THE STATE OWNERSHIP REPORT 2016 Contents Contents Contents 2 The Minister’s introduction 3 Scope and Norfund 94 Norges sjømatråd AS 95 Norsk Helsenett SF 96 key figures 5 The Minister’s introduction 3 Category 3 – Commercial and other Norsk rikskringkasting AS 97 Scope and key figures 5 specifically defined objectives Norsk Tipping AS 98 1 Key issues for the state as owner 9 Argentum Fondsinvesteringer AS 64 NSD – Norsk senter for forskningsdata AS 99 Key figures 2016 Return and financial values 13 Eksportfinans ASA 65 Nye Veier AS 100 Key figures describing financial performance 19 Electronic Chart Centre AS 66 Petoro AS 101 Corporate governance 25 GIEK Kredittforsikring AS 67 Rogaland Teater AS 102 7 Continuous improvement Investinor AS 68 Simula Research Laboratory AS 103 is the key to eternal youth 36 Kommunalbanken AS 69 Siva – Selskapet for Industrivekst SF 104 NSB AS 70 Space Norway AS 105 Posten Norge AS 71 Statnett SF 106 Key issues for Statkraft SF 72 Statskog SF 107 Staur gård AS 108 Category 1 – Commercial objectives Store Norske Spitsbergen Kulkompani AS 109 Ambita AS 42 Talent Norge AS 110 the state as owner 9 Baneservice AS 43 Trøndelag Teater AS 111 Entra ASA 44 Category 4 UNINETT AS 112 Flytoget AS 45 – Sector policy objectives Universitetssenteret på Svalbard AS 113 Mesta AS 46 Andøya Space Center AS 76 AS Vinmonopolet 114 Return and SAS AB 47 Avinor AS 77 Veterinærmedisinsk Oppdragssenter AS 48 Bane NOR SF 78 Bjørnøen AS 79 Carte Blanche AS 80 financial values 13 AS Den Nationale Scene 81 Regional health authorities Den Norske Opera & Ballett AS 82 Helse Midt-Norge RHF 118 Category 2 – Commercial objectives Eksportkreditt Norge AS 83 Helse Nord RHF 119 and objective of maintaning head Enova SF 84 Helse Sør-Øst RHF 120 Key figures describing office funtions in Norway Gassco AS 85 Helse Vest RHF 121 Aerospace Industrial Maintenance Norway AS 52 Gassnova SF 86 Aker Kværner Holding AS 53 Graminor AS 87 DNB ASA 54 Innovasjon Norge 88 financial performance 19 Kongsberg Gruppen ASA 55 Kimen Såvarelaboratoriet AS 89 Nammo AS 56 Kings Bay AS 90 Other companies 122 Norsk Hydro ASA 57 Nationaltheatret AS 91 Owner-appointed / shareholder- Corporate governance 25 Statoil ASA 58 Nofima AS 92 elected board members 124 Telenor ASA 59 Nordisk Institutt for Contact details 128 Continuous improvement Yara International ASA 60 Odontologiske Materialer AS 93 Comments and definitions 129 is the key to eternal youth 36 Category 1 Commercial objectives 41 Ambita AS 42 Baneservice AS 43 Entra ASA 44 Flytoget AS 45 Mesta AS 46 SAS AB 47 Veterinærmedisinsk Oppdragssenter AS 48 Cover photo: © Bane NOR SF/Anne Mette Storvik. The Minister’s introduction Twelve ministries manage the state’s di- For companies where the state’s own- tween owner, board and management, we rect ownership in 74 companies. In the ership has commercial objectives, the aim strive to ensure that the companies make State Ownership Report, the Ministry of is to generate the highest possible return good decisions and use capital prudently. Trade, Industry and Fisheries provides an on invested capital over time. In practice, By being a challenging owner, the state can overview and presentation of these com- we strive to ensure that the companies are help to ensure that the companies carry panies, with an emphasis on the compa- profitable over time, so that they can out thorough assessments and work hard nies’ development last year. The aim is to maintain and create jobs and generate to achieve the company’s purpose. contribute to transparency concerning value for the common good. For companies for which the state’s the state’s exercising of its ownership and For companies for which the state’s ownership has commercial objectives, the the companies’ operations and results. ownership has sectoral policy objectives, state has clear expectations regarding the In 2016, growth in the Norwegian the ambition is to achieve the objectives companies’ return and dividends. The economy was at its lowest level since the as efficiently as possible. When the state state monitors this by drawing compari- financial crisis. Nevertheless, rising pric- attempts to achieve sectoral policy objec- sons with relevant companies, indices and es for key export goods contributed to a tives through ownership, it is generally the state’s return targets (reference re- sharp upturn on Oslo Stock Exchange. In because the tasks or the activity are ex- turn), and by assessing value-drivers and the eight listed companies of which the pected to be carried out more efficiently value-increasing measures. state has direct ownership, the state’s within a company rather than through To support the state’s objective of share at the end of 2016 was worth NOK other means. The goal is the maximum wealth creation, the state as owner has es- 596 billion. These companies gave the possible wealth