Annual Report (ESEF) • Apr 26, 2022
Preview not available for this file type.
Download Source FileUntitled BEERENBERG BEERENBERG AS ANNUAL REPORT 21 Beerenberg AS is a limited liability company registered in Bergen, Norway The Beerenberg Group comprises the parent company Beerenberg AS and the subsidiaries Beerenberg Holding AS, Beerenberg Services AS, Beerenberg Industri AS, Beerenberg Poland Sp. z o.o, Beerenberg UK LTD, Beerenberg Korea LTD, Beerenberg Holding (Thailand) LTD, Beerenberg (Thailand) CO., LTD and Beerenberg Singapore PTE. LTD. The operational activities are organized in Beerenberg Services AS and its subsidiaries. The head office is in Bergen and the group has offices in Stavanger and Skien in Norway, in Poland, UK, South-Korea, Thailand and in Singapore. ANNUAL REPORT Beerenberg AS BEERENBERG AS NORWAY BEERENBERG HOLDING AS NORWAY BEERENBERG SERVICES AS NORWAY BEERENBERG POLAND LTD POLAND BEERENBERG INDUSTRI AS NORWAY BEERENBERG KOREA LTD KOREA BEERENBERG UK LTD UK BEERENBERG HOLDING THAILAND LTD. THAILAND BEERENBERG SINGAPORE LTD SINGAPORE BEERENBERG THAILAND CO., LTD THAILAND 3 Beerenberg is a leading supplier of maintenance and modifications services. For more than 40 years Beerenberg has delivered cost ecient solutions to a wide range of industrial enterprises. Our expertise covers the entire life cycle from field studies and newbuilds to maintenance, modification and lifetime extensions. We see it as a duty to challenge conventional thinking in the industry trough innovation and creative solutions – always focusing on improved HSE/Q, sustainability, productivity and consistency. Our expertise covers the entire life cycle OUR VISION Beyond Expectations Our vision commits the corporation and all of its employees to seek solutions that exceed the expectations of the wider world. OUR CORE VALUES Inclusive Innovative Responsible The company shall be inclusive towards individuals, other companies and society as a whole. An open and accommodating attitude shall prevail throughout the group. The company’s ability to be innovative will help safeguard our own future, improve conditions for the local environment and generally help create positive social development. Aresponsible attitude shall prevail at the company at all levels and in all contexts. 4 5 ANNUAL REPORT Contents About Beerenberg 3 Vision and values 4 Dear stakeholder 8 Key figures 10 Beerenberg management 12 Business units 14 Environmental, Social and Governance (ESG) 18 Corporate governance 32 Board of Directors Beerenberg AS 35 Annual Directors’ Report 2021 36 Group Accounts 2021 – Beerenberg AS Group 42 Annual Accounts 2021 – Beerenberg AS 82 Declaration by the Board of Directors and CEO 96 Auditor’s Report 97 Definition of Alternative Performance Measures 103 The Beerenberg Group consists of several entities. Unless otherwise stated the reference to company and group refers to the total operation of these entities. 6 Annual Accounts Beerenberg AS 82 Income statement 84 Statement of Comprehensive Income 85 Statement of Financial Position 86 Statement of Cash Flows 88 Accounting principles 89 Note 1 Revenues 90 Note 2 Long-term investments in other companies 90 Note 3 Restricted funds 91 Note 4 Share capital and shareholder information 91 Note 5 Equity 91 Note 6 Non-current liabilities, collateral and guarantees etc. 92 Note 7 Tax 93 Note 8 Payroll costs, number of employees, remuneration, loans to employees etc. 94 Note 9 Specification of finance income and finance costs 94 Note 10 Financial instruments 95 Note 11 Events after the reporting date 95 Group Accounts Beerenberg AS Group 42 Consolidated Income Statement 44 Consolidated Statement of Comprehensive Income 45 Consolidated Statement of Financial Position 46 Consolidated Statement of Changes in Equity 48 Consolidated Statement of Cash Flows 49 Note 1 Information about the group 50 Note 2 Basis of preparation 50 Note 3 Accounting principles 51 Note 4 Financial risk management 58 Note 5 Segment 61 Note 6 Revenues 63 Note 7 Other operating costs 64 Note 8 Personnel costs 64 Note 9 Finance income and finance costs 65 Note 10 Tax 65 Note 11 Property, plant and equipment 67 Note 12 Intangible assets and Goodwill 68 Note 13 Financial instruments 70 Note 14 Inventory 74 Note 15 Bank deposits and cash equivalents 74 Note 16 Share capital and shareholder information 74 Note 17 Employee benefits – pensions 75 Note 18 Remuneration of key employees 75 Note 19 Warranty liabilities and provisions 76 Note 20 Other short-term liabilities 76 Note 21 Contingent outcomes 77 Note 22 Related parties 77 Note 23 Group entities 78 Note 24 Derivatives 79 Note 25 Interest-bearing liabilities 80 Note 26 Secured liabilities 81 Note 27 Events after the reporting date 81 7 At Beerenberg, we work every day to protect our custom- ers in the harshest conditions on earth. Our services and products continue to be in high demand in the oil and gas industry, and increasingly also in other industries, including building, construction, and transport. We all know that transitioning to a renewable energy system is key to tackling climate change. This comprehensive transition will require contributions from everyone, and it will take time. While governments, industry, and businesses are working hard to produce clean energy solutions at scale, lowering the carbon footprint of current energy forms is also a prime focus. At Beerenberg, we are already well positioned to provide sustainable products and services that reduce the carbon footprint in a concrete and measurable manner. We experience a challenging development, with a significant cost pressure and logistic challenges. In our daily operations, we meet these challenges with high awareness, productivity, and cost eciency. In 2021 we continued to invest in people, sustainability, and technology to better serve our clients and further develop the organization. Safety and security Ensuring the safety and security of everyone working at and for Beerenberg is a prerequisite for everything we do. Our skilled employees deliver high-quality work for our custom- ers in ever-changing conditions around the world, and it is our responsibility to keep them safe. Our health, safety, and environmental initiatives are embedded in a zero accidents philosophy, with HSE as an integrated element in all parts of our business. Sustainability Sustainability is one of the cornerstones in Beerenberg’s strategy. We believe our expertise from the oil and gas industry is the key to sustainable development. The use of robotics and modern technologies in industrial insulation and surface maintenance are just a few examples of how we work to reduce our carbon footprint. As society moves faster towards net-zero emissions, we aim to be a partner on that journey. Through our focus on find- ing sustainable solutions, we will continue to improve safety performance, drive operational excellence, implement cost improvements and strategic growth initiatives. Investing in people Fortunately, we have a highly skilled and engaged work- force at many onshore plants, platforms, and oces both in Norway and abroad. To ensure a continued supply of qualified employees in an exciting and ever-changing ISS profession, we facilitate professional development for the new generation ISS workers at our facilities. We also invest significantly in professional development which includes adopting innovative technologies. Products and services Throughout the organization, we have invested in innova- tive technologies, digital solutions, and new work methods to simplify fieldwork and ensure eciency and sustainable solutions. As an example, we used to travel all over the world to measure the objects we were installing, whereas today we send scanners our clients use themselves for measuring. Similarly, we have developed new digital applications for more seemless field work such as “FieldBuddy,” simplifying ANNUAL REPORT Dear stakeholder, 8 Beerenberg is not directly aected in any way, but we are aware the situation will likely aect businesses, supply chains, trade and finance across the region and worldwide. Ideas are easy – execution is everything. As we prepare for the future, evolving along with our clients in a changing society, we will continue our work to achieve a positive impact for our customers, shareholders, employees, and the environment. Guided by our vision to exceed expec- tations of everyone and to go beyond expectations – every time. and enhancing access to find and upload documentation on-site. We have also implemented a new digital ordering system and scanning tools to provide our projects and our clients with easy access to placing orders, saving time and money. Our new online courses also contribute to a reduced carbon footprint, as it significantly reduces the need for travel. Providing greener products and services is an important part of this development. We have, as a society as such, an enormous potential for energy eciency and reducing our energy consumption by re-insulation. The area of surface treatments is also an area of rapid change. Today our robots gather all waste, including microplastics, so that we can handle it appropriately. At Beerenberg we also use robots to eciently complete several surface jobs, resulting in improved safety and significant environmental benefits. Even though Covid-19 continued to be a challenge in 2021, we used the opportunity to develop new, environmentally friendly products and solutions, proving we can quickly adapt to new realities. Similarly, we have taken big leaps in providing remote training and video assistance during installations. In all, we have increased the number of ser- vices to our customers, especially within the maintenance area. Moving forward, we will continue to focus on both climate risks and sustainability developments in our daily work. At the time of writing, the consequences arising from the Russia invation of Ukraine are still uncertain. So far, Arild Apelthun CEO 9 Hours produced 3,1 MILL EBITDA margin 10,1% SIF 1,7 Revenue 2136 MNOK ANNUAL REPORT Key figures 2017 1 851 MNOK 2019 2 209 MNOK 2020 1 722 MNOK 2018 1 519 MNOK 2021 2 136 MNOK 10 Unit 2021 2020 2019 2018 2017 ORDERS AND RESULTS Estimated order backlog MNOK 7 300 8 300 9 300 9 500 10 500 Revenue MNOK 2 136 1 723 2 210 1 520 1 852 Growth in revenue Percent 240 % -220 % 454 % -179 % -110 % EBITDA MNOK 217 217 216 97 253 Ebitda margin Percent 101 % 126 % 98 % 64 % 137 % EBIT MNOK 153 146 142 48 207 Net Profit MNOK 56 47 45 -31 78 Net margin Percent 26 % 27 % 21 % -21 % 42 % Unit 2020 2019 2018 2017 2016 CASHFLOW AND CAPEX Cash flow from operating activities MNOK 109 88 126 52 87 Capex MNOK 40 17 52 39 13 Unit 2020 2019 2018 2017 2016 BALANCE SHEET Equity MNOK 546 487 440 394 422 Equity ratio Percent 299 % 290 % 237 % 242 % 246 % Net working capital MNOK 99 75 73 59 140 Nwc / revenue ratio Percent 47 % 43 % 33 % 39 % 75 % Total liabilities MNOK 1 284 1 189 1 417 1 234 1 292 Total assets MNOK 1 830 1 676 1 858 1 628 1 714 Unit 2020 2019 2018 2017 2016 EMPLOYEES Employees 31.12. Number 1 247 1 203 1 312 1 131 1 146 Man years – totally employed Number 2 221 1 716 2 002 1 621 1 954 Change in total resources employed Percent 295 % -143 % 235 % -170 % -82 % Hours produced In thousands 3 100 2 405 3 431 2 476 2 873 Change in hours produced Percent 289 % -299 % 385 % -138 % -77 % Unit 2020 2019 2018 2017 2016 HSE Serious Incident Frequency (SIF) Per million workedhours 17 22 10 09 0 Lost time incidents Frequency (LTIF) Per million workedhours 31 09 03 0 0 Total recordable incidents frequency Per million workedhours 79 27 39 55 43 ) Estimated order backlog is based on best estimates of frame agreements ANNUAL REPORT 11 ANNUAL REPORT Management Arild Apelthun CEO Arild Apelthun has been CEO since June 2018. Apelthun joined Beerenberg in 2014 and was previously the CFO of the company. Apelthun has a background as CFO from TTS Group and subsidiaries in Aker Solutions in USA and Europe. Apelthun holds a Master of Science in Business (Siviløkonom) from Bodø Graduate School of Business. Toni Suomäki Executive Vice President – Maintenance, Modifications & Operations Toni Suomäki has been EVP MMO since June 2018. Suomäki started in Beerenberg in 2007 and has held a number of key positions in the company, mainly related to operations and project management. Suomäki has long experience in oil service from various companies before joining Beerenberg. Suomäki holds a Bachelor in Economics and Management from BI. Nils Halvor Berge Executive Vice President, New Build & Modifications Projects Nils Halvor Berge has been in Beerenbergs Management Team since April 2016. Berge joined the company in 2009, and has been project manager both at Kårstø and at Nyhamna APCm project. Prior to Beerenberg, Berge served as sports director and general manager at FK Haugesund for 12 years. Berge qualified as a teacher at Sogn og Fjordane University College. Harald Haldorsen CFO Harald Haldorsen joined Beerenberg as CFO in March 2020. Haldorsen has extensive experience within finance and controlling activities. Prior to joining Beerenberg Haldorsen worked as the CFO at Strømberg Gruppen AS for more than 12 years. Prior to this, Haldorsen has had positions at Arthur Andersen & Co and Centragruppen. Haldorsen has an economics degree from the Norwegian School of Economics (NHH) in Bergen. 12 Roger Kjeilen Executive Vice President, Tender Roger Kjeilen has been EVP Tender since 2018, responsible for tender and marketing activities in the Beerenberg Group. Kjeilen joined the company in 1996 and has held several leading positions in Beerenberg. Kjeilen has a Master of Science (Sivilingeniør) from Norwegian University of Science and Technology (NTNU). Gro Hatleskog Executive Vice President, Business Support Gro Hatleskog has been EVP Business Support since March 2015. Hatleskog held the same position in the company from 2009–2011. Hatleskog has extensive and wide-ranging experience as an HR and sta director at Vesta Forsikring, Sparebanken Vest and Nera Telecommunications. Hatleskog has a Master’s Degree in Administration and Organisation Theory from the University of Bergen. Jan Terje Lagos Bøe Executive Vice President, HSEQ & RISK Jan Terje Lagos Bøe started as EVP HSEQ & Risk in Beerenberg in January 2022. Bøe has extensive experience within all segments of oil and gas, including international business. Prior to joining Beerenberg Bøe held the position as Quality & Risk manager at Vår Energy on Balder Future, including upgrade of Jotun FPSO on Rosenberg in Stavanger. Bøe holds a degree from Western Norway University of Applied Sciences. 13 Services Benarx Engineering ANNUAL REPORT Business units Services Services’ main business areas have been divided into two segments: • Maintenance, Modifications & Operations • New Build & Modification Projects Benarx The Benarx® product series is Beerenbergs’ proprietary range of industrialised insulation solutions for passive fire protection and thermal and acoustic insulation. 14 Surface Treatment Insulation Engineering Scaffolding Technical Cleaning Passive Fire Protection Rope Access Techniques (RAT) Architectual Outfitting Habitat Solutions (Sveisolat ® ) Cold Cutting SERVICES BENARX Benarx ® Subsea Insulation Engineering Some of our clients • Agility Group • Aibel • Aker BP • Aker Solutions • BMO • Cameron • ConocoPhillips • Daewoo • Equinor • Halliburton • Hyundai • Lotte Chemicals • Norcem • OneSubsea • Samsung • Sembcorp • Shell • TechnipFMC • WintershallDea • WorleyParsons • Yara 15 Services has the overall responsibility for Beerenberg’s newbuild, maintenance and modifications contracts. Alongside theISS disciplines (insulation, scaolding and surface treatment), the business unit also covers passive fire protection, technical cleaning, rope access techniques , architectural outfitting services and the cold work concepts Sveisolat (habitats) and cold cutting /mobile machining. Services’ main business areas have been divided into two segments: ▪ Maintenance, Modifications & Operations ▪ New Build & Modification Projects The two main business areas are designed to meet future demand on the Norwegian Continental Shelf and in the petrochemical industry. As well as direct maintenance contracts on installations and plants in operation, Beerenberg is also involved in business concepts aimed at modification projects and newbuilds in the oil and gas sector. As a supplement to the traditional ISS disciplines, Beerenberg also delivers a range of technology-driven additional services whose innovative approach helps to ensure eective, consistent and HSE/Q-friendly operation. Beerenberg’s engineering services are an integrated part of the company’s overall service concept. The company has extensive experience of studies, FEED, pre-engineering, fabrication engineering and as-built from a number of developments and installations in Norway and abroad. The company’s expertise includes design, specifications and modelling, technical drawing, working documents, documentation, plans and methods, inspections and other field engineering, and as-built. ANNUAL REPORT Services Surface treatment 148 000 m 2 Extends product life and increases durability Scaffolding 424 000 m 3 Provides secure access and safe working conditions Insulation 82 000 m tubes Saves energy and cuts emissions 16 The business segment Benarx is responsible for the design and manufacturing of a complete range of insulation and fire protection products. This involves deliveries of everything from advanced proprietary products to traditional solutions and bulk insulation products. The business segment has also highly skilled professionals to assist in the actual installation process – something which is particularly important in the case of subsea insulation. The Benarx® product series is Beerenbergs´ proprietary range of industrialised insulation solutions for passive fire protection and thermal and acoustic insulation. The company’s ambition is for the products to be cost eective, space-saving and weight-reducing. Key factors in achieving this are: ▪ Making products that are installation-friendly, thus moving the work from a high-risk plant to a factory specially designed and built for this purpose. ▪ Developing new products by identifying and combining new and existing insulation materials from dierent Industries. ▪ Doing actively research and find new materials that can give us a competitive advantage, this is obtained due to close collaboration with partners. ▪ Seeking sustainable insulation solutions that are well documented and verified ▪ Extensive testing to ensure that our products meet industry standards as a minimum and provide optimal protection of the process (thermal), the plant (fire and CUI) and the people who work there (acoustic etc.) now and in a lifetime perspective (life cycle costs). ▪ A unique combination of standardised, automated and centralised production of solutions tailor-made for our customers. ▪ Environmentally friendly solutions, services or execution-models that can provide added value for our clients. The Benarx® insulation products have a documented life span that far exceeds those of conventional insulation solutions. The company has a cooperation agreement with Akzo Nobel and cooperate closely with other key clients and suppliers as well as institutions such as SINTEF, DNV, GL, the National Institute of Technology, CRM, GexCon and Lloyds. The solutions have been tested and approved according to all relevant specifications/standards. Over the past decade the Benarx product series has assumed a strong position on the Norwegian Continental Shelf (NCS). In recent years the company has widen the target market for its products, especially in Europe and Asia. The complexity of fabrication and installation of current insulation solutions is one of the international oil and gas industry’s biggest challenges. The fact that the work requires extensive expertise and experience does not harmonise well with the highly volatile demand for capacity. The solution to this is therefore to automate production and to develop products that are easy to install. Benarx R&D department focuses especially on developing solutions that are installation-friendly and suitable for automated production. Beerenberg has been awarded major contracts in the market for thermal subsea insulation over a number of years and has the capacity to deliver products and services worldwide. The company is working with TechnipFMC, One Subsea and other big operators in the sector. Solutions include the use of market-leading materials and installation methods developed in-house. Advanced insulation solutions 8 000 steel boxes Protection of your assets – high energy efficiency Benarx 17 ANNUAL REPORT Environmental, Social and Governance (ESG) 18 How we achieve our results is important. Beerenberg’s strong commitment to sustainability is applied to everything we do. Sustainability is embedded in our strategy – and many of our primary operations, whether maintenance or insulation products, are inherently about sustainable development. ESG pillar Innovasion for reduced emissions and waste Developing people and providing safety Transparency and governance 19 We approach the subject with openness and respect, and we are testing, documenting and seeking ecient solu- tions to keep climate emissions and pollution to a mini- mum. In 2021, our sustainability work included specific and systematic eorts to find and develop sustainable materials, products and solutions, through remote work, digitalisation, standardisation, recycling and reuse. Providing sustainable products Since we launched our large-scale sustainability eort in 2019, we have worked systematically to determine how our Benarx products can be utilised to prevent climate emissions. Today we conduct sustainability analyses of all our products, document our findings, and use this information to make sound environmental choices going forward. Other specific measures we have implementet include: ▪ analysis and reduction of material losses in production ▪ testing new, more environmentally friendly production methods ▪ standardisation for material usage reduction and for the use of more environmentally friendly products ▪ reducing the need for sandblasting ▪ better handling of chemicals ▪ security measures to eliminate cut injuries At Beerenberg we have ambitious goals for making all our activities and products as environmentally friendly as possible and have established a thorough strategy for our sustainability work. ENVIRONMENTAL, SOCIAL AND GOVERNANCE ESG Environmental and sustainability efforts Focus areas Transparency and governance Business ethics ESG communications Safe work environment Responsible procurement Attractive workplace Sustainable materials Climate action Sustainable methods 20 Key KPI’s 1 Reduced release of microplastics in connection with surface treatment 2 Reduced CO2 footprint in connection with surface treatment 3 Number of new sustainable technology or solutions tested and adopted 4 Proportion of suppliers with a ESG program 5 Share of turnover in new and sustainable markets 1 TRIF 2 Proportion of sick leave 3 Internal recruitment of managers 4 Proportion of suppliers signed declaration on ethical guidelines and human rights policy 1 Report on ESG in quarterly and annual financial reports 2 Proportion of employees who have completed training in ethics 3 Publish an external article in connection with the quarterly report 27% >25% NA >10% 4 >3 NA >50% 3% >10% 7,9 < 3 8,9% <6% 78% >80% NA 80% NA 5 79% >90% NA 4 2021 2022 Actual Goal Impact on UN’s SDGs ) Benchmark 2020. Scope surface treatment Offshore ) Benchmark 2020. Scope surface treatment Offshore and Onshore 21 New environmentally friendly solutions Even though Covid-19 has been a challenge, it has also been a catalyst for developing new, environmentally friendly solutions we will develop further. We have made extensive use of remote training for our products, and installations have been done via video assistance. Earlier, we travelled all over the world to measure the objects we were installing, whereas today we send scanners the clients can use them- selves for measuring. Training, guidance and installation have also been successfully carried out via video assistance. This is something we had planned of doing for a while, but the corona pandemic pushed us in the right direction. Not only has this work improved our environmental accounting; it has also been a commercial success, and we have entered new markets while reducing our environ- mental footprint. Throughout 2021, we also worked persistently with find- ing solutions for recycling and reuse of components from our main product in the Benarx product series. We are also working on implementing return schemes for these products. We also notice our customers’ increasing emphasis on sup- plier operations being as sustainable as possible. A Korean company selected Beerenberg as their insulation supplier because we, unlike traditional suppliers, could assist with designing better energy ecient and low emission solutions. Providing sustainable services In 2019, we decided to be a frontrunner within the industry. Since then, we have worked systematically with defining possible measures for fulfilling the UN’s sustainability goals. We want to estimate our carbon footprint, and this work have been received with enthusiasm within the organisation. We have started by mapping our surface treatment activi- ties. A cross-disciplinary team has systematically gone through all our surface treatment methods to uncover how and to what degree