BEERENBERG
BEERENBERG AS
ANNUAL REPORT
21
Beerenberg AS is a limited liability c ompa ny registered in Bergen, Nor way
The Beerenberg Group comprises the parent company Beerenberg AS and the subsidiaries
Beerenberg Holding AS, Beerenberg Services AS, Beerenberg Industri AS, Beerenberg
Poland Sp. z o.o, Beerenberg UK LTD, Beerenberg Korea LTD, Beerenberg Holding (Thailand) LTD,
Beerenberg (Thailand) CO., LTD and Beerenberg Singapore PTE. LTD.
The operational activities are organized in Beerenberg Services AS and its subsidiaries.
The head office is in Bergen and the group has offices in Stavanger and Skien in Norway,
in Poland, UK, South-Korea, Thailand and in Singapore.
ANNUAL REPORT
BEERENBERG
HOLDING AS
NORWAY
BEERENBERG
SERVICES AS
NORWAY
BEERENBERG
POLAND LTD
POLAND
BEERENBERG
INDUSTRI AS
NORWAY
BEERENBERG
KOREA LTD
KOREA
BEERENBERG
UK LTD
UK
BEERENBERG
HOLDING
THAILAND LTD.
THAILAND
BEERENBERG
SINGAPORE LTD
SINGAPORE
BEERENBERG
THAILAND
CO., LTD
THAILAND
3
Our expertise covers
the entire life cycle
OUR VISION
Beyond
Expectations
Our vision commits the corporation
and all of its employees to seek
solutions that exceed the
expectations of the wider world.
OUR CORE VALUES
Inclusive
Innovative
Responsible
The company shall be inclusive towards individuals,
other companies and society as a whole. An open and
accommodating attitude shall prevail throughout the
group. The company’s ability to be innovative will help
safeguard our own future, improve conditions for the
local environment and generally help create positive
social development. Aresponsible attitude shall prevail
at the company at all levels and in all contexts.
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ANNUAL REPORT
Contents
About Beerenberg 3
Vision and values 4
Dear stakeholder 8
Key figures 10
Beerenberg management 12
Business units 14
Environmental, Social and Governance (ESG) 18
Corporate governance 32
Board of Directors Beerenberg AS 35
Annual Directors’ Report 2021 36
Group Accounts 2021 – Beerenberg AS Group 42
Annual Accounts 2021 – Beerenberg AS 82
Declaration by the Board of Directors and CEO 96
Auditor’s Report 97
Definition of Alternative Performance Measures 103
The Beerenberg Group consists of several entities.
Unless otherwise stated the reference to company and
group refers to the total operation of these entities.
6
Annual Accounts
Beerenberg AS 82
Income statement 84
Statement of Comprehensive Income 85
Statement of Financial Position 86
Statement of Cash Flows 88
Accounting principles 89
Note 1 Revenues 90
Note 2 Long-term investments in other companies 90
Note 3 Restricted funds 91
Note 4 Share capital and shareholder information 91
Note 5 Equity 91
Note 6 Non-current liabilities, collateral and guarantees etc. 92
Note 7 Tax 93
Note 8 Payroll costs, number of employees,
remuneration, loans to employees etc. 94
Note 9 Specification of finance income and finance costs 94
Note 10 Financial instruments 95
Note 11 Events after the reporting date 95
Group Accounts
Beerenberg AS Group 42
Consolidated Income Statement 44
Consolidated Statement of Comprehensive Income 45
Consolidated Statement of Financial Position 46
Consolidated Statement of Changes in Equity 48
Consolidated Statement of Cash Flows 49
Note 1 Information about the group 50
Note 2 Basis of preparation 50
Note 3 Accounting principles 51
Note 4 Financial risk management 58
Note 5 Segment 61
Note 6 Revenues 63
Note 7 Other operating costs 64
Note 8 Personnel costs 64
Note 9 Finance income and finance costs 65
Note 10 Tax 65
Note 11 Property, plant and equipment 67
Note 12 Intangible assets and Goodwill 68
Note 13 Financial instruments 70
Note 14 Inventory 74
Note 15 Bank deposits and cash equivalents 74
Note 16 Share capital and shareholder information 74
Note 17 Employee benefits – pensions 75
Note 18 Remuneration of key employees 75
Note 19 Warranty liabilities and provisions 76
Note 20 Other short-term liabilities 76
Note 21 Contingent outcomes 77
Note 22 Related parties 77
Note 23 Group entities 78
Note 24 Derivatives 79
Note 25 Interest-bearing liabilities 80
Note 26 Secured liabilities 81
Note 27 Events after the reporting date 81
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At Beerenberg, we work every day to protect our custom-
ers in the harshest conditions on earth. Our services and
products continue to be in high demand in the oil and gas
industry, and increasingly also in other industries, including
building, construction, and transport.
We all know that transitioning to a renewable energy system
is key to tackling climate change. This comprehensive
transition will require contributions from everyone, and it
will take time. While governments, industry, and businesses
are working hard to produce clean energy solutions at scale,
lowering the carbon footprint of current energy forms
is also a prime focus. At Beerenberg, we are already well
positioned to provide sustainable products and services that
reduce the carbon footprint in a concrete and measurable
manner.
We experience a challenging development, with a significant
cost pressure and logistic challenges. In our daily operations,
we meet these challenges with high awareness, productivity,
and cost eciency.
In 2021 we continued to invest in people, sustainability, and
technology to better serve our clients and further develop
the organization.
Safety and security
Ensuring the safety and security of everyone working at and
for Beerenberg is a prerequisite for everything we do. Our
skilled employees deliver high-quality work for our custom-
ers in ever-changing conditions around the world, and it is
our responsibility to keep them safe. Our health, safety, and
environmental initiatives are embedded in a zero accidents
philosophy, with HSE as an integrated element in all parts of
our business.
Sustainability
Sustainability is one of the cornerstones in Beerenberg’s
strategy. We believe our expertise from the oil and gas
industry is the key to sustainable development. The use of
robotics and modern technologies in industrial insulation
and surface maintenance are just a few examples of how we
work to reduce our carbon footprint.
As society moves faster towards net-zero emissions, we aim
to be a partner on that journey. Through our focus on find-
ing sustainable solutions, we will continue to improve safety
performance, drive operational excellence, implement cost
improvements and strategic growth initiatives.
Investing in people
Fortunately, we have a highly skilled and engaged work-
force at many onshore plants, platforms, and oces both
in Norway and abroad. To ensure a continued supply of
qualified employees in an exciting and ever-changing ISS
profession, we facilitate professional development for the
new generation ISS workers at our facilities.
We also invest significantly in professional development
which includes adopting innovative technologies.
Products and services
Throughout the organization, we have invested in innova-
tive technologies, digital solutions, and new work methods
to simplify fieldwork and ensure eciency and sustainable
solutions. As an example, we used to travel all over the world
to measure the objects we were installing, whereas today we
send scanners our clients use themselves for measuring.
Similarly, we have developed new digital applications for
more seemless field work such as “FieldBuddy,” simplifying
ANNUAL REPORT
Dear stakeholder,
8
Beerenberg is not directly aected in any way, but we are
aware the situation will likely aect businesses, supply
chains, trade and finance across the region and worldwide.
Ideas are easy – execution is everything.
As we prepare for the future, evolving along with our clients
in a changing society, we will continue our work to achieve a
positive impact for our customers, shareholders, employees,
and the environment. Guided by our vision to exceed expec-
tations of everyone and to go beyond expectations – every
time.
and enhancing access to find and upload documentation
on-site. We have also implemented a new digital ordering
system and scanning tools to provide our projects and our
clients with easy access to placing orders, saving time and
money. Our new online courses also contribute to a reduced
carbon footprint, as it significantly reduces the need for
travel.
Providing greener products and services is an important
part of this development. We have, as a society as such, an
enormous potential for energy eciency and reducing our
energy consumption by re-insulation.
The area of surface treatments is also an area of rapid
change. Today our robots gather all waste, including
microplastics, so that we can handle it appropriately. At
Beerenberg we also use robots to eciently complete several
surface jobs, resulting in improved safety and significant
environmental benefits.
Even though Covid-19 continued to be a challenge in 2021,
we used the opportunity to develop new, environmentally
friendly products and solutions, proving we can quickly
adapt to new realities. Similarly, we have taken big leaps
in providing remote training and video assistance during
installations. In all, we have increased the number of ser-
vices to our customers, especially within the maintenance
area.
Moving forward, we will continue to focus on both climate
risks and sustainability developments in our daily work.
At the time of writing, the consequences arising from
the Russia invation of Ukraine are still uncertain. So far,
Arild Apelthun
CEO
9
Hours produced
3,1 MILL
EBITDA margin
10,1%
SIF
1,7
Revenue
2136 MNOK
ANNUAL REPORT
Key figures
2017 1 851 MNOK
2019 2 209 MNOK
2020 1 722 MNOK
2018 1 519 MNOK
2021
2 136 MNOK
10
Unit 2021 2020 2019 2018 2017
ORDERS AND RESULTS
Estimated order backlog* MNOK 7 300 8 300 9 300 9 500 10 500
Revenue MNOK 2 136 1 723 2 210 1 520 1 852
Growth in revenue Percent 240 % -220 % 454 % -179 % -110 %
EBITDA MNOK 217 217 216 97 253
Ebitda margin Percent 101 % 126 % 98 % 64 % 137 %
EBIT MNOK 153 146 142 48 207
Net Profit MNOK 56 47 45 -31 78
Net margin Percent 26 % 27 % 21 % -21 % 42 %
Unit 2020 2019 2018 2017 2016
CASHFLOW AND CAPEX
Cash flow from operating activities MNOK 109 88 126 52 87
Capex MNOK 40 17 52 39 13
Unit 2020 2019 2018 2017 2016
BALANCE SHEET
Equity MNOK 546 487 440 394 422
Equity ratio Percent 299 % 290 % 237 % 242 % 246 %
Net working capital MNOK 99 75 73 59 140
Nwc / revenue ratio Percent 47 % 43 % 33 % 39 % 75 %
Total liabilities MNOK 1 284 1 189 1 417 1 234 1 292
Total assets MNOK 1 830 1 676 1 858 1 628 1 714
Unit 2020 2019 2018 2017 2016
EMPLOYEES
Employees 31.12. Number 1 247 1 203 1 312 1 131 1 146
Man years – totally employed Number 2 221 1 716 2 002 1 621 1 954
Change in total resources employed Percent 295 % -143 % 235 % -170 % -82 %
Hours produced In thousands 3 100 2 405 3 431 2 476 2 873
Change in hours produced Percent 289 % -299 % 385 % -138 % -77 %
Unit 2020 2019 2018 2017 2016
HSE
Serious Incident Frequency (SIF)
Per million
workedhours
17 22 10 09 0
Lost time incidents Frequency (LTIF)
Per million
workedhours
31 09 03 0 0
Total recordable incidents frequency
Per million
workedhours
79 27 39 55 43
*) Estimated order backlog is based on best estimates of frame agreements
ANNUAL REPORT
11
ANNUAL REPORT
Management
Arild Apelthun
CEO
Arild Apelthun has been CEO since June 2018. Apelthun joined Beerenberg in
2014 and was previously the CFO of the company. Apelthun has a background
as CFO from TTS Group and subsidiaries in Aker Solutions in USA and Europe.
Apelthun holds a Master of Science in Business (Siviløkonom) from Bodø
Graduate School of Business.
Toni Suomäki
Executive Vice President – Maintenance, Modifications & Operations
Toni Suomäki has been EVP MMO since June 2018. Suomäki started in
Beerenberg in 2007 and has held a number of key positions in the company,
mainly related to operations and project management. Suomäki has long
experience in oil service from various companies before joining Beerenberg.
Suomäki holds a Bachelor in Economics and Management from BI.
Nils Halvor Berge
Executive Vice President, New Build & Modifications Projects
Nils Halvor Berge has been in Beerenbergs Management Team since April 2016.
Berge joined the company in 2009, and has been project manager both at Kårstø
and at Nyhamna APCm project. Prior to Beerenberg, Berge served as sports
director and general manager at FK Haugesund for 12 years. Berge qualified as
a teacher at Sogn og Fjordane University College.
Harald Haldorsen
CFO
Harald Haldorsen joined Beerenberg as CFO in March 2020. Haldorsen has
extensive experience within finance and controlling activities. Prior to joining
Beerenberg Haldorsen worked as the CFO at Strømberg Gruppen AS for more than
12 years. Prior to this, Haldorsen has had positions at Arthur Andersen & Co and
Centragruppen. Haldorsen has an economics degree from the Norwegian School
of Economics (NHH) in Bergen.
12
Roger Kjeilen
Executive Vice President, Tender
Roger Kjeilen has been EVP Tender since 2018, responsible for tender and
marketing activities in the Beerenberg Group. Kjeilen joined the company
in 1996 and has held several leading positions in Beerenberg. Kjeilen has a
Master of Science (Sivilingeniør) from Norwegian University of Science
and Technology (NTNU).
Gro Hatleskog
Executive Vice President, Business Support
Gro Hatleskog has been EVP Business Support since March 2015. Hatleskog
held the same position in the company from 2009–2011. Hatleskog has extensive
and wide-ranging experience as an HR and sta director at Vesta Forsikring,
Sparebanken Vest and Nera Telecommunications. Hatleskog has a Master’s Degree
in Administration and Organisation Theory from the University of Bergen.
Jan Terje Lagos Bøe
Executive Vice President, HSEQ & RISK
Jan Terje Lagos Bøe started as EVP HSEQ & Risk in Beerenberg in January
2022. Bøe has extensive experience within all segments of oil and gas, including
international business. Prior to joining Beerenberg Bøe held the position as
Quality & Risk manager at Vår Energy on Balder Future, including upgrade
of Jotun FPSO on Rosenberg in Stavanger. Bøe holds a degree from Western
Norway University of Applied Sciences.
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Services Benarx
Engineering
ANNUAL REPORT
Business units
Services
Services’ main business areas have been
divided into two segments:
• Maintenance, Modifications & Operations
• New Build & Modification Projects
Benarx
The Benarx® product series is
Beerenbergs’ proprietary range of
industrialised insulation solutions
for passive fire protection and
thermal and acoustic insulation.
14
Surface Treatment
Insulation
Engineering
Scaffolding
Technical Cleaning
Passive Fire
Protection
Rope Access
Techniques (RAT)
Architectual
Outfitting
Habitat Solutions
(Sveisolat
®
)
Cold Cutting
SERVICES BENARX
Benarx
®
Subsea
Insulation
Engineering
Some of our clients
• Agility Group
• Aibel
• Aker BP
• Aker Solutions
• BMO
• Cameron
• ConocoPhillips
• Daewoo
• Equinor
• Halliburton
• Hyundai
• Lotte Chemicals
• Norcem
• OneSubsea
• Samsung
• Sembcorp
• Shell
• TechnipFMC
• WintershallDea
• WorleyParsons
• Yara
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Services has the overall responsibility for
Beerenberg’s newbuild, maintenance
and modifications contracts. Alongside
theISS disciplines (insulation, scaolding
and surface treatment), the business
unit also covers passive fire protection,
technical cleaning, rope access techniques ,
architectural outfitting services and the
cold work concepts Sveisolat (habitats)
and cold cutting /mobile machining.
Services’ main business areas have been divided into
two segments:
▪ Maintenance, Modifications & Operations
▪ New Build & Modification Projects
The two main business areas are designed to meet future
demand on the Norwegian Continental Shelf and in the
petrochemical industry. As well as direct maintenance
contracts on installations and plants in operation,
Beerenberg is also involved in business concepts aimed
at modification projects and newbuilds in the oil and gas
sector.
As a supplement to the traditional ISS disciplines,
Beerenberg also delivers a range of technology-driven
additional services whose innovative approach helps
to ensure eective, consistent and HSE/Q-friendly
operation.
Beerenberg’s engineering services are an integrated
part of the company’s overall service concept. The
company has extensive experience of studies, FEED,
pre-engineering, fabrication engineering and as-built
from a number of developments and installations in
Norway and abroad. The company’s expertise includes
design, specifications and modelling, technical drawing,
working documents, documentation, plans and methods,
inspections and other field engineering, and as-built.
ANNUAL REPORT
Services
Surface treatment
148 000 m
2
Extends product life and
increases durability
Scaffolding
424 000 m
3
Provides secure access and
safe working conditions
Insulation
82 000 m tubes
Saves energy and
cuts emissions
16
The business segment Benarx is responsible for the design and manufacturing of a complete
range of insulation and fire protection products. This involves deliveries of everything from
advanced proprietary products to traditional solutions and bulk insulation products. The
business segment has also highly skilled professionals to assist in the actual installation
process – something which is particularly important in the case of subsea insulation.
The Benarx® product series is Beerenbergs´ proprietary
range of industrialised insulation solutions for passive
fire protection and thermal and acoustic insulation. The
company’s ambition is for the products to be cost eective,
space-saving and weight-reducing. Key factors in achieving
this are:
▪ Making products that are installation-friendly, thus
moving the work from a high-risk plant to a factory
specially designed and built for this purpose.
▪ Developing new products by identifying and combining
new and existing insulation materials from dierent
Industries.
▪ Doing actively research and find new materials that
can give us a competitive advantage, this is obtained
due to close collaboration with partners.
▪ Seeking sustainable insulation solutions that are well
documented and verified
▪ Extensive testing to ensure that our products meet
industry standards as a minimum and provide optimal
protection of the process (thermal), the plant (fire and
CUI) and the people who work there (acoustic etc.) now
and in a lifetime perspective (life cycle costs).
▪ A unique combination of standardised, automated and
centralised production of solutions tailor-made for
our customers.
▪ Environmentally friendly solutions, services or
execution-models that can provide added value for
our clients.
The Benarx® insulation products have a documented life
span that far exceeds those of conventional insulation
solutions. The company has a cooperation agreement with
Akzo Nobel and cooperate closely with other key clients
and suppliers as well as institutions such as SINTEF, DNV,
GL, the National Institute of Technology, CRM, GexCon
and Lloyds. The solutions have been tested and approved
according to all relevant specifications/standards.
Over the past decade the Benarx product series has assumed
a strong position on the Norwegian Continental Shelf (NCS).
In recent years the company has widen the target market for
its products, especially in Europe and Asia.
The complexity of fabrication and installation of current
insulation solutions is one of the international oil and gas
industry’s biggest challenges. The fact that the work requires
extensive expertise and experience does not harmonise well
with the highly volatile demand for capacity. The solution
to this is therefore to automate production and to develop
products that are easy to install.
Benarx R&D department focuses especially on developing
solutions that are installation-friendly and suitable for
automated production. Beerenberg has been awarded major
contracts in the market for thermal subsea insulation over
a number of years and has the capacity to deliver products
and services worldwide.
The company is working with TechnipFMC, One Subsea
and other big operators in the sector. Solutions include the
use of market-leading materials and installation methods
developed in-house.
Advanced insulation solutions
8 000 steel boxes
Protection of your assets
– high energy efficiency
Benarx
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ANNUAL REPORT
Environmental, Social
and Governance (ESG)
18
How we achieve our results is important. Beerenberg’s strong commitment to sustainability
is applied to everything we do. Sustainability is embedded in our strategy – and many of
our primary operations, whether maintenance or insulation products, are inherently about
sustainable development.
ESG pillar
Innovasion for
reduced emissions
and waste
Developing people
and providing
safety
Transparency and
governance
19
We approach the subject with openness and respect, and
we are testing, documenting and seeking ecient solu-
tions to keep climate emissions and pollution to a mini-
mum. In 2021, our sustainability work included specific
and systematic eorts to find and develop sustainable
materials, products and solutions, through remote work,
digitalisation, standardisation, recycling and reuse.
Providing sustainable products
Since we launched our large-scale sustainability eort in
2019, we have worked systematically to determine how
our Benarx products can be utilised to prevent climate
emissions. Today we conduct sustainability analyses
of all our products, document our findings, and use this
information to make sound environmental choices going
forward.
Other specific measures we have implementet include:
▪ analysis and reduction of material losses in
production
▪ testing new, more environmentally friendly
production methods
▪ standardisation for material usage reduction
and for the use of more environmentally friendly
products
▪ reducing the need for sandblasting
▪ better handling of chemicals
▪ security measures to eliminate cut injuries
At Beerenberg we have ambitious goals for
making all our activities and products as
environmentally friendly as possible and
have established a thorough strategy for our
sustainability work.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE ESG
Environmental and
sustainability efforts
Focus areas
Transparency
and governance
Business
ethics
ESG
communications
Safe work
environment
Responsible
procurement
Attractive
workplace
Sustainable
materials
Climate
action
Sustainable
methods
20
Key KPI’s
1 Reduced release of microplastics in connection
with surface treatment
2 Reduced CO2 footprint in connection with
surface treatment
3 Number of new sustainable technology or
solutions tested and adopted
4 Proportion of suppliers with a ESG program
5 Share of turnover in new and sustainable markets
1 TRIF
2 Proportion of sick leave
3 Internal recruitment of managers
4 Proportion of suppliers signed declaration
on ethical guidelines and human rights policy
1 Report on ESG in quarterly and annual financial
reports
2 Proportion of employees who have completed
training in ethics
3 Publish an external article in connection
with the quarterly report
27%* >25%**
NA >10%
4 >3
NA >50%
3% >10%
7,9 < 3
8,9% <6%
78% >80%
NA 80%
NA 5
79% >90%
NA 4
2021 2022
Actual Goal
Impact on UN’s SDGs
*) Benchmark 2020. Scope surface treatment Offshore
**) Benchmark 2020. Scope surface treatment Offshore and Onshore
21
New environmentally friendly solutions
Even though Covid-19 has been a challenge, it has also been
a catalyst for developing new, environmentally friendly
solutions we will develop further. We have made extensive
use of remote training for our products, and installations
have been done via video assistance. Earlier, we travelled
all over the world to measure the objects we were installing,
whereas today we send scanners the clients can use them-
selves for measuring. Training, guidance and installation
have also been successfully carried out via video assistance.
This is something we had planned of doing for a while, but
the corona pandemic pushed us in the right direction.
Not only has this work improved our environmental
accounting; it has also been a commercial success, and
we have entered new markets while reducing our environ-
mental footprint.
