USD iable untries, atory mitting icants stment eveloping IFU offers capital and advice to joint venture enterprises in d IFU offers capital and advice to joint venture countries. ventures through com IFU participates as a partner in the joint board membership. equity capital and/or loans and through international close contacts with Nordic, European, and Due to IFU’s able to make completelocal financial institutions, IFU is often fi- nancing arrangements on favourable terms. Danish and local appl IFU works in a spirit of partnership with joint work in the inve and maintains this spirit throughout the with a wide rangeprojects. Based on its many years of experience of during the prepar investments, IFU acts in an advisory capacity and initial phases of investment projects. a seat on the board Once the project is established, IFU takes of direc- tors. Both large and small projects, including pilot projects, are eligible for IFU financing. This flexibility suits both the needs of developing coun- tries and the structure of Danish trade and industry. in part by a Danish be eligible, a project has to be financed busi- To ness partner. The project must further be evaluated as being a commercially v project. Green-field projects, expansion of existing projects and privatisation of state-owned enterprises are eligible. de- DAC list of Host countries of investments must be on the OECD’s velopment aid recipients, and per capita income may not exceed 5,225 (2002). 449 projects in 71 countries. DKK 1,872 million. to limited in its liability IFU is an independent, self-governing entity, ap- The Minister of Foreign Affairs the extent of its net worth only. points the Board of Directors and the Managing Director. For the purpose of promoting economic activity in developing co economic activity in of promoting For the purpose to promote investments in these countries IFU has been created in col- trade and industry. laboration with Danish June 7, 1967: The Danish Parliament, Development Co-operation The Act on International Purpose of Operations Purpose Glance IFU at a IT OFFERS WHAT HOW IT WORKS FINANCIAL ENGINEERING PARTNERSHIP SIZE OF INVESTMENTS ELIGIBILITY EXPERIENCE FROM EQUITY CAPITAL TOTAL INSTITUTIONAL FORM

DANISH INTERNATIONAL INVESTMENT FUNDS: The Industrialization Fund for Developing Countries Annual Report 2001 IFU’s sister Funds ● ●■ ● ● ● ◆ ● ● ● ● ● ● ◆ ● ● ◆ ● ● ● ● ● ● ● ●

◆ ● ● ● ● ●

East Gate Shipping Ltd, Hong Kong Karwice, Poland

– IN CENTRAL AND EASTERN EUROPE

The Investment Fund for Cen- the former Soviet Union. the biggest foreign investors ■ Head Office Copenhagen tral and Eastern Europe (IØ) is IØ works along the same lines as and has an office in Warsaw. In the joint venture investment IFU. Despite being an inde- other countries, IØ's partners ◆ Offices: Beijing Harare New Delhi Warsaw partner in countries between pendent entity, IØ shares its board benefit from the Fund's net- the Baltic and the Bering Seas, of directors and management with work of management advisers. ● Advisers: Bangkok Beijing Budapest Cairo Chennai Copenhagen Istanbul Lahore Lima Lomé Luxembourg and between the Arctic Ocean IFU, and is administered within IØ is the focal point of contact Mexico City Montevideo Moscow Nairobi Pretoria Riga Sandton Santiago de Chile Sâo Paulo and the Caspian Sea. the same organisation. between Danish companies Seoul Singapore Suzhou Tallinn Vilnius Washington D.C. The Fund was founded by an Act At the end of the year 2001, and international financial of Parliament in 1989 to facilitate in co-operation with Danish institutions. the transition to market based and local partners, IØ had par- IØ administers a special Environ- economies in Central and Eastern ticipated in 307 commercial mental Investment Facility (MIØ) Europe (CEE), including the three investments in 16 countries. In in co-operation with the Danish Danish International Investment Baltic states, and later the rest of Poland, IØ is counted among Ministry of the Environment. Danish International Investment Funds Funds is the umbrella term for IFU, IØ and IFV. The Funds operate in each their specific geographical – IN EMERGING MARKETS sphere:

The purpose of the Investment IFU and operates along the same IFV may operate in countries ● IFU in developing countries Fund for Emerging Markets (IFV) lines. IFV co-finances the estab- or regions outside Europe, that with a per capita income below is to encourage Danish compa- lishment of new companies, the are on the OECD's list of recipi- the World Bank's upper limit for nies to establish local companies extension of existing ones or the ents of development aid, but new loans (USD 5,225 in year in emerging markets, and to con- privatisation of state owned en- have a per capita income above 2002) tribute to an environmentally bal- terprises, provided that Danish the World Bank's upper limit for anced economic growth in these companies participate in their fi- new loans (USD 5,225 in year ● IFV in developing countries with markets. nancing as well as in their man- 2002). It thus covers almost www.ifu.dk a per capita income above the IFV is an independent entity. agement. IFV also facilitates the any non-industrialised country same World Bank limit However, it shares its board of access of Danish companies to that is not eligible for IFU or directors and management with international project financing. IØ financing. ● IØ in Central and Eastern Europe and in the Asian part of the former Soviet Union

– European Co-operation DANISH INTERNATIONAL INVESTMENT FUNDS Due to their economic growth, some countries that previously IFU, IØ and IFV are members of European Development Finance Institutions (EDFI). were in the IFU sphere have Besides the Danish Funds, there are 12 other members of EDFI. They are all bilateral finance moved to the IFV sphere. Exam- institutions offering capital for the development of the private sector in developing countries and ples are Argentina, Republic of countries that are in a transition process towards market economy. Bremerholm 4 Korea and Singapore. The objective of EDFI is to further mutual co-operation and to safeguard common interests towards DK-1069 Copenhagen K Denmark the European Commission and its institutions, including the European Investment Bank (EIB). tel: +4533637500 Fax +4533322524 [email protected] [email protected] [email protected] Front page: Verino Agro, Zambia Contents

4 Report from the Board and the Management

6 Investments Contracted in 2001

7 Scoring Systems Introduced

8 New Types of Partnership and Investment

10 A Bridge between India and Denmark

11 Life from the Dead Sea

12 They make Learning Fun

13 Financial Statements

18 Investment Portfolio Report from the Board and the Management

Sven Riskær, Managing Director Johannes Poulsen, Chairman

IFU activities not influenced by recession

In 2001, the economies of the Lower IFU investment level Special efforts in Africa leading industrialised countries expected in 2002 continued – regional office to were influenced by recession. The explanation may be that in- Johannesburg Africa, Asia and Latin America were vestments are often prepared over Since 1996, IFU has made a all hit by setbacks in foreign invest- a long period of time, sometimes special effort to identify and pro- ments and export opportunities. several years, before they result in mote investment projects in Sub- The attack on the United States actual activities. When prepara- Saharan Africa. As a result, of the 11th September and the tions have been completed, it Danish companies have invested subsequent events in Afghanistan would take major external in quite many African projects in contributed to the reluctance changes to reverse a project. The collaboration with IFU. The ef- among investors. number of signed agreements in forts continue, but are hampered On this background, it is grati- 2001 and the amount of dividend by political and economic insta- fying that in 2001 IFU still noted etc. paid out to IFU thus reflect bility in several of the African great interest from Danish trade the situation of 2000 or even countries. and industry to invest in devel- 1999 more than the current situ- Influenced by developments in oping countries. The return on in- ation. southern Africa, IFU made the vestments has not been signifi- Consequently, it would be realistic decision in 2001 to move its cantly affected by the general re- to expect a lower level of activity regional office from Zimbabwe to cession either, and, all things con- and less positive economic results South Africa’s financial centre, sidered, the profit of DKK 11.5 in the next couple of years, as a Johannesburg. In South Africa million is viewed as satisfactory. result of the 2001 recession. the situation is stable, and from

No. of investments in new projects 25 No. of additional financing of existing projects 14 Estimated job creation in host countries 2,424 Total contracted investments DKK 352.2m EUR 47.3m Contracted investments in new projects DKK 246.4m EUR 33.1m Results 2001 Total investments in new projects DKK 2,032.7m EUR 273.2m Estimated generation of Danish exports DKK 204.6m EUR 27.5m - equivalent employment effect in man-years 409 Disbursement of share capital and loans DKK 160.5m EUR 21.6m IFU’s equity capital at year ending 31.12. 2001 DKK 1,872.3m EUR 251.7m Year end result DKK 11.5m EUR 1.5m

4 Highlights 2001 Impact of recession not expected to be felt until 2002 Special measures being prepared for promoting investments in poor areas of Africa and China New organisational structure to enhance efficiency and strengthen customer service Increased attention on occupational health and safety, environment and ethics Accounts for 2001 showed a profit of DKK 11.5 million (EUR 1.5 million)

here there are good travel and structure was carefully prepared limited in-house staff resources trade connections with the rest of during 2001 and launched at the in these areas. Therefore, southern Africa, which is covered turn of the year. Through speciali- through administrative proce- by the regional office. sation and better distribution of dures, the Fund wishes to work, the aim is to strengthen strengthen and maintain the Increased focus on Western IFU’s expertise in all phases of a partners’ involvement in and China project to the benefit of all parties ability to meet the standards de- IFU has also decided to make an involved. The new structure will fined by EU and outlined in extra effort to try to expand also involve teamwork in relation IFU’s Environmental Policy and Danish investments in China to to the individual projects, en- Code of Conduct. This includes target not only the prospering abling partners to benefit from pre-emptive monitoring of the coastal cities, but also the less specialised skills and experience projects’ environmental and developed western regions. IFU of several employees in areas ethical status in order to identify will increase staffing in the such as governance, legislation, indications of possible problems, Beijing office and extend the net- language, financing and country- which the Fund and its partners work of local advisers, who have specific knowledge. can then join forces to address. special knowledge of project opportunities in western China. Focus on environment On behalf of the Board and Man- and ethics agement of IFU, we wish to New structure benefiting In 2001, IFU strengthened its thank all partners, staff and ad- the partners efforts to ensure a high level of visers for their dedication and With the aim of increasing effi- awareness on the environment, contribution to the achievements ciency and service towards the occupational health and safety of the year. partners and project companies, it and ethical standards in the pro- was decided in 2001 to abandon ject companies. IFU has only Copenhagen, February 21, 2002 the geographic organisational structure and establish 3 new departments divided by function, specialising in: Developing and establishing new projects; Managing established invest- ments e.g. by participating in Sven Riskær Johannes Poulsen board work; Managing Director Chairman Assisting projects in difficulties and exit from projects. The change in organisational

5 Investments contracted in 2001

IFU´S INVESTMENT (MILLION DKK) Expected employment New Projects Project Name Country Shares* Loans** Total (persons) 1 Caribersa Brazil 2.9 2.9 83 2 Danica Nordeste Brazil 1.2 1.2 24 3 Mærsk Centr. America Fac.*** Central America 63.0 63.0 4 CAC**** Chile 2 5 Kirk Accoustics (Suzhou) Co. China 26.5 26.5 100 6 Beijing Sunpu El. Appl. China 5.0 5.0 150 7 Qiahong New Materials Co. China 18.5 18.5 56 8 Shanghai Ovo Egg Prod. China 2.2 2.2 50 9 Tianjin FTZ TeamWork China China 2.8 2.8 24 10 Wenzhou Primotex China 8.5 8.5 60 11 Ako Waste Management Ghana 1.5 1.5 80 12 Carpo Ghana 1.2 1.2 40 13 Egmont Imagination India India 3.8 3.8 35 14 Infrastr & Tech Consultants India 0.2 0.2 80 15 Tellabs Software India 4.7 4.7 400 16 BWSC Lanka Sri Lanka 2.0 2.0 50 17 Roulunds Mexico Mexico 24.4 24.4 100 18 Pedregal Power Co. Panama 0.1 26.7 26.8 50 19 FLS Senegal Senegal 8.0 29.8 37.8 200 20 Time Out SA South Africa 1.0 1.0 20 21 K2 Group Uganda 1.0 1.0 40 22 Bodilsen Vietnam Vietnam 6.1 6.1 340 23 KMC Vietnam Vietnam 2.1 2.1 70 24 Ballantyne Butchery Zimbabwe 2.0 2.0 70 25 Colcom Zimbabwe 1.2 1.2 300 Total 87.3 159.1 246.4 2,424

