Kvartalsrapport. Quarterly Report

Transcription

1 Kvartalsrapport Quarterly Report Fourth Quarter

2 Summary The Group s operating revenues developed positively in Nominal growth was 2.7 % compared with Adjusted for acquisitions, currency effects and government procurements, underlying growth was 1.3 %. Operating profit before non-recurring items (EBITE) amounted to MNOK 686, a reduction of MNOK 247 compared with 2014 (26.5 %). Volumes continued to fall in the Mail segment, and the Logistics segment was affected by the reduced activity in the oil industry together with challenges in operations outside Norway, particularly within the freight area. Operating revenues in 2015 were MNOK , MNOK 670 (2.7 %) higher than in In the fourth quarter of 2015, operating revenues were MNOK 6 623, MNOK 71 (1.1 %) higher than in the same period in Operating profit (EBITE) before non-recurring items and write-downs was MNOK 686 in 2015, MNOK 247 lower than last year (26.5 %). The Group continues to focus on cost-reducing measures, but the decline in activities in the oil industry significantly affected the results for several of the Group's business areas. In the fourth quarter of 2015, operating profit before non-recurring items and write-downs (EBITE) was MNOK 214, MNOK 200 (48.3 %) lower than in the fourth quarter of On 17 March, the Group sold its share of 40 % in EVRY ASA for NOK 1.7 billion which resulted in a gain of MNOK 219. EBIT as of the fourth quarter 2015 was MNOK 239, in 2014 MNOK 844. The reduction in addition to the decline in EBITE, was due to net non-recurring items amounting to MNOK 692 in This was mainly attatched to write-downs of goodwill and provisions for losses and restructuring. EBIT for the fourth quarter of 2015 was a loss of MNOK 380. In December 2015, Posten distributed more than 3.5 million parcels, which was a new record. The Group's total e-commerce volume increased by 6 % in The return on invested capital before non-recurring items and write-downs was 9.9 % for 2015, a decrease of 4.0 percentage points compared with Delivery quality for A-mail delivered overnight in 2015was 85.4 %, 0.1 percentage points lower than in 2014 and 0.4 percentage points above the licence requirement. The delivery quality in the fourth quarter of 2015 was 85.2 %, 0.2 percentage points higher than the licence requirement. The other five licence requirements were met in the fourth quarter of Absence due to sickness at Posten Norge continued to improve and was 6.0 % in 2015, an improvement of 0.3 percentage points compared with 2014.

3 Profit development (unaudited) Q Q MNOK Year 2015 Year Operating revenues EBITDA EBIT before non-recurring items and write-downs (EBITE) EBIT Net financial items Income before taxes Net income (loss) Operating revenues outside Norway The Group s operations outside Norway had total operating revenues of MNOK in 2015, MNOK 723 (8.9 %) higher than in This represented 35.3 % of total revenues compared with 33.3 % in Operating profit EBITE for the Mail segment in 2015 was MNOK 816, MNOK 31 lower than in The volume of addressed and unaddressed mail continued to decline. EBITE in the Logistics segment in 2015 was MNOK 71, a reduction of MNOK 336 compared with The decline in profits continued in the fourth quarter due to direct and indirect effects from the decline in the oil industry, reduced profitability for the parcel business and challenges within the freight sector outside Norway. The Group's EBIT in 2015 included profit shares from EVRY ASA, Danske Fragtmænd A/S and Bring Citymail Stockholm totalling MNOK 26. In addition, a gain of MNOK 219 was recognised for the sale of the shares in EVRY ASA. Ordinary profit before taxes in 2015 amounted to MNOK 151 compared with MNOK 720 in Adjusted for preliminary estimated tax in 2015, the final result after tax was a loss of MNOK 21 compared with a profit of MNOK 449 in 2014.

