uno-x energi annual report 2018 · increasingly blended with a variety of renewable biofuels in the...

UNO-X ENERGIANNUAL REPORT2018

Key Figures

Amounts in NOK million

OUTLETS 2018 2017Number of Uno-X outlets per 31 December 288 288

Number of YX outlets per 31 December 261 217

Number of Bonus outlets per 31 December 123 128

RESULT 2018 2017Operating revenue incl. excise duties 19 460 17 597

Excise duties -7 668 -7 711

Operating revenue ex. excise duties 11 792 9 886

Operating profit 410 563

FIFO effect -17 32

Profit before taxes 403 558

Profit for the year 304 456

PROFITABILITY 2018 2017Operating margin 3,5 % 5,7 %

Cash flow margin 5,0 % 7,7 %

Return on assets 9,7 % 14,2 %

Return on equity 19,0 % 31,7 %

BALANCE SHEET 31.12.18 31.12.17Non-current assets 1 683 1 664

Current assets 2 522 2 600

Equity 1 609 1 599

Non-current liabilities 322 329

Current liabilities 2 274 2 336

Total capital 4 205 4 264

Equity ratio 38,3 % 37,5 %

CASH FLOW 2018 2017EBITDA before FIFO 605 728

EBITDA after FIFO 588 760

Net investment in fixed assets 214 315

Cash at 31 December 92 39

Current borrowings at 31 December 189 301

Net interest-bearing debt (receivables) at 31 December 65 240

For definitions of key figures, see page 56.

Uno-X Energi Annual Report 20182

Contents

Key Figures ............................................................................................................... 2

About Uno-X Energi AS ........................................................................................ 4

Directors’ report ..................................................................................................... 8

Consolidated Financial Statements ............................................................. 14

Financial Statements ......................................................................................... 43

Definition of Key Figures .................................................................................. 56

Addresses ............................................................................................................... 57

Auditor’s Report .................................................................................................. 58

YX 7-Eleven Sonsveien

Uno-X Energi Annual Report 2018 3

About Uno-X Energi AS

Uno-X Energi is an energy company, specialising in marketing and sale of fuels and lubricants for commercial and private customers. Today, Uno-X Energi consists of seven financially strong and well-functioning companies, four in Norway and three in Denmark.

Considerable trust and responsibility is placed with our business areas and our employees.

Since 2006, we have worked to strengthen and develop Uno-X Energi based on Reitangruppen’s philosophy.

In our value-based approach, we believe that our culture and structure are important dimensions that strengthen each other. A well-functioning corporate structure was established early on, and we have

maintained a strong focus on recruiting the right people to our teams. The aim has been to develop and strengthen a performance culture where everyone works enthusiastically towards common goals.

Our belief in the individual is strong, and it is important for us to make our employees feel valuable, to inspire them to unleash and develop their skills, to take on challenges, to have fun and find passion in their work.

A value-based culture

HistoryOur business has offered products to the market for more than a century. Our history goes back to the early 20th century, with Norsk Hydro (established

in 1905) and Texaco (established in 1902). Hydro Texaco was established in 1995, as a result of the merger of Hydro Olje and Texaco in Norway and Denmark. In 2006, Reitangruppen

acquired the Hydro Texaco companies in Norway and Denmark, and established separate companies for each business area from 2009.

Our overall vision is to be recognised as the most efficient and most value-driven fuel and lubricant company in the Nordic region.


European countries have set ambitious climate targets, and the transport sector accounts for a considerable part of today’s greenhouse gas emissions. We recognize our responsibility for the environment, and we are committed to contributing to improved air quality.

Our society will need liquid fuels to power combustion engine vehicles for the foreseeable future, and fossil fuels such as petrol and diesel must be increasingly blended with a variety of renewable biofuels in the transition to a fossil-free future. In addition, electricity, hydrogen, and other non-emission sources of energy will gradually become more important parts of the energy mix.

Increased blending of renewable biofuels into our liquid fuels, always free of palm oil products, will allow Uno-X to

achieve its objective of contributing to reduce greenhouse gas emissions from the transport sector.

Increasing the number of fuel-cell cars and heavy trucks on the roads will also be a very sustainable way to reduce emissions from the transport sector. Therefore, we are working to build an infrastructure of hydrogen fueling stations in Norway. A fuel-cell car is filled with hydrogen in approximately

three minutes, and offers the same level of comfort and mileage as a combustion engine car or truck.

In addition, ultra-fast electric car chargers will be established at a few chosen YX full-service stations.

With biofuels, hydrogen and electricity in our portfolio, we are well-positioned to deliver the energy products demanded by our customers going forward.

Uno-X Danmark DK

Uno-X Forsyning NO

YX Norge NO

Uno-X Smøreolje NO/DK

YX Danmark DK

Scanlube SWE Skanol NO/DK

Samtank DKUno-X Hydrogen NO

Uno-X Norge NO

Uno-X Energi

Future customers and renewable energy

Our company structure


Our businesses in Norway and Denmark

Uno-X self-service stations in Norway Our nation-wide network of Uno-X branded self-service stations in Norway gives the customer an efficient and convenient experience and the lowest-priced fuels. Our Norwegian Uno-X network has a leading position in its market and consisted of 169 stations at year-end.

Three Uno-X locations offer hydrogen, and we will be proud to add more hydrogen refuelling points to our network going forward.

YX truck stations, commercial, agricultural and heating fuels in Denmark.YX Danmark A/S sells fuels from self-service truck locations, customized for the transport sector.

The company also offers fuels for the commercial and agricultural markets, as well as heating fuels for private and commercial customers.

Lubricants in Norway and DenmarkOur two lubricant companies, one in each country, sell high-quality Texaco lubricants. The products are made on licence from Chevron Lubricants at the lubricants factory Scanlube, an associated company. The lubricants are sold directly to customers, and in Norway also through local dealers. Exports to Greenland, Iceland, the Faroes, Finland and the three Baltic states are handled by the Danish part of our lubricant business.

Sourcing, storage and distributionUno-X Energi’s comprehensive sourcing and storage function, including operation of the group’s tank facilities along the Norwegian coast, is handled by Uno-X Forsyning AS in Norway.

In Denmark, this function is operated by YX Danmark A/S.

The distribution of liquid fuels is handled by our associated company Skanol in both countries.

YX full-service stations and YX Truck in NorwayYX aims to be the best and most efficient supplier and partner for dealers that own and operate service stations. The company has a well-functioning cooperation with the dealers through YX Dealers’ Forum, with a chain of 216 stations at year-end. By Q1 2019, 90 Shell 7-Eleven stations will be branded YX 7-Eleven and included in the chain.

YX is also well positioned in the transport sector with a chain of customized self-service truck stations.

Uno-X self-service stations in DenmarkUno-X Danmark A/S has a nation-wide network of self-service stations, offering the customer efficiency and convenience when buying low-priced fuels at easily accessible locations.

Like the Uno-X network in Norway, the Danish network holds a leading position in its market and consisted of 242 stations at the end of the year.


OutlookOur companies have once again delivered solid results in 2018, and Uno-X Energi is well-positioned for the future.

Corporate Social Responsibility

Since 2010, Uno-X has been a committed corporate partner and financial sponsor of MOT, an organization that aims to promote development of strong and socially conscious young people.

Cycling and developmentTwo of our great passions are cycling and development. In Norway, Uno-X has been committed to cycling since 2013, through several sponsorships. We organized our own 3-day stage race for the first time this year in Norway, Uno-X Development Weekend. And Dare Bikes Development Team was created as an initiative for young cyclists with talent for climbing. From 2017, cycling sponsorships have also been important in Uno-X Denmark.

Through our commitments to cycling, we hope to inspire more people to discover the joy of using bicycles in everyday life.

Uno-X Norwegian Development TeamThe continental cycling team Uno-X Norwegian Development Team was established in 2016, and is a long-term commitment. As a development team for young road cycling talents, the aim

is to build robust individuals and strong cyclists by focusing on performance development rather than short-term results. The team is a MOT ambassador team, building its culture on MOT’s philosophy. The 2018 season was a very good second year for the cycling team in every aspect, and we are looking forward to the coming years with excitement.


Directors’ report

UNO-X ENERGI

Uno-X Energi is one of five business areas in Reitangruppen, along with REMA 1000, Reitan Convenience, Reitan Kapital and Reitan Eiendom.

The vision of ReitangruppenReitangruppen aims to be recognised as the most value-driven company, and the Reitan-mindset is based on eight values and eleven key success factors. Value-based leaderhip has been crucial, building a strong corporate culture in all business areas.

Values• We focus on our business idea

• We keep a high business moral

• We are committed to be debt-free

• We encourage a winning culture

• We have a positive and proactive mindset

• We talk with each other, not about each other

• The customer is our ultimate boss

• We want our work to be enjoyable and profitable

The vision of Uno-X EnergiFor Uno-X Energi, the aim is to be the most efficient and most value-driven fuel and lubricant company in the Nordic region.

OPERATIONS

Uno-X Energi is an energy company located in Denmark and Norway, specialising in marketing and sale of fuels and lubricants for commercial and private customers. Uno-X Energi has established a corporate structure proven to be robust and well-functioning. Today, Uno-X Energi consists of seven financially strong and well-functioning companies: Uno-X Danmark A/S, YX Danmark A/S and Uno-X Smøreolie A/S in Denmark, and Uno-X Norge AS, YX Norge AS, Uno-X Forsyning AS and Uno-X Smøreolje AS in Norway.

In addition, Uno-X Energi AS has a 50% interest in the Danish company Skanol A/S and a 50% interest in the Swedish company Scanlube AB. YX Danmark A/S also holds a 50% interest in Samtank A/S, a storage company for liquid products operating in Denmark, specialising in oil and petrol.

Uno-X Energi AS and its Norwegian operations are headquartered in Lysaker outside Oslo, while the Danish operations are headquartered in Søborg, Copenhagen.

REVIEW OF THE ANNUAL ACCOUNTS

The financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) as endorsed by the European Union. The separate financial statements of the parent company have been prepared in accordance with provisions of simplified IFRS, provided in the regulations to the Norwegian Accounting Act, section 3-9, subsection 5.

By the end of 2018, Uno-X Energi’s operations included 411 self-service stations (Uno-X and Bonus) and 261 full-service stations (YX). The company also has self-service diesel stations for the transport market (YX Truck) and a considerable business in commercial supply of petroleum products and fabrication of lubricants.

ResultsUno-X Energi’s net revenues were NOK 11 792 million in 2018, an increase from NOK 9 886 million in 2017. The product volume sold was 1 751 (1 000 m³), compared to 1 834 (1 000 m³) in 2017. The main reason for the reduced volume was the divestment of the bulk activities in the third quarter of 2017. The average Brent Blend price was USD 72 per barrel in 2018, compared to USD 55 per barrel in 2017. Oil prices increased in the beginning of the year and was at USD 85 per barrel in the beginning of October. From October it dropped and ended around USD 55 per barrel. This resulted in total loss on inventory (FIFO) of NOK 17 million for the year.

Earnings before interest, tax, depreciation and amortization (EBITDA) amounted to NOK 588 million (NOK 760 million), while operating profits were NOK 410 million (NOK 563 million). Profit before income tax was NOK 403 million (NOK 558 million). Profit before income tax included an accounting loss on inventory (FIFO) of NOK 17 million (gain of NOK 32 million). Profit for the year amounted to NOK 304 million (NOK 456 million).

Balance sheet and liquidityTotal assets as at 31 December 2018 were NOK 4 205 million (NOK 4 264 million), while liquid assets as at 31 December 2018 were NOK 92 million (NOK 39 million). Net interest bearing debt was NOK 65 million (NOK 240 million), and investments in non-current assets were NOK 229 million (NOK 350 million). Equity at the end of the year was NOK 1 609 million (NOK 1 599 million), which gives an equity ratio of 38 percent (38 percent).

Cash flow from operationsCash flow from operations amounted to NOK 780 million (NOK 382 million). EBITDA was NOK 588 million (NOK 760 million). The difference between cash flow from operations and EBITDA is mainly due to changes in working capital and


investments. Changes in working capital resulted in a cash flow of NOK 168 million (NOK -256 million), while net cash used for investment activities amounted to NOK 205 million (NOK 216 million).

The group has a solid financial position. In the opinion of the board of directors, the financial statements provide a true and fair view of the company’s operations and financial status. The board confirms that the financial statements have been prepared on the assumption of a going concern.

Financial riskUno-X Energi has its core business in trading of oil products, and is consequently exposed to risk relating to oil price changes. Liquid reserves and available credit facilities are of considerable importance to the group’s liquidity situation. The limits of the credit facilities available to the group vary according to its outstanding receivables and inventories. Consequently, its access to debt financing varies largely with the fluctuations in its need for working capital.

The group’s turnover consists of sales to private, commercial and industrial customers, and to dealers that own and operate stations belonging to the YX brand. The group has established routines for credit assessment and continuous follow-up of individual customers. In addition, the Danish subsidiaries has reduced its risk for losses on accounts receivable through the use of credit insurance.

Historically, defaults and losses on accounts receivable have been low, and the group has not realised major losses in 2018. In 2018, the group experienced a loss of NOK 10 million (NOK 6 million) on its accounts receivable. In the Danish subsidiaries the procurement of oil products is mainly settled in USD. The procurement of oil products in Norway is mainly settled in NOK. Uno-X Energi seeks to limit exposure related to ownership interests in foreign operations by adjusting the composition of the debt portfolio to reflect the importance of the individual currency and country in relation to the group’s total activities.

Note 3 – Financial risk management provides a more detailed description of the group’s financial risk and sensitivity to changes in oil prices, interest levels and currency rates.

BUSINESS IN NORWAY

Self-service stationsThe nation-wide network of Uno-X branded self-service stations in Norway gives the customer an efficient and convenient experience and the lowest priced motor fuels.