they impact the environment. Based on this work, we now have detailed knowledge of how the methods we choose impacts the environment, which makes it easier for us to decide which tools to apply to reduce emissions and to determine the actual climate eect. Significant emission reductions Ahead of 2021, we set two specific goals: to reduce carbon emissions by 10% and emissions of microplastics related to surface treatment by 20% compared with 2020 levels. The conclusion was we managed to reduce the carbon emissions by 20% and the emissions of microplastic by 27%, simply by utilising alternative methods for surface treatment. Our improvement work will continue persistently and at present we are carrying out a similar mapping of our scaolding and insulation services. We have, as one of the first companies within our industry, developed and utilised electric compressors. The robot technology we tested and implemented last year also proved to be an important contribution to emission reduction. The robots are developed in collaboration with the manufacturer and in line with the specific environmental requirements for the Norwegian shelf. This technology gathers waste that would previously be discharged into the sea. We see several positive eects from these measures: ▪ reduced use of sand as a production factor ▪ reduced physical strain on personnel ▪ increased eciency ▪ better quality ▪ reduced emissions ▪ reduced noise ▪ better utilisation of resources and knowledge Overall, we are focused on achieving improvement through digitalisation. We have developed an app, a sustainability dashboard, where our managers can register climate data through mobile units and receive immediate results con- cerning status and possible measures for greener operations. Investing in a sustainable future New technology is costly and involves a great deal of testing and trials and errors, and the measures we have imple- mented are no exceptions. Documentation requires several evaluations and a great number of our employees have made substantial eorts to produce the data sets. We realize that for now we must endure somewhat higher costs if our prod- ucts and services are to become more sustainable, but our ambitions are for these environmental protection measures to become profitable over time. Sustainable development also extends to other issues, such as social and economic living standards, human rights and health. ENVIRONMENTAL, SOCIAL AND GOVERNANCE ESG 22 23 24 Achievements 2021 ENVIRONMENTAL, SOCIAL AND GOVERNANCE ESG Beerenberg´s first partnership project with Lotte Chemicals in Korea includes upgrading insulation in petrochemical plants. Beerenberg´s expertise is also used to monitor the amount of energy saved in the process, in an effort to cut CO2 emissions. “We’ve been involved in the planning process and have calculated the insulation thickness and volumes of materi- als needed to replace the insulation on some 7,000 meters (about the length of 60 city blocks) of pipe,” head of products Asia, Per Lange says. But that is not the end of the job for Beerenberg. “Once its all done, we´ll spend a year or so monitoring the pipe temperatures. We are looking at heat loss and calculating how much energy we have saved,” he explains. The petrochemical plant hopes to see their investment repaid in three years. “So far, the measurements look to be on track for that, but we will have to measure over time and seasons to be sure, Lange says. The principle of isolating to save energy can be used in many areas: ▪ Insulating LNG equipment and storage tanks. In the Korean market, there are several opportunities due to the country’s sustainability focus of the sustainability focus. “For example, there is a major drive to adopt LNG as fuel for more traditional vessels such as container ships. LNG must keep a temperature of -162 degrees, which means vastly different specs for insulating the equipment and storage tanks. We are looking at viable solutions with our Aerogel products,” Lange says. ▪ Insulating car batteries. Changes in the car manu- facturing sector are also creating opportunities for Beerenberg’s insulation solutions. “Korea has a huge automotive industry which is now switching to electric vehicles. In this type of manufacturing there are requirements for battery insulation. Our products can be a suitable alternative in this respect and open a new and exciting market for us,” he says. ▪ Recycle old insulation materials. In the effort to help save the environment, another important contribution is to recycle old insulation materials. "Waste accounts for huge volumes, and we are looking to our expertise for several ways in which we can help. Rather than dumping removed materials, they can be grinded up or melted down into new products. This is still at the planning stage in Korea, and it is exciting to be involved in the early phase with a genuine opportunity to make an impact,” Lange concludes. We’ll spend a year or so monitoring the pipe temperatures. We are looking at heat loss and calculating how much energy we have saved. Per Lange, head of products Asia 25 Cutting greenhouse gas emissions by upgrading insulation Beerenberg’s goal to make all activities and products as environmentally friendly as possible has resulted in syste ma - tical research and development with use of a range of new technologies. The robot technology Beerenberg implemented in 2021 proved to be an important contribution to reduce emissions. The robotic solutions, that are utilized both internally and externally in tanks, on walls, roofs and all areas with large surfaces, but also on pipes structures, caissons and conduc- tors, allows removed materials to be vacuumed and filtrated which contributes to less emissions. Among other things, the robots used offshore, gather waste that would previously be discharged into the sea. Looking at micro plastics alone, which now are gathered by vacuum pumps, the company has seen a 27 percent reduction in 2021. A forerunner in the industry, Beerenberg has both developed and utilized high pressure electric compressors, UHTs and vacuum pumps. “Being self-sufficient in this area allows us to reduce the need for diesel machines, along with diesel consumption and exhaust emissions,” says VP MMO at Beerenberg Ole Christian Thømt. Today, the company has three pretreatment robots with water jets and vacuum cleaners for collecting waste during the surface treatment. “We see many positive effects including; reduced use of sand as a production factor, reduced physi- cal strain on personnel, increased efficiency, better quality, reduced emissions, reduced noise, and better utilization of resources and knowledge,” says Thømt. As a result, there is an increase in the demand for environmen- tal friendly solutions. “The more we talk about and use robots, the more people request them. There is a very clear link,” he adds. Investing in robotic solutions While Beerenberg always worked with new technologies and collaborated with other companies on robotics solutions since 2018, the company invested in a more planned and self- sufficient use of robotization for surface treatments in 2020, starting with a job on the Gullfaks C platform. In 2021 Beerenberg continued to invest in robotic solutions and develop electric compressors. The robots are developed in collaboration with the manufacturer and in line with the specific environmental requirements for the Norwegian shelf. 26 Reducing the environmental footprint with robotics The more we talk about and use robots, the more people request them. Ole Christian Thømt, VP MMO To better measure the climate footprint of the company’s surface treatment operations, Beerenberg launched a sustainability dashboard in 2021. The key is to know exactly which methods are being used on all surface treatment jobs on the sites where we operate by using the daily logs. Now managers can register climate data through mobile units and receive immediate results concern- ing status and possible measures for greener operations. “The significance of sustainability in relation to our services is growing and will become the new ‘license to operate’ in the next few years, obviously paired with excellent HSEQ perfor- mance,” explains Toni Suomäki, EVP MMO at Beerenberg. Accounting for climate When documenting the treatment method and the extent of the work, the sustainability dashboard automatically generates climate accounts for the job in question. This also simplifies the process by digitalizing the docu men- tation in a customized digital app. Relevant data are auto- generated into the be sustainability dashboard to always keep it up to date. The value of measurements Beerenberg is working to generate exact figures for its emissions and consequently also for its annual emission cuts. By measuring, we set a clear direction as to what the eco-friendlier choices are. “By measuring our surface treatment activities, we raise awareness throughout the organization and make environ- mental impact an integral element in the decision-making process. In essence, the things we measure we will also focus and improve on,” says Toni Suomäki. Every time the team plan a job, they also evaluate the environmental impact of the pretreatment method before they make a decision. Since sand-blasting means more pollu- tion, Beerenberg now consider whether it is better to deploy sponge media on the job or whether we might be able to use manual vacuum-blasting or robotic pretreatment methods. By making these assessments before each job, the result will be more thought through and environmentally friendly. 27 Sustainability Dashboad The things we measure we will also focus and improve on. Toni Suomäki, EVP MMO ENVIRONMENTAL, SOCIAL AND GOVERNANCE ESG Social and Governance efforts Business ethics and human rights The Beerenberg group’s ethical guidelines are designed to ensure that we are acting in compliance with the company’s values and principles, in terms of business practices and personal conduct. The guidelines are revised annually and adopted by the group’s executive bodies. Human rights are integrated in the Ethical Guidelines. We support and respect all internationally recognized human rights and shall contribute to protect those. In our Human Rights Policy we commit to be in compliance with the Ten Principles of the UN Global Compact including human rights, labour, environment and anti-corruption. 28 The human rights policy is integrated in the com- pany’s values to be responsible and inclusive. In 2021 Beerenberg focused on human rights in the supply chain. Beerenberg will continuously work to strengthen its work to secure human rights and pre- pare for implementation of Norwegian Transparency Act (Åpenhetsloven) eective in 2022. Employees receive training in ethics and human rights through the company’s training programme, which includes both e-learning and other tailor- made activities such as courses and dilemma train- ing. Ethics are also discussed at the in HSE meetings of the operational business and promoted by “leading by example” throughout the organisation. A whistle- blowing regime for employees has been implemented to ensure compliance with the ethical guidelines. The system has channels for alerting anonymously to external and independent third parties. Working with partners and suppliers Beerenberg follows up and supports the manage- ment of risks and performance related to safety, security, ethics, integrity and sustainability. This also includes following up climate- and human rights related issues. We also require our suppliers to maintain high standards for health, safety, security, anti-corruption and environmental performance, and to have an approach to human rights consist- ent with the goals of the United Nations Guiding Principles on Business and Human Rights. In 2022 we aim to have at least 50 % of our suppliers with an ESG program, and 80 % of our suppliers with signed declaration on ethical guidelines and human right policy. Beerenberg Annual Awards We know that the valuable input, motivation, and skills of each and every employee are what has made Beerenberg a successful company. In appreciation of their efforts, we launched a new develop- ment concept in 2021 called the Beerenberg Annual Awards – where employees were invited to nominate and celebrate their colleagues. “This is part of our long-term strategy in building and developing skills, and where the focus is on the individual employee,” says CEO, Arild Apelthun. The nomination process generated much enthusiasm, and colleagues from across the company made no fewer than 183 nominations in five separate categories; the flexible worker, the explorer, the eager beaver, the holistic thinker, and the team builder. “We know that there are many dedicated employees who deserve recognition, and one objective was to honour this talent while also commending behaviours and cultures that we want to see more of,” says EVP Business Support, Gro Hatleskog. 29 This is part of our long- term strategy in building and developing skills. Arild Apelthun, CEO ANNUAL REPORT Annual Report and Accounts 30 31 CORPORATE GOVERNANCE Review of the principles of corporate governance according The Norwegian Code of Practice for corporate governance (NUES) 1. Review of corporate governance The purpose of the principles of corporate governance in Beerenberg AS is to clarify the division of roles between shareholders, the board of directors and executive manage- ment more comprehensively than is required by l legislation. There have been some changes in the Code of practice (NUES) in 2021 which has been implemented., The group’s vision is “Beyond Expectations”. The vision commits the corporation and all of its employees to seek solutions that exceed the expectation of the wider world. The group has set out 3 core values: - Inclusive towards individuals, other companies and society as a whole. An open and accommodating attitude shall prevail throughout the group. - Innovative will contribute to create a positive social Development, improve the environment and help safeguard a better future. - Responsible attitude shall prevail at the company at all levels and in all contexts. The group has established ethical guidelines that should form the basis for how Beerenberg conducts business. Deviation from code of recommendation: None 2. Business The group’s operational activity is conducted in its subsidi- ary, Beerenberg Services AS. In article 3 in Beerenberg Services AS Articles of Association the purpose of the business is defined: “The objects of the company are to engage in contract work, production, industrial maintenance, trading, agency and commission work, and to take interests in other enterprises engaged in similar activities by way of share subscriptions or other means”. The group will conduct the business in line with established sustainability targets. The group will also provide informa- tion on matters relating to the environment, social issues, the working environment, equality and non-discrimination, respect for human rights, and anti-corruption and bribery. Deviation from code of recommendation: None 3. Equity and dividends Total assets at 31 December 2021 was MNOK 1830 with an equity of MNOK 546, giving an equity ratio of 30%. The Groups solidity is evaluated based on current targets, strategy and risk profile. Beerenberg has a bond listed at the Oslo Stock Exchange. Beerenberg has during 2021 sold its own stock of bonds Deviation from code of recommendation: Dividend policy and specific capital requirement targets. The Group’s financing restricts the company’s rights to pay dividends. Consequently, the board has not found it practical to develop a dividend policy. Furthermore, the board has not seen it as necessary to establish specific targets for leverage or equity ratio in addition the evaluations that are made continuously and specified in budgets and strategy plans. 4. Equal treatment of shareholders and transactions with close associates Segulah IV L.P holds 83,9% of the shares in the company. The shares are not listed. As a consequence, there is no specific policy relating to preferential treatment of existing shareholders nor is there policy relating to sales of shares. Deviation from code of recommendation: Based on current ownership structure the board has not seen it as necessary to develop additional guidelines beyond what is described in the legal framework (Aksjeloven). With regards to transactions with close associates the board of directors has prepared guidelines where the basis for the transaction should be based on an independent, 3rd party valuation. However, if the matter relating to the valuation has been satisfactory handled, the board may decide to forego the independent valuation. There have not been significant transactions with close associates in 2021. A procedure relating to reporting of potential conflict of interests to the board has been established.Deviation from code of recommendation: Policies relating to preferential treatment of shareholders and sales of own shares have not been established. 5. Freely negotiable shares No form of restriction on negotiability is included in the company’s article of association. Deviation from code of recommendation: None 32 6. Annual general meeting The company’s shares are not listed. As a consequence, the board has not prepared separate procedures regarding annual general meeting. Deviation from code of recommendation: Based on current ownership structure the board has not seen it as necessary to develop additional guidelines beyond what is described in the legal framework (Aksjeloven). 7. Nomination committee The company’s shares are not listed. As a consequence, the board has not prepared procedures regarding nomination committee. Deviation from recommendation: Based on current owner- ship structure the board has not seen it as necessary to appoint a nomination committee. Members of the board are appointed by the majority owner. 8. Corporate assembly and board of directors: Composition and independence The company does not have a corporate assembly. The boards of directors have the following members: NAME POSITION PERIOD Geir M. Aarstad Chairman 2021–2022 Sebastian Ehrnrooth Member 2020–2022 Ingelise Arntsen Member 2020–2022 Hilde Drønen Member 2020–2022 Morten Haakon Walde Member 2020–2022 Sebastian Ehrnrooth represent Segulah IV L.P. which holds 83,9% of the shares in Beerenberg AS. In addition, some- current and previous board members and members of the management hold shares in the company. Geir M. Aarstad, Ingelise Arntsen, Hilde Drønen and Morten Haakon Walde are all independent of the company, its management and its largest shareholder. Deviation from code of recommendation: None 9. The work of the board of directors The board has established procedures to clarify areas of responsibility as a group and as individuals. The board has established an annual plan for the year and has in 2021 had eleven meetings. The annual plan includes a three-year strategy plan, budget and target setting and review of the operations with focus on control and risk evaluation. The board has appointed an audit committee and estab- lished guidelines for its work. The members of the audit committee are: Ingelise Arntsen, Chairman of the committee Hilde Drønen Morten Haakon Walde The company does not have a compensation committee and evaluates the need annually. The board performes an annual evaluation of the work in the board. Deviation from code of recommendation: None 10. Risk management and internal control The board regularly reviews the performance of the company, among others through a monthly and quarterly report. These reports include financial information regarding the company and specific information relating to the business segments in addition to other important areas like HSE. In addition, the board approves significant tenders and investments. The board of directors has an annual review of risk areas and internal control systems. The board of directors also has an annual review of Corporate Governance including ethical guidelines. Deviation from code of recommendation: None 33 CORPORATE GOVERNANCE 11. Remuneration of the board of directors The remuneration of the board of directors is established by the annual general assembly and is based on an evalu- ation of the workload. The remuneration is not dependent on the financial performance of the group. There is no form of incentive arrangement or similar. Please see note 19 for additional information. Deviation from code of recommendation: None 12. Remuneration of leading employees The boards view on the remuneration level for leading employees are that they should be on a competitive level and motivating. The board has not established guidelines relating to remuneration to leading employees. There should be no remuneration which is not subject to limitations. Please see note 19 for further information. Deviation from code of recommendation: None 13. Information and communication The group has established policies relating to financial information. Beerenberg’s reporting is aiming to be clear and precise and ensure that the general principle of equal treatment is fulfilled. Deviation from code of recommendation: None 14. Takeover There are no provisions or limitation relating to a takeover in the articles of association. There are no other limitations to limit acquisition of the company’s shares. Deviation from code of recommendation: Guidelines relat- ing to takeover has not been established. The board has, considering the current ownership structure, not seen the need to establish guidelines in case of a takeover. 15. Auditor The auditor has minimum two yearly meetings with the audit committee. In addition, the auditor participates in a board meeting in connection with the approval of the annual accounts where sections of the meeting are without participation from the management. The auditor presents the plan for the annual audit to the audit committee where priorities and risk evaluations including internal control are presented. The auditor prepares an audit report about the annual accounts based on the annual audit plan. The total fee paid to the auditor, where a distinction between the auditor fee for annual audit and other services provided are shown in note 7. The extent of other services outside the audit is reviewed by the audit committee. The audit committee evaluates the auditor’s independence. Deviation from code of recommendation: The board has not seen it as necessary to establish additional guidelines. 34 ANNUAL REPORT Board of Directors Geir M. Aarstad (1960), Chairman of the board. Aarstad has a long and broad experience from the construction industry, not least through his many years at Skanska where Aarstad was CEO from 2004 to 2009. He then took over as CEO of the Saudi company Al Rajhi Contracting. Since 2011, Aarstad has prioritized board positions. Today Aarstad is involved in a number of boards including NCC, Stangeland Gruppen and Sig Halvorsen Gruppen. Hilde Drønen (1961), holds a master degree from Business School of Management and a MBA from Norwegian School of Economics. Drønen has been the CFO of DOF ASA since 2004. Drønen held the position as CFO in Bergen Yards from 2002 to September 2004 and has before that held various senior positions in the Møgster Group. Drønen has more than 30 years of experience within the oil and gas industry and has served as director in several external companies mainly in the energy sector. Drønen is currently a board member in BWE Energy Ltd. Hilde Drønen is an independent board member. Ingelise Arntsen (1966), has more than 20 years of experience in the energy industry in the field of hydropower, solar energy and onshore and oshore wind power, including EVP at Statkraft, REC and Aibel. Arntsen has held a number of board room positions and is currently serving as chairman of Asplan Viak and on the board of Statkraft, Corvus Energy, Fred Olsen Windcarrier SBM Oshore N.V. and Eksportkreditt. Ingelise Arntsen is an independent board member. Sebastian Ehrnrooth (1963), investors representative and partner at Segulah Advisor AB. Ehrnrooth was formely Deputy CEO of CityMail, project manager at Bain & Company and sales manager at Motorola. Ehrnrooth holds board room positions at Segulah Advisor AB, Gunnebo Lifting & Blocks, KP Components, Hermes Medical Solutions AB and CCS Healthcare. Morten Walde (1969), CEO in TS Group, has more than 25 years of experience from various operational- and strategic positions in the oil & gas industry. Walde was formerly CEO in Beerenberg (2008–2018) and holds several executive and non-executive positions in dierent companies today. Morten Walde is an independent board member. 