Notes to the company balance sheet
The company annual accounts of FMO should be read in conjunction with the consolidated annual accounts including the risk management, segment information and the notes to the consolidated accounts. The FMO company annual accounts is, due to the limited investments activities of our consolidated subsidiaries, predominantly the same as the consolidated annual accounts. Therefore, for the notes to the specific items of the balance sheet and the profit & loss accounts we refer to the consolidated annual accounts to the extent these are not specifically disclosed hereafter.
With respect to the information about the maturity of the assets and liabilities recorded in the balance sheet of the company annual accounts we refer to the table with the categorization of principal cash flow per maturity bucket in the section Liquidity risk of the Risk Management Chapter.
A. Banks
2019 | 2018 | |
Banks | 60,087 | 35,811 |
Balance at December 31 | 60,087 | 35,811 |
The cash on bank accounts can be freely disposed of.
B. Equity investments
Equity measured at FVOCI | Equity measured at FVPL |
|
| |
Balance at January 1 | 77,553 | 1,487,917 | 1,565,470 | 1,485,716 |
Purchases and contributions | 27,223 | 269,234 | 296,457 | 295,238 |
Reclassification from loans | - | 11,312 | 11,312 | 4,814 |
Sales | - | -87,868 | -87,868 | -166,662 |
Impairments | - | - | - | - |
Write-offs | - | - | - | -4,268 |
Changes in fair value | 18,145 | 51,739 | 69,884 | -49,368 |
Balance at December 31 | 122,921 | 1,732,334 | 1,855,255 | 1,565,470 |
C. Subsidiaries
2019 | 2018 | |
Balance at January 1 | 37,457 | 35,088 |
Purchases and contributions | - | - |
Share in other comprehensive income | - | - |
Share in net results | 8,939 | 2,369 |
Return of Capital | -23,792 | - |
Balance at December 31 | 22,604 | 37,457 |
The investments in subsidiaries consist of the following interests in the share capital of:
Asia Participations B.V.: 100%;
FMO Investment Management B.V.: 100%;
FMO Medu II Investment Trust Ltd.: 100%;
Nuevo Banco Comercial Holding B.V.: 100%;
Equis DFI Feeder L.P.: 63%
NedLinx B.V.: 100%.
The following table summarizes the carrying amount of the subsidiaries.
2019 | 2018 | |
Asia Participations B.V. | 17,534 | 9,051 |
FMO Investment Management B.V. | 4,442 | 4,226 |
FMO Medu II Investment Trust Ltd. | 23 | 2,867 |
Nuevo Banco Comercial Holding B.V. | 396 | 13,770 |
Equis DFI Feeder L.P. | 209 | 7,543 |
Balance at December 31 | 22,604 | 37,457 |
D. Other Receivables
2019 | 2018 | |
Receivables related to equity disposals | 7,509 | 6,224 |
Taxes and social premiums | 1,037 | 1,007 |
To be declared on State guaranteed loans | 3,264 | 894 |
Accrued management fees State funds | - | - |
Transaction fee receivables and prepayments | 13,603 | 12,167 |
Intercompany receivables from subsidiaries | 6,506 | 7,136 |
Balance at December 31 | 31,919 | 27,428 |
E. Shareholders’ equity
Share capital
The authorized capital amounts to €45,380, consisting of A shares of €22.69 each, which are held by the Dutch State, and B shares of €22.69 each as well, which are for held by commercial banks and private investors. The Dutch State holds 51% of the total shares of FMO, while commercial banks and private investors hold the remaining 49%. The voting rights for A shares and B shares are equal.
In addition, the shareholders' equity of the company comprises of three reserves, which result from the Agreement State-FMO of November 16, 1998. These are the share premium reserve, the development fund and the contractual reserve. As long as the company continues its activities, these reserves are not available to the shareholders. Upon liquidation of FMO these reserves fall to the Dutch State, after settlement of the contractual return to the shareholders.
Authorized share capital | 2019 | 2018 |
1,020,000 A shares x €22.69 | 23,144 | 23,144 |
980,000 B shares x €22.69 | 22,236 | 22,236 |
Balance at December 31 | 45,380 | 45,380 |
Issued and paid-up share capital | 2019 | 2018 |
204,000 A shares x €22.69 | 4,629 | 4,629 |
196,000 B shares x €22.69 | 4,447 | 4,447 |
Balance at December 31 | 9,076 | 9,076 |
Share premium reserve
Share premium reserve is sole contributed by Shareholders of A shares on the transfer to the company of investments administrated on behalf of the State at the time of the financial restructuring and amounts to €29,272 (2018: €29,272).
Contractual reserve
The addition relates to that part of the net profit, which FMO is obliged to reserve under the Agreement State-FMO of November 16, 1998 (see section ‘Additional information’).
Development fund
This special purpose reserve contains the annual budgetary allocations made by the Dutch State to finance the portfolio of loans and equity investments.
Other reserves
Retained earnings | Share in other comprehensive income of subsidiaries | Total | |
Balance at January 1, 2018 | 32,162 | - | 32,162 |
Gains/losses during the period | - | - | - |
Balance at December 31, 2018 | 32,162 | - | 32,162 |
Gains/losses during the period | - | - | - |
Balance at December 31, 2019 | 32,162 | - | 32,162 |
Legal Reserves
Pursuant to Dutch reporting requirements in Part 9 of Book 2 of the Dutch Civil Code the table below reflects the legal reserves included in the total Shareholders’s equity of €3,127,037. Legal reserves are not freely attributable to any shareholders. These reserves include fair value reserve, actuarial reserve and translation reserve.
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| |
Fair value reserve | 33,082 | 17,773 |
Actuarial result pensions | -13,974 | -21,123 |
Translation reserve | -2,742 | -6,758 |
Balance at December 31 | 16,366 | -10,108 |
Proposal for appropriation of profit
A company net profit of €120,363 was recorded in 2019. Under the Agreement State-FMO of November 16, 1998, FMO is required to add €117,656 to the contractual reserve. Therefore the 2019 profit is not completely distributable. The distributable element of the net profit amounts to €2,707 (2018: €3,570). The Management Board and the Supervisory Board propose distributing a sum of €2,707 (2018: €3,570) as cash dividend equaling €6.77 per A and B share (2018: €8.92 per A and B share). This proposal for dividend distribution can be withdrawn if FMO's economical and financial conditions deteriorate significantly in the period up to the moment of distribution of the dividend. This reservation is the result of the recommendation of the European Central Bank on January 10, 2019 and adopted by the Dutch Central Bank.