The network has a leading position in its market and consisted of 169 stations at the end of the year. Three Uno-X locations offer hydrogen, and Uno-X Norge will be proud to add more hydrogen refueling points to its network going forward.

The company has further strengthened its position as market leader in its segment in 2018. The financial performance of Uno-X Norge was satisfactory.

Full-service stations and truck stationsWith the two business areas YX Betjent (full-service stations) and YX Truck (self-service truck stations) YX Norge aims to be the best and most efficient supplier and partner for dealers that own and operate service stations (DODOs).

The cooperation with YX Forhandlerforum (YX Dealers’ Forum) is well-functioning and the chain is growing through recruitment of DODOs from other brands. By the end of 2018, the YX chain consisted of 216 DODOs. Reitangruppen’s agreement with Shell expired by year-end 2018. 45 Shell 7-Eleven stations were branded YX 7-Eleven by year-end. By end of Q1 2019, 90 stations will be branded YX 7-Eleven and included in the chain.

Due to market changes, margins have been under more pressure than in previous years, and YX has implemented necessary measures to strengthen competitiveness.

All in all, YX Norge is well-positioned for the future.

Sourcing and storageUno-X Forsyning AS is responsible for sourcing, storing and supplying transport fuels on behalf of Uno-X Energi in Norway. The company’s main objective is to be the key success factor for YX Norge and Uno-X Norge to win in the marketplace. This is achieved through safe and reliable supply of the right quality fuels at the most competitive prices, while collaborating with strategic partners.

The company operates its own terminals located along the coast of Norway and accesses other terminals through third party commercial agreements. In 2018, the company increased the share of sustainable biofuels in its product mix, by sourcing more advanced (waste-based) biofuels while securing palm oil-free purchases. Therefore, Uno-X Energi contributes to significant reductions in greenhouse gas emissions from the transport sector.

BUSINESS IN DENMARK

Self-service stationsThe nation-wide network of self-service stations in Denmark offers low-priced motor fuels at easily accessible locations, and some selected locations offer car wash services.

At year-end, the company had 242 stations, 119 Uno-X stations and 123 Bonus stations. 46 of the Uno-X stations have been upgraded with a new station design focusing on user-friendliness and safety for the customer. 73 Uno-X stations will be upgraded in 2019.


Product margins continued to be under pressure throughout the year, and were lower than in 2017, somewhat offset by increased volumes. After restructuring and upgrading both Uno-X and Bonus, both chains can be operated at lower cost levels, and Uno-X Danmark will continue its focus on strengthening its market position in the years to come.

All in all it has been a positive year for Uno-X Denmark.

Truck stations, commercial fuels and heating productsYX Danmark mainly serves the Danish corporate market, and delivers some heating fuel to the private market.

With the objective of making the YX brand a strong symbol of the company’s commitment to its customers, the activities are organised in three divisions: YX Ervherv (commercial fuels), YX Landbrug (agriculture) and YX Fyringsolie (heating fuel).

YX Erhverv is a major supplier to Danish companies and transport, and has the largest truck network (self-service stations) in the country.

YX Landbrug focuses on Danish farmers, and the company shares a long-term commitment with the Danish agricultural sector. The market is characterised by strong competition, both from traditional oil companies and other players.

YX Fyringsolie helps keep Danish homes warm throughout the year. The market is characterised by a natural adaptation to other heating methods.

2018 has been a positive year for YX Danmark.

Sourcing YX Danmark A/S handles sourcing of fuel products to both YX Danmark A/S and Uno-X Danmark A/S. Sourcing and supply are vital functions, and significant demands are made regarding availability, product quality and competitive prices.

LUBRICANTS IN NORWAY AND DENMARK

The lubricant companies in Denmark and Norway engage in marketing, sale, storage and distribution of Texaco-branded lubricants. In addition, the Danish organisation is responsible for exports to Greenland, Iceland, the Faroes, Finland and the three Baltic states, in close cooperation with local companies in the respective countries.

Lubricants are sold directly to customers, and in Norway also through local dealers.

The financial performance of the lubricant companies has been satisfactory in 2018.

DISTRIBUTION IN NORWAY AND DENMARK

Skanol A/SThe cooperation with the distribution company Skanol A/S, an associated company in the group, is crucial both in Norway and in Denmark. With its professional route planning function and tanker fleet for transportation, Skanol ensures that the right products are delivered at the right place at the right time.

CULTURE AND ENVIRONMENT

Value-based cultureBased on the Reitan-mindset, the vision for Uno-X Energi is to be the most effective and most value-driven company in the Nordic region.

Uno-X Energi places considerable trust in its subsidiaries, which subsequently organise their operations in a way that makes the distance between responsibility, authority and operative implementation as short as possible. The belief in the individual lies at the core of the Reitan-mindset, and all Uno-X companies assign considerable trust and responsibility to each employee.

Uno-X seeks talented and dedicated people, and the organisational structure supports development and growth for the individual employee, based on a strong overall understanding of the business. Having fun while creating values through inspirational and enthusiastic cooperation is important in Uno-X.

Value-based leadership Uno-X leaders exercise value-based leadership which is defined as “developing great people who take action through trust”. It means that a Uno-X leader must have the courage to be clear about expectations and then trust people. Then the leader’s responsibility is to be an inspiration, and enable people to make good decisions based on the Reitan mindset.

Employee development programmesReitangruppen gives its business areas the opportunity to participate in Reitangruppen’s Value Academy for leaders, and Uno-X leaders participate every year. Uno-X Energi contributes at the Value Academy by teaching in some programs, sharing Uno-X’ experiences from building a value-based performance culture based on the Reitan mindset.

As part of the continuous work to maintain a strong value-based culture, Uno-X also completes tailor-made development initiatives for companies, groups and individuals.

EmployeesAt the end of 2018, Uno-X Energi had 147 permanent employees. The management of Uno-X Energi’s companies consists of seven people, six men and one woman.

The board of directors in Uno-X Energi extends its thanks to all employees for good work performance in 2018.


Diversity and equalityUno-X emphasises a positive attitude towards people, good human relations and equal opportunities for women and men. In cases of recruiting, training and reorganisation, the most important criteria are skills, background and potential, independent of age, gender or ethnic origin.

Health promotion initiativesPhysical and mental health are interdependent, and Uno-X offers a number of social and physical activities to ensure a holistic and good working environment. By inspiring employees to take care of their health, Uno-X also makes a small contribution to better public health, while employees gain more energy and vigor both at work and at home. Uno-X is proud to report that employees, on average, have exercised more than the official recommendation of half an hour a day in 2018.

The overall sick leave for the year was 1.7 percent. Lost time injuries have not been registered in 2018.

External environment Uno-X business activities are based on trading and marketing of transport fuels and lubricants in Norway and Denmark. This requires special expertise and capital investments in product handling, key competencies to operate under a demanding legal framework, and focus on compliance with high safety and environmental standards.

Fossil fuel prices were steady during the first half of 2018, while witnessing a decline in the second half. Biofuel saw a sharp increase in the third quarter, normalizing again towards the end of the year.

As regards the specific area of biofuels, Uno-X increased the sourcing of advanced biofuels based on waste and residues in its product mix in 2018, while securing palm oil-free purchases. In 2018, Uno-X in Norway achieved a biofuel blend of nearly 11% volume, while Uno-X in Denmark achieved the 5.75% energy content mandate. The ambition is to continue increasing the share of advanced biofuels in both gasoline and diesel sales, while securing palm oil-free biofuel purchases, hence minimizing the risk of deforestation.

In 2018, the Uno-X Energi companies have cut emissions by more than 170 thousand tons of CO2 by blending in biofuels, as compared with pure fossil fuels.

Uno-X Forsyning AS is ISO 9001:2015 certified, while Uno-X Smøreolje, both in Denmark and in Norway, is ISO 9001:2015 and ISO 14001:2015 certified.

CORPORATE SOCIAL RESPONSIBILITY

MOTMOT (Norwegian for “courage”) was established in Norway in 1997. The main objective of MOT is to develop strong and socially conscious young people. MOT offers a comprehensive

model consisting of programs for young people in secondary and upper secondary school, also encompassing the recreational activity arena.

Since 2010 in Norway and 2013 in Denmark, Uno-X has been a committed partner to MOT, and has gained positive experiences. The cooperation gives Uno-X an opportunity to help MOT in their important work for and with young people, and is also valuable in building the internal culture in the Uno-X companies. A strong belief in the individual is a common core of the values and attitudes supported by Uno-X and MOT.

SponsorshipsIn 2014, Uno-X chose to enter Norwegian cycling through a range of long-term sponsorships, aiming to increase enthusiasm for and interest in cycling in Norway. Alongside Uno-X, the organization MOT is also profiled as a part of this initiative. Uno-X organised its own 3-day stage race for the first time in Norway this year, Uno-X Development Weekend. And Dare Bikes Development Team was created as an initiative for young cyclists with talent for climbing. From 2017, cycling sponsorships have also been important in Uno-X Denmark.

Uno-X Norwegian Development TeamUno-X established the continental team Uno-X Norwegian Development Team in 2016, a development team for young talents. The ambition is to build robust individuals and great cyclists by focusing on long-term development, rather than short-term goals. The team is an ambassador team for MOT, building its culture on MOT’s philosophy.

Through the commitment to cycling, Uno-X hopes to inspire more people to discover the joy of using bicycles in their everyday life.

OUTLOOK

Uno-X Energi is well-prepared for the future, although there is always uncertainty related to future development.

European countries have set ambitious climate targets, and the transport sector accounts for a considerable part of today’s greenhouse gas emissions. Uno-X recognises its responsibility for the environment, and is committed to contributing to improved air quality, while continuing to meet the energy demands of the customers.

The current market conditions in the Nordic countries still give reason to expect stability in the sale of motor fuels for commercial road transport. Fuel efficiency is increasing, and average fuel consumption per car is declining, however, these trends are partly offset by an increasing population. A declining demand for heating fuels is expected.


Multiple sources of energy will be needed in the future. Fossil fuels such as petrol and diesel will continue to energize vehicles for a long time, and increased blending of renewable biofuels will help reduce greenhouse gas emissions from combustion engine cars. Uno-X is positioned to be able to increase its blending of sustainable biofuels, with no blending of palm oil, and believes this is crucial for the transition to a low-emission society.

Other important parts of the future energy mix are electricity, hydrogen and other non-emission sources. The number of electric cars is increasing, especially in Norway, and there will gradually be more hydrogen cars on the road. Uno-X’ response to this is an ambition to supply hydrogen at minimum 20 of the

energy-stations in the Norwegian Uno-X chain, and to offer ultra-fast electric car chargers at selected locations in the full-service chain. Overall, Uno-X Energi is very well-positioned to be able to deliver the energy demanded by customers in the future.

In the years ahead, Uno-X Energi will continue to focus on growth and development based on the Reitan-mindset, and its focused company structure proven to be robust and highly-functional.

Uno-X Energi expects another year of stable value creation for its stakeholders in 2019.

Kristin S. GentonBoard member

Vegar KulsetBoard member/CEO

Oslo, 4th of March 2019 The Board of Directors of Uno-X Energi AS

Odd ReitanChairman of the Board


Consolidated Financial Statements

14Uno-X Energi Annual Report 2018

Consolidated Financial Statements

Uno-X Energi


15 Uno-X Energi Annual Report 2018

Consolidated Comprehensive income

Amounts in NOK million Note 2018 2017

Operating revenue incl. excise duties 19,460 17,597Excise duties -7,668 -7,711

Operating revenue 6 11,792 9,886Other income 7 15 13Net other gains (losses) 8 -3 99Share of profit (loss) of associates 16 -18 22Cost of goods sold 20 -10,145 -8,191Employee benefit expense 9 -203 -208Other operating expenses 10, 11 -850 -861EBITDA 588 760

Amortisation and impairment intangible assets 14 -27 -38Depreciation and impairment property, plant and equipment 15 -151 -159EBIT (Operating profit) 410 563

Interest income 12 9 6Interest expenses 12 -17 -17Other financial income (expenses) 12 1 6Net finance income (expenses) -7 -5

Profit before income tax expenses 403 558

Income tax expenses 13 -99 -102Profit for the year 304 456

Other comprehensive income:Remeasurement of pension liabilities 1 -5Items that will not be reclassified to income statement 1 -5

Cash flow hedges -8 -1Change in value of available-for-sale financial assets - -4Currency translation differences 23 13 73Items that may be reclassified subsequently to income statement 5 68

Other comprehensive income 6 63

Total comprehensive income for the year 310 519



Balance Sheet - Assets


Non-current assets

Deferred income tax assets 13 79 84Intangible assets 14 190 203Investment property 9 11Property, plant and equipment 15 1,265 1,225Investments in associated companies and joint ventures 16 76 85Financial investments 18 17 22Trade and other receivables 19 47 34Total non-current assets 1,683 1,664

Current assets

Inventories 20 796 756Trade and other receivables 19 1,634 1,805Cash 21 92 39Total current assets 2,522 2,600

Total assets 4,205 4,264





Non-current assets

Deferred income tax assets 13 79 84Intangible assets 14 190 203Investment property 9 11Property, plant and equipment 15 1,265 1,225Investments in associated companies and joint ventures 16 76 85Financial investments 18 17 22Trade and other receivables 19 47 34Total non-current assets 1,683 1,664

Current assets

Inventories 20 796 756Trade and other receivables 19 1,634 1,805Cash 21 92 39Total current assets 2,522 2,600



Balance Sheet - Equity and liabilities


Equity

Share capital 22 100 100Share premium reserve 22 340 340Other reserves 23 162 157Retained earnings 1,007 1,002Total equity 1,609 1,599

Non-current liabilities

Deferred income tax liabilities 13 5 2Pension liabilities 9 55 60Provisions for other liabilities 24 262 267Total non-current liabilities 322 329

