Annual Report • Apr 14, 2021
Annual Report
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It all started with waterfalls. Arendals Fossekompani (AFK) was established in 1896 to harness the energy in running water. Our skills and competence in this area laid the foundation for things to come. Hydropower is still a part of our DNA and our portfolio, but nowadays we're more recognized as an industrial investor - the owner of international energy and technology companies.
We have in fact worked with clean energy and green technology for more than a hundred years. One ripple effect from our economic success is the building of a modern portfolio of green-tech companies. Arendals Fossekompani is deeply invested in the green transition. We believe the green economy is the road to the future, and we will contri-
bute to the journey.
Our hope and goal for the green-tech companies we develop today, is that they will create positive ripple effects in the future.
Arendals Fossekompani Developing green-tech companies
Ripples
Highlights 2020
Volue was successfully listed on Euronext Growth on 19 October, only seven months after the company was established as a result of a merger of Powel, Wattsight, Markedskraft and Scanmatic.
In November, an extraordinary General Meeting decided to split the AFK share. 1 old share was split into 25 new shares. The decision was made to ensure that the market value of the AFK share is more in line with other shares on the Oslo Stock Exchange, and to increase the liquidity in the share.
+74%
Urban —
Ingunn Ettestøl was appointed the first ESG Director of Arendals Fossekompani. Having been with AFK since 2017, Ettestøl holds a doctoral degree in electrical power from the Norwegian University of Science and Technology. She is a former Director of Strategy and Analysis at Enova and Division Director for Wind Power at Agder Energi.
5.8B — 10.1B
AFK market cap increased from NOK 5.8 billion as of 1 January to NOK 10.1 billion as of 31 December. This reflects an increase in the share price from NOK 106 to NOK 186 during the year.
Building of Bryggebyen, an urban development project in Arendal, is well underway. The first 113 apartments will be completed by the fall of 2021. Bryggebyen comprises plans for 500-700 apartments to be built in the next 10-15 years.
-75%
Kontali Analyse, a world-leading provider of data and analyses of global aquaculture and fisheries, was acquired by Alytic. A plan for rapidly growing Kontali in new markets and geographies has been implemented.
Throughout the year we have all learnt about social distancing, how to wear masks and work from home. We are impressed by how our portfolio companies have handled the situation and how their employees around the world have kept business running during extraordinary times. Your efforts are truly appreciated. Thank you!
HIGH-In November, Alytic was established to invest in data-driven companies with need for transformation and scale. Alytic is headed by Espen Zachariassen, former CEO of Wattsight, a regional company which evolved into a European frontrunner for power market analyses.
An investment in battery technology company Beyonder, located in Stavanger, Norway, was completed in December. Beyonder has developed the next generation sustainable high-power batteries, which are safer and more cost-effective than other batteries.
The average price of electricity (NO2 area) in 2020 was 75% lower than in 2019. 2020 marked a year in which electricity prices were at a historically low level.
Payment of quarterly dividend commenced in the second quarter. AFK had always paid annual dividends, but changed its policy to a more investor friendly quarterly dividend.
| THIS IS AFK | 12 | |
|---|---|---|
| THE HISTORY OF AFK | 14 | |
| 01 | AFK IN THE WORLD | 16 |
| ESG IN AFK | 18 | |
| 04 | AFK GROUP ANNUAL ACCOUNTS & NOTES | 70 |
|---|---|---|
| DECLERATION BY THE MEMBERS OF THE BOARD & CEO | 152 | |
| INDEPENDENT AUDITOR'S REPORT | 154 | |
| CORPORATE GOVERNANCE | 160 | |
| FINANCIAL PERFORMANCE MEASURES | 168 | |
| ALTERNATIVE PERFORMANCE MEASURES | 170 |
| 02 | SHAREHOLDER INFORMATION | 24 |
|---|---|---|
| AFK GROUP | 28 | |
| AFK PARENT | 32 | |
| EXPLAINING THE 2020 ELECTRICITY MARKET | 36 | |
| MANAGEMENT & BOARD OF DIRECTORS | 38 | |
| CEO LETTER | 4 0 | |
| BOARD OF DIRECTORS' REPORT FOR 2020 | 42 |
| VOLUE | 4 8 | |
|---|---|---|
| 03 | TEKNA | 50 |
| EFD INDUCTION | 5 4 | |
| NSSLGLOBAL | 56 | |
| COGEN ENERGIA | 58 | |
| ALY TIC | 6 0 | |
| AFK PROPERTY | 62 | |
| OTHER INVESTMENTS | 6 4 |
| REPORTING – 100 YEARS AGO | 66 |
|---|---|
| THE HISTORY OF AFK | 14 |
|---|---|
| AFK IN THE WORLD | 16 |
| ESG IN AFK | 18 |
About us Arendals Fossekompani is a green-tech investment company, the owner of energy and technology companies which enable the transition to a green economy.
Our portfolio companies have more than 2,100 employees in 26
countries.
Established in 1896 to harness the energy from an everlasting natural resource; water, Arendals Fossekompani is still a proud producer of hydropower, but also an investor in other renewables and associated value chains, including solar power and batteries.
Arendals Fossekompani has been listed on the Oslo Stock Exchange since 1913 and is headquartered in Arendal.
Our vision Arendals Fossekompani shall create lasting value for its stakeholders through long-term and active development of the companies we own.
We invest in and own companies that make energy from renewable sources more usable and accessible, and that contribute to a more sustainable use of resources. Based on our industrial and financial expertise, we also invest in technology and energy companies that
enable the green transition.
Arendals Fossekompani's contributions and mission are summarized in this sentence: Developing green-tech companies.
Our values Collaborative and our partners.
We develop our companies in collaboration with the world around us
Long-term perspective
Based on 125 years of industrial history, we continue to develop our companies in a sustainable and long-term perspective.
Dynamic
We show the ability, energy and motivation to carry out our ambitions.
Responsible
We act in an ethical and responsible manner in all situations. We develop our companies in a sustainable manner.
This is AFK
Arendals Fossekompani was founded on 30 January 1896 to harness the forces in the Arendal watercourse system and transform them into electric power. The company acquired several waterfalls, including Bøylefossen and Flatenfossen. Norwegian industrial entrepreneur Sam Eyde was instrumental in the early years.
Deregulation of the Norwegian electricity market presented new market opportunities. Arendals Fossekompani played an active role and established a subsidiary, Markedskraft, as an independent provider of services in the Nordic and European wholesale electricity market.
The construction of Bøylefoss Power Plant started in 1911, in parallel with the establishment of new industry in Eydehavn. The first electric power from Bøylefoss was delivered to Eydehavn in the summer of 1913. That same year, Arendals Fossekompani was listed on the Oslo Stock Exchange.
The new millennium marked the start of the transformation of Arendals Fossekompani, from a local hydropower producer to an international investment company. Starting in 2004, a series of successful acquisitions of Norwegian and international companies made Arendals Fossekompani the company it is today. Revenues increased from around NOK 250 million in 2004 to NOK 3.7 billion in 2020. Today, hydropower accounts for approximately four percent of revenues.
Growing demand for electricity for industrial purposes, led to the development of Flatenfoss Power Plant in 1927. The original plant was operational until it was replaced in 2009.
Arendals Fossekompani gradually built a substantial financial capacity. At the end of the 1960s, the company changed its mission statement and built a portfolio of financial investments in listed and unlisted companies.
| norway | 585 | poland | 96 | israel | 9 | japan | 4 |
|---|---|---|---|---|---|---|---|
| germany | 221 | france | 86 | malaysia | 8 | russia | 3 |
| india | 193 | usa | 82 | thailand | 7 | south korea | 2 |
| china | 183 | romania | 66 | brazil | 7 | turkey | 1 |
| canada | 148 | denmark | 64 | singapore | 5 | austria | 1 |
| united kingdom | 144 | sweden | 61 | finland | 4 | ||
| spain | 100 | switzerland | 20 | italy | 4 |
employees 971
head office Skien, Norway
countries
India, China, Norway, Germany, USA, Romania, France, United Kingdom, Poland, Sweden, Malaysia, Brazil, Thailand, Japan, Italy, Spain, Austria
employees 176
head office Sherbrooke, Canada
countries Canada, France, China, South Korea
employees 205
head office Surrey, UK
countries United Kingdom, Germany, Denmark, Norway, Poland, Israel, Singapore, USA
employees 624
head office Oslo, Norway
countries Norway, Sweden, Denmark, Finland, Germany, Poland, Switzerland, Turkey.
AFK Hydropower
AFK Property
employees 27
head office Arendal/Froland, Norway
ESG in AFK
125 years later, we remain a proud producer of hydropower. Acting in accordance with nature, is part of our DNA. For us, sustainability is not a megatrend, it is what we are, and what we do. We honor a proud heritage based on the belief that natural resources also belong to future generations.
But Arendals Fossekompani is more than a producer of hydropower. We are the owner of energy and technology companies which enable the transition to a green economy. We seek a sustainable market to support a sustainable world.
At Arendals Fossekompani we value our employees. Our goal is to be a preferred employer with a motivated workforce. We believe that being part of a bigger purpose, working for a more sustainable world, brings more value and motivation to our employees.
ESG is also about turning a profit. By developing sustainable products and services, we ensure long-term value creation for shareholders, employees and society. Our portfolio companies help their customers utilize their resources in a more sustainable way, and provide techno logy, systems and solutions that make energy from renewable sources increasingly accessible and usable.
Arendals Fossekompani established its own sustainability team in 2020. The team is cross-functional with four members, all of whom work together on strategic improvement projects related to sustai nability. The team is headed by the ESG Director, who forms part of the Executive Management Team reporting directly to the Board of Directors of AFK.
Following the materiality analysis, climate risk analysis, and improved governance and reporting structures, all conducted in 2020, several improvements have been achieved. However, the overall target is to integrate ESG in our daily operating model, both for AFK and our port folio companies.
The work we do on compliance and improvement of policies and guidelines, is according to the OECD Guidelines for Multinational Enterprises. The OECD Guidelines are also supported by the invest ment strategy in M&A processes and AFK's Green Bond Framework.
Our 2020 Sustainability Report (separate publication) is inspired by the guidelines of GRI. Sustainability Accounting Standards Board (SASB) was also used in order to establish industry-specific disclosure standards across ESG topics.
A climate-risk analysis was completed inspired by Task-force on Climate-related Financial Disclosures (TCFD).
ESG highlights in 2020
Our long term goal is to integrate sustainability in our daily work processes. This requires continuous improvements in many areas in years to come. Going forward we are committed to measuring our impact, and improving the way we work. This applies in particular to the areas listed below, which were identified as focus areas in a materiality analysis.
| SHAREHOLDER INFORMATION | 24 |
|---|---|
| AFK GROUP | 28 |
| AFK PARENT | 32 |
| EXPLAINING THE 2020 ELECTRICITY MARKET | 36 |
| MANAGEMENT & BOARD OF DIRECTORS | 38 |
| CEO LETTER | 4 0 |
| BOARD OF DIRECTORS' REPORT FOR 2020 | 42 |
Our goal is to ensure that the share price reflects its underlying value by making all price-relevant information available to the market. AFK works to create shareholder value in the form of dividends and share price growth over time. In accordance with the document "Corporate Governance in Arendals Fossekompani" (last revised on 25 March 2021), the company's dividend policy is defined as follows: "AFK's dividend policy is to pay dividends that reflect the company's long-term strategy, financial position and investment capacity. AFK's objective is to pay dividends that will provide shareholders with a competitive return."
In 2020 AFK has paid quarterly dividends amounting to NOK 66 million, corresponding to NOK 1.20 per share. In addition, ordinary dividend for 2019 paid out in 2020, was NOK 123 million, corresponding to NOK 2.24 per share.
Following the share split on 20 November, with each share in the company being split into 25 shares, there are now a total of 55,995,250 ordinary shares in the company. As at 31 December a total of 1,111,200 were treasury shares, which represents 2.0 per cent of the total number of outstanding shares. As at the same date, the company had 2,619 shareholders. AFK's three largest shareholders are Ulfoss Invest AS (26.3%), Havfonn AS (26.0%) and Must Invest AS (25.2%).
The Group's shares consist only of Class A shares, all of which have equal rights. In accordance with Article 11 of the company's Articles of Association, no shareholder may personally or by proxy vote for more than one quarter of the total number of shares.
Due to AFK's hydropower production, the current Norwegian concession legislation stipulates, among other things, that a shareholder who acquires more than 20 per cent of the total number of shares must apply for a concession. The Concession Act requires that the Board of Directors approve such acquisitions. There are a number of other provisions in the concession legislation that may entail that acquisition of the company's shares may have consequences for both the company itself and the other shareholders. Thus, the company has found that it is necessary to have an opportunity to deny the approval of the acquisition of shares. In accordance with Article 7 of the Articles of Association, any acquisition by means of transfer is conditional on the Board's consent. Consent may only be denied if there is a valid reason for doing so.
Arendals Fossekompani ASA is listed on the Oslo Stock Exchange under the ticker code AFK. The company was listed in 1913 and is the second oldest company at Oslo Stock Exchange. The shares are registered in the Norwegian Central Securities Depository with DNB ASA as the account operator and issuer. The securities identification number for the share is ISIN NO 0003572802.
At AFK's Annual General Meeting of 7 May 2020, the Board of Directors was authorized to acquire treasury shares up to a maximum of 7.7 per cent. In accordance with this authorization, the Board of Directors is only permitted to acquire treasury shares at a price ranging from a minimum of NOK 4 and a maximum of NOK 200 per share (when adjusting for the share split on 20 November in which each share was split into 25 shares). This authorization will remain in effect until the Annual General Meeting in 2021.
During the period from 25 February 2020 to 26 November 2020, the company sold 46,075 shares in connection with the company's incentive program.
OPTION SCHEMES
As at 31 December 2020, AFK had no option schemes.
AFK seeks to maintain an open dialogue with shareholders, debt holders, financial analysts and the stock markets in general. The company regularly holds presentations in connection with the publication of the quarterly results.
All of the company's press releases, stock exchange announcements and investor relations information are available on the company's website, www.arendalsfossekompani.no. This also applies to quarterly and annual reports, presentations, the company's Articles of Association and the financial calendar.
NOMINATION COMMITTEE The company's Nomination Committee consists of the following members: Morten Bergesen (Chairman), Simen Flaaten and Christian Must.
The company's Audit Committee consists of the following members: Morten Bergesen (Chairman), Arild Nysæther and Stine Rolstad Brenna.
The Annual General Meeting is held as early in the year as is practically possible after the close of the previous financial year, normally in April or May.
Meeting notices and attendance registration forms are sent to all shareholders with a known address 21 days prior to the General Meeting, and are made available on the company's webpage and through the Oslo Stock Exchange distribution service. The annual report and other enclosures to the meeting notice are made available solely via the company's webpage and the Oslo Stock Exchange distribution service. Shareholders who wish to receive the enclosures by post must contact the company. Shareholders who are unable to attend the general meeting may vote by proxy.
Representatives from the Board of Directors and the auditor attend the General Meeting. The Chief Executive Officer (CEO) and the Chief Financial Officer (CFO) attend on behalf of the management.
The company's total market capitalization was NOK 10.1 billion at the end of 2020. In 2020, 1,959,993 shares in AFK were traded, which corresponds to 3.5 per cent of the company's total number of outstanding shares. The share was traded regularly throughout the year.
| DATE | DIVIDEND (NOK) | CUMULATIVE (NOK) |
|---|---|---|
| 26/05/2011 | 3.20 | 3.20 |
| 24/05/2012 | 2.20 | 5.40 |
| 24/05/2013 | 3.00 | 8.40 |
| 23/05/2014 | 2.40 | 10.80 |
| 12/12/2014 | 10.00 | 20.80 |
| 22/05/2015 | 3.72 | 24.52 |
| 20/05/2016 | 3.84 | 28.36 |
| 18/05/2017 | 3.80 | 32.16 |
| 21/12/2017 | 16.80 | 48.96 |
| 27/04/2018 | 34.81 | 83.77 |
| 26/04/2019 | 2.24 | 86.01 |
| 08/05/2020 | 2.24 | 88.25 |
| 24/08/2020 | 0.56 | 88.81 |
| 17/11/2020 | 0.64 | 89.45 |
| FINANCIAL FIGURES, MNOK | 2020 | 2019 | 2018 |
|---|---|---|---|
| Operating Revenues | 3 673 | 4 496 | 4 319 |
| Operating Profit | 188 | 233 | 232 |
| Operating Margin | 5% | 5% | 5% |
| Earnings before tax (EBT) | 121 | 243 | 247 |
| Operating Cashflow | 222 | 474 | 250 |
| NIBD | -461 | -199 | 98 |
| Equity | 3 856 | 3 319 | 3 172 |
| Equity Ratio | 56% | 54% | 54% |
AFK operates in several different industries and is represented by 2,100 employees in 26 countries through its portfolio companies. The Parent Company's own activities focus on the development of new sustainable business opportunities, follow-up of portfolio companies through long-term active ownership, power generation, property projects and management of financial investments.
2020 IN BRIEF (Figures in parentheses refer to 2019) (270 million).
In 2020, Arendals Fossekompani reported an ordinary profit after tax of NOK 120 million (47 million), of which the AFK shareholders' share of the profit was NOK 65 million (45 million). Earnings before tax was NOK 121 million (243 million). The operating profit amounted to NOK 188 million (233 million). Including currency differences, changes in the value of available-for-sale financial assets, minority interests and other comprehensive income items, the Group's total comprehensive income was NOK -41 million
AFK's financial capacity is solid, with a net positive cash position of NOK 466 million at the end of 2020. The book value of equity was NOK 3,856 million (3,319 million) as of 31 December 2020. The Group's liquidity is sound.
Despite historically low energy prices, AFK delivered a good result and increased earnings after tax from NOK 47 million in 2019 to NOK 120 million in 2020. All the portfolio companies improved earnings during the year. AFK also completed various structural and strategic actions in 2020, including the listing of Volue on Euronext Growth, the establishment of Alytic, the acquisition of Kontali, investment in Beyonder and a split of the AFK share.
Volue and Tekna delivered particularly solid revenue growth when compared year on year. Volue is reporting revenue growth of 12% in 2020 along with a sound order intake throughout the year. Tekna is experiencing increased activity in the market, resulting in good growth in powder sales. There is also growing interest in nano silicon deliveries for future battery technology. As announced in quarterly reports, Tekna and global industrial group Aperam have established a joint venture called ImphyTek Powders. The company specialises in the production and sale of metal powders for 3D printing based on nickel-based alloys. During the fourth quarter ImphyTek Powders established its operational activities, thereby contributing positively to Tekna's results. In financial statements ImphyTek is reported as an associate of Tekna.
Arendals Fossekompani (AFK) is an industrial investment company holding 7 main investments and a portfolio of financial investments. These operations employ 2,100 people in total. AFK has proud traditions in power production and owns and operates two hydropower plants. In addition, AFK operates globally in many forward-looking industries including 3D printing, algo trading, satellite services, battery and solar technology, software and digitalisation, as well as various green energy technologies.
1896
YEAR FOUNDED
26
2,100 EMPLOYEES
COUNTRIES
OWNERSHIP AFK 100%
EMPLOYEES 2,100
COUNTRIES 26
HEADQUARTER ARENDAL, NORWAY CHAIRMAN JON HINDAR
CEO ØRJAN SVANEVIK
Weaker revenues for AFK overall are primarily due to low energy prices in 2020, negatively affecting revenues for Cogen Energia and AFK Hydropower. As communicated in quarterly reports, Cogen Energia terminated a major unprofitable customer rela tionship at the start of the year. In 2019 this contract generated revenue in the order of NOK 600 million.
As a result of high activity levels, all portfolio companies deli vered good profits for the year. In addition, EFD Induction is reporting a record-high order intake in the fourth quarter, driven primarily by deliveries for wind turbine production.
The return on financial investments ended at –18% for the year, corresponding to NOK –162 million, mainly due to the falling price of property shares as a result of the Covid-19 pandemic. The unrealised portion of the return on financial investments is reported in other comprehensive income.
On 19 October AFK announced that Volue AS was to be listed on Euronext Growth (formerly Merkur Market). As part of the listing, AFK realised NOK 520 million from a sell-down of shares in Volue. This is reported as a gain of NOK 440 million in the fourth quarter in the AFK parent company.
On 30 October AFK announced the purchase of 71% of the shares in Kontali Analyse and the establishment of new growth company Alytic. Alytic's purpose is to transform a broad spectrum of data-driven companies in various sectors and form a basis for a new growth area at AFK.
On 7 December AFK reported its participation in a private place ment by Norwegian battery technology company Beyonder. This strengthens AFK's position within the development of the batteries of the future and large industrial storage solutions for renewable power generation.
At an Extraordinary General Meeting on 19 November AFK approved a share split in which each share in the company was split into 25 shares. The share was listed post-split with a new nominal value on 20 November.
The AFK parent company had a positive cash position at the end of the quarter and the company's financial capacity is sound. During the quarter the company's equity was bolstered by NOK 464 million and as at 31 December stands at NOK 3,383 million.
Through its operations Cogen Energia plays a key part in the green shift in the Spanish power market. Rapid development of the market presents new growth opportunities. AFK has started a strategic process to assess how Cogen Energia can be best positioned to take advantage of these opportunities going forward.
On 17 February AFK reported that the company sold 16,940,200 shares in Volue AS, representing 11.8% of the share capital. The price per share was NOK 58.50 for total gross proceeds of NOK 991 million. The shares were sold to a group of six high quality Nordic and international institutional investors.
On 2 March AFK reported that the company has successfully issued NOK 500 million in unsecured green bonds. The bonds have a 7-year tenor and was priced at a fixed coupon of 2.615%. AFK will use the net proceeds to finance green projects as defined in the AFK Green Bond Framework. The Green Bond Framework has received the best possible rating, Dark Green, by Cicero Shades of Green.
On 12 March Arendals Fossekompani sold all its shares in Victo ria Eiendom and Eiendomsspar for a total of more than NOK 800 million.
On 19 March 2021 Volue applied to be transferred from Euro next Growth to the main list of the Oslo Stock Exchange. Volue has conducted an extraordinary general meeting to convert the company into a public limited company (ASA), which involved changing the composition of the company's Board of Directors.
On 22 March 2021 Tekna Holding announced a potential listing on Euronext Growth. After a successful private placement, with books covered within ten minutes, Tekna Holdning was listed on Euronext Growth and trading of the share commenced on 30 March.
On 8 April the Board of Directors decided to propose to the General Meeting on 6 May 2021 to pay an extraordinary cash dividend of NOK 29.20 per share to be paid in May 2021.
In view of market prices for 2021, revenues and operating profit for AFK Hydropower are expected to be considerably better in 2021 than in 2020.
All portfolio companies have high activity levels, with revenues and earnings for the AFK Group in 2021 expected to be equal to or better than results for 2020. However, there is still considera ble uncertainty associated with the Covid-19 pandemic and the future development of energy prices.
30
| FINANCIAL FIGURES, MNOK | 2020 | 2019 | 2018 |
|---|---|---|---|
| Operating Revenues | 70 | 211 | 195 |
| Operating Profit | -55 | 120 | 115 |
| Operating Margin | -79% | 57% | 59% |
| Earnings before tax (EBT) | 502 | 238 | 121 |
| Operating Cashflow | -154 | 94 | 55 |
| NIBD | -400 | -335 | -86 |
| Equity | 3 383 | 3 205 | 2 964 |
| Equity Ratio | 82% | 82% | 81% |
The Parent Company focuses on hydropower production, the development of new sustainable business opportunities, follow-up of portfolio companies through long-term active ownership, power generation, property projects and management of financial
investments.
2020 IN BRIEF (Figures in parentheses refer to 2019) (162 million).
The Parent Company reported revenues of NOK 70 million (211 million) in 2020. EBITDA amounted to NOK -45 million (129 million). The operating profit for the Parent Company was NOK -55 million (120 million), while the ordinary profit after tax was NOK 520 million
AFK's financial position remains solid and the company is net cash positive at year-end. In connection with the listing of Volue on Euronext Growth on 19 October, AFK took a profit in a NOK 520 million sell-down of shares. This is reported as an accounting gain, recognised as financial income of NOK 440 million. As a result, AFK's cash reserves strengthened and as at 31 December amounted to NOK 766 million. In the same period the company's equity strengthened by NOK 464 million and amounted to NOK 3,383
million at year-end.
The company has undrawn credit facilities of NOK 1,780 million at year-end.
On 2 March 2021 AFK reported that the company had successfully issued NOK 500 million in unsecured green bonds. The bonds have a 7-year tenor and was priced at a fixed coupon of 2.615%. AFK will use the net proceeds to finance green projects as defined in the AFK Green Bond Framework. The Green Bond Framework has received the best possible rating, Dark Green, by Cicero Shades of Green.
HYDROPOWER PRODUCTION AFK generates power at two locations in the Arendal watercourse. The Bøylefoss and Flatenfoss power stations produce in excess of 500 GWh annually. The company is required by law to improve the power plants and associated dam facilities, and consequently AFK is planning upgrades to both plants in the coming years. The reconstruction of dams will start once detailed requirements have been agreed with the Norwegian Water Resources and Energy Directorate (NVE).
OWNERSHIP AFK 100%
EMPLOYEES 27
COUNTRIES 1
HEADQUARTER ARENDAL, NORWAY
CHAIRMAN JON HINDAR CEO ØRJAN SVANEVIK Gross power production in 2020 was 482 GWh (543 GWh). Total net revenues from the sale of power amounted to NOK 60 million (206 million), of which the sale of spot power totalled NOK 56.6 million (203 million). The average electricity price on the spot market (Arendal) closed in 2020 at 9.8 øre/kWh (38.7), while the company achieved an average electricity price of 11.7 øre/kWh (37.4).
The power plants have operated without any significant accidents or injuries. Production in 2020 has been lower than the yearly average, mainly due to low power prices during the year. Electricity prices rose towards the end of the year due to somewhat colder weather and the associated increase in power consumption, as well as increased access to transfer capacity abroad.
Normal maintenance work has been carried out on the power plants. Costs expensed in connection with maintenance work amounted to NOK 4 million (8 million) in 2020. During the year audits and other projects requiring external access to the power plants were deferred due to Covid-19, as an infection control measure. Essential audits and access took place in accordance with established infection control procedures.
As at 31 December the company's financial investment portfolio had a total value of NOK 735 million. The portfolio consists primarily of shareholdings in the companies Victoria Eiendom and Eiendomsspar. The year-to-date return amounts to –18%, corresponding to NOK –162 million, due to a drop in share prices following the outbreak of the Covid-19 pandemic. The unrealised portion of the return on the financial investments is reported in other comprehensive income.
In view of the market's estimated energy price trend for 2021, revenues and operating profit from the hydropower production are expected to be considerably better in 2021 than in 2020. Actual energy prices will however depend on many factors, including oil and gas prices, weather conditions, temperatures and more.
35
Electricity prices dropped by a staggering 76% from 2019 to 2020. In what became a perfect market storm, a series of unusual events simultaneously reduced demand and increased supply of electricity.
The Covid-19 pandemic affected the Norwegian exports of electricity, as European industries experienced a sudden drop in demand. Domestically, the winter, relatively warm, resulted in low consumption, but also record-high snow accumulation in the mountains.
Loss of interconnector capacity to Sweden, Denmark and The Netherlands resulted in a surplus of electricity in Norway.
Extreme precipitation during the summer and fall of 2020 caused an exceedingly high supply of hydroelectric energy, which in turn caused loss of water and low prices.
In the future, similar situations can largely be avoided due to several key changes in the infrastructure. Norway is directly connected to the German power market and will, by the end of 2021, also have the new UK interconnector available. Increased connectivity will prevent oversupply of electricity and ensure higher levels of demand.
Demand domestically is also expected to rise due to the building of more data storage centers and battery factories, and the electrification of the oil and gas and transport sectors.
Management & BoD
Jon Hindar Chairman
Didrik Vigsnæs Board member
Kristine Landmark Board member
Stine Rolstad Brenna Board member
Ørjan Svanevik CEO
Lars Peder Fensli CFO
Torkil S. Mogstad Executive Vice President
Morten Henriksen Executive Vice President
Ingunn Ettestøl ESG Director
As of today, Arendals Fossekompani has a broad approach to sustainability, with major investments in the production of hydropower and solar power, management of renewable energy, battery technology, optimisation of resources and additive manufacturing.
In a busy 2020, Arendals Fossekompani completed various structural and strategic actions, including the creation of Volue and listing on Euronext Growth, the establishment of Alytic, the acquisition of Kontali, an investment in Beyonder, a divestment of Scanmatic Elektro and a split of the AFK share. We focused on the health and safety of our employees and partners, and also on keeping our obligations to our customers, despite the Covid-19 pandemic.
The Group's most important task is to exercise good corporate governance of its portfolio companies, and to continue to create lasting value for shareholders, customers, employees and society at large.
In hydropower, Arendals Fossekompani has a proud history extending back more than a century. Every year our power plants produce enough renewable energy to cover the consumption of 25,000 households.
The portfolio companies of Arendals Fossekompani have approximately 2,100 employees in 26 countries. Our vision is to create long-term value through the growth and development of the businesses in which we are involved.
The Group has a decentralised management model. The management and boards of our portfolio companies have the main responsibility for shaping the development of their companies. The Group is always represented on the boards and contributes with strategic direction, financial strength, a genuine interest in their businesses, and a network that strengthens the position of both the Group and the companies.
Our portfolio of companies has a clear green profile and contributes in several ways to the UN Sustainable Development Goals. To reduce negative impact on society, the Group has identified SDG 7: Affordable and Clean Energy, SDG 9: Industry, Innovation and Infrastructure, and SDG 12: Responsible Consumption and Production, as the goals to which our companies can make a difference.
Sustainability and corporate social responsibility are important drivers of future value creation, in the form of increased access to talent, increased access to capital and increased interest in our share.
Today, Arendals Fossekompani has a strong organisation with great and dedicated people, and also a large financial capacity. The outlook for our companies is good, and we have identified clear opportunities to strengthen and build our position in selected segments and markets.
The major uncertainty is of course the Covid-19 pandemic. Throughout the year, we have implemented measures to safeguard the health of our employees, business partners and the community around us. These strong efforts will continue in 2021.
Based on a century of renewable power production, strong expertise and substantial financial capacity, Arendals Fossekompani is well positioned to contribute to a greener tomorrow.
