2013 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 operating the following five business areas:

Ferd Capital is an active and long-term investor in privately owned and listed companies. Ferd Capital has an overall approach to investments in the area going from an expansion phase to mature companies. Ferd Capital prioritises investments in companies where we have the relevant expertise. The team comprises highly qualified staff with operational experience from finance, strategic consultancy and manufacturing. Ferd Capital manages the Group's long-term active equity investments, the largest investments being:

- Elopak (100 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.

- Aibel (49 percent stake) is a leading supplier to the international upstream and gas industry concentrating on the Norwegian shelf. The company is engaged in operating, maintaining and modifying offshore and land based plants, and is also supplying complete production and processing installations.

- TeleComputing (96 percent stake) is a leading supplier of IT services to small and medium-sized enterprises in Norway and Sweden. The company supplies a broad range of netbased applications and customised operating and outsourcing services in addition to system development, customer assistance and other consultancy services.

- 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 internationally, both in Europe, the USA and the Middle-East.

- Swix Sport (100 percent stake) is developing, manufacturing and marketing ski wax, ski sticks, accessories and textiles for sporting and active leasure time use under the brands Swix, Ulvang, 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 (92 percent stake) is a prominent actor in the Norwegian building materials market concentrating on the professional part of the market. The company's operations include the sale of building materials and developing land and projects, housing and cottage chains.

- Servi (100 percent stake). Servi develops and manufactures customer specific hydraulics systems, cylinders and vents to the offshore, maritime and land based industries. The company offers a broad range of components within hydraulics, pneumatics and slide bearings in addition to service and maintenance of hydraulics systems.

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

Ferd Special Investments (SI) has a wide mandate to make investments, but so far only hedge fund shares in the second-hand market have been purchased. SI makes investments where Ferd assumes there are opportunities within this niche.

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

Ferd Eiendom is an active property investor responsible for the Group's efforts concerning property. Operations focus on 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 in-house, partly together with selected external cooperating partners. Ferd Eiendom also invests in foreign property funds.

Other areas 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 areas. The "Small Caps" mandate, comprising individual stakes in listed companies, where the time perspective has a potential for being somewhat longer than for Invest, is also included in Other areas. In addition, Other areas comprises some financial instruments acquired by management to adjust the total risk exposure. Costs to the company's management, staff and internal bank are also included.

NOK 1 000

Ferd AS

Ferd

Capital

Ferd

Invest

Ferd

Special Investments

Ferd

Hedgefond

Ferd

Eiendom

Other areas

Result 2013

Operating income

5 410 746

2 448 792

1 489 658

573 629

196 366

191 812

510 488

Operating expenses

- 177 658

- 62 682

- 18 455

- 21 153

- 4 894

- 9 278

- 61 196

Operating profit

5 233 089

2 386 111

1 471 203

552 476

191 472

182 534

449 292

Balance sheet at 31 December 2013

Investments in subsidiaries

11 403 639

9 468 879

44 547

1 304 661

585 551

Investments classified as current assets

12 539 232

158 290

4 985 020

1 992 851

2 227 204

130

3 175 738

Bank deposits/drawings on group account

274 870

1 190 694

53 737

184 636

30 896

238 910

-1 424 003

Other assets

275 473

29 211

1 235

144 604

25 300

47 889

27 234

Total assets

24 493 214

10 847 074

5 039 992

2 366 638

2 283 400

1 591 591

2 364 520

NOK 1 000

Ferd AS

Ferd

Capital

Ferd

Invest

Ferd

Special Investments

Ferd

Hedgefond

Ferd

Eiendom

Other areas

Result 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 at 31 December 2012

Investments in subsidiaries

8 610 741

6 781 355

35 438

1 168 849

625 100

Investments classified as current assets

12 320 087

1 241 127

3 473 772

1 464 558

1 607 396

130

4 533 104

Bank deposits/drawings on group account

911 028

117 936

31 048

202 900

82 788

222 206

254 150

Other assets

969 273

772 645

21 623

71 360

41 828

61 816

Total assets

22 811 130

8 913 063

3 526 443

1 774 256

1 690 185

1 433 013

5 474 171