Annual Report 2014

Bulk’s Office in Oslo

04 Chairman´s Introduction06 Quick Facts08 Business Areas 10 Waterfront Management AS12 Bulk Eiendom AS14 N01 Campus, Vennesla17 Infragreen AS18 People20 Reference Projects22 EU Electricity Production by Country24 Board of Directors Report28 Financial Statements Group32 Notes36 Auditor´s Report

Bulk Industrier AS is a family owned Norwegian based

investment group with operational companies within the investment

areas of industrial real estate, data center and fiber.

Vision:High Performance Future

Chairman´s Introduction

In the economy of scale, size matters. Successes also teach us there is always a right size. If you put this into the per-spective of the exact time you are in, you hope to make the right decision about what size. History has shown us that many projects or products have failed because they could not meet the demands of the right size. Technologies have become obsolete because it was not small enough and infrastructure or buildings have been in places where they were restricted to become large enough.

Large size objects or constructions have always fascinated me. My fascination was inspired further in 1991 when I, as a student at London School of Foreign Trade, got a job at the Taiwanese family-owned C.Y. Tung Group. Once one of the world´s leading shipping companies, they built the world´s largest man-made moving object, the supertanker Seawise Giant. My office walls were decorated with proud memories about the vessel and rightfully so. With 458 meters LOA the vessel was longer than the Empire State Building is tall, and an impressive four and a half football fields could be placed on her deck. Unfortunately, the storage capacity on land at that time did not match her size. As a result she had very limited alternative routes to offer her services for. The first ten years of her life, the freight rates on her routes dropped every time she was heading back to the Persian Gulf to pick up a new cargo.

The closest to the great size of the Seawise Giant we have built so far, is the Ahlsell warehouse at Gardermoen with a 438 meters LOA in first stage, only 20 meters short of the lady. Larger in footprint but only 2/3 of its volume we still have a way to go. More importantly the Seawise Giant taught me an important lesson. If we plan our business to be scalable at the right time, we have a lower risk of failure.

Scalability will always be an important factor in any strategy Bulk Industrier considers. If we should become successful within a certain strategy or investment, it is important not to loose our momentum because of size. However we have chosen to invest in capital intensive industries, and as we develop new projects it is neces-sary from time to time to make exits in order to finance our future growth.

During 2014, Bulk Eiendom, decided for the second time in its history to sell a logistic portfolio of new builds. This time somewhat larger than the NOK 1,46 billion portfolio it sold in 2010. The sale achieved a net aver-age yield of 5,9 % which would not have been obtained unless we were able to scale the size of the portfolio suitable for the institutional market. Our 12,1 years aver-age lease durations with strong tenants will always be attractive among these investors. Like the sale in 2010, unleveraged pension-investors also picked up the 2014 portfolio. As our business has developed since 2006, we have found that our projects are especially attractive when we are allowed to design the buildings to be like we would like to own them ourselves - Durable, Flexible and Scalable.

After almost four years in research and planning we an-nounced in December that we are entering perhaps the most aggressively scaling business in the world - Big Data. One of the most alarming observations about this industry is that it pollutes more than the worlds airline industry by using vast amounts of fossil fueled power. If we consider that we are just starting the era of Internet of Things it is critical that the data center industry finds alternatives to grow using only renewable energy. As you can see from our data center infrastructure >>

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rd

Peder Nærbø, Chairman and Owner, Bulk Industrier AS

‘It’s time to clean up the Cloud...’

initiatives in this report, we have started a new indus-trial real estate project for the world’s markets – the N01 Campus. This project is combining the diversified skills the 24 people in our group of companies have. Our cost-effectiveness program for design and building has led us to redesigning data centers.

We find that the complex design of these buildings and their detailing has a great potential for improve-ments. We will use our existing strategies to reach our goal of building an extremely scalable campus with renewable energy. We are also connecting it to the hyperscale fiber networks between continents. Our logistics approach and flexible design will make the N01 Campus second to none. We will make Norwegian surplus hydroelectric power available for the growth of Big Data on “physically” green energy.