Ørjan Svanevik CEO
ANNUAL REPORT 2020
(Figures in parentheses refer to 2019)
The AFK Parent Company focuses on the development of new sustainable business opportunities, follow-up of portfolio companies through long-term active ownership, power generation, property projects and management of financial investments. The company's registered address is in the Municipality of Froland, while the corporate functions for the Group are located in Arendal.
Arendals Fossekompani (AFK) reported total operating revenues for the Group of NOK 3,673 million (4,496 million) in 2020. Consolidated operating profit was NOK 188 million (233 million). Profit after tax was NOK 120 million (47 million).
The Group's equity amounted NOK 3,856 million (3,319 million) as at 31 December 2020. The equity ratio was 56 per cent compared with 54 per cent at the end of 2019.
The Parent Company reported operating revenues of NOK 70 million (211 million) for the year. Operating profit was NOK -55 million (120 million). Profit after tax was NOK 520 million (162 million).
At year-end, the Parent Company's cash reserves amounted to NOK 766 million and the equity amounted to NOK 3,383 million.
VOLUE is an international provider of business-critical software and technology services for power generation, power transmission and distribution, and infrastructure. The business reported revenues of NOK 892 million (798 million) in 2020. Ordinary profit after tax was NOK 63 million (25 million).
TEKNA is a world-leading provider of advanced materials for 3D printing in the aero space, medical and automotive sectors and is well positioned in the growing market for advanced nanomaterials within the global electronics and batteries industries. The business reported revenues of NOK 183 million (142 million) in 2020. Ordinary profit after tax was NOK -51 million (-52 million).
EFD INDUCTION delivers advanced green power technology based on induction technology throughout the world. The business reported revenues of NOK 1,150 million (1,170 million) in 2020. Ordinary profit after tax was NOK 19 million (-48 million).
solutions in a global market. The business reported revenues of NOK 898 million (894 million) in 2020. Ordinary profit after tax was NOK 125 million (119 million).
COGEN ENERGIA builds and operates combined heat and power (cogeneration) plants that contribute to higher energy efficiency, reduced CO2 emissions and increa sed competitiveness. The business reported revenues of NOK 516 million (1,272 million) in 2020. Ordinary profit after tax was NOK 16 million (-2 million).
ALYTIC invests in data-driven companies with a clear potential for scaling up the busi ness through digital transformation. The company was established on 30 October 2020.
AFK PROPERTY comprises all property related companies and property investments.
REVIEW OF THE ANNUAL FINANCIAL STATEMENTS In the opinion of the Board of Directors, the annual financial statements provide a true and fair view of the Company's and the Group's position at the end of the year. There are no material uncertainties associated with the annual financial statements, and there are no other extraordinary circumstances that have affected the financial statements. The Board of Directors confirms that the accounts have been prepared based on the assumption that AFK is a going concern and that this assumption continues to apply.
BOARD OF DIRECTORS At the Annual General Meeting in May 2020, Didrik Vigsnæs, Kristine Landmark and Rikke Reinemo were re-elected as Board Members for a term of two years. At an Extra ordinary General Meeting in September, Rikke Reinemo left the Board and Stine Rolstad was elected as a new Board Member.
NATURAL ENVIRONMENT
At the end of the year, the Parent Company had 26 employees. Four of these employ ees were women. The employment situation is marked by long-term relationships and stability. The company aims to improve the balance between the genders. The Board currently consists of three women and four men. The working environment at AFK is considered good. The Parent Company has a separate committee for dealing with issues related to health, environment and safety. This committee has representatives for employees and corporate management.
Sickness absence in the Parent Company amounted to 302 days, which corresponds to 5.1 per cent of the total working hours. Non-work-related long-term sickness absence for four employees amounted to 242 days. Excluding this, sickness absence was 1.0 per cent. In 2020, there were no accidents or personal injuries of significance, and no material damage of significance.
• Sickness absence at EFD INDUCTION was 2.6% (3.0%) in 2020. There was a total of 133 (251) days of absence due to work-related injuries.
• Sickness absence at COGEN ENERGIA was 2.8% (1.5%) in 2020. There was a total of 119 (10) days of absence due to work-related injuries.
• Sickness absence at VOLUE was 2.0% (n/a) in 2020. There was a total of 0 (n/a) days of absence due to work-related injuries.
• Sickness absence at NSSLGLOBAL was 1.0% (2.0%) in 2020. There was a total of 0 (8) days of absence due to work-related injuries.
• Sickness absence at TEKNA was 2.4% (2.7%) in 2020. There was a total of 0 (96) days of absence due to work-related injuries.
AFK's portfolio companies have health, safety and environment committees and other collaborative bodies in accordance with national legislation.
The Parent Company's operations have only limited negative impact on the natural environment in the form of emissions to water and air. However, the company makes a positive environmental contribution through the production of renewable hydropower.
Operations at AFK's other businesses also entail little risk of pollution of the natural environment. To the extent that such a risk exists, measures have been implemented in accordance with national legislation and guidelines to prevent any negative environmental impact. In 2020 we started to estimate our greenhouse gas emissions, and we have performed a climate risk assessment of the portfolio.
AFK considers it important to promote equality in all areas and works to prevent discrimination on the grounds of ethnicity, religion or disability.
Capitalised and expensed research and development costs in AFK's businesses totaled NOK 192.4 million (180 million) in 2020.
AFK has prepared a separate report in accordance with Section 3.3 of the Norwegian Accounting Act regarding corporate social responsibility. The "Sustainability Report 2020" is available on the company's website.
The report elaborates on AFK's efforts and guidelines in the areas of environment, social issues, and governance. In 2020 a materiality analysis has been conducted for all our portfolio companies and KPIs and targets for improvements are aligned across the portfolio.
AFK sets high ethical standards, and communication with the outside world is to be open, clear and honest. The company is responsible for ensuring safe and good workplaces in the local communities where we are present. AFK seeks to create value for society, customers, employees and owners. For many years, the Parent Company has based its activities on the utilisation of a local natural resource, and therefore has a strong wish to contribute to value creation and social development in the Arendal region. The same applies to our portfolio companies in their local communities. The company supports Arendalsuka, an annual national event for politics and business, and the Canal Street jazz and blues festival, in addition to various initiatives for children and young people within sports and culture.
Arendals Fossekompani has prepared the financial statements for the Parent Company and the Group in accordance with the principles contained in the International Financial Reporting Standards (IFRS) as adopted by the European Union.
Following the share split on 20 November, with each share in the company being split into 25 shares, there are now a total of 55,995,250 shares in the company. As at 31 December a total of 1,111,200 were treasury shares, which represents 2.0 per cent of the total number of outstanding shares. A total of 1,959,993 (751,475) shares were traded during the year, which represents 3.5 per cent of the total number of outstanding shares. The Board of Directors will propose that the General Meeting renews the Board's authorisation to acquire up to 7.93% of the company's own shares with a total nominal value of NOK 17,769,000. The minimum and maximum amounts that may be paid per share shall be NOK 10 and NOK 2,000 respectively.
The share price at the start of the year was NOK 105, compared with NOK 184 at the
end of the year.
FINANCIAL STANDING for future growth.
The Parent Company's and Group's financial standing is good. The Board of Directors assumes that the assets of the Parent Company and Group provide a good foundation
The ongoing Covid-19 pandemic creates considerable uncertainty for the global economy in 2021. The Board of Directors and executive management of the AFK companies have in 2020 taken strong measures to safeguard employees, partners and customers of the AFK Group companies. These measures continue to apply in 2021.
The Group is exposed to foreign exchange risk, credit risk, market risk and liquidity risk from its involvement in and use of financial instruments. These circumstances are described in greater detail in Note 16 to the accounts.
AFK announces dividends on a quarterly basis. The Board of Directors approves the quarterly dividends based on an authorization from the General Meeting. When deciding the quarterly dividends, the Board of Directors takes into consideration expected cash flow, capital expenditure plans, financing requirements and appropriate
financial flexibility.
In 2020 AFK paid quarterly dividends amounting to NOK 66 million. In addition, ordinary dividends for 2019 paid out in 2020 was NOK 123 million.
AFK's net profit for 2020 amounted to NOK 520,1 million. The Board of Directors proposes that the net profit is transferred to other equity.
Froland, 26 March 2020
Jon Hindar Board Chairman
Morten Bergesen
Deputy Chairman
Didrik Vigsnæs Arild Nysæther
Heidi Marie Petersen Kristine Landmark Stine Rolstad Brenna Ørjan Svanevik
CEO
44 45
| VOLUE | 4 8 |
|---|---|
| TEKNA | 50 |
| EFD INDUCTION | 5 4 |
| NSSLGLOBAL | 56 |
| COGEN ENERGIA | 58 |
| ALY TIC | 6 0 |
| AFK PROPERTY | 62 |
| OTHER INVESTMENTS | 6 4 |
As one of Norway's leading software companies, Volue provides critical services to infrastructure that underpin the functioning of our societies, paving the way for a clean, flexible, reliable and profitable energy future.
(Figures in parentheses refer to 2019)
Volue reported revenues of NOK 892 million (798 million) in 2020, following growth across segments and a successful European expansion. EBITDA amounted to NOK 148 million (100 million), representing a 17% margin (13%), and an adjusted EBITDA of NOK 197 million (134). The operating profit was NOK 82 million (40 million), while the ordinary profit for continued operations was NOK 63 million (25 million).
2020 was another strong year for Volue, marked by solid results, record-high EBITDA margins and continued build-up of a highly sticky customer base. All three of Volue's business segments continued to report good results, with a total of NOK 572 million in recurring revenues in 2020, representing 64% of overall revenues. Hence, Volue is progressing steadily towards the 2025 target of NOK 2 billion in revenues of which 80% will be recurring.
Volue's initial public offering on Euronext Growth marked an important milestone in 2020, following the integration of Markedskraft, Wattsight, Powel and Scanmatic into one entity.
The listing of Volue represented an important step in Volue's growth strategy. The company sees a unique opportunity to take a leading position in the shift from fossil to renewable energy production. Volue has big ambitions and wants to use the capital market to accelerate its growth and play a part in the consolidation of the industry.
Volue has an ambitious M&A strategy and will take a leadership position in a fragmented industry. The acquisition of Likron GmbH at the end of the year epitomises the type of accretive transactions that will play a central role in Volue's growth strategy.
Likron is a leading service provider in algorithmic intraday energy trading on the European Power Exchange (EPEX) and Nord Pool. With its head office in Munich, Germany, the company will function as Volue's centre of excellence for energy market trading solutions.
The acquisition of Likron strengthens Volue's offering in software for power trading in Europe. The Likron team pioneered algorithmic trading on the European Power Exchange, and the products and services it offers complement Volue's product portfolio perfectly. By combining all companies, Volue aims to be at the technological forefront in a market that is experiencing both radical change and strong growth.
Volue has a solid position for profitable growth and expansion, empowered by the following enablers:
Volue has expressed an ambition of being a NOK 2 billion company within 2025, with 15% annual organic revenue growth, SaaS revenues increasing to 50%, recurring revenues towards 80% and an adjusted EBITDA margin towards 30%. Short term, the company has outlined the following priorities:
Volue delivered profitable growth despite the uncertain conditions in the market caused by Covid-19. The market outlook remains good for all business areas due to an ever-increasing need for new digital solutions in the industry verticals in which Volue operates. Volue provides products and services for critical infrastructure, involving solutions that must be operational 24 hours a day, which presents solid opportunities for profitable growth going forward.
75.7%
624
8
| HEADQUARTER | |
|---|---|
| OSLO, NORWAY | |
| OWNERSHIP AFK |
CHAIRMAN ØRJAN SVANEVIK CEO TROND STRAUME Serving more than 2,000 customers in 44 countries, Volue is a global supplier of technology that enables the transition to sustainable energy. With 50 years of green technology expertise, Volue offers software solutions, systems and market insight that optimise production, trading, distribution and consumption of energy, as well as infrastructure and construction projects.
| FINANCIAL FIGURES, MNOK | 2020 | 2019 | 2018 |
|---|---|---|---|
| Operating Revenues | 892 | 798 | 818 |
| Operating Profit | 82 | 40 | -12 |
| Operating Margin | 9% | 5% | -1% |
| Earnings before tax (EBT) | 73 | 34 | -15 |
| Operating Cashflow | 190 | 190 | 48 |
| NIBD | -432 | -184 | -86 |
| Equity | 743 | 362 | 375 |
| Equity Ratio | 50% | 34% | 35% |
Tekna is a world-leading provider of advanced materials for 3D printing in the aerospace, medical and automotive sectors and is well positioned in the growing market for advanced nanomaterials within the global electronics and batteries industries.
Tekna's products make it possible to design complex metal parts that are lighter, more efficient and more environmentally friendly than conventionally manufactured parts. Tekna also manufactures machines for the production of spherical microand nanoparticles of various metals and ceramics, based on the use of plasma generated by electrical induction.
Through active collaboration with a series of global players, Tekna is expanding the applicability of its plasma technology, used to pulverise various materials, into new areas. It is also establishing industrial ventures with blue-chip customers around the world that apply the company's unique knowledge and related IP-protected technology.
Tekna is headquartered in Canada, with subsidiaries in France and China.
(Figures in parentheses refer to 2019)
Tekna reported revenues of NOK 183 million (142 million) in 2020. EBITDA amounted to NOK 10 million (-24 million). The operating profit was NOK -24 million (-57 million), while the ordinary profit after tax was NOK -51 million (-52 million).
2020 was marked by record-high order books and the development of a new battery product.
The company's annual revenue growth was driven by solid sales performance for both powders and system solutions. Sales of powders were up 20% year-on-year, despite the significant effect Covid-19 had on the industries Tekna serves. Results were positive in all geographic areas.
Tekna goes into 2021 with an order book at a record high, having already secured the sale of more than half of its annual production capacity.
The subsidiary Tekna Advanced Materials (TAM), which produces industrial titanium and other powders for 3D printing for a wide range of leading producers in the medical, aerospace, defence and automotive sectors, has seen a sharp rise in its customer base and the share of repeat deliveries. In July 2020, Tekna became the first worldwide supplier qualified by Boeing for additive manufacturing powders - Boeing Material Specification (BMS) Titanium alloy powders and BMS Aluminum alloy powders. In October 2020, Tekna announced a collaboration with the Université du Québec à Trois-Rivières to develop an antibacterial and antiviral fabric treatment based on copper nanopowder, manufactured with Tekna's plasma technology. Furthermore, Tekna will bring its cutting-edge expertise to develop copper-based antiviral solutions and related products against Covid-19. In order to meet growing demand for the wide array of industry segments which can apply Tekna's powders, the company is planning on expanding capacity.
In parallel with scaling up powder production for 3D printing, Tekna has produced new products within segments such as printed electronics, batteries and hypersonic applications.
In the batteries segment, Tekna's fully-developed product has attracted considerable interest in the market and the company is in dialogue with a number of leading global players in battery production and/or suppliers of materials for such production. The aim is to establish supplier contracts and/or partnership undertakings in 2021 as a basis for scaling production.
In the coming year, Tekna will work continuously to strengthen its market position by developing and commercialising new products, and entering into strategic agreements with the leading players in commodities and the production of advanced products. These collaboration agreements will be important to further scale the business.
Tekna's growth in revenues and operating profit are forecast to accelerate in 2021.
As a global leader in the industrial use of plasma technology, with over 200 customers worldwide and a proven track-record of scalability with over 70% recurring sales, Tekna is well positioned to take a significant share of the growing market for 3D printing through organic growth and strategic alliances.
The company was listed on Euronext Growth in March 2021.
| FINANCIAL FIGURES, MNOK | 2020 | 2019 | 2018 |
|---|---|---|---|
| Operating Revenues | 183 | 142 | 144 |
| Operating Profit | -24 | -57 | -34 |
| Operating Margin | - | - | - |
| Earnings before tax (EBT) | -48 | -65 | -41 |
| Operating Cashflow | 2 | -51 | -30 |
| NIBD | 150 | 237 | 153 |
| Equity | 128 | 43 | 41 |
| Equity Ratio | 36% | 13% | 16% |
100%
176
4
HEADQUARTER SHERBROOKE, CANADA
CHAIRMAN MORTEN HENRIKSEN CEO LUC DIONNE
Arendals Fossekompani acquired Tekna in 2013. At the time, the company was supplying plasma machinery to universities and research institutions alongside participation in long-term research collaborations with large industrial customers. Today the company has a strong commercial focus and produces ever-increasing volumes of powders for sale to a range of industrial customers – not least in the industries mentioned above.
In the batteries segment Tekna has developed a very pure silicon nanopowder with advantageous properties for admixtures in, and eventually replacement of, graphite anodes that are found in standard lithium-ion batteries. Full replacement of graphite with silicon could multiply the energy capacity of batteries many times over – thereby revolutionising electric vehicle batteries, for example, to provide extreme range. Tekna's fully developed product has attracted considerable interest in the market.
The market for 3D printing is in a phase of strong growth. More and more industries are starting to use 3D printing – including the automotive industry, driven particularly by new electric car models. Management consultancy McKinsey & Company and investment company ARK estimate that 3D printing will grow by 60% per year in the coming years.
The 3D printing process involves building objects layer by layer using various materials in powder form, in contrast to traditional production where objects are produced by removing parts of a larger piece of material. The advantages of 3D printing are a faster production time, lower costs and less waste, as well as the opportunity to design completely new structures.
EFD Induction designs, builds, installs and maintains a complete range of environmentally friendly induction heating equipment. The company has operations in America, Europe and Asia, and has performed more than 20,000 installations related to a broad range of industrial applications in over 80 countries. Many of the world's leading manufacturing and service companies thus enjoy the benefits of induction technology.
EFD Induction's induction heating solutions can be used professionally for almost any industrial application that requires heat. The company's hardening machines are widely used in the windmill and automotive industry, while equipment from EFD Induction is otherwise commonly found in a number of other industries, such as turbines, pipe production, the electrotechnical industry, the cable industry and mechanical engineering.
Equipment from EFD Induction is supported by a global network of factories, workshops and offices. In addition to manufacturing facilities in Germany, Norway, France, China, India, Poland, Romania and the USA, the company also has sales and service operations in Austria, Brazil, Denmark, Finland, Italy, Japan, Malaysia, Mexico, Russia, South Korea, Spain, Sweden, Thailand and the United Kingdom.
(Figures in parentheses refer to 2019)
EFD Induction reported revenues of NOK 1,150 million (1,170 million) in 2020. EBITDA amounted to NOK 109 million (55 million). The operating profit was NOK 41 million (-14 million), while the ordinary 2020 profit after tax was NOK 19 million (-48 million).
EFD Induction delivered earnings on par with 2019. The first half of 2020 was negatively impacted by a lower activity level due to Covid-19-related implications in Asia and Europe. However, revenues grew during a busy fourth quarter, in which EFD Induction secured a record high order intake, driven primarily by deliveries for wind turbine production.
The operating result improved significantly in 2020 due to implemented restructuring processes, and thereby a reduced fixed cost base, compared to the previous year. Throughout 2020, the company has continued implementing comprehensive restructuring processes, this has resulted in one-off cost effects of NOK 44 million for the year.
EFD Induction has a focused R&D pipeline to drive improved profitability and growth as well as enhancing the ability to offer service programs with recurring revenue. The company carries out development projects both in cooperation with customers and on its own. Most of the development costs are expensed. In 2020, these costs amounted to NOK 36.6 million, whilst capitalization of R&D projects amounted to NOK 9.0 million.
Order intake within the automotive industry, an important industry for EFD Induction, remains weak in Europe. There is great uncertainty and the weak market situation within this industry is expected to continue in 2021.
EFD Induction activities are financed through loans denominated in multiple currencies. Foreign exchange risk is mitigated by currency hedging of customer orders and expected customer orders.
Adjusted for an extraordinary income from property sale in 2020, revenues and operating profit for EFD Induction in 2021 are expected to be at the same level as in 2020.
| FINANCIAL FIGURES, MNOK | 2020 | 2019 | 2018 |
|---|---|---|---|
| Operating Revenues | 1 150 | 1 170 | 1 250 |
| Operating Profit | 41 | -14 | 108 |
| Operating Margin | 4% | -1% | 9% |
| Earnings before tax (EBT) | 30 | -23 | 102 |
| Operating Cashflow | 68 | 79 | 67 |
| NIBD | 52 | 81 | 65 |
| Equity | 374 | 353 | 426 |
| Equity Ratio | 36% | 36% | 43% |
98.7%
971
17
HEADQUARTER SKIEN, NORWAY CHAIRMAN ØRJAN SVANEVIK CEO BJØRN E. PETERSEN
NSSLGIobaI is a leading independent provider of satellite communications and IT solutions in a global market.
NSSLGlobal is committed to delivering high-quality voice and data services to customers anywhere in the world. NSSLGlobal activities are divided into the areas Airtime, Projects, Hardware and Service. The revenue model is to a large degree based on multi-year subscription contracts, thereby securing a significant degree of recurring revenues. The company's main customers are found in the maritime segment, in the military and government sector, and in the energy sector.
NSSLGlobal has more than 50 years of experience in the maritime and military mobility markets. The company provides satellite solutions in partnership with some of the largest satellite operators, including Inmarsat, Iridium, Thuraya, Telesat, Eutelsat, JCSAT and Intelsat. Customers are supported locally via global sales and service offices, 24/7 network operations centres, teleports and local partners.
NSSLGlobal is headquartered in the United Kingdom, with offices in Germany, Denmark, Norway, Sweden, Poland, Netherlands, Singapore, USA, Israel and Japan.
(Figures in parentheses refer to 2019)
NSSLGlobal reported revenues of NOK 898 million (894 million) in 2020. EBITDA amounted to NOK 214 million (230 million). The operating profit was NOK 162 million (162 million), while the ordinary profit after tax was NOK 125 million (119 million).
The company started the year strongly by extending contracts with two of its largest military customers, including a 4-year contract for satellite communications with the German Armed Forces. NSSLGlobal also secured an important 3-year technology development contract with the European Space Agency (ESA).
NSSLGlobal increased both its technology base and geographic reach by hiring an engineering team of 10 people available after the bankruptcy of the Dutch and German operations of Pro Nautas. This addition will strengthen the development of new products and services to the maritime segment.
At the end of the year, NSSLGlobal became an authorized launch partner for Iridium's new Global Distress and Safety System for maritime use.
Sales activities were scaled down due to travel restrictions, but the Covid-19-pandemic did not affect revenues and the level of customer activities.
NSSLGlobal expects revenues to be in line with 2020, while operating profit is expected to weaken due to a contract in 2020 that had especially good margins.
| FINANCIAL FIGURES, MNOK | 2020 | 2019 | 2018 |
|---|---|---|---|
| Operating Revenues | 898 | 894 | 758 |
| Operating Profit | 162 | 162 | 110 |
| Operating Margin | 18% | 18% | 15% |
| Earnings before tax (EBT) | 154 | 162 | 110 |
| Operating Cashflow | 166 | 199 | 132 |
| NIBD | -274 | -267 | -201 |
| Equity | 424 | 417 | 383 |
| Equity Ratio | 56% | 52% | 61% |
80%
205
8
| HEADQUARTER | |
|---|---|
| SURREY, UK |
CHAIRMAN ARILD NYSÆTHER CEO SALLY-ANNE RAY
Cogen Energia builds and operates combined heat and power (cogeneration) plants that contribute to higher energy efficiency, reduced CO2 emissions and increased competitiveness.
Cogen Energia's cogeneration plants use surplus heat from gas-based electricity production to generate steam for industrial partners located nearby. This results in higher energy efficiency and reduced CO2 emissions, as well as improved competitiveness for the industrial partners.
Since its establishment in 1999, Cogen Energia has evolved into a supplier of cogeneration solutions adapted to industry needs. In addition to operating its own cogeneration plants, Cogen Energia is a provider of services to third party plants within areas such as operations management, maintenance and service, as well as energy management and optimization.
The company's head office is in Madrid, Spain.
(Figures in parentheses refer to 2019).
Cogen Energia reported revenues of NOK 516 million (1,272 million) in 2020. EBITDA amounted to NOK 46 million (15 million). The operating profit was NOK 27 million (-4 million), while the ordinary profit after tax was NOK 16 million (-2 million).
Lower revenues compared with the previous year are mainly attributed to the termination of a contract with a large unprofitable customer. The contract represented an annual turnover of approximately NOK 600 million. Furthermore, the year was characterized by low pool prices for produced power, which again led to fewer operating hours and lower revenues per plant. During the period with low power prices, Cogen Energia was able to speed up already planned maintenance work.
The price of gas is the company's most significant cost factor. In a challenging year, Cogen Energia was able to negotiate lower gas prices from its suppliers, which contributed positively to the operating profits in 2020.
The company receives public subsidies from the Spanish Government in the form of a regulated production bonus per MWh of power generated. During 2020 the hourly power prices were consistently lower than the reference price which the subsidy scheme is based on. This will however be compensated by the authorities in years to come, which is why Cogen Energia was able to book a positive provision which contributed to the 2020 profits.
Cogen Energia's industrial customers operate within segments such as pharmaceuticals, cardboard packaging, chemicals, food and alcohol. These segments were almost unaffected by the Covid-19-pandemic, and Cogen Energia did not experience noticeable loss of revenues from the sale of steam. In addition, the company qualified for Covid-19-driven government guaranteed loans, thereby securing liquidity throughout the year.
Except closing for scheduled maintenance, the cogeneration plants did not experience production losses in 2020.
In summary, despite reduced revenues, Cogen was able to improve EBITDA by negotiating lower gas prices and by scheduling plant maintenance to periods with low power prices. In addition, the governmental subsidy regime compensated for power prices being below the defined reference price.
For Cogen Energia, revenues and operating profit in 2021 are expected to be on par with 2020.
| FINANCIAL FIGURES, MNOK | 2020 | 2019 | 2018 |
|---|---|---|---|
| Operating Revenues | 516 | 1 272 | 1 181 |
| Operating Profit | 27 | -4 | 25 |
| Operating Margin | 5% | 0% | 2% |
| Earnings before tax (EBT) | 21 | 9 | 20 |
| Operating Cashflow | 123 | 75 | 4 |
| NIBD | 120 | 124 | 149 |
| Equity | 175 | 181 | 147 |
| Equity Ratio | 29% | 30% | 22% |
100%
98
1
HEADQUARTER MADRID, SPAIN
CHAIRMAN MORTEN BERGESEN CEO ANTONIO QUILEZ
Alytic invests in data-driven companies with a clear potential for scaling up the business through digital transformation. Investments will typically be in companies with unique domain knowledge and expertise, and with a clear pathway for growth.
Alytic offers resources with the right know-how and skillset for developing a roadmap for digital transformation, scale and recurring revenues. The investment team includes executives with extensive experience from digital transformation and development of new business models.
Alytic powers the digital transformation required to enhance product offerings, to reach new markets, and to ensure recurring revenues from a profitable customer base.
Initially wholly owned by Arendals Fossekompani, Alytic was established on 30 October 2020. Capitalizing on the experience from transforming similar businesses, Alytic will serve as a new growth arena for AFK.
The first company in the Alytic portfolio is Kontali. Founded in Kristiansund, Norway in 1987, Kontali has served as the leading knowledge-based consultancy and data provider for the Norwegian fish farming industry, collecting production data, establishing the first production and market simulation models, and developing the salmon database.
Today, Kontali is widely regarded as a leading competence center on aquaculture and fisheries with a strong global presence systemizing the world of fisheries and aquaculture. In a global and increasingly data-savvy market, it is vital that Kontali accelerates the technology shift to capitalize on the expertise within the company.
Espen Zachariassen serves as CEO of Alytic. He is the former CEO of Wattsight, now part of Volue.
2021 will be a year of building the company, with a focus on establishing an organization, further developing the investment strategy, identifying potential investments, and also building a stronger Kontali and further developing the aquaculture vertical.
Alytic has already recruited key personnel. Sigve Litsheim is the new VP Business Development, Technology and Haakon Austad is the new VP Business Development, Analytics. Alytic is now staffed with the necessary technology expertise to understand and support the companies in which it chooses to invest.
In a combination of developing existing and establishing new verticals, it is expected that Alytic will make 2-4 investments during the year.
100%
27
2
HEADQUARTER ARENDAL, NORWAY
CHAIRMAN MORTEN HENRIKSEN CEO ESPEN ZACHARIASSEN
AFK Property comprises all property related companies and property investments.
The by far largest company in the portfolio is Vindholmen AS, which is transforming an old shipyard area into a new urban residential/commercial zone right outside Arendal under the new name Bryggebyen. The transformation will take 10-15 years to complete and will create around 500-700 residential units when finished. The build process is on track and apartment sales have been healthy despite a year marked by Covid-19.
The first construction phase of 82 apartments booked sales representing 65 % of full value by year-end 2020, and due to popular demand, a second construction phase with 31 additional apartments was launched in September. A total of 113 apartments will be completed by autumn 2021.
AFK Property is the majority owner of this property which comprises an airport as well as an area of 200,000 sqm. The main user of the airport facility is OSM Aviation Academy, which runs a pilot school at the premises. Future plans include establishing a center for drones as well as a hub for electrified aviation.
Gullknapp is located about 15 km north of Arendal. Due to the size of the property, its vicinity to the E18 highway and Arendal Port, and near access to the power grid of both DSO and TSO, it has a huge potential as a future site for battery production, data center and other power-intensive activities and industry. Power levels of several 100 MW are available from the nearby grid.
The commercial property Bedriftsveien 17 has been part of AFK since 2015. The 3,500 sqm building has been completely refurbished and is now fully let to Scanmatic AS on a 25-year bare-house agreement.
