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Kvartalsrapport 4. kvartal 2010

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  • 1. Acta Holding ASA.Interim Report.4th quarter 2010.16 February 2011.
  • 2. Moving back to profitabilityThe last quarter of 2010 showed significant improvements in Acta’s operations. By the end of 2010, Acta’sclients have invested NOK 7.3 billion through the portfolio account, which makes the new business modela profitable success. Further, real estate companies owned by Acta’s clients sold 11,100 apartments inSweden, making it the largest real estate transaction in Sweden last year. The selling price is slightly above7 billion Swedish kroner, securing a profit of approximately 1.3 billion Swedish kroner to Acta’s clients.The portfolio account success continuesGross subscriptions ended at approximately NOK 1 billion in the quarter. Acta’s main focus, especially for theSwedish organization, has been on informing and advising clients about the advantages the portfolio accountimplies for active clients. By the end of 2010, Acta’s clients have invested 23 per cent of their equity through theportfolio account. These figures imply more than NOK 75 million in increased annual recurring revenues for Acta.- The repositioning of Acta with the introduction of the portfolio account has been a success. With more than NOK7.3 billion placed in the portfolio account during half a year, we have laid the foundation for reaching our ambitionsto have 50 per cent of clients’ equity invested through the portfolio account during 2012, and 75 per cent by 2014,says Geir Inge Solberg, CEO of the Acta Group.Sweden’s largest real estate transactionIn December 2010 it was announced that a large portfolio of real estate rentals in Sweden, consisting ofapproximately 11,100 apartments which were owned by Actas clients, were sold to Willhem AB. Despite thefinancial crisis, the investments, which were launched in 2003, have yielded very good returns. Acta’s clients haverealized a profit of approximately SEK 1.3 billion, or returns between 85 and 93 per cent, depending on the client’slocation in Norway or Sweden, respectively. Acta Markets has, together with others, been a financial advisor in thetransaction.- Compared with similar investments in real estates in the same period, we are proud to present annual returns of11 to 12 per cent to our clients. We expect many of our satisfied clients to reinvest part of the equity they nowreceive in other products offered by us, says Solberg.Acta going forwardActa will be active with respect to providing clients with first class advisory services, combined with a focus oninforming and advising clients about the portfolio account concept. As recurring revenues continue to increase,which makes Acta less dependent on transaction-related revenues, the operational risk for Acta going forward issignificantly reduced. Acta has ambitions of reaching the Group’s new strategic goal, which is to have recurringrevenues to cover both activity-based and fixed costs on an annual basis in 2011.Highlights in the 4th quarter 2010• Profitable new business model successful• NOK 7.3 billion placed in the portfolio account as of year-end 2010• Recurring revenues of NOK 86 million, compared with NOK 72 million in the corresponding quarter of 2009• Total recurring revenues in 2010 were NOK 295 million, and, for the first time, Acta reached its strategic goal to have recurring revenues to cover fixed costs for the full year.• Operating earnings of NOK 1 million, compared with NOK -9 million in the same period of 2009. Operating earnings for 2010 ended at NOK -27 million.• Gross subscriptions of NOK 970 million, compared with NOK 1,032 million in the same period in 2009. Total gross subscriptions in 2010 were NOK 2,850 million.• Major profits to clients from property sales Page 2 of 14 4th quarter 2010
