2022
Bulk Infrastructure Group AS Annual Report
Sustainability as a business
4
Letter from the Founder and Executive Chair
6
Group presentation
8
Bulk Fiber Networks
12
Bulk Industrial Real Estate
16
Bulk Data Centers
20
Board of Directors Report 2022
29
Consolidated financial statements 2022
83
Parent company financial statements 2022
98
Responsibility statement
Contents
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Letter from the CEO and Executive Chair
The importance of making businesses more
sustainable is growing stronger every day. Owners,
decision makers and policy makers are putting
sustainability at the top of their agendas. This is
not a trend, it is a fundamental way of thinking and
acting that should underpin everything we do.
At Bulk Infrastructure we are far from perfect when
it comes to sustainability. But since the inception of
our company in 2006, sustainability has been at the
heart of what we do. We didn’t have a large existing
business where CO2 emissions could be cut to
reduce our footprint. Hence, we did not have to start
our journey by changing the way we work. We
started by making sustainability a business in itself.
By building warehouse infrastructure at strategic
locations, we have made the sustainability and effici-
ency of the transport and logistics industry our core
business. By building data centers close to surplus
of renewable power and connecting them with new
fiber routes, we have made the sustainability of the
digital society our core business. By investing in solar
panels on our rooftops and re-use of heat, we have
made renewable energy production our business.
Again and again, we see that challenges in establis-
hed industries provide great business opportunities
for us. The desire to combine operational know-how
from infrastructure development and the courage
to think large scale, expose us to opportunities for
growing existing business areas and investing into
new ones.
So far we have built three independent and
successful companies at different stages of maturity.
Bulk Industrial Real Estate is in a phase of organic
growth, maximising recurring revenue. Bulk Data
Centers continues to expand capacity and increase
its base of global customers. Bulk Fiber Networks
develops large scale fiber infrastructure projects and
makes them operational.
We celebrate their independent success and have
high aspirations for continued growth and sustaina-
bility impact.
While launching and scaling three independent
concepts, we have in parallel at Group level formed
a capability of developing and investing in green
industry. We combine our trust and experience with
the capital markets and operational ability of delive-
ring large scale infrastructure projects. We combine
local knowledge of the Nordics with the ability to
think on an international scale and create solutions
for the most demanding customers in the world. With
all of these capabilities combined in one team, we
are excited to support our existing businesses and to
explore adjacent opportunities within sustainability,
energy and infrastructure.
We look forward to learn from existing and new
partners and bring our complementary capabilities
into play for even greater business and sustainability
impact in 2023.
Jon Gravråk
CEO
Peder Nærbø
Founder and Executive Chair
Sustainability as a Business
At Bulk Infrastructure we are far from perfect
when it comes to sustainability. But since the
inception of our company in 2006, sustainability
has been at the heart of what we do
Bulk Infrastructure Group AS Annual Report 2022 Bulk Infrastructure Group AS Annual Report 2022
4 5
The Group consists of three business areas that
develop successfully with an increasing degree
of autonomy, and a Group Management that
explores future business opportunities as well as
supporting the business areas.
All of Bulk’s business areas have an impact on the
environment, on society and are confronted with
governance issues. It is a fundamental part of the
Bulk culture to accelerate the positive impact and
reduce any potential negative effects.
The topic of this annual report is Sustainability as
a Business. Transparency is necessary, especially
when areas in need of improvement are exposed.
In 2022 Bulk upgraded the group’s ESG framework
(Environmental, Social and Governance). Previo-
usly, the framework was concentrated on environ-
mental impact. Now, social impact and governance
issues have been included. Please visit bulk.no/
sustainability for more information.
A company’s financing also needs to be sustai-
nable. In a challenging financial market, Bulk
Infrastructure Group AS succeeded to issue a new
senior unsecured green bond of NOK 500 million.
The net proceeds from the bond will be utilized in
accordance with the green bond framework.
Bulk is not perfect. By exposing our imperfections,
you may help us getting closer.
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 Infrastructure Group AS is owned by Bulk Infrastructure Holding AS, which has the following ownership structure:
Key Figures (Consolidated)
MNOK 2022 2021 %
Revenue excl. Property sales 284,4 183,1 55,3 %
Revenue property sales -8,3 182,5 -104,5 %
Total revenues 276,1 365,7 -24,5 %
Fair value change on investment property -369,2 1,352,8 -127,3 %
Profit for the year -442,5 927,9 -147,7 %
Assets 7,974,2 6,874,2 16,0 %
- Investment property 4,628,5 4,184,2 10,6 %
- Property, plant and equipment 2,339,0 1,328,7 76,0 %
Equity ratio (%) 43, 8% 43,8 % 0,0 %
Number of employees 81 70 15,7 %
Financial highlights
We are proud to see that recurring revenue is growing in line with our strategy, an increase of
55 per cent in revenue excluding property sales.
As a company with substantial exposure to investment property our financial results are influenced
by macro changes in the capital market. In particular increasing interest rates and higher inflation
have led to increasing yields in the Nordic real estate market, thus negatively influencing fair
market value of our investment property in 2022. The fair value change in 2022 is negative by NOK
369.2 million compared to a positive fair value change in NOK 1,352.8 million the previous year.
Bulk Industrier AS 53%
BGO King HoldCo Sarl 17%
Geveran Trading Co Ltd 13%
Employees 5%
Other 12 %
Bulk Industrial Real Estate
Nina Hage - EVP
Bulk Data Centers
Gisle M. Eckhoff - EVP
Bulk Fiber Networks
Jon Gravråk (interim EVP)
Portfolio Development&
Ownership (PD&O)
Torbjørn Moe - CBDO
CEO
Jon Gravråk
Finance
Gaute Krekling - CFO
Group functions
Torill Møklebust - CGO
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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 includes new-built subsea and terrestrial cable systems.
Executing on our plans
In 2022, Bulk Fiber Networks completed the
construction of two cable systems, HAVSIL and
Havhingsten, and finalized the Irish landing for the
Havfrue system.
Bulk HAVSIL, the new Nordic express route to
Europe, was completed and set into operation
early 2022. HAVSIL is the shortest route
connecting Norway with continental Europe, and
connects Bulk data center N01 Campus close
to Kristiansand with Bulk data center DK01 in
Esbjerg. HAVSIL was selected by the Norwegian
Communications Authority as the new secure fiber
system for the nation’s international data traffic,
with Arelion as the service provider. The capacity
of the fiber system more than doubles the total
existing fiber capacity connecting into Norway.
In March 2022, the construction of the
Havhingsten subsea cable system was
completed. The project is a cooperation between
Aqua Comms, Meta and Bulk Fiber Networks.
Havhingsten connects Denmark, the UK and
Ireland. Bulk colocation is available at Bulk
data center DK01 in Esbjerg, providing direct
connectivity to major European and Nordic cities.
The Havfrue system was fully completed with the
landing of the Irish branch in September 2022.
The main trunk connecting New Jersey, US and
Esbjerg, Denmark with a Norwegian branch to
Kristiansand, was completed late 2020 and is a
cooperation with Aqua Comms, Meta, Google and
Bulk Fiber Networks.
Reliability is key in fiber operations, and in
2022 Bulk reported a 100 per cent up-time all
year on all telehousing units. These units are
placed along terrestrial fiber cables, enabling
connections along the cables and ensuring that
signals continue uninterrupted.
Planning ahead
Bulk Fiber Networks’ long term ambition is to
become the partner of choice in the Nordics. This
also includes acting as a landing party for other
international cable system providers wanting to
connect with the Nordics. Both N01 Campus in
Kristiansand and DK01 in Esbjerg are uniquely
positioned gateways for international traffic into the
Nordics.
The planning of the Leif Erikson Project has made
significant progress in 2022. The system aims
to interconnect the two renewable energy giants
in the world, the Nordics and Atlantic Canada,
in order to grow sustainable digital infrastructure
driven by an abundance of renewable energy.
In 2023, Bulk Fiber Networks will have all systems
fully completed and in operation and will focus on
fine-tuning the operating model to ensure world-
class customer service level.
Sustainable operations
The global market for fiber capacity continues to
grow quickly, driven by increased demand for low
latency, high capacity and high quality secure data
traffic. Bulk Fiber Networks’ attractive offering is
appreciated by customers worldwide.
A requirement for all suppliers selected by Bulk
is that their operations are run sustainably. Bulk
takes care to reduce the environmental impact
when fiber routes are planned both subsea and
on land. Surveys are done in advance to minimize
impact on the seabed and avoid interfering with
spawning grounds for fish and other sea animals.
Bulk’s fiber networks unlock the Nordic region’s
sustainable data centers for customers globally.
Low latency, high capacity fiber networks ensure
that customers no longer need to rely on local
data centers powered by non-renewable energy
sources.
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Carbon emissions for Fiber Networks according to the Green House Gas Protocol
Our locations in the Nordics provide us with the advantage of renewable power and a stable grid. Renewable power
constitutes nearly 100 per cent of the energy in Norway. As a result, Bulk’s emissions in scope 1 and 2 are very low.
The majority of Bulk’s emission derive from activities in our supply chain and is reflected in scope 3 emissions. We will
continue to cooperate with our suppliers to find more sustainable alternatives. With the scaling of our solutions over the
coming years, it will be our main focus to reduce the impact from scope 3.
The carbon footprint analysis is based on the international standard; A Corporate Accounting and Reporting Standard, developed by the Greenhouse Gas Protocol Initiative (GHG Protocol).
According to the GHG Protocol Corporate Standard, Bulk has defined the organizational boundary as operational control.
Scope 3 has 15 categories, Bulk reports on the essentials for our business
Refer our webpage bulkinfrastructure.com for our TCFD-report including more information on our emissions
1. (IEA (2022): “IEA EMISSIONS FACTORS 2022”, *“ELECTRICITY INFORMATION 2022”)
Scope 1
Direct emissions from activities under
the organizations’ control, including
fuel combustion.
