Gain on the sale of Elopak South Africa Ltd constitutes 22 806.

2011

NOK 1 000

Al-Obeikan Elopak factory for Packaging Co

Elopak South Africa Ltd

Lala Elopak S.A. de C.V.

Tiedemanns-

byen DA

Harbert European Real Estate Fund II

Harbert European Real Estate Fund III

Others

Total

Ownership and voting share

Cost at 1 January

Share of result at 1 January

Accumulated impairment of goodwill at 1 January

Transfer from the company

Net exchange differences/eliminations

Carrying amount at 1 January

Additions

Disposals

Sale during the year

Share of the result of the year

Impairment of goodwill

Transfers from the company

Recognised directly in equity

Net exchange differences/eliminations

Carrying amount at 31 December

The table below shows a summary of financial information related to Ferd's largest investments in associates and joint ventures on a 100 percent basis. The stated figures represent fiscal year 2012. The figures are unaudited.

 

NOK 1 000

Al-Obeikan Elopak factory for Packaging Co

Elopak South Africa Ltd

Lala Elopak S.A. de C.V.

Tiedemanns-

byen DA

Harbert European Real Estate Fund II

Harbert European Real Estate Fund III

Operating revenue

Operating profit

Profit after tax and minority

Total assets

Total liabilities

Ownership share, transactions and balances with enterprises accounted for by the equity method:

Stake/voting share

Sales from equity investees to Ferd

Ferd's net receivables / payables towards equity investees

Ferd's guarantees to equity investees

NOK 1 000

2012

2012

2011

2012

2011

2012

2011

Al-Obeikan Elopak factory for Packaging Co

Boreal GmbH

Elocap Ltd.

Elopak South Africa Ltd

Frogn Næringspark AS

Harbert European Real Estate Fund II

Harbert European Real Estate Fund III

Hunstad Sør Tomteselskap AS

Impresora Del Yaque

Kråkeland Hytteservice AS

Lala Elopak S.A. de C.V.

Lofoten Tomteselskap AS

Madla Byutvikling AS

Nordic Material Purchase AB

Original AS

Solheim Byutviklingselskap AS

Tastarustå Byutvikling AS

Tiedemannsbyen DA

Total

NOTE 13

SPECIFICATION OF FINANCE INCOME AND EXPENSE

Finance income

NOK 1 000

2012

2011

Interest income from bank deposits

Interest income from related parties

Other interest income

Foreign exchange gain and other finance income

Total

Finance expense

NOK 1 000

2012

2011

Interest expense to finance institutions

Interest expense to related parties

Other interest expense

Foreign exchange loss and other finance expenses

Total

None of the financial items originate from financial instruments measured at fair value.

NOTE 14

INCOME TAXES

Specification of income tax expense

NOK 1 000

2012

2011

Tax payable of net profit

Income tax payable for the year

Adjustments of prior periods

Total tax payable

Deferred tax expense

Change in deferred tax recognised in the income statement

Effects of changes in tax rates and prior years' taxes

Total deferred tax

Income tax expense

Reconciliation of nominal to effective tax rate

NOK 1 000

2012

2011

Profit before tax

Estimated income tax expense at nominal tax rate (28 %)

Losses and other deductions without any net tax effect

Non-taxable income related to securities

Other non-taxable income, incl. value changes in investment property

Effect of changes in tax legislation and tax rates

Adjustment of prior periods

Tax effect of other permanent differences

Income tax expense

Effective tax rate

Tax recognised in other comprehensive income

NOK 1 000

2012

2011

Actuarial losses on pension obligations

Cash flow hedges

Total tax recognised in other comprehensive income

Deferred tax assets and liabilities

NOK 1 000

2012

2011

Inventories

Receivables

Stocks and bonds

Other differences

Fixed assets

Intangible assets

Net pensions

Tax losses to carry forward

Total

Unrecognised deferred tax assets

Net carrying value at 31 December of deferred tax assets (+)/liabilities (-)

Deferred tax assets are reviewed on each balance sheet date, and is reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow for a part or all of the deferred tax asset to be utilised.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the liability shall be settled or the asset be realised, based on tax rates and legislation prevailing at the balance sheet date.

Tax losses to carry forward, gross

NOK 1 000

2012

2013

2014

2015

After 2015

Without expiration

Total tax losses to carry forward

Change in net deferred tax in balance sheet

NOK 1 000

2012

2011

Carrying value at 1 January

Currency differences

Acquisition of subsidiary

Recognised in income statement during the period

Tax recognised in other comprehensive income

Other changes *

Carrying value at 31 December

*) Other changes mainly relate to implementation effects, the tax effect of internal gains and corrections of previous years' errors.

NOTE 15

INVESTMENTS IN SHARES WITH OWNERSHIP IN EXCESS OF 10 %

Subsidiaries

Business office

Ownership

Det Oversøiske Compagnie AS

Bærum

Elopak AS med datterselskaper

Røyken

Ferd Aibel Holding AS

Bærum

Ferd Eiendom AS med datterselskaper

Bærum

Norse Crown Company Ltd. AS

Bærum

Swix Sport AS med datterselskaper

Oslo

Ferd Malta Holdings Ltd

Malta

FC Well Invest AS

Bærum

FC-Invest AS

Bærum

Seco Invest AS med datterselskaper (Telecomputing)

Asker

Ferd Capital Partners AS

Bærum

Ferd Sosiale Entreprenører AS

Bærum

Ferd MG Holding AS

Bærum

Mestergruppen AS med datterselskaper

Oslo

Kapole II AS

Bærum

Joint ventures

Impresora del Yaque

Dominican Republic

Elocap Ltd

Israel

Frogn Næringspark AS

Trondheim

Associated companies

Al-Obeikan Elopak factory for Packaging Co

Saudi Arabia

Elopak South Africa Ltd

South Africa

Lala Elopak S.A. de C.V.

Mexico

Harbert European Real Estate Fund II

London

Harbert European Real Estate Fund III

London

Tiedemannsbyen DA

Oslo

Lofoten Tomteselskap AS

Bodø

Hunstad Sør Tomteselskap AS

Bodø

Tastarustå Byutvikling AS

Stavanger

Madla Byutvikling AS

Stavanger

Boreal GmbH

Germany

Solheim Byutviklingselskap AS

Stavanger

Kråkeland Hytteservice AS

Sirdal

Sirdal Boligutleie

Klepp

Financial non-current assets with more than 10 % ownership

Herkules Capital I AS

NMI AS

Financial current assets with more than 10 % ownership

ARKeX Ltd

Bidco Holding AS (Aibel)

CF Engine AS

Energy Ventures AS

Energy Ventures IS

Energy Ventures II AS

Energy Ventures II KS

Energy Ventures III AS

Energy Ventures III GP LP

Energy Ventures III LP

Eniram Ltd

Help Forsikring AS

Herkules Private Equity Fund I (GP-I) Ltd

Herkules Private Equity Fund I (GP-II) Ltd

Herkules Private Equity Fund I (LP-I) Limited

Herkules Private Equity Fund II (GP-I) Ltd

Herkules Private Equity Fund II (GP-II) Ltd

Herkules Private Equity Fund II (LP-I) Limited

Herkules Private Equity Fund III (GP-I) Ltd

Herkules Private Equity Fund III (GP-II) Ltd

Herkules Private Equity Fund III (LP-I) Limited

Intera Fund I