35 BEERENBERG AS Annual Director’s Report In Norway, the beginning of 2021 was marked by increased COVID-19 infection rates and a tightening of infection control measures, which led to a fall in Beerenberg’s activity. The activity levels regained traction as the vaccine rollout progressed in the first half of 2021, which eventually led to a full reopening of society and a clear upturn in the activity levels. The upswing in activity continued during most of the fourth quarter, although activity levels fell in December due to the outbreak of the Omicron virus variant and the subsequent infection control measures. Despite a challenging market situation due to the pandemic, Beerenberg delivered strong results in 2021. Beerenberg has demonstrated an ability to mobilize and execute operations across the world through the pandemic constraints. The company has adopted new ways of working and increased its activity, with operating revenue up 24 percent, compared to 2020. Business areas Beerenberg´s activities include innovative service solu- tions for the oil and gas industry, covering the entire life cycle from field studies and newbuilds to maintenance, modi fications, and lifetime extensions. The business area Services include Beerenberg´s core ISS disciplines Insulation, Scaolding and Surface treatment, as well as passive fire protection, technical cleaning, rope access techniques, architectural outfitting services, and the cold work concepts Sveisolat (habitats) and cold cutting / mobile machining – all primarily oered to clients on the Norwegian Continental Shelf (NCS). The Benarx business area is built around the proprietary Benarx® product range, which includes high specifica- tion insulation products (thermal, acoustic, and passive fire protection) as well as insulation solutions for subsea installations. Beerenberg is headquartered in Bergen, with regional oces in Skien, Poland, UK, South Korea, Thailand, and Singapore. Financial statement The operating revenue in 2021 increased by approx. 24% to NOK 2,136 million from NOK 1,723 million in 2020. Earnings before interest, taxes, depreciation, and amorti- sation (EBITDA) ended at NOK 217 million, compared to NOK 217 million in 2020. The EBITDA margin was 10,1 %, down from 12,6 % in 2020. Net financial cost for the full year ended at NOK 82 million, down from NOK 91 million last year and the full year net profit of 2021 was NOK 56 million versus a profit of NOK 46 million in 2020. The estimated order backlog at the year-end, including frame agreements and options, was NOK 7.3 billion, down from NOK 8.3 billion in 2020. Capital, cash flow and liquidity Total assets at the end of 2021 amounted to NOK 1.830 million, up from NOK 1.676 million in 2020, due to higher activity in 2021 compared to 2020. The equity was NOK 546 million, up from NOK 487, corresponding to an equity ratio of 30 %. Cash flow from operating activities depends on several factors, including progress on and delivery of projects and changes in working capital. Cash flow from operating 36 37 activities was NOK 109 million, compared to NOK 88 million in 2020. Beerenberg’s net cash outflow for investing activities was NOK 39 million in 2021, up from NOK 17 million. Net cash flow related to financing activities was NOK -16 million, down from NOK -188 million in 2020. The high cash outflow in 2020 is related to refinancing of the bond in 2020. Total non-current assets were NOK 1033 million in 2021, down from NOK 1037 million in 2020. Current assets were NOK 796 million in 2021, up from NOK 638 million. Total current liabilities were NOK 601 million in 2021, up from NOK 507 million and total non-current liabilities were NOK 682 million in line with NOK 682 million in 2020. The Net interest-bearing debt was NOK 551 million in 2021 compared to NOK 601 million in 2020. Shareholders Segulah IV L.P. owns 83,9 % of the shares in Beerenberg AS. The remaining shares are held by Alpinvest Partners Co-Investment, previous and current board members and the Beerenberg management. Financial risk The board of directors of the Beerenberg group sets out a framework and develops guidelines for risk management in the group and continuously controls and supervises the implementation of these. The group’s central finance department has overall responsibility for day-to-day manage ment and follow-up of the group’s financial risks and works closely with the operational units to identify, evaluate and implement necessary measures to reduce risk. Risk management covers credit risk, currency risk, interest rate risk, financial and liquidity risk, market risk and technology risk. Credit risk The Beerenberg group conducts business in an environ- ment dominated by large clients with high credit ratings, and historically there have been few losses incurred on its receivables. New customers are credit-checked before entering contracts, and eorts are made during inter- national operations to use letters of credit to safeguard receivables and payment demands wherever possible. The oil and gas market have elements of increased credit risk. To deal with these, the group has introduced additional measures to monitor credit risk within certain client segments, especially maintenance, modifications and for international clients. The ongoing Covid-19 pandemic and the strict sanctions that have been imposed against Russia and Belarus might increase the credit risk. Beerenberg group is actively moni- toring the clients risks in that aspect. Currency and interest rate risk A key principle for the Beerenberg group is to keep the currency risk as low as possible by using the same currency for both income and expenditure. In its international operations the group is not always able to follow this prin- ciple and as a result client and supplier contracts involving currency exposure beyond defined limits should be hedged. A limited amount of the group’s revenues, expenditure and investments are denominated in foreign currencies. The group’s interest rate risk in relation to interest-bearing debt is for the most part hedged through a long-term interest rate agreement, whereby a variable NIBOR-based interest rate plus a spread has been swapped so that exposure towards fluctuations in the short-term interest rate is reduced. Financial and liquidity risk The group´s financing arrangement requires it to achieve adequate cash flow and revenues over time. The group continues to measure the financial criteria in line with the terms of the agreement. The Beerenberg group’s financing is partly a bond loan with expiry date November 2023. The bond was listed in 2nd quarter of 2021. In addition, the group has a revolving credit facility in a commercial bank. Market risk The Beerenberg group operates in the oil and gas market, which due to price fluctuations can be volatile. Beerenberg is aected by the oil companies’ actions and the prevailing oil and gas prices. To mitigate this, Beerenberg has diversi- fied into various segments of the market, e.g., new-build ANNUAL DIRECTOR’S REPORT 38 and maintenance and modification projects. Beerenberg is also expanding internationally, with the proprietary Benarx® product range and it is looking into related market segments, such as infrastructure for both products and services. There is reason to believe that investment growth on the Norwegian Continental Shelf will abate in the long term. To expand its operations and customer base, the group has therefore been working to grow its international presence. The current European energy situation, after the Russian Ukraine invasion, might influence the level of maintenance and investments in oil and gas. The consequences of the acts of war are uncertain. Technology risk The market in which Beerenberg operates will continue to seek improved solutions and products for the future. To maintain its competitive edge, the group has adopted a strategy of continued investment in engineering services, digitalization, and R&D along with an ambition to protect its assets through patents and other proprietary rights. Research and development In regard to research and development, The Beerenberg group’s focus is on product and method development in the field of ISS. Beerenberg is working actively with research communities and institutions to develop new technology and in-house expertise within the group’s areas of opera- tion. Research and development are conducted in close partnership with clients to create value for the group’s customers. The Beerenberg group´s continuous focus on research and development has resulted in 16 registered patent families with 55 regional and national patents, 1 PCT/regional application per 31.12.21. Sustainability governance For Beerenberg, the attention to ESG is fundamentally about safeguarding our own future, securing sustainable conditions for the environment, and helping a positive social development. ESG is linked to the long-term success of Beerenberg. It is our vision to go “Beyond expectations” to seek solu- tions that exceed the expectations of stakeholders, and we therefore have a responsibility to drive necessary changes, while continually seeking out and creating more sustain- able solutions. We have consistently been working on our HSEQ performance and we have worked on strengthening our approach to the wider ESG scope. In 2021 the group developed and implemented a ESG strategy in line with recognized ESG frameworks and stakeholder expectations. Social responsibility and ethics Beerenberg’s annual report includes a separate account of the group’s approach, conduct and guidelines in relation to social responsibilities and ethics. The group´s ethical guidelines are a central part of its training programmes as training in the group’s ethical guidelines helps ensure that employees and others acting on behalf of the group exercise good judgement and behave in a manner that is consistent with the group´s ethical rules. Human relations, organisation and working environment Human relations and working environment The Beerenberg group had 1,253 employees as at 31.12.21, up from 1,203 at the end of 2020. Including contractors, the number of FTEs totalled 2,326. Beerenberg seeks to sustain a good working environment with enthusiastic and motivated sta who feel that they are being well looked after. The group has sta arrangements and fora for co-operation between sta and management, as is common within the sector. Equality and discrimination Beerenberg has respect for every individual and recruitment is based on qualifications without regard for the candidate’s gender, age, disability, sexual orientation, ethnicity, religion, or cultural background. Beerenberg wishes to create an inclusive workplace culture and is working actively to ensure a good working environment. All employees shall be given salary and working conditions that are competitive and fair. It is Beerenberg’s ambition to increase the proportion of women at all levels within the organisation by taking a sys- tematic approach to recruitment and enabling development 39 and growth within the organisation. Female employees, most of whom serve in administrative positions, made up 6.2 % of the workforce at year end. In 2021 there were one woman in the group management team and two women on the board of directors. Beerenberg has made a separate report to document the work implemented according to “The activity duty and the duty to issue a statement”. The report could be read at www.beerenberg.com. Organization The group is organised as two business divisions – Services and Benarx. The group established a subsidiary in Thailand, Beerenberg Holding (Thailand) LTD, through reorganizing the business in Thailand. Health, Safety and the Environment Beerenberg continuously works to prevent injury and to create a working environment that is meaningful and healthy for all employees. Beerenberg has adopted a zero-tolerance philosophy in relation to injury to people, damage to the natural environment and material assets. The eort to prevent acute damage to health and injuries is a high priority for Beerenberg. By focusing on training, health monitoring, risk management and robust working practices, Beerenberg seeks to reduce the risk of health issues and injuries amongst employees exposed to risk. Beerenberg’s health monitoring programme also applies to our subcontractors and is man- aged through contract meetings, reporting and audits. Good working practices, job planning, and procedures alone are not enough to prevent sickness and injury. The key issue is compliance, whereby the knowledge and motivation of individual employees are key factors. Beerenberg’s commit- ment to HSE includes (but is not limited to) obligatory HSE training for all employees and contractors as well as a three- day HSE course for all managers. Central to Beerenberg’s preventive HSE programme are also various surveys designed to strengthen our knowledge base, identify risk and associated HSE measures. The group is working to reduce sickness absence, both at a collective and an individual level. Sickness absence in 2021 stood at 8,3 %, an increase from 7 % in 2020. Short-term sickness absence accounted for 4.0 % and long-term absence for 4.3 %. The corresponding figures for 2020 were 3.7 % and 3.3 %, respectively. In 2021, Beerenberg recorded 23 Incident involving personal injured requiring more than first aid; Four Serious Lost Time injuries (SLT), Nine lost time injuries (LTI), where Eleven injuries required medical treatment and ten of those were resolved with alternative work. Beerenberg continues its systematic and preventive approach to reducing the number of incidents. The natural environment When conducting its operations, Beerenberg aims to minimize the environmental impact and the group aims to continuously improve its environmental performance. Beerenberg’s impact on the natural environment is primar- ily considered to stem from emissions of volatile organic compounds (VOCs) because of the use of paint products and solvents. This is a natural consequence of the group’s activities, and the volume of VOC emissions will always reflect the volume of assignments and the type of products being ordered and delivered. Beerenberg endeavours to use alternative products and services that help reduce the environment footprint and with a lesser impact on the environment where possible (the substitution requirement). To reduce the negative environmental eects of its waste output, Beerenberg has introduced robust procedures for waste disposal and final processing (material and energy harvesting). The work of reducing microplastics is at the top of Beerenberg´s agenda through extended use of robots to collect microplastic. Beerenberg is certified according to NS-EN ISO 9001: 2015 Quality management, NS-EN ISO 14001: 2015 Environmental management, and NS-ISO 45001: 2018 Occupational health and safety. Future prospects Beerenberg’s strategy plan was revised in the autumn of 2021. The plan provides a framework for the group’s development up until 2024. The Groups priorities in the period includes invest in people, invest in sustainability and invest in technology. ANNUAL DIRECTOR’S REPORT 40 We expect that the maintenance and modifications market will grow in the coming years. The group’s long-term contracts over 10 and 15 years will provide a solid base for the group going forward. Yet it is important to note that the market is shaped by external factors, especially the price of oil. Throughout 2021, the group has taken steps to boost its competitiveness and these initiatives will continue. Together with the group’s robust foundations, this means the group expects to maintain its revenues and see long term growth. The board emphasis that the information included in this annual report contains certain forward-looking statements that address activities or developments that the Company anticipates will or may occur in the future. The statements are based on assumptions and estimates, and some of them are beyond the Company’s control and therefore subject to risks and uncertainties. Management and board liability Insurance Management and board liability Insurance has been established for the board members and management. The insurance covers any personal liability that they may incur in connection with the performance of their duties. The insurance is established on market terms in an international insurance company with a solid rating. The board’s statement on corporate governance and executive management The board of directors has directed the company and the group to develop procedures and systems for compliance with the Norwegian Code of Practice for Corporate Governance. The associated statement is presented as a separate part of the annual report. The board’s assessment and events after the balance sheet date When this annual report is published, Russia has invaded Ukraine and strict sanctions have been imposed against Russia and Belarus. The consequences of the acts of war are uncertain. The Beerenberg Group has insignificant activities in and exposure to these countries but is following developments closely to detect any changes in our risk assessment. In the board’s view the financial statements and statement of financial position with accompanying notes provide a true picture of the activities of Beerenberg AS and of the group’s position at year end. In accordance with Section 3-3a of the Norwegian Accounting Act, the board can confirm that the requirements for the going concern assumption have been satisfied and that the financial statements have been prepared on that basis. BERGEN APRIL Board of Directors at Beerenberg AS Arild Apelthun CEO Hilde Drønen Morten Walde Geir M. Aarstad Sebastian Ehrnrooth Ingelise Arntsen Chairman 41 BEERENBERG AS GROUP Group Accounts Consolidated Income Statement 44 Consolidated Statement of Comprehensive Income 45 Consolidated Statement of Financial Position 46 Consolidated Statement of Changes in Equity 48 Consolidated Statement of Cash Flows 49 Note 1 Information about the group 50 Note 2 Basis of preparation 50 Note 3 Accounting principles 51 Note 4 Financial risk management 58 Note 5 Segment 61 Note 6 Revenues 63 Note 7 Other operating costs 64 Note 8 Personnel costs 64 Note 9 Finance income and finance costs 65 Note 10 Tax 65 Note 11 Property, plant and equipment 67 Note 12 Intangible assets and Goodwill 68 Note 13 Financial instruments 70 Note 14 Inventory 74 Note 15 Bank deposits and cash equivalents 74 Note 16 Share capital and shareholder information 74 Note 17 Employee benefits – pensions 75 Note 18 Remuneration of key employees 75 Note 19 Warranty liabilities and provisions 76 Note 20 Other short-term liabilities 76 Note 21 Contingent outcomes 77 Note 22 Related parties 77 Note 23 Group entities 78 Note 24 Derivatives 79 Note 25 Interest-bearing liabilities 80 Note 26 Secured liabilities 81 Note 27 Events after the reporting date 81 42 43 BEERENBERG AS GROUP GROUP ACCOUNTS 2021 BEERENBERG AS GROUP ACCOUNTS Consolidated Income Statement Amounts in NOK 1,000 Note 2021 2020 Revenue from contracts with customers 2 128 301 1 695 323 Other revenue 7 718 27 404 Total revenue 5, 6 2 136 019 1 722 727 Materials, goods and services 165 859 196 170 Personell costs 81718 1 430 805 1 033 406 Other operating costs 7 322 904 276 446 Total operating expenses 1 919 568 1 506 022 Operating result before depreciation, amortisation and impairment losses 216 451 216 706 Depreciation, amortisation and impairment losses 11, 12 63 382 70 931 Operating result 153 069 145 775 Financial revenue 9 2 153 2 575 Financial expenditure 9, 25 84 368 93 392 Result before tax 70 854 54 958 Ta x 10 14 421 8 478 Annual profit/loss 56 433 46 480 The annual profit/loss is attributable to: Shareholders of the parent company 57 760 47 121 The annual profit/loss is attributable to: Non controlling interests -1 327 -641 Annual profit/loss 56 433 46 480 Basic earnings per share for 1 000 000 A-shares 16 0,056 0,046 Diluted earnings per share are identical as there is no dilutive effect. The accompanying notes 1–27 are an integral part of these financial statements. 4444 GROUP ACCOUNTS 2021 BEERENBERG AS GROUP BEERENBERG AS GROUP ACCOUNTS Consolidated Statement of Comprehensive Income Amounts in NOK 1,000 Note 2021 2020 Annual profit/loss 56 433 46 480 Amounts in NOK 1,000 Note 2021 2020 Other revenue and expenses Change in value of derivatives 24 6 100 -49 Conversion differences -3 379 -1 083 Total Comprehensive Income 59 153 45 347 Comprehensive income is attributable to: Shareholders of the parent company 60 481 45 988 The statement of performance is attributable to: Non controlling interests -1 327 -641 Total Comprehensive Income 59 153 45 347 Other revenue and expenses is after tax and will be reversed in the income statement. The accompanying notes 1–27 are an integral part of these financial statements. 4545 BEERENBERG AS GROUP GROUP ACCOUNTS 2021 BEERENBERG AS GROUP ACCOUNTS Consolidated Statement of Financial Position Amounts in NOK 1,000 Note 31122021 31122020 Assets NONCURRENT ASSETS Intangible assets 12 19 246 31 057 Goodwill 12 782 762 782 762 Property, plants and equipment 11, 26 208 340 213 563 Financial fixed assets 17, 24 20 221 9 874 Deferred tax assets 10 3 010 0 Total Noncurrent assets 1 033 579 1 037 256 Amounts in NOK 1,000 Note 31122021 31122020 Assets CURRENT ASSETS Inventory 14, 26 77 790 66 250 Accounts receivable from customers 6, 13, 26 306 387 249 611 Earned, not invoiced accounts receivables 6, 13, 21 195 220 143 998 Other receivables 13 23 701 39 196 Cash at bank 13, 15 193 345 139 733 Total current assets 796 443 638 787 Total Assets 1 830 022 1 676 043 4646 Hilde Drønen Morten Walde Arild Apelthun CEO Geir M. Aarstad Sebastian Ehrnrooth Ingelise Arntsen Chairman BEERENBERG AS GROUP ACCOUNTS Amounts in NOK 1,000 Note 31122021 31122020 Equity and Liabilities EQUITY Share capital 26 700 26 700 Share premium 240 310 240 310 Other equity 279 531 219 050 Non controlling interests -113 811 Total equity 16 546 428 486 871 Amounts in NOK 1,000 Note 31122021 31122020 Equity and Liabilities LIABILITIES Pension liabilities 17 17 322 12 175 Deferred tax liabilities 10 0 339 Interest bearing long-term liabilities 13, 25, 26 665 173 668 384 Derivatives 24 0 1 122 Total long-term liabilities 682 495 682 019 Interest bearing short-term liabilities 13, 25, 26 78 861 70 757 Supplier liabilities 188 014 135 285 Tax payable 10 18 520 12 050 Social security, VAT and other taxes 90 967 72 326 Other short-term liabililities 20, 21 203 210 196 943 Warranty liabilities 19 21 527 19 792 Total short-term liabilities 601 099 507 153 Total liabilities 1 283 594 1 189 172 Total equity and liabilities 1 830 022 1 676 043 The accompanying notes 1–27 are an integral part of these financial statements. BERGEN APRIL Board of Directors at Beerenberg AS 4747 BEERENBERG AS GROUP GROUP ACCOUNTS 2021 Amounts in NOK 1,000 Share capital Share premium Conver- sion reserve Hedging reserve Retained earnings Total Non controlling interests Total Equity as per 31.12.2019 26 700 240 310 3 413 -826 170 475 440 072 0 440 072 Annual result for the period 47 121 47 121 -641 46 480 Other Comprehensive income -1 083 -49 -1 133 -1 133 Transactions with shareholders Changes in non-controlling interests 1 452 1 452 Equity as per 31.12.2020 26 700 240 310 2 329 -875 217 596 486 060 811 486 871 Annual result for the period 57 760 57 760 -1 327 56 433 Other Comprehensive income -3 379 6 100 2 721 2 721 Transactions with shareholders Changes in non-controlling interests 404 404 Equity as per 31.12.2021 26 700 240 310 -1 050 5 225 275 356 546 541 -113 546 428 The accompanying notes 1–27 are an integral part of these financial statements. BEERENBERG AS GROUP ACCOUNTS Consolidated Statement of Changes in Equity 4848 GROUP ACCOUNTS 2021 BEERENBERG AS GROUP Amounts in NOK 1,000 Note 2021 2 020 Cash flows from operating activities Result for the period before tax 70 854 54 958 Tax paid for the period -15 565 -16 418 Gains/losses from sales of fixed assets -2 935 -60 Depreciation, write-down and amortisation 11, 12 63 382 70 896 Changes to inventory 14 -11 541 -5 089 Changes to accounts receivable from customers 13 -56 777 1 981 Changes to supplier liabilities 52 728 -26 525 Difference between expensed and paid-in/out pension premium 1 497 29 Changes to other time restricted items 7 729 7 736 Net cash flow from operating activities 109 372 87 508 Amounts in NOK 1,000 Note 2021 2020 Cash flows from investment activities Incoming payments from the sale of tangible and intangible fixed assets 11 3 186 91 Outgoing payments from acquisition of tangible and intangible fixed assets 11, 12 -42 663 -17 109 Net cash flow from investment activities -39 477 -17 018 Amounts in NOK 1,000 Note 2021 2020 Cash flows from financing activities Outgoing payments on lease liabilities 13, 25 -15 866 -19 085 Incoming payments on long-term loans 13, 25 50 000 680 076 Outgoing payment on long-term loans 13, 25 -50 822 -850 000 Payments from entry of non-controlling interests 23 404 1 452 Net cash flow from financing activities -16 284 -187 556 Net changes to cash and cash equivalents 53 612 -117 067 Cash and cash equivalents per 01.01 139 733 256 800 Cash and cash equivalents per 31.12 15 193 345 139 733 The accompanying notes 1–27 are an integral part of these financial statements. BEERENBERG AS GROUP ACCOUNTS Consolidated Statement of Cash Flows 4949 BEERENBERG AS GROUP GROUP ACCOUNTS 2021 Note 1 Information about the group Beerenberg AS is a limited liability company registered in Bergen, Norway. The Beerenberg Group comprises the parent company Beerenberg AS and the subsidiaries Beerenberg Holding AS, Beerenberg Services AS, Beerenberg Industri AS, Beerenberg Solutions Poland Sp. z o.o, Beerenberg Korea LTD, Beerenberg Singapore LTD, Beerenberg UK LTD, Beerenberg Holding (Thailand) LTD and Beerenberg (Thailand) Co., LTD. The head oce is in Bergen and the group has oces in Stavanger and Skien in Norway, in Singapore, Poland, South-Korea and in Thailand. The group delivers expertise and technology as well as engineering and inspection services in the fields of surface treatment, passive fire protection, insulation, architecture/ interiors, scaolding, Rope access techniques, and habitats as well as mobile machining, cutting and decommissioning. The consolidated financial statements comprise the parent company and subsidiary companies, referred to collectively as “the group” and individually as “group entities”. Refer to note 16 for ownership structure. The annual financial statements were authorised for issue by the board of directors on 26 April 2022. Note 2 Basis of preparation Confirmation of financial framework The consolidated financial statements have been prepared in accordance with EU-approved IFRS standards and associ- ated interpretations as required as at 31 December 2021 and in accordance with additional Norwegian disclosure require- ments under the provisions of the Norwegian Accounting Act as at 31 December 2021. There have been no changes in accounting principles from 2020 to 2021. The proposed consolidated financial statements were author- ised by the board and CEO on the date stated in the signed statement of financial position. The consolidated financial statements shall be reviewed by an ordinary general meeting for final approval. FUNCTIONAL CURRENCY AND PRESENTATION CURRENCY The consolidated financial statements are presented in NOK, which are both the functional currency of the parent com- pany and the presentation currency of the group. The accounts of individual entities within the group are measured in the currency used where the entity predominantly operates (functional currency). The group have subsidiaries in Poland, UK, Thailand, Singapore and Korea where the functional currency is PLN, GBP, THB, SGD and KRW respectively. However, of the groups consoli- dated revenue more than 90% is in NOK, thus changes in currencies have limited impacts on the consolidated figures BASIS OF CALCULATIONS The consolidated financial statements have been prepared using historical cost principles, with the exception of ▪ Derivatives, which are assesed at fair value. 