4 Segment information
The Management Board sets performance targets, approves and monitors the budgets prepared by servicing units. Servicing units are not identical to the strategic sectors.
FMO's strategic sectors represent the economic sectors in which FMO operates. The three strategic sectors are Agribusiness Food & Water, Financial Institutions and Energy, which also represent economic sectors. FMO's Management Board steers on the following six servicing units: Agribusiness, Food & Water, Financial Institutions and Energy, Private Equity, Partnership for impact and Other. In first half of 2020, no transactions are identified which are reallocated to a different servicing unit.
FMO presents the results of the operating segments using a financial performance measure called underlying profit. Underlying profit excludes the EUR/USD currency effects related to the results from equity investments. Since the adoption of IFRS 9, all fair value changes including currency effects are now recorded in the profit and loss account instead of shareholder's equity.
Underlying profit as presented below is an alternative performance measure. The table below shows a reconciliation of the underlying net profit to the net profit.
At June 30, 2020 | Financial Institutions | Energy | Agribusiness, Food & Water | Private Equity | Partnership for impact | Other | Total |
Interest income | 71,859 | 66,509 | 26,308 | 2,120 | 391 | 5,641 | 172,828 |
Interest expenses | -13,331 | -15,628 | -6,612 | -15,442 | -212 | -6,869 | -58,094 |
Net fee and commission income | 569 | -1,218 | -303 | 540 | - | -154 | -566 |
Dividend income | - | - | - | 20,166 | - | - | 20,166 |
Results from equity investments | - | - | - | -170,319 | - | - | -170,319 |
Results from financial transactions | -6,307 | 2,035 | -4,969 | -2,419 | - | -16,421 | -28,081 |
Remuneration for services rendered | 2,493 | 3,261 | 1,694 | 4,494 | 3,195 | 84 | 15,221 |
Gains and losses due to derecognition | - | - | 2,000 | - | - | - | 2,000 |
Other operating income | - | - | - | 38 | - | 577 | 615 |
Total underlying income | 55,283 | 54,959 | 18,118 | -160,822 | 3,374 | -17,142 | -46,230 |
Operating expenses | -15,759 | -14,126 | -11,854 | -16,396 | -4,252 | -2,937 | -65,324 |
Total operating expenses | -15,759 | -14,126 | -11,854 | -16,396 | -4,252 | -2,937 | -65,324 |
Impairments on loans and guarantees | -43,417 | -44,301 | -17,326 | -464 | -51 | -206 | -105,765 |
Total impairments | -43,417 | -44,301 | -17,326 | -464 | -51 | -206 | -105,765 |
Profit/(loss) before results from associates and taxation | -3,893 | -3,468 | -11,062 | -177,682 | -929 | -20,285 | -217,319 |
Share in results from associates | - | - | - | -66,950 | - | - | -66,950 |
Taxation | 973 | 867 | 2,765 | 10,636 | 232 | 7,876 | 23,349 |
Underlying net profit/(loss) | -2,920 | -2,601 | -8,297 | -233,996 | -697 | -12,409 | -260,920 |
Currency effect equity investments | - | - | - | -18,683 | - | - | -18,683 |
Net profit/(loss) | -2,920 | -2,601 | -8,297 | -252,679 | -697 | -12,409 | -279,603 |
Segment assets at June 30, 2020 | Financial Institutions | Energy | Agribusiness, Food & Water | Private Equity | Partnership for impact | Other | Total |
Loans to the private sector | 2,134,659 | 1,755,437 | 958,399 | 33,577 | 17,694 | 55,292 | 4,955,058 |
Equity investments and investments in associates | - | - | - | 1,938,007 | - | - | 1,938,007 |
Other assets | 830,585 | 683,032 | 372,908 | 767,134 | 6,884 | 21,515 | 2,682,058 |
Total assets | 2,965,244 | 2,438,469 | 1,331,307 | 2,738,718 | 24,578 | 76,807 | 9,575,123 |
Contingent liabilities – Effective guarantees issued | 27,425 | 47,352 | - | - | - | - | 74,777 |
Assets under management (loans and equity investments) managed for the risk of the state | 168,200 | 226,381 | 157,833 | 407,923 | 15,878 | 2,071 | 978,286 |
At June 30, 2019 | Financial Institutions | Energy | Agribusiness, Food & Water | Private Equity | Partnership for impact | Other | Total |
Interest income | 71,187 | 65,238 | 36,333 | 2,440 | 18 | 17,229 | 192,445 |
Interest expenses | -18,648 | -21,501 | -9,255 | -20,159 | -289 | -14,169 | -84,021 |
Net fee and commission income | 1,295 | -1,977 | -515 | 441 | - | -590 | -1,346 |
Dividend income | - | - | - | 11,537 | - | - | 11,537 |
Results from equity investments | - | - | - | -7,511 | - | -7,511 | |
Results from financial transactions | 3,335 | 976 | 333 | 1,406 | - | -571 | 5,479 |
Remuneration for services rendered | 2,834 | 3,053 | 1,304 | 4,176 | 3,107 | 54 | 14,528 |
Gains and losses due to derecognition | 1,493 | 417 | - | - | - | - | 1,910 |
Other operating income | - | 935 | 294 | - | - | 279 | 1,508 |
Total underlying income | 61,496 | 47,141 | 28,494 | -7,670 | 2,836 | 2,232 | 134,529 |
Operating expenses | -15,298 | -12,706 | -10,193 | -13,949 | -4,628 | -2,967 | -59,741 |
Total operating expenses | -15,298 | -12,706 | -10,193 | -13,949 | -4,628 | -2,967 | -59,741 |
Impairments on loans and guarantees | -75 | -16,042 | 1,723 | -1,307 | -19 | 1,225 | -14,495 |
Total impairments | -75 | -16,042 | 1,723 | -1,307 | -19 | 1,225 | -14,495 |
Profit before results from associates and taxation | 46,123 | 18,393 | 20,024 | -22,926 | -1,811 | 490 | 60,293 |
Share in results from associates | - | - | - | 2,023 | - | - | 2,023 |
Taxation | -6,823 | -2,721 | -2,962 | 3,928 | 268 | -72 | -8,382 |
Underlying net profit | 39,300 | 15,672 | 17,062 | -16,975 | -1,543 | 418 | 53,934 |
Currency effect equity investments | - | - | - | 4,010 | - | - | 4,010 |
Net profit | 39,300 | 15,672 | 17,062 | -12,965 | -1,543 | 418 | 57,944 |
Segment assets at June 30, 2019 | Financial Institutions | Energy | Agribusiness, Food & Water | Private Equity | Partnership for impact | Other | Total |
Loans to the private sector | 1,970,171 | 1,759,092 | 909,332 | 46,350 | 18,983 | 64,072 | 4,768,000 |
Equity investments and investments in associates | - | - | - | 1,921,135 | - | - | 1,921,135 |
Other assets | 778,870 | 695,424 | 359,487 | 777,808 | 7,505 | 25,330 | 2,644,424 |
Total assets | 2,749,041 | 2,454,516 | 1,268,819 | 2,745,293 | 26,488 | 89,402 | 9,333,559 |
Contingent liabilities – Effective guarantees issued | 50,338 | 26,374 | - | - | - | - | 76,712 |
Assets under management (loans and equity investments) managed for the risk of the state | 167,354 | 238,812 | 116,060 | 399,717 | - | 6,613 | 928,556 |