THE STATE OWNERSHIP REPORT 2015 Contents
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THE STATE OWNERSHIP REPORT 2015 Contents Norges sjømatråd AS 92 Norsk Helsenett SF 93 Norsk rikskringkasting AS 94 The Minister’s introduction 3 Category 3 – Commercial and other Norsk Tipping AS 95 Scope and key figures 5 specifically defined objectives NSD – Norsk senter for forskningsdata AS 96 Central matters for the state as owner 9 Aerospace Industrial Maintenance Norway SF 62 Nye Veier AS 97 Return and financial values 13 Argentum Fondsinvesteringer AS 63 Petoro AS 98 Key figures describing financial performance 19 Eksportfinans ASA 64 Rogaland Teater AS 99 Corporate governance 25 Electronic Chart Centre AS 65 Simula Research Laboratory AS 100 Raising the standard for efficient GIEK Kredittforsikring AS 66 Siva – Selskapet for Industrivekst SF 101 and transparent state ownership 36 Investinor AS 67 Space Norway AS 102 Kommunalbanken AS 68 Statnett SF 103 NSB AS 69 Statskog SF 104 Posten Norge AS 70 Staur Gård AS 105 Statkraft AS 71 Store Norske Spitsbergen Kulkompani AS 106 Category 1 – Commercial objectives Talent Norge AS 107 Ambita AS 42 Trøndelag Teater AS 108 Baneservice AS 43 UNINETT AS 109 Entra ASA 44 Universitetssenteret på Svalbard AS 110 Flytoget AS 45 Category 4 – Sector policy objectives AS Vinmonopolet 111 Mesta AS 46 Andøya Space Center AS 74 SAS AB 47 Avinor AS 75 Veterinærmedisinsk Oppdragssenter AS 48 Bjørnøen AS 76 Carte Blanche AS 77 AS Den Nationale Scene 78 Regional health authorities Den Norske Opera & Ballett AS 79 Helse Midt-Norge RHF 114 Eksportkreditt Norge AS 80 Helse Nord RHF 115 Category 2 – Commercial objectives and objective Enova SF 81 Helse Sør-Øst RHF 116 of maintaining head office functions in Norway Gassco AS 82 Helse Vest RHF 117 Aker Kværner Holding AS 52 Gassnova SF 83 DNB ASA 53 Graminor AS 84 Kongsberg Gruppen ASA 54 Innovasjon Norge 85 Nammo AS 55 Kimen Såvarelaboratoriet AS 86 Norsk Hydro ASA 56 Kings Bay AS 87 Other companies 118 Statoil ASA 57 Nationaltheatret AS 88 Owner-appointed / shareholder-elected Telenor ASA 58 Nofima AS 89 board members at 31 March 2016 120 Yara International ASA 59 Nordisk Institutt for Odontologiske Materialer AS 90 Contact details 124 Norfund 91 Comments and definitions 125 Cover photo: © Johan Wildhagen. The photo is provided by Norges sjømatråd AS. The Minister’s introduction Eleven ministries manage the state’s di- tively. The state’s ownership policy is speci- raised questions about the state’s man- rect ownership in 70 companies. In the fied in the white paper Report no. 27 to the agement of its ownership interests. In my 2015 State Ownership Report, the Minis- Storting (2013–2014) Diverse and value- opinion, these cases do not provide a ba- try of Trade, Industry and Fisheries pro- creating ownership, including the state’s sis for amending the fundamental frame- vides an overview and presentation of all principles for good corporate governance work for the state’s exercise of its owner- the companies in which the state has an and the state’s expectations of the compa- ship. The principles of a clear division of ownership interest, with emphasis on the nies. The state’s ownership is excercised to roles, both between the state’s various companies’ development last year. Trans- enhance value creation by promoting ap- roles and between the owners, the board parency regarding the state’s exercise of propriate board composition, good corpo- and the management should be upheld. its ownership and the companies’ opera- rate governance, an effective capital struc- Also challenging issues ought to be man- tions is a fundamental pillar of state own- ture and suitable dividends, that sustaina- aged within the established framework ership. This year we have included a chap- bility and corporate social responsibility that now has legitimacy among the com- ter on the state’s corporate governance, in are integrated into the business, and trans- panies’ stakeholders and which the Stor- part to provide more detailed insight into parency and good reporting. ting (Parliament) endorses unanimously. how the state as an owner exercises its The state’s conduct as an owner has This has been an advantage for Norwe- ownership in practice. great importance for the public’s, inves- gian state ownership. The overarching goal of state owner- tors’ and other stakeholders’ confidence in The ownership dialogue is the main tool ship is value creation. The objective for the Norwegian companies with state own- for following up the state’s expectations in companies in which the state’s ownership ership and the Norwegian capital market. various areas. In its capacity as an owner, has commercial objectives is to achieve State ownership shall be exercised profes- the state seeks to ask relevant questions in the highest possible return on invested sionally and predictably within the frame- order understand how the companies man- capital over time. For companies where work of corporate law and shall be based age corporate governance and corporate the