Throughout 2021, we also worked persistently with find-
ing solutions for recycling and reuse of components from
our main product in the Benarx product series. We are
also working on implementing return schemes for these
products.
We also notice our customers’ increasing emphasis on sup-
plier operations being as sustainable as possible. A Korean
company selected Beerenberg as their insulation supplier
because we, unlike traditional suppliers, could assist with
designing better energy ecient and low emission solutions.
Providing sustainable services
In 2019, we decided to be a frontrunner within the industry.
Since then, we have worked systematically with defining
possible measures for fulfilling the UN’s sustainability
goals. We want to estimate our carbon footprint, and
this work have been received with enthusiasm within the
organisation.
We have started by mapping our surface treatment activi-
ties. A cross-disciplinary team has systematically gone
through all our surface treatment methods to uncover how
and to what degree they impact the environment. Based
on this work, we now have detailed knowledge of how the
methods we choose impacts the environment, which makes
it easier for us to decide which tools to apply to reduce
emissions and to determine the actual climate eect.
Significant emission reductions
Ahead of 2021, we set two specific goals: to reduce carbon
emissions by 10% and emissions of microplastics related to
surface treatment by 20% compared with 2020 levels. The
conclusion was we managed to reduce the carbon emissions
by 20% and the emissions of microplastic by 27%, simply
by utilising alternative methods for surface treatment. Our
improvement work will continue persistently and at present
we are carrying out a similar mapping of our scaolding and
insulation services.
We have, as one of the first companies within our industry,
developed and utilised electric compressors. The robot
technology we tested and implemented last year also proved
to be an important contribution to emission reduction. The
robots are developed in collaboration with the manufacturer
and in line with the specific environmental requirements
for the Norwegian shelf. This technology gathers waste that
would previously be discharged into the sea.
We see several positive eects from these measures:
▪ reduced use of sand as a production factor
▪ reduced physical strain on personnel
▪ increased eciency
▪ better quality
▪ reduced emissions
▪ reduced noise
▪ better utilisation of resources and knowledge
Overall, we are focused on achieving improvement through
digitalisation. We have developed an app, a sustainability
dashboard, where our managers can register climate data
through mobile units and receive immediate results con-
cerning status and possible measures for greener operations.
Investing in a sustainable future
New technology is costly and involves a great deal of testing
and trials and errors, and the measures we have imple-
mented are no exceptions. Documentation requires several
evaluations and a great number of our employees have made
substantial eorts to produce the data sets. We realize that
for now we must endure somewhat higher costs if our prod-
ucts and services are to become more sustainable, but our
ambitions are for these environmental protection measures
to become profitable over time. Sustainable development
also extends to other issues, such as social and economic
living standards, human rights and health.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE ESG
22
23
24
Achievements 2021
ENVIRONMENTAL, SOCIAL AND GOVERNANCE ESG
Beerenberg´s first partnership project with Lotte Chemicals
in Korea includes upgrading insulation in petrochemical
plants. Beerenberg´s expertise is also used to monitor the
amount of energy saved in the process, in an effort to cut
CO2 emissions.
“We’ve been involved in the planning process and have
calculated the insulation thickness and volumes of materi-
als needed to replace the insulation on some 7,000 meters
(about the length of 60 city blocks) of pipe,” head of products
Asia, Per Lange says. But that is not the end of the job for
Beerenberg.
“Once its all done, we´ll spend a year or so monitoring the pipe
temperatures. We are looking at heat loss and calculating how
much energy we have saved,” he explains.
The petrochemical plant hopes to see their investment repaid
in three years. “So far, the measurements look to be on track
for that, but we will have to measure over time and seasons
to be sure, Lange says.
The principle of isolating to save energy can be used in many
areas:
▪ Insulating LNG equipment and storage tanks. In the
Korean market, there are several opportunities due to
the country’s sustainability focus of the sustainability
focus. “For example, there is a major drive to adopt LNG
as fuel for more traditional vessels such as container
ships. LNG must keep a temperature of -162 degrees,
which means vastly different specs for insulating the
equipment and storage tanks. We are looking at viable
solutions with our Aerogel products,” Lange says.
▪ Insulating car batteries. Changes in the car manu-
facturing sector are also creating opportunities for
Beerenberg’s insulation solutions. “Korea has a huge
automotive industry which is now switching to electric
vehicles. In this type of manufacturing there are
requirements for battery insulation. Our products can
be a suitable alternative in this respect and open
a new and exciting market for us,” he says.
▪ Recycle old insulation materials. In the effort to help
save the environment, another important contribution
is to recycle old insulation materials. "Waste accounts
for huge volumes, and we are looking to our expertise
for several ways in which we can help. Rather than
dumping removed materials, they can be grinded up
or melted down into new products. This is still at the
planning stage in Korea, and it is exciting to be involved
in the early phase with a genuine opportunity to make
an impact,” Lange concludes.
We’ll spend a year or so
monitoring the pipe
temperatures. We are
looking at heat loss and
calculating how much
energy we have saved.
Per Lange, head of products Asia
25
Cutting greenhouse
gas emissions by
upgrading insulation
Beerenberg’s goal to make all activities and products as
environmentally friendly as possible has resulted in syste ma -
tical research and development with use of a range of new
technologies.
The robot technology Beerenberg implemented in 2021
proved to be an important contribution to reduce emissions.
The robotic solutions, that are utilized both internally and
externally in tanks, on walls, roofs and all areas with large
surfaces, but also on pipes structures, caissons and conduc-
tors, allows removed materials to be vacuumed and filtrated
which contributes to less emissions.
Among other things, the robots used offshore, gather waste
that would previously be discharged into the sea. Looking
at micro plastics alone, which now are gathered by vacuum
pumps, the company has seen a 27 percent reduction in
2021.
A forerunner in the industry, Beerenberg has both developed
and utilized high pressure electric compressors, UHTs and
vacuum pumps. “Being self-sufficient in this area allows us
to reduce the need for diesel machines, along with diesel
consumption and exhaust emissions,” says VP MMO at
Beerenberg Ole Christian Thømt.
Today, the company has three pretreatment robots with water
jets and vacuum cleaners for collecting waste during the
surface treatment. “We see many positive effects including;
reduced use of sand as a production factor, reduced physi-
cal strain on personnel, increased efficiency, better quality,
reduced emissions, reduced noise, and better utilization of
resources and knowledge,” says Thømt.
As a result, there is an increase in the demand for environmen-
tal friendly solutions. “The more we talk about and use robots,
the more people request them. There is a very clear link,” he
adds.
Investing in robotic solutions
While Beerenberg always worked with new technologies
and collaborated with other companies on robotics solutions
since 2018, the company invested in a more planned and
self- sufficient use of robotization for surface treatments
in 2020, starting with a job on the Gullfaks C platform. In
2021 Beerenberg continued to invest in robotic solutions
and develop electric compressors. The robots are developed
in collaboration with the manufacturer and in line with the
specific environmental requirements for the Norwegian shelf.
26
Reducing the environmental
footprint with robotics
The more we talk about
and use robots, the more
people request them.
Ole Christian Thømt, VP MMO
To better measure the climate footprint of the company’s
surface treatment operations, Beerenberg launched a
sustainability dashboard in 2021.
The key is to know exactly which methods are being used on
all surface treatment jobs on the sites where we operate by
using the daily logs. Now managers can register climate data
through mobile units and receive immediate results concern-
ing status and possible measures for greener operations.
“The significance of sustainability in relation to our services
is growing and will become the new ‘license to operate’ in the
next few years, obviously paired with excellent HSEQ perfor-
mance,” explains Toni Suomäki, EVP MMO at Beerenberg.
Accounting for climate
When documenting the treatment method and the extent
of the work, the sustainability dashboard automatically
generates climate accounts for the job in question.
This also simplifies the process by digitalizing the docu men-
tation in a customized digital app. Relevant data are auto-
generated into the be sustainability dashboard to always
keep it up to date.
The value of measurements
Beerenberg is working to generate exact figures for its
emissions and consequently also for its annual emission
cuts. By measuring, we set a clear direction as to what the
eco-friendlier choices are.
“By measuring our surface treatment activities, we raise
awareness throughout the organization and make environ-
mental impact an integral element in the decision-making
process. In essence, the things we measure we will also
focus and improve on,” says Toni Suomäki.
Every time the team plan a job, they also evaluate the
environmental impact of the pretreatment method before
they make a decision. Since sand-blasting means more pollu-
tion, Beerenberg now consider whether it is better to deploy
sponge media on the job or whether we might be able to use
manual vacuum-blasting or robotic pretreatment methods.
By making these assessments before each job, the result
will be more thought through and environmentally friendly.
27
Sustainability
Dashboad
The things we measure
we will also focus and
improve on.
Toni Suomäki, EVP MMO
ENVIRONMENTAL, SOCIAL AND GOVERNANCE ESG
Social and Governance efforts
Business ethics and human rights
The Beerenberg group’s ethical guidelines are designed to
ensure that we are acting in compliance with the company’s
values and principles, in terms of business practices and
personal conduct. The guidelines are revised annually and
adopted by the group’s executive bodies. Human rights are
integrated in the Ethical Guidelines. We support and respect
all internationally recognized human rights and shall
contribute to protect those. In our Human Rights Policy
we commit to be in compliance with the Ten Principles of
the UN Global Compact including human rights, labour,
environment and anti-corruption.
28
The human rights policy is integrated in the com-
pany’s values to be responsible and inclusive. In
2021 Beerenberg focused on human rights in the
supply chain. Beerenberg will continuously work to
strengthen its work to secure human rights and pre-
pare for implementation of Norwegian Transparency
Act (Åpenhetsloven) eective in 2022.
Employees receive training in ethics and human
rights through the company’s training programme,
which includes both e-learning and other tailor-
made activities such as courses and dilemma train-
ing. Ethics are also discussed at the in HSE meetings
of the operational business and promoted by “leading
by example” throughout the organisation. A whistle-
blowing regime for employees has been implemented
to ensure compliance with the ethical guidelines.
The system has channels for alerting anonymously
to external and independent third parties.
Working with partners and suppliers
Beerenberg follows up and supports the manage-
ment of risks and performance related to safety,
security, ethics, integrity and sustainability. This
also includes following up climate- and human
rights related issues. We also require our suppliers to
maintain high standards for health, safety, security,
anti-corruption and environmental performance,
and to have an approach to human rights consist-
ent with the goals of the United Nations Guiding
Principles on Business and Human Rights.
In 2022 we aim to have at least 50 % of our suppliers
with an ESG program, and 80 % of our suppliers with
signed declaration on ethical guidelines and human
right policy.
Beerenberg
Annual Awards
We know that the valuable input, motivation, and skills of
each and every employee are what has made Beerenberg a
successful company.
In appreciation of their efforts, we launched a new develop-
ment concept in 2021 called the Beerenberg Annual Awards
– where employees were invited to nominate and celebrate
their colleagues.
“This is part of our long-term strategy in building and
developing skills, and where the focus is on the individual
employee,” says CEO, Arild Apelthun.
The nomination process generated much enthusiasm, and
colleagues from across the company made no fewer than
183 nominations in five separate categories; the flexible
worker, the explorer, the eager beaver, the holistic thinker,
and the team builder.
“We know that there are many dedicated employees
who deserve recognition, and one objective was to honour
this talent while also commending behaviours and cultures
that we want to see more of,” says EVP Business Support,
Gro Hatleskog.
29
This is part of our long-
term strategy in building
and developing skills.
Arild Apelthun, CEO
ANNUAL REPORT
Annual Report
and Accounts
30
31
CORPORATE GOVERNANCE
Review of the principles of corporate governance
according The Norwegian Code of Practice for
corporate governance (NUES)
1. Review of corporate governance
The purpose of the principles of corporate governance in
Beerenberg AS is to clarify the division of roles between
shareholders, the board of directors and executive manage-
ment more comprehensively than is required by l legislation.
There have been some changes in the Code of practice
(NUES) in 2021 which has been implemented.,
The group’s vision is “Beyond Expectations”. The vision
commits the corporation and all of its employees to seek
solutions that exceed the expectation of the wider world.
The group has set out 3 core values:
- Inclusive towards individuals, other companies
and society as a whole. An open and accommodating
attitude shall prevail throughout the group.
- Innovative will contribute to create a positive social
Development, improve the environment and help
safeguard a better future.
- Responsible attitude shall prevail at the company
at all levels and in all contexts.
The group has established ethical guidelines that should
form the basis for how Beerenberg conducts business.
Deviation from code of recommendation: None
2. Business
The group’s operational activity is conducted in its subsidi-
ary, Beerenberg Services AS. In article 3 in Beerenberg
Services AS Articles of Association the purpose of the
business is defined:
“The objects of the company are to engage in contract work,
production, industrial maintenance, trading, agency and
commission work, and to take interests in other enterprises
engaged in similar activities by way of share subscriptions
or other means”.
The group will conduct the business in line with established
sustainability targets. The group will also provide informa-
tion on matters relating to the environment, social issues,
the working environment, equality and non-discrimination,
respect for human rights, and anti-corruption and bribery.
Deviation from code of recommendation: None
3. Equity and dividends
Total assets at 31 December 2021 was MNOK 1830 with
an equity of MNOK 546, giving an equity ratio of 30%.
The Groups solidity is evaluated based on current targets,
strategy and risk profile.
Beerenberg has a bond listed at the Oslo Stock Exchange.
Beerenberg has during 2021 sold its own stock of bonds
Deviation from code of recommendation: Dividend policy
and specific capital requirement targets. The Group’s
financing restricts the company’s rights to pay dividends.
Consequently, the board has not found it practical to develop
a dividend policy. Furthermore, the board has not seen it as
necessary to establish specific targets for leverage or equity
ratio in addition the evaluations that are made continuously
and specified in budgets and strategy plans.
4. Equal treatment of shareholders
and transactions with close associates
Segulah IV L.P holds 83,9% of the shares in the company.
The shares are not listed. As a consequence, there is no
specific policy relating to preferential treatment of existing
shareholders nor is there policy relating to sales of shares.
Deviation from code of recommendation: Based on current
ownership structure the board has not seen it as necessary
to develop additional guidelines beyond what is described in
the legal framework (Aksjeloven).
With regards to transactions with close associates the board
of directors has prepared guidelines where the basis for the
transaction should be based on an independent, 3rd party
valuation. However, if the matter relating to the valuation
has been satisfactory handled, the board may decide to
forego the independent valuation. There have not been
significant transactions with close associates in 2021.
A procedure relating to reporting of potential conflict of
interests to the board has been established.Deviation from
code of recommendation: Policies relating to preferential
treatment of shareholders and sales of own shares have not
been established.
5. Freely negotiable shares
No form of restriction on negotiability is included in the
company’s article of association.
Deviation from code of recommendation: None
32
6. Annual general meeting
The company’s shares are not listed. As a consequence,
the board has not prepared separate procedures regarding
annual general meeting.
Deviation from code of recommendation: Based on current
ownership structure the board has not seen it as necessary
to develop additional guidelines beyond what is described
in the legal framework (Aksjeloven).
7. Nomination committee
The company’s shares are not listed. As a consequence, the
board has not prepared procedures regarding nomination
committee.
Deviation from recommendation: Based on current owner-
ship structure the board has not seen it as necessary to
appoint a nomination committee. Members of the board are
appointed by the majority owner.
8. Corporate assembly and board of directors:
Composition and independence
The company does not have a corporate assembly.
The boards of directors have the following members:
NAME POSITION PERIOD
Geir M. Aarstad Chairman 2021–2022
Sebastian Ehrnrooth Member 2020–2022
Ingelise Arntsen Member 2020–2022
Hilde Drønen Member 2020–2022
Morten Haakon Walde Member 2020–2022
Sebastian Ehrnrooth represent Segulah IV L.P. which holds
83,9% of the shares in Beerenberg AS. In addition, some-
current and previous board members and members of the
management hold shares in the company.
Geir M. Aarstad, Ingelise Arntsen, Hilde Drønen and
Morten Haakon Walde are all independent of the company,
its management and its largest shareholder.
Deviation from code of recommendation: None
9. The work of the board of directors
The board has established procedures to clarify areas of
responsibility as a group and as individuals.
The board has established an annual plan for the year and
has in 2021 had eleven meetings. The annual plan includes
a three-year strategy plan, budget and target setting and
review of the operations with focus on control and risk
evaluation.
The board has appointed an audit committee and estab-
lished guidelines for its work. The members of the audit
committee are:
Ingelise Arntsen, Chairman of the committee
Hilde Drønen
Morten Haakon Walde
The company does not have a compensation committee
and evaluates the need annually.
The board performes an annual evaluation of the work in
the board.
Deviation from code of recommendation: None
10. Risk management and internal control
The board regularly reviews the performance of the company,
among others through a monthly and quarterly report. These
reports include financial information regarding the company
and specific information relating to the business segments in
addition to other important areas like HSE.
In addition, the board approves significant tenders and
investments.
The board of directors has an annual review of risk areas and
internal control systems. The board of directors also has an
annual review of Corporate Governance including ethical
guidelines.
Deviation from code of recommendation: None
33
CORPORATE GOVERNANCE
11. Remuneration of the board of directors
The remuneration of the board of directors is established
by the annual general assembly and is based on an evalu-
ation of the workload. The remuneration is not dependent
on the financial performance of the group. There is no form
of incentive arrangement or similar. Please see note 19 for
additional information.
Deviation from code of recommendation: None
12. Remuneration of leading employees
The boards view on the remuneration level for leading
employees are that they should be on a competitive level
and motivating. The board has not established guidelines
relating to remuneration to leading employees. There should
be no remuneration which is not subject to limitations.
Please see note 19 for further information.
Deviation from code of recommendation: None
13. Information and communication
The group has established policies relating to financial
information. Beerenberg’s reporting is aiming to be clear
and precise and ensure that the general principle of equal
treatment is fulfilled.
Deviation from code of recommendation: None
14. Takeover
There are no provisions or limitation relating to a takeover
in the articles of association. There are no other limitations
to limit acquisition of the company’s shares.
Deviation from code of recommendation: Guidelines relat-
ing to takeover has not been established. The board has,
considering the current ownership structure, not seen the
need to establish guidelines in case of a takeover.
15. Auditor
The auditor has minimum two yearly meetings with the
audit committee. In addition, the auditor participates in
a board meeting in connection with the approval of the
annual accounts where sections of the meeting are without
participation from the management.
The auditor presents the plan for the annual audit to the
audit committee where priorities and risk evaluations
including internal control are presented. The auditor
prepares an audit report about the annual accounts based
on the annual audit plan.
The total fee paid to the auditor, where a distinction
between the auditor fee for annual audit and other services
provided are shown in note 7. The extent of other services
outside the audit is reviewed by the audit committee. The
audit committee evaluates the auditor’s independence.
Deviation from code of recommendation: The board has not
seen it as necessary to establish additional guidelines.
34
ANNUAL REPORT
Board of Directors
Geir M. Aarstad (1960), Chairman of the board. Aarstad has a long and
broad experience from the construction industry, not least through his many
years at Skanska where Aarstad was CEO from 2004 to 2009. He then took
over as CEO of the Saudi company Al Rajhi Contracting. Since 2011, Aarstad
has prioritized board positions. Today Aarstad is involved in a number of
boards including NCC, Stangeland Gruppen and Sig Halvorsen Gruppen.
Hilde Drønen (1961), holds a master degree from Business School of Management
and a MBA from Norwegian School of Economics. Drønen has been the CFO
of DOF ASA since 2004. Drønen held the position as CFO in Bergen Yards from
2002 to September 2004 and has before that held various senior positions in
the Møgster Group. Drønen has more than 30 years of experience within the oil
and gas industry and has served as director in several external companies mainly
in the energy sector. Drønen is currently a board member in BWE Energy Ltd.
Hilde Drønen is an independent board member.
Ingelise Arntsen (1966), has more than 20 years of experience in the energy
industry in the field of hydropower, solar energy and onshore and oshore wind
power, including EVP at Statkraft, REC and Aibel. Arntsen has held a number
of board room positions and is currently serving as chairman of Asplan Viak
and on the board of Statkraft, Corvus Energy, Fred Olsen Windcarrier SBM
Oshore N.V. and Eksportkreditt. Ingelise Arntsen is an independent board
member.
Sebastian Ehrnrooth (1963), investors representative and partner
at Segulah Advisor AB. Ehrnrooth was formely Deputy CEO of CityMail,
project manager at Bain & Company and sales manager at Motorola.
Ehrnrooth holds board room positions at Segulah Advisor AB, Gunnebo
Lifting & Blocks, KP Components, Hermes Medical Solutions AB and
CCS Healthcare.
Morten Walde (1969), CEO in TS Group, has more than 25 years of
experience from various operational- and strategic positions in the oil
& gas industry. Walde was formerly CEO in Beerenberg (2008–2018)
and holds several executive and non-executive positions in dierent
companies today. Morten Walde is an independent board member.
35
BEERENBERG AS
Annual Director’s Report
In Norway, the beginning of 2021 was marked by increased COVID-19 infection rates
and a tightening of infection control measures, which led to a fall in Beerenberg’s
activity. The activity levels regained traction as the vaccine rollout progressed in the
first half of 2021, which eventually led to a full reopening of society and a clear upturn
in the activity levels. The upswing in activity continued during most of the fourth
quarter, although activity levels fell in December due to the outbreak of the Omicron
virus variant and the subsequent infection control measures.
Despite a challenging market situation due to the pandemic, Beerenberg delivered
strong results in 2021. Beerenberg has demonstrated an ability to mobilize and execute
operations across the world through the pandemic constraints. The company has
adopted new ways of working and increased its activity, with operating revenue up
24 percent, compared to 2020.
Business areas
Beerenberg´s activities include innovative service solu-
tions for the oil and gas industry, covering the entire life
cycle from field studies and newbuilds to maintenance,
modi fications, and lifetime extensions. The business
area Services include Beerenberg´s core ISS disciplines
Insulation, Scaolding and Surface treatment, as well as
passive fire protection, technical cleaning, rope access
techniques, architectural outfitting services, and the
cold work concepts Sveisolat (habitats) and cold cutting /
mobile machining – all primarily oered to clients on the
Norwegian Continental Shelf (NCS).
The Benarx business area is built around the proprietary
Benarx® product range, which includes high specifica-
tion insulation products (thermal, acoustic, and passive
fire protection) as well as insulation solutions for subsea
installations.