Further financing of Project Name Country Shares* Loans** Total ongoing projects 26 KAFCO (Plant) Bangladesh 21.8 21.8 27 Cáceres Florestal Brazil 5.7 5.7 28 Frio Grande do Norte Brazil 5.1 5.1 29 Bestseller Fashion Group China 3.0 3.0 30 Schrøder Plast China 1.0 1.0 31 Shanghai Dansk China 7.5 7.5 32 Sinai White Portl. Cement Egypt 4.3 4.3 33 Kampsax India India 0.1 0.1 34 Pioneer Wincon Limited India 1.3 1.3 35 Rockwool Asia Malaysia 22.0 14.6 36.6 36 Prolac Mexico 0.6 0.6 37 Morsø Heating Centre South Africa 0.9 0.9 38 KÖY-TÜR Turkey 17.4 17.4 39 Verino Farms Zambia 0.5 0.5 Total 31.6 74.2 105.8

GRAND TOTAL 118.9 233.3 352.2

* incl. overrun commitments ** incl. guarantees *** framework agreement **** indirect investment

6 Scoring systems introduced

Protection of external Occupational health Social issues: environment: and safety: Based on 152 projects / year end

● Excellent ● Good ● Fair ● Poor ● Critical

Environment 107 were in the process of being equal remuneration for men and The first in-house environmental established or under termination, women, freedom of association, impact assessment of the projects or had no physical activities, such and the right to collective bar- co-financed by IFU and its sister as holding companies. Conse- gaining or whether alternative Funds showed a satisfactory result quently, the active projects num- consultative procedures exist. for 2001. bered 277. The review looks at whether the The broad review of the projects project company pays wages that confirms the results of a more Result meet or exceed the legal min- thorough and independent evalu- The evaluation showed that all 277 imum and whether its major sup- ation of the projects in India and projects except 5 obtained an ex- pliers comply with the basic rules Poland made the year before. ternal environmental impact score outlined above. The review also The scoring system is not an of "fair", "good" or "excellent". verifies that the project company evaluation, but a review that helps The Funds immediately looked operates in an accountable identify projects and areas where into the low scoring projects to manner in its business transac- special efforts towards improve- quantify the character of the prob- tions, i.e. that it prohibits the ments may be called for. lems. Three of the five projects making of illegal payments in scoring below "fair" have already order to obtain preferential treat- Method implemented changes or are ap- ment. The investment officers carry out plying changes in the right direc- As is the case with the environ- the study by entering factual infor- tion. The two remaining outcomes mental assessment, an element mation on a form for each of the were unsatisfactory more due to of subjectivity is also involved companies. Combined, these forms insufficient reporting than lack of when assessing social issues, provide the basis for a classifica- compliance with the required since the investment officers tion of the individual companies. standards. screen their "own" projects. The classification "fair" is the ac- However, the screening enhances ceptable starting point. To im- Social issues awareness of the above-mentioned prove its score, the company will During 2001, IFU and its sister issues, also within the project have to show clear indications of Funds introduced a similar clas- companies. It reflects IFU’s wish good performance in the areas of sification covering social issues to engage its partners in an on- external environment protection in the projects. going dialogue and a process of and occupational health and The social issues cover such ILO continuous improvement of safety. Core Conventions as protection working conditions. Only a small The three Funds had a portfolio of against child labour and forced number of assessments made in 384 projects in 2001. Of these, labour, non-discrimination and 2001 gave cause for intervention.

7 New types of partnership and investment

In 2001, IFU again invested in banks. Besides IFU, the other the company has invested in such large infrastructure projects and Danish company to invest cap- plants to an increasing degree. enabled Danish companies to par- ital is the privately owned com- Over 20 years it has built more ticipate in BOOT projects. pany B&W Scandinavian Con- than 130 power plants dis- Through participation in venture tractor (BWSC). tributed in 40 countries, in- capital funds in Africa, IFU has When AIF is fully capitalised, the cluding Sri Lanka, where IFU is a adjusted its activities over a Fund will manage more than USD co-investor. The company expects number of years to embrace 500 million. The Fund invests in that AIF will pave the way for pro- modern investment forms. all forms of infrastructure and fo- jects in Africa. In 2001, IFU joined the AIG cuses mainly on 14 countries, se- IFU expects other Danish compa- African Infrastructure Fund, lected on the basis of economic nies to establish activities in co- which is expected to pave the way factors. AIF is run by a company operation with AIF. By investing for Danish companies partici- owned by the largest investors of money in AIF and through its seat pating in BOOT projects in Africa. the Fund. The management pre- on AIF’s Advisory Board, IFU will sents investment proposals to the receive faster and better informa- African Infrastructure Fund Fund’s investment committee. The tion about projects under prepara- The recently established AIG owners of the Fund, including the tion and thereby be in a position African Infrastructure Fund Danish company BWSC, are mem- to make contact with potential (AIF) receives the main share of bers of the investment committee. Danish partners. IFU will be able its capital from the American to keep AIF informed about insurance company the Amer- BWSC Danish companies possessing ex- ican International Group (AIG), BWSC has specialized in design, pertise within the various areas. the World Bank Group, the Eu- construction, installation, opera- Besides IFU and BWSC, which ropean Investment Bank and tion and maintenance of espe- have small shareholdings, the national European development cially diesel power plants, and circle of shareholders includes a

BOOT defines projects, especially within infrastructure, where private capital manages:

● Building Asia Power, Sri Lanka ● Owning ● Operating the project for an agreed period of time ● Transferring the project to public authorities on terms agreed in advance

Over the years, the BOOT model has been adopted as a method of securing investments, not least in developing countries. The problem facing Danish companies has been that while they may have the know-how required within certain areas, they often lack the fi- nancial strength and organisational capacity to assume responsibility for major infrastructure projects. They share this problem with compa- nies all over the world. Only a few are big enough to take on BOOT pro- jects on their own. This is why venture capital funds are established to gather capital and know-how from many sources.

8 Nelson Mandela, Chairman of Advisory Council, African Infrastructure Fund and Morten Christiansen, Department Director, IFU

number of international compa- AIG African Infrastructure Fund’s countries of focus: nies and organisations, including the African Development Bank, North Africa Egypt · Morocco · Tunisia the AIG, the IFC (International Fi- West Africa Côte d’Ivoire · Ghana nance Corporation – the World East Africa Kenya · Tanzania · Uganda Bank Group), El Paso Energy, the Southern Africa Botswana · Mozambique · Namibia European Investment Bank, Rep. of South Africa · Zambia · Zimbabwe Swedfund and Finnfund.

Central America: Pedegral That Danish companies can actu- AIG African Infrastructure Fund’s list ally participate in projects fi- of projects, December 2001: nanced by a venture capital fund Mobile Systems International was demonstrated in Panama in Pan African Energy Corporation 2001. Here, together with BWSC, Pan African Communications Networks IFU signed an agreement con- All African Airways Corporation cerning a 50 megawatt power Africa Media Group plant. A number of companies, including BWSC, are to deliver equipment worth USD 36 million. In addition, BWSC has entered IFU’s investments in venture capital funds DKK million into an agreement concerning technical operation and mainte- ACACIA FUND, Kenya, 1997 13.3 nance of the plant for 14 years WEST AFRICA GROWTH FUND, Côte d’Ivoire, 1997 12.9 starting in 2002, when the plant AIG AFRICAN INFRASTRUCTURE FUND, 2001 8.6 starts operation.

Large US Company Examples of IFU’s investments in infrastructure projects The majority shareholder of the project company Pedegral Power SILVER POWER Sri Lanka Energy production 1985 Company S. de R.L. is Caribbean PECORSA Argentina Wind energy production Basin Power Fund Ltd. It is a and distribution 1993 newly established venture capital AILINCO Argentina Hazardous waste disposal 1994 fund that will primarily invest in MALE WATER AND Maldives Water desalination, power plants in Central America. SEWERAGE distribution and sanitation 1995 The project’s main initiator is El ASIA POWER Sri Lanka energy production and distribution 1997 Paso Energy International, which ENISA Nicaragua Wind energy production will be responsible for managing and distribution 1998 the company. El Paso Energy In- WEST AFRICA Nigeria Container terminal 2000 ternational is the fourth largest PEDEGRAL Panama Energy production 2001 power company in the US and has invested heavily in Europe and Central America. It also helps finance the AIG African Infra- structure Fund. 9 ▼ New office in New Delhi

Resident Representative Deepa Hingorani, ▼ Dep. Managing Director J. Dan Jensen and Danish Ambassador Michael Sternberg

A Bridge between India and Denmark

A new chapter in the Fund’s his- Icebreaker foreign investors in the region. Fur- tory began when IFU opened its Ms Hingorani is aware that she thermore, the country boasts a good regional office in New Delhi, needs to maintain the Danish per- infrastructure. IFU made its first in- India on the 8th September spective. She reads Danish newspa- vestment in Sri Lanka in 1982, and 2001. pers and keeps up to date with has since added another 11. The Fund has been represented Danish policy through daily contact in Chennai since 1997, but IFU with Danish partners. Bangladesh has never before had a regional Her knowledge of the Danish lan- So far, Bangladesh has not been a office with full project administra- guage is an advantage when she priority for Danish investors. The tion and without Danish manage- meets with company managers in situation has now changed, with ment. Denmark; it acts as an icebreaker the possibility of applying for grants Such an office has been under and creates trust. through Danish development aid preparation for several years. The Representing IFU and Asia at the (the Private Sector Development Resident Representative, Ms same time, Ms Hingorani personi- Programme) for initial company col- Deepa A. Hingorani, is well suited fies mutual understanding and ac- laboration. to act as a link between Asian ceptance. She can advise both par- and Danish business following her ties and make demands without Nepal graduation from the Scandinavian being perceived as biased. IFU has two active projects in International Management Insti- Nepal. Both projects were initiated tute and several years of working Most investments in India in the late 1980s. In the last in Denmark. Besides India, the office in New couple of years, Danish investors Delhi covers Bangladesh, the Mal- have not been interested in in- More tasks dives, Nepal and Sri Lanka. There vesting in Nepal, primarily due to From IFU’s point of view, the cre- is big potential for business co-op- political instability. Like ation of a regional office with eration within all five countries, and Bangladesh, Nepal is included local staff falls in line with the in- most of the ongoing projects are under the Private Sector Develop- stitution’s new structure. More performing well. ment Programme. tasks are placed with the regional Since the beginning of liberalisa- offices and with the advisers in tion in India well over 10 years ago, The Maldives the investment countries. It be- 51 projects have been established, The first project in the Maldives – comes even more vital to have a making India the country where an airline – was established in network with first-hand knowledge IFU has established most of its pro- 1992. As an offshoot, a hotel of the region. jects through the years. complex was established in 1999. With local staff, continuity and In addition, IFU participates in a the possibility of developing the Sri Lanka seawater desalination project pro- staff’s qualifications are in- When it comes to legislation, Sri viding fresh water to the capital’s creased. Lanka offers the best conditions for inhabitants.

10 Life from the Dead Sea

The availability in the world of systems, which are the most effi- available technology as seen from arable land is decreasing, while cient systems for the addition of an environmental point of view has the world population and the de- fertiliser and water. Waste and been selected. mand for food is expected to in- negative environmental effects However, because fuel oil in Jordan crease by 25 per cent over the will be reduced to a minimum. is of low quality, sulphur dioxide next 10–15 years. Increased out- emissions will exceed Danish put per hectare is needed, and Foreign Exchange earner norms. Due to the sensitive marine the Kemapco project in Jordan All raw materials except ammonia environment, no liquid discharge to will contribute to this in the will originate from Jordan. The most the Red Sea is allowed. Middle East and neighbouring important material, potash, will be regions. extracted from the Dead Sea. In September 2002, Kemapco When the plant is in full oper- (Kemira Arab Potash Company ation, it will become one of Ltd), in Jordan, will start produc- Jordan’s major foreign exchange tion of potassium nitrate (NOP), a earners and will employ 135 soluble fertiliser, and of dicalcium people. phosphate (DCP), a mineral feed. A full environmental impact as- The fertiliser will be of the kind sessment study has been per- that can be used in drip irrigation formed and adopted. The best

Technology transfer Kemira Denmark A/S transfers its ion-exchange technology, originally developed by Superfos Denmark, to Kemapco. Office buildings Financing Total investment: USD 107 million IFU share capital: DKK 2.6 million IFU project loan: DKK 43.1 million

Main Shareholders Kemira Denmark A/S: USD 18.6 million Arab Potash Company Ltd: USD 19.0 million

Other main investors Partners Finnfund: USD 6.25 million KEMIRA DENMARK A/S European Inv. Bank: EUR 30 million Kemira is a Finnish chemical Islamic Dev. Bank: USD 27 million industry group working world- wide; Kemira Denmark A/S is a subsidiary.