5050 GROUP ACCOUNTS 2021 BEERENBERG AS GROUP Note 3 Accounting principles The accounting principles described below have been con- sistently applied to all companies in the group in all periods. Consolidation principles SUBSIDIARY COMPANIES The subsidiary companies include all entities where the group has a deciding influence on the entity’s financial and opera- tional strategy, normally through the ownership of more than 50% of the voting capital, and where the entity constitutes an enterprise. Subsidiaries are consolidated from the date when control was transferred to the group. Consolidation ceases on the date when the group no longer has control. Acquired subsidiaries are accounted for in the consolidated financial statements based on the parent company’s acquisi- tion cost. When acquiring a subsidiary company, the purchase price of the acquired undertaking must be distributed so that the opening balance of the group reflects the estimated fair value of the assets and liabilities that have been acquired. In order to establish the fair value of an acquisition, alternative methods must be used for assets for which there is no active market. Excess value beyond that which can be attributed to identifiable assets and liabilities is recognized as Goodwill. If the fair value of the equity in an acquired company exceeds the consideration paid, the excess is immediately recognized as income. The allocation of the purchase price upon consolida- tion is amended if new information appears about the fair value applicable on the date control was obtained, no later than 12 months after the acquisition took place. Intragroup transactions, balances and unrealised gains are eliminated. Unrealised losses are also eliminated but are con- sidered to be an indicator of impairment, which would require an assessment to be made as to whether the transferred asset should be written down. Group entities The statements of financial position and comprehensive income of group entities with a functional currency that dif- fers from the presentation currency are translated as follows: a) The statement of financial position is translated using the exchange rate at the end of the reporting period b) The statement of comprehensive income is trans- lated using the average exchange rate (if the average exchange rate does not give a reasonable overall estimate for the transaction exchange rate, then the transaction exchange rate is used) c) Translation dierences are taken to other revenues and costs and are specified as a separate item. Conversion reserve This fund is a part of the statement of equity and includes all foreign exchange dierences related to the conversion of financial statements from foreign subsidiaries. Financial instruments The group initially recognizes financial instruments on the date the group becomes a party to the contractual provisions of the instrument. CLASSIFICATION AND MEASUREMENT The group classifies its financial assets in the categories (1) amortized cost (2) financial assets at fair value through other comprehensive income (3) financial assets at fair value through profit or loss. Classification is dependent on the objec- tive of the financial instrument and the groups business model. AMORTIZED COST Financial instruments that the group holds in order to receive contractual cash flows is recognized at fair value and is in subsequent periods measured at amortized cost. This mainly relates to financial instruments as trade receivables, other receivables and bank deposits. Financial liabilities are recognized at fair value and are measured, as a main rule, in subsequent periods at amortized cost. Financial liabilities like trade payables, leasing, bond, and other liabilities are classified as amortized cost. If an impairment in the fair value of a financial asset has been taken directly to other income and expenses, and if there is objective evidence that the asset has been the subject of an impairment, the accumulated loss that has been recognized directly in other income and expenses in profit or loss will be recognized. This applies even if the financial asset has not been realised. The loss recognized in profit or loss is the dierence between the acquisition cost at the time of acquisi- tion and the current fair value, less any impairment of the financial asset previously recognized in profit or loss. With the exception of inventories (see Inventories) and deferred tax assets (see Income tax), the carrying amount of the group’s financial assets is continually assessed to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. 5151 BEERENBERG AS GROUP GROUP ACCOUNTS 2021 FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME The group has entered into an interest swap in order to reduce the risk of variable interest rate on Bond. This interest swap is designated as a hedge instrument in hedge account- ing in accordance with IFRS 9, and changes in fair value of this interest swap is recognized through other comprehen- sive income. Details of this interest swap is further described in note 24. FAIR VALUE THROUGH PROFIT OR LOSS By default, other financial instruments that are not classi- fied as amortized cost or designated as a hedge instrument and recognized as fair value through other comprehensive income is recognized as fair value through profit or loss. Derivatives are classed as financial assets at fair value through profit or loss, unless they are part of a hedge relationship. The only derivative the group have in 2021 is designated as a hedge instrument, thus there are now no financial instruments recognized through profit or loss DERECOGNITION OF FINANCIAL INSTRUMENTS The group derecognizes a financial asset when the contrac- tual rights to the cash flows from the asset expire, or when the group transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substan- tially all the risks and rewards of ownership of the financial asset are transferred. Trade receivables Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. They are generally due for settlement within 30–45 days and are therefore all classified as current. Trade receivables are recognised initially at the amount of consideration that is unconditional, unless they contain significant financing com- ponents, when they are recognised at fair value. The group holds the trade receivables with the objective of collecting the contractual cash flows and therefore measures them subsequently at amortised cost using the eective interest method. Details about the group’s impairment policies and the calculation of the loss allowance are provided in note 13. Trade payables and other short-term payables Trade payables are measured at fair value when initially recognized and at amortised cost in subsequent periods. Due to their short residual maturity, the nominal value of the payables is deemed to reflect their fair value / amortised cost. Cash and cash equivalents Cash and cash equivalents comprise cash and bank deposits. Share capital Ordinary shares are classed as equity. Costs directly attribut- able to the issue of ordinary shares are recognized as a deduc- tion from equity (share premium) net of any tax eects. Tangible non-current assets The group’s tangible non-current assets comprise production equipment, workshops and improvements to buildings and other operating equipment. Tangible non-current assets are recognized in the statement of financial position at cost less accumulated depreciation and write-downs. The cost price of tangible non-current assets is the purchase price including expenses directly attributable to the purchase of the asset. The cost of self-constructed assets includes the cost of materials, direct labour costs, borrowing costs and other costs directly attributable to bringing the assets to a working condition for their intended use, the cost of dismantling and removing the items, and restoring the site on which they are used. Expenses incurred after the non-current asset has been put into use, such as ongoing daily maintenance, are recognized in profit or loss in the period in which they were incurred, except for other expenses expected to generate future economic benefits that are recognized as a part of the non- current asset. If substantial, individual components of an item of property, plant and equipment have dierent useful lives, they are accounted for as separate components. Gains and losses on disposal are included in the operating profit or loss. Goodwill The group measures Goodwill as the fair value of the consid- eration transferred, less the net amount (normally fair value) of the identifiable assets acquired and liabilities assumed, all measured as at the acquisition date. Goodwill is distributed to cash-generating units and is not subject to an amortisation schedule but is tested for impair- ment annually and when there is an indication that a write- down is necessary. Goodwill write-downs are not reversed. For the purpose of testing Goodwill for impairment, Goodwill is allocated to the cash-generating units that are expected to benefit from the acquisition. Note 3 | Accounting principles 52 52 GROUP ACCOUNTS 2021 BEERENBERG AS GROUP Intangible assets RESEARCH AND DEVELOPMENT Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge, isrecognized in profit or loss as incurred. Development activities include designs or plans for the production of new or substantially improved products and processes. Development expenditure is capitalized only if it can be reliably measured, if the product or process is techni- cally or commercially viable, if future economic benefits are probable, and if the group intends to and has sucient resources to complete the development and to sell or use the asset. The expenditure capitalized includes materials, direct labour, directly attributable overhead costs and borrowing costs. Other development expenditure is recognized in profit or loss as incurred. Capitalized development expenditure is measured at cost less accumulated amortisation and accumulated impairment losses. Depreciation Property, plant and equipment are depreciated on a straight- line basis over their estimated useful life. Depreciation is calculated on the basis of the cost of the asset or other amount substituted for cost, less its residual value. The economic useful life of scaolding is assessed, and its period of use has been set at 15 years. The period of use is the period in which the group expects to use the scaolding and may thus be shorter than its economic useful life. The period of use and the residual value are assessed at the end of each reporting period and adjusted if necessary. Scaolding is depreciated over a period of 15 years. Containers and workshops are depreciated over a period of 10 years, while other production equipment and other assets are depreciated over a period of 3–7 years. Intangible assets are amortised on a straight-line basis over their estimated useful life from the time they are available for use, since this most closely reflects the consumption of the future economic benefits embodied in the asset. The estimated useful lives for the current period and comparative periods are as follows: ▪ Customer relationships 3–10 years ▪ Technology 5–10 years Amortisation method, useful life and residual value are reviewed annually and adjusted if necessary. Impairment losses of non-financial assets When the carrying amount of a non-current asset is higher than the estimated recoverable amount, the value is written down to the recoverable amount. The recoverable amount is the greatest of fair value less cost to sell and its value in use. The scope for reversing any previous write-downs (except Goodwill) is assessed on each reporting date. Goodwill and intangible assets with indefinite useful lives are tested for impairment annually. An impairment loss is recognized when the carrying amount of an asset or cash-generating unit exceeds the recoverable amount. Impairment losses are recognized through profit or loss. Impairments estimated for cash-generating units are allo- cated so that the carrying amount of any Goodwill in the cash-generating units is reduced first. Next, the remaining impairment losses on the other assets in the unit are allo- cated pro rata based on the carrying amount. CALCULATING THE RECOVERABLE AMOUNT The recoverable amount of an asset is the greater of the net selling price (less cost to sell) and value in use. The value in use is estimated by discounting expected future cash flows to their present value using a market-based risk-adjusted discount rate. For assets that do not generally generate independent cash flows, the recoverable amount is deter- mined for the smallest cash-generating unit to which the asset belongs. REVERSING IMPAIRMENT LOSSES Impairment losses on Goodwill are not reversed. In respect of other assets, impairment losses are reversed if there is any change to the estimates used to calculate the recoverable amount. Lease agreements IFRS 16 requires all contracts that contain a lease to be recognized on the balance sheet as a right-of-use asset and acorresponding lease liability. The lease liability represents the net present value of the lease payments to be made over the remaining lease period. The right-of-use asset is depreciated over the lease term. For Beerenberg this mainly applies to oce buildings and other facilities. Short-term and low value lease agreements are exempted from IFRS 16 and accounted for as operating expenses. 5353 BEERENBERG AS GROUP GROUP ACCOUNTS 2021 Note 3 | Accounting principles Inventories Inventories are measured at an amount equal to the lower of acquisition cost and net realisable value. The net realisable value is the estimated selling price in the ordinary course of business less the estimated cost of completion and selling expenses. The acquisition cost of manufactured inventories includes the direct cost of materials, direct labour and a share of indirect production overheads, while the acquisition cost of purchased inventories is the cost price based on the first-in-first-out principle and includes the cost incurred in acquiring the inventories, production or conversion overheads and other costs incurred in bringing them to their existing location and condition. In accordance with IAS 2.28, the value of inventories is written down to the net realisable value if the inventories have been damaged or have become wholly or partially obsolete or if the selling price has fallen. Pension costs and pension obligations Pension costs and pension obligations are treated in accord- ance with IAS 19R. Pensions are described in Note 17. The net pension costs for the period are classed as salary and person- nel costs. The group operates a pension scheme financed by contribu- tions paid into a separate legal entity (insurance company) in the form of a defined contribution plan. A defined contribu- tion plan is a pension scheme under which the group pays fixed contributions to the insurance company. The group has no further payment obligations once the contributions have been paid. The contributions are recognized in profit or loss as salary costs as incurred. Prepaid contributions are recognized as assets to the extent that they can be refunded or reduce future contributions. The group is also participant in the AFP scheme which is a pension-scheme that pays a lifelong supplement to ordinary pension benefits. The group has in addition to the ordinary pension scheme also a supplementary pension plan for executive manage- ment and key employees. Provisions Provisions are accounted for when the group has an obliga- tion (legal or self-imposed) resulting from a previous event if it is likely (more likely than not) that a financial settlement will take place as a result of this obligation and the size of the amount can be reliably calculated. If the eect is significant, the provision is calculated by discounting expected future cash flows with a discount rate before tax that reflects the market’s valuation of the time value of money and, if relevant, risks specifically linked to this obligation. WARRANTIES A provision for warranties is recognized when the under- lying products or services are delivered. The warranty period is normally 2-5 years. At the end of a project, a provision is made to meet any warranty claims and complaints. The provision is based on historical information about warranties weighted by the probability that a warranty expense will be incurred. It is normal for such provisions to be a fixed propor- tion of the contract value, but a larger or smaller provision may be made depending on the specific assessment of indi- vidual projects. Experience from previous projects provides the best basis for making both general and specific warranty provisions. Factors that may aect the size of the provision include the group’s quality measures and project implemen- tation model. RESTRUCTURING A provision for restructuring is recognized once the group has approved a detailed and formal restructuring plan and the restructuring has either commenced or been communi- cated to the aected parties. ONEROUS CONTRACTS A provision for onerous contracts is recognized when the group’s expected revenue from a contract is lower than the unavoidable cost of meeting its contractual obligations. The estimated provision is the present value of the lower of the expected cost of terminating the contract and the expected net cost of fulfilling the contract. Before a provision is made, all impairment losses on assets associated with the contract are recognized. Revenue recognition REVENUES FROM SALE OF SERVICES Most of the group’s revenue is associated with long-term maintenance contracts. Revenues are recognized in accord- ance with IFRS 15 Revenue from contracts with customers. The groups primarily customers are within onshore/oshore oil service. The contracts are invoiced and recognized as income on basis of hours incurred multiplied by a defined hourly rate associated with the services provided, unit price contracts are recognized as income in accordance with meas- ured progress and equipment rental is recognized as income in the period the equipment is hired out. As a general rule, these contracts are agreed with a fixed price per unit (unit price contracts) or a fixed price per hour, and variations thereof. What constitutes a unit varies from contract to contract, but as an example it may be a square metre of surface treatment. At the end of each billing period, the group reports to the customer the number of hours and/or number of units 5454 GROUP ACCOUNTS 2021 BEERENBERG AS GROUP completed in the period. The former is based on the recorded and approved number of hours, while the latter is based on physical progress. The customer reviews the supporting documentation and issues a payment certificate to the group. On the basis of the payment certificate, the group recognizes the revenue for the period as income and bills the customer. By having the customer review the documentation of work completed and issue a payment certificate, the revenue has the prior approval of the customer. On smaller projects, the work carried out in the period is billed and recognized as income based on work completed or, as a general rule, based on approved timesheets, but without the customer issuing a payment certificate in advance. Some smaller projects are also billed and recognized as income upon completion of the project. These types of projects will rarely stretch over multiple reporting periods. If the outcome of a contract cannot be measured reliably, the contract revenues are recognized only to the extent that the incurred contract expenses are expected to be met by the customer. An expected loss on a contract is recognized in profit or loss as incurred. REVENUES FROM SALE OF GOODS Revenue from the sale of goods is recognized when persua- sive evidence exists that control of the goods have been transferred to the buyer. For sales of the group’s products, transfer normally occurs once the product is received at the customer’s warehouse or installation. In some contracts, the delivery of materials is incorporated in the fixed hourly price or the fixed unit price. In other cases, the delivery of materials is billed separately. The delivery of materials is recognized as income when the materials have been put into use on a project or transferred to the customer in some other way. REVENUES FROM HIRING OF EQUIPMENT Normally revenue from hiring of equipment is considered as revenue from sale of service as the letting of scaolding is part of the same performance obligation. The group also have some letting of scaolding without connection to revenue from sale of service. Such letting of scaolding and other equipment is invoiced and recognized as income in the period it has been let. ACCRUED, NOT INVOICED CONTRACT REVENUES Accrued, not invoiced contract revenues represent the value of completed contract work less payment from the customer. The value of completed contract work is measured at cost plus accrued net profit to date. Payment from customers is oset in the statement of financial position against contract work in progress. Received customer advances in excess of value of work performed are classified as current liabilities. Government grants The group receives various types of government grants in relation to its research and development activities. These may be funding through the SkatteFUNN scheme or other grants. Such grants, whereby the group is compensated for expenses incurred, are systematically recognized in profit or loss over the period that the expenses are recognized. Grants that compensate the group for the cost of an asset are recog- nized in profit or loss over the useful life of the asset. The group also applies for other government support schemes where the group is qualified. Such grants are recog- nized as other revenue in the period received. Finance income and finance costs Finance income comprises interest income on funds invested during the year. Finance costs comprise interest costs incurred during the year. Foreign currency gains and losses are reported on a net basis. Income tax and deferred tax Income tax expenses comprise current and deferred tax. Tax is recognized in profit or loss, except when it relates to items taken to other income and expenses or directly to equity or are linked to business combinations. If this is the case, the tax is also taken to other income and expenses or directly to equity. Tax payable for the period is calculated in accordance with tax laws and rules that have been enacted, or substantially enacted, by the tax authorities at the end of the reporting period. Taxable income is calculated on the basis of the legislation in the countries in which the group’s subsidiaries operate and generate taxable income. Using the liability method, deferred tax is calculated on all temporary dierences between the tax value and consoli- dated accounting value of assets and liabilities. The following temporary dierences are not taken into account: ▪ Goodwill that is not tax deductible ▪ Initial recognition of assets or liabilities that aects neither accounting nor taxable profit or loss ▪ Dierences relating to investments in subsidiaries that are not likely to reverse in the near future Deferred tax is calculated using tax rates and tax legislation that have been enacted, or substantially enacted, at the end of the reporting period. 