Beerenberg is headquartered in Bergen, with regional oces
in Skien, Poland, UK, South Korea, Thailand, and Singapore.
Financial statement
The operating revenue in 2021 increased by approx. 24%
to NOK 2,136 million from NOK 1,723 million in 2020.
Earnings before interest, taxes, depreciation, and amorti-
sation (EBITDA) ended at NOK 217 million, compared to
NOK 217 million in 2020. The EBITDA margin was 10,1 %,
down from 12,6 % in 2020.
Net financial cost for the full year ended at NOK 82 million,
down from NOK 91 million last year and the full year net
profit of 2021 was NOK 56 million versus a profit of NOK
46 million in 2020.
The estimated order backlog at the year-end, including frame
agreements and options, was NOK 7.3 billion, down from
NOK 8.3 billion in 2020.
Capital, cash flow and liquidity
Total assets at the end of 2021 amounted to NOK 1.830
million, up from NOK 1.676 million in 2020, due to higher
activity in 2021 compared to 2020. The equity was NOK
546 million, up from NOK 487, corresponding to an equity
ratio of 30 %.
Cash flow from operating activities depends on several
factors, including progress on and delivery of projects and
changes in working capital. Cash flow from operating
36
37
activities was NOK 109 million, compared to NOK 88 million
in 2020.
Beerenberg’s net cash outflow for investing activities was
NOK 39 million in 2021, up from NOK 17 million.
Net cash flow related to financing activities was NOK
-16 million, down from NOK -188 million in 2020. The
high cash outflow in 2020 is related to refinancing of the
bond in 2020.
Total non-current assets were NOK 1033 million in 2021,
down from NOK 1037 million in 2020. Current assets were
NOK 796 million in 2021, up from NOK 638 million.
Total current liabilities were NOK 601 million in 2021, up
from NOK 507 million and total non-current liabilities were
NOK 682 million in line with NOK 682 million in 2020.
The Net interest-bearing debt was NOK 551 million in 2021
compared to NOK 601 million in 2020.
Shareholders
Segulah IV L.P. owns 83,9 % of the shares in Beerenberg AS.
The remaining shares are held by Alpinvest Partners
Co-Investment, previous and current board members and
the Beerenberg management.
Financial risk
The board of directors of the Beerenberg group sets out a
framework and develops guidelines for risk management
in the group and continuously controls and supervises
the implementation of these. The group’s central finance
department has overall responsibility for day-to-day
manage ment and follow-up of the group’s financial risks
and works closely with the operational units to identify,
evaluate and implement necessary measures to reduce
risk. Risk management covers credit risk, currency risk,
interest rate risk, financial and liquidity risk, market risk
and technology risk.
Credit risk
The Beerenberg group conducts business in an environ-
ment dominated by large clients with high credit ratings,
and historically there have been few losses incurred on
its receivables. New customers are credit-checked before
entering contracts, and eorts are made during inter-
national operations to use letters of credit to safeguard
receivables and payment demands wherever possible. The
oil and gas market have elements of increased credit risk.
To deal with these, the group has introduced additional
measures to monitor credit risk within certain client
segments, especially maintenance, modifications and for
international clients.
The ongoing Covid-19 pandemic and the strict sanctions
that have been imposed against Russia and Belarus might
increase the credit risk. Beerenberg group is actively moni-
toring the clients risks in that aspect.
Currency and interest rate risk
A key principle for the Beerenberg group is to keep the
currency risk as low as possible by using the same currency
for both income and expenditure. In its international
operations the group is not always able to follow this prin-
ciple and as a result client and supplier contracts involving
currency exposure beyond defined limits should be hedged.
A limited amount of the group’s revenues, expenditure and
investments are denominated in foreign currencies. The
group’s interest rate risk in relation to interest-bearing debt
is for the most part hedged through a long-term interest rate
agreement, whereby a variable NIBOR-based interest rate
plus a spread has been swapped so that exposure towards
fluctuations in the short-term interest rate is reduced.
Financial and liquidity risk
The group´s financing arrangement requires it to achieve
adequate cash flow and revenues over time. The group
continues to measure the financial criteria in line with the
terms of the agreement.
The Beerenberg group’s financing is partly a bond loan with
expiry date November 2023. The bond was listed in 2nd
quarter of 2021. In addition, the group has a revolving credit
facility in a commercial bank.
Market risk
The Beerenberg group operates in the oil and gas market,
which due to price fluctuations can be volatile. Beerenberg
is aected by the oil companies’ actions and the prevailing
oil and gas prices. To mitigate this, Beerenberg has diversi-
fied into various segments of the market, e.g., new-build
ANNUAL DIRECTOR’S REPORT
38
and maintenance and modification projects. Beerenberg
is also expanding internationally, with the proprietary
Benarx® product range and it is looking into related market
segments, such as infrastructure for both products and
services.
There is reason to believe that investment growth on the
Norwegian Continental Shelf will abate in the long term.
To expand its operations and customer base, the group has
therefore been working to grow its international presence.
The current European energy situation, after the Russian
Ukraine invasion, might influence the level of maintenance
and investments in oil and gas. The consequences of the
acts of war are uncertain.
Technology risk
The market in which Beerenberg operates will continue
to seek improved solutions and products for the future.
To maintain its competitive edge, the group has adopted a
strategy of continued investment in engineering services,
digitalization, and R&D along with an ambition to protect
its assets through patents and other proprietary rights.
Research and development
In regard to research and development, The Beerenberg
group’s focus is on product and method development in the
field of ISS. Beerenberg is working actively with research
communities and institutions to develop new technology
and in-house expertise within the group’s areas of opera-
tion. Research and development are conducted in close
partnership with clients to create value for the group’s
customers.
The Beerenberg group´s continuous focus on research and
development has resulted in 16 registered patent families
with 55 regional and national patents, 1 PCT/regional
application per 31.12.21.
Sustainability governance
For Beerenberg, the attention to ESG is fundamentally
about safeguarding our own future, securing sustainable
conditions for the environment, and helping a positive
social development.
ESG is linked to the long-term success of Beerenberg.
It is our vision to go “Beyond expectations” to seek solu-
tions that exceed the expectations of stakeholders, and we
therefore have a responsibility to drive necessary changes,
while continually seeking out and creating more sustain-
able solutions. We have consistently been working on our
HSEQ performance and we have worked on strengthening
our approach to the wider ESG scope. In 2021 the group
developed and implemented a ESG strategy in line with
recognized ESG frameworks and stakeholder expectations.
Social responsibility and ethics
Beerenberg’s annual report includes a separate account
of the group’s approach, conduct and guidelines in relation
to social responsibilities and ethics. The group´s ethical
guidelines are a central part of its training programmes as
training in the group’s ethical guidelines helps ensure that
employees and others acting on behalf of the group exercise
good judgement and behave in a manner that is consistent
with the group´s ethical rules.
Human relations, organisation and working
environment
Human relations and working environment
The Beerenberg group had 1,253 employees as at 31.12.21,
up from 1,203 at the end of 2020. Including contractors, the
number of FTEs totalled 2,326.
Beerenberg seeks to sustain a good working environment
with enthusiastic and motivated sta who feel that they are
being well looked after. The group has sta arrangements
and fora for co-operation between sta and management,
as is common within the sector.
Equality and discrimination
Beerenberg has respect for every individual and recruitment
is based on qualifications without regard for the candidate’s
gender, age, disability, sexual orientation, ethnicity, religion,
or cultural background. Beerenberg wishes to create an
inclusive workplace culture and is working actively to ensure
a good working environment. All employees shall be given
salary and working conditions that are competitive and fair.
It is Beerenberg’s ambition to increase the proportion of
women at all levels within the organisation by taking a sys-
tematic approach to recruitment and enabling development
39
and growth within the organisation. Female employees,
most of whom serve in administrative positions, made up
6.2 % of the workforce at year end. In 2021 there were one
woman in the group management team and two women
on the board of directors.
Beerenberg has made a separate report to document the
work implemented according to “The activity duty and
the duty to issue a statement”. The report could be read at
www.beerenberg.com.
Organization
The group is organised as two business divisions – Services
and Benarx. The group established a subsidiary in Thailand,
Beerenberg Holding (Thailand) LTD, through reorganizing
the business in Thailand.
Health, Safety and the Environment
Beerenberg continuously works to prevent injury and to
create a working environment that is meaningful and healthy
for all employees. Beerenberg has adopted a zero-tolerance
philosophy in relation to injury to people, damage to the
natural environment and material assets. The eort to
prevent acute damage to health and injuries is a high priority
for Beerenberg. By focusing on training, health monitoring,
risk management and robust working practices, Beerenberg
seeks to reduce the risk of health issues and injuries amongst
employees exposed to risk. Beerenberg’s health monitoring
programme also applies to our subcontractors and is man-
aged through contract meetings, reporting and audits.
Good working practices, job planning, and procedures alone
are not enough to prevent sickness and injury. The key issue
is compliance, whereby the knowledge and motivation of
individual employees are key factors. Beerenberg’s commit-
ment to HSE includes (but is not limited to) obligatory HSE
training for all employees and contractors as well as a three-
day HSE course for all managers.
Central to Beerenberg’s preventive HSE programme are also
various surveys designed to strengthen our knowledge base,
identify risk and associated HSE measures.
The group is working to reduce sickness absence, both at a
collective and an individual level. Sickness absence in 2021
stood at 8,3 %, an increase from 7 % in 2020. Short-term
sickness absence accounted for 4.0 % and long-term absence
for 4.3 %. The corresponding figures for 2020 were 3.7 % and
3.3 %, respectively.
In 2021, Beerenberg recorded 23 Incident involving personal
injured requiring more than first aid; Four Serious Lost Time
injuries (SLT), Nine lost time injuries (LTI), where Eleven
injuries required medical treatment and ten of those were
resolved with alternative work.
Beerenberg continues its systematic and preventive approach
to reducing the number of incidents.
The natural environment
When conducting its operations, Beerenberg aims to
minimize the environmental impact and the group aims to
continuously improve its environmental performance.
Beerenberg’s impact on the natural environment is primar-
ily considered to stem from emissions of volatile organic
compounds (VOCs) because of the use of paint products
and solvents. This is a natural consequence of the group’s
activities, and the volume of VOC emissions will always
reflect the volume of assignments and the type of products
being ordered and delivered. Beerenberg endeavours to
use alternative products and services that help reduce the
environment footprint and with a lesser impact on the
environment where possible (the substitution requirement).
To reduce the negative environmental eects of its waste
output, Beerenberg has introduced robust procedures for
waste disposal and final processing (material and energy
harvesting). The work of reducing microplastics is at the
top of Beerenberg´s agenda through extended use of robots
to collect microplastic.
Beerenberg is certified according to NS-EN ISO 9001:
2015 Quality management, NS-EN ISO 14001:
2015 Environmental management, and NS-ISO 45001:
2018 Occupational health and safety.
Future prospects
Beerenberg’s strategy plan was revised in the autumn
of 2021. The plan provides a framework for the group’s
development up until 2024. The Groups priorities in the
period includes invest in people, invest in sustainability and
invest in technology.
ANNUAL DIRECTOR’S REPORT
40
We expect that the maintenance and modifications market
will grow in the coming years. The group’s long-term
contracts over 10 and 15 years will provide a solid base for
the group going forward. Yet it is important to note that the
market is shaped by external factors, especially the price of oil.
Throughout 2021, the group has taken steps to boost its
competitiveness and these initiatives will continue. Together
with the group’s robust foundations, this means the group
expects to maintain its revenues and see long term growth.
The board emphasis that the information included in this
annual report contains certain forward-looking statements
that address activities or developments that the Company
anticipates will or may occur in the future. The statements
are based on assumptions and estimates, and some of them
are beyond the Company’s control and therefore subject to
risks and uncertainties.
Management and board liability Insurance
Management and board liability Insurance has been
established for the board members and management. The
insurance covers any personal liability that they may incur
in connection with the performance of their duties. The
insurance is established on market terms in an international
insurance company with a solid rating.
The board’s statement on corporate governance
and executive management
The board of directors has directed the company and the
group to develop procedures and systems for compliance with
the Norwegian Code of Practice for Corporate Governance.
The associated statement is presented as a separate part of
the annual report.
The board’s assessment and events
after the balance sheet date
When this annual report is published, Russia has invaded
Ukraine and strict sanctions have been imposed against Russia
and Belarus. The consequences of the acts of war are uncertain.
The Beerenberg Group has insignificant activities in and
exposure to these countries but is following developments
closely to detect any changes in our risk assessment.
In the board’s view the financial statements and statement
of financial position with accompanying notes provide a true
picture of the activities of Beerenberg AS and of the group’s
position at year end.
In accordance with Section 3-3a of the Norwegian Accounting
Act, the board can confirm that the requirements for the going
concern assumption have been satisfied and that the financial
statements have been prepared on that basis.
BERGEN APRIL
Board of Directors at Beerenberg AS
Arild Apelthun
CEO
Hilde Drønen Morten Walde
Geir M. Aarstad Sebastian Ehrnrooth Ingelise Arntsen
Chairman
41
BEERENBERG AS GROUP
Group
Accounts
Consolidated Income Statement 44
Consolidated Statement of Comprehensive Income 45
Consolidated Statement of Financial Position 46
Consolidated Statement of Changes in Equity 48
Consolidated Statement of Cash Flows 49
Note 1 Information about the group 50
Note 2 Basis of preparation 50
Note 3 Accounting principles 51
Note 4 Financial risk management 58
Note 5 Segment 61
Note 6 Revenues 63
Note 7 Other operating costs 64
Note 8 Personnel costs 64
Note 9 Finance income and finance costs 65
Note 10 Tax 65
Note 11 Property, plant and equipment 67
Note 12 Intangible assets and Goodwill 68
Note 13 Financial instruments 70
Note 14 Inventory 74
Note 15 Bank deposits and cash equivalents 74
Note 16 Share capital and shareholder information 74
Note 17 Employee benefits – pensions 75
Note 18 Remuneration of key employees 75
Note 19 Warranty liabilities and provisions 76
Note 20 Other short-term liabilities 76
Note 21 Contingent outcomes 77
Note 22 Related parties 77
Note 23 Group entities 78
Note 24 Derivatives 79
Note 25 Interest-bearing liabilities 80
Note 26 Secured liabilities 81
Note 27 Events after the reporting date 81
42
43
BEERENBERG AS GROUP GROUP ACCOUNTS 2021
BEERENBERG AS
GROUP ACCOUNTS
Consolidated Income Statement
Amounts in NOK 1,000 Note 2021 2020
Revenue from contracts with customers 2 128 301 1 695 323
Other revenue 7 718 27 404
Total revenue 5, 6 2 136 019 1 722 727
Materials, goods and services 165 859 196 170
Personell costs 81718 1 430 805 1 033 406
Other operating costs 7 322 904 276 446
Total operating expenses 1 919 568 1 506 022
Operating result before depreciation, amortisation and impairment losses 216 451 216 706
Depreciation, amortisation and impairment losses 11, 12 63 382 70 931
Operating result 153 069 145 775
Financial revenue 9 2 153 2 575
Financial expenditure 9, 25 84 368 93 392
Result before tax 70 854 54 958
Ta x 10 14 421 8 478
Annual profit/loss 56 433 46 480
The annual profit/loss is attributable to:
Shareholders of the parent company 57 760 47 121
The annual profit/loss is attributable to:
Non controlling interests -1 327 -641
Annual profit/loss 56 433 46 480
Basic earnings per share for 1 000 000 A-shares 16 0,056 0,046
Diluted earnings per share are identical as there is no dilutive effect.
The accompanying notes 1–27 are an integral part of these financial statements.
4444
GROUP ACCOUNTS 2021 BEERENBERG AS GROUP
BEERENBERG AS
GROUP ACCOUNTS
Consolidated Statement of Comprehensive Income
Amounts in NOK 1,000 Note 2021 2020
Annual profit/loss 56 433 46 480
Amounts in NOK 1,000 Note 2021 2020
Other revenue and expenses
Change in value of derivatives 24 6 100 -49
Conversion differences -3 379 -1 083
Total Comprehensive Income 59 153 45 347
Comprehensive income is attributable to:
Shareholders of the parent company 60 481 45 988
The statement of performance is attributable to:
Non controlling interests
-1 327 -641
Total Comprehensive Income 59 153 45 347
Other revenue and expenses is after tax and will be reversed in the income statement.
The accompanying notes 1–27 are an integral part of these financial statements.
4545
BEERENBERG AS GROUP GROUP ACCOUNTS 2021
BEERENBERG AS
GROUP ACCOUNTS
Consolidated Statement of Financial Position
Amounts in NOK 1,000 Note 31122021 31122020
Assets
NONCURRENT ASSETS
Intangible assets 12 19 246 31 057
Goodwill 12 782 762 782 762
Property, plants and equipment 11, 26 208 340 213 563
Financial fixed assets 17, 24 20 221 9 874
Deferred tax assets 10 3 010 0
Total Noncurrent assets 1 033 579 1 037 256
Amounts in NOK 1,000 Note 31122021 31122020
Assets
CURRENT ASSETS
Inventory 14, 26 77 790 66 250
Accounts receivable from customers 6, 13, 26 306 387 249 611
Earned, not invoiced accounts receivables 6, 13, 21 195 220 143 998
Other receivables 13 23 701 39 196
Cash at bank 13, 15 193 345 139 733
Total current assets 796 443 638 787
Total Assets 1 830 022 1 676 043
4646
Hilde Drønen Morten Walde Arild Apelthun
CEO
Geir M. Aarstad Sebastian Ehrnrooth Ingelise Arntsen
Chairman
BEERENBERG AS
GROUP ACCOUNTS
Amounts in NOK 1,000 Note 31122021 31122020
Equity and Liabilities
EQUITY
Share capital 26 700 26 700
Share premium 240 310 240 310
Other equity 279 531 219 050
Non controlling interests -113 811
Total equity 16 546 428 486 871
Amounts in NOK 1,000 Note 31122021 31122020
Equity and Liabilities
LIABILITIES
Pension liabilities 17 17 322 12 175
Deferred tax liabilities 10 0 339
Interest bearing long-term liabilities 13, 25, 26 665 173 668 384
Derivatives 24 0 1 122
Total long-term liabilities 682 495 682 019
Interest bearing short-term liabilities 13, 25, 26 78 861 70 757
Supplier liabilities 188 014 135 285
Tax payable 10 18 520 12 050
Social security, VAT and other taxes 90 967 72 326
Other short-term liabililities 20, 21 203 210 196 943
Warranty liabilities 19 21 527 19 792
Total short-term liabilities 601 099 507 153
Total liabilities 1 283 594 1 189 172
Total equity and liabilities 1 830 022 1 676 043
The accompanying notes 1–27 are an integral part of these financial statements.
BERGEN APRIL
Board of Directors at Beerenberg AS
4747
BEERENBERG AS GROUP GROUP ACCOUNTS 2021
Amounts in NOK 1,000
Share
capital
Share
premium
Conver-
sion
reserve
Hedging
reserve
Retained
earnings Total
Non
controlling
interests Total
Equity as per 31.12.2019 26 700 240 310 3 413 -826 170 475 440 072 0 440 072
Annual result for the period 47 121 47 121 -641 46 480
Other Comprehensive income -1 083 -49 -1 133 -1 133
Transactions with shareholders
Changes in non-controlling interests
Equity as per 31.12.2020 26 700 240 310 2 329 -875 217 596 486 060 811 486 871
Annual result for the period 57 760 57 760 -1 327 56 433
Other Comprehensive income -3 379 6 100 2 721 2 721
Transactions with shareholders
Changes in non-controlling interests
Equity as per 31.12.2021 26 700 240 310 -1 050 5 225 275 356 546 541 -113 546 428
The accompanying notes 1–27 are an integral part of these financial statements.
BEERENBERG AS
GROUP ACCOUNTS
Consolidated Statement of Changes in Equity
4848
GROUP ACCOUNTS 2021 BEERENBERG AS GROUP
Amounts in NOK 1,000 Note 2021 2 020
Cash flows from operating activities
Result for the period before tax 70 854 54 958
Tax paid for the period -15 565 -16 418
Gains/losses from sales of fixed assets -2 935 -60
Depreciation, write-down and amortisation 11, 12 63 382 70 896
Changes to inventory 14 -11 541 -5 089
Changes to accounts receivable from customers 13 -56 777 1 981
Changes to supplier liabilities 52 728 -26 525
Difference between expensed and paid-in/out pension premium 1 497 29
Changes to other time restricted items 7 729 7 736
Net cash flow from operating activities 109 372 87 508
Amounts in NOK 1,000 Note 2021 2020
Cash flows from investment activities
Incoming payments from the sale of tangible and intangible fixed assets 11 3 186 91
Outgoing payments from acquisition of tangible and intangible fixed assets 11, 12 -42 663 -17 109
Net cash flow from investment activities -39 477 -17 018
Amounts in NOK 1,000 Note 2021 2020
Cash flows from financing activities
Outgoing payments on lease liabilities 13, 25 -15 866 -19 085
Incoming payments on long-term loans 13, 25 50 000 680 076
Outgoing payment on long-term loans 13, 25 -50 822 -850 000
Payments from entry of non-controlling interests 23 404 1 452
Net cash flow from financing activities -16 284 -187 556
Net changes to cash and cash equivalents 53 612 -117 067
Cash and cash equivalents per 01.01 139 733 256 800
Cash and cash equivalents per 31.12 15 193 345 139 733
The accompanying notes 1–27 are an integral part of these financial statements.
BEERENBERG AS
GROUP ACCOUNTS
Consolidated Statement of Cash Flows
4949
BEERENBERG AS GROUP GROUP ACCOUNTS 2021
Note 1 Information about the group
Beerenberg AS is a limited liability company registered
in Bergen, Norway. The Beerenberg Group comprises
the parent company Beerenberg AS and the subsidiaries
Beerenberg Holding AS, Beerenberg Services AS,
Beerenberg Industri AS, Beerenberg Solutions Poland Sp.
z o.o, Beerenberg Korea LTD, Beerenberg Singapore LTD,
Beerenberg UK LTD, Beerenberg Holding (Thailand) LTD
and Beerenberg (Thailand) Co., LTD.
