2012 Annual report - Cashflow statement

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". Those companies where Ferd Capital has control have been consolidated into the consolidated financial statements, and the business area reporting therefore comprises the consolidated results from these companies, as well as the value changes and management costs of the non-consolidated companies. The value of the investments and the value changes are shown in the accounts of Ferd AS, where Ferd Capital reports MNOK 1 640 in operating result. The value of Ferd Capital's portfolio constitutes MNOK 6 342 at 31 December 2011 and MNOK 8 913 at 31 December 2012 measured at fair value.

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.

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 achieves particular opportunities other investors are not able to utilise, either due to the requirement for capital, long-term conditions or other.

Ferd Hedgefond invests in various types of hedge funds managed by hedge fund environments abroad. The business area shall provide a satisfactory risk-adjusted return and ensure a risk diversification for Ferd.

Ferd Eiendom is an active property investor responsible for the Group'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 the total risk exposure. Additionally, operating expenses related to Ferd's management and internal bank are included .

Result 2012

Sales income

10 465 326

10 464 382

944

Income from financial investments

3 234 991

1 081 221

654 655

182 447

137 678

- 52 774

1 231 764

Other income

483 836

39 445

444 082

310

Operating income

14 184 153

11 585 048

654 655

182 447

137 678

392 252

1 232 074

Operating expenses excl. depreciation and impairment

9 872 908

9 719 959

23 928

12 852

8 255

39 845

68 069

EBITDA

4 311 246

1 865 089

630 727

169 595

129 422

352 407

1 164 005

Depreciation and impairment

452 849

451 398

77

58

37

368

911

Operating profit

3 858 396

1 413 691

630 650

169 537

129 385

352 039

1 163 094

Share of profit from associated companies and joint ventures

87 010

56 965

30 045

Profit before finance items and income tax expense

3 945 406

1 470 656

630 650

169 537

129 385

382 083

1 163 094

Statement of financial position 31 December 2012

Intangible assets

1 731 348

Tangible assets and investment properties

3 377 888

1 381 850

117

442

1 991 498

3 981

Investments accounted for by the equity method

599 321

258 732

340 590

Investments classified as current asset

15 388 186

4 140 076

3 473 772

1 480 585

1 607 396

319

4 686 039

Other assets*

5 439 300

3 982 241

52 839

291 122

79 027

296 752

737 320

Total assets

26 536 044

11 494 246

3 526 728

1 771 707

1 686 865

2 629 158

5 427 340

*) 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

9 320 120

Income from financial investments

- 314 447

301 789

- 654 377

130 931

- 59 005

- 33 785

Other income

141 956

15 855

20

125 261

820

Operating income

9 147 629

9 637 763

- 654 377

130 931

- 58 985

125 261

- 32 964

Operating expenses

8 612 814

8 492 366

7 895

15 823

10 425

45 535

40 772

EBITDA

534 815

1 145 398

- 662 272

115 108

- 69 410

79 727

- 73 736

Depreciation and impairment

374 168

373 122

77

61

54

292

561

Operating profit

160 647

772 276

- 662 349

115 047

- 69 464

79 434

- 74 296

Income on investments accounted for by the equity method

32 237

12 082

20 155

Profit before finance items and income tax expense

192 884

784 358

- 662 349

115 047

- 69 464

99 589

- 74 296

Statement of financial position 31 December 2011

Intangible assets

1 751 449

Tangible assets and investment properties

2 956 514

1 433 015

194

537

1 519 070

3 698

Investments accounted for by the equity method

657 004

329 130

311 406

16 468

Investments classified as current asset

13 476 441

3 028 666

2 938 422

1 395 973

1 492 666

476

4 620 239

Other assets*

5 226 231

4 437 450

99 332

69 814

132 781

486 853

Total assets

24 067 639

10 979 711

2 938 616

1 495 305

1 563 016

1 963 733

5 127 258

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