5555 BEERENBERG AS GROUP GROUP ACCOUNTS 2021 Deferred tax assets are recognized to the extent that it is probable that future taxable income will be generated against which the deductible temporary dierences can be realised. Deferred tax assets and deferred tax liabilities are oset if there is a legally enforceable right to oset them. Statement of cash flows The group’s consolidated statement of cash flows shows the group’s total cash flows spread over operating, investing and financing activities. The statement shows the eect of each activity on the group’s liquid assets. The cash flow statement is prepared using the indirect method. Cash and cash equivalents include cash, bank deposits and other short-term highly liquid investments with insignificant risk convertible into known amounts of cash with maturities less than three months from acquisition date. Cash flows from operating activities is based on result before tax, and adjusted for change in working capital and deprecia- tion. Thus, interest paid are presented as part of the operat- ing cashflow. Earnings per share Basic earnings per share and diluted earnings per share are presented for ordinary shares. Basic earnings per share are calculated by dividing the profit or loss for the period attrib- utable to ordinary shareholders of the group by the weighted average number of ordinary shares outstanding during the period, adjusted for own shares held. Diluted earnings per share are determined by adjusting the profit or loss and the weighted average number of ordinary shares outstanding, adjusted for own shares held, for dilutive potential. Determination of fair values The group’s accounting principles and note information require the determination of fair value for both financial and non-financial assets and liabilities. Fair values are deter- mined for measurement and/or disclosure purposes based on the methods described below. If relevant, further informa- tion about the assumptions made is disclosed in the notes relating to the respective assets and liabilities. TANGIBLE NONCURRENT ASSETS The fair value of property, plant and equipment is recognized at fair value if part of a business combination. The fair value of plant, equipment, fixtures and fittings is based on the market approach and cost approaches using quoted market prices for similar items when available and replacement cost when appropriate. INTANGIBLE ASSETS The fair value of customer relationships acquired in a busi- ness combination is determined using the multi-period excess earnings method. The value is established residually by deducting a fair return on all other assets that together with customer relationships generate the cash flows used in the calculation. The fair value of other intangible assets is based on the discounted expected cash flows derived from the use and subsequent sale of the assets. INVENTORIES The fair value of inventories acquired in a business combina- tion is the estimated selling price in the ordinary course of business less the cost of completion and sale, to include a profit margin based on the eort required to complete and sell the inventories. TRADE RECEIVABLES AND OTHER RECEIVABLES The fair value of trade and other receivables is estimated as the present value of future cash flows, discounted at the market rate of interest at the end of the reporting period (the reporting date). ACCOUNTS PAYABLE AND OTHER LIABILITIES Trade payables are obligations to pay for goods and services from suppliers to the ordinary operations and are measured at fair value (historical cost) Loans are recognized initially at fair value when the loan is paid, net of transaction costs. In subsequent periods, loans are measured at amortized cost using eective interest rate. Other liabilities are measured at fair value. Estimates and judgements Preparing the financial accounts in accordance with IFRS requires the management to make assessments, estimates and assumptions that aect the application of the accounting principles. The carrying amounts of assets and liabilities, as well as revenues and costs, are aected by these assess- ments. Actual results may deviate from estimated amounts. Estimates and their associated assumptions are based on historical data and other factors that are deemed to be rel- evant and representative. These calculations form the basis for assessing the amounts recognized in respect of assets and liabilities that cannot be determined on the basis of other sources. Estimates and underlying assumptions are reviewed continu- ally. Changes to accounting estimates are recognized in the period in which they occur if they only apply to that period. Note 3 | Accounting principles 56 56 GROUP ACCOUNTS 2021 BEERENBERG AS GROUP If the changes also pertain to future periods, the eect is distributed over the current and future periods. Estimates and judgements are reviewed on an ongoing basis and are based on historical information and other factors, including assumptions and future events that are deemed likely under the current circumstances. ESTIMATESASSUMPTIONS The group produces estimates and makes judgements/ assumptions about the future. The resulting accounting estimates will rarely correspond fully to the final outcome. Estimates and assumptions that entail a risk of substantial changes in the carrying amounts of assets and liabilities during the next accounting year are: i) Revenue recognition – As described in the section revenue recognition, often a measurement of physical progress in the service delivery is applied, which in some cases lead to use of estimates. The most significant source of uncertainty in respect of revenues from contracts with customers relates to the estimation of supplementary work, additional requirements and bonus payments that are recog- nized as income to the extent that the group finds it highly probable that a significant reverse of revenue will not occur. For many projects, there may be sub- stantial changes to the agreed scope of work that may lead to a number of variations in contract work. It is normal for contracts to contain provisions for how such changes should be handled. At any given time there will be unapproved variations in contract work and requirements included in the contract revenues. Although the management has extensive experience in assessing the outcome of such negotiations, there will always be an element of uncertainty. The cost of completion depends on both productivity factors and salary levels. Factors that may substantially aect cost estimates, requirements and variations in contract work include weather conditions, access to work sites, the price of raw materials and other circum- stances that may have an eect on time use. Revenue recognition of contracts with mobilisation and demobilisation costs requires assumptions to be made about the duration of the contract, includ- ing potential extension options, in order to allocate expenses and revenues from the mobilisation/demo- bilisation period over the delivery period. Changes in the delivery period may result in adjustments being made to the accrued amount. ii) Goodwill – In accordance with the accounting prin- ciples, the group performs tests annually, or more fre- quently if necessary, to determine whether Goodwill recognized in the statement of financial position should be written down. The estimated recoverable amount is calculated on the basis of the present value of budgeted cash flows for the cash-generating unit. The calculations require the use of estimates and that they are consistent with the market valuation of the group. Specific information about Goodwill and the testing of carrying amounts is provided in Note 12 Intangible assets. New and amended standards adopted by the group The group has applied the following standards and amend- ments for the first time for the reporting period commencing 01.01.2021: ▪ Interest Rate Benchmark Reform phase 2 – amend- ments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 ▪ Covid-19-Related Rent Concessions – amendments to IFRS 16 The Covid-19-Related Rent concessions amendment has not had any impact on the amounts recognized in prior periods and is not expected to significantly aect the future periods. The Interest Rate Benchmark Reform phase 2 amendment address the issue that arise during the reform of an inter- est rate benchmark rate, including the replacement of one benchmark with an alternative one. The group have financial agreements linked to the NIBOR benchmark rate, most notably the Bond issue described in note 25, and the interest rate swap described in note 24. The NIBOR benchmark rate will be replaced by NOWA, however the implementation date is not set. It is expected that future financial agreements will be linked to NOWA instead of NIBOR, but the expectation is that the major current agree- ments will not be aected, as the maturity date of these is in 2023 when NIBOR is expected to be still available. The future change of benchmark rate in financial agreements relevant for the group is not expected to materially change the total interest rate level in such agreements. Thus the eect of the interest rate benchmark reform is expected to have limited eect for the group. 5757 BEERENBERG AS GROUP GROUP ACCOUNTS 2021 Note 4 Financial risk management As a global supplier of oil services, the group is exposed to market risks, exchange rate risk and interest rate risk, credit risk, inflation risk and liquidity risk. The group has established procedures and guidelines for setting appropriate risk levels for its main risks and for monitoring its risk exposure. The group’s objectives for capital management are to sustain the group’s position as a going concern in order to generate a return for shareholders, to be of benefit to other interested parties, and to maintain an optimal capital structure in order to reduce the cost of capital. Risk management for the group is undertaken centrally in accordance with guidelines approved by the board of direc- tors. The group identifies, measures, manages and reports financial risks in collaboration with the various operating units. Managing the capital structure involves actively monitoring and adjusting the composition in accordance with changes in financial and economic circumstances and in the risk linked to underlying assets. In order to maintain the desired capital structure, the group may refinance debts, buy or issue new shares or debt instruments, or it may sell assets. The group continuously monitors counterparties in order to reduce risk relating to financing, investing excess liquidity, bank balances from operations and derivatives. The group’s guidelines impose limitations on exposure to individual counterparties and contain procedures for identifying risk factors when they occur. The board produces principles for the risk management policy and issues guidelines for specific areas such as exchange rate risk, interest rate risk, credit risk, the use of financial derivatives and other financial instruments and for investing excess liquidity. Exchange rate risk The group predominantly operates in Norway, but some of its activities are international and thus exposed to exchange rate risks in several currencies. Exchange rate risks emerge from current and future assignments and from recognized assets. The group is exposed to exchange rate fluctuations because a limited portion of the group’s revenue and cost is in other currencies. According to group policy, customer- and supplier contracts with exchange rate risk exceeding defined limits shall be hedged. The parent company uses NOK as its functional currency. An assessment is made annually as to what is the actual func- tional currency of each entity in the group. The group has relatively insignificant investments in over- seas subsidiaries where net assets are exposed to exchange rate risks upon translation. Sensitivity analyzes related to exchange rate fluctuations is described in note 13. Normally these sensitivities are calculated at +/− 10% change, but due to increased volatility in exchange rates, the eects have now been calculated at +/− 30%. Market risk The Beerenberg group operates in the oil and gas market, which due to price fluctuations can be volatile. Beerenberg is aected by the oil companies’ actions and the prevailing oil and gas prices. To mitigate this, Beerenberg has diversi- fied into various segments of the market, e.g. new-build and maintenance and modification projects. Beerenberg is also expanding internationally, with the proprietary Benarx® product range and it is looking into related market segments, such as infrastructure for both products and services. There is reason to believe that investment growth on the Norwegian Continental Shelf will abate in the long term. In order to expand its operations and customer base, the group has therefore been working to grow its international presence. Cash flows and fair value interest rate risk Variable rate loans pose an interest rate risk to the group’s cash flows. The group is exposed to interest rate risks relating to debts, including financial leasing. Interest bearing debt as at 31.12.21 is a Bond issue and financial leasing, refer to note 25. The weighted average eective rate of interest in relation to debt, was 9.9% in 2021 (2020: 8.9%). Interest rate risks are continually reviewed by looking at potential refinancing, renewal of existing contracts, alterna- tive financing and hedging. The groups calculation of interest on contracts is entirely linked to liabilities. If eective interest rates had been 1% (percentage point) higher/lower on loans in NOK in 2021 and all other vari- ables were constant, this would have resulted in a reduction/ 5858 GROUP ACCOUNTS 2021 BEERENBERG AS GROUP increase in profit/loss after tax of NOK 5.5 million in 2021 (2020: 6.6 million) Equity would have been similarly aected. This is due to higher/lower interest costs on variable rate loans. The group’s interest-bearing assets comprise as of 31.12 of bank deposits of NOK 193.3 million. Changes in market inter- est rates would aect operating cash flows related to these interest-bearing assets, but to a relatively modest degree. FINANCIAL DERIVATIVE INSTRUMENTS The group holds a limited number of financial derivative instruments to hedge its foreign currency and interest rate risk exposures. The management strategy is, at present, to use hedging instruments in order to mitigate the eect of changes in variable interest rates. The long-term financing of the group is based on variable interest rates (3 mnth Nibor) which is subject to fluctuations. The strategy is to minimize this risk by entering into interest swaps agreements to swap variable interest rates to fixed rates at a proportion of around 70% of total outstanding loans. Derivatives are recognized initially at fair value. Changes in fair value are recognized in profit or loss, except for hedging instruments that meet the criteria for hedge accounting. The group follows IFRS 9 criteria’s for classifying a derivative instrument as a hedging instrument. These are as follows: a. the hedging relationship consists only of eligible hedg- ing instruments and eligible hedged items. b. at the inception of the hedging relationship there is formal designation and documentation of the hedging relationship and the entity’s risk management objec- tive and strategy for undertaking the hedge. c. the hedging relationship meets all of the following hedge eectiveness requirements: i. there is an economic relationship between the hedged item and the hedging instrument ii. the eect of credit risk does not dominate the value changes that result from that economic relationship and iii. the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the entity actually hedges and the quantity of the hedging instrument that the entity actually uses to hedge that quantity of hedged item. Hedging instruments classed as cash flow hedges oset variations in cash flows caused by changes in exchange rates, interest rates and market values. For cash flow hedges that meet the criteria for hedge accounting, all gains and losses on the eective part of the contract are recognized in compre- hensive income and as hedging reserve in the statement of equity, while those on the ineective part are recognized in the income statement under finance. Derivative financial instruments with positive fair value are classified as current assets if the remaining maturity of the hedged item is less than a year into the future, and as fixed assets when the remaining maturity of the hedged item is more than a year ahead. Financial derivatives with negative fair value are classified as a current liability if the remaining maturity of the hedged item is less than a year into the future, and as a long-term liability when the remaining maturity is more than a year ahead. Refer to note 24 for a specification of the group’s current derivative instruments. Credit risk Credit risks are assessed at group level. The group’s financial assets that are exposed to credit risks are predominantly trade receivables. These receivables mostly concern multi- national oil companies and independent oil and gas compa- nies, including companies that are wholly or partially owned by foreign governments. The group handles its exposure to credit risk by carrying out continual credit checks of custom- ers and make provisions for losses on doubtful accounts. Routines are incorporated to ensure that sales are only made to customers with satisfactory credit worthiness. If an independent credit rating of a customer is available, it will be used when determining a credit limit. If no independent assessment of the customer’s credit worthiness is available, an assessment is carried out on the basis of the customer’s financial position, history and other factors as appropriate. Individual limits for risk exposure are set on the basis of internal and external assessments of credit worthiness and of guidelines provided by the board of directors. The major customers are predominantly large international oil compa- nies or government-owned oil companies. Such companies generally have very good credit ratings. The group have not provided any warranties that pose a significant risk. 5959 BEERENBERG AS GROUP GROUP ACCOUNTS 2021 Note 4 | Financial risk management The group continuously seeks new opportunities for example in new build projects and increased presence in projects abroad. To enter new market segments, could imply changes to credit risk. This is a factor that the group has high focus on evaluating when considering such opportunities. Liquidity risk The group is exposed to liquidity risks relating to the repay- ment of debts and payments to suppliers. Cash flow forecasts are created for each operating unit within the group and aggregated at group level. Rolling forecasts for the group’s liquidity requirements are monitored centrally to ensure that the group has sucient cash equivalents to meet operating-related liabilities at all times. Such forecasts take into account the group’s planned loans, compliance with borrowing terms and compliance with internal targets for reporting figures. On the reporting date, the group had bank deposits of NOK 193.3 million plus an unused overdraft of NOK 71 million, designed to meet the liquidity risk. Note 13 shows the group’s interest-bearing financial liabili- ties classed according to maturity structure. Classification is carried out according to the due date stated in the contract. The amounts in the table are undiscounted contractual cash flows. Interest-bearing long-term debt consists of a Bond with the principal amount of NOK 700 million. This Bond matures in November 2023. Risk relating to capital management The group’s objectives for capital management are to sustain the group’s position as a going concern in order to generate a return for its owners and to maintain an optimal capital structure in order to reduce the cost of capital. In order to improve its capital structure, the group can adjust the level of dividends paid to shareholders, issue new shares, or sell assets to repay loans. The gearing in the group for 31.12.21 and for 31.12.20 is shown in table below. 2021 2020 Total interest bearing debt 744034 740262 Less cash and cash equivalents -193345 -139733 Net interest bearing debt 550689 600529 Total Equity 546428 486871 Total Capital (adjusted) 1097117 1087400 Debt Ratio 50% 55% Gearing 10 12 6060 GROUP ACCOUNTS 2021 BEERENBERG AS GROUP Note 5 Segment Operating segments are reported consistent with internal reporting provided to Chief Operating decision maker. Chief Operating decision maker, who is responsible for allocat- ing resources and assessing performance of the operating segments, is defined as the Board of Directors. As at 31.12 there are two reporting segments in the group, “Services” and “Benarx”. Services includes business related to the traditional ISS activity of the company which is mainly related to major framework contracts. Benarx includes business involving production of insulation materials and related subsea insulation business. Services Benarx Eliminations Consolidated 2021 2020 2021 2020 2021 2020 2021 2020 Operating revenue external 1 898 140 1 426 221 237 879 296 506 2 136 019 1 722 727 Operating revenue internal 4 822 4 841 70 328 45 442 -75 151 -50 284 0 0 Total Operating revenue 1 902 962 1 431 063 308 208 341 948 -75 151 -50 284 2 136 019 1 722 727 Direct cost 1 591 004 1 170 746 234 340 255 748 -70 328 -45 442 1 755 016 1 381 053 Gross profit 311 958 260 316 73 868 86 200 -4 822 -4 841 381 003 341 674 Admin & overhead 136 422 93 651 32 953 36 160 -4 822 -4 841 164 552 124 969 EBITDA * 175 537 166 666 40 915 50 040 0 0 216 451 216 706 Depreciation, and impairment losses of tangible assets 39 858 39 169 9 221 15 263 49 079 54 432 EBITA ** 135 679 127 497 31 694 34 777 0 0 167 372 162 274 Amortisation and impairment losses of intangible assets 14 155 16 351 149 149 14 303 16 500 EBIT *** 121 524 111 146 31 545 34 628 0 0 153 069 145 774 ) Operating result before depreciation, amortisation and impairment losses **) Operating result before amortisation and impairment losses of intangible assets ) Operating result (Amounts in NOK 1,000) 6161 BEERENBERG AS GROUP GROUP ACCOUNTS 2021 NCS ICS Consolidated 2021 2020 2021 2020 2021 2020 Total Operating revenue 1 984 157 1 560 641 151 862 162 086 2 136 019 1 722 727 Reconciliation of EBITDA to profit/loss before tax: 2021 2020 EBITDA 216 451 216 706 Depreciation, amortisation and impairment losses 63 382 70 931 Net finance costs 82 215 90 817 Result before tax 70 854 54 958 Revenue from customers who make up more than 10% of total revenue Revenue from 2 customers make up more than 10% of total revenue in 2021 or 2020. Revenues from customer 1 amounted to 1 089 615 which was 51% of total revenue (2020: 971 777, 56% of total revenue). Revenues from customer 2 amounted to 313 468 which was 15% of total revenue (2020: 140 662 8% of total revenue). ASSETS Services Benarx Not Allocated Eliminations Consolidated 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 Intangible assets 15 452 27 070 3 793 3 988 19 246 31 057 Goodwill 582 762 582 762 200 000 200 000 782 762 782 762 Property, plants and equipment 177 887 175 686 30 453 37 877 208 340 213 563 Financial fixed assets 20 221 9 874 20 221 9 874 Deferred tax assets 3010 3 010 Total noncurrent assets 796 322 795 391 234 247 241 865 3010 1 033 579 1 037 256 Inventory 45 067 33 150 32 723 33 099 77 790 66 250 Accounts receivable from customers 284 949 202 584 61 039 58 052 -39 600 -11 026 306 387 249 611 Other receivables 21 061 23 159 2 639 16 037 23 701 39 196 Earned, not invoiced contract revenues 184 271 127 207 10 950 16 791 195 220 143 998 Cash at bank, cash in hand and similar 193 345 139 733 193 345 139 733 Total current assets 535 348 386 100 107 351 123 980 193 345 139 733 -39 600 -11 026 796 443 638 787 Total Assets 1 334 680 1 181 491 341 597 365 845 193 345 139 733 -39 600 -11 026 1 830 022 1 676 043 Note 5 | Segment GEOGRAPHIC Revenue is also measured according to whether it is earned in Norway/on the Norwegian Continental Shelf (NCS) or internationally (ICS) 6262 GROUP ACCOUNTS 2021 BEERENBERG AS GROUP Note 6 Revenues Beerenberg’s main contracts with customers are servicing and maintenance contracts. Main deliveries in these con- tracts involves enhancing assets that the customer controls while the asset is enhanced. This means that Beerenberg’s customer contracts involving sales of services are recog- nized over time when services are delivered. Revenue from Beerenberg’s contracts with customers involving sale of goods are recognized at a point in time which the company transfers control of the goods to the customer. The company’s revenue also arises from hiring out dierent types of equipment, mainly scaolding. Contracts involving letting of equipment are normally integrated in contracts for perforing services. Revenues from letting of equipment are recognized over time as the customer has control of the equipment which is hired. Other revenue in 2020 and 2021 is mainly related to government business compensation scheme related to Covid-19 in Poland and in Norway. 2021 2020 Revenues from contracts with customers Revenues from sale of services 1 733 713 1 271 747 Revenues from sale of goods 242 022 284 919 Revenues from hiring of equipment 152 566 138 658 Total revenue from contracts with customers 2 128 301 1 695 323 2021 2020 Other revenue Gains from sale of assets 2 935 60 Government business compensation scheme 4 783 25 698 Other revenue 0 1 646 Total other revenue 7 718 27 404 Total revenue 2 136 019 1 722 727 2021 2020 Accounts receivables Trade receivables at face value 309 840 254 121 Provision for losses on claims (3 452) (4 510) Total trade receivables 306 388 249 611 2021 2020 Total accounts receivables Accounts receivables from customers 309 840 254 121 Earned, not invoiced accounts receivables 195 220 143 998 Total accounts receivables 505 060 398 119 Earned, not invoiced accounts receivables relates to consideration for work performed, but not yet invoiced at the reporting date. This mainly pertains to work performed in December 2021, invoiced in January 2022. Earned, not invoiced accounts receivables is transferred to accounts receivables when the company has issued invoice to the customer. (Amounts in NOK 1,000) 6363 BEERENBERG AS GROUP GROUP ACCOUNTS 2021 Note 7 Other operating costs Beerenberg’s other operating costs totals 322 904. (276 446 for 2020) 70–80% of these costs are project costs. Other costs are costs relating to consulancy fees, premises and associated costs, IT, insurance premiums, contingents, marketing and patent costs. 