Current liabilities

Provisions for other liabilities 24 30 18Current income tax liabilities 13 48 47Borrowings 25, 26 189 301Trade and other payables 29 2,007 1,970Total current liabilities 2,274 2,336

Total liabilities 2,596 2,665

Total equity and liabilities 4,205 4,264

Oslo, 4th March 2019The Board of Directors of Uno-X Energi AS






Equity

Amounts in NOK millionShare capital and premium

Other reserves

Retained earnings

Total equity

Equity at 1 January 2017 440 89 751 1,280

Profit for the year - - 456 456

Remeasurement of pension liabilities - - -5 -5Items that will not be reclassified to income statement - - -5 -5

Cash flow hedges - -1 - -1Change in value of available-for-sale financial assets - -4 - -4Currency translation differences - 73 - 73Items that may be reclassified subsequently to income statement - 68 - 68

Other comprehensive income - 68 -5 63

Total comprehensive income - 68 451 519

Dividends - - -200 -200Equity at 31 December 2017 440 157 1,002 1,599


Remeasurement of pension liabilities - - 1 1Items that will not be reclassified to income statement - - 1 1

Cash flow hedges - -8 - -8Currency translation differences - 13 - 13Items that may be reclassified subsequently to income statement - 5 - 5

Other comprehensive income - 5 1 6





Equity


Other reserves

Retained earnings

Total equity

Equity at 1 January 2017 440 89 751 1,280


Remeasurement of pension liabilities - - -5 -5Items that will not be reclassified to income statement - - -5 -5

Cash flow hedges - -1 - -1Change in value of available-for-sale financial assets - -4 - -4Currency translation differences - 73 - 73Items that may be reclassified subsequently to income statement - 68 - 68

Other comprehensive income - 68 -5 63




Remeasurement of pension liabilities - - 1 1Items that will not be reclassified to income statement - - 1 1

Cash flow hedges - -8 - -8Currency translation differences - 13 - 13Items that may be reclassified subsequently to income statement - 5 - 5

Other comprehensive income - 5 1 6




Statement of Cash Flow


Cash generated from operations

Profit before income tax 403 558Impairment and amortisation, intangible fixed assets 27 38Depreciation and amortisation of property, plant and equipment 151 159Loss (profit) on disposals of property, plant and equipment 8 3 13Loss (profit) on sale of subsidiaries 8 -1 -113Net unrealised gains (losses) on financial investments 8 5 -Revaluation of investment property - -1Dividend included in the consolidated comprehensive income - not paid - -2Finance costs - net 12 7 5Share of profit from associates 18 -22Foreign exchange losses(gains) on operating activities 7 -1 3

Inventories -40 -35Trade and other receivables 160 -354Trade and other payables 48 133Cash generated from operations 780 382

Cash generated from operations 780 382Interest paid 12 -8 -11Income tax paid -103 -136Net cash generated from operating activities 669 235

Cash flows from investment activities

Net proceeds from sales and purchase of investments and property, plant and equipment - -187Purchase (net) of intangible assets 14 -9 -33Dividend payment received from associates 16 3 4Net cash flow from investment activities -205 -216

Cash flows from financing activities

Net foreign exchange gains (losses), financing activities 12 1 6Dividends paid to owners of parent -300 -200Net cash used in financing activities -299 -194

Net (decrease)/increase in cash 165 -175

Cash at 1 January 21 -262 -87Cash at 31 December 21 -97 -262

The groups financing solution is classified as an overdraft facility, this scheme is included in cash.

As of 31 December 2018 Uno-X Energi has unused credit facilities of NOK 1212 million.



Notes to the Financial Statements

Note 1 - General information ....................................................................................................................................................21Note 2 - Accounting policies .....................................................................................................................................................21Note 3 - Financial risk management ........................................................................................................................................22Note 4 - Critical accounting estimates and jugdments........................................................................................................23Note 5 - Segment reporting - Geographical...........................................................................................................................24Note 6 - Operating revenue ......................................................................................................................................................25Note 7 - Other income................................................................................................................................................................25Note 8 - Net other gains(losses) ...............................................................................................................................................25Note 9 - Employee benefit expense, fees and key management compensation ..........................................................26Note 10 - Other operating expenses.......................................................................................................................................27Note 11 - Leases ..........................................................................................................................................................................28Note 12 - Net financial items ....................................................................................................................................................29Note 13 - Income tax ..................................................................................................................................................................29Note 14 - Intangible assets ........................................................................................................................................................32Note 15 - Property plant and equipment ...............................................................................................................................33Note 16 - Investments in associated companies ..................................................................................................................34Note 17 - Investments in susidiaries .......................................................................................................................................35Note 18 - Financial instruments by category ........................................................................................................................35Note 19 - Trade and other receivables ...................................................................................................................................37Note 20 - Inventories ..................................................................................................................................................................38Note 21 - Cash..............................................................................................................................................................................38Note 22 - Share capital, premium and shareholders............................................................................................................38Note 23 - Other reserves ...........................................................................................................................................................39Note 24 - Provisions for other liabilities.................................................................................................................................39Note 25 - Borrowings..................................................................................................................................................................40Note 26 - Loan agreements .......................................................................................................................................................41Note 27 - Guarantees..................................................................................................................................................................41Note 28 - Net interest bearing liabilities ................................................................................................................................41Note 29 - Trade and other payables........................................................................................................................................42Note 30 - Related parties ...........................................................................................................................................................42




Note 1 - General information ....................................................................................................................................................21Note 2 - Accounting policies .....................................................................................................................................................21Note 3 - Financial risk management ........................................................................................................................................22Note 4 - Critical accounting estimates and jugdments........................................................................................................23Note 5 - Segment reporting - Geographical...........................................................................................................................24Note 6 - Operating revenue ......................................................................................................................................................25Note 7 - Other income................................................................................................................................................................25Note 8 - Net other gains(losses) ...............................................................................................................................................25Note 9 - Employee benefit expense, fees and key management compensation ..........................................................26Note 10 - Other operating expenses.......................................................................................................................................27Note 11 - Leases ..........................................................................................................................................................................28Note 12 - Net financial items ....................................................................................................................................................29Note 13 - Income tax ..................................................................................................................................................................29Note 14 - Intangible assets ........................................................................................................................................................32Note 15 - Property plant and equipment ...............................................................................................................................33Note 16 - Investments in associated companies ..................................................................................................................34Note 17 - Investments in susidiaries .......................................................................................................................................35Note 18 - Financial instruments by category ........................................................................................................................35Note 19 - Trade and other receivables ...................................................................................................................................37Note 20 - Inventories ..................................................................................................................................................................38Note 21 - Cash..............................................................................................................................................................................38Note 22 - Share capital, premium and shareholders............................................................................................................38Note 23 - Other reserves ...........................................................................................................................................................39Note 24 - Provisions for other liabilities.................................................................................................................................39Note 25 - Borrowings..................................................................................................................................................................40Note 26 - Loan agreements .......................................................................................................................................................41Note 27 - Guarantees..................................................................................................................................................................41Note 28 - Net interest bearing liabilities ................................................................................................................................41Note 29 - Trade and other payables........................................................................................................................................42Note 30 - Related parties ...........................................................................................................................................................42


Note 1 – General informationUno-X Energi is a group consisting of the trade companies Uno-X Danmark A/S (Denmark), YX Danmark A/S (Denmark), Uno-X Smøreolje A/S (Norway and Denmark), Uno-X Norge AS (Norway), YX Norge AS (Norway) and Uno-X Forsyning AS (Norway).

The parent company, Uno-X Energi AS is registered and domiciled in Norway, and its head office is located at Lysaker, Bærum. Uno-X Energi AS

is 95 percent owned by Reitangruppen AS. Odd Reitan Private Holding AS is the group’s ultimate parent company. Reitangruppen AS’ head office is located at Lade Gaard in Trondheim. Uno-X Energi AS is included in the consolidated financial statements of Reitangruppen AS.

The consolidated financial statements of Uno-X Energi AS were approved by the company’s Board of Directors on 4 March 2019.

Note 2 – Accounting policiesThe principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

2.1 Basis of preparationThe consolidated financial statements of Uno-X Energi AS have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU.

The consolidated financial statements are prepared under the historical cost convention, as modified by the revaluation of land and buildings, financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.

The preparation of financial statements in conformity with IFRS requires the use of estimates. Furthermore, the application of accounting principles requires management to exercise judgment. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in note 4.

The consolidated financial statements are prepared under the going concern assumption.

2.2 Consolidation

2.2.a SubsidiariesSubsidiaries are all entities (including structured entities) over which the group has control. The group controls an entity when the group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date that control ceases.

2.2.b AssociatesAssociates are companies in which the group has significant influence but not control. Significant influence normally exists where the group has between 20 and 50 percent of the voting rights. Investments in associates are included using the equity method.

2.3 Foreign currency translation

Items included in the financial statements of each of the group’s entities are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The consolidated financial statements are presented in Norwegian krone (NOK), which is the group’s presentation currency.

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement.

Foreign exchange gains and losses that relate to working capital are classified as operating profit/loss. Currency items related to financing activities are included in net financial income (expenses).

2.4 New and amended standards adopted by the group

IFRS 15 Revenue from contracts with customers replaces IAS 11 Construction contracts, IAS 18 Revenue recognition and related guidance on revenue recognition. IFRS 15 establishes a five-step model to account for revenue arising from contracts with customers. Under IFRS 15, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer.The group adopted the new standard 1 January 2018 using the full retrospective method. The standard has no material impact on the consolidated financial statements.

IFRS 9 Financial instruments replaces IAS 39 Financial instruments: Recognition and measurement. The group adpopted this new standard 1 January 2018 with full retrospective method. This standard has no material impact on the consolidated financial statements.

2.5 New standards and amendments to / interpretations of existing standards that are not yet effective and not have been early adopted by the groupIFRS 16 Leases take effect from 1 January 2019. The standard requires recognition of an asset and a liability on the balance sheet related to the lease liabilities. The group will adopt the standard using the modified retrospective method, where the right-of-use asset (before adjustments of accrued lease payments etc.) is to be set equal to the lease liability per 1 January 2019.

The total effects of the standard have not been determined. The group expects that the lease obligation as of 1 January 2019 will amount to approximately NOK 600 mill. The total right-of-use asset is expected to be approximately the same amount. The total capital of the group would have increased from NOK 4,2 billion to NOK 4,8 billion if the calculated amounts were capitalized as of 31 December 2018. The group's equity of NOK 1,6 billion would have remained unchanged, but the equity ratio would have been reduced from 38 per cent to 33 per cent. The amounts are preliminary estimates based on current interpretations of the accounting standard.

Lease expenses related to low value assets, short-term leases and variable lease (that do not depend on an index or a rate) will not be recognised in the balance sheet, but be recognised as lease expenses. Expenses for leases that are recognised in the balance sheet will be classified as depreciation of right-of-use asset and interest expenses of the lease liability, and be accrued according to the new standard. Changed presentation will result in a significantely increased EBITDA and an increased operating profit. The new standard does not result in any change in profit before tax over time, but changed accruals will have an effect on profit before tax as the results in periods will be higher or lower compared with the previous standard.

The group has established principles for using the standard’s excemptions, assessment of option periods and determination of discount rates. See Note 11 for more information about the group’s leases.

There are no other IFRSs or IFRIC interpretations that are not yet effective that are expected to have any material impact on our financial statements.



The group has its core operations in the market for sale, distribution and marketing of petroleum products.

The group’s activities involve various financial risks: market risk (including currency risk, fair value interest risk, floating interest risk and price risk), credit risk and liquidity risk. The group’s overall risk management plan focuses on the capital markets’ unpredictability and represents an attempt to minimize potential negative effects on the group’s financial performance. The board of directors approves the principles for overall risk management, and provides guidelines for specific areas such as currency risk, credit risk, use of financial derivatives and use of surplus cash.

3.1 Market risk 3.1.a Currency risk The major part of the group’s operations is located in Scandinavia, and the group is exposed to currency risk in several currencies. This risk is particularly related to Danish kroner. Currency risk arises from future trading transactions, assets and liabilities recognised in the balance sheet, and net investments in international operations. This risk is still limited, as our operational units mainly have their income and cost and keep their accounts in local currency. The group has investments in foreign subsidiaries, where net assets are exposed to currency risk in foreign currency translation. We try to limit this exposure by ensuring an overall debt portfolio composition that to the greatest possible extent is adapted to the individual currency’s and country’s relative importance in the group’s activities.

The effect of a 10 percent change against the Norwegian krone is shown in the table below. The effects are calculated on the basis of the group’s net assets (liabilities) in each currency at 31 December 2018.

Balance sheet items in currency -10% + 10%Currency gain (loss) -3 3Effect on equity -92 92

3.1.b Price riskThe prices of oil products follow an international market. Because of turnover in stock, we are exposed to price changes. It is company policy not to hedge against such changes. This can have a significant impact on the individual annual accounts.

Our products are subject to price changes due to fluctuations in the international market and strong price competition in our market. With close monitoring and frequent list price changes in line with cost developments, we have managed to keep our margins at a satisfactory level.

3.1.c Interest risk Since the group has no major interest-bearing assets, its profits and cash flows from operating activities are mainly independent of fluctuations in the market interest rates.

The group’s interest risk is related to borrowings, lending and bank deposits. Loans with floating interest represent an interest risk for the group’s cash flow. The effects are calculated on the basis of the group’s net interest bearing receivables (liabilities) at 31 December 2018.

Interest -5%-point +5%-pointEffect on interest income -7 7Effect on equity -5 5

3.2 Credit risk Historically, defaults and losses on accounts receivables have been low in the Scandinavian market. However, the group also has a considerable turnover relating to own customers. In such cases, we perform a thorough analysis of the credit quality of new customers, and corresponding routines have been implemented for assessment of existing customer relations. A certain credit risk also arises from committed transactions with customers and derivatives and deposits with financial institutions. Counterparties in derivative contracts and financial deposits are limited to financial institutions with high creditworthiness.