  • 3. Main figures Gross subscriptions (MNOK) 1,200Gross subscriptions of NOK 970 million 1,000in the fourth quarter and NOK 2,850 million for theyear 2010, compared with NOK 1,032 million in the 800fourth quarter of 2009 and NOK 3,161 for the year 6002009, respectively. Acta’s main focus, especially in the 400Swedish organization, has continued to be oninforming and advising clients about the advantages 200the portfolio account implies for active clients. The 0number of advisors and brokers at the end of thequarter was 153 compared to 146 as of year-end2009. This corresponds to a gross subscription per Revenues (MNOK)advisor of NOK 6 million in the quarter, up from NOK 2 160 2009 2010million in the previous quarter. The products most in 140demand were Mutual funds, followed by Structuredproducts. 120 100Revenues of NOK 130 million 80in the fourth quarter and NOK 428 million for the year, 60compared with NOK 113 million and NOK 489 million 40for the fourth quarter of 2009 and the full year of 2009, 20respectively. The increase reflects higher recurring - 1Q 2Q 3Q 4Qrevenues due to the new long-term business model. Operating earnings (MNOK) 2009 2010Operating earnings of NOK 1 million 10in the fourth quarter and NOK -27 million for the whole 5year, compared with NOK -9 million and NOK -36 0million for the fourth quarter of 2009 and the full year (5) (10)of 2009, respectively. Earnings per share were NOK (15)0.00 in the quarter compared with NOK -0.04 in the (20)fourth quarter of 2009. The improvement in operating (25)earnings is a result of an increase in operating (30)revenues compared with the corresponding quarter (35)last year, where the introduction of the new long-term (40)business model is the main explanatory variable. 1Q 2Q 3Q 4Q Assets under management (BN NOK) 90.0Assets under management at NOK 67 80.0billion, 70.0compared with NOK 73 billion as of 31 December 60.02009 and NOK 70 billion at the end of September 50.02010. The reduction in AuM of approximately NOK 3billion since 30 September is primarily related to the 40.0maturity of NOK 2.2 billion in Structured products, 30.0combined with an unrealised negative currency effect 20.0in the Real estate portfolios. 10.0 0.0Disclaimer:Unaudited 4Q figures and preliminary 2010 figures. No forward-looking statements in this report must beunderstood as any guarantees for the future. Page 3 of 14 4th quarter 2010
  • 4. Clients Return on clients investmentsActa’s client base remains stable, and by the end of Benchmark BenchmarkDecember 2010, the total number of clients was 4Q 2010 2010 4Q10 201089,000, of which 37,000 are located in Norway and Mutual funds "core" 9.9% 16.0% 8.7% 11.9%52,000 in Sweden. The total number of clients is at Mutual funds "spicy" 8.7% 19.7% 7.1% 16.4% Real estate 8.5% 5.2% 2.3% 9.0%the same level as reported in the previous quarters.Going forward, Acta will segment its clients accordingto which level of service they receive: advisory Subscriptions and assets under managementclients, brokerage clients or customer centre clients. Acta experienced a positive development in grossAs of year-end 2010, approximately one-third of the subscriptions throughout the last quarter of 2010customer base is advisory clients, one-third of the compared with the previous quarters. Reported grosscustomer base is brokerage clients and one-third of subscriptions in the fourth quarter of 2010 were NOKthe customer base is serviced via customer centres. 970 million, compared with NOK 354 million in the third quarter of 2010 and NOK 1,032 million in theActa has dedicated a great deal of resources to fourth quarter of 2009, respectively. The number ofstrengthen positive relations with clients, and over the advisors at the end of the fourth quarter of 2010 waspast few months we have experienced an 153, which is seven more than the correspondingimprovement in the clients’ satisfaction index. quarter last year. These figures correspond to a gross subscription per advisor of NOK 6 million in theIn the upcoming quarters, Acta will continue to hold a fourth quarter of 2010, up from NOK 2 million in thestrong focus on activities related to marketing and previous quarter. The corresponding figure in theinforming clients about the advantages the portfolio fourth quarter of 2009 was NOK 7 million. Theaccount represents for active clients. increase in subscription levels compared to previous quarters is encouraging, especially since the mainReturn on clients’ investments focus for the advisory force has been on the portfolioClient investments in the “core” and “spicy” Mutual account in the period.fund selections yielded returns of 9.9% and 8.7%,respectively, for the fourth quarter, compared with the Mutual funds was the asset class most in demand,Morgan Stanley World Index return of 8.7% and the followed by Structured products, with grossMorgan Stanley Emerging Markets Index return of subscriptions of NOK 738 million and NOK 81 million,7.1 %, respectively. respectively. The comparable figures for the corresponding quarter last year were NOK 671The volume-weighted average return for the Real million for Mutual funds and NOK 17 million forestate products in the fourth quarter was 8.5%, Structured products. Real estate was the third mostcompared with the portfolio target of 2.3%. Real popular asset class with gross subscriptions of NOKestate project valuations are updated quarterly, 74 million, compared with NOK 143 million in thebased on estimates from independent brokers, or corresponding quarter of 2009.official bids for single properties or portfolios of Assets under management (BN NOK)properties. 