ARAB POTASH COMPANY LTD A pan-Arab company formed in 1956. It has the conces- sion from the government of Jordan to exploit the re- sources of the Dead Sea.

Construction site

11 They make learning fun

Celebration at Egmont Imagination

Education has the best effect Both companies employ more when it is not forced, but fun. than 40 people, and the compa- The educationists say so, and the nies also create jobs for agents Danish company Egmont has won and sales representatives. In a faithful audience all over the India, the total number of retail World by blending together edu- outlets being serviced is in ex- cation and entertainment (=edu- cess of 8,000. tainment). IFU has contributed with loans in two subsidiaries in Asia. Egmont The companies publish comics, story books and activity books for Scandinavia’s largest media group, established 1878. Owned by children up to the age of 14. the Egmont Foundation, working with the objective to raise funds A significant part of the produc- for charitable causes. Comprises more than 100 companies in 28 tion is based on Egmont’s Walt countries, including China, Hong Kong, India, Japan and Thai- Disney licence, but great em- land. Has rights to Walt Disney, Mattel, Phantom and Asterix, phasis is placed on developing among others. local characters and stories. The educational elements are built into the stories or are purely lan- guage-based, in that the same text is published in the local lan- Egmont Imagination (India) Limited guage as well as in English. IFU’s loan of DKK 3.6 million to Established 1997 with an assortment of five magazines. Today, the Egmont Imagination (India) Lim- assortment has been expanded to more than 250 titles. Further- ited was granted in 2001 with more, activity books, teaching material, books with audio tapes etc. the purpose of strengthening the are produced. Titles are printed in Indian printing houses using en- capital base of the existing sub- vironment-friendly paper. So far, there has been a 100% increase in sidiary. turnover per year. The project has received support from the Danida The company was established in Environment and Training Fund. September 1997 and is already the market leader for children’s books, having more than 20 per cent of the market share. With Nation Egmont Edutainment Ltd/Thailand the capital injection, the com- pany can continue to expand. Established as a joint venture in 1998. The Thai partner is The IFU granted a loan of DKK 18 Nation Multimedia Group, established 1971. Activities include million to Nation Egmont Edu- publishing, printing and broadcasting. At establishment, the joint tainment Ltd/Thailand in 1999. venture company took over the publishing of books and magazines The company was established the for children and young people. year before as a joint venture with Nation Multimedia Group Public Company Limited.

12 Financial Statements Auditor’s Report

We have audited the financial statements evaluated whether the administration of in the section ”accounting princip-les ap- (pages 13 to 17) prepared by the manage- IFU’s means has taken place with due plied” (pages 13 to 14). ment of The Industrialization Fund for De- care. We have also assessed the ac- veloping Countries (IFU) for the year ended counting principles used and significant Opinion December 31, 2001. estimates made by management, as well In our opinion, the financial statements as evaluated the overall financial state- are presented in accordance with the ac- The audit ments presentation. counting principles established for IFU The audit was planned and performed in Our audit has not resulted in any qualification. and the relevant Danish legal require- accordance with Danish governmental au- ments and present fairly the assets and diting practices and generally accepted au- Additional information liabilities, the financial position, the re- diting standards to obtain reasonable as- As a selfgoverning fund established by Act sults of operations and the cash flows for surance about whether the financial state- of Parliament, IFU is not subject to the the year. ments are free of material misstatements. provisions of the Danish Annual Accounts During our audit we have, based on an Act for limited liability companies. The audit was completed on evaluation of materiality and risk, exam- The accounting principles for IFU have February 21, 2002 ined the support and documentation for been established with the aim at reflec- ARTHUR ANDERSEN the amounts and other disclosures in the ting the activities of IFU in the most clear Torgny Pahle Morten S.Renge financial statements, and have furthermore and comprehensive manner and are shown State Authorized Public Accountants

Accounting Principles Applied

As a selfgoverning fund established by Share capital investments losses if and when they materialise, and Act of Parliament, The Industrialization Share capital investments in project com- the resulting difference between the Fund for Developing Countries (IFU) is panies are stated at the acquisition cost amount actually lost and the corre- not subject to the provisions of the expressed in DKK. sponding specific reserve against losses is Danish Annual Accounts Act for limited recorded in the profit and loss statement liability companies. Loans under provision for losses. The accounting principles for IFU have Loans in foreign currencies to project been established with the aim at re- companies are stated in DKK at the Syndicated capital flecting the activities of IFU in the rate of exchange prevailing at the date Syndicated capital is investment cap- most clear and comprehensive manner. of disbursement. Outstanding principal ital received from third parties and in- The main accounting principles applied related to disbursements made prior to vested in projects on their account and in the financial statements for the year January 1, 1996 are translated into risk. Syndicated capital only becomes ended December 31, 2001 for IFU are DKK at the rate of exchange prevailing due to the extent that IFU receives described below. The accounting prin- as of December 31, 1995. payments from these projects. Syndi- ciples are the same as for the previous cated capital in foreign currency is year. Reserves against losses translated into DKK similar to share Specific reserves against losses are pro- capital investments and loans invested Income from projects vided as a debit to the profit and loss directly by the Fund. Dividends are recorded at the rate of ex- statement based on an individual evalua- change prevailing at the date of declara- tion of IFU’s own risk for losses on each Receivables and debt in foreign currency tion. Interests received on loans to pro- and every project investment. For projects Receivables and debt in foreign cur- jects are recorded at the rates of ex- established within three years before the rency are translated into DKK at the change prevailing at the day of payment. balance sheet date, and where no spe- rates of exchange prevailing at the bal- Interests due for payment, but not col- cific reserve is provided, general reserves ance sheet date. Realised and unre- lected at the balance sheet date, are in- against losses are, depending on the host alised gains and losses on foreign ex- cluded directly in the balance sheet as country risk, provided at a rate of 15, 20 change are recorded in the profit and interest receivables and reserves against or 30 per cent for loans and 20, 30 or loss statement. losses. Interest receivables converted 35 per cent for share capital of the in- into loan principals or share capital in- vested amount. Realised losses on invest- Forward exchange contracts vestments are classified as collected. ments are debited against the reserves for IFU enters into forward exchange con-

13 ➜ Accounting Principles Applied continued

tracts to hedge future transactions con- lated to operating activities, incurred by method and shows the Fund’s cash flow cerning selected foreign currency loans IFU are divided at year end between from operating, investing and financing and receivables from sale of shares. IFU, IØ, MIØ and IFV according to an activities as well as the Fund’s cash po- The booked value of loans and activity dependent ratio. sition at the beginning and end of the receivables from sales of shares, which year. Consequently, the cash flow state- have been hedged, are adjusted to the Cash flow statement ment cannot be directly reconciled to rates of the forward exchange contract. The cash flow statement has been pre- the Profit and loss statement and Bal- The corresponding value adjustments pared in accordance with the direct ance sheet. are recognized in the profit and loss ac- count under provision for losses. PROFIT AND LOSS STATEMENT Equipment All purchases of equipment are charged to the profit and loss statement. NOTE 2001 2000 DKK 1,000 DKK 1,000 Cash and bonds The major part of IFU’s liquid capital is Dividends from projects, net 27,159 31,800 invested in a mutual investment fund Interest income and fees related to projects 60,736 47,780 set up by the law on special mutual in- Income from sale of shares in projects 135 54,522 vestment funds No. 476 of June 10, Income related to projects 88,030 134,102 1997. The mutual fund, established in collaboration with The Investment Fund Provision for losses (82,443) (140,909) for Central and Eastern Europe (IØ), Other expenses related to projects (8,989) (4,508) The Environmental Investment Facility for Central and Eastern Europe (MIØ) GROSS CONTRIBUTION FROM PROJECTS (3,402) (11,315) and The Investment Fund for Emerging Markets (IFV) as the only other in- 1/ Operating expenses, net (34,029) (32,170) vestors, can according to its investment policy, as approved by the funds, only OPERATING INCOME (LOSS) (37,431) (43,485) invest in publicly traded bonds issued in DKK or EUR. 2/ Financial income, net 48,944 58,391 The stated amounts of cash and bonds reflect IFU’s clearly defined (pro rata) NET INCOME FOR THE YEAR 11,513 14,906 share of the underlying bonds and cash The net income for the year has been transferred to the equity capital. in the mutual fond. The Bonds in the mutual fund are stated at the official prices quoted on the balance sheet date AN OVERALL VIEW except for called bonds stated at par value. Realised and unrealised gains and losses on bonds are recorded in the The Last Five Years 2001 2000 1999 1998 1997 profit and loss statement. Operations: New projects (no.) 25 22 24 27 28 Cash and bonds allocated to projects Portfolio of projects (no.) 212 207 206 213 203 Cash and bonds which on the balance Total project participation sheet date are allocated for investments (DKK million) 2,419.6 2,386.3 2,158.4 1,777.9 1,809.9 are shown as a part of the project assets and not as cash and bonds at disposal. Finances (DKK million) Income from projects, net 79.0 129.6 106.8 40.5 44.5 Operating expenses, net Provision for losses (82.4) (140.9) (82.9) (71.4) (105.7) The administration and accounting of Operating expenses, net (34.0) (32.2) (31.1) (33.0) (31.4) all together four funds/facilities are Financial income, net 48.9 58.4 22.6 43.6 37.1 managed by IFU. At present this in- Net income (loss) for the year 11.5 14.9 15.4 (20.3) (55.5) cludes IFU, IØ, MIØ and IFV. The total operating expenses, net of income re- Equity capital 1,872.3 1,860.7 1,695.8 1,530.4 1,400.8

14 BALANCE SHEET · December 31, 2001

NOTE 2001 2000 DKK 1,000 DKK 1,000

ASSETS PROJECT ASSETS Share capital investment in projects 1,095,980 1,041,126 Project loans 742,605 836,953 3/ Cash and bonds allocated to projects 539,003 467,480 Total project assets 2,377,588 2,345,559

OTHER ASSETS Interest receivable related to projects 41,993 40,735 Other receivables 34,793 42,473 4/ Cash and bonds at disposal 427,966 364,114 Total other assets 504,752 447,322

TOTAL ASSETS 2,882,340 2,792,881

LIABILITIES AND EQUITY CAPITAL EQUITY CAPITAL Paid-in capital beginning of year 1,050,936 900,936 Paid-in capital received during the year 0 150,000 Accumulated reserves beginning of year 809,806 794,900 Net income for the year 11,513 14,906 Total equity capital 1,872,255 1,860,742

RESERVES AGAINST LOSSES 904,081 798,953 5/ SYNDICATED CAPITAL 79,345 111,454 LONG-TERM DEBT 12,418 0 CURRENT LIABILITIES 14,241 21,732 Total liabilities and reserves against losses 1,010,085 932,139

TOTAL LIABILITIES AND EQUITY CAPITAL 2,882,340 2,792,881

6/ AVAILABLE EQUITY CAPITAL AND CLEARANCES IN PRINCIPLE 7/ LEASE AND RENTAL COMMITMENTS 8/ DEPOSITED PLEDGES BONDS

Approved at the Board Meeting February 21, 2002. Management: Sven Riskær J. Dan Jensen Frank Norman Larsen (Managing Director) (Deputy Man. Director) (Deputy Man. Director)

Board of Directors: Johannes Poulsen Agnete Raaschou-Nielsen (Chairman) (Deputy Chairman)

Lars Andersen Sigurd Ø. Andersen Elsebeth Budolfsen Lars Kolte Kjeld Ranum Michael Rasmussen Carsten Staur Karen Wermuth

15 CASH FLOW STATEMENT

NOTE 2001 2000 DKK 1,000 DKK 1,000 CASH FLOW FROM OPERATING ACTIVITIES Dividends from projects received 27,931 30,660 Interest from projects received 60,575 42,741 Other project related payments (2,077) (5,241) Operating expenses, paid (35,265) (34,666) Financial income, net 48,944 58,391 Net cash from operating activities 100,108 91,885