4 Key financial figures (unaudited) 31 Dec Dec Equity ratio % 37,0 37,9 EBIT margin before non-recurring items and write downs % 2,7 3,8 EBIT margin % 1,0 3,5 Return on invested capital before nonrecurring items and write-downs* % 9,9 13,9 Return on equity (after tax)*** % -0,4 7,3 Net interest-bearing debt** Investments, excluding acquisitions MNOK * Last twelve months ** Net interest-bearing debt: interest-bearing debt minus cash and cash equivalents *** Based on estimated tax

5 Balance sheet (unaudited) MNOK 31 Dec Dec Non-current assets Current assets Assets held for sale Total assets Equity Provision for liabilities Interest-bearing non-current liabilities Interest-free non-current liabilities Interest-bearing current liabilities Interest-free current liabilities Total equity and liabilities Balance sheet Total investments (excluding acquisitions) in 2015 amounted to MNOK 1 154, an increase of MNOK 73 compared with The majority of the investments concerned the new logistics centre at Alnabru in Oslo. The shareholding in EVRY ASA of NOK 1.5 billion, classified as assets held for sale in the fourth quarter of 2014, was sold in the first quarter of As at 31 December 2015, the Group had net interest-bearing liabilities amounting to MNOK 213, compared with MNOK as at 31 December In order to secure financial flexibility, the Group has both committed and uncommitted credit facilities, which together with cash and cash equivalents constitutes the Group's liquidity reserve. The Group s long-term liquidity reserve as at 31 December 2015 amounted to NOK 6.4 billion compared with NOK 3.5 billion as at 31 December 2014.

6 Statement of cash flows (unaudited) Q Q MNOK Year 2015 Year Net cash flow from operating activities Net cash flow from investing activities Net cash flow from financing activities Total change in liquid assets Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period Cash flow Cash flow from operating activities in 2015 amounted to MNOK and MNOK 583 in the fourth quarter. The net cash flow from investing activities in 2015 was MNOK 490. The difference compared with last year mainly related to the sale of shares in EVRY ASA for NOK 1.7 billion. Investments totalled MNOK in 2015, including acquisitions of MNOK 122. In the fourth quarter the net cash flow from investing activities was negative by MNOK 480, of which investments were MNOK 496. The majority of the investments related to the new logistics centre at Alnabru in Oslo, the acquisition of land in Trondheim and the acquisition of Svebol Logistics AB, a thermo transport company. The net cash flow from financing activities in 2015 was negative by MNOK 998, and negative also in the fourth quarter, by MNOK 500. This was due to a net decrease in certificate loans, the issue and down-payment of bond loans, ordinary debt repayments, and the payment of dividends. The increase in cash and cash equivalents was primarily due to the sale of shares in EVRY ASA. The remaining liquidity after the down-payment of debt has been invested in money market funds.

7 Workforce The Group's workforce increased by 85 full-time equivalents in 2015 compared with In the Mail segment, the workforce was reduced by 177 full-time equivalents, primarily within mail distribution and production. The Logistics segment had an increase of 272 fulltime equivalents, mainly due to higher activity and acquisitions.

8 Market and development per segment MAIL This segment comprises letter products, banking services and dialogue services. The segment includes the Mail division and its subsidiaries in the areas of Bring Citymail, Bring Mail and Bring Dialog. Q Q MNOK (unaudited) Year 2015 Year Volume, Group (number of physical shipments in millions) Operating revenues Segment profit (EBITDA) Segment profit (EBITE) In 2015, the volume of addressed letters decreased by 6.4 %. The volume from the largest customers in bank and financing had a reduction of 6.5 % compared with As a consequence of the local government elections, volumes from the public sector increased by 0.9 % in It is expected that volumes in this sector will decline in future. During 2015, unaddressed mail declined by 5.4 % due to the loss of a major customer. New customers, as well as some volume increases from existing customers, partly compensated for the loss. Revenues in 2015 were MNOK 75 lower than in 2014, mainly due to the decline in volumes. EBITE was MNOK 31 lower than in 2014, also primarily due to the fall in volumes, but the reduction was partly offset by positive effects from cost-reducing measures. In the fourth quarter of 2015, delivery quality for A-mail delivered overnight was 85.2 %, 0.2 percentage points higher than the licence requirement of 85 %. Volumes in Bring Citymail increased by 1 % in 2015.