3.3 Liquidity risk The group operates in a market with high turnover. Cash flows are high and relatively stable, but volatile within a week/month. The group manages its liquidity risk by ensuring a sufficient amount of cash in combination with sufficient headroom on its undrawn borrowing facilities.

Management monitors the group’s liquidity reserves (consisting of various borrowing facilities (note 25) and cash (note 21)) through rolling forecasts based on expected cash flow. Management follows its liquidity reserves separately for each main currency (NOK and DKK).

The table below specifies the group’s borrowings and net-settled derivative financial liabilities into relevant maturity groups based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances with less than 12 months maturity equal the balance sheet amounts, as the discounting effect is insignificant.

31. December 2018 <1 yr 1-2 yr 2-5 yr >5 yr TotalBorrowings 189 - - - 189

2,007 - - - 2,007Accounts payable and other debtsSum 2,196 - - - 2,196

3.4 Risk related to financing and capital structureThe group’s ambition regarding financing and capital structure is based on Reitangruppen’s value principle no. 3: “We shall be debt-free.” This entails that the parent company should be debt-free, while the group seeks an optimal business solution within the framework of appropriate risk management.

This value principle is operationalised by the board of directors in Reitangruppen, who has established decision rules for each individual business area. The decision rules define the scope for financing alternatives and capital structure. The decision rule for Uno-X is that its debt should not exceed 1.5 times EBITDA. Financing is resolved within each individual business area, as long as the capital structure is within the scope defined by the decision rules.

The board is authorised to approve arrangements beyond the decision rules for each business area.

In order to improve capital structure, the group may adjust its investment level, exploit available credit facilities, sell financial investments or adjust the amount of dividend paid to shareholders.

Gearing ratios, expressed as net borrowings divided by total assets and as net borrowings divided by EBITDA before FIFO, are shown in the table below.

Amounts in NOK million 2018 2017Total borrowings 189 301Less cash and cash equivalents -96 -39Net borrowings at 31 December 93 262

Total assets 4,205 4,264Gearing as net borrowings at 31 December 2% 6%

EBITDA before FIFO 605 728Gearing as net borrowings 0.2 0.4

3.5 Assessment of fair valueThe fair value of financial instruments traded in active markets (such as securities available for sale or held for trading purposes) is based on quoted market prices at the balance sheet date. The quoted market price for financial assets is the current bid price. For financial liabilities, the current sales price is used.

The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. The group utilises

Note 3 – Financial risk management


various methods and makes assumptions based on the prevailing market conditions at the balance sheet date. For long-term liabilities, quoted prices for the actual instrument or for a similar instrument are used. Other techniques, such as the discounted value of future cash flow, are used to determine the fair value of other financial instruments. The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows.

The accounting value of accounts receivable and payable is assumed to equal the fair value of these items. The fair value of financial liabilities (calculated for note purposes) is estimated by discounting future contractual cash flows with the group’s alternative market interest for similar financial instrument.

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

4.1 Critical accounting estimates and assumptionsThe group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

4.1.a Environmental liabilities The group purchases, stores and sells products based on petroleum. We have introduced routines to ensure regular environmental inspections, in order to assess costs incurred for environmental restoration and handling our environmental liability.

Every year, the group calculates environmental restoration liabilities. The calculations make use of accumulated knowledge and specific information for each service station, e.g. age, number of tanks, and a specific assessment of the stations’ environmental conditions and environment factors such as distance to sources of drinking water. These estimates are uncertain average judgments of expenses and time of settlement. External experts assist to various degree in the calculation of these estimates.

4.1.b Asset retirement obligationsThe group has in some cases assumed a liability to reestablish properties/locations used for energy activities to its original condition when the activities at a service station cease. When entering such contracts, a liability corresponding to the present value of expected reestablishment costs is entered in the accounts. Correspondingly, the cost price of the related asset is increased and depreciated over the expected leasing period.

The estimate which is recognised as a liability in the balance sheet, and as part of the acquisition cost of the asset, may be changed as a result of renewed judgment. Such changes are recognised as an increase or reduction of the asset’s carrying amount. If the reduction is greater than the asset’s carrying amount, the excess amount will be recognised in the profit and loss account. If the carrying amount is increased, the company will consider whether this is an indication of impairment according to IAS 36.

The present value of the reestablishment cost is determined by considering all assumptions and uncertain estimates which are included in the present value of expected reestablishment cost. These include the asset’s economic life, cost of reestablishment, discount rate and rate of inflation.

See also note 24.

Note 4 – Critical accounting estimates and judgments

Note 3 – Financial risk management - continued



various methods and makes assumptions based on the prevailing market conditions at the balance sheet date. For long-term liabilities, quoted prices for the actual instrument or for a similar instrument are used. Other techniques, such as the discounted value of future cash flow, are used to determine the fair value of other financial instruments. The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows.

The accounting value of accounts receivable and payable is assumed to equal the fair value of these items. The fair value of financial liabilities (calculated for note purposes) is estimated by discounting future contractual cash flows with the group’s alternative market interest for similar financial instrument.

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

4.1 Critical accounting estimates and assumptionsThe group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

4.1.a Environmental liabilities The group purchases, stores and sells products based on petroleum. We have introduced routines to ensure regular environmental inspections, in order to assess costs incurred for environmental restoration and handling our environmental liability.

Every year, the group calculates environmental restoration liabilities. The calculations make use of accumulated knowledge and specific information for each service station, e.g. age, number of tanks, and a specific assessment of the stations’ environmental conditions and environment factors such as distance to sources of drinking water. These estimates are uncertain average judgments of expenses and time of settlement. External experts assist to various degree in the calculation of these estimates.

4.1.b Asset retirement obligationsThe group has in some cases assumed a liability to reestablish properties/locations used for energy activities to its original condition when the activities at a service station cease. When entering such contracts, a liability corresponding to the present value of expected reestablishment costs is entered in the accounts. Correspondingly, the cost price of the related asset is increased and depreciated over the expected leasing period.

The estimate which is recognised as a liability in the balance sheet, and as part of the acquisition cost of the asset, may be changed as a result of renewed judgment. Such changes are recognised as an increase or reduction of the asset’s carrying amount. If the reduction is greater than the asset’s carrying amount, the excess amount will be recognised in the profit and loss account. If the carrying amount is increased, the company will consider whether this is an indication of impairment according to IAS 36.

The present value of the reestablishment cost is determined by considering all assumptions and uncertain estimates which are included in the present value of expected reestablishment cost. These include the asset’s economic life, cost of reestablishment, discount rate and rate of inflation.

See also note 24.

Note 4 – Critical accounting estimates and judgments

Note 3 – Financial risk management - continued



Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decisionmaker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors.

2018 Amounts in NOK million Denmark NorwayOther/

Elim Total 2017 Amounts in NOK million Denmark NorwayOther/

Elim TotalOperating revenues, external 5,251 6,541 - 11,792 Operating revenues, external 4,383 5,503 - 9,886Other income and gains (losses) 8 14 -10 12 Other income and gains (losses) 4 2 106 112Share of profit of associates -6 - -12 -18 Share of profit of associates 1 - 21 22Cost of goods sold -4,356 -5,795 6 -10,145 Cost of goods sold -3,530 -4,667 6 -8,191Operating expenses -608 -450 5 -1,053 Operating expenses -568 -480 -21 -1,069EBITDA 289 310 -11 588 EBITDA 290 358 112 760

Amortisation and impairment, rights, licences etc.

-9 -17 -1 -27 Amortisation and impairment, rights, licences etc.

-9 -29 - -38

Depreciation and impairment, property plant and equipment

-66 -85 - -151 Depreciation and impairment, property plant and equipment

-65 -93 -1 -159

Operating profit 214 208 -12 410 Operating profit 216 236 111 563

FIFO - -17 - -17 FIFO 13 19 - 32EBITDA before FIFO 289 327 -11 605 EBITDA before FIFO 277 339 112 728Operating profit before FIFO 214 225 -12 427 Operating profit before FIFO 203 217 111 531

Investments 91 138 - 229 Investments 155 192 3 350

Number of Uno-X outlets 119 169 - 288 Number of Uno-X outlets 118 170 - 288Number of YX outlets - 261 - 261 Number of YX outlets - 217 - 217Number of Bonus outlets 123 - - 123 Number of Bonus outlets 128 - - 128Total number of outlets 242 430 - 672 Total number of outlets 246 387 - 633

Investments are presented as investments in operating activities.

Revenue from contracts with customers


Elim TotalRevenue from sales of goods 4,245 6,489 - 10,734Revenue from sales of services 6 48 1 55Total revenue from contracts with customers 4,251 6,537 1 10,789

Note 5 - Segment reporting - Geographical



Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decisionmaker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors.


Elim Total 2017 Amounts in NOK million Denmark NorwayOther/

Elim TotalOperating revenues, external 5,251 6,541 - 11,792 Operating revenues, external 4,383 5,503 - 9,886Other income and gains (losses) 8 14 -10 12 Other income and gains (losses) 4 2 106 112Share of profit of associates -6 - -12 -18 Share of profit of associates 1 - 21 22Cost of goods sold -4,356 -5,795 6 -10,145 Cost of goods sold -3,530 -4,667 6 -8,191Operating expenses -608 -450 5 -1,053 Operating expenses -568 -480 -21 -1,069EBITDA 289 310 -11 588 EBITDA 290 358 112 760

Amortisation and impairment, rights, licences etc.

-9 -17 -1 -27 Amortisation and impairment, rights, licences etc.

-9 -29 - -38

Depreciation and impairment, property plant and equipment

-66 -85 - -151 Depreciation and impairment, property plant and equipment

-65 -93 -1 -159

Operating profit 214 208 -12 410 Operating profit 216 236 111 563

FIFO - -17 - -17 FIFO 13 19 - 32EBITDA before FIFO 289 327 -11 605 EBITDA before FIFO 277 339 112 728Operating profit before FIFO 214 225 -12 427 Operating profit before FIFO 203 217 111 531

Investments 91 138 - 229 Investments 155 192 3 350

Number of Uno-X outlets 119 169 - 288 Number of Uno-X outlets 118 170 - 288Number of YX outlets - 261 - 261 Number of YX outlets - 217 - 217Number of Bonus outlets 123 - - 123 Number of Bonus outlets 128 - - 128Total number of outlets 242 430 - 672 Total number of outlets 246 387 - 633

Investments are presented as investments in operating activities.

Revenue from contracts with customers


Elim TotalRevenue from sales of goods 4,245 6,489 - 10,734Revenue from sales of services 6 48 1 55Total revenue from contracts with customers 4,251 6,537 1 10,789

Note 5 - Segment reporting - Geographical


Note 6 – Operating revenueRevenue from contracts with customers is recognised when control of the goods or services are transferred to the customer. The revenues is measured at an amount that reflects the consideration to which the group expects to be entitled in exchange for those goods or services, net of discounts, returns, excise duties and value added taxes. Revenue from sale of goods is recognised at the point in time when control of the goods is transferred to the customer, generally on delivery of the goods.

Sales of goodsThe activities of Uno-X Energi mainly include sales, distribution and marketing of fuel through its own nationwide network of self-service stations and sales of goods to retailers. The group also sells other energy-related products directly to consumers.

A number of the products are subject to excise duties. These duties accrue when products are removed from duty-free inventories, and it is the supply and storage companies (Uno-X Forsyning (NO) and YX Danmark (DK)) that collects the duties from our customers, both internal customers in Uno-X Energi and external customers. Excise duties that apply to our companies are lubricant duties, petrol and diesel duties, CO2 duties on all gas oil products, sulphur duties on some of our products, and bio-duties on products with bio-elements. Group revenue are presented excluding excise duties, and accordingly they are not included in cost of goods sold. In the consolidated comprehensive income, the group presents the size of the excise duties that have been charged in the period.

IFRS 15 Revenue from contracts with customers was adopted 1 January 2018. This standard will not have any material impact on the consolidated financial statements. See note 5 - Segment reporting operational for disagregated revenue information.

Amounts in NOK million 2018 2017Revenue from sales of goods 11,734 9,846Revenue from sales of services 55 37Rental income 3 3

Total revenue 11,792 9,886

Note 7 – Other incomeJoint marketing and other services provided to suppliers and others form the basis of any other income of the group. Supplier Loyalty Agreements are classified as goods discount or other income based on the substance of each agreement. To the extent that a payment from the supplier is related to a specific ad or campaign that Uno-X Energi has expensed, and for which the supplier has agreed to cover its share of, the payment is deducted from the period’s marketing costs. Other revenues from vendors are classified as other income. Leasing of inventory to retailers is considered to be a form of funding, and is isolated from other operations and classified as other income.

Amounts in NOK million 2018 2017Dividend income 3 2Other revenues 12 11

Total other gains (losses) - net 15 13

Note 8 - Net other gains (losses)

Amounts in NOK million 2018 2017Net gains (losses) on sale of property, plant and equipment -3 -13Net realised gains (losses) on financial investments 1 1Net unrealised gains (losses) on financial investments -5 -Net realised gains (losses) from sales of subsidiaries* - 113Net currency gains (losses), operating activies 1 -3Revaluation of investment property - 1Other gains (losses) 3 -Total other gains (losses) - net -3 99

* To further sharpen focus on core business, we sold our bulk activities to the Swedish company Preem in 2017.



Note 9 - Employee benefit expense, fees and key management compensation

Amounts in NOK million 2018 2017Wages and salaries -167 -164Social security costs -13 -15Pension costs -15 -15Other employment benefits -8 -14Total employee benefit expense -203 -208

Average number of employees 155 165Number of fulltime equivalents 141 163

Loans to employeesThe group had no loans to employees as at 31 December 2018, nor as at 31 December 2017.

Guarantees to employeesThe group has not provided any guarantees on behalf of employees as at 31 December 2018, nor as at 31 December 2017.

