q3 2018 - hjem | arendals fossekompaniq1 q2 q3 q4 86 175 83 31 75 69 60-18 74 118 60 q1 q2 q3 q4 995...

Interim report for Arendals Fossekompani ASA

Q3 2018

Key Figures for the AFK Group’s Continuing OperationsY

TFull year

MNOK Q3 2018Q2 2017 Q3 2017* YTD 2018 YTD 2017* # #

Total operating revenues 1 179 ## 999 3 535 3 193 # #

EBITDA 123 ## 119 363 368 # #

Adjustment for change in accounting estimates* 7 22

EBITDA after change 123 ## 112 363 345

margin 10 % # 12 % 10 % 12 % #

EBITDA per unit

Parent company 23 ## 14 80 43 # #

EFD Induction 38 ## 31 83 74 # #

NSSL Global 43 ## 36 121 112 # #

Powel 9 ## 13 20 37 # #

Scanmatic 10 5 6 32 24 # #

Cogen 5 ## 16 39 59 # #

Tekna -0 -1 -4 -12 -10 # #

Other -4 -0 0 -0 7 # -2

EBITDA 123 ## 112 363 345 # #

Earnings before tax (EBT) 60 ## 53 252 182 # #

* Earnings for the quarter have been adjusted for the change in estimates relating to provisions for the production bonuses

that Cogen received from the Spanish authorities in 2017 (see Note 3).

Operating revenues (MNOK)

EBITDA (MNOK)

Earnings before tax, continuing operations. (MNOK)

113 108 108119

137

111119 120

130

110123

Q1 Q2 Q3 Q4

86

175

83

31

75 69 60

-18

74

118

60

Q1 Q2 Q3 Q4

995 964 9661 0891 107 1 087

999

1 2341 163 1 194 1 179

Q1 Q2 Q3 Q4

2016 2017 2018

Interim report – Q3 2018

Highlights – Q3 2018 (Figures in parentheses refer to the same period the previous year)

Arendals Fossekompani ASA is an industrial investment group holding 10 main investments and a portfolio of fi-nancial investments. In total, the Group employs more than 2,100 staff. The Group operates in several different industries and is represented in 24 countries through its subsidiaries. The parent company operates three hydro power stations, manages its subsidiaries through long-term and active ownership, develops the businesses and manages financial investments.

Total operating revenues in the third quarter amounted to MNOK 1,179 (MNOK 999) and as at 30 September to MNOK 3,535 (MNOK 3,193). Consolidated earnings before tax for the quarter totalled MNOK 60 (MNOK 60) and as at 30 September MNOK 252 (MNOK 204). Estimated tax for the quarter totalled MNOK 23 (MNOK 27) and as at 30 September MNOK 97 (MNOK 59). Profit on ordinary activities (continuing operations) for the quarter after tax but before non-controlling interests amounted to MNOK 37 (MNOK 33) and as at 30 September MNOK 155 (MNOK 145).

The Group performed well in the quarter generating strong revenue growth, with in particular EFD Induction, NSSL Global and Cogen contributing to positive development of the top line. EBITDA for the Group closed the quarter at MNOK 123 (MNOK 119) and as at 30 September was MNOK 363 (MNOK 368). Adjusted for the change in ac-counting estimates relating to provisions for the production bonuses that Cogen received from the Spanish au-thorities in 2017 (see Note 3), EBITDA for the Group as at 30 September was approximately 5% better than for the same period the previous year.

On 9 May Arendals Fossekompani ASA distributed the company’s shares in Kongsberg Gruppen ASA (KOG) to the company's shareholders as a dividend in kind. The shares had a cumulative value of MNOK 1,904. The effect on equity is shown in Note 7. As at 30 September the remaining financial investments have achieved a return of 13%, corresponding to MNOK 113, for the current year.

Other revenues and costs for the Group in the quarter amounted to MNOK -16 (MNOK -62) and as at 30 September to MNOK 502 (MNOK 57). The differences compared with the previous year are primarily due to translation dif-ferences and changes in the value of financial investments, with changes in the value of the shareholding in KOG in the current year up to the date of distribution amounting to MNOK 457. As a result, the Group’s comprehensive income for the quarter came in at MNOK 21 (MNOK 33) and as at 30 September stood at MNOK 657 (MNOK 368).