2021 2020 Travel expenses 114 025 98 040 Rental of equipment 40 668 27 679 Other project costs 96 105 88 756 Consultancy fees 20 283 21 878 Facilities 19 990 14 664 IT 21 050 17 736 Other 10 783 7 693 Total other operating costs 322 904 276 446 Auditor’s fee 2021 2020 Statutory audit 1 365 1 301 Other assurance services 52 210 Tax advisory fee (incl. technical assistance with tax return) 226 153 Other assistance 34 127 Total 1 678 1 791 The sums stated are exclusive of VAT. Note 8 Personnel costs Personnel costs 2021 2020 Salaries incl. holiday pay 753 676 634 357 National Insurance contributions 112 556 90 997 Pensions 27 280 27 415 Contract personnel 518 866 263 908 Other employee benefits 18 427 16 730 Total Personnel costs 1 430 805 1 033 406 Number of Full-time equivalent (FTE) 2 221 1 716 * Both salaries and FTEs includes hired in personnel. (Amounts in NOK 1,000) (Amounts in NOK 1,000) 6464 GROUP ACCOUNTS 2021 BEERENBERG AS GROUP Note 9 Finance income and finance costs Finance income and finance costs 2021 2020 Gains from purchase and sales of own bonds 1 571 1 000 Interest income from bank and other sources 582 1 575 Finance income 2 153 2 575 Interest cost bank 837 3 827 Interest cost bond 68 020 69 122 Interest cost interest swap 1 422 7 470 Amortization of refinancing fee 9 113 5 819 Interest cost leasing 2 857 3 124 Interests from vendors and other interest costs 1 492 3 318 Net foreign exchange losses, realised 1 130 -1 269 Net foreign exchange losses, unrealised -503 1 982 Finance costs 84 368 93 392 Net finance costs recognised in income statement -82 215 -90 817 Note 10 Tax 2021 2020 Tax payable has been calculated as follows Ordinary result before tax 70 854 54 958 Profit/loss in foreign subsidiaries, not included in basis for tax payable -9 802 -7 659 Permanent differences -225 -2 132 Change in differences included in the basis for deferred tax assets/liabilitites 23 354 9 905 Reversed taxable profit from previous years 0 -300 Basis for tax payable 84 181 54 771 Tax payable on the result for the year 18 520 12 050 0101–3112 2021 2020 Tax cost is calculated as follows: Tax payable on the result of the year 18 520 12 050 Corrections to previous years 970 201 Gross changes deferred tax -5 069 -3 772 Total tax cost for the year 14 421 8 478 (Amounts in NOK 1,000) (Amounts in NOK 1,000) 6565 BEERENBERG AS GROUP GROUP ACCOUNTS 2021 Note 10 | Tax 31122021 31122020 Tax payable on the balance sheet has been calculated as follows: Tax payable on the result of the year 18 520 12 050 Total tax payable 18 520 12 050 31122021 31122020 Specification of deferred tax/deferred tax concessions changes over profit and loss Additions through business combinations 2 676 5 096 Fixed assets 7 566 6 944 Current assets 2 837 4 704 Liabilities -11 179 -9 705 Precluded interest deduction to be carried forward -4 860 -4 860 Other deferred tax -1 524 -1 593 Net temporary differences -4 484 586 Tax losses carried forward 0 0 Deferred tax before OCI -4 484 586 Specification of deferred tax/deferred tax over OCI 2021 2020 Derivatives 1 473 -247 Deferred tax OCI 1 473 -247 Deferred tax assets (-) obligations (+) -3 010 339 31122021 31122020 Explanation as to why the tax for the year does not amount to 22% of the result before tax 22% of the result before tax 15 588 12 091 Permanent differences (22%) -50 -469 Corrections to previous years 970 201 Profit/loss in foreign subsidiaries, not included in basis for tax payable -2 088 -3 278 Reversed taxable profit from previous years 0 -66 Calculated tax 14 421 8 478 6666 GROUP ACCOUNTS 2021 BEERENBERG AS GROUP Note 11 Property, plant and equipment 31122021 Vehicles Production equipment Telecoms& IT Buildings, barracksand halls Right of use assets Total 31122021 Acquisition cost 01.01 33 253 489 744 16 476 57 916 82 338 679 728 Acquisitions of non-current assets 4 033 35 497 2 743 347 2 056 44 677 Disposals 0 -251 0 -251 Exchange rate effects -380 -12 -47 -132 -571 Acquisition cost 31.12 37 286 524 610 19 207 58 217 84 262 723 583 Accumulated depreciation 01.01 26 116 339 920 16 140 48 999 34 989 466 164 Depreciation for the year 3 617 27 639 265 3 655 12 955 48 132 Write-downs for the year 5 941 947 Disposals – accumulated depreciation - Accumulated depreciation 31.12 29 738 368 501 16 406 52 654 47 944 515 243 Capitalized value 31.12 7 548 156 110 2 802 5 563 36 318 208 340 Economic useful life 5–7 years 5–10–15 years 3 years 10 years 2–10 years Depreciation schedule Straight-line Straight-line Straight-line Straight-line Straight-line The category Production equipment contains some assets that are leased. The book value of leased material as of 31.12.2021 is 10785 and relates mainly to scaolding in the subsidiary Beerenberg Industri AS. For reference the book value of leased material as of 31.12.20 was 11989. Following implementation of IFRS 16 from January 1st 2019 long term rental agreements of property is booked as Right of use assets. The book value of such right of use assets is as of 31.12.21 36 318 (2020: 47 349) and represents the value of rental agreements for oce buildings, factories or similar premises. The value of right of use is calculated by the sum o all future rent obligations discounted to the implementa- tion date by applying a discount rate of 5%. The right of use assets are depreciated by straight line over the period for the rent. Refer to note 9 for interest cost of leasing, and note 13 for maturity overview of leasing. In addition to leasing agreements that are booked as right of use asset, the group also rents equipment, and some times also premises, on short term contracts or of low value. Cost related to such rental agreements are booked as other operating costs, refer to note7. 31122020 Vehicles Production equipment Telecoms& IT Buildings, barracksand halls Right of use assets Total 31122020 Acquisition cost 01.01 30 734 477 352 16 272 55 876 77 703 657 937 Acquisitions of non-current assets 2 519 12 329 204 2 041 4 651 21 744 Disposals -31 0 -31 Exchange rate effects 94 0 -16 78 Acquisition cost 31.12 33 253 489 744 16 476 57 916 82 338 679 728 Accumulated depreciation 01.01 22 879 311 968 15 941 44 514 16 464 411 767 Depreciation for the year 3 236 27 338 199 4 485 18 525 53 784 Write-downs for the year 613 613 Disposals – accumulated depreciation Accumulated depreciation 31.12 26 116 339 920 16 140 48 999 34 989 466 164 Capitalized value 31.12 7 137 149 824 336 8 918 47 349 213 563 Economic useful life 5–7 years 5–10-15 years 3 years 10 years 2–10 years Depreciation schedule Straight-line Straight-line Straight-line Straight-line Straight-line (Amounts in NOK 1,000) 6767 BEERENBERG AS GROUP GROUP ACCOUNTS 2021 Note 12 Intangible assets and Goodwill 31122021 Patents and development projects Software Customer relationships Goodwill Total 31122021 Acquisition cost 01.01 91 967 30 337 267 324 887 872 1 277 499 Acquisitions in-house R&D 2 049 449 2 497 Acquisitions of non-current assets Exchange rate effects -5 -5 Acquisition cost 31.12 94 016 30 780 267 324 887 872 1 279 991 Accumulated amortisation 01.01 80 972 29 916 198 975 309 863 Accumulated write-downs 01.01 3 520 45 187 105 110 153 817 Amortisation for the year 2 971 333 11 000 14 303 Accumulated amortisation 31.12 83 943 30 249 209 975 324 167 Accumulated write-downs 31.12 3 520 45 187 105 110 153 817 Capitalized value 31.12 6 553 531 12 162 782 762 802 008 Economic useful life 5 years 5 years 10 years Depreciation schedule Straight-line Straight-line Straight-line At the start of 2021 the Beerenberg AS Group had recorded Goodwill to the amount of 782762. This goodwill is primarily allocated to the employees, corporate culture, know-how and synergies that can be realised in connection with the acquisi- tion of subsidiaries. Stable operative management is achieved through the active ownership of key personnel in acquired companies. In 2013 Beerenberg Holding AS was aquired by Beerenberg AS, generating a Goodwill of 883860. Following a non renewal of a large contract and subsequent impairment testing, this Goodwill was written down by the amount of 105110 in 2016. In 2017 Beerenberg Industri AS was acquired by Beerenberg Services AS generating a Goodwill of 7489. The Goodwill generated from the purchase of Beerenberg Industri was in 2018 adjusted downwards by the amount of 3477 following an update of the Purchase Price Allocation analyzis. There were no changes to Goodwill in 2021, leaving the Goodwill as at 31.12.2021 to 782 762. Intangible assets are measured on the basis that the asset will give future economic benefits, that the acquisition cost is iden - tifiable, and that it has a lasting useful life. A test for impair- ment has been performed in accordance with IAS 36. According to IAS 36 the company shall estimate recoverable amount, and compare this to book values including Goodwill. The group reports two operating segments which operates as separate cashgenerating units, the “Benarx” segment and the “Services” segment. The “Benarx” segment consists of business related to the production of insulation materials and subsea related insulation business, and the “Services” segment consists of the traditional ISS activity of the company mainly related to larger framework contracts. Goodwill is allocated with 200 000 to the Benarx segment, and 582 762 to the Services segment. Goodwill was therefore tested for impairment by comparing capital employed in the two segments against the present value of expected cash flows of the segments. Budget and forecasts approved by the Board of Directors for the next 3 years was the basis for the test of impairment. During this period, the EBIT margin is estimated to 7–10%. Key assumptions for estimated future cash flows are: ▪ Oil-price levels around average for the last two to three years, with a corresponding activity level on the Norwegian Continental Shelf. Especially, this is important related to maintenance and modification in the Services segment. ▪ The group maintaining a reasonable market share in the insulation material business, through amongst other deliveries to new build projects, initiated on Norwegian Continental Shelf. Furthermore, a required rate of return is of 9.4% is applied. The required rate of return is built up using the WACC method (weighted average cost of capital). The result of the impairmenttest was higher value of present value of expected cash flows than net capital employed in both segments. (Amounts in NOK 1,000) 6868 GROUP ACCOUNTS 2021 BEERENBERG AS GROUP Sensitivity analyses have been performed, and the table below set out changes in assumptions that results in an impairment situation: Change in assumption Segment BENARX SERVICES Required rate of return +8% +47% Revenue ** -34% -33% Operating Result -43% -41% * The group has applied a nominal WACC after tax of 9.4%. The figure shows that if WACC was set to 17.4% for Benarx and 14.1% for Services it will result in an impairment situation. ** Margins as before change of assumption. The group believes that no reasonable changes in the assumptions that have been used for testing impairment, could result in a lower value of future cash flows than the net capital employed. Furthermore, the group has a good order portfolio that will help the group develop vertically and horizontally throughout the value chain. By exploiting existing synergies, the group will be able to make use of the market opportunities they oer through improved access to expert personnel. On that basis, and on the basis of estimated future revenues and described sensitivities, the group can justify that Goodwill will have a value in excess of the book value in both segments. 31122020 Patents and development projects Software Customer relationships Goodwill Total 31122020 Acquisition cost 01.01 91 967 30 304 267 324 887 872 1 277 467 Acquisitions in-house R&D Acquisitions of non-current assets 32 32 Exchange rate effects Acquisition cost 31.12 91 967 30 337 267 324 887 872 1 277 499 Accumulated amortisation 01.01 77 581 29 728 186 054 293 364 Accumulated write-downs 01.01 3 520 45 187 105 110 153 817 Amortisation for the year 3 391 187 12 921 16 499 Accumulated amortisation 31.12 80 972 29 916 198 975 309 863 Accumulated write-downs 31.12 3 520 45 187 105 110 153 817 Capitalized value 31.12 7 475 421 23 162 782 762 813 819 Economic useful life 5 years 5 years 10 years 10 years Depreciation schedule Straight-line Straight-line Straight-line Straight-line 6969 BEERENBERG AS GROUP GROUP ACCOUNTS 2021 Note 13 Financial instruments Exposure to credit risk Maximum exposure to credit risks on the reporting date was: Capitalized value 2021 2020 Trade receivables 306 387 249 611 Other receivables 23 701 39 196 Earned, not invoiced 195 220 143 998 Cash and cash equivalents 193 345 139 733 Total 718 653 572 537 Impairment losses The age distribution of trade receivables as at 31.12 was as follows: 2021 2020 Gross Trade receivables Allowance for bad debt Gross Trade receivables Allowance for bad debt Not overdue 278 236 2 366 207 973 1 878 0–30 days overdue 22 978 449 21 170 1 059 31–90 days overdue 4 058 203 18 516 925 More than 90 days overdue 4 567 434 6 461 648 Total 309 840 3 452 254 120 4 510 Change in provision account for impairment of trade receivables: 2021 2020 Opening balance 4 510 5 669 Loss on trade receivables -185 -43 Change in provision for bad debt -873 -1 115 Closing balance 3 452 4 510 The group utilizes a model for considering potential loss of accounts receivables where a proportion of total outstanding amounts is treated as uncertain even if no objective evidence of uncertainty exists. This proportion increases with days the receivables are overdue. On top of the mathematical approach for considering provision for potential loss, items in the accounts receivables where objective evidence of increased risk of potential loss exists is also considered when setting the total provision for bad debt. (Amounts in NOK 1,000) 7070 GROUP ACCOUNTS 2021 BEERENBERG AS GROUP Liquidity risk Contractual payments due in relation to financial commitments, including rent payments, are: As at 311221 Capital- ized value Contractual cash flows 6 months or earlier 6–12 months 1–2 years 2–5 years More than 5 years Interest bearing long term lease liabilities 29 586 29 586 0 0 13 624 13 793 2 168 Interest-bearing long-term liabilities ** 635 586 789 675 30 766 28 689 53 658 676 563 Interest bearing short-term liabilities ** 78 861 78 861 47 163 31 699 Trade payables 188 014 188 014 188 014 Other current liabilities 203 210 203 210 203 210 Total 1 135 257 1 289 346 469 153 60 387 67 282 690 356 2 168 Lease liabilities includes rental of premises of 40503 according to IFRS16. These liabilities are discounted by applying a rate of 5%. Lease liabilities that matures next year are classified as short-term liabilities. ** Interest-bearing debt consists of a bond with the principal amount 700000. Capitalized value includes deduction for transaction costs that are expensed as interest during the course of the loan (17513). Interest rate on the loan is 3 month NIBOR plus margin of 8.0%. The bond has every 6-month amortization of 25000 until maturity, in total 125000. The loan matures 13.November 2023. It is not expected that the cash flows in the maturity analysis will occur at earlier dates, or with substantially different amounts. Next year installments of 50000 are classified as interest bearing short-term liabilities. As at 311220 Capital- ized value Contractual cash flows 6 months or earlier 6–12 months 1–2 years 2–5 years More than 5 years Interest bearing long term lease liabilities * 37 553 43 192 0 0 15 081 25 330 2 781 Interest-bearing long-term liabilities ** 630 831 812 570 29 757 28 688 104 188 649 938 Interest bearing short-term liabilities ** 70 757 70 757 37 730 33 027 Trade payables 135 285 135 285 135 285 Other current liabilities 196 943 196 943 196 943 Total 1 071 369 1 258 747 399 716 61 715 119 269 675 267 2 781 Lease liabilities includes rental of premises of 52453 according to IFRS16. These liabilities are discounted by applying a rate of 5%. Lease liabilities that matures next year are classified as short-term liabilities. ** Interest-bearing debt consists of a bond with the principal amount 750000. Capitalized value includes deduction for transaction costs that are expensed as interest during the course of the loan (26401) as well as principal amount of own bonds (50 000) Interest rate on the loan is 3month NIBOR plus margin of 8.0%. The bond has every 6-month amortization of 25000 until maturity, in total 125000. The loan matures 13.November 2023. It is not expected that the cash flows in the maturity analysis will occur at earlier dates, or with substantially different amounts. Next year installments of 50000 are classified as interest bearing short-term liabilities. 7171 BEERENBERG AS GROUP GROUP ACCOUNTS 2021 Note 13 | Financial instruments Currency Change Effect for 2021 Effect for 2020 Profit/loss Profit/loss THB 30% 1 463 4 087 EURO 30% 824 389 USD 30% 6 062 8 281 PLN 30% 284 210 SGD 30% 1 398 2 804 KRW 30% 6 274 2 883 GBP 30% 2 055 1 508 18 359 20 162 An increase in NOK against the above-mentioned currencies as at 31 December would have given the same figures, but with the opposite eect, once again assuming that other variables remain constant. Of the cash in foreign currency the majority of USD is placed in KEB Hana Bank in Korea and OCBC bank in Singapore, PLN is placed in Danske Bank in Poland, GBP is placed in Danske Bank in UK, SGD is placed in OCBC bank in Singapore and THB is placed in Kasikorn bank in Thailand. Exchange rate risk All amounts are in the currency stated in table 31122021 31122020 THB EUR USD PLN SGD KRW GBP THB EUR USD PLN SGD KRW GBP Cash and cash equivalents 21 693 367 1 656 1 658 113 2 723 250 448 59 698 236 1 620 1 160 1 694 1 572 372 463 Trade receivables 4 546 173 1 438 576 770 856 762 293 53 150 101 2 487 124 81 474 548 94 Trade payables -2 973 -194 -81 -1 688 52 -8 526 1 -54 755 -182 -348 -913 -18 -486 075 -22 Net exposure 23 266 346 3 013 545 934 3 571 486 743 58 092 155 3 759 372 1 758 1 560 844 535 Significant exchange rates during the year: Average exchange rate Spot exchange rate 2021 2020 31122021 31122020 THB 0269 0301 0264 0285 EUR 10163 10726 9981 10488 USD 8598 9415 8811 8542 PLN 2226 2413 2170 2273 SGD 6396 6819 6512 6459 KRW 0008 0008 0007 0008 GBP 11825 12052 11866 11665 A decrease in NOK against the following currencies at the end of the year would have increased/(reduced) equity and profitby the amounts given below. The analysis is based on changes in the exchange rate within a reasonably possible range.Thepossible range is defined by the management at the end of the accounting year. The analysis assumes that othervariables, particularly interest rates, remain constant. The analysis was carried out on the same basis as in 2020. (Amounts in NOK 1,000) 7272 GROUP ACCOUNTS 2021 BEERENBERG AS GROUP FAIR VALUE AND CAPITALIZED VALUE The fair value and capitalized value of financial assets and liabilities: 31122021 31122020 Capitalized value Fair value Capitalized value Fair value Assets carried at amortised cost Trade receivables 306 387 306 387 249 611 249 611 Cash and cash equivalents 193 345 193 345 139 733 139 733 Total 499 732 499 732 389 344 389 344 31122021 31122020 Capitalized value Fair value Capitalized value Fair value Liabilities carried at amortised cost Loan 685 586 725 849 680 831 729 982 Leasing and accrued interests 58 448 58 448 54 576 54 576 Trade payables 188 014 188 014 135 285 135 285 Total 932 048 972 311 870 692 919 843 The methods used to measure the fair value of financial instruments are described in the note on the group’s accounting principles. Net debt reconciliation This section sets out an analysis of net debt and the movements in net debt for each of the periods presented. Liabilities from financing activities Amounts in NOK thousands Borrowings Leases Total Net debt as at 31 December 2019 852 195 69 010 921 205 Liabilities from financing activities Amounts in NOK thousands Borrowings Leases Total Cash flow changes Proceeds from borrowings 680 076 0 680 076 Repayment of borrowings -850 000 0 -850 000 Payment of lease obligation 0 -19 085 -19 085 Non cash changes 2 293 0 2 293 Leasing related adjustments 0 4 651 4 651 Net debt as at 31 December 2020 684 565 54 576 739 140 Liabilities from financing activities Amounts in NOK thousands Borrowings Leases Total Cash flow changes Proceeds from borrowings 50 000 0 50 000 Repayment of borrowings -50 822 0 -50 822 Payment of lease obligation 0 -15 866 -15 866 Non cash changes 17 070 0 17 070 Leasing related adjustments 0 4 511 4 511 Net debt as at 31 December 2021 700 813 43 221 744 034 7373 BEERENBERG AS GROUP GROUP ACCOUNTS 2021 Note 14 Inventory 2021 2020 Raw materials 49 266 50 976 Work in progress 1 150 1 698 Finished goods 29 590 15 581 Provision for obselete inventory (2 216) (2 006) Total Goods 77 790 66 250 Note 15 Bank deposits and cash equivalents Bank deposits and cash equivalents 2021 2020 Bank deposits 193 345 139 733 Total deposits 193 345 139 733 OVERDRAFT LIMIT The group has a combined overdraft and guarantee limit of 150000. Deductions on overdraft as at 31.12.2021 amounted to 0 for the group as a total. Utilization of the guarantee limit amounted to 78689, refer to note 19 for details of guarantees. Note 16 Share capital and shareholder information SHARE CAPITAL AND SHAREHOLDER INFORMATION: The Company’s share capital is 26 700 distributed on 267000000 shares, whereof 1000000 A-shares, and 266000000 B-shares. Nominal value per share is 0.0001. TheA-shares have all rights. The B-shares have voting rightsby 1 vote per 10 share and no rights to dividends. Inthe event of a liquidation of the company, the owner of B share shall be entitled to repayment of paid-in capital at the time when the share was subscribed (nominal and any share premium), but no excess amount. The B shareholders right at this point has a preferential right over the A shareholders right to liquidation dividends. Otherwise, the share classes are equal. List of the major shareholders at 31.12.21: Shareholder A-Shares % B-Shares % Total Shares % Controlled by Segulah IV L.P. 820 875 821% 223 247 653 839% 224 081 385 839% AlpInvest Partners 2012 I B.V. 92 121 92% 24 931 110 94% 25 023 231 94% AlpInvest Partners 2012 II B.V. 23 319 23% 6 310 883 24% 6 334 202 24% GRAA AS 11 792 12% 3 379 600 13% 3 393 800 13% Chairman of the board Svein Eggen Holding AS 5 325 05% 1 267 350 05% 1 272 675 05% Board member Mowin AS 5 325 05% 1 267 350 05% 1 272 675 05% Board member Other 41 243 41% 5 596 054 21% 5 622 032 21% Total 1 000 000 100.0% 266 000 000 100.0% 267 000 000 100.0% Basic earnings per A-share is 0.056 for 2021 compared to 0.046 for 2020. Basic earnings per share are based on the profit/loss attributable to A-shares and on the weighted average number of ordinary shares outstanding. Diluted earnings per share are identical as there is no dilutive eect. (Amounts in NOK 1,000) (Amounts in NOK 1,000) (Amounts in NOK 1,000) 7474 GROUP ACCOUNTS 2021 BEERENBERG AS GROUP Note 17 Employee benefits – pensions MANDATORY OCCUPATIONAL PENSION The company is obliged to operate an occupational pension scheme in accordance with the Norwegian act on mandatory occupational pensions. The company’s pension schemes satisfy the provisions of this act. EXTENDED PENSION SCHEME CEO and other defined other key personell have an additional pension scheme agreement which amounts to 10% of salary for CEO, 6% of salary for group executive management, and 3% for other members of this pension scheme. Pension assets has the following composition 2021 2020 Assets related to extented pension scheme 13 524 9 874 Total pension assets 13 524 9 874 Pension obligations has the following composition 2021 2020 Liabilities related to extended pension scheme 15 375 11 266 Mandatory occupational pension liabilities 1 947 909 Total pension obligations 17 322 12 175 Pension cost in consolidated income statement has the following composition 2021 2020 Pension cost extended pension scheme 1 969 2 700 Pension cost mandatory occupational pension 12 364 12 879 Pension cost AFP scheme 12 947 11 836 Total pension cost in consolidated pension cost 27 280 27 415 Note 18 Remuneration of key employees Directors’ fees 2021 Chairman Geir Aarstad * 200 Ingelise Arntsen 215 Hilde Drønen 195 Morten Walde 195 Sebastian Ehrnrooth 175 Total for board members elected by shareholders 980 Finn Kydland 60 Andre Simonsen 60 Tore Kjell Jørgensen (deputy member) 2 Christian Jørgensen (deputy member) 3 Ann Kristin Midttun (deputy member) 2 Rune Kårbø (observer) 9 Ståle Andreas Hovdekleiv (observer) - Total for board members elected by employees ** 135 * Chairman from 28th of June 2021. ** This applies to directors’ fees for board positions in subsubsidiary Beerenberg Services AS. Group executive management 2021 Position Salary Other Compensations Arild Apelthun CEO 2 897 1 362 Harald Haldorsen CFO 2 089 252 (Amounts