9 LOGISTICS This segment comprises groupage and part-load services, parcel delivery, warehousing services, temperature-controlled transport and express services. It includes the divisions Logistics Norway, Logistics Nordic and E-Commerce, which include operations in Bring Cargo, Bring Linehaul, Bring Warehousing, Bring Frigo, Bring Express, Bring Parcels and Bring Supply Services. Q Q MNOK (unaudited) Year 2015 Year Operating revenues Segment profit (EBITDA) Segment profit (EBITE) Operating revenues in the Logistics segment in 2015 exceeded last year by MNOK 836, of which organic growth constituted 2.4 %. The growth mainly came from the Nordic operations. Reduced activity in the oil industry had a considerable negative impact on logistics operations in Norway, both directly within the business area Offshore & Energy and indirectly in other areas. The EBITE in the Logistics segment in 2015 was MNOK 336 lower than in 2014, mainly due to weaker markets in Norway, and a shift towards services with lower margins. In addition, parcel profitability declined. Market conditions related to the logistics operations in Sweden and Denmark were challenging in 2015, mainly within the freight sector. The increase in private e-commerce continued throughout 2015 and contributed to a growth of 6 % in the Group's total e-commerce volume. The Group is investing in new terminals, and the building of the new logistics centre at Alnabru in Oslo is proceeding as planned. It is expected that some operations will move in during the second quarter of 2016.

10 Other matters HSE The Group has adopted a long-term, systematic approach towards sustainability, with a particular focus on health, safety and the environment (HSE), in addition to climate and diversity issues. In the fourth quarter of 2015, absence due to sickness was 5.9 %, a reduction of 0.2 percentage points compared with Absence due to sickness in 2015 was 6.0 %, a decrease of 0.3 percentage points compared with The total number of personal injuries was 69 in the fourth quarter of 2015 compared with 92 last year, a reduction of 25 %. LTIFR (the number of personal injuries per million workhours) was 8.4 in the fourth quarter of 2015, a reduction of 3.2 from last year. The external environment The Group continues its efforts to achieve a 40 % reduction in CO 2 emissions before Posten introduced CO 2 -free mail distribution in central areas in 21 towns/communities in 2015 and is following up with an additional 20 areas in In addition to the introduction of electric vehicles, Posten is working on replacing fossil fuel with renewable diesel on several heavy trucks. This will reduce CO 2 emissions significantly in the future. Other matters A new Postal Services Act was adopted by the Norwegian Parliament on 15 June 2015, and became effective from 1 January 2016 together with the associated regulations. The Act means that Posten's limited monopoly for delivering addressed letters below 50 grams was revoked as from 1 January 2016, whilst the grant for government procurements of unprofitable delivery services was retained. The new Act also allows for the discontinuance of mail distribution on Saturdays. The authorities will ensure however that the distribution of newspapers on Saturdays can continue in areas without alternative newspaper distribution networks, either through competitive measures or by appointing a concessionregulated supplier. Posten believes that the new legislation provides a good framework for a continued development of services in line with changed consumer needs, and thereby contributes to strengthen the Group's competitiveness. Posten will discontinue ordinary mail distribution on Saturdays as from Saturday 5 March The Ministry of Transport and Communication has asked for tenders for the distribution of newspapers on Saturdays in areas without any alternative newspaper distribution. Until this solution comes into operation, probably towards the end of 2016, the Ministry has instructed Posten via a temporary licence dated 23 December 2015 to ensure that newspapers delivered regionally or locally shall be distributed on Saturdays. This temporary licence is effective from 1 January 2016 and runs until the Ministry has contracted with or appointed a concession-regulated supplier to deliver postal services. In the Government's fiscal budget for 2015, MNOK 418 was granted to government procurements of commercially non-viable postal services necessary for society, in line with Norway Post's own estimated calculations. In the fiscal budget for 2016, MNOK 363 has been granted to government procurements of commercially non-viable postal services.

