THE STATE’S OWNERSHIP REPORT 2010 OWNERSHIP REPORT THE STATE’S THE STATE’S OWNERSHIP REPORT 2010 Ministry of Trade and Industry P.O. Box 8014 Dep NO-0030 Oslo Visiting address Einar Gerhardsens plass 1 Telephone +47 22 24 90 90 Fax +47 22 24 01 30 E-mail [email protected] Internet www.regjeringen.no/nhd www.ownershipreport.net K-0714 E Contents The Norwegian State Ownership Report 2010 comprises 52 companies in which the ministries administer the State’s direct ownership interests. The report covers the companies where the State as owner mainly has commercial objectives and the most important companies with sectoral policy objectives. PAGE PAGE PAGE Foreword by the Minister 3 Companies with commercial Petoro AS 88 The State's Ownership Report 2010 5 and other specific, defined objectives Simula Research Laboratory AS 89 The Year 2010 for the State as a shareholder 6 Eksporfinans ASA 63 SIVA SF 90 Return and values 12 Electronic Chart Centre AS 64 Statnett SF 91 Key figures describing financial development 18 Kommunalbanken AS 65 Statskog SF 92 Other key figures 24 NSB AS 66 UNINETT AS 93 Corporate social responsibility 30 Posten Norge AS 67 Universitetssenteret på Svalbard AS 94 External articles 34 Statkraft SF 68 AS Vinmonopolet 95 The State’s administration of its ownership 40 Store Norske Spitsbergen Kulkompani AS 69 Companies with commercial objectives Companies with sectoral policy objectives Regional health authorities Argentum Fondsinvesteringer AS 46 Avinor AS 72 Central Norway Regional Health Authority 98 Baneservice AS 47 Bjørnøen AS 73 Northern Norway Regional Health Authority 99 Cermaq ASA 48 Eksportutvalget for fisk AS 74 South-Eastern Norway Entra Eiendom AS 49 Enova SF 75 Regional Health Authority 100 Flytoget AS 50 Gassco AS 76 Western Norway Regional Health Authority 101 Mesta Konsern AS 51 Gassnova SF 77 SAS AB 52 Innovation Norway Secora AS 53 (special-legislation company) 78 Veterinærmedisinsk Oppdragssenter AS 54 Kings Bay AS 79 Shareholder-elected board members 102 Kompetansesenter for IT i Contact information 105 helse- og sosialsektoren AS 80 Comments and definitions 106 Nofima AS 81 Companies with commercial objectives and Norfund (special-legislation company) 82 head office functions in Norway Norsk Eiendomsinformasjon AS 83 Aker Holding AS 55 Norsk Helsenett SF 84 DnB NOR ASA 56 Norsk Rikskringkasting AS 85 Kongsberg Gruppen ASA 57 Norsk samfunnsvitenskapelig datatjeneste AS 86 Nammo AS 58 Norsk Tipping AS 87 Norsk Hydro ASA 59 Statoil ASA 60 Telenor ASA 61 Yara International ASA 62 2 Foreword by the Minister As we entered 2010, Norwegian businesses were Report no. 13 to the Storting (2010–2011) Active still reeling from a very challenging year. The finan- ownership - Norwegian State ownership in a global cial crisis led to a drop in international demand, economy,which was presented on 1 April 2011. which, combined with significant growth in govern- ment debts, created uncertainty in the market. De- In this new white paper on State ownership, the spite the fact that Norway is fortunate enough to be Government states that it intends to maintain the in a situation where we were able to implement scope of State ownership at roughly its current lev- countermeasures, some industries in Norway were els. The State’s general principles of good corpo- nevertheless hit very hard by the financial crisis. rate governance remain unchanged, a fundamental element of which is the sharing of responsibilities At the close of 2010, the outlook was brighter than between the board of directors and the owner. But many people had feared. The pessimism in the mar- while we are maintaining the main principles of ket has turned into cautious optimism. 2010 was a State ownership, we recognise that there have year of recovery for the Norwegian economy: in been changes over the four years since the last mainland Norway, GDP rose by over 2 per cent, and white paper on ownership policy that necessitate industrial production increased by over 3 per cent. updates in the State’s ownership policy. Unemployment has fallen during the past year too. Globalisation and the ever increasing rate of We see similar signs of recovery in the 52 compa- change and innovation serve to increase the com- nies reviewed in this report, in which the State has plexity of corporate governance. Faster changes direct ownership via the ministries. Many compa- and new requirements to the exercise of ownership nies have made significant changes and emerged increase the need for flexibility in the State's own- from the crisis even stronger than before. The over- ership. The State must have a dynamic, flexible ap- all picture is positive, with a total dividend to the proach to ownership, such that the policy instru- State of NOK 31 billion for the financial year 2010. ments are always optimally adapted to the objec- tives for the State's ownership. Basically, the new Henry Kreilisheim © Photograph: The