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2006 24 #1 30  %

3  094  800  000 86           201  507  380 12.1

254  919 6  045 261 604  000

IRRestablished people ranking  Euromoney  2013

tenants  in  m²

total  property  salesvolume  in  NOK

hectar  land  for  data

hectar  land  for  logistic  and

new  buildings  developed  for  logistic

weighted  average  rental  income  signed  for

Oslo  and  Denmark  in  meterscenter  developmentdark  fiber  controlled  between

warehouse  development lease  termnew  buildings  in  NOK

leased  to  data  centerand  warehouse  tenants  in  m²

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Logistics Data Centers

Fiber InfrastructureData Services

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Active IP addresses worldwide

Waterfront Management AS

Waterfront Management is a management company that bridges the owner’s interests and the operational activities in investment companies such as Bulk Eiendom and Infragreen. Its main objectives are to support daily operations in investment companies, identify and analyse new investment opportunities, business developments and report to owners as well as external parties.

For several years Waterfront Management has identified the key success criteria for bringing the international data center industry to Norway.

During 2014, several logistic and industrial properties have been sold and important strategic steps have been taken to develop a vastly scalable Norwegian data center industry. We have invested and contracted a new Norwegian backbone of dark fiber in order to improvethe connectivity with the international fiber network.

Late 2014 Bulk Eiendom together with Akershus Energi, owned by Akershus County, acquired Norway’s largest existing data center in Oslo. The building has a total of 25 000 m² floor space and house about 6 000 m² for leading international data center operators.

The property has an impressive 22 MW of power installed and is the location where most international fiber termi-nates in Norway. Due to its connectivity, you will find the world’s largest Internet carriers and operators together with Norway´s national counterparts there. We have started to redesign, upgrade and modernise the infrastructure to and within the building, which will soon become the Oslo Internet Exchange (OSIX).

Espen B. Danielsen, CEO, Waterfront Management AS

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Hans Møller Gasmannsvei 9, Oslo

Bulk Eiendom AS

Bulk Eiendom is a leading developer and owner of industri-al real estate specialised in the warehousing, logistics and data center segments.

Bulk has a strong team with extensive experience to handle the challenges throughout the development process. Our key success factors are to identify and hold the best loca-tions, design flexible, cost effective and standardised build-ings for our tenants. We are known to complete projects with high quality, on time and at budget. All executed by in-house project management.

Defined milestones are reached, including handover of three new projects. In addition, ongoing zoning and development of existing land in our portfolio continues.

Bulk´s team has grown with additional recruitments through the year, which will allow us to continue with a high appetite for new projects that will continue to grow in both number, size and complexity. By year-end we reached a record high sales volume of MNOK 1 534 from the sale of nine properties.

The outlook for 2015 seems promising with several on-going tenant processes. However, the availability of prime locations is more challenging than ever. We will therefore continue to focus on further development of our existing property portfolio by turning land areas into new projects for tenants as well as improving existing cash flow buildings to enhance their values.

Olav Sunde, CEO, Bulk Eiendom AS

The Bulk Value Add Process

From Land to Completion

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N01 Campus, Vennesla Norway

N01 Campus aims to become a leading international data center campus with the highest international quality standards. We will offer a highly connected, scalable, resilient and secure site for the rapidly growing data center industry. We embrace the increased focus the industry has to oper-ate its data centers on renewable power sources. N01 Campus will be the first of its kind where Norway´s vast surplus of hydroelectric power allows the industry to “clean up the Cloud”.

Facts on the international data center market: - global annual turnover 2014 of USD 25 billion (PR Newswire, 2014) - data centers consume 3 % of all global electricity production (The Data center Journal, 2014)- in 2017 global data center traffic is forecasted to triple (JLL Data Center Outlook 2014) - shift from traditional enterprise data centers to “hyperscale” multi-tenant facilities (www.itp.net)

Why Vennesla in Norway? - 97.8 % hydroelectric power- lowest energy price in Northern Europe - “unlimited” international fiber - vast surplus of hydroelectric power - close to the rest of Europe - easy access to human IT resources (University of Agder) - low political risk- low risk of natural disasters - international airport, schools and communities- attractive city nearby, Kristiansand

N01 CampusThe location at Vennesla is chosen after years of analysing the critical criteria for how to successfully establish an international data center industry in Norway. No country in the world has the same opportunity as Norway for taking a leading role when creating a “clean cloud data center industry” boosted by hydroelectric power. N01 Campus will play a major role in the region‘s future industry growth and create new jobs. Our total investment frame is NOK 10 billions the coming years.

