Segment reporting by operating segments

A sector based approach on Financial Institutions, Energy, Agribusiness and Infrastructure, Manufacturing & Services is leading in the strategy to optimize development impact. For further insight into development impact reference is made to FMO’s annual report. The company product range includes commercial loans, equity investments and guarantees. The services rendered are related to funds managed on behalf of the Dutch State and catalyzing funds (such as syndications). FMO’s primary segmentation is the sector based approach because strategic and operating decisions by the Management Board are made based upon this segmentation.

For the measurement of profit and loss items per operating segment, FMO has followed its accounting policies, which are stated under the ‘accounting policies’ paragraph. In general the allocation of revenues and expenses to the segments is based upon the sector classification of financing projects. In addition to this, the funding costs (interest expenses) related to commercial loans are allocated to the segments based on an internal allocation model as FMO does not attract its funding on an individual operating segment base. Furthermore this internal allocation model is also applied to the operating expenses.

Fund investments are not recognized as a separate segment, but classified among the other segments primarily based on the sector in which the fund is active. Funds that are not invested in a specific sector or subsector have been stated in a separate column, since this is a substantial part of FMO’s business. The segment Treasury is not recognized as a separate segment and its related assets and income are allocated to the focus sectors based on their asset value.

At December 31, 2017

Financial Institutions

Energy

Agribusiness

Multi-Sector Fund Investments

Infrastructure, Manufacturing, Services

Total

       

Loans and guarantees

      

Interest and fee income

82,670

64,300

19,918

1,498

37,508

205,894

Other income

7,249

2,630

1,368

1,308

4,896

17,451

Value adjustments

6,533

-8,944

-2,441

-219

-9,997

-15,068

Other comprehensive income

-2,666

-1,587

-750

-

-1,035

-6,038

Total loans and guarantees

93,786

56,399

18,095

2,587

31,372

202,239

       

Equity investments (including associates and subsidiaries)

      

Results from equity investments and associates

90,222

23,263

-230

49,544

1,065

163,864

Dividend income

16,926

12,479

3,159

2,759

1,269

36,592

Impairments

-3,848

-632

-15,842

-23,040

-3,557

-46,919

Other comprehensive income

-121,191

-18,597

-13,704

-36,243

-533

-190,268

Total equity investments

-17,891

16,513

-26,617

-6,980

-1,756

-36,731

       

Remuneration for services rendered

      

Managed government funds

10,012

5,884

1,854

2,860

3,090

23,700

Syndicated & parallel transactions

3,788

1,033

383

169

299

5,672

Total remuneration for services rendered

13,800

6,917

2,237

3,029

3,389

29,372

       

Other

      

Operating expenses

-38,525

-22,924

-10,844

-11,445

-14,932

-98,670

Income tax expenses

-21,152

-9,911

-2,462

336

-4,092

-37,281

Other comprehensive income

472

281

133

140

183

1,209

Total other

-59,205

-32,554

-13,173

-10,969

-18,841

-134,742

       

Total comprehensive income

30,490

47,275

-19,458

-12,333

14,164

60,138

Total other comprehensive income net of tax

-123,385

-19,903

-14,321

-36,103

-1,385

-195,097

Net profit

153,875

67,178

-5,137

23,770

15,549

255,235

At December 31, 2017

Financial Institutions

Energy

Agribusiness

Multi-Sector Fund Investments

Infrastructure, Manufacturing, Services

Total

       

Segment assets

      

Loans (incl. guaranteed by the State)

1,749,018

1,140,455

527,476

56,293

666,139

4,139,381

Equity investments and investments in associates

534,933

218,625

115,400

622,254

219,103

1,710,315

Other assets

965,647

574,615

271,806

286,887

374,278

2,473,233

Total assets

3,249,598

1,933,695

914,682

965,434

1,259,520

8,322,929

Contingent liabilities – Effective guarantees issued

62,774

-

-

-

5,355

68,129

Assets under management (loans and equity investments) managed for the risk of the state

350,806

250,216

77,165

108,140

134,279

920,606

At December 31, 2016

Financial Institutions

Energy

Agribusiness

Multi-Sector Fund Investments

Infrastructure, Manufacturing, Services

Total

       

Loans and guarantees

      

Interest and fee income

94,019

56,881

19,504

373

51,907

222,684

Other income

-17,525

-1,312

340

206

10,698

-7,593

Value adjustments

23,626

1,332

24,747

803

-7,519

42,989

Other comprehensive income

1,403

883

309

-

629

3,224

Total loans and guarantees

101,523

57,784

44,900

1,382

55,715

261,304

       

Equity investments (including associates and subsidiaries)

     

Results from equity investments and associates

27,502

298

-465

18,179

-226

45,288

Dividend income

9,343

1,986

10

4,765

715

16,819

Impairments

-12,416

-5,428

-2,346

-22,967

-839

-43,996

Other comprehensive income

45,929

22,120

9,225

18,895

21,440

117,609

Total equity investments

70,358

18,976

6,424

18,872

21,090

135,720

       

Remuneration for services rendered

      

Managed government funds

10,901

4,584

1,540

2,405

2,342

21,772

Syndicated & parallel transactions

4,225

739

651

179

999

6,793

Total remuneration for services rendered

15,126

5,323

2,191

2,584

3,341

28,565

       

Other

      

Operating expenses

-33,153

-20,921

-7,318

-9,426

-14,864

-85,682

Income tax expenses

-15,680

-9,454

-9,592

1,767

-10,010

-42,969

Other comprehensive income

-11,531

-7,254

-2,538

-3,324

-5,166

-29,813

Total other

-60,364

-37,629

-19,448

-10,983

-30,040

-158,464

       

Total comprehensive income

126,643

44,454

34,067

11,855

50,106

267,125

Total other comprehensive income net of tax

35,801

15,749

6,996

15,571

16,903

91,020

Net profit

90,842

28,705

27,071

-3,716

33,203

176,105

At December 31, 2016

Financial Institutions

Energy

Agribusiness

Multi-Sector Fund Investments

Infrastructure, Manufacturing, Services

Total

       

Segment assets

      

Loans (incl. guaranteed by the State)

1,899,787

1,285,647

412,711

46,004

882,567

4,526,716

Equity investments and investments in associates

558,167

260,656

128,196

662,599

218,554

1,828,172

Other assets

850,098

534,799

187,076

245,075

380,829

2,197,877

Total assets

3,308,052

2,081,102

727,983

953,678

1,481,950

8,552,765

Contingent liabilities – Effective guarantees issued

50,922

-

-

-

10,128

61,050

Assets under management (loans and equity investments) managed for the risk of the state

381,732

251,947

83,185

100,957

167,529

985,350