90.0 80.0In December, it was announced that companiesowned by Acta’s clients sold a large portfolio of 70.0Swedish real estate rentals consisting of 60.0approximately 11,100 apartments to the Swedish 50.0investment company Willhem AB. The transaction 40.0totals more than SEK 7 billion, and represents the 30.0largest real estate transaction in Sweden, and the 20.0third largest in the Nordic region in the course of 10.02010. Despite the financial crisis, the investments, 0.0which were launched in 2003 have yielded very goodreturns in the investment period. In total, the clientshave realized a profit of approximately SEK 1.3 Assets under management at year-end 2010billion, or returns between 85% and 93%. Acta amounts to NOK 67 billion. The AuM was reduced byexpects many of its satisfied clients to reinvest part of NOK 3 billion during the fourth quarter of 2010. Thethe equity in other investment products offered by the drop since 30 September is primarily related to theActa Group. maturity of NOK 2.2 billion in Structured products combined with an unrealised negative currency effect in the Real estate portfolios. Gross subscriptions of approximately NOK 1.0 billion and positive return in Page 4 of 14 4th quarter 2010
  • 5. other asset classes made a positive contribution to Revenues (MNOK)the AuM figures. 2009 2010 160Real estate is still the largest asset class with total 140assets of NOK 44 billion, NOK 13 billion of which 120represents client equity, and NOK 31 billion of whichrepresents project-related debt. After the completion 100of the real estate sale in Sweden, the real estate 80assets are expected to be reduced by approximately 60NOK 6 billion. A significant part of the equity is 40however expected to be reinvested in various assetclasses. The second largest asset class is Unit 20linked, where Acta has NOK 6 billion under -management. Shipping is the third largest asset class 1Q 2Q 3Q 4Qwith total assets of NOK 5 billion. Acta has NOK 2 The overall increase in recurring revenues mainlybillion under management in Structured products, reflects an increase in recurring revenues due to thedown from NOK 10 billion as of year-end 2009. new long-term business model which has been successfully implemented. Recurring revenues were Assets under management per asset class (NOK billion) NOK 86 million in the fourth quarter, compared with NOK 74 million and NOK 72 million in the previous 2 2 1 5 quarter and the fourth quarter of 2009, respectively. 5 The increase in recurring revenues, despite the fact 6 that assets under management have been reduced by NOK 6 billion since last year, is driven by the new 2 long-term business model. For the year as a whole, recurring revenues ended at NOK 295 million, which is approximately at the same level as the full year 44 2009 figures (NOK 293 million). Recurring revenues covered 114 % of fixed costs in the fourth quarter of Other Shipping Mutual/Hedge Funds 2010, and 101 % of fixed costs for the year as such. Unit linked Structured products Real estate Thus, for the very first time, Acta has reached its Private Equity Infrastructure strategic goal to have recurring revenues to exceed fixed costs on an annual basis. Acta expects to meetFinancial summary (MNOK) this goal for the year 2011 too, and has even set a 4Q10 4Q09 2010 2009 new goal where recurring revenues are to cover bothTransaction-related revenue 42 40 130 195 fixed costs and activity-based costs for the year as aRecurring revenue 86 72 295 293 whole.Other revenue 1 1 3 2Total revenue 130 113 428 489 Virtually all products distributed by Acta now contain an element of recurring fees.Variable operating costs 23 11 56 47Activity-based costs 24 26 83 93 Gross margins – transaction-related revenuesFixed operating costs 75 81 292 359 relative to gross subscriptions – were 4.4% and 3.9%Depreciation a.o. 8 4 24 27 for the fourth quarters of 2010 and 2009,Operating earnings 1 -9 -27 -36 respectively. The