Torbjørn T. Moe, CTO and Owner, Bulk Eiendom AS

N01 Campus, Vennesla

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16

Infragreen AS

Infragreen facilitates the process of developing diversified and redundant fiber connectivity between Norway and overseas markets. Infragreen aims to offer the shortest path to the rest of Europe for data traffic.

Crucial for the development of data centers in Norway is to ensure availability of international fiber connectiv-ity between Norway and the rest of Europe. Infragreen has initiated a fiber infrastructure investment program between Oslo and Denmark for dark fiber. This new fiber highway will be finalised in 2015.

Infragreen has partnered with major global telecom operators to ensure full connectivity. Infragreen has the innovative knowledge to offer the market new innova-tive ways of operating data centers.

During 2014, Infragreen has established a core team of people. A new automation platform (management system) for data centers is developed. This system will ensure a more professional and efficient operation of data centers again lowering costs for tenants.

Infragreen has started to facilitate for international and national data traffic to connect in what will be known as Oslo Internet Exchange (OSIX) in 2015 and Kristiansand Internet Exchange (KIX) on N01 Campus for the years to come.

Bjørn Vik, CEO and Owner, Infragreen AS

Peder NærbøChairman and OwnerPhone: +47 913 77 794pn@bulk.no

Torbjørn T. MoeCTO and OwnerPhone: +47 480 34 079ttm@bulk.no

Olav SundeCEOPhone: +47 932 06 858os@bulk.no

Aase SundeAdministration ManagerPhone: +47 977 33 778 asu@bulk.no

Laila FlatenAdministration AssistentPhone: +47 940 21 111lf@bulk.no

Hanne Rosenkilde HornAccounting AssociatePhone: +47 928 45 437hrh@bulk.no

André Mejdell Gulliksen Accounting AssociatePhone: +47 920 17 054amg@bulk.no

Ronny StenbergOperations ManagerPhone: +47 975 06 675rs@bulk.no

Thomas KristiansenProject ManagerPhone: +47 450 34 034tk@bulk.no

Espen TønsbergProject ManagerPhone: +47 911 62 244et@bulk.no

Jacob C. SandbergProject ManagerPhone: +47 928 20 842jcs@bulk.no

Maxim MironovProject EngineerPhone: +47 995 08 185mm@bulk.no

Rune BangHead of EngineeringPhone: +47 919 14 464rb@bulk.no

Bulk Eiendom AS

Inge Helander BolstadHead of AccountingPhone: +47 982 06 201ihb@bulk.no

Christian HaugInvestment DirectorPhone: +47 913 51 699ch@bulk.no

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Eirik SundeInvestor RelationsPhone: +47 908 70 750es@bulk.no

Espen B. DanielsenCEOPhone: +47 450 27 838ebd@bulk.no

Waterfront Management AS

Jon Suphammer CTOPhone: +47 919 93 536js@bulk.no

Pål SkjervumWeb ManagerPhone: +47 970 63 868ps@bulk.no

Bjørn VikCEO and OwnerPhone: +47 970 63 864bv@bulk.no

Viggo HegsethCMOPhone: +47 464 26 084vh@bulk.no

Infragreen AS

Mark RuffDevelopment DirectorPhone: +44 (0) 7912 044316mr@bulk.no

Dag Træet KlemHead of DevelopmentPhone: +47 969 02 957dk@bulk.no

Atle H. StrayProject DevelopmentPhone: +47 949 89 313ahs@bulk.no

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Ruukki (Tibnor)Location: Bulk Park BergerSize Building: 7 000 m²Completion Date: 2008Status: Bulk Portfolio

Bring and DSVLocation: Bulk Park BergerSize Building: 42 000 m²Completion Date: 2009 Status: Sold 2010