Overall for the Group (continuing operations), revenues and earnings for 2018 are expected to be in line with 2017.

Arendals Fossekompani ASA sold all its shares in Glamox AS in December 2017. Figures for Glamox have therefore been removed from the consolidated figures for 2017 and are shown on separate lines in the income statement and balance sheet as Discontinued operations. (See Note 5 and Note 25 in the annual report for 2017).

Events after the end of the third quarter

On 1 November Christian Sønderup took up his position as the new CEO of Markedskraft.


EFD Induction

NSSL Global

- Total operating revenues in the third quarter amounted to MNOK 304 (MNOK 285) and as at 30 September to MNOK 888 (MNOK 828). Con-solidated earnings before tax for the quarter totalled MNOK 29 (MNOK 21) and as at 30 September MNOK 58 (MNOK 50).

- Activity levels in the company remained high in the third quarter as a result of a good order book and a stronger aftermarket. Profits devel-oped well in all regions.

-

- The company will experience a more uncertain market situation going forward. This particularly applies to the automotive industry, presuma-bly as a result of the beginnings of a trade war which looks like affecting China in particular. The company is however experiencing continued strong growth in the aftermarket.

EFD Induction delivers advanced heating systems based on induction technology for the engineering industry throughout the world. Group activities are concentrated in three activity areas: Induction Heating Machines (IHM), Induction Power Sys-tems (IPS) and Spares and Service (SAS). The main customers are within the auto-motive industry, pipe production, the electronics industry, cable industry and mechanical industry.

Its headquarters are in Skien, Norway.


- The volume of airtime sold to major European public-sector custom-ers has been low throughout the year due to reduced operational ac-tivity. September was an exception to this trend. At the same time, customers switching to IP-based services is resulting in better gross margins on the reduced volume.

- At the SMM maritime trade fair in Hamburg, NSSL launched a number of new products within Security & IT Management including the new cruise control application. The company also won a global award for Most Innovative Satellite Application for its new Fusion IP product.

NSSL Global is an independent provider of satellite communications and IT sup-port that delivers high-quality voice and data services to customers across the globe, regardless of location or terrain. NSSL Global’s activities are divided into three main areas: Airtime, Hardware and Service.

Its main customers are found within the maritime segment, military and govern-ment sector, large international corpo-rations and the oil and gas industry. The headquarters are located just outside London.


Powel

Scanmatic

- Total operating revenues in the third quarter amounted to MNOK 128 (MNOK 128) and as at 30 September to MNOK 431 (MNOK 432). Con-solidated earnings before tax for the quarter totalled MNOK -2 (MNOK 2) and as at 30 September MNOK -13 (MNOK 3). This represents somewhat weaker earnings compared with the corresponding period in 2017.

- Powel gained two new international customers in the third quarter; RWE (one of the four largest power operators in Germany) and Ro-mande Energy in Switzerland.

- To streamline the strategy, utilise expertise better across business ar-eas and to cut costs, a reorganisation will be carried out in the fourth quarter. The initiative “One Powel” has been launched to sharpen then company’s strategic focus.

Powel develops and delivers business-critical IT solutions and services to the energy sector in the Nordic region and the rest of Europe, to municipalities in Norway, as well as to the contractor sec-tor in Norway and Sweden.

The company has its headquarters in Trondheim, with offices in several other cities in Norway and subsidiaries in Swe-den, Denmark, Switzerland, Poland and Turkey.

- Total operating revenues in the third quarter amounted to MNOK 146 (MNOK 129) and as at 30 September to MNOK 447 (MNOK 391). Consolidated earnings before tax for the quarter totalled MNOK 9 (MNOK 6) and as at 30 September MNOK 29 (MNOK 22).

- The revenue growth compared to the same period last year is mainly due to increased activity levels at the parent company and in Scan-matic Elektro.

- Scanmatic Elektro is delivering a significantly better operating margin compared to the same period last year.

- All areas of the company experienced high capacity utilisation during the period and the company has a good order backlog for deliveries in Q4 and Q1 2019.