transaction margin is expected to be significantly reduced going forward as moreNet financial items 1 -1 6 -9 transactions will be within the portfolio account.Net income before tax 2 -10 -21 -45Tax 2 -1 -4 -9 Operating costsNet income 0 -9 -17 -36 Total operating costs including depreciation were NOK 129 million in the fourth quarter of 2010,Revenues (figures for 2009 in brackets) compared with NOK 122 million in the correspondingTotal revenues for the Group ended at NOK 130 quarter last year.million in the fourth quarter of 2010 (NOK 113million). Transaction-related revenues were NOK 42 Variable and activity-based costs in the fourth quartermillion (NOK 40 million), with revenues from Real of 2010 ended at NOK 23 million and NOK 24 million,estate and Unit linked being the major contributors. respectively, which is a total increase of NOK 10Transaction revenues from Real estate are positively million or 26 %, compared with the equivalent quarteraffected by fees generated due to investments made of 2009.in the real estate portfolios. Page 5 of 14 4th quarter 2010
  • 6. The increase in variable operating costs is a result of Norwayextensive resources allocated to the implementation Acta Norway showed a positive development in theof the new business model. Variable operating costs fourth quarter with respect to subscription volumeswill continue to be affected by the new business compared with third quarter figures. Reported grossmodel in the upcoming quarters. Fixed operating subscriptions for the quarter were NOK 594 million,costs were NOK 75 million, which is down from NOK which is up NOK 406 million from the previous81 million in the corresponding quarter last year. quarter, and approximately at the same level as theDepreciation was NOK 8 million, compared with NOK corresponding quarter last year where gross4 million for the same quarter in 2009. subscriptions ended at NOK 593 million. Subscription volumes is at a satisfactory level, especially whenAt year-end Acta had 268 employees, which is taking into account that the focus for the Norwegianexactly the same number as in the third quarter. In organisation in the quarter has continued to be onaddition to these figures, 15 people have been hired informing and advising clients about the portfolioon a temporary basis. account. As of 31 December 2010, approximately NOK 5.8 billion was placed in the portfolio account onOf the total fourth quarter operating costs, 18% are behalf of approximately 3,600 clients, whichvariable, while 18% are activity-based and thus manifests the success of the account type.scalable. Acta’s focus on increasing the Group’srecurring revenues has now materialised, and Acta is Gross subscriptions per advisor totals NOK 8 millionless dependent on transaction-based revenues. The in the fourth quarter of 2010, compared with NOK 9operational risk for Acta going forward is thus million in the same quarter in 2009. The number ofconsiderably reduced. Recurring revenues covered advisors and brokers has increased by four since 3187% of total fixed and activity-based costs in the December 2009. The total number of employees isfourth quarter, compared with 67% for the 149. The asset classes most in demand by clients incorresponding quarter last year. Acta has ambitions the fourth quarter were Mutual funds with a grossof reaching the Group’s new strategic goal, which is subscription of NOK 499 million, followed by Realto have recurring revenues to cover both activity- estate with NOK 61 million.based and fixed costs on an annual basis in 2011. Total revenues for the fourth quarter ended at NOKOperating earnings 83 million (NOK 62 million), and operating earningsOperating earnings in the fourth quarter of 2010 ended at NOK 3 million (NOK -2 million). Theended at NOK 1 million, compared with NOK -9 increase of NOK 5 million in operating earningsmillion in the equivalent quarter last year. The reflects NOK 21 million in higher revenues, partlyimprovement from 2009 is, as commented on above, offset by NOK 13 million in increased variabledriven by an increase in both transaction-based and operating costs and NOK 2 million in increased fixedrecurring revenues, combined with a reduction in and activity-based costs. Activity-based costs havefixed operating costs, partly offset by an increase in increased due to higher market activities and the risevariable operating costs and in depreciations. in variable operating costs is a result of extensive resources allocated to the implementation of the newNet income in the fourth quarter was NOK 0 million business model.