2021
Bulk Infrastructure Group AS Annual Report
Creative power
4 Letter from the Founder and Executive Chair
5 Letter from the CEO
6 Group presentation
8 Bulk Fiber Networks
10 Bulk Industrial Real Estate
12 Bulk Data Centers
14 Sustainability
18 Board of Directors Report 2021
27 Consolidated financial statements 2021
74 Parent company financial statements 2021
90 Responsibility statement
Contents
3
Bulk Infrastructure Group AS Annual Report 2021Bulk Infrastructure Group AS Annual Report 2021
2
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
4 5
Letter from the Founder and Executive Chair
Since the very beginning, Bulk has been built on
our values, Respect, Creative Power and Passion.
When we combine our values with our strategy of
creating scalable and sustainable infrastructure
solutions – something interesting happens.
The work gives a motivation to succeed beyond
personal success and it gives a greater sense of
purpose. This has helped our company to succeed
and attracted skilled and motivated people.
Our values give us a solid framework and shapes
our decisions. They also provide our customers
with a clear view of what they can expect from us.
I have always welcomed curiosity and discussions
about new opportunities to excel our company.
However, it is important that creative ideas do
not take away focus and we need to weed out
bad ideas and to turn the good ones into results.
Therefore, I have always found openness to be
an efcient process.
A business idea can be good or bad depending on
many factors – demand, timing, complexity, risk
factors that all determines its likelihood to succeed.
Bad ideas usually get resistance from the beginning
and can be quickly terminated, but with good ideas
the opposite happens. It usually attracts people into
conversations that gives valuable insight and intro-
ductions to others that helps to realize them.
This is what happened when Bulk went from one
business of industrial real estate and expanded into
data centers and ber networks. The idea to create
an extremely scalable digital infrastructure platform
in the Nordics with data centers, renewable power
and ber highways seemed very unusual at the time.
Today Bulk is placed in highly attractive sectors
with great demand, and we nd ourselves in the
center of the gravity for sustainable digital services
in the Nordics.
We often say, “Bulk needs to be bigger than itself”
as we wish to make an impact beyond our peers. Our
subsea ber routes to and from the Nordics is already
such an example. What started as an idea, has given
us valuable experience from working with some of the
most advanced companies in the business and new
creative ideas have evolved from it.
In October 2021, I visited the Canadian provinces of
Quebec and Newfoundland & Labrador. I wanted to
see for myself some of the World’s biggest renewable
energy production and test if a new subsea ber cable
could connect the two renewable giants in the World –
Atlantic Canada and the Nordics. I took a road-trip
of 1800 kilometres from Montreal to Happy Valley/
Goose Bay along the trans-Labrador highway. On
the way I met with Governments, local groups and
businesses to discuss the idea of a new trans-Atlantic
subsea cable called “Leif Erikson” from Norway to
Canada. So far, the project has received a lot of
support from stakeholders in Canada and on the
international arena, so we are ramping up the work.
Creating the rst trans-Atlantic subsea ber cable
running on 100% renewable energy and connecting
Canada and Norway, “the World’s biggest renewable
batteries”, might be an idea that will survive
the pandemic.
Letter from the CEO
Bulk is positioned for growth. In 2021 we have
strengthened our nancial muscles, recruited a
number of talented people and built an organizational
structure that is robust enough to handle the speed
and complexity that success going forward entails.
All three business areas experience tailwind from
global mega trends. Global e-commerce sales are
growing at a rate of close to 40 per cent per year,
making efcient logistics solutions even more
important than for traditional retail. Digital growth
continues in the double digits, and demand for
redundant, high capacity and secure data transmis-
sion, storage and processing fuels both our Fiber
Networks and Data Centers businesses.
At Bulk we have four overarching strategic priorities.
First, we will work hard every day to earn the right to
serve existing and new customers with scalable and
sustainable solutions. Customer success remains
our top priority.
Second, we continue to develop our structures
and way-of-working, so that all our businesses can
rapidly scale with limited complexity. The Bulk-way is
about combining great people with simple processes
and tools to get the job done with minimum comple-
xity. In 2021 I am especially proud of how we grew
our team of capable, driven and inspiring Bulkies.
Growing the organization with more than 20% during
a year of Covid and home ofce is remarkable.
Third, we will remain creative and opportunistic in our
investment approach to further add scalability to our
asset portfolio. In 2021 we expanded geographically
and we constantly look for new land and infrastructure
opportunities to grow our portfolio and our sustaina-
bility impact throughout the Nordic region.
Fourth, sustainability remains a fundamental part
of our vision and an inspiration for everything we
do. Not only in terms of enabling renewable energy
consumption for our Fiber Networks and Data
Center customers, but indeed in terms of making
new and innovative sustainability solutions in our
infrastructure and buildings themselves. Important
progress has been achieved in 2021 both with
respect to heat re-use at our data centers and solar
energy solutions to ensure renewable energy supply
for the buildings we develop.
Going forward, we are excited about the opportunities
to create positive impact at scale in all our business
areas. At the same time, we are humble about the
challenges and uncertainty we all face as a global
community. We will use our creative power, passion
and respect to everyday do our best to solve our
customers’ problems and to contribute to a more
sustainable future for us all.
Since the very beginning Bulk has
been built on our values respect,
creative power and passion.
First, we will work hard every day
to earn the right to serve existing
and new customers with scalable
and sustainable solutions. Customer
success remains our top priority.
Jon Gravråk
CEO
Peder Nærbø
Founder and Executive Chair
Creative power
Win the customer
Our key focus is to win the customer every day.
We are proud to have grown our customer base in
all three business areas, e.g. DSV Solutions chose
Bulk industrial Real Estate to build their logistics
facility in Vestby, and our rst customers went live
on the Havfrue transatlantic subsea ber system.
We have established strategic partnerships, e.g.
with DE-CIX, Europe’s leading Internet Exchange
(IX), who chose Bulk Data Centers for their Nordic
expansion strategy. To support our customer growth,
we have strengthened our customer facing organi-
zation, in particular in the data center business.
Scale the “Bulk Way”
Total book equity increased from NOK 1.7bn in
2020 to NOK 4.1bn in 2021. With this strong
platform and a maturing business, the company
structure was strengthened with three new EVPs
in early Q3: Nina Cathrin Hage as EVP Industrial
Real Estate from Solon Eiendom, Gisle M. Eckhoff
as EVP Data Centers from Digiplex, and Inger
Gløersen Folkeson as Group COO and EVP Fiber
Networks from Telenor. In Bulk, we continuously
improve core processes and capabilities, and
in 2021 we maintained our certications on ISO
9001, 14001, 22301 and 27001.
Create opportunity
We continue to invest in new land to create runways
for new opportunities, both in Norway and Denmark.
In Norway, Bulk Industrial Real Estate entered into
agreements at Langhus, Danebuåsen and Vestby,
to name a few. We also expanded our footprint
in Copenhagen on the back of existing buildings
and new zoned land opportunities. We continue
to work on digital infrastructure opportunities,
i.e. through new ber systems such as the new
Havsil cable from Kristiansand to Esbjerg, and
powered land opportunities.
Lead on sustainability
Bulk makes sustainability a business, and always
strives to be a frontrunner in the area. In January
2021, Stine Bjønnstu Holthe was announced as
our new Head of Sustainability. During the year,
we have established a fact-based baseline of our
climate footprint, and embarked on energy efciency
projects to reduce our climate footprint. Bulk shares
the sense of urgency of climate change, and we
live our vision:
Racing to bring sustainable infrastructure to a
global audience.
Group presentation
Bulk Infrastructure Group is a leading provider of sustainable digital infrastructure
in the Nordics. We believe in the value creation opportunity of enabling our
digital society to be fully sustainable.
Bulk Executive Management Team
Jon Gravråk - CEO
Bulk Industrial Real Estate
Nina Hage, EVP
Bulk Data Centers
Gisle M. Eckhoff, EVP
Bulk Fiber Networks
Inger Gløersen Folkeson, EVP
Gaute Krekling - CFO
Torbjørn T. Moe - CBDO
Inger Gløersen Folkeson - COO
Bulk Infrastructure Group AS is owned by Bulk Infrastructure Holding AS, which has the following ownership structure:
Key Figures (Consolidated)
MNOK 2021 2020 %
Revenues 365.7 431.4 -15.2%
Operating Prot 1,215.2 152.7 695.6%
Prot after tax 936.8 76.4 1126.1%
Equity Ratio (%) 43.8% 48.6% -4.9%
Number of employees 70 58 20.7%
Bulk Industrier AS 53%
BGO King HoldCo Sarl 17%
Geveran Trading Co Ltd 13%
Employees 5%
Other 12 %
7
Bulk Infrastructure Group AS Annual Report 2021Bulk Infrastructure Group AS Annual Report 2021
6
Bulk Fiber Networks
Bulk Fiber Networks owns and controls dark fiber infrastructure with the purpose
of enabling the Nordics for large scale data processing. Our over 10,000 kilometer
of fiber infrastructure is modern with high capacity including both subsea and
terrestrial systems.
In 2021 Bulk Fiber Networks has continued
expanding its ber networks while simultaneously
planning for further expansion. The organization
was strengthened when Inger Gløersen Folkeson
was named as Group COO and EVP of Fiber
Networks in Bulk Infrastructure in June.
The successful landing of the Havsil subsea cable
from Hanstholm in Denmark to Kristiansand in
Norway was achieved ahead of time in September.
Havsil unlocks the shortest route from Norway
to continental Europe. The terrestrial route in
Denmark is nalized, running down Denmark’s
west coast, avoiding the more congested and
traditional city routings. The endpoints include
Bulk’s highly scalable N01 data center campus
in Kristiansand, Norway and the DK01 data
centre in Esbjerg, Denmark.
The Havsil cable was selected by Arelion (Former
Telia Carrier), supported by the Norwegian
Communications Authority (NKOM), as the new
main ber system for Norway’s international data
trafc. Key rationale was to create a new diverse
route that avoids going through Sweden, to ensure
high uptime and low latency. This is also in line
with Norway’s ambitions of becoming a European
central for data center investment as specied in
its National Data Center Strategy.
In 2021 our rst customers went live on the
Havfrue transatlantic subsea ber system.
The system connects the USA and Denmark
with branches to Ireland and Norway. Bulk is a
co-builder of the system together with Aqua
Comms, Facebook and Google.
Customers are now live on all segments of
the Inter-City Ring terrestrial ber system that
connects four of Norway’s largest cities: Oslo,
Kristiansand, Stavanger and Bergen. The Inter-
City Ring makes Bulk the natural partner for dark
ber to and through Norway, with a complete
service offering including multiple modern and
resilient telehousing, 24/7 Network Operations
Center (NOC) and remote hands services.
In 2021 a pre-study was completed for the
Leif Erikson subsea segment and successful
stakeholder meetings was held in Canada.
The Leif Erikson subsea system will connect
two of the main renewable giants in the world,
the Nordics and Atlantic Canada, in order to
grow sustainable digital infrastructure driven by
an abundance of renewable energy. The system
will also secure a true diverse route avoiding the
route similarities in other trans-Atlantic networks.
The Leif Erikson project was shortlisted for the
best ESG initiative at the Global Carrier Awards
at Capacity Europe in London in Q4 2021.
The global market for ber capacity continues to
grow quickly, driven by increased demand for low
latency, high capacity and high quality secure data
trafc. Bulk Fiber Networks’ attractive offering is
appreciated by customers worldwide.
Bulk’s ber networks unlock the Nordic region’s
sustainable data centers for customers globally.
Low latency, high capacity ber networks
ensure that customers no longer need to rely on
local data centers powered by non-renewable
energy sources. High performance ber cables
also contribute to the fast growth of video
conferencing, reducing unnecessary air travel
and thereby CO2 emissions. When selecting
suppliers, it is a requirement that their operations
are run sustainably. Bulk takes care to reduce
the environmental impact when ber routes are
planned both subsea and on land. Surveys are
done in advance to avoid interfering with spawning
grounds for sh and other sea animals.
Bulk ber map
A
t
l
a
n
t
i
c
o
c
e
a
n
HAVFRUE
HAVHINGSTEN
HAVKATT (in planning)
HAVSIL
INTERCITY RING
LEIF ERIKSON (in planning)
SKAGERRAK 4
Frankfurt
Paris
Amsterdam
London
Helsinki
Hamburg
Oslo
Blackpool
Dublin
Aberdeen
Stavanger
Esbjerg
Copenhagen
Malmo
Stockholm
Hanstholm
Kristiansand
Bergen
Newcastle
Trondheim
Happy Valley-Goose Bay, Canada
New Jersey, USA
Tjele
Inger Gløersen Folkeson COO & EVP Bulk Fiber Networks
The HAVSIL system is the new express
route between Norway and continental
Europe, oering the shortest high-
capacity route in a sustainable way
9
Bulk Infrastructure Group AS Annual Report 2021Bulk Infrastructure Group AS Annual Report 2021
8
Park Lindeberg
Bulk Industrial Real Estate
Bulk Industrial Real Estate is a Nordic real estate developer and owner,
specializing in industrial buildings, large modern warehouses, cross-dock
terminals and logistics parks.
Nina Hage EVP Bulk Industrial Real Estate
2021 saw a total handover of nearly
40,000 sqm new builds including
completion of Antra, Bulder verksted,
PetXL, and Leman II, as well as
Namron II and Sigurd Stave projects.
Bulk Industrial Real Estate’s property portfolio
increased by almost 150 per cent in 2021, from a
value of NOK 1.8 billion at end 2020 to a value of
NOK 4.2 billion at year end 2021.
The portfolio growth is a result of high contract
signing activity and development of new projects,
execution of our new acquisition activity, and a
favourable sentiment for valuation of logistics real
estate assets. In 2021, Bulk Industrial Real Estate
crossed the 500,000 sqm threshold for signed
newbuild projects since establishment, marking
an important milestone.
2021 saw a total handover of nearly 40,000 sqm
new builds including completion of Antra, Bulder
verksted, PetXL, and Leman II, as well as Namron
II and Sigurd Stave projects.
During the year, leases for almost 80,000 sqm
were signed for new projects, increasing annual
rent by NOK 85 million on a 100 per cent basis,
including lease-agreement for 30,656 sqm with
the rst tenant for Jernholmen 49 in Copenhagen.
The establishment in Copenhagen is another
milestone, marking Bulk Real Estate’s rst
expansion outside of Norway.
In 2021 Bulk Industrial Real Estate included
acquisition of property with development potential
as part of the strategy. The target list consists of
strategic locations for industrial real estate projects
in Norway, Sweden or Denmark. Snipetjernveien 3
and 9, a large logistics property of 26,000 sqm at
Langhus, were acquired in June. Landskaugveien
33 at Enebakk, a plot of almost 26,000 sqm, with
a logistics building of 4,000 sqm, was acquired in
December.
Bulk Industrial Real Estate also own a highly
strategic landbank for further development in
core locations, totaling more than 1,5 million sqm.
In Norway, Bulk is present in Trondheim, Nebbenes
and Larvik as well as in the attractive area between
Oslo Airport Gardermoen and the Swedish border,
including Vestby, Enebakk and Gardermoen.
The organization has been strengthened to
accommodate future growth. Nina Hage was
appointed Executive Vice President of Bulk
Infrastructure Group and Head of Industrial Real
Estate. During the year the ag was planted in
Denmark, with the recruitment of Thomas Hammer
Tveit as Vice President with responsibility for the
Danish market. Also, Torgeir Steen was recruited
as Project Manager.
All Bulk projects with a size above 5,000 sqm are
from 2021 BREEAM-NOR certied and equipped
with roof solar panels as part of our standard
offering. The rst Bulk project with solar panels
- Leman I – was nalized in 2021 and marks the
future sustainable standard for new developments.
The expansion Leman II has also been tted out
with solar panels, and around 60 per cent of the
total energy consumption is now covered by solar
energy. All larger new-buildings are designed to
meet energy classication of A or B.
Sustainability is important also during the planning
and construction phases. The environmental impact
should be minimized during the construction
process, and that starts with thorough planning.
When construction is complete, investments are
made to re-establish the ecological diversity
surrounding the buildings.
The Bulk Module is a steel frame on a concrete
foundation with sandwich panels, making
construction efcient and maximizing exibility
for our customers. A project has been started to
reduce the climate emission of the module even
further. A pilot project has also been initiated
to create a wood version of the Bulk Module.
The planned wood constructions increase
sustainability and will even include insect hotels
to secure the local ecology.
11
Bulk Infrastructure Group AS Annual Report 2021Bulk Infrastructure Group AS Annual Report 2021
10
Bulk Data Centers
Demand for data center capacity is experiencing
double digit growth, fueled by digitalization and
growing demand for cloud services. Gartner has
estimated that global spending on data center
systems will grow to USD 226 billion in 2022,
an increase of 11.4 percent year on year.
Simultaneously, data center customers have
become more sophisticated choosing data
center providers that can deliver the highest
levels of connectivity, security, stability and
sustainability. In all these areas Bulk’s data
centers in Oslo, Norway (OS-IX), Kristiansand,
Norway (N01) and Esbjerg, Denmark (DK01)
have a competitive advantage.
DE-CIX, the world’s leading Internet Exchange (IX)
operator and home to the largest carrier and data
center neutral interconnection ecosystem globally,
chose Bulk in 2021 when they decided to enter the
Nordic region. Their DE-CIX IX platforms will be
housed in all three of Bulk’s data centers.
In 2021 Bulk Data Centers expanded its new
customer and existing base in all three locations.
New customers include hyperscalers in search of
highly connected points of presence (PoP) as well
as global, regional and local businesses and public
organizations.
Bulk Data Centers has strengthened its leadership
team and the organization to help drive its ambitious
growth plans. With a new ofce in Germany and
the appointment of Gisle M. Eckhoff as Executive
Vice President at Bulk Infrastructure Group and
Head of Bulk Data Centers.
To support growth, it is important to secure
sufcient energy capacity for all of Bulk’s data
centers. At N01, planning of increased energy
capacity has been ongoing for several years,
and capacity is currently being expanded by
approximately 100 MW to be completed during
2022, and by several hundred MW in the coming
years. Strategically located properties have
been purchased in both Norway and Denmark
to be prepared for the construction of further
data centers to meet increasing demand.
The robustness of Bulk’s data centers was
evidenced by operations running uninterrupted
throughout the pandemic.
Data center operations are energy consuming both
with respect to powering servers but also keeping
them sufciently cool. Bulk Data Centers operates
as energy efciently as possible and explores heat
re-use alternatives. Responsible and sustainable
operations are important for customers, employees
and Bulk.
Bulk Data Centers has signed letters of intent with
companies that will be able to re-use heat from all
sites. At N01, Bulk is exploring plans to establish
a circular industry cluster where companies from
various industries can benet from re-using energy,
which will be the rst project of this kind in Norway.
When planning and constructing data centers,
Bulk rst consults with professional ecologists to
ensure that the construction process may take
place with the least environmental impact possible.
When construction is complete, investments are
made to re-establish the nature diversity surrounding
the center.
Gisle M. Eckhoff EVP Bulk Data Centers
Bulk Data Centers delivers ultra-flexible, highly connected, and massively scalable
data center and colocation solutions. Powered by 100 % carbon free energy and
backed by in-house expertise in data center design, engineering and operations.
Data center customers have become
more sophisticated choosing data
center providers that can deliver
the highest levels of connectivity,
security, stability and sustainability
Oslo Internet Exchange (OS-IX) in Oslo
13
Bulk Infrastructure Group AS Annual Report 2021Bulk Infrastructure Group AS Annual Report 2021
12
Location Asset Ecosystem
1 2 3
By moving gigabytes instead of gigawatts
we are leveraging the advantages of the North
such as renewable energy and cold climate
Peder Nærbø Founder and Executive Chair
Location
Location is key to achieving sustainable
solutions. Regions where renewable energy
is available, such as the Nordic countries
or Canada, provide locations that ensure
a high level of sustainability from day one.
These regions also offer a stable political
environment, low climate risk and a well-
developed legal and organizational
framework that protects employees.
The need for digital infrastructure increases
dramatically, and sustainable locations are
necessary to avoid destructive environmental
impact. A customer moving their data from a
data center in central Europe to Norway will
for example reduce their greenhouse gas
emissions from power consumption by 96
per cent.
Fiber networks connecting the Nordics to the
rest of Europe and Northern America ensure
low latency and high capacity connectivity,
enabling data center facilities powered by
renewable energy.
The location of a logistics facility will affect
greenhouse gas emissions from transport to
and from the facility. Bulk’s strategy is to nd
logistics locations as close to airports, ports,
railway stations and major road networks as
possible. Moving logistics facilities out of the
city centers benets urban development in
major cities.
It is also important that the local
environmental and biological impact is taken
into consideration when deciding on the
location of a logistics facility or a data center.
