Media contacts
For questions about financing or funding possibilities, business offerings and acquisition, please use the contact form.
The number below is for media inquiries only.
Monica Beek
Media Spokesperson
T: +31 70 314 9130
M.Beek@fmo.nl
FMO, the Dutch Development Finance Company, published its 2017 annual results today. You can find the Annual Report 2017 on our website: https://annualreport.fmo.nl/.
Results impact 2017
Results finance 2017
Key figures
|
(x € million) (unless otherwise stated) |
|
2017 |
2016 |
Δ% |
|
(In) Direct Jobs supported (FTEs) |
|
900,000 |
812,000 |
11% |
|
Avoided GHG emissions (tCO2eq) |
|
1,600,000 |
500,000 |
220% |
|
Green investments |
|
1,2971 |
519 |
150% |
|
Total income |
|
444 |
300 |
48% |
|
Total expenses |
|
-99 |
-86 |
15% |
|
Value adjustments |
|
-62 |
-1 |
-6100% |
|
Taxes |
|
-37 |
-43 |
-14% |
|
Net profit |
|
255 |
176 |
45% |
|
Total committed portfolio |
|
9,155 |
9,778 |
-6% |
|
New commitments |
|
1,9462 |
1,550 |
26% |
1) Green investments are the new investments for FMO’s account, the government funds and catalysed funds that have been labelled as green investments.
2) New commitments and Total committed portfolio concern both investments for FMO’s account and investments for government funds managed by FMO. The government funds include MASSIF, IDF and AEF.
Financial and impact developments 2017
Our business made a strong contribution to a better world while generating good financial results. New commitments in 2017 amounted to a total of EUR 3,1 billion, of which EUR 1,1 billion was mobilized from third parties. With our investments we support a total of 900,000 jobs, while avoiding 1,600,000 tons of greenhouse gas emissions.
Our 42% green investments mitigate climate change but also support biodiversity conservation, reduced water-use, sustainable forestry and agriculture practices.
An important breakthrough regarded the first close of the Climate Investor One fund, an innovative blended finance concept initiated by FMO, in the renewable energy space. We also co-invested in FinTech through the Finforward marketplace. Through this initiative we support African banks to start using FinTech instruments, enabling them to include the unbanked in the African financial system.
During 2017, we made significant steps in stakeholder management. We revised our sustainability policy with specific attention to climate action and human rights through a process of extensive stakeholder consultation. The progress we made is reflected in the open and positive feedback we received from our stakeholders, including the Dutch government and various non-governmental organizations.
In our strategy for the period up to 2025, we will steer on our contribution to the SDGs in general, and three in particular: Decent Work and Economic Growth (SDG8), Reduced Inequalities (SDG10), and Climate Action (SDG13). These are the areas where we feel we can have the largest impact in the countries where we can make the biggest difference. Investing in local prosperity is something we do in partnership with others (SDG17).
Outlook 2018
Our outlook for 2018 is in general positive. We expect economic growth in emerging markets to average 4%, which should allow us to carry out our plan for 2018. To support economic growth and decent jobs, we aim to close a total of EUR 2.5 billion new commitments in 2018. This number includes EUR 0.9 billion of catalyzed funds. In addition, FMO aims to invest close to EUR 160 million through government funds MASSIF, AEF and IDF. We will increase our focus on high-impact transactions, supporting local prosperity where we invest. To contribute to climate action, we target 32% of new commitments to be in green investments. In addition, 25% of new commitments are earmarked to contribute to reducing inequalities.
As of 2018, IFRS9 accounting rules apply making financial results of FMO less predictable than in the past. Foreign currency exchange movements related to the valuation of our Private Equity (PE) portfolio will be recorded in net profit instead of other comprehensive income. See the Annex for more info on the effects of IFRS9.
Jürgen Rigterink, FMO’s CEO: “It makes me truly proud to look back on 2017. FMO showed excellent results, creating record development impact and financial profit. We also reviewed our strategy and defined our recalibrated roadmap towards 2025.
“Your preferred partner to invest in local prosperity” – this is the goal we defined for the period up to 2025 and the result of a thorough review of our operating environment today: one with rising stakeholder expectations, a more crowded development finance market and a stronger international call to reduce economic and social inequalities amongst countries. To be effective in supporting local prosperity, we aim to become the preferred partner to our key stakeholders.
We also aim to be the preferred partner for the Dutch government through private sector investment and climate finance. Our strategy towards 2025 aligns fully with the sustainable development goals, contributing to key priorities of the Dutch government.
Over 40% of our new commitments were green and we closed more than 40 transactions that contribute to reducing inequalities. Our results show that impact and profit can go hand in hand. Our net profit for the year amounted to a record level of EUR 255 million. This performance was supported by several exits from private equity investments.
For me personally, it was also a memorable year. It was my first full year as CEO of FMO. It was also the year in which I announced my departure after having served on the Management Board of FMO for 9.5 years. This naturally gives me mixed feelings, as it both an honor to assume a senior position at another development finance institution, and a loss to leave FMO at this point. I will leave FMO with pride, our results for 2017 and the clear strategic direction going forward give me confidence that FMO will become the preferred partner for investing in local prosperity”.
Press contact:
Paul Hartogsveld
Senior Communications Officer (PR)
T: +31 70 314 9928
M: +31 6 11589127
ANNEX
As of 2018, IFRS9 accounting rules apply making financial results of FMO less predictable than in the past. Foreign currency exchange movements related to the valuation of our Private Equity (PE) portfolio will be recorded in net profit instead of other comprehensive income. FMO does not hedge the currency risk of the PE portfolio. First, by maintaining an open foreign exchange position in its PE portfolio FMO creates a hedge against an adverse effect of the exchange rate on the regulatory capital ratios. A depreciation of FMO’s reporting currency (Euro) can significantly affect the capital ratio since FMO’s assets – and hence also our risk weighted assets – are mainly USD denominated or in local currencies. The US dollar long position in the equity portfolio thereby functions as a partial hedge for FMO’s regulatory capital ratios. Second, the uncertainty in the size and the timing of the cash flows for equity investments make hedging less effective.