Bulk Fiber Networks has gensets on
each telehouse as back-up in case of
power outage. A 100 per cent up-time
was reported in 2022. The majority of
emissions in scope 1 is stemming from
testing of gensets, which is performed
on a quarterly basis.
2.4 tCO2e
Scope 3
All other indirect emissions that
occur in the company’s value chain.
Scope 3 covers all parts of the value chain, upstream and
downstream, and constitutes the majority of emissions for
Bulk Fiber Networks. This scope includes several sub-
categories, of which the relevant ones for Bulk’s emissions
will be outlined below.
Tracking and reporting of this category of emissions is
crucial for the net zero process. Bulk strives to improve
the input from our supply chain and aim to make a shift
from cost-based estimates to accurate numbers from our
suppliers on life cycle assessment.
1.007 tCO2e
Category 2 Capital goods
Include embodied emissions from materials,
fuel combustion, equipment and activities from
subcontractors’ ship and machine park during the
installation of fiber cables and construction of telehousing
Category 6 Business travel
Employee travel for business-related affairs during the
reporting year
Category 8 Upstream leased assets
Operation of assets leased by the reporting company
(lessee) in the reporting year and not included in scope 1
and scope 2, mainly related to headquarters
Scope 2
Indirect emissions from the production
of purchased electricity, heating
or cooling.
According to the GHG protocol there are
two ways to report scope 2:
1. Market-based, include the impacts of
renewable energy procurement through
Guarantees of Origin. Bulk purchases
Guarantees of Origins from renewable
energy from where we are located.
2. Location-based, the physical approach
tracking emissions that are generated by
production of electricity locally where the
company’s operation is located. Emissions
are calculated based on average emission
factors
(1)
for each country where Bulk
operates.
Market-based 0 tCO2e
Location-based 3.0 tCO2e
92,5 %
2,0 %
5,6 %
Capital goods
Business travel
Upstream leased assets
With the completion of the last branch into Ireland
in 2022, we achieved an important milestone for
sustainable transatlantic communications with
our Havfrue cable system connecting the US into
the Nordics
Telehousing
Completion of Havfrue
Per Magne Olsen
VP Projects & Operations
Merete Caubet
VP Sales & Business Development
A milestone was reached as the three last telehouses
on the Inter-City Ring in Norway was completed in
2022, bringing the total of telehouses to twelve on
the Inter-City Ring, in addition to three telehouses
in Denmark
99,5 %
0,3 %
0,2 %
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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 logis-
tics parks. The Bulk logistics module is highly recognizable in key logistics areas in
Norway and Scandinavia.
Growth in a challenging market
The 2022 has marked a year of high activity in
Bulk Industrial Real Estate, with the completion of
approximately 60 000 square meters of new builds
which have been added to the Bulk real estate
portfolio. The real estate portfolio grew in excess
of 40 per cent, with a corresponding increase in
rental income.
Bulk Industrial Real Estate completed its 50th
construction project in 2022, passing 500 000
square meters of new built logistics real estate,
confirming the success of the Bulk Module.
The second half of the 2022 financial year was
marked by a more unfavorable macroeconomic
environment, and increased uncertainty in the
real estate markets. Increasing yields and interest
rates in addition to uncertain pricing on new
projects has reduced the signing activity at the
end of 2022, resulting in a smaller signed project
pipeline. In addition, Bulk has not acquired any
real estate in 2022.
Landbank with potential
Bulk Industrial Real Estates strategic landbank
contains more than 900 000 sqm of owned land,
as well as options for an additional 500 000 sqm of
land, all located in highly attractive logistics areas.
Throughout the year, Bulk has strengthened its
ability to effectively rezone and regulate land in the
existing land bank, as well as the ability to identify
and obtain new land areas for the land bank. Bulk
strives to maintain excellent communication and
cooperation with the local communities where Bulk
has activities.
Sustainable operations
All Bulk projects with a size above 5,000 sqm are
from 2021 BREEAM-NOR certified and equipped
with roof solar panels as part of our standard
offering. All larger new-builds are designed to meet
energy classification of A or B. Bulk has through
2022 increased the solar production capacity to
a total of 3,300 KW/p in 2022, contributing to a
total production of 1,5 GWh of renewable energy
through the year.
Sustainability is a key focus area for Bulk Industrial
Real Estate, impacting all aspects of decision
making. Bulk aims to minimize the environmental
impact when developing and managing properties.
Through planning, Bulk is reducing its
environmental impact through achieving the most
efficient utilization of existing plots. Planning
includes the performance of ecological surveys,
mapping historical landmarks, the impact on water
quality and more.
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Scope 1
Direct emissions from activities under
the organizations’ control, including fuel
combustion.
Bulk has a fully electric vehicle park, with
the exception of one vehicle on certified
HVO in Bulk Industrial Real Estate, which
is related to operations on one of the real
estate locations.
0.3 tCO2e
Scope 3
All other indirect emissions that occur in the company’s
value chain.
Scope 3 covers all parts of the value chain, upstream and
downstream, and constitutes the majority of emissions
for Bulk Industrial Real Estate. This scope includes several
sub-categories, of which the relevant ones for Bulk’s
emissions will be outlined below.
Scope 3 represents the majority of Bulks’ emissions and
tracking and reporting against this category of emissions
is critical for net zero progress. We BREEAM-NOR certify
our buildings and a life cycle assessment (LCA) is included
in the certification process. The assessment is based on
Environmental Product Declarations (EPDs0), which is
provided by our suppliers.
16.367 tC02e
The carbon footprint analysis is based on the international standard; A Corporate Accounting and Reporting Standard, developed by the Greenhouse Gas Protocol Initiative (GHG Protocol).
According to the GHG Protocol Corporate Standard, Bulk has defined the organizational boundary as operational control.
Scope 3 has 15 categories, Bulk reports on the essentials for our business
Refer our webpage bulkinfrastructure.com for our TCFD-report including more information on our emissions
1. (IEA (2022): “IEA EMISSIONS FACTORS 2022”, *“ELECTRICITY INFORMATION 2022”)
Category 1 Purchased goods and services
Embodied emissions from purchased goods and
services related to operation of our buildings
Category 2 Capital goods
Embodied emissions from materials, fuel combustion,
equipment and activities from subcontractors during
construction of Bulk’s industrial buildings
Category 5 Waste
Include waste generated both from construction and
operation of our real estate.
Category 6 Business travel
Employee travel for business-related affairs during the
reporting year
Category 8 Upstream leased assets
Operation of assets leased by the reporting company
(lessee) in the reporting year and not included in scope 1
and scope 2, mainly headquarters
Category 13 Downstream leased assets
Operation of assets owned by the reporting company
(lessor) and leased to other entities in the reporting year,
not included in scope 1 and scope 2 – reported by lessor
Scope 2
Indirect emissions from the production of
purchased electricity, heating or cooling.
According to the GHG protocol there are
two ways to report scope 2:
1. Market-based, include the impacts of
renewable energy procurement through
Guarantees of Origin. Bulk purchases
Guarantees of Origins from renewable
energy from where we are located.
2. Location-based, the physical approach
tracking emissions that are generated by
production of electricity locally where the
company’s operation is located. Emissions
are calculated based on average emission
factors
(1)
for each country where Bulk
operates.
Market-based 0 tCO2e
Location-based 0.3 tCO2e
92,5 %
2,0 %
5,6 %
Purchased goods and services
Capital goods
Waste
Business travel
Upstream leased assets
Downstream leased assets
Sandra Caffarena
Real Estate Manager Sales & Operations
Our first solar panels were installed in Q4 of 2021.
In just over a year with solar energy production on
five of our industrial buildings, we have produced 1.5
GWh of renewable energy - equivalent to the energy
consumption of 60 residential households
Bulk wood
Solar panels
Christoffer M. Ring-Larsen
Project Manager
Our standard module design consists
of fiber-reinforced concrete flooring,
steel structures and sandwich-panels.
With Bulk Wood, we replace the steel
structures with glued laminated
timber, also known as glulam. We also
consider the ecological aspects and
aim to improve them by using site
specific ecological species on the roof
and in the buildings surroundings.
Carbon emissions for Industrial Real Estate according to the Green House Gas Protocol
Our locations in the Nordics provide us with the advantage of renewable power. Renewable power constitutes nearly 100
per cent of the energy in Norway. As a result, Bulk’s emissions in scope 2 is very low. The majority of Bulk’s emission derive
from activities in our supply chain and is reflected in scope 3 emissions. Our scope 3 is already good compared to the
construction industry. The Bulk module is in the low end of scope 3 emissions, and together with our suppliers, we continue
to search for more sustainable materials for our buildings and solutions for our construction sites. With the scaling of our
solutions over the coming years, it will be our main focus to reduce the impact from scope 3.
100 %
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Bulk Data Centers
Providing the digital backbone of society
Data centers are necessary for society to function.
Without them, businesses would not be able to
sell their products and services, power stations
and electricity networks would not function, phone
systems and emergency services networks would
be silent and streaming services would be down.
The so-called cloud is on the ground, located in
large and anonymous high-security buildings.
With three large scale data centers located in
Oslo (Bulk Data Center OS-IX), Kristiansand
(Bulk Data Center N01) and Esbjerg (Bulk Data
Center DK01), Bulk provides for the data center
needs of public and private sectors across
Europe. The demand for data center capacity is
increasing, despite worldwide turbulence, and
data center solutions powered by renewable
energy are highly preferred.
In 2022, a number of new customers were
welcomed on to Bulk’s premises, both
hyperscalers, corporations and public entities.