Scanmatic delivers technical infrastruc-ture as well as instrumentation and con-trol systems for industrial and profes-sional customers within Defence, Trans-portation, Renewable Energy and Off-shore. Scanmatic Elektro AS is 51% owned by Scanmatic AS and is an electrical con-tractor mainly active in the field of transportation.

The headquarters are in Arendal.


Cogen

Tekna


- Operating revenues from steam and power generation increased compared to the same period last year due to a doubling of produc-tion by the company’s largest customer. In addition, power prices were higher than in the same period last year. However, earnings be-fore tax is weaker than the previous year due to increased costs for purchases of gas and CO2 quotas.

- One of the plants operated at reduced level in September due to planned maintenance. The remaining plants operated as normal dur-ing the period.

*Earnings for the quarter have been adjusted for the change in accounting estimates

Cogen operates its own and third-party combined heat and power plants in Spain.

The company uses surplus heat from gas-based electricity generation to pro-duce heat, steam or cooling for indus-trial partners. The electricity produced is sold on the physical electricity market on an ongoing basis. Public subsidies are provided in the form of bonuses per produced MWh.

The headquarters are in Madrid.

- Total operating revenues in the third quarter amounted to MNOK 43 (MNOK 31) and as at 30 September to MNOK 109 (MNOK 93). Consoli-dated earnings before tax for the quarter totalled MNOK -5 (MNOK -8) and as at 30 September MNOK -24 (MNOK -20).

- Sales and earnings during the quarter were better than in the same period last year. The commissioning of new production lines resulted in inventories being built up during the quarter. This had a negative impact on cash flow during the period.

- The company is currently scaling up production of a new metal pow-der in France. Expansion of the production facilities for powder pro-duction in Canada is now complete, taking Tekna’s total production capacity to more than 1,000 tonnes per year.

Tekna manufactures systems and equip-ment for production of spherical micro- and nanoparticles of various metals and ceramics based on the use of plasma generated by electrical induction. Tekna also has a subsidiary that uses such sys-tems to produce various metal pow-ders, including those used in additive manufacturing (3D printing) of parts for the aerospace and medical industries.

The headquarters are in Canada, with subsidiaries in France and China.


AFK Parent Company The parent company operates the power stations in the Arendal watercourse and manages the industrial and financial holdings of the AFK Group. The parent company’s focus is on power generation, follow-up of the subsidiaries through long-term and active ownership, business development and financial investments.

Total operating revenues in the third quarter amounted to MNOK 38 (MNOK 29) and as at 30 September to MNOK 129 (MNOK 92). Earnings before tax for the quarter totalled MNOK 23 (MNOK 216) and as at 30 September MNOK 136 (MNOK 126). The main reason for the change in earnings before tax compared with the same period last year is that an extraordinary dividend

of MNOK 210 was received from Glamox in the third quarter of 2017.

Power generation - Power generation in the quarter amounted to 83 GWh (115 GWh). The average

spot price in price area N02 was 47.5 øre/kWh (25.9 øre/kWh). In the year to date precipitation and inflow were 90% and 94% respectively of the norm.

- Revenues from power generation in the third quarter totalled MNOK 38 (MNOK 29) and at 30 September MNOK 129 (MNOK 92). The increased revenues are mainly due to higher spot prices in the period. Plant operations continued without any significant interruptions. The reconstruction of dams will start once detailed requirements have been clarified with NVE. A detailed plan for Kilandsfoss power station has been approved by NVE and is scheduled to be put out to tender in Q4 2018

Financial portfolio - As at 30 September the total value of the share portfolio was MNOK 932, consist-

ing of investments in Victoria Eiendom, Eiendomsspar and Oslo Stock Exchange. The shares in Kongsberg Gruppen, with a total value of MNOK 1,904, were distrib-uted to the company’s shareholders as a dividend in kind on 9 May 2018.

- The return on financial investments for the current year was 13% as at 30 Sep-tember, or MNOK 113. The change in value of the Kongsberg Gruppen shares in the current year up to 9 May was MNOK 457 and is included in comprehensive in-come for the period.

Other business

- Wattsight had a solid increase in new customer contracts during the first half, with a corresponding increase in revenues and earnings.