11 As a result of the recalculation of government procurements for 2014, Posten Norge refunded MNOK 39 in the fourth quarter of In the Government s fiscal budget for 2016, there is an assumption of a MNOK 320 dividend for the 2015 financial year. Future prospects A continued decline in volumes in the Mail segment as a consequence of digitalisation, together with an economic downturn and uncertain market conditions in the Logistic segment, will impact the Group's revenues and profit negatively. The reduced activity in the oil industry is affecting the development of the logistics market in Norway, and this negative development is expected to continue. The profitability challenges will necessitate cost adjustments for parts of the operations. In this regard, a process to reduce costs within the Group's administration and support functions has been started, with the objective of reducing the number of full-time equivalents by ca This workforce reduction is an adjustment to the market situation and other changes in the Group's operations. The process is being carried out in close dialogue with the employees' organisations. As part of co-ordinating operations in the Group, achieving environmental goals and strengthen the competitiveness, investments are made in new joint terminals in Norway. In the fourth quarter, it was decided to invest MNOK 330 in a new terminal in Stokke. The terminal will improve co-ordinated operations and customer service, and above all will contribute to achieving Posten's and Bring's environmental goals. The terminal is expected to be completed in By the end of the first quarter 2016, all public entities will in the first instance be required to communicate digitally with the Norwegian population. As a consequence, the decline in addressed mail from the public sector is expected to continue. Digipost, Posten's solution for secure electronic mail, is as secure as online banking and free of charge to end users. At the end of the fourth quarter, Digipost had over users. Oslo, 18 February 2016 The Board of Directors of Posten Norge AS

12 Attachment 1 Financial information for the fourth quarter 2015 (The information in this document has not been audited. All figures are in MNOK.) Condensed income statement Q4 Q4 Posten Norge Note Year Year Operating revenues Cost of goods and services Payroll expenses Other operating expenses EBITDA Depreciation and amortisation EBIT - Earnings before non-recurring items and write downs Other income and (expenses) 6, Share of net income (losses) using the equity method EBIT - Earnings before interest and taxes Financial income Financial expenses Net financial items Income before taxes Taxes Net income (loss)

13 Condensed statement of comprehensive income Posten Norge Q Q Year 2015 Year 2014 Net income for the period Items that will not be reclassified to income statement Changes in pension estimates Tax Total items that will not be reclassified to income statement Items that later will be reclassified to income statement Translation differences: Result of hedging of foreign entities Tax Translation differences from hedging of investments of foreign entities Cash flow hedging: Changes in value Transferred to income Tax Total items that later will be reclassified to income statement Other income/(costs) using the equity method Other income/costs (-) directly included in equity Comprehensive income Total comprehensive income is distributed as follows: Controlling interests Non-contolling interests

14 Condensed balance sheet Posten Norge Note 31 Dec Dec Assets Intangible assets Deferred tax asset Tangible assets Financial assets Total non-current assets Receivables and other current assets Liquid assets Current assets Assets held for sale 3, Total assets Equity and liabilities Equity Provisions for liabilities Interest-bearing non-current liabilities 5, Interest-free non-current liabilities Long-term liabilities Interest-bearing current liabilities Interest-free current liabilities Short-term liabilities Total equity and liabilities

15 Condensed statement of equity Controlling interests Posten Norge Share capital Share premium reserves Hedging reserves Translation differences Other equity Total Noncontrolling interests Total equity Equity at 01 Jan Net income for the period Other comprehensive income/(loss) for the period Total comprehensive income Dividend Other equity transactions Equity at 31 Dec Equity at 01 Jan Net income for the period Other comprehensive income/(loss) for the period Total comprehensive income Dividend Other equity transactions Equity at 31 Dec

