Segment reporting by operating segments

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 and Water, Financial Institutions and Energy, which represent economic sectors. As per December 31, 2023, FMO's Management Board steers on the following four operating segments: Financial Institutions, Energy, Agribusiness Food and Water and Private Equity.

In 2023, two transactions were partly transferred from Agribusiness, Food and Water to Private Equity due to the fact that two loans were converted to equity. The total amount of the transfer was €2 million.

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 all fair value changes including currency effects are now recorded in the profit and loss account instead of shareholder's equity since the adoption of IFRS 9.

Underlying profit as presented below is an alternative performance measure. A reconciliation of the underlying net profit to the net profit as reported under the statement of profit and loss is performed in the table here below.

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

Interest income	230,946	147,269	78,717	3,353	72,306	532,591
Interest expenses	-86,665	-51,446	-29,214	-73,276	-70,546	-311,147
Net fee and commission income	-3,558	1,758	-3,969	375	-1,071	-6,465
Dividend income	-	-	-	34,481	-	34,481
Results from equity investments	-	-	-	21,717	-	21,717
Results from financial transactions	8,199	1,361	5,397	26,628	-33,956	7,629
Remuneration for services rendered	4,905	5,650	4,590	12,511	3,679	31,335
Gains and losses due to derecognition	-	2,237	-41	268	-	2,464
Other operating income	-	-	-	-	79	79
Allocated income	-11,534	-6,847	-3,888	-9,752	32,021	-
Total underlying income	142,293	99,982	51,592	16,305	2,512	312,684

Operating expenses	-48,828	-40,017	-30,799	-55,100	-2,856	-177,600
Total operating expenses	-48,828	-40,017	-30,799	-55,100	-2,856	-177,600

Impairments on loans and guarantees	-10,990	-10,723	-18,073	-125	265	-39,646
Total impairments	-10,990	-10,723	-18,073	-125	265	-39,646

Profit/(loss) before taxation	82,475	49,242	2,720	-38,920	-79	95,438
Share in the result of associates/joint ventures	-	-	-	26,065	-	26,065
Taxation	-9,312	-5,560	-307	18,533	9	3,363
Underlying net profit/(loss)	73,163	43,682	2,413	5,678	-70	124,866

Currency effect equity investments	-	-	-	-59,944	-	-59,944
Net profit/(loss)	73,163	43,682	2,413	-54,266	-70	64,922

	2022
	Financial Institutions	Energy	Agribusiness, Food and Water	Private Equity	Other	Total

Interest income	152,832	118,082	62,123	2,916	15,131	351,084
Interest expenses	-23,104	-25,349	-10,969	-42,986	-13,892	-116,300
Net fee and commission income	-2,354	2,957	-2,511	533	-522	-1,897
Dividend income	-	-	-	41,423	-	41,423
Results from equity investments	-	-	-	-33,354	-	-33,354
Results from financial transactions	-11,798	-1,382	-18,870	-33,860	47,079	-18,831
Remuneration for services rendered	5,705	6,543	3,921	12,695	4,073	32,937
Gains and losses due to derecognition	3	299	-	-3	-	299
Other operating income	-	-	-	-	-	-
Allocated income	10,956	12,021	5,202	20,384	-48,563	-
Total underlying income	132,240	113,171	38,896	-32,252	3,306	255,361

Operating expenses	-40,942	-35,065	-25,829	-48,154	-2,450	-152,440
Total operating expenses	-40,942	-35,065	-25,829	-48,154	-2,450	-152,440

Impairments on loans and guarantees	-15,395	-77,571	-49,171	-402	-244	-142,783
Total impairments	-15,395	-77,571	-49,171	-402	-244	-142,783

Profit/(loss) before taxation	75,903	535	-36,104	-80,808	612	-39,862
Share in the result of associates/joint ventures	-	-	-	-58,596	-	-58,596
Taxation	-13,716	-97	6,524	26,402	-109	19,004
Underlying net profit/(loss)	62,187	438	-29,580	-113,002	503	-79,454

Currency effect equity investments	-	-	-	80,489	-	80,489
Net profit/(loss)	62,187	438	-29,580	-32,513	503	1,035

Segment assets	2023
	Financial Institutions	Energy	Agribusiness, Food and Water	Private Equity	Other	Total

Loans to the private sector	2,595,261	1,516,403	737,279	29,023	5,697	4,883,663
Equity investments and investments in associates	-	-	-	2,669,024	-	2,669,024
Other assets	937,994	548,067	266,472	975,143	2,058	2,729,734
Total assets	3,533,255	2,064,470	1,003,751	3,673,190	7,755	10,282,421
Contingent liabilities – Effective guarantees issued	112,079	17,842	24,222	532	-	154,675
Assets under management (loans and equity investments) managed for the risk of the state	111,065	156,505	138,766	542,654	-	948,990

Segment assets	2022
	Financial Institutions	Energy	Agribusiness, Food and Water	Private Equity	Other	Total

Loans to the private sector	2,590,592	1,524,168	961,131	22,521	11,223	5,109,635
Equity investments and investments in associates	-	-	-	2,579,596	-	2,579,596
Other assets	744,821	438,213	276,335	748,135	3,226	2,210,730
Total assets	3,335,413	1,962,381	1,237,466	3,350,252	14,449	9,899,961
Contingent liabilities – Effective guarantees issued	90,403	19,308	28,098	550	-	138,359
Assets under management (loans and equity investments) managed for the risk of the state	123,867	187,927	160,730	545,225	-	1,017,749