(NOK -9 million), which translates to an EPS of NOK0.00, compared with NOK -0.04 in the corresponding Swedenquarter of 2009. As of 1 November 2010, Arturo Arques assumed his Operating earnings (MNOK) position as Country Manager in Sweden. 2009 2010 10 Acta’s Swedish organisation has also experienced a 5 positive development in the fourth quarter. Reported 0 gross subscriptions totals NOK 376 million, which is (5) NOK 211 million more than third quarter figures. In (10) the fourth quarter of 2009, gross subscriptions ended (15) at NOK 439 million. In addition, the advisory force (20) has kept its main focus on the portfolio account which (25) was introduced to Swedish clients in September (30) 2010. As of 31 December, approximately NOK 1.5 (35) billion has been placed in the portfolio account on (40) 1Q 2Q 3Q 4Q behalf of approximately 2,000 clients.Total comprehensive income in the fourth quarter of Gross subscriptions per advisor totals NOK 5 million2010 was NOK 1 million, compared to NOK -9 million in the quarter, compared with NOK 2 million thein the equivalent quarter of 2009. previous quarter and NOK 6 million the Page 6 of 14 4th quarter 2010
  • 7. corresponding quarter last year, respectively. The New marketsnumber of advisors and brokers has increased by New markets include Acta’s operations in Denmarkthree since 31 December 2009, and now totals 79 which contributed to operating earnings in the fourthpeople. The total number of employees is 118. The quarter of NOK -0.3 million, compared with NOK -1.1asset classes most demanded by clients in the million in the corresponding quarter of 2009. Goingquarter were Mutual funds with a gross subscription forward, Acta’s Danish customers will be servicedof NOK 239 million, followed by Structured products from the customer centre in Stavanger instead ofwith NOK 81 million. from Copenhagen.Revenues for the fourth quarter of 2010 were NOK Corporate46 million, compared with NOK 51 million in the Acta Holding ASA and Acta Corporate Services AScorresponding quarter of 2009. Operating earnings (Finance, Accounting, HR, Compliance, IT andwere NOK -3 million, compared with a break even Marketing) had operating earnings of NOK 0.2 millionresult in the same quarter of 2009. The reduction of in the fourth quarter of 2010 after the allocation ofNOK 3 million in operating earnings reflects NOK 5 shared costs, compared with NOK -6 million in themillion in reduced revenues, partly offset by a equivalent quarter of 2009.reduction in fixed and activity-based costs of NOK 2million and a reduction in variable operating costs of Balance sheetNOK 1. Total assets at the end of the fourth quarter of 2010 were NOK 444 million, up from NOK 394 million inActa Sweden’s contribution to Acta’s total gross the previous quarter of 2010. Consolidated equity assubscriptions was 40% for the fourth quarter of 2010, of 31 December 2010 was NOK 329 million,compared with 43% in the corresponding quarter of compared to NOK 321 million at the same time last2009. year and NOK 327 million as of 30 September 2010. The increase in equity is primarily related the reversalThe Board and the Management are still not satisfied of stock options costs, which is included in the netwith the performance of the Swedish operations, and income, as they do not have an equity effect.measures to improve profitability have beenimplemented. The new management team has been Acta has very limited risk on its balance sheet. Theset, and the organisation will maintain a strong focus Group’s liquidity situation is still strong, with net bankon high client activity in the upcoming quarters. deposits of NOK 245 million at the end of the financial year 2010.Regarding the case involving dissatisfied investors inLehman Brothers bonds, the investors have now filed The Group has a robust financial standing.lawsuits, primarily against the bank that was thearranger, and secondarily against Acta OutlookKapitalforvaltning. More than 400 individual lawsuits The financial year 2010 has been a turning point forhave been received from these investors. the Acta Group, where an extensive repositioning of the Group’s business model has been the focus. TheThe investors claim that they are not obliged to repay implementation of the new long-term business modelthe loans to the bank. If this proves unsuccessful, has proved to be a profitable success and the Boardthey