CASH FLOW FROM (TO) INVESTING ACTIVITIES Received from sale of shares 10,508 202,100 Received from project loans 210,450 97,815 Paid-in share capital in projects (72,628) (151,668) Disbursement of project loans (87,942) (326,891) Net cash from (to) investing activities 60,388 (178,644)

CASH FLOW FROM (TO) FINANCING ACTIVITIES Proceeds from syndications related to projects 8,905 3,021 Repayment of syndications related to projects (46,444) (18,493) Refinancing from EIB (ECFI III Facility) 12,418 0 Paid-in capital received during the year 0 150,000 Net cash from (to) financing activities (25,121) 134,528

NET CHANGE IN CASH AND BONDS 135,375 47,769

CASH AND BONDS BEGINNING OF YEAR 831,594 783,825

4/ CASH AND BONDS END OF YEAR 966,969 831,594

4/ Of these cash and bonds at disposal 427,966 364,114

NOTES

1/ Operating expenses, net Total expenses 68,445 65,265 Total income (2,559) (2,603)

Total operating expenses, net 65,886 62,662

Operating expenses, net charged to IØ (24,051) (23,609) Operating expenses, net charged to MIØ (5,881) (5,513) Operating expenses, net charged to IFV (1,925) (1,370) IFU's part of operating expenses, net 34,029 32,170

Specification of personnel expenses (salaries etc.) Salaries, remunerations etc. 33,789 32,194 Pension contributions 3,115 2,893 Other expenses for social security 104 101 Personnel expenses in total 37,008 35,188

Total remuneration to the board of directors and management 4,328 4,198

16 ➜ Notes continued

NOTE 2001 2000 DKK 1,000 DKK 1,000 Average number of employees, Head office 60 62 Average number of employees, Regional offices 18 18 Average number of employees in total 78 80

2/ Financial income, net The financial income, net is composed of the following items: Interest income, cash and bonds 48,066 49,585 Gain (loss) on bonds 4,565 3,639 Interest expenses, bank charges and exchange rate adjustments (3,687) 5,167 Financial income, net 48,944 58,391

3/ Cash and bonds allocated to projects Cash and bonds at an amount equivalent to undisbursed contractual commitments allo- cated for investments are shown on the balance sheet as part of the project assets. Amounts payable on project agreements 252,793 209,594 Guarantees 30,817 18,658 Binding commitments 255,393 239,228 Cash and bonds allocated to projects 539,003 467,480

4/ Cash and bonds at disposal Bonds 747,259 673,329 Interest receivables 16,419 18,446 Cash 203,291 139,819 Cash and bonds end of year 966,969 831,594 Transferred to cash and bonds allocated to projects (539,003) (467,480) Cash and bonds at disposal 427,966 364,114

5/ Syndicated capital Syndicated capital is investment capital received from third parties and invested in projects on their account and risk. Syndicated capital only becomes due to the extent that IFU receives payments from these projects. European Community Investment Partners (ECIP) 40,869 47,012 European Investment Bank (EIB) 3,772 3,898 Corporate investors 34,704 60,544 Syndicated capital in total 79,345 111,454

6/ Available equity capital and clearances in principle The available equity capital is arrived at as follows: Total equity capital 1,872,255 1,860,742 Reserves against losses 904,081 798,953 Syndicated capital 79,345 111,454 Project participation (2,419,581) (2,386,294) Available equity capital 436,100 384,855

Clearances in principle for new projects amount to 139,260 313,100

7/ Lease and rental commitments The total lease and rental commitments amount to DKK 3.4 million (DKK 3.2 million in 2000) - hereof due within the following year DKK 2.8 million (DKK 2.9 million in 2000)

8/ Deposited pledged bonds IFU has pledged Danish State Bonds amount to DKK 13.6 million as security for long term debt to EIB. 17 Investment Portfolio as at December 31, 2001

Activity/product Danish Partner(s) IFU Participation Total Investment Employment Period Shares Loans (DKK million) (Persons) (DKK million) (DKK million) AFRICA: 139 projects in total Regional: 3 projects African Infrastruc. Fund Infrastructure projects B&W Scandinavian Contractor 8.6 3,414.3 30 2000- AMSCO Management services Carl Bro Gruppen/Globe 3.7 50.0 7 1989- Mærsk Africa Facility Transport related projects Mærsk 50.0 100.0 500 1999- Total: 12.3 50.0 3,564.3 537

Algeria: 3 projects Aldaph Pharmaceuticals Novo Nordisk 11.4 34.1 359.9 240 2000- Altec Engineering Haldor Topsøe 0.6 3.0 50 1971-1977 Cosider Construction Christiani & Nielsen 3.3 14.0 550 1978-1981 Total: 15.3 34.1 376.9 840

Angola: 1 project Nova Cimangola Cement FLS-Industries 50.5 625.6 1.000 1996- Total: 50.5 625.6 1.000

Benin: 3 projects Cimbenin Cement Fibo 8.6 6.9 105.0 170 1991- Fan Milk Dairy Fan Milk International 0.4 1.0 12 1992-1996 Fan Milk Distribution of dairy products Fan Milk International 1.7 4.2 55 1999- Total: 9.0 8.6 110.2 237

Burkina Faso: 1 project Fan Milk Dairy Fan Milk International 0.7 2.5 22 1997- Total: 0.7 2.5 22

Burundi: 1 project Avicom Poultry farming DPD 1.0 1.2 4.0 40 1989-1996 Total: 1.0 1.2 4.0 40

Cameroon: 4 projects Camsavon Chemical industry Sønderstrup Sæbefabrik 0.0 1.0 40 1986-1988 Camtainer Land transport Scancatrans 3.1 6.7 35.0 100 1984-1995 Cocadac Construction E. Pihl & Søn 2.8 3.0 10.0 300 1976-1982 NOBRA Brewery Cerekem 17.8 25.6 412.0 15 1986-1995 Total: 23.7 35.4 458.0 455

Cape Verde: 1 project Ceris Brewery Bryggerigruppen 4.2 15.6 63.0 90 1985-2001 Total: 4.2 15.6 63.0 90

Central African Rep.: 1 project SOGESCA Sugar refinery Danisco/ Niro 26.6 320.0 350 1985-1996 Total: 26.6 320.0 350

Cote d'Ivoire: 7 projects CITB Wood products Danish Wood Treating 0.3 1.0 4.0 15 1983-1984 Fan Milk Ice cream Fan Milk International 0.7 6.9 20 1993-1995 Sadofoss Chemical industry Sadolin Nobel 5.3 9.3 32.0 58 1976-1995 SAM Furniture E. Roth Oversøisk Hårdtræ 0.5 1.1 15.0 25 1970-1999 Sedan Construction Helsingør Værft 5.0 4.8 42.0 350 1976-1982 Sitransbois Wood products Nordisk Trælast 16.8 12.6 83.0 600 1977- West Africa Growth Fund Financial institution No Danish partner 12.9 130.0 6 1997- # Total: 41.5 28.7 312.9 1.074

Democratic Rep. Congo: 2 projects Danilait Powdered milk packing Scancool International 1.4 0.4 6.0 25 1987-1997 Dilaz Dairy Primodan Food Machinery 0.9 10.0 25 1987-1988 Total: 2.3 0.4 16.0 50

Egypt: 9 projects CLFF Research and development No Danish partner 2.1 3.0 40 1982-1996 Dantex Clothing Brandtex 4.3 8.0 35.0 200 1984-1991 Egypac Pulp and paper products Buhl Automation 2.3 9.2 30.0 30 1976-1986 El Rayan Danfarm Dairy farm Danfarm Contractors 20.5 435.0 350 1987-1988 EPL Research and development Danish Protein Institute 1.1 2.0 15 1980-1982 Hotel Marina Hotels and restaurants Helnan Hotels 7.4 16.6 220 1992-2000 RadissonSAS Quseir Resort Hotel operation SAS Hotels 21.5 168.2 300 2000- Sinai Cement Co. Cement production Aalborg Portland 39.6 1,501.0 700 2000- Sinai White Portl. Cement Cement plant Aalborg Portland 41.8 31.8 639.9 400 1999- Total: 132.1 57.6 2,830.7 2.255

Ethiopia: 1 project Muus Feed mill Elias B. Muus 0.5 0.9 3.0 25 1972-1975 Total: 0.5 0.9 3.0 25

Ghana: 10 projects Ako Waste Management Waste Collection Hvidtved Larsen 1.5 8.6 80 2001-

18 Activity/product Danish Partner(s) IFU Participation Total Investment Employment Period Shares Loans (DKK million) (Persons) (DKK million) (DKK million) Carpo Production of wood products Scandi Wood 1.2 7.0 40 2001- Danafco Pharmaceuticals Propharma 1.9 17.6 100 1998- Fan Milk Dairy Fan Milk International 2.9 15.4 19.0 110 1989- Ghana Emulsion Cold emulsion Phønix Contractors 3.8 1.2 27.0 50 1995- Muk Air Air transport Muk Air 2.0 10.5 30 1997- * Northsax Kiln Company Wood products Dalhoff Larsen & Hornemann 0.6 6.0 4 1997- Pako Bay Fishing Brdr. Kristensen 0.2 3.7 60 1997-1998 Scanbech Ghana Production of plastic bottles Scanbech 1.3 1.0 6.5 80 1998- Volta Arkil Quarry Ove Arkil 2.1 2.5 9.0 30 1991-1999 Total: 15.8 21.7 114.9 584

Kenya: 5 projects Acacia Fund Financial institution No Danish partner 0.1 13.2 140.0 7 1997- DCK-EA Agriculture and farming DCK Production 0.8 0.8 1 1970-1978 DCK-Production Agriculture and farming DCK Production 3.9 4.0 34.0 5.000 1970-1978 Muus Feed mill Elias B. Muus 0.7 1.3 3.0 35 1972-1980 Vestergaard-Frandsen Textiles K. Vestergaard Frandsen 1.3 5.0 8.2 10 1995- Total: 6.8 24.2 185.2 5.053

Lesotho: 1 project Tantina Milling Flour milling ABC Hansen 0.3 4.9 27 1999-2000 Total: 0.3 4.9 27

Malawi: 1 project Scandrill Water supply Intertec Contracting 1.2 13.2 13.2 30 1986- Total: 1.2 13.2 13.2 30

Mali: 1 project Somapil Batteries Alkaline Batteries 1.8 4.8 34.0 260 1984-1995 Total: 1.8 4.8 34.0 260

Morocco: 4 projects Comapral Dairy O.G. Hoyer 8.7 25.4 95.0 30 1986-1997 Cool Time Trade O.G. Hoyer 0.0 110.0 1 1990-1998 Ettamam Feed mill Schmidt & Jessen 1.5 19.0 50 1981-1986 York Refrigeration Morocco Service company York Refrigeration 0.4 1.4 10 1993- Total: 10.5 25.4 225.4 91

Mozambique: 2 projects Frigo Services Machinery and equipment York Refrigeration 0.4 2.0 25 1989-2001 Motorcare Sale and service of cars Kjær Group 3.7 6.7 32.9 12 1999- Total: 4.1 6.7 34.9 37

Nigeria: 15 projects Adegbemile Flour mill United Milling Systems 1.1 0.2 25.0 40 1985-1998 BARC Agriculture and farming Bryggerigruppen 440.0 950 1982- DEMCO Construction Bryggerigruppen 52.0 57 1988- Fan Milk Yoghurt and ice lollies Fan Milk International 16.0 6.5 73.8 2.200 1999- Fertile Acres Agriculture and farming Cerekem 2.5 2.9 23.0 100 1984-1996 Grundfos Pumps Machinery and equipment Grundfos 1.3 20.0 60 1983-1986 JIB Brewery Bryggerigruppen 55.5 0.3 416.0 1.400 1977- Nwankwu & Rasch Construction NTR Holding 1.0 4.0 65 1976-1979 Peacock Paints Paints Dyrup 4.5 9.7 101.0 64 1979-1999 Pioneer Milling Milling plant Bryggerigruppen 52.0 90 1986- Plateau Bottling Soft drinks Bryggerigruppen 4.2 100.0 120 1981-1999 Sunrise Bottling Soft drinks Cerekem 8.2 104.0 120 1983-1988 Tiger Battery Batteries Alkaline Batteries 4.4 38.2 144.0 150 1983-1997 W.Africa Container Term. Container terminal Mærsk 25.4 50.5 25 2000- W.African Portland Cement Production of cement F.L. Smidth 35.4 1,093.2 550 1999-2000 Total: 98.5 118.7 2,698.5 5.991

