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


Total 2019


Total 2018

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:

  1. Asia Participations B.V.: 100%;

  2. FMO Investment Management B.V.: 100%;

  3. FMO Medu II Investment Trust Ltd.: 100%;

  4. Nuevo Banco Comercial Holding B.V.: 100%;

  5. Equis DFI Feeder L.P.: 63%

  6. 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. 

 


2019


2018

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.