The head oce is in Bergen and the group has oces in
Stavanger and Skien in Norway, in Singapore, Poland,
South-Korea and in Thailand.
The group delivers expertise and technology as well as
engineering and inspection services in the fields of surface
treatment, passive fire protection, insulation, architecture/
interiors, scaolding, Rope access techniques, and habitats as
well as mobile machining, cutting and decommissioning.
The consolidated financial statements comprise the parent
company and subsidiary companies, referred to collectively
as “the group” and individually as “group entities”.
Refer to note 16 for ownership structure.
The annual financial statements were authorised for issue by
the board of directors on 26 April 2022.
Note 2 Basis of preparation
Confirmation of financial framework
The consolidated financial statements have been prepared
in accordance with EU-approved IFRS standards and associ-
ated interpretations as required as at 31 December 2021 and
in accordance with additional Norwegian disclosure require-
ments under the provisions of the Norwegian Accounting
Act as at 31 December 2021. There have been no changes in
accounting principles from 2020 to 2021.
The proposed consolidated financial statements were author-
ised by the board and CEO on the date stated in the signed
statement of financial position. The consolidated financial
statements shall be reviewed by an ordinary general meeting
for final approval.
FUNCTIONAL CURRENCY AND PRESENTATION
CURRENCY
The consolidated financial statements are presented in NOK,
which are both the functional currency of the parent com-
pany and the presentation currency of the group.
The accounts of individual entities within the group
are measured in the currency used where the entity
predominantly operates (functional currency). The group
have subsidiaries in Poland, UK, Thailand, Singapore and
Korea where the functional currency is PLN, GBP, THB,
SGD and KRW respectively. However, of the groups consoli-
dated revenue more than 90% is in NOK, thus changes in
currencies have limited impacts on the consolidated figures
BASIS OF CALCULATIONS
The consolidated financial statements have been prepared
using historical cost principles, with the exception of
▪ Derivatives, which are assesed at fair value.
5050
GROUP ACCOUNTS 2021 BEERENBERG AS GROUP
Note 3 Accounting principles
The accounting principles described below have been con-
sistently applied to all companies in the group in all periods.
Consolidation principles
SUBSIDIARY COMPANIES
The subsidiary companies include all entities where the group
has a deciding influence on the entity’s financial and opera-
tional strategy, normally through the ownership of more than
50% of the voting capital, and where the entity constitutes an
enterprise. Subsidiaries are consolidated from the date when
control was transferred to the group. Consolidation ceases on
the date when the group no longer has control.
Acquired subsidiaries are accounted for in the consolidated
financial statements based on the parent company’s acquisi-
tion cost. When acquiring a subsidiary company, the purchase
price of the acquired undertaking must be distributed so that
the opening balance of the group reflects the estimated fair
value of the assets and liabilities that have been acquired. In
order to establish the fair value of an acquisition, alternative
methods must be used for assets for which there is no active
market. Excess value beyond that which can be attributed to
identifiable assets and liabilities is recognized as Goodwill. If
the fair value of the equity in an acquired company exceeds the
consideration paid, the excess is immediately recognized as
income. The allocation of the purchase price upon consolida-
tion is amended if new information appears about the fair
value applicable on the date control was obtained, no later
than 12 months after the acquisition took place.
Intragroup transactions, balances and unrealised gains are
eliminated. Unrealised losses are also eliminated but are con-
sidered to be an indicator of impairment, which would require
an assessment to be made as to whether the transferred asset
should be written down.
Group entities
The statements of financial position and comprehensive
income of group entities with a functional currency that dif-
fers from the presentation currency are translated as follows:
a) The statement of financial position is translated using
the exchange rate at the end of the reporting period
b) The statement of comprehensive income is trans-
lated using the average exchange rate (if the average
exchange rate does not give a reasonable overall
estimate for the transaction exchange rate, then the
transaction exchange rate is used)
c) Translation dierences are taken to other revenues
and costs and are specified as a separate item.
Conversion reserve
This fund is a part of the statement of equity and includes
all foreign exchange dierences related to the conversion of
financial statements from foreign subsidiaries.
Financial instruments
The group initially recognizes financial instruments on the
date the group becomes a party to the contractual provisions
of the instrument.
CLASSIFICATION AND MEASUREMENT
The group classifies its financial assets in the categories
(1) amortized cost (2) financial assets at fair value through
other comprehensive income (3) financial assets at fair value
through profit or loss. Classification is dependent on the objec-
tive of the financial instrument and the groups business model.
AMORTIZED COST
Financial instruments that the group holds in order to
receive contractual cash flows is recognized at fair value and
is in subsequent periods measured at amortized cost. This
mainly relates to financial instruments as trade receivables,
other receivables and bank deposits.
Financial liabilities are recognized at fair value and are
measured, as a main rule, in subsequent periods at amortized
cost. Financial liabilities like trade payables, leasing, bond,
and other liabilities are classified as amortized cost.
If an impairment in the fair value of a financial asset has been
taken directly to other income and expenses, and if there is
objective evidence that the asset has been the subject of an
impairment, the accumulated loss that has been recognized
directly in other income and expenses in profit or loss will
be recognized. This applies even if the financial asset has
not been realised. The loss recognized in profit or loss is the
dierence between the acquisition cost at the time of acquisi-
tion and the current fair value, less any impairment of the
financial asset previously recognized in profit or loss.
With the exception of inventories (see Inventories) and
deferred tax assets (see Income tax), the carrying amount
of the group’s financial assets is continually assessed to
determine whether there is any indication of impairment.
If any such indication exists, the asset’s recoverable amount
is estimated.
5151
BEERENBERG AS GROUP GROUP ACCOUNTS 2021
FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
The group has entered into an interest swap in order to
reduce the risk of variable interest rate on Bond. This interest
swap is designated as a hedge instrument in hedge account-
ing in accordance with IFRS 9, and changes in fair value of
this interest swap is recognized through other comprehen-
sive income. Details of this interest swap is further described
in note 24.
FAIR VALUE THROUGH PROFIT OR LOSS
By default, other financial instruments that are not classi-
fied as amortized cost or designated as a hedge instrument
and recognized as fair value through other comprehensive
income is recognized as fair value through profit or loss.
Derivatives are classed as financial assets at fair value
through profit or loss, unless they are part of a hedge
relationship. The only derivative the group have in 2021 is
designated as a hedge instrument, thus there are now no
financial instruments recognized through profit or loss
DERECOGNITION OF FINANCIAL INSTRUMENTS
The group derecognizes a financial asset when the contrac-
tual rights to the cash flows from the asset expire, or when
the group transfers the rights to receive the contractual cash
flows on the financial asset in a transaction in which substan-
tially all the risks and rewards of ownership of the financial
asset are transferred.
Trade receivables
Trade receivables are amounts due from customers for goods
sold or services performed in the ordinary course of business.
They are generally due for settlement within 30–45 days and
are therefore all classified as current. Trade receivables are
recognised initially at the amount of consideration that is
unconditional, unless they contain significant financing com-
ponents, when they are recognised at fair value. The group
holds the trade receivables with the objective of collecting
the contractual cash flows and therefore measures them
subsequently at amortised cost using the eective interest
method. Details about the group’s impairment policies and
the calculation of the loss allowance are provided in note 13.
Trade payables and other short-term
payables
Trade payables are measured at fair value when initially
recognized and at amortised cost in subsequent periods. Due
to their short residual maturity, the nominal value of the
payables is deemed to reflect their fair value / amortised cost.
Cash and cash equivalents
Cash and cash equivalents comprise cash and bank deposits.
Share capital
Ordinary shares are classed as equity. Costs directly attribut-
able to the issue of ordinary shares are recognized as a deduc-
tion from equity (share premium) net of any tax eects.
Tangible non-current assets
The group’s tangible non-current assets comprise production
equipment, workshops and improvements to buildings and
other operating equipment. Tangible non-current assets
are recognized in the statement of financial position at cost
less accumulated depreciation and write-downs. The cost
price of tangible non-current assets is the purchase price
including expenses directly attributable to the purchase of
the asset. The cost of self-constructed assets includes the cost
of materials, direct labour costs, borrowing costs and other
costs directly attributable to bringing the assets to a working
condition for their intended use, the cost of dismantling and
removing the items, and restoring the site on which they are
used.
Expenses incurred after the non-current asset has been put
into use, such as ongoing daily maintenance, are recognized
in profit or loss in the period in which they were incurred,
except for other expenses expected to generate future
economic benefits that are recognized as a part of the non-
current asset.
If substantial, individual components of an item of property,
plant and equipment have dierent useful lives, they are
accounted for as separate components.
Gains and losses on disposal are included in the operating
profit or loss.
Goodwill
The group measures Goodwill as the fair value of the consid-
eration transferred, less the net amount (normally fair value)
of the identifiable assets acquired and liabilities assumed, all
measured as at the acquisition date.
Goodwill is distributed to cash-generating units and is not
subject to an amortisation schedule but is tested for impair-
ment annually and when there is an indication that a write-
down is necessary. Goodwill write-downs are not reversed.
For the purpose of testing Goodwill for impairment, Goodwill
is allocated to the cash-generating units that are expected to
benefit from the acquisition.
Note 3 | Accounting principles
52
52
GROUP ACCOUNTS 2021 BEERENBERG AS GROUP
Intangible assets
RESEARCH AND DEVELOPMENT
Expenditure on research activities, undertaken with the
prospect of gaining new scientific or technical knowledge,
isrecognized in profit or loss as incurred.
Development activities include designs or plans for the
production of new or substantially improved products and
processes. Development expenditure is capitalized only if it
can be reliably measured, if the product or process is techni-
cally or commercially viable, if future economic benefits
are probable, and if the group intends to and has sucient
resources to complete the development and to sell or use the
asset. The expenditure capitalized includes materials, direct
labour, directly attributable overhead costs and borrowing
costs. Other development expenditure is recognized in profit
or loss as incurred.
Capitalized development expenditure is measured at cost
less accumulated amortisation and accumulated impairment
losses.
Depreciation
Property, plant and equipment are depreciated on a straight-
line basis over their estimated useful life. Depreciation
is calculated on the basis of the cost of the asset or other
amount substituted for cost, less its residual value.
The economic useful life of scaolding is assessed, and its
period of use has been set at 15 years. The period of use is the
period in which the group expects to use the scaolding and
may thus be shorter than its economic useful life. The period
of use and the residual value are assessed at the end of each
reporting period and adjusted if necessary. Scaolding is
depreciated over a period of 15 years.
Containers and workshops are depreciated over a period of
10 years, while other production equipment and other assets
are depreciated over a period of 3–7 years.
Intangible assets are amortised on a straight-line basis over
their estimated useful life from the time they are available
for use, since this most closely reflects the consumption of
the future economic benefits embodied in the asset. The
estimated useful lives for the current period and comparative
periods are as follows:
▪ Customer relationships 3–10 years
▪ Technology 5–10 years
Amortisation method, useful life and residual value are
reviewed annually and adjusted if necessary.
Impairment losses of non-financial assets
When the carrying amount of a non-current asset is higher
than the estimated recoverable amount, the value is written
down to the recoverable amount. The recoverable amount is
the greatest of fair value less cost to sell and its value in use.
The scope for reversing any previous write-downs (except
Goodwill) is assessed on each reporting date.
Goodwill and intangible assets with indefinite useful lives are
tested for impairment annually.
An impairment loss is recognized when the carrying amount
of an asset or cash-generating unit exceeds the recoverable
amount. Impairment losses are recognized through profit or
loss.
Impairments estimated for cash-generating units are allo-
cated so that the carrying amount of any Goodwill in the
cash-generating units is reduced first. Next, the remaining
impairment losses on the other assets in the unit are allo-
cated pro rata based on the carrying amount.
CALCULATING THE RECOVERABLE AMOUNT
The recoverable amount of an asset is the greater of the net
selling price (less cost to sell) and value in use. The value in
use is estimated by discounting expected future cash flows
to their present value using a market-based risk-adjusted
discount rate. For assets that do not generally generate
independent cash flows, the recoverable amount is deter-
mined for the smallest cash-generating unit to which the
asset belongs.
REVERSING IMPAIRMENT LOSSES
Impairment losses on Goodwill are not reversed. In respect
of other assets, impairment losses are reversed if there is any
change to the estimates used to calculate the recoverable
amount.
Lease agreements
IFRS 16 requires all contracts that contain a lease to be
recognized on the balance sheet as a right-of-use asset and
acorresponding lease liability. The lease liability represents
the net present value of the lease payments to be made
over the remaining lease period. The right-of-use asset is
depreciated over the lease term. For Beerenberg this mainly
applies to oce buildings and other facilities. Short-term and
low value lease agreements are exempted from IFRS 16 and
accounted for as operating expenses.
5353
BEERENBERG AS GROUP GROUP ACCOUNTS 2021
Note 3 | Accounting principles
Inventories
Inventories are measured at an amount equal to the lower of
acquisition cost and net realisable value. The net realisable
value is the estimated selling price in the ordinary course of
business less the estimated cost of completion and selling
expenses. The acquisition cost of manufactured inventories
includes the direct cost of materials, direct labour and a
share of indirect production overheads, while the acquisition
cost of purchased inventories is the cost price based on the
first-in-first-out principle and includes the cost incurred
in acquiring the inventories, production or conversion
overheads and other costs incurred in bringing them to their
existing location and condition. In accordance with IAS 2.28,
the value of inventories is written down to the net realisable
value if the inventories have been damaged or have become
wholly or partially obsolete or if the selling price has fallen.
Pension costs and pension obligations
Pension costs and pension obligations are treated in accord-
ance with IAS 19R. Pensions are described in Note 17. The net
pension costs for the period are classed as salary and person-
nel costs.
The group operates a pension scheme financed by contribu-
tions paid into a separate legal entity (insurance company) in
the form of a defined contribution plan. A defined contribu-
tion plan is a pension scheme under which the group pays
fixed contributions to the insurance company. The group
has no further payment obligations once the contributions
have been paid. The contributions are recognized in profit
or loss as salary costs as incurred. Prepaid contributions are
recognized as assets to the extent that they can be refunded
or reduce future contributions.
The group is also participant in the AFP scheme which is a
pension-scheme that pays a lifelong supplement to ordinary
pension benefits.
The group has in addition to the ordinary pension scheme
also a supplementary pension plan for executive manage-
ment and key employees.
Provisions
Provisions are accounted for when the group has an obliga-
tion (legal or self-imposed) resulting from a previous event
if it is likely (more likely than not) that a financial settlement
will take place as a result of this obligation and the size of the
amount can be reliably calculated. If the eect is significant,
the provision is calculated by discounting expected future
cash flows with a discount rate before tax that reflects the
market’s valuation of the time value of money and, if relevant,
risks specifically linked to this obligation.
WARRANTIES
A provision for warranties is recognized when the under-
lying products or services are delivered. The warranty period
is normally 2-5 years. At the end of a project, a provision
is made to meet any warranty claims and complaints. The
provision is based on historical information about warranties
weighted by the probability that a warranty expense will be
incurred. It is normal for such provisions to be a fixed propor-
tion of the contract value, but a larger or smaller provision
may be made depending on the specific assessment of indi-
vidual projects. Experience from previous projects provides
the best basis for making both general and specific warranty
provisions. Factors that may aect the size of the provision
include the group’s quality measures and project implemen-
tation model.
RESTRUCTURING
A provision for restructuring is recognized once the group
has approved a detailed and formal restructuring plan and
the restructuring has either commenced or been communi-
cated to the aected parties.
ONEROUS CONTRACTS
A provision for onerous contracts is recognized when the
group’s expected revenue from a contract is lower than the
unavoidable cost of meeting its contractual obligations. The
estimated provision is the present value of the lower of the
expected cost of terminating the contract and the expected
net cost of fulfilling the contract. Before a provision is made,
all impairment losses on assets associated with the contract
are recognized.
Revenue recognition
REVENUES FROM SALE OF SERVICES
Most of the group’s revenue is associated with long-term
maintenance contracts. Revenues are recognized in accord-
ance with IFRS 15 Revenue from contracts with customers.
The groups primarily customers are within onshore/oshore
oil service. The contracts are invoiced and recognized as
income on basis of hours incurred multiplied by a defined
hourly rate associated with the services provided, unit price
contracts are recognized as income in accordance with meas-
ured progress and equipment rental is recognized as income
in the period the equipment is hired out.
As a general rule, these contracts are agreed with a fixed
price per unit (unit price contracts) or a fixed price per hour,
and variations thereof. What constitutes a unit varies from
contract to contract, but as an example it may be a square
metre of surface treatment.
At the end of each billing period, the group reports to the
customer the number of hours and/or number of units
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GROUP ACCOUNTS 2021 BEERENBERG AS GROUP
completed in the period. The former is based on the recorded
and approved number of hours, while the latter is based on
physical progress. The customer reviews the supporting
documentation and issues a payment certificate to the group.
On the basis of the payment certificate, the group recognizes
the revenue for the period as income and bills the customer.
By having the customer review the documentation of work
completed and issue a payment certificate, the revenue has
the prior approval of the customer.
On smaller projects, the work carried out in the period is
billed and recognized as income based on work completed or,
as a general rule, based on approved timesheets, but without
the customer issuing a payment certificate in advance. Some
smaller projects are also billed and recognized as income
upon completion of the project. These types of projects will
rarely stretch over multiple reporting periods.
If the outcome of a contract cannot be measured reliably,
the contract revenues are recognized only to the extent that
the incurred contract expenses are expected to be met by
the customer. An expected loss on a contract is recognized in
profit or loss as incurred.
REVENUES FROM SALE OF GOODS
Revenue from the sale of goods is recognized when persua-
sive evidence exists that control of the goods have been
transferred to the buyer. For sales of the group’s products,
transfer normally occurs once the product is received at the
customer’s warehouse or installation.
In some contracts, the delivery of materials is incorporated
in the fixed hourly price or the fixed unit price. In other cases,
the delivery of materials is billed separately. The delivery of
materials is recognized as income when the materials have
been put into use on a project or transferred to the customer
in some other way.
REVENUES FROM HIRING OF EQUIPMENT
Normally revenue from hiring of equipment is considered
as revenue from sale of service as the letting of scaolding
is part of the same performance obligation. The group also
have some letting of scaolding without connection to
revenue from sale of service. Such letting of scaolding and
other equipment is invoiced and recognized as income in the
period it has been let.
ACCRUED, NOT INVOICED CONTRACT REVENUES
Accrued, not invoiced contract revenues represent the value
of completed contract work less payment from the customer.
The value of completed contract work is measured at cost
plus accrued net profit to date. Payment from customers is
oset in the statement of financial position against contract
work in progress. Received customer advances in excess of
value of work performed are classified as current liabilities.
Government grants
The group receives various types of government grants in
relation to its research and development activities. These
may be funding through the SkatteFUNN scheme or other
grants. Such grants, whereby the group is compensated for
expenses incurred, are systematically recognized in profit or
loss over the period that the expenses are recognized. Grants
that compensate the group for the cost of an asset are recog-
nized in profit or loss over the useful life of the asset.
The group also applies for other government support
schemes where the group is qualified. Such grants are recog-
nized as other revenue in the period received.
Finance income and finance costs
Finance income comprises interest income on funds invested
during the year. Finance costs comprise interest costs
incurred during the year.
Foreign currency gains and losses are reported on a net basis.
Income tax and deferred tax
Income tax expenses comprise current and deferred tax. Tax
is recognized in profit or loss, except when it relates to items
taken to other income and expenses or directly to equity or
are linked to business combinations. If this is the case, the
tax is also taken to other income and expenses or directly to
equity.
Tax payable for the period is calculated in accordance with
tax laws and rules that have been enacted, or substantially
enacted, by the tax authorities at the end of the reporting
period. Taxable income is calculated on the basis of the
legislation in the countries in which the group’s subsidiaries
operate and generate taxable income.
Using the liability method, deferred tax is calculated on all
temporary dierences between the tax value and consoli-
dated accounting value of assets and liabilities. The following
temporary dierences are not taken into account:
▪ Goodwill that is not tax deductible
▪ Initial recognition of assets or liabilities that aects
neither accounting nor taxable profit or loss
▪ Dierences relating to investments in subsidiaries that
are not likely to reverse in the near future
Deferred tax is calculated using tax rates and tax legislation
that have been enacted, or substantially enacted, at the end of
the reporting period.
5555
BEERENBERG AS GROUP GROUP ACCOUNTS 2021
Deferred tax assets are recognized to the extent that it is
probable that future taxable income will be generated against
which the deductible temporary dierences can be realised.
Deferred tax assets and deferred tax liabilities are oset if
there is a legally enforceable right to oset them.
Statement of cash flows
The group’s consolidated statement of cash flows shows the
group’s total cash flows spread over operating, investing and
financing activities. The statement shows the eect of each
activity on the group’s liquid assets.
The cash flow statement is prepared using the indirect
method. Cash and cash equivalents include cash, bank
deposits and other short-term highly liquid investments with
insignificant risk convertible into known amounts of cash
with maturities less than three months from acquisition date.
Cash flows from operating activities is based on result before
tax, and adjusted for change in working capital and deprecia-
tion. Thus, interest paid are presented as part of the operat-
ing cashflow.
Earnings per share
Basic earnings per share and diluted earnings per share are
presented for ordinary shares. Basic earnings per share are
calculated by dividing the profit or loss for the period attrib-
utable to ordinary shareholders of the group by the weighted
average number of ordinary shares outstanding during the
period, adjusted for own shares held. Diluted earnings per
share are determined by adjusting the profit or loss and the
weighted average number of ordinary shares outstanding,
adjusted for own shares held, for dilutive potential.
Determination of fair values
The group’s accounting principles and note information
require the determination of fair value for both financial and
non-financial assets and liabilities. Fair values are deter-
mined for measurement and/or disclosure purposes based on
the methods described below. If relevant, further informa-
tion about the assumptions made is disclosed in the notes
relating to the respective assets and liabilities.
TANGIBLE NONCURRENT ASSETS
The fair value of property, plant and equipment is recognized
at fair value if part of a business combination. The fair value
of plant, equipment, fixtures and fittings is based on the
market approach and cost approaches using quoted market
prices for similar items when available and replacement cost
when appropriate.