Rwanda: 1 project Sorwapiles Batteries Alkaline Batteries 4.0 47.0 100 1985-1989 Total: 4.0 47.0 100

Senegal: 5 projects African Seafood Fishing/processing P.F. Faromar 10.5 26.5 129.0 90 1984-1999 FLS Senegal Production of cement F.L. Smidth 8.0 29.8 759.4 200 2001- Rutec Service company Atlas-DK 0.1 1.0 20 1980-1983 Senegal Seafood Fishing/fish processing P.F. Faromar 2.0 30.0 250 1982-1985 SOCA Agriculture and farming APV Pasilac 3.4 13.0 48.0 75 1987-1996 Total: 22.0 71.3 967.4 635

South Africa: 17 projects Benzak Beverages Distribution of malt drinks Bryggerigruppen 1.0 2.7 20 1999- Credin Bakery Supplies Food ingredients Palsgaard Industri 0.7 2.7 9.8 70 1998- Danafrica Flour Mills Food and beverages Kongskilde Industries 0.1 1.0 50 1997-1999 Dan-Essence Detergents & soap Sønderstrup Sæbefabrik 1.2 3.8 54 1997-2001

19 Activity/product Danish Partner(s) IFU Participation Total Investment Employment Period Shares Loans (DKK million) (Persons) (DKK million) (DKK million) Danforge Engineering Machinery and equipment Brdr. Jørgensen 0.5 0.4 2.6 25 1997- Kristensen Oceanfront Restaurants Kristensen Group 8.5 13.9 45.4 270 1998- Morsø Heating Centre Production of heating products Morsø Jernstøberi 2.3 2.3 7.0 8 2000- New Africa Signs & Graph. Signs and posters Sign-Tronic 0.0 0.8 3.4 12 1996-2001 Newave Technology Prepress print Dokmand 1.0 7.8 12 1998- Nielsen Tap Water taps Toni Armatur 0.3 0.2 1.0 30 1995-1999 Princeton Computing Education Courseware Scandinavia 0.2 1.3 30 1996-1999 Resource Dev. Consultants Consultancy Carl Bro Gruppen 0.8 1.5 4.5 20 1995-2000 Sibaya Conservation Proj. Hotels and restaurants Hotel Pakhuset/Claus Søgaard 0.4 0.3 5.5 20 1998- Stoneground Mills Manufacturing of mills ABC Hansen 0.9 2.7 15 1999- Time Out SA Branded sportswear Time Out 1.0 2.9 20 2001- Today's Signs & Graphics Production of signs Ladelund Skilte 0.2 1.1 7 1999- Umtha Manufacturing Production of sports articles Time Out 0.7 3.1 80 2000-2001 Total: 13.9 28.1 105.7 743

Sudan: 2 projects SFI Dry yeast Danisco Bioteknologi 5.5 8.3 35.0 60 1977-1987 SMS Milling Flour mill United Milling Systems 0.4 1.2 6.0 15 1981-1990 Total: 5.9 9.5 41.0 75

Swaziland: 2 projects KGR Enterprises Rehab. of railwagons Giersing Rose 2.7 17.9 45 1993- * United Plantations Africa Plantations IPF 17.3 88.5 750 1999- # Total: 17.3 2.7 106.4 795

Tanzania: 6 projects DAHACO Airport handling SAS 1.4 8.1 33.0 400 1984- Den-Tan Resources Fishing Pre-Consult 2.0 15.0 60 1992-1997 Mashado Game Fish. Lodge Hotels and restaurants Skanska Jensen 5.9 5.1 69.3 160 1994- * Mount Meru Hotels and restaurants Tanzania Hotel Investment 1.7 4.0 40.0 300 1974-1995 RSP Transport Water transport Danea 1.2 6.4 15 1994- Tanruss Hotels and restaurants Skanska Jensen 15.4 69.3 414.2 350 1993- Total: 24.4 89.7 577.9 1.285

Togo: 9 projects Africotière Water transport Mortensen & Lange 0.1 1.0 35 1989-1992 Atlantic Produce Agriculture and farming Tropical Plants Agencies 2.0 3.3 11.0 100 1991- Cerekem Exotic Agriculture and farming Cerekem 3.1 7.8 34.0 170 1986-1995 Fan Milk Dairy Fan Milk International 2.1 3.6 10.0 68 1985-1996 ITP Rubber and plastic products Nordisk Wavin 6.7 15.1 63.0 82 1980- La Gazelle Land transport Erik Conradsen 1.3 9.3 80 1991-1993 Soprolait Dairy APV Pasilac 0.7 2.0 25.0 40 1980-1996 Sotodas Chemical industry DK Kemi International 4.9 11.5 22.0 41 1985-1996 STS Fabricated metal products Rambøll 1.2 3.6 14.0 250 1987-1997 Total: 22.1 46.9 189.3 866

Tunisia: 1 project TDC Clothing D.T.C. Company 0.9 5.5 5 1992-1994 Total: 0.9 5.5 5

Uganda: 8 projects Drillcon Drilling of bore holes Victoria Pumps 1.3 5.7 45 1998- K2 Group Management and IT consultancy K2-Consult 1.0 3.2 40 2001- MTN Publicom Pay phones Ascom Nordic 19.4 33.6 26 Maersk Uganda Operation of container depot Mærsk 9.3 18.5 10 2000- Motorcare Uganda Sale/maintenance of vehicles Kjær Group 3.2 8.8 44.5 60 1998- Victoria Engineering Manufacturing of pumps Knebel Drilling 3.0 10.156 Victoria Fresh Food Fishing/fish processing Brødrene Gram 1.1 3.0 12.0 60 1988-1998 Victoria Pumps Mechanical engineering Knebel Drilling 2.3 3.0 16.0 50 1988- Total: 9.3 48.9 143.6 347

Zambia: 2 projects Milden Milling Maize milling United Milling Systems 5.0 60.0 200 1994-1995 Verino Farms Broilers/dressed chickens Springkildegaard 2.4 12.2 120 1998- Total: 5.0 2.4 72.2 320

Zimbabwe: 10 projects Ballantyne Butchery Meat processing No Danish partner 2.0 8.3 70 2001- Colcom Meat processing No Danish partner 1.2 63.9 300 2001- Danmeats Meat processing Pfeiffer/et.al 1.0 3.4 5.5 50 1995- Dansafe Reflection textile Oppenhejm & Jansson 0.3 0.2 2.0 10 1995-1999 Frese Plumbing equipment Frese Armatur 2.5 6.0 34.0 50 1996- Imperial Refrigerators and coolers Derby 18.8 33.5 90 1993- Metafold Investments Coolers and freezers No Danish partner 5.5 67.0 175 2000- Powervision Energy production/distribution IRD 0.5 0.2 2.5 70 1997- # Ref-Air-Engineering Machinery and equipment Danish Refrigeration 0.6 1.8 2.4 25 1992- Scan-Lock Plastic floor tiles I.P.E. Danmark 0.4 2.3 20 1994-1999 Total: 32.8 11.6 221.4 860

TOTAL FOR: AFRICA 537.9 836.3 14,475.3 25.079

20 Activity/product Danish Partner(s) IFU Participation Total Investment Employment Period Shares Loans (DKK million) (Persons) (DKK million) (DKK million) ASIA: 201 projects in total Bangladesh: 4 projects Dandy Chewing gum Dandy 1.0 28.0 80 1991-1992 KAFCO (Plant) Fertilizers Haldor Topsøe 35.1 43.1 2,500.0 800 1990- KAFCO (Prom) Fertilizers Haldor Topsøe 0.6 7.0 8 1987-1990 Wavin PVC pipes Nordisk Wavin 3.0 60.0 134 1986-1987 Total: 39.8 43.1 2,595.0 1.022

Cambodia: 1 project Dumex Chemical industry Dumex 1.0 2.0 6.0 100 1971-1976 Total: 1.0 2.0 6.0 100

China: 45 projects Baihua Publishing and printing No Danish partner 18.0 62.5 160 1992- Bestseller Fashion Group Clothing Bestseller Wholesale 3.9 3.0 16.2 70 1997- # Chinaust Changchun Automobile parts Codan Gummi 2.6 15 1993-1994 Chinaust Plastics PVC pipes Codan Gummi 1.3 5.5 20.0 90 1987-1994 Chinaust Shanghai Automobile parts Codan Gummi 6.5 25 1993-1994 Codan Ling Yun Rubber hoses Codan Gummi 7.5 4.4 42.2 55 1994- Coloplast Rubber and plastic products Coloplast 22.4 46.7 100 1995- # Dalian Xinshiji Publishing and printing No Danish partner 16.0 40.0 150 1994- Danagraf China Electrical machinery/equip. Danagraf 0.4 1.0 10 1997-2001 # Danavox Xiamen Hearing aids GN Danavox 6.2 2.3 18.0 125 1989-1999 Danfoss Medical/precision instruments Danfoss 28.6 172.0 60 1995- Danhua Consultancy Kampsax/Vejdirektoratet 0.8 3.0 8 1993- * Danisco (China) Food ingredients Danisco Ingredients 6.0 147.4 90 1997- East Lake Villas Real estate activities EAC (Hong Kong) 3.5 41.9 210.0 380 1987-1997 Green Environment Consultancy Cowi/Rambøll 0.4 1.2 3 1995-1997 Huhhot Hua Ou Starch Starch products Kartoffelmelcentralen 8.2 42.0 100 1996- Hydro-X Chemical industry Hydro-X 0.7 0.6 2.8 12 1995- Impact Furniture Production of sofas Eilersen 0.6 2.0 25 1999-2001 # Innovation Production of sofa sets Innovation Randers 1.9 5.0 20 1998-2000 International Nutrition Co. Food and beverages EAC (Hong Kong) 41.0 6.3 115.0 180 1992-2000 # Jacob Holm Chemical industry Jacob Holm & Sønner 20.8 221.0 90 1995- Kirk Accoustics (Suzhou) Co. Electronic equipment Kirk Accoustics 26.5 150.0 100 2001- # Beijing Sunpu El. Appl. Production of water heaters Metro Therm 5.0 104.5 150 2001- # Mærsk Container Production of ship containers Mærsk Container 13.9 317.0 600 1999- Ningbo Zhedong PVC windows Plastmo 2.9 13.0 60 1996-2000 # Novozymes (China) Pharmaceuticals Novozymes 54.1 1,160.0 360 1995- Primo Kunming Plastic (PVC) windows Primo Danmark 0.7 2.5 20 1999- # Qiahong New Materials Co. Sanitary fibre products Dan-Webforming 18.5 157.0 56 2001- # Schrøder Plast Production of plastic products Schrøder Plast 4.0 18.9 12 2000- # Shanghai Dansk Textiles Dansk Transfertryk 12.4 14.6 40.0 30 1995- # Shanghai Ovo Egg Prod. Egg powder production Ovotec International 2.2 1.5 50 2001- # Shanghai Shenlian Roulunds Rubber and plastic products Roulunds Fabriker 3.4 22.2 80 1996- Shanghai Trayton Trading Sale of polstered furniture Trayton Møbler 1.0 5.7 116 2000-2000 # SIDIC Consulting engineers Dangroup International 1.1 0.2 3.0 4 1987-1999 Silcon Electrical machinery/equipment Silcon 2.5 0.8 17.0 80 1995-1999 Smekru Consulting engineers Krüger 0.4 5.0 6 1988-2001 Tianjin FTZ TeamWork China Office furniture and consult. System B8 møbler 2.8 11.7 24 2001- # Ting Fung Starch Starch products Kartoffelmelcentralen 10.9 85.0 30 1996- Trayton Furniture Production/sale of furniture Trayton Møbler 4.0 12.0 186 2000-2000 # Unicon-Dalian Ready-mix concrete Unicon Beton 3.3 25.0 50 1995-1999 Wenzhou Primotex Production of buttons Moria Industri 8.5 22.2 60 2001- # Wolfking Tianjin Co. Machinery and equipment Wolfking Danmark 2.0 9.0 35 1997-2000 Yan-Dan Consultancy Dangroup International 0.8 4 1995-1999 Zhejiang ACO PVC windows Plastmo 2.1 9.0 60 1996- # Zi Dan Publishing and printing No Danish partner 17.6 177.0 150 1996- Total: 369.2 98.4 3,546.2 4.091

