4 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. 

In the first half of 2022, two transactions are transferred from Financial Institutions to Agribusiness Food & Water. This transfer amounted up to €5.9 million in total. In addition, one transaction was transferred from Energy to PE, the loan was converted to equity. The total amount of the transfer was for €3.5 million.

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, 2022

Financial Institutions

Energy

Agribusiness, Food & Water

Private Equity

Other

Total

       

Interest income

61,272

50,927

26,304

1,137

2,665

142,305

Interest expenses

-4,644

-5,183

-2,228

-8,627

-2,771

-23,453

Net fee and commission income

-652

402

-1,165

514

-220

-1,121

Dividend income

-

-

-

31,998

-

31,998

Results from equity investments

-

-

-

-4,012

-

-4,012

Results from financial transactions

-9,176

4,551

-8,815

-5,328

30,292

11,524

Remuneration for services rendered

2,076

4,010

1,896

6,099

3,883

17,964

Gains and losses due to recognition

3

-

-

-

-

3

Other operating income

-

-

-

-

-167

-167

Allocated income

7,148

7,976

3,428

13,277

-31,829

-

Total underlying income

56,027

62,683

19,420

35,058

1,853

175,041

       

Operating expenses

-19,614

-17,156

-12,609

-22,863

-1,147

-73,389

Total operating expenses

-19,614

-17,156

-12,609

-22,863

-1,147

-73,389

       

Impairments on loans and guarantees

-3,386

-66,823

-43,481

-951

-1

-114,642

Total impairments

-3,386

-66,823

-43,481

-951

-1

-114,642

       

Profit/(loss) before taxation

33,027

-21,296

-36,670

11,244

705

-12,990

Share in results from associates

-

-

-

-15,357

-

-15,357

Taxation

-8,257

5,324

9,167

4,093

-176

10,151

Underlying net profit/(loss)

24,770

-15,972

-27,503

-20

529

-18,196

       

Currency effect equity investments

-

-

-

120,208

-

120,208

Net profit/(loss)

24,770

-15,972

-27,503

120,188

529

102,012

Segment assets at June 30, 2022

Financial Institutions

Energy

Agribusiness, Food & Water

Private Equity

Other

Total

       

Loans to the private sector

2,304,890

1,532,560

980,092

25,813

13,608

4,856,963

Equity investments and investments in associates

-

-

-

2,524,707

-

2,524,707

Other assets

713,753

474,586

303,504

789,817

4,213

2,285,873

Total assets

3,018,643

2,007,146

1,283,596

3,340,337

17,821

9,667,543

Contingent liabilities – Effective guarantees issued

63,896

20,179

13,326

562

-

97,963

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

148,015

187,856

155,193

607,797

-

1,098,861

At June 30, 2021

Financial Institutions

Energy

Agribusiness, Food & Water

Private Equity

Other

Total

       

Interest income

52,425

53,361

24,055

2,038

4,231

136,110

Interest expenses

-3,428

-3,962

-1,857

-4,910

-1,438

-15,595

Net fee and commission income

1,110

6,515

24

175

-174

7,650

Dividend income

-

-

-

9,850

-

9,850

Results from equity investments

-

-

-

57,412

-

57,412

Results from financial transactions

3,355

-7,688

-2,055

-2,368

6,027

-2,729

Remuneration for services rendered

2,261

2,994

1,928

4,179

3,178

14,540

Gains and losses due to recognition

-

58

1,094

-

-

1,152

Other operating income

-

-

-

-

59

59

Allocated income

2,338

2,702

1,266

3,349

-9,655

-

Total underlying income

58,061

53,980

24,455

69,725

2,228

208,449

       

Operating expenses

-14,845

-13,621

-11,597

-17,030

-8,494

-65,587

Total operating expenses

-14,845

-13,621

-11,597

-17,030

-8,494

-65,587

       

Impairments on loans and guarantees

21,900

5,480

3,688

-724

-2,098

28,246

Total impairments

21,900

5,480

3,688

-724

-2,098

28,246

       

Profit/(loss) before taxation

65,116

45,839

16,546

51,971

-8,364

171,108

Share in results from associates

-

-

-

8,789

-

8,789

Taxation

-15,810

-11,129

-4,017

3,060

2,091

-25,805

Underlying net profit/(loss)

49,306

34,710

12,529

63,820

-6,273

154,092

       

Currency effect equity investments

-

-

-

44,305

-

44,305

Net profit/(loss)

49,306

34,710

12,529

108,125

-6,273

198,397

Segment assets at June 30, 2021

Financial Institutions

Energy

Agribusiness, Food & Water

Private Equity

Other

Total

       

Loans to the private sector

1,995,172

1,547,624

932,038

35,749

61,460

4,572,043

Equity investments and investments in associates

-

-

-

2,144,423

-

2,144,423

Other assets

824,854

639,827

385,328

901,338

25,408

2,776,755

Total assets

2,820,026

2,187,451

1,317,366

3,081,510

86,868

9,493,221

Contingent liabilities – Effective guarantees issued

78,726

43,994

-

496

-

123,216

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

150,460

180,279

149,735

514,605

-

995,079