16 Condensed statement of cash flows Posten Norge Year 2015 Year 2014 Income before taxes Tax paid Gain/loss from sale of fixed assets and subsidiaries Depreciation and write-downs Share of net income from investments using the equity method Other operating and financial non-cash items Changes in other receivables and provisions Interests received Interests paid Net cash flow from operating activities Investments in intangible and tangible assets Investments in shares Sales of intangible and tangible assets Sales of tangible shares Dividends from investments using the equity method 46 Changes in other fixed assets Net cash flow from investing activities Non-current and current debt raised Repayment of non-current and current debt Decrease/increase bank overdraft -136 Group contributions/dividends paid Changes in other financial activities Net cash flow from financing activities Total change in liquid assets Cash and cash equivalents at the start of the period Cash and cash equivalents at end of period

17 SELECTED ADDITIONAL INFORMATION General Posten Norge AS was established as a company on 1 December 1996 and is today a Norwegian-registered limited liability company with the Norwegian State, represented by the Ministry of Transport and Communication, as its sole shareholder. Posten Norge AS' address is Biskop Gunnerus gate 14, 0001 Oslo, Norway. This condensed interim report has been prepared in accordance with the IFRS (International Financial Reporting Standards) approved by the EU and complies with the prevailing IAS 34 accounting standard for interim financial reporting. The condensed interim financial accounts do not provide complete note disclosures as required for annual financial statements. Accordingly, this report should be read in conjunction with the annual financial statements. As of the first quarter 2015, the quarterly report only contains financial information for Posten Norge Group. Financial information for the parent company is not reported separately. Accounting principles The interim financial statements have been prepared in accordance with the same accounting principles as stated in the 2014 annual report, with the following exceptions: Tax The tax cost in the interim financial statements is based on the estimated tax rate for the year (27 %). Ordinary corporate tax for companies resident in Norway was reduced from 27 % to 25 % effective from The 25 % tax rate is the basis for the calculation of the value of the deferred tax benefit for the Group's Norwegian companies. New or amended standards that have been applied from 1 January 2015 None of the adopted standards or interpretations effective from 1 January 2015 has any significant impact on the consolidated accounts. Standards issued but not yet effective IFRS 9 Financial Instruments concerns the classification, measurement and recognition of financial assets and liabilities, as well as hedge accounting. The standard will be effective for the 2018 financial year, but has not yet been approved by the EU. The Group has not fully assessed the impact of IFRS 9, but no significant effect on the consolidated financial statements is expected. IFRS 15 Revenue from Contracts with Customers concerns revenue recognition. The standard will be effective for the 2018 financial year, but has not yet been approved by the EU. The Group has not fully assessed the effect of IFRS 15, but no significant effect on the consolidated financial statements is expected. IASB has issued the new standard, IFRS 16 Leases. The new standard changes the requirements for recognising lease agreements for the lessee. All lease agreements (with some minor exceptions) shall be recognised as a "right to use" asset in the lessee's balance

18 sheet with the corresponding obligation, and the lease agreement's payments shall be recorded as amortisations/down payments and interest expense. The "right to use" asset will be amortised over its expected economic lifetime. The accounting requirements for lessors are unchanged. There are changes also concerning the requirement for additional information. The new standard will be effective for the accounting year 2019, but has not yet been approved by the EU. The Group has not yet fully assessed the effects of IFRS 16, but a process for this has been started. Posten's initial assessment is that this new standard to a large degree will change the accounting of lease contracts in the Group, most significantly for lease agreements related to buildings and terminals and for the Group s car fleet. No other issued standards or interpretations not yet effective are expected to have any significant impact on the Group's financial statements. Estimates and assessments In the preparation of the interim financial accounts, management has used estimates and assumptions affecting revenues, expenses, assets and liabilities. Areas in which such estimates and assessments can have an impact include goodwill, other intangible assets, tangible fixed assets, pensions, provisions and tax. The sources of uncertainty concerning estimates are the same as for the 2014 financial statements. Future events may result in changes in the estimates, and these changes will be recognised in the accounts once any new estimate has been determined. The annual report for 2014 is available at NOTES TO THE ACCOUNTS Note 1 Segment information Posten Norge's operations are divided into two segments, Mail and Logistics. The Group's segments are reported by areas whose operating results are regularly reviewed by the Board of Posten Norge AS. The objectives are to enable the Board to decide which resources should be allocated to the segment and to assess its earnings. Internal revenues are turnover between segments in the Group. The pricing of transactions with other segments is based on normal commercial terms and conditions as if the segments were independent parties. Deferred tax assets are not included in allocated assets, and deferred tax and interest-bearing liabilities are not included in allocated liabilities. The segments are described in more detail in the 2014 annual report.