Among customers that put their trust in Bulk in
2022 were one of the largest UK hedge funds
and one of Norway’s leading IT solutions company.
Esbjerg Municipality, where DK01 is located,
entered into a multi-year agreement with Bulk
Data Centers for secure, sustainable and flexible
Colocation of the municipality’s IT environment,
underlining the mutual local commitment that
Bulk is known for.
Bulk Data Centers also took full ownership of Bulk
Data Center OS-IX, after purchasing the remaining
50 per cent from Akershus Energi.
Ready for further growth
In 2022, Bulk Data Centers completed the
installation of a 125MVA sub-station at N01
campus, ensuring immediate access to large scale
100 per cent renewable energy with the highest
levels of resilience. Construction is
soon complete of a new 10MW data center at
the same location, supporting High Performance
Computing, enterprise, system integrators and
cloud providers.
The levelling of additional 160,000 sqm of zoned
land is well underway, and the first area has been
completed ready for an additional 40MW data
center. Bulk has also added 1.5MW of new white
space capacity at Bulk Data Center OS-IX. Further
plans for expansion will be executed in 2023.
Real-time energy consumption
The data center industry constitutes mission-
critical infrastructure, but is also power intensive.
The industry has a responsibility to ensure that
energy is used as efficiently as possible.
To cater for customers’ increased demand for
documented sustainable services, Bulk Data
Centers have launched Renewable Power
Matching. Customers will now be able to verify
that their data is powered exclusively by 100 per
cent renewable energy 24 hours a day, 7 days
a week. The 24/7 power matching service will
initially be available at Bulk’s OS-IX facility in Oslo,
with power being matched against the nearby
Bingsfoss hydropower station. OS-IX will be one of
very few data centers in Europe to offer renewable
power matching to its customers.
Bulk Data Centers delivers ultra-flexible, highly connected, and massively
scalable data center and colocation solutions. Powered by 100 per cent
carbon free energy and backed by in-house expertise in data center design,
engineering and operations.
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Scope 1
Direct emissions from activities under
the organizations’ control, including fuel
combustion.
The Data Center vehicles are fully electrical,
hence the only emissions in scope 1 is
from gensets on site. Due to the low risk of
power outage, the emissions solely arise
from monthly testing of gensets to ensure
satisfactory functionality.
116 tCO2e
Scope 3
All other indirect emissions that occur in the company’s
value chain.
Scope 3 covers all parts of the value chain, upstream and
downstream, and constitutes the majority of emissions for
Bulk Data Centers. This scope includes several sub-cate-
gories, of which the relevant ones for Bulk’s emissions will
be outlined below.
Scope 3 tracking and reporting against this category of
emissions is critical for net zero progress. We strive to
improve the input from our supply chain and want to move
from cost-based estimates to accurate numbers from our
suppliers based on life cycle assessments.
5.476 tC02e
Carbon emissions for Data Center according to the Green House Gas Protocol
Our locations in the Nordics provide us with the advantage of renewable power and a stable grid. Renewable
power constitutes nearly 100 per cent of the energy in Norway. As a result, Bulk’s emissions in scope 1 and 2
are very low. The majority of Bulk’s emission derive from activities in our supply chain and is reflected in
scope 3 emissions. Our scope 3 is on par with the rest of the construction industry, and with the scaling of
our solutions over the coming years, it will be our main focus to reduce the impact from scope 3.
The carbon footprint analysis is based on the international standard; A Corporate Accounting and Reporting Standard, developed by the Greenhouse Gas Protocol Initiative (GHG Protocol).
According to the GHG Protocol Corporate Standard, Bulk has defined the organizational boundary as operational control.
Scope 3 has 15 categories, Bulk reports on the essentials for our business
Refer our webpage bulkinfrastructure.com for our TCFD-report including more information on our emissions
1. (IEA (2022): “IEA EMISSIONS FACTORS 2022”, *“ELECTRICITY INFORMATION 2022”)
Category 2 Capital goods
Include embodied emissions, which is carbon emitted
during the manufacture and transport of building materials
and technical components building new capacity, as well
as fuel consumption related to the preparation of land
from subcontractors.
Category 5 Waste
Include waste generated both from construction and
operation of our datacentres.
Category 6 Business travel
Transportation of employees for business-related
activities during the reporting year
Category 8 Upstream leased assets
Operation of assets leased by the reporting company
(lessee) in the reporting year and not included in scope 1
and scope 2
Scope 2
Indirect emissions from the production
of purchased electricity, heating
or cooling.
According to the GHG protocol there are two
ways to report scope 2:
1. Market-based, include the impacts of
renewable energy procurement through
Guarantees of Origin. Bulk purchases
Guarantees of Origins from renewable
energy from where we are located.
2. Location-based, the physical approach
tracking emissions that are generated by
production of electricity locally where the
company’s operation is located. Emissions
are calculated based on average emission
factors
(1)
for each country where Bulk
operates.
Market-based 0 tCO2e
Location-based 329 tCO2e
92,5 %
2,0 %
5,6 %
24/7 Renewable Power Matching represents a
new level of transparency where the customers
can be certain of the origin of the electricity
they consume
Re-establishment of marshland
24/7 matching electricity
Marshlands are important natural carbon sinks, and
therefore a crucial step on our path towards achieving
net zero. At N01, we have re-established 15,000 square
meters of marshland, contributing to avoided emissions
of approximately 2,700 tons CO2
Hans Kristian Odland
Senior Project Manager
Tor Ribland
VP DC Operations
Capital goods
Waste
Business travel
Upstream leased assets
92,5 %
5,6 %
2,0 %
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20 21
Board of Directors Report 2022
- Bulk Infrastructure Group AS
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 significant ability to develop
industrial properties for a large and diversified portfolio
of customers. In 2022 we have completed more than 50
development projects since establishment, summing up to
more than 500,000 square meters of high quality, flexible
and energy efficient facilities. We also own a considerable
portfolio of yielding properties, and a vast plot bank, allow-
ing us to take part in value creation in all phases of real
estate development and ownership.
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 efficient and sustainable way. We operate
scalable facilities, we continue to add new sites to our port-
folio, 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 fiber
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 fiber infra-
structure with the purpose of enabling the Nordics for large
scale data processing. Our fiber infrastructure is modern
with high capacity including both subsea and terrestrial
systems. We offer dark fiber, 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 an infrastructure pro-
vider within fiber, being a partner rather than a competitor
to traditional carriers. Bulk has available thousands of km of
dark fiber, 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 fiber 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 polit-
ical 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.
2022 in short
Our financial results are a consolidation of different busi-
ness models within our three Business Areas. Some of
these business models represent financial results that can
vary substantially from one financial reporting period to an-
other despite limited variability in the underlying business.
The primary reason for such fluctuations 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 significant propor-
tion of hardware that is procured by Bulk and included in
a services delivery. Additionally, there may be a difference
between timing of cash flow and revenue recognition for
customer contracts within our Fiber Networks business in
IFRS reports, due to the business model of selling Indefea-
sible Rights of Use (IRU). Please also see note 1.
• Total revenues of NOK 276,1 million compared to
NOK 365.7 million last year.
• Industrial Real Estate: The Group acquired a plot
at Danebuåsen late 2021 with hand over in the first
quarter of 2022. In addition, the Group acquired the
remaining 50% of AE Bulk Co-Invest AS holding 25%
of Berger Terminal Holding II AS in the first quarter
2022. The Group further acquired the remaining 49% of
the shares in Bulk Vestby II AS from DSV in accordance
with the option agreement. Projects have been handed
over to Leman in Vestby, Kominox at Lindeberg, Lett-
butikk in Enebakk, Kjellmann Office at Lindeberg, and
DSV at Vestby during 2022. The Group handed over
the first stages of the construction project in Denmark
during Q4. The last stage of the project has been deliv-
ered Q1 2023. The Group signed the third stage of the
Namron building in September 2022. Multiple roof top
solar projects have been initiated, including agreements
with Lettbutikk, DSV and Kjellmann and operative solar
systems on PetXL and Leman. The investment prop-
erty portfolio saw a decrease in fair value in Q4 due to
increasing interest rates with negative impact on the
yield. However, vacancy is low and rent is increasing
with inflation, and there is still a strong demand for lo-
gistic buildings. Industrial Real Estate is well positioned
with several plots available to meet market demand
• Data Centers: New contracts and Letter of Intends are
signed on our data center sites during 2022. Installation
of 125MVA sub-station is completed at N01 Campus.
The installation ensures immediate access to large
scale 100% renewable energy with the highest levels of
resilience. During 2022, construction has begun on new
10MW data center at N01 Campus, supporting High
Performance Computing, enterprise, system integrators
and cloud providers. The levelling of additional 160,000
sqm of zoned land is well underway at N01 Cam-
pus, and the first area has been completed ready for
additional 40MW of data center capaicity. Further, new
1.5MW of white space capacity has been added
at OS-IX data center. The data center at DK01 Campus
has entered into a multi-year agreement with Esbjerg
Municipality for secure, sustainable and flexible Colo-
cation of the municipality’s IT environment. Regarding
sustainable initiatives, Bulk has signed agreements
with two businesses that will be able to re-use the heat
generated at Bulk Data Center N01, thus establishing
the first phase of a circular industry cluster.
• Fiber Networks: The Havsil Cable system, connecting
Kristiansand and Esbjerg is fully operational with live
traffic during 2022. The Havhingsten system connecting
the UK and Ireland into Esbjerg is also finalized during
the year. There are now active customers on all seg-
ments of the Inter City Ring. The two last telehouses
on the Inter-City Ring in Norway was completed in Q4,
bringing the total of telehouses to twelve on the Inter
City Ring in addition to three telehouses in Denmark.
The last branch of the Havfrue cable system was final-
ized in the end of 2022 and ready for service in Q1 2023.