P
a
c
i
f
i
c
o
c
e
a
n
A
t
l
a
n
t
i
c
o
c
e
a
n
NORTH
POLE
Hong Kong
Tokyo
Bejing
Dublin
Stavanger
Esbjerg
Québec
New Jersey
Kristiansand
HAVFRUE
USA
CANADA
NORWAY
Seattle
Bulk World Fiber Map
Bulk continues to explore new ways to enable digitalization on renewables.
Bulk’s sustainability framework
consists of three perspectives;
Location, Asset and Ecosystem.
Sustainability
Infrastructure is the backbone of modern society. A digital society needs
supply chains, logistics facilities, data centers and fiber networks to function.
Bulk provides this infrastructure with sustainable solutions run on renewable power.
Bulk has developed a sustainability framework that has been applied to the
environmental dimension. The processes relating to social and governance
dimensions will be incorporated in the framework during 2022.
Bulk Infrastructure Group AS Annual Report 2021
1514
Bulk Infrastructure Group AS Annual Report 2021
Charging stations
Bulk offers minimum 10% coverage of electrical vehicle
charging stations as a standard. This promotes the use
of zero emissions transportation.
Recycling
Bulk actively works towards reducing waste
and requires at least 85% waste sorting in our
construction projects. Bulk promotes the use of
local and recycled building materials.
Solar panels
Transforming sun light into clean, renewable energy which reduces
the building’s need for external power sources. Bulk delivers solar
panels as an option and has several business models to offer.
LED-lighting
Bulk delivers sensor controlled
LED-lighting as a standard. This reduces
energy consumption and operating costs.
Energy monitoring
Bulk includes integrated energy monitoring
systems in our buildings as a standard. Energy
monitoring increase awareness and control
concerning energy saving.
Materials
Careful selection and documentation of materials
by comparing EPDs (Environmental Product
Declaration), reduces carbon footprints and
guarantees the absence of environmental toxins.
Heating
Bulk offers district heating or local boilers based
on bio energy as a standard for most of our buildings.
Bio energy is a renewable energy source which is
considered to be close to C02 neutral.
Energy efficient design
Our standard Bulk Module achieves minimum energy
character B according to Norwegian energy label system.
Green roof
A living green roof has several environmental benefits. Besides
an aesthetically pleasing landscape, it gives ecological benefits
and carbon capture. Bulk delivers green roofs as an option.
Certifications
Bulk offers BREEAM-NOR certification.
Environmental certification promotes energy
efficient solutions and reduced carbon footprint.
LED
The standard Sustainable Bulk Building for Industrial Real Estate
Bio plastic / Bio fuel
Data Center
Organic
waste
Greenhouse Algae farm
Aquafarm
Fresh waterCO
2
O
2
CO
2
Nutrients
Excess heat
Example of industries that can coexist in a circular ecosystem utilizing excess heat from Bulk’s data centers
The rst Bulk BREEAM-NOR project, Leman I,
was certied “Very-good” in 2019 and optimized
with solar panels in 2021- this marks the future
sustainable standard for new developments
Rune Bang Vice President Projects Industrial Real Estate
Ecosystem
The third level of Bulk’s sustainability framework
is the Ecosystem. We create positive impact by
choosing the right locations and optimizing the
sustainability of our assets. However, signicant
impact can only be achieved by dening ourselves
as part of a larger system and cooperating with
partners, customers, suppliers and employees to
change the way we all operate.
In 2021 Bulk conducted a study on circular industry
clusters and mapped potential industries that can
be part of such a cluster surrounding our data
center N01 outside of Kristiansand in Norway.
By acquiring large areas of land surrounding the
data center, Bulk was prepared from the beginning
to welcome companies from other industries that
can use the excess heat generated by the cooling
systems as a resource in their own production
processes.
Onsite renewable energy production, such as roof
solar panels, will initially cover parts of a buildings’
energy needs, but in the long run may also produce
excess energy that can be supplied to the grid and
benet other parts of the ecosystem.
Bulk wants contribute to something bigger
than itself, and together with partners it is
inspiring to see that we can contribute in new
ways using our creative power
Stine Bjønnstu Holthe Head of Sustainability
Asset
When the location is decided, the next job is to
minimize and optimize the use of resources in
connection to the asset and avoid harm to the
environment. Energy usage, protection of land and
nature, usage and pollution of water and material
management are focus areas.
In 2021 Bulk started to map emissions for full
scope 1-3 according to the Green House Gas
Protocol. Scope 1 is direct emissions, scope 2
in indirect emissions from the grid, and scope
3 is indirect emissions not owned by Bulk. Climate
targets towards net zero have been set and the
full scope 1-3 climate account will be used to
take action to optimize solutions and mitigate
emissions.
A lesson learned from the mapping process was
that scope 3 represents more than 90 per cent
of all emissions and that getting hold of precise
emission data is challenging. Bulk collaborates
with the value chain and industry as a whole to
get more accurate data.
Further documentation will be shared via
www.bulkinfrastructure.com when available.
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
16 17
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
18 19
Board of Directors Report 2021
- Bulk Infrastructure Group AS
Business description
Bulk Infrastructure Group AS is a leading provider of
s
ustainable digital infrastructure in the Nordics. We are an
estate, data centers and dark fiber networks. We believe
in the value creation opportunity of enabling our digital
society to be fully sustainable. Hence our vision: Racing
to bring sustainable infrastructure to a global audience.
Our three Business Areas
Bulk Industrial Real Estate is a Nordic real estate devel-
oper and owner, specializing in industrial buildings, large
modern warehouses, cross-dock terminals and logistics
parks. We seek to be the preferred partner for our custom-
ers, offering prime locations, state-of-the-art facilities and
sustainable solutions. The business area was established
in 2006 and has demonstrated a signicant ability to
develop industrial properties for a large and diversied
portfolio of customers. In 2022 we will have completed
more than 50 development projects since establishment,
summing up to more than 500,000 square meters of high
quality, exible and energy efcient facilities. We also own
a considerable portfolio of yielding properties, and a vast
plot bank, allowing us to take part in value creation in all
phases of real estate development and ownership.
Bulk Data Centers is an industrial developer and oper-
ator of data centers and data center services across the
Nordics. Bulk has a portfolio of assets, capabilities and
partners to serve any data center customer requirement
in a fast, secure, cost efcient and sustainable way. We
operate scalable facilities, we continue to add new sites
to our portfolio, and we have access to strategically
located land. We have in-house expertise in data center
design, engineering and operations that combined with our
industrial real estate development experience and dark
ber network deployments allow us to shape the full value
chain of the data processing infrastructure. We can serve
customers in dedicated hyperscale facilities and custom-
ers in need of server racks in a Colo environment.
Bulk Fiber Networks owns and controls dark ber infra-
structure with the purpose of enabling the Nordics for large
scale data processing. Our ber infrastructure is modern
with high capacity including both subsea and terrestrial
systems. We offer dark ber, telehousing and cable landing
facilities to carriers, large scale data center customers and
others that want to produce bandwidth services on top of
our infrastructure. Bulk considers itself as an infrastructure
provider within ber, being a partner rather than a com-
petitor to traditional carriers. Bulk has available thousands
of km of dark ber, including both intercontinental, North
European and intra-Nordic infrastructure that connects
main European markets as well as the US. We continue to
explore new subsea and terrestrial ber routes that could be
strategic enablers for the data center growth in the Nordics.
Investment criteria
• Sustainability: Target opportunities that enable or
deliver a fundamentally more sustainable global society
• Infrastructure: Invest in infrastructure that is critical for
the global, modern society
• Long term perspective and Scalable: Ability and
willingness to invest with an industrial mindset with
patience and focus on scalability from the start
• Nordic: Bulk Leverage the Nordic region’s favorable
business climate, sustainable power sources and political
stability
The investment criteria is set to ensure a mindset and
focus to support the Company’s long-term vision. The
Company has a strong capital allocation capability that
makes it robust to fundamental changes in market dynamics.
The Company´s headquarter is in the city of Oslo in Norway.
2021 in short
Our nancial results are a consolidation of different
business models within our three Business Areas. Some
of these business models represent nancial results that
can vary substantially from one nancial reporting peri-
od to another despite limited variability in the underlying
business. The primary reason for such uctuations are a)
portfolio sales of Industrial Real Estate projects, and b)
delivery of data center services (e.g., design, installation,
maintenance) where revenues occasionally include a
signicant proportion of hardware that is procured by Bulk
and included in a services delivery. Additionally, there may
be a difference between timing of cash ow and revenue
recognition for customer contracts within our Fiber Networks
business in IFRS reports, due to the business model of
selling Indefeasible Rights of Use (IRU). Please also see
note 2.
• Total revenues of NOK 365.7 million compared to NOK
431.4 million last year.
• Industrial Real Estate: The Group has a number of
ongoing processes with various tenants for the
development of new warehouse and logistics buildings.
A total of seven projects was nalized in 2021, while
ve new projects have been signed for 2022 in addition
to three signed projects on existing properties. New
and strategic land areas have been acquired in Norway
during 2021 in addition to two existing properties.
Two properties have also been sold during 2021.
• Data Centers: The development and operation of a
multi-site data center portfolio is in good progress.
Our Data Center business currently consist of three
data centers present in two Nordic countries with N01
Campus in Vennesla (Norway), OS-IX in Oslo (Norway)
and DK01 in Esbjerg (Denmark). Both Nordic and
International customers have been added during 2021.
• Fiber Networks: The Group has completed the
Norwegian Inter-City Ring system with live customers
on all segments. The Havfrue system connecting the US,
Denmark and Norway, was completed in late 2020 and
have been running un-interrupted with customer trafc in
2021. The last branch connecting Havfrue into Ireland is
expected nalized during 2022. The subsea segment of
the Havsil system connecting N01 (Norway) and DK01
(Denmark) was completed in 2021, ahead of schedule,
while the terrestrial segment will be nalized early 2022.
All Bulk ber networks (completed and in operation) have
been running without any interruption in services.
• Group development: Bulk Infrastructure and/or
relevant subsidiaries are certied in accordance with
ISO 9001 Quality Management, 14001 Environmental
Management, 22301 Business Continuity and 27001
Information Security. EN50600 for Data Center design
and operation is now implemented. As part of our focus
on sustainability, Bulk have also decided to measure
the Carbon Footprint of its activities and establish a
budget and action plan to reduce the greenhouse gas
emissions going forward.
• The COVID-19 pandemic had minor inuence on the
operations in 2021. It has not caused any critical incidents
or situations in our deliverables or business continuity.
The pandemic strategy has been to protect the employees
and critical business activity. The Business Continuity
corona team has been active also in 2021 and monitored
and follow up the situation to mitigate the situation. Bulk
has followed the national requirements and implemented
home ofce and other infection control measures as
required during the year. In addition the projects and
operation has followed up on the supply chain to mitigate
delays due to the Pandemic.
Going concern
In accordance with Section 3-3a of the Norwegian
Accounting Act, we hereby conrm the assumption of going
concern. The assumption is based on year-end 2021
status and The Group’s long-term strategic forecasts for
the years ahead. The Group has a solid nancial position.
Future development
Industrial Real Estate - The demand for new and modern
industrial properties remains high and we expect continued
healthy demand going forward. The Group has in 2021
signed new lease agreements of 80,000 sqm for new con-
structions and more than 60,000 sqm on existing property.
Bulk is also involved in zoning and development of new
industrial real estate locations, both alone and in partner-
ships. The transaction market for commercial property in
the Warehouse and Industrial real estate verticals has been
strong and we expect the demand for goods bought online
to continue to fuel market interest for our new build projects.
Data Centers - The underlying demand for data processing
and storage infrastructure is fueled by the global megatrend
of digitization. The Nordic market for data center capacity is
expected to grow signicantly going forward. At the macro
level, the expected growth is driven by the global increase
in need for data processing. Cool climate, energy surplus,
sustainable energy mix (zero-emission), low electricity
prices and political stability represents a strong value
proposition for the Nordic region, positioning the region for
an increasing share of the global data center market. Bulk
Infrastructure Group AS has, through fully and partly owned
subsidiaries, improved our position for taking a substantial
market share of this growth going forward with new capacity
developed in 2021 and additional plots suitable for data
center acquired in both Norway and Denmark. The combi-
nation of scalable data center assets at strategic locations
in the Nordics and our capability to develop new sites
with a short time to market, make Bulk a leading provider
in the Nordics. The underlying recurring revenue growth
across our asset portfolio is positive with new Nordic and
International customers added during 2021.
Fiber networks - The strong growth in data processing
and storage drives the demand for new investments in
underlying ber infrastructure, including both subsea and
terrestrial systems. Bulk is well positioned as a leading
provider of large capacity transport ber, both going into
the Nordics and within the Nordics. Several of Bulk’s new
20 21
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
systems will be completed and become operational during
2022: The Havfrue System, connecting the US and the
Nordics is fully operational between the US, Norway and
Denmark. The remaining branch connecting into Ireland,
will be ready for service in the second half of 2022. The
Havsil Cable system, connecting Kristiansand and Esbjerg
will be fully operational with live trafc early 2022. The
same goes for the Havhingsten system connecting the
UK and Ireland into Esbjerg. The Norwegian Inter-City
Ring was fully completed and operational in 2021 and will
see the last set of Telehousing units come in place during
summer 2022. We continue to explore opportunities for
new ber network developments being strategic enablers
for the Nordic data center market. The underlying recurring
revenue growth across our ber networks portfolio is
positive with new Nordic and International customers
added on our ber systems during 2021.
Report on the annual accounts
Total income for The Group was NOK 365.7 million compared
to NOK 431.4 million last year. The decrease of NOK 65.8
million mainly relates to lower revenue property sales of
NOK 115.9, partly offset by increased rental income and
increase in revenue from sales in the Data Centers area.
NOK 274.7 million of total income is generated from
Industrial Real Estate in 2021, compared to NOK 364.4
million last year. The Data Centers area generates a total
income of NOK 82.2 million in 2021, compared to NOK 62.7
million in 2020. The increase in the Data Centers area is
due to the refocusing towards long term internal growth
and development. In the Fiber Networks area, we gained
an income of NOK 7.0 million compared to NOK 2.9 million
in 2020. The Group’s operating prot was NOK 1,215.2
million in 2021 compared to NOK 152.7 million last year,
while the annual net prot was NOK 936.8 million in 2021,
an increase from NOK 76.4 million in 2020.
Industrial Real Estate contributes with a prot for the year
of NOK 1,101.3 million in 2021, compared to NOK 207.8
million last year.
Fair value adjustment on investment properties were NOK
1,352.8 million in 2021, compared to NOK 217.7 million in
2020. The positive fair value adjustment is mainly related
to several new signed customer contracts during 2021
and a positive development of the value of both yielding
properties and strategic plots.
Total current assets were NOK 871.5 million as of December
31, 2021 compared to NOK 235.7 million as of December
31, 2020.
Total cash were NOK 870.0 million as of December 31, 2021
compared to NOK 216.2 million as of December 31, 2020.
Cashow from operations were negative with NOK 106.1
million in 2021 compared to positive NOK 194.6 million in
2020. The decrease is mainly related to reduced change
in property under development related to sale of property
compared to last year in addition to increased trade and
other receivables. Cashow from investments in 2021 is
negative with NOK 1,208.3 million, of which NOK 1,093.0
million is related to purchase and improvement in investment
property and NOK 321.3 million is related to purchase of
xed assets, mainly in the data center and ber segment.
Cashow from nancing is positive with NOK 1,935.7
million in 2021, mainly related to proceeds from borrowings
of NOK 601.5 million and capital contribution from parent
company of NOK 600.0 million.
The Group’s total liabilities amounted to NOK 3,866.5
million as of December 31, 2021, compared to NOK
1,964.4 million as of December 31, 2020. The increase
in mainly due to increased borrowings related to ongoing
construction projects and investment property, non-
registered capital contribution and debt to related party.
The Group continuously monitors the Groups installments
and expiration of the long-term debt and prepares
action plans to be able to meet its obligations.
Other nancial and interest costs amounted to NOK 81.5
million in 2021 compared to NOK 55.0 million in 2020.
The Group monitors its nancial cost and is continuously
working on nancial structure.
Total assets at the end of the year amounted to NOK
6,874.2 million compared to NOK 3,822.3 million last year.
The equity-to-assets ratio as of December 31, 2021 was
43.8 %, compared to 48.6 % as of December 31, 2020.
The Group’s nancial position is strong.
Research and development
The Group has invested resources and know-how into
research and development during 2021. Our largest research
investment relates to standardized high-capacity data center
designs that offer low cost of ownership, strong operational
standards, sustainable solutions and short time to market
for development. The objective is to benet from the R&D
project by being the fastest provider to deliver high quality
and large data center capacity to the Nordic market going
forward.
Financial risk
The Group is exposed to these types of risk:
Liquidity risk - The Group intends to have sufcient
liquidity to meet all its obligations, including the new
investments that are ongoing. The Group intends to main-
tain a reasonable amount of liquidity to meet unforeseen
obligations. The Group continuously monitors the Groups
liquidity and has a long-term liquidity forecast in place.
Interest risk - The Group has loans with a number of
nancial institutions, all with long-term repayment plans.
The Group is exposed to changes in NIBOR interest rates
and SWAP interest. The distribution of xed and oating
interest rates was 9/91 by the end of the period.
Credit risk - The Group’s warehouse and distribution prop-
erties are characterized by high standards, good locations,
long lease agreements and reliable tenants. There were
no material credit losses in 2021. The Group’s tenants nor-
mally pay quarterly and in advance. The lease agreements
usually require an additional form of collateral or security.
Currency Exchange risk – The Group is increasingly ex-
posed to both cost and revenue in different currencies due
to growth in international assets and customers. Process-
es and tools to manage these up and down-side risks are
being developed in line with increased exposure.
Market risk
The transaction market for commercial properties
Demand for commercial real estate in Norway is currently
high. Particularly properties with long-term lease agreements
and low rental fees are attractive. Demand is expected to
keep strong as long the interest rates remain low.
Rental Market for warehouses and logistic buildings
The Group is exposed to the risk of changes in lease and
rental prices in the market. The Group has several long-
term lease agreements in place. The weighted average
lease term for tenants has increased from 7.0 years last
year to 7.7 years as of December 31, 2021 due to several
new signed long-term agreements. The lease agreements
provide The Group with xed and predictable revenues
throughout the contract period. Most lease agreements
are adjusted annually 100 % in line with the consumer
price index. The rate of vacancy in the groups properties
is 2,7 % as of December 31, 2021, compared to 23.0 %
as of December 31, 2020.
Demand for data center services and Fiber networks
The macro drivers for large scale demand for digital Nordic
infrastructure are healthy and suggest strong market growth
long term. The timing of such large-scale demand asset by
asset is difcult to predict and hence exposes The Group
to short term uncertainty on capacity development and
utilization. Risk is managed by strong focus on our time to
market capability that allows for better matching of capacity
build-out and veried demand as well as discipline in build-
up of xed cost in early stages of new asset operations.
Working environment and personnel
Bulk had a total of 70 employees at the end of year 2021.
The Bulk workforce has increased with 15 new employees.
In addition to permanent employees, over 30 consultants
and 15 subcontractors performing operational services on
Bulks behalf.
Bulk is committed to a goal of zero harm to people, assets,
and the environment. The cornerstone of this objective is a
strong, structured, and companywide HSE system, setting
clear standards for HSE management and leadership.
Regular audits aim to identify and help address potential
shortcomings. Bulk is focused on continuous improvement
and learning throughout the organization. The HSE culture
is founded on the principle that HSE is personally respon-
sibility for every employee.
In total Bulk had two injuries within our subcontractors
related to the industrial real estate business. One of the
injuries required medical treatment, and the other one
caused lost workdays (lost time injury). Both persons
recovered well.
Bulk is committed to a goal of zero harm to its employees,
not just through accident prevention, but also through
safeguarding employee’s physical and mental health.
One of the key priorities in 2021 was to also care for the
mental health of employees during the pandemic. This
included efforts to avoid negative effects of long-term
use of home ofce and other precautions during the past
year for signicant numbers of employees. The employees
have been offered home ofce equipment, such as extra
screens and ofce chairs, to provide better working
conditions. All employees of Bulk are covered by a health
insurance with access to medical and mental health
services and ergonomic treatments.
The sick leave amounted to 1,9% of the total work force
in 2021 compared to 3,01% in 2020. As a result of the
continuance of the pandemic, most of the employees have
been working from home during larger periods of the year,
with exception of critical operations personnel. With the
COVID-19 pandemic, a key priority in 2021 was to safe-
guard employees and ensure that business continuity
was maintained.
The company complies with Norwegian law i.e within
maternity/ paternity leave, sick leave and sick leave
days for being home with children.The company gives
the employees leave with full pay.
The employees of Bulk have 2 elected employee
representatives to submit request or grievances on
behalf of the staff. The representatives have a quarterly
meeting with CEO and HR. The company has also a
safety representative on each location.
Bulk has all year People process. This entails focus on
Engagement, Development and Appreciation. Bulk introduced
23
Bulk Infrastructure Group AS Annual Report 2021Bulk Infrastructure Group AS Annual Report 2021
22
a new and updated process for the People dialogue in
2021. The People dialogue will be an annual event in
February every year.