Eek Transport (PostNord)Location: Bulk Park BergerSize Building: 6 580 m²Completion Date: 2009 Status: Sold 2010

RecallLocation: Bulk Park VestbySize Building: 4 200 m²Completion Date: 2009 Status: Bulk Portfolio

Ahlsell Location: Bulk Park GardermoenSize Building: 38 500 m²Completion Date: 2010Status: Sold 2010

NilleLocation: Bulk Park VestbySize Building: 21 500 m²Completion Date: 2010Status: Sold 2010

XXLLocation: Bulk Park GardermoenSize Building: 20 500 m²Completion Date: 2011Status: Sold 2014

FedexLocation: Bulk Park BergerSize Building: 1 959 m²Completion Date: 2011Status: Sold 2014

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Reference Projects

DachserLocation: Bulk Park VinterbroSize Building: 5 100 m²Completion Date: 2012 Status: Sold 2014

Ontime (DSV)Location: Bulk Park FugleåsenSize Building: 10 630 m²Completion Date: 2012 Status: Sold 2014

GoodtechLocation: Bulk Park LindebergSize Building: 2 296 m²Completion Date: 2013 Status: Bulk Portfolio

Norsk Lastbærer PoolLocation: Bulk Park FugleåsenSize Building: 20 446 m²Completion Date: 2013 Status: Sold 2014

XXLLocation: Bulk Park Örebro, SwedenSize Building: 20 500 m²Completion Date: 2013Status: Sold 2013

Grove KnutsenLocation: Bulk Park BergerSize Building: 7 200 m²Completion Date: 2014Status: Sold 2014

PostNordLocation: Bulk Park FugleåsenSize Building: 12 444 m²Completion Date: 2014Status: Sold 2014

Iron Mountain and ArtoLocation: Bulk Park BergerSize Building: 7 200 m²Completion Date: 2014Status: Sold 2014

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       Renewables    Hydro      

Wind      

Solar      

       Other    

Nuclear      

Natural  Gas      

Petroleum  Products  &  Solid  Fuels      

0  %   10  %   20  %   30  %   40  %   50  %   60  %   70  %   80  %   90  %   100  %  

MT  CY  HU  CZ  PL  UK  NL  EE  BG  BE  FR  EL  IE  SK  DE  EU  RO  SI  ES  IT  LT  LU  FI  PT  DK  HR  SE  LV  AT  NO  

European  Electricity  Produc?on  by  Country   97,8%  

     Oil  Industry  back-­‐up                    Generators      

Source:    EU  Commission  Stats  2012    

<  

European Electricity Production by Country

22

Management. From left: Torbjørn T. Moe, Espen B. Danielsen, Olav Sunde, Peder Nærbø and Bjørn Vik

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Business descriptionBulk Industrier AS is an industrial investment company primar-ily investing in real estate developments within warehousing, logistics, data centers and infrastructure.

The Company has several investment criteria:• Diversification: investing in businesses with low market

correlation.• Industrial approach: long-term investment perspective with

focus on standardisation and scalability at the right time.• Cash flow: create predictable long-term income.• Active ownership: owner has controlling influence on the

Company’s investments. • Human resources: internal versatile expertise where

specialists from different disciplines form teams to ensure creativity, good solutions and enhance value creation.

The Company believes its investment criteria will ensure good investment decisions. Its objective is to diversify risk by invest-ing across multiple projects at the same time. The Company has an opportunistic investment approach and the ability to shift its focus rapidly when the market changes.

The Company´s office is in Oslo municipality.

2014 in short: • Sold 9 properties worth MNOK 1 534. • Improved demand from tenants for new warehouse

and logistics facilities. • In December the Group announced its plans how to

become Norway’s leading data center property developer, after several years of analysis and research.

• Strategic investments in the data center market: acqu- sition of the property located at HMG9 in Oslo, facili-tating for dark fiber by investing in 96 fibre-optic ca-bles from the Oslo Central Station to Kristiansand and between Vennesla (Kristiansand) and Denmark. Finally, agreements are signed to acquire land plots in Vennesla (1 700 000 m²) for data center development.

• Restructuring of subsidiaries: the aim for Group compa-nies is to be unified under one controlling company by 2015.