INTANGIBLE ASSETS
The fair value of customer relationships acquired in a busi-
ness combination is determined using the multi-period
excess earnings method. The value is established residually
by deducting a fair return on all other assets that together
with customer relationships generate the cash flows used in
the calculation.
The fair value of other intangible assets is based on the
discounted expected cash flows derived from the use and
subsequent sale of the assets.
INVENTORIES
The fair value of inventories acquired in a business combina-
tion is the estimated selling price in the ordinary course of
business less the cost of completion and sale, to include a
profit margin based on the eort required to complete and
sell the inventories.
TRADE RECEIVABLES AND OTHER RECEIVABLES
The fair value of trade and other receivables is estimated
as the present value of future cash flows, discounted at the
market rate of interest at the end of the reporting period (the
reporting date).
ACCOUNTS PAYABLE AND OTHER LIABILITIES
Trade payables are obligations to pay for goods and services
from suppliers to the ordinary operations and are measured
at fair value (historical cost)
Loans are recognized initially at fair value when the loan is
paid, net of transaction costs. In subsequent periods, loans
are measured at amortized cost using eective interest rate.
Other liabilities are measured at fair value.
Estimates and judgements
Preparing the financial accounts in accordance with IFRS
requires the management to make assessments, estimates
and assumptions that aect the application of the accounting
principles. The carrying amounts of assets and liabilities,
as well as revenues and costs, are aected by these assess-
ments. Actual results may deviate from estimated amounts.
Estimates and their associated assumptions are based on
historical data and other factors that are deemed to be rel-
evant and representative. These calculations form the basis
for assessing the amounts recognized in respect of assets and
liabilities that cannot be determined on the basis of other
sources.
Estimates and underlying assumptions are reviewed continu-
ally. Changes to accounting estimates are recognized in the
period in which they occur if they only apply to that period.
Note 3 | Accounting principles
56
56
GROUP ACCOUNTS 2021 BEERENBERG AS GROUP
If the changes also pertain to future periods, the eect is
distributed over the current and future periods.
Estimates and judgements are reviewed on an ongoing basis
and are based on historical information and other factors,
including assumptions and future events that are deemed
likely under the current circumstances.
ESTIMATESASSUMPTIONS
The group produces estimates and makes judgements/
assumptions about the future. The resulting accounting
estimates will rarely correspond fully to the final outcome.
Estimates and assumptions that entail a risk of substantial
changes in the carrying amounts of assets and liabilities
during the next accounting year are:
i) Revenue recognition – As described in the section
revenue recognition, often a measurement of physical
progress in the service delivery is applied, which in
some cases lead to use of estimates.
The most significant source of uncertainty in respect
of revenues from contracts with customers relates
to the estimation of supplementary work, additional
requirements and bonus payments that are recog-
nized as income to the extent that the group finds it
highly probable that a significant reverse of revenue
will not occur. For many projects, there may be sub-
stantial changes to the agreed scope of work that may
lead to a number of variations in contract work. It is
normal for contracts to contain provisions for how
such changes should be handled. At any given time
there will be unapproved variations in contract work
and requirements included in the contract revenues.
Although the management has extensive experience
in assessing the outcome of such negotiations, there
will always be an element of uncertainty.
The cost of completion depends on both productivity
factors and salary levels. Factors that may substantially
aect cost estimates, requirements and variations in
contract work include weather conditions, access to
work sites, the price of raw materials and other circum-
stances that may have an eect on time use.
Revenue recognition of contracts with mobilisation
and demobilisation costs requires assumptions to
be made about the duration of the contract, includ-
ing potential extension options, in order to allocate
expenses and revenues from the mobilisation/demo-
bilisation period over the delivery period. Changes in
the delivery period may result in adjustments being
made to the accrued amount.
ii) Goodwill – In accordance with the accounting prin-
ciples, the group performs tests annually, or more fre-
quently if necessary, to determine whether Goodwill
recognized in the statement of financial position
should be written down. The estimated recoverable
amount is calculated on the basis of the present value
of budgeted cash flows for the cash-generating unit.
The calculations require the use of estimates and that
they are consistent with the market valuation of the
group. Specific information about Goodwill and the
testing of carrying amounts is provided in Note 12
Intangible assets.
New and amended standards adopted by
the group
The group has applied the following standards and amend-
ments for the first time for the reporting period commencing
01.01.2021:
▪ Interest Rate Benchmark Reform phase 2 – amend-
ments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16
▪ Covid-19-Related Rent Concessions – amendments to
IFRS 16
The Covid-19-Related Rent concessions amendment has not
had any impact on the amounts recognized in prior periods
and is not expected to significantly aect the future periods.
The Interest Rate Benchmark Reform phase 2 amendment
address the issue that arise during the reform of an inter-
est rate benchmark rate, including the replacement of one
benchmark with an alternative one.
The group have financial agreements linked to the NIBOR
benchmark rate, most notably the Bond issue described in
note 25, and the interest rate swap described in note 24. The
NIBOR benchmark rate will be replaced by NOWA, however
the implementation date is not set. It is expected that future
financial agreements will be linked to NOWA instead of
NIBOR, but the expectation is that the major current agree-
ments will not be aected, as the maturity date of these is in
2023 when NIBOR is expected to be still available. The future
change of benchmark rate in financial agreements relevant
for the group is not expected to materially change the total
interest rate level in such agreements. Thus the eect of the
interest rate benchmark reform is expected to have limited
eect for the group.
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BEERENBERG AS GROUP GROUP ACCOUNTS 2021
Note 4 Financial risk management
As a global supplier of oil services, the group is exposed to
market risks, exchange rate risk and interest rate risk, credit
risk, inflation risk and liquidity risk.
The group has established procedures and guidelines for
setting appropriate risk levels for its main risks and for
monitoring its risk exposure. The group’s objectives for
capital management are to sustain the group’s position as a
going concern in order to generate a return for shareholders,
to be of benefit to other interested parties, and to maintain
an optimal capital structure in order to reduce the cost of
capital.
Risk management for the group is undertaken centrally in
accordance with guidelines approved by the board of direc-
tors. The group identifies, measures, manages and reports
financial risks in collaboration with the various operating
units.
Managing the capital structure involves actively monitoring
and adjusting the composition in accordance with changes in
financial and economic circumstances and in the risk linked
to underlying assets. In order to maintain the desired capital
structure, the group may refinance debts, buy or issue new
shares or debt instruments, or it may sell assets.
The group continuously monitors counterparties in order to
reduce risk relating to financing, investing excess liquidity,
bank balances from operations and derivatives. The group’s
guidelines impose limitations on exposure to individual
counterparties and contain procedures for identifying risk
factors when they occur.
The board produces principles for the risk management
policy and issues guidelines for specific areas such as
exchange rate risk, interest rate risk, credit risk, the use of
financial derivatives and other financial instruments and for
investing excess liquidity.
Exchange rate risk
The group predominantly operates in Norway, but some of
its activities are international and thus exposed to exchange
rate risks in several currencies. Exchange rate risks emerge
from current and future assignments and from recognized
assets. The group is exposed to exchange rate fluctuations
because a limited portion of the group’s revenue and cost is in
other currencies. According to group policy, customer- and
supplier contracts with exchange rate risk exceeding defined
limits shall be hedged.
The parent company uses NOK as its functional currency. An
assessment is made annually as to what is the actual func-
tional currency of each entity in the group.
The group has relatively insignificant investments in over-
seas subsidiaries where net assets are exposed to exchange
rate risks upon translation.
Sensitivity analyzes related to exchange rate fluctuations
is described in note 13. Normally these sensitivities are
calculated at +/− 10% change, but due to increased volatility
in exchange rates, the eects have now been calculated at
+/− 30%.
Market risk
The Beerenberg group operates in the oil and gas market,
which due to price fluctuations can be volatile. Beerenberg
is aected by the oil companies’ actions and the prevailing
oil and gas prices. To mitigate this, Beerenberg has diversi-
fied into various segments of the market, e.g. new-build and
maintenance and modification projects. Beerenberg is also
expanding internationally, with the proprietary Benarx®
product range and it is looking into related market segments,
such as infrastructure for both products and services.
There is reason to believe that investment growth on the
Norwegian Continental Shelf will abate in the long term.
In order to expand its operations and customer base, the
group has therefore been working to grow its international
presence.
Cash flows and fair value interest rate risk
Variable rate loans pose an interest rate risk to the group’s
cash flows. The group is exposed to interest rate risks relating
to debts, including financial leasing. Interest bearing debt as at
31.12.21 is a Bond issue and financial leasing, refer to note 25.
The weighted average eective rate of interest in relation to
debt, was 9.9% in 2021 (2020: 8.9%).
Interest rate risks are continually reviewed by looking at
potential refinancing, renewal of existing contracts, alterna-
tive financing and hedging. The groups calculation of interest
on contracts is entirely linked to liabilities.
If eective interest rates had been 1% (percentage point)
higher/lower on loans in NOK in 2021 and all other vari-
ables were constant, this would have resulted in a reduction/
5858
GROUP ACCOUNTS 2021 BEERENBERG AS GROUP
increase in profit/loss after tax of NOK 5.5 million in 2021
(2020: 6.6 million) Equity would have been similarly aected.
This is due to higher/lower interest costs on variable rate loans.
The group’s interest-bearing assets comprise as of 31.12 of
bank deposits of NOK 193.3 million. Changes in market inter-
est rates would aect operating cash flows related to these
interest-bearing assets, but to a relatively modest degree.
FINANCIAL DERIVATIVE INSTRUMENTS
The group holds a limited number of financial derivative
instruments to hedge its foreign currency and interest rate
risk exposures. The management strategy is, at present, to
use hedging instruments in order to mitigate the eect of
changes in variable interest rates. The long-term financing of
the group is based on variable interest rates (3 mnth Nibor)
which is subject to fluctuations. The strategy is to minimize
this risk by entering into interest swaps agreements to swap
variable interest rates to fixed rates at a proportion of around
70% of total outstanding loans.
Derivatives are recognized initially at fair value. Changes in
fair value are recognized in profit or loss, except for hedging
instruments that meet the criteria for hedge accounting.
The group follows IFRS 9 criteria’s for classifying a derivative
instrument as a hedging instrument. These are as follows:
a. the hedging relationship consists only of eligible hedg-
ing instruments and eligible hedged items.
b. at the inception of the hedging relationship there is
formal designation and documentation of the hedging
relationship and the entity’s risk management objec-
tive and strategy for undertaking the hedge.
c. the hedging relationship meets all of the following
hedge eectiveness requirements:
i. there is an economic relationship between the
hedged item and the hedging instrument
ii. the eect of credit risk does not dominate the
value changes that result from that economic
relationship and
iii. the hedge ratio of the hedging relationship is the
same as that resulting from the quantity of the
hedged item that the entity actually hedges and
the quantity of the hedging instrument that the
entity actually uses to hedge that quantity of
hedged item.
Hedging instruments classed as cash flow hedges oset
variations in cash flows caused by changes in exchange rates,
interest rates and market values. For cash flow hedges that
meet the criteria for hedge accounting, all gains and losses on
the eective part of the contract are recognized in compre-
hensive income and as hedging reserve in the statement of
equity, while those on the ineective part are recognized in
the income statement under finance.
Derivative financial instruments with positive fair value are
classified as current assets if the remaining maturity of the
hedged item is less than a year into the future, and as fixed
assets when the remaining maturity of the hedged item is
more than a year ahead. Financial derivatives with negative
fair value are classified as a current liability if the remaining
maturity of the hedged item is less than a year into the future,
and as a long-term liability when the remaining maturity is
more than a year ahead.
Refer to note 24 for a specification of the group’s current
derivative instruments.
Credit risk
Credit risks are assessed at group level. The group’s financial
assets that are exposed to credit risks are predominantly
trade receivables. These receivables mostly concern multi-
national oil companies and independent oil and gas compa-
nies, including companies that are wholly or partially owned
by foreign governments. The group handles its exposure to
credit risk by carrying out continual credit checks of custom-
ers and make provisions for losses on doubtful accounts.
Routines are incorporated to ensure that sales are only
made to customers with satisfactory credit worthiness. If an
independent credit rating of a customer is available, it will
be used when determining a credit limit. If no independent
assessment of the customer’s credit worthiness is available,
an assessment is carried out on the basis of the customer’s
financial position, history and other factors as appropriate.
Individual limits for risk exposure are set on the basis of
internal and external assessments of credit worthiness and
of guidelines provided by the board of directors. The major
customers are predominantly large international oil compa-
nies or government-owned oil companies. Such companies
generally have very good credit ratings.
The group have not provided any warranties that pose a
significant risk.
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BEERENBERG AS GROUP GROUP ACCOUNTS 2021
Note 4 | Financial risk management
The group continuously seeks new opportunities for example
in new build projects and increased presence in projects
abroad. To enter new market segments, could imply changes
to credit risk. This is a factor that the group has high focus on
evaluating when considering such opportunities.
Liquidity risk
The group is exposed to liquidity risks relating to the repay-
ment of debts and payments to suppliers. Cash flow forecasts
are created for each operating unit within the group and
aggregated at group level. Rolling forecasts for the group’s
liquidity requirements are monitored centrally to ensure
that the group has sucient cash equivalents to meet
operating-related liabilities at all times. Such forecasts take
into account the group’s planned loans, compliance with
borrowing terms and compliance with internal targets for
reporting figures.
On the reporting date, the group had bank deposits of NOK
193.3 million plus an unused overdraft of NOK 71 million,
designed to meet the liquidity risk.
Note 13 shows the group’s interest-bearing financial liabili-
ties classed according to maturity structure. Classification is
carried out according to the due date stated in the contract.
The amounts in the table are undiscounted contractual cash
flows.
Interest-bearing long-term debt consists of a Bond with the
principal amount of NOK 700 million. This Bond matures in
November 2023.
Risk relating to capital management
The group’s objectives for capital management are to sustain
the group’s position as a going concern in order to generate
a return for its owners and to maintain an optimal capital
structure in order to reduce the cost of capital.
In order to improve its capital structure, the group can adjust
the level of dividends paid to shareholders, issue new shares,
or sell assets to repay loans. The gearing in the group for
31.12.21 and for 31.12.20 is shown in table below.
2021 2020
Total interest bearing debt 744034 740262
Less cash and cash equivalents -193345 -139733
Net interest bearing debt 550689 600529
Total Equity 546428 486871
Total Capital (adjusted) 1097117 1087400
Debt Ratio 50% 55%
Gearing 10 12
6060
GROUP ACCOUNTS 2021 BEERENBERG AS GROUP
Note 5 Segment
Operating segments are reported consistent with internal
reporting provided to Chief Operating decision maker. Chief
Operating decision maker, who is responsible for allocat-
ing resources and assessing performance of the operating
segments, is defined as the Board of Directors. As at 31.12
there are two reporting segments in the group, “Services”
and “Benarx”. Services includes business related to the
traditional ISS activity of the company which is mainly
related to major framework contracts. Benarx includes
business involving production of insulation materials and
related subsea insulation business.
Services Benarx Eliminations Consolidated
2021 2020 2021 2020 2021 2020 2021 2020
Operating revenue external 1 898 140 1 426 221 237 879 296 506 2 136 019 1 722 727
Operating revenue internal 4 822 4 841 70 328 45 442 -75 151 -50 284 0 0
Total Operating revenue 1 902 962 1 431 063 308 208 341 948 -75 151 -50 284 2 136 019 1 722 727
Direct cost
1 591 004 1 170 746 234 340 255 748 -70 328 -45 442 1 755 016 1 381 053
Gross profit 311 958 260 316 73 868 86 200 -4 822 -4 841 381 003 341 674
Admin & overhead 136 422 93 651 32 953 36 160
-4 822 -4 841 164 552 124 969
EBITDA * 175 537 166 666 40 915 50 040 0 0 216 451 216 706
Depreciation, and impairment
losses of tangible assets 39 858 39 169 9 221 15 263 49 079 54 432
EBITA ** 135 679 127 497 31 694 34 777 0 0 167 372 162 274
Amortisation and impairment
losses of intangible assets 14 155 16 351 149 149 14 303 16 500
EBIT *** 121 524 111 146 31 545 34 628 0 0 153 069 145 774
*) Operating result before depreciation, amortisation and impairment losses
**) Operating result before amortisation and impairment losses of intangible assets
***) Operating result
(Amounts in NOK 1,000)
6161
BEERENBERG AS GROUP GROUP ACCOUNTS 2021
NCS ICS Consolidated
2021 2020 2021 2020 2021 2020
Total Operating revenue 1 984 157 1 560 641 151 862 162 086 2 136 019 1 722 727
Reconciliation of EBITDA to profit/loss before tax: 2021 2020
EBITDA
216 451 216 706
Depreciation, amortisation and impairment losses
63 382 70 931
Net finance costs
82 215 90 817
Result before tax
70 854 54 958
Revenue from customers who make up more than 10% of total revenue
Revenue from 2 customers make up more than 10% of total revenue in 2021 or 2020.
Revenues from customer 1 amounted to 1 089 615 which was 51% of total revenue (2020: 971 777, 56% of total revenue).
Revenues from customer 2 amounted to 313 468 which was 15% of total revenue (2020: 140 662 8% of total revenue).
ASSETS Services Benarx Not Allocated Eliminations Consolidated
2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
Intangible assets 15 452 27 070 3 793 3 988 19 246 31 057
Goodwill 582 762 582 762 200 000 200 000 782 762 782 762
Property, plants and equipment 177 887 175 686 30 453 37 877 208 340 213 563
Financial fixed assets 20 221 9 874 20 221 9 874
Deferred tax assets 3010 3 010
Total noncurrent assets 796 322 795 391 234 247 241 865 3010 1 033 579 1 037 256
Inventory 45 067 33 150 32 723 33 099 77 790 66 250
Accounts receivable from customers 284 949 202 584 61 039 58 052 -39 600 -11 026 306 387 249 611
Other receivables 21 061 23 159 2 639 16 037 23 701 39 196
Earned, not invoiced contract
revenues 184 271 127 207 10 950 16 791 195 220 143 998
Cash at bank, cash in hand and
similar 193 345 139 733 193 345 139 733
Total current assets 535 348 386 100 107 351 123 980 193 345 139 733 -39 600 -11 026 796 443 638 787
Total Assets 1 334 680 1 181 491 341 597 365 845 193 345 139 733 -39 600 -11 026 1 830 022 1 676 043
Note 5 | Segment
GEOGRAPHIC
Revenue is also measured according to whether it is earned
in Norway/on the Norwegian Continental Shelf (NCS) or
internationally (ICS)
6262
GROUP ACCOUNTS 2021 BEERENBERG AS GROUP
Note 6 Revenues
Beerenberg’s main contracts with customers are servicing
and maintenance contracts. Main deliveries in these con-
tracts involves enhancing assets that the customer controls
while the asset is enhanced. This means that Beerenberg’s
customer contracts involving sales of services are recog-
nized over time when services are delivered. Revenue
from Beerenberg’s contracts with customers involving
sale of goods are recognized at a point in time which the
company transfers control of the goods to the customer.
The company’s revenue also arises from hiring out dierent
types of equipment, mainly scaolding. Contracts involving
letting of equipment are normally integrated in contracts
for perforing services. Revenues from letting of equipment
are recognized over time as the customer has control of the
equipment which is hired. Other revenue in 2020 and 2021
is mainly related to government business compensation
scheme related to Covid-19 in Poland and in Norway.
2021 2020
Revenues from contracts with customers
Revenues from sale of services 1 733 713 1 271 747
Revenues from sale of goods 242 022 284 919
Revenues from hiring of equipment 152 566 138 658
Total revenue from contracts with customers 2 128 301 1 695 323
2021 2020
Other revenue
Gains from sale of assets 2 935 60
Government business compensation scheme 4 783 25 698
Other revenue 0 1 646
Total other revenue 7 718 27 404
Total revenue 2 136 019 1 722 727
2021 2020
Accounts receivables
Trade receivables at face value 309 840 254 121
Provision for losses on claims (3 452) (4 510)
Total trade receivables 306 388 249 611
2021 2020
Total accounts receivables
Accounts receivables from customers 309 840 254 121
Earned, not invoiced accounts receivables 195 220 143 998
Total accounts receivables 505 060 398 119
Earned, not invoiced accounts receivables relates to consideration for work performed, but not yet invoiced at the reporting date.
This mainly pertains to work performed in December 2021, invoiced in January 2022. Earned, not invoiced accounts receivables is transferred
to accounts receivables when the company has issued invoice to the customer.
(Amounts in NOK 1,000)
6363
BEERENBERG AS GROUP GROUP ACCOUNTS 2021
Note 7 Other operating costs
Beerenberg’s other operating costs totals 322 904. (276 446
for 2020) 70–80% of these costs are project costs. Other
costs are costs relating to consulancy fees, premises and
associated costs, IT, insurance premiums, contingents,
marketing and patent costs.
2021 2020
Travel expenses 114 025 98 040
Rental of equipment 40 668 27 679
Other project costs 96 105 88 756
Consultancy fees 20 283 21 878
Facilities 19 990 14 664
IT 21 050 17 736
Other 10 783 7 693
Total other operating costs 322 904 276 446
Auditor’s fee
2021 2020
Statutory audit 1 365 1 301
Other assurance services 52 210
Tax advisory fee (incl. technical assistance with tax return) 226 153
Other assistance 34 127
Total 1 678 1 791
The sums stated are exclusive of VAT.
Note 8 Personnel costs
Personnel costs 2021 2020
Salaries incl. holiday pay 753 676 634 357
National Insurance contributions 112 556 90 997
Pensions 27 280 27 415
Contract personnel 518 866 263 908
Other employee benefits 18 427 16 730
Total Personnel costs* 1 430 805 1 033 406
Number of Full-time equivalent (FTE)* 2 221 1 716
* Both salaries and FTEs includes hired in personnel.