will turn to Acta Kapitalforvaltning, which was of Directors and the Management believe that thetheir financial advisor. Acta Kapitalforvaltning development where an increasing part of client equityconsiders the risk of these lawsuits to be relatively is placed in portfolio account will continue. With NOKlimited as the company is only responsible for the 7.3 billion invested through the portfolio account onprovision of advice, and this was given on an behalf of 5,600 clients as of year-end 2010, theindividual basis. This assessment is also supported foundation for reaching our ambitions of having 50%by the fact that in all decisions regarding this case, of clients’ equity placed in portfolio account duringthe Swedish National Board for Consumer 2012, and 75% by 2014 are most definitelyComplaints (ARN) has found that Acta achievable.Kapitalforvaltning is not liable to pay compensation toits clients. Acta Kapitalforvaltning expects that the The portfolio account implies a net increase incourts will reach the same conclusion as ARN. recurring revenues of slightly above one percentage point compared with the trade account. Transaction-No provisions have been made in the accounts for related revenues related to Acta’s investmentclaims by clients related to the Lehman Brothers advisory business will, at the same time, be underissue. pressure as clients who have moved their equity to portfolio account will pay lower, or no, transaction fees. As recurring revenues continue to increase, which makes Acta less dependent on transaction- Page 7 of 14 4th quarter 2010
  • 8. related revenues, the operational risk for Acta going be booked in the first quarter of 2011, the Acta Groupforward is significantly reduced. Acta has an ambition is expected to move into profitable territory in theof reaching the Group’s new strategic goal, which is upcoming quarters, and thus achieve a profitableto have recurring revenues to cover both activity- financial year in 2011.based and fixed costs on an annual basis in 2011. Principles for interim reportingGoing forward, Acta will be active with respect to This interim report has been prepared in accordanceproviding clients with first class advisory services with the same accounting principles used for theand, at the same time the Group will maintain a annual reporting for 2009. This interim report hasstrong focus on informing and advising clients about been prepared in accordance with IAS 34 Interimthe portfolio account concept. The Group will also Financial Reporting.maintain a strong focus on product innovation inorder to launch interesting product initiatives in orderto add client value at the same time as we continueto attract more business to increase our marketshare. Stavanger, 16 February 2011Acta Markets, which has strengthened its The Board of Directorsmanagement by recruiting Ole Jørgen Jacobsen asManaging Director, will continue to develop itsbusiness in order to take greater part in the valuechain of product development and the corporatefinance business. Acta Markets’ role as advisor,together with others, in the real estate transaction inSweden, proves that Acta’s effort to become a morecomplete supplier of financial services has beensuccessful. As several client-owned companies are tobe terminated according to their mandates, a numberof interesting business opportunities may arise forActa Markets, at the same time as the possibility forreinvestments of equity from satisfied clients in otherproducts offered by Acta is presented.The consolidation we have seen in the industry in thelast few years is expected to continue as smaller-sized and medium-sized market participants will havedifficulties in achieving profitability as margins havefallen at the same time as requirements with respectto compliance have increased. Acta will continue tobe active in respect to the evaluation of anyfavourable business cases that can strengthen theGroup’s profitability or long-term growth.The Board and the Management are expecting agood long-term market for Acta’s savings andinvestment products.As one of the dominant market players in the Nordicregion, and with Europe’s most attractive clients inour catchment area, we have a solid foundation forprofitable operations over both the medium- andlong-term.There is sound cost control throughout the Group,and the Board will continue to focus on this in thefuture. However, the major focus going forward willbe income-generating activities and measures.Under the current circumstances, and in the light ofsuccess revenues and advisory revenues, which will Page 8 of 14 4th quarter 2010