past year has shown that the Norwegian State white paper paves the way for more frequent as- is a patient and stable owner – especially in turbu- sessment of the State's ownership in the various holder in Norwegian industry. The measures intro- lent times in the world economy. As a long-term companies – while maintaining the State's overall duced in the new ownership white paper are in- owner, the State has supported and promoted the stake at roughly the current level. tended to ensure that the State's ownership is companies' development. This was one of the main managed in a way that helps the companies to reasons behind the State's decision to participate The State will continue to formulate clear goals for maximise their earnings in the years to come. in the share issue in connection with Norsk Hydro's its ownership in each individual company. At the acquisition of the aluminium operations of the Bra- same time, the new white paper defines more The current report provides an overview of the zilian company Vale. The same rationale underlay clearly the general expectations we have of all State's ownership interests managed directly by the decision to increase Statkraft's equity by NOK companies, especially in the area of corporate so- the ministries and a number of central financial and 14 billion. Statkraft's investment plan is the most cial responsibility. Similarly, we are also tightening non-financial key figures. It also discusses impor- comprehensive commitment to renewable energy the guidelines for the determination of executive tant events for the companies and for the Norwe- ever and gives rise to expectations of results – in- salaries in state-owned companies. Another new gian State as a shareholder in the 2010 financial dustrially and financially. element is more stringent requirements and expec- year. The report is intended to provide insight into tations concerning transparency and reporting to the State's direct ownership and the companies in 2010 has also been an exciting year for the State's the general meeting. We want the companies to which the State has a stake. I hope you find this ownership policy. During the past year we have ini- comply with these requirements and expectations report informative and useful. tiated debates, held a number of consultations – not only because that is a goal in itself, but also around the country, and attended meetings with because we believe that good routines in connec- Sincerely, other major and private shareholders in Norwegian tion with issues related to corporate social respon- industry. The agenda has focused on why and what sibility can help strengthen the long-term position the State should own and how we can best manage and competitiveness of the companies. the State's ownership – and we have received many good suggestions and recommendations. The new white paper on State ownership continues The conclusions are described and discussed in our ambition of being a major and stable share- Trond Giske, Minister of Trade and Industry 3 At the end of 2010, the value of the State’s shareholding in companies where « commercial operation is one of the objectives was estimated at NOK 609 billion. » 4 The State Ownership Report 2010 The State Ownership Report provides an overview of the State's ownership, the administration of this ownership and how the companies are developing. It is intended to increase knowledge about both the ministries' administration of the State's ownership and the individual companies. The companies have been divided into four catego- In addition to the printed Norwegian and English ries depending on the objective of the State's own- versions, the State Ownership Report 2010 and ership: past editions of the report are also available on the 1. Companies with commercial objectives Internet at www.eierberetningen.no. 2. Companies with commercial objectives and head office functions in Norway The report is up to date as at 31 March 2011. 3. Companies with commercial objectives and other specific, defined objectives 4. Companies with sectoral policy objectives This division of the companies is in accordance with the categorisation of companies in which the State owns a stake in Report no. 13 to the Storting (2010–2011) – Active ownership – Norwegian State ownership in a global economy. Key figures for the companies in the State's Ownership Report 2010 NOK millions. Listed Unlisted Companies with Total companies companies in sectoral policy objectives categories 1–3 (category 4) Value of the State’s shareholding1 503,276 105,699 608,975 Return last year2 8 % Profit / loss3 78,993 14,246 7,308 100,547 Weighted return on equity4 17 % 11 % Dividend5 20,522 9,680 957 31,159 Sales proceeds 0 0 0 0 Capital contributions / share purchases -4,933 -14,000 -2,187 -21,120 1 For listed companies, the values are based on market prices as at 31 December 2010 and the number of shares owned by the State at the same time.