PensionsThe group has both defined benefit and defined contribution plans.

For defined contribution plans, the group pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The group has no further payment obligations once the contributions have been paid. The contributions are recognised as employee benefit expense when they are due.

A defined benefit plans typically define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. In addition to funded defined benefit plans funded through insurance companies, the group also has unfunded pension liabilities covered by operations.

The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise.

Both the Norwegian and the Danish subsidiaries have mainly defined contribution plans.

As at 31 December 2018 the group has defined contribution plans with 148 members and defined benefit plans with 41 members. Uno-X Energi in Norway is obligated to provide an occupational pension scheme in accordance with the Mandatory Occupational Pension Act. The company’s pension scheme satisfy the requirements of the Act.

Pension expenses

Amounts in NOK million 2018 2017Defined benefit plans - -Defined contribution plans -15 -15Total pension costs -15 -15

Financial cost -1 -1Remeasurements - OCI 2 -7Total pension costs and remeasurements -14 -23

Pension liabilities

Amounts in NOK million 31.12.18 31.12.17Fair value of plan assets at 1 January 13 11Contributions from plan participants 2 2Fair value of plan assets at 31 December 15 13

Present value of obligation at 31 December -70 -73Fair value of plan assets at 31 December 15 13Net defined benefit liabilities at 31 December -55 -60



Note 9 - Employee benefit expense, fees and key management compensation

Amounts in NOK million 2018 2017Wages and salaries -167 -164Social security costs -13 -15Pension costs -15 -15Other employment benefits -8 -14Total employee benefit expense -203 -208




PensionsThe group has both defined benefit and defined contribution plans.

For defined contribution plans, the group pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The group has no further payment obligations once the contributions have been paid. The contributions are recognised as employee benefit expense when they are due.

A defined benefit plans typically define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. In addition to funded defined benefit plans funded through insurance companies, the group also has unfunded pension liabilities covered by operations.

The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise.

Both the Norwegian and the Danish subsidiaries have mainly defined contribution plans.

As at 31 December 2018 the group has defined contribution plans with 148 members and defined benefit plans with 41 members. Uno-X Energi in Norway is obligated to provide an occupational pension scheme in accordance with the Mandatory Occupational Pension Act. The company’s pension scheme satisfy the requirements of the Act.

Pension expenses

Amounts in NOK million 2018 2017Defined benefit plans - -Defined contribution plans -15 -15Total pension costs -15 -15

Financial cost -1 -1Remeasurements - OCI 2 -7Total pension costs and remeasurements -14 -23

Pension liabilities

Amounts in NOK million 31.12.18 31.12.17Fair value of plan assets at 1 January 13 11Contributions from plan participants 2 2Fair value of plan assets at 31 December 15 13

Present value of obligation at 31 December -70 -73Fair value of plan assets at 31 December 15 13Net defined benefit liabilities at 31 December -55 -60


Key management compensation

The CEO has in 2018 received a total compensation of 9,8 million (NOK 8,6 million in 2017) of which 8,2 million is salary and other short-term benefits and 1,6 million is pension costs. The CEO has no agreement for payment upon termination of employment.

The group has not paid any remuneration to the Board of Directors in 2018 (NOK 0.0 million in 2017). The Chairman has no other bonus or special compensation on termination of office.

As of 31 December 2018 there are no loans to executives, directors, shareholders or related parties.

The group has not provided any guarantees on behalf of executives, directors, shareholders or related parties.

There has not been any significant purchase or sale of goods or services between group companies and executives, directors, shareholders or related parties.

Fees to auditors

Amounts in NOK million 2018 2017Audit -1.9 -1.9Assurance services -0.4 -0.5Tax advisory services -0.1 -0.2Total fees to auditors -2.4 -2.6

All amounts relating to audit fees specified above are exclusive of VAT.

Note 10 - Other operating expenses

Amounts in NOK million 2018 2017Rental of premises -198 -182Maintenance of premises -101 -85Distribution -150 -223Marketing expenses -47 -49Travel and cars -18 -17Office consumables, equipment, communication -14 -14Fees (legal, audit and other fees) -44 -35IT -53 -56Transaction cost and bank charges -24 -18Loss on bad debt -10 -6Other operating expenses -191 -176Total other operating expenses -850 -861

Note 9 - Employee benefit expense, fees and key management compensation - Continued



Note 11 – LeasesLeases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight-line basis over the period of the lease.

The group leases certain property, plant and equipment. Leases of property, plant and equipment where the group has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the lease’s commencement at the lower of the fair value of the leased property and the present value of the minimum lease payments.

Each lease payment is allocated between the liability and finance charges. The corresponding rental obligations, net of finance charges, are included in other long-term payables. The interest element of the finance cost is charged to the income statement over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The property, plant and equipment acquired under finance leases is depreciated over the shorter of the useful life of the asset and the lease term.

Premises Land Outlets Warehouses OfficesNumber owned 1 42 1 -Number leased 81 384 28 9Total number of premises 82 426 29 9

Description Land Outlets Warehouses OfficesNumber of contracts that expire within 5 years 64 252 27 9Number of contracts that expire in 5 - 10 years 11 106 - -Number of contracts that expire in 10 - 15 years 5 20 - -Number of contracts that expire in 15 - 20 years - 1 1 -Number of contracts that expire in more than 20 years 1 5 - -Total number of lease contracts 81 384 28 9

Number of contracts with an option for prolongment 33 7 3 4

Amounts in NOK million Land Outlets Warehouses OfficesMinimum lease in 2017 18 124 5 12Contigent lease in 2017 14 12 - -Total lease expenses in 2017 32 136 5 12

Amounts in NOK million Land Outlets Warehouses OfficesMinimum lease in 2018 21 126 5 14Contigent lease in 2018 13 10 1 -Total lease expenses in 2018 34 136 6 14

Leases classified as land mainly include YX Truck facilities from YX Norge AS and YX Danmark A/S.

Leases classified as outlets mainly include Uno-X self-service stations from Uno-X Norge AS and Uno-X Danmark A/S.

Dealer operated dealer owned (DODO) premises are not included in the group’s owned or leased properties.

The group has no financial leases.

Commitments related to operational leases Amounts in NOK million 2018 2017Due in less than 1 year 163 173Due in 1 - 5 years 379 432Due in more than 5 years 169 228Total commitment operational leases 711 833



Note 11 – LeasesLeases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight-line basis over the period of the lease.

The group leases certain property, plant and equipment. Leases of property, plant and equipment where the group has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the lease’s commencement at the lower of the fair value of the leased property and the present value of the minimum lease payments.

Each lease payment is allocated between the liability and finance charges. The corresponding rental obligations, net of finance charges, are included in other long-term payables. The interest element of the finance cost is charged to the income statement over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The property, plant and equipment acquired under finance leases is depreciated over the shorter of the useful life of the asset and the lease term.

Premises Land Outlets Warehouses OfficesNumber owned 1 42 1 -Number leased 81 384 28 9Total number of premises 82 426 29 9

Description Land Outlets Warehouses OfficesNumber of contracts that expire within 5 years 64 252 27 9Number of contracts that expire in 5 - 10 years 11 106 - -Number of contracts that expire in 10 - 15 years 5 20 - -Number of contracts that expire in 15 - 20 years - 1 1 -Number of contracts that expire in more than 20 years 1 5 - -Total number of lease contracts 81 384 28 9

Number of contracts with an option for prolongment 33 7 3 4

Amounts in NOK million Land Outlets Warehouses OfficesMinimum lease in 2017 18 124 5 12Contigent lease in 2017 14 12 - -Total lease expenses in 2017 32 136 5 12

Amounts in NOK million Land Outlets Warehouses OfficesMinimum lease in 2018 21 126 5 14Contigent lease in 2018 13 10 1 -Total lease expenses in 2018 34 136 6 14

Leases classified as land mainly include YX Truck facilities from YX Norge AS and YX Danmark A/S.

Leases classified as outlets mainly include Uno-X self-service stations from Uno-X Norge AS and Uno-X Danmark A/S.

Dealer operated dealer owned (DODO) premises are not included in the group’s owned or leased properties.

The group has no financial leases.

Commitments related to operational leases Amounts in NOK million 2018 2017Due in less than 1 year 163 173Due in 1 - 5 years 379 432Due in more than 5 years 169 228Total commitment operational leases 711 833


Note 12 - Net financial items

Amounts in NOK million 2018 2017Interest income - bank deposits 8 6Interest income - loans to customers 1 -Total interest income 9 6

Interest expense - borrowings from banks -9 -8Interest expense - pension liabilities -1 -1Interest expense - provisions unwinding of discount -7 -6Interest expense - other - -2Total interest expenses -17 -17

Net interest income (expenses) -8 -11

Amounts in NOK million 2018 2017Net interest income (expense) -8 -11Net foreign exchange gains (losses) on financing activities 1 6Net finance income (expense) -7 -5

Note 13 – Income taxThe tax expense for the period comprises current and deferred tax.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the company and its subsidiaries operate and generate taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill; deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis. Based on this deferred tax assets and deferred tax liabilities are offset for the Danish subsidiaries, but not for the other subsidiaries.

Income tax expenses and tax payable

Amounts in NOK million 2018 2017Payable tax on result -93 -88Corrections in payable tax previous years 3 -1Changes in deferred tax -9 -13Total tax on result -99 -102

Current tax on profits for the year 93 88Prepaid taxes -45 -41Effect of foreign exchange rate differences - -Net tax payable at 31 December 48 47

Tax payable (liability) 48 47Prepaid taxes (asset) - -Net tax payable at 31 December 48 47



Amounts in NOK million 2018 2017Profit before income tax 403 558

Nominal tax rate 23% -93 -134Effect of different domestic tax rates 2 4Effect of changes in domestic tax rate -3 -3Effect of non-deductible expenses -2 -1Effect of associates result reported net of tax -4 -Effect of income not subject for tax 1 27Other - 5Total tax on result -99 -102

Effective tax rate (%) 24% 18%

The nominal tax rate in 2018 was 23 percent in Norway and 22 percent in Denmark.

The nominal tax rate in Norway was reduced to 22 percent from 1 january 2019. Deferred tax liabilities / assets are calculated according to the new tax rate per 31 december 2018.

Tax on other comprehensive income

2018 2017Amounts in NOK million Before tax Tax After tax Before tax Tax After taxRemeasurements of post employment benefits 2 -1 1 -7 2 -5Cash flow hedges -10 2 -8 -1 - -1Change in value of available-for-sale financial assets - - - -4 - -4Currency translation differences 13 - 13 73 - 73Other comprehensive income 5 1 6 61 2 63Deferred income tax at 31 December

Amounts in NOK million 2018 2017Deferred tax assets 106 113Netted against deferred tax liability -27 -29Total deferred tax assets 79 84

Deferred tax liability 32 31Netted against deferred tax assets -27 -29Total deferred tax liability 5 2

Net deferred tax in the balance sheet at 31 December 74 82

Amounts in NOK million 2018 2017Net deferred tax in the balance sheet at 1 January 82 93Changes in deferred tax charged to the income statement -9 -13Changes in deferred tax charged to other comprehensive income

1 2Net deferred tax in the balance sheet at 31 December 74 82

Note 13 – Income tax - Continued




Nominal tax rate 23% -93 -134Effect of different domestic tax rates 2 4Effect of changes in domestic tax rate -3 -3Effect of non-deductible expenses -2 -1Effect of associates result reported net of tax -4 -Effect of income not subject for tax 1 27Other - 5Total tax on result -99 -102


The nominal tax rate in 2018 was 23 percent in Norway and 22 percent in Denmark.

The nominal tax rate in Norway was reduced to 22 percent from 1 january 2019. Deferred tax liabilities / assets are calculated according to the new tax rate per 31 december 2018.

Tax on other comprehensive income

2018 2017Amounts in NOK million Before tax Tax After tax Before tax Tax After taxRemeasurements of post employment benefits 2 -1 1 -7 2 -5Cash flow hedges -10 2 -8 -1 - -1Change in value of available-for-sale financial assets - - - -4 - -4Currency translation differences 13 - 13 73 - 73Other comprehensive income 5 1 6 61 2 63Deferred income tax at 31 December

Amounts in NOK million 2018 2017Deferred tax assets 106 113Netted against deferred tax liability -27 -29Total deferred tax assets 79 84

Deferred tax liability 32 31Netted against deferred tax assets -27 -29Total deferred tax liability 5 2

Net deferred tax in the balance sheet at 31 December 74 82

Amounts in NOK million 2018 2017Net deferred tax in the balance sheet at 1 January 82 93Changes in deferred tax charged to the income statement -9 -13Changes in deferred tax charged to other comprehensive income

1 2Net deferred tax in the balance sheet at 31 December 74 82



The movement in deferred income tax assets and liabilities during the year, without taking into consideration the offsetting of balances within the same tax jurisdiction is as follows:


Property, plant and

equipment Liabilities Provisions

Taxable profit and

loss ccount

Tax loss carried

forward Other TotalDeferred tax assets at 1 January 2017 20 15 64 11 6 3 119

Charged to the income statement 2017 - -1 -2 -2 -6 - -11Charged to other comprehensive income - 2 - - - - 2Exchange difference - - 3 - - - 3Deferred tax assets at 31 December 2017 20 16 65 9 - 3 113

Charged to the income statement 2018 -3 -3 -1 -1 - -1 -9Charged to other comprehensive income - - - - - 1 1Exchange difference 1 - - - - - 1Deferred tax assets at 31 December 2018 18 13 64 8 - 3 106

Amounts in NOK millionIntangible

assetsInvestment

property

Property, plant and

equipment TotalDeferred tax at 1 January 2017 -7 -1 -18 -26

Charged to the income statement 2017 - - -2 -2Exchange difference -1 - -2 -3Deferred tax at 31 December 2017 -8 -1 -22 -31

Charged to the income statement 2018 -2 - 2 -Exchange difference - -1 - -1Deferred tax at 31 December 2018 -10 -2 -20 -32




Note 14 – Intangible assetsGoodwillGoodwill arises on the acquisition of subsidiaries and represents the excess of the consideration transferred over the group’s interest in net fair value of the net identifiable assets, liabilities and contingent liabilities of the acquiree at the time of acquisition.