The company introduced the Engagement & Satisfaction
system Winningtemp in November 2021.
Winningtemp is based on articial intelligence in combination
with international studies on well-being. The employees
receive a bi-weekly short questionnaire that is linked to
9 categories concerning Engagement & Satisfaction.
The survey is done anonymously. Bulks aim in introducing
a system such as this, is to measure and optimize the
employee experience. This enables Bulks leaders to
check in with our employees across countries, time zones,
at the ofce or working from home.
Bulk has established routines for notications & deviation
reports. All employees of Bulk have the right and a duty to
notify, and we encourage employees to use the opportunity
when needed. Guidelines for deviation reports are listed
in the companies HMS Handbook.
The Company has also an internal Hotline established on
an online notication channel, for employees that wants
to remain anonymous and / or want an independent party
(KPMG) to receive their notice.
Gender equality and discrimination
Bulk is committed to equal career opportunities and work
continuously on promoting a diverse and gender balanced
workforce. Out of total recruitments in 2021, 43 percent
were women. Bulk has successfully recruited and increased
their gender balance from 26,8 percent in 2020 to 42
percent in 2021. The executive team increased from all
men to 1/3 women.
Bulk will continue recruitment of female professionals and
maintaining a focusing on the best suitable candidate for
each role. This also relates to orientation, age, nationality,
and other types of discriminatory factors.
The Company is aware of the importance of equal oppor-
tunities relating to promotions, performance, development
opportunities as well as compensation & benets. These
areas are all assessed and reviewed once a year.
Environment reporting/
Preserving the environment
Apart from legal obligations, our company will proactively
protect the environment and strive to create long term
sustainable solutions for the next generations.
Bulk was founded on the concept of making the sustainable
and societal advantages of the Nordics available to the
global market. We are proud of our vision: Racing to bring
sustainable infrastructure to a global audience. We pursue
opportunities to contribute to global sustainable development
at scale and we use our creative power to develop new
high quality, reliable and clean solutions. We respect the
environment, people and society as a whole. In January
2022, Bulk joined UN Global Compact; the world’s largest
voluntary corporate sustainability initiative. For 2022 Bulk
will report (CoP 2022) on aligning with the SDGs and the
ten principles for responsible business with strategy and
operations.
Our Integrated Management System is used to soundly
manage, secure and continuously improve all work
processes that affect Environment, and we follow up our
performance indicators from our Environmental Action
plan along with systematic risk management.
In August 2021, the United Nations Intergovernmental
Panel on Climate Change (IPCC) launched its sixth main
report. The report is clear — and Bulk shares the sense
of urgency about climate change. Bulk works to protect
the environment by offering products and services that
promote the reduction of the environmental footprint of
customers’ operations where possible. There is commitment
from the company to reduce its own internal emissions
by control of its internal activities. In 2021, Bulk started
to map its greenhouse gas emissions from our business
activities according to the Greenhouse Gas Protocol.
Both the mandatory scope 1 and 2, and indirect in scope 3.
Bulk has set the following climate targets:
• Net zero company by 2050
• 50% emission reduction from scope 1 and 2 by 2030
• 30% emission intensity reduction from scope 1, 2, and
3 by 2030
By taking action to reduce emissions and measuring the
impact Bulk is gaining knowledge as we go on how fast
we can reach net-zero, therefore the reduction targets will
be revised yearly and becoming stricter so that we always
strive to improve faster. Bulks reduction targets and
pathway to net-zero will be align with the Science-Based
Target Initiative (SBTI).
Through the Climate Neutral Data Center Pact, Bulk has
committed the company to the European Green Deal. Bulk
will contribute to achieving the ambitious greenhouse gas
reductions of the climate law and leveraging technology
and digitalization to achieve the goal of making Europe
climate neutral by 2050.
A key priority in 2021 was analyzing the impact of the
company on the Sustainable Development Goals (SDG),
and setting targets and actions to mitigate our carbon
footprint towards 2030. To ensure that we deliver projects
and operate our business to high environmental standards
we will in 2022 further development this Environmental
action plan and set ambitious targets and actions in the
categories:
• Energy efciency
• Material management
• Water management
• Protection of land and nature
Corporate governance
- risk management and internal control
General
Bulk is subject to corporate governance reporting
requirements according to the Norwegian Accounting Act,
section 3-3b.
Bulk’s board of directors believes that good Corporate
Governance is a prerequisite for a sound and sustainable
company and Bulk’s corporate governance is based on
openness and equal treatment of shareholders. Bulk’s
objective for Corporate Governance is accountability,
transparency, fairness, and simplicity with the goal of
maximizing shareholder value while creating added value
for all in compliance with laws, regulations and ethical
standards.
Governing structures and controls help to ensure that we
run our business in justiable and protable manner for the
benet of employees, shareholders, partners, customers,
and society.
Bulk is committed to operate in accordance with respon-
sible, ethical, sustainable, and sound business principles,
with respect for people, the environment, and the society.
The work of the board of directors is based on the exis-
tence of a clearly dened division of roles and responsi-
bilities between the shareholders, the board of directors
and the company’s management. Policies and procedures
have been established to manage risks and the board of
directors evaluate the overall risk management systems
on a regular basis.
The board of directors ensures that Bulk has in place
sound and appropriate internal control systems and
systems for risk management. Having effective internal
control systems and systems for risk management in place
prevents the group from situations that can damage its
reputation or nancial standing. Furthermore, effective and
proper internal control and risk management are important
factors when building and maintaining trust, to reach the
company’s objectives, and ultimately create value. Bulk
has implemented an Integrated Management System that
are proportionate to and reect the extent and nature of
Bulk’s activities. The Integrated Management System
carries out processes to analyze: 1) the organizational
context and strategic priorities; 2) the organization’s
interested parties and their requirements; and 3) the
organization’s risks and opportunities, including those
which should be treated within the structure of its
management system.
The internal control system also addresses the organization
and execution of the company’s nancial reporting, as well
as cover the company’s corporate values, compliance with
all laws and regulations that apply to the Group’s business
activities, ethical guidelines and principles of corporate
social responsibility. Bulk’s core values are clearly dened
and are reected in the Company’s Code of Ethics. The
Code of Ethics includes ethical guidelines and guidelines
for corporate social responsibility, hereunder bribery and
anti-corruption, unlawful discrimination and human rights,
health, safety, and environmental issues.
The Group have a directors and ofcers liability insurance
in place. The insurance coverage is NOK 75 million and
cover all Group Companies within ownership of 50% or
more. The insurance applies to board members, CEO,
members of the Group Management and employees that
may incur independent management responsibility. The
directors and ofcer’s liability insurance covers the entire
world for Companies registered in Norway. It does not
cover lawsuits led in USA and Canada in accordance
with American laws.
Corporate governance in Bulk is subject to regular review
and discussion by the board of directors.
Annual review and risk management in the annual report
The board of directors annually reviews the company’s
most important areas of risk exposure and the internal
control arrangement in place for such areas. The review
pay attention to any material shortcomings or weaknesses
in the company’s internal control and how risks are being
managed.
In the annual report, the board of directors describes the
main features of the company’s internal control and risk
management systems as they are connected to the
company’s nancial reporting. This cover the control
environment in the company, risk assessment, control
activities and information, communication and follow-up.
The board of directors is obligated to ensure that it is
updated on the company’s nancial situation and shall
continually evaluate whether the company’s equity and
liquidity are adequate in relation to the risk from the
company’s activities, and take immediate action if the
company’s equity or liquidity at any time is shown to be
inadequate. The company’s management focus on
frequent and relevant reporting of both operational and
nancial matters to the board of directors, where the
purpose is to ensure that the board of directors has
sufcient information for decision-making and is able to
28 Profit and loss
30 Consolidated balance sheet
32 Change in equity
33 Cashflow statement
34 Notes to the consolidated financial statements
Bulk Infrastructure Group AS
Consolidated financial
statements 2021
Peder Nærbø
Founder and Executive Chair
25
Bulk Infrastructure Group AS Annual Report 2021
24
Bulk Infrastructure Group AS Annual Report 2021
Oslo, March 24, 2022
The board of Bulk Infrastructure Group AS
respond quickly to changing conditions. Board meetings
are held frequently, and management reports are provided
to the board as a minimum on a quarterly basis.
Human rights
Our company is dedicated to protecting human rights. We
are a committed equal opportunity employer and will abide
by all fair labor practices. We will ensure that our activities
do not directly or indirectly violate human rights.
Bulk will follow up all required activities Human rights and
rollout standardized human rights training to all in 2022.
Donations and aid
Our company may preserve a budget to make monetary
donations. These donations will aim to:
• Advance the arts, education and community events
• Alleviate those in need
• Support initiatives related to sustainability
Supporting the community
Our company may initiate and support community investment
and educational programs. It can provide support to nonprot
organizations or movements to promote cultural and
economic development of global and local communities.
Bulk engage in local initiatives like partnering with the
Sustainability Festival in Kristiansand – and sponsoring
Sustainathon for students, Global Goals World Cup and
Sustainable Conference. Bulk also collaborate with a local
university providing cases for Master theses and participate
in local research projects – like Norce regarding hydrogen
distribution and storage.
Subsequent events
Bulk Data Centers AS, the subsidiary of Bulk Infrastructure
Group AS, acquired the remaining 50 % of associated
company, OS-IX Eiendom Holding AS, from Akershus
Energi on January 19, 2022. As such, Bulk Data Centers
takes full ownership of OS-IX.
Bulk Infrastructure Group AS received a Capital contribution
from parent company, Bulk Infrastructure Holding AS, in
November 2021. The capital contribution is not registerred
as of December 31, 2021. The capital contribution was
formally registerred on February 2, 2022.
The Group established an incentive program in the end
of 2021 with certain new employees. The program includes
synthetic options which will be effective Januray 1, 2022.
There are no other material subsequent events after the
reporting period.
Profit/Loss for the year and allocation of funds
The Board of Directors proposes that the loss for the
year for Bulk Infrastructure Group AS amounting to
NOK 12,844 thousand will be transferred as follows;
Other equity
-12,844
Total brought forward -12,844
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
26 27
Consolidated financial
statements 2021
Presentations
1 Consolidated statement of prot and loss and other comprehensive income
2 Consolidated balance sheet
3 Consolidated statement of changes in equity
4 Cashow statements- consolidated
Notes to the consolidated accounts for 2021
1 Corporate information
2 Accounting principles
3 Accounting estimates
4 Segment information
5 Rental income
6 Investment property and inventories property
7 Other operating expenses
8 Employee benet expense
9 Joint venture and associated companies
10 Financial income and costs
11 Tax
12 Goodwill and impairment
13 Intangible assets
14 Property, plant & equipment
15 Investments in subsidiaries, joint ventures and associated companies
16 Financial assets and liabilities
17 Options, contingent assets and contingent liabilities
18 Leases - group as a lessee (IFRS 16 disclosure)
19 Inventories
20 Trade and other receivables
21 Cash and cash equivalents
22 Paid in equity and shareholders
23 Financial risk management
24 Capital structure and capital management
25 Interest-bearing debt and bond loan
26 Derivative nancial instruments
27 Accounts payable and other payables
28 Subsequent events after the reporting period
Manic-5 hydroelectric dam in Québec, Canada
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
28 29
Consolidated statement of profit and loss
For the year ended 31 December 2021
Consolidated statement of profit and loss
For the year ended 31 December 2021
(NOK ’000) Notes 2021 2020
Rental income 4,5 83,342 45,405
Revenue property sales 4,6 182,537 303,173
Revenue from sales 4 64,545 50,411
Other revenue 4 35,248 32,442
Total revenue and other income 4,5 365,673 431,432
Property-related expenses 4 12,269 4,159
Cost of property sales 4,6 173,883 261,575
Cost of sales 4 61,291 56,936
Other cost 7,8 255,805 173,673
Total expenses 503,248 496,344
Operating prot before fair value adjustments on investment properties -137,575 -64,912
Fair value adjustments on investment properties 6 1,352,819 217,655
Operating prot 1,215,243 152,742
Share of prot/loss(-) of investments accounted for using the equity method 9 77,267 -7,875
Finance income 10 19,243 16,046
Finance costs 10 112,812 68,533
Fair value adjustments on derivatives 10 4,901 -2,935
Net nancial items -11,402 -63,296
Prot before income tax 1,203,841 89,446
Income tax expense 11 267,009 13,037
Prot for the year 936,832 76,409
(NOK ’000) Notes 2021 2020
Prot for the period 936,832 76,409
Other comprehensive income
Items that may be reclassied to prot and loss
Exchange differences on translation on foreign operations 4 -6,417 9,687
Other comprehensive income for the year, net of tax -6,417 9,687
Total comprehensive income 930,415 86,096
Attributable to:
Shareholders in the parent Company 768,729 86,096
Non-controlling interests 161,685 -
Earnings per share basic and diluted (NOK) 22
Oslo, March 24, 2022
The board of Bulk Infrastructure Group AS
Peder Nærbø
Founder and Executive Chair
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
30 31
Consolidated balance sheet Consolidated balance sheet
(NOK ’000) Notes 2021 2020
Assets
Intangible xed assets
Goodwill 12,13 - 16,948
Other intangible assets 13 1,445 4,528
Total intangible assets 1,445 21,475
Other non-current assets
Investment property 4,6 4,184,248 1,777,179
Property, plant & equipment 14 1,328,690 1,390,238
Investment in Associated company 9,15,28 289,212 247,040
Receivable from related party 16 10,497 133,826
Derivative nancial instruments 16,26 1,139 -
Other receivables 16,17 12,616 3,491
Investment in shares 16 1,249 1,249
Right-of-use assets 18 175,101 31,597
Total other non-current assets 6,002,752 3,584,621
Total non-current assets 6,004,197 3,606,096
Current assets
Inventories 19 5,484 5,932
Property under development - inventory 6 - 19,599
Receivable from related party 16 15,093 -
Trade and other receivables 16,20 154,564 117,082
Cash and cash equivalents 16,21 694,826 73,561
Total current assets 869,967 216,175
Total assets 6,874,164 3,822,272
(NOK ’000) Notes 2021 2020
Equity and liabilities
Paid in equity
Ordinary shares 2,731 2,630
Share premium 1,856,531 1,656,631
Total paid in equity 22,28 1,859,261 1,659,261
Retained earnings
Retained earnings 937,008 198,635
Total retained earnings 937,008 198,635
Non-controlling interests 211,367 -
Total equity 22,28 3,007,636 1,857,897
Non-current liabilities
Bond loan 16,25 969,350 966,205
Borrowings 16,23,25 1,081,665 364,500
Derivative nancial instruments 16,26 9,540 12,901
Lease liabilities 18 31,885 28,661
Contract liabilities 4 30,765 26,902
Other long-term liabilities 16,23 33,634 48,000
Deferred tax liabilities 11 290,451 10,017
Total non-current liabilities 2,447,291 1,457,187
Current liabilities
Trade payables 27 74,927 94,193
Short-term portion of borrowings 16,23,25 140,618 259,385
Short-term portion of derivatives 16,26 1,279 1,679
Short-term portion of lease liabilities 18 8,144 4,217
Non-registered capital increase 28 400,000 -
Debt to related party 16 662,768 -
Contract liabilities 4 1,308 941
Other payables 16 130,192 146,772
Total current liabilities 1,419,237 507,188
Total liabilities 3,866,528 1,964,375
Total equity and liabilities 6,874,164 3,822,272
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
32 33
Consolidated statement of changes in equity
(NOK ’000) Note Paid in equity Retained earnings
Share
capital
Own
shares
Share
premium
Exchange
differences
on translation
on foreign
operations
Retained
earnings
Non-
controlling
interests Total equity
1/1/2020 2,630 -110 1,659,982 - 120,942 7,500 1,790,944
Prot for the period 76,409 76,409
Other comprehensive income - currency 9,687 9,687
Group restructuring - demerger/merger 110 -3,351 -11,551 -7,500 -22,292
Other changes 3,149 3,149
12/31/2020 2,630 - 1,656,631 9,687 188,948 - 1,857,897
1/1/2021 2,630 - 1,656,631 9,687 188,948 - 1,857,897
Prot for the period 775,147 161,685 936,832
Other comprehensive income - currency -6,417 -6,417
Share issue 22 100 199,900 200,000
Sale of shares to minority -35,073 49,681 14,608
Other changes 4,716 4,716
12/31/2021 2,731 - 1,856,531 3,270 933,738 211,367 3,007,636
Cashflow statement - consolidated
(NOK ’000) Note 2021 2020
Cash ow from operations
Prot before income taxes 1,203,841 89,446
Adjust for:
Depreciation and impairment 13,14 53,097 32,246
Fair value adj. on investment properties 6 -1,352,819 -217,655
Share of prot/loss(-) of investments accounted for using 9,10 -77,267 7,875
the equity method
Finance income 10 -19,243 -16,046
Finance costs 10 112,812 68,533
Fair value change derivatives 10 -4,901 2,935
Cashow before change in working capital -84,478 -32,666
Change in working capital
Trade and other receivables -59,959 48,841
Trade and other payables -24,466 -28,052
Property under development - inventory 62,759 206,520
Net cash ow from operations (A) -106,144 194,642
Cash ow from investments
Purchase and improvements of investments property 6 -1,093,011 -570,953
Sales credit purchase investment property - 89,000
Sale of ber infrastructure 14 206,074 -
Dividend received 9 650 1,350
Purchase of shares in associated companies -761 -108,506
Purchase of xed assets 13,14 -321,275 -266,562
Net cash ow from investments (B) -1,208,324 -855,671
Cash ow from nancing
Sale of shares in group companies 62,493 -
Finance cost paid including interest paid on derivatives 10 -94,859 -68,533
Interest received 10 1,051 7,381
Proceeds from Borrowings 23 601,544 487,318
Change in other long-term liabilities -14,366 -
Change in receivable related party 123,329 -
Change in payable related party 662,768 -
Principal paid on lease liabilities 18 -4,163 -2,340
Interest paid on lease liabilities 18 -2,064 -2,026
Cash effect demerger - -8,686
Share issue 200,000 -
Non-registered share issue 400,000 -
Dividend paid - -137,132
Net cash ow from nancing (C) 1,935,733 275,983
Net change in cash and cash equivalents (A+B+C) 621,265 -385,046
Cash and cash equivalents at the beginning of the period 73,561 458,607
Cash and cash equivalents at the end of the period 694,826 73,561
Restricted funds 21 4,494 4,024
Certain items in the 2020 cashow presentation has been altered to align with 2021 presentation.
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
34 35
Note 1
Corporate information
2.1 Basis of preparation
The consolidated nancial statement has been prepared in
accordance with International Financial Reporting Standards
(IFRS) as endorsed by the EU. The Group also present additional
disclosures as required under the Norwegian Accounting Act.
• The consolidated nancial statement has been prepared on a
historical cost basis, with the following exceptions:
• Investment properties are recognized at their fair value and
changes in fair value are recognized as fair value adjustment
in the income statement
• Financial derivatives are recognized at their fair value over the
prot and loss statement
• Investment in shares are recognized at fair value over prot
and loss
• The consolidated accounts have been prepared with consistent
accounting principles for similar transactions and events. The
corresponding gures have been prepared on the basis of the
same accounting principles.
2.2 Changes in accounting policies
New and amended standards effective from 2021
There are no new standards effective for the scal year 2021.
However, there are several new amendments to standards and
interpretations that are effective for the scal year 2021.
There have been amendments to the IFRS 4 - Extension of the
temporary exemption from applying IFRS 9, and amendments
to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 – Interest rate
benchmark reform - phase 2. Further, there has been amendments
to IFRS 16 – Covid-19 related rent concessions. These amendments
are not further outlined as they are not considered to have signicant
impact on the Group’s consolidated accounts.
2.3 Consolidation
Subsidiaries
When the company has control over an investee, it is classied
as a subsidiary. Control is determined by signicant inuence
in another entity through majority of shares. The company controls
an investee if the company has power over the investee, is
exposed to variable returns from the investee, and has the ability
to use its power over the investee to affect those variable returns.
Control is reassessed whenever facts and circumstances indicate
that there may be a change in any of these elements of control.
All entities of which the Group has ownership of at least 51 %
is dened as a subsidiary. As of 2021, the Group has two
subsidiaries in the Real Estate segment with 51 % ownership.
Subsidiaries are consolidated from the date the group gains
control until the date control ceases.
Acquisitions of subsidiaries – business combinations
The group applies the acquisitions method to account for acquisition
of subsidiaries or other entities. The assets and debt transferred in
business combinations are recognized at their fair values at the
acquisition date. Deferred tax is calculated based on the difference
between fair value and the tax bases of assets and debt.
Goodwill is calculated as the excess of the consideration and the
net fair value of the net identiable assets, liabilities and contingent
liabilities of the acquire and the fair value of the non-controlling
interest in the acquire. The minority interest is valued either at fair
value or by the non-controlling interest share of the net assets.
