Segment Reporting by Operating Segments

FMO's primary goal is development impact. A sector based approach on Financial institutions, Energy, Housing and Agribusiness, food & water is leading in the strategy to optimize development impact. 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. Besides the focus sectors the segments Diverse sectors and Treasury are distinguished for segment information reporting purposes as well. For information about the performance of the different product and services reference is made to the paragraph 'Information about products and services'.

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, the interest free shareholders' equity is allocated as funding to the company's equity investments and interest-bearing securities portfolio. The company holds an interest-bearing securities portfolio for liquidity purposes and therefore the related interest income is allocated to the segment Treasury.

In 2011, there were no transactions between the operating segments. During 2011, the company decided to add an additional sector Agribusiness, food & water to the focus sectors. As a result, the segment reporting now also includes this segment. The segment Diverse sectors includes financing of projects outside the focus sectors mainly via partnerships. The segments include diverse products and services. The segment Financial institutions includes (private equity) investment funds, which are reported separately in the following table.

Financial institutions

At December 31, 2011

Excl. investment funds

Investment funds

Energy

Housing

Agribusiness food & water

Diverse sectors

Treasury

Total

Net interest income

41,672

2,391

16,529

5,954

15,198

31,840

33,384

146,968

Fee and commission income

2,031

1,188

929

282

569

1,649

-

6,648

Fee and commission expense

-

-

-

-

-

-

-165

-165

Net fee and commission income

2,031

1,188

929

282

569

1,649

-165

6,483

Dividend income

3,252

9,202

1,146

-

43

-

-

13,643

Results from equity investments

11,758

10,654

-

-

-

9,716

-

32,128

Results from financial transactions

679

7

-

986

54

8,473

3,083

13,282

Remuneration for services rendered

7,842

2,930

3,483

1,595

634

1,951

-

18,435

Other operating income

-2

-

-

116

4,016

925

1,918

6,973

Total other income

23,529

22,793

4,629

2,697

4,747

21,065

5,001

84,461

Share in the results of associates and subsidiaries

-15

-9,238

-

-

-

-

-

-9,253

Total revenue

67,217

17,134

22,087

8,933

20,514

54,554

38,220

228,659

Value adjustments on loans and guarantees - additions

-19,910

183

-10,156

-8,638

-6,630

-14,767

-

-59,918

Value adjustments on loans and guarantees - releases

8,053

-303

1,599

2,572

3,749

21,138

-

36,808

Value adjustments on equity investments and associates

-4,217

-12,261

-6,687

-456

-

-12,677

-

-36,298

Total value adjustments

-16,074

-12,381

-15,244

-6,522

-2,881

-6,306

-

-59,408

Operating expenses

-16,510

-9,670

-8,918

-3,685

-2,893

-9,822

-

-51,498

Total expenses

-32,584

-22,051

-24,162

-10,207

-5,774

-16,128

-

-110,906

Income tax

-4,664

3,747

832

77

-3,792

-10,816

-9,746

-24,362

Net profit

29,969

-1,170

-1,243

-1,197

10,948

27,610

28,474

93,391

Segment assets

Loans (incl. guaranteed by the State)

1,124,046

40,845

341,462

213,308

262,759

602,241

-

2,584,662

Equity investments and investments in associates

(excl. associates using equity method)

88,236

519,149

70,320

429

21,709

53,537

-

753,379

Associates using equity method

8,229

33,831

-

-

-

-

-

42,060

Other assets

-

-

-

-

-

-

1,679,178

1,679,178

Total assets

1,220,511

593,825

411,782

213,737

284,468

655,778

1,679,178

5,059,279

Financial institutions

At December 31, 2010

Excl. investment funds

Investment funds

Energy

Housing

Agribusiness food and water

Diverse sectors

Treasury

Total

Net interest income

31,197

2,492

12,416

8,656

12,944

37,201

28,194

133,100

Fee and commission income

704

1,024

424

80

649

3,823

-

6,704

Fee and commission expense

-

-

-

-

-

-

-119

-119

Net fee and commission income

704

1,024

424

80

649

3,823

-119

6,585

Dividend income

3,658

11,124

200

-

-

184

-

15,166

Results from equity investments

14,612

6,121

14,412

-

-

1,195

-

36,340

Results from financial transactions

9

-1

-

135

-148

3,364

2,648

6,007

Remuneration for services rendered

8,540

2,376

3,295

2,237

428

2,380

-

19,256

Other operating income

602

-

-

-

5,738

2,095

287

8,722

Total other income

27,421

19,620

17,907

2,372

6,018

9,218

2,935

85,491

Share in the results of associates and subsidiaries

1,445

2,765

776

-

428

30

-

5,444

Total revenue

60,767

25,901

31,523

11,108

20,039

50,272

31,010

230,620

Value adjustments on loans and guarantees - additions

-16,311

7

-6,191

-17,222

-4,485

-12,840

-

-57,042

Value adjustments on loans and guarantees - releases

6,995

-

733

-

13,878

16,943

-

38,549

Value adjustments on equity investments and associates

-524

-6,713

-799

-

-

-2,931

-

-10,967

Total value adjustments

-9,840

-6,706

-6,257

-17,222

9,393

1,172

-

-29,460

Operating expenses

-16,395

-9,939

-6,491

-3,828

-3,138

-9,998

-

-49,789

Total expenses

-26,235

-16,645

-12,748

-21,050

6,255

-8,826

-

-79,249

Income tax

-3,986

2,729

-2,276

2,535

-6,596

-9,648

-7,908

-25,150

Net profit

30,546

11,985

16,499

-7,407

19,698

31,798

23,102

126,221

Segment assets

 

Loans (incl. guaranteed by the State)

886,648

46,077

284,307

185,187

240,689

626,097

-

2,269,005

Equity investments and investments in associates

(excl. associates using equity method)

91,674

434,393

50,113

176

16,579

49,042

-

641,977

Associates using equity method

5,705

40,505

-

-

-

-

-

46,210

Other assets

-

-

-

-

-

-

1,347,870

1,347,870

Total assets

984,027

520,975

334,420

185,363

257,268

675,139

1,347,870

4,305,062