India: 51 projects Akay Flavours Chemical industry Chr. Hansen 16.7 44.2 80 1996- Ambuja Cement Rajasthan Cement FLS-Industries 8.8 843.0 300 1994- Arcodan Communication equipment Arcodan 2.4 10.0 65 1994-1998 Asian Can Fabricated metal products Rexam Holding 3.0 17.0 175 1989-1990 Asian Closures Fabricated metal products Rexam Holding 2.3 13.0 50 1989-1990 CG Maersk Data EDP software Mærsk Data 4.2 16.2 450 1996- Coduras Exports Food and beverages Atlas-Stord 5.7 30.0 150 1993- * Convoy India Designing of ships Logimatic Software 0.5 3.1 6 1999- CRIIL EDP software Computer Resources Int. 5.0 14.0 60 1991- * D&H Secheron Migatronic Production of welding equip. Migatronic 1.4 8.0 31 2000- Dane Foods Butter cookies Kelsen Bakery 0.2 0.3 5 1995-2000 Dania Food Food additives Palsgaard Industri 2.5 9.0 40 1991-2000 DDE-ORG Office machinery/computers Dansk Data Elektronik 2.6 24.6 565 1993- DENIN Foods Extruded snack pellets Finn Lange 3.6 18.9 50 2000-2001 Egmont Imagination India Publication of comic books Egmont 3.8 15.6 35 2001- Energy Solutions Int. IT equipment Energy Solutions International 1.6 4.3 30 1998- Engsko Kristone Mill stones Engsko 0.4 1.2 40 1995- Fibcom Electrical machinery/equipment Tellabs Denmark 6.2 17.7 50.4 74 1994- Fowler Westrup Machinery and equipment Westrup 3.1 2.6 17.4 85 1999- Fuller India Design/equip. f/cement plants Fuller 4.4 14.0 225 2000- Garware-Utzon Textiles N.P. Utzon 1.5 6.0 20 1995-1998 Global Wool Alliance Textiles Bloch & Behrens 13.7 58.9 99.3 360 1994- Grundfos Pumps India Assembly/production of pumps Grundfos 2.1 40.5 30 1998-

21 Activity/product Danish Partner(s) IFU Participation Total Investment Employment Period Shares Loans (DKK million) (Persons) (DKK million) (DKK million) Gujarat Sidhee Cement Cement FLS-Industries 13.2 175.0 400 1994- Indo-Dan Lampshades Furniture Erik Frederiksen Production 0.7 4.3 85 1997- IndoDane Textiles Textiles K. Vestergaard Frandsen 0.9 7.0 94 1994- Infrastr & Tech Consultants Consultancy and management Kampsax 0.2 6.8 80 2001- IRON Maxflow Machinery and equipment Maskinfabriken Iron 4.6 15.2 60 1995-2001 Kampsax India Consultancy Kampsax 1.5 11.3 20 1994- L&T-Ramboll Consultancy Rambøll 2.0 6.5 25 1997- LEC India Software EDP software Lec 1.9 9.0 50 1994-2000 LICindia Engineering Energy Solutions International 0.6 1.8 20 1995-1998 LK India Electrical equipment LK 1.9 6.7 12.1 200 1998- LM Glasfiber Non-metallic mineral products LM Glasfiber 12.0 31.0 130 1993- Marinplast Boat yard PF Marin Plast 0.5 0.9 5.0 40 1984-1988 Mather Derby Machinery and equipment Derby 13.9 135.0 180 1991-1993 MD-JK India Textiles Julius Koch International 0.4 2.5 40 1994-1998 Pedershaab-ACME Machinery and equipment Pedershaab 0.7 4.7 30 1998- Pioneer Wincon Limited Electrical machinery/equipment Wincon West Wind 3.9 1.9 15.8 75 1996- Prism Cement Cement FLS-Industries 31.3 1,087.0 600 1993- Procon EDP software Pro:Con 0.6 1.8 3.0 14 1996- Roulunds Codan Rubber and plastic products Roulunds Fabriker 4.5 17.5 275 1992- Roulunds Friction Brake pads & linings Roulunds Fabriker 3.0 22.2 123 1996- Roulunds Hoses Production of rubber hoses Roulunds Fabriker 4.2 6.1 50 1999- Sabroe India Machinery and equipment York Refrigeration 0.9 4.2 75 1992-1999 Saurashtra Cement Cement FLS-Industries 50.5 780.0 300 1996- Sividan Chemical industry Binadan 2.0 14.2 25 1996-1998 Taparia Exports Food and beverages Quality Pellets 0.6 5.9 35 1996-1998 Tellabs Software Production of software Tellabs Denmark 4.7 9.6 400 2001- TTK Mærsk Medical Medical/precision instruments Maersk Medical 15.2 57.0 300 1996- Venkateshwara Hatcheries Food processing Ovotec International 1.6 74.0 300 1994- Total: 256.7 107.0 3,823.7 6.952

Indonesia: 6 projects Borncharter Fishing J. Lauritzen/Globe 0.0 1.0 1 1990-1999 Cowi Computer and rel. activities Cowi 1.8 11.0 10 1984-1987 Danindo Fishing J. Lauritzen 6.7 118.0 67 1989- * Dankaffe Food and beverages Niro 11.5 94.9 100 1992-1993 P.T. Wahana Derby Coolers and freezers Derby 3.4 4.4 19.7 101 1992- * P.T. Aalborg Industries Fabricated metal products Aalborg Industries 9.9 1.1 46.0 101 1994- Total: 33.4 5.5 290.6 380

Iran: 1 project Dyrup Paints Dyrup 0.6 1.2 20.0 400 1970-1977 Total: 0.6 1.2 20.0 400

Jordan: 2 projects DJDC Dairy Arla Foods International 2.1 23.5 86.0 110 1980-1994 Kemapco Fertilizers Kemira 3.3 50.0 866.2 160 2000- Total: 5.4 73.5 952.2 270

Malaysia: 25 projects Bredan Fabricated metal products Senior Flexonics Bredan 0.4 1.0 4 1991-2000 Checkerasia Machinery and equipment Systema & Checker 1.8 0.3 2.0 23 1991- Cimbria Far East Machinery and equipment Cimbria Unigrain 0.4 0.4 3.6 13 1992-1996 Dan Software Computer and rel. activities Dan Software International 0.1 0.5 1 1993-1997 Daneel Fishing Ole T. Kragh/Per Kragh 0.3 1.8 3 1991- * Dankaffe Food and beverages Niro 28.4 1.5 7.7 120 1993- * DDE Information technology Dansk Data Elektronik 1.0 1 1990-1991 DZ Security Plastic cards DZ Holding 2.7 4.0 7.0 42 1990-1997 Goldkist Poultry processing Cerekem 1.5 2.6 12.0 40 1986-1996 Guthrie-DDE EDP software Dansk Data Elektronik 3.0 13.0 22 1991-1998 Kualiti Alam Sewage and refuse disposal Krüger 0.0 1.0 4 1991-1999 Kvik Wood products Kvik Holding 1.4 0.3 8.0 80 1989-1994 Medicotest Medical/precision instruments Medicotest 2.1 5.3 52 1995-2000 Niro Ceramic Granite tiles Niro 15.5 22.2 100.0 308 1988-1993 Oriental Horticulture Agriculture and farming EAC (Malaysia) 4.9 1.3 13.0 1 1988- * Pl. Masterbach Chemical industry Kunststof Kemi 0.6 5.0 15 1985-1987 Pong Codan Marketing Marketing Codan Gummi 1.0 10 1989-1990 Pong Codan Rubber Rubber and plastic products Codan Gummi 0.3 3.0 30 1988-1990 Rockwool Asia Mineral wool Rockwool International 63.9 49.6 165.0 104 2000- # Scan Dairy & Food Food and beverages Niro 20.6 89.0 104 1992-2000 Scanavionics Medical/precision instruments Scandinavian Avionics 1.1 4.0 5 1993- Sika Furniture Sika Møbler 0.3 2.0 100 1974-1982 Skaarup&Jespersen Architects Skaarup & Jespersen 0.1 1.0 6 1990- STAR Fishieries Fishing Skagen Fish Network 0.5 3.0 10 1996-1997 Unico Kemi Chemical industry DK Kemi International 6.4 57.0 90 1988-1991 Total: 156.1 82.4 506.9 1.188

Maldives: 3 projects IPOH Investments Tourist Resort Seaplane Holding 42.3 84.0 1999-2001 Maldivian Air Taxi Air transport Air Service International 2.5 4.8 25 1992-1999 Male Water & Sewerage Water supply NTR Holding 27.2 20.3 126.3 80 1995- Total: 27.2 65.2 215.1 105

22 Activity/product Danish Partner(s) IFU Participation Total Investment Employment Period Shares Loans (DKK million) (Persons) (DKK million) (DKK million) Nepal: 2 projects Ghorka Brewery Brewery Danbrew 8.1 5.0 52.0 100 1988- Nedrill Water supply International Water Contractor 2.4 3.1 5 1989- Total: 10.4 5.0 55.1 105

Pakistan: 12 projects Camden Holding Rehab. of cement plant F.L. Smidth 0.6 1.9 1 2000- # Cattle Breeders Agriculture and farming APV Pasilac 1.7 1.0 7.0 50 1982- * Chakwal Cement FLS-Industries 27.1 1,360.0 500 1995-2001 Chemi Dansk Co. Textiles Dansk Transfertryk 3.8 24.5 30 1997- Dairyland Food and beverages APV Pasilac 3.8 45.0 140 1987-1988 Dane Foods Cookies Kelsen Bakery 4.5 15.0 124 1993- Fauji Cement Cement FLS-Industries 42.9 970.0 400 1993- Fauji Fertilizer Co. Fertilizers Haldor Topsøe 29.2 1,600.0 1.550 1978- Fauji II Fertilizers Haldor Topsøe 39.5 2,145.0 300 1990- Maple Leaf Cement FLS-Industries 35.1 1,125.0 390 1994- Milkpak Dairy APV Pasilac 1.4 3.2 66.0 225 1979-1989 Pepcem Cement Cement FLS-Industries 32.9 1,000.0 250 1997-2001 Total: 222.5 4.1 8,359.4 3.960

Papua New Guinea: 1 project Pacific Battery Batteries Alkaline Batteries 4.5 54.0 90 1985-1987 Total: 4.5 54.0 90

Philippines: 12 projects Atlas/Hi Cement Cement FLS-Industries 12.6 425.0 260 1984- Davao Union Cement FLS-Industries 23.8 750.0 300 1981-1996 Drilling Corp. of Asia Construction Kampsax/Krüger 3.1 4.5 17.0 10 1981-1988 DZ-Philippines Plastic cards DZ Holding 5 1992-2000 JEDE Asianbakers Food and beverages B. Christensen Maskinfabrik 1.5 2.4 11.4 208 1996-2001 Philcadan Furniture Philcadan 0.3 0.8 6.0 500 1975-1981 Philmop Pulp and paper products Brdr. Hartmann/EAC 2.3 3.4 16.0 25 1976-1988 Rotex Friction materials Roulunds Fabriker 0.3 0.3 4.0 25 1972-1987 Summit Air transport Sterling 3.4 1.3 6.0 10 1975-1982 Towi Furniture M. Krüger 0.5 6.1 8.0 210 1974-1987 Unidex Clothing Unidex 0.3 9.7 25.0 1.060 1979-1992 Vitarich Animal feed Cerekem 2.9 5.8 49.0 150 1980-1982 Total: 51.0 34.3 1,317.4 2.763

Republic of Korea: 3 projects KDDC Dairy Arla Foods International 33.4 20.5 107.9 108 1985-2001 Kodas Animal feed Flemstofte Mads Amby 7.1 1.8 10.0 2 1985-1988 Novenco Ventilation Novenco 1.5 7.0 12 1988-1988 Total: 42.0 22.3 124.9 122