creation. tablished a set of expectations regarding state a return, including dividends, of 23% The state’s exercising of ownership the boards and companies. These are set in 2016. The corresponding rate of return shall contribute to wealth creation. Per- out in white paper Report no. 27 to the during the two previous years was 1 and haps the most important task for the state Storting (2013–2014) Diverse and value- 6%. By comparison, the returns from Oslo as owner is to select good boards to man- creating ownership (the White Paper on Stock Exchange’s main index during the age the companies. An important task for Ownership), and are followed up through past three years were 12, 6 and 5%. the boards is to elaborate explicit objec- the ownership dialogue. A short version The total value of the state’s commer- tives and strategies for the company within of these expectations and how the state cial ownership was estimated to be NOK the constraints of the articles of associa- follows up the policy in the White Paper 715 billion at year-end 2016, up NOK 70 tion. As owner, the state is committed to on Ownership can be found in the chapter billion from the previous year. In addition, ensuring that objectives and strategies are on corporate governance. the state received NOK 33 billion in divi- suitable for achieving the state’s objectives I hope you will find this report informa- dends from all the companies for the 2016 and ownership. This is pivotal in the dia- tive and useful. financial year. logue with the companies, and the state as Brun © Hans Jørgen There are many reasons why the state owner seeks to contribute to good goal at- has become a major owner. The state’s in- tainment. This year’s article in the State dustrial policy after the war, which sought Ownership Report specifically concerns to safeguard self-supply, employment and how a company establishes objectives and control of natural resources, and the sepa- how they are followed up within the organ- ration of state production and the opera- isation. The article was written by CEO tion of important infrastructure and ser- Svein Richard Brandtzæg of Norsk Hydro. vices are some examples. Today, the In the ownership dialogue, we discuss state’s overall objective of its ownership is circumstances which are of importance for to help create value within the Norwegian the state’s objectives behind the owner- economy. Among other things, this in- ship. This could for example concern the cludes considerations such as the reten- company’s strategy, capital situation and tion of important head offices and re- earning potential, risk factors and market Monica Mæland search and development in key areas in conditions. Within the division of roles be- Minister of Trade and Industry Norway. 3 © Johan Wildhagen/Statnett SF Wildhagen/Statnett © Johan Statnett is the transmission system operator in the Norwegian power system, and is responsible for ensuring the rational operation and development of the transmission grid in accordance with socio-economic criteria. 4 Scope and key figures 5 The state’s direct ownership al companies from page 41 and for most maintaining the company’s head office and The state’s direct ownership includes companies in white paper Report no. 27 to associated head office functions in Norway. companies in which the state’s ownership the Storting (2013–2014) Diverse and val- For companies in category 3, the state has interests are managed directly by the min- ue-creating ownership (the White Paper commercial objectives and other societal istries. The table below presents an over- on Ownership). The companies are divid- justifications for state ownership besides view of the 74 companies, distributed ac- ed into four categories based on the state’s maintaining the head office in Norway. cording to ministry. All the companies are objectives behind the ownership: There are 26 companies in categories 1–3, presented in the 2016 State Ownership 1. Commercial objectives and the state’s ownership interests in 21 of Report, and figures are reported for 68 2. Commercial objectives and objective of these are managed by the Ownership De- companies. Contact information for the maintaining head office functions in partment within the Ministry of Trade, In- twelve ministries which manage the state’s Norway dustry and Fisheries. ownership interests in companies can be 3. Commercial objectives and other spe- State ownership of the companies in cat- found on page 126. cifically defined objectives egory 4 primarily has sector policy objec- 4. Sectoral policy objectives tives. The state’s ownership of these com- Categorisation of the companies The main objective of the state’s commercial panies is usually managed by the ministries The state has justifications and objectives ownership (companies in categories 1-3) is whose remit includes the sectoral policy for its direct ownership.