Notes to the Company Annual Accounts

1. Equity investments

2011

2010

Balance at January 1

630,205

480,288

Purchases and contributions

179,488

150,134

Re-class to loans

4,787

-794

Re-class from/to associates

-

1,709

Sales

-78,924

-52,260

Value adjustments

-36,298

-10,967

Changes in fair value

54,108

62,095

Balance at December 31

753,366

630,205

2011

2010

Equity investments at fair value

581,853

476,437

Equity investments at cost less impairment

171,513

153,768

Balance at December 31

753,366

630,205


2. Investments in associates

2011

2010

Balance at January 1

49,503

40,695

Purchases and contributions

9,775

7,420

Re-class to/from equity investments

-

-1,709

Re-class from subsidiaries

-

12,346

Sales

-10,134

-15,316

Share in net results

-9,248

4,363

Translation differences

1,165

1,704

Balance at December 31

41,061

49,503

3. Subsidiaries

2011

2010

Balance at January 1

11,727

18,342

Purchases and contributions

-

4,238

Sales and repayment of capital

-

-396

Share in results

3,667

1,450

Re-class to associates

-

-12,346

Dividends declared

-

-30

Share in available for sale reserve

-

241

Translation differences

44

228

Balance at December 31

15,438

11,727

The investments in subsidiaries consist of the following interests in the share capital of:

  1. Nuevo Banco Comercial Holding B.V.: 100%.
  2. FMO Antillen N.V.: 100%.
  3. Blauser S.A.: 70.5%.


The following table summarizes the carrying value of the subsidiaries.

2011

2010

Nuevo Banco Comercial Holding B.V.

12,272

9,282

FMO Antillen N.V.

2,159

2,149

Blauser S.A.

1,007

296

Balance at December 31

15,438

11,727

During 2011, FMO's stake in Blauser S.A. increased from 63.125% to 70.5%.

4. Shareholders’ equity

Share capital

The authorized capital amounts to €45,380, consisting of 51% A shares of €22.69 each, which are held only by the State, and 49% B shares, also of €22.69 each, which are held by private investors. The voting rights for A shares and B shares are equal.

The equity of the company comprises three reserves, which result from the Agreement State-FMO of November 16, 1998. These are the share premium reserve, the development fund and the contractual reserve. As the company continues its activities, these reserves are not available to the shareholders. Upon liquidation of FMO, these reserves fall to the State, after settlement of the contractual return to the shareholders.

2011

2010

Authorized share capital

1,020,000 A shares x €22.69

23,144

23,144

980,000 B shares x €22.69

22,236

22,236

45,380

45,380

2011

2010

Issued and paid-up share capital

204,000 A shares x €22.69

4,629

4,629

196,000 B shares x €22.69

4,447

4,447

9,076

9,076

Share premium reserve

2011

2010

Share premium reserve shareholder A, contributed on the transfer to the company of investments administered on behalf of the State on the financial restructuring

8,061

8,061

Share premium reserve shareholder B, contributed on the transfer to the company of investments administered on behalf of the State on the financial restructuring

21,211

21,211

29,272

29,272

Contractual reserve

The addition relates to that part of the net profit, which FMO is obliged to reserve under the Agreement State-FMO of November 16, 1998 (see 'other information').

Development fund

This special purpose reserve contains the annual budgetary allocations made by the State to finance the portfolio of loans and equity investments. In 2005, FMO received the final contribution (€37,260) to the development fund under the Agreement State-FMO of November 16, 1998.

Available for sale reserve (AFS reserve)

The available for sale reserve includes net revaluations of financial instruments classified as available for sale that have not been reported through the profit and loss account.

The following table shows the components of the available for sale reserve at December 31, 2011 and December 31, 2010.

2011

2010

Gross gains and losses in the AFS reserve

Equity investments at fair value

162,697

108,589

Share in AFS reserve subsidiary

-

-

Interest-bearing securities at fair value

21,269

12,768

183,966

121,357

Deferred taxes on gains and losses

Equity investments at fair value

-

-

Share in AFS reserve subsidiary

-

-

Interest-bearing securities at fair value

-7,765

-3,260

-7,765

-3,260

Net gains and losses in the AFS reserve

Equity investments at fair value

162,697

108,589

Share in AFS reserve subsidiary

-

-

Interest-bearing securities at fair value

13,504

9,508

176,201

118,097

 

The statement of changes in the shareholders' equity details the movements in the available for sale reserve during 2011. The statement is included in the consolidated annual accounts.

Other reserves

Dividend distributed to shareholders of A shares and B shares is equal.