Bedriftsveien 17 is located in the middle of the emerging commercial area Krøgenes, 3 km east of down-town Arendal. The area has grown in attractiveness with a new feed-in road to the new E18 highway recently completed.
development.
| Beyonder | AFK was among the investors in a share issue of NOK 125 million in the Norwegian battery technology company Beyonder. |
|---|---|
| Beyonder has developed the next generation sustainable high-power batteries, which are safer and more cost-effective than other batteries. The technology has been developed using a patented process in which sawdust is used to produce activated carbon, resulting in the world's first sustainable battery cell technology. |
|
| Beyonder can offer significantly more environmentally friendly and sustainable batteries compared to conventional methods by using silicon and wood chips, as well as produ cing the batteries with clean hydropower. |
|
| AFK Board Member: Morten Henriksen AFK ownership: 3.9% |
|
| NorSun | Norsun is a Norwegian solar energy company that manufactures and markets high performance mono-crystalline silicon ingots and wafers for the global solar energy industry. Dedicated to high efficiency n-type wafers, the company is an established supplier to tier-one cell manufacturers. |
| NorSun operates a state-of-the-art production facility located in Årdal in western Norway. Pursuing a detailed and aggressive technology development and cost road map which ensures a competitive price model, NorSun's ingot, block and wafer slicing capacity is currently at 450 MW. |
|
| In June 2019, the company closed a NOK 230 million equity round to increase the production capacity to 1000 MW, introduce new technologies, and significantly reduce unit costs. |
|
| NorSun was established in 2005 by Alf Bjørseth, the well-known founder of REC. A year later, Arendals Fossekompani took an active position in NorSun. |
|
| AFK Board Member: Lars Peder Fensli |
Other Investments AFK is also a shareholder and part-owner of other energy and technology companies. AFK supports and builds the companies by taking an active role in the Companies' Board of Directors.
ARENDALS FOSSEKOMPANI PART 03 – PORTFOLIO COMPANIES
| DECLERATION BY THE MEMBERS OF THE BOARD & CEO | 152 |
|---|---|
| INDEPENDENT AUDITOR'S REPORT | 154 |
| CORPORATE GOVERNANCE | 160 |
| FINANCIAL PERFORMANCE MEASURES | 168 |
| ALTERNATIVE PERFORMANCE MEASURES | 170 |
| Continued operations | GROUP | PARENT COMPANY | ||||
|---|---|---|---|---|---|---|
| Note | 2020 | 2019 | 2020 | 2019 | ||
| Operating revenues and operating costs | ||||||
| Sales revenues | 1 | 3 617 526 | 4 449 912 | 59 851 | 209 091 | |
| Total other Income | 1,2 | 55 542 | 45 723 | 10 032 | 2 348 | |
| Sales | 3 673 068 | 4 495 635 | 69 884 | 211 439 | ||
| Cost of sales | 1 436 767 | 2 203 139 | 6 485 | 3 633 | ||
| Total staff cost | 4 | 1 360 419 | 1 319 686 | 64 565 | 38 839 | |
| Total other operating cost | 7,19 | 428 553 | 467 604 | 43 988 | 39 607 | |
| Operating expense | 3 225 740 | 3 990 429 | 115 038 | 82 079 | ||
| EBITDA | 447 328 | 505 206 | -45 154 | 129 360 | ||
| Depreciation | 5 | 189 239 | 197 605 | 8 997 | 8 250 | |
| Amortisation | 6 | 61 698 | 64 020 | 837 | 650 | |
| Impairment loss from PPE | 5,6 | 8 742 | 10 655 | |||
| Operating profit | 187 649 | 232 926 | -54 989 | 120 460 | ||
| Finance income and finance costs | ||||||
| Total finance income | 8,25,11 | 58 982 | 87 056 | 621 822 | 164 300 | |
| Finance cost | 8 | 111 597 | 75 807 | 64 449 | 47 014 | |
| Net financial items | -52 614 | 11 249 | 557 372 | 117 286 | ||
| Equity company income | 11 | -14 321 | -1 632 | |||
| Profit before taxes | 120 714 | 242 544 | 502 383 | 237 746 | ||
| Provision for income tax | 9 | 39 382 | 150 927 | -17 706 | 76 233 | |
| Net profit for the year, continuing operations | 81 332 | 91 617 | 520 089 | 161 513 | ||
| Net discontinued operations income | 26 | 38 803 | -44 898 | |||
| Net profit for the year | 120 135 | 46 718 | 520 089 | 161 513 | ||
| Attributable to: | ||||||
| Minority interest income | 55 229 | 1 912 | ||||
| Equity holders of the parent | 64 907 | 44 806 | 520 089 | 161 513 | ||
| Total | 120 135 | 46 718 | 520 089 | 161 513 | ||
| Basic/diluted earnings per share (NOK) | 22 | 1,18 | 0,82 | 9,48 | 2,94 |
Amounts in NOK 1 000
| GROUP | PARENT COMPANY | |||||
|---|---|---|---|---|---|---|
| Note | 2020 | 2019 | 2020 | 2019 | ||
| Total Effect from Foreign Exchange | 18 016 | 11 774 | ||||
| Change on Cash flow hedges | -27 064 | 27 158 | ||||
| Tax on OCI that may be reclassified to P&L | 9 | -2 032 | -6 303 | |||
| OCI that may be reclassified to P&L | -11 079 | 32 629 | ||||
| Change in financial assets at fair value through OCI | 16 | -161 988 | 195 432 | -161 988 | 195 432 | |
| Actuarial gains and Losses | 4 294 | -6 359 | 4 626 | -2 904 | ||
| Tax on OCI that will not be reclassified to P&L | 9 | 8 076 | 1 553 | -1 018 | 639 | |
| OCI that will not be reclassified to P&L | -149 617 | 190 625 | -158 379 | 193 167 | ||
| Total Other Comprehensive Income (OCI) | -160 697 | 223 254 | -158 379 | 193 167 | ||
| Net profit for the year | 120 136 | 46 718 | 520 089 | 161 513 | ||
| Total Comprehensive Income | -40 561 | 269 972 | 361 710 | 354 680 | ||
| Attributable to: | ||||||
| Minority Interest | 58 313 | 2 461 | ||||
| Owner's equity | -98 874 | 267 512 | 361 710 | 354 680 | ||
| Total | -40 561 | 269 972 | 361 710 | 354 680 | ||
| Total Comprehensive Income per share (NOK) | -0,74 | 4,92 | 6,59 | 6,47 |
| GROUP | PARENT COMPANY | ||||
|---|---|---|---|---|---|
| Note | 2020 | 2019 | 2020 | 2019 | |
| Assets | |||||
| Fixed assets | 5 | 1 199 241 | 1 234 027 | 172 435 | 164 287 |
| Intangible assets and goodwill | 6 | 979 049 | 770 897 | 12 268 | 7 223 |
| Investment in equity companies | 11 | 9 422 | |||
| Investment in sub | 3,5,11 | 1 795 354 | 1 637 945 | ||
| Intra-group loans | 142 176 | 292 403 | |||
| Net pension assets | 4 | 16 092 | 24 549 | 9 621 | 5 773 |
| Non-current receivables and investments | 12 | 395 337 | 235 919 | 226 563 | 197 954 |
| Deferred tax assets | 9 | 150 175 | 124 658 | 83 670 | 67 403 |
| Non-current assets | 2 749 316 | 2 390 050 | 2 442 088 | 2 372 988 | |
| Inventories | 13 | 680 885 | 467 686 | ||
| Contract assets | 13,16 | 160 700 | 105 651 | ||
| Total receivables | 14,16 | 893 307 | 945 022 | 158 159 | 123 971 |
| Cash and cash equivalents | 15 | 1 757 706 | 1 171 776 | 765 641 | 498 789 |
| Financial assets at fair value through OCI | 16 | 734 973 | 895 545 | 734 973 | 895 545 |
| Financial assets clas. as held for trading | 16 | 10 000 | 10 150 | ||
| Assets connected to discontinued operation | 26 | 159 437 | |||
| Current assets | 4 237 571 | 3 755 268 | 1 658 774 | 1 518 306 | |
| Total assets | 6 986 887 | 6 145 318 | 4 100 862 | 3 891 293 |
| GROUP | PARENT COMPANY | ||||
|---|---|---|---|---|---|
| Note | 2020 | 2019 | 2020 | 2019 | |
| Equity and liabilities | |||||
| Common stock | 10 | 223 981 | 223 981 | 223 981 | 223 981 |
| Other paid in capital | 7 675 | 5 510 | 7 675 | 5 510 | |
| Own shares | -63 866 | -66 514 | -63 866 | -66 514 | |
| Other reserves | 704 276 | 898 798 | 703 317 | 865 305 | |
| Retained earnings | 2 680 443 | 2 115 905 | 2 511 897 | 2 176 892 | |
| Owner's equity | 3 552 509 | 3 177 680 | 3 383 004 | 3 205 173 | |
| Minority Interest | 11 | 303 021 | 141 737 | ||
| Total equity | 7 | 3 855 530 | 3 319 417 | 3 383 004 | 3 205 173 |
| Bond | 17,25 | 299 735 | 299 735 | ||
| Interest and ex rate swap | 16,17 | 92 587 | 92 587 | ||
| Non-current borrowings | 17,25 | 500 252 | 332 122 | 216 773 | 133 133 |
| Employee benefits | 4 | 26 267 | 40 174 | 7 197 | 8 672 |
| Other non-current liabilities | 11 961 | 3 309 | |||
| Provisions | 17 | 99 373 | 72 835 | ||
| Deferred taxes | 9 | 61 350 | 58 873 | ||
| RoU liabilities | 19,25 | 183 624 | 190 346 | 17 115 | 5 766 |
| Non-current liabilities | 882 827 | 1 089 981 | 241 084 | 539 893 | |
| Bond | 17,25 | 299 912 | 299 912 | ||
| Interest and ex rate swap | 16,17 | 106 847 | 106 847 | ||
| Interest-bearing current borrowings | 17,25 | 89 934 | 85 926 | ||
| Bank overdraft | 17 | 310 105 | 196 267 | ||
| Accounts payable | 18 | 707 741 | 611 146 | 17 867 | 23 668 |
| Payable income tax | 9 | 53 682 | 111 247 | 6 740 | 56 699 |
| Contract liabilities | 13 | 153 183 | 116 112 | ||
| Current interest-bearing liabilities, intercompany | 28 921 | 52 801 | |||
| RoU-liabilities | 19 | 57 576 | 63 695 | 3 531 | 993 |
| Other current liabilities | 18 | 469 551 | 439 144 | 12 957 | 12 066 |
| Liabilities connected to discontinued operation | 26 | 112 384 | |||
| Current liabilities | 2 248 530 | 1 735 920 | 476 774 | 146 227 | |
| Total liabilities and equity | 6 986 887 | 6 145 318 | 4 100 862 | 3 891 293 |
Froland, 26 March 2020
Jon Hindar
Board Chairman
Morten Bergesen Deputy Chairman
Didrik Vigsnæs Arild Nysæther
Heidi Marie Petersen Kristine Landmark Stine Rolstad Brenna Ørjan Svanevik
CEO
| GROUP | PARENT COMPANY | |||
|---|---|---|---|---|
| Note | 2020 | 2019 | 2020 | 2019 |
| Cash flow from operating activities | ||||
| Net Cash from Income | 81 332 | 91 616 | 520 089 | 161 513 |
| Adjusted for | ||||
| Adj Depreciation, Impairment and Amortization | 259 679 | 280 195 | 9 835 | 8 900 |
| Net financial items | 52 614 | -11 250 | -557 372 | -117 286 |
| Share of profit from associates | 14 321 | 1 632 | ||
| Gain/Loss from sales of assets | 662 | |||
| Tax expense | 39 382 | 150 927 | -17 706 | 76 233 |
| Total after adjustments to net income | 447 328 | 513 782 | -45 154 | 129 360 |
| Change in Inventories | -200 557 | -102 761 | ||
| Change in trade and other receivables | -55 456 | 143 718 | -1 788 | 1 217 |
| Change in trade and other payables | 27 984 | -25 599 | -5 924 | -540 |
| Cash flow form Internal Accounts Payable and Receivable | -50 880 | 3 916 | ||
| Change in other current assets | 54 318 | 10 060 | 3 556 | |
| Change in other current liabilities | 49 557 | 47 939 | 430 | |
| Change in other provisions | 25 009 | 7 175 | -2 424 | |
| Change in employee benefits | -2 510 | -19 619 | -698 | -1 246 |
| Total after adjustments to net assets | 345 673 | 574 696 | -104 015 | 133 838 |
| Tax paid | -123 590 | -100 202 | -49 611 | -40 144 |
| Net cash from operating activities A |
222 083 | 474 493 | -153 626 | 93 694 |
| Cash flow from investing activities | |||||
|---|---|---|---|---|---|
| Interest received etc. | 8 | 17 665 | 28 729 | 15 780 | 17 274 |
| Dividends received | 10 448 | 28 677 | 144 340 | 138 812 | |
| Proceeds from the sales of PPE | 716 | 3 630 | |||
| Purchase of PPE and intangible assets | -207 268 | -167 043 | -7 981 | -1 598 | |
| Purchase of shares in subsidiaries (reduced by cash balance) |
-97 921 | -7 621 | |||
| Purchase of financial assets at fair value | -1 416 | -1 416 | |||
| Proceed from sale of financial assets at fair value | 320 592 | 320 592 | |||
| Purchase of other investments | -165 906 | -46 974 | -28 609 | -28 535 | |
| Proceed from sale of other investments | 763 | ||||
| Purchase of non controlling intrests | -238 871 | -8 419 | -227 696 | -40 653 | |
| Proceeds from the sales of shares in subsidiaries | 562 192 | 303 | 501 083 | 129 | |
| Net cash from investing activities | B | -120 361 | 152 637 | 395 501 | 406 022 |
| Cash flow from financing activities | |||||
| Equity payments from non controlling intrests | 530 448 | 513 | |||
| Note 2020 2019 2020 2019 17 665 28 729 15 780 17 274 8 10 448 28 677 144 340 138 812 716 3 630 -207 268 -167 043 -7 981 -1 598 -97 921 -7 621 -1 416 -1 416 320 592 320 592 -165 906 -46 974 -28 609 -28 535 763 -238 871 -8 419 -227 696 -40 653 562 192 303 501 083 129 B -120 361 152 637 395 501 406 022 530 448 513 25 185 259 29 770 92 158 32 556 25 -77 346 -180 636 -1 049 -107 481 155 724 -62 746 135 427 30 727 8 -78 658 -74 237 -37 977 -35 113 -234 037 -139 827 -188 693 -122 613 5 862 8 716 4 814 8 716 C 466 954 -324 974 24 977 -286 681 Cash Flow A+B+C 568 676 302 156 266 852 213 035 Opening Balance for Cash asset 1 171 776 866 995 498 789 285 754 17 254 2 625 1 757 706 1 171 776 765 641 498 789 |
GROUP | PARENT COMPANY | ||
|---|---|---|---|---|
| Cash flow from investing activities | ||||
| Interest received etc. | ||||
| Dividends received | ||||
| Proceeds from the sales of PPE | ||||
| Purchase of PPE and intangible assets | ||||
| Purchase of shares in subsidiaries (reduced by cash balance) |
||||
| Purchase of financial assets at fair value | ||||
| Proceed from sale of financial assets at fair value | ||||
| Purchase of other investments | ||||
| Proceed from sale of other investments | ||||
| Purchase of non controlling intrests | ||||
| Proceeds from the sales of shares in subsidiaries | ||||
| Net cash from investing activities | ||||
| Cash flow from financing activities | ||||
| Equity payments from non controlling intrests | ||||
| New long-term borrowings | ||||
| Repayment of long-term borrowings | ||||
| Cash Flow from Internal Loans and Borrowings | ||||
| Cash Flow from Net change in current interest bearing debt |
||||
| Interest paid etc. | ||||
| Dividend paid | ||||
| Cash Flow from Own Shares | ||||
| Net cash from financing activities | ||||
| Total effect from FX on non-Cash accounts | ||||
| Closing Balance for Cash asset |
| Common | Other paid | Own | Other | Retained | Owner's | Minority | Total | |
|---|---|---|---|---|---|---|---|---|
| Group | stock | in capital | shares | reserves | earnings | equity | Interest | equity |
| 2019 | ||||||||
| Balance at 1 January | 223 981 | 1 117 | -70 838 | 959 069 1 891 316 3 004 645 | 167 018 3 171 663 | |||
| Net profit for the year | 44 806 | 44 806 | 1 912 | 46 718 | ||||
| Total Other Comprehensive Income (OCI) |
229 753 | -7 048 | 222 705 | 549 | 223 254 | |||
| Purchase/sale of treasury shares |
4 393 | 4 323 | 8 716 | 8 716 | ||||
| Realization of financial asset at fair value through OCI |
-290 023 | 290 023 | ||||||
| Capital changes from subsi diaries |
19 420 | 19 420 | -4 701 | 14 720 | ||||
| Dividends paid | -122 613 | -122 613 | -23 041 | -145 654 | ||||
| Balance at 31 December | 223 981 | 5 510 | -66 514 | 898 798 2 115 905 3 177 680 | 141 737 3 319 416 | |||
| 2020 | ||||||||
| Balance at 1 January | 223 981 | 5 510 | -66 514 | 898 798 2 115 905 3 177 680 | 141 737 3 319 416 | |||
| Net profit for the year | 64 907 | 64 907 | 55 229 | 120 136 |
| Total Other Comprehensive Income (OCI) |
-164 031 | 251 | -163 780 | 3 083 | -160 697 | |||
|---|---|---|---|---|---|---|---|---|
| Purchase/sale of treasury shares |
2 165 | 2 648 | 4 814 | 4 814 | ||||
| Gain from sale of shares in subsidiaries |
806 662 | 806 662 | 163 194 | 969 856 | ||||
| Capital changes from subsi diaries |
-30 492 | -117 239 | -147 730 | -16 228 | -163 958 | |||
| Dividends paid | -190 042 | -190 042 | -43 995 | -234 037 | ||||
| Balance at 31 December | 223 981 | 7 675 | -63 866 | 704 276 2 680 443 3 552 509 | 303 021 3 855 530 |
Amounts in NOK 1 000
| Parent Company | Common stock |
Other paid in capital |
Own shares |
Other reserves |
Retained earnings |
Owner's equity |
Minority Interest |
Total equity |
|---|---|---|---|---|---|---|---|---|
| 2019 | ||||||||
| Balance at 1 January | 223 981 | 1 117 | -70 837 | 959 896 1 850 235 2 964 391 | 2 964 391 | |||
| Net profit for the year | 161 513 | 161 513 | 161 513 | |||||
| Total Other Comprehensive Income (OCI) |
193 167 | 193 167 | 193 167 | |||||
| Purchase/sale of treasury shares |
4 393 | 4 323 | 2 265 | -2 265 | 8 716 | 8 716 | ||
| Realization of financial asset at fair value through OCI |
-290 023 | 290 023 | ||||||
| Dividends paid | -122 613 | -122 613 | -122 613 | |||||
| Balance at 31 December | 223 981 | 5 510 | -66 514 | 865 305 2 176 892 3 205 173 | 3 205 173 | |||
| 2020 | ||||||||
| Balance at 1 January | 223 981 | 5 510 | -66 514 | 865 305 2 176 892 3 205 173 | 3 205 173 | |||
| Net profit for the year | 520 089 | 520 089 | 520 089 | |||||
| Total Other Comprehensive Income (OCI) |
-161 988 | 3 608 | -158 379 | -158 379 | ||||
| Purchase/sale of treasury shares |
2 165 | 2 648 | 4 814 | 4 814 | ||||
| Dividends paid | -188 693 | -188 693 | -188 693 | |||||
| Balance at 31 December | 223 981 | 7 675 | -63 866 | 703 317 2 511 897 3 383 004 | 3 383 004 |
Arendals Fossekompani ASA is domiciled in Norway, with headquarters in Bøylefoss, in the Municipality of Froland. The consolidated financial statements for the financial year 2020 include the company and its subsidiaries (as a whole, referred to as "the Group"). Information about the companies included in the scope of consolidation is disclosed in Note 11, together with information about Group investments in associates.
The annual and consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) adopted by the European Union and associawted interpretations, as well as Norwegian disclosure requirements pursuant to the Norwegian Accounting Act applicable as of 31 December 2020. The annual and consolidated financial statements were approved by the board of directors on 25 March 2021.
The annual and consolidated financial statements will be submitted for adoption at the Annual General Meeting scheduled for 6 May 2021. The board is authorised to amend the annual and consolidated financial statements until final adoption.
The financial statements are presented in Norwegian kroner (NOK), which is the functional currency of the parent company. All amounts disclosed in the financial statements and notes have been rounded off to the nearest thousand NOK units unless otherwise stated.
The financial statements have been prepared using the historical cost principle, with the exception of the following assets, which are presented at fair value: Financial instruments at fair value through profit or loss and financial instruments at fair value through other comprehensive income.
The Group recognises changes in equity arising from transactions with owners in the statement of changes in equity. Other changes in equity are presented in the statement of comprehensive income (total return).
Preparation of financial statements in accordance with IFRS requires the use of assessments, estimates and assumptions that influence which accounting policies shall be applied, and also influence recognised amounts for assets and liabilities, revenues and costs. Actual amounts can deviate from estimated amounts.
Estimates and underlying assumptions are reviewed on an ongoing basis. Changes in accounting estimates are recognised in the period in which they arise if they only apply to that period. If the changes also apply to subsequent periods, the effect is allocated over the current and subsequent periods.
Areas with significant estimation uncertainties, and where assumptions and assessments made have significantly influenced the application of the accounting policies, are disclosed in Note 21.
The accounting policies applied in the preparation of the annual and consolidated financial statements are described below. With the exception of effects described in the section on changes in accounting policies below, the policies are applied consistently for all periods. In case that subsidiaries have used other principles to prepare their separate annual financial statements, adjustments have been made so the consolidated financial statements are prepared according to common policies.
Changes in accounting policies for 2020
No new standards have been adopted by the Company and the Group with effect from 1 January 2020.
The acquisition method of accounting is used to account for the acquisition of shares that lead to control over another company. The Group's consideration is allocated to identifiable assets and liabilities. These are recognised in the consolidated financial statements at fair value at the date when control is obtained. Goodwill is calculated when the considerateion exceeds identifiable assets and liabilities: • The consideration transferred; plus
If those amounts are less than the fair value of the net identifiable assets of the business acquired, the difference is recognised directly in profit or loss as a bargain purchase. If the business combination is achieved in stages, the investment changes classification from associated company to subsidiary, the upward adjustment of the existing shareholding at fair value is recognised as a gain in the income statement.
A buyout of non-controlling interests is considered a transaction with owners and does not require a calculation of goodwill. Non-controlling interests for such transactions are adjusted based on a proportionate share of the subsidiary's equity.
Subsidiaries are all entities over which the Group has control. Control exists when the investor is exposed or has rights to variable returns from its investment in the company and when it has the ability to influence the return through its power over the company. To determine the level of control, the potential voting rights that can be exercised or converted must be considered. Subsidiar-ies are fully consolidated from the date on which control is transferred to the group. They are de-consolidated from the date that control ceases.
Associated companies are entities where the company and/or the Group has significant influence, but not control over financial and operational management. Significant influence is assumed to exist when the Group has between 20 per cent to 50 per cent of the voting rights in a company. The consolidated financial statements include the Group's share of the profits/losses from associated companies are accounted for using the equity method, from the date significant influence was achieved until it ceases.
Intercompany transactions, balances and unrealised gains and losses on transactions between group companies are eliminated.
Investments in subsidiaries and associates are recognised at historical cost less any impairment losses in the parent company's financial statements. When an investment is reclassified from fair value through other comprehensive income to subsidiary or associated company, the investment's carrying amount at the time control or significant influence is obtained is used as recognised cost.
Discontinued operations Group activities that comprise a separate segment or a separate geographic area and which are sold or held for sale, or a subsidiary acquired solely for resale. An activity is classified as a discontinued operation when it is sold or when the criteria for classification as held for sale are satisfied. When an activity is classified as discontinued operation, the comparative figures for the previous period are adjusted correspondingly.
Transactions in foreign currencies are translated to the functional currency of each individual Group company using the exchange rates at the dates of the transactions. Monetary assets and liabilities in foreign currencies are translated to NOK using the exchange rate at the balance sheet date. Differences that arise from the currency translation are recognised in the income statement.
Assets and liabilities in foreign currencies are translated to NOK using the exchange rate at the balance sheet date. Revenues and expenses for foreign operations are translated to NOK at the approximate rates of exchange at the transaction date.
Translation differences are recognised in other comprehensive income and presented as a translation difference in equity. For subsidiaries which are not wholly-owned, a proportional share of the translation difference is allocated to the non-controlling interests. On divestment of foreign operations which result in a loss of control, an accumulated share of the translation differences is recognised in the income statement as part of the profit calculation.
Translation differences arising from the translation of net investments in foreign operations are specified as translation differences in equity, and recognised in the income statement at the time of the divestment.
Non-derivative financial instruments consist of investments in debt and equity instruments, trade and other receivables, cash and loans, trade payables and other debts.
Trade and other receivables that fall due in less than three months are not discounted.
Non-derivative financial instruments are measured on initial recognition at fair value plus any directly attributable transaction costs. After initial recognition, the instruments are measured as described below.
Interest-bearing loans are valued at fair value less transaction costs on initial recognition in the balance sheet. Instruments are subsequently measured at amortised cost, with any differences between cost and redemption value recognised over the term of the loan as part of the effective interest rate.
Financial assets are derecognised when the contractual rights to the cash flows from an asset expire, or when the Group has transferred the contractual rights in a transaction where the risk and return of ownership of the financial asset have substantively been transferred.
In accordance with the Group's investment strategy, investments in equity instruments are main-ly classified as fair value through other comprehensive income. After initial recognition, these instruments are measured at fair value. Changes in fair value are recognised in other comprehensive income.
A financial instrument is classified at fair value through profit or loss if it is held for trading. The instrument is measured at fair value and the changes in fair value are recognised in the income statement.
Other non-derivative financial instruments are measured at amortised cost less any impairment losses.
The Group uses derivatives to limit exposure to interest risk, currency risks and price risk that arise from operational and financial activities. Derivatives that do not qualify for hedge accounting are recognised at fair value through profit or loss.
When derivatives qualify for hedge accounting, the recognition of fair value changes will depend on what is being hedged (see below).
When a derivative is designated as a hedging instrument on variability in cash flows for a recorded asset or liability, or for a highly proba-ble forecast transaction, the effective portion of a change in fair value is recognised in other comprehensive income. The Group performs a qualitative assesment of hedging effectiveness. A hedging instrument is derecognised when it no longer satisfies hedge accounting criteria, sold, terminated or matures. The accumulated change in fair value recognised in other comprehensive income remains until the forecast transaction occurs. If the hedged item is a financial asset, the amount recognised in other comprehensive income is transferred to to the income statement in the same period as the hedged item affects the income statement. If the hedged transaction is no longer expected to occur, the accumulated unrealised gains or losses are immediately recognised in the income statement.
When a financial derivative is designated as a hedging instrument on variability in the value of a recognised asset, a firm agreement or liability, the gain or loss on the derivative is recognised in the income statement in the period it incurs. Similarly, changes in the fair value of the hedged item is recognised in the income statement in the same period. Principles related to hedging effectiveness and derecognition are the same as for cash flow hedges.
Ordinary shares are classified as equity. Costs associated with the issuance of shares are recognised as a reduction in net equity (share premium) after tax, if applicable.
Purchase and sale of treasury shares
On the repurchase of treasury shares, the purchase amount including directly attributable costs are recognised as a change in equity. Purchased shares are classified as treasury shares and reduce total equity. When treasury shares are sold, the received amount is recorded as an increase in equity, and the subsequent gain on the transaction is recognised in Other paid-in equity.
Provision is made for the amount of any dividend declared, for the applicable reporting period.
Property, plant and equipment
Property, plant and equipment is recognised in the balance sheet at cost less accumulated depre-ciation (see below) and any impairment losses. The cost for capital equipment produced by the company includes material costs, direct costs of labour and a reasonable share of indirect production costs.
Operating assets with different useful economic lives are recognised as separate components of property, plant and equipment.
Borrowing costs that are directly attributable to the acquisition of an asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. These borrowing costs are capitalised as part of the asset's cost when it is probable that they will lead to future benefits for the Group, and the costs can be measured in a reliable manner. Other borrowing costs are recognised in the income statement in the period in which they incur.
The company and the Group include expenses of replacing parts of operating assets in the cost of property, plant and equipment when such ex-penses are expected to generate future economic benefits and the expenses for the replaced parts can be reliably measured. All other costs are recognised in the income statement in the period in which they occur.
Depreciation is calculated using the straight-line method over the estimated useful lifetime for each item of property, plant and equipment, and charged to the income statement. Land is not depreciated.
Estimated economic lifetimes are as follows:
Residual value is assessed annually unless it is immaterial.
The company's and the group's leases consist mainly of office space, machines, cars, IT equipment and other office machines. Some contracts have extension options.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments:
Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the group, the lessee's incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.
To determine the incremental borrowing rate, the group:
If a readily observable amortising loan rate is available to the individual lessee (through recent financing or market data) which has a similar payment profile to the lease, then the group entities use that rate as a starting point to determine the incremental borrowing rate.
The group is exposed to potential future increases in variable lease payments based on an index or rate, which are not included in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset.
Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
Right-of-use assets are measured at cost compris-ing the following:
Goodwill represents the amount that arises on the acquisition of subsidiaries and investments in associates. For acquisitions after 1 January 2010, goodwill is calculated as described above. For acquisitions between 1 January 2003 and 31 December 2009, goodwill represents the difference between the cost on acquisition and the fair value of the net identified assets acquired. For acquisitions prior to this, goodwill is based on the estimated cost that corresponds to the amount that was recognised under previous Norwegian accounting principles.
Goodwill is recognised in the balance sheet at cost, less any accumulated impairment losses. Goodwill is allocated to the cash-flow-generating units and is not amortised, but it is tested each year for impairment. For associates, the balance sheet value of goodwill is included in the investment's book value in the consolidated financial statements.
Other intangible assets that are acquired are recognised in the balance sheet at cost, less accumulated amortisation (see below) and less any impairment losses.
Research and development expenditures which are directly attributable to development and testing of the Group's products, and which are identifiable and unique, and which are controlled by the Group, are recognised in the balance sheet as an intangible asset when all of the following criteria are satisfied:
Costs recognised in the balance sheet include material costs, direct costs of labour and directly attributable overheads that are included to make the product available for use.
Other development costs that do not satisfy these criteria are recognised as an expense as incurred. Development costs that are expensed cannot subsequently be recognised in the balance sheet.
Future costs concerning intangible assets recognised in the balance sheet are only capitalised if they increase future economic benefits related to this asset. All other costs are expensed in the period in which they occur.
Amortisation is calculated and recognised in income using the straight-line-method over the estimated useful economic life of the intangible assets, unless the lifetime is indefinite. Goodwill is annually tested for impairment, at balance sheet date. Capitalised costs associated with the granting of concessions are amortised over the period until the next concession application. The amortisation period is 50 years. Excess values associated with customer relations, customer contracts, brands and own software development and other development costs are amortised over a period of 7–10 years.
