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, 2024, FMO's Management Board steers on the following four operating segments: Financial Institutions, Energy, Agribusiness Food and Water and Private Equity.

In 2024, no transactions were transferred between operating segments.

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.

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

Interest income	243,501	148,841	78,462	4,040	81,501	556,345
Interest expenses	-92,266	-51,635	-27,416	-87,248	-71,663	-330,228
Net fee and commission income	-2,582	3,250	-3,667	266	-1,321	-4,054
Dividend income	-	-	-	29,171	-	29,171
Results from equity investments	-	-	-	22,293	-	22,293
Results from financial transactions	9,758	-344	1,030	9,699	-9,539	10,604
Remuneration for services rendered	7,612	5,762	5,355	13,082	3,688	35,499
Gains and losses due to derecognition	227	1,191	432	-	13	1,863
Other operating income						-
Allocated income	-92	-52	-27	-87	258	-
Total underlying income	166,158	107,013	54,169	-8,784	2,937	321,493

Operating expenses	-51,463	-43,563	-32,750	-59,452	-3,467	-190,695
Total operating expenses	-51,463	-43,563	-32,750	-59,452	-3,467	-190,695

Impairments on loans and guarantees	-16,184	28,628	13,945	-214	5	26,180
Total impairments	-16,184	28,628	13,945	-214	5	26,180

Profit/(loss) before taxation	98,511	92,078	35,364	-68,450	-525	156,978
Share in the result of associates/joint ventures	-	-	-	38,641	842	39,483
Taxation	-22,604	-21,128	-8,114	39,457	-71	-12,460
Underlying net profit/(loss)	75,907	70,950	27,250	9,648	246	184,001

Currency effect equity investments				113,233	-	113,233
Net profit/(loss)	75,907	70,950	27,250	122,881	246	297,234

	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

Segment assets	2024
	Financial Institutions	Energy	Agribusiness, Food and Water	Private Equity	Other	Total

Loans to the private sector	3,211,378	1,580,952	1,016,886	31,418	1,945	5,842,579
Equity investments and investments in associates	-	-	-	2,910,315	18,671	2,928,986
Other assets	851,247	419,066	269,548	779,772	5,465	2,325,098
Total assets	4,062,625	2,000,018	1,286,434	3,721,505	26,081	11,096,663
Contingent liabilities – Effective guarantees issued	150,493	18,120	23,995	568	-	193,176
Assets under management (loans and equity investments) managed for the risk of the state	146,616	155,442	168,638	545,016	-	1,015,712

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