The Group consists of a number of companies:Waterfront Management AS. An investment management company with 2 employees. This company manages Water-front Venture I AS, Waterfront Venture II AS and Waterfront Venture III AS. This company is fully owned by Bulk Industrier AS.

Waterfront Venture I AS. A holding company that owns 75 % of Bulk Eiendom AS. The shareholders consist of four families. This company was founded in 2011. By year-end, the shareholders had an estimated return of 68,4 %. This company has no employees. Bulk Industrier AS owns 61.82 % of the company, including 100 % of voting shares.

Bulk Eiendom AS. A property development company that specialises in warehousing, logistics and industrial proper-ties. The company has 17 employees.

Waterfront Venture II AS. An investment company which has provided loans to various companies within the Group. The company has no employees. Bulk Industrier AS directly and indirectly owns 26.67 % of the company, including 100 % of voting shares.

Board of Directors Report

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Waterfront Venture III AS. A holding company that owns Infra-green AS. Bulk Industrier AS owns 75 % of the company.

Infragreen AS. A data center services company. The company has 4 employees. Infragreen AS owns Infragreen Communica-tion AS.

Infragreen Communication AS. A company that invests in data servers for lease to its clients. This company is a tenant at Hans Møller Gasmannsvei 9. Hans Møller Gasmannsvei 9 will func-tion as the hub for access and fibre-optic transport cables in Norway. The company has no employees.

Bulk Infrastructure Landfiber AS. This company has invested in 96 dark fibre between Oslo and Kristiansand. The company has no employees. Bulk Industrier AS owns 90 % of the company.

Bulk Infrastructure Seafiber AS. This company has a long-term rent agreement for dark fibre between Vennesla (Kristiansand) and Denmark. The company has no employees. The company is fully owned by Bulk Industrier AS.

Going concernIn accordance with Section 3-3a of the Norwegian Accounting Act, we hereby confirm the assumption of going concern. The assumption is based on year-end 2014 status and the Group’s long-term strategic forecasts for the years ahead. The Group has a solid financial position.

Future developmentWarehousing, logistics and industrial buildings. The transaction market for commercial properties is expected to remain strong with low/negative real interest rates. High activity level with new potential tenants for new buildings.

Data Centers. Norway satisfies all criteria to attract major foreign data center clients. The Group has signed agree-ments to acquire large plots close to a major Norwegian hydroelectric power station. The site is well connected domestically and abroad. The Group can offer dark fiber cables to our clients domestically and abroad. Potential cli-ents showed an interest for the site during 2014. The Group expects increased attention for its site in the years to come.

The Group has taken an industrial long-term approach to its investments. From a risk reward perspective the Group believes that risk is lowered by actively following up all investment by internal competence and resources as part of the industrial investment approach.

Report on the annual accounts Operating income for the Group increased from MNOK 81.0 in 2013 to NOK 525.7 in 2014. Net profit for 2014 amounted to MNOK 394.3. The Group’s operating profit rose from MNOK -1.4 in 2013 to MNOK 455.7 in 2014, while the annual net profit adjusted for minority interests rose from MNOK -22.4 in 2013 to MNOK 222.0 in 2014.

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The Group’s total debt amounted to NOK 350.3 as of 31 December 2014, compared to MNOK 1 296.0 as of 31 December 2013. This reduction is mainly due to sale of several properties during 2014.

Other financial and interest costs amounted to NOK 120.8 as of 31 December 2014 compared to MNOK 69.3 as of 31 December 2013. Due to extensive growth, the Company had high financ-ing and interest costs. The Company aims to reduce these costs significantly by strengthening its equity.

Total assets at the end of the year amounted to MNOK 772.0, compared to MNOK 1 497.9 last year. The equity ratio as of 31 December 2014 was 54.6 %, compared to 13.5 % as of 31 December 2013.

The Group’s financial position is solid.

The Group paid MNOK 60 in dividends in 2014 from subsidi-aries. MNOK 6 is paid in dividend to external investor, while remaining dividend is retained within the Group.