The subgroup Cogen has emissions trading rights for its operations at the thermal power plant in Spain. International financial reporting standards (IFRS) have not set any rules for how this should be reported. Consequently, the company is using the "net liability approach" method while awaiting further developments. Under this method, a liability is not recognised until actual emissions exceed the emissions covered by the rights the company owns. Actual emissions are compared with existing emission rights each year.
Inventories are recognised at the lower of cost and net sales value. Net sales value is the estimated sales price in ordinary operations, less the estimated costs for completion and sales costs.
Cost is based on the first-in first-out principle and includes costs incurred upon procurement of goods and the costs of bringing them to their present condition and location. For finished goods and work in progress, cost is calculated as a share of the indirect costs based on normal utilisation of capacity.
The booked value of construction contracts consists of earned, non-invoiced income under the percentage-of-completion method, less received advance payments. The amount is recognised in the balance sheet under trade and other receivables. The net worth is classified as contract as-sets. Long-term manufacturing contracts where the customer has paid more than the earned contract value on the balance sheet date are classified as contract obligations. See also the section below on operating income and Note 13.
The accounting policies and notes require fair value to be determined for financial and certain non-financial assets and liabilities. Fair value is defined as the value the individual asset or liability can be sold for, in an orderly transaction, between market participants at the measurement date under current market conditions.
Various methods and techniques are used to calculate fair value depending on the type of asset or liability and to what extent they are traded in active markets.
Financial instruments are classified in their entirety at one of three valuation levels based on the lowest level of the valuation information which has an impact on the valuation of the instruments. Please refer to the disclosures on the different valuation levels in Note 16.
Based on the above principles, the following methods are normally used to determine fair value:
In connection with acquisitions and business combinations, property, plant and equipment is recognised at fair value. The market value is determined based on valuations or observable market prices on similar assets.
The fair value of trade and other receivables is calculated as the present value of net future cash flows discounted at the market interest rate at the balance sheet date.
The fair value of intangible assets is based on discounted forecast cash flows from the use and any subsequent sale of the assets.
The fair value of listed financial instruments is equivalent to the quoted bid price at the balance sheet date. For non-listed instruments, fair value is based on the known market prices close to the balance sheet date or valuations made by invest-ment firms applying generally applied valuation methods.
Fair value of financial liabilities for disclosure purposes is calculated as the present value of future cash flows discounted at the market interest rate at the balance sheet date.
The fair value of swap agreements is the estimated amount that the company and/or the Group will receive or be required to pay to settle the agreement at the balance sheet date, taking into account current interest rates and the counterparty's own creditworthiness. The fair
value of energy-related derivatives (futures, forwards and options) is the market price at the balance sheet date. The fair value of forward exchange contracts is the market price at the balance sheet date.
The carrying amount of the company's and Group's assets is, with the exception of inventories and deferred tax assets, reviewed each bal-ance sheet date to assess whether there are indications of impairment. If any such indication exists, the asset's recoverable amount will be estimated.
An impairment loss is recognised when the carrying amount of an asset or cash-generating unit (valuation unit) exceeds the recoverable amount. Impairment losses are recognised in the income statement.
Impairments for cash-flow generating entities are allocated by reducing the carrying amount of any goodwill in cash-generating units first. Subsequently, the remaining impairments on the other assets in the unit are allocated pro-rata based on the carrying amounts.
The recoverable amount of assets is the highest of the net selling price and value in use. The value in use is calculated by discounting the forecast future cash flows to their present value using a discount rate before tax that reflects current market pricing of the time value of money and the risks specific to the asset. For assets that do not essentially generate independent cash flows, the recoverable amount is determined for the valuation entity to which the asset belongs.
Impairments of goodwill are not reversed.
For other assets, impairment losses are reversed if there is a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
Obligations to provide contributions to defined contribution pension plan are recognised as costs in the income statement in the period in which they occur.
The net liability related to defined benefit pension plans is calculated separately for each plan by estimating the size of the future benefits
that the employees have earned through their work efforts in the current and prior periods. These future benefits are discounted to present value, and the fair value of the pension assets is subtracted to establish the net obligation. The discount rate corresponds to the market interest rate for high-quality corporate bonds (OMF interest rate) with approximately the same term as the Group's obligations. The calculations are performed by a qualified actuary and based on the straight-line earnings model.
When the benefits in a pension plan improve, the share of the increase in benefits that the employee has earned the right to are recognised as a cost in the income statement on a straight-line basis over the average period until the employees have earned an unconditional right to the increased benefits. The cost is recognised immediately in the income statement if the employees have already acquired an unconditional right to increased benefits at the time of allotment.
Actuarial gains and losses on the calculation of the company's obligation for a pension plan are recognised in other comprehensive income when they incur. Pension costs / earnings, as well as gains and losses on curtailment / termination are recognised in the income statement.
The net interest on the calculation of pension obligations is reported as financial items in the income statement.
When the calculations result in an asset for the company, recognition of this asset is limited to the net amount of the total of unrealised actuarial losses and the cost of previous periods' pension earnings, and the present value of future refunds from the scheme or reductions in payments to the scheme.
A provision is recognised when the Group has a present legal or constructive obligation, as a result of a past event and it is probable that this will result in an outflow of resources to settle the obligation, and the obligation can be reliably estimated.
Provisions for restructuring are recognised when the Group has approved a detailed and formal restructuring plan, and the restructuring has either begun or has been announced to those affected.
Operating revenue is recognised when performance obligations are satisfied through the transfer of a good or service to the the customer, either over time or at a point in time. By transfer is meant that the customer has obtained control of the good or service. The most central indicators of transfer of control is that the Group has obtained the right to payment for the good or service, that the customer has obtained the right to the good or service, that the Group has transferred physical control of the good or service, that the customer has taken on the significant risks and rewards related to ownership of the good or service. Operating revenue is presented net of sales-related taxes and rebates.
Revenue related to fixed-price contracts where the deliverable is tailored to the customer, does not have an alternative use and where the Group obtains the right to payment based on the pro-jects progress is recognised over time as long as the projects revenue and expenses can be estimated reliably. When the project's result cannot be estimated reliably, only revenue corresponding to expenses incurred may be recognised. Losses related to onerous contracts are recognized in the period they are identified.
Depending on the type of project, progress is estimated based on costs incurred in relation to total estimated costs, as direct hours incurred in relation to total expected hours or by assessing technical grade of completion. Estimates related to revenues, expenses and progress are revised when assumptions change. Change in estimates are recognised in the income statement in the period management becomes aware of the change of assumptions that caused the change in estimate.
In fixed-price contracts the customer normally pays fixed amounts through the project period based on a payment plan. A contract asset is recognised if, at the measurement date the value of the deliverable at the exceeds payments received from the customer. A contract liability is recognised payment from the customer exceeds the value of the deliverable at the measurement date.
Revenue from energy sales is recognised at the transaction date.
Financial income consists of realised gains fair value changes related to debt and equity instruments held for trading, dividends received, share of results from investments in limited partnerships, interest income and foreign exchange gains. Interest income is recognised in the income statement based on the effective interest method as it is earned.
Dividend income is recognised as income on the date the right to receive payment is established.
Government grants that compensate for incurred expenses are recognised as a cost reduction in the income statement on a systematic basis in the same periods in which the expenses are incurred. Grants related to the acquisition of operating assets are recognised
as reduction of cost and amortised by reducing amortisation over the operating asset's useful economic life.
Lease payments for operating leases Lease payments for operating leases are recognised in the income statement on a linear basis over the lease term.
Any lease incentives received are recognised as an integral part of total lease costs.
Financial expenses consist of interest expenses on loans, currency translation losses, negative changes in the value of derivatives and financial instruments held-for-trading and derivatives that are recognised in income, and other realised impairment losses for debt and equity instruments.
Income tax on the profit for the period consists of current and deferred tax. Income tax is recognised in the income statement with the exception of tax on items that are recognised directly in equity or in other comprehensive income. The tax effect of the latter items is recognised directly in equity or in other comprehensive income.
Current tax is the forecast tax payable on the year's taxable income at current tax rates at the balance sheet date, and any adjustments of tax payable for previous years less tax paid in advance.
Deferred tax liabilities are calculated based on the balance sheet oriented liability method taking into account temporary differences between the carrying amount of assets and liabilities for financial reporting and tax values. The following temporary differences are not taken into account: goodwill not deductible for income tax purposes, the initial recognition of assets or liabilities that affect neither accounting nor taxable profit, and differences relating to investments in subsidiaries that are not expected to reverse in the foreseeable future. The provision for deferred tax is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, measured at the tax rates in force at the balance sheet date
Deferred tax assets are recognised only to the extent that it is probable that the asset can be utilised against future taxable results. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax asset will be realised.
Tax assets that can only be utilised via group contributions from the parent company are not recognised until the contribution has actually been paid and is recognised in the individual companies.
Cash means cash in hand and in the bank. Cash equivalents are short-term liquid investments that can be converted to cash within three months to a known amount and which have an insignificant degree of risk. Cash and cash equivalents in the cash flow statement do not include unused overdrafts.
Financial information for the operating segments is determined and presented based on the information provided to the company's board of directors, which is the Group's ultimate decisionmaker.
The company has not early-adopted any IFRS standards or IFRIC that have been issued but are not mandatory as of 31 December 2020. Based on the assessments made so far, it is assumed that coming standards and IFRIC approved by the EU will not have a material effect on the financial statements.
Group
| ENERGY SALES | ADMINISTRATION | VOLUE | NSSLGLOBAL | EFD INDUCTION | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |
| Total sales at a point in time |
59 851 | 206 382 | 2 709 | 147 652 | 228 508 | 898 105 | 876 109 | 545 374 | 669 984 | |
| Total sales over time |
742 569 | 567 133 | 558 922 | 491 797 | ||||||
| Total other Income |
3 408 | 1 219 | 6 625 | 1 130 | 1 645 | 2 221 | 18 230 | 45 769 | 8 164 | |
| Sales | 63 259 | 207 601 | 6 625 | 3 839 | 891 866 | 797 862 | 898 105 | 894 338 1 150 065 1 169 946 | ||
| Operating expense |
56 084 | 59 919 | 58 954 | 16 310 | 743 886 | 697 764 | 684 112 | 664 045 1 041 513 1 115 442 | ||
| Total depreciati on, amortization and impairment |
8 763 | 8 900 | 1 072 | 66 020 | 60 045 | 51 518 | 68 600 | 67 311 | 68 336 | |
| Operating income |
-1 588 | 138 781 | -53 401 | -12 471 | 81 960 | 40 053 | 162 475 | 161 692 | 41 241 | -13 832 |
| Net financial items |
557 372 | 117 286 | -9 236 | -5 609 | -8 852 | 126 | -11 613 | -8 857 | ||
| Provision for income tax |
-2 776 | 81 523 | -14 930 | -10 952 | 10 128 | 9 359 | 29 093 | 42 957 | 10 412 | 25 614 |
| Continuing ope rations income |
1 188 | 57 258 | 518 902 | 115 767 | 62 595 | 25 085 | 124 529 | 118 861 | 19 215 | -48 303 |
| Total assets | 236 838 | 299 269 3 864 023 3 592 024 1 472 687 1 076 762 | 761 722 | 780 501 1 058 371 | 982 958 | |||||
| Total liabilities | 31 476 | 89 040 | 686 382 | 597 080 | 729 600 | 715 022 | 337 516 | 363 690 | 684 012 | 630 271 |
| Net interest bearing debt |
-400 006 | -335 441 | -432 311 | -183 618 | -273 880 | -266 514 | 52 176 | 81 405 |
| Group cont. | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| TEKNA | COGEN | PROPERTY * | ELIMINATIONS | TOTAL | ||||||
| 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |
| Total sales at a point in time |
89 242 | 71 631 | 515 598 1 272 067 | 6 320 | 5 003 | 2 357 | -2 709 2 264 498 3 329 684 | |||
| Total sales over time |
51 537 | 61 298 | 1 353 028 1 120 227 | |||||||
| Total other Income |
42 550 | 9 182 | 6 076 | 8 719 | -50 531 | -3 141 | 55 542 | 45 723 | ||
| Sales | 183 328 | 142 111 | 515 598 1 272 067 | 12 396 | 13 722 | -48 174 | -5 851 3 673 068 4 495 635 | |||
| Operating expense |
173 529 | 166 224 | 469 243 1 256 659 | 15 424 | 14 065 | -17 006 | 3 225 740 3 990 429 | |||
| Total depreciati on, amortization and impairment |
34 173 | 32 681 | 19 451 | 19 447 | 9 036 | 8 655 | 2 336 | 5 615 | 259 679 | 272 280 |
| Operating income |
-24 374 | -56 794 | 26 904 | -4 039 | -12 064 | -8 998 | -33 503 | -11 466 | 187 649 | 232 926 |
| Net financial items |
-23 855 | -8 295 | -5 680 | 12 960 | -2 425 | -2 030 | -562 647 | -95 963 | -66 935 | 9 617 |
| Provision for income tax |
2 827 | -12 783 | 5 673 | 10 976 | 21 | -42 | -1 067 | 4 275 | 39 382 | 150 927 |
| Continuing operations income |
-51 056 | -52 306 | 15 552 | -2 055 | -14 509 | -10 987 -595 084 | -111 704 | 81 332 | 91 616 | |
| Total assets | 354 058 | 340 296 | 598 358 | 610 409 | 596 251 | 265 703 | -1 954 | -1 802 604 6 986 887 6 145 318 | ||
| 519 | ||||||||||
| Total liabilities | 226 071 | 297 041 | 422 988 | 429 848 | 419 997 | 150 072 | -405 780 | -446 163 3 131 357 2 825 901 | ||
| Net interest bearing debt |
149 852 | 236 654 | 119 382 | 124 076 | 323 891 | 123 163 | -143 | 21 238 | -461 038 | -199 037 |
* Property includes Vindholmen Eiendom, Bedriftsveien 17, Steinodden Eiendom, Arendal Lufthavn Gullknapp, Songe Træsliperi, Alytic, AFK Property and Bølevegen 4.
Amounts in NOK 1 000
| NORWAY | EUROPE ASIA |
NORTH AMERICA | CONSOLIDATED | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |
| Operating revenues | 554 094 | 966 312 2 278 158 2 800 205 | 464 958 | 449 358 | 375 859 | 279 760 3 673 068 4 495 634 | ||||
| Segment assets | 3 686 712 3 516 340 2 429 530 1 877 013 | 421 910 | 396 927 | 448 735 | 355 038 6 986 887 6 145 318 |
Amounts in NOK 1 000
| Parent Company | ENERGY SALES | ADMINISTRATION | TOTAL | |||
|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |
| Sales | 63 259 | 207 601 | 6 625 | 3 839 | 69 884 | 211 440 |
| Operating expense | 56 084 | 59 919 | 58 954 | 22 160 | 115 038 | 82 079 |
| Total depreciation, amortization and impai rment |
8 763 | 8 901 | 1 072 | 9 835 | 8 901 | |
| Operating income | -1 588 | 138 781 | -53 401 | -18 321 | -54 989 | 120 460 |
| Net financial items | 557 372 | 117 286 | 557 372 | 117 286 | ||
| Provision for income tax | -2 776 | 81 523 | -14 930 | -5 290 | -17 706 | 76 233 |
| Continuing operations income | 1 188 | 57 258 | 518 902 | 104 255 | 520 089 | 161 513 |
| Total assets | 236 838 | 299 269 | 3 864 023 | 3 592 024 | 4 100 862 | 3 891 293 |
| Total liabilities | 31 476 | 89 040 | 686 382 | 597 080 | 717 858 | 686 120 |
| Net interest bearing debt | -400 006 | -335 441 | -400 006 | -335 441 |
Amounts in NOK 1 000
Amounts in NOK 1 000
| GROUP | PARENT COMPANY | |||
|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |
| Other operating income | 13 929 | 40 323 | 989 | 2 348 |
| Other operating income, IC | 9 044 | |||
| Gain sales of assets | 27 983 | |||
| Grants/subsidies | 13 630 | 5 400 | ||
| Other operating income and sales | 55 542 | 45 723 | 10 032 | 2 348 |
Cogen Energia Españas´ (CEE) acquisition of remaining shares in Ecoenergia Sistemas Alternativos SA in 2019
CEE has since 2016 owned 75 % of Ecoenergia Sistemas Alternativos SA (Ecoenergia) whose sole asset is 50 % of the shares in Papertech Energia S.A. In March of 2019 CEE acquired the remaining 25 % of the shares of Ecoenergia for EUR 774,000
The acquisition caused CEE in its consolidated statement to recognize access to CHP facility at EUR 5,463,000 and goodwill at EUR 774,000. Incremental acquisition of a daughter company requires previously owned shares to be regarded as realized at the time when control of the company is gained. Consequently the 2019 statement had to report a gain from previously owned shares of EUR 562,000. This gain is included in finance income.
| Pre- acquisition carrying amonts EUR |
Fair value adjust ments EUR |
Recognised va lues on acquisiti on EUR |
Recognised va lues on acquisiti on NOK |
|
|---|---|---|---|---|
| Goodwill | 9 692 | 9 692 | 103 800 | |
| Other intangible assets | 3 520 | 3 520 | 37 700 | |
| Products, coustomers | 2 465 | 2 465 | 26 400 | |
| Trade and other receivables | 1 167 | 1 167 | 12 500 | |
| Cash and cash equivalents | 430 | 430 | 4 600 | |
| Deferred tax liabilities | -1 802 | -1 802 | -19 300 | |
| Trade and other payables | -149 | -149 | -1 600 | |
| Other current liabilities | -775 | -775 | -8 300 | |
| Net identifiable assets and liabilities | 672 | 13 875 | 14 547 | 155 800 |
| GROUP | PARENT COMPANY | ||||
|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | ||
| Salaries | 1 145 467 | 1 044 161 | 51 980 | 29 355 | |
| Social security contributions | 148 141 | 144 755 | 7 467 | 4 650 | |
| Pension costs | 44 129 | 55 142 | 3 241 | 2 921 | |
| Other benefits | 22 681 | 75 630 | 1 876 | 1 914 | |
| Total employee benefits | 1 360 419 | 1 319 688 | 64 565 | 38 839 | |
| Number of full-time headcounts | 2 110 | 2 084 | 26 | 23 |
| 2020 | Salaries, fees |
Previous year's bonus paid out this year |
Benefits in kind |
Total remu neration |
Accrued pension costs |
Number of board mee tings (i) |
|---|---|---|---|---|---|---|
| Senior executives | ||||||
| Ørjan Svanevik, CEO | 4 412 | 5 357 | 291 | 10 060 | 119 | |
| Lars Peder Fensli, CFO | 2 095 | 1 271 | 21 | 3 387 | 106 | |
| Morten Henriksen, Executive Vice President |
2 601 | 1 114 | 29 | 3 744 | 112 | |
| Torkil Mogstad, Executive Vice President |
1 935 | 290 | 23 | 2 248 | 103 | |
| Ingunn Ettestøl, ESG Director | 1 458 | 551 | 23 | 2 032 | 123 | |
| Board members, audit and compensation committees |
||||||
| Jon Hindar, Chairman, (iii) | 587 | 587 | 10 | |||
| Morten Bergesen, Deputy Chairman, (ii), (iii), (iv) |
433 | 433 | 10 | |||
| Didrik Vigsnæs, Board Member | 313 | 313 | 10 | |||
| Arild Nysæther, Board Member, (ii), (iii) |
393 | 393 | 10 | |||
| Heidi Marie Petersen, Board Member |
313 | 313 | 10 | |||
| Kristine Landmark, Board Member | 313 | 313 | 10 | |||
| Stine Rolstad Brenna, Board Member, from 28.09.2020, (ii) |
89 | 89 | 5 | |||
| Rikke T. Reinemo, Board Member, till 25.09.2020, (ii) |
280 | 280 | 3 | |||
| Total remuneration | 15 222 | 8 583 | 387 | 24 192 | 563 |
| Previous | ||||||
|---|---|---|---|---|---|---|
| year's | Accrued | Number of | ||||
| 2019 | Salaries, fees |
bonus paid out this year |
Benefits in kind |
Total remu neration |
pension costs |
board mee tings (i) |
| Senior executives | ||||||
| Jarle Roth, CEO, till 1. august 2019 | 3 191 | 916 | 216 | 4 323 | 69 | |
| Ørjan Svanevik, CEO, from 1. september 2019 |
1 533 | 51 | 1 584 | 119 | ||
| Lars Peder Fensli, CFO | 2 292 | 224 | 22 | 2 538 | 106 | |
| Morten Henriksen, Executive Vice President |
2 332 | 243 | 26 | 2 601 | 112 | |
| Torkil Mogstad, Executive Vice | ||||||
| President | 1 916 | 202 | 26 | 2 144 | 103 | |
| Board members, audit and compensation committees |
||||||
| Jon Hindar, Chairman, from 25.04.19, (iii) |
363 | 363 | 6 | |||
| Øyvin A. Brøymer, Chairman, till 25.04.19, (iii) |
156 | 156 | 2 | |||
| Morten Bergesen, Deputy Chairman, (ii), (iii), (iv) |
398 | 398 | 8 | |||
| Didrik Vigsnæs, Board Member | 280 | 280 | 8 | |||
| Arild Nysæther, Board Member, (ii), (iii) |
359 | 359 | 8 | |||
| Heidi Marie Petersen, Board Member |
280 | 280 | 8 | |||
| Kristine Landmark, Board Member | 280 | 280 | 7 | |||
| Rikke T. Reinemo, Board Member, (ii) |
334 | 334 | 8 | |||
| Total remuneration | 13 714 | 1 585 | 341 | 15 640 | 509 | |
(i) 10 Board meetings were held in 2020 and 8 in 2019. (ii) Member of Audit Commitee (iii) Member of Compensation Committee (iv) Member of Nomination Committee
In addition, tNOK 267 (348) was paid in pensions to former board members. Current board members are not entitled to a pension.
Senior executives participate in the collective pension scheme for employees of the parent company and subsidiaries. Refer to the description in the note on pensions. All companies in the Group have phased out defined-benefit pension schemes with effect from 31 December 2015 at the latest, except in the case of employees over 60 years of age who are members of the AFK Pension Plan. These will remain in the defined-benefit scheme until they reach retirement age. With the full contributions period of 30 years the defined-benefit scheme provides a pension which, when combined with the state pension, amounts to 66% of final salary. Until the end of 2015 the parent company had a supplementary pension scheme for employees with pensionable income in excess of 12 G (G = the Norwegian National Insurance Scheme's base amount). With full entitlement the pension benefits were at the same level as for pensionable income of less than 12 G, i.e. 66%. This scheme has also ended and was replaced by an equivalent cash amount for all those under 60 years of age. Bonuses, options and other benefits are not pensionable. Senior executives of the Group received no remuneration or benefits from other Group companies except as shown above. No additional remuneration was paid for special services beyond normal management duties.
Arild Nysæther received GBP 22,500 (GBP 22,500) as Chairman of the Board of the subsidiary NSSLGlobal. Morten Bergesen received EUR 15,000 (EUR 15,000) as Chairman of the Board of the subsidiary Cogen Energia España.
Regarding loans and security provided to members of the management team, the Board of Directors and other elected bodies of the company refer to Note 24.
The following severance pay has been agreed for the CEO in the event of termination of employment: Salary will be paid during the notice period (6 months).
When the CEO joined the company he was given the right to buy 75,000 (3,000) shares in the company at a 15% discount with a tie-in period of three years. Lars Peder Fensli, Morten Henriksen, Torkil Mogstad and Ingunn Ettestøl have the right to buy 20,625 (825) shares on the same terms.
| GROUP | PARENT COMPANY | |||
|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |
| Pension liabilities | ||||
| Present value of unfunded liabilities | 12 290 | 30 736 | 6 307 | 7 600 |
| Present value of funded liabilities | 83 889 | 71 403 | 46 999 | 48 566 |
| Fair value of pension assets | -92 557 | -95 953 | -56 620 | -54 339 |
| Recognised employers' contributions | -747 | 1 072 | 889 | 1 072 |
| Present value of net liabilities | 2 874 | 7 258 | -2 425 | 2 899 |
| Of which presented as pension assets | 16 092 | 24 549 | 9 621 | 5 773 |
| Other pension liabilities | 7 301 | 8 367 | ||
| Gross pension liabilities | 26 267 | 40 174 | 7 197 | 8 672 |
| Change in recognised net liability for defined-benefit pensions | ||||
| Net funded defined-benefit pension liability as at 1 January | -3 142 | -28 824 | -5 773 | -7 436 |
| Liability for unfunded schemes as at 1 January | 16 948 | 30 540 | 8 672 | 8 678 |
| Paid-in contributions | -115 | -3 223 | -184 | -664 |
| Paid out from the scheme | -2 899 | -690 | -620 | -706 |
| Actuarial (gains) losses from other comprehensive income | -4 597 | 3 223 | -4 626 | 2 904 |
| Exchange rate changes, pension liabilities | 879 | 3 745 | ||
| Costs of defined-benefit schemes | -3 465 | 2 461 | 106 | 123 |
| Net liability for defined-benefit schemes as at 31 December | 3 610 | 7 232 | -2 425 | 2 899 |
Amounts in NOK 1 000
| GROUP | PARENT COMPANY | |||
|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |
| Costs recognised in the income statement | ||||
| Costs relating to this period's pension entitlements | -3 259 | |||
| Interest on the liabilities | 1 927 | 2 430 | 1 256 | 1 429 |
| Expected return on pension plan assets | -2 324 | 2 268 | -1 225 | -1 443 |
| Recognised employers' contributions | 5 301 | -2 543 | 75 | 137 |
| Effect of partial discontinuation of Board pensions | 3 523 | 306 | ||
| Expenses from defined benefit plans | -58 | 2 461 | 106 | 123 |
| Costs of defined-contribution pension schemes | 42 546 | 51 360 | 1 838 | 1 477 |
| Net interest on pension liabilities transferred to finance | 313 | 14 | -32 | 14 |
| Transfer effect of discontinuation of separate line in income statement | 1 328 | 1 307 | 1 328 | 1 307 |
| Total pension costs | 44 129 | 55 142 | 3 241 | 2 921 |
| Actual return on pension plan assets | 3 576 | 8 104 | 2 395 | 5 456 |
Pension obligations / costs
The Group's Norwegian companies are obligated to maintain an occupational pension scheme pursuant to the Mandatory Occupational Pension Scheme. The pension scheme satisfies statutory requirements. The pension scheme includes a retirement pension, disability pension and survivor pension. With effect no later than 31.12.2015, all the companies in the Group discontinued their defined benefit plan. One exception from this is employees +60 years of age who are members of AFK's pension fund. These will remain in the defined benefit plan until retirement.
| Hydro | Under | Vehicles, machinery |
Property, | ||||
|---|---|---|---|---|---|---|---|
| Group | CHP plants * |
power plants |
constru ction |
and equipment |
Buildings and land |
RoU total | plant and equipment |
| 2019 | |||||||
| Cost | |||||||
| Balance at 1 January 2019 | 660 173 | 307 150 | 37 781 | 886 925 | 552 597 | 2 444 627 | |
| Additions *** | 2 413 | 933 | 6 663 | 70 364 | -1 889 | 12 325 | 90 809 |
| Aquisitions through business | |||||||
| combinations | 145 785 | 145 785 | |||||
| Disposal | -32 | -22 151 | -4 903 | -27 087 | |||
| Transferd from under construction | -41 318 | 2 927 | 38 391 | ||||
| Reclassification | 3 564 | -28 858 | 25 294 | ||||
| Reclassification to assets held for sale | -9 906 | -9 906 | |||||
| Change in RoU | 290 973 | 290 973 | |||||
| Effect of movements in exchange rates |
-5 745 | 1 913 | 21 611 | 1 337 | 4 051 | 23 166 | |
| Balance at 31 January 2019 | 802 626 | 311 614 | 5 038 | 949 770 | 561 578 | 327 741 | 2 958 367 |
| Depreciation and impairment losses |
|||||||
| Balance at 1 January 2019 | -494 237 | -159 216 | -652 285 | -132 531 | -1 438 269 | ||
| Depreciation | -14 665 | -8 983 | -90 778 | -15 701 | -67 479 | -197 605 | |
| Impairment ** | -2 053 | -3 033 | -4 074 | -9 160 | |||
| Aquisitions through business combinations |
-91 900 | -91 900 | |||||
| Reclassification | 8 010 | -8 010 | |||||
| Reclassification to assets held for sale | 5 515 | 5 515 | |||||
| Disposal | 32 | 19 178 | 64 | 1 577 | 20 851 | ||
| Effect of movements in exchange rates |
4 320 | -16 782 | -993 | -317 | -13 773 | ||
| Balance at 31 January 2019 | -598 535 | -168 166 | -738 185 | -145 224 | -74 230 | -1 724 340 | |
| Book value at 1 January 2019 Book value at 31 December 2019 |
165 937 204 091 |
147 934 143 448 |
37 781 5 038 |
234 640 211 585 |
420 066 416 355 |
253 511 | 1 006 358 1 234 027 |
| Vehicles, | |||||||
|---|---|---|---|---|---|---|---|
| Hydro | Under | machinery | Property, | ||||
| CHP | power | constru | and | Buildings | plant and | ||
| Group | plants | plants | ction | equipment | and land | RoU total | equipment |
| 2020 | |||||||
| Cost | |||||||
| Balance at 1 January 2020 | 802 626 | 311 614 | 5 038 | 949 770 | 561 578 | 327 741 | 2 958 367 |
| Additions | 4 366 | 337 | 22 356 | 58 507 | 7 307 | 406 | 93 278 |
| Aquisitions through business combinations |
7 853 | 14 544 | 22 397 | ||||
| Disposal | -39 391 | -10 721 | -14 104 | -64 216 | |||
| Change in RoU | 58 758 | 58 758 | |||||
| Effect of movements in exchange | |||||||
| rates | 7 307 | -945 | -7 685 | -3 171 | 2 208 | -2 286 | |
| Balance at 31 December 2020 | 814 298 | 311 951 | 26 449 | 969 054 | 569 538 | 375 009 | 3 066 300 |
| Depreciation and impairment losses |
|||||||
| Balance at 1 January 2020 | -598 535 | -168 166 | -738 185 | -145 224 | -74 230 | -1 724 340 | |
| Depreciation | -16 155 | -6 300 | -77 079 | -18 899 | -70 808 | -189 241 | |
| Impairment **** | -2 531 | -653 | -4 683 | -7 868 | |||
| Aquisitions through business combinations |
-5 925 | -5 925 | |||||
| Disposal | 32 990 | 5 572 | 38 562 | ||||
| Change in RoU | 5 327 | 5 327 | |||||
| Effect of movements in exchange rates |
5 518 | 9 227 | 1 132 | 550 | 16 426 | ||
| Balance at 31 December 2020 | -609 172 | -174 467 | -781 504 | -158 072 | -143 844 | -1 867 059 | |
| Book value at 1 January 2020 | 204 091 | 143 448 | 5 038 | 211 585 | 416 355 | 253 511 | 1 234 027 |
| Book value at 31 December 2020 | 205 127 | 137 484 | 26 449 | 187 550 | 411 466 | 231 165 | 1 199 241 |
Amounts in NOK 1 000
* "CHP plants" refers to Cogen's combined heat and power plants.