Goodwill is not depreciated but an impairment test is performed
each year. If the fair value of net asset is in excess of consideration
transferred (“negative goodwill”) a gain is recognized in prot and
loss on the date of acquisition. No business combinations were
performed in 2021.
Acquisition of subsidiaries not viewed as business
combinations
Acquisition of entities in which the activities do not constitute a
business, are accounted for as a purchase of assets in accordance
with IFRS 3. The acquisition cost is allocated to the acquired
assets. No goodwill is calculated for this type of acquisition, and
no deferred tax is recognized for temporary differences that arises
at initial recognition. The Group’s business continuously includes
acquisitions, mostly within the Industrial Real Estate segment.
During 2021 the Group has carried out two acquisitions accounted
for as purchase of single asset.
Joint arrangements
A joint arrangement is an arrangement of which two or more
parties have joint control. Joint arrangements are classied as
joint operations and joint ventures depending on the rights and
obligations of the parties to the arrangement.
• Joint operations: In joint operations, two or more organiza-
tions contribute on a specic project. The organizations oper-
ate individually and there are agreements in place regarding
resources and responsibilities related to the project. The
parties in the joint operation have joint control of the assets,
and obligations for the liabilities, relating to the arrangement.
The Group currently has such an ongoing project related to
the transatlantic subsea system, Havfrue. Bulk recognizes
our part, according to the Havfrue project agreement, of the
assets and liabilities in the joint operation, as well as revenue
and expenses. The accounting treatment is in line with IFRS 11.
• Joint ventures: Joint ventures are accounted for using the
equity method of accounting. Under the equity method, the
investment is initially recognized at cost, and the carrying
amount is increased or decreased to recognize the investor’s
share of the prot or loss of the investee after the date of
acquisition. Prots and losses arising on transactions
between the Group and joint ventures are recognized only
to the extent of unrelated investors’ interests in the entity.
The investor’s share in the joint venture’s prots and losses
resulting from these transactions is eliminated against the
carrying amount of the investment in the joint venture. The
Group currently has three joint ventures. Refer note disclo-
sures for further details.
Associates
Investments in associates are entities over which the group has
signicant inuence but not control (generally accompanying
a shareholding of between 20% and 50% of the voting rights).
Associates are included using the equity method from the date
when the group achieves signicant inuence. When the group
no longer have signicant inuence the equity method is no
longer applied. Under the equity method, the investment is initially
recognized at cost, and the carrying amount is increased or
decreased to recognize the investor’s share of the prot or loss of
the investee after the date of acquisition. The group’s investment
in associates includes goodwill identied on acquisition.
Elimination of transactions
Inter-company transactions and balances between group
companies are eliminated.
Unrealized gains on transactions with associates are eliminated
to the extent of the group’s interest in the associate. Unrealized
losses are eliminated unless the transaction provides evidence of
an impairment of the asset transferred.
2.1 Basis of preparation
2.2 Changes in accounting policies
2.3 Consolidation
2.4 Foreign currency translation
2.5 Investment property
2.6 Property, plant and equipment
2.7 Lease agreements
2.8 Goodwill
2.9 Impairment of non-nancial assets
2.10 Financial assets
2.11 Borrowing costs
2.12 Inventory
2.13 Share capital
2.14 Current and deferred income tax
2.15 Provisions
2.16 Revenue recognition
2.17 Property-related expenses and other costs
2.18 Interest income
2.19 Classication of assets and debt
2.20 Dividends
2.21 Segment information
Note 1
Corporate information
Note 2
Accounting principles
registered in Norway . The head ofce of the company is
in Karenslyst Allé 53, Oslo, Norway . The Company is the
subsidiary of Bulk Infrastructure Holding AS. The Company
is the parent company of Bulk Industrial Real Estate AS,
Bulk Data Centers AS and Bulk Fiber Networks AS.
The covid-19 pandemic has not had any signicant impact
on the Group.
Bulk Industrial Real Estate is a Nordic real estate developer,
specializing in industrial buildings, large modern warehouses,
crossdock terminals and logistics parks. The business area was
established in 2006 and has already developed and delivered to
customers more than 500,000 m² of high quality, exible and energy
efcient facilities. As of December 31, 2021, additional 60,453 m²
are under construction and ready to be handed over in 2022.
Bulk Data Centers is an industrial developer and operator of data
centers and data center services across the Nordics. Bulk has
a portfolio of assets, capabilities and partners to serve any data
center customer requirement in a fast, secure, cost efcient and
sustainable way. We operate scalable facilities, we continue to
add new sites to our portfolio, and we have access to strategically
located land. We have in-house expertise in data center design,
engineering and operations that combined with our industrial
real estate development experience and dark ber network
deployments allow us to shape the full value chain of the data
processing infrastructure. We can serve customers in dedicated
hyperscale facilities and customers in need of server racks in a
Colo environment.
Bulk Fiber Networks owns and controls dark ber infrastructure
with the purpose of enabling the Nordics for large scale data
processing. Our ber infrastructure is modern with high capacity
including both subsea and terrestrial systems. We can offer dark
ber to carriers, large scale data center customers and others that
want to produce bandwidth services on top of our infrastructure.
Bulk considers itself as an infrastructure provider within ber,
being a partner rather than a competitor to traditional carriers.
Bulk has available thousands of km of dark ber, including both
intercontinental, North European and intra-Nordic infrastructure
that connects main European markets as well as the US. We
continue to explore new subsea and terrestrial ber routes that
could be strategic enablers for the data center growth in the Nordics.
The Board of Directors authorized these nancial statements for issue on March 24, 2022.
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
36 37
2.4 Foreign currency translation
The Group’s presentation currency is NOK. This is also the
functional currency of the parent company and most of the
subsidiaries. The Group has two subsidiaries in the UK of which
the functional currency is GBP. Further, ve subsidiaries are
located in Denmark and have DKK as the functional currency.
The balance sheet items of foreign subsidiaries are translated and
consolidated with the year-end currency rate. The income statement
is translated using the average currency rate for the period.
Foreign currency transactions are translated into the functional
currency using the exchange rates prevailing at the dates of the
transactions. Monetary assets and liabilities in foreign currencies
are translated to the year-end transaction date and recognized in
other comprehensive income. Foreign exchange gains and losses
are recognized in the income statement. The average exchange rate
was 1.3631 DKK/NOK in 2021 (2020: 1.4382) and 11.9398 GBP/
NOK in 2021 (2020: 12.0514). At 31 December 2021 an exchange
rate of DKK/NOK 1.3432 (2020: 1.4071) and GBP/NOK 11.8875
(2020: 11.6462) was used for the valuation of balance sheet items.
2.5 Investment property
Property held with the purpose of achieving rental income, increase
in value, or both, are classied as investment property. Investment
property also include property under development for future use
as investment property.
Owned investment property is initially measured at cost. Transaction
costs are included in the initial measurement. Cost comprises
of the purchase price and any directly attributable expenditure,
including professional fees for legal services, property transfer
taxes and other transaction costs.
After initial recognition, the investment property is measured at
fair value. The Group obtains valuations on investment property
semi-annually from an external party. The valuations related to
projects under construction are presented at discounted fair value
of the property. The valuation does not account for costs related
to nalization of the projects. As such, management adjusts the
valuation on these projects with remaining construction cost. Gains
or losses arising from changes in fair value are recognized over
prot and loss in the period they arise. Management conducts
internal valuation based on input from projects on a quarterly basis.
Subsequent costs relating to investment property are included in
the carrying amount if it is probable that they will result in future
economic benets for the investment property and the costs can
be measured reliably. Expenses relating to operations and
maintenance of the investment property are recognized in prot
and loss in the nancial period in which they are incurred.
Investment properties are derecognized when they are sold or are
permanently withdrawn from use and no future economic benet
is expected if disposed of. All gains or losses relating to sales or
disposal are recognized in prot and loss.
Investment property is transferred from investment property only
when there is a change in use. A reclassication from investment
property to inventories is made when development with a view to
sell is commenced.
2.6 Property, plant and equipment
Properties that do not qualify as investment property is presented
as property, plant and equipment. Such property is mostly related
to ber infrastructure, data center buildings, technical infrastructure,
and land, and other xed assets. Other xed assets include,
among other things, electric cars and upgrade of rented ofce
premises. All property, plant and equipment are recognized at
cost less accumulated and impairment losses. Cost includes
expenditure that is directly attributable to the acquisition of the item.
Subsequent costs are included in the assets carrying amount or
recognized as a separate asset, as appropriate, only when it is
probable that future economic benets associated with the item
will ow to the group and the cost of the item can be reliable
measured. All other repairs and maintenance are recognized
in prot and loss as incurred.
Land is not depreciated. However, ground works that are subject
to physical deterioration will be depreciated. Depreciation on assets
under construction does not commence until they are complete and
available for use. All other items of property, plant and equipment
are depreciated over their expected useful economic lives. The
expected useful economic life currently ranges from 4 – 50 years,
of which the highest expected life relates to data center buildings
and ber infrastructure.
2.7 Lease agreements
(a) When a group company is the lessee
Upon lease commencement the Group recognizes a right-of-use
asset and a lease liability. The right-of-use asset is initially measured
at the amount of the lease liability plus any initial direct costs
incurred. After lease commencement, the Group measures the
right-of-use asset using a cost model.
Under the cost model a right-of-use asset is measured at cost
less accumulated depreciation and accumulated impairment.
The lease liability is initially measured at the present value of the
lease payments payable over the lease term, discounted at the
rate implicit in the lease if that can be readily determined. If that
rate cannot be readily determined, the Group uses its incremental
borrowing rate. Variable lease payments that depend on an index
or a rate are included in the initial measurement of the lease
liability and are initially measured using the index or rate as at
the commencement date. Amounts expected to be payable by the
Group under residual value guarantees are also included. Variable
lease payments that are not included in the measurement of the
lease liability are recognized in prot or loss in the period in which
the event or condition that triggers payment occurs.
The lease liability is subsequently remeasured to reect changes in:
• the lease term (using a revised discount rate)
• the assessment of a purchase option (using a revised
discount rate)
• the amounts expected to be payable under residual value
guarantees (using an unchanged discount rate)
• future lease payments resulting from a change in an index or a
rate used to determine those payments (using an unchanged
discount rate)
The remeasurements are treated as adjustments to the right-of-
use asset.
(b) When a group company is the lessor
The group classies each lease as an operating lease or a
nance lease. A lease is classied as a nance lease if it
transfers substantially all the risks and rewards incidental to
ownership of an underlying asset. Otherwise a lease is classied
as an operating lease.
Examples of situations that individually or in combination would
normally lead to a lease being classied as a nance lease are:
• the lease transfers ownership of the asset to the lessee by the
end of the lease term the lessee has the option to purchase the
asset at a price which is expected to be sufciently lower than
fair value at the date the option becomes exercisable that, at the
inception of the lease, it is reasonably certain that the option will
be exercised.
• the lease term is for the major part of the economic life of the
asset, even if title is not transferred.
• at the inception of the lease, the present value of the minimum
lease payments amounts to at least substantially all of the fair
value of the leased asset.
• the leased assets are of a specialized nature such that only the
lessee can use them without major modications being made.
Upon lease commencement, the Group recognize assets held
under a nance lease as a receivable at an amount equal to
the net investment in the lease. The group recognizes nance
income over the lease term of a nance lease, based on a pattern
reecting a constant periodic rate of return on the net investment.
The Group recognizes operating lease payments as income on a
straight-line basis or, if more representative of the pattern in which
benet from use of the underlying asset is diminished, another
systematic basis.
Property leased on an operational lease is included in investment
property on the group balance sheet. Rental income is included
on a straight-line basis over the period of the lease. The group
pays fee to consultants in negotiations of new lease agreements.
Fees paid in relation to new lease agreements is included in
the carrying amount of the investment property and is amortized
over the lease term. Other payments, free rental periods or other
incentives are also recognized on a straight-line basis over the
lease term.
The Group classies its long-term ber IRUs (Indefeasible right of
use) as nance leases for the following reasons:
• The leases transfer substantially all the risks and rewards
incidental to ownership of the underlying ber assets.
• The lease terms are for the major part of the economic life
of the ber assets.
The Group classies its short-term ber IRUs as operational
leases, as none of the above criteria for classication as nancial
lease are met for these IRUs.
2.8 Goodwill
Goodwill represents the excess of the cost of a business
combination over, the Group’s interest in the fair value of
identiable assets, liabilities and contingent liabilities acquired,
and the total fair value of the identiable assets, liabilities and
contingent liabilities acquired.
The cost of a business combination comprises the fair value of
assets given, liabilities assumed, and equity instruments issued,
plus the amount of any non-controlling interests in the acquiree
plus, if the business combination is achieved in stages, the fair
value of the existing equity interest in the acquiree. Contingent
consideration is included in cost at its acquisition date fair value
and. Direct costs of acquisition are recognized immediately as
an expense.
Goodwill is measured at cost less any accumulated impairment loss.
As of December 31, 2021, the goodwill in the Group has been
impaired in full based on the result of the yearly assessment.
2.9 Impairment of non-nancial assets
Non-nancial assets are reviewed for impairment whenever
events or changes in circumstances indicate that the carrying
amount may not be recoverable. Goodwill, intangible assets that
have an indenite useful life or intangible assets not ready to use
are also tested annually for impairment.
For the purposes of assessing impairment, assets are grouped
at the lowest levels for which there are largely independent cash
inows (cash-generating units). An impairment loss is recognized
for the amount by which the asset’s/CGU’s carrying amount
exceeds its recoverable amount. The recoverable amount is the
higher of an asset’s fair value less costs of disposal and value in
use. Prior impairments of non-nancial assets other than goodwill,
are reviewed for possible reversal at each reporting date.
2.10 Financial assets and liabilities
Financial assets
The group currently classies its nancial assets in one of the
following categories: (a) at fair value through prot or loss and (b)
loans and receivables. Management determines the classication
of its nancial assets at initial recognition.
(a) Financial assets at fair value through prot and loss
Financial assets that are not measured at amortized cost or fair
value through other comprehensive income, is measured at fair
value through prot or loss. A nancial asset is classied in this
category if acquired principally for the purpose of selling in the
short term. Derivatives are also measured at fair value through
prot and loss, unless they are designated as hedge instruments.
The Group does not apply hedge accounting. Assets in this
category are classied as current assets if expected to be settled
within 12 months, otherwise they are classied as non-current.
The Group currently has two interest rate swaps related to loans
in the Industrial Real Estate segment that is measured through
prot and loss.
Financial assets are initially recognized at fair value, and transaction
costs are expensed. Gains or losses arising from changes in the
fair value of the ‘nancial assets at fair value through prot or loss’
category is presented as nancial items in the income statement.
Financial assets are derecognized when the rights to receive cash
ows from the investments have expired or have been transferred
and the group has transferred substantially all risks and rewards
of ownership.
(b) Financial assets at amortized cost
Financial assets are measured at amortized cost when the nancial
asset is held to collect contractual cash ows and when the
contractual terms of the nancial asset give rise on specic dates
to cash ows that are solely payments of principal and interest
on the principal amount outstanding. They are included in current
assets, except for maturities greater than 12 months after the
end of the reporting period. These are classied as non-current
assets. The Group’s nancial assets at amortized cost comprise
‘receivable from related party’, ‘trade and other receivables’ and
‘cash and cash equivalents’ in the balance sheet.
Receivable from related party
Receivable from related party is a receivable from associated
company. The receivable is classied as non-current as it is
expected to be collected in more than one year.
Trade receivables
Trade receivables are amounts due from customers for goods
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
38 39
sold or services performed in the ordinary course of business.
If collection is expected in one year or less (or in the normal
operating cycle of the business if longer), they are classied as
current assets. If not, they are presented as non-current assets.
Cash and cash equivalents
Cash and cash equivalents include cash in hand, bank deposits,
other short-term highly liquid investments with original maturities
of three months or less.
Financial assets at amortized cost are initially recognized at
fair value, transaction costs are added to the carrying amount.
Financial assets at amortized cost are subsequently carried at
amortized cost.
Impairment of nancial assets
The group recognizes an allowance for expected credit losses
(ECLs) for all debt instruments not held at fair value through prot
or loss. ECLs are based on the difference between the contractual
cash ows due in accordance with the contract and all the cash ows
that the Group expects to receive, discounted at an approximation
of the original effective interest rate. The expected cash ows
will include cash ows from the sale of collateral held or other
credit enhancements that are integral to the contractual terms.
For credit exposures for which there has not been a signicant
increase in credit risk since initial recognition, ECLs are provided
for credit losses that result from default events that are possible
within the next 12-months (a 12-month ECL). For those credit
exposures for which there has been a signicant increase in credit
risk since initial recognition, a loss allowance is required for credit
losses expected over the remaining life of the exposure, irrespective
of the timing of the default (a lifetime ECL).
For trade receivables and contract assets, the Group applies a
simplied approach in calculating ECLs. Therefore, the Group
does not track changes in credit risk, but instead recognizes a
loss allowance based on lifetime ECLs at each reporting date.
Financial liabilities at amortized cost
Financial liabilities at amortized cost include all nancial liabilities
not classied at fair value through prot and loss. All the Group’s
nancial liabilities, except for derivatives, are classied as nancial
liabilities at amortized cost.
Trade payables and other short-term payables
Trade payables are obligations to pay for goods or services that
have been acquired in the ordinary course of business from
suppliers. Accounts payable are classied as current liabilities if
payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade payables are recognized initially at fair value and subsequently
measured at amortized cost using the effective interest method.
Borrowings
Borrowings are recognized initially at fair value, net of transaction
costs incurred. Borrowings are subsequently carried at amortized
cost using the effective interest method. The difference between
the proceeds (net of transaction costs) and the redemption value
is recognized in the income statement over the period of the
borrowings using the effective interest method.
Offsetting nancial assets and obligations
Financial assets and liabilities are offset, and the net amount
reported in the balance sheet when there is a legally enforceable
right to offset the recognized amounts and there is an intention
to settle on a net basis or realize the asset and settle the liability
simultaneously.
Derecognition of nancial assets and liabilities
Financial assets are derecognized when the rights to receive cash
ows from the investments have expired or have been transferred
and the group has transferred substantially all risks and rewards
of ownership. Financial liabilities are derecognized when the
obligation under the liability is discharged or cancelled or expires.
This normally happens when the group pays the nancial liability.
2.11 Borrowing costs
General and specic borrowing costs directly attributable to the
acquisition, construction or production of qualifying assets, which
are assets that necessarily take a substantial period of time to get
ready for their intended use or sale, are included in the cost of
those assets.
Investment income earned on the temporary investment of specic
borrowings pending their expenditure on qualifying assets is
deducted from the borrowing costs eligible for capitalization.
All other borrowing costs are recognized in prot or loss in the
period in which they are incurred.
Financial liabilities are presented as non-current liabilities when
the group has an unconditional right to defer settlement for at
least 12 months after of the end of the reporting period.
2.12 Inventory
Raw materials, work in progress and nished goods are stated at
the lower of cost and net realizable value. Cost comprises direct
materials, direct labor and an appropriate proportion of variable
and xed overhead expenditure, the latter being allocated on the
basis of normal operating capacity. Costs are assigned to individual
items of inventory on the basis of weighted average costs. Costs of
purchased inventory are determined after deducting rebates and
discounts. Net realizable value is the estimated selling price in the
ordinary course of business less the estimated costs of completion
and the estimated costs necessary to make the sale.
2.13 Share capital
Ordinary shares are classied as equity. Incremental costs directly
attributable to the issue of new ordinary shares or options are
shown in equity as a deduction, net of tax, from the proceeds.
Where any group company purchases the company’s equity
share capital (treasury shares), the consideration paid is deducted
from equity. When such ordinary shares are subsequently reissued,
any consideration received, is included in equity attributable to the
company’s equity holders. Voting rights related to treasury shares
are annulled and no dividend is allocated to treasury shares.
2.14 Current and deferred income tax
The tax expense for the period comprises current and changes in
deferred tax. Tax expense is recognized in the income statement,
except to the extent that it relates to items recognized in other
comprehensive income or directly in equity. In this case, the tax is
also recognized in other comprehensive income or directly in equity.
The current income tax expense is calculated on the basis of the
tax laws enacted or substantively enacted at the balance sheet
date in the countries where the company and its subsidiaries
operate and generate taxable income. Management periodically
evaluates positions taken in tax returns with respect to situations
in which applicable tax regulation is subject to interpretation. It
establishes provisions where appropriate on the basis of amounts
expected to be paid to the tax authorities.
Deferred tax assets and liabilities are recognized on temporary
differences arising between the tax bases of assets and liabilities
and their carrying amounts in the consolidated nancial statements.
Deferred tax is not recognized if it arises from initial recognition of an
asset or liability in a transaction other than a business combination
that at the time of the transaction affects neither accounting nor
taxable prot or loss.
Deferred tax assets and liabilities are determined using tax rates
(and laws) that have been enacted or substantively enacted by the
balance sheet date and are expected to apply when the related
deferred tax asset is realized, or the deferred tax liability is settled.