A customer has exercised options for the cable system
on the Irish branch, of which the transaction is expected
to be completed during Q1 2023. The pre-study for
the terrestrial cable system of Leif Erikson is finalized
and the project continues to mature with the customer
and partner dialogues in 2023. Following the current
security situation in Europe, Bulk Fiber Networks has
increased its security activities concerning sub-sea and
terrestrial fiber cables in general.
• Group development: Group development: Bulk
Infrastructure and/or relevant subsidiaries are certified
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.
• Group financing: Bulk Infrastructure Group AS
completed a new senior unsecured green bond issue
of NOK 500 million, with maturity date 15 September
2026. An application will be made for the bonds to be
listed on Oslo Børs. The net proceeds from the bond
issue will be used in accordance with the green bond
framework. Under the framework, Bulk seeks to finance
or refinance green buildings, sustainable infrastructure,
and energy efficiency. Bulks framework is rated Medium
Green shading by Cicero
• The COVID-19 pandemic had minor influence on the
operations in 2022. The pandemic has not caused any
critical incidents or situations in our deliverables or
business continuity
• Following the current security situation in Europe,
Bulk has increased its security activities concerning sub-
sea and terrestrial fiber cables in general. The Group is
monitoring the energy crisis in Europe. The impact on
the Group accounts has not been material in 2022.
22 23
Bulk Infrastructure Group AS Annual Report 2022 Bulk Infrastructure Group AS Annual Report 2022
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 2022 signed three new lease agreements for existing
properties, in addition to new projects where construc-
tion will start in 2023. Bulk is also involved in zoning and
development of new industrial real estate locations, both
alone and in partnerships. Bulk Industrial Real Estates
strategic landbank contains more than 900 000 sqm of
owned land, as well as options for an additional 500 000
sqm of land, all located in highly attractive logistics areas.
Throughout the year, Bulk has strengthened its ability to
effectively rezone and regulate land in the existing land
bank, as well as the ability to identify and obtain new land
areas for the land bank. Bulk strives to maintain excellent
communication and cooperation with the local communi-
ties where Bulk has activities.
Data Centers - The underlying demand for data process-
ing and storage infrastructure is fueled by the global meg-
atrend of digitization. The Nordic market for data center
capacity is expected to grow significantly 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 Data Centers 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 2022 and additional plots
suitable for data center acquired in both Norway and Den-
mark. Data Centers has a number of expansion projects
across its data center sites in Norway. The construction of
a 10MW data center is ongoing at N01 Campus, and white
space capacity of 1.5 MW at OS-IX is added. To meet
demand for low cost and renewable powered data center
capacity, a further 160,000 meters of levelled land will
be complete at the N01 Campus, in readiness for 40MW
data center capacity. The combination 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 under-
lying recurring revenue growth across our asset portfolio
is positive with new Nordic and International customers
added during 2022.
Fiber networks - The strong growth in data processing
and storage drives the demand for new investments in
underlying fiber infrastructure, including both subsea and
terrestrial systems. Bulk is well positioned as a leading
provider of large capacity transport fiber, both going into
the Nordics and within the Nordics. Several of Bulk’s new
systems are completed and operational during 2022:
The Havfrue System, connecting the US and the Nordics
is fully operational between the US, Norway and Den-
mark. The branch connecting into Ireland, was finalized
in the end of 2022 and ready for service in Q1 2023.
The Havsil Cable system, connecting Kristiansand and
Esbjerg is operational with live traffic in 2022. The ca-
pacity of the Havsil System more than doubles the total
capacity existing over any other subsea system connect-
ing into Norway, providing almost “unlimited” capacity
for the years to come. The Norwegian Inter-City Ring is
fully completed and operational and the two last tele-
houses has come in place during Q4 2022. We continue
to explore opportunities for new fiber network develop-
ments being strategic enablers for the Nordic data center
market. The underlying recurring revenue growth across
our fiber networks portfolio is positive with new Nordic
and International customers added on our fiber systems
during 2022.
There should not be placed undue reliance on these
forward-looking statements as they reflect current views
about future events and are, by their nature, subject to
significant risks and uncertainties because they relate to
events and depend on circumstances that may occur in
the future.
Report on the annual accounts
Total income for The Group was NOK 276.1 million
compared to NOK 365.7 million last year. The decrease
of NOK 89.5 million mainly relates to no property sales in
2022 amounting to a variance of NOK 182.5, partly offset
by increased rental income and increase in revenue from
sales within Data Centers. NOK 145.4 million of total
income is generated from Industrial Real Estate in 2022,
compared to NOK 274.7 million last year. Data Centers
generated a total income of NOK 119.0 million in 2022,
compared to NOK 82.2 million in 2021. The increase
within Data Centers is due to the acquisition of previously
associated company, OS-IX Holding AS, as well as an
increase in general customer base. In the Fiber Networks
area, we gained an income of NOK 11.8 million com-
pared to NOK 7.0 million in 2021. The Group’s operating
loss was NOK 502.4 million in 2022 compared to a profit
of NOK 1,206.3 million last year, while the annual net
loss was NOK 442.5 million in 2022, a decrease from a
profit of NOK 927.9 million in 2021.
Industrial Real Estate contributed with a loss for the year
of NOK 330.8 million in 2022, compared to NOK 1,101.3
million last year. The decrease is mainly driven by the
negative fair value on the investment property portfolio
amounting to NOK 369.2 million, compared to a positive
fair value of NOK 1,352.8 million in 2021. The nega-
tive fair value in 2022 is mainly a result of demanding
economic times of rapidly increasing interest rates and
higher inflation, causing yielding properties and develop-
ment plots to decrease in value.
Total current assets were NOK 411.2 million as of
December 31, 2022 compared to NOK 870.0 million as of
December 31, 2021.
Total cash was NOK 224.5 million as of December 31, 2022
compared to NOK 694.8 million as of December 31, 2021.
Cashflow from operations were negative with NOK 65.8
million in 2022 compared to negative NOK 115.1 million in
2021. The increase is mainly related to a positive change
in trade and other payables. Cashflow from investments in
2022 is negative with NOK 1,644.8 million, of which NOK
808.3 million is related to purchase and improvement in
investment property and NOK 512.5 million is related to
purchase of fixed assets, mainly in the data center and
fiber segment. Cashflow from financing is positive with
NOK 1,240.2 million in 2022, mainly related to proceeds
from borrowings of NOK 1,406.1 million, partly offset by
finance cost of NOK 173.4 million.
The Group’s total liabilities amounted to NOK 4,477.9
million as of December 31, 2022, compared to NOK
3,866.5 million as of December 31, 2021. The increase
is mainly due to increased borrowings related to ongoing
construction projects and investment property, and issu-
ance of a new green bond. The short-term portion of bor-
rowings is NOK 739.8 million as of December 31, 2022,
an increase of NOK 599.1 million compared to last year.
NOK 685.9 million of the short-term portion of borrowings
is related to construction loans, of which NOK 263.4 mil-
lion is refinanced in Q1 2023. The remaining loans are in
the process of refinancing prior to maturity in the second
half year of 2023. The Group continuously monitors the
Group’s installments and expiration of the debt and pre-
pares plans to be able to meet its obligations.
Other financial and interest costs amounted to NOK
171.1 million in 2022 compared to NOK 81.5 million in
2021. The Group monitors its financial cost and is contin-
uously working on financial structure.
Total assets at the end of the year amounted to NOK
7,974.2 million compared to NOK 6,874.2 million last year.
The equity-to-assets ratio as of December 31, 2022 was
43.8 %, which is unchanged from December 31, 2021.
The Group’s financial position is strong.
Research and development
The Group has invested resources and know-how into
research and development during 2022. Our largest
research investment relates to standardized high-capac-
ity 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
benefit from the R&D project by being the fastest provid-
er 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 sufficient
liquidity to meet all its obligations, including the new in-
vestments 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
financial institutions, all with long-term repayment plans.
The Group is exposed to changes in NIBOR interest
rates and SWAP interest. The distribution of fixed and
floating interest rates was 13/87 by the end of the period.
Credit risk - The Group’s warehouse and distribution
properties are characterized by high standards, good
locations, long lease agreements and reliable tenants.
There were no material credit losses in 2022. The
Group’s tenants normally pay quarterly and in advance
and the lease agreements usually require an additional
form of collateral or security. Within Data Centers, the
portfolio is diversified, limiting the effect of credit risk
towards each single customer.
Currency Exchange risk – The Group is increasingly
exposed to both cost and revenue in different currencies
due to growth in international assets and customers.
Processes 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 7.7 years last
year to 8.3 years as of December 31, 2022 due to several
25
Bulk Infrastructure Group AS Annual Report 2022Bulk Infrastructure Group AS Annual Report 2022
24
new signed long-term agreements. The lease agreements
provide The Group with fixed 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 0.7 % as of December 31, 2022, compared to 1.8 %
as of December 31, 2021.
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 difficult 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 bet-
ter matching of capacity build-out and verified demand as
well as discipline in build-up of fixed cost in early stages
of new asset operations.
Climate-related risk
Bulk is exposed to climate-related risks and climate
change could have a range of potential impacts on
Bulk’s business. Through a climate analysis based on
recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD), we have identified
increasing temperatures and extreme weather events,
as key risks to our physical assets. In addition to the
physical risks, there are also increasing legislative
regulations at both the national and EU levels that
have an impact on our operations. The climate has
not had any material impact on the business in 2022.
Refer to our TCFD report 2022 on the Group´s
homepage, bulkinfrastructure.com, for more information.
Working environment and personnel
Bulk had a total of 81 employees at the end of year 2022.
In addition to permanent employees, over 20 consultants
and 50 subcontractors are performing operational ser-
vices 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 improve-
ments 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 responsibility for
every employee.