** Impairment in 2019 is based partly on a revised value assessment of Cogen's CHP plants and partly a reduced value of EFD due to restructuring. *** Negative amount booked under Additions is due to governmental grant received after the initial booking of the asset. **** Impairment in 2020 is based a reduced value of EFD and Volue due to restructuring
Provision of security
As at 31 December 2020 operating assets in the subsidiaries with a book value of tNOK 74 414 (2019: tNOK 222 724 ) were pledged as security for bank loans (see Note 17).
| Vehicles, | |||||||
|---|---|---|---|---|---|---|---|
| Hydro | Under | machinery | Property, | ||||
| CHP | power | constru | and | Buildings | plant and | ||
| Parent Company | plants * | plants | ction | equipment | and land | RoU total | equipment |
| 2019 | |||||||
| Cost | |||||||
| Balance at 1 January 2019 | 307 150 | 5 804 | 9 169 | 8 320 | 330 442 | ||
| Additions | 933 | -1 680 | 1 852 | 1 105 | |||
| Disposal | -32 | -32 | |||||
| Transferd from under construction | -2 920 | 2 920 | |||||
| Reclassification | 3 564 | -3 564 | |||||
| Change in RoU | 7 640 | 7 640 | |||||
| Balance at 31 December 2019 | 311 614 | 1 204 | 13 941 | 4 756 | 7 640 | 339 155 | |
| Depreciation and impairment losses |
|||||||
| Balance at 1 January 2019 | -159 216 | -4 793 | -2 639 | -166 648 | |||
| Depreciation | -6 344 | -918 | -988 | -8 250 | |||
| Reclassification | -2 639 | 2 639 | |||||
| Disposal | 32 | 32 | |||||
| Balance at 31 December 2019 | -168 166 | -5 712 | -988 | -174 867 | |||
| Book value at 1 January 2019 | 147 934 | 5 804 | 4 374 | 5 681 | 163 793 | ||
| Book value at 31 December 2019 | 143 448 | 1 204 | 8 228 | 4 756 | 6 652 | 164 287 |
| Parent Company 2020 |
CHP plants |
Hydro power plants |
Under constru ction |
Vehicles, machinery and equipment |
Buildings and land |
RoU total | Property, plant and equipment |
|---|---|---|---|---|---|---|---|
| Cost | |||||||
| Balance at 1 January 2020 | 311 614 | 1 204 | 13 940 | 4 756 | 7 640 | 339 154 | |
| Additions | 337 | 1 762 | 2 098 | ||||
| Change in RoU | 14 936 | 14 936 | |||||
| Balance at 31 December 2020 | 311 951 | 2 966 | 13 940 | 4 756 | 22 576 | 356 188 | |
| Depreciation and impairment losses |
|||||||
| Balance at 1 January 2020 | -168 166 | -5 712 | -988 | -174 867 | |||
| Depreciation | -6 300 | -1 626 | -1 072 | -8 997 | |||
| Change in RoU | 111 | 111 | |||||
| Balance at 31 December 2020 | -174 467 | -7 338 | -1 949 | -183 753 | |||
| Book value at 1 January 2020 | 143 448 | 1 204 | 8 228 | 4 756 | 6 652 | 164 287 | |
| Book value at 31 December 2020 | 137 484 | 2 966 | 6 602 | 4 756 | 20 627 | 172 435 |
Amounts in NOK 1 000
| Other | ||||
|---|---|---|---|---|
| Group | Goodwill - input | intangible assets | Concessions | Total |
| 2019 | ||||
| Cost | ||||
| Balance at 1 January 2019 | 603 741 | 936 396 | 12 250 | 1 552 387 |
| Additions | -0 | 87 182 | 87 182 | |
| Aquisitions through business combinations |
9 902 | 9 902 | ||
| Reclassification to assets held for sale | -5 525 | -14 | -5 538 | |
| Disposal of companies and businesses | -1 617 | -23 749 | -25 366 | |
| Effect of movements in exchange rates | 3 372 | 55 916 | 59 288 | |
| Balance at 31 January 2019 | 609 874 | 1 055 732 | 12 250 | 1 677 855 |
| Amortization and impairment losses | ||||
| Balance at 1 January 2019 | -75 985 | -711 860 | -6 579 | -794 424 |
| Amortization | -63 775 | -245 | -64 020 | |
| Impairment | -1 495 | -1 495 | ||
| Disposal of companies and businesses | 1 601 | 62 | 1 663 | |
| Effect of movements in exchange rates | 3 089 | -51 771 | -48 683 | |
| Balance at 31 January 2019 | -72 790 | -827 345 | -6 824 | -906 959 |
| Book value at 1 January 2019 | 527 757 | 224 536 | 5 671 | 757 963 |
| Book value at 31 December 2019 | 537 084 | 228 387 | 5 426 | 770 897 |
| Group | Goodwill - input |
Other intangible |
assets Concessions | R & D | Intangible assets under de velopment |
Total |
|---|---|---|---|---|---|---|
| 2020 | ||||||
| Cost | ||||||
| Balance at 1 January 2020 | 609 874 | 1 055 732 | 12 250 | 1 677 855 | ||
| Additions | 1 476 | 17 777 | 95 094 | 46 | 114 393 | |
| Aquisitions through business combi nations |
132 500 | 66 680 | 199 179 | |||
| Reclassification | 500 | -407 830 | 366 505 | -40 825 | ||
| Effect of movements in exchange rates | -45 299 | -659 | 481 | -45 477 | ||
| Balance at 31 January 2020 | 699 050 | 731 700 | 12 250 | 462 079 | 46 | 1 905 125 |
| Amortization and impairment losses | ||||||
| Balance at 1 January 2020 | -72 790 | -827 345 | -6 824 | -906 959 | ||
| Amortization | 0 | -32 124 | -245 | -29 330 | -61 698 | |
| Impairment | -874 | -874 | ||||
| Aquisitions through business combi nations |
-11 388 | -11 388 | ||||
| Reclassification | 283 005 | -283 005 | ||||
| Effect of movements in exchange rates | 50 484 | 4 131 | 227 | 54 843 | ||
| Balance at 31 December 2020 | -23 180 | -583 720 | -7 069 | -312 107 | -926 076 | |
| Book value at 1 January 2020 | 537 084 | 228 387 | 5 426 | 770 897 | ||
| Book value at 31 December 2020 | 675 870 | 147 980 | 5 181 | 149 972 | 46 | 979 049 |
| Other | ||||
|---|---|---|---|---|
| Parent Company | Goodwill - input | intangible assets | Concessions | Total |
| 2019 | ||||
| Cost | ||||
| Balance at 1 January 2019 | 2 208 | 12 250 | 14 458 | |
| Additions | 494 | 494 | ||
| Balance at 31 December 2019 | 2 702 | 12 250 | 14 952 | |
| Amortization and impairment losses | ||||
| Balance at 1 January 2019 | -500 | -6 579 | -7 079 | |
| Amortization | -405 | -245 | -650 | |
| Balance at 31 December 2019 | -905 | -6 824 | -7 729 | |
| Book value at 1 January 2019 | 1 708 | 5 671 | 7 379 | |
| Book value at 31 December 2019 | 1 797 | 5 426 | 7 223 | |
| Other intangible |
Intangible assets under |
||||
|---|---|---|---|---|---|
| Parent Company | Goodwill - input | assets | Concessions | development | Total |
| 2020 | |||||
| Cost | |||||
| Balance at 1 January 2019 | 2 702 | 12 250 | 14 952 | ||
| Additions | 5 837 | 46 | 5 883 | ||
| Balance at 31 December 2019 | 8 539 | 12 250 | 46 | 20 835 | |
| Amortization and impairment losses | |||||
| Balance at 1 January 2019 | -905 | -6 824 | -7 729 | ||
| Amortization | -592 | -245 | -837 | ||
| Balance at 31 December 2019 | -1 497 | -7 069 | -8 566 | ||
| Book value at 1 January 2019 | 1 797 | 5 426 | 7 223 | ||
| Book value at 31 December 2019 | 7 042 | 5 181 | 12 268 |
| 2020 | Intang. assets | Goodwill | Concessions | R&D | Total |
|---|---|---|---|---|---|
| Intangible assets by company | |||||
| Arendals Fossekompani | 7 088 | 5 181 | 12 269 | ||
| Volue | 71 296 | 251 327 | 140 351 | 462 974 | |
| EFD Induction | 5 308 | 114 301 | 9 309 | 128 918 | |
| NSSLGlobal | 4 712 | 268 152 | 272 864 | ||
| Cogen Energia | 177 | 14 527 | 14 704 | ||
| Tekna | 56 084 | 312 | 56 396 | ||
| Property etc | 3 361 | 27 563 | 30 924 | ||
| Total intangible assets | 148 026 | 675 870 | 5 181 | 149 972 | 979 049 |
Intangible assets comprise capitalised development costs and licences for software as well as excess value associated with customer relationships, customer contracts, patents and trademarks. Concession rights in the parent company are amortised over the term of the concession (50 years). Other intangible assets are amortised over periods of 4 to 10 years.
Goodwill is tested annually for impairment (see accounting policies and Note 21). In this testing each segment/subgroup is assessed as a cash-generating unit. The recoverable amount of goodwill is estimated based on value in use. Estimated value in use is based on discounted future cash flows. These measure the cash flows based on market requirements of return and risk. Value in use for 2020 has been calculated in the same way as in 2019. Budgets have been used for 2021 and long-term budgets from strategy plans for the period up to 2025. In addition, a standard growth rate of 2% is applied up to 2029 and a terminal value is applied based on the same growth rate. The risk-free interest rate has been assessed separately for each company. A risk premium between 4,7 % and 6,3 % was in the calculations. Special circumstances relating to the individual calculations are commented on below.
Volue is listed on Euronext Growth and the value as per 31.12.2020 was tNOK 7.221.955 while the booked equity of the company as per 31.12.2020 is tNOK 808.833 The marked value can decrease by more than 88 % before an impairment my be needed.
The Required Rate of Return (WACC before tax) has been set to 9%. When calculating the WACC consideration is given to the fact that the company's earnings are in EUR and USD, and that the business is cyclical. The risk-free rate of return has been set to 0,8%. A sensitivity analysis based on a unilateral change in estimated future EBITDA shows that a reduction of more than 60% may lead to impairment. Equivalently a change in WACC from 9% to 18% may cause impairment.
The Required Rate of Return (WACC before tax) has been set to 8,5%. The risk-free rate of return has been set to 0,3%. When calculating the WACC consideration is given to the fact that the company's earnings are in GBP and USD. A sensitivity analysis based on a unilateral change in estimated future EBITDA shows that a reduction of more than 70% may lead to impairment. Equivalently a change in WACC from 8,5% to 45% may cause impairment.
The Required Rate of Return (WACC before tax) has been set to 10%. The risk-free rate of return has been set to 0,1%. A sensitivity analysis based on a unilateral change in estimated future EBITDA shows that a reduction of more than 44% may lead to impairment. Equivalently a change in WACC from 10% to 13% may cause impairment.
The Required Rate of Return (WACC before tax) has been set to 12%. The risk-free rate of return has been set to 0,9%. A sensitivity analysis based on a unilateral change in estimated future EBITDA shows that a reduction of more than 51% may lead to impairment. Equivalently a change in WACC from 12% to 17% may cause impairment.
For other cash-generating units in the AFK Group the impairment testing suggests significant excess value. Reasonable changes in the assumptions will not result in additional impairment losses.
Cogen did not receive free CO2 allowances (also known as European Union Allowances, or EUAs) for 2020. Actual emissions in 2020 were 137 005 tons vs. 203 828 tons in 2019. As of 31.12.2020, CO2 allowances covering emissions of 70 000 tons had been purchased. Purchases in 2019 amounted to 53 418 tons. The remaining allowances needed for 2020 will be purchased in 2021. Accrued expenses of MEUR 2,8 (for 2019 MEUR 3,7) have been recognized associated with the purchasing of CO2 allowances.
In 2020 development costs of NOK 99,909,000 were capitalized (2019 NOK 40,382,000). Other research and development costs in the Group are expensed as they arise and amounted to NOK 92.512,000 in 2020 and NOK 139,520,000 in 2019.
A breakdown of the allocation of intangible assets between the companies is provided below.
| GROUP | PARENT COMPANY | |||
|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |
| Other operating cost | ||||
| Maintenance property, plant and equipment | 19 730 | 31 581 | 3 713 | 7 771 |
| Loss sales of other non-current assets | 145 | |||
| Premises, service and office costs | 60 875 | 42 587 | 1 193 | 1 085 |
| Audit and other fees | 50 449 | 46 427 | 12 771 | 10 341 |
| Consession fees | 2 886 | 3 244 | 2 886 | 2 886 |
| Company cars, lifts and trucks | 10 168 | 322 | ||
| Travelling costs, indirect | 10 467 | 77 066 | 672 | 1 025 |
| Sales and marketing costs | 15 381 | 26 086 | 1 006 | 543 |
| Manufacturing indirect costs | 27 267 | 4 229 | ||
| Other operating costs (Misc.) | 14 545 | 79 566 | 4 744 | 7 062 |
| Insurances | 23 325 | 26 878 | 1 809 | 1 372 |
| ICT costs | 58 711 | 48 361 | 4 468 | 3 337 |
| Property tax | 10 175 | 14 337 | 4 492 | 4 186 |
| R&D costs | 3 137 | |||
| Bad debts | 10 001 | 2 423 | ||
| Operating costs, IC | 1 682 | |||
| Restructuring | 35 914 | 28 175 | ||
| Other direct costs | 75 376 | 40 871 | ||
| Total other operating cost | 428 553 | 467 604 | 43 988 | 39 607 |
| Remuneration to auditor | ||||
| Statutory audit | 8 489 | 8 391 | 605 | 576 |
| Other assurance services | 601 | 459 | 10 | 16 |
| Tax advice | 1 129 | 1 047 | 422 | 53 |
| Other non-audit services | 8 907 | 4 442 | 3 141 | 594 |
| Total remuneration to auditor | 19 126 | 14 339 | 4 179 | 1 239 |
Amounts in NOK 1 000
| GROUP | PARENT COMPANY | |||
|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |
| Finance income | ||||
| Interest Income, IC | 9 393 | 9 129 | ||
| Interest income | 16 029 | 13 551 | 5 457 | 7 899 |
| Currency exchange income (net) | 28 571 | 14 104 | 20 306 | 8 213 |
| Other finance income | 3 934 | 31 528 | 929 | 247 |
| Gain on partial sale of subsidiaries | 196 | 441 396 | ||
| Dividend income | 10 448 | 27 676 | 10 448 | 27 676 |
| Dividend income, IC | 133 891 | 111 136 | ||
| Total finance income | 58 982 | 87 056 | 621 822 | 164 300 |
| Finance cost | ||||
| Interest expense | 61 677 | 53 507 | 36 392 | 31 087 |
| Interest expense cashpool | 1 845 | |||
| IFRS 16 interest | 8 806 | 217 | ||
| Currency exchange expense (net) | 34 328 | 10 785 | 15 023 | 3 298 |
| Other finance cost | 4 970 | 11 514 | 1 987 | 1 742 |
| Impairment loss on subs | 10 830 | 10 887 | ||
| Translation differences | -28 | |||
| Finance cost | 111 597 | 75 807 | 64 449 | 47 014 |
| Net financial items | -52 614 | 11 249 | 557 372 | 117 286 |
* Other finance income in the Group for 2019 consist of "gain" connected to acqusition in Cogen (reference is made to note 3) and the effect of reclassification of NorSun from equity company into otger investments (reference is made to note 11).
| GROUP | PARENT COMPANY | |||
|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |
| Current tax expense | ||||
| Natural resource tax for the year | 6 740 | 6 796 | 6 740 | 6 796 |
| Tax payable on general income less natural resource tax | 64 167 | 79 788 | -6 740 | 2 889 |
| Adjustment for previous years | -2 514 | -19 276 | -349 | 51 |
| Resource rent tax payable for the year | 49 904 | 49 904 | ||
| Total current tax | 68 392 | 117 212 | -349 | 59 639 |
| Deferred tax expense | ||||
| Effect of change in temporary differences | -24 966 | 32 169 | -14 930 | 15 512 |
| Effect of changed tax rate | -1 617 | 464 | ||
| Effect of change in temporary differences, resource rent tax | -2 427 | 1 081 | -2 427 | 1 081 |
| Total deferred tax expense | -29 010 | 33 715 | -17 357 | 16 593 |
| Total tax expense in the income statement | 39 382 | 150 927 | -17 706 | 76 233 |
| Reconciliation of effective tax rate | ||||
| Total pre tax income | 120 714 | 242 543 | 502 383 | 237 746 |
| Tax based on current ordinary tax rate | 26 557 | 53 360 | 110 524 | 52 304 |
| Resource rent tax for the year | -2 427 | 50 985 | -2 427 | 50 985 |
| Effect of different tax rates abroad | 8 762 | 4 861 | 3 509 | |
| Effect of non-deductible expenses | 2 963 | 4 492 | 3 724 | |
| Effect of non-taxable income | -1 146 | -12 863 | -129 106 | 113 |
| Effect of unrecognised tax loss carryforward | 10 433 | 35 822 | ||
| Effect of changed tax rates | -4 684 | 1 653 | -72 |
Ordinary income tax on general income. The tax rate was 22% in 2019 and 2020. The 22% tax rate was used to calculate Deferred tax assets and Deferred tax liabilities as at 31 December 2020.
Special tax rules for Norwegian energy companies comprise the following elements:
Natural resource tax of 1.3 øre per kWh of the company's average annual production in the past 7 years. Estimated natural resource tax is deducted from the company's tax payable on general income. Natural resource tax still has to be paid in years when no tax is calculated as being payable. The amount is recognised as a receivable and is offset against tax payable on general income in subsequent years. Natural resource tax accrues to the municipalities and counties in the concession area.
Resource rent tax is determined for each individual power station and accrues to The state. This tax is based on gross resource rent income less operating costs and tax-free allowances. Resource rent income is based on market prices and therefore differs from the company's recognised sales figures. The tax rate for resource rent tax was 37% in 2019 and 2020. The 37% tax rate has been used to calculate Deferred resource rent tax assets as at 31 December 2020.
Tax payable of tNOK 53 682 (2019: tNOK 111 247 ) for the Group and tNOK 6 740 (2019: tNOK 56 699) for the parent company consists of unassessed tax payable for the current period.
| GROUP | PARENT COMPANY | |||
|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |
| Effect of changed tax assessments for previous years | 713 | -1 158 | ||
| Over-/underprovision relating to previous years | -1 789 | 13 776 | -349 | 51 |
| Tax expense in reconciliation of effective tax rate | 39 382 | 150 927 | -17 706 | 76 233 |
| Current ordinary tax rate in Norway | 22,0 % | 22,0 % | 22,0 % | 22,0 % |
| Effective tax rate | 38,2 % | 62,2 % | -3,5 % | 32,1 % |
| Tax recognised in other comprihensive income (OCI) | ||||
| Tax on OCI that may be reclassified to P&L | -2 032 | -6 303 | ||
| Tax on OCI that will not be reclassified to P&L | 8 076 | 1 553 | -1 018 | 639 |
| Total tax recognised in OCI | 6 045 | -4 751 | -1 018 | 639 |
| ASSETS | LIABILITIES | NET | ||||
|---|---|---|---|---|---|---|
| Group | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 |
| Property, plant and equipment | 34 161 | 38 495 | -46 964 | -36 387 | -12 803 | 2 108 |
| Goodwill, intangible assets | -298 | -21 900 | -31 079 | -22 198 | -31 079 | |
| Construction contracts | 1 441 | -5 046 | -1 833 | -5 046 | -393 | |
| Inventories | 11 315 | 6 480 | -26 | -42 | 11 289 | 6 438 |
| TradeTrade and other receivables | 1 042 | 1 039 | -99 | 1 042 | 940 | |
| Leases | 12 947 | 2 495 | -89 | -4 830 | 12 858 | -2 335 |
| Untaxed gains and losses | 869 | 1 087 | -14 | -17 | 855 | 1 069 |
| Provisions | 9 214 | 6 399 | -187 | -74 | 9 027 | 6 325 |
| Other assets | 463 | 6 886 | -8 105 | -4 564 | -7 642 | 2 322 |
| Financial instruments | 28 557 | 21 033 | -1 573 | -4 076 | 26 984 | 16 957 |
| Employee benefits | 3 415 | 3 818 | -1 597 | -1 498 | 1 818 | 2 320 |
| Tax loss carryforward | 158 149 | 169 450 | 12 718 | 170 867 | 169 450 | |
| Unrecognised tax loss carryforward | -117 405 | -137 549 | -12 458 | -129 863 | -137 549 | |
| Recognised tax loss carryforward | 40 744 | 31 901 | 260 | 41 004 | 31 901 | |
| Total deferred ordinary income tax | 142 430 | 121 073 | -85 242 | -84 499 | 57 188 | 36 575 |
| PPE, resource rent tax | 28 303 | 29 210 | 28 303 | 29 210 | ||
| Losses carried forward - Resource rent | 3 334 | 3 334 | ||||
| Total deferred resource rent tax | 31 637 | 29 210 | 31 637 | 29 210 | ||
| Deferred tax asset/liability | 174 067 | 150 283 | -85 242 | -84 499 | 88 825 | 65 785 |
| Offsetting of assets and liabilities | -23 892 | -25 626 | 23 892 | 25 626 | ||
| Net deferred tax asset/liability | 150 175 | 124 658 | -61 350 | -58 873 | 88 825 | 65 785 |
| ASSETS | LIABILITIES | NET | ||||
|---|---|---|---|---|---|---|
| Parent Company | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 |
| Property, plant and equipment | 16 704 | 17 199 | 16 704 | 17 199 | ||
| Leases | 4 | 24 | 4 | 24 | ||
| Gains and losses account | 106 | 132 | 106 | 132 | ||
| Financial instruments | 23 506 | 20 201 | 23 506 | 20 201 | ||
| Employee benefits | 638 | -533 | -533 | 638 | ||
| Tax loss carryforward | 12 246 | 12 246 | ||||
| Unrecognised tax loss carryforward | ||||||
| Recognised tax loss carryforward | 12 246 | 12 246 | ||||
| Total deferred ordinary income tax | 52 566 | 38 193 | -533 | 52 033 | 38 193 | |
| PPE, resource rent tax | 28 303 | 29 210 | 28 303 | 29 210 | ||
| Losses carried forward - Resource rent | 3 334 | 3 334 | ||||
| Total deferred resource rent tax | 31 637 | 29 210 | 31 637 | 29 210 | ||
| Deferred tax asset/liability | 84 204 | 67 403 | -533 | 83 670 | 67 403 | |
| Offsetting of assets and liabilities | -533 | 533 | ||||
| Net deferred tax asset/liability | 83 670 | 67 403 | 83 670 | 67 403 |
| Group | 2019 | |||||||
|---|---|---|---|---|---|---|---|---|
| Total | Changes in Net Income |
Reclassifi cation |
From OCI | Change in tax loss carry-for ward |
Change held for sale |
Foreign Exchange |
Closing Balance |
|
| Ordinary income tax | ||||||||
| Property, plant and equipment | -5 263 | 6 452 | 95 | 523 | 2 071 | |||
| Goodwill, intangible assets | -28 090 | -1 906 | -1 083 | -31 079 | ||||
| Construction contracts | -23 122 | 1 817 | 5 771 | 5 | -393 | |||
| Inventories | 6 238 | 253 | -53 | 6 438 | ||||
| Overdue receivables | 675 | 270 | -4 | 940 | ||||
| Leases | 2 513 | -4 821 | -27 | -2 335 | ||||
| Gains and losses account | 1 479 | -267 | -114 | 1 069 | ||||
| Provisions | 8 417 | -2 513 | 465 | -39 | 6 330 | |||
| Other items | 409 | 2 687 | -652 | -68 | 2 322 | |||
| Financial instruments | 25 101 | -1 807 | -6 303 | -33 | 16 957 | |||
| Employee benefits | 4 020 | -2 762 | -465 | 1 553 | -37 | 2 308 | ||
| Tax loss carryforward | 50 718 | -30 037 | 14 366 | -536 | 125 | 31 945 | ||
| Total ordinary income tax | 43 094 | -32 634 | -4 751 | 14 366 | 4 564 | -693 | 36 575 | |
| Property, plant and equipment | 30 291 | -1 081 | 29 210 | |||||
| Loss carried forward - Resource rent |
||||||||
| Total resource rent tax | 30 291 | -1 081 | 29 210 | |||||
| Total change in deferred tax |
73 385 | -33 715 | -4 751 | 14 366 | 4 564 | -693 | 65 785 |
| Group 2020 |
||||||||
|---|---|---|---|---|---|---|---|---|
| Total Opening Balance |
Changes in Net Income |
Reclassifi cation |
From OCI | Change in tax loss carry-for ward |
Mergers and acquisiti ons |
Foreign Exchange |
Closing Balance |
|
| Ordinary income tax | ||||||||
| Property, plant and equipment |
2 071 | 234 | -14 959 | 8 | -157 | -12 803 | ||
| Goodwill, intangible assets |
-31 079 | 5 843 | 11 943 | -868 | -8 034 | 64 | -22 131 | |
| Construction contracts | -393 | -1 103 | -3 558 | 7 | -5 046 | |||
| Inventories | 6 438 | -2 359 | 7 354 | -145 | 11 289 | |||
| Overdue receivables | 940 | 14 | 87 | 11 | -10 | 1 042 | ||
| Leases | -2 335 | 5 258 | 9 953 | -18 | 12 858 | |||
| Gains and losses account |
1 069 | -214 | 855 | |||||
| Provisions | 6 330 | 870 | 2 025 | -198 | 9 027 | |||
| Other items | 2 322 | 2 377 | -11 407 | -1 129 | 127 | -7 710 | ||
| Financial instruments | 16 957 | 3 427 | -288 | 7 062 | -175 | 26 984 | ||
| Employee benefits | 2 308 | 460 | 83 | -1 018 | -16 | 1 818 | ||
| Tax loss carryforward | 31 945 | 11 767 | -1 234 | -1 621 | 147 | 41 004 | ||
| Total ordinary income tax |
36 575 | 26 575 | 0 | 6 045 | -2 489 | -9 144 | -373 | 57 188 |
| Property, plant and equipment |
29 210 | -907 | 28 303 | |||||
| Loss carried forward - Resource rent |
3 334 | 3 334 | ||||||
| Total resource rent tax |
29 210 | 2 427 | 31 637 | |||||
| Total change in deferred tax |
65 785 | 29 002 | 0 | 6 045 | -2 489 | -9 144 | -373 | 88 825 |
| Parent Company | 2019 | 2019 | |||
|---|---|---|---|---|---|
| Total Opening Balance |
Changes in Net Income |
From OCI | Change in tax loss carry-forward |
Closing Balance |
|
| Ordinary income tax | |||||
| Property, plant and equipment | 17 993 | -794 | 17 199 | ||
| Leases | 24 | 24 | |||
| Gains and losses account | 165 | -33 | 132 | ||
| Financial instruments | 22 008 | -1 807 | 20 201 | ||
| Employee benefits | 273 | -274 | 639 | 638 | |
| Tax loss carryforward | 20 803 | -12 628 | -8 175 | ||
| Total ordinary income tax |
61 242 | -15 512 | 639 | -8 175 | 38 193 |
| Property, plant and equipment | 30 291 | -1 081 | 29 210 | ||
| Loss carried forward - Resource rent |
|||||
| Total resource rent tax |
30 291 | -1 081 | 29 210 | ||
| Total change in deferred tax |
91 533 | -16 593 | 639 | -8 175 | 67 403 |
| Parent Company | 2020 | 2020 | |||
|---|---|---|---|---|---|
| Total Opening Balance |
Changes in Net Income |
From OCI | Change in tax loss carry-forward |
Closing Balance |
|
| Ordinary income tax | |||||
| Property, plant and equipment | 17 199 | -495 | 16 704 | ||
| Leases | 24 | -19 | 4 | ||
| Gains and losses account | 132 | -26 | 106 | ||
| Financial instruments | 20 201 | 3 305 | 23 506 | ||
| Employee benefits | 638 | -154 | -1 018 | -533 | |
| Tax loss carryforward | 12 319 | -72 | 12 246 | ||
| Total ordinary income tax | 38 193 | 14 930 | -1 018 | -72 | 52 033 |
| Property, plant and equipment | 29 210 | -907 | 28 303 | ||
| Loss carried forward - Resource rent |
3 334 | 3 334 | |||
| Total resource rent tax | 29 210 | 2 427 | 31 637 | ||
| Total change in deferred tax | 67 403 | 17 357 | -1 018 | -72 | 83 670 |
| SHARE CAPITAL ORDINARY SHARES |
||||
|---|---|---|---|---|
| Issued as at 31 December – fully paid up | 2020 | 2019 | ||
| 55 995 250 | 2 239 810 | |||
| 55 995 250 | 2 239 810 |
During 2020 the number of shares and the share value have been changed from 2.239.810 shares with a value of NOK 100 per share into 55.995.250 shares with a value of NOK 4 per share. Each share was devided into 25 new shares in the Company.
Owners of shares are entitled to the dividend approved in each individual case by the general meeting, and are entitled to one vote per share at the company's general meeting. No shareholder may personally or by proxy vote for more than a quarter of the total number of shares. Shares transferred to a new owner do not confer voting rights until at least three weeks have passed since the acquisition was notified to the company. The rights to the company's treasury shares (see Note 22) are suspended until the shares have been acquired by others.
