2012 was the third year of operation of the Iceland Enterprise Investment Fund, and profit from the Fund’s operations amounted to ISK 6,111 million, as compared to a profit of 2,343 in the preceding year. Total assets at year-end amounted to ISK 29.6 billion, as compared to ISK 28.2 at the same time in 2011. Equity stood at ISK 29.5 billion at year end, and the equity ratio at 99.6%.

The Fund’s holdings in undertakings are entered at cost price, apart from holdings in listed companies, which are assessed at market value. The Fund’s profit over the year is explained by the increase in the market value of Icelandair Group, a profit on the sale of shares in listed companies and the sale of Plastprent. In co-operation with its auditors, the Company has assessed the probable market value of the companies in its investment portfolio at a minimum of ISK 46.7 billion, as compared to a book value of ISK 29 billion. The estimated value is based on the results of impairment reviews of the underlying assets.

The changes in the Fund’s portfolio in the course of 2012 were that Plastprent was sold, as well as a 7% share in Icelandair, and a 60% share in Vodafone (Fjarskipti hf.) was sold concurrently with the company’s listing in the Iceland Stock Exchange. Following these trades, the Iceland Enterprise Investment Fund retains a 12% holding in Icelandair, and a 19.7% holding in Vodafone. Also, the Fund increased its holdings in N1, where it now holds a 45% interest. The Fund also participated in an increase in the shares of Vodafone in 2012 prior to the company’s listing. The Fund has now invested in a total of eight companies since its establishment, with six companies remaining in the current portfolio. The companies are: Advania, Icelandair, Icelandic – which has been split into Icelandic Group and IG Investments – N1, Promens and Vodafone. The proceeds from realised assets were transferred to the Fund’s owners by means of a dividend payment and a reduction in share capital. In all, nine billion ISK were paid out to shareholders of the Iceland Enterprise Investment Fund, which means that the Fund has now paid ISK 11.7 billion to its shareholders since its establishment.

Thorkell Sigurlaugsson, Chairman of the Board of the Iceland Investment Fund: “2012 was an extremely good year for the Iceland Enterprise Investment Fund. Since its foundation, the Fund has played a significant role in the restructuring, refinancing and transfer of ownership of several key companies which had largely been taken over by banks. In the course of the year, the Fund passed the milestone of listing one of its companies in the Icelandic Stock Exchange, and it is now beyond doubt that the Fund has fulfilled the role that it was intended to play. The quality of the Fund’s asset portfolio is very good, and the company’s financial situation is arguably even stronger then the book value of its equity indicates. The assessed value of its investments is approximately ISK 46.7 billion, as compared to a book value of ISK 29 billion for the same assets.  This difference reflects the results that have been achieved in the Fund’s investments.”

Further information:

Haflidi 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. The Fund specialises in investments and business development. The role of the Fund is to participate in the reconstruction of the Icelandic economy and to invest its cash assets in line with the Fund’s investment strategy. The Chairman of the Board of the Iceland Investment Fund is Thorkell Sigurlaugsson, and the Managing Director is Brynjólfur Bjarnason.

The Iceland Enterprise Investment Fund currently has holdings in seven companies:

Company:

EIF holding

Advania

75%

Icelandair

12%

Icelandic Group

100%

IG Investments

100%

N1

45%

Promens

49.5%

Vodafone

19.70%