in NOK 1,000) (Amounts in NOK 1,000) 7575 BEERENBERG AS GROUP GROUP ACCOUNTS 2021 Pensions are not included in the table above. Group executive management and CEO have an additional pension scheme agreement which amounts to 10% of salary for CEO, and 6% of salary for group executive management. The CEO has an agreement that guarantees salary payments for up to 18months if the employer were to terminate his employ- ment. A non-compete clause also apply to the CEO in the same period. The CEO has a performance-based bonus agreement, identical for all employees in the group executive management. Bonus may not exceed 40% of the annual salary for CEO and 30% for group executive management. No other bonuses, severance or options than described here are given to the board of directors or management. In addition to ordinary salaries, key employees benefit from free telephones, broadband and mandatory contribution- based pensions. Everyone is paid a fixed salary, and no overtime payments are made. The key principles for setting management salaries at Beerenberg are that the company should be able to oer competitive terms. This relates to the combination of salaries, benefits in kind and pension schemes. The company operates in an international environ- ment, a fact that is emphasised and reflected when setting the level of remuneration. When setting remuneration for 2022, the company will apply the same policy as in 2021. This entails being a competitive employer who attracts necessary expertise and capacity. The company also wishes to retain expertise and encourage long-term employment relationships. In respect of salary levels, the company aims to be in the high to average range in relation to comparable companies in order to attract compe- tent personnel. Note 19 Warranty liabilities and provisions The group has provided a joint bank guarantee for all the companies in the group. In some cases, the group will provide bank guarantees to customers when entering into large fixed price contracts. As at 31.12.21, the guarantees totalled 32189, compared to 66665 as at 31.12.20. A tax withholding guarantee of 46500 has also been provided as at 31.12.21, compared to 46500 as at 31.12.20. The group has warranty liabilities relating to maintenance contracts. Warranty periods may last for three to five years after an annual programme has been completed. New-build and modifications contracts are generally subject to a two to three year warranty after the completion certificate has beenissued. Guarantee liabilities are assessed continuously per individual project that has guarantees provided. However, as it isdif- ficult to estimate the probability that a warranty claim will arise per project and how much cost this would entail, there are also made an assessment of the overall uncertainty on group level (IAS 37.24) Change in provision for for warranty liabilities is shown in the table below. Warranty liabilities 2021 2020 Opening balance 19 792 18 990 Incurred warranty cost 100 0 Expired warranty provision -3 239 -4 898 New warranty provision 4 875 5 700 Closing balance 21 527 19 792 Note 20 Other short-term liabilities Other short-term liabilities 2 021 2 020 Accrued holiday pay 79 460 66 933 Contract liabilities 10 374 22 354 Project provisions and provisions for accrued salaries 113 375 107 656 Total other short-term liabilities 203 210 196 943 (Amounts in NOK 1,000) (Amounts in NOK 1,000) Note 18 | Remuneration of key employees 76 76 GROUP ACCOUNTS 2021 BEERENBERG AS GROUP Note 21 Contingent outcomes PROJECT RISKS AND UNCERTAINTIES The group’s projects are largely long-term Frame Agreements awarded as the result of a tender. According to IFRS 15 reve nue is recognized based on evaluation of work performed in the period. The value of work performed during the period are based on a measurement of physical progress recorded after a detailed inspection of actual progress, or based on the number of hours of work performed, normally also approved by the customer. Therefore, in each reporting period there will be a very limited degree of use of estimates related to revenue in projects involving services rendered. Similar, in projects involving delivery of goods income is recognized upon delivery to customer, so a very limited need for estimates exists. However, circumstances and information may change in sub- sequent periods, and final outcomes may be better or worse than assessments made at the time the financial statements were prepared. In the group’s opinion, there are no projects as at 31.12.21 with uncertainties relating to estimates of revenue or cost that may be of significant importance to the consolidated figures. LEGAL DISPUTES From time to time, the group becomes involved in various disputes in its course of business. Provisions have been made to cover expected losses resulting from such disputes to the extent that negative outcomes are probable and reliable estimates can be produced. The final outcome of such cases will always contain elements of uncertainty, and may result in liabilities exceeding the recognised provisions. Note 22 Related parties No related parties transactions were conducted in 2021. (Amounts in NOK 1,000) 7777 BEERENBERG AS GROUP GROUP ACCOUNTS 2021 Note 23 Group entities As at 31.12.21 the group consist of the following 10 companies; Beerenberg AS, Beerenberg Holding AS, Beerenberg Services AS, Beerenberg Industri AS, Beerenberg Poland Sp. zo.o, Beerenberg Singapore LTD, Beerenberg UK LTD, Beerenberg (Thailand) Co., LTD., Beerenberg Holding (Thailand) LTD and Beerenberg Korea LTD. Together with STB Corporation Company Limited, a subsidi- ary Beerenberg Holding (Thailand) LTD was established in the 4th Quarter of 2021. The investment by STB Corporation Company Limited in Beerenberg Holding (Thailand) LTD represents a non-controlling interest, thus net profit that is attributable to non-controlling interest is presented in the Condensed Statement of Income and in the Condensed Consolidated Statement of Change in Equity. The owner- ship interest is 49%, still Beerenberg Holding (Thailand) LTD and its subsidiary Beerenberg (Thailand) Co., LTD. is consolidated in the group accounts since the majority of voting rights is secured through the shareholder structure and agreements. Company Parent Company Ownership interest Beerenberg Holding AS Beerenberg AS 100% Beerenberg Services AS Beerenberg Holding AS 100% Beerenberg Industri AS Beerenberg Services AS 100% Beerenberg Solutions Poland Sp. z o.o Beerenberg Services AS 100% Beerenberg Singapore LTD Beerenberg Services AS 100% Beerenberg UK LTD Beerenberg Services AS 100% Beerenberg Holding (Thailand) LTD Beerenberg Services AS 49% Beerenberg (Thailand) Co., LTD. Beerenberg Holding (Thailand) LTD 100% Beerenberg Korea LTD Beerenberg Solutions Poland Sp. z o.o 100% Beerenberg Industri AS registered oce is at Bedriftsvegen 10, Skien. Beerenberg Singapore LTD’s registered oce is in Singapore. Beerenberg Poland Sp. Z o.o’s registered oce is in Poland. Beerenberg Korea LTD’s registered oce is in Korea. Beerenberg (Thailand) Co., LTD’s and Beerenberg Holding (Thailand) LTD registered oce is in Thailand. Beerenberg UK LTD’s registered oce is in UK. The other companies has registered oce at Kokstaddalen 33, Bergen. The voting share in the subsidiary companies is identical to the ownership share, except for Beerenberg Holding (Thailand) LTD where the majority of voting rights is secured through the shareholder structure and agreements. 7878 GROUP ACCOUNTS 2021 BEERENBERG AS GROUP Note 24 Derivatives The group has used hedge accounting in accordance with IFRS 9. Refer to note 1 accounting principles for a description of the group’s strategy for applying dierent types of deriva- tives to mitigate dierent types of risk exposures, and how these aects the financial statement. At the end of 2020 and 2021 only one derivative instrument was present, an interest swap agreement, to mitigate the eect of change in variable interest rates. In connection with the new Bond loan, the group entered in December 2020 into an interest rate swap agreement to secure the cash flows related to long-term loans, where the loan terms are 3 months Nibor + margin. The contract involve an exchange of 3-month Nibor to the fixed rates set forth below for current principal in the maturity of the agreement. The fair value of interest rate swap is classified as non-current asset / liability since the remaining maturity of the hedged item (loan) is more than 12 months. Change in value of contracts are recognized in other comprehensive income. Interest rate swaps are valued according to level 2 of the valuation hierarchy (IFRS 13), ie the value derived from observable factors such as market interest rates. The fair value of the interest rate swap is at 31.12.21 positive and is therefore booked in the account group financial fixed assets under non current assets compared to last year when it was booked in the account group derivatives under long term liabilities. 2021 Risk Category Nature of risk Counter- party/ Bank Agreement Date of agreement Maturity Principal amount Fixed interest Variable interest Classifi- cation Market value as of 311221 Fair Value 311221 Cash flow hedge Changes in variable interest rate Danske Bank 62264732FO- BRD7L 17122020 17122020– 13112023 450 000 0695% 3 mnth Nibor Long term 6 697 6 697 2020 Risk Category Nature of risk Counter- party/ Bank Agreement Date of agreement Maturity Principal amount Fixed interest Variable interest Classifi- cation Market value as of 311220 Fair Value 311220 Cash flow hedge Changes in variable interest rate Danske Bank 62264732FO- BRD7L 17122020 17122020– 13112023 450 000 0695% 3 mnth Nibor Long term -1 122 -1 122 (Amounts in NOK 1,000) 7979 BEERENBERG AS GROUP GROUP ACCOUNTS 2021 Note 25 Interest-bearing liabilities The tables provide information about the contractual terms relating to the group’s interest-bearing liabilities measured at amortised cost. For more information about the group’s interest rates, currencies and liquidity risk, please see the section on financial risk management and exposure in the chapter on accounting principles. SUMMARY OF INTERESTBEARING LIABILITIES AS AT .. Book value Spread over NIBOR Due Terms of interest Multicurrency overdraft facility, limit 150 000 * - 25% 13112023 NIBOR+Margin Interest-bearing leasing liabilities 43 221 15%–45% 2021–2028 NIBOR+Margin * The facility has a total limit of 150000 which includes guarantees. The remaining limit after reduction for guarantees are 71327. There is a commitment fee for unused facility of 1.2%. The group have the following loans: Loans Book value Spread over NIBOR Fair Value Due Terms of interest Bond (Senior Secured Callable Bond Issue 2020/2023) * 682 487 800% 722 750 13112023 3 mnth NIBOR+Margin Government Loan ** 3 099 - 3 099 25072023 Interest free * A 3-year Senior Secured Bond of 750000 was issued in November 2020. Discount on principal amount and arrangement fee, have been classified net with the Bond. The bond has every 6-month amortization of 25000 until maturity, in total 125000. As at 31.12.2021 50000 have been amortized. The maturity date of the bond is 13 November 2023. At redemption of the loan a premium of 3.25% on principal amount have to be paid, therefore Fair Value of the Bond is presented including this premium. The premium at redemption, as well as discount and arrangement fee is accrued as interest cost during the course of the loan. The table below explains the link between principal amount of the Bond, book value and fair value. ** The government loan provided to the subsidiary in Poland, Beeren berg Poland Sp Z o.o, is part of the Polish governments Covid support package. The loan is interest free. Principal amount 700 000 3.25% premium to be paid at redemption of Bond 22 750 Fair Value 722 750 Principal amount 700 000 Discount principal amount and arrangement fee -17 513 Book Value 682 487 ** The government loan provided to the subsidiary in Poland, Beerenberg Poland Sp Z o.o, is part of the Polish governments Covid support package. The loan is interest free. COVENANTS In connection with the bond issue Beerenberg has signed an 150000 super senior credit facility agreement with Danske Bank. The Facility agreement includes covenants related to quarterly Net Total Leverage ratio test (Net Debt / EBITDA). This ratio must be below 7.0 at 31.12.2021. The group has been in compliance with covenants in 2021. (Amounts in NOK 1,000) 8080 GROUP ACCOUNTS 2021 BEERENBERG AS GROUP Note 26 Secured liabilities The group has provided security for its arrangement with Danske Bank. The tables below provide an overview of the arrangement and the book value of the assets set up as security. The group has provided joint bank guarantee for all the companies in the group. The group’s guarantee liability pertains to contract guarantees for such guarantees and to guarantees to the authorities. As at 31.12.21, the guarantees totalled 78673. Security has been provided for the following debts: 31122021 31122020 Guarantees, incl. tax withholding guarantee 78 673 113 165 Interest bearing short-term liabilities 78 861 70 757 Interest bearing long-term liabilities 665 173 668 384 Total for the group 822 707 852 305 Capitalized value of assets provided as security for secured debts: 31122021 31122020 Fixed assets 172 022 166 215 Inventory 77 790 66 250 Trade receivables 306 387 249 611 Total 556 200 482 075 Note 27 Events after the reporting date At the time of publication of the annual report, Russia has invaded Ukraine and strict sanctions have been imposed against Russia and Belarus. The consequences of the acts of war are uncertain. Beerenberg Group has insignificant activities in and exposure to these countries, but is following developments closely to detect any changes in our risk assessment. (Amounts in NOK 1,000) (Amounts in NOK 1,000) 8181 Income statement 84 Statement of Comprehensive Income 85 Statement of Financial Position 86 Statement of Cash Flows 88 Accounting principles 89 Note 1 Revenues 90 Note 2 Long-term investments in other companies 90 Note 3 Restricted funds 91 Note 4 Share capital and shareholder information 91 Note 5 Equity 91 Note 6 Non-current liabilities, collateral and guarantees etc. 92 Note 7 Tax 93 Note 8 Payroll costs, number of employees, remuneration, loans to employees etc. 94 Note 9 Specification of finance income and finance costs 94 Note 10 Financial instruments 95 Note 11 Events after the reporting date 95 BEERENBERG AS Annual Accounts 82 83 BEERENBERG AS ANNUAL ACCOUNTS 2021 BEERENBERG AS ANNUAL ACCOUNTS Income statement Amounts in NOK 1,000 Note 2021 2020 Other revenue 0 11 876 Total revenue 1 0 11 876 Amounts in NOK 1,000 Note 2021 2020 Operating expenses Other operating expenses 8 1 658 1 223 Total operating expenses 1 658 1 223 Operating result -1 658 10 652 Intragroup interest income 304 834 Other interest income 3 1 Other finance income 165 840 157 663 Intragroup interest costs 3 598 4 415 Other interest costs 69 485 76 732 Other finance costs 9 160 5 820 Net financial items 9, 10 83 904 71 531 Ordinary result before tax 82 245 82 183 Ta x 7 17 749 17 512 Annual profit 64 496 64 671 The annual profit/loss is attributable to: Other equity 5 64 496 64 671 Annual profit 64 496 64 671 Basic earnings per share for 1 000 000 A-shares 4 0064 0065 Diluted earnings per share are identical as there is no dilutive effect. The accompanying notes 1–11 are an integral part of these financial statements. 84 ANNUAL ACCOUNTS 2021 BEERENBERG AS BEERENBERG AS ANNUAL ACCOUNTS Statement of Comprehensive Income Amounts in NOK 1,000 Note 2021 2020 Annual profit 64 496 64 671 Amounts in NOK 1,000 Note 2021 2020 Other revenue and expenses Change in value of derivatives 7, 10 6 100 -49 Total Comprehensive income 70 596 64 622 Comprehensive income is attributable to: Shareholders 70 596 64 622 Total Comprehensive income 70 596 64 622 Other revenue and expenses is after tax and will be reversed in the income statement. The accompanying notes 1–11 are an integral part of these financial statements. 85 BEERENBERG AS ANNUAL ACCOUNTS 2021 BEERENBERG AS ANNUAL ACCOUNTS Amounts in NOK 1,000 Note 31122021 31122020 Assets NONCURRENT ASSETS Financial non-current assets Investments in subsidiaries 2 1 257 646 1 257 646 Derivatives 10 6 697 0 Total financial non-current assets 1 264 344 1 257 646 Total non-current assets 1 264 344 1 257 646 Amounts in NOK 1,000 Note 31122021 31122020 Assets CURRENT ASSETS Receivables Other current receivables 2 164 565 158 762 Total receivables 164 565 158 762 Total current assets 164 565 158 762 Cash at bank 3 80 614 58 Total assets 1 509 523 1 416 466 Statement of Financial Position 86 BEERENBERG AS ANNUAL ACCOUNTS Amounts in NOK 1,000 Note 31122021 31122020 Equity and Liabilities EQUITY Paid-in capital Share capital 26 700 26 700 Share premium 240 310 240 310 Total paid-in capital 267 010 267 010 Amounts in NOK 1,000 Note 31122021 31122020 Equity and Liabilities EQUITY Retained earnings Other equity 520 930 450 335 Total retained earnings 520 930 450 335 Total equity 4, 5 787 940 717 345 Amounts in NOK 1,000 Note 31122021 31122020 Equity and Liabilities LIABILITIES Other non-current liabilities Deferred tax liabilities 7 466 922 Interest bearing long-term liabilities 6 632 487 623 599 Derivatives 10 0 1 122 Total other non-current liabilities 632 953 625 643 Amounts in NOK 1,000 Note 31122021 31122020 Equity and Liabilities LIABILITIES Current liabilities Interest bearing short-term liabilities 6 65 212 59 745 Tax payable 7 19 925 12 598 Other current liabilities 3 492 1 136 Total current liabilities 88 630 73 479 Total liabilities 721 583 699 121 Total equity and liabilities 1 509 523 1 416 466 The accompanying notes 1–11 are an integral part of these financial statements. BERGEN APRIL Beerenberg AS board of directors Hilde Drønen Morten Walde Arild Apelthun CEO Geir M. Aarstad Sebastian Ehrnrooth Ingelise Arntsen Chairman 87 BEERENBERG AS ANNUAL ACCOUNTS 2021 Amounts in NOK 1,000 Note 2021 2020 Cash flows from operating activities Result for the period before tax 82 245 82 183 Tax paid for the period 7 -12 598 -16 424 Changes to other time restricted items 24 586 -247 Net cash flow from operating activities 94 234 65 512 Amounts in NOK 1,000 Note 2021 2020 Cash flows from financing activities Change in draw on credit facility -6 054 6 054 Incoming payments on long term loans 6 50 000 672 845 Outgoing payment on long term loans 6 -50 000 -850 000 Payment of group contribution 9 156 646 151 562 Group contribution booked as finance income 9 -164 269 -156 663 Net cash flow from financing activities -13 677 -176 202 Net change in cash and cash equivalents 80 556 -110 690 Cash and cash equivalents per 01.01. 58 110 748 Cash and cash equivalents 31.12. 80 614 58 The accompanying notes 1–11 are an integral part of these financial statements. BEERENBERG AS ANNUAL ACCOUNTS Statement of Cash Flows 88 ANNUAL ACCOUNTS 2021 BEERENBERG AS ACCOUNTING PRINCIPLES The financial statements have been prepared in accord- ance with the regulation on simplified adoption of IFRS (International Financial Reporting Standards). The annual financial statements were authorised for issue by the board of directors on 26. April 2022. CLASSIFICATION OF ITEMS IN THE STATEMENT OF FINANCIAL POSITION Assets intended for long-term ownership or use are classified as non-current assets. Assets associated with the circulation of goods are classified as current assets. Receivables are classified as current assets if they fall due within one year. Analogue criteria are applied to liabilities. However, repay- ments of non-current receivables and non-current liabilities made in the first year are not classed as current assets or current liabilities. TAX The tax liability in the income statement comprises both tax payable and changes in deferred tax for the period. Deferred tax is calculated at the prevailing tax rate on the basis of the temporary dierences between book value and taxable value and on any tax loss carryforward at the end of the financial year. Tax-increasing and tax-reducing temporary dierences that are reversed or may be reversed in the same period have been oset. INVESTMENTS IN SUBSIDIARIES Subsidiaries are measured using the cost method in the separate financial statements. Investments are valued at the historical cost of the shares unless depreciation has become necessary. They are depreciated to fair value when the fall in value is due to circumstances that cannot be assumed to be temporary and it is deemed necessary in accordance with generally accepted accounting practices. Write-downs are reversed when the basis for a write-down is no longer present. Any dividends received are in principle recognized as income, however. Dividends that exceed retained earnings after purchase are recognized as a reduction in the original cost. Dividends / Group contributions from subsidiaries are recognized in the same year that the subsidiary makes the provision. LIABILITIES Liabilities are recognized at their fair value when the loan is paid out, less transaction costs. In subsequent periods the loan is recognized at amortised cost using the eective rate of interest. FINANCIAL INSTRUMENTS The Company initially recognizes loans, receivables and deposits on the date of acquisition. All other financial assets are recognized initially on the trade date at which the Company becomes a party to the contractual provisions of the instrument. The Company derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or when the Company transfers the contractual rights in a transaction where substantially all the risks and rewards of ownership of the financial asset are transferred. All rights and liabilities in transferred financial assets that are created or retained as a result of the transfer are recognized separately as assets or liabilities. Financial assets and liabilities are oset if the Company is legally entitled to oset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. Oset amounts are presented net in the statement of financial position. Financial derivative instruments The group holds a limited number of financial derivative instruments to hedge its foreign currency and interest rate risk exposures. The management strategy is, at present, to use hedging instruments in order to mitigate the eect of changes in variable interest rates. The long-term financing of the group is based on variable interest rates (3 mnth Nibor) which is subject to fluctuations. The strategy is to minimize this risk by entering into interest swaps agreements to swap variable interest rates to fixed rates at a proportion of around 70% of total outstanding loans. Derivatives are recognized initially at fair value. Changes in fair value are recognized in profit or loss, except for hedging instruments that meet the criteria for hedge accounting. The group follows IFRS 9 criteria’s for classifying a derivative instrument as a hedging instrument. These are as follows: a) the hedging relationship consists only of eligible hedg- ing instruments and eligible hedged items. b) at the inception of the hedging relationship there is formal designation and documentation of the hedging relationship and the entity’s risk management objec- tive and strategy for undertaking the hedge. c) the hedging relationship meets all of the following hedge eectiveness requirements: Accounting principles 89 BEERENBERG AS ANNUAL ACCOUNTS 2021 Accounting principles i. there is an economic relationship between the hedged item and the hedging instrument ii. the eect of credit risk does not dominate the value changes that result from that economic relationship and iii. the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the entity actually hedges and the quantity of the hedging instrument that the entity actually uses to hedge that quantity of hedged item. Hedging instruments classed as cash flow hedges oset variations in cash flows caused by changes in exchange rates, interest rates and market values. For cash flow hedges that meet the criteria for hedge accounting, all gains and losses on the eective part of the contract are recognized in comprehensive income and as hedging reserve in the state- ment of equity, while those on the ineective part are recog- nized in the income statement under finance. Derivative financial instruments with positive fair value are classified as current assets if the remaining maturity of the hedged item is less than a year into the future, and as fixed assets when the remaining maturity of the hedged item is more than a year ahead. Financial derivatives with negative fair value are classified as a current liability if the remaining maturity of the hedged item is less than a year into the future, and as a long-term liability when the remaining maturity is more than a year ahead. Refer to note 10 for a specification of the group’s current derivative instruments. Note 1 Revenues 2021 2020 Other revenue Government business compensation scheme 0 11 876 Total other revenue 0 11 876 Other revenue in 2020 is related to government business compensation scheme related to Covid-19, where the company was entitled to support for certain fixed costs for the months March through August. Note 2 Long-term investments in other companies SUBSIDIARY: Registered office Ownership interest / Voting share Equity last year 100% Profit/loss last year 100% Beerenberg Holding AS Bergen 100% 740 910 0 INTRAGROUP BALANCES ETC.: Other current receivables 2021 2020 Beerenberg Singapore LTD 0 1 407 Beerenberg Services AS 166 147 156 646 Total 166 147 158 053 (Amounts in NOK 1,000) 90 ANNUAL ACCOUNTS 2021 BEERENBERG AS Note 3 Restricted funds The company has no restricted funds as of 31.12.2021. Note 4 Share capital and shareholder information The Company’s share capital is 26 700 distributed on 267000000 shares, whereof 1000000 A-shares, and 266000000 B-shares. Nominal value per share is 0.0001. The A-shares have all rights. The B-shares have voting rights by 1 vote per 10 share and no rights to dividends. In the event of a liquidation of the company, the owner of B share shall be entitled to repayment of paid-in capital at the time when the share was subscribed (nominal and any share premium), but no excess amount. The B shareholders right at this point has a preferential right over the A shareholders right to liquida- tion dividends. Otherwise, the share classes are equal. List of the major shareholders at 31.12.21: Shareholder A-Shares % B-Shares % Total Shares % Controlled by Segulah IV L.P. 820 875 821% 223 247 653 839% 224 081 385 839% AlpInvest Partners 2012 I B.V. 92 121 92% 24 931 110 94% 25 023 231 94% AlpInvest Partners 2012 II B.V. 23 319 23% 6 310 883 24% 6 334 202 24% GRAA AS 11 792 12% 3 379 600 13% 3 393 800 13% Board Leader Svein Eggen Holding AS 5 325 05% 1 267 350 05% 1 272 675 05% Board member Mowin AS 5 325 05% 1 267 350 05% 1 272 675 05% Board member Other 41 243 41% 5 596 054 21% 5 622 032 21% Total 1 000 000 100.0% 266 000 000 100.0% 267 000 000 100.0% Basic earnings per A-share is 0.064 for 2021 compared to 0.065 for 2020. Basic earnings per share are based on the profit/loss attributable to A-shares and on the weighted average number of ordinary shares outstanding. Diluted earnings per share are identical as there is no dilutive eect. Note 5 Equity Share capital Share premium Other equity Total Equity as of 01.01.2021 26 700 240 310 450 335 717 345 Profit/loss for the year 64 496 64 496 Other comprehensive income for the year 6 100 6 100 Equity as of 31.12.2021 26 700 240 310 520 930 787 940 (Amounts in NOK 1,000) 91 BEERENBERG AS ANNUAL ACCOUNTS 2021 Note 6 Non-current liabilities, collateral and guarantees, etc. Liabilities secured by collateral etc. A 3-year Senior Secured Bond of 750000 was issued in November 2020. Discount on principal amount and arrange- ment fee, have been classified net with the Bond. The bond has every 6-month amortization of 25000 until maturity, in total 125 000. As at 31.12.2021 50000 have been amortized. The maturity date of the bond is 13 November 2023. At redemption of the loan a premium of 3.25% on principal amount have to be paid, therefore Fair Value of the Bond is presented including this premium. The premium at redemption, as well as discount and arrangement fee is accrued as interest cost during the course of the loan. The table below explains the link between principal amount of the Bond, book value and fair value. 