In 2020 the Company has paid dividend quarterly starting from second quarter. For the second quarter MNOK 30.721 and for the third quarter MNOK 35.124 was paid. An exstraordinary dividend amounting to NOK 29,20 per share was proposed by the Board of Directors after the balance sheet date. No provision has been made for the proposed exstraordinary dividend and there are no tax consequences. No dividend is paid on own shares.
| ORDINARY DIVIDEND | |||||
|---|---|---|---|---|---|
| Proposal for e. o. dividend, to be paid out in 2021 |
Approved 2020 and paid in 2020 |
Approved in 2019, paid out in 2020 |
|||
| Ordinary cash dividend 2019: NOK 2,24 per share Quarterly dividend paid in 2020 Exstraordinary Cash dividend: NOK 29,20 per share |
1 602 614 | 65 845 | 122 848 | ||
| Total | 1 602 614 | 65 845 | 122 848 |
| Subsidiaries | DOMICILE | SHAREHOLDING | NON-CONTROLLING INTE RESTS' SHARE OF EQUITY, BY SUBGROUP |
VALUE IN PARENT COMPANY BALANCE SHEET |
|||
|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||
| Volue AS | Oslo | 75,7 % | 100,0 % | 182 920 | 382 648 | ||
| Powel AS | Trondheim | 96,7 % | 5 303 | 310 265 | |||
| Wattsight AS | Arendal | 90,5 % | 2 846 | 39 921 | |||
| Markedskraft AS | Arendal | 96,7 % | 1 718 | 56 050 | |||
| Scanmatic AS | Arendal | 69,0 % | 30 575 | 7 966 | |||
| NSSLGlobal Ltd | UK | 80,0 % | 80,0 % | 84 841 | 83 262 | 273 298 | 273 298 |
| EFD Induction AS | Skien | 98,7 % | 97,8 % | 4 984 | 4 236 | 432 701 | 433 379 |
| Tekna Holdings Canada Inc. | Canada | 100,0 % | 100,0 % | 381 848 | 244 654 | ||
| Cogen Energia España S.L. | Spain | 100,0 % | 100,0 % | 11 158 | 4 760 | 90 699 | 90 699 |
| Alytic AS | Arendal | 100,0 % | 0,0 % | 10 671 | 50 000 | ||
| Tekna Holding AS (AFK AS) | Arendal | 100,0 % | 0,0 % | 100 | |||
| AFK Property AS | Arendal | 100,0 % | 0,0 % | 113 | 113 | ||
| Arendal Lufthavn Gullknap AS | Froland | 92,0 % | 91,5 % | 7 671 | 8 160 | 90 027 | 87 680 |
| Bedriftsveien 17 AS | Arendal | 100,0 % | 100,0 % | 12 837 | 12 837 | ||
| Steinodden Eiendom AS | Arendal | 77,6 % | 77,6 % | 750 | 750 | 7 734 | 7 733 |
| Songe Træsliperi AS | Risør | 50,8 % | 50,8 % | 26 | 26 | 100 | 100 |
| Vindholmen Eiendom AS | Arendal | 100,0 % | 100,0 % | 73 250 | 73 250 | ||
| Total | 303 021 | 141 636 | 1 795 354 | 1 637 945 |
| Subsidiaries | SHAREHOLDING | |||
|---|---|---|---|---|
| 2020 | 2019 | |||
| Subsidiaries in Volue AS | Oslo | Norway | ||
| Subsidiaries in Volue Technology AS (Powel AS) | Trondheim | Norway | ||
| Volue Technology Denmark A/S (Powel Danmark AS) | Odense | Denmark | 100,0 % | 100,0 % |
| Volue AB (Powel AB) | Jönköping | Sweden | 100,0 % | 100,0 % |
| Volue AG (Powel AG) | Basel | Switzerland | 100,0 % | 100,0 % |
| Volue Enerji Cözümleri (Powel Enerji Cözümleri) | Istanbul | Turkey | 100,0 % | 100,0 % |
| Volue Sp. z.o.o. (Powel Sp. z.o.o.) | Gdansk | Poland | 100,0 % | 100,0 % |
| Volue Construction AS (Powel Construction AS) | Trondheim | Norway | 100,0 % | 100,0 % |
| Volue Environment AS (Powel Environment AS) | Trondheim | Norway | 100,0 % | 100,0 % |
| Volue Gmbh (Powel Gmbh) | Dusseldorf | Germany | 100,0 % | 100,0 % |
| Subsidiaries in Volue Industrial IOT AS (Scanmatic AS) | Arendal | Norway | ||
| Scanmatic Electro AS | Arendal | Norway | 0,0 % | 51,0 % |
| Volue Denmark ApS | Denmark | 100,0 % | 0,0 % | |
| Volue in Situ AB (Scanmatic in Situ AB) | Åkersberga | Sweden | 100,0 % | 100,0 % |
| Volue Instrument Technology AS (Scanmatic Instr. Tech. AS) | Ås | Norway | 100,0 % | 100,0 % |
| Subsidiaries in Volue Market Service AS | Arendal | Norway | ||
| Volue Market Services (Markedskraft) | Stockholm | Sweden | 100,0 % | 100,0 % |
| Volue Market Services (Markedskraft) | Aarhus | Denmark | 100,0 % | 100,0 % |
| Volue Market Services (Markedskraft) | Helsingfors | Finland | 100,0 % | 100,0 % |
| Subsidiaries in Volue Insight AS (Wattsight AS) | Arendal | Norway | ||
| Volue Insight GmbH (Wattsight GmbH) | Berlin | Germany | 100,0 % | 100,0 % |
| Likron GmbH | Germany | 100,0 % | 0,0 % | |
| Subsidiaries in NSSLGlobal Ltd. | London | UK | ||
| NSSLGlobal LLC | New Orleans | USA | 100,0 % | 100,0 % |
| NSSLGlobal PTY Ltd. | South Africa | 0,0 % | 100,0 % | |
| NSSLGlobal PTE Ltd | Singapore | Singapore | 100,0 % | 100,0 % |
| Nera Satellite Services LTD | London | UK | 100,0 % | 100,0 % |
| NSSL Ltd | London | UK | 100,0 % | 100,0 % |
| Aero-Satcom Ltd. | London | UK | 50,0 % | 50,0 % |
| Marine Electronic Solutions Ltd. | London | UK | 100,0 % | 100,0 % |
| NSSLGlobal Technologies AS | Oslo | Norway | 100,0 % | 100,0 % |
| NSSLGlobal Continental Europe APS | Brøndby | Denmark | 100,0 % | 100,0 % |
| NSSLGlobal APS | Brøndby | Denmark | 100,0 % | 100,0 % |
| NSSLGlobal Polska SP. Z.o.o. | Warzsawa | Poland | 100,0 % | 100,0 % |
| NSSLGlobal Israel Ltd | Israel | 100,0 % | 100,0 % | |
| NSSLGlobal Kabushiki Kaisha | Japan | 100,0 % | 100,0 % | |
| NSSLGlobal GmbH | Barbüttel | Germany | 100,0 % | 100,0 % |
| NSSLGlobal Distribution GmbH | Barbüttel | Germany | 100,0 % | 100,0 % |
| ESS Hanika GmbH | Barbüttel | Germany | 100,0 % | 100,0 % |
| Subsidiaries | SHAREHOLDING | |||||
|---|---|---|---|---|---|---|
| 2020 | 2019 | |||||
| Subsidiaries in EFD Induction Group AS | ||||||
| EFD Induction a.s | Skien | 100,0 % | 100,0 % | |||
| EFD Induction GmbH | Freiburg | Germany | 100,0 % | 100,0 % | ||
| EFD France Holding Eurl | Grenoble | France | 100,0 % | 100,0 % | ||
| EFD Induction Ltd. | Wolverhamp | UK | 100,0 % | 100,0 % | ||
| ton | ||||||
| EFD Induction Inc. | Detroit | USA | 100,0 % | 100,0 % | ||
| EHE Acquisition Corporation Inc | Detroit | USA | 100,0 % | 100,0 % | ||
| EFD Induction ab | Västerås | Sweden | 100,0 % | 100,0 % | ||
| EFD Induction s.r.l | Milano | Italy | 100,0 % | 100,0 % | ||
| EFD Induction Ltd. | Bangalore | India | 100,0 % | 100,0 % | ||
| EFD Induction (Shanghai) Co., Ltd. | Shanghai | China | 100,0 % | 100,0 % | ||
| EFD Induction Ges.m.b.H | Wien | Austria | 100,0 % | 100,0 % | ||
| EFD Induction s.l | Bilbao | Spain | 100,0 % | 100,0 % | ||
| Inductro SRL | Bucuresti | Romania | 100,0 % | 100,0 % | ||
| EFD Induction SP. Z o.o | Gliwice | Poland | 100,0 % | 100,0 % | ||
| EFD Induction Co., Ltd | Bangkok | Thailand | 100,0 % | 100,0 % | ||
| EFD Induction S.A | Grenoble | France | 100,0 % | 100,0 % | ||
| EFD Induction Marcoussis S.A | Paris | France | 100,0 % | 100,0 % | ||
| EFD Induction K.K. | Yokohama | Japan | 100,0 % | 100,0 % | ||
| EFD Inducao Brasil Ltd | Sao Paolo | Brazil | 100,0 % | 100,0 % | ||
| EFD Induction Oil & Gas Service | Pinang | Malaysia | 100,0 % | 100,0 % | ||
| EFD Induction Sdn. Bhd. | Malaysia | 100,0 % | 100,0 % | |||
| EFD Induction S de R.L | Queretaro | Mexico | 100,0 % | 100,0 % | ||
| Subsidiaries in Tekna Holdings Canada Inc. | ||||||
| Tekna Plasma Systems Inc. | Sherbrooke | Canada | 100,0 % | 100,0 % | ||
| Tekna Advanced Materials Inc. | Sherbrooke | Canada | 100,0 % | 100,0 % | ||
| Tekna Plasma Europe S.A.S. | Mâcon | France | 100,0 % | 100,0 % | ||
| Tekna Plasma Systems(Suzhou)Co Ltd. | Suzhou | China | 100,0 % | 100,0 % | ||
| Tekna Plasma India Private Ltd. | Chennai | India | 100,0 % | 100,0 % | ||
| Tekna Plasma Korea Co, Ltd | Incheon | South Korea | 100,0 % | 100,0 % | ||
| Subsidiaries | SHAREHOLDING | |||
|---|---|---|---|---|
| 2020 | 2019 | |||
| Subsidiaries in Cogen Energia España S.L. | ||||
| Tortosa Energia SA | Tortosa | Spain | 94,0 % | 94,0 % |
| Cogen Eresma SL | Segovia | Spain | 89,9 % | 89,9 % |
| Incogen S.A | Navarra | Spain | 100,0 % | 100,0 % |
| Cogen Gestion Intergral S.L. | Madrid | Spain | 100,0 % | 100,0 % |
| Energy by Cogen S.L.U. | Madrid | Spain | 100,0 % | 100,0 % |
| Create Energy UK Ltd. | Cornwall | UK | 100,0 % | 100,0 % |
| Ecoenergia Sistemas Alternativos S.L. | Navarra | Spain | 100,0 % | 100,0 % |
| Papertech Energia SL | Pamplona | Spain | 50,0 % | 50,0 % |
| Cogen Biomass, S.L. | Madrid | Spain | 100,0 % | 0,0 % |
| Subsidiaries in Alytic AS | ||||
| Kontali Holding AS | Arendal | Norway | 100,0 % | 0,0 % |
| Kontali Analyse AS | Kristiansund | Norway | 71,0 % | 0,0 % |
| Seafood TIP | Utrecht | Netherlands | 100,0 % | 0,0 % |
| Monaqua AS | Kristiansund | Norway | 100,0 % | 0,0 % |
| Total investments in associates |
23 743 | -14 321 | 9 422 | 77 177 | |||
|---|---|---|---|---|---|---|---|
| Flumill AS** | 21,7 % | 0 | 0 | 53 434 | |||
| ImphyTek Powders SAS | Aerospace | 50,0 % | 23 743 | -14 321 | 9 422 | 23 743 | |
| Unit | Industry | Shareholding | Carrying amount at 1 Jan |
Shares purchased |
Share of profit/loss |
Carrying amount, Group 31 Dec |
Cost, 31 Dec |
| Unit | Sales | Profit/loss for the year |
Non-current assets |
Current assets |
Current liabilities |
Equity |
|---|---|---|---|---|---|---|
| ImphyTek Powders SAS | 606 | -17 548 | 11 847 | 15 681 | -44 247 | -16 719 |
| Flumill AS | ||||||
| Total investments in associates |
606 | -17 548 | 11 847 | 15 681 | -44 247 | -16 719 |
** The investment in Flumill AS has been fully written off and the share of its profit/loss for the year is therefore not included in AFK's results.
| GROUP | PARENT COMPANY | ||||
|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | ||
| Long-term investments | |||||
| Loans to employees | 42 048 | 9 252 | 10 592 | 8 658 | |
| Contributions to company pension plan | 27 000 | 27 000 | 27 000 | 27 000 | |
| Natural resource tax receivable | 80 066 | 72 036 | 80 066 | 72 036 | |
| Other non-current receivables | 101 128 | 35 774 | 619 | 444 | |
| Other investments | 145 096 | 91 857 | 108 286 | 89 816 | |
| Total long-term investments | 395 337 | 235 919 | 226 563 | 197 954 |
All loans to employees incur interest at a rate that never triggers a taxable benefit. The loans are repaid over 5 years (vehicles) or 20 years (housing). Loans exceeding NOK 200,000 are secured by mortgages on property or shares.
| aw materials) |
|---|
| Vork in progress |
| pare parts |
| inished goods |
| otal inventories (net after provision for obsolescence) |
| GROUP | ||
|---|---|---|
| 2020 | 2019 | |
| Raw materials | 116 485 | 119 101 |
| Work in progress | 364 968 | 187 655 |
| Spare parts | 38 634 | 39 312 |
| Finished goods | 160 799 | 121 618 |
| Total inventories (net after provision for obsolescence) | 680 885 | 467 686 |
| Provision for obsolete | 50 281 | 57 548 |
The subsidiaries EFD Induction, Powel, Tekna and Scanmatic recognise construction contracts in accordance with percentage of completion method. At year-end these subsidiaries had the following carrying amounts associated with construction contracts and projects in progress:
| GROUP | |||
|---|---|---|---|
| 2020 | 2019 | ||
| Contracts with at-delivery billing | |||
| Booked income | 244 008 | 272 866 | |
| Payments recieved | -83 308 | -167 215 | |
| Contract assets | 160 700 | 105 651 | |
| Contracts with advance billing | |||
| Payments recieved | 181 928 | 180 643 | |
| Booked income | -28 746 | -64 531 | |
| Contract obligations | 153 183 | 116 112 | |
| Net contract assets / - liabilities | 7 517 | -10 461 |
| GROUP | ||||
|---|---|---|---|---|
| 2020 | 2019 | |||
| Booked income from uncompleted contracts per 31.12 | ||||
| Booked accrued income per 31.12 | 311 443 | 233 996 | ||
| Booked accrued expenses per 31.12 | -300 411 | -219 801 | ||
| Reported margin per 31.12 | 11 032 | 14 195 |
| GROUP | ||||
|---|---|---|---|---|
| 2020 | 2019 | |||
| Remaining income from running settlement contracts | ||||
| Within one year | 174 222 | 372 287 | ||
| Between one and two years | 10 094 | 112 526 | ||
| More than two years | 15 816 | |||
| Remaining income (running settlement) | 184 316 | 500 629 |
Amounts in NOK 1 000
| GROUP | PARENT COMPANY | ||||
|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | ||
| Trade accounts receivables | 719 328 | 787 567 | 1 223 | 869 | |
| Receivables, IC | 205 | 154 906 | 122 505 | ||
| Other receivables and prepayments | 148 686 | 141 036 | 2 031 | 597 | |
| Effect of hedging of currency and gas / electric power | 25 088 | 16 419 | |||
| Trade receivables | 893 307 | 945 022 | 158 159 | 123 971 |
| GROUP | PARENT COMPANY | ||||
|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | ||
| Cash and cash equivalents | 1 757 706 | 1 171 777 | 765 641 | 498 789 | |
Note 16 Financial risk management / financial instruments
Amounts in NOK 1 000
| GROUP | PARENT COMPANY | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | ||||||
| Book value |
Fair value |
Book value |
Fair value |
Book value |
Fair value |
Book value |
Fair value |
||
| Assets | |||||||||
| Trade and other receivables such as derivatives |
* | 868 219 | 868 219 | 928 602 | 928 602 | 13 519 | 13 519 | 21 431 | 21 431 |
| Cash and cash equivalents | * | 1 757 706 1 757 706 1 171 777 1 171 777 | 765 641 | 765 641 | 498 789 | 498 789 | |||
| Financial assets at fair value through OCI |
* | 734 973 | 734 973 | 895 545 | 895 545 | 734 973 | 734 973 | 895 545 | 895 545 |
| Financial assets clas. as held for sale |
10 000 | 10 000 | 10 150 | 10 150 | |||||
| Other receivables and investments |
* | 395 337 | 395 337 | 235 915 | 235 915 | 226 563 | 226 563 | 197 954 | 197 954 |
| Contract assets | * | 160 700 | 160 700 | 105 651 | 105 651 | ||||
| Loans to Group companies | * | 0 | 286 817 | 286 817 | 394 943 | 394 943 | |||
| Derivatives, included in trade receivables |
25 088 | 25 088 | 16 419 | 16 419 | |||||
| Liabilities | |||||||||
| Derivatives, interest and currency swaps |
106 847 | 106 847 | 92 587 | 92 587 | 106 847 | 106 847 | 92 587 | 92 587 | |
| Derivative liabilities, included in trade payables |
28 205 | 28 205 | 9 847 | 9 847 | |||||
| Interest-bearing loans and borrowings |
* | 900 291 | 900 291 | 404 155 | 404 155 | 216 773 | 216 773 | 133 133 | 133 133 |
| Bond loans | 299 912 | 306 752 | 299 735 | 312 330 | 299 912 | 306 752 | 299 735 | 312 330 | |
| RoU liabilities | * | 241 200 | 241 200 | 265 721 | 265 721 | 20 645 | 20 645 | 6 759 | 6 759 |
| Trade and other payables | * | 679 537 | 679 537 | 601 304 | 601 304 | 17 867 | 17 867 | 23 668 | 23 668 |
| Other current liabilities | * | 469 551 | 469 551 | 441 359 | 441 359 | 12 957 | 12 957 | 12 066 | 12 066 |
| Liabilities to Group companies | * | 0 | 0 | 0 | 0 | 28 921 | 28 921 | 52 801 | 52 801 |
| Contract obligations | * | 153 183 | 153 183 | 116 113 | 116 113 | ||||
| Total financial instruments | 1 079 158 1 072 318 1 133 239 1 120 644 1 323 592 1 316 752 1 387 914 1 375 319 | ||||||||
| Unrealised gains / losses | -6 840 | -12 595 | -6 840 | -12 595 |
* The original book value of these items is considered a reasonable approximation of fair value. For other items refer to the note concerning policies for calculating fair value of the various instruments.
| GROUP | PARENT COMPANY | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Carrying amount financial assets |
2020 | Fair value through income |
Fair value through OCI |
Amort. cost |
Total | Fair value through income |
Fair value through OCI |
Amort. cost |
Total |
| Trade and other receivables | 868 219 | 868 219 | 13 519 | 13 519 | |||||
| Cash and cash equivalents | 1 757 706 1 757 706 | 765 641 | 765 641 | ||||||
| Financial assets at fair value | |||||||||
| through OCI | 734 973 | 734 973 | 734 973 | 734 973 | |||||
| Financial assets classified as held for sale |
10 000 | 10 000 | |||||||
| Loans to Group companies | 286 817 | 286 817 | |||||||
| Derivatives | 25 088 | 25 088 | |||||||
| Total | 25 088 | 734 973 2 635 925 3 395 987 | 734 973 1 065 976 1 800 950 | ||||||
| Carrying amount financial liabilities |
|||||||||
| Derivatives, interest and currency swaps |
106 847 | 106 847 | 106 847 | 106 847 | |||||
| Derivative liabilities | 28 205 | 28 205 | |||||||
| Interest-bearing loans and borrowings |
900 291 | 900 291 | 216 773 | 216 773 | |||||
| Bond loans | 299 912 | 299 912 | 299 912 | 299 912 | |||||
| Trade and other payables | 679 537 | 679 537 | 17 867 | 17 867 | |||||
| Liabilities to Group companies | 28 921 | 28 921 | |||||||
| Total | 135 051 | 1 879 740 2 014 791 | 106 847 | 563 472 | 670 319 |
| GROUP | PARENT COMPANY | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Carrying amount financial assets |
2019 | Fair value through income |
Fair value through OCI |
Amort. cost |
Total | Fair value through income |
Fair value through OCI |
Amort. cost |
Total |
| Trade and other receivables | 928 602 | 928 602 | 21 431 | 21 431 | |||||
| Cash and cash equivalents | 1 171 777 1 171 777 | 498 789 | 498 789 | ||||||
| Financial assets at fair value | |||||||||
| through OCI | 895 545 | 895 545 | 895 545 | 895 545 | |||||
| Financial assets classified as held for sale |
10 150 | 10 150 | |||||||
| Loans to Group companies | 394 943 | 394 943 | |||||||
| Derivatives | 16 419 | 16 419 | |||||||
| Total | 16 419 | 895 545 2 110 529 3 022 493 | 895 545 | 915 163 1 810 708 | |||||
| Carrying amount financial liabilities |
|||||||||
| Derivatives, interest and curren | |||||||||
| cy swaps | 92 587 | 92 587 | 92 587 | 92 587 | |||||
| Derivative liabilities | 9 847 | 9 847 | |||||||
| Interest-bearing loans and borrowings |
404 155 | 404 155 | 133 133 | 133 133 | |||||
| Bond loans | 299 735 | 299 735 | 299 735 | 299 735 | |||||
| Trade and other payables | 601 304 | 601 304 | 23 668 | 23 668 | |||||
| Liabilities to Group companies | 52 801 | 52 801 | |||||||
| Total | 102 434 | 1 305 194 1 407 628 | 92 587 | 509 337 | 601 924 |
The table below analyses financial instruments measured at fair value according to valuation method.
Level 1: Fair value is measured using listed prices from active markets for identical financial instruments. No adjustment is made to these prices.
Level 2: Fair value is measured using other observable inputs than those used at level 1, either directly (prices) or indirectly (derived from prices).
Level 3: Fair value is measured using inputs that are not based on observable market data (unobservable inputs).
| 2020 | Level 1 | Level 2 | Level 3 | Sum |
|---|---|---|---|---|
| Financial assets at fair value through OCI | 7 722 | 727 252 | 734 974 | |
| Financial assets at fair value through income | 10 192 | 10 192 | ||
| Bond loans | -306 752 | -306 752 | ||
| Total | 7 722 | 430 692 | 438 414 | |
| Other derivative financial assets | 25 088 | 25 121 | ||
| Interest and currency swaps related to bond loans | -106 847 | -106 847 | ||
| Other derivative financial liabilities | -28 205 | -28 224 | ||
| Total | 4 605 | 323 845 | 328 464 | |
2019 Financial assets at fair value through OCI 3 562 891 983 895 545 Financial assets at fair value through income - 10 150 10 150 Bond loans -312 330 -312 330 Total 3 562 589 803 593 365 Other derivative financial assets 16 419 16 419 Interest and currency swaps related to bond loans -92 587 -92 587 Other derivative financial liabilities -9 842 - -9 842 Total 10 139 497 216 507 355
| NUMBER OF SHARES SHAREHOLDING IN % | COST, ADJUSTED FOR IMPAIRMENT | FAIR VALUE | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | 2020 | % | 2019 | % | 2020 | 2019 | |
| Listed shares | ||||||||||
| Kongsberg Gruppen | 25 812 | 25 812 | 0,01% | 0,01% | 4 130 | 13,0 % | 4 130 | 13,7 % | 4 548 | 3 562 |
| Skitude Holding | 423 167 | 0,48% | 1 416 | 4,5 % | 3 174 | |||||
| Total listed shares | 5 546 | 4 130 | 7 722 | 3 562 | ||||||
| Unlisted shares | ||||||||||
| Eiendomsspar | 390 432 390 432 | 1,09% | 1,09% | 2 490 | 7,9 % | 2 490 | 8,2 % 169 838 | 195 216 | ||
| Victoria Eiendom | 870 959 870 659 | 6,49% | 6,49% | 23 621 | 74,6 % | 23 621 | 78,1 % | 557 414 696 767 | ||
| Total listed shares | 26 111 | 26 111 | 727 252 891 983 | |||||||
| Total available-for-sale shares held by the parent company and |
||||||||||
| the Group | 31 656 | 100% | 30 241 | 100% 734 974 895 545 |
The breakdown of the parent company's financial assets is as follows: (tNOK) Available-for-sale shares held by the parent company
Fair value – change during the year:
| PARENT COMPANY | ||
|---|---|---|
| Financial assets at fair value through OCI | 2020 | 2019 |
| Balance at 1 January | 895 545 | 1 020 706 |
| Change in financial assets at fair value through OCI | -161 988 | 195 432 |
| Proceed from sale of financial assets at fair value | -320 592 | |
| Purchase of financial assets at fair value | 1 416 | |
| Total Effect from Foreign Exchange | ||
| Balance at 31 December | 734 973 | 895 545 |
| Total Effect from Foreign Exchange | |
|---|---|
| Purchase of financial assets at fair value | 1 416 |
The following dividend ia received: Kongsberg Gruppen tNOK 323 (tNOK 65), Eiendomsspar tNOK 1.269 (tNOK 2.245) and Victoria Eiendom tNOK 3.484 (tNOK 23.951).
A sensitivity analysis indicates that a 10% change in fair value as at 31 December 2020 would change equity by tNOK 74.517 and profit for the year from continuing operations by tNOK 1.019 (201: by tNOK 90.574 and tNOK 1.000 respectively).
The company and the Group are exposed to credit risk, liquidity risk from the use of financial instruments and market risk. The Board of Directors has overall responsibility for establishing and supervising of the Group's guidelines on risk management. Principles, procedures and systems for risk management in the key areas are reviewed and assessed regularly. Industrial investments consist of a limited number of large investments. The investment strategy is based on the premise that long-term, active engagement provides the greatest return. Other investments are in liquid deposits with no connection to the Group.
Credit risk is the risk of financial losses if a customer or counterparty to a financial instrument is unable to fulfil their obligations. Credit risk normally arises when the company or Group extends credit to customers or invests in securities.
Credit risk associated with investments is considered to be limited since investments are mainly made in liquid securities with a good creditworthiness. A specification of the investments is given earlier in this note.
The Group has routines to ensure that credit is only extended for sales to customers that have had no previous payment issues and that stay within their credit limit.
| COST | FAIR VALUE | |||||
|---|---|---|---|---|---|---|
| Money market funds | 2020 | 2019 | 2020 | 2019 | ||
| DNB Pengemarked | 10 192 | 10 192 | 10 000 | 10 150 | ||
| Total | 10 192 | 10 192 | 10 000 | 10 150 |
The maximum exposure to credit risk associated with receivables at the balance sheet date was:
| GROUP PARENT COMPANY |
||||
|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |
| Total receivables | 887 032 | 945 022 | 11 517 | 22 408 |
| Outstanding trade receivables | 271 413 | 295 782 | 137 | |
| Provision for losses | 33 185 | 15 089 |
| Outstanding trade receivables | External customer rec not due |
External customer rec 1-30 days past due |
External customer rec 31-60 days past due |
External customer rec 61-90 days past due |
External customer rec > 90 days past due |
Trade accounts receivable |
|---|---|---|---|---|---|---|
| 2020 | ||||||
| Arendals Fossekompani ASA | 1 085 | 50 | 87 | 1 223 | ||
| Volue | 177 510 | 30 566 | 2 713 | 3 563 | 1 395 | 215 747 |
| EFD Induction | 183 510 | 20 242 | 5 015 | 3 078 | 22 105 | 233 950 |
| NSSLGlobal | 73 202 | 12 080 | 9 506 | 1 632 | 16 635 | 113 055 |
| Tekna | 8 273 | 22 519 | 1 112 | 179 | 2 790 | 34 872 |
| Cogen | 36 896 | 17 171 | 14 655 | 6 453 | 77 172 | 152 346 |
| Property | 623 | 171 | 332 | 195 | 1 321 | |
| Total | 481 100 | 102 748 | 33 382 | 14 904 | 120 380 | 752 513 |
The company has applied impairment losses for expected credit losses as follows: Provision for losses
| 2020 | |||||
|---|---|---|---|---|---|
| Arendals Fossekompani ASA | |||||
| Volue | 700 | 1 105 | 1 805 | ||
| EFD Induction | 29 | 6 831 | 6 860 | ||
| NSSLGlobal | 9 194 | 9 194 | |||
| Tekna | |||||
| Cogen | 15 274 | 15 274 | |||
| Property | 3 | 50 | 53 | ||
| Total | 3 | 729 | 1 105 | 31 349 | 33 185 |
Provisions for losses are calculated based on historical losses and individual assessment of each item and customer. With effect from 2019 standard loss rates will be used to calculate provisions for future losses.
| GROUP | ||||
|---|---|---|---|---|
| Provision for losses | 2020 | 2019 | ||
| Total Opening Balance | 13 289 | 12 196 | ||
| Changes in expected losses (loss rates) and outstanding receivables (volume) | 12 118 | 3 906 | ||
| Realized losses during the period (-) | 8 482 | -1 013 | ||
| Total Effect from Foreign Exchange | -704 | |||
| Closing Balance | 33 185 | 15 089 |
| Outstanding trade receivables | External customer rec not due |
External customer rec 1-30 days past due |
External customer rec 31-60 days past due |
External customer rec 61-90 days past due |
External customer rec > 90 days past due |
Trade accounts receivable |
|---|---|---|---|---|---|---|
| 2019 | ||||||
| Arendals Fossekompani ASA | 301 | 509 | 57 | 2 | 869 | |
| Volue | 150 160 | 28 359 | -5 042 | -4 329 | 18 120 | 187 269 |
| EFD Induction | 203 424 | 21 848 | 6 463 | 4 307 | 10 071 | 246 113 |
| NSSLGlobal | 91 533 | 35 564 | 2 292 | 2 940 | 7 321 | 139 650 |
| Tekna | 5 741 | 3 735 | 2 072 | 792 | 4 898 | 17 238 |
| Cogen | 73 826 | 80 883 | 37 541 | 36 776 | 433 | 229 459 |
| Property | 253 | 74 | 95 | 422 | ||
| Total | 525 238 | 170 972 | 43 383 | 40 486 | 40 940 | 821 020 |
| 2019 | ||||||
|---|---|---|---|---|---|---|
| Arendals Fossekompani ASA | ||||||
| Volue | 164 | 3 911 | 4 075 | |||
| EFD Induction | 17 | 162 | 5 838 | 6 017 | ||
| NSSLGlobal | 51 | 49 | 47 | 4 187 | 4 334 | |
| Tekna | 600 | 600 | ||||
| Cogen | ||||||
| Property | 13 | 13 | ||||
| Total | 17 | 51 | 375 | 47 | 14 549 | 15 039 |
Provisions are calculated based on historical losses and individual assessment of each item and customer
| GROUP | ||||
|---|---|---|---|---|
| Receivables | 2020 | 2019 | ||
| Volue | 39 335 | 36 444 | ||
| EFD Induction | 117 770 | 58 559 | ||
| Tekna | 3 594 | 10 648 | ||
| Sum | 160 700 | 105 651 |
| GROUP | |||
|---|---|---|---|
| Recognized as loss | 2020 | 2019 | |
| Volue | 74 300 | 41 000 | |
| Sum | 74 300 | 41 000 |
Changes in the period's provisions are explained as follows:
| GROUP | ||||
|---|---|---|---|---|
| Loss on contract asset | 2020 | 2019 | ||
| Total Opening Balance | 41 000 | 12 983 | ||
| Changes in expected losses (loss rates) and outstanding receivables (volume) | 36 300 | 57 546 | ||
| Realized losses during the period (-) | -3 000 | -29 529 | ||
| Closing Balance | 74 300 | 41 000 |
Liquidity risk is the risk that the Group will not be able to fulfil its financial obligations as they fall due. The aim of liquidity management is to secure sufficient liquidity to fulfil the obligations as they fall due, without this causing unacceptable losses to the company and the Group.