In total Bulk had four lost time injuries and one medical
treatment within our subcontractors’ personnel. One of
the incidents was critical caused long term sick leave,
but all injured personnel have recovered well and are
back to work.
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.
In November 2022 Bulk implemented a crisis manage-
ment tool, Rayvn, to handle the whole notification and
emergency response process.
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 within the absence
categories described above.
All employees are part of a Company’s insurance scheme
in the country they are employed in. The insurance
includes different treatments such as physiotherapy,
psychologist, and online access to consulting with a
doctor. In addition, Bulk offers an all-around annual
health assessment to all employees. All employees were
offered voluntary vaccination shots against the flu virus.
The sick leave amounted to 2,6% of the total work force
in 2022. The sick leave statistics are a combination of long-
and short-term leave. This is an increase from 1,9% in
2021. The increase in short-term sickness can be explained
by the reopening of society due to Corona. Staff returned to
the offices and the general infection rate went up during the
year, in addition to other flu symptoms.
The company established our first working environment
committee in 2022. The committee met quarterly during
the year and consisted of Safety delegates, Employee
representatives as well as representatives for Manage-
ment. Bulk also has two elected employee representa-
tives to submit requests or grievances on behalf of the
staff. The representatives had a quarterly meeting
with CEO and HR.
Bulk has an all year People Strategy. This entails focus
on Engagement, Development and Appreciation. One
of the key priorities in 2022 was to further develop the
people processes within the Company and standardize
policies and procedures. The company also launched an
initiative called Bulk Academy at the end of the year. The
academy is meant to promote internal knowledge sharing
between coworkers through presentations. Building on
both optional and mandatory training and strengthening
a learning culture.
The company introduced the Engagement & Satisfaction
system Winningtemp in late 2021. Winningtemp is based
on artificial intelligence in combination with international
studies on job engagement and satisfaction. The
employees receive a bi-weekly short questionnaire that
is linked to nine categories linked by research to the
topics. The survey is done anonymously. Winningtemp
has been active and collecting data during 2022 with
94% survey participation among the staff. 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 office or working from home. The
overall temperature for team spirit in 2022 was 7,9 and
commitment was 8 out of 10.
Bulk has established routines for notifications & deviation
reports. All employees of Bulk have the right and a duty
to notify, and we encourage employees to use the oppor-
tunity when needed. Guidelines for deviation reports are
listed in the company’s management system.
The Company has also an internal Hotline established on
an online notification channel, for employees that wants
to remain anonymous and / or if want an independent
party (KPMG) to receive their notice.
Gender equality and discrimination
Bulk is committed to equal career opportunities and work
continuously towards a diverse and gender balanced
workforce. The workforce consisted of 18% women and
82% men. The female percentage of Manager positions
where 4% and executive leader team had 33% women.
Bulk successfully increased their gender balance in
2021. The company unfortunately decreased the female
percentage in 2022 due to large scale recruting carried
out in a difficult employers market in 2022.
Bulk will continue recruitment of female professionals
and maintain a focus on the best suitable candidate for
each role. This also relates to orientation, age, nationali-
ty, and other types of discriminatory factors.
The Company is aware of the importance of equal
opportunities relating to promotions, performance,
development opportunities as well as compensation &
benefits. 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 sustain-
able 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 sound-
ly 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.
A key priority in 2022 was to assess climate risk in line
with the Task Force on Climate-related Financial Disclosure
(TCFD) framework. The results of this assessment can
be found in a separate report, refer TCFD report 2022
on the Group´s homepage, bulkinfrastructure.com.
Further, Bulk has focused on data collection for our
climate account across all business areas. The work is
a step in Bulk’s plan to reduce emissions and accom-
plish net zero by 2050 in line with the GHG reduction
targets as announced in 2021. It is the first year the
climate account is published. The climate account will be
integrated in the TCFD report 2022. The data collected
for the climate account will be utilized to determine our
most significant emissions and how we can implement
measures to reduce these in the coming years.
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 and 3-3c. Refer our homepage,
bulkinfrastructure.com, for information regarding the
Norwegian Transparency Act.
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 ob-
jective for Corporate Governance is accountability, trans-
parency, fairness, and simplicity with the goal of maximiz-
ing 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 justifiable and profitable manner
for the benefit of employees, shareholders, partners,
customers, and society.
Bulk is committed to operate in accordance with respon-
Peder Nærbø
Founder and Executive Chair
26 27
Bulk Infrastructure Group AS Annual Report 2022 Bulk Infrastructure Group AS Annual Report 2022
Oslo, March 23, 2023
The board of Bulk Infrastructure Group AS
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 defined 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 sys-
tems and systems for risk management in place prevents
the group from situations that can damage its reputation
or financial 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 implement-
ed an Integrated Management System that are proportion-
ate to and reflect 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 opportu-
nities, including those which should be treated within the
structure of its management system. Bulk is certified within
several ISO standards; ISO 9001,14001,22301 and 27001
and main focus in 2022 was to include the new businesses
in Denmark in the ISO certification.
The internal control system also addresses the organization
and execution of the company’s financial 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
defined and are reflected in the Company’s Code of Ethics.
The Code of Ethics includes ethical guidelines and guide-
lines 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 officers 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 officer’s liability insurance covers the entire
world for Companies registered in Norway. It does not
cover lawsuits filed 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 weakness-
es 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 com-
pany’s financial reporting. This cover the control environ-
ment 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 financial 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 man-
agement focus on frequent and relevant reporting of both
operational and financial matters to the board of directors,
where the purpose is to ensure that the board of directors
has sufficient information for decision-making and is able to
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 and act in
accordance with the Norwegian Transparency act.
Bulk has in 2022 follow up required activities within
Human rights through the rollout of the revised Code
of Conduct to employees, suppliers and partners.
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
Instead of giving Christmas gift to employees Bulk donated
an equal amount to Blue Cross Norway which is a major
Norwegian volunteer organization working in the field of
alcohol and drug abuse.
Supporting the community
Our company may initiate and support community
investment and educational programs. It can provide
support to nonprofit organizations or movements to
promote cultural and economic development of global
and local communities.
Bulk engaged in local initiatives like partnering with the
Sustainability Festival in Kristiansand – and sponsor
Sustainathon for students, Global Goals World Cup and
Sustainable Conference. Bulk also collaborated with local
university giving guest lectures and providing cases for
Master theses and participate in local research projects –
like Norce regarding hydrogen distribution and storage.
Subsequent events
The Board of Bulk Infrastructure Holding AS, the parent
company of Bulk Infrastructure Group AS, has called on
NOK 500 million in equity commitment from one of the
investors in line with an agreement established in 2020.
The transaction is expected to be finalized in Q1 2023.
In December 2022 a customer exercised an option to
aquire fiber on the Havfrue cable system. The fiber is
classified as assets held for sale as of yearend. The
transaction was completed during Q1 2023.
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
210,653,146 will be transferred as follows;
Other equity
-210,653,146
Total brought forward -210,653,146
32
Profit and loss
34
Consolidated balance sheet
36
Change in equity
37
Cashflow statement
38
Notes to the consolidated financial statements
Bulk Infrastructure Group AS
Consolidated financial
statements 2022
29
Bulk Infrastructure Group AS Annual Report 2022
28
Bulk Infrastructure Group AS Annual Report 2022
Bulk Infrastructure Group AS Annual Report 2022 Bulk Infrastructure Group AS Annual Report 2022
30 31
Consolidated financial
statement 2022
Presentations
1 Consolidated statement of profit and loss and other comprehensive income