19 Operating revenues and EBIT per segment Total operating revenues Q Q Year 2015 Year 2014 External operating revenues Internal operating revenues Mail External operating revenues Internal operating revenues Logistics External operating revenues Internal operating revenues Other/eliminations Posten Norge EBITDA Q Q Year 2015 Year 2014 Mail Logistics Other/eliminations Posten Norge EBITE Q Q Year 2015 Year 2014 Mail Logistics Other/eliminations Posten Norge EBIT Q Q Year 2015 Year 2014 Mail Logistics Other/eliminations Posten Norge

20 Assets and liabilities per segment 31 Dec Mail Logistics Other / Eliminations* Posten Norge Segment assets Non allocated assets Total assets Segment liabilities Non allocated liabilities Total liabilities Dec Segment assets Non allocated assets Total assets Segment liabilities Non allocated liabilities Total liabilities * The change in Other/Eliminations from 31 December 2014 to 31 December 2015 is due to the sale of the shares in EVRY ASA. Note 2 Intangible assets and tangible fixed assets Posten Norge Intangible assets Tangible assets Total at 01 Jan Additions Additions from acquisitions Disposals -63 Depreciation Write-downs Translation differences Total at 31 Dec Investments in 2015, excluding the acquisition of businesses, totalled MNOK Investments in IT related equipment amounted to MNOK 115 of the investments in intangible assets. MNOK 963 of the MNOK invested in tangible fixed assets concerned the Logistics segment. Investments in buildings and property totalled MNOK 630, with the largest project being the building of a new logistics centre at Alnabru in Oslo, (MNOK 508). Investments in other fixed assets included terminal equipment, vehicles and other operating equipment. By acquiring businesses, of which Posten Eiendom Trondheim AS (formerly Kvenild Eiendom AS) and Svebol Logistics AB were the largest, Posten took over intangible assets and tangible fixed assets amounting to MNOK 193. In the fourth quarter, the Group's goodwill was written down by MNOK 360.

21 Note 3 Held for sale In December 2014, Posten decided to sell its 40 % share in EVRY ASA, and the investment was therefore reclassified as held for sale in the consolidated accounts as at 31 December The share transaction took place in the first quarter of 2015 (note 9). Posten has no significant assets classified as held for sale at 31 December Note 4 Equity As at 31 December 2015, the share capital consisted of shares at a nominal value of NOK All the company's shares are owned by the Norwegian State, represented by the Ministry of Transport and Communication. The General Assembly in June 2015 approved a dividend of MNOK 225 of the profit, together with an extraordinary dividend payment of MNOK 75, totalling MNOK 300. The dividend complies with the Norwegian Companies Act's requirements for sound equity and liquidity. Note 5 Interest-bearing long-term and short-term liabilities The increase in the consolidated non-current interest-bearing liabilities from 31 December 2014 to 31 December 2015 of MNOK 210 was primarily due to the issue of bonds amounting to MNOK and a reclassification of the first year's instalment of noncurrent interest-bearing liabilities to current liabilities. Current interest-bearing liabilities had a net reduction of MNOK 736 from 31 December 2014 to 31 December This was due to a net reduction in certificate loans of MNOK 1 300, a repurchase of the company's own bond of MNOK 298, and a reclassification of MNOK 830 from non-current liabilities to current liabilities. As at 31 December 2015, none of the Group s overdraft facilities had been used. The average interest rate on Posten's outstanding interest-bearing liabilities was 2.7 % as at 31 December 2015.