Cash flow from the company and the Group's ordinary operations, combined with significant investments in liquid securities as well as unutilised credit facilities mean that the liquidity risk is considered to be low.
Subsidiaries EFD Induction, NSSLGlobal, Cogen Energia and Powel have established a group account arrangement covering most of the subsidiaries. This includes currencies NOK, EUR, USD, JPY, SEK, DKK og GBP. This helps increase the flexibility and efficiency of liquidity management.
The breakdown of the liabilities of the company and the Group is as follows: (Contractual cash flows include interest calculated based on interest rates at the balance sheet date)
| Group | Carrying amount |
Contractual cash flows |
6 months or less |
6 to 12 | months 1 to 2 years | 2 to 5 years |
Over 5 years |
|---|---|---|---|---|---|---|---|
| 2020 | |||||||
| Interest-bearing loans and borrowings | 890 098 | 1 125 606 | 14 768 | 338 365 | 187 946 | 409 389 | 175 138 |
| Obligations from leases | 241 200 | 269 204 | 28 440 | 30 767 | 73 751 | 84 949 | 51 298 |
| Bank overdraft | 310 105 | 310 773 | -20 677 | 103 931 | 227 520 | ||
| Trade and other payables | 679 537 | 832 764 | 686 309 | 83 278 | 593 | 62 585 | |
| Other curr. liabilities | 523 233 | 559 601 | 448 753 | 104 956 | 3 191 | 2 701 | |
| Contract obligations | 153 183 | 152 855 | 84 525 | 56 236 | 12 095 | ||
| Derivatives | 135 051 | 135 882 | 20 287 | 106 902 | 111 | 8 581 | |
| Total | 2 932 406 | 3 386 684 | 1 262 405 | 824 434 | 505 206 | 505 620 | 289 020 |
| Group | Carrying amount |
Contractual cash flows |
6 months or less |
6 to 12 | months 1 to 2 years | 2 to 5 years |
Over 5 years |
|---|---|---|---|---|---|---|---|
| 2019 | |||||||
| Interest-bearing loans and borrowings | 717 783 | 801 836 | 92 924 | 20 062 | 541 090 | 62 036 | 85 727 |
| Obligations from leases | 254 041 | 281 211 | 32 692 | 32 418 | 69 631 | 84 123 | 62 350 |
| Bank overdraft | 196 267 | 112 976 | 112 872 | 14 251 | |||
| Trade and other payables | 601 300 | 601 300 | 594 977 | 51 858 | |||
| Other curr. liabilities | 439 144 | 439 145 | 385 183 | 75 059 | 239 | ||
| Contract obligations | 116 112 | 116 112 | 90 407 | 25 705 | |||
| Derivatives | 102 434 | 102 434 | 4 000 | 4 000 | 94 119 | 315 | |
| Total | 2 451 054 | 2 455 014 | 1 313 054 | 223 353 | 705 079 | 146 474 | 148 077 |
| Carrying | Contractual | 6 months | 6 to 12 | 2 to 5 | Over 5 | ||
|---|---|---|---|---|---|---|---|
| Parent Company | amount | cash flows | or less | months 1 to 2 years | years | years | |
| 2020 | |||||||
| Interest-bearing loans and borrowings | 516 684 | 555 189 | 4 779 | 319 299 | 9 559 | 221 552 | |
| Obligations from leases | 20 645 | 22 837 | 1 765 | 1 765 | 3 435 | 6 349 | 9 523 |
| Bank overdraft | |||||||
| Trade and other payables | 17 867 | 17 867 | 17 867 | ||||
| Other current liabilities | 12 957 | ||||||
| Contract obligations | |||||||
| Derivatives | 106 847 | 106 847 | 106 847 | ||||
| Total | 710 661 | 751 358 | 73 029 | 427 911 | 12 994 | 227 901 | 9 523 |
| Total | 567 948 | 619 693 | 46 039 | 10 305 | 465 351 | 2 521 | 2 889 |
|---|---|---|---|---|---|---|---|
| Derivatives | 92 587 | 92 587 | |||||
| Contract obligations | |||||||
| Other current liabilities | 12 066 | 12 066 | 12 066 | ||||
| Trade and other payables | 23 668 | 23 668 | 23 668 | ||||
| Bank overdraft | |||||||
| Obligations from leases | 6 759 | 7 731 | 605 | 605 | 1 110 | 2 521 | 2 889 |
| Interest-bearing loans and borrowings | 432 868 | 483 641 | 9 700 | 9 700 | 464 241 | ||
| 2019 | |||||||
| Parent Company | amount | cash flows | or less | months 1 to 2 years | years | years | |
| Carrying | Contractual | 6 months | 6 to 12 | 2 to 5 | Over 5 |
Market risk is the risk that changes in market prices such as exchange rates, interest rates and share prices will impact net income or the value of financial instruments.
The company and the Group are exposed to foreign exchange risk on purchases, sales and loans in currencies other than the companies' functional currency. The Group's main exposure is to EUR, GBP and USD. The foreign exchange exposure is primarily associated with operations in the Group's foreign subsidiaries and with the company's and the Group's liabilities in foreign currency. The EFD subgroup uses derivatives to limit foreign exchange risk associated with sales and trade receivables. The parent company and EFD also use foreign currency loans and currency swaps to limit foreign exchange risk associated with changes in value in the subsidiaries. The main foreign currency exposure in the parent company and the Group's Norwegian subsidiaries is to EUR.
| GROUP | PARENT COMPANY | |||
|---|---|---|---|---|
| (1 000 EUR) | 2020 | 2019 | 2020 | 2019 |
| Bank deposits | 16 574 | 5 943 | 10 | 14 |
| Trade receivables | 37 199 | 9 048 | 67 | 1 270 |
| Trade payables | -13 816 | -5 549 | ||
| Interest-bearing liabilities | -48 603 | -127 664 | -38 511 | -38 511 |
| Balance sheet exposure (foreign exchange risk) | -8 646 | -118 222 | -38 433 | -37 227 |
A sensitivity analysis indicates that a 5% appreciation of NOK against EUR as at the year-end would impact earnings for the Group in 2020 by the equivalent of MEUR +0.4 and in 2019 by the equivalent of MEUR +5.9. The amounts are stated before taxes. Other subsidiaries have only modest exposure to currencies other than the company's functional currency. The reason why the parent company has interest-bearing liabilities in EUR is that sales of spot power are billed in EUR.
Some customer contracts are currency-hedged when entered into. Currency hedging is also carried out for budgeted cash flows in foreign currency. The relevant derivatives are forward contracts towards banks. The Group companies EFD Induction and Wattsight report cash flow hedging as hedging contracts.
At year-end the companies had the following forward currency contracts specified as hedging:
| Contract value | Unrealised gains/ losses |
|
|---|---|---|
| 2020 | ||
| Hedging of future cash flows | 288 403 | -3 906 |
| Fair value hedging | 12 060 | -202 |
| Balance sheet exposure (hedging) | 300 462 | -4 109 |
Unrealised gains/losses relating to hedging of future cash flows are recognised in "Other comprehensive income". The unrealised loss shown in the table is the value before deducting tax. Net unrealised losses/gains are recognised as other current liabilities/assets.
Nominal value, carrying amount and maturity of forward currency contracts:
| 2021 | 2022 | 2023 | Nominal amount (currency) |
Carrying amount (NOK '000) |
|
|---|---|---|---|---|---|
| Currency | |||||
| EUR | 10 727 | 4 800 | 3 400 | 18 927 | 519 |
| USD | 7 800 | 4 900 | 250 | 12 950 | -4 566 |
| GBP | 150 | 150 | -63 | ||
| THB | 42 300 | 42 300 | |||
| Total | -4 109 |
| 2020 | 2019 | |
|---|---|---|
| Balance at 1 January | 16 419 | -26 021 |
| Changes in value postes as OCI | -22 508 | 10 872 |
| Reclassified from OCI to PL | 1 980 | 5 416 |
| Balance at 31 December | -4 109 | -9 732 |
| Liabilities | 4 782 | -9 847 |
| Assets | 8 892 | 115 |
| Total | -4 109 | -9 732 |
Cogen, a Group company, hedges future gas and power prices. This hedging is regarded as cash flow hedging. Unrealized gains/loss are recognised in "Other comprehensive income" and is included in "Total receivables".
| Volume MWh |
Unrealized gains/losses |
|
|---|---|---|
| Power contracts | 176 607 | 16 305 |
| Gas contracts | 560 160 | 1 516 |
| Carrying amount - assets | 17 820 |
| Balance at 31 December | -17 820 | 16 305 |
|---|---|---|
| Reclassified from OCI to income statement | -31 618 | |
| Changes in fair value charged to OCI | -2 507 | 16 305 |
| Balance at 1 January | 16 305 | |
| Change in carrying amount in the period: | 2020 | 2019 |
Most of the company's and the Group's interest-bearing financial assets and liabilities accrue interest at variable rates. In 2011 the parent company took out a bond loan of NOK 300,000,000 at an interest rate of 5.95%. At the same time an interest rate swap was entered into for the loan amount at a fixed interest rate in EUR of 4.84%. The loan and the interest rate swap both have a term of 10 years and mature in July 2021. An overview of interest-bearing assets can be found earlier in this note and of liabilities in Note 17. A 1% change in interest rates would affect earnings, and profit and financial items through the year, by a net amount of around MNOK 0.9.
The amount is stated before taxes.
Most of the company's and the Group's energy sales take place in the spot market, which means there is exposure to risk associated with price fluctuations. In the past two years no energy derivatives have been used as hedging instruments to limit the risk.
The company and the Group are exposed to price risk on investments in equity instruments classified as held for trading or available for sale. All decisions on significant purchases and sales are made by the Board of Directors. The main objective of the investment strategy is to maximise the return through ongoing dividends and increases in the value of the portfolio.
An overview of the company's financial assets held for trading and financial assets available for sale is given earlier in this note.
Amounts in NOK 1 000
This note provides information on the contractual terms of the Group's interest-bearing loans and borrowings. For more information on the Group's interest rate risk and foreign exchange risk see Note 16.
This loan is linked to an interest rate and currency swap in which the tNOK 300,000 loan with a fixed interest rate of 5.95% is converted to tEUR 38,511 and a fixed euro interest rate of 4.84%. The value of this agreement as at 31 December 2020 was tNOK -106 847 (2019 tNOK -92 587).
| GROUP | |||
|---|---|---|---|
| 2020 | 2019 | ||
| Bond loans | |||
| 5.95% loan 2011–2022 | 300 000 | 300 000 | |
| Capitalised loan costs | -88 | -265 | |
| Bond loans - booked value | 299 912 | 299 735 |
| PARENT COMPANY | ||||||
|---|---|---|---|---|---|---|
| 2020 | 2019 | |||||
| Debenture loans | ||||||
| CAD LIBOR + fixed margin | Floating interest | 30.03.15 - 04.07.22 | 217 672 | 135 140 | ||
| Capitalised loan costs | -899 | -2 007 | ||||
| Total denenture loans parent company | 216 773 | 133 133 |
| SUBSIDIARIES | |||||
|---|---|---|---|---|---|
| 2020 | 2019 | ||||
| EFD | Floating interest (EUR) | 77 029 | 60 111 | ||
| Cogen | Floating interest (EUR) | 153 693 | 106 191 | ||
| Tekna | Floating interest (CAD) |
8 672 | 10 228 | ||
| Tekna | No interest | 20 934 | 15 509 | ||
| Bedriftsveien 17 | Floating interest (NOK) |
32 699 | 34 185 | ||
| Vindholmen Eiendom | Floating interest (NOK) |
80 387 | 58 689 | ||
| Total debentture loans subsidiaries | 373 414 | 284 913 |
| GROUP | PARENT COMPANY | |||
|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |
| Loans secured by pledged assets | ||||
| Long-term borrowings | 116 624 | 204 347 | ||
| Bank overdraft | 38 573 | 210 414 | ||
| Total borrowings | 155 197 | 414 761 | ||
| Loans are secured by the following pledged assets | ||||
| Other property | 64 266 | 212 733 | ||
| Moveable property | 10 147 | 9 991 | ||
| Inventories | 116 511 | 92 254 | ||
| Trade receivables | 206 559 | 282 127 | ||
| Total security | 397 484 | 597 105 |
Security for promissory note and bond loans with a countervalue of MNOK 516.7 taken out in the parent company has been given in the form of negative pledges. Trade receivables in two of the subsidiaries have been pledged as security for bank guarantees and overdrafts given. For the Group the value-adjusted equity must be at least 40% and have a value of at least MNOK 1,500. For Markedskraft the equity must be at least MNOK 45 an at least 20 %. For EFD the equity must be at least 27% , EBITDA at least MEUR 3.5 and cash at least MEUR 10. For Scanmatic the equity must be a minimum of 25% and at least MNOK 16. For Wattsight the equity must be over MNOK 12 and a minimum of 25%. For Powel the equity must be at least MNOK 100 and at least 25%, and there is a requirement concerning invoicing in periods when the overdraft is drawn down. All the companies are in compliance with the requirements of their covenants at 31 December 2020.
Of the total provisions at 31 December 2020 of NOK 99,373,000 (NOK 70,658,000), Cogen's provisions to cover changes in the production bonus amount to NOK 70,531,000 (NOK 68,671,000).
Amounts in NOK 1 000
| GROUP | PARENT COMPANY | |||
|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |
| Trade payables | 707 741 | 611 147 | 17 867 | 23 668 |
| Other current liabilities | 441 343 | 439 144 | 12 834 | 12 066 |
| Derivatives at fair value | 28 208 | |||
| Trade acc payable, IC | 123 | |||
| Total trade payables and other current liabilities | 1 177 292 | 1 050 291 | 30 824 | 35 734 |
140 141
| GROUP | PARENT COMPANY | |||
|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |
| Buildings | 208 978 | 222 299 | 20 627 | 6 602 |
| Operational equipment | 3 563 | 6 018 | ||
| Vehicles | 8 409 | 11 720 | 50 | |
| Other | 10 215 | 13 474 | ||
| Total | 231 165 | 253 511 | 20 627 | 6 652 |
| GROUP | PARENT COMPANY | |||
|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |
| RoU-liabilities, current | 57 576 | 63 695 | 3 531 | 993 |
| RoU liabilities, non-current | 183 624 | 190 346 | 17 115 | 5 766 |
| Total | 241 200 | 254 215 | 20 645 | 6 759 |
| GROUP | PARENT COMPANY | |||
|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |
| Buildings depreciation | 62 026 | 56 756 | 1 021 | 928 |
| Operational equipment depreciation | 4 094 | 1 353 | ||
| Vehicles depreciations | 5 227 | 6 667 | 50 | 60 |
| Other depreciation | 4 145 | 2 704 | ||
| Sum depreciation | 75 491 | 72 183 | 1 072 | 988 |
| IFRS 16 interest | 8 806 | 9 603 | 217 | 243 |
| Leases wrt IFRS 17 | -71 533 | -71 083 | -1 210 | -1 125 |
| Net IFRS 16 effect | 12 764 | 6 000 | 78 | 106 |
On 17 February AFK reported that the company sold 16,940,200 shares in Volue AS, representing 11.8% of the share capital. The price per share was NOK 58.50 for total gross proceeds of NOK 991 million. The shares were sold to a group of six high quality Nordic and international institutional investors.
On 2 March AFK reported that the company has successfully issued NOK 500 million in unsecured green bonds. The bonds have a 7-year tenor and was priced at a fixed coupon of 2.615%. AFK will use the net proceeds to finance green projects as defined in the AFK Green Bond Framework. The Green Bond Framework has received the best possible rating, Dark Green, by Cicero Shades of Green.
On 12 March Arendals Fossekompani sold all its shares in Victoria Eiendom and Eiendomsspar for a total of more than NOK 800 million.
On 19 March 2021 Volue applied to be transferred from Euronext Growth to the main list of the Oslo Stock Exchange. Volue has conducted an extraordinary general meeting to convert the company into a public limited company (ASA), which involved changing the composition of the company's Board of Directors.
On 22 March 2021 Tekna Holding announced a potential listing on Euronext Growth. After a successful private placement, with books covered within ten minutes, Tekna Holdning was listed on Euronext Growth and trading of the share commenced on 30 March.
On 8 April the Board of Directors decided to propose to the General Meeting on 6 May 2021 to pay an extraordinary cash dividend of NOK 29.20 per share to be paid in May 2021.
Key accounting estimates are estimates that are important for the presentation of the company's and the Group's financial positionand earnings, and which require subjective assessment. Arendals Fossekompani assesses such estimates continually based on historical results and experience, consultation with experts, trends, forecasts and other methods considered reasonable in each individual case.
Goodwill and other intangible assets with an indefinite life are tested for impairment annually. The company's investments in subsidiaries and associates are similarly tested for impairment. The assessments are based on analysis of the company's financial position and forecasts/outlook. Recoverable amounts that are measured against carrying amounts are the expected selling price or the present value of cash flows from the investment. Other assets, including property, plant and equipmentand financial instruments available for sale, are tested for impairment when there is an indication that a fall in value may have occurred.
The Group recognises revenue from individual projects in accordance with the percentage of completion method. For such projects the degree of completion is calculated as costs incurred relative to total estimated costs. The greatest uncertainty is associated with measurement of the project's total estimated costs. Further information is provided in Note 13.
Basic earnings per share for 2020 are based on profit attributable to the equity holders of the parent and the weighted average number of outstanding ordinary shares during 2020, which was 54.282.375 (2019:54.780.975), calculated as follows:
| Profit attributable to ordinary shares | 2020 | 2019 |
|---|---|---|
| Net profit for the year | 120 135 | 46 718 |
| Minority interest | 58 218 | 1 912 |
| Equity holders of the parent | 61 917 | 44 806 |
| Weighted average number of ordinary shares | 2020 | 2019 | |
|---|---|---|---|
| Issued ordinary shares, 1 January | 55 995 250 | 55 995 250 * | |
| Effect of treasury shares | -1 111 200 | -1 157 275 * | |
| Number of outstanding shares as at 31 Dec | 54 884 050 | 54 837 975 * | |
| Weighted average number of ordinary shares for the year | 54 861 013 | 54 780 975 * | |
| Basic earnings per share / diluted earnings per share (NOK) | 1,13 | 0,82 |
* The numbers of shares in 2019 has been recalculated according to the new share structure established in 2020 Each share was divided into 25 new shares.
| lfoss Invest AS |
|---|
| avfonn AS |
| lust Invest AS |
| rendals Fossekompani ASA |
| tertrade Shipping AS |
| vanhild og Arne Musts fond |
| ondsfinans Pensjonskasse |
| abulous AS |
| er-Dietrich Johansen |
| at Invest AS |
| opern AS |
| øhler Invest AS |
| rik Bøhler |
| verre Valvik AS |
| nnelise Altenborg Must |
| ve Oland |
| Falck Fras AS |
| rik Christian Must |
| ine Must |
| loo Monios Campoll |
| The 20 largest shareholders | Number of shares | Shareholding |
|---|---|---|
| Ulfoss Invest AS | 14 709 875 | 26,3 % |
| Havfonn AS | 14 567 900 | 26,0 % |
| Must Invest AS | 14 106 225 | 25,2 % |
| Arendals Fossekompani ASA | 1 111 200 | 2,0 % |
| Intertrade Shipping AS | 762 500 | 1,4 % |
| Svanhild og Arne Musts fond | 657 225 | 1,2 % |
| Fondsfinans Pensjonskasse | 511 575 | 0,9 % |
| Fabulous AS | 456 125 | 0,8 % |
| Per-Dietrich Johansen | 375 375 | 0,7 % |
| Cat Invest AS | 346 850 | 0,6 % |
| Ropern AS | 287 478 | 0,5 % |
| Bøhler Invest AS | 285 000 | 0,5 % |
| Erik Bøhler | 280 100 | 0,5 % |
| Sverre Valvik AS | 263 925 | 0,5 % |
| Annelise Altenborg Must | 236 675 | 0,4 % |
| Ove Oland | 210 500 | 0,4 % |
| Fr Falck Frås AS | 184 325 | 0,3 % |
| Erik Christian Must | 180 000 | 0,3 % |
| Trine Must | 180 000 | 0,3 % |
| Else Monica Campell | 158 975 | 0,3 % |
| 49 871 828 | 89,10% |
With reference to section 7-26 of the Norwegian Accounting Act the following can be disclosed concerning shares owned by individual Board members and the CEO, including shares owned by spouses, children who are minors or by companies in which the person in question has a controlling interest.
| Own holdings | Related parties | Total | |
|---|---|---|---|
| Board of Directors | |||
| Jon Hindar | 10 000 | 10 000 | |
| Morten Bergesen | 14 567 900 | 14 567 900 | |
| Didrik Vigsnæs | 18 000 | 18 000 | |
| Heidi Marie Petersen | 22 475 | 22 475 | |
| Arild Nysæther | 7 500 | 7 500 | |
| Kristine Landmark | 14 800 | 14 800 | |
| Stine Rolstad Brenna | 7 500 | 7 500 | |
| Total | 22 300 | 14 625 875 | 14 648 175 |
| Senior executives: | |||
| Ørjan Svanevik* | 75 000 | 75 000 | |
| Lars Peder Fensli * | 20 000 | 20 000 | |
| Morten Henriksen * | 7 500 | 20 625 | 28 125 |
| Torkil Mogstad * | 20 625 | 20 625 | |
| Ingunn Ettestøl* | 12 500 | 12 500 | |
| Total | 7 500 | 148 750 | 156 250 |
*See Note 4 regarding share options.
The company's/Group's related parties comprise subsidiaries, associates and members of the Board of Directors and senior management team.
Members of the Board of Directors and the company management and their closest relations control 26.4% of shares with voting rights in the company. Loans to senior executives (see Note 4) amounted to tNOK 9.030 (2019: tNOK 7.375) as at 31 December.These loans are included in "other investments". Interest is charged on loans to senior executives at a rate that never triggers a taxable benefit. In addition to regular salaries, senior executives have agreements on other benefits in the form of a defined-contribution pension scheme. (See Note 4).
Transactions between Group companies and other related parties are based on the principles of market value and arm's length. In 2020 Arendals Fossekompani purchased services relating to market management for tNOK 863 from Markedskraft (tNOK 547). In 2020 Arendals Fossekompani had a gain on foreign currency loans to Markedskraft of tNOK 3.467 (loss of tNOK 192 in 2019). In 2020 Tekna sold goods it had produced to EFD Induction for tCAD 1,411 (tCAD 2,887) and to AFK for tCAD 0 (tCAD 519). Interest is charged on loans from the AFK parent company to companies in the Group in accordance with the agreement entered into.
| LOANS MATURING AFTER MORE THAN ONE YEAR |
LOANS MATURING IN LESS THAN ONE YEAR |
TOTAL INTEREST BEARING LIABILITIES |
|||||
|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||
| Group | |||||||
| Total Opening Balance | 825 512 | 678 506 | 345 887 | 287 443 | 1 171 399 | 965 949 | |
| Cash Flow | -180 539 | -146 468 | 423 879 | 26 329 | 243 339 | -120 139 | |
| Other changes with no cash effect | 53 593 | 283 390 | -21 476 | 31 901 | 32 116 | 315 291 | |
| Total Effect from Foreign Exchange | -2 728 | 10 084 | 9 237 | 215 | 6 509 | 10 299 | |
| Closing Balance | 695 837 | 825 512 | 757 527 | 345 887 | 1 453 364 | 1 171 399 | |
| Parent Company | |||||||
| Total Opening Balance | 438 634 | 497 857 | 993 | 439 627 | 497 857 | ||
| Cash Flow | -208 803 | -74 925 | 299 912 | 91 109 | -74 925 | ||
| Other changes with no cash effect | 12 398 | 7 640 | 2 538 | 993 | 14 936 | 8 634 | |
| Total Effect from Foreign Exchange | -8 342 | 8 061 | -8 342 | 8 061 | |||
| Closing Balance | 233 887 | 438 634 | 303 443 | 993 | 537 330 | 439 627 |
| Bond n-c | ||
|---|---|---|
| Interest-bearing liabilities and credits (long-term) | ||
| RoU liabilities, non-current | ||
| Loans maturing after more than one year | ||
| Interest-bearing liabilities and credits (short-term) | ||
| RoU-liabilities, current | ||
| Specification of the Balance Sheet | GROUP | |
|---|---|---|
| 2020 | 2019 | |
| Bond n-c | 299 735 | |
| Interest-bearing liabilities and credits (long-term) | 512 214 | 332 122 |
| RoU liabilities, non-current | 183 624 | 193 655 |
| Loans maturing after more than one year | 695 837 | 825 512 |
| Interest-bearing liabilities and credits (short-term) | 699 951 | 282 193 |
| RoU-liabilities, current | 57 576 | 63 695 |
| Loans maturing in less than one year | 757 527 | 345 887 |
| Total interest-bearing liabilities | 1 453 364 | 1 171 399 |
| PARENT COMPANY | ||
|---|---|---|
| 2020 | 2019 | |
| Bond n-c | 299 735 | |
| Interest-bearing liabilities and credits (long-term) | 216 773 | 133 133 |
| RoU liabilities, non-current | 17 115 | 5 766 |
| Loans maturing after more than one year | 233 887 | 438 634 |
| Interest-bearing liabilities and credits (short-term) | 299 912 | |
| RoU-liabilities, current | 3 531 | 993 |
| Loans maturing in less than one year | 303 443 | 993 |
| Total interest-bearing liabilities | 537 330 | 439 627 |
Amounts in NOK 1 000
Volue, wich is a subsidiary of Arendals Fossekompani completed in August a disposal of its 51% share in Scanmatic Elektro. The financial numbers for the company is presented in separate lines as "Discontinued operations" both in the Profit and Loss and Balance Sheet. Gain on disposal of Scanmatic Elektro, MNOK 32 is included in "Net discontinued operation income" Main financial information from the Profit and Loss and Balance Sheet for Scanmatic Elektro is listed below:
| 2020 | 2019 | |
|---|---|---|
| Income statement | ||
| Sales | 181 092 | 311 135 |
| Operating expense EBITDA | 167 679 | 359 731 |
| Depreciation | 3 657 | 7 915 |
| Operating profit | 9 756 | -56 510 |
| Net financial items | -343 | -1 015 |
| Profit before taxes | 9 413 | -57 526 |
| Provision for income tax | 2 076 | -12 627 |
| Net profit for Scanmatic Elektro | 7 337 | -44 898 |
| Gain on sale of Scanmatic Elektro | 31 631 | |
| Net profit discontinued operations | 38 968 | -44 898 |
| Basic earnings per share / diluted earnings per share (NOK) | 0,71 | -0,82 |
| Balance sheet | ||
| Non-current assets | 18 745 | |
| Current assets | 140 691 | |
| Assets connected to discontinued operation | 159 437 | |
| Non-current liabilities | 16 244 | |
| Current liabilities | 96 140 | |
| Liabilities connected to discontinued operation | 112 384 |
The Board and CEO have reviewed and approved the Annual Report and Annual Financial Statements for Arendals Fossekompani ASA, which includes the Group and the parent company, for the calendar year 2020 and as of 31 December 2020 (Annual Report for 2020).
The single-entity financial statements and consolidated financial statements have been prepared in accordance with IFRS as adopted by the European Union, along with relevant interpretations, and in compliance with further disclosure requirements pursuant to the Norwegian Accounting Act applicable as of 31 December 2020. The Annual Report for the Group and parent company has been prepared in accordance with the provisions of the Norwegian Accounting Act and Norwegian Accounting Standard 16 as of 31 December 2020.
To the best of our knowledge:
Froland, 26 March 2020
Jon Hindar Board Chairman
Didrik Vigsnæs Arild Nysæther
Heidi Marie Petersen Kristine Landmark Stine Rolstad Brenna Ørjan Svanevik
CEO
PricewaterhouseCoopers AS, Kystveien 14, NO-4841 Arendal T: 02316, org. no.: 987 009 713 VAT, www.pwc.no State authorised public accountants, members of The Norwegian Institute of Public Accountants, and authorised accounting firm
To the General Meeting of Arendals Fossekompani ASA
Report on the Audit of the Financial Statements
We have audited the financial statements of Arendals Fossekompani ASA, which comprise:
We conducted our audit in accordance with laws, regulations, and auditing standards and practices generally accepted in Norway, including 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 we have fulfilled our other ethical responsibilities in
Independent Auditor's Report - Arendals Fossekompani ASA
(2)
accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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.