2 Consolidated balance sheet
3 Consolidated statement of changes in equity
4 Cashflow statements- consolidated
Notes to the consolidated accounts for 2022
1 Corporate information
2 Accounting principles
3 Accounting estimates and significant judgements
4 Segment information
5 Rental income
6 Investment property
7 Other operating expenses
8 Employee benefit expense
9 Share-based payments
10 Joint venture and associated companies
11 Business combinations and acquisitions
12 Financial income and costs
13 Income tax and deferred tax
14 Goodwill
15 Intangible assets
16 Property, plant & equipment
17 Investments in subsidiaries, joint ventures and associated companies
18 Financial assets and liabilities
19 Derivative financial instruments
20 Options, contingent assets and contingent liabilities
21 Leases - group as a lessee (IFRS 16 disclosure)
22 Inventories
23 Trade and other receivables
24 Cash and cash equivalents
25 Paid in equity and shareholders
26 Financial risk management
27 Capital structure and capital management
28 Interest-bearing debt and bond loan
29 Reconciliation of net debt
30 Accruals and prepayments from customers
31 Subsequent events after the reporting period
Bulk Infrastructure Group AS Annual Report 2022 Bulk Infrastructure Group AS Annual Report 2022
32 33
Consolidated statement of profit and loss
For the year ended 31 December 2022
Consolidated statement of profit and loss
For the year ended 31 December 2022
(Figures in NOK ‘000) Notes 2022 2021
Rental income 4,5 177,073 87,909
Revenue property sales 4,6 -8,269 182,537
Revenue from sales 4 71,310 59,979
Other revenue 4 36,015 35,248
Total revenue and other income 4,5 276,129 365,673
Property-related expenses 4 21,233 12,269
Cost of property sales 4,6 - 173,883
Cost of sales 4 67,746 61,291
Other cost 7,8,9 320,386 264,751
Total expenses 409,365 512,195
Operating profit before fair value adjustments on investment properties -133,237 -146,522
Fair value adjustments on investment properties 6 -369,200 1,352,819
Operating profit -502,437 1,206,297
Share of profit/loss(-) of investments accounted for using the equity method 10 -42,990 77,267
Remeasurement gain of previous held equity investments 11 90,056 -
Finance income 12 102,631 19,243
Finance costs 12 233,049 112,812
Fair value adjustments on derivatives 12 27,067 4,901
Net financial items -56,286 -11,402
Profit before income tax -558,722 1,194,895
Income tax expense 13 -116,176 267,009
Profit for the year -442,546 927,885
(Figures in NOK ‘000) Notes 2022 2021
Profit for the period -442,546 927,885
Other comprehensive income
Items that may be reclassified to profit and loss
Exchange differences on translation on foreign operations 4 18,417 -6,417
Other comprehensive income for the year, net of tax 18,417 -6,417
Total comprehensive income -424,129 921,468
Attributable to:
Shareholders in the parent Company -406,087 759,783
Non-controlling interests -18,042 161,685
Earnings per share basic and diluted (NOK) 25 -1.33 2.87
Oslo, March 23, 2023
The board of Bulk Infrastructure Group AS
Peder Nærbø
Founder and Executive Chair
Bulk Infrastructure Group AS Annual Report 2022 Bulk Infrastructure Group AS Annual Report 2022
34 35
Consolidated balance sheet Consolidated balance sheet
(Figures in NOK ‘000) Notes 2022 2021
Assets
Intangible fixed assets
Goodwill 14,15 2,070 -
Other intangible assets 15 13,682 1,445
Total intangible assets 15,752 1,445
Other non-current assets
Investment property 4,6 4,628,451 4,184,248
Property, plant & equipment 16 2,338,985 1,328,690
Investment in Associated company 10,11,17 136,767 289,212
Receivable from related party 18 1,190 10,497
Derivative financial instruments 18,19 23,992 1,139
Other receivables 18,20 21,565 12,616
Investment in shares 18 1,249 1,249
Right-of-use assets 21 250,790 175,101
Total other non-current assets 7,402,989 6,002,752
Total non-current assets 7,418,741 6,004,197
Current assets
Inventories 22 8,463 5,484
Property under development - inventory 6 - -
Receivable from related party 18 441 15,093
Trade and other receivables 18,23 177,850 154,564
Cash and cash equivalents 18,24 224,459 694,826
Total current assets 411,213 869,967
Assets classified as held for sale 16 144,248 -
Total assets 7,974,203 6,874,164
(Figures in NOK ‘000) Notes 2022 2021
Equity and liabilities
Paid in equity
Ordinary shares 3,264 2,731
Share premium 2,918,911 1,856,531
Total paid in equity 25,31 2,922,175 1,859,261
Retained earnings
Retained earnings 524,045 922,399
Total retained earnings 524,045 922,399
Non-controlling interests 50,079 225,975
Total equity 25,31 3,496,299 3,007,636
Non-current liabilities
Bond loan 18,26,28,29 1,463,902 969,350
Borrowings 18,26,27,28,29 1,694,089 1,081,665
Derivative financial instruments 18,19 4,274 9,540
Lease liabilities 21 60,907 31,885
Other long-term liabilities 18,26,30 61,486 66,621
Deferred tax liabilities 13 215,580 290,451
Total non-current liabilities 3,500,239 2,449,513
Current liabilities
Trade payables 18 77,532 74,927
Short-term portion of borrowings 18,26,27,28 739,764 140,618
Short-term portion of derivatives 18,19 455 1,279
Short-term portion of lease liabilities 21 14,580 8,144
Non-registered capital increase 25 - 400,000
Debt to related party 18 - 662,768
Other payables 18,30 145,334 129,278
Total current liabilities 977,665 1,417,015
Total liabilities 4,477,904 3,866,528
Total equity and liabilities 7,974,203 6,874,164
Bulk Infrastructure Group AS Annual Report 2022 Bulk Infrastructure Group AS Annual Report 2022
36 37
Consolidated statement of changes in equity
(Figures in NOK ‘000) Note Paid in equity Retained earnings
Share
capital
Share
premium
Exchange
differences
on translation
on foreign
operations
Retained
earnings
Non-
controlling
interests
Total equity
01.01.2021 2,630 1,656,631 9,687 188,948 - 1,857,897
Profit for the period 766,200 161,685 927,885
Other comprehensive income - currency -6,417 -6,417
Share issue 25 100 199,900 200,000
Share-based payments* 9 8,947 8,947
Sale of shares to minority** -49,682 64,290 14,608
Other changes 4,716 4,716
31.12.2021 2,731 1,856,531 3,270 919,129 225,975 3,007,636
01.01.2022 2,731 1,856,531 3,270 919,129 225,975 3,007,636
Profit for the period -424,504 -18,042 -442,546
Other comprehensive income - currency 18,417 18,417
Share issue 25 533 1,062,380 1,062,913
Share-based payments 9 8,947 8,947
Adjustment of minority share -2,680 2,680 -
Transaction with non-controlling interest -160,533 -160,533
Other changes 1,465 1,465
31.12.2022 3,264 2,918,911 21,687 502,358 50,079 3,496,299
*Share-based payments are related to the assessement of mangement incentive program as outlined in note 9.
The assessement resulted in an effect in the comparative figures.
**The amounts have been altered to reflect the correct allocation of equity between majority and minority upon establishement of minority
Cashflow statement - consolidated
(Figures in NOK ‘000) Note 2022 2021
Cash flow from operations
Profit before income taxes -558,722 1,194,895
Adjust for:
Depreciation and impairment 15,16 77,769 53,097
Fair value adj. on investment properties 6 369,200 -1,352,819
Share of profit/loss(-) of investments accounted for using the
equity method 9,10 42,990 -77,267
Remeasurement gain of previous held equity investments 11 -90,056 -
Finance income 12 -102,631 -19,243
Finance costs 12 233,049 112,812
Fair value change derivatives 12 -27,067 -4,901
Cashflow before change in working capital -55,468 -93,425
Change in working capital
Trade and other receivables 18 -69,973 -59,959
Trade and other payables 18 59,593 -24,466
Property under development - inventory 6 - 62,759
Net cash flow from operations (A) -65,847 -115,091
Cash flow from investments
Purchase and improvements of investments property 6 -808,267 -1,093,011
Sale of real estate infrastructure 6 29,647 -
Sale of fiber infrastructure 16 - 206,074
Dividend received 10 2,275 650
Purchase of shares in associated companies 11 -195,374 -761
Purchase of shares in subsidiaries -160,533 -
Purchase of fixed assets 15,16 -512,517 -321,275
Net cash flow from investments (B) -1,644,768 -1,208,324
Cash flow from financing
Sale of shares in group companies - 62,493
Finance cost paid including interest paid on derivatives 12 -173,362 -94,859
Interest received 12 10,881 1,051
Proceeds from Borrowings 26,28,29 1,406,121 601,544
Change in other long-term liabilities 18,26 -5,135 -14,366
Change in receivable related party 18 3,169 123,329
Change in payable related party 18 -662,768 662,768
Principal paid on lease liabilities 21 -7,585 -4,163
Interest paid on lease liabilities 21 -2,933 -2,064
Share issue 25 1,062,913 200,000
Non-registered share issue -400,000 400,000
Share-based payments 9 8,947 8,947
Net cash flow from financing (C) 1,240,248 1,944,679
Net change in cash and cash equivalents (A+B+C) -470,367 621,265
Cash and cash equivalents at the beginning of the period 694,826 73,561
Cash and cash equivalents at the end of the period 224,459 694,826
Restricted funds 24 4,799 4,494
Bulk Infrastructure Group AS Annual Report 2022 Bulk Infrastructure Group AS Annual Report 2022
38 39
• Investment properties are recognized at their fair value and
• Financial derivatives are recognized at their fair value over the
• Investment in shares are recognized at fair value over profit
• The consolidated accounts have been prepared with consis-
• The corresponding figures have been prepared on the basis of
• Joint operations: In joint operations, two or more organizations
• Joint ventures: Joint ventures are accounted for using the
Bulk Infrastructure Group AS Annual Report 2022 Bulk Infrastructure Group AS Annual Report 2022
40 41
• the lease term (using a revised discount rate)
• the assessment of a purchase option (using a revised
• the amounts expected to be payable under residual value guar-
• future lease payments resulting from a change in an index or a
• the lease transfers ownership of the asset to the lessee by the
• the lessee has the option to purchase the asset at a price which
• the lease term is for the major part of the economic life of the
• at the inception of the lease, the present value of the minimum