For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the CGUs, or groups of CGUs, that is expected to benefit from the synergies of the combination.

Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of goodwill is compared to the recoverable amount, which is the higher of value in use and the fair value less costs to sell. Any impairment is recognised immediately as an expense and is not subsequently reversed.

Software and rightsSeparately acquired software and rightsare shown at historical cost. software and rights are acquired in a business combination are recognised at fair value at the acquisition date. Software and rights have a finite useful life and are carried at cost less accumulated amortisation. Amortisation is calculated using the straight-line method to allocate the cost of software and rightsare over their estimated useful lives of 4 - 5 years.

Impairment of non-financial assetsAssets that have an indefinite useful life – for example, goodwill or intangible assets not ready to use – are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.

Amounts in NOK millionSoftware

and rights Goodwill Development TotalCarrying amount at 1 January 2017 98 4 33 135Transfers 70 - - 70Additions 33 - - 33Amortisation charges -26 - - -26Impairment charges -12 - - -12Exchange difference 3 - - 3Total tax on result 166 4 33 203

Cost price 345 4 33 382Accumulated depreciation -179 - - -179Carrying amount at 31 December 2017 166 4 33 203

Carrying amount at 1 January 2018 166 4 33 203Transfers 6 - - 6Additions 15 - - 15Disposals -6 - - -6Amortisation charges -28 - - -28Carrying amount at 31 December 2018 153 4 33 190


The carrying amounts of rights are primarily related to the trademark Uno-X and customer portfolio.

Goodwill by segment at 31 DecemberGoodwill is allocated to the group’s cash generating units expected to benefit from the acquisition.

2018 2017Norway 2 2Denmark 2 2Carrying amount at 31 December 4 4



Note 14 – Intangible assetsGoodwillGoodwill arises on the acquisition of subsidiaries and represents the excess of the consideration transferred over the group’s interest in net fair value of the net identifiable assets, liabilities and contingent liabilities of the acquiree at the time of acquisition.

For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the CGUs, or groups of CGUs, that is expected to benefit from the synergies of the combination.

Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of goodwill is compared to the recoverable amount, which is the higher of value in use and the fair value less costs to sell. Any impairment is recognised immediately as an expense and is not subsequently reversed.

Software and rightsSeparately acquired software and rightsare shown at historical cost. software and rights are acquired in a business combination are recognised at fair value at the acquisition date. Software and rights have a finite useful life and are carried at cost less accumulated amortisation. Amortisation is calculated using the straight-line method to allocate the cost of software and rightsare over their estimated useful lives of 4 - 5 years.

Impairment of non-financial assetsAssets that have an indefinite useful life – for example, goodwill or intangible assets not ready to use – are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.

Amounts in NOK millionSoftware

and rights Goodwill Development TotalCarrying amount at 1 January 2017 98 4 33 135Transfers 70 - - 70Additions 33 - - 33Amortisation charges -26 - - -26Impairment charges -12 - - -12Exchange difference 3 - - 3Total tax on result 166 4 33 203


Carrying amount at 1 January 2018 166 4 33 203Transfers 6 - - 6Additions 15 - - 15Disposals -6 - - -6Amortisation charges -28 - - -28Carrying amount at 31 December 2018 153 4 33 190


The carrying amounts of rights are primarily related to the trademark Uno-X and customer portfolio.

Goodwill by segment at 31 DecemberGoodwill is allocated to the group’s cash generating units expected to benefit from the acquisition.

2018 2017Norway 2 2Denmark 2 2Carrying amount at 31 December 4 4


Note 15 – Property, plant and equipmentProperty, plant and equipment is stated at historical cost less depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.

The asset retirement obligation is recognised as part of the acquisition cost of the asset. The estimate may be changed as a result of renewed judgment. Such changes are recognised as an increase or reduction of the asset’s carrying amount. If the reduction is greater than the asset’s carrying amount, the excess amount will be recognised in profit and loss. If the carrying amount is increased, the company will consider whether this is an indication of impairment according to IAS 36.

Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost or revalued amounts to their residual values over their estimated useful lives, as follows:

Buildings 10-25 yearsStore fixtures 5.10 yearsFixtures 5-10 yearsVehicles 5-18 yearsFurniture, fittings and equipment 3-5 yearsIT-eqipment 3-5 yearsFuel pumps and tanks 5-25 years

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within ‘Net other gains (losses)’ in the income statement.

Amounts in NOK millionLand, buildings

and plants FixturesMachines office eq. and vehicles Total

Book value at 1 January 2017 614 357 153 1,124Transfer between groups -133 34 29 -70Additions - ordinary 163 127 25 315Disposals -14 -12 -2 -28Depreciation -44 -76 -22 -142Impairment loss -5 -12 - -17Currency translation differences 27 10 6 43Book value at 31 December 2017 608 428 189 1,225

Cost 866 1,142 458 2,466Accumulated depreciation -258 -714 -269 -1,241Book value at 31 December 2017 608 428 189 1,225

Book value at 1 January 2018 608 428 189 1,225Transfer between groups -52 39 7 -6Additions - ordinary 134 59 21 214Disposals -5 -11 -6 -22Depreciation -48 -73 -25 -146Impairment loss -2 -1 -2 -5Currency translation differences 4 1 - 5Book value at 31 December 2018 639 442 184 1,265

Cost 932 1,204 463 2,599Accumulated depreciation -293 -762 -279 -1,334Book value at 31 December 2018 639 442 184 1,265

The group has no restrictions on property, plant and equipment.



Fixtures includes fuel-pumps and tanks at the stations.

Investments in and sale of property, plant and equipment

Investments (cost price)Amounts in NOK million

Land, buildings and plants Fixtures

Machines office eq. and vehicles Total

2017 163 127 25 3152018 116 72 26 214

Sales (sales price)2017 - 3 7 102018 19 2 1 22

Note 16 – Investments in associated companiesAssociated companies and joint ventures in the Group

Company name Office locationShare of

ownership Nature of businessScanlube AB Gøteborg, Sweden 50.0 % Lubricants manufacturerSkanol A/S Århus, Denmark 50.0 % Logistics and distributionSamtank A/S Århus, Denmark 50.0 % Storage in tanks Uno-X Hydrogen AS Bærum, Norge 41.0 % Development of hydrogen refuelling points None of the group's associated companies are listed.

Summarised financial information for the associated companies

Amounts in NOK millionScanlube

ABSkanol

A/SSamtank

A/SUno-X

Hydrogren AS TotalBook value at 1 January 2017 13 33 16 -1 61Share of profit - 20 1 1 22Dividend received - -4 - - -4Currency translation differences 1 4 1 - 6Book value at 31 December 2017 14 53 18 - 85

Book value at 1 January 2018 14 53 18 - 85Additions - - - 10 10Share of profit -1 -6 -5 -6 -18Currency translation differences - - -1 - -1Book value at 31 December 2018 13 47 12 4 76

Revenue and balance based on share of ownershipRevenue 2017 193 189 46 -Profit for the year 2017 - 8 1 -2Assets 31 December 2017 81 97 53 18Liabilities 31 December 2017 67 44 35 21Equity 31 December 2017 14 53 18 -3

Revenue 2018 200 252 47 1Profit for the year 2018 -1 -6 -5 -3Assets 31 December 2018 98 190 58 29Liabilities 31 December 2018 85 143 46 25Equity 31 December 2018 13 47 12 4

Interests in joint operationsThe group has a 25 % ownership share in Sisterne Drift DA, which operates the group’s storage facilities for oil products at Ekeberg, Oslo. The group recognises its share of assets, liabilities, revenues and expenses related to the joint operation.

Note 15 – Property, plant and equipment - Continued



Fixtures includes fuel-pumps and tanks at the stations.

Investments in and sale of property, plant and equipment

Investments (cost price)Amounts in NOK million

Land, buildings and plants Fixtures

Machines office eq. and vehicles Total

2017 163 127 25 3152018 116 72 26 214

Sales (sales price)2017 - 3 7 102018 19 2 1 22

Note 16 – Investments in associated companiesAssociated companies and joint ventures in the Group

Company name Office locationShare of

ownership Nature of businessScanlube AB Gøteborg, Sweden 50.0 % Lubricants manufacturerSkanol A/S Århus, Denmark 50.0 % Logistics and distributionSamtank A/S Århus, Denmark 50.0 % Storage in tanks Uno-X Hydrogen AS Bærum, Norge 41.0 % Development of hydrogen refuelling points None of the group's associated companies are listed.

Summarised financial information for the associated companies

Amounts in NOK millionScanlube

ABSkanol

A/SSamtank

A/SUno-X

Hydrogren AS TotalBook value at 1 January 2017 13 33 16 -1 61Share of profit - 20 1 1 22Dividend received - -4 - - -4Currency translation differences 1 4 1 - 6Book value at 31 December 2017 14 53 18 - 85

Book value at 1 January 2018 14 53 18 - 85Additions - - - 10 10Share of profit -1 -6 -5 -6 -18Currency translation differences - - -1 - -1Book value at 31 December 2018 13 47 12 4 76

Revenue and balance based on share of ownershipRevenue 2017 193 189 46 -Profit for the year 2017 - 8 1 -2Assets 31 December 2017 81 97 53 18Liabilities 31 December 2017 67 44 35 21Equity 31 December 2017 14 53 18 -3

Revenue 2018 200 252 47 1Profit for the year 2018 -1 -6 -5 -3Assets 31 December 2018 98 190 58 29Liabilities 31 December 2018 85 143 46 25Equity 31 December 2018 13 47 12 4

Interests in joint operationsThe group has a 25 % ownership share in Sisterne Drift DA, which operates the group’s storage facilities for oil products at Ekeberg, Oslo. The group recognises its share of assets, liabilities, revenues and expenses related to the joint operation.

Note 15 – Property, plant and equipment - Continued


Note 17 - Investments in subsidiaries

Company name Office location Nature of business

Proporation of shares held

directly by parent

Proportion of shares held by

the GroupUno-X Danmark A/S Søborg, Denmark Self-service stations 100.0 % 100.0 %YX Danmark A/S Søborg, Denmark Energy 100.0 % 100.0 %Uno-X Smøreolie A/S Søborg, Denmark Lubricants 100.0 % 100.0 %Uno-X Norge AS Bærum, Norway Self-service stations 100.0 % 100.0 %

Madlaveien 77 AS Bærum, Norway Property 100.0 % 100.0 %Lura Eiendom AS Bærum, Norway Property 100.0 % 100.0 %Uno-X Sykkel AS Bærum, Norway Developm. cycling team 100.0 % 100.0 %Uno-X Bikes AS Bærum, Norway Developm. cycling team 100.0 % 100.0 %

YX Norge AS Bærum, Norway Full-service stations/Energy 100.0 % 100.0 %Gasolin Rudshøgda AS Bærum, Norway Property 100.0 % 100.0 %

Uno-X Forsyning AS Bærum, Norway Energy 100.0 % 100.0 %Uno-X Smøreolje AS Bærum, Norway Lubricants 100.0 % 100.0 %

Note 18 – Financial instruments by categoryRecognitionAt initial recognition, the group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

Financial assetsThe classification of financial assets depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows.

The group classifies its financial assets in the following measurement categories:

- Financial assets at fair value through profit or loss - Financial assets at amortised cost- Derivative financial assets at fair value through other comprehensive income

Financial liabilitiesFinancial liabilities are classified, at initial recognition, as:- Loan and receivables at amortised cost- Derivative financial liabilities at fair value through other comprehensive income

Amortised costAfter initial recognition, financial assets and liabilities at amortised cost are subsequently measured using the effective interest rate method.



Financial instruments and their carrying amounts recognised in the consolidated statement of financial position at 31 December.


2018

Financial assets at fair value through

profit or lossFinancial assets at

amortised costLiabilities at

amortised cost

Derivative financial

instruments TotalFinancial investments 17 - - - 17Non-current receivables - 47 - - 47Total non-current financial assets 17 47 - - 64

Trade and other current receivables - 1,631 - - 1,631Derivative financial instruments - - - 3 3Cash and cash equivalents - 92 - - 92Total current financial assets - 1,723 - 3 1,726

Total financial assets 17 1,770 - 3 1,790

Current borrowings - - 189 - 189Trade and other current liabilities - - 2,007 - 2,007Total financial liabilities - - 2,196 - 2,196

Net financial assets (liabilities) 17 1,770 -2,196 3 -406


2017




amortised cost


instruments TotalFinancial investments 22 - - - 22Non-current receivables - 34 - - 34Total non-current financial assets 22 34 - 56

Trade and other current receivables - 1,805 - - 1,805Cash and cash equivalents - 39 - - 39Total current financial assets - 1,844 - - 1,844

Total financial assets 22 1,878 - - 1,900

Current borrowings - - 301 - 301Trade and other current liabilities - - 1,963 - 1,963Derivative financial instruments - - - 7 7Total financial liabilities - - 2,264 7 2,271

Net financial assets (liabilities) 22 1,878 -2,264 -7 -371

Financial investments at 31 December consist of:

Amounts in NOK million 2018 2017Shares in TankRE A/S (Villatank A/S) - Denmark 17 22

Ownership of the investment is as follows at 31 December:

2018 2017Shares in TankRE A/S (Villatank A/S) - Denmark 13.67% 14.70%

Note 18 – Financial instruments by category - Continued



Financial instruments and their carrying amounts recognised in the consolidated statement of financial position at 31 December.


