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