  • 9. PROFIT AND LOSS (MNOK) 4Q2010 4Q2009 2010 2009Transaction-related revenue 42.4 40.2 129.9 194.8Recurring revenue 85.7 71.6 295.0 292.6Other revenue 1.5 1.0 3.0 2.0Total revenue 129.6 112.8 427.8 489.4Variable operating costs 22.9 10.9 55.6 47.4Activity-based costs 23.6 25.8 83.2 92.7Fixed operating costs 75.0 81.0 292.4 358.7Depreciation a.o. 7.5 4.0 23.9 26.7Total operating costs 129.0 121.7 455.0 525.5Operating earnings 0.6 -8.9 -27.2 -36.1Net financial items 1.4 -0.9 5.9 -8.9Net incom e before tax 1.9 -9.8 -21.3 -45.1Tax 2.4 -1.0 -4.1 -8.7Net incom e -0.5 -8.8 -17.2 -36.4Other com prehensive incom eForeign currency translation differances 1.2 0.0 1.8 -0.3Total com prehensive incom e 0.7 -8.8 -15.4 -36.7Earnings per share (NOK) 0.00 -0.04 -0.07 -0.14Earnings per share diluted (NOK) 0.00 -0.04 -0.07 -0.14 Page 9 of 14 4th quarter 2010
  • 10. SEGMENT INFORMATION Norw ay Sw eden Corporate New m arkets Total Acta (MNOK) Revenue 4Q2010 83.3 46.2 0.0 0.0 129.5 4Q2009 61.8 51.0 0.0 0.0 112.8 2010 263.8 164.0 0.0 0.0 427.8 2009 262.3 227.0 0.0 0.0 489.4 Variable operating costs 4Q2010 19.4 3.5 0.0 0.0 22.9 4Q2009 6.7 4.0 0.2 0.0 10.9 2010 46.4 9.0 0.2 0.0 55.6 2009 20.8 23.6 3.0 0.0 47.4Fixed and activity-based operating costs 4Q2010 58.1 44.3 -4.2 0.3 98.5 4Q2009 56.6 47.4 1.8 1.0 106.8 2010 210.9 173.2 -10.2 1.6 375.5 2009 237.0 212.7 -6.9 8.5 451.4 Depreciation a.o. 4Q2010 2.4 1.1 4.0 0.0 7.5 4Q2009 0.6 -0.6 3.9 0.1 4.0 2010 5.9 2.4 15.5 0.0 23.9 2009 7.4 5.7 13.2 0.4 26.7 Operating earnings (EBIT) 4Q2010 3.4 -2.7 0.2 -0.3 0.6 4Q2009 -2.0 0.3 -6.0 -1.1 -8.9 2010 0.6 -20.6 -5.6 -1.6 -27.2 2009 -2.9 -15.0 -9.3 -8.9 -36.1 Page 10 of 14 4th quarter 2010
  • 11. BALANCE SHEET (MNOK) 31.12.10 31.12.09Non-current assetsGoodw ill 15.8 6.1Other intangible assets 44.2 46.1Deferred tax asset 20.6 12.6Total intangible assets 80.6 64.9Fixed assets 14.4 18.8Financial assets 1.2 0.0Total tangible assets 15.6 18.8Total non-current assets 96.3 83.7Current assetsTrade receivables 66.7 40.6Other receivables 35.8 25.5Total receivables 102.5 66.1Bank deposits a.o. 245.2 261.5Total current assets 347.6 327.6TOTAL ASSETS 443.9 411.3EquityPaid in equity 46.4 45.3Paid in capital, other 28.9 12.2Other equity 253.9 263.8Total equity 329.1 321.4Short-term debtAccounts payable 11.6 14.2Taxes payable 8.9 0.0Overdraft facilities 0.0 0.0Other taxes and duties payable 16.8 18.1Vacation pay, salaries and commissions payable 40.4 27.3Other short term debt 37.0 30.4Total short-term debt 114.8 90.0TOTAL EQUITY AND DEBT 443.9 411.3 Page 11 of 14 4th quarter 2010
  • 12. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Share Currency UncoveredAll amounts in thousands of NOK Share prem ium Other paid-in translation losses/ other capital account equity difference equity Total equityBalance sheet as of 1 January 2009 45.3 11.2 0.0 4.2 296.3 357.0Total comprehensive income for the periodNet income -36.4 -36.4Other comprehensive income for the periodForeign currency translation differences -0.3 -0.3Total comprehensive income for the period -0.3 -36.4 -36.7Contributions by and distributions to ownersDividends paid to equity holders 0.0Share-based payments 1.1 1.1Balance sheet as of 31 Dec 2009 45.3 11.2 0.0 3.8 261 321.4Balance sheet as of 1 January 2010 45.3 11.2 0.0 3.8 261 321.4Total comprehensive income for the periodNet income -17.2 -17.2Other comprehensive income for the periodForeign currency translation differences 1.8 1.8Total comprehensive income for the period 1.8 -17.2 -15.4Contributions by and distributions to ownersIssue of ordinary shares 1.1 16.6 17.7Dividends paid to equity holders 0.0Share-based payments 5.5 5.5Balance sheet as of 31 Dec 2010 46.4 27.8 0.0 5.7 249.3 329.1The currency translation difference is attributed to the translation from SEK to NOK of assets and liabilities belonging to Acta KapitalforvaltningASs Swedish branch, Acta Finans ABs and Acta Asset Management ASs operations in Sweden, and translation from DKK to NOK of assets andliabilities belonging to Actas business in Denmark. Page 12 of 14 4th quarter 2010
