The year 2013 was the fourth year of operation of the Iceland Enterprise Investment Fund (EIF), and the result of the year was a profit of ISK 7,636 million, as compared to ISK 6,111 in the preceding year. The Fund’s total assets at year-end amounted to ISK 35.9 billion, as compared to ISK 29.6 at the same time in 2012. Equity at year-end amounted to ISK 32.2 billion.

The Fund’s holdings in undertakings are recognised at cost price, apart from holdings in listed companies, which are stated at their market value. In the course of the year the Fund’s foreign assets, generated from sales of foreign holdings, were transferred to a separate fund, IEI slhf., which shares the same board of directors as EIF slhf. In collaboration with its auditors, the Fund has assessed the probable market value of holdings in companies in both funds’ investment portfolios at a minimum of ISK 53.6 billion, as compared to a book value of ISK 34 billion. The estimated value is based on the conclusions of impairment reviews of the underlying assets.

Alterations were made in the Fund’s asset portfolio in 2013 when a 5% share in Icelandair Group was divested, and a 24% share in N1 was sold to holders of pre-emptive rights concurrently with the company’s listing in the Iceland Stock Exchange. Following these transactions the Iceland Enterprise Investment Fund held a 7% share in Icelandair Group, which was subsequently sold early this year, and a 20.9% share in N1. The Fund also acquired a 38% share in Invent Farma ehf. In all, the Fund has invested in nine companies since its establishment, of which remained in its portfolio at year-end 2013: Advania, Icelandair, Icelandic, N1 and Promens. Proceeds from realised assets were transferred to the Fund’s owners, partly through a payment of dividends and partly through a reduction in share capital. A total of ISK 9 billion were paid to the Fund’s shareholders for the year 2013. At the Fund’s annual general meeting today a motion was approved to pay ISK 6.6 billion to shareholders in dividends. In all, the Fund has therefore paid ISK 27.5 billion to its owners, primarily Icelandic pension funds and Landsbanki.

Thorkell Sigurlaugsson, EIF Chairman of the Board: “The year 2013 proved extremely successful in the Iceland Enterprise Investment Fund’s operations. The participation by the Fund in corporate operations as a strategic investor has resulted in significant returns for the Fund’s owners. Within the group of owners ideas have been proposed of leveraging the experience and knowledge that has accumulated within the Fund to establish a new fund to be operated by the Iceland Enterprise Investment Fund. The challenges that lie ahead are different from those that confronted the Fund at the time of its establishment. The new fund would primarily be intended to participate in large-scale projects requiring active participation, such as investments in public infrastructure and extensive projects where the strength and initiative of the fund would be useful in the interest of exports, generation of foreign currency and economic development. These ideas are in their initial stages, but the positive response they have elicited is a matter of satisfaction.”

Further information:

Hafliði Helgason,Iceland Enterprise Investment Fund, tel. +354-864-6350.

Information for editorial staff:

On the Enterprise Investment Fund slhf.

The Iceland Enterprise Investment Fund is owned by sixteen pension funds, Landsbanki and VÍS, an insurance company. The Fund specialises in investments and business development. The role of the Fund is to participate in restructuring the Icelandic economy and to invest its assets in line with the Fund’s investment strategy. The Chairman of the Board of the Iceland Enterprise Investment Fund is Thorkell Sigurlaugsson, and the CEO is Brynjólfur Bjarnason, who will now step down, to be replaced by Herdís Dröfn Fjeldsted.

 

The Iceland Enterprise Investment Fund has holdings in five companies:

Company:

EIF holding

Advania

71.26%

Icelandic Group

100%

Invent Farma

38%

N1

20.9%

Promens

49.5%