(Amounts in NOK 1,000)
(Amounts in NOK 1,000)
6464
GROUP ACCOUNTS 2021 BEERENBERG AS GROUP
Note 9 Finance income and finance costs
Finance income and finance costs 2021 2020
Gains from purchase and sales of own bonds 1 571 1 000
Interest income from bank and other sources 582 1 575
Finance income 2 153 2 575
Interest cost bank 837 3 827
Interest cost bond 68 020 69 122
Interest cost interest swap 1 422 7 470
Amortization of refinancing fee 9 113 5 819
Interest cost leasing 2 857 3 124
Interests from vendors and other interest costs 1 492 3 318
Net foreign exchange losses, realised 1 130 -1 269
Net foreign exchange losses, unrealised -503 1 982
Finance costs 84 368 93 392
Net finance costs recognised in income statement -82 215 -90 817
Note 10 Tax
2021 2020
Tax payable has been calculated as follows
Ordinary result before tax 70 854 54 958
Profit/loss in foreign subsidiaries, not included in basis for tax payable -9 802 -7 659
Permanent differences -225 -2 132
Change in differences included in the basis for deferred tax assets/liabilitites 23 354 9 905
Reversed taxable profit from previous years 0 -300
Basis for tax payable 84 181 54 771
Tax payable on the result for the year 18 520 12 050
0101–3112
2021 2020
Tax cost is calculated as follows:
Tax payable on the result of the year 18 520 12 050
Corrections to previous years 970 201
Gross changes deferred tax -5 069 -3 772
Total tax cost for the year 14 421 8 478
(Amounts in NOK 1,000)
(Amounts in NOK 1,000)
6565
BEERENBERG AS GROUP GROUP ACCOUNTS 2021
Note 10 | Tax
31122021 31122020
Tax payable on the balance sheet has been calculated as follows:
Tax payable on the result of the year 18 520 12 050
Total tax payable 18 520 12 050
31122021 31122020
Specification of deferred tax/deferred tax concessions changes over profit and loss
Additions through business combinations 2 676 5 096
Fixed assets 7 566 6 944
Current assets 2 837 4 704
Liabilities -11 179 -9 705
Precluded interest deduction to be carried forward -4 860 -4 860
Other deferred tax -1 524 -1 593
Net temporary differences -4 484 586
Tax losses carried forward 0 0
Deferred tax before OCI -4 484 586
Specification of deferred tax/deferred tax over OCI 2021 2020
Derivatives 1 473 -247
Deferred tax OCI 1 473 -247
Deferred tax assets (-) obligations (+) -3 010 339
31122021 31122020
Explanation as to why the tax for the year does not amount to 22% of the result before tax
22% of the result before tax 15 588 12 091
Permanent differences (22%) -50 -469
Corrections to previous years 970 201
Profit/loss in foreign subsidiaries, not included in basis for tax payable -2 088 -3 278
Reversed taxable profit from previous years 0 -66
Calculated tax 14 421 8 478
6666
GROUP ACCOUNTS 2021 BEERENBERG AS GROUP
Note 11 Property, plant and equipment
31122021 Vehicles
Production
equipment
Telecoms&
IT
Buildings,
barracksand halls
Right of use
assets
Total
31122021
Acquisition cost 01.01 33 253 489 744 16 476 57 916 82 338 679 728
Acquisitions of non-current assets 4 033 35 497 2 743 347 2 056 44 677
Disposals 0 -251 0 -251
Exchange rate effects -380 -12 -47 -132 -571
Acquisition cost 31.12 37 286 524 610 19 207 58 217 84 262 723 583
Accumulated depreciation 01.01 26 116 339 920 16 140 48 999 34 989 466 164
Depreciation for the year 3 617 27 639 265 3 655 12 955 48 132
Write-downs for the year 5 941 947
Disposals – accumulated depreciation -
Accumulated depreciation 31.12 29 738 368 501 16 406 52 654 47 944 515 243
Capitalized value 31.12 7 548 156 110 2 802 5 563 36 318 208 340
Economic useful life 5–7 years 5–10–15 years 3 years 10 years 2–10 years
Depreciation schedule Straight-line Straight-line Straight-line Straight-line Straight-line
The category Production equipment contains some assets
that are leased. The book value of leased material as of
31.12.2021 is 10785 and relates mainly to scaolding in the
subsidiary Beerenberg Industri AS. For reference the book
value of leased material as of 31.12.20 was 11989.
Following implementation of IFRS 16 from January 1st 2019
long term rental agreements of property is booked as Right
of use assets. The book value of such right of use assets is as
of 31.12.21 36 318 (2020: 47 349) and represents the value of
rental agreements for oce buildings, factories or similar
premises. The value of right of use is calculated by the sum
o all future rent obligations discounted to the implementa-
tion date by applying a discount rate of 5%. The right of use
assets are depreciated by straight line over the period for
the rent. Refer to note 9 for interest cost of leasing, and note
13 for maturity overview of leasing. In addition to leasing
agreements that are booked as right of use asset, the group
also rents equipment, and some times also premises, on short
term contracts or of low value. Cost related to such rental
agreements are booked as other operating costs, refer to
note7.
31122020 Vehicles
Production
equipment
Telecoms&
IT
Buildings,
barracksand halls
Right of use
assets
Total
31122020
Acquisition cost 01.01 30 734 477 352 16 272 55 876 77 703 657 937
Acquisitions of non-current assets 2 519 12 329 204 2 041 4 651 21 744
Disposals -31 0 -31
Exchange rate effects 94 0 -16 78
Acquisition cost 31.12 33 253 489 744 16 476 57 916 82 338 679 728
Accumulated depreciation 01.01 22 879 311 968 15 941 44 514 16 464 411 767
Depreciation for the year 3 236 27 338 199 4 485 18 525 53 784
Write-downs for the year 613 613
Disposals – accumulated depreciation
Accumulated depreciation 31.12 26 116 339 920 16 140 48 999 34 989 466 164
Capitalized value 31.12 7 137 149 824 336 8 918 47 349 213 563
Economic useful life 5–7 years 5–10-15 years 3 years 10 years 2–10 years
Depreciation schedule Straight-line Straight-line Straight-line Straight-line Straight-line
(Amounts in NOK 1,000)
6767
BEERENBERG AS GROUP GROUP ACCOUNTS 2021
Note 12 Intangible assets and Goodwill
31122021
Patents and
development projects Software
Customer
relationships Goodwill
Total
31122021
Acquisition cost 01.01 91 967 30 337 267 324 887 872 1 277 499
Acquisitions in-house R&D 2 049 449 2 497
Acquisitions of non-current assets
Exchange rate effects -5 -5
Acquisition cost 31.12 94 016 30 780 267 324 887 872 1 279 991
Accumulated amortisation 01.01 80 972 29 916 198 975 309 863
Accumulated write-downs 01.01
3 520 45 187 105 110 153 817
Amortisation for the year
2 971 333 11 000 14 303
Accumulated amortisation 31.12
83 943 30 249 209 975 324 167
Accumulated write-downs 31.12
3 520 45 187 105 110 153 817
Capitalized value 31.12 6 553 531 12 162 782 762 802 008
Economic useful life 5 years 5 years 10 years
Depreciation schedule Straight-line Straight-line Straight-line
At the start of 2021 the Beerenberg AS Group had recorded
Goodwill to the amount of 782762. This goodwill is primarily
allocated to the employees, corporate culture, know-how and
synergies that can be realised in connection with the acquisi-
tion of subsidiaries. Stable operative management is achieved
through the active ownership of key personnel in acquired
companies. In 2013 Beerenberg Holding AS was aquired by
Beerenberg AS, generating a Goodwill of 883860. Following a
non renewal of a large contract and subsequent impairment
testing, this Goodwill was written down by the amount of
105110 in 2016. In 2017 Beerenberg Industri AS was acquired
by Beerenberg Services AS generating a Goodwill of 7489.
The Goodwill generated from the purchase of Beerenberg
Industri was in 2018 adjusted downwards by the amount of
3477 following an update of the Purchase Price Allocation
analyzis. There were no changes to Goodwill in 2021, leaving
the Goodwill as at 31.12.2021 to 782 762.
Intangible assets are measured on the basis that the asset will
give future economic benefits, that the acquisition cost is iden
-
tifiable, and that it has a lasting useful life. A test for impair-
ment has been performed in accordance with IAS 36. According
to IAS 36 the company shall estimate recoverable amount, and
compare this to book values including Goodwill. The group
reports two operating segments which operates as separate
cashgenerating units, the “Benarx” segment and the “Services”
segment. The “Benarx” segment consists of business related
to the production of insulation materials and subsea related
insulation business, and the “Services” segment consists of
the traditional ISS activity of the company mainly related to
larger framework contracts. Goodwill is allocated with 200 000
to the Benarx segment, and 582 762 to the Services segment.
Goodwill was therefore tested for impairment by comparing
capital employed in the two segments against the present value
of expected cash flows of the segments.
Budget and forecasts approved by the Board of Directors
for the next 3 years was the basis for the test of impairment.
During this period, the EBIT margin is estimated to 7–10%.
Key assumptions for estimated future cash flows are:
▪ Oil-price levels around average for the last two to
three years, with a corresponding activity level on
the Norwegian Continental Shelf. Especially, this is
important related to maintenance and modification in
the Services segment.
▪ The group maintaining a reasonable market share in
the insulation material business, through amongst
other deliveries to new build projects, initiated on
Norwegian Continental Shelf.
Furthermore, a required rate of return is of 9.4% is applied.
The required rate of return is built up using the WACC
method (weighted average cost of capital).
The result of the impairmenttest was higher value of present
value of expected cash flows than net capital employed in
both segments.
(Amounts in NOK 1,000)
6868
GROUP ACCOUNTS 2021 BEERENBERG AS GROUP
Sensitivity analyses have been performed, and the table
below set out changes in assumptions that results in an
impairment situation:
Change in
assumption
Segment
BENARX SERVICES
Required rate of return* +8% +47%
Revenue ** -34% -33%
Operating Result -43% -41%
* The group has applied a nominal WACC after tax of 9.4%. The figure
shows that if WACC was set to 17.4% for Benarx and 14.1% for
Services it will result in an impairment situation.
** Margins as before change of assumption.
The group believes that no reasonable changes in the
assumptions that have been used for testing impairment,
could result in a lower value of future cash flows than the
net capital employed. Furthermore, the group has a good
order portfolio that will help the group develop vertically
and horizontally throughout the value chain. By exploiting
existing synergies, the group will be able to make use of the
market opportunities they oer through improved access to
expert personnel. On that basis, and on the basis of estimated
future revenues and described sensitivities, the group can
justify that Goodwill will have a value in excess of the book
value in both segments.
31122020
Patents and
development projects Software
Customer
relationships Goodwill
Total
31122020
Acquisition cost 01.01 91 967 30 304 267 324 887 872 1 277 467
Acquisitions in-house R&D
Acquisitions of non-current assets 32 32
Exchange rate effects
Acquisition cost 31.12 91 967 30 337 267 324 887 872 1 277 499
Accumulated amortisation 01.01 77 581 29 728 186 054 293 364
Accumulated write-downs 01.01 3 520 45 187 105 110 153 817
Amortisation for the year 3 391 187 12 921 16 499
Accumulated amortisation 31.12 80 972 29 916 198 975 309 863
Accumulated write-downs 31.12 3 520 45 187 105 110 153 817
Capitalized value 31.12 7 475 421 23 162 782 762 813 819
Economic useful life
5 years 5 years 10 years 10 years
Depreciation schedule
Straight-line Straight-line Straight-line Straight-line
6969
BEERENBERG AS GROUP GROUP ACCOUNTS 2021
Note 13 Financial instruments
Exposure to credit risk
Maximum exposure to credit risks on the reporting date was:
Capitalized value
2021 2020
Trade receivables 306 387 249 611
Other receivables 23 701 39 196
Earned, not invoiced 195 220 143 998
Cash and cash equivalents 193 345 139 733
Total 718 653 572 537
Impairment losses
The age distribution of trade receivables as at 31.12 was as follows:
2021 2020
Gross Trade
receivables
Allowance for
bad debt
Gross Trade
receivables
Allowance for
bad debt
Not overdue 278 236 2 366 207 973 1 878
0–30 days overdue 22 978 449 21 170 1 059
31–90 days overdue 4 058 203 18 516 925
More than 90 days overdue 4 567 434 6 461 648
Total 309 840 3 452 254 120 4 510
Change in provision account for impairment of trade receivables:
2021 2020
Opening balance 4 510 5 669
Loss on trade receivables -185 -43
Change in provision for bad debt -873 -1 115
Closing balance 3 452 4 510
The group utilizes a model for considering potential loss of
accounts receivables where a proportion of total outstanding
amounts is treated as uncertain even if no objective evidence
of uncertainty exists. This proportion increases with days
the receivables are overdue. On top of the mathematical
approach for considering provision for potential loss, items
in the accounts receivables where objective evidence of
increased risk of potential loss exists is also considered when
setting the total provision for bad debt.
(Amounts in NOK 1,000)
7070
GROUP ACCOUNTS 2021 BEERENBERG AS GROUP
Liquidity risk
Contractual payments due in relation to financial commitments, including rent payments, are:
As at 311221
Capital-
ized value
Contractual
cash flows
6 months
or earlier
6–12
months 1–2 years 2–5 years
More than
5 years
Interest bearing long term lease liabilities* 29 586 29 586 0 0 13 624 13 793 2 168
Interest-bearing long-term liabilities ** 635 586 789 675 30 766 28 689 53 658 676 563
Interest bearing short-term liabilities ** 78 861 78 861 47 163 31 699
Trade payables 188 014 188 014 188 014
Other current liabilities 203 210 203 210 203 210
Total 1 135 257 1 289 346 469 153 60 387 67 282 690 356 2 168
* Lease liabilities includes rental of premises of 40503 according to IFRS16. These liabilities are discounted by applying a rate of 5%. Lease
liabilities that matures next year are classified as short-term liabilities.
** Interest-bearing debt consists of a bond with the principal amount 700000. Capitalized value includes deduction for transaction costs that
are expensed as interest during the course of the loan (17513). Interest rate on the loan is 3 month NIBOR plus margin of 8.0%. The bond
has every 6-month amortization of 25000 until maturity, in total 125000. The loan matures 13.November 2023. It is not expected that the
cash flows in the maturity analysis will occur at earlier dates, or with substantially different amounts. Next year installments of 50000 are
classified as interest bearing short-term liabilities.
As at 311220
Capital-
ized value
Contractual
cash flows
6 months
or earlier
6–12
months 1–2 years 2–5 years
More than
5 years
Interest bearing long term lease liabilities * 37 553 43 192 0 0 15 081 25 330 2 781
Interest-bearing long-term liabilities ** 630 831 812 570 29 757 28 688 104 188 649 938
Interest bearing short-term liabilities ** 70 757 70 757 37 730 33 027
Trade payables 135 285 135 285 135 285
Other current liabilities 196 943 196 943 196 943
Total 1 071 369 1 258 747 399 716 61 715 119 269 675 267 2 781
* Lease liabilities includes rental of premises of 52453 according to IFRS16. These liabilities are discounted by applying a rate of 5%. Lease
liabilities that matures next year are classified as short-term liabilities.
** Interest-bearing debt consists of a bond with the principal amount 750000. Capitalized value includes deduction for transaction costs that
are expensed as interest during the course of the loan (26401) as well as principal amount of own bonds (50 000) Interest rate on the loan is
3month NIBOR plus margin of 8.0%. The bond has every 6-month amortization of 25000 until maturity, in total 125000. The loan matures
13.November 2023. It is not expected that the cash flows in the maturity analysis will occur at earlier dates, or with substantially different
amounts. Next year installments of 50000 are classified as interest bearing short-term liabilities.
7171
BEERENBERG AS GROUP GROUP ACCOUNTS 2021
Note 13 | Financial instruments
Currency Change
Effect for 2021 Effect for 2020
Profit/loss Profit/loss
THB 30% 1 463 4 087
EURO 30% 824 389
USD 30% 6 062 8 281
PLN 30% 284 210
SGD 30% 1 398 2 804
KRW 30% 6 274 2 883
GBP 30% 2 055 1 508
18 359 20 162
An increase in NOK against the above-mentioned currencies as at 31 December would have given the same figures, but with
the opposite eect, once again assuming that other variables remain constant.
Of the cash in foreign currency the majority of USD is placed in KEB Hana Bank in Korea and OCBC bank in Singapore,
PLN is placed in Danske Bank in Poland, GBP is placed in Danske Bank in UK, SGD is placed in OCBC bank in Singapore and
THB is placed in Kasikorn bank in Thailand.
Exchange rate risk
All amounts are in the
currency stated in table
31122021 31122020
THB EUR USD PLN SGD KRW GBP THB EUR USD PLN SGD KRW GBP
Cash and cash equivalents 21 693 367 1 656 1 658 113 2 723 250 448 59 698 236 1 620 1 160 1 694 1 572 372 463
Trade receivables 4 546 173 1 438 576 770 856 762 293 53 150 101 2 487 124 81 474 548 94
Trade payables -2 973 -194 -81 -1 688 52 -8 526 1 -54 755 -182 -348 -913 -18 -486 075 -22
Net exposure
23 266 346 3 013 545 934 3 571 486 743 58 092 155 3 759 372 1 758 1 560 844 535
Significant exchange rates during the year:
Average exchange rate Spot exchange rate
2021 2020 31122021 31122020
THB 0269 0301 0264 0285
EUR 10163 10726 9981 10488
USD 8598 9415 8811 8542
PLN 2226 2413 2170 2273
SGD 6396 6819 6512 6459
KRW 0008 0008 0007 0008
GBP 11825 12052 11866 11665
A decrease in NOK against the following currencies at the end of the year would have increased/(reduced) equity and
profitby the amounts given below. The analysis is based on changes in the exchange rate within a reasonably possible
range.Thepossible range is defined by the management at the end of the accounting year. The analysis assumes that
othervariables, particularly interest rates, remain constant. The analysis was carried out on the same basis as in 2020.
(Amounts in NOK 1,000)
7272
GROUP ACCOUNTS 2021 BEERENBERG AS GROUP
FAIR VALUE AND CAPITALIZED VALUE
The fair value and capitalized value of financial assets and liabilities:
31122021 31122020
Capitalized value Fair value Capitalized value Fair value
Assets carried at amortised cost
Trade receivables 306 387 306 387 249 611 249 611
Cash and cash equivalents 193 345 193 345 139 733 139 733
Total 499 732 499 732 389 344 389 344
31122021 31122020
Capitalized value Fair value Capitalized value Fair value
Liabilities carried at amortised cost
Loan 685 586 725 849 680 831 729 982
Leasing and accrued interests 58 448 58 448 54 576 54 576
Trade payables 188 014 188 014 135 285 135 285
Total 932 048 972 311 870 692 919 843
The methods used to measure the fair value of financial instruments are described in the note on the group’s accounting
principles.
Net debt reconciliation
This section sets out an analysis of net debt and the movements in net debt for each of the periods presented.
Liabilities from financing activities
Amounts in NOK thousands Borrowings Leases Total
Net debt as at 31 December 2019 852 195 69 010 921 205
Liabilities from financing activities
Amounts in NOK thousands Borrowings Leases Total
Cash flow changes
Proceeds from borrowings 680 076 0 680 076
Repayment of borrowings -850 000 0 -850 000
Payment of lease obligation 0 -19 085 -19 085
Non cash changes 2 293 0 2 293
Leasing related adjustments 0 4 651 4 651
Net debt as at 31 December 2020 684 565 54 576 739 140
Liabilities from financing activities
Amounts in NOK thousands Borrowings Leases Total
Cash flow changes
Proceeds from borrowings 50 000 0 50 000
Repayment of borrowings -50 822 0 -50 822
Payment of lease obligation 0 -15 866 -15 866
Non cash changes 17 070 0 17 070
Leasing related adjustments 0 4 511 4 511
Net debt as at 31 December 2021 700 813 43 221 744 034
7373
BEERENBERG AS GROUP GROUP ACCOUNTS 2021
Note 14 Inventory
2021 2020
Raw materials 49 266 50 976
Work in progress 1 150 1 698
Finished goods 29 590 15 581
Provision for obselete inventory (2 216) (2 006)
Total Goods 77 790 66 250
Note 15 Bank deposits and cash equivalents
Bank deposits and cash equivalents 2021 2020
Bank deposits 193 345 139 733
Total deposits 193 345 139 733
OVERDRAFT LIMIT
The group has a combined overdraft and guarantee limit of 150000. Deductions on overdraft as at 31.12.2021 amounted to 0
for the group as a total. Utilization of the guarantee limit amounted to 78689, refer to note 19 for details of guarantees.
Note 16 Share capital and shareholder information
SHARE CAPITAL AND SHAREHOLDER INFORMATION:
The Company’s share capital is 26 700 distributed on
267000000 shares, whereof 1000000 A-shares, and
266000000 B-shares. Nominal value per share is 0.0001.
TheA-shares have all rights. The B-shares have voting
rightsby 1 vote per 10 share and no rights to dividends. Inthe
event of a liquidation of the company, the owner of B share
shall be entitled to repayment of paid-in capital at the time
when the share was subscribed (nominal and any share
premium), but no excess amount. The B shareholders right
at this point has a preferential right over the A shareholders
right to liquidation dividends. Otherwise, the share classes
are equal.
List of the major shareholders at 31.12.21:
Shareholder A-Shares % B-Shares % Total Shares % Controlled by
Segulah IV L.P. 820 875 821% 223 247 653 839% 224 081 385 839%
AlpInvest Partners 2012 I B.V. 92 121 92% 24 931 110 94% 25 023 231 94%
AlpInvest Partners 2012 II B.V. 23 319 23% 6 310 883 24% 6 334 202 24%
GRAA AS 11 792 12% 3 379 600 13% 3 393 800 13% Chairman of the board
Svein Eggen Holding AS 5 325 05% 1 267 350 05% 1 272 675 05% Board member
Mowin AS 5 325 05% 1 267 350 05% 1 272 675 05% Board member
Other 41 243 41% 5 596 054 21% 5 622 032 21%
Total 1 000 000 100.0% 266 000 000 100.0% 267 000 000 100.0%
Basic earnings per A-share is 0.056 for 2021 compared to 0.046 for 2020.
Basic earnings per share are based on the profit/loss attributable to A-shares and on the weighted average number of ordinary
shares outstanding. Diluted earnings per share are identical as there is no dilutive eect.
(Amounts in NOK 1,000)
(Amounts in NOK 1,000)
(Amounts in NOK 1,000)
7474
GROUP ACCOUNTS 2021 BEERENBERG AS GROUP
Note 17 Employee benefits – pensions
MANDATORY OCCUPATIONAL PENSION
The company is obliged to operate an occupational pension
scheme in accordance with the Norwegian act on mandatory
occupational pensions. The company’s pension schemes
satisfy the provisions of this act.