22 Note 6 Other income and expenses Other income and expenses include non-recurring items, restructuring costs and writedowns of both intangible and tangible assets. The purpose of this line in the accounts is to show significant non-recurring and irregular items separately, thereby making the development and comparability of the operating items presented in EBIT before nonrecurring items and write-downs more relevant for the business. Q4 Q4 Posten Norge Year Year Write-downs Gain/(loss) from sale of fixed assets etc Other income and (expenses ) Total other (income) and expenses The write-downs in 2014 as well as 2015 mainly concerned the impairment of Group goodwill in the Logistics segment. Other income and expenses in 2015 primarily comprised a provision for loss contracts related to the Group's thermo warehousing business, reorganisation costs in the Logistics segment, reorganisation costs in the Mail segment as a consequence of the new Postal Act, and costs in the settlement of the court case between Schenker and Posten. Gain/loss from the sale of fixed assets etc. in 2015 mainly related to ordinary sales of tangible fixed assets and buildings. Gain/loss from the sale of fixed assets etc. in 2014 mainly related to the gain on the sale of the subsidiary Posten Eiendom Storbyer AS. Note 7 Significant transactions with related parties The Group s transactions with related parties have been carried out as part of ordinary operations and at arm s length prices. The Group's transactions with related parties were considerably reduced when Posten Norge AS sold its share in EVRY ASA in March Other transactions with related parties were insignificant. The 2014 financial statements have more details about related parties.

23 Note 8 Fair value measurement The fair value of financial assets and liabilities is calculated in line with the methods and assumptions, as well as the fair value hierarchy, used in previous years. This is described in more detail in the 2014 annual report. The Group had the following financial assets and liabilities measured at fair value at the end of 2015: Assets at fair value Fair value measurement per Total Level 1 Level 2 Level 3 31 Dec Dec Financial assets at fair value through profit og loss: Liquid assets Derivatives at fair value: Cash flow hedging/investment in foreign subsidiaries Other economic derivatives (Derivatives not included in IFRS hedging relationships) Total assets Liabilities at fair value Fair value measurement per Total Level 1 Level 2 Level 3 31 Dec Dec Financial liabilities at fair value through profit or loss: Loan Derivatives at fair value: Cash flow hedging/investment in foreign subsidiaries Other economic derivatives (Derivatives not included in IFRS hedging relationships) Total liabilities Level 1: Listed prices. Level 2: Other observable input, direct or indirect. Level 3: Non-observable input. The fair value of financial instruments not measured at fair value in the balance sheet is described in more detail in the 2014 annual report. Significant differences between amortised cost and fair value are not assumed to exist. There have been no transfers between the levels in the fair value hierarchy since last year. Note 9 Changes to the Group's structure Acquisition of subsidiary In March 2015 the Group acquired 100 % of the transport company Bring Linehaul AB (formerly JK Transport AB). The acquisition was primarily made to expand the logistics services in the Stockholm area. The company has 9 employees and had revenues amounting to MSEK 17 in In October 2015, the Group acquired 100 % of Posten Eiendom Trondheim AS (formerly Kvenild Eiendom AS). The purchase included a site where the Group will build its new Trondheim logistics centre. The terminal will be ready in 2017 and employ nearly 500 people. The company had no activities at the time of the acquisition.

24 In the beginning of December 2015, the Group purchased 100 % of the Swedish logistics company Svebol Logistics AB, whereby Bring strengthened its position and competence within thermo transport. The company has 76 employees and had revenues totalling MSEK 74 in Sale of shares in associated companies In December 2014, the Group decided to accept an offer for the shares in EVRY ASA and sell its holding of 40 %. The share transaction was carried out in March 2015 at a consideration of NOK 1.7 billion, resulting in a recorded gain of MNOK 219. Other changes to the Group's structure A business transfer of the groupage and part loads operations in Bring Cargo AS to Posten Norge AS was made with effect from 1 January Effective from 1 July 2015, customer and supplier agreements in Bring Gudbrandsdalen AS (formerly Kirkestuen AS) transferred to Posten Norge AS.