• the leased assets are of a specialized nature such that only the
• The leases transfer substantially all the risks and rewards
• The lease terms are for the major part of the economic life of the
Bulk Infrastructure Group AS Annual Report 2022 Bulk Infrastructure Group AS Annual Report 2022
42 43
• the customer simultaneously receives and consumes the benefits
• the entity’s performance creates or enhances an asset (for
• the entity’s performance does not create an asset with an
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Note 3
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Telehousing in Denmark
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Bulk Infrastructure Group AS
Financial statement 2022
83
Bulk Infrastructure Group AS Annual Report 2022Bulk Infrastructure Group AS Annual Report 2022
82
84
Income statement
86
Balance sheet
88
Cash flow statement
90
Notes to financial statement
98
Auditor’s report
Bulk Infrastructure Group AS Annual Report 2022 Bulk Infrastructure Group AS Annual Report 2022
84 85
Income statement
(NOK ‘000) Note 2022 2021
Operating income and operating expenses
Sales revenue 1 69,691 60,626
Rental income 1,565 142
Other income 1 2,861 1,850
Total income 74,117 62,618
Raw materials and consumables used 20 15
Employee benefits expense 2 55,994 52,971
Depreciation of tangible and intanglible fixed assets 3 3,203 2,917
Impairement of tangible and intangible assets 3 570 -
Other expenses 1,2 24,141 15,393
Total expenses 83,927 71,296
Operating profit/loss -9,810 -8,678
Financial income and expenses
Income from associated companies 0 4,645
Interest income from group companies 4 135,362 33,688
Other interest income 52 40
Other financial income 20 1
Writ-down of other financial fixed assets 5 218,396 -
Interest expense to group companies 4 30,132 1,607
Other interest expenses 6 79,202 51,137
Other financial expenses 3,975 3,361
Net financial items -196,272 -17,732
Result before tax -206,082 -26,410
Tax expense 7 4,571 -4,619
Result for the year -210,653 -21,791
Allocation of result for the year
Other equity 8 -210,653 -21,791
Total brought forward -210,653 -21,791
Oslo, March 23, 2023
The board of Bulk Infrastructure Group AS
Peder Nærbø
Founder and Executive Chair
Bulk Infrastructure Group AS Annual Report 2022 Bulk Infrastructure Group AS Annual Report 2022
86 87
Balance sheet Balance sheet
(NOK ‘000) Note 2022 2021
Equity and liabilities
Equity
Paid in equity
Share capital 8, 11 3,264 2,731
Share premium reserve 8 2,918,911 1,856,531
Non-registered share capital increase - 400,000
Total paid-up equity 2,922,175 2,259,261
Retained earnings
Other equity 8 -87,665 114,041
Total retained earnings -87,665 114,041
Total equity 2,834,510 2,373,303
Liabilities
Non-current liabilities
Provisions
Other provisions 49,416 -
Total provisions 49,416 -
Other non-current liabilities
Bonds 6 1,463,902 969,350
Liabilities to financial institutions 4 3,200 3,794
Total non-current liabilities 1,467,102 973,144
Current liabilities
Trade payables 7,967 4,951
Public duties payable 2,424 4,131
Other current liabilities 6 34,923 25,809
Total current liabilities 45,314 34,892
Total liabilities 1,561,833 1,008,036
Total equity and liabilities 4,396,342 3,381,339
(NOK ‘000) Note 2022 2021
Assets
Non-current assets
Intangible assets
Licences, patents etc. 3 186 515
Deferred tax assets 7 35,102 39,673
Total intangible assets 35,287 40,188
Property, plant and equipment
Land, buildings and other real estate 3 9,154 10,290
Equipment, fixtures and fittings and other movables 3, 9 1,549 3,322
Total property, plant and equipment 10,702 13,612
Non-current financial assets
Investments in subsidiaries 1, 5, 9 1,979,155 2,197,551
Loan to group companies 4 28,239 101
Investments in associated companies - 13,285
Investments in shares and other securities 2,672 -
Other long-term receivables 2 2,803 2,788
Total non-current financial assets 2,012,869 2,213,726
Total non-current assets 2,058,858 2,267,526
Current assets
Receivables
Accounts receivables 17 -
Other short-term receivables 4,390 3,462
Receivables from group companies 4 2,296,414 565,398
Total receivables 2,300,821 568,861
Bank deposits, cash and cash equivalents
Bank deposits, cash and cash equivalents 10 36,663 544,952
Total bank deposits, cash and cash equivalents 36,663 544,952
Total current assets 2,337,484 1,113,813
Total assets 4,396,342 3,381,339
Bulk Infrastructure Group AS Annual Report 2022 Bulk Infrastructure Group AS Annual Report 2022
88 89
Indirect cash flow
(NOK ‘000) Note 2022 2021
Cash flows from operating activities
Profit/loss before tax -206,082 -26,410
Loss/gain on the sale of fixed assets 3 - -9
Ordinary depreciation 3 3,203 2,917
Impairment of fixed assets 570 -
Impairment of Investments 5 218,396 -
Change in accounts receivable -17 12
Change in accounts payable 3,016 3,187
Items classified as investment or financing activities - -4,645
Change in other accrual items 6,480 -11,607
Net cash flows from operating activities 25,566 -36,556
Cash flows from investment activities
Proceeds from the sale of fixed assets 3 50 2,653
Payments to buy tangible assets 3 -583 -2,547
Dividend received - 650
Proceeds from sale of shares and participations in other com 5 99,201 -
Payments to buy shares and participations in other companie 5 -36,500 -
Payments to buy other investments 6 -2,672 -
Net cash flows from investment activities 59,496 756
Cash flows from financing activities
Proceeds from the issuance of new long-term liabilities 6 493,958 -
Repayment of long-term liabilities 9 - 137,758
Net change in accrued items related to group cash pool 9 -1,731,016 -529,372
Proceeds from equity 8 671,860 608,947
Change in receivable related party 4 -28,153 611,324
Proceeds from Group contributions - 3,610
Net cash flows from financing activities -593,351 556,751
Net change in cash and cash equivalents -508,289 520,951
Cash and cash equivalents at the start of the period 544,952 24,001
Cash and cash equivalents at the end of the period 36,663 544,952
Bulk Infrastructure Group AS Annual Report 2022 Bulk Infrastructure Group AS Annual Report 2022
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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 2022, fees for accounting, administration and project management of TNOK 69,691 have been recognized as income. In addition
TNOK 13,817 has been allocated as share of Group costs (recognized as cost reduction in Bulk Infrastructure Group AS).
Note 2
Personnel expenses, number of employees, remuneration, loan to employees
(Figures in NOK ´000)
Payroll,expenses 2022 2021
Salaries / wages 49,075 46,717
Social security fees 5,577 4,782
Pension expenses 932 594
Other remuneration 1,779 1,458
Allocated salaries to other group companies -1,369 -580
Total 55,994 52,971
Average number of employees during the financial year 22 21
(Figures in NOK ´000)
Salaries and remunerations to executives* Board chairman
Salaries and bonuses 4,300
Other remunerations 12
Total 4,313
*The CEO and additional members of the board of Bulk Infrastructure Holding AS (the parent company) recieves salaries and remunera-
tions from Bulk Infrastructure Group. The amounts are stated in the financial statement of Bulk Infrastructure Holding AS.
Loan to employees
Other employees have loans in the company totalling TNOK 2,803. These loans are repaid within three years (due in 2025). The interest
rate corresponds to the tax-free interest rate determined by the authorities. All loans are secured by liens in real estate.
OTP (Statutory 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 2022 amounts to TNOK 2,678,- excl.VAT.
Statutory audit fee
Tax advisory 1,822
Assurance services -
Other assistance 856
Total audit fees 2,678
Bulk Infrastructure Group AS Annual Report 2022 Bulk Infrastructure Group AS Annual Report 2022
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Note 3
Fixed assets
(NOK ‘000) Land
Buildings/
adjustments
rented buildings
Moveables and
machines
R&D and
software Total
Purchase cost 01.01 5,126 9,727 13,261 1,895 30,009
Additions - 533 51 - 584
Disposals -50 - - - -50
Purchase cost 31.12 5,076 10,260 13,312 1,895 30,543
Acc. depr. 31.12 - 6,182 11,763 1,709 19,655
Book value 31.12 5,076 4,078 1,549 186 10,888
Depr. this year - 1,619 1,824 330 3,773
Not depreciated 10-15 years,
linear
3-5 years,
linear
5 years, linear,
not depreciated
Note 4
Debtors, liabilities, pledged assets and guarantees etc.
Long-term receivables with minimum maturity of 1 year
Receivables due later than 1 year amounts to TNOK 28,239.
Long-term debt with minimum maturity of 5 years
Bulk Infrastructure Group AS does not have any debt with minimum maturity of 5 years.
(Figures in NOK ´000)
Balances with group companies 2022 2021
Long-term claims on group companies 28,239 101
Accounts receivable from group companies 27,052 36,026
Claims on group companies / group contributions 2,269,362 529,372
Short-term debt to group companies -
5
Total 2,324,653 565,505
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 2,269,362 are claims regarding the cash pool.
Note 5
Investments in subsidiaries
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 % 764,682 218,396 546,285
Bulk Powered Land AS 100 % - - -
Sum 2,197,551 218,396 1,979,155
The companies are based in Oslo, Norway.
Company
(NOK ‘000) Book value P/L for 2022 (100 %) Equity pr. 31.12 (100 %)
Bulk Industrial Real Estate AS 499,478 -59,948 470,196
Bulk Data Centers AS 933,392 -54,540 706,391
Bulk Fiber Networks AS 546,285 -89,297 577,693
Bulk Powered Land AS - -84 -602
Sum 1,979,155 -203,869 1,753,678
Note 6
Bond loan
Bulk Infrastructure Group AS AS issued a 5 year NOK 500 million senior unsecured FRN bond 15 October 2019. Bulk Infra-
structure Group AS further performed a tap issue of an additional NOK 500 million on the unsecured bond on 9 September
2020. Bulk Infrastructure Group AS issued a new senior unsecured green bond of NOK 500 million 9 September 2022.
An application will be made for the bond to be listed on Oslo Børs. The net proceeds from the bond will be utilized in
accordance with the green bond framework.