2018




amortised cost


instruments TotalFinancial investments 17 - - - 17Non-current receivables - 47 - - 47Total non-current financial assets 17 47 - - 64

Trade and other current receivables - 1,631 - - 1,631Derivative financial instruments - - - 3 3Cash and cash equivalents - 92 - - 92Total current financial assets - 1,723 - 3 1,726

Total financial assets 17 1,770 - 3 1,790

Current borrowings - - 189 - 189Trade and other current liabilities - - 2,007 - 2,007Total financial liabilities - - 2,196 - 2,196

Net financial assets (liabilities) 17 1,770 -2,196 3 -406


2017




amortised cost


instruments TotalFinancial investments 22 - - - 22Non-current receivables - 34 - - 34Total non-current financial assets 22 34 - 56

Trade and other current receivables - 1,805 - - 1,805Cash and cash equivalents - 39 - - 39Total current financial assets - 1,844 - - 1,844

Total financial assets 22 1,878 - - 1,900

Current borrowings - - 301 - 301Trade and other current liabilities - - 1,963 - 1,963Derivative financial instruments - - - 7 7Total financial liabilities - - 2,264 7 2,271

Net financial assets (liabilities) 22 1,878 -2,264 -7 -371

Financial investments at 31 December consist of:

Amounts in NOK million 2018 2017Shares in TankRE A/S (Villatank A/S) - Denmark 17 22

Ownership of the investment is as follows at 31 December:

2018 2017Shares in TankRE A/S (Villatank A/S) - Denmark 13.67% 14.70%

Note 18 – Financial instruments by category - Continued


Note 19 – Trade and other receivablesCurrent receivables

Amounts in NOK million 2018 2017Trade receivables 1,524 1,720Current receivables, group companies 4 15Prepaid expenses 74 55Accrued revenue 2 2Receivables from public authorities 22 4Current derivative financial instruments - 3Other current receivables 8 6Current receivables at 31 December 1,634 1,805

Carrying value of trade receivables held as collateral for debt 504 708

Non-current receivables

Amounts in NOK million 2018 2017Non-current interest bearing receivables 32 22Other non-current receivables 15 12Non-current receivables at 31 December 47 34

Total receivables at 31 December 1,681 1,839

There is no difference between the carrying value and fair value of interest bearing assets.

The aging analysis of non-current receivables is as follows

Amounts in NOK million 2018 20171 - 2 years 4 42 - 5 years 4 5More than 5 years 39 25Non-current receivables at 31 December 47 34

Movement in the group provision for impairment of trade receivables

Amounts in NOK million 2018 2017Provision for receivables at 1 January -21 -17Movement in provision -2 -3Exchange difference - -1Provision for receivables at 31 December -23 -21

The aging analysis of overdue trade receivables is as follows

Amounts in NOK million 2018 2017Up to 3 months 129 167Over 3 months 3 3Over due trade receivables at 31 December 132 170

Carrying amount of trade receivables and provision

Amounts in NOK million 2018 2017Total trade receivables 1,547 1,741Provision for trade receivables -23 -21Carrying amount at 31 December 1,524 1,720

The carrying amounts of the group's trade and other receivables are in the following currencies

Amounts in NOK million 2018 2017NOK 499 708DKK 1,013 1,003SEK 5 -EUR 7 9Total trade and other receivables at 31 December 1,524 1,720



Note 20 – InventoriesInventories are stated at the lower of cost and net realisable value. Cost is determined using the first-in, first-out (FIFO) method. The cost of finished goods and work in progress comprises design costs, raw materials, direct labour, other direct costs and related production overheads (based on normal operating capacity). It excludes borrowing costs. Net realisable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses. The group’s inventory substantially consists of purchased finished goods for resale.

Amounts in NOK million 2018 2017Raw materials - -Finished goods 796 756Total inventories at 31 December 796 756

Carrying amount of inventory held as collateral for debt at 31 December 177 142

Note 21 – CashIn the consolidated statement of cash flows, cash includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the consolidated balance sheet, bank overdrafts are shown within borrowings in current liabilities.

Amounts in NOK million 2018 2017Cash at bank and in hand(excluding bank overdrafts) 92 39

Cash include the following for the purposes of the statement of cash flows

Amounts in NOK million 2018 2017Cash (excluding bank overdrafts) 92 39Bank overdrafts -189 -301Cash as presented in cash flows -97 262

Restricted deposits

Amounts in NOK million 2018 2017Tax withholdings funds 3 4Other restricted deposits 46 -Total restricted deposits at 31 December 49 4

Restricted deposits are included in cash.

Note 22 - Share capital, premium and shareholders

Share capital and premiumAmounts in NOK million 2018 2017Ordinary shares 100 100Share premium 340 340Share capital and premium at 31 December 440 440

Shareholder at 31 December 2018

Amounts in NOK millionNumber of

sharesShare of

ownershipShare of

voting rightsReitangruppen AS 950,000 95.0 % 95.0 %BAI AS 20,000 2.0 % 2.0 %Ruffen Investor AS 30,000 3.0 % 3.0 %Total number of shares 1,000,000 100.0 % 100.0 %

Reitangruppen AS is controlled by the Chairman. Ruffen Investor AS is controlled by the CEO.



Note 20 – InventoriesInventories are stated at the lower of cost and net realisable value. Cost is determined using the first-in, first-out (FIFO) method. The cost of finished goods and work in progress comprises design costs, raw materials, direct labour, other direct costs and related production overheads (based on normal operating capacity). It excludes borrowing costs. Net realisable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses. The group’s inventory substantially consists of purchased finished goods for resale.

Amounts in NOK million 2018 2017Raw materials - -Finished goods 796 756Total inventories at 31 December 796 756

Carrying amount of inventory held as collateral for debt at 31 December 177 142

Note 21 – CashIn the consolidated statement of cash flows, cash includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the consolidated balance sheet, bank overdrafts are shown within borrowings in current liabilities.

Amounts in NOK million 2018 2017Cash at bank and in hand(excluding bank overdrafts) 92 39

Cash include the following for the purposes of the statement of cash flows

Amounts in NOK million 2018 2017Cash (excluding bank overdrafts) 92 39Bank overdrafts -189 -301Cash as presented in cash flows -97 262

Restricted deposits

Amounts in NOK million 2018 2017Tax withholdings funds 3 4Other restricted deposits 46 -Total restricted deposits at 31 December 49 4

Restricted deposits are included in cash.





sharesShare of

ownershipShare of




Note 23 - Other reserves


Financialassets

Currency translation difference Total

Other reserves at 1 January 2017 19 70 89

Cash flow hedges -1 - -1Other fair value adjustments -4 - -4Currency translation differences - 73 73Other reserves at 31 December 2017 14 143 157

Cash flow hedges -8 - -8Currency translation differences - 13 13Other reserves at 31 December 2018 6 156 162

Note 24– Provisions for other liabilitiesProvisions for environmental restoration, restructuring costs and legal claims are recognised when: the group has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Restructuring provisions comprise lease termination penalties and employee termination payments. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense.

Amounts in NOK millionAsset retirement

obligationsEnvironm.

restoration Other TotalBook value at 1 January 2017 147 132 - 279

Used during the year -1 -4 - -5Unused amounts reversed -6 -9 - -15Provisions made in the year 13 -4 2 11Interest expense increased provision 3 3 - 6Currency translation difference 3 6 - 9Book value at 31 December 2017 159 124 2 285

Used during the year -6 -6 -2 -14Unused amounts reversed -4 -3 - -7Provisions made in the year 12 9 - 21Interest expense increased provision 4 2 - 6Currency translation difference 1 1 - 2Book value at 31 December 2018 166 127 - 293

Expected time of settlement

Amounts in NOK millionAsset retirement

obligationsEnvironm.

restoration Other TotalDue in less than 1 year 7 23 - 30Due in 1 - 2 years 4 5 - 9Due in 2 - 5 years 25 10 - 35Due in more than 5 years 130 89 - 219Book value at 31 December 2018 166 127 - 293

Discount rate 2.6 % 2.6 % - 2.6 %



Classification of total provisions

Amounts in NOK million31 December

201831 December

2017Current 30 18Non-current 263 267Total provisions for other liabilities 293 285

Asset retirement obligations includes the obligation to return property and land to its original condition by the end of the lease period.

Environmental restoration includes expenses related to the removal of contaminants that have arised as a result of operations in Uno-X.

Note 25 – BorrowingsBorrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently carried at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the income statement over the period of the borrowings using the effective interest method.

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least 12 months from the balance sheet date.

Current and non-current borrowings

Amounts in NOK million 2018 2017Bank overdraft at 31 December 189 301

Carrying amount of assets held at collateral for debt

Amounts in NOK million 2018 2017Inventory 177 142Trade and other current receivables 504 708

Carrying amount of assets hald at collateral for debt at 31 December 681 850

The exposure of the group's borrowings to interest rate changes and the contractual re-pricing dates at the end of the reporting period are as follows:

Amounts in NOK million 2018 20171 year or less 189 3011-2 years - -2-3 years - -3-5 years - -

Total borrowings at 31 December 189 301

The carrying amounts of the group's borrowings are in the following currencies

Amounts in NOK million 2018 2017NOK 14 38DKK 245 361SEK 20 3EUR 15 2USD -105 -103


Undrawn borrowing facilitiesIn 2010, the parent company Uno-X Energi signed an agreement with DNB. The agreement includes an overdraft facility of NOK 1,400 million, of which NOK 189 million was drawn at 31 December 2018. See Note 26 – Loan Agreements for a description of the facility. Unused credit facilities are at floating rates and mature within a year.

Note 24– Provisions for other liabilities - Continued



Classification of total provisions

Amounts in NOK million31 December

201831 December

2017Current 30 18Non-current 263 267Total provisions for other liabilities 293 285

Asset retirement obligations includes the obligation to return property and land to its original condition by the end of the lease period.

Environmental restoration includes expenses related to the removal of contaminants that have arised as a result of operations in Uno-X.

Note 25 – BorrowingsBorrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently carried at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the income statement over the period of the borrowings using the effective interest method.

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least 12 months from the balance sheet date.

Current and non-current borrowings

Amounts in NOK million 2018 2017Bank overdraft at 31 December 189 301

Carrying amount of assets held at collateral for debt

Amounts in NOK million 2018 2017Inventory 177 142Trade and other current receivables 504 708

Carrying amount of assets hald at collateral for debt at 31 December 681 850


Amounts in NOK million 2018 20171 year or less 189 3011-2 years - -2-3 years - -3-5 years - -



Amounts in NOK million 2018 2017NOK 14 38DKK 245 361SEK 20 3EUR 15 2USD -105 -103


Undrawn borrowing facilitiesIn 2010, the parent company Uno-X Energi signed an agreement with DNB. The agreement includes an overdraft facility of NOK 1,400 million, of which NOK 189 million was drawn at 31 December 2018. See Note 26 – Loan Agreements for a description of the facility. Unused credit facilities are at floating rates and mature within a year.

Note 24– Provisions for other liabilities - Continued


Note 26 – Loan agreementsThe parent company has the following loan agreements as of 31 December 2018:

Working capital and facility agreementUno-X Energi AS and DNB entered into a credit and corporate account agreement in 2010 with collateral in subsidiaries, receivables and inventories, the latter limited to Norwegian subsidiaries only. The agreement includes an overdraft facility of NOK 1‚400 million, limited to a percentage of the group’s outstanding receivables and the Norwegian companies’ inventories. The parent company is the owner of the facility. The group’s net deposits (borrowings) are presented in the parent company’s accounts.

Subsidiaries’ deposits (drawing) is presented as deposits (receivables) for the parent company. The amount as of 31 December 2018 is included in Note 25 – Borrowings under ”Bank overdrafts – current assets”.

All subsidiaries are members of the credit and corporate account agreement and have provided an on-demand guarantee as collateral for Uno-X Energi AS and its obligations according to the working capital facility agreement.

The following financial covenants apply to the credit facility in Uno-X Energi:

Time of measuringReceivables/Debt

(minimum)

EBITDA 12 months

rolling basis(minimum)

Equity to be (minimum)

Equity Ratio to be(minimum)

From Q4 2010 1,00 NOK 220 million NOK 900 million 20 %

Note 27 – GuaranteesCompany guarantees for others

Amounts in NOK million 2018 2017Guarantees for rent 3 3Guarantees for suppliers (see also note 30) 34 38

Total company guarantees for others at 31 december 37 41

Bank guarantees

Amounts in NOK million 2018 2017Guarantees for rent 3 3Guarantees for suppliers 4 4

Total bank guarantees at 31 december 11 11

The subsidiaries' joint guarantee for parent company liabilitiesAll subsidiaries of Uno-X Energi AS have jointly and separately guaranteed for Uno-X Energi AS’ liabilities related to the credit and corporate account agreement of NOK 1,400 million.

Note 28 - Net interest bearing liabilities

Amounts in NOK million 2018 2017Other non-current interest bearing receivables -32 -22Cash and bank deposits -92 -39Current borrowings 189 301Net interest bearing liabilities (receivables) at 31 December 65 240

Interest income 9 6Interest expenses -17 -17Net interest income (expenses) -8 -11



Note 29 - Trade and other payablesTrade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method. The interest element is disregarded if it is insignificant.

Amounts in NOK million 2018 2017Trade payables 902 942Public dues other than income tax 935 916Accrued payroll 25 25Other accrued expenses 132 84Current liabilities, group companies 4 2Current derivative financial instruments 7 -Other current liabilities 2 1Total trade and other payables at 31 December 2,007 1,970

Note 30 – Related partiesShareholdersUno-X Energi AS is a 95 percent owned subsidiary of Reitangruppen AS, se note 22 – Share capital, premium and shareholders. Reitangruppen AS is 100 percent owned by the Reitan family through three holding companies. Reitangruppen AS also owns shares of other companies. Uno-X Energi AS has office location in Lysaker, Bærum.