- Markedskraft’s revenues during the quarter were positively affected by its acquisi-tion of the Finnish company Energiameklarit, which was completed in the previ-ous quarter. On 1 November Christan Sønderup took up his position as the com-pany’s new CEO.

- Arendal Industrier is on schedule with development of the waterside residential project Bryggebyen Vindholmen. Detailed architectural drawings showing the apartment mix and corresponding calculations of construction costs are sched-uled for completion by the end of the year.

- Arendal Lufthavn Gullknapp (ALG). The company OSM Aviation Academy started up an aviation school at Gullknapp in September with 16 students. The plan is to gradually increase this to 100 students. Work is also under way on positioning ALG as a test centre and centre of excellence for drone operations.

Arendals Fossekompani generates power at two locations in the Arendal watercourse. The Bøylefoss and Flaten-foss power stations produce in excess of 500 GWh annually.

AFK is planning investments/upgrades to both plants in the coming years in order to satisfy more stringent statutory re-quirements for power stations with as-sociated dams.

Arendals Fossekompani manages an in-vestment portfolio of financial securities – mainly a limited number of liquid listed shares, but also some selected less liquid holdings of a financial nature.

Other business covers the following:

Markedskraft is an independent pro-vider of services to the Nordic and Euro-pean wholesale market for electricity.

Wattsight is a leading player within fun-damental data and market analysis of the European electrical power market.

Real Estate includes real estate invest-ments in the Arendal area. Arendal In-dustrier represents the largest develop-ment project.

Arendal Lufthavn Gullknapp is in the Mu-nicipality of Froland. The airport is fa-vourably located, offering very good conditions for incoming and outgoing flights.


Shareholders The company has 2,239,810 outstanding shares, of which 50,852 were treasury shares as at 30 September. During the third quarter 4,692 shares were traded, amounting to 0.2 per cent of the total number of shares. The share price on 30 June was NOK 3,660 and on 30 September was NOK 3,520.

Risks and uncertainties The Group is exposed to credit risk, market risk and liquidity risk from the use of financial instruments. These matters are described in detail in Note 16 in the annual financial statements for 2017.

Transactions with related parties The company’s related parties comprise subsidiaries, associates and members of the Board of Directors and sen-ior management. Transactions between Group companies and other related parties are based on the principles of market value and arm’s length. Transactions carried out between related parties are detailed in Note 4 to the interim financial statements. None of these transactions is considered to be of material importance for the com-pany’s financial position or earnings.

Outlook Overall for the Group (continuing operations), revenues and EBITDA for 2018 are expected to be in line with 2017.

Power generation Revenues and earnings from power generation are expected to be better in 2018 than in 2017.

EFD Induction EFD Induction expects revenues and earnings for 2018 to be on par with 2017.

NSSL Global NSSL expects revenues and earnings in 2018 to be on par with 2017.

Scanmatic Scanmatic expects revenues in 2018 to be on par with 2017. Earnings are expected to be somewhat better.

Powel Powel expects revenues in 2018 to be on par with 2017. Earnings (adjusted for impairments) in 2018 are expected to be weaker than in 2017.

Cogen Cogen expects increased revenues in 2018. Earnings are expected to be weaker than in 2017.

Tekna Tekna expects increased revenues in 2018 compared to 2017. Earnings are expected to be on par with 2017.

Froland, 13 November 2018

Arendals Fossekompani ASA

The Board of Directors

Consolidated Income Statement2017 2018

Amounts in MNOK Q3 Q2 Q3 YTD YTD Full year

Continuing operations Note

Operating revenues and operating costsSales revenues 1 174 1 186 989 3 516 3 167 4 383Other operating revenues 5 7 10 20 26 44Total operating revenues 1 179 1 194 999 3 535 3 193 4 427

Cost of goods 586 609 463 1 735 1 525 2 116Personnel costs 327 349 296 1 025 936 1 303Other operating costs 142 127 121 413 365 520Total operating costs 1 056 1 084 879 3 172 2 825 3 939

EBITDA 123 110 119 363 368 488Depreciation of property, plant and equipment 31 31 25 91 75 109Amortisation of intangible assets 18 19 20 56 58 77Impairment of non-current assets 3 4 4 37