In 2020, revenue from construction contracts constituted NOK 1 353 026 thousand, equal to approximately 37 % of total operating revenues. Revenue from construction contracts is recognized over time based on expected final outcome and stage of completion of the contract. Assessment of total contract cost, revenue and stage of completion is updated on a regular basis.
There are several reasons why we consider revenue from construction contracts a key audit matter. The Group has a significant volume of construction contracts, such contracts may have a long duration and the assessment contract cost and stage of completion and may be complex and subject to judgement. Furthermore, management's judgement related to construction contracts impact several areas of the financial statements including revenue, operating expenses, contract assets and liabilities, trade receivables and payables, provisions and corporate income tax.
Notes 1, 13 and 16 and the accounting principles include additional information on the Group's construction contracts.
We obtained a sample of contracts and assessed accounting treatment against the Group's accounting principles and IFRS 15 Revenue from contracts with customers. We found that the accounting treatment is in line with legal elements in the contracts and that accounting principles are in accordance with IFRS 15.
The Group has implemented controls to ensure that accounting for construction contracts reflect management's best estimates with respect to total contract cost, revenue and stage of completion. Controls are implemented are various levels of the organisation and includes periodic meetings to review open contrcats. Through meetings with management and project leaders, including review of relevant documentation, we have verified that relevant controls have been implemented.
Estimating project costs and calculating stage of completion requires judgement. We have performed various procedures to assess whether management's judgements is reasonable, including:
We found that assumptions used and judgements made by management were reasonable. We further evaluated
(3)
disclosures around construction contracts and found these to be free from material misstatement.
As at 31 December 2020 carrying amount of goodwill and intangible assets (excl. Concessions) in the Group's financial statements was NOK 973 868 thousand, equal to approximately 14 % of total assets. Goodwill and intangible assets with indefinite economic life are tested for impairment at least annually. Other intangible assets are tested for impairment when indicators of impairment exist. Impairment testing is performed at the level of cash generating. When testing for impairment, the carrying amount is compared to recoverable amount. The recoverable amount is determined based on value in use or fair value less cost of disposal.
As at 31 December 2020, management's impairment assessment indicated that recoverable amount exceeded carrying amount for all cash generating units where goodwill and intangible assets were recognised. As a result, no impairment was recorded.
We focused on this area bacause goodwill and intangible assets constitute a significant share of the Group's total assets and calculation of recoverable amount involves significant judgement by management.
Refer to note 6 to the financial statements for further information on goodwill and intangible assers, cash generating units and impairment testing.
We obtained and gained an understanding of management's impairment assessment related to goodwill and intangible assets. Our procedures included an assessment of the valuation method and whether key assumptions used by management appeared reasonable based on our understanding of the business and industry of each relevant cash generating unit. We also traced data used in valuation models to underlying documentation.
Based on our audit procedures we found that valuation methods used were reasonable and consistent with our understanding of the business and industry. Our testing of data against underlying documentation did yield any material exceptions. While we did not find any evidence to indicate that goodwill or intangible assets were impaired, we note that the valuation of cash generating units is sensitive to changes in assumptions.
Lastly, we evaluated the information provided in note 6 to the financial statements where management describes the Group's goodwill and intangible assets and the results of the impairment testing. We found that the disclosures described management's valuation of goodwill and intangible assets in an appropriate manner and that the information was free from material misstatement.
In September 2020, the Company spun off four of its subsidiaries by way of contributions in kind to form a separate sub-group named Volue. The transaction was recorded at continuity both for the Company and the Group.
We obtained and gained an understanding of relevant documents related to the transactions. To further support our understanding, we carried out meetings and discussions with the company's management team and advisors.
Through meetings and discussions, we challenged management's assessments. The key accounting issues
Independent Auditor's Report - Arendals Fossekompani ASA
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Volue was subsequently listed on Euronext Growth in October 2020. As part of a private placement in advance of the listing, the Company performed a partial sale of shares in Volue, recording a gain of NOK 441 million. Further, Volue raised new equity with gross proceeds to the Group of NOK 500 million.
Due to the impact on the financial statements arising from the inherent complexity related to accounting and legal matters and the significant transaction amounts, this has been a focus area in the audit.
Refer to statement of changes in equity and notes 8 and 11 to the financial statements for details of the accounting effects of the transactions.
were related to continuity versus fair value accounting, recognition of gain on sale of shares in the Company's financial statements, and effects on cash flow and equity in the Group's financial statements. To address this matter, we focused our attention towards the accounting solutions chosen by management.
Our evaluations show that management's conclusions are in accordance with the legal elements in the transactions and IFRS requirements. In addition, we performed detailed substantive procedures in order to evaluate the accuracy and completeness of recognition and presentation of transactions in the financial statements. This included an evaluation of whether the presentation in the financial statements and accompanying notes is in compliance with IFRS requirements.
Management is responsible for the other information. The other information comprises information in the annual report, except the financial statements and our auditor's report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Board of Directors and the Managing Director for the
The Board of Directors and the Managing Director (Management) are responsible for the preparation in accordance with law and regulations, including a true and fair view of the financial statements 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.
(5)
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 laws, regulations, and auditing standards and practices generally accepted in Norway, including 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 laws, regulations, and auditing standards and practices generally accepted in Norway, including ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
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.
Independent Auditor's Report - Arendals Fossekompani ASA
(6)
We also provide the Board of Directors 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.
Based on our audit of the financial statements as described above, it is our opinion that the information presented in the Board of Directors' report and in the statements on Corporate Governance and Corporate Social Responsibility concerning the financial statements, the going concern assumption and the proposed allocation of the result is consistent with the financial statements and complies with the law and regulations.
Based on our audit of the financial statements as described above, and control procedures we have considered necessary in accordance with the International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements Other than Audits or Reviews of Historical Financial Information, it is our opinion that management has fulfilled its duty to produce a proper and clearly set out registration and documentation of the Company's accounting information in accordance with the law and bookkeeping standards and practices generally accepted in Norway.
Arendal, 25 March 2021 PricewaterhouseCoopers AS
Lars Ole Lindal State Authorised Public Accountant
Arendals Fossekompani is listed on the Oslo Stock Exchange and is therefore subject to Norwegian securities trading legislation and the stock exchange's own regulations.
The following guidelines form the basis for corporate governance at Arendals Fossekompani:
NORWEGIAN CODE OF PRACTICE Each element of the Norwegian Code of Practice for Corporate Governance is addressed below. A description is given of Arendals Fossekompani's compliance with, and deviations from, the Code of Practice. A complete overview of the Code of Practice and official remarks by the Oslo Stock Exchange are available online at www.nues.no.
The Group has prepared a separate corporate governance policy, and the Board has decided to implement the Norwegian Code of Practice for Corporate Governance.
The Board has prepared a document entitled Core Values and Ethical Guidelines which covers areas including legal competence, corruption and discrimination, and which regulates the employees' securities trading activities.
The object of Arendals Fossekompani is, through in-house production, participation in new infrastructure, purchase or leasing, to make use of or sell electricity, as well as to participate, directly or indirectly, in other industrial activities or business enterprises,
2. BUSINESS ACTIVITIES including investing in real estate.
These objectives are expressly stated in Section 1 of the company's Articles of Association. The Articles of Association are available on the company's website: www.
arendalsfossekompani.no.
Arendals Fossekompani has significant financial capacity. Our investment portfolio will, at all times, consist partly of long-term and active ownership commitments, and partly of liquid financial assets. The bulk of our share portfolio will consist of a limited number of major investments. Our investment strategy is based on our belief that active, longterm and responsible ownership provides the best return for the risk involved.
The book value of the Group's equity as at 31 December 2020 was MNOK 3,856 which amounted to 55% of total assets. Actual equity is significantly higher, and the company has a solid financial foundation. The Board constantly assesses the company's financial capacity in light of its objectives, strategy and risk profile.
It is AFK's policy to pay a dividend that reflects the company's long-term strategy, financial position and investment capacity. The annual dividend shall, over time, ensure that shareholders receive a competitive return on their investment.
As of Q2 2020, AFK announces dividends on a quarterly basis. The Board of Directors approves the quarterly dividends based on an authorization from the General Meeting. When deciding the quarterly dividends, the Board of Directors takes into consideration expected cash flow, capital expenditure plans, financing requirements and appropriate financial flexibility. The Board believes that quarterly dividend payments provide a flexibility that benefits both the company and its shareholders.
From July 1, 2013, the general meeting has the opportunity to authorize the board to distribute dividends on the basis of the approved annual accounts. Proposals for such authorization should be justified. In order to ensure flexibility and efficiency in the implementation of quarterly dividend payments, the Board of Directors proposes that the Company's Annual General Meeting in 2021 authorize the Board to pay dividends, limited in time to the Company's Annual General Meeting in 2022.
Arendals Fossekompani (AFK) is an industrial investment company holding 7 main investments and a portfolio of financial investments. These operations employ 2,100 people in total. AFK has proud traditions in power production and owns and operates two hydropower plants. In addition, AFK operates globally in many forward-looking industries including 3D printing, algo trading, satellite services, battery and solar technology, software and digitalisation, as well as various green energy technologies.
Adopted by the Board of Directors on 17 August 2006 (last revised 25 March 2021)
No authorisation to undertake a share issue has been granted to the Board. The most recent capital increase occurred in 2012, when the share capital was raised by NOK 201,582,900 to NOK 223,981,000 through a transfer from other funds.
The general meeting can authorise the Board to purchase up to 10% of the company 's own shares. At the annual general meeting on 7 May 2020 the Board was authorised to purchase treasury shares up to a maximum of 7.7% of the total number of shares. The terms of the authorisation permit the Board to acquire treasury shares only between a minimum price of NOK 4 and a maximum price of NOK 200 per share (when adjusting for the share split on 20 November in which each share was split into 25 shares). This authorization will remain in effect until the Annual General Meeting in 2021.
As at 31 December 2020 the Group owns a total of 1,111,200 shares, or 2.0% of all the shares in the company. These shares are freely negotiable..
4. EQUAL TREATMENT OF SHAREHOLDERS AND TRANSACTIONS WITH RELA - TED PARTIES
The Group 's shares consist exclusively of A shares. According to Section 11 of the company 's Articles of Association, no shareholder may personally or by proxy vote for more than one quarter of the total number of shares. Shares transferred to new owners do not confer voting rights until the transfer has been approved by the Board. All shares have equal rights.
The Board may exercise its authority to acquire treasury shares as long as the shares are acquired at the market price. Correspondingly, the divestment of acquired shares will also be undertaken at market price yet so that the shares can be discounted if the shares are used in connection with programs for employees and board members. At the same time, the authorization gives the Board the flexibility to utilize the mecha nisms that the Public Limited Companies Act gives access to in situations where the acquisition or disposal of shares is considered advantageous to the company and the company 's shareholders, including for use in share purchase programs for directors and employees of the company.
No transactions have occurred between the company and shareholders, board members, senior executives or their related parties in 2020 that could be described as not immaterial transactions.
In 2020, shares were sold from the company to senior executives and board members, in accordance with the approved share purchase program. See Note 24 of the 2020 Annual Report.
If a board member or senior executive has a material direct or indirect interest in an agreement that is being entered into by the company, that person must disclose the fact before the matter is put to the Board, and he or she may not participate in discus sions or votes on that matter.
Due to AFK 's hydropower production, the current Norwegian concession legislation stipulates, among other things, that a shareholder who acquires more than 20 per cent of the total number of shares must apply for a concession. The Concession Act requi res that the Board of Directors approve such acquisitions. There are a number of other provisions in the concession legislation that may entail that acquisition of the company 's shares may have consequences for both the company itself and the other sharehol ders. Thus, the company has found that it is necessary to have an opportunity to deny the approval of the acquisition of shares. In accordance with Article 7 of the Articles of Association, any acquisition by means of transfer is conditional on the Board 's consent. Consent may only be denied if there is a valid reason for doing so.
Notification
The annual general meeting is held as early in the year as is practically possible after the close of the previous financial year, usually in April or May.
21 days prior to the General Meeting, meeting notices and attendance registration forms are sent to all shareholders with a known address. These documents are also made available on the company 's webpage and through the Oslo Stock Exchange distribu tion service. The annual report and other enclosures to the meeting are made available solely via the company 's webpage and the Oslo Stock Exchange distribution service. Shareholders who wish to receive the enclosures by post must contact the company. The Board will provide shareholders with all the information necessary to help them take a position on all agenda items, along with proposals relating to the election of board members. The Articles of Association permit notice of participation to be given up to two days prior to the date of the general meeting.
The company 's financial calendar will be published online.
Shareholders can give notice of their participation either in writing or via email. The Board wishes to arrange the meeting so that as many as possible of the shareholders are able to participate. Shareholders who cannot attend in person are encouraged to appoint a proxy. Representatives of the Board of Directors shall attend the general meeting, along with the auditor. The Chief Executive Officer (CEO) and the Chief Finan cial Officer (CFO) shall participate on behalf of executive management.
The Board of Directors will set the agenda according to the list in Section 10 of the Articles of Association. According to Section 10, the participants of the general meeting appoint a chairperson to lead the meeting.
The company has a Nominations Committee with three members. Candidates for election to the Board of Directors are announced in conjunction with the invitation to attend the general meeting. Nominations for other candidates can be submitted before and during the general meeting itself.
The Board consists of seven members and is currently composed of the following: Jon Hindar (Chairman), Morten Bergesen (Deputy Chairman), Arild Nysæther, Didrik Vigsnæs, Heidi Marie Petersen, Kristine Landmark and Stine Rolstad Brenna, all elec ted by the shareholders. Note 4 of the Annual Report contains information about board meeting attendance. Information about the competence and independence of board members is provided in subsequent paragraphs.
Election of board members The general meeting elects seven representatives to the Board of Directors. Ahead of the election, the names of candidates may be submitted to the Nominations Committee by an individual shareholder or by several shareholders jointly. Nominations submit ted in time will be included in the invitation to attend the general meeting sent to all shareholders and posted on the company 's website. Board members are elected by simple majority.
Members are elected for two years at a time, with the possibility of re-election. About half of all board members are elected each year.
The Board of Directors should be composed so that it safeguards the interests of the shareholder community and the company 's need for expertise and diversity. This means that the individual board members have the necessary experience, competence and capacity to carry out their duties satisfactorily and independently.
According to the company 's Articles of Association, the Board shall comprise five to seven members. The Board currently consists of seven members. The CEO is not a member of the Board. The Board is elected for two years at a time and selects its own chair. Jon Hindar has been elected to Chair the Board.
At the annual general meeting held in May 2020 Didrik Vigsnæs, Kristine Landmark and Rikke Reinemo were re-elected as Board Members for a term of two years. At an Extraordinary General Meeting in September, Rikke Reinemo left the Board and Stine Rolstad Brenna was elected as a new Board Member.
All shareholder-elected board members are considered autonomous and independent of Group management. The same applies as regards material business connections. At the close of the year Morten Bergesen, Erik Must (board member Arild Nysæther is the Managing Director of Must Invest AS) and Kjell Chr Ulrichsen (Didrik Vigsnæs is the Managing Director of Vicama AS, which is the largest shareholder in Ulefoss Invest AS) each owned – directly, indirectly or via related parties – approximately 26% of the company 's shares.
The Board works actively to ensure that no conflict of interest exists between share holders, the Board, executive management and the company 's other stakeholders.
-
In addition to the shares held by the representatives of the three principal shareholders mentioned above, as at 31 December 2020 board members had the following sharehol dings – either personally or through wholly owned companies: Arild Nysæther (7,500 shares), Jon Hindar (10,000 shares), Stine Rolstad Brenna (7,500 shares), Kristine Landmark (14,800 shares) and Heidi M. Petersen (22,475 shares).
Deviations from the Code: The Board elects its own chair, in accordance with Section 4 of the Articles of Association.
The Board shall determine the Group 's strategy, carry out necessary control functions and ensure that the Group is satisfactorily managed and organised. The Board shall set the company 's financial objectives and approve its plans and budgets.
The Rules of Procedure encompass the following: the role of the Board and its tasks, the tasks of the CEO and his or her obligations towards the Board, formal procedures for the handling of matters brought before the Board, notice of board meetings and matters required to be considered by the Board etc. The Rules also stipulate when the Board is in quorum, how minutes are to be kept, how legal disqualification is determined and how the duty of confidentiality is to apply. The Board may deviate from the Rules of Procedure in certain situations.
Providing instructions for executive management A clear distinction has been made between the tasks and work of the Board and that of executive management. The Chairman of the Board is responsible for ensuring that the Board 's proceedings and work are conducted in an effective and correct manner. The CEO is responsible for managing company operations. The CEO 's tasks are clearly stated in the instructions drawn up for that position.
Notice of board meetings and meeting procedures The Board has an annual plan containing a set of predetermined topics for considera tion at board meetings.
The Board normally meets 6–8 times a year. Additional meetings will be held when necessary. In 2020 a total of 10 board meetings were held.
All board members receive information about the company 's operational and financial performance on a regular basis and in good time before the scheduled meetings. Board members also receive monthly operational reports. The company 's business plan, stra tegy and risks are reviewed and evaluated regularly by the Board.
The final agenda for the board meeting is determined by the Chairman in consultation with the CEO. The CEO attends board meetings together with the board members. Others are invited to attend when this is deemed necessary.
Duty of confidentiality – communication between the Board and shareholders In principle, the minutes of board meetings and the Board 's discussions are confiden tial, unless the Board decides otherwise or there is no apparent reason to maintain
confidentiality or secrecy.
Legal competence
The Board complies with the rules for legal competence and disqualification pursuant to Section 6–27 of the Norwegian Public Limited Liability Companies Act and the Board 's own Rules of Procedure. There were no issues in 2020 which a board member was disqualified from discussing or voting on for reasons of legal competence. See also item 4 above, Guidelines for board members and senior executives.
Use of board committees of the Board.
The Group has established an Audit Committee consisting of members of the Board. The Board has also established a Remunerations Committee comprising members
The Board carries out an assessment of its activities once a year. This assessment will take as its starting point the company 's business activities and the work of the Board, how the Board works and its interactions. In this connection the Board also evaluates its performance in relation to corporate governance.
The Group has no separate internal auditing department. Financial audits are carried out on a task-sharing basis, and in compliance with our guidelines and approval routines. The Board carries out an annual review of the company 's most important risk areas and internal controls and receives a report from the auditor addressing such matters. The Board evaluates the company 's core values and guidelines on ethics and social responsibility every year and verifies the extent of compliance with these guidelines.
Group and company financial reporting process The Board receives monthly financial reports, with accompanying comments on the financial performance of the Group, the company and all subsidiaries. Extensive reports are prepared every fiscal quarter, with comments about the financial status of all levels in the Group.
The finance department analyses the company 's income statement and balance sheet in connection with each monthly report. A detailed reconciliation of balance sheet and income statement items is prepared each quarter, based on a predetermined plan. The value of material and risk-exposed balance sheet items is assessed. Major and unusual transactions are reviewed. All control procedures are documented. The most signifi cant subsidiaries (see Note 1 – Segment reporting) have similar routines for financial reporting to the Group.
FCCS Oracle, a cloud-based database solution delivered by Oracle, is used for financial consolidation. Our subsidiaries report all figures to this database online. The finance departments at our subsidiaries are responsible for the quality of the data reported each month and quarter. The quality of the reported data is checked by the compa nies ' auditors in connection with the preparation of the annual financial statements. The subsidiary EFD Induction also uses FCCS Oracle for its consolidation. The other subsidiaries use spreadsheets for consolidation.
The Audit Committee (see above) carries out and documents a detailed review of the quarterly and annual reports prior to their consideration by the Board. The minutes and documentation from the Audit Committee meetings are available to the Board.
The annual general meeting determines the remuneration payable to board members. The 2020 annual general meeting resolved that, with effect from May 2020, the Chai rman of the Board will receive a fee of NOK 510,000 and NOK 300,000 will be paid to the other board members, unchanged from 2019. Arild Nysæther received GBP 22,500 for board duties at NSSLGlobal and Morten Bergesen received EUR 15,000 for board duties at Cogen Energia España.
Remuneration paid to board members is not linked to financial performance or option schemes etc. None of the Board 's shareholder-elected members work for the company in other capacities.
The statement on remuneration of executive management (Lederlønnserklæringen) is a separate agenda item that is put to the annual general meeting.
The CEO 's employment terms and conditions are determined by the Board of Dire ctors. Each year the Board makes a thorough assessment of the salary and other remuneration paid to the CEO. The Board may also award an annual performance-re lated bonus to the CEO.
The Board 's evaluation is based on market surveys for similar positions. The terms and conditions for other senior executives and employees at the parent company are set by the CEO, who then informs the Chairman of the Board. Terms and conditions for the senior executives of subsidiaries are set by the boards of the respective companies.
The Board takes the position that the company must remain competitive with regard to the remuneration paid to senior executives. These guidelines are presented to the annual general meeting for information purposes.
Senior executives at the parent company benefit from normal performance-related bonus schemes. The subsidiaries offer performance-based remuneration to varying degrees, as laid down in employees ' contracts.
Terms and conditions
Terms and conditions are described in Note 4 of the Annual Report.
The Group normally publishes its preliminary annual financial statements in February. The complete annual financial statements, along with the Annual Report, are published 's website in March/April. Otherwise, accounting figures are reported 's financial calendar is published on the company 's
on the company on a quarterly basis. The company websites.
Other market information
The Group considers it important to inform owners and investors about its performance and financial status. Emphasis is placed on providing the financial market with the same information at the same time. In conversations with shareholders and analysts, care is taken to avoid giving more information to some than to others.
14. TAKEOVERS
Based on our current shareholder structure, the conditions described for takeovers do not apply to the company.
Auditor
The auditor is at the disposal of the Board of Directors and shall attend board meetings if needed. The auditor shall participate in Audit Committee meetings and attend any board meetings that deal specifically with the annual financial statements. The auditor will at that time inform the Board about any issues or concerns he or she might have regarding the annual financial statements and other matters, including any potential disagreements between the auditor and executive management.
The Board holds annual meetings with the auditor to review reports submitted by the 's accounting policies, risk areas and internal control
latter concerning the company routines.
Auditor 's formal relationship with executive management The Board has drawn up guidelines for the Group 's business relations with the auditor. The fees paid to the auditor for statutory auditing and consulting services are presen ted separately in the annual financial statements.
PwC is the elected auditor. In addition to an ordinary audit, the firm has also provided consulting services within areas such as accounting, taxation and reporting to the Norwegian Water Resources and Energy Directorate (NVE). The Board regularly asses - 's control function is being carried out satisfactorily.
ses whether the auditor
| 2020 | 2019 | 2018 | 2017 | 2016 | |
|---|---|---|---|---|---|
| Group | |||||
| Sales | 3 673 068 | 4 495 635 | 4 353 059 | 3 951 666 | 3 453 307 |
| Cost of sales | 1 436 767 | 2 203 139 | 2 049 618 | 1 773 025 | 1 461 820 |
| EBITDA | 10) 447 328 |
505 206 | 468 503 | 459 711 | 397 895 |
| Operating profit | 187 649 | 232 926 | 231 985 | 238 952 | 191 122 |
| Net financial items | -52 614 | 11 249 | 17 998 | -72 245 | 139 711 |
| Equity company income | -14 321 | -1 632 | -3 061 | -6 329 | -5 065 |
| Profit before taxes | 120 714 | 242 544 | 246 922 | 160 378 | 325 768 |
| Provision for income tax | -39 382 | -150 927 | -129 262 | -82 075 | 62 640 |
| Net profit for the year, continuing opera tions |
81 332 | 91 617 | 117 862 | 78 303 | 263 127 |
| Net discontinued operations income | 38 803 | -44 898 | 22 873 | 2 421 203 | 212 522 |
| Net profit for the year | 120 135 | 46 718 | 140 735 | 2 499 507 | 475 649 |
| Minority interest income | -55 229 | -28 322 | -28 322 | -84 859 | -91 714 |
| Total Comprehensive Income | -40 561 | 269 972 | 762 375 | 2 774 555 | 355 972 |
| 2020 | 2019 | 2018 | 2017 | 2016 | |||
|---|---|---|---|---|---|---|---|
| Group | |||||||
| Return on equity | 1) | % | 2,3 % | 2,8 % | 3,1 % | 2,1 % | 8,3 % |
| Total profitability | 2) | % | 2,9 % | 2,8 % | 2,7 % | 3,8 % | 4,7 % |
| Gross operating margin | 3) | % | 12,2 % | 11,2 % | 10,8 % | 11,6 % | 11,5 % |
| Net operating margin | 4) | % | 5,11% | 5,18% | 5,33% | 6,0 % | 5,5 % |
| Gross profit margin | 5) | % | 2,2 % | 2,0 % | 2,7 % | 2,0 % | 7,6 % |
| Equity share | 6) | % | 55,2 % | 54,0 % | 53,6 % | 51,4 % | 40,9 % |
| NIBD (tNOK) | 7) | -461 038 | -199 037 | 97 528 | 108 360 | 1 957 907 | |
| Liquidity ratio 1 | 8) | 1,9 | 2,2 | 2,1 | 3,3 | 2,1 | |
| Result after tax per share | 9) | NOK | 2,17 | 0,85 | 2,57 | 45,67 | 8,69 |
| Dividend per share | NOK | 3,38 | 2,24 | 2,24 | 26,36 | 20,60 | |
| Average power production last 10 years (GWh) |
509 | 502 | 502 | 500 | 500 |
1) Return on equity=
Net profit for the year, continuing operations divided by average equity
2) Total profitability=
Net profit for the year, continuing operations + interest cost divided by average total capital
3) Gross operating margin=
Operating profit + depreciation in percentage of net operating income
4) Net operating margin=
Operating income in percentage of net operating income.
5) Gross profit margin=
Net profit for the year, continuing operations divided by net operating income
6) Equity share=
Equity divided by total capital
Net profit for the year divided by averange number of shares
10) EBITDA - Result before interest, tax, depreciation, amortization and impairment = Operating income- operating cost
| ADMINISTRATION | VOLUE | NSSLGLOBAL CONSOLIDATED |
EFD INDUCTION CONSOLIDATED |
||||||
|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||
| Non-current borrowings | 216 773 | 133 133 | 29 | -11 680 | 73 798 | 59 876 | |||
| Interest-bearing current borrowings |
7 069 | 14 651 | |||||||
| 1st year installm. non-current borrowings |
62 | 61 | |||||||
| Bond (curr.) | 299 912 | 299 735 | |||||||
| Interest and ex rate swap (curr.) | 106 847 | 92 587 | |||||||
| Bank overdraft | 3 695 | 64 346 | 11 904 | 15 781 | 71 639 | 68 640 | |||
| Current interest-bearing liabilities, IC | 28 921 | 52 801 | 36 489 | 59 783 | 31 248 | 29 438 | |||
| Non-current borrowings IC | 19 | 152 | |||||||
| Total liabilities | 652 452 | 578 256 | 40 214 | 112 450 | 11 904 | 15 781 | 183 835 | 172 818 | |
| Cash and cash equivalents | 765 641 | 498 789 | 433 527 | 233 117 | 285 785 | 282 295 | 131 331 | 91 414 | |
| Intra-group loans | 142 176 | 292 403 | |||||||
| Current interest-bearing rec., IC | 144 641 | 122 505 | 28 997 | 52 801 | |||||
| Financial assets clas. as held for trading |
10 000 | 10 150 | |||||||
| Total asets | 1 052 458 | 913 697 | 472 525 | 296 067 | 285 785 | 282 295 | 131 331 | 91 414 | |
| Net interest bearing debt | -400 006 | -335 441 | -432 311 | -183 618 | -273 880 | -266 514 | 52 176 | 81 478 |
| TEKNA CONSOLIDATED |
CONSOLIDATED | COGEN | PROPERTY | ELIMINATIONS | TOTAL | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |
| Bond n-c | 299 735 | |||||||||
| Interest and ex rate swap n-c |
92 587 | |||||||||
| Non-current borrowings |
25 209 | 23 288 | 76 991 | 25 762 | 107 452 | 90 063 | 500 252 | 320 442 | ||
| Interest-bearing current borrowings |
4 397 | 2 450 | 80 429 | 11 465 | 97 530 | |||||
| 1st year installm. non-current borrowings |
76 702 | 1 704 | 2 811 | 78 469 | 2 872 | |||||
| Bond (curr.) | 299 912 | |||||||||
| Interest and ex rate swap (curr.) |
106 847 | |||||||||
| Bank overdraft | 222 866 | 32 849 | 310 105 | 181 616 | ||||||
| Non-current borrowings, IC |
137 054 | 221 093 | 66 260 | 5 050 | 5 050 -142 054 -287 353 | |||||
| Current interest bearing liabilities, IC |
35 167 | 41 813 | -122 | -5 050 | ||||||
| Non-current borrowings IC |
-122 | -5 050 | -53 | 152 | ||||||
| Total liabilities | 166 660 | 246 831 | 188 860 | 172 451 | 378 885 | 130 773 -142 298 -297 453 1 306 996 994 935 | ||||
| Cash and cash equivalents |
16 808 | 10 176 | 69 479 | 48 375 | 54 994 | 7 610 | 1 757 706 | 1 171 776 |
||
| Intra-group loans | -142 176 -292 403 | |||||||||
| Current intrest bearing rec., IC |
||||||||||
| Financial assets clas. as held for trading |
10 000 | 10 150 | ||||||||
| Total asets | 1 181 | |||||||||
| 16 808 | 10 176 | 69 479 | 48 375 | 54 994 | 7 610 -142 176 -292 403 1 767 706 | 926 | ||||
| Net interest | ||||||||||
| bearing debt | 149 852 | 236 654 | 119 382 | 124 076 | 355 452 | 124 363 | -461 038 -199 037 |
Arendals Fossekompani Developing green-tech companies
Production Arendals Fossekompani's annual report 2020 has been produced by Group Finance and Group Communication
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Visiting Arendals Fossekompani ASA Langbryggen 9 4841 Arendal Norway
Post Postboks 280 4803 Arendal
Contact Tlf: +47 37 23 44 00 [email protected] www.arendalsfossekompani.no
Investor contact Lars Peder Fensli, CFO [email protected] Tlf: +47 953 63 670
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