Related parties

Uno-X Energi AS has direct and indirect ownership in 17 companies. The subsidiaries of Uno-X Energi AS are presented in Note 17 - Investment in subsidiaries.

Associated companies of Uno-X Energi AS are shown in Note 16 – Associated companies.

All transactions with related parties are made on an arm's-length basis.

Current receivables are related to claims arising from the purchase and sale of goods and services as well as accrued interest on the loan.

The receivables are unsecured and non-interest bearing.

The group has not made any provisions for losses on current receivables from related parties as of 31 December 2018 or 31 December 2017, nor have any such losses been realised in 2018 or 2017.

Current liabilities are related to the purchase and sale of goods and services, and accrued interest on the loan.

Transactions with parent

Amounts in NOK million 2018 2017Purchases of goods and services -1 -1

Transactions with associated companies

Amounts in NOK million 2018 2017Non-current receivables - 21Trade receivables 1 1Current interest bearing receivables 32 23Trade payables 16 28Sale of goods 14 13Purchases of goods -254 -363Purchases of services -110 -149Guarantees 34 38

Transactions with other related parties

Amounts in NOK million 2018 2017Current receivables 4 16Current liabilities 4 1Sales of goods and services 21 21Purchases of goods and services -1 -1Other operating expenses -1 -3Rental of premises -20 -10


Financial Statements

Uno-X Energi AS



Note 29 - Trade and other payablesTrade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method. The interest element is disregarded if it is insignificant.

Amounts in NOK million 2018 2017Trade payables 902 942Public dues other than income tax 935 916Accrued payroll 25 25Other accrued expenses 132 84Current liabilities, group companies 4 2Current derivative financial instruments 7 -Other current liabilities 2 1Total trade and other payables at 31 December 2,007 1,970

Note 30 – Related partiesShareholdersUno-X Energi AS is a 95 percent owned subsidiary of Reitangruppen AS, se note 22 – Share capital, premium and shareholders. Reitangruppen AS is 100 percent owned by the Reitan family through three holding companies. Reitangruppen AS also owns shares of other companies. Uno-X Energi AS has office location in Lysaker, Bærum.

Related parties

Uno-X Energi AS has direct and indirect ownership in 17 companies. The subsidiaries of Uno-X Energi AS are presented in Note 17 - Investment in subsidiaries.

Associated companies of Uno-X Energi AS are shown in Note 16 – Associated companies.

All transactions with related parties are made on an arm's-length basis.


The receivables are unsecured and non-interest bearing.

The group has not made any provisions for losses on current receivables from related parties as of 31 December 2018 or 31 December 2017, nor have any such losses been realised in 2018 or 2017.


Transactions with parent

Amounts in NOK million 2018 2017Purchases of goods and services -1 -1

Transactions with associated companies

Amounts in NOK million 2018 2017Non-current receivables - 21Trade receivables 1 1Current interest bearing receivables 32 23Trade payables 16 28Sale of goods 14 13Purchases of goods -254 -363Purchases of services -110 -149Guarantees 34 38

Transactions with other related parties

Amounts in NOK million 2018 2017Current receivables 4 16Current liabilities 4 1Sales of goods and services 21 21Purchases of goods and services -1 -1Other operating expenses -1 -3Rental of premises -20 -10



Uno-X Energi AS




Comprehensive income


Total revenue 2 342 346Total net gains from sales of bulk activities - 113Share of profit (loss) of associates -13 9Employee benefit expense 3 -15 -14Other operating expenses 4 -10 -33Operating profit 304 421

Interest income 5 6 4Interest expenses 5 - -2Other financial income (expenses) 5 2 15Net finance income (expenses) 8 17



Other comprehensive income:Remeasurement of pension liabilities 1 -Items that will not be reclassified to income statement 1 -

Currency translation differences - 5Items that may be reclassified subsequently to income statement - 5



Allocation of profit for the yearDividends 12 300 200Transferred to (from) other reserves 10 232Total amount allocated 310 432



Comprehensive income


Total revenue 2 342 346Total net gains from sales of bulk activities - 113Share of profit (loss) of associates -13 9Employee benefit expense 3 -15 -14Other operating expenses 4 -10 -33Operating profit 304 421

Interest income 5 6 4Interest expenses 5 - -2Other financial income (expenses) 5 2 15Net finance income (expenses) 8 17



Other comprehensive income:Remeasurement of pension liabilities 1 -Items that will not be reclassified to income statement 1 -

Currency translation differences - 5Items that may be reclassified subsequently to income statement - 5



Allocation of profit for the yearDividends 12 300 200Transferred to (from) other reserves 10 232Total amount allocated 310 432



Statement of financial position at 31 December


Non-current assets

Deferred income tax assets 6 - 1Investments in subsidiaries 8 352 351Investments in associated companies 7 64 66Non-current interest bearing receivables 30 21Total non-current assets 446 439

Current assets

Trade and other receivables 10 940 1,080Cash 11 1 1Total current assets 941 1,081







Equity

Share capital 12 100 100Share premium reserve 12 340 340Other reserves -5 -5Retained earnings 414 403Total equity 849 838


Pension liabilities 2 3Total non-current liabilities 2 3

Current liabilities

Provision for dividend 12 200 200Borrowings 13 189 301Trade and other payables 14 147 178Total current liabilities 536 679

Total liabilities 538 682











Equity

Share capital 12 100 100Share premium reserve 12 340 340Other reserves -5 -5Retained earnings 414 403Total equity 849 838


Pension liabilities 2 3Total non-current liabilities 2 3

Current liabilities

Provision for dividend 12 200 200Borrowings 13 189 301Trade and other payables 14 147 178Total current liabilities 536 679

Total liabilities 538 682







Equity


Other reserves

Retained earnings

Total equity

Equity at 1 January 2017 440 -5 166 601

Profit for the year - - 432 432Total other comprehensive income - - 5 5Total comprehensive income - - 437 437

Dividends - - -200 -200Equity at 31 December 2017 440 -5 403 838

Profit for the year - - 310 310Remeasurement of pension liabilities - - 1 1Total comprehensive income - - 311 311

Dividends - - -300 -300Equity at 31 December 2018 440 -5 414 849





Profit before income tax 312 438Gains from sale of subsidiaries - -113Change in retirement benefit obligations -1 -1Finance costs - net 5 -8 -17Share of profit from associates 13 -9

Trade and other receivables 131 -218Trade and other payables -33 -156Cash generated from operations 414 -76

Cash generated from operations 414 -76Interest paid 5 5 2Net cash generated from operating activities 419 -74

Net cash flow from investment activities -10 124

Dividends paid -300 -200Net cash used in financing activities -300 -200


Cash at 1 January 11 -300 -165Exchange gains/(losses) on cash 3 15Cash at 31 December -188 -300

As of 31 December 2018 Uno-X Energi has unused credit facilities of NOK 1 212 million (NOK 1 099 million as of 31 December 2017).





Profit before income tax 312 438Gains from sale of subsidiaries - -113Change in retirement benefit obligations -1 -1Finance costs - net 5 -8 -17Share of profit from associates 13 -9

Trade and other receivables 131 -218Trade and other payables -33 -156Cash generated from operations 414 -76

Cash generated from operations 414 -76Interest paid 5 5 2Net cash generated from operating activities 419 -74

Net cash flow from investment activities -10 124

Dividends paid -300 -200Net cash used in financing activities -300 -200


Cash at 1 January 11 -300 -165Exchange gains/(losses) on cash 3 15Cash at 31 December -188 -300

As of 31 December 2018 Uno-X Energi has unused credit facilities of NOK 1 212 million (NOK 1 099 million as of 31 December 2017).



Note 1 Accounting policies....................................................................................................................................................... 50

Note 2 Total revenue ................................................................................................................................................................. 50

Note 3 Employee benefit expense.......................................................................................................................................... 50

Note 4 Other operating expenses........................................................................................................................................... 51

Note 5 Net financial items ........................................................................................................................................................ 51

Note 6 Income tax ...................................................................................................................................................................... 51

Note 7 Investments in associated companies ...................................................................................................................... 51

Note 8 Investments in subsidiaries ......................................................................................................................................... 52

Note 9 Financial instruments by category ............................................................................................................................ 52

Note 10 Trade and other receivables..................................................................................................................................... 52

Note 11 Cash and cash equivalents........................................................................................................................................ 52

Note 12 Share capital premium and shareholders .............................................................................................................. 53

Note 13 Borrowings ................................................................................................................................................................... 54

Note 14 Trade and other payables ......................................................................................................................................... 54

Note 15 Related parties............................................................................................................................................................. 55



Note 1 – Accounting policiesUno-X Energi AS is the group’s parent company. The separate financial statements of Uno-X Energi AS have been prepared in accordance with the provisions of simplified IFRS in separate financial statements, provided in regulations to the Norwegian Accounting Act, section 3-9, subsection 5 (“Regulations on simplified use of international accounting standards, chapter 4”), as laid down by the Norwegian Ministry of Finance 3 November, 2014.

Applying the simplified version of IFRS to the parent company accounts means that valuation rules and accounting policies applied in the consolidated accounts also apply to the parent company, Uno-X Energi AS. See the group accounting policies for further information. A simplified application of IFRS enables the financial statements and note information to accord with the Accounting Act. The financial statements and notes for the parent company have been organised in accordance with the Accounting Act, with the exception of the comprehensive income statement, which follows IFRS.

1.1 Shares in subsidiariesShares in subsidiaries are entered at cost in Uno-X Energi AS’ financial statements (cf. IAS 27.37).

1.2 Dividend and group contributionAccountable entities that prepare separate financial statements according to the regulations of the Accounting Act, section 3-9, may, without prejudice to other provisions in these regulations, enter dividends and group contributions in accordance with other provisions of the Act. This means that any dividends and group contributions given or received by the parent company are entered in the accounts the year before the decision to give or receive such dividend or group contribution is made. This also applies to any tax effects relating to such transactions.

Note 2 - Total revenue

Amounts in NOK million 2018 2017Revenue from sales of services 26 25Dividend and group contribution 316 321Total revenue 342 346

Note 3 - Employee benefit expense

Amounts in NOK million 2018 2017Wages and salaries -11 -10Social security costs -2 -2Pension costs -2 -2Total employee benefit expense -15 -14




Retirement benefit obligationsAs of 31 December 2018, the parent company had two active members in its plan (two as of December 2017). The parent company’s pension costs in 2018 were NOK 2 million (NOK 2 million in 2017). The company’s net pension liability at 31 December 2018 was NOK 2 million (NOK 3 million as of 31 December 2017). Uno-X Energi AS is obligated to provide an occupational pension sheme in accordance with the Mandatory Occupational Pension Act. The company’s pension scheme satisfy the requirements of the Act.

Key management compensationThe CEO has in 2018 received a total compensation of 9,8 million (NOK 8,6 million in 2017) of which 8,2 million is salary and other short-term benefits and 1,6 million is pension costs. The CEO has no agreement for payment upon termination of employment.


As of 31 December 2018 there are no loans or guarantees to executives, directors, shareholders or related parties, nor as at 31 December 2017.

Fees to auditorsThe parent company had audit fees of NOK 0.4 million exclusive of VAT in 2018 (NOK 0.4 million in 2017).



Note 1 – Accounting policiesUno-X Energi AS is the group’s parent company. The separate financial statements of Uno-X Energi AS have been prepared in accordance with the provisions of simplified IFRS in separate financial statements, provided in regulations to the Norwegian Accounting Act, section 3-9, subsection 5 (“Regulations on simplified use of international accounting standards, chapter 4”), as laid down by the Norwegian Ministry of Finance 3 November, 2014.

Applying the simplified version of IFRS to the parent company accounts means that valuation rules and accounting policies applied in the consolidated accounts also apply to the parent company, Uno-X Energi AS. See the group accounting policies for further information. A simplified application of IFRS enables the financial statements and note information to accord with the Accounting Act. The financial statements and notes for the parent company have been organised in accordance with the Accounting Act, with the exception of the comprehensive income statement, which follows IFRS.

1.1 Shares in subsidiariesShares in subsidiaries are entered at cost in Uno-X Energi AS’ financial statements (cf. IAS 27.37).

1.2 Dividend and group contributionAccountable entities that prepare separate financial statements according to the regulations of the Accounting Act, section 3-9, may, without prejudice to other provisions in these regulations, enter dividends and group contributions in accordance with other provisions of the Act. This means that any dividends and group contributions given or received by the parent company are entered in the accounts the year before the decision to give or receive such dividend or group contribution is made. This also applies to any tax effects relating to such transactions.

Note 2 - Total revenue

Amounts in NOK million 2018 2017Revenue from sales of services 26 25Dividend and group contribution 316 321Total revenue 342 346

Note 3 - Employee benefit expense

Amounts in NOK million 2018 2017Wages and salaries -11 -10Social security costs -2 -2Pension costs -2 -2Total employee benefit expense -15 -14




Retirement benefit obligationsAs of 31 December 2018, the parent company had two active members in its plan (two as of December 2017). The parent company’s pension costs in 2018 were NOK 2 million (NOK 2 million in 2017). The company’s net pension liability at 31 December 2018 was NOK 2 million (NOK 3 million as of 31 December 2017). Uno-X Energi AS is obligated to provide an occupational pension sheme in accordance with the Mandatory Occupational Pension Act. The company’s pension scheme satisfy the requirements of the Act.

Key management compensationThe CEO has in 2018 received a total compensation of 9,8 million (NOK 8,6 million in 2017) of which 8,2 million is salary and other short-term benefits and 1,6 million is pension costs. The CEO has no agreement for payment upon termination of employment.


As of 31 December 2018 there are no loans or guarantees to executives, directors, shareholders or related parties, nor as at 31 December 2017.

Fees to auditorsThe parent company had audit fees of NOK 0.4 million exclusive of VAT in 2018 (NOK 0.4 million in 2017).


Note 4 - Other operating expenses

Amounts in NOK million 2018 2017Marketing expenses -2 -24