Operating result 70 60 75 212 235 265Finance income and finance costsFinance income 3 72 9 100 77 158Finance costs 3,4 13 13 23 58 107 231Net financial items -10 59 -14 43 -30 -72Share of profit from associates 3 -1 -1 -0 -3 -1 -6Profit before taxes 60 118 60 252 204 186Tax expense 23 35 27 97 59 88Net result from continuing operations 37 82 33 155 145 99

Discontinued operations

Profit/loss from discontinued operations (after tax) 5 62 164 2 401Profit on ordinary activities 37 82 95 155 309 2 500

Attributable toNon-controlling interests 8 12 22 26 63 85Equity holders of the parent 29 70 74 129 246 2 415

Basic/diluted earnings per share (NOK) 13 32 34 59 112 1 103

Basic/dil. earngs. per share from cont. ops. (NOK) 13 32 6 59 29 6

Statement of comprehensive incomeOther income and expensesTranslation adjustments foreign currency -7 -10 -24 -36 -8 -11Change in hedging reserve 2 -2 7 8 4 -5Change in fair value, fin. assets avail. for sale -11 144 -43 533 57 285Change in available-for-sale financial assets transferred to profit/loss 5 5Tax on hedging reserve -0 1 -2 -2 -1 1Other income and expenses that may be reclassified

in subsequent periods -16 133 -62 502 57 275Actuarial gains and losses -3Tax on actuarial gains and losses 1Other income and expenses that will not be

reclassified in subsequent periods -2Other income and exp. from cont. ops. -16 133 -62 502 57 273

Other income and expenses from discontinued operations -0 2 2Profit on ordinary activities 37 82 95 155 309 2 500

Total comprehensive income for the period 21 215 33 657 368 2 775

Comprehensive income per share (NOK) 6 94 6 290 139 1 225

Attributable toNon-controlling interests 7 10 20 23 65 92Equity holders of the parent 13 205 13 634 304 2 682

2018 2017

Consolidated Balance Sheet 2018

Amounts in MNOK 30 30 31.12Assets Note

Property, plant and equipment 3,5 1 030 1 037 1 034Intangible assets 3,5 765 786 799Investments in associates 3 17 3 20Other investments 194 158 183Pension funds 25 22 26Deferred tax assets 167 193 197Total non-current assets 2 198 2 200 2 260

Inventories 351 286 290Trade and other receivables 1 360 1 090 1 525Cash and cash equivalents 794 486 2 162Financial assets available for sale 3 932 2 078 2 301Financial assets held for trading 11

Discontinued operations 5 1 515Total current assets 3 448 5 456 6 279

Total assets 5 646 7 656 8 539

Equity and liabilities

Share capital (2,239,810 shares at NOK 100) 224 224 224Other paid-in capital 1 1 1Other funds 800 1 758 1 908Retained earnings 1 892 778 2 087Total equity attributable to equity holders of the parent 2 917 2 761 4 220Non-controlling interests 172 348 165Total equity 7 3 089 3 109 4 386

Bond loans 299 299 299Interest and currency swaps related to bond loans 80 79 96Interest-bearing loans and borrowings 349 2 066 1 728Employee benefits 40 42 46Provisions 55 8 26Deferred tax liabilities 87 107 89Total non-current liabilities 910 2 600 2 285

Interest-bearing loans and borrowings (current portion) 92 39 88Bank overdraft facility 162 62 152Trade and other payables 647 561 685Taxes payable 103 63 106Other current liabilities 643 463 836Liabilities from discontinued operations 5 760Total current liabilities 1 647 1 947 1 868

Total equity and liabilities 5 646 7 656 8 539

2017

Consolidated Cash Flow Statement2018 2017

Amounts in MNOK 01.01-30.09 01.01-30.09Continuing operationsCash flow from operating activitiesOrdinary profit from continuing operations 155 145Adjusted for

Depreciation and impairments, property, plant and equipment 94 75Amortisation of intangible assets 56 58Net financial items -43 30Share of profit/loss from associates 3 1Gain/loss on sale of property, plant and equipment 3Tax expense 97 59

Total 364 368

Change in inventories -72 -2Change in trade and other receivables 16 64Change in trade and other payables -48 -63Change in provisions and employee benefits 47 -72