EXTENDED PENSION SCHEME
CEO and other defined other key personell have an additional
pension scheme agreement which amounts to 10% of salary
for CEO, 6% of salary for group executive management, and
3% for other members of this pension scheme.
Pension assets has the following composition 2021 2020
Assets related to extented pension scheme 13 524 9 874
Total pension assets 13 524 9 874
Pension obligations has the following composition 2021 2020
Liabilities related to extended pension scheme 15 375 11 266
Mandatory occupational pension liabilities 1 947 909
Total pension obligations 17 322 12 175
Pension cost in consolidated income statement has the following composition 2021 2020
Pension cost extended pension scheme 1 969 2 700
Pension cost mandatory occupational pension 12 364 12 879
Pension cost AFP scheme 12 947 11 836
Total pension cost in consolidated pension cost 27 280 27 415
Note 18 Remuneration of key employees
Directors’ fees 2021
Chairman Geir Aarstad * 200
Ingelise Arntsen 215
Hilde Drønen 195
Morten Walde 195
Sebastian Ehrnrooth 175
Total for board members elected by shareholders 980
Finn Kydland 60
Andre Simonsen 60
Tore Kjell Jørgensen (deputy member) 2
Christian Jørgensen (deputy member) 3
Ann Kristin Midttun (deputy member) 2
Rune Kårbø (observer) 9
Ståle Andreas Hovdekleiv (observer) -
Total for board members elected by employees ** 135
* Chairman from 28th of June 2021.
** This applies to directors’ fees for board positions in subsubsidiary Beerenberg Services AS.
Group executive management
2021 Position Salary Other Compensations
Arild Apelthun CEO 2 897 1 362
Harald Haldorsen CFO 2 089 252
(Amounts in NOK 1,000)
(Amounts in NOK 1,000)
7575
BEERENBERG AS GROUP GROUP ACCOUNTS 2021
Pensions are not included in the table above. Group executive
management and CEO have an additional pension scheme
agreement which amounts to 10% of salary for CEO, and
6% of salary for group executive management. The CEO
has an agreement that guarantees salary payments for up
to 18months if the employer were to terminate his employ-
ment. A non-compete clause also apply to the CEO in the
same period. The CEO has a performance-based bonus
agreement, identical for all employees in the group executive
management. Bonus may not exceed 40% of the annual salary
for CEO and 30% for group executive management. No other
bonuses, severance or options than described here are given
to the board of directors or management.
In addition to ordinary salaries, key employees benefit from
free telephones, broadband and mandatory contribution-
based pensions. Everyone is paid a fixed salary, and no
overtime payments are made. The key principles for setting
management salaries at Beerenberg are that the company
should be able to oer competitive terms. This relates to
the combination of salaries, benefits in kind and pension
schemes. The company operates in an international environ-
ment, a fact that is emphasised and reflected when setting the
level of remuneration.
When setting remuneration for 2022, the company will apply
the same policy as in 2021. This entails being a competitive
employer who attracts necessary expertise and capacity.
The company also wishes to retain expertise and encourage
long-term employment relationships. In respect of salary
levels, the company aims to be in the high to average range in
relation to comparable companies in order to attract compe-
tent personnel.
Note 19 Warranty liabilities and provisions
The group has provided a joint bank guarantee for all the
companies in the group. In some cases, the group will provide
bank guarantees to customers when entering into large fixed
price contracts. As at 31.12.21, the guarantees totalled 32189,
compared to 66665 as at 31.12.20.
A tax withholding guarantee of 46500 has also been provided
as at 31.12.21, compared to 46500 as at 31.12.20.
The group has warranty liabilities relating to maintenance
contracts. Warranty periods may last for three to five years
after an annual programme has been completed. New-build
and modifications contracts are generally subject to a two
to three year warranty after the completion certificate has
beenissued.
Guarantee liabilities are assessed continuously per individual
project that has guarantees provided. However, as it isdif-
ficult to estimate the probability that a warranty claim will
arise per project and how much cost this would entail, there
are also made an assessment of the overall uncertainty on
group level (IAS 37.24)
Change in provision for for warranty liabilities is shown in
the table below.
Warranty liabilities 2021 2020
Opening balance 19 792 18 990
Incurred warranty cost 100 0
Expired warranty provision -3 239 -4 898
New warranty provision 4 875 5 700
Closing balance 21 527 19 792
Note 20 Other short-term liabilities
Other short-term liabilities 2 021 2 020
Accrued holiday pay 79 460 66 933
Contract liabilities 10 374 22 354
Project provisions and provisions for accrued salaries 113 375 107 656
Total other short-term liabilities 203 210 196 943
(Amounts in NOK 1,000)
(Amounts in NOK 1,000)
Note 18 | Remuneration of key employees
76
76
GROUP ACCOUNTS 2021 BEERENBERG AS GROUP
Note 21 Contingent outcomes
PROJECT RISKS AND UNCERTAINTIES
The group’s projects are largely long-term Frame Agreements
awarded as the result of a tender. According to IFRS 15 reve nue
is recognized based on evaluation of work performed in the
period. The value of work performed during the period are
based on a measurement of physical progress recorded after a
detailed inspection of actual progress, or based on the number
of hours of work performed, normally also approved by the
customer. Therefore, in each reporting period there will be
a very limited degree of use of estimates related to revenue
in projects involving services rendered. Similar, in projects
involving delivery of goods income is recognized upon delivery
to customer, so a very limited need for estimates exists.
However, circumstances and information may change in sub-
sequent periods, and final outcomes may be better or worse
than assessments made at the time the financial statements
were prepared.
In the group’s opinion, there are no projects as at 31.12.21
with uncertainties relating to estimates of revenue or cost
that may be of significant importance to the consolidated
figures.
LEGAL DISPUTES
From time to time, the group becomes involved in various
disputes in its course of business. Provisions have been made
to cover expected losses resulting from such disputes to the
extent that negative outcomes are probable and reliable
estimates can be produced. The final outcome of such cases
will always contain elements of uncertainty, and may result
in liabilities exceeding the recognised provisions.
Note 22 Related parties
No related parties transactions were conducted in 2021.
(Amounts in NOK 1,000)
7777
BEERENBERG AS GROUP GROUP ACCOUNTS 2021
Note 23 Group entities
As at 31.12.21 the group consist of the following 10 companies;
Beerenberg AS, Beerenberg Holding AS, Beerenberg Services
AS, Beerenberg Industri AS, Beerenberg Poland Sp. zo.o,
Beerenberg Singapore LTD, Beerenberg UK LTD, Beerenberg
(Thailand) Co., LTD., Beerenberg Holding (Thailand) LTD
and Beerenberg Korea LTD.
Together with STB Corporation Company Limited, a subsidi-
ary Beerenberg Holding (Thailand) LTD was established in
the 4th Quarter of 2021. The investment by STB Corporation
Company Limited in Beerenberg Holding (Thailand) LTD
represents a non-controlling interest, thus net profit that
is attributable to non-controlling interest is presented in
the Condensed Statement of Income and in the Condensed
Consolidated Statement of Change in Equity. The owner-
ship interest is 49%, still Beerenberg Holding (Thailand)
LTD and its subsidiary Beerenberg (Thailand) Co., LTD. is
consolidated in the group accounts since the majority of
voting rights is secured through the shareholder structure
and agreements.
Company Parent Company Ownership interest
Beerenberg Holding AS Beerenberg AS 100%
Beerenberg Services AS Beerenberg Holding AS 100%
Beerenberg Industri AS Beerenberg Services AS 100%
Beerenberg Solutions Poland Sp. z o.o Beerenberg Services AS 100%
Beerenberg Singapore LTD Beerenberg Services AS 100%
Beerenberg UK LTD Beerenberg Services AS 100%
Beerenberg Holding (Thailand) LTD Beerenberg Services AS 49%
Beerenberg (Thailand) Co., LTD. Beerenberg Holding (Thailand) LTD 100%
Beerenberg Korea LTD Beerenberg Solutions Poland Sp. z o.o 100%
Beerenberg Industri AS registered oce is at Bedriftsvegen 10, Skien.
Beerenberg Singapore LTD’s registered oce is in Singapore. Beerenberg Poland Sp. Z o.o’s registered oce is in Poland.
Beerenberg Korea LTD’s registered oce is in Korea.
Beerenberg (Thailand) Co., LTD’s and Beerenberg Holding (Thailand) LTD registered oce is in Thailand. Beerenberg UK
LTD’s registered oce is in UK.
The other companies has registered oce at Kokstaddalen 33, Bergen. The voting share in the subsidiary companies is
identical to the ownership share, except for Beerenberg Holding (Thailand) LTD where the majority of voting rights is secured
through the shareholder structure and agreements.
7878
GROUP ACCOUNTS 2021 BEERENBERG AS GROUP
Note 24 Derivatives
The group has used hedge accounting in accordance with
IFRS 9. Refer to note 1 accounting principles for a description
of the group’s strategy for applying dierent types of deriva-
tives to mitigate dierent types of risk exposures, and how
these aects the financial statement. At the end of 2020 and
2021 only one derivative instrument was present, an interest
swap agreement, to mitigate the eect of change in variable
interest rates.
In connection with the new Bond loan, the group entered
in December 2020 into an interest rate swap agreement
to secure the cash flows related to long-term loans, where
the loan terms are 3 months Nibor + margin. The contract
involve an exchange of 3-month Nibor to the fixed rates
set forth below for current principal in the maturity of the
agreement. The fair value of interest rate swap is classified
as non-current asset / liability since the remaining maturity
of the hedged item (loan) is more than 12 months. Change
in value of contracts are recognized in other comprehensive
income. Interest rate swaps are valued according to level 2 of
the valuation hierarchy (IFRS 13), ie the value derived from
observable factors such as market interest rates. The fair
value of the interest rate swap is at 31.12.21 positive and is
therefore booked in the account group financial fixed assets
under non current assets compared to last year when it was
booked in the account group derivatives under long term
liabilities.
2021
Risk
Category
Nature of
risk
Counter-
party/
Bank Agreement
Date of
agreement Maturity
Principal
amount
Fixed
interest
Variable
interest
Classifi-
cation
Market
value
as of
311221
Fair Value
311221
Cash flow
hedge
Changes
in variable
interest
rate
Danske
Bank
62264732FO-
BRD7L
17122020 17122020–
13112023
450 000 0695% 3 mnth
Nibor
Long
term
6 697 6 697
2020
Risk
Category
Nature of
risk
Counter-
party/
Bank Agreement
Date of
agreement Maturity
Principal
amount
Fixed
interest
Variable
interest
Classifi-
cation
Market
value
as of
311220
Fair Value
311220
Cash flow
hedge
Changes
in variable
interest
rate
Danske
Bank
62264732FO-
BRD7L
17122020 17122020–
13112023
450 000 0695% 3 mnth
Nibor
Long
term
-1 122 -1 122
(Amounts in NOK 1,000)
7979
BEERENBERG AS GROUP GROUP ACCOUNTS 2021
Note 25 Interest-bearing liabilities
The tables provide information about the contractual terms
relating to the group’s interest-bearing liabilities measured
at amortised cost. For more information about the group’s
interest rates, currencies and liquidity risk, please see the
section on financial risk management and exposure in the
chapter on accounting principles.
SUMMARY OF INTERESTBEARING LIABILITIES AS AT ..
Book value
Spread over
NIBOR Due Terms of interest
Multicurrency overdraft facility, limit 150 000 * - 25% 13112023 NIBOR+Margin*
Interest-bearing leasing liabilities 43 221 15%–45% 2021–2028 NIBOR+Margin
* The facility has a total limit of 150000 which includes guarantees. The remaining limit after reduction for guarantees are 71327. There is a
commitment fee for unused facility of 1.2%.
The group have the following loans:
Loans Book value
Spread
over NIBOR Fair Value Due Terms of interest
Bond (Senior Secured Callable Bond Issue 2020/2023) * 682 487 800% 722 750 13112023
3 mnth
NIBOR+Margin
Government Loan ** 3 099 - 3 099 25072023 Interest free
* A 3-year Senior Secured Bond of 750000 was issued in November 2020. Discount on principal amount and arrangement fee, have been
classified net with the Bond. The bond has every 6-month amortization of 25000 until maturity, in total 125000. As at 31.12.2021
50000 have been amortized. The maturity date of the bond is 13 November 2023. At redemption of the loan a premium of 3.25% on
principal amount have to be paid, therefore Fair Value of the Bond is presented including this premium. The premium at redemption, as well as
discount and arrangement fee is accrued as interest cost during the course of the loan. The table below explains the link between principal
amount of the Bond, book value and fair value.
** The government loan provided to the subsidiary in Poland, Beeren berg Poland Sp Z o.o, is part of the Polish governments Covid support
package. The loan is interest free.
Principal amount 700 000
3.25% premium to be paid at redemption of Bond 22 750
Fair Value 722 750
Principal amount 700 000
Discount principal amount and arrangement fee -17 513
Book Value 682 487
** The government loan provided to the subsidiary in Poland, Beerenberg Poland Sp Z o.o, is part of the Polish governments Covid support
package. The loan is interest free.
COVENANTS
In connection with the bond issue Beerenberg has signed an
150000 super senior credit facility agreement with Danske
Bank. The Facility agreement includes covenants related to
quarterly Net Total Leverage ratio test (Net Debt / EBITDA).
This ratio must be below 7.0 at 31.12.2021. The group has
been in compliance with covenants in 2021.
(Amounts in NOK 1,000)
8080
GROUP ACCOUNTS 2021 BEERENBERG AS GROUP
Note 26 Secured liabilities
The group has provided security for its arrangement with
Danske Bank. The tables below provide an overview of
the arrangement and the book value of the assets set up as
security.
The group has provided joint bank guarantee for all the
companies in the group. The group’s guarantee liability
pertains to contract guarantees for such guarantees and to
guarantees to the authorities. As at 31.12.21, the guarantees
totalled 78673.
Security has been provided for the following debts: 31122021 31122020
Guarantees, incl. tax withholding guarantee 78 673 113 165
Interest bearing short-term liabilities 78 861 70 757
Interest bearing long-term liabilities 665 173 668 384
Total for the group 822 707 852 305
Capitalized value of assets provided as security for secured debts:
31122021 31122020
Fixed assets 172 022 166 215
Inventory 77 790 66 250
Trade receivables 306 387 249 611
Total 556 200 482 075
Note 27 Events after the reporting date
At the time of publication of the annual report, Russia has invaded Ukraine and strict sanctions have been imposed against
Russia and Belarus. The consequences of the acts of war are uncertain. Beerenberg Group has insignificant activities in and
exposure to these countries, but is following developments closely to detect any changes in our risk assessment.
(Amounts in NOK 1,000)
(Amounts in NOK 1,000)
8181
Income statement 84
Statement of Comprehensive Income 85
Statement of Financial Position 86
Statement of Cash Flows 88
Accounting principles 89
Note 1 Revenues 90
Note 2 Long-term investments in other companies 90
Note 3 Restricted funds 91
Note 4 Share capital and shareholder information 91
Note 5 Equity 91
Note 6 Non-current liabilities, collateral and guarantees etc. 92
Note 7 Tax 93
Note 8 Payroll costs, number of employees,
remuneration, loans to employees etc. 94
Note 9 Specification of finance income and finance costs 94
Note 10 Financial instruments 95
Note 11 Events after the reporting date 95
BEERENBERG AS
Annual
Accounts
82
83
BEERENBERG AS ANNUAL ACCOUNTS 2021
BEERENBERG AS
ANNUAL ACCOUNTS
Income statement
Amounts in NOK 1,000 Note 2021 2020
Other revenue 0 11 876
Total revenue 1 0 11 876
Amounts in NOK 1,000 Note 2021 2020
Operating expenses
Other operating expenses 8 1 658 1 223
Total operating expenses 1 658 1 223
Operating result -1 658 10 652
Intragroup interest income 304 834
Other interest income 3 1
Other finance income 165 840 157 663
Intragroup interest costs 3 598 4 415
Other interest costs 69 485 76 732
Other finance costs 9 160 5 820
Net financial items 9, 10 83 904 71 531
Ordinary result before tax 82 245 82 183
Ta x 7 17 749 17 512
Annual profit 64 496 64 671
The annual profit/loss is attributable to:
Other equity 5 64 496 64 671
Annual profit 64 496 64 671
Basic earnings per share for 1 000 000 A-shares 4 0064 0065
Diluted earnings per share are identical as there is no dilutive effect.
The accompanying notes 1–11 are an integral part of these financial statements.
84
ANNUAL ACCOUNTS 2021 BEERENBERG AS
BEERENBERG AS
ANNUAL ACCOUNTS
Statement of Comprehensive Income
Amounts in NOK 1,000 Note 2021 2020
Annual profit 64 496 64 671
Amounts in NOK 1,000 Note 2021 2020
Other revenue and expenses
Change in value of derivatives 7, 10 6 100 -49
Total Comprehensive income 70 596 64 622
Comprehensive income is attributable to:
Shareholders 70 596 64 622
Total Comprehensive income 70 596 64 622
Other revenue and expenses is after tax and will be reversed in the income statement.
The accompanying notes 1–11 are an integral part of these financial statements.
85
BEERENBERG AS ANNUAL ACCOUNTS 2021
BEERENBERG AS
ANNUAL ACCOUNTS
Amounts in NOK 1,000 Note 31122021 31122020
Assets
NONCURRENT ASSETS
Financial non-current assets
Investments in subsidiaries 2 1 257 646 1 257 646
Derivatives 10 6 697 0
Total financial non-current assets 1 264 344 1 257 646
Total non-current assets 1 264 344 1 257 646
Amounts in NOK 1,000 Note 31122021 31122020
Assets
CURRENT ASSETS
Receivables
Other current receivables 2 164 565 158 762
Total receivables 164 565 158 762
Total current assets 164 565 158 762
Cash at bank 3 80 614 58
Total assets 1 509 523 1 416 466
Statement of Financial Position
86
BEERENBERG AS
ANNUAL ACCOUNTS
Amounts in NOK 1,000 Note 31122021 31122020
Equity and Liabilities
EQUITY
Paid-in capital
Share capital 26 700 26 700
Share premium 240 310 240 310
Total paid-in capital 267 010 267 010
Amounts in NOK 1,000 Note 31122021 31122020
Equity and Liabilities
EQUITY
Retained earnings
Other equity 520 930 450 335
Total retained earnings 520 930 450 335
Total equity 4, 5 787 940 717 345
Amounts in NOK 1,000 Note 31122021 31122020
Equity and Liabilities
LIABILITIES
Other non-current liabilities
Deferred tax liabilities 7 466 922
Interest bearing long-term liabilities 6 632 487 623 599
Derivatives 10 0 1 122
Total other non-current liabilities 632 953 625 643
Amounts in NOK 1,000 Note 31122021 31122020
Equity and Liabilities
LIABILITIES
Current liabilities
Interest bearing short-term liabilities 6 65 212 59 745
Tax payable 7 19 925 12 598
Other current liabilities 3 492 1 136
Total current liabilities 88 630 73 479
Total liabilities 721 583 699 121
Total equity and liabilities 1 509 523 1 416 466
The accompanying notes 1–11 are an integral part of these financial statements.
BERGEN APRIL
Beerenberg AS board of directors
Hilde Drønen Morten Walde Arild Apelthun
CEO
Geir M. Aarstad Sebastian Ehrnrooth Ingelise Arntsen
Chairman
87
BEERENBERG AS ANNUAL ACCOUNTS 2021
Amounts in NOK 1,000 Note 2021 2020
Cash flows from operating activities
Result for the period before tax 82 245 82 183
Tax paid for the period 7 -12 598 -16 424
Changes to other time restricted items 24 586 -247
Net cash flow from operating activities 94 234 65 512
Amounts in NOK 1,000 Note 2021 2020
Cash flows from financing activities
Change in draw on credit facility -6 054 6 054
Incoming payments on long term loans 6 50 000 672 845
Outgoing payment on long term loans 6 -50 000 -850 000
Payment of group contribution 9 156 646 151 562
Group contribution booked as finance income 9 -164 269 -156 663
Net cash flow from financing activities -13 677 -176 202
Net change in cash and cash equivalents 80 556 -110 690
Cash and cash equivalents per 01.01. 58 110 748
Cash and cash equivalents 31.12. 80 614 58
The accompanying notes 1–11 are an integral part of these financial statements.
BEERENBERG AS
ANNUAL ACCOUNTS
Statement of Cash Flows
88
ANNUAL ACCOUNTS 2021 BEERENBERG AS
ACCOUNTING PRINCIPLES
The financial statements have been prepared in accord-
ance with the regulation on simplified adoption of IFRS
(International Financial Reporting Standards). The annual
financial statements were authorised for issue by the board of
directors on 26. April 2022.
CLASSIFICATION OF ITEMS IN THE STATEMENT OF
FINANCIAL POSITION
Assets intended for long-term ownership or use are classified
as non-current assets. Assets associated with the circulation
of goods are classified as current assets. Receivables are
classified as current assets if they fall due within one year.
Analogue criteria are applied to liabilities. However, repay-
ments of non-current receivables and non-current liabilities
made in the first year are not classed as current assets or
current liabilities.
TAX
The tax liability in the income statement comprises both tax
payable and changes in deferred tax for the period. Deferred
tax is calculated at the prevailing tax rate on the basis of the
temporary dierences between book value and taxable value
and on any tax loss carryforward at the end of the financial
year. Tax-increasing and tax-reducing temporary dierences
that are reversed or may be reversed in the same period have
been oset.
INVESTMENTS IN SUBSIDIARIES
Subsidiaries are measured using the cost method in the
separate financial statements. Investments are valued at the
historical cost of the shares unless depreciation has become
necessary. They are depreciated to fair value when the fall
in value is due to circumstances that cannot be assumed
to be temporary and it is deemed necessary in accordance
with generally accepted accounting practices. Write-downs
are reversed when the basis for a write-down is no longer
present.
Any dividends received are in principle recognized as
income, however. Dividends that exceed retained earnings
after purchase are recognized as a reduction in the original
cost. Dividends / Group contributions from subsidiaries are
recognized in the same year that the subsidiary makes the
provision.