Deferred tax assets are recognized only to the extent that it is
probable that future taxable prot will be available against which
the temporary differences can be utilized.
Deferred income tax liabilities are provided on taxable temporary
differences arising from investments in subsidiaries and associ-
ates, except for deferred income tax liability where the timing of
the reversal of the temporary difference is controlled by the group
and it is probable that the temporary difference will not reverse in
the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally
enforceable right to offset current tax assets against current tax
liabilities and when the deferred income taxes assets and liabilities
relate to income taxes levied by the same taxation authority on
either the same taxable entity or different taxable entities where
there is an intention to settle the balances on a net basis.
2.15 Provisions
Provisions for environmental restoration, restructuring costs and
legal claims are recognized when the group has a present legal
or constructive obligation as a result of past events, it is probable
that an outow of resources will be required to settle the obligation,
and the amount has been reliably estimated. Restructuring
provisions typically comprise lease termination penalties and
employee termination payments. Provisions are not recognized
for future operating losses.
Where there are a number of similar obligations, the likelihood
that an outow will be required in settlement is determined by
considering the class of obligations as a whole. A provision is
recognized even if the likelihood of an outow with respect to any
one item included in the same class of obligations may be small.
Provisions are measured at the present value of the expenditures
expected to be required to settle the obligation using a pre-tax rate
that reects current market assessments of the time value of money
and the risks specic to the obligation. The increase in the provision
due to passage of time is recognized as interest expense.
2.16 Revenue recognition
Revenue is recognized when, or as, control of a good or service
is transferd to a customer. The amount recognized reects the
consideration to which the Group expects to be entitled in
exchange for those goods or services.
Revenue comprises of rental income, revenue from property
sales, revenue from sales and other revenue. Rental income and
revenue from property sales are mainly generated in the Industrial
Real Estate segment. Revenue from sales is attributable to Data
Centers and Fiber Networks.
Rental income
Rental income arising from operating leases on investment property
is accounted for on a straight-line basis over the lease term.
Income arising from expenses recharged to tenants is recognized
in the period the associated cost is incurred.
Revenue from property sales
Revenue from property sales is generated from sale of completed
property or sale of property under construction. For sale of completed
property, revenue is recognized at point of sale. In the occasion
where a contract is entered into for sale of property under
construction, we have considered the performance obligations
satised over time in accordance with IFRS 15. The criteria for
revenue recognition over time read as follows:
• the customer simultaneously receives and consumes the benets
provided by the entity’s performance as the entity performs
• the entity’s performance creates or enhances an asset (for
example, work in progress) that the customer controls as the
asset is created or enhanced or
• the entity’s performance does not create an asset with an
alternative use to the entity and the entity has an enforceable
right to payment for performance completed to date
One of the three criteria needs to be met for the revenue from the
sale of property under construction to be recognized over time.
The rst criteria is not applicable as property is not a service that
can be consumed as the construction is ongoing. The third criteria
is not met as the Group could construct the property for rental
purposes, and as such, create an alternative use. However, the
second criteria is considered more relevant. The Group’s procedure
is that no control of the property is transferred to the buyer while
the construction is ongoing. As such, the buyer cannot utilize the
property before delivery. Further, the risk of the project lies with
the Group as the price is already agreed by contract and additional
costs would accrue to the Group. Following these arguments, we
conclude that none of the criteria for the performance obligations
satised over time is met. Hence, the Group recognize revenue
from sale of property under construction at point of delivery when
all control is transferred to the buyer. Payment terms from property
sales are usually upon completion in the case of construction of
a property and upon delivery in the case of sale of completed
properties. Contracts generally do not have signicant nancing
components, but occasionally contracts relating to property sales
contain guarantee rent components.
Revenue from sales
Revenue from sales is comprised of sale of dark ber (IRUs) and
revenue from sales of data center services.
Revenue from sales of data center service is comprised of sale
of data center services and related goods. These services consist
of cooling, security, and access to ber for the customer’s data
servers. The services are invoiced up-front monthly or quarterly,
based on the contracts, and revenue accrued and recognized
monthly. Further, electricity is invoiced monthly and settled based
on annual calculation of actual consumption at the end of the
year. The revenue is recognized when control of the goods or
services are transferred to the customer. The data center services
are simultaneously received and consumed by the customer. As
such, revenue is recognized over time in line with the performance
obligations satised over time. In addition, “smart hands” is offered
to the customer, which is a service where data center personnel
make immediate physical adjustments or maintenance on the
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
40 41
server based on customer request. The service is invoiced and
recognized at point of delivery.
Revenue from sale of dark ber (IRUs) is recognized based
on the classication of individual contracts as either nancial
or operational leases, in accordance with IFRS 16. Long-term
IRU are classied as nancial leases, under which the Group
recognizes assets held as receivable at amounts equal to the
net investment in the respective lease. The Group recognizes
income of the lease term of a nance lease, based on a pattern
reecting a constant periodic rate of return on the net investment.
Revenue from long-term IRUs is usually recognized at RFS
(ready for service) date. The RFS date is in line with the
commencement date of which the ber is available for use.
Short-term IRUs are classied as operational leases, under
which the Group recognizes lease payments on a straight-line
basis. The performance obligation satised over time is applied
for revenue recognition of short-term IRUs as outlined above for
data center services. The same principle apply as the customer
is considered to receive and consume the benet of the dark
ber over time. As of December 31, 2021, the Group has not
considered any of the contracted IRUs to qualify as nancial
lease. As such, all IRUs are treated as operational, and revenue
is recorded over the period of the IRU contract.
The group satises its obligations in contracts with customers
regarding sale of dark ber or data center services upon delivery,
or as services are rendered. Payment terms for revenue from
sales are typically 30 days.
Other revenue
Other revenue mainly consists of business management for
external parties and common cost recharged. In addition, there
will at times by presented revenue generated within a segment
that is not suited for categorization on the core revenue nancial
lines of that segment. For instance, leasehold improvements
within Bulk Industrial Real Estate. Other revenue is recognized
point in time as the shared costs are invoiced to tenants.
2.17 Property-related expenses and other costs
Costs directly related to the operation of existing properties are
recognized as property-related expenses, other costs are includ-
ed as administration costs. Costs are recognized as incurred.
Cost of property sales and cost of sales
Cost of sales is recognized as an expense in the period in which
the related revenue is recognized.
2.18 Interest income
Interest income is recognized using the effective interest method.
2.19 Classication of assets and debt
Assets and liabilities expected to be settled within 12 months, and
other items that are included in the company’s normal operating
cycle are classied as current. First year installment of the long-
term debt is classied as current liabilities.
2.20 Dividend distribution
Dividend distribution to the company’s shareholders is recognized
as a liability in the group’s nancial statements in the period in
which the dividends are approved by the company’s shareholders.
2.21 Segment reporting
Operating segments are reported in a manner consistent with
the internal reporting provided to the chief operating decision
maker. The chief operating decision maker, who is responsible for
allocating resources and assessing performance of the operating
segments, has been identied as the corporate management.
When preparing the nancial accounts according to IFRS the
group management makes judgement that may have signicant
impact on the amounts recognised in the nancial statements.
The management also makes estimates based on assumption.
Uncertainty relating to these assumptions and estimates may
require material adjustement to the carrying amount of the group
assets or liabilities in future periods.
Estimates
The group’s most signicant estimates relates to the following:
Fair value of investment property
Investment property is recognized at fair value on the year end
date. As the Group collects external valuation semi-annualy for all
investment property, the estimate only relates to the adjustment of
the external valuation. These adjustments are made based on the
remaining construction cost and risk considerations. Risk consid-
erations are a discussion between management and engineers
responsible for the respective investment.
See also note 6.
Impairment considerations regarding property, plant and
equipment
Data centers and ber networks
At the end of each reporting period the Group will assess whether
there is any indication of impairment. Identication of impairment
indicators is based on an assessment of development in market
rates, earnings for the data centers and sale of ber networks,
opex, operating prot, technological development, change in
regulations, interest rates and discount rate. If any indication
exist, the Group will estimate the recoverable amount of the
asset. Recoverable amount is set as the highest of fair value
less cost to sell and value in use. If carrying value exceeds
the estimated recoverable amount, impairment is recognised.
Impairments are reversed in a later period if recoverable amount
exceeds carrying amount. As per year end 2020 and 2021 no
indicators for impairment were identied.
Note 3
Accounting estimates
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
42 43
Note 4
Segment information
Bulk Infrastructure Group has the following strategic operating segments by 31.12.21
presented in accordance with internal reporting to management
Operating activities are based in Norway, Denmark and the United Kingdom.
Industrial Real Estate Data Centers Fiber Networks Group/other Eliminated Total
(NOK '000) 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
Rental income 83,342 45,405 - - - - - - - - 83,342 45,405
Revenue property sales 182,537 303,173 - - - - - - - - 182,537 303,173
Revenue from sales* - - 58,507 47,497 6,038 2,914 - - - - 64,545 50,411
Other revenue* 8,852 15,823 23,712 15,205 943 - 60,777 43,569 -59,035 -42,156 35,248 32,442
Total revenue and other income 274,731 364,402 82,219 62,703 6,981 2,914 60,777 43,569 -59,035 -42,156 365,673 431,432
Property-related expenses 12,269 4,159 - - - - - - - - 12,269 4,159
Cost of property sales 173,883 261,575 - - - - - - - - 173,883 261,575
Cost of sales** - - 48,537 44,699 12,755 12,238 - - - - 61,291 56,936
Other cost** 46,637 29,829 155,092 119,713 54,586 26,407 58,525 39,879 -59,035 -42,156 255,805 173,673
Total expenses 232,789 295,563 203,628 164,412 67,341 38,645 58,525 39,879 -59,035 -42,156 503,248 496,344
Operating prot before fair value adjustments on investment properties 41,942 68,838 -121,410 -101,710 -60,360 -35,731 2,252 3,690 - - -137,575 -64,912
Fair value adjustments on investment properties 1,352,819 217,655 - - - - - - - - 1,352,819 217,655
Operating prot 1,394,761 286,493 -121,410 -101,710 -60,360 -35,731 2,252 3,690 - - 1,215,243 152,742
Net nancial items 14,276 -37,316 -11,389 -29,722 -8,297 -15,765 -5,992 19,507 - - -11,402 -63,296
Prot before income tax 1,409,037 249,177 -132,798 -131,432 -68,657 -51,496 -3,740 23,197 - - 1,203,841 89,446
Income tax expense 307,719 41,369 -22,634 -22,054 -14,245 -10,952 -3,831 4,674 - - 267,009 13,037
Prot for the year 1,101,318 207,808 -110,164 -109,378 -54,412 -40,545 91 18,523 - - 936,832 76,409
Other comprehensive income -1,082 - -5,402 9,677 67 10 - - - - -6,417 9,687
Other comprehensive income for the year, net of tax -1,082 - -5,402 9,677 67 10 - - - - -6,417 9,687
Total comprehensive income 1,100,236 207,808 -115,567 -99,701 -54,345 -40,535 91 18,523 - - 930,415 86,096
*Electricity income is reclassied from “Revenue from sales” to “Other revenue” in 2020 gures to align with 2021 presentation, which is deemed more appropriate for the nature of revenues.
**Electricity is reclassied from “Cost of sales” to “Other costs” in 2020 gures to align with 2021 presentation, which is deemed more appropriate for the nature of costs.
Please also see note 2 for further explanation of the segments
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
44 45
Note 4 part 2
Revenue from contracts with customers
Set out below is the disaggregation of the group’s revenue from contracts with customers.
Operating activities are based in Norway, Denmark and United Kingdom
Segments Industrial Real Estate Data Centers Fiber Networks Group/other Eliminated Total
(NOK ’000) 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
Rental income 83,342 45,405 - - - - - - - - 83,342 45,405
Revenue property sales 182,537 303,173 - - - - - - - - 182,537 303,173
Revenue from sales - - 58,507 47,497 6,038 2,914 - - - - 64,545 50,411
Other revenue
- Shared costs tenants 5,685 7,045 6,350 3,185 - - - - - - 12,035 10,230
- Leasehold improvements 3,166 8,778 - - - - - - - - 3,166 8,778
- Electricity* - - 16,293 12,021 - - - - - - 16,293 12,021
- Business management/other - - 1,069 - 943 - 60,777 43,569 -59,035 -42,156 3,754 1,413
Total revenue from contracts with customers 274,731 364,402 82,219 62,703 6,981 2,914 60,777 43,569 -59,035 -42,156 365,673 431,432
*Electricity income is reclassied from “Revenue from sales” to “Other revenue” in 2020 gures to align with 2021 presentation, which is deemed more appropriate for the nature of revenues.
The group is not dependent on any single, large customer, as it has multiple business areas and a wide range of customers.
Vestby
(NOK ‘000) 2021 2020 2019
Contract balances
Trade receivables - - -
Contract assets - - -
Contract liabilities 32 073 27 843 12 431
Contract liabilities include long-term advances related to IRU contracts in the ber segment where the Group delivers dark ber on ber
networks. The outstanding balances of these accounts decreased in 2021 due to contract obligations on ber IRU contracts, which
were fullled during 2021.
The Group mainly operates with services which are subject to up-front payments. Rent in Industrial real estate is normally paid 3
months in advance. Customers in our Data centers are mostly contracted with monthly payments for the services. IRU contracts on
ber networks require up-front payment and the customer purchases the right to use the ber for a specied amount of years. As such,
there are no material trade receivables or contract assets related to contracts with customers recorded in the balance statement in
2021 or 2020. Refer also note 23, Credit risk.
2021 2020
Amounts included in contract liabilities in the beginning of the year 941 622
Performance obligations satised in previous years - -
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
46 47
Note 4 part 3
Revenue from contracts with customers continues
Note 5
Rental income
Note 6
Investment property and inventories property
(NOK ’000) 2021 2020
Recognized rental income
Recognized minimum rent from minimum payments
83,342
45,405
Recognized variable rent
-
-
Total income from rent 83,342 45,405
Future minimum payments to be received under non-cancellable leases:
2021 2020
Within 1 year 150,688 67,573
During year 2 187,196 71,899
During year 3 157,188 63,265
During year 4 187,994 57,510
During year 5 181,827 56,807
After 5 years 924,354 401,688
Total 1,789,248 718,742
Carrying amount of assets leased under operating leases are as follow:
2021 2020
Investment property 4,184,248 1,777,179
Total 4,184,248 1,777,179
(NOK ’000) 2021 2020
Investment property
Fair value 1.1 1,777,179 1,005,171
Additions:
- Capital expenditure 399,046 422,742
- Acquisition of property 693,965 148,211
- Minority share of acquisition of property* 18,702 -
- Sale of property - -
Transferred to property under development -43,160 -16,600
Currency translation on property in foreign subsidiaries -14,304 -
Changes in fair value 1,352,819 217,655
Fair value 31.12 4,184,248 1,777,179
*Minority interest purchased 49% of previously associated company.
Income and expenses from investment property
Income from rent 83,342 45,405
Other revenue - shared cost tenants 5,685 7,045
Expenses related to leased property 12,269 4,159
Fair value of the Group’s investment property is based on a valuation by a qualied independent valuer.
The valuation is carried out twice a year.
2021 2020
Overview over input used for valuation
Valuation level 3 3
Valuation model DCF DCF
Fair value as of December 31
(NOK ’000) 4,184,248 1,777,179
Total sqm 220,247 93,997
Current rent per sqm (range) 444-2060 469-1145
Current rent per sqm (average) 972 836
Remaining lease period actual contracts (range) 0,8-17,7 2,4-18,1
Remaining lease period actual contracts (average) 7,7 7,0
Market rent per sqm (range) 464-1602 427-1145
Market rent per sqm (average) 1,109 854
Estimated CPI 5,1 % 2,0 %
Actual vacancy 1,8% 23,0 %
Valuation yield/discount rate (range) 4 % - 7 % 5 % - 8 %
Valuation yield/discount rate (average) 4,60% 5,67%
Note 6
Investment property and inventories property
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
48 49
Fair value change
Variables Changes in variables + -
Yield +/- 0.25% -194 219
Market rent +/- 5% 129 -127
(NOK ’000) 2021 2020
Property under development
Value 1.1 19,599 209,519
Additions:
- Reclassication from invenstment property 43,160 16,600
- Additions 112,181 55,055
- Sale of inventory property under development -174,939 -261,575
Inventory value 31.12 - 19,599
All investment properties are valued using discounted cash ow. Key factors are ongoing revenue and expenses relating to the property,
market lease, discount factor and ination. Macro economic assumptions are used, but each property is also subject to individual
appraisal. To determine each discount rate, the property location, attractiveness, quality and the general market conditions for real
estate, credit market, solidity of tenants and contracts are considered. The sensitivity when evaluating fair value for investment property
is connected to yield, interest rate level, ination (CPI) and marked lease for the properties.
Future leasing payments: The payments are estimated based on actual location, type and condition of the current building.
The estimates are supported by existing leases, as well as recently lease agreements for similar
properties in the same area.
Discount rate: The discount rate is based on existing market rates, adjusted for the estimated uncertainty in terms
of size and future cash ows.
Estimated vacancies: The estimate is rmly set on the basis of the actual market conditions and the expected market
conditions at the end of existing leases.
Cost of Ownership: The cost of ownership expenses are estimated based on the estimated maintenance costs regarding
maintaining the building’s capacity over its economic lifetime.
Fair value of investment property
Investment property is recognized at fair value based on estimation of value from an independent party, Akershus Eiendom AS.
The sensitivity of the fair value of investment properties are thus among others associated yield, interest rates, ination (CPI) and the
market rent for the properties. As indicated below are the separate effects of changes in these variables (amounts in NOK million):
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
50 51
(NOK ‘000) 2021 2020
Administration costs
Staff costs (see note 8) 90,371 65,089
Depreciation (see note 13 and 14) 36,150 32,246
Impairment (see note 13) 16,948 -
Management, accounting, legal and consulting fees 31,934 24,062
Auditors 4,398 3,261
Depreciation right-of-use assets 4,243 6,387
Other operating expenses 71,761 25,958
Total other operating expenses 255,805 157,003
Audit fees
Statutory audit (including technical assistance with reporting) 3,488 2,497
Tax and other advice (including technical assistance with tax papers) 910 764
Total audit costs 4,398 3,261
The group recognised no operating expenses related to investment property that did not generate rental income in 2021.
Note 7
Other operating expenses
Note 8
Employee benefit expense
(NOK ‘000) 2021 2020
Salaries and remuneration 86,662 65,077
Social security costs 11,503 9,309
Pension cost for dened contribution plan 1,936 1,564
Other employee expenses 3,746 5,466
Capitalized wages -13,476 -16,327
Total payroll costs 90,371 65,089
Number of employees at 31 December 70 58
Pursuant to the Norwegian Act on Mandatory Occupational Pension, Bulk Infrastructure Group AS, must operatecertain
pension plans. The company has plans which satify these requirements (a dened contribution plan for all employees).
Remuneration of senior management and the Board of directors 2021
Name Title Salary Bonus Pension Board fee Other benets
Jon Gravråk CEO 3,233 913 35 - 151
Gaute Krekling CFO 2,106 182 35 - 124
Peder Nærbø Executive Chair 2,758 2,669 35 150 80
Torbjørn T. Moe Chief Business Development Ofcer 2,484 413 35 150 144
Nina Hage* EVP, Industrial Real Estate 1,042 - 28 - 8
Gisle M. Eckhoff* EVP, Data Center 833 - 22 - 4
Inger Gløersen Folkeson* COO, EVP Fiber Networks 721 - 18 - 41
Total 13,177 4,176 209 300 551
*Nina Hage was employed 02.08.2021. Gisle M. Eckhoff was employed 01.09.2021. Inger Gløersen Folkeson was employed 16.08.2021.
Remuneration of senior management and the Board of directors 2020
Name Title Salary Bonus Pension Board fee Other benets
Jon Gravråk CEO 3,143 - 40 - 138
Gaute Krekling CFO 1,798 21 39 - 110
Peder Nærbø Executive Chair 2,754 250 44 - 125
Torbjørn T. Moe EVP Business Areas 2,431 427 44 - 130
Total 10,126 698 167 - 503
In the event of resignation, the CEO, CFO and the EVPs are entitled to 6 months of salary.
Shares held by executive ofcers and directors
The following board members and chief executives have indirect ownership in Bulk Infrastructure Group AS:
Ownership Capital ratio
Peder Nærbø Executive Chair 52,7% 52,7%
Torbjørn T. Moe Board member 3,7% 3,7%
CEO Jon Gravråk and CFO Gaute Krekling have ownership of 3% and 0,75%, respectively, of Klub Bulk AS,
which indirectly owns 4,67% of the total number of shares in Bulk Infrastructure Group AS.
Mangement has shares in Klub Bulk AS. There is an agreement in place regarding future repurchase of shares in
Bulk Infrastructure Holding AS at market price. The agreement runs over 5 years, of which 3 years remain.