2021 2020 Bond (Senior Secured Callable Bond Issue 2020/2023) 682 487 673 599 Total 682 487 673 599 Nominal bond issue is 700000. The bond issue net of discount on principal amount and arrangement fee is recorded at amortised cost at 682 487. In connection with the bond issue Beerenberg has signed an 150000 super senior credit facility agreement with Danske Bank. The Facility agreement includes covenants related to quarterly Net Total Leverage ratio test (below 7.0 Q4 2021). The group is in compliance with covenants as of 31st of December 2021. The subsidiaries Beerenberg Services AS and Beerenberg Holding AS are jointly and severally liable together with the parent Company Beerenberg AS for bonds acquired by Beerenberg AS. MATURITY STRUCTURE OF FINANCIAL LIABILITIES The figures in the table show the maturity structure in nominal increments for the Company’s interest-bearing debts, including interest payments on recognized liabilities as at 31.12: Book value Fair Value Under 6 months 6–12 months 1–2 years 2–5 years Bond 682 487 722 750 55 765 54 666 106 036 651 641 * At redemption of the loan a premium of 3.25% on principal amount have to be paid, therefore Fair Value of the Bond is presented including this premium and less principal amount of own Bonds. The interest rate is 3 months’ NIBOR plus a 8.0 percentage point spread. NET DEBT RECONCILIATION Liabilities from financing activities Borrowings Total Net debt as at 31 December 2019 844 935 844 935 Cash flow changes Draw on credit facility 6 054 6 054 Incoming payments from new loans 672 845 672 845 Outgoing payment on long term loans -850 000 -850 000 Non cash changes 9 510 9 510 Net debt as at 31 December 2020 683 343 683 343 Cash flow changes Draw on credit facility -6 054 -6 054 Incoming payments on long term loans 50 000 50 000 Outgoing payment on long term loans -50 000 -50 000 Non cash changes 20 410 20 410 Net debt as at 31 December 2021 697 700 697 700 (Amounts in NOK 1,000) 92 ANNUAL ACCOUNTS 2021 BEERENBERG AS Note 7 Tax Tax payable has been calculated as follows 2021 2020 Ordinary result before tax 82 245 82 183 Permanent differences -1 567 -2 583 Change in temporary difference 9 888 -22 336 Basis for tax payable 90 567 57 264 Payable tax in the balance sheet (22%) 19 925 12 598 Calculation of deferred tax / deferred tax assets Temporary differences through profit/loss 2021 2020 Accrued borrowing costs 17 513 26 401 Self-owned bonds 0 1 000 Precluded interest deduction to be carried forward -22 089 -22 089 Net temporary differences -4 576 5 312 Basis for deferred tax / tax assets -4 576 5 312 22% deferred tax / tax assets (-) through profit/loss -1 007 1 169 Temporary differences through Other Comprehensive Income (OCI) 2021 2020 Derivative 6 697 -1 122 Basis for deferred tax / tax assets 6 697 -1 122 22% deferred tax / tax assets (-) through OCI 1 473 -247 Deferred tax in the statement of financial position 466 922 Distribution of tax expense 2021 2020 Tax payable in the statement of financial position 19 925 12 598 Total tax payable in tax expense 19 925 12 598 Change in deferred tax through profit/loss -2 175 4 914 Tax expense through profit/loss 17 749 17 512 Change in deferred tax/deferred tax assets through OCI 1 719 -883 Tax expense through OCI 1 720 -883 Payable tax in the balance sheet 19 925 12 598 (Amounts in NOK 1,000) 93 BEERENBERG AS ANNUAL ACCOUNTS 2021 Note 8 Payroll costs, number of employees, remunerations, loans to employees ect. The Company had no employees in 2021 and is not obliged to operate an occupational pension scheme under the Act on Obligatory Occupational Pensions. No remuneration was paid to the CEO or members of the board of directors in 2021. Expensed auditor’s remuneration 2021 2020 Statutory audit (incl. technical assistance with financial statements) 109 106 Tax advice 0 37 Other audit assurance services 38 210 Total 147 353 The sums stated are exclusive of VAT. Note 9 Specification of finance income and finance costs Finance income 2021 2020 Group contribution from Beerenberg Services AS 164 269 156 663 Intragroup interest income 304 834 Gains from purchase and sale of own bonds 1 571 1 000 Other finance income 3 1 Total finance income 166 147 158 497 Finance costs 2021 2020 Intragroup interest costs 3 598 4 415 Interest costs Bond and other interest costs 69 532 76 732 Accrued refinancing fee 9 113 5 820 Total finance costs 82 244 86 966 (Amounts in NOK 1,000) (Amounts in NOK 1,000) 94 ANNUAL ACCOUNTS 2021 BEERENBERG AS Note 10 Financial instruments 2021 2020 Cash flow hedge (interest rate swap) 6 697 -1 122 Total fair value 6 697 -1 122 The Company has an interest rate swap with a nominal value of 450000. The Company is swapping variable interest (3mnth NIBOR) for fixed interest at 0.695%. The fair value of the interest swap has been calculated by the Group’s bank. The interest rate swap runs until November 2023. The inter- est rate swap qualifies for hedge accounting following the repayment of the old bond issue, and replacement by a new bond issue in November 2020. The interest swap eectively reduces interest rate risk, thus satisfying the criteria for hedge accounting. The interest swap is valued in accordance with Level 2 of the valuation hierarchy (IFRS 13), i.e. the value is derived from observable factors such as market interest rates. Change in fair value of the cash flow hedge net after tax is recorded in Other Comprehensive Income. At 31.12 the fair value of the new interest swap is positive by 6697, net after tax the balance of Hedging reserve is positive by 5225. FINANCIAL INSTRUMENTS BY CATEGORY As at 3112. – Assets Deposits, receivables and cash Assets at fair value through profit/loss Derivatives used for hedging Financial assets available for sale Total Derivatives used for cash flow hedging 0 0 6 697 0 6 697 Receivables 164 565 0 0 0 164 565 Cash and cash equivalents 80 614 0 0 0 80 614 Total 245 179 0 6 697 0 251 877 As at 3112. – Liabilities Financial liabilities carried at amortisedcost Liabilities at fair value through profit/loss Derivatives used for hedging Other financial liabilities Total Loans excl. statutory liabilities 682 487 0 0 0 682 487 Total 682 487 0 0 0 682 487 Note 11 Events after the reporting date At the time of publication of the annual report, Russia has invaded Ukraine and strict sanctions have been imposed against Russia and Belarus. The consequences of the acts of war are uncertain. Beerenberg Group has insignificant activities in and exposure to these countries, but is following developments closely to detect any changes in our risk assessment. (Amounts in NOK 1,000) 95 Declaration by the Board of Directors and CEO We confirm, to our best knowledge, that the financial statements for the period January01 to 31 December 2021 for the parent company Beerenberg AS and for the group has been prepared in accordance with all applicable accounting standards. We confirm that the financial statements give a true and fair view of the group’s consolidated assets, liabilities, financial position and result of the operations. The Board also confirm that the Director’s Report provides a true and fair view of the development and performance of the business and the position of the group and the Company, including a description of the key risks and uncertainty factors that the Beerenberg AS group is facing. Geir M. Aarstad Sebastian Ehrnrooth Ingelise Arntsen Chairman Hilde Drønen Morten Walde Arild Apelthun CEO BERGEN APRIL Board of Directors at Beerenberg AS 96 AUDITOR’S REPORT PricewaterhouseCoopers AS, Sandviksbodene 2A, Postboks 3984 - Sandviken, NO-5835 Bergen T: 02316, org. no.: 987 009 713 MVA, www.pwc.no Statsautoriserte revisorer, medlemmer av Den norske Revisorforening og autorisert regnskapsførerselskap To the General Meeting of Beerenberg AS Independent Auditor’s Report Report on the Audit of the Financial Statements Opinion We have audited the financial statements of Beerenberg AS, which comprise: • The financial statements of the parent company Beerenberg AS (the Company), which comprise the statement of financial position as at 31 December 2021, the income statement, statement of comprehensive income and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and • The consolidated financial statements of Beerenberg AS and its subsidiaries (the Group), which comprise the consolidated statement of financial position as at 31 December 2021, the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion: • the financial statements comply with applicable statutory requirements, • the financial statements give a true and fair view of the financial position of the Company as at 31 December 2021, and its financial performance and its cash flows for the year then ended in accordance with simplified application of international accounting standards according to section 3-9 of the Norwegian Accounting Act, and • the financial statements give a true and fair view of the financial position of the Group as at 31 December 2021, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the EU. Our opinion is consistent with our additional report to the Audit Committee. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company and the Group as required by laws and regulations and the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International 97 AUDITOR’S REPORT Independent Auditor's Report - Beerenberg AS (2) Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit Regulation (537/2014) Article 5.1 have been provided. We have been the auditor of the Company for 9 years from the election by the general meeting of the shareholders on 21 February 2013 for the accounting year 2013. Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. The Groups business activities are largely unchanged compared to last year. Valuation of goodwill and Earned, not invoiced revenue contains the same risks and challenges as last year and our focus on these areas have continued in 2021. Key Audit Matter How our audit addressed the Key Audit Matter Valuation of Goodwill At 31 December 2021, the Group had recognized Goodwill with a carrying value of NOK 782 762 thousand. Goodwill is allocated to groups of cash generating units identified in accordance the Group’s operating segments, Services and Benarx. The impairment assessment of goodwill showed that the recoverable amount was higher than the carrying amount for both segments. Consequently, no impairment was recognized. Valuation of goodwill requires management to exercise judgement related to, among other, future cash flows and discount rate applied. We focused on this area due to the magnitude of the amounts and the inherent risks related to judgements made by management when determining the assumptions applied to support the valuation of goodwill. We refer to note 12 in the consolidated financial statements for further information. We obtained an understanding of management’s valuation process and evaluated relevant internal control activities. We reviewed management’s identification of cash-generating units and found these to be in accordance with IFRS. We reviewed management’s model and impairment assessments for the cash generating units where goodwill was allocated and tested whether the model was mathematically accurate. We found that the model was based on recognized principles and that the recoverable amount was accurately calculated. We compared the different elements in the discount rate calculation to our own expectations and the general expectations in the market and found that the applied discount rate was reasonable. We evaluated management’s assumptions related to future cash flows by comparing them to the budgets adopted by the Board of Directors and the strategy plan for the Group’s various cash generating units. We performed sensitivity analyses and challenged management’s assumptions related to future cash flows. We found that the assumptions were reasonable 98 Independent Auditor's Report - Beerenberg AS (3) and in line with the Group’s current market visibility and historical hit rates. The terminal growth rate in the model was compared to the market’s expectation of long-term inflation. We challenged management’s historical accuracy by comparing previous years' assumptions related to actual results in the related years. We found no material deviations between the assumptions used in previous years. We have read note 12 and assessed the information there to be in line with the requirements. Earned, not invoiced revenue Earned, not invoiced revenue constitutes NOK 195 220 thousand. We refer to note 6, 13 and 21 in the consolidated financial statements for more information. The Group’s contracts are mainly servicing and maintenance contracts that are recognized over time. Work performed is invoiced monthly along with delivered service and maintenance. At year-end there will be work performed during the year, mainly during December that is not yet invoiced and recorded as earned, not invoiced revenue. The estimate requires that management apply judgement related to the amount of work performed. We focused on earned, not invoiced income due to the size of the amount, and the inherent risk related to management overestimating the earned, not invoiced income, which would affect the Groups results in the financial statements . We obtained an understanding of and evaluated the assumptions used in the calculation of earned, not invoiced revenue. To assess the assumptions included in the calculation of earned, not invoiced revenue, we obtained an understanding of the customer contracts as well as management’s process for developing the estimate including relevant internal control activities. We challenged the assumptions used in interviews with management. Further, we agreed the assumptions used with underlying contracts and other forms of underlying documentation and tested whether management’s calculations were mathematically accurate. We assessed management’s historical accuracy by comparing prior years’ assumptions related to earned, not invoiced income to what was invoiced in the subsequent year. We found that previous years earned, not invoiced income, in all material respects was invoiced in the subsequent years. We have read note 6, 13 and 21, and assessed the information there to be in line with the requirements. Other Information The Board of Directors and the Managing Director (management) are responsible for the information in the Board of Directors’ report and the other information accompanying the financial statements. The other information comprises information in the annual report, but does not include the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the information in the Board of Directors’ report nor the other information accompanying the financial statements. 99 AUDITOR’S REPORT Independent Auditor's Report - Beerenberg AS (4) In connection with our audit of the financial statements, our responsibility is to read the Board of Directors’ report and the other information accompanying the financial statements. The purpose is to consider if there is material inconsistency between the Board of Directors’ report and the other information accompanying the financial statements and the financial statements or our knowledge obtained in the audit, or whether the Board of Directors’ report and the other information accompanying the financial statements otherwise appears to be materially misstated. We are required to report if there is a material misstatement in the Board of Directors’ report or the other information accompanying the financial statements. We have nothing to report in this regard. Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors’ report • is consistent with the financial statements and • contains the information required by applicable legal requirements. Our opinion on the Board of Director’s report applies correspondingly to the statements on Corporate Governance and Corporate Social Responsibility. Responsibilities of Management for the Financial Statements Management is responsible for the preparation of financial statements that give a true and fair view in accordance with simplified application of international accounting standards according to the Norwegian Accounting Act section 3-9, and for the preparation and true and fair view of the consolidated financial statements of the Group in accordance with International Financial Reporting Standards as adopted by the EU, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Company’s and the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: • identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error. We design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one 100 Independent Auditor's Report - Beerenberg AS (5) resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's or the Group's internal control. • evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • conclude on the appropriateness of management’s use of the going concern basis of accounting, and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company and the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company and the Group to cease to continue as a going concern. • evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves a true and fair view. • obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with the Board of Directors, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. 101 AUDITOR’S REPORT Independent Auditor's Report - Beerenberg AS (6) Report on Other Legal and Regulatory Requirements Report on compliance with Regulation on European Single Electronic Format (ESEF) Opinion We have performed an assurance engagement to obtain reasonable assurance that the financial statements with file name 5967007LIEEXZXFUSW82-2021-12-31_en have been prepared in accordance with Section 5-5 of the Norwegian Securities Trading Act (Verdipapirhandelloven) and the accompanying Regulation on European Single Electronic Format (ESEF). In our opinion, the financial statements have been prepared, in all material respects, in accordance with the requirements of ESEF. Management’s Responsibilities Management is responsible for preparing, tagging and publishing the financial statements in the single electronic reporting format required in ESEF. This responsibility comprises an adequate process and the internal control procedures which management determines is necessary for the preparation, tagging and publication of the financial statements. Auditor’s Responsibilities For a description of the auditor’s responsibilities when performing an assurance engagement of the ESEF reporting, see: https://revisorforeningen.no/revisjonsberetninger Bergen, 26 April 2022 PricewaterhouseCoopers AS Marius Kaland Olsen State Authorised Public Accountant 102 Definition of Alternative Performance Measures In this report some terms are used that are not defined in IFRS, but are terms commonly used by analysts, investors and others in the business sector. Below these terms are defined. ORDER BACKLOG The order backlog consists of sales value of contracts signed. As a significant part of Beerenberg’s revenue is related to framework agreements it also includes the estimated value of expected future sales value on framework agreements. EBITDA Operating profit (EBIT) + Depreciation and Impairment EBITDA MARGIN % EBITDA / Revenue EBIT Operating profit (before financial items and taxes) OPERATING MARGIN Operating result / Operating Revenue NET MARGIN % Net Profit / Operating Revenue NET WORKING CAPITAL Total current assets – Cash at bank / Total short-term liabilities less tax payable. SERIOUS INCIDENT FREQUENCY SIF The number of actual and potential unintentional serious incidents per 1 million man-hours worked. LOST TIME INJURY FREQUENCY LTIF The number of fatalities and lost time injuries occurred per 1 million man-hours worked. TOTAL RECORDABLE INJURY FREQUENCY TRIF Is the number of fatalities, lost time injuries, injuries with alternative work and injuries requiring medical treatment by a medical professional per million man-hours worked. 103 M I L J Ø M E R K E T 2 4 1 T r y k k s a k 6 9 9 Photography Fredrik Arff Design & print Bodoni AS 104 BEERENBERG T +47 55 52 66 00 E [email protected] | Visitors address Kokstaddalen 33 P.O.Box 273 Slåtthaug, N-5851 Bergen, Norway beerenberg.com 5967007LIEEXZXFUSW822021-01-012021-12-315967007LIEEXZXFUSW822020-01-012020-12-315967007LIEEXZXFUSW822021-12-315967007LIEEXZXFUSW822020-12-315967007LIEEXZXFUSW822019-12-31ifrs-full:IssuedCapitalMember5967007LIEEXZXFUSW822020-12-31ifrs-full:IssuedCapitalMember5967007LIEEXZXFUSW822019-12-31ifrs-full:SharePremiumMember5967007LIEEXZXFUSW822020-12-31ifrs-full:SharePremiumMember5967007LIEEXZXFUSW822019-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember5967007LIEEXZXFUSW822020-01-012020-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember5967007LIEEXZXFUSW822020-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember5967007LIEEXZXFUSW822019-12-31ifrs-full:ReserveOfCashFlowHedgesMember5967007LIEEXZXFUSW822020-01-012020-12-31ifrs-full:ReserveOfCashFlowHedgesMember5967007LIEEXZXFUSW822020-12-31ifrs-full:ReserveOfCashFlowHedgesMember5967007LIEEXZXFUSW822019-12-31ifrs-full:RetainedEarningsMember5967007LIEEXZXFUSW822020-01-012020-12-31ifrs-full:RetainedEarningsMember5967007LIEEXZXFUSW822020-12-31ifrs-full:RetainedEarningsMember5967007LIEEXZXFUSW822019-12-31ifrs-full:EquityAttributableToOwnersOfParentMember5967007LIEEXZXFUSW822020-01-012020-12-31ifrs-full:EquityAttributableToOwnersOfParentMember5967007LIEEXZXFUSW822020-12-31ifrs-full:EquityAttributableToOwnersOfParentMember5967007LIEEXZXFUSW822019-12-31ifrs-full:NoncontrollingInterestsMember5967007LIEEXZXFUSW822020-01-012020-12-31ifrs-full:NoncontrollingInterestsMember5967007LIEEXZXFUSW822020-12-31ifrs-full:NoncontrollingInterestsMember5967007LIEEXZXFUSW822019-12-315967007LIEEXZXFUSW822021-12-31ifrs-full:IssuedCapitalMember5967007LIEEXZXFUSW822021-12-31ifrs-full:SharePremiumMember5967007LIEEXZXFUSW822021-01-012021-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember5967007LIEEXZXFUSW822021-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember5967007LIEEXZXFUSW822021-01-012021-12-31ifrs-full:ReserveOfCashFlowHedgesMember5967007LIEEXZXFUSW822021-12-31ifrs-full:ReserveOfCashFlowHedgesMember5967007LIEEXZXFUSW822021-01-012021-12-31ifrs-full:RetainedEarningsMember5967007LIEEXZXFUSW822021-12-31ifrs-full:RetainedEarningsMember5967007LIEEXZXFUSW822021-01-012021-12-31ifrs-full:EquityAttributableToOwnersOfParentMember5967007LIEEXZXFUSW822021-12-31ifrs-full:EquityAttributableToOwnersOfParentMember5967007LIEEXZXFUSW822021-01-012021-12-31ifrs-full:NoncontrollingInterestsMember5967007LIEEXZXFUSW822021-12-31ifrs-full:NoncontrollingInterestsMemberiso4217:NOKiso4217:NOKxbrli:shares
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.