The Holding company´s net result was MNOK -27.7 in 2014 due to significantly higher financial and interest costs compared to 2013. Total assets was MNOK 154.5 in 2014. The Holding company´s equity was MNOK 35.3 and the equity ratio as of December 2014 was 22,8 %.

Financial riskThe Group is exposed to different types of risks:

Liquidity risk. The Group intends to have sufficient liquidity to meet all its obligations, including new investments. The Group intends to maintain a reasonable amount of liquidity to meet unforeseen obligations. Interest risk. The Group has loans with a number of financial institutions, all with long-term repayment plans. The Group is exposed to changes in both NIBOR interest rates and SWAP interest. The distribution of floating and fixed interest rates was nearly 50/50 by the end of the year.

Credit risk. The Group’s warehouse and distribution proper-ties are characterised by high standards, good locations, long lease agreements and reliable tenants. There was no credit loss in 2014. The Group’s tenants normally pay quar-terly and in advance. The lease agreements usually require an additional form of collateral or security.

Market risk The activity level in the transaction market for real estate in Norway is generally high. Particularly properties with long-term lease agreements combined with low rental levels are attractive. Demand is expected to remain high as long as interest rates remain low and the macro-economic situation remains stable.

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Rental market for warehouses, logistic buildings and data centers. The Group is exposed to the risk of changes in lease/rental prices in the market. Fluctuations in unem-ployment and inflation affect the Group. The Group has several long-term lease agreements in place. However, the weighted average lease term for tenants has been reduced from 12 years to 9 years as several long-term lease proper-ties were sold in 2014. The weighted average lease term on agreements for new buildings signed by the Group since 2006 is 12.1 years. The lease agreements provide the Group with fixed and predictable revenues throughout the contract period. Most lease agreements are adjusted annually 100 % in line with the consumer price index. The rate of vacancy in buildings is low.

Working environment and personnel Sick leave in the Group amounted to 225 hours in 2014, which was 0.56 % of all hours worked in the year. The Group had 23 employees at year-end. The Holding company had no employees, no women in the Board in 2014. The Board consists of one man in 2014.

Gender equalityThe Group has policies in place to ensure full gender equality within our companies. The Group has incorporated routines in its company policy that aim to eliminate dis-crimination due to gender for issues such as wages/salary, advancement and recruiting.

DiscriminationThe Norwegian Anti-discrimination Act aims to promote gender equality, ensure equal opportunity at work, protect the rights of employees and prevent discrimination due to race, nationality, ethnicity, skin colour, language, religion and beliefs. The Group is working actively, consciously and consist-ently to incorporate the objectives of the Act in all our activi-ties. These activities include recruitment, wages/salaries and working conditions, professional advancement, development opportunities and protection against harassment.

Environment reportingThe Group wants to protect the environment. The Company attempt to select and purchase eco-friendly materials, energy-saving technical solutions and to implement environmentally friendly projects and operational procedures at all our projects and properties.

Profit/Loss for the year and allocation of fundsThe Board of Directors proposes that the loss for the year in the Holding company amounting to NOK 27 729 083 will be covered by transfer from other equity. Other equity amounts to NOK 35 214 208 after covering the Holding company’s loss for the year. Oslo, 30 June 2015

_____________________________Peder NærbøChairman of the board

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Bulk Industrier AS Page 1  

Consolidated Accounts Bulk Industrier AS

Operating income and operating expenses Note 2014 2013

Revenue 1 89 882 810 61 004 465 Other operating income 1 435 824 189 19 994 154 Operating income   525 706 999 80 998 619

Raw materials and consumables used   1 043 469 11 821 088 Payroll expenses 3 25 466 676 20 349 676 Depreciation and amortisation expense 5 20 343 231 16 215 582 Write down on tangible and intangible assets 5 2 228 364 19 208 200 Other operating expenses 3 20 957 444 14 784 466 Operating expenses   70 039 184 82 379 013

Operating profit   455 667 815 -1 380 394

Financial income and expenses Other interest income

 

4 704 434

1 540 250 Other financial income   6 462 008 14 537 493 Increase in market value of financial current assets   0 53 296 Depreciation of financial current assets   89 474 0 Depreciation of other financial fixed assets 6 1 169 841 0 Other interest expenses   55 614 536 68 951 443 Other financial expenses   65 182 539 300 958 Net financial income and expenses   -110 889 946 -53 121 362