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
52 53
Note 9
Joint venture and associated companies
(NOK ‘000)
Foundation /
Acquisition
date Country
Ofce
location
Owner-
ship
Book
value 1.1
Share
issues /
dividends
Share of
net prot
after tax
Book
value
31.12
Associated companies 2021
OS-IX Eiendom Holding AS* 11/20/2015 Norway Oslo 50% 118,717 - -1,356 117,361
AE Bulk Co-Invest AS 11/2/2016 Norway Oslo 50% 19,817 -650 18,449 37,616
Bulk Park Enebakk AS** 7/6/2020 Norway Oslo 50% 108,506 -34,445 60,174 134,235
Total 247,040 -35,095 77,267 289,212
Figures on 100% basis in accordance with NGAAP
Assets Liabilities Equity Total income Net Prot
Company
OS-IX Eiendom Holding AS -Parent company only 360,539 10,088 350,451 - 436
AE Bulk Co-Invest AS -Parent company only 28,829 - 28,829 - 9,290
Bulk Park Enebakk AS -Parent company only 314,924 156,443 158,480 - -5,431
Total 704,292 166,532 537,760 - 4,296
*Refer note 28 for additional information on associated companies regarding changes in ownership.
**A demerger was performed in Bulk Park Enebakk AS resulting in the establishement of a new company where Bulk Industrial Real Estate
AS has the controlling ownership share. Refer note 15 for further information.
(NOK ‘000)
Foundation /
Acquisition
date Country
Ofce
location
Owner-
ship
Book
value 1.1
Share
issues /
dividends
Share of
net prot
after tax
Book
value
31.12
Associated companies 2020
OS-IX Eiendom Holding AS 11/20/2015 Norway Oslo 50% 132,666 - -13,949 118,717
AE Bulk Co-Invest AS 11/2/2016 Norway Oslo 50% 15,093 -1,350 6,074 19,817
Bulk Park Enebakk AS 7/6/2020 Norway Oslo 50% - 108,506 - 108,506
Total 147,758 107,156 -7,875 247,040
Figures on 100% basis in accordance with NGAAP
Assets Liabilities Equity Total income Net Prot
Company
OS-IX Eiendom Holding AS -Parent company only 352,169 1,147 351,022 - 887
AE Bulk Co-Invest AS -Parent company only 20,927 88 20,839 - 1,117
Bulk Park Enebakk AS -Parent company only 373,875 160,543 213,332 - 240
Total 746,971 161,778 585,193 - 2,243
Summary of nancial information in the consolidated nancial statement of OS-IX Holding AS on 100% basis in accordance
with IFRS
(NOK ‘000)
2021 2020
Income statement:
Total income 56,382 46,985
Total expenses 53,767 65,095
Operating prot 2,615 -18,110
Net nancial items -6,092 -17,734
Prot before income tax -3,477 -35,845
Income tax expense -765 -7,947
Prot for the year -2,712 -27,898
Balance sheet:
Assets
Non-current assets 553,530 498,139
Current assets 29,562 34,487
- Cash and cash equivalents 12,962 27,870
Total assets 583,092 532,626
Equity and liabilities
Equity 233,643 225,898
Current liabilities 49,449 34,462
- current nancial liabilities other than accounts payable and provisions 31,589 20,617
Non-current liabilities 300,000 272,266
Total Equity and liabilities 583,092 532,626
Reconciliation of carrying amount
Shareholding (%) 2021 2020
Net assets 100% 233,643 225,898
Group’s shareholding in the company 50% 116,821 112,949
Carrying amount of Group’s shareholding 50% 116,821 112,949
The OS-IX Group’s property is classied as property, plant and equipment and measured at cost minus accumulated depreciation and
impairment.
The fair value of the property is NOK 211.1 million higher than the carrying amount included in the above summary of nancial
information as of December 31, 2021.
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
54 55
Summary of nancial information in the consolidated nancial statement of Bulk Park Enebakk AS on 100% basis in
accordance with IFRS
(NOK ’000) 2021 2020
Income statement:
Total income 2,303 -
Total expenses 1,265 -
Operating prot before fair value adjustments on investment properties 1,037
Fair value adjustments on investment properties 163,353
Operating prot 164,390 -
Net nancial items -10,098 12,372
Prot before income tax 154,292 12,372
Income tax expense -33,944 -
Prot for the year 120,348 12,372
Balance sheet:
Assets
Non-current assets 438,264 41,433
Current assets 30,696 271
- Cash and cash equivalents 14,184 271
Total assets 468,960 41,704
Equity and liabilities
Equity 236,161 41,616
Current liabilities 6,430 88
- current nancial liabilities other that accounts payable and provisions 6,158 -
Non-current liabilities 226,369 -
Total Equity and liabilities 468,960 41,704
Reconciliation of carrying amount
Shareholding (%) 2021 2020
Net assets 100% 236,161 41,616
Group’s shareholding in the company 50% 118,081 20,808
Carrying amount of Group’s shareholding 50% 118,081 20,808
Summary of nancial information in the consolidated nancial statement of AE- Bulk Co-Invest AS on 100% basis in
accordance with IFRS
(NOK ’000) 2021 2020
Income statement:
Total income - -
Total expenses 141 223
Operating prot -141 -223
Net nancial items 37,039 12,372
Prot before income tax 36,897 12,149
Income tax expense - -
Prot for the year 36,897 12,149
Balance sheet:
Assets
Non-current assets 20,777 41,433
Current assets 28,829 271
- Cash and cash equivalents 28,829 271
Total assets 49,607 41,704
Equity and liabilities
Equity 49,607 41,616
Current liabilities - 88
- current nancial liabilities other that accounts payable and provisions - -
- non-current nancial liabilities other then accounts payable and privisions - -
Total Equity and liabilities 49,607 41,704
Reconciliation of carrying amount
Shareholding (%) 2021 2020
Net assets 100% 49,607 41,616
Group’s shareholding in the company 50% 24,803 20,808
Carrying amount of Group’s shareholding 50% 24,803 20,808
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
56 57
Note 10
Financial income and costs
(NOK ’000) 2021 2020
Share of prot/loss(-) of investments accounted for using the equity method 77,267 -7,875
Finance income
Interest income 1,051 7,381
Currency gain 16,589 8,606
Other nance income 1,603 59
Total nance income 19,243 16,046
2021 2020
Finance costs
Interest expense on borrowings measured at amortised cost 74,540 44,252
Finance expense on derivatives 2,711 1,466
Currency loss 31,311 13,511
Other nance costs 4,250 9,304
Total nance costs 112,812 68,533
Net nancial items -16,303 -60,361
Net gains / losses on nancial assets / liabilities valued at fair value
2021 2020
Derivatives
Fair value adjustments on derivatives 4,901 -2,935
Net gain on nancial instruments at fair value 4,901 -2,935
Note 11
Tax
(NOK ’000)
Loss carried
forward
Investment
property
Financial
derivatives
Prot
and loss
account
Other
items
Total
deferred tax/
(-)tax assets
Changes in deferred tax.(-)tax assets
01.01.2020 -101,485 95,950 -2,562 - 1,454 -6,644
Changes in deferred tax -38,540 51,476 -646 4,372 16,661
31.12.2020 -140,026 147,425 -3,208 - 5,825 10,017
Loss carried
forward
Investment
property
Financial
derivatives
Prot
and loss
account
Other
items
Total
deferred tax.
(-)tax assets
Changes in deferred tax.(-)tax assets
1.1.2021 -140,026 147,425 -3,208 - 5,825 10,017
Changes in deferred tax -34,718 307,046 1,078 -6,398 267,009
Change related to purchased/sold companies 135 13,290 - - - 13,425
31.12.2021 -174,608 467,761 -2,130 - -572 290,451
31.12.2021 31.12.2020
Reconciliation net recognized deferred tax .(-)tax assets
01.01. 10,017 -6,644
Change related to sold companies 13,425 -
Deferred tax expense (income) recognized in prot and loss 267,009 16,661
Net recognized deferred tax liability 31.12 290,451 10,017
See note 26 for tax expense
31.12.2021 31.12.2020
Current income tax liabilities
Current income tax - -
Change in prior years - -
Total current income tax liabilities - -
31.12.2021 31.12.2020
Loss carried forward
No expiring date -793,674 -636,480
Total loss carried forward -793,674 -636,480
There is no deferred tax recognized in comprehensive income.
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
58 59
(NOK ’000) 2021 2020
Income tax
Tax payable
Change in deferred tax -40,037 -38,438
Change in deferred tax due to Investment Property 307,046 51,476
Income tax expense 267,009 13,037
Prot before income tax 1,203,841 89,446
Income tax expense calculated at 22 % 264,845 19,678
Permanent differences 101,282 43,635
Non taxable revenue -99,118 -50,276
Income tax expense 267,009 13,037
Effective tax rate 22,2% 14,6 %
Note 12
Goodwill and impairment
Impairment testing for cash-generating units containing goodwill
At the beginning of the year, Goodwill is included in the balance
sheet with a total amount of NOK 16 947 796.
The Goodwill originates from 2016 with the acqusition of Data
Center Technology AS (DCT AS). DCT AS with subsidiary
constitutes a cash generating unit (CGU). An annual impairment
test is performed for this CGU.
Cash ow projections and assumptions
The model was based on a 5 year forecast of discounted cash
ow plus a terminal value (calculated by Gordon’s model). The
net discounted cash ows were calculated before tax. The NPV-
model included the following assumptions:
The estimated cash ows included in the impairment test includes
a ve years projection based on the long term business plan.
Estimated cash ow projections beyond the period covered by the
most recent long term business plan are derived by extrapolating
the projections based on the forecasts using a growth rate of 2.5
% for subsequent years.
Discount rate assumptions
The required rate of return was calculated by use of the WACC
methodology. The imput data of the WACC was chosen by indi-
vidual assessment of each parameter. Information from represen-
tative sources, peer groups etc. was used to determine the best
estimate. The WACC was calculated to 8.2% after tax. The
following parameteres were applied:
• Risk free rate: 1.72 %. Based market rate for covered bonds.
• Beta: 1.00 Based on unlevered beta for industy peer group.
• Market Risk Premium: 5 % (post tax). Based on market sources
• Cost of debt: 3.0% Based on risk free rate plus risk component
• Capital structure: Based on the industry average (comparable
companies) equity ratio of 10%.
Impairment - test result and conclusion
The value of DCT AS is below the carrying amount. The cashow
is negative due to changes in the structure in the DC segment.
The value is transferred to the units of data centers, and assumed
to generate value here instead of in DCT. Further, the value and
cashow is no longer possible to trace and isolate to the acquired
company. As such, we have decided to recognize a full impari-
ment of the goodwill.
Refer also note 13.
DK01 Campus in Esbjerg, Denmark
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
60 61
Note 13
Intangible assets
(NOK ’000) Goodwill
Software
licenses
Other intangible
assets Total
Cost
Balance at January 1, 2020 16,948 1,857 3,159 21,964
Additions - 38 536 574
Balance at December 31, 2020 16,948 1,895 3,695 22,538
Balance at January 1, 2021 16,948 1,895 3,695 22,538
Additions - - 2 2
Reclassication to PPE - - -2,644 -2,644
Balance at December 31, 2021 16,948 1,895 1,053 19,896
Accumulated amortization and impairment
Balance at January 1, 2020 - 640 - 640
Amortization charge for the year - 373 49 422
Balance at December 31, 2020 - 1,013 49 1,062
Balance at January 1, 2021 - 1,013 49 1,062
Amortization charge for the year - 367 74 441
Impairment 16,948 - - 16,948
Balance at December 31, 2021 16,948 1,380 123 18,451
Net book value
At January 1, 2020 16,948 1,216 3,159 21,324
At December 31, 2020 16,948 882 3,646 21,475
At December 31, 2021 - 515 930 1,445
Current estimates of useful economic live of intangible assets are as follows:
Goodwill: indenite
Software licenses: 3-5 years
Software under development: n.a.
(NOK ’000)
Datacenter
buildings
Datacenter
technical
infrastructure
Datacenter
land
Under
con-
struction
Other
xed
assets
Fiber
infra-
structure Total
Accumulated cost
Balance at January 1, 2020 66,737 165,906 95,533 238,317 21,836 599,512 1,187,841
Additions 7,796 58,241 7,771 20,447 1,109 170,623 265,988
Disposals - - - - - -
Other adjustments - VAT 9,357 393 479 126 - - 10,355
Transfer from assets under construction 131,723 94,156 7,109 -232,988 - - -
Balance at December 31, 2020 215,612 318,696 110,893 25,902 22,945 770,135 1,464,184
Balance at January 1, 2021 215,612 318,696 110,893 25,902 22,945 770,135 1,464,184
Additions 4,013 112,533 11,871 39,047 2,782 151,026 321,273
Disposals - - - - - -206,074 -206,074
Other adjustments - currency -6,414 -371 -208 -368 - -428 -7,789
Reclassication from intangible assets - - - 2,644 - -
2,644
Reclassication to ROU asset*
- - - - - -136,434
-136,434
Balance at December 31, 2021
213,212 430,859 122,556 67,224 25,727 578,227
1,437,804
Accumulated depreciation
Balance at January 1, 2020
6,886 27,421 1,330 - 7,736 3,219
46,592
Depreciation charge for the year
3,873 17,876 1,020 - 4,812 4,242
31,824
Other adjustments - currency
-823 -3,467 -180 - - -
-4,470
Balance at December 31, 2020
9,935 41,831 2,170 - 12,549 7,461
73,946
Balance at January 1, 2021
9,935 41,831 2,170 - 12,549 7,461
73,946
Depreciation charge for the year
8,129 14,753 866 - 3,212 8,749
35,709
Other adjustments - currency
-126 -393 -21 - - -
-540
Balance at December 31, 2021
17,939 56,191 3,015 - 15,761 16,210
109,114
Net book value
At January 1, 2020
59,851 138,485 94,203 238,317 14,100 596,293
1,141,249
At December 31, 2020
205,678 276,865 108,723 25,902 10,396 762,674
1,390,238
At January 1, 2021
205,678 276,865 108,723 25,902 10,396 762,674
1,390,238
At December 31, 2021
195,273 374,668 119,542 67,224 9,966 562,017
1 328,690
Expected useful economic life
50 years 5-35 years - - 4-10 years 20-30 years
All property, plant and equipment is located in Norway and Denmark.
The Group is contractually bound to acquire substantial additional ber networks property, plant & equipment.
*Part of the terrestrial ber infrastructure that is leased, has been reclassied to Right-of-use asset in accordance with IFRS 16.
Note 14
Property, plant & Equipment
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
62 63
Note 15
Investments in subsidiaries, joint ventures and associated companies
Group:
Subsidiaries: Ofce location Vote- . Ownership 31.12
Bulk Industrial Real Estate AS Oslo 100,0 %
Bulk Eiendom Farex AS Oslo 100,0 %
Bulk Lindeberg II AS Oslo 100,0 %
Bulk Lindeberg V AS Oslo 100,0 %
Bulk Lindeberg VI AS Oslo 100,0 %
Bulk Gardermoen IV AS Oslo 100,0 %
Bulk Vinterbro II AS Oslo 100,0 %
Bulk Eiendom Vestby AS Oslo 100,0 %
Bulk Eiendom Vestby II AS Oslo 100,0 %
Bulk Vestby I AS Oslo 100,0 %
Bulk Marina AS Oslo 100,0 %
Bulk Berger IV AS Oslo 100,0 %
Bulk Forus AS Oslo 100,0 %
Bulk Eiendom Solgaard Skog AS Oslo 100,0 %
Logibulk I AS Oslo 100,0 %
Bulk Ormlia AS Oslo 100,0 %
Hofstad Næring 5 AS Oslo 100,0 %
Hofstad Næring 10 AS Oslo 100,0 %
Bulk Industrial Real Estate ApS Copenhagen, Denmark 100,0 %
Bulk Jernholmen ApS Copenhagen, Denmark 100,0 %
STC Logistics Denmark AS Oslo 100,0 %
Logistik Terminal Køge ApS Copenhagen, Denmark 100,0 %
Bulk Lindeberg VII AS Oslo 100,0 %
Bulk Lindeberg IX AS Oslo 100,0 %
Bulk Vestby Nord AS Oslo 100,0 %
Bulk Langhus AS Oslo 100,0 %
Snipetjernveien 3 AS Oslo 100,0 %
Bulk Danebuåsen AS Oslo 100,0 %
Bulk Enebakk AS Oslo 100,0 %
Bulk Landskaugveien AS Oslo 100,0 %
Bulk Vestby II AS* Oslo 51,0 %
Bulk Park Enebakk II AS** Oslo 51,0 %
Bulk Data Centers AS Oslo 100,0 %
N01 Services AS Oslo 100,0 %
N01 Utilities AS Oslo 100,0 %
N01 Real Estate AS Oslo 100,0 %
N01 Power AS Oslo 100,0 %
Bulk Facility Services AS Oslo 100,0 %
Oslo Internet Exchange AS Oslo 100,0 %
DK01 ApS Esbjerg, Denmark 100,0 %
Bulk Innovation AS Oslo 100,0 %
Data Center Technology AS Oslo 100,0 %
Data Center Services AS Oslo 100,0 %
Norway as a Service AS Oslo 100,0 %
Bulk Infrastructure UK Ltd London, UK 100,0 %
Bulk Fiber Networks AS Oslo 100,0 %
Electric City-Link Norway AS Oslo 100,0 %
Optibulk Skagerak AS Oslo 100,0 %
Optibulk Havfrue AS Oslo 100,0 %
Bulk Fiber Networks Denmark ApS Copenhagen, Denmark 100,0 %
Bulk Fiber Networks UK Ltd London, UK 100,0 %
Infragreen Communications AS Oslo 100,0 %
Bulk Fiber Networks Ireland Limited Dublin, Ireland 100,0 %
Note 16
Financial assets and liabilities
Set out below is a comparison by class of the carrying amounts and fair value of the Group’s nancial assets and nancial liabilities
included in the nancial statements.
(NOK ‘000)
Carrying amount Fair value Carrying amount Fair value
as at 31.12.2021 as at 31.12.2021 as at 31.12.2020 as at 31.12.2020
Financial assets at fair value through prot or loss
Interest rate swaps 1,139 1,139 - -
Total nancial assets at fair value 1,139 1,139 - -
Financial assets at amortised cost
Receivable from related party 10,497 10,497 133,826 133,826
Other receivables 12,616 12,616 3,491 3,491
Investment in shares - non-current 1,249 1,249 1,249 1,249
Trade and other receivables 154,564 154,564 117,082 117,082
Total loans and receivables 178,925 178,925 255,649 255,649
Cash and cash equivalents 694,826 694,826 73,561 73,561
Total nancial assets 874,891 874,891 329,210 329,210
Total current 849,390 849,390 190,644 190,644
Total non-current 25,501 25,501 138,566 138,566
(NOK ‘000)
Carrying amount Fair value Carrying amount Fair value
as at 31.12.2021 as at 31.12.2021 as at 31.12.2020 as at 31.12.2020
Financial liabilities at fair value through prot or loss
Interest rate swaps 10,819 10,819 14,581 14,581
Total nancial liabilities at fair value 10,819 10,819 14,581 14,581
Financial liabilities at amortised cost
Bond loan 969,350 969,350 966,205 966,205
Borrowings 1,081,665 1,081,665 364,500 364,500
Short-term portion of borrowings 140,618 140,618 259,385 259,385
Debt to related party 662,768 662,768 - -
Other long-term liabilities 33,634 33,634 48,000 48,000
Trade payables 74,927 74,927 94,193 94,193
Other payables 100,056 100,056 113,826 113,826
Total nancial liabilities at amortised cost 3,063,020 3,063,020 1,846,109 1,846,109
Total nancial liabilities 3,073,839 3,073,839 1,860,690 1,860,690
Total current 316,880 316,880 469,083 469,083
Total non-current 2,756,959 2,756,959 1,391,606 1,391,606
*Other payables presented in 2020 has been altered to align with 2021 presentation
Fair value of nancial instruments
For trade receivables, trade payables and other short-term receivables and payables, the carrying amount is a reasonable approxi-
mation for fair value due to the short term nature of these assets and liabilities. The borrowings has an interest rate that is considered
similar to the terms the Group could achieve as of December 31, 2021 and carrying amount of the borrowings is considered not to be
signicantly different from the fair value. Fair value of derivatives are based on mark to market reports received from banks.
Associated companies
OS-IX Eiendom Holding AS Oslo 50,0 %
AE Bulk Co-Invest AS Oslo 50,0 %
Bulk Park Enebakk AS Oslo 50,0 %
*The establishement of Bulk Vestby II AS was the result of a demerger from another subsidiary, of which Bulk sold 49% to a minority interest.
**Bulk Park Enebakk II AS was demerged from associated company Bulk Park Enebakk AS, where Bulk Industrial Real Estate had 50 % ownership. A minority
interest aquired 49% in the new company, while Bulk Industrial Real Estate AS aquired additional 1% of the shares and gained controlling ownership.