  • 13. CASH FLOW ANALYSIS (MNOK) 4Q2010 4Q2009 2010 2009Operating activitiesProfit (loss) before tax 1.9 -9.8 -21.3 -45.1Taxes paid 0.0 0.0 -0.7 -90.0Depreciation a.o. 7.5 4.0 23.9 26.7Net change in accounts receivable -18.6 26.6 -36.3 18.5Net change in accounts payable 9.8 16.5 -2.5 1.4Net change in other balance sheet items 40.3 -3.9 41.2 -38.2Net cash flow from operating activities 41.0 33.4 4.1 -126.6Investing activitiesInvestments in tangible fixed assets -8.1 -3.0 -19.5 -16.1Net change from other investments -1.0 0.0 -1.0 0.0Investment in subsidiary 0.0 0.0 -17.7 0.0Net cash flow from investing activities -9.1 -3.0 -38.2 -16.1Financing activitiesIncrease in equity 0.0 0.0 17.7 0.0Dividends paid 0.0 0.0 0.0 0.0Net cash flow from financing activities 0.0 0.0 17.7 0.0Net cash flow for the reporting period 31.9 30.3 -16.4 -142.7Net cash opening balance 213.3 231.5 261.5 404.6Effect from exchange rate changes to cash and cash equivalents 0.0 -0.3 0.0 -0.3Net cash closing balance 245.2 261.5 245.2 261.5Net change in Cash 31.9 30.3 -16.4 -142.7# Shareholders as of 7 February 2011 Shares % 1 COIL INVESTMENT GROUP AS 35,068,547 13.6 % 2 LUDVIG LORENTZEN AS 15,407,000 6.0 % 3 BEST INVEST AS 12,808,707 5.0 % 4 CARNEGIE INVESTMENT BANK AB 11,691,005 4.5 % 5 PERESTROIKA AS 10,558,000 4.1 % 6 BJELLAND TRADING AS 10,439,000 4.1 % 7 MONS HOLDING AS 9,266,620 3.6 % 8 SANDEN A/S 7,500,000 2.9 % 9 TENOLD GRUPPEN AS 5,377,243 2.1 %10 IKM INDUSTRI-INVEST 5,023,800 2.0 %11 TVETERAAS EIENDOMSSELSKAP A/S 5,000,000 1.9 %12 MORGAN STANLEY & C O S/A MSIL IPB C LIENT 3,400,000 1.3 %13 BANK OF NEW YORK MEL BNY GC M C LIENT AC C OUT 2,696,024 1.0 %14 ARC TIC SEC URITIES AS MEGLERKONTO 2,583,600 1.0 %15 SIX SIS AG 25PC T 2,576,599 1.0 %16 INTERNATIONAL OILFIELD SERVICES AS 2,500,000 1.0 %17 WENAAS KAPITAL AS AK 2,250,000 0.9 %18 STEINAR LINDBERG A.S 2,100,000 0.8 %19 NORDNET BANK AB 2,092,048 0.8 %20 EXTELLUS AS 2,000,000 0.8 % 20 largest shareholders 150,338,193 58.4 % Remaining shareholders 107,192,557 41.6 % TOTAL 257,530,750 100.0 % Page 13 of 14 4th quarter 2010
  • 14. Key financial figures Acta 4Q2010 4Q2009 2010 2009Key financial figuresEarnings per share (NOK) 0.00 -0.04 -0.07 -0.14Earnings per share diluted (NOK) 0.00 -0.04 -0.07 -0.14Paid out dividend per share (NOK) 0.00 0.00 0.00 0.00Cash flow (net income + depreciations) per share (NOK) 0.03 -0.02 0.03 -0.04Equity per share (NOK) 1.28 1.28 1.28 1.28Gross margin (transaction revenue / gross subscriptions) 4.4 % 3.9 % 4.6 % 6.2 %Operating margin (%) (operating earnings / revenues) 0% -8% -6% -7%Net margin (%) (net income before tax / revenue) 1% -9% -5% -9%Average return on capital employed, annualized (%) 1% -11% -8% -10%Return on equity, annualized (%) -1% -11% -5% -11%Equity ratio (%) 74% 78% 74% 78%Number of shares by end of period 257,530,750 251,683,432 257,530,750 251,683,432Number of shares fully dilluted by end of period 257,549,255 251,821,701 257,549,255 251,821,701Average number of shares in reporting period 257,530,750 251,683,432 254,607,091 251,683,432Average number of shares fully dilluted in reporting period 257,549,255 251,752,567 254,685,478 251,752,567Key operating figuresNumber of clients - Total 89,000 87,000 89,000 87,000Number of clients - Norw ay 37,000 34,000 37,000 34,000Number of clients - Sw eden 52,000 53,000 52,000 53,000Assets under management - Total (MNOK) 66,987 73,375 66,987 73,375Assets under management - Norw ay (MNOK) 43,275 47,239 43,275 47,239Assets under management - Sw eden (MNOK) 23,712 26,137 23,712 26,137Gross subscription - Total (MNOK) 970 1,032 2,850 3,161Gross subscription - Norw ay (MNOK) 594 593 1,737 1,637Gross subscription - Sw eden (MNOK) 376 439 1,113 1,524Gross subscription per branch manager/advisor/broker - Total (MNOK) 6 7 19 22Gross subscription per branch manager/advisor/broker - Norw ay (MNOK) 8 9 24 24Gross subscription per branch manager/advisor/broker - Sw eden (MNOK) 5 6 14 20Assets under management per client - Total (KNOK) 753 843 753 843Assets under management per client - Norw ay (KNOK) 1,170 1,389 1,170 1,389Assets under management per client - Sw eden (KNOK) 456 493 456 493Number of employees - Total 268 246 268 246Number of employees - Norw ay 149 132 149 132Number of employees - Sw eden 118 113 118 113Number of employees - New markets 1 1 1 1Number of branch manager/advisor/broker - Total 153 146 153 146Number of branch manager/advisor/broker - Norw ay 73 69 73 69Number of branch manager/advisor/broker- Sw eden 79 76 79 76Number of branch manager/advisor/broker- New markets 1 1 1 1Number of advisors/brokers - Total 139 129 139 129Number of advisors/brokers - Norw ay 62 58 62 58Number of advisors/brokers - Sw eden 76 70 76 70Number of advisors/brokers - New markets 1 1 1 1 Page 14 of 14 4th quarter 2010