Operating result before tax   344 777 869 -54 501 756

Tax on ordinary result 4 -49 486 209 -10 352 165

Operating result after tax   394 264 078 -44 149 592

Annual net profit   394 264 078 -44 149 592

Minority interest   -172 219 831 21 771 511

Annual net profit after minority interest   222 044 247 -22 378 081

Financial Statements Group Bulk Industrier AS

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Financial Statements Group Bulk Industrier AS

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Bulk Industrier AS Page 2

Consolidated Accounts

 

Bulk Assets

Industrier AS

Note

2014

2013

Fixed assets      Intangible fixed assets      Concessions, patents, licences etc 6 1 171 167 2 304 896 Total intangible assets   1 171 167 2 304 896

Tangible fixed assets      Buildings and land 5, 12 438 507 113 1 373 880 130 Machinery 5, 12 21 024 740 6 215 127 Equipment and other movables 5 1 069 404 1 586 104 Total tangible fixed assets   460 601 257 1 381 681 361

Financial fixed assets      Investments in associated companies 7 40 676 925 0 Investments in shares   623 547 623 547     293 431 2 350 998 Total financial fixed assets   41 593 903 2 974 545

Total fixed assets   503 366 327 1 386 960 802

Current assets

     

Inventories 8 4 570 510 4 570 510

Debtors      Accounts receivables   7 173 883 23 552 050 Other receivables 9 27 847 857 26 805 564 Total debtors   35 021 739 50 357 614

Investments      Quoted investment shares   99 571 200 047 Total investments   99 571 200 047

Cash and bank deposits 2 228 982 595 55 775 655

Total current assets   268 674 415 110 903 826

Total assets   772 040 742 1 497 864 628

Financial Statements Group Bulk Industrier AS

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Bulk Industrier AS Page 3

Consolidated Accounts

 

Equity and liabilities

Bulk Industrier AS Note

2014

2013 Restricted equity        Share capital   10 100 000 100 000 Total restricted equity     100 000 100 000

Retained earnings        Other equity   11 129 763 122 -2 405 386

Minority interest     11 291 873 705 204 218 239 Total retained earnings     421 636 826 201 812 853

Total equity   11 421 736 826 201 912 853

Liabilities        Provisions        Deffered tax   4 18 852 306 54 155 478 Other provisions   13 0 17 829 364 Total provisions     18 852 306 71 984 842

Other long-term liabilities        Liabilities to financial institutions   12, 13 276 244 646 1 148 235 727 Other long term liabilities     0 670 339 Total of other long term liabilities     276 244 646 1 148 906 066

Current liabilities        Trade creditors     9 630 160 17 254 071 Tax payable   4 1 937 221 856 351 Public duties payable     2 812 822 6 361 434 Dividends   11 24 051 035 0 Other short term liabilities     16 775 726 50 589 011 Total short term liabilities     55 206 964 75 060 867

Total liabilities     350 303 916 1 295 951 775

Total equity and liabilities     772 040 742 1 497 864 628

 

Norway produces 97,8 % renewable hydroelectric power

Notes - Consolidated Accounts Bulk Industrier AS

 

 

Note 1 – Operating income 2014 2013

Rental Income 89 720 119 61 004 465 Profit from sale of properties 432 458 222 0 Other operating income 3 528 658 19 994 154 Total operating income 525 706 999 80 998 619

Note 2 – Cash and bank deposits

Restricted funds 2014 2013 Tax deduction funds 992 552 1 223 928 Other restricted funds 4 796 378 5 200 000

Note 3 – Payroll expenses and other operating expenses

Payroll expenses 2014 2013 Salaries 21 104 258 17 530 510 Employer´s tax expenses 2 460 092 2 079 566 Pension costs 383 766 331 656 Other personnel costs 1 428 655 407 944 Total 25 376 771 20 349 676

Average number of employees (full-time equivalents/FTE) 23 20

Remunerations to executive personnel at the subsidiaries Bulk Eiendom AS and Waterfront Management AS

General Manager BE

General Manager BI

Board of Directors

Salaries 1 102 231 1 041 504 0

Mandatory occupational pensions The group has established a mandatory occupational pension scheme according to its obligations, which is comprised of an occupational pension plan that satisfies the requirements of the law.