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
64 65
Fair value hierarchy
The Group uses nancial hierarchy under IFRS 13 for determining and disclosing the fair value fof nancial instruments by valuation
techniques. Below table presents fair value measurement to the Group’s assets and liabilities at December 31, 2021.
December 31, 2021 Level 1 Level 2 Level 3 Total
Assets
Financial assets at fair value through prot or loss
Interest rate swaps 1 139 1 139
December 31, 2021 Level 1 Level 2 Level 3 Total
Liabilities
Financial liabilities at fair value through prot or loss
Interest rate swaps 10 819 10 819
December 31, 2021 Level 1 Level 2 Level 3 Total
Liabilities
Financial liabilities at fair value through prot or loss
Interest rate swaps 14 581 14 581
“The fair value of nancial instruments traded in an active market is based on unadjusted quoted market prices for identical assets or
liabilities at the balance sheet date and are included in level 1. For Bulk this category is not relevant as of period close.
Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly, are level
2 inputs. For Bulk this will typically apply for interest rate swaps, which are over-the-counter derivatives.
Level 3 inputs are unobservable inputs and are applied when relevant observable inputs are not available. The fair values presented in
this category are mainly based on internal assumptions. There were no transfers between any of the levels during the reporting period.
Note 17
Options, contingent assets and contingent liabilities
The Group has options to acquire land on certain terms and conditions, both zoned and unzoned. The group is not obliged to exercise
any of the options.
Note 18
Group as a lessee (IFRS 16 disclosure)
Right of use assets (NOK ‘000) Seaber
Ofce
equipment
Land and
buildings
Terrestrial
ber Total
Balance at 01 January 21,387 231 9,979 - 31,597
Depreciations 1,510 146 2,588 - 4,243
Additions - - 11,313 - 11,313
Reclassication from PPE* - - - 136,434 136,434
Balance at 31 December 19,877 85 18,705 136,434 175,101
*Part of the terrestrial ber infrastructure that is leased, has been reclassied from PPE in accordance with IFRS 16.
Lease liabilities
Maturity analysis - contractual undiscounted cash ows 2021 2020
Less than one year 8,144 4,217
Between one and ve years 22,311 16,343
More than ve years 22,239 26,301
Total undiscounted lease liabilities at 31 December 52,694 46,861
Lease liabilities included in the statement of nancial position at 31 December 31,885 32,878
Amount recognised in prot or loss 2021
Interest on lease liabilities 2,064
Amount recognised in cash ow statement
Total cash ow from leases 6,227
Other information
The Group does not recognize right of use assets and lease liabilities for short term leases or leases where the underlying
assets has low value. The lease payments for such leases are recognised as costs linearly over the lease periods.
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
66 67
Note 19
Inventories
Note 20
Trade and other receivables
(NOK ‘000) 2021 2020
Gravel 4,539 4,561
Inventory data center 944 1,371
Total Inventories 5,484 5,932
(NOK ‘000) 2021 2020
Trade receivables 81,775 13,751
Other current receivables 72,788 103,332
Trade and other receivables 154,564 117,082
Other current receivables consists of earned not accrued revenue, VAT and other short-term receivables.
2021 2020
Provision for impairment of trade receivables at 1.1 934 60
This years provision for receivables impairment 12 873
Loss on receivables - -
Reversal of prior years provision - -
Provision for impairment of trade receivables at 31.12 946 934
Refer also note 25 for ellaboration on credit risk and assessment of provisions.
Ageing of trade and other receivables
Total Not due 0-30d 30-60d 60-90d >90d
2021 154,564 151,993 654 877 - 1,040
2020 117,082 113,829 219 122 - 2,913
Book value of trade and other receivables in the group’s balance sheet is considered to provide a reasonable estimate of the fair value.
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
68 69
Note 21
Cash and cash equivalents
(NOK ‘000) 2021 2020
Cash and cash equivalents 690,333 69,537
Restricted funds 4,494 4,024
Total 694,826 73,561
Note 22
Paid in equity and shareholders
(NOK ‘000) 2021 2020
Share capital 2,730,527 2,630,242
Change in paid in equity and share premium:
Total shares Share capital Share premium
(IN NOK)
(NOK ‘000) 2021 2020 2021 2020 2021 2020
Ordinary shares
Issued stock and paid in capital
At the beginning of the year 263,024,156 263,024,156 2,630,242 2,630,242 1,656,631 214 1,659,982,225
Group restructuring* - - - - - -3,351,011
Capital increase 10,028,581 - 100,286 - 199,899,705 -
At the end of the year 273,052,737 263,024,156 2,730,527 2,630,242 1,856,530 919 1,656,631,214
*Group restructuring carried out in 2020. Refer Annual report 2020, note 1, for further information.
The total numer of shares are 273 052 737, each valued at NOK 0,01, and NOK 2 730 527 in total share capital.
The company’s shareholders at 31.12
Shareholder Type of account Country Number of shares Share %
Bulk Infrastructure Holding AS Ordinary shares Norway 273,052,737 100%
Dividend
The company did not pay any dividend in 2021. No dividend has been proposed for approval in 2022.
Average number of shares
Basic and diluted earnings per share are calculated by dividing total comprehensive income attributable to shareholders in the parent
Company by the weightet average number of ordinary shares outstanding during the year.
2021 2020
Total comprehensive income, net of tax, attributable to shareholders in the parent Company 930,414 752 86,095,990
Weighted average number of outstanding shares 264,751 301 263,024,156
Basic and diluted earnings per share 3,51 0,16
The group’s activities expose it to a variety of nancial risks:
market risk, credit risk and liquidity risk.
The group’s overall risk management programme seeks to minimise
potential adverse effects on the group’s nancial performance.
Market risk
The group is exposed to market risk arising from changes in in-
terest rates and foreign exchange rates. The exposure is reduced
mainly by the use of nical derivatives. The group has operations
in Norway, Denmark and the UK.
Interest rate risk
The group’s interest rate risk arises on a short- and long-term
because part of the company’s borrowings are held at variable
rates. The lease is not altered according to interest rate levels,
but according to the terms of the lease contract. Changes in the
interest rate level will have a direct impact on the future cash ow
for the group.
To reduce the interest rate exposure, it is group policy to maintain
a share of its borrowings at xed interest rates. The distribution
between oating and xed rates will not necessarily be the same
for all group companies. Some of the current loan agreements
have hedging ratio-covenants. The group use interest rate deriva-
tives to manage their interest rate exposure.
As of December 31, 2021 NOK 199,1 million of the Group’s
borrowings of NOK 2 191,6 million is hedged at a xed rate.
Hedged nominal amount of NOK 199,1 expires in 2033. The
sensitivity is calculated by the Group, and the Groups interest
cost is estimated to increase/decrease by NOK 11,0 million for
2021 based on a change in the interest rate of +/- 0.5%.
Credit risk
Credit risk is the risk of loss when a party is unable to redeem
their obligations to the group. The risk is mainly linked to trade
receivables and other receivables and based on historical losses
the risk is considered not signicant. The risk is managed by doing
thorough evaluations of the credit quality of the customer when new
lease agreements are signed, demand deposits or guarantees, and
perform regular monitoring of the credit quality of material custom-
ers. The maximum exposure to credit risk at year end is equal to
the carrying amount of nancial assets. The majority of the Group’s
customers pay in advance for the services received.
As such, the credit risk is deemed as low. There are no material
amounts outstanding to spesic customers except associated
companies.
The group deems obligations to the group to be in default when
payments are 90 days past due. Please also see aging analysis
in note 20.
Liquidity risk
Liquidity risk is the risk that the group will not be able to meet their
obligations at maturity, and the risk that the group will not
be able to meet their liquidity obligations without a signicant
increase in cost. At a broader perspective, liquidity risk also
include the risk that the group is not able to nance necessary in-
vestments in the properties. The Group continuously monitors the
Group’s liquidity and has a long-term liquidity forecast in place.
Management also monitors the Group’s installments and expira-
tion of the long-term debt and prepares action plans to be able to
meet its obligations.
Liquidity risk is reduced by having a sufcient liquidity reserve,
and by ensuring that the debt maturitiesare distributed over time.
Note 23
Financial risk management
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
70 71
Fair value change
Variables Change in variables
+ 1 % - 1%
NIBOR +/- 1 % 4,31 -4,82
Sensitivity is obtained from DnB
Fair value of nancial derivatives
Fair value of derivatives, including interest rate swaps, is determined upon the present value of future cash ows relating to the agreements.
The present value is calculated based on interest rate curves on the date of appraisal. The calculations are made by the bank with
which the agreement is made.
Sensitivity effect of change in variables (MNOK):
The table below illustrates the maturity structure of liabilities
Expected cashow
Financial liability 2021
(NOK ‘000) Carrying amount Year 1 Year 2 Year 3-5 After year 5
Bond loan 969,350 - - 969,350 -
Borrowings (bank) 1,222,284 140,618 181,384 900,281 -
Other long-term liabilities - seller credit 33,634 - 16,000 16,000 1,634
Trade payables 74,927 74,927 - - -
Interest costs (bond loan) - 46,723 46,723 82,280 -
Interest costs (bank) - 34,674 29,729 13,504 -
Other current payables* 100,056 100,056 - - -
Total non-derivative nancial obligations 2,400,251 396,999 273,836 1,981,415 1,634
Derivative nancial intruments 10,819 1,411 1,098 2,892 5,418
Total derivative nancial obligations 10,819 1,411 1,098 2,892 5,418
Expected cashow
Financial liability 2020 Carrying amount Year 1 Year 2 Year 3-5 After year 5
Bond loan
966,205 966,205
Borrowings (bank)
623,885 259,385 26,363 335,943
2,194
Other short-term liabilities
48,000 - 16,000 32,000
-
Trade payables
94,193 94,193 - -
-
Interest costs (bond loan)
- 46,571 46,571 80,919
-
Interest costs (bank)
- 14,875 10,540 5,105
66
Other current payables*
113,826 113,826
Total,non-derivative,nancial,obligations
1,846,109 528,850 99,474 1,420,171
2,259
Derivative nancial intruments
14,581 1,679 1,613 4,146
7,142
Total derivative nancial obligations
14,581 1,679 1,613 4,146
7,142
* Other current payables are not complete as the table only presents nancial liabilities. As such, accruals are not included.
Refer note 27 for remaining payables. This also leads to an alteration in 2020 presentation.
When calculating interest costs only ordinary instalments are taken into consideration.
Note 24
Capital structure and capital management
The group’s objectives relating to capital management are to
ensure continued operation, to provide returns for shareholders
and benets for other stakeholders and to maintain an optimal
capital structure to reduce the cost of capital. The main objective
of the group’s capital management is to maintain a good debt
and equity ratio and reduce the Groups interest cost. The group
seeks to maintain a satisfactory equity ratio, but the main focus
is related to the debt ratio (loan-to-value/LTV). The LTV ratio
is calculated as gross debt divided by fair value of investment
property and book value of other assets. The group’s goal is
to have a debt ratio below 60 %. According to the group’s loan
agreements the LTV ratio should not exceed 65 % respectively.
Requirements related to LTV in the loan agreements are ad-
hered to both by year-end and for the rst half year periods in
2020 and 2021. The Group’s LTV is 28% as of December 31,
2021. To change the capital structure, the group may adjust
the amount of dividends paid to shareholders, return capital to
shareholders, issue new shares or sell assets to reduce debt.
The group’s capital needs are inuenced by the need for a
liquidity reserve for existing and possible new projects.
Solidity and liquidity
Equity and liquidity reserve are central key gures in the
management of the group capital structure. The group liquidity
reserve should be in proportion to all ongoing projects and any
new projects.
Group covenants
As per December 31, 2021, the Group is in compliance with all
nancial covenants. The Group has several nancial covenants
from loan agreements on both group level and within the
subsidiaries. The nancial covenants relate to minimum equity,
equity ratio, minimum liquidity and loan-to-value.
Telehousing in Denmark
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
72 73
Note 25
Interest-bearing debt
(NOK ‘000) 2021 2020
Total interest-bearing debt, nominal value 2,191,634 1,590,090
- of which hedged (xed interest rate) 199,060 40,560
Hedge Ratio* 9 % 3 %
Average interest rate at oating rate, including margin (%) 3,4 % 3,6 %
Average remaining duration, borrowings (years) 2,5 4,5
Average remaining duration, hedging contracts (years) 11,0 years 12,0 years
Total interest-bearing debt, nominal value 2,191,634 1,590,090
First year instalments of debt (short-term) 140,618 259,385
Long-term interest-bearing debt excluding rst year instalments 2,051,016 1,330,705
2021 2020
Maturity on long-term debt
Year 2 181,384 26,363
Year 3-5 1,869,631 1,302,148
After year 5 - 2,194
Total 2,051,016 1,330,705
The recognized carrying amount of the assets pledged as security for liabilities as per 31.12
2021 2020
Investment property 4,184,248 1,777,179
Total pledged assets 4,184,248 1,777,179
Borrowings secured with pledged assets 2,191,634 1,590,090
In addition to pledged investments property, the group has established priority pledge in the shares of subsidiaries, factoring and
bank accounts.
Please refer note 24 for further info regarding the Groups covenants.
Bond loan
Bulk Infrastructure Group AS 19/24 FRN
Bulk Infrastructure Group AS issued a 5 year NOK 500 million senior unsecured FRN bond 15 October 2019.
The Group further performed a tap issue of an additional NOK 500 million on the unsecured bond on 9 September 2020.
Note 26
Derivative financial instruments
(NOK ‘000) 2021 2020
Interest rate swaps 1 139 -
Total assets 1 139 -
Interest rate swaps -10,819 -14,581
Total liabilities -10,819 -14,581
2021 2020
Interest rate swaps
Nominal amount interest rate swaps -199,060 -40,560
Total nominal amount -199,060 -40,560
The Company receives oating interest and pay xed interest
Specication
ISIN NO0010865876
Maturity date 15.10.2024
Amount NOK 1,000,000,000
Coupon Nibor 3m + 4,5%
Coupon type FRN
Coupon frequency Quarterly
Trustee Nordic Trustee AS
Financial covenants
Equity ratio > 35%.
Security
Unsecured.
Listing
The Bond is listed as of 15 September, 2020.
Bulk Infrastructure Group AS
Financial statement 2021
75
Bulk Infrastructure Group AS Annual Report 2021Bulk Infrastructure Group AS Annual Report 2021
74
Note 28
Subsequent events after the reporting period
Events after the balance sheet date are events, favourable or
unfavourable, that occurs between the balance sheet date and
the date that the nancial statements are authorised for issue.
Such events can be events that provide information regarding
conditions that existed at the balance sheet date resulting in
adjustments of the nancial statement, or events that do not
require such adjustments.
Bulk Data Centers AS, the subsidiary of Bulk Infrastructure Group
AS, acquired the remaining 50 % of associated company, OS-IX
Eiendom Holding AS, from Akershus Energi on January 19, 2022.
As such, Bulk Data Centers takes full ownership of OS-IX.
Bulk Infrastructure Group AS received a capital contribution from
parent company, Bulk Infrastructure Holding AS, in November
2021. The capital contribution is not registered as of December
31, 2021. The capital contribution was formally registered on
February 2, 2022.
The Group established an incentive program in the end of 2021
with certain new employees. The program includes synthetic
options which will be effective Januray 1, 2022.
There are no other material subsequent events after the
reporting period.
76 Income statement
78 Balance sheet
80 Cash flow statement
82 Notes to financial statement
90 Auditor’s report
Note 27
Accounts payable and other payables
(NOK ‘000) 2021 2020
Trade payables 74,927 94,193
Accrued salaries, public duties 34,987 28,262
Accrued expenses 79,032 74,494
Prepaid income 16,173 71,859
Total 205,119 268,808
Prepaid income primarily consist of prepaid ber revenue related to IRU agreements.
(NOK ‘000) 2021 2020
Operating income and operating expenses
Sales revenue 1 60,626 43,493
Rental income 142 157
Other income 1,850 2,081
Total income 62,618 45,731
Raw materials and consumables used 15 -
Employee benets expense 2 44,024 29, 647
Depreciation of tangible and intanglible xed assets 3 2,917 3,096
Other expenses 2 15,393 10,956
Total expenses 62,350 43,699
Operating prot/loss 268 2,032
Financial income and expenses
Income from subsidiaries 4 - 3,610
Income from associated companies 5 4,645 558
Interest income from group companies 6 33,688 48,370
Other interest income 40 448
Other nancial income 1 34
Interest expense to group companies 1,607 0
Other interest expenses 7 51,137 30,460
Other nancial expenses 3,361 3,015
Net nancial items -17,732 19,546
Result before tax -17,464 21,578
Tax expense 8 -4,619 4,674
Result for the year -12,844 16,905
Allocation of result for the year
Other equity 9 -12,844 16,905
Total brought forward -12,844 16,905
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
76 77
Income statement
(NOK ‘000) Note 2021 2020
Assets
Non-current assets
Intangible assets
Research and development 3 - 2,644
Licences, patents etc. 3 515 882
Deferred tax assets 8 39,673 35,053
Total intangible assets 40,188 38,579
Property, plant and equipment
Land, buildings and other real estate 3 10,290 9,130
Equipment., xtures and ttings and other movables 3, 10 3,322 4,486
Total property, plant and equipment 13,612 13,616
Non-current nancial assets
Investments in subsidiaries 4, 10 2,197,551 2,197,551
Loan to group companies 6 101 611,425
Investments in associated companies 5 13,285 9,290
Other long-term receivables 2 2,788 2,748
Total non-current nancial assets 2,213,726 2,821,015
Total non-current assets 2,267,526 2,873,209
Current assets
Receivables
Accounts receivables - 12
Other short-term receivables 3,462 2,405
Receivables from group companies 6 565,398 20,389
Total receivables 568,861 22,805
Investments
Bank deposits, cash and cash equivalents 11 544,952 241,001
Total bank deposits, cash and cash equivalents 544,952 241,001
Total current assets 1,113,813 46,806
Total assets 3,381,339 2,920,015
(NOK ‘000) Note 2021 2020
Equity and liabilities
Equity
Paid in equity
Share capital 9, 12 2,731 2,630
Share premium reserve 9 1,856,531 1,656,631
Non-registered share capital increase 400,000 0
Total paid-up equity 2,259,261 1,659,261
Retained earnings
Other equity 9 114,041 126,886
Total retained earnings 9 114,041 126,886
Total equity 13 2,373,303 1,786,147
Liabilities
Other non-current liabilities
Bonds 7 969,350 966,205
Liabilities to nancial institutions 6 3,794 141,552
Total non-current liabilities 973,144 1,107,757
Current liabilities
Trade payables 4,951 1,764
Public duties payable 4,131 2,551
Other current liabilities 7 25,809 21,796
Total current liabilities 34,892 26,111
Total liabilities 1,008,036 1,133,868
Total equity and liabilities 3,381,339 2,920,015
Bulk Infrastructure Group AS
Oslo, March 24, 2022
The board of Bulk Infrastructure Group AS
Peder Nærbø
Founder and Executive Chair
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
78 79
Balance sheet Balance sheet
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
80 81
Indirect cash flow
(NOK ‘000) Note 2021 2020
Cash ows from operating activities
Prot/loss before tax -17,464 21,578
Loss/gain on the sale of xed assets 3 -9 -
Ordinary depreciation 3 2,917 3,096
Change in accounts receivable 12 3
Change in accounts payable 3,187 1,981
Items classied as investment or nancing activities 5 -4,645 -558
Change in other accrual items -11,607 9,894
Net cash ows from operating activities -27,609 35,994
Cash ows from investment activities
Proceeds from the sale of xed assets 3 2,653 -
Payments to buy tangible assets 3 -2,547 -
Dividend received 5 650 1,350
Proceeds from sale of shares and participations in other companies 4 - 29,063
Payments to buy shares and participations in other companies 4 - -1,275,094
Payments to buy other investments 7 - -100,000
Proceeds from the sale of other investments 7 - 118,000
Net cash ows from investment activities 756 -1,226,681
Cash ows from nancing activities
Proceeds from the issuance of new long-term liabilities 7 - 500,000
Proceeds from the issuance of new current liabilities - 135,000
Repayment of long-term liabilities 10 -137,758 -
Repayment of current liabilities - -365
Net change in accrued items related to group cash pool 10 -529,372 -
Proceeds from equity 9 600,000 -
Change in receivable related party 6 611,324 594,901
Proceeds from Group contributions 3,610 -
Net cash ows from nancing activities 547,804 1,229,536
Cash effect Group restructuring - demerger 9 - -14,887
Net change in cash and cash equivalents 520,951 23,961
Cash and cash equivalents at the start of the period 24,001 40
Cash and cash equivalents at the end of the period 544,952 24,001
Accounting principles
Accounting principles
Accounting principles
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
82 83
The nancial statements are presented in accordance with relevant
Norwegian laws and generally accepted accounting principles
for other enterprises. The principles are outlined below and
have been consistently applied to all periods presented, unless
otherwise is stated.