state’s ownership has primarily secto- on generally accepted principles of corpo- social responsibility, both in general and in ral policy objectives, the ambition is that rate governance. Consequentially, the state relevant specific cases. The state wants to these defined objectives are achieved as must respect the division of roles between ascertain whether the corporate systems efficiently as possible. the owner, the board and the management. and measures are effective, how any devia- The value of the state’s assets in its com- It is an important principle that state own- tions were able to occur and how lessons mercial shareholdings was estimated to ership shall not imply advantages nor dis- learned are incorporated in relevant areas. NOK 644 billion at year-end 2015, down advantages for companies. In addition, there is an ambition for the NOK 16.7 billion from the previous year. The board of directors and the CEO are state to continually raise the standard as a Much of the decline is due to the fact that responsible for the management of the responsible owner including developing the state is heavily invested in industries company. Perhaps the state’s most impor- and improving the follow-up of the compa- that had a challenging year. Mainland GDP tant task as an owner is to promote good nies. Despite the negative image that has growth was 1.0% in 2015, which is the low- and competent boards that exercise their developed over the past year, my impres- est rate since the financial crisis in 2009. influence in the best interest of companies sion is that most companies are working Much of the decline is linked to the signifi- and owners. The state as an owner sets systematically and well with designing sys- cant drop in demand from the oil industry. clear expectations to the board through the tems and measures to raise the standard Lower demand from the petroleum white paper on ownership policy. These ex- for good corporate governance and im- sector implies that the Norwegian econo- pectations are followed up in our regular prove the work on corporate social respon- my is facing a challenging restructuring ownership dialogue with the companies. sibility. process. However, Norway is in a strong Over the past year there have been sev- I hope you will find this report informa- position with high employment, relatively eral cases concerning companies with tive and useful. low unemployment and a highly educated state ownership with regards to their Brun © Hans Jørgen population that is accustomed to thinking work on corporate social responsibility, outside the box and embracing the oppor- corporate governance and compliance tunities that change can afford. Several of with laws, regulations and their own the companies with state ownership have guidelines. As an owner the state empha- demonstrated a great ability to adapt their size that companies with state ownership business in line with developments in so- strive for good corporate governance and ciety. It is perhaps more important now work systematically and strategically with than ever that the companies develop corporate social responsibility issues. skills and improve operations, in order to Managing such matters well helps protect play a construtive part in the restructur- the state’s shareholder value and can con- ing of the Norwegian economy so that to- tribute to ethically correct coduct. tal value creation increases. The unfortunate issues that have been As an owner, the state constantly strives reported during 2015 and 2016 date back to contribute to the companies’ value crea- a few years and have been of varying na- Monica Mæland tion by managing its ownership construc- tures. These incidents have nevertheless Minister of Trade and Industry 3 Kongsberg Gruppen is an international, knowledge-based group that delivers high-technology systems and solutions to customers in the offshore industry, the oil and gas industry, merchant fleet and defence and space. 4 Scope and key figures The state has direct ownership, managed by the ministries, in 70 companies. The total value of the state’s commercial ownership was estimated to around NOK 644 billion at year-end 2015. © Kongsberg Gruppen ASA © Kongsberg 5 The state’s direct ownership The Ministry of Trade, Industry and and Communications each manage the The state’s direct ownership includes Fisheries has the largest portfolio and state’s ownership interests in four compa- companies in which the state’s ownership manages the state’s ownership interests nies. The Ministry of Finance, the Minis- interest is managed directly by the minis- in 30 companies. The Ministry of Culture try of Defence, the Ministry of Local Gov- tries. The table below contains a list of the manages the state’s ownership interests ernment and Modernisation and the Min- 70 companies, distributed according to in eleven companies, the Ministry of istry of Foreign Affairs each manage the the ministry that manages the state’s own- Health and Care Services in seven, and state’s ownership interest in one compa- ership interests.