Singapore: 1 project I.B.S. Construction Larsen & Nielsen/EAC 1.3 20.0 300 1973-1974 Total: 1.3 20.0 300

Sri Lanka: 12 projects Asia Power Energy production/distribution B&W Scandinavian Contractor 9.9 372.0 60 1997- BWSC Lanka Service of power plants B&W Scandinavian Contractor 2.0 3.1 50 2001- Bünger Machinery and equipment Bünger Engineering 1.0 20 1982-1987 C.W.Mackie & Co. Trade and distribution Aarhus Oliefabrik 13.2 7.8 154.1 3.120 1998- # Ceymac Rubber Co. Rubber products C.W. Mackie 33.0 321 1998- Ceytra Limited Rubber products C.W. Mackie 6.6 115 1998- Elsteel Fabricated metal products Erik Løgstrup 5.0 29.3 340 1997- Korea Ceylon Footwear Manufacture of footwear C.W. Mackie 72.0 1.858 1998- Scan Products Holding Co. Production of squashes C.W. Mackie 13.5 65 1998- Serendib Coconut Products Dessicated coconuts C.W. Mackie 14.2 530 1998- Silver Power Energy Sprout-Matador 0.5 2.0 20 1985-1987 Skanko Lanka Textiles Skandinavisk Kokosvæveri 0.8 1.5 10.0 90 1987- * Total: 24.4 16.3 710.8 6.589

Thailand: 14 projects Beer Thai Brewery Carlsberg International 19.7 863.0 600 1992- Carlsberg Brewery Brewery Carlsberg International 19.7 750.0 600 1992- DZ Plastic cards DZ Holding 0.5 6.2 18.0 124 1985-1993 Flux B. Grimm Electrical machinery/equipment Flux Transformerteknik 0.7 7.2 36 1995-1997 Nat.Egmont Entertainment Publishing house Egmont 17.9 27.0 50 1999- P. C. Hose Rubber hoses Codan Gummi 0.3 2.0 11.0 30 1985-1994 P. C. Rubber Rubber profiles Codan Gummi 3.6 13.0 410 1991-1994 Penadansk Textiles Dansk Transfertryk 9.5 10.2 51.0 30 1997- Pongpara Rubber products Codan Gummi 1.4 3.6 8.0 410 1980-1987 Premier Dairy Food Dairy Mejerigaarden Holding/et.al 1.8 1.3 8.0 15 1993- Quick-Cool Co. Fabricated metal products Brødrene Gram Invest 1.0 4.1 25 1997- Royal Scandinavia Jewelry Royal Scandinavia 3.0 11.0 30 1998- Scanthai Furniture M. Krüger 0.4 0.5 13.0 90 1975-1981 Tropic Dane Ceramics and furniture Tropic Dane Trading 1.4 6.1 50 1996- # Total: 54.0 50.7 1,790.4 2.500

23 Activity/product Danish Partner(s) IFU Participation Total Investment Employment Period Shares Loans (DKK million) (Persons) (DKK million) (DKK million) Vietnam: 5 projects Bodilsen Vietnam Wood garden furniture Bodilsen 6.1 21.0 340 2001- Hue Brewery Brewery Tuborg International 26.3 3.7 130.0 192 1994- KMC Vietnam Cultivation of root fruits Kartoffelmelcentralen 2.1 24.0 70 2001- MK-Rubico Wood products M. Krüger 5.9 40.0 120 1992-1994 S.E. Asia Brewery Brewery Carlsberg International 35.8 91.0 120 1992- Total: 76.2 3.7 306.0 842

Yemen: 1 project Muus Feed mill Elias B. Muus 0.2 0.5 1.0 20 1976-1978 Total: 0.2 0.5 1.0 20

TOTAL FOR: ASIA 1,376.1 615.4 24,694.7 31.799

EUROPE: 13 projects in total Malta: 1 project Mellieha Hotels and restaurants Dansk Folkeferie 2.5 5.4 69.0 50 1975-1989 Total: 2.5 5.4 69.0 50

Turkey: 12 projects Aytac Food and beverages APV Pasilac 17.8 466.0 750 1994-2001 DLF-Trifolium Agriculture and farming DLF-Trifolium 0.6 2.0 8 1994-1995 Ege-Baltica Insurance Tryg-Baltica 12.5 16.0 40 1990-1992 Entas Agriculture and farming KFK-Korn og Foderstofkompag./ et. al 27.2 1.5 250.0 230 1984- Golden Dolphin Hotels and restaurants DK Turkish Inv. 1.6 40.0 250 1973-1985 Klimasan Coolers and freezers Derby 4.4 26.3 208 1992-2001 KÖY-TÜR Agriculture and farming No Danish partner 14.5 17.4 1,730.8 2.700 1988- Parlar Clothing Minelli 8.8 26.0 90 1989-1993 Riegens Production of light fittings Riegens 1.4 2.0 20 1999- S & Q Mart Technical services S & Q Tech 0.3 2.0 3 1990- ScanBrid Agriculture and farming Scanbrid International 5.0 17.7 30 1993-1996 Viking Pulp and paper products Papyrus 15.6 15.5 125.0 200 1969-1986 Total for: Turkey 100.9 43.2 2,703.8 4.529

Total for: EUROPE 103.5 48.6 2,772.8 4.579

LATIN AMERICA: 96 projects in total Argentina: 5 projects Ailinco Sewage and refuse disposal Kommunekemi 12.1 26.3 134.6 81 1994-2000 Dan Austral Fishing Norfo 3.4 10.0 70 1993-1999 Euroamérica Harbour terminal J. Lauritzen 4.2 9.3 60.0 20 1992-1998 Palle Westerby Machinery and equipment Westconsult 0.9 0.4 5.0 15 1986-2000 PECORSA Energy production/distribution NEG Micon 0.6 1.7 5.0 3 1993-1999 Total: 17.7 41.0 214.6 189

Belize. 1 project Belize Minerals Mining Svend Brorsen 0.6 0.5 4.0 15 1991- Total: 0.6 0.5 4.0 15

Bolivia: 2 projects Bera de Bolivia Fabricated metal products Paul Bergsøe/EAC 0.6 0.7 32.0 20 1976-1987 Hielo Seco Chemical industry Hydrogas Danmark 2.9 3.6 16.0 25 1989- Total: 3.4 4.4 48.0 45

Brazil: 30 projects Aalborg Industries Fabricated metal products Aalborg Industries 5.8 2.7 25.0 130 1991- Aalborg Pontin Fabricated metal products Aalborg Værft 11.3 1.7 18.0 80 1978-1984 Biotropical Agriculture and farming Chr. Hansen 8.5 13.8 65 1988-1997 Cáceres Florestal Forestry Dalhoff Larsen & Hornemann 10.8 8.6 138.0 350 1990- Capricórnio Florestal Nature park Verdensnaturfonden 0.7 3.7 12 1993-1996 Caribersa Technical Service Provider Kampsax 2.9 8.4 83 2001- Danfoss do Brasil Machinery and equipment Danfoss 10.0 30 1987-1994 Danfrio Refrigeration equipment Brødrene Gram 5.1 3.0 10.0 50 1972-1983 Danica Nordeste Production of coldstore panels Danica Latin America 1.2 2.9 24 2001- Danica Tupiniquim Machinery and equipment Per Barke Nevermann 2.2 21.5 245 1992- Design 2000 do Brasil Furniture Danish Design Group 7.2 17.0 70 1996-1998 FLS Comercio Cement machines FLS-Industries 10.6 17.5 55.0 200 1975-1984 Frio Grande do Norte Cold Store for Fruits J. Lauritzen 5.4 5.1 18.5 5 2000- Gerstenberg Machinery and equipment Gerstenberg & Agger 3.3 1.2 9.0 4 1989-1996 Glunz & Jensen Electrical machinery/equip. Glunz & Jensen 2.0 25 1983-1983 Grindsted Food and beverages Danisco Ingredients 13.3 1.1 30.0 30 1986-1993 Hartm.-Mapol Montes Claros Pulp and paper products Hartmann-Mapol 85.0 100 1997- Hartmann-Mapol Pulp and paper products Brdr. Hartmann 36.5 86.0 500 1995- Hempel Tintas Paints Hempel 0.4 0.4 16.0 50 1970-1976 Kongskilde Machinery and equipment Kongskilde Industries 0.8 1.5 7.0 50 1973-1981 Mapol Pulp and paper products Brdr. Hartmann/EAC 11.4 4.9 57.0 400 1970-1986 Multiwing Machinery and equipment F.S. Andersen 2.0 2.0 10 1979-1987 Nordisk do Brasil Chemical industry Novo Nordisk 1.8 5.0 2 1984-1992 Nordisk Timber Wood products Dalhoff Larsen & Hornemann 9.4 62.5 151 1994-2001 Sabroe do Bahia Refrigeration equipment Sabroe do Brasil 1.0 7 1990-1993 Sabroe Export Refrigeration equipment Sabroe do Brasil 1 1985-1997 Sabroe Marine Service Refrigeration equipment Sabroe do Brasil 1.0 25 1991-1993 Sabroe Montagens Refrigeration equipment Sabroe do Brasil 71 1992-1997

24 Activity/product Danish Partner(s) IFU Participation Total Investment Employment Period Shares Loans (DKK million) (Persons) (DKK million) (DKK million) Sabroe/York do Brasil Refrigeration equipment York Refrigeration 6.2 39.2 83.0 650 1981- Sul Americana Refrigeracäo Refrigeration equipment Sabroe do Brasil 39.0 50 1997-1999 Total: 136.2 107.6 827.3 3.470

Central America: 1 project Mærsk Centr. America Fac. Transport related projects A.P. Møller 63.0 126.1 0 2001- Total: 63.0 126.1

Chile: 6 projects C.A. Holding Units f/controlled atmosphere J. Lauritzen 6.2 11.2 28.4 20 2000- CAC Controlled atmosphere J. Lauritzen (Chile) 10.5 2 2001- # Copenhagen Smokehouse Food and beverages Vendsyssel Denmark 0.7 4.5 40 1996-1999 Sabroe de Chile Refrigeration equipment Sabroe do Brasil 1.8 2.9 25 1992-1997 Segetrans Trucking J. Lauritzen 4.2 13.9 50 1994-1999 Segetrans Transporte Trucking J. Lauritzen (Chile) 9.4 29.4 6 1999- Total: 6.9 26.7 89.6 143

Colombia: 4 projects Cementos Rioclaro Cement production FLS-Industries 10.4 18.2 1,000.0 230 1983-1995 Coldin Fishing Krüger A/S 1.6 11.2 25 1987-1992 Plumrose Madrileña Meat processing EAC 6.1 66.0 200 1995-1999 Sabroe de Colombia Machinery and equipment Sabroe do Brasil 1.2 2.3 20 1997-1999 Total: 18.1 19.4 1,079.5 475

Cuba: 2 projects DinaCarne Breeding of pigs DinaCuba Holding 4.8 34.5 25 2000-2001 DinaFeed Feed mill DinaCuba Holding 1.3 16.0 25 1999-2001 Total: 6.0 50.5 50

Dominican Rep.: 1 project Indulac Dairy Emidan 2.7 1.9 21.0 110 1971-1978 Total: 2.7 1.9 21.0 110

Ecuador: 4 projects Dan Química Chemical industry Rustfri Stålmontage 13.2 32.4 80.0 70 1979-1998 Ecudina Agriculture and farming Holsted Tørrestation 5.1 13.3 25.0 20 1980-1986 PECS-DESMI Oil pit cleaning De Smithske 3.3 13.2 46 1996-1998 Scanform Construction Scan-Form 0.1 1.0 5 1980-1981 Total: 18.4 49.0 119.2 141

Guatemala: 1 project Cementos Progreso Cement FLS-Industries 59.5 855.2 700 1997- Total: 59.5 855.2 700

Guyana: 1 project Guyabreed Agriculture and farming Cerekem 2.4 10.7 35.0 15 1987-1995 Total: 2.4 10.7 35.0 15

Jamaica: 1 project Golf Beach Hotels and restaurants H. Hansen & P. Pedersen 0.2 2.5 5.0 50 1970-1976 Total: 0.2 2.5 5.0 50