Total 307 294

Taxes paid -76 -57Net cash flow from operating activities A 230 237

Cash flow from investing activitiesInterest received etc. 35 15Dividends received (incl. dividends from operations held for trading) 47 333Proceeds from sale of property, plant and equipment and intangible assets 3 1

Proceeds from sale of assets available for sale and held for trading 29Proceeds from other investments 0 4Disposal of shares in subsidiaries 1Purchase of shares in subsidiaries (reduced by cash balance) -3Purchase of property, plant and equipment and intangible assets -177 -152Purchase of non-controlling interests -29 -124Investments in other shares/interests -24 -2Net cash flow from investing activities B -144 101

Cash flow from financing activitiesNew long-term debt 18 235Repayment of long-term debt -1 406 -48Interest paid etc. -57 -177Net change in bank overdraft 11 -103Dividends paid (excl. dividends paid from operations held for trading) * -12 -225Purchase/sale of treasury shares 5Net cash flow from financing activities C -1 445 -313

Net change in cash and cash equivalents A+B+C -1 359 25

Cash and cash equivalents as at 1 January 2 162 456Currency translation adjustments on cash and cash equivalents -10 5

Cash and cash equivalents as at 30 September 793 486

*In 2018 the dividend was paid as a dividend in kind – see Note 7.

Notes to interim report for Q3 2018Note 1Confirmation of financial frameworkThe interim financial statements for the quarter have been prepared in accordance with IAS 34 Interim Financial Reporting. The financial statements do not cover all the information required in complete annual financial statements and should be read in conjunction with the consolidated financial statements for 2017.

Note 2Key accounting policiesThe accounting policies for 2017 are described in the consolidated financial statements for 2017. The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) adopted by the European Union and associated interpretations, as well as additional Norwegian disclosure requirements pursuant to the Norwegian Accounting Act and stock exchange regulations and rules, applicable as at 31 December 2017. The same policies have been applied in the preparation of the financial statements to 30 September 2018.

The Group now reports in compliance with IFRS 15 Revenue from Contracts with Customers. As expected, the change in accounting policy has had no material effect. The standard has been implemented according to the cumulative effect method. Other new standards that entered into force on 1 January 2018 have had no material impact on the financial statements.

Note 3

EstimatesAreas involving significant use of estimates include the valuation of companies in the share portfolio and measurement of goodwill/excess values in subsidiaries and associates, and of impairment indicators for property, plant and equipment and intangible assets. In the year to date these measurements have resulted in impairment losses on property, plant and equipment of MNOK 3.9 in the subsidiary Arendal Industrier.

Cogen receives production bonuses from the Spanish authorities under their subsidy system for environmentally friendly energy production. Due to a lack of clarity surrounding accounting estimates relating to provisions for production bonuses, provisions totalling MNOK 31 were initially recognised in the final financial statements for the 2017 financial year. Reported quarterly results in 2017 are therefore not comparable with quarterly results for 2018. To provide a better basis for comparison, quarterly figures in 2017 for Cogen (page 6) and key figuresfor AFK (page 2) have been adjusted for this effect, and earnings and equity in Q3 2017 have therefore been reduced by MNOK 7and as at 30 September 2017 by MNOK 22.

Note 4Transactions with related partiesIn addition to the disclosures made in the company’s annual report for 2017, Note 24, it can be statedthat in 2018 the parent company:

- realised exchange losses of NOK 835,000 in connection with currency hedging within Markedskraft.

Note 5 Discontinued operationsIn December 2017 Arendals Fossekompani sold its 75.16% interest in Glamox. Consequently, the company’s financial figures have been recognised on separate lines in the income statement and balance sheet as discontinued operations.

The gain on disposal of Glamox amounted to MNOK 2,192 in the consolidated financial statements for 2017 and MNOK 2,323 in the parent company. In addition to this, AFK received an extraordinary dividend from Glamox in Q3 2017 of MNOK 210.

Glamox’s key figures relating to the income statement and balance sheet for 2017 are presented below.