CURRENT ASSETS AND LIABILITIES
Balances that fall due within a year are classied as current
assets and liabilities. The value of current assets is presented
as the lower historical cost and fair value.
BOND LOAN
The bond is measured by amortized cost according to the
Norwegian Accounting Act chapter 5. Amortized cost calculated
by effective interest rate is accepted in the standard assessment
guidelines. The amortized cost of an asset is comprised by original
cost, minus transactions between the parties (eg. payments,
interest and fees), plus effective interest. An impairment would
decrease the calculated value.
INTANGIBLE ASSETS
Expenditure on Research and Development is capitalised providing
a future nancial benet relating to the development of an identiable
intangible asset can be identied and the expenses can be
measured reliably. Otherwise, such expenditure is expensed as
and when incurred. Capitalised development costs are amortised
linearly over the asset’s expected useful life.
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment (PPE) are assets held for long-
term ownership and use. PPE are valued at historical cost less
subsequent depreciation and impairments. Historical cost includes
expenditure directly attributable to the acquisition of the items.
Depreciation is calculated based on estimated useful lives for the
assets. Impairments occur when historical cost exceeds long-term
fair value. Previous impairments may be reversed if there are
signicant changes in value.
INVESTMENTS IN OTHER COMPANIES
The cost method is applied to investments in subsidiaries and
associated companies. Cost may vary with capital contributions.
Investments are subject to impairments if permanent fair value is
lower than cost. Previous impairments may be reversed if there
are signicant changes in value.
The group has refrained from submitting consolidated nancial
statements in accordance with regulations for small enterprises.
Dividends are classied as nancial income. Capital contributions
from previous ownership are classied as return of capital and
will reduce historic cost.
RECEIVABLES
Receivables are recognized at fair value. A provision for impairment
is established when objective evidence exists that the company
will be unable to collect the entire amount due in accordance with
the original terms of each receivable.
TAX
The tax charge in the income statement includes both payable
taxes for the period and changes in deferred tax. Deferred tax is
calculated at 22 % on the basis of the temporary differences that
exist between accounting and tax values, as well as any possible
taxable loss carried forwards at the end of the accounting year.
Tax enhancing or tax reducing temporary differences, which are
reversed or may be reversed in the same period, have been
eliminated.
CASH FLOW STATEMENT
The cash ow statement has been prepared according to the indirect
method. Cash and cash equivalents include cash, bank deposits,
and other short-term investments which immediately and with
minimal exchange risk can be converted into known cash amounts,
with due date less than three months from purchase date.
CHANGES IN ACCOUNTING PRINCIPLES
There were no changes in the accounting principles applied by
the company in 2021.
CONSOLIDATED FINANCIAL STATEMENTS
Bulk Infrastructure Group AS is included in the consolidated nancial
statements of Bulk Infrastructure Holding AS, Bulk Industrier AS and
available at www.bulkinfrastructure.com and www.bulkindustrier.no.
Note 2
Personnel expenses, number of employees, remuneration, loan to employees
(NOK ‘000) 2021 2020
Payroll,expenses
Salaries / wages 37,770 36,423
Social security fees 4,782 4,812
Pension expenses 594 809
Other remuneration 1,458 1,282
Allocated saleries to other group companies -580 -13,679
Total 44,024 29,647
Average number of employees during the nancial year 21 18
Salaries and remunerations to executives* (NOK ‘000) CEO Executive Chair Board members
Salaries and bonuses 4,146 5,427 2,896
Other remunerations 186 265 330
Total 4,332 5,692 3,226
The board of Bulk Infrastructure Holding AS recieved a total board fee of TNOK 900 in 2021
The CEO of Bulk Infrastructure Holding AS, Jon Gravråk, has a trade credit of TNOK 1 037 pr 31.12.2021 in connection with the share
scheme for employees owning shares in Klub Bulk. The trade credit is charged with a interest rate of 1,3% - 1,5% in accordance with
the “Normrente” set by the Tax Commision ofce.
* The CEO, Executive Chair and Board members receive salaries and remunerations from Bulk
Infrastructure Group AS, but are formally registered as CEO, Executive Chair and Board members of the
parent company, Bulk Infrastructure Holding AS.
OTP (Statuatory occupational pension)
The company is required to have a pension scheme in accordance with the Norwegian law on required
occupational pension (“lov om obligatorisk tjenestepensjon”). The company’s pension scheme meets the requirement of this law.
Expensed audit fee
Expenses paid to the auditor for 2021 amounts to TNOK 1 298,- excl.mva.
Statutory audit fee 867
Tax advisory 57
Assurance services 95
Other assistance 279
Total audit fees 1,298
Note 1
Transactions with related parties
Bulk Infrastructure Group AS provide services in accounting and
administration to related companies and companies in the group.
The services are priced according to current market conditions. In
2021, fees for accounting, administration and project management
of TNOK 60 626 have been recognized as income
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
84 85
Note 3
Fixed assets
(NOK ‘000) Land Buildings
Moveables and
machines
R&D and
software Total
Purchase cost 01.01 5,126 7,979 12,463 4,539 30,105
Additions - 1,749 799 - 2,547
Disposals - - - -2,644 -2,644
Purchase cost 31.12 5,126 9,727 13,261 1,895 30,009
Acc. depr. 31.12 - 4,563 9,939 1,380 15,881
Book value 31.12 5,126 5,164 3,322 515 14,128
Depr. this year - 589 1,962 367 2,917
Not depreciated 10-15 years,
linear
3-5 years,
linear
5 years, linear,
not depreciated
Note 4
Investments in subsidiaries, associates and joint ventures
Investments in subsidiaries are booked according to the cost method.
Company
(NOK ‘000) Ownership/voting rights Cost price Write-down Book value
Bulk Industrial Real Estate AS 100% 499,478 - 499,478
Bulk Data Centers AS 100% 933,392 - 933,392
Bulk Fiber Networks AS 100% 764,682 - 764,682
Sum 2,197,551 - 2,197,551
The companies are based in Oslo, Norway.
Company
(NOK ‘000) Book value P/L for 2021 (100 %) Equity pr. 31.12 (100 %)
Bulk Industrial Real Estate AS 499,478 7,722 471,367
Bulk Data Centers AS 933,392 -44,061 755,805
Bulk Fiber Networks AS 764,682 -71,957 666,990
Sum 2,197,551 -108,296 1,894,163
Note 5
Investments in associated company accounted for according to the equity method
Investments in associates and joint ventures are booked according to the equity method.
Company Location Ownership Voting rights
AE Bulk Co-Invest AS
(NOK ‘000) Oslo, Norway 50% 50 %
Analysis of additional value:
Name of subsidiary: AE Bulk Co-Invest AS
Balance sheet equity at the acquisition date 28
Identiable fair value adjustments -
Goodwill -
Acquisition cost 28
Calculation of result portion for the year:
Name of subsidiary: AE Bulk Co-Invest AS
Share of result for the year 4,645
Result portion for the year 4,645
Calculation of balance sheet value 31.12
Name of subsidiary: AE Bulk Co-Invest AS
Balance sheet value 01.01 9,290
Share of the result for the year 4,645
Transfers to.from(-) the company (dividends,group contributions) -650
Other changes during the year -
Balance sheet value 31.12 13,285
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
86 87
Note 6
Debtors, liabilities, pledged assets and guarantees etc.
Long-term receivables with minimum maturity of 1 year
Bulk Infrastructure Group AS does not have any receivables due later than 1 year.
Long-term debt with minimum maturity of 5 years
Bulk Infrastructure Group AS does not have any debt with minimum maturity of 5 years
(NOK ‘000) 2021 2020
Balances with group companies
Long-term claims on group companies 101 611,425
Accounts receivable from group companies 36,026 16,778
Claims on associtated companies 529,372 3,610
Short-term debt to group companies 5 -
Total 565,505 631,814
Other debt have priority over debt to group companies. Balances with group companies are charged with an interest rate equal to
NOWA 3M + 4% p.a.
Bulk Infrastrcture Group AS is the owner of a group cash pool. Of the company’s short term claims on group companies TNOK 529
372 are claims regarding the cash pool.
Note 7
Bond loan
Bulk Infrastructure Group AS AS issued a 5 year NOK 500 million senior unsecured
FRN bond 15 October 2019. Bulk Infrastructure Group AS further performed a tap issue
of an additional NOK 500 million on the unsecured bond on 9 September 2020.
Spesication
ISIN NO001 10865876
Maurity date 10.15.2024
Amount NOK 1,000,000,000
Coupon Nibor 3 mnd + 4,5 %
Coupon type FRN
Coupon Freqency Quarterly
Trustee Nordic Trustee AS
Financial covenants
Equity ratio > 35%
Security
Unsecured
Listing
The bond is listed as of 15 September, 2020
Note 8
Ta x
(NOK ‘000) 2021 2020
This year’s tax expense
Entered tax on ordinary prot/loss:
Payable tax - -
Changes in deffered tax assets -4,619 4,674
Tax expense on ordinary prot/loss -4,619 4,674
Taxable income:
Ordinary result before tax -17,464 21,578
Permanent differences -3,534 -308
Changes in temporary differences 6,964 -4,860
Allocation of loss to be brought forward - -16,410
Taxable income -14,033 -
Payable tax in the balance:
Payable tax on this year’s result - -794
Payable tax on received Group contribution - 794
Total payable tax in the balance
-
-
The tax effect of temporary differences and loss for to be carried forward that has formed the basis for deferred tax and deferred tax
advantages, specied on type of temporary differences:
(NOK ‘000)
2021 2020
Difference
Tangible assets
-892 -
892
Tangible assets from merger/demerger
- 117
117
Allocations and more
-10,684 -
10,684
Allocations and more from merger/demerger
- -4,729
-4,729
Total
-11,576 -4,612
6,964
Accumulated loss to be brought forward
-168,754 -26
168,728
Accumulated loss to be brought forward
- -171,104
-171,104
Merger/demerger
Basis for deferred tax assets
-180,330 -175,742
4,588
Deferred tax assets (22 %)
-39,673 -35,053
4,619
Refer to note 1 for further explanations of the group restructuring
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
88 89
Note 9
Equity
(NOK ‘000)
Share Non-registered Retained
Share capital premium reserve capital increase earnings Total equity
Equity 01.01 2,630 1,656,631 - 126,886 1,786,147
Share capital increase 100 199,900 - - 200,000
Non-registered share - - 400,000 - 400,000
Capital increase - - - -
Annual net prot/loss - - - -12,844 -12,844
Equity 31.12 2,731 1,856,531 400,000 114,041 2,373,303
Note 10
Liabilities to credit institutions
(NOK ‘000) 2021 2020
Liabilities secured by collateral:
Debt to credit institutions 3,794 141,552
Book value of collateral:
Capital increase 2,197,551 2,197,551
Shares in subsidiaries 2,794 3,835
Total book value of collateral 2,200,345 2,201,386
(NOK ‘000) Share capital Number Nominal value Book value
Ordinary shares 273,052,737 0,0100 2,731
Shareholders Country Number of shares Share of capital %
Bulk Infrastructure Holding AS Norway 273,052,737 100 %
Executive Chair, Peder Nærbø, has an indirect ownership of 52.7 % in Bulk Infrastructure Group AS
Note 12
Share capital and shareholder information
Note 13
Going concern
The covid-19 pandemic has not had a signicant impact during the nancial year.
Following this, the covid-19 pandemic is not considered to have raised an signicant uncertainty regarding the company’s ability to
continue operations. The annual accounts have therefore been prepared on the assumption of going concern.
Note 11
Restricted funds
Funds of TNOK 2 416 restricted to employees taxes are included in the cash-post in the balance sheet.
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
90 91
The Board of Directors have today treated and approved
the annual report and nancial statements for Bulk Infra-
structure Group AS (the parent company) and the Group,
the consolidated accounts, as of December 31, 2021. The
consolidated nancial statements have been prepared in
accordance with the EU-approved IFRS standards and
interpretations, together with the additional disclosure re-
quirements in the Norwegian Accounting Act to be applied
as of December 31, 2021. The nancial statements for the
parent company are prepared in accordance with relevant
Norwegian laws and generally accepted accounting princi-
ples in Norway as of December 31, 2021.
The annual report for the Group and the parent company
is in compliance with the Accounting Act.
To the best of our knowledge, we conrm that;
• the 2021 nancial statements for the Group and the
parent company are prepared in accordance with appli-
cable accounting standards
• the provided information in the nancial statements
gives a true and fair view of the Group and the parent
company’s assets, liabilities, nancial position and
results of operations as of December 31, 2021
• the Board of Directors report provides the Group and
the parent company a fair view of
- development, performance and position of the Group
and parent company
- the most important risks and uncertainties the Group
and the parent company faces
Responsibility statement by the Board
of Directors - Bulk Infrastructure Group AS
Peder Nærbø
Founder and Executive Chair
Oslo, March 24, 2022
The board of Bulk Infrastructure Group AS
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
92 93
BDO AS
Munkedamsveien 45
Postboks 1704 Vika
0121 Oslo
Independent Auditor's Report Bulk Infrastructure Group AS - 2021 Page 1 of 5
Independent Auditor's Report
To the General Meeting in Bulk Infrastructure Group AS
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Bulk Infrastructure Group AS.
The financial statements comprise:
• The financial statements of the parent
company, which comprise the balance
sheet as at 31 December 2021, income
statement and cash flows for the year
then ended, and notes to the financial
statements, including a summary of
significant accounting policies, and
• The financial statements of the group,
which comprise the balance sheet as at
31 December 2021, and income
statement, statement of
comprehensive income, statement of
changes in equity and cash flows for
the year then ended, and notes to the
financial statements, including a
summary of significant accounting
policies.
In our opinion:
• The financial statements comply with
applicable statutory requirements,
• The accompanying financial statements
give a true and fair view of the
financial position of the company as at
31 December 2021, and its financial
performance and its cash flows for the
year then ended in accordance with
the Norwegian Accounting Act and
accounting standards and practices
generally accepted in Norway.
• The accompanying financial statements
give a true and fair view of the
financial position of the group as at 31
December 2021, and its financial
performance and its cash flows for the
year then ended in accordance with
International Financial Reporting
Standards as adopted by the EU.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Company and
the Group as required by laws and regulations and International Ethics Standards Board for
Accountants’ International Code of Ethics for Professional Accountants (including International
Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in
accordance with these requirements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit
Regulation (537/2014) Article 5.1 have been provided.
We have been the auditor of Bulk Infrastructure Group AS for 2 years from the election by the
general meeting of the shareholders on 11.09.2019 for the accounting year 2019.
Independent Auditor's Report Bulk Infrastructure Group AS - 2021 Page 2 of 5
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial statements of the current period. These matters were addressed in the
context of our audit of the financial statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters.
Description of the key audit matter How the key audit matter was addressed in
the audit
Fair value of investment property
The group’s investment property represents a
substantial portion of the total assets and
consists primarily of logistics properties, with a
carrying amount of NOK 4 184 248 thousand.
Fair value adjustments of investment
properties will affect the group’s results, and
consequently the equity, significantly over the
years. Valuation of investment properties
requires use of estimates that are subject to
judgment by management. Key assumptions for
the fair value assessment of the individual
property are primarily expected future cash
flow and yield, as well as property specific
information. Management's estimate is to a
large extent based on valuations performed by
an independent valuation firm.
The complexity and the judgmental aspects of
the valuation lead us to define this area as an
important aspect of the audit. Note 6 to the
consolidated financial statements further
describes the methods and assumptions applied
in the valuation.
We have assessed qualifications, competence
and objectivity of the valuation firm and
obtained, read and understood the valuation
report from this firm. We have also assessed
whether information used in the valuation is
consistent with other information obtained by
the group. Further, we have assessed the
methodology, model, and assumptions applied
by management when performing the estimate.
Internal specialists have assisted us in this
process.
For a sample of investment properties, we have
evaluated whether the property-specific
information provided by management to the
valuation firms such as lease terms, duration
and vacant area are consistent with underlying
information to the firm’s validation reports.
Valuation of PPE – fiber
Fiber networks constitutes a major part of the
property, plant equipment in the balance
sheet. The carrying values are measured at
cost. Fiber networks has a carrying amount of
NOK 562 017 thousand. Book value is measured
against the highest of fair value and value in
use at the balance sheet date when
impairment indicators are identified.
Depreciation plan and estimates are further
described in note 14 to the consolidated
financial statements. Fiber networks are
initially recognized at cost. Where there are
We have read and understood the underlying
contracts with costumers and thus, verified
market prices available. We have assessed
whether these marked prices support the book
value of fiber. Further, we have verified
acquisitions by matching the carrying amounts
to underlying documentation. We have also
assessed management assumptions applied
when performing the valuation. Internal
specialists have assisted us in this process.
Independent Auditor's Report Bulk Infrastructure Group AS - 2021 Page 3 of 5
available marked prices, these prices are used
to substantiate the value. In cases where
similar transactions are not available, the fiber
networks are estimated based upon signed
contracts with costumers, effective from the
time of completion in 2021. The inherent
uncertainty of the valuation made us define
this as a key matter in our audit. We refer to
further descriptions in note 14 to the
consolidated financial statements.
Valuation of PPE – Data Centers
Data Centers constitute a major part of the
property, plant equipment in the balance
sheet. The carrying values are measured at
cost. Data Centers has a carrying amount of
NOK 756 707 thousand. Book value is measured
against the highest of fair value and value in
use at the balance sheet date when
impairment indicators are identified.
Management has used similar transactions to
measure the potential sales value. The
inherent uncertainty of the valuation made us
define this as a key matter in our audit. We
refer to further descriptions in note 14 to the
consolidated financial statements.
We have obtained, read and understood the
valuation documentation.
We have also assessed whether information
applied in the valuation is consistent with
other information obtained by the group.
Further, we have evaluated the information
related to the management’s conclusion
related to comparison of similar market
transactions, when performing the estimate.
Internal specialists have assisted us in this
process.
Other information
The Board of Directors and the Managing Director (management) is responsible for the other
information. The other information comprises the Board of Directors’ report and other information
in the Annual Report, but does not include the financial statements and our auditor’s report
thereon. Our opinion on the financial statements does not cover the other information.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with
the consolidated financial statements or our knowledge obtained in the audit or otherwise appears
to be materially misstated. If, based on the work we have performed, we conclude that there is a
material misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Opinion on the Board of Director’s report
Based on our knowledge obtained in the audit, in our opinion the Board of Directors’ report
• is consistent with the financial statements and
• contains the information required by applicable legal requirements.
Independent Auditor's Report Bulk Infrastructure Group AS - 2021 Page 4 of 5
.
Responsibilities of the Board of Directors and the Managing Director for the Financial Statements
Board of Directors and the Managing Director (management) are responsible for the preparation of
financial statements that give a true and fair view, for in accordance with the Norwegian
Accounting Act and accounting standards and practices generally accepted in Norway, and for the
preparation and fair presentation of the financial statements of the group in accordance with
International Financial Reporting Standards as adopted by the EU, and for such internal control as
management determines is necessary to enable the preparation of financial statements that are
free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern.
The financial statements of the Company use the going concern basis of accounting insofar as it is
not likely that the enterprise will cease operations. The financial statements of the Group use the
going concern basis of accounting unless management either intends to liquidate the Group or to
cease operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
For further description of Auditor’s Responsibilities for the Audit of the Financial Statements
reference is made to:
https://revisorforeningen.no/revisjonsberetninger
Report on compliance with Regulation on European Single Electronic Format (ESEF)
Opinion
We have performed an assurance engagement to obtain reasonable assurance that the financial
statements with file Bulk Infrastructure Group AS Annual Report 2021.zip have been prepared in
accordance with Section 5-5 of the Norwegian Securities Trading Act (Verdipapirhandelloven) and
the accompanying Regulation on European Single Electronic Format (ESEF).
In our opinion, the financial statements have been prepared, in all material respects, in accordance
with the requirements of ESEF.
Management’s Responsibilities
Management is responsible for preparing, tagging and publishing the financial statements in the
single electronic reporting format required in ESEF. This responsibility comprises an adequate
process and the internal control procedures which management determines is necessary for the
preparation, tagging and publication of the financial statements.
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
94 95
Independent Auditor's Report Bulk Infrastructure Group AS - 2021 Page 5 of 5
BDO AS, a Norwegian liability company, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the
international BDO network of independent member firms. The Register of Business Enterprises: NO 993 606 650 VAT.
Auditor’s Responsibilities
For a description of the auditor’s responsibilities when performing an assurance engagement of the
ESEF reporting, see: https://revisorforeningen.no/revisjonsberetninger
Oslo, 24.03.2022
BDO AS
Johan Henrik L'orange
State Authorised Public Accountant
Bulk Infrastructure Group AS Annual Report 2021 Bulk Infrastructure Group AS Annual Report 2021
96 97
Bulk Infrastructure Group AS,
Karenslyst Allé 53,
0279 Oslo, Norway
Phone: +47 47 80 70 00
bulkinfrastructure.com
Bulk is racing to bring
sustainable infrastructure
to a global audience