Auditor's fees (Other operating expenses) 2014 2013

Auditor´s fee 707 356 689 596 Other financial auditing 71 430 338 723 Tax advisory services 40 410 24 761 Total auditor’s fees 819 196 1 053 080

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Notes Bulk Industrier AS

Notes - Consolidated Accounts Bulk Industrier AS

 

 

Note 4 – Tax Group

2014

2013

Taxes payable 1 937 221 856 351 Changes in deferred tax -24 729 549 9 495 814 Changes deferred tax assets sold companies -27 430 275 0 Adjustment of previous years 736 394 0 Tax on ordinary result -49 486 209 10 352 165

Deferred tax 2014 2013 Change Total deferred tax 18 852 306 43 581 855 -24 729 549

Note 5 – Fixed Assets

Real property Operational

moveable property

Machines and

installations

Total

Acquisition cost as of 01.01. 1 446 710 112 3 408 650 6 909 427 1 457 028

189 Additions during the year 13 484 095 127 800 16 339 256 29 951 151 Disposals during the year -960 581 682 0 0 -960 581 682 Acquisition cost, 31.12. 499 612 525 3 536 450 23 248 683 526 397 658 Accum. write-offs, 01.01. 51 291 488 1 822 546 694 300 53 808 334 Depreciations for the year 18 169 088 644 500 1 529 643 20 343 231 Depreciation on disposals -32 122 022 0 0 -32 122 022 Accum. depreciation 31.12. 37 338 554 2 467 046 2 223 943 42 029 543 Accum. write-down 01.01. 21 538 494 0 0 21 538 494 Write-down for the year 2 228 364 0 0 2 228 364 Accum. write-down 31.12. 23 766 858 0 0 23 766 858

Book value as of 01.01. 1 373 880 130 1 586 104 6 215 127 1 381 681 361 Book value as of 31.12. 438 507 113 1 069 404 21 024 740 460 601 257

Economic lifetime 20 - 100 years

3-5 years

3-5 years

Notes Bulk Industrier AS

33

Notes Bulk Industrier AS

Notes Bulk Industrier AS

34

Notes - Consolidated Accounts Bulk Industrier AS

 

 

Note 6 – Investment in film rights

The company has invested in a film right with an ownership of 10 %. The amount invested as of 31 December was NOK 2 321 166. Book value amounted to NOK 1 171 167. The fair value of the right to this film is uncertain. It has been charged as an expense, as a write-down on a fixed asset investment (film right) for the financial year, amounting to NOK 1 150 000.

Note 7 – Investments in associated companies Office Owner/voting Results Equity Company Municipality shares in % Book value 2014 31.12.14 HMG9 Holding AS (Oslo) 50 40 676 925 -286 685 79 814 799

This company was acquired at the end of 2014 and is the holding company for 3 underlying companies. The company’s equity (and underlying companies) amounted to NOK 73 081 842 as of 31 December, as calculated using the equity method at time of acquisition in 2014.

Investment in HMG9 Holding AS 2014 Equity in associated companies at acquisition 36 540 921 Share of results 0 Added value of property 4 136 004 Write-off added value of property (rate 2.8 %) 0 Book value 40 676 925

Note 8 – Gravel storage facilities

2014 2013 Gravel facilities at fair value (lower than procurement cost) 4 539 420 4 539 420

Note 9 – Current receivables

2014 2013 Of which are short-term shareholder loans 5 669 181 3 209 677

Note 10 – Share capital and shareholder information

The equity in Bulk Industrier AS is composed of 100 ordinary shares each worth NOK 1 000. All shares are owned by the Chairman of the board, Peder Nærbø.

Notes Bulk Industrier AS

35

36

Ahlsell warehouse, Gardermoen

Bulk Industrier AS

Frognerstranda 2 “Kongen”0250 OsloNorway

Tel: +47 47 80 70 00Email: post@bulk.no

bulk.no