4 Segment information

The Management Board sets performance targets, approves and monitors the budgets prepared by operating segments. Operating segments 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 five operating segments: Agribusiness, Food & Water, Financial Institutions, Energy, Private Equity and Other.

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. All fair value changes including currency effects are recorded in the profit and loss account.

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, 2023	Financial Institutions	Energy	Agribusiness, Food & Water	Private Equity	Other	Total

Interest income	115,115	69,997	40,953	1,305	29,349	256,719
Interest expenses	-38,975	-23,170	-13,762	-37,120	-30,618	-143,645
Net fee and commission income	-1,991	808	-1,340	156	-308	-2,675
Dividend income	-	-	-	11,443	-	11,443
Results from equity investments	-	-	-	22,144	-	22,144
Results from financial transactions	1,167	-3,874	1,336	3,603	648	2,880
Remuneration for services rendered	2,069	3,318	2,703	6,162	1,759	16,011
Gains and losses due to recognition	-	1,226	10	268	-	1,504
Other operating income	-	-	-	-	-	-
Allocated income	-208	-124	-73	-198	603	-
Total underlying income	77,177	48,181	29,827	7,763	1,433	164,381

Operating expenses	-22,216	-18,049	-13,808	-25,907	-1,412	-81,392
Total operating expenses	-22,216	-18,049	-13,808	-25,907	-1,412	-81,392

Impairments on loans and guarantees	-3,335	-23,330	-7,521	-118	212	-34,092
Total impairments	-3,335	-23,330	-7,521	-118	212	-34,092

Profit/(loss) before taxation	51,626	6,802	8,498	-18,262	233	48,897
Share in results from associates	-	-	-	32,102	-	32,102
Taxation	-13,320	-1,755	-2,192	15,714	-60	-1,613
Underlying net profit/(loss)	38,306	5,047	6,306	29,554	173	79,386

Currency effect equity investments	-	-	-	-35,185	-	-35,185
Net profit/(loss)	38,306	5,047	6,306	-5,631	173	44,201

Segment assets at June 30, 2023	Financial Institutions	Energy	Agribusiness, Food & Water	Private Equity	Other	Total

Loans to the private sector	2,681,379	1,467,544	829,495	29,211	8,307	5,015,936
Equity investments and investments in associates	-	-	-	2,610,714	-	2,610,714
Other assets	840,184	459,840	259,914	827,194	2,603	2,389,735
Total assets	3,521,563	1,927,384	1,089,409	3,467,119	10,910	10,016,385
Contingent liabilities – Effective guarantees issued	94,563	18,538	24,494	539	-	138,134
Assets under management (loans and equity investments) managed for the risk of the state	96,193	173,134	142,598	479,285	-	891,210

At June 30, 2022	Financial Institutions	Energy	Agribusiness, Food & Water	Private Equity	Other	Total

Interest income	61,272	50,927	26,304	1,137	2,665	142,305
Interest expenses	-4,644	-5,183	-2,228	-8,627	-2,771	-23,453
Net fee and commission income	-652	402	-1,165	514	-220	-1,121
Dividend income	-	-	-	31,998	-	31,998
Results from equity investments	-	-	-	-4,012	-	-4,012
Results from financial transactions	-9,176	4,551	-8,815	-5,328	30,292	11,524
Remuneration for services rendered	2,076	4,010	1,896	6,099	3,883	17,964
Gains and losses due to recognition	3	-	-	-	-	3
Other operating income	-	-	-	-	-167	-167
Allocated income	7,148	7,976	3,428	13,277	-31,829	-
Total underlying income	56,027	62,683	19,420	35,058	1,853	175,041

Operating expenses	-19,614	-17,156	-12,609	-22,863	-1,147	-73,389
Total operating expenses	-19,614	-17,156	-12,609	-22,863	-1,147	-73,389

Impairments on loans and guarantees	-3,386	-66,823	-43,481	-951	-1	-114,642
Total impairments	-3,386	-66,823	-43,481	-951	-1	-114,642

Profit/(loss) before taxation	33,027	-21,296	-36,670	11,244	705	-12,990
Share in results from associates	-	-	-	-15,357	-	-15,357
Taxation	-8,257	5,324	9,167	4,093	-176	10,151
Underlying net profit/(loss)	24,770	-15,972	-27,503	-20	529	-18,196

Currency effect equity investments	-	-	-	120,208	-	120,208
Net profit/(loss)	24,770	-15,972	-27,503	120,188	529	102,012

Segment assets at June 30, 2022	Financial Institutions	Energy	Agribusiness, Food & Water	Private Equity	Other	Total

Loans to the private sector	2,304,890	1,532,560	980,092	25,813	13,608	4,856,963
Equity investments and investments in associates	-	-	-	2,524,707	-	2,524,707
Other assets	713,753	474,586	303,504	789,817	4,213	2,285,873
Total assets	3,018,643	2,007,146	1,283,596	3,340,337	17,821	9,667,543
Contingent liabilities – Effective guarantees issued	63,896	20,179	13,326	562	-	97,963
Assets under management (loans and equity investments) managed for the risk of the state	148,015	187,856	155,193	607,797	-	1,098,861