Income statement 2018

30,09 30,09 31.12

Operating revenues 1 953 2 436Operating costs 1 674 2 078Depreciation of PPE 34 43Amortisation of intangible assets 28 34Operating result 216 282Net financial items -1 -8Tax expense -51 -65Gain on sale of Glamox 2 192Profit/loss from discontinued operations 164 2 401

Basic earnings per share (NOK) 75 1 097

Balance sheetNon-current assets 365Current assets 874Total assets 1 239

Goodwill, excess values re Glamox in the Group 277

Total assets, discontinued operations 1 515

Non-current liabilities 271Current liabilities 488Total liabilities, discontinued operations 760

2017

Note 6

Segment reporting as at:30,09 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017

Operating revenues 128 92 1 0 888 828 431 432 873 680Operating costs 32 35 17 14 805 754 411 395 834 599Depreciation, amortisation and

impairments 5 5 15 12 19 18 32 35 11 11Operating result 91 52 -30 -26 64 56 -12 2 28 70Net financial items 47 -19 -6 -6 -1 1 7 -3Tax expense 49 26 -4 -20 19 16 -1 5 6 8

Profit/loss on ordinary activities 42 26 20 -25 39 34 -12 -2 29 59Segment assets 275 317 1 751 2 519 941 860 420 372 655 458Segment liabilities 62 45 291 2 032 546 477 283 190 498 318Net interest-bearing liabilities** -64 1 781 100 101 21 48 146 150

2018 2017 2018 2017 2018 2017 2018 2017 2018 2017

Operating revenues 557 582 109 93 447 391 102 95 3 535 3 193Operating costs 436 471 121 103 415 367 104 88 3 172 2 825Depreciation, amortisation and

impairments 42 38 9 7 3 2 14 6 150 133Operating result 79 74 -21 -16 29 22 -16 1 213 235Net financial items -0 -0 -3 -4 -0 -0 -5 0 39 -30Tax expense 21 18 1 -0 7 5 -1 1 97 59

Profit/loss on ordinary activities 57 55 -25 -20 22 17 -20 0 155 145Segment assets 597 490 249 215 278 215 480 419 5 646 6 140Segment liabilities 255 193 192 181 169 126 261 194 2 557 3 787Net interest-bearing liabilities** -139 -126 140 101 24 -12 -119 -62 108 1 980

*Other business comprises Markedskraft, Wattsight, Arendal Industrier, Bedriftsveien 17, Steinodden Eiendom, Arendal Lufthavn Gullknapp,

Songe Træsliperi and Norsk Vekst.

**Intra-group liabilities are included in subsidiaries’ net interest-bearing liabilities and are accordingly deducted from financing activities.

***Glamox has been sold. Figures for the company have therefore been removed from segment reporting. See Note 5.

Note 7Equity reconciliation

Share

capital

Other

paid-in

capital

Transl.

diff.

Hedging

reserves

Fair value

reserves

Treasury

shares

Total

other

funds

Retained

earnings Total

Non-

contr.

interests

Total

equity

2017

Balance as at 1 January 224 0 117 -12 1 676 -72 1 709 752 2 685 496 3 181Comprehensive income for the period -14 -0 62 48 256 304 65 369Sale of treasury shares 1 1 1 2 2Purchase non-contr. int. and chan. in subsid. -23 -23 -102 -125Dividends to shareholders -208 -208 -110 -318Balance as at 30 September 224 1 103 -12 1 738 -71 1 758 778 2 761 348 3 109

2018

Balance as at 1 January 224 1 13 -1 1 966 -71 1 908 2 087 4 220 165 4 386Comprehensive income for the period -20 6 533 519 115 634 23 657Purchase non-contr. int. and chan. in subsid. -0 0 -32 -32 -8 -40Dividends to shareholders* -1 627 -1 627 -278 -1 905 -9 -1 914Balance as at 30 September 224 1 -6 5 872 -71 800 1 892 2 917 172 3 089

*In 2018 a dividend was paid to the shareholders as a dividend in kind, through the allotment of 4.36 shares in Kongsberg Gruppen per share in Arendals Fossekompani.

NSSL Global Tekna Scanmatic Other business* Total***

Energy sales Financing activities EFD Induction Powel Cogen Glamox***

q3 2018 - hjem | arendals fossekompaniq1 q2 q3 q4 86 175 83 31 75 69 60-18 74 118 60 q1 q2 q3 q4 995...

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