Mexico: 15 projects Alta Tecnologia Dairy Niro de Mexico 9.9 12.5 39.2 107 1994-1999 Biblomodel Furniture B.C Inventar 5.5 27.0 181 1981- Carpur Feed lot Niro de Mexico 5.0 25.0 70 1993- Danfoss de Mexico Compressors Danfoss 49.9 575.0 800 1996- La Campiña Dairy Niro 12.7 95.0 270 1988-1991 Lacpur Dairy Niro de Mexico 11.9 17.1 39.0 70 1993- Monica's Food Dairy Niro de Mexico 10.3 5.8 27.9 108 1994-1999 Nordisk de Mexico Chemical industry Novo Nordisk 1.8 5.0 15 1984-1988 Palmex Food ingredients Palsgaard Industri 3.1 6.0 11 1996- Pescado Chiapas Fishing/fish processing Atlas-DK 6.5 240.0 650 1982-1984 Prolac Dairy Niro de Mexico 4.9 5.5 19.4 73 1995-2001 Rosti de Mexico Plastic products Rosti 30.8 90.0 300 1998- Roulunds Mexico Fabrication and sale of rubber Roulunds Fabriker 24.4 50.5 100 2001- Sabroe de Mexico Refrigeration equipment Sabroe do Brasil 1.3 2.0 20 1991-1999 Santa Lucía Vegetable oil refinery Aarhus Oliefabrik 30.6 458.5 300 1992- Total: 71.7 177.9 1,699.5 3.075

Nicaragua: 1 project ENISA Wind mill farm No Danish partner 0.4 0.8 5 1998- Total: 0.4 0.8 5

Panama: 5 projects Mærsk Jupiter Oil exploration A.P. Møller 26.7 85.7 25 1994-1999 Mærsk Mercury Oil exploration A.P. Møller 20.7 110.7 25 1994-1999 Mærsk Sirius Oil exploration A.P. Møller 39.5 202.0 250 1997-2000 PECS-DESMI Hold. Oil pit cleaning De Smithske 1.7 6.8 3 1996-1998 # Pedregal Power Co. Thermical Electricity Plant B&W Scandinavian Contractor 0.1 26.7 420.5 50 2001- Total: 0.1 115.2 825.7 353

25 Activity/product Danish Partner(s) IFU Participation Total Investment Employment Period Shares Loans (DKK million) (Persons) (DKK million) (DKK million) Paraguay: 1 project Cesusa Brewery Carlsberg International 12.0 0.2 70.0 91 1990-1996 Total: 12.0 0.2 70.0 91

Peru: 6 projects Agroindustria Danper Agriculture and farming Wiik & Co. 0.1 1.0 50 1985-1988 Danper Trujillo Asparagus processing Arne Hensel Berg 2.1 8.4 15.5 300 1991- Fima Machinery and equipment Atlas-Stord 8.6 266.3 500 1999- PAMIAL Procurement of guarantees Alfa-Laval Oil & Protein Tech. 0.0 51.3 5 2000- Sabroe de Peru Refrigeration equipment Sabroe do Brasil 1.3 5 1995-1997 Segetrans Peru Trucking of fruit a.o. J. Lauritzen 0.5 2.2 6.7 20 2000- Total: 2.7 19.1 342.1 880

Uruguay: 5 projects Astra Fishing/fish processing J. Lauritzen 14.9 17.0 280.0 1.200 1982- * Cosmos Trawl Production of trawls Cosmos Trawl/Randers Reb 0.3 3.4 4 1999- Gley Cheese powder Lactosan 5.0 20.0 10 1991-1996 Mvd Int. Container Term. Port terminal A.P. Møller 38.9 193.0 80 1998-2000 Oceanica Fish processing J. Lauritzen 10.0 600 1987-1991 Total: 14.9 61.2 506.4 1.894

Venezuela: 4 projects AFI Pig breeding Plumrose Latinoamericana 15.5 66.0 42 1998- Haustrup Venezolana Fabricated metal products Rexam Holding 6.6 5.7 84.0 105 1980-1994 PECS-DESMI-CPVEN Oil pit cleaning De Smithske 0.7 5 1997-1998 # Plumrose Latinoamericana Processed meat products EAC 40.1 1,093.2 3.000 1996- Total: 22.1 45.9 1,243.9 3.152

TOTAL FOR: LATIN AMERICA 336.1 805.9 8,163.5 14.853

GRAND TOTAL: 449 PROJECTS 2,353.5 2,306.2 50,106.3 76.310

IFU participation is the accumulated sum in DKK of IFU’s contracted investments in all project companies since project start. The list includes active projects as well as projects where IFU’s participation has been terminated. Consequently, the figures cannot be related to the figures in the balance sheet at year end. Investment in shares includes overrun commitments, and investment in loans includes guarantees. Total investment is the total investment in all project companies in DKK as originally foreseen at the appraisal stage. The number of employees is the number expected to be employed at the appraisal stage. * Operation discontinued # Investment through holding company

Verino Agro, Zambia

26 Board of Directors

Chairman Deputy Chairman

Johannes Poulsen Agnete Raaschou-Nielsen Lars Andersen Sigurd Ø. Andersen Elsebeth Budolfsen Lars Kolte Kjeld Ranum Michael Rasmussen Carsten Staur Karen Wermuth Managing Director Managing Director Managing Director Managing Director Managing Director Managing Director Director Member of the Executive Board State Secretary, Ambassador Under Secretary, Ambassador Vestas Wind Systems A/S Hofman-Bang Zacco A/S The Economic Council of the Burmeister & Wain Torsana Oncology Systems Eksport Kredit Fonden Nordea Bank Danmark Ministry of Foreign Affairs Ministry of Foreign Affairs Offices Labour Movement Scandinavian Contractor A/S Harare Johannesburg (closing mid-2002) (opening mid-2002)

Board of Management

Hans-Jørgen M. Nyegaard Tayengwa Masawi Niels Evendt Regional Representative Investment Officer Resident Representative (From June at IFU Copenhagen) (From June at IFU Johannesburg)

Sven Riskær Jørgen Dan Jensen Frank Norman Larsen Beijing New Delhi Managing Director Deputy Managing Director Deputy Managing Director

Project Development Department

Hong Jiang Deepa Hingorani Sudhir Dravid Kesavan Narayanan Resident Representative Resident Representative Investment Officer Investment Officer

Torben Huus Ib Albertsen Jens Bayer Martin M. Kristensen Brian Kristoffersen Tatiana M. Manzon Martin Rømer Elisabeth Scheinemann Flemming Torp Henning Wong Advisers Department Director Senior Investment Officer Senior Investment Officer Investment Officer Investment Officer Investment Officer Investment Officer Investment Officer Investment Officer Investment Officer

Investment Management Department

Mohamed Ahmed Kodjo Aziagbé Mike Benn Joti Bhokavanij Jette Hansen Blomquist Cairo, Egypt Lomé, Togo Pretoria, South Africa Bangkok, Thailand Lima, Peru

Morten Christiansen Rena Chen Michael Hedegaard Erik Larsson Manish Maheschwari Peer Munkholt Natalia Svejgaard Department Director Investment Officer Investment Officer Investment Officer Investment Officer Senior Investment Officer Investment Officer

Special Operations Department

Riyaz Bokhari Uffe Bundgaard-Jørgensen Nigel Bremner Jan E. Ditlevsen Roberto Fernandez Lahore, Pakistan Denmark (Facilitator) Nairobi, Kenya Denmark (Facilitator) Montevideo, Uruguay Staff of Danish Investment Funds, December 31 2001

55% Female 45% Male Svend J. Heineke Max Kruse Steen Larsen Jørn Fredsgaard Sørensen Department Director Senior Investment Officer Investment Officer Investment Officer 54% Operationel Staff 46% Support Staff Finance Department

80% Employed at the head office 20% Outside DK

75% Danes 25% Non-Danes Meriç Gemayel Bjarne Rørbæk Jensen Henrik de Jonquières Hemming Jørgensen Peter Kilian Istanbul, Turkey São Paulo, Brazil Denmark (Facilitator) Luxembourg (Facilitator) Mexico City, Mexico Total no. of staff: 83

Niels Gravgaard Laursen Lone Bjørn Hansen Morten K. Jensen Department Director Chief Accountant Finance Officer

Corporate Administration Department

Secretariat Comm./info/service Unit Legal Unit Environmental Unit IT Unit

Jens Kronborg Armando Martinez Gerrie Muller Mikael Olufsen Peter Rasmussen Santiago de Chile, Chile Mexico City, Mexico Sandton, South Africa Denmark (Facilitator) Suzhou, China (Facilitator) (Facilitator)

Henrik Jepsen Bjørn Jakobsen Bente Larsen Jens Rixen Michael Wedel Sørensen Søren Heilmann Johnny Niska Department Director Head of Secretariat Chief Librarian Legal Adviser Environmental Adviser System Administrator (IT) System Administrator (IT)

José M. Ruisánchez Sridhar Sampath Bendt Starup Lucien Wang Poul Weber Washington D.C., USA Chennai, (Madras), India Singapore Beijing, China Bangkok, Thailand (Facilitator) IFU as a partner

IFU normally provides equity and in certain cases loan financing, but investors The Industrialization Fund increasingly regard the institution’s experience and advice equally as valuable for Developing Countries (IFU) Bremerholm 4 as its capital contribution. DK-1069 Copenhagen K Denmark Tel +45 33 63 75 00 SHARES EXPERIENCE When a company presents a project idea to IFU, the company may request Fax +45 33 32 25 24 advice regarding the project, the project country and the choice of a local [email protected] · www.ifu.dk partner. The advice will be drawn from IFU’s experience with the project country and previous contacts with local financial institutions, the authori- ties and the private sector.

DOOR OPENER Early on in the preparations IFU may be asked to issue a Declaration of Clearance in Principle – an approval of the project idea and of the basic in- vestment conditions in the project country. This can facilitate negotiations with authorities, project partners and lenders.

APPRAISAL IFU offers its advice on the appraisal to be undertaken as basis for the IFU - Harare final decision on the investment, usually based on experience from the 11th Floor, Social Security Centre same sector or geographical area. Corner Second Street & Julius Nyerere Way Harare PRE-INVESTMENT MEETING IFU generally recommends that the partners meet at a seminar run by an Zimbabwe Tel +263 4 250 621-3 independent facilitator to ensure that the partners have a full and clear un- Fax +263 4 250 625 derstanding of each other’s business motives and obligations prior to the [email protected] final investment decision.

SHAREHOLDERS’ AGREEMENT The signing of the shareholders’ agreement or the loan agreement between AND BOARD OF DIRECTORS IFU and the partners marks the final conclusion of the project prepara- tions. As a stakeholder, IFU normally makes its experience available through active participation in the work of the board of directors.

GRANTS FOR TRAINING AND For projects in eligible countries, partners can apply through IFU for ENVIRONMENT DANIDA grants to cover e.g. education and training of project employees as IFU - Beijing well as environmental and occupational health and safety improvements. Rm 1815, China Travel Service Tower (CTST) No. 2 Beisanhuan East Road DEPARTURE ON COMPLETION When a project company is consolidated, usually after 6–8 years, IFU will Beijing 100028 OF ROLE sell its shares in the project company to release funds for new investments. China Tel +86 10 6460 9797 First right of refusal is normally granted to the partners. Fax +86 10 6460 9799 [email protected] JOINT VENTURE FINANCING IFU finances up to 25 per cent of the total investment including working capital through share capital and/or loans. IFU subscribes to a maximum of 30 per cent of the share capital and usually not to a larger share than the Danish partner. The loans usually mature in up to 5 years, and often a period of grace is offered. Equity loans and guarantees for loans from other sources may also be offered.

➜ IFU - New Delhi IFU - Johannesburg SPWD Building, 2. floor, 14 A IFU to open an office Vishnu Digambhar Marg in Johannesburg (Rouse Avenue Lane) in mid 2002 Loans 60 % New Delhi 110002 Share Capital 40 % India Tel +91 11 321 7160 LOCAL PARTNER DANISH PARTNER IFU OTHER FINANCING Fax +91 11 321 7167 [email protected]

5 Danish International Investment Funds, Copenhagen, March 2002 · Text consultant: TextPartner · Photos: Ernst Tobisch (p. 4) · Layout: Linda Balle Grafik · Print: Trekroner Tryk 41 372 ISSN 0901-6171