3 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, 2024	Financial Institutions	Energy	Agribusiness, Food & Water	Private Equity	Other	Total

Interest income	118,663	74,736	36,608	1,982	38,349	270,338
Interest expenses	-43,627	-26,003	-13,063	-43,342	-34,967	-161,002
Net fee and commission income	-1,247	-255	-2,393	218	-667	-4,344
Dividend income	-	-	-	10,151	-	10,151
Results from equity investments	-	-	-	-1,283	-	-1,283
Results from financial transactions	4,751	1,128	1,133	-2,066	1,791	6,737
Remuneration for services rendered	2,128	2,703	1,883	6,624	1,673	15,011
Gains and losses due to recognition	-	764	222	-	-	986
Other operating income	-	-	-	-	1	1
Allocated income	1,631	972	489	1,621	-4,713	-
Total underlying income	82,299	54,045	24,879	-26,095	1,467	136,595

Operating expenses	-22,740	-19,434	-14,773	-26,499	-1,349	-84,795
Total operating expenses	-22,740	-19,434	-14,773	-26,499	-1,349	-84,795

Impairments on loans and guarantees	-1,813	13,946	12,248	-46	78	24,413
Total impairments	-1,813	13,946	12,248	-46	78	24,413

Profit/(loss) before taxation	57,746	48,557	22,354	-52,640	196	76,213
Share in results from associates	-	-	-	14,450	51	14,501
Taxation	-12,239	-10,291	-4,738	18,023	-52	-9,297
Underlying net profit/(loss)	45,507	38,266	17,616	-20,167	195	81,417

Currency effect equity investments	-	-	-	52,850	-	52,850
Net profit/(loss)	45,507	38,266	17,616	32,683	195	134,267

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, 2024	Financial Institutions	Energy	Agribusiness, Food & Water	Private Equity	Other	Total

Loans to the private sector	2,746,836	1,537,760	788,192	36,566	3,793	5,113,147
Equity investments and investments in associates	-	-	-	2,740,418	-	2,740,418
Other assets	943,736	528,330	270,801	954,094	1,303	2,698,264
Total assets	3,690,572	2,066,090	1,058,993	3,731,078	5,096	10,551,829
Contingent liabilities – Effective guarantees issued	140,254	18,004	17,032	549	-	175,839
Assets under management (loans and equity investments) managed for the risk of the state	125,935	156,394	159,020	566,542	-	1,007,891

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	96,443	176,522	142,598	560,560	-	976,123