LIABILITIES
Liabilities are recognized at their fair value when the loan is
paid out, less transaction costs. In subsequent periods the
loan is recognized at amortised cost using the eective rate of
interest.
FINANCIAL INSTRUMENTS
The Company initially recognizes loans, receivables and
deposits on the date of acquisition. All other financial assets
are recognized initially on the trade date at which the
Company becomes a party to the contractual provisions of
the instrument.
The Company derecognizes a financial asset when the
contractual rights to the cash flows from the asset expire,
or when the Company transfers the contractual rights in a
transaction where substantially all the risks and rewards of
ownership of the financial asset are transferred. All rights and
liabilities in transferred financial assets that are created or
retained as a result of the transfer are recognized separately
as assets or liabilities.
Financial assets and liabilities are oset if the Company
is legally entitled to oset the amounts and intends either
to settle on a net basis or to realise the asset and settle the
liability simultaneously. Oset amounts are presented net in
the statement of financial position.
Financial derivative instruments
The group holds a limited number of financial derivative
instruments to hedge its foreign currency and interest rate
risk exposures. The management strategy is, at present, to
use hedging instruments in order to mitigate the eect of
changes in variable interest rates. The long-term financing of
the group is based on variable interest rates (3 mnth Nibor)
which is subject to fluctuations. The strategy is to minimize
this risk by entering into interest swaps agreements to swap
variable interest rates to fixed rates at a proportion of around
70% of total outstanding loans.
Derivatives are recognized initially at fair value. Changes in
fair value are recognized in profit or loss, except for hedging
instruments that meet the criteria for hedge accounting.
The group follows IFRS 9 criteria’s for classifying a derivative
instrument as a hedging instrument. These are as follows:
a) the hedging relationship consists only of eligible hedg-
ing instruments and eligible hedged items.
b) at the inception of the hedging relationship there is
formal designation and documentation of the hedging
relationship and the entity’s risk management objec-
tive and strategy for undertaking the hedge.
c) the hedging relationship meets all of the following
hedge eectiveness requirements:
Accounting principles
89
BEERENBERG AS ANNUAL ACCOUNTS 2021
Accounting principles
i. there is an economic relationship between the
hedged item and the hedging instrument
ii. the eect of credit risk does not dominate the
value changes that result from that economic
relationship and
iii. the hedge ratio of the hedging relationship is the
same as that resulting from the quantity of the
hedged item that the entity actually hedges and the
quantity of the hedging instrument that the entity
actually uses to hedge that quantity of hedged item.
Hedging instruments classed as cash flow hedges oset
variations in cash flows caused by changes in exchange
rates, interest rates and market values. For cash flow hedges
that meet the criteria for hedge accounting, all gains and
losses on the eective part of the contract are recognized in
comprehensive income and as hedging reserve in the state-
ment of equity, while those on the ineective part are recog-
nized in the income statement under finance.
Derivative financial instruments with positive fair value are
classified as current assets if the remaining maturity of the
hedged item is less than a year into the future, and as fixed
assets when the remaining maturity of the hedged item is
more than a year ahead. Financial derivatives with negative
fair value are classified as a current liability if the remaining
maturity of the hedged item is less than a year into the future,
and as a long-term liability when the remaining maturity is
more than a year ahead.
Refer to note 10 for a specification of the group’s current
derivative instruments.
Note 1 Revenues
2021 2020
Other revenue
Government business compensation scheme 0 11 876
Total other revenue 0 11 876
Other revenue in 2020 is related to government business compensation scheme related to Covid-19, where the company was
entitled to support for certain fixed costs for the months March through August.
Note 2 Long-term investments in other companies
SUBSIDIARY:
Registered
office
Ownership interest /
Voting share
Equity last year
100%
Profit/loss last year
100%
Beerenberg Holding AS Bergen 100% 740 910 0
INTRAGROUP BALANCES ETC.:
Other current receivables 2021 2020
Beerenberg Singapore LTD 0 1 407
Beerenberg Services AS 166 147 156 646
Total 166 147 158 053
(Amounts in NOK 1,000)
90
ANNUAL ACCOUNTS 2021 BEERENBERG AS
Note 3 Restricted funds
The company has no restricted funds as of 31.12.2021.
Note 4 Share capital and shareholder information
The Company’s share capital is 26 700 distributed on
267000000 shares, whereof 1000000 A-shares, and
266000000 B-shares. Nominal value per share is 0.0001.
The A-shares have all rights. The B-shares have voting rights
by 1 vote per 10 share and no rights to dividends. In the event
of a liquidation of the company, the owner of B share shall be
entitled to repayment of paid-in capital at the time when the
share was subscribed (nominal and any share premium), but
no excess amount. The B shareholders right at this point has
a preferential right over the A shareholders right to liquida-
tion dividends. Otherwise, the share classes are equal.
List of the major shareholders at 31.12.21:
Shareholder A-Shares % B-Shares % Total Shares % Controlled by
Segulah IV L.P. 820 875 821% 223 247 653 839% 224 081 385 839%
AlpInvest Partners 2012 I B.V. 92 121 92% 24 931 110 94% 25 023 231 94%
AlpInvest Partners 2012 II B.V. 23 319 23% 6 310 883 24% 6 334 202 24%
GRAA AS 11 792 12% 3 379 600 13% 3 393 800 13% Board Leader
Svein Eggen Holding AS 5 325 05% 1 267 350 05% 1 272 675 05% Board member
Mowin AS 5 325 05% 1 267 350 05% 1 272 675 05% Board member
Other 41 243 41% 5 596 054 21% 5 622 032 21%
Total 1 000 000 100.0% 266 000 000 100.0% 267 000 000 100.0%
Basic earnings per A-share is 0.064 for 2021 compared to 0.065 for 2020.
Basic earnings per share are based on the profit/loss attributable to A-shares and on the weighted average number of ordinary
shares outstanding. Diluted earnings per share are identical as there is no dilutive eect.
Note 5 Equity
Share capital Share premium Other equity Total
Equity as of 01.01.2021 26 700 240 310 450 335 717 345
Profit/loss for the year 64 496 64 496
Other comprehensive income for the year 6 100 6 100
Equity as of 31.12.2021 26 700 240 310 520 930 787 940
(Amounts in NOK 1,000)
91
BEERENBERG AS ANNUAL ACCOUNTS 2021
Note 6 Non-current liabilities, collateral and guarantees, etc.
Liabilities secured by collateral etc.
A 3-year Senior Secured Bond of 750000 was issued in
November 2020. Discount on principal amount and arrange-
ment fee, have been classified net with the Bond. The bond has
every 6-month amortization of 25000 until maturity, in total
125 000. As at 31.12.2021 50000 have been amortized. The
maturity date of the bond is 13 November 2023. At redemption
of the loan a premium of 3.25% on principal amount have to be
paid, therefore Fair Value of the Bond is presented including
this premium. The premium at redemption, as well as discount
and arrangement fee is accrued as interest cost during the
course of the loan. The table below explains the link between
principal amount of the Bond, book value and fair value.
2021 2020
Bond (Senior Secured Callable Bond Issue 2020/2023) 682 487 673 599
Total 682 487 673 599
Nominal bond issue is 700000. The bond issue net of
discount on principal amount and arrangement fee is
recorded at amortised cost at 682 487.
In connection with the bond issue Beerenberg has signed an
150000 super senior credit facility agreement with Danske
Bank.
The Facility agreement includes covenants related to quarterly
Net Total Leverage ratio test (below 7.0 Q4 2021). The group is
in compliance with covenants as of 31st of December 2021.
The subsidiaries Beerenberg Services AS and Beerenberg
Holding AS are jointly and severally liable together with
the parent Company Beerenberg AS for bonds acquired by
Beerenberg AS.
MATURITY STRUCTURE OF FINANCIAL LIABILITIES
The figures in the table show the maturity structure in nominal increments for the Company’s interest-bearing debts,
including interest payments on recognized liabilities as at 31.12:
Book value Fair Value Under 6 months 6–12 months 1–2 years 2–5 years
Bond 682 487 722 750* 55 765 54 666 106 036 651 641
* At redemption of the loan a premium of 3.25% on principal amount have to be paid, therefore Fair Value of the Bond is presented including
this premium and less principal amount of own Bonds.
The interest rate is 3 months’ NIBOR plus a 8.0 percentage point spread.
NET DEBT RECONCILIATION
Liabilities from financing activities
Borrowings Total
Net debt as at 31 December 2019 844 935 844 935
Cash flow changes
Draw on credit facility 6 054 6 054
Incoming payments from new loans 672 845 672 845
Outgoing payment on long term loans -850 000 -850 000
Non cash changes 9 510 9 510
Net debt as at 31 December 2020 683 343 683 343
Cash flow changes
Draw on credit facility -6 054 -6 054
Incoming payments on long term loans 50 000 50 000
Outgoing payment on long term loans -50 000 -50 000
Non cash changes 20 410 20 410
Net debt as at 31 December 2021 697 700 697 700
(Amounts in NOK 1,000)
92
ANNUAL ACCOUNTS 2021 BEERENBERG AS
Note 7 Tax
Tax payable has been calculated as follows 2021 2020
Ordinary result before tax 82 245 82 183
Permanent differences -1 567 -2 583
Change in temporary difference 9 888 -22 336
Basis for tax payable 90 567 57 264
Payable tax in the balance sheet (22%) 19 925 12 598
Calculation of deferred tax / deferred tax assets
Temporary differences through profit/loss
2021 2020
Accrued borrowing costs 17 513 26 401
Self-owned bonds 0 1 000
Precluded interest deduction to be carried forward -22 089 -22 089
Net temporary differences -4 576 5 312
Basis for deferred tax / tax assets -4 576 5 312
22% deferred tax / tax assets (-) through profit/loss -1 007 1 169
Temporary differences through Other Comprehensive Income (OCI) 2021 2020
Derivative 6 697 -1 122
Basis for deferred tax / tax assets 6 697 -1 122
22% deferred tax / tax assets (-) through OCI 1 473 -247
Deferred tax in the statement of financial position 466 922
Distribution of tax expense 2021 2020
Tax payable in the statement of financial position 19 925 12 598
Total tax payable in tax expense 19 925 12 598
Change in deferred tax through profit/loss -2 175 4 914
Tax expense through profit/loss 17 749 17 512
Change in deferred tax/deferred tax assets through OCI 1 719 -883
Tax expense through OCI 1 720 -883
Payable tax in the balance sheet 19 925 12 598
(Amounts in NOK 1,000)
93
BEERENBERG AS ANNUAL ACCOUNTS 2021
Note 8
Payroll costs, number of employees,
remunerations, loans to employees ect.
The Company had no employees in 2021 and is not obliged
to operate an occupational pension scheme under the Act on
Obligatory Occupational Pensions.
No remuneration was paid to the CEO or members of the
board of directors in 2021.
Expensed auditor’s remuneration 2021 2020
Statutory audit (incl. technical assistance
with financial statements)
109 106
Tax advice 0 37
Other audit assurance services 38 210
Total 147 353
The sums stated are exclusive of VAT.
Note 9 Specification of finance income and finance costs
Finance income 2021 2020
Group contribution from Beerenberg Services AS 164 269 156 663
Intragroup interest income 304 834
Gains from purchase and sale of own bonds 1 571 1 000
Other finance income 3 1
Total finance income 166 147 158 497
Finance costs 2021 2020
Intragroup interest costs 3 598 4 415
Interest costs Bond and other interest costs 69 532 76 732
Accrued refinancing fee 9 113 5 820
Total finance costs 82 244 86 966
(Amounts in NOK 1,000)
(Amounts in NOK 1,000)
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ANNUAL ACCOUNTS 2021 BEERENBERG AS
Note 10 Financial instruments
2021 2020
Cash flow hedge (interest rate swap) 6 697 -1 122
Total fair value 6 697 -1 122
The Company has an interest rate swap with a nominal
value of 450000. The Company is swapping variable interest
(3mnth NIBOR) for fixed interest at 0.695%. The fair value
of the interest swap has been calculated by the Group’s bank.
The interest rate swap runs until November 2023. The inter-
est rate swap qualifies for hedge accounting following the
repayment of the old bond issue, and replacement by a new
bond issue in November 2020.
The interest swap eectively reduces interest rate risk, thus
satisfying the criteria for hedge accounting.
The interest swap is valued in accordance with Level 2 of the
valuation hierarchy (IFRS 13), i.e. the value is derived from
observable factors such as market interest rates.
Change in fair value of the cash flow hedge net after tax is
recorded in Other Comprehensive Income.
At 31.12 the fair value of the new interest swap is positive by
6697, net after tax the balance of Hedging reserve is positive
by 5225.
FINANCIAL INSTRUMENTS BY CATEGORY
As at 3112. – Assets
Deposits,
receivables and
cash
Assets at fair
value through
profit/loss
Derivatives used
for hedging
Financial assets
available for sale Total
Derivatives used for cash flow hedging 0 0 6 697 0 6 697
Receivables 164 565 0 0 0 164 565
Cash and cash equivalents 80 614 0 0 0 80 614
Total 245 179 0 6 697 0 251 877
As at 3112. – Liabilities
Financial liabilities
carried at
amortisedcost
Liabilities at fair
value through
profit/loss
Derivatives used
for hedging
Other financial
liabilities Total
Loans excl. statutory liabilities 682 487 0 0 0 682 487
Total 682 487 0 0 0 682 487
Note 11 Events after the reporting date
At the time of publication of the annual report, Russia has invaded Ukraine and strict sanctions have been imposed against
Russia and Belarus. The consequences of the acts of war are uncertain. Beerenberg Group has insignificant activities in and
exposure to these countries, but is following developments closely to detect any changes in our risk assessment.
(Amounts in NOK 1,000)
95
Declaration by the Board of Directors and CEO
We confirm, to our best knowledge, that the financial statements for the period January01
to 31 December 2021 for the parent company Beerenberg AS and for the group has been
prepared in accordance with all applicable accounting standards. We confirm that the
financial statements give a true and fair view of the group’s consolidated assets, liabilities,
financial position and result of the operations. The Board also confirm that the Director’s
Report provides a true and fair view of the development and performance of the business
and the position of the group and the Company, including a description of the key risks and
uncertainty factors that the Beerenberg AS group is facing.
Geir M. Aarstad Sebastian Ehrnrooth Ingelise Arntsen
Chairman
Hilde Drønen Morten Walde
Arild Apelthun
CEO
BERGEN APRIL
Board of Directors at Beerenberg AS
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AUDITOR’S REPORT
PricewaterhouseCoopers AS, Sandviksbodene 2A, Postboks 3984 - Sandviken, NO-5835 Bergen
T: 02316, org. no.: 987 009 713 MVA, www.pwc.no
Statsautoriserte revisorer, medlemmer av Den norske Revisorforening og autorisert regnskapsførerselskap
To the General Meeting of Beerenberg AS
Independent Auditor’s Report
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Beerenberg AS, which comprise:
• The financial statements of the parent company Beerenberg AS (the Company), which
comprise the statement of financial position as at 31 December 2021, the income statement,
statement of comprehensive income and statement of cash flows for the year then ended, and
notes to the financial statements, including a summary of significant accounting policies, and
• The consolidated financial statements of Beerenberg AS and its subsidiaries (the Group),
which comprise the consolidated statement of financial position as at 31 December 2021, the
consolidated income statement, consolidated statement of comprehensive income,
consolidated statement of changes in equity and consolidated 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 2021, and its financial performance and its cash flows for the year then ended in
accordance with simplified application of international accounting standards according to
section 3-9 of the Norwegian Accounting Act, and
• the financial statements give a true and fair view of the financial position of the Group as at 31
December 2021, and its financial performance and its cash flows for the year then ended in
accordance with International Financial Reporting Standards as adopted by the EU.
Our opinion is consistent with our additional report to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Company and the
Group as required by laws and regulations and the International Ethics Standards Board for
Accountants’ International Code of Ethics for Professional Accountants (including International
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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 9 years from the election by the general meeting of the
shareholders on 21 February 2013 for the accounting year 2013.
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.
The Groups business activities are largely unchanged compared to last year. Valuation of goodwill and
Earned, not invoiced revenue contains the same risks and challenges as last year and our focus on
these areas have continued in 2021.
Key Audit Matter How our audit addressed the Key Audit Matter
Valuation of Goodwill
At 31 December 2021, the Group had
recognized Goodwill with a carrying value
of NOK 782 762 thousand.
Goodwill is allocated to groups of cash
generating units identified in accordance
the Group’s operating segments, Services
and Benarx. The impairment assessment
of goodwill showed that the recoverable
amount was higher than the carrying
amount for both segments. Consequently,
no impairment was recognized.
Valuation of goodwill requires
management to exercise judgement
related to, among other, future cash flows
and discount rate applied. We focused on
this area due to the magnitude of the
amounts and the inherent risks related to
judgements made by management when
determining the assumptions applied to
support the valuation of goodwill. We
refer to note 12 in the consolidated
financial statements for further
information.
We obtained an understanding of management’s
valuation process and evaluated relevant internal
control activities. We reviewed management’s
identification of cash-generating units and found these
to be in accordance with IFRS. We reviewed
management’s model and impairment assessments for
the cash generating units where goodwill was allocated
and tested whether the model was mathematically
accurate. We found that the model was based on
recognized principles and that the recoverable amount
was accurately calculated.
We compared the different elements in the discount
rate calculation to our own expectations and the
general expectations in the market and found that the
applied discount rate was reasonable.
We evaluated management’s assumptions related to
future cash flows by comparing them to the budgets
adopted by the Board of Directors and the strategy plan
for the Group’s various cash generating units. We
performed sensitivity analyses and challenged
management’s assumptions related to future cash
flows. We found that the assumptions were reasonable
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and in line with the Group’s current market visibility
and historical hit rates. The terminal growth rate in the
model was compared to the market’s expectation of
long-term inflation.
We challenged management’s historical accuracy by
comparing previous years' assumptions related to
actual results in the related years. We found no
material deviations between the assumptions used in
previous years.
We have read note 12 and assessed the information
there to be in line with the requirements.
Earned, not invoiced revenue
Earned, not invoiced revenue constitutes
NOK 195 220 thousand. We refer to note
6, 13 and 21 in the consolidated financial
statements for more information.
The Group’s contracts are mainly
servicing and maintenance contracts that
are recognized over time. Work
performed is invoiced monthly along with
delivered service and maintenance. At
year-end there will be work performed
during the year, mainly during December
that is not yet invoiced and recorded as
earned, not invoiced revenue. The
estimate requires that management apply
judgement related to the amount of work
performed. We focused on earned, not
invoiced income due to the size of the
amount, and the inherent risk related to
management overestimating the earned,
not invoiced income, which would affect
the Groups results in the financial
statements
.
We obtained an understanding of and evaluated the
assumptions used in the calculation of earned, not
invoiced revenue. To assess the assumptions included
in the calculation of earned, not invoiced revenue, we
obtained an understanding of the customer contracts as
well as management’s process for developing the
estimate including relevant internal control activities.
We challenged the assumptions used in interviews with
management. Further, we agreed the assumptions used
with underlying contracts and other forms of
underlying documentation and tested whether
management’s calculations were mathematically
accurate.
We assessed management’s historical accuracy by
comparing prior years’ assumptions related to earned,
not invoiced income to what was invoiced in the
subsequent year. We found that previous years earned,
not invoiced income, in all material respects was
invoiced in the subsequent years.
We have read note 6, 13 and 21, and assessed the
information there to be in line with the requirements.
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.
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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 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 appears 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 legal requirements.
Our opinion on the Board of Director’s report applies correspondingly to the statements on Corporate
Governance and Corporate Social Responsibility.
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 simplified application of international accounting standards according to the
Norwegian Accounting Act section 3-9, 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 and using 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
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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 or the Group's internal control.
• evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• 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.
We also provide the Audit Committee with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
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.
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Report on Other Legal and Regulatory Requirements
Report on compliance with Regulation on European Single Electronic Format
(ESEF)
Opinion
We have performed an assurance engagement to obtain reasonable assurance that the financial
statements with file name 5967007LIEEXZXFUSW82-2021-12-31_en have been prepared in
accordance with Section 5-5 of the Norwegian Securities Trading Act (Verdipapirhandelloven) and the
accompanying Regulation on European Single Electronic Format (ESEF).
In our opinion, the financial statements have been prepared, in all material respects, in accordance
with the requirements of ESEF.
Management’s Responsibilities
Management is responsible for preparing, tagging and publishing the financial statements in the single
electronic reporting format required in ESEF. This responsibility comprises an adequate process and
the internal control procedures which management determines is necessary for the preparation,
tagging and publication of the financial statements.
Auditor’s Responsibilities
For a description of the auditor’s responsibilities when performing an assurance engagement of the
ESEF reporting, see: https://revisorforeningen.no/revisjonsberetninger
Bergen, 26 April 2022
PricewaterhouseCoopers AS
Marius Kaland Olsen
State Authorised Public Accountant
102
Definition of Alternative
Performance Measures
In this report some terms are used that are not defined in IFRS,
but are terms commonly used by analysts, investors and others in
the business sector. Below these terms are defined.
ORDER BACKLOG
The order backlog consists of sales value of contracts signed. As a significant part of
Beerenberg’s revenue is related to framework agreements it also includes the estimated
value of expected future sales value on framework agreements.
EBITDA
Operating profit (EBIT) + Depreciation and Impairment
EBITDA MARGIN %
EBITDA / Revenue
EBIT
Operating profit (before financial items and taxes)
OPERATING MARGIN
Operating result / Operating Revenue
NET MARGIN %
Net Profit / Operating Revenue
NET WORKING CAPITAL
Total current assets – Cash at bank / Total short-term liabilities less tax payable.
SERIOUS INCIDENT FREQUENCY SIF
The number of actual and potential unintentional serious incidents per 1 million
man-hours worked.
LOST TIME INJURY FREQUENCY LTIF
The number of fatalities and lost time injuries occurred per 1 million man-hours worked.
TOTAL RECORDABLE INJURY FREQUENCY TRIF
Is the number of fatalities, lost time injuries, injuries with alternative work and injuries
requiring medical treatment by a medical professional per million man-hours worked.
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Photography
Fredrik Arff
Design & print
Bodoni AS
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