Spesification Bond 2019/2020 Bond 2022
ISIN NO001 10865876 NO0012701269
Maurity date 15.10.2024 15.09.2026
Amount NOK 1,000,000,000 NOK 500.000.000
Coupon Nibor 3 m + 4,5% FRN Nibor 3m + 6,5% FRN
Coupon type FRN FRN
Coupon Freqency Quarterly Quarterly
Trustee Nordic Trustee AS Nordic Trustee AS
Financial Covenants Equity ratio > 35% Equity ratio > 35%
Security Unsecured Unsecured
Listed 15 September, 2020 Not listed as of 31.12.22
Bulk Infrastructure Group AS Annual Report 2022 Bulk Infrastructure Group AS Annual Report 2022
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Note 7
Ta x
(NOK ‘000) 2022 2021
This year’s tax expense
Payable tax
- -
Changes in deferred tax assets
4,571 -4,619
Tax expense on ordinary profit/loss
4,571 -4,619
Taxable income:
Ordinary result before tax
-206,082 -26,410
Permanent differences
226,858 5,413
Changes in temporary differences
2,875 6,964
Allocation of loss to be brought forward
-23,651 -
Taxable income
- -14,033
Payable tax in the balance:
Payable tax on this year’s result
- -
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, specified on type of temporary differences
Note 8
Equity
Note 9
Liabilities to credit institutions
(NOK ‘000)
Share
capital
Share
premium
reserve
Non-registered
capital increase
Other paid
in capital
Retained
earnings Total equity
Equity 01.01 2,731 1,856,531 400,000 8,947
114,041 2,373,303
Share capital increase 533 1,062,380
1,062,913
Non-registered share capital increase -400,000
-400,000
Other adjustments 8,947
8,947
Annual net profit/loss
-210,653 -210,653
Equity 31.12 3,264 2,918,911 - 17,893
-105,558 2,834,510
Other adjustments of 8,947 consist of effects from Share-Based Payments for Group Management employed in Bulk Infrastructure
Group AS, covered by Bulk Infrastructure Holding AS and recognised as equity in Bulk Infrastructure Group AS. The 2021 Financial
statement is also adjusted to recognize an effect of 8,947 as increased Other paid in capital, a total effect of 17,893 as of 31.12.22.
(NOK ‘000) 2022 2021
Liabilities secured by collateral:
Debt to credit institutions 3,200 3,794
Book value of collateral:
Shares in subsidiaries 1,979,155 2,197,551
Cars 1,237 2,794
Total book value of collateral 1,980,392 2,200,345
(NOK ‘000) 2022 2021 Difference
Tangible assets -2,992 -892 2,100
Allocations and more -11,459 -10,684 775
Total -14,452 -11,576 2,875
Accumulated loss to be brought forward -145,103 -168,754 -23,651
Basis for deferred tax assets -159,554 -180,330 -20,776
Deferred tax assets (22 %) -35,102 -39,673 -4,571
Bulk Infrastructure Group AS Annual Report 2022 Bulk Infrastructure Group AS Annual Report 2022
96 97
Note 10
Restricted funds
Funds of TNOK 1,680 restricted to employees taxes are included in the cash-post in the balance sheet.
(NOK ‘000) Share capital Number Nominal value Book value
Ordinary shares 326,350,306 0,0100 3,264
Shareholders Country Number of shares Share of capital %
Bulk Infrastructure Holding AS Norway 326,350,306 100 %
Board Chairman, Peder Nærbø, has an indirect ownership of 52.66 % in Bulk Infrastructure Group AS
Note 11
Share capital and shareholder information
Bulk Infrastructure Group AS Annual Report 2022 Bulk Infrastructure Group AS Annual Report 2022
98 99
The Board of Directors have today treated and approved
the annual report and financial statements for Bulk Infra-
structure Group AS (the parent company) and the Group,
the consolidated accounts, as of December 31, 2022. The
consolidated financial 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, 2022. The financial statements for the
parent company are prepared in accordance with relevant
Norwegian laws and generally accepted accounting prin-
ciples in Norway as of December 31, 2022.
The annual report for the Group and the parent company
is in compliance with the Accounting Act.
To the best of our knowledge, we confirm that;
• the 2022 financial statements for the Group and the
parent company are prepared in accordance with
applicable accounting standards
• the provided information in the financial statements
gives a true and fair view of the Group and the parent
company’s assets, liabilities, financial position and
results of operations as of December 31, 2022
• 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 23, 2023
The board of Bulk Infrastructure Group AS
Bulk Infrastructure Group AS Annual Report 2022 Bulk Infrastructure Group AS Annual Report 2022
100 101
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To the General Meeting of Bulk Infrastructure Group AS
INDEPENDENT AUDITOR’S REPORT
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Bulk Infrastructure Group AS, which comprise:
• The financial statements of the parent company Bulk Infrastructure Group AS (the Company), which comprise
the balance sheet as at 31 December 2022, the income statement and cash flow statement for the year then
ended, and notes to the financial statements, including a summary of significant accounting policies, and
• The consolidated financial statements of Bulk Infrastructure Group AS and its subsidiaries (the Group), which
comprise the balance sheet as at 31 December 2022, the income statement, statement of changes in equity and
statement of 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 financial statements give a true and fair view of the financial position of the Company as at 31 December
2022, 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, and
• the consolidated financial statements give a true and fair view of the financial position of the Group as at 31
December 2022, 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 relevant laws and
regulations in Norway and the 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 the Company for 1 year from the election by the general meeting of the shareholders
on 23.09.2022 for the accounting year 2022.
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Bulk Infrastructure Group AS
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.
Valuation of investment property
Key audit matter
How the matter was addressed in the audit
Investment property represents a substantial portion of
the group’s total assets. Investment property is
recognised at fair value
. Fair value is estimated by
management with assistance from
third party valuers.
The fair value is based on assumptions and
estimates as
well as property specific information
like future leasing
payments, vacancies, and discount rate.
These
assumptions and estimates require significant judgment
and therefore valuation of investment property is a key
audit matter. We refer to no
te 3 “Critical accounting
estimates and significant judgments” for further
information.
The Group has established internal control to ensure
relevant property information is included in the external
valuations.
We have assessed the design and
implementatio
n of the control.
For a sample of the investment properties, we reconciled
the property information regarding annual rent and
square meters in the third party valuers’ report to the
Group`s own records.
We met with the third party valuers’ and discussed and
challenged thei
r judgements used in the valuation of
investment properties, particularly
market rent, yield and
discount rate.
We assessed the third party
valuers’ qualifications and
expertise and reviewed their terms of engagement in
order to determine whether there were any matters that
might have affected their objectivity. We assessed the
valuation methods used against generally accepted
valuation stand
ards and practices.
In carrying out the procedures related to valuation of
investment property, we used our internal valuation
specialists.
We assessed whether the disclosures in note 6 regarding
valuation of investment properties was adequate.
Other Information
The Board of Directors and the Managing Director (management) are responsible for the information in the Board of
Directors’ report and the other information accompanying the financial statements. The other information comprises
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 information in the Board of Directors’ report nor the other
information accompanying the financial statements.
In connection with our audit of the financial statements, our responsibility is to read the Board of Directors’ report
and the other information accompanying the financial statements. The purpose is to consider if there is material
inconsistency between the Board of Directors’ report and the other information accompanying the financial
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Bulk Infrastructure Group AS
statements and the financial statements or our knowledge obtained in the audit, or whether the Board of Directors’
report and the other information accompanying the financial statements otherwise appear to be materially
misstated. We are required to report if there is a material misstatement in the Board of Directors’ report or the
other information accompanying the financial statements. We have nothing to report in this regard.
Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors’ report
• is consistent with the financial statements and
• contains the information required by applicable statutory requirements.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation of financial statements that give a true and fair view in accordance
with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway, and for
the preparation and true and fair view of the consolidated 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 and the Group’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 consolidated 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 aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism
throughout the audit. We also:
• identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error.
We design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Company's and the Group's internal control.
• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
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• conclude on the appropriateness of management’s use of the going concern basis of accounting, and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company and the Group's ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures
in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future events or
conditions may cause the Company and the Group to cease to continue as a going concern.
• evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events in a manner that
achieves a true and fair view.
• obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the consolidated financial statements. We are responsible
for the direction, supervision and performance of the group audit. We remain solely responsible for our audit
opinion.
We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during
our audit.
From the matters communicated with the Board of Directors, we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on Other Legal and Regulatory Requirements
Report on Compliance with Requirement on European Single Electronic Format (ESEF)
Opinion
As part of the audit of the financial statements of Bulk Infrastructure Group AS, we have performed an assurance
engagement to obtain reasonable assurance about whether the financial statements included in the annual report,
with the file name “Bulk Infrastructure Group AS Annual Report 2022.zip”, have been prepared, in all material
respects, in compliance with the requirements of the Commission Delegated Regulation (EU) 2019/815 on the
European Single Electronic Format (ESEF Regulation) and regulation pursuant to Section 5-5 of the Norwegian
Securities Trading Act, which includes requirements related to the preparation of the annual report in XHTML
format, and iXBRL tagging of the consolidated financial statements.
In our opinion, the financial statements, included in the annual report, have been prepared, in all material respects,
in compliance with the ESEF regulation.
Management’s Responsibilities
Management is responsible for the preparation of the annual report in compliance with the ESEF regulation. This
responsibility comprises an adequate process and such internal control as management determines is necessary.
Bulk Infrastructure Group AS Annual Report 2022 Bulk Infrastructure Group AS Annual Report 2022
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Auditor’s Responsibilities
Our responsibility, based on audit evidence obtained, is to express an opinion on whether, in all material respects,
the financial statements included in the annual report have been prepared in compliance with ESEF. We conduct our
work in compliance with the International Standard for Assurance Engagements (ISAE) 3000 – “Assurance
engagements other than audits or reviews of historical financial information”. The standard requires us to plan and
perform procedures to obtain reasonable assurance about whether the financial statements included in the annual
report have been prepared in compliance with the ESEF Regulation.
As part of our work, we have performed procedures to obtain an understanding of the Company’s processes for
preparing the financial statements in compliance with the ESEF Regulation. We examine whether the financial
statements are presented in XHTML-format. We evaluate the completeness and accuracy of the iXBRL tagging of the
consolidated financial statements and assess management’s use of judgement. Our procedures include reconciliation
of the iXBRL tagged data with the audited financial statements in human-readable format. We believe that the
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Oslo, 23 March 2023
Deloitte AS
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State Authorised Public Accountant
(this document is signed electronically)
Bulk Infrastructure Group AS Annual Report 2022 Bulk Infrastructure Group AS Annual Report 2022
104 105
Bulk Infrastructure Group AS,
Karenslyst Allé 53,
0279 Oslo, Norway
Phone: +47 47 80 70 00
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