Main activities in 2011
A strategic decision was made in 2011 to sell off the Group’s Share Portfolio, as a consequence of which net sales of shares totalled NOK 4.5 billion. At the end of 2011, the market value of the Share Portfolio was NOK 5.5 billion. At 31 December 2011, unrealised gains amounted to NOK 1.2 billion. Orkla Eiendom further developed its Idun residential project, which has been well received in the market.
The business unit
Orkla Financial Investments consists of Orkla Eiendom (real estate) and the Share Portfolio. Orkla Eiendom is a property developer, with projects that are often based on use of the Group’s own properties. The Share Portfolio consists primarily of investments in Nordic companies with substantial potential value.
- The business area seeks to free up capital for the Group by selling shareholdings in a timely manner
More about Orkla Financial Investments in 2011
Pre-tax profit amounted to NOK 2,097 million in 2011, compared with NOK 3,752 million in 2010. Realised portfolio gains and changes in the fair value of associates totalled NOK 1,643 million (NOK 1,772 million)2 due to the substantial sell-off of shares on which there was an unrealised gain. Dividends received amounted to NOK 438 million (NOK 521 million)2.
Due to the stock market decline and the Group’s substantial sell-off of securities, there was a reduction of NOK -3,258 million in the unrealised gains recognised in equity. Accounting write-downs under IFRS totalled NOK -668 million (NOK -266 million)2. In 2011, net sales of securities amounted to NOK 4,494 million (NOK 2,130 million)2. At 31 December 2011, the market value of the Share Portfolio was NOK 5,497 million.
*Operating profit before amortisation and other income and expenses.
1 Operating profit before amortisation and other income and expenses.
2 Figures in parentheses are for the corresponding period the previous year.