1 Corporate information

FMO was incorporated in 1970 as a public limited company and is located at Anna van Saksenlaan 71, The Hague, The Netherlands. FMO finances activities in developing countries to stimulate private sector development.

2 Basis of preparation and changes to accounting policies

The consolidated annual accounts as at December 31, 2017 are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU).

3 Risk developments

For a detailed overview of FMO’s risk governance and risk management approach we refer to the section ‘Risk Management of FMO’s consolidated annual accounts as at December 31,2017.

4 Capital management

FMO complies with the Basel III requirements and reports its Common Equity Tier 1 ratio to the Dutch central bank on a quarterly basis. At the end of June 2018 the Common Equity Tier 1 ratio increased to 25.8% from 24.6% as per December 2017.

5 Segment information

The Management Board sets performance targets, approves and monitors the budgets prepared by the front office servicing units. These shall therefore perform in accordance with the strategy and targets.

6 Financial Instruments

The following table shows the carrying amounts of financial assets and financial liabilities.

7 Commitments and contingent liabilities

During the first half year of 2018 the irrevocable facilities decreased mainly as a result of disbursements and lower production of new contracts.

8 Debentures and notes

Debentures and notes decreased with €200 million to €4.9 billion (December 31, 2017: €5.1 billion). During the first half of 2018 an amount of €295 million was issued and €495 million was redeemed.

9 Results from equity investments

In the first six months our results from equity investments decreased with €48 million to €44 million (2017: €92 million). The higher results in 2017 were predominantly driven by two private equity investment exits.

10 Dividends

In the General Meeting of Shareholders in May 2018 the proposal for appropriation of profit 2017 was approved. The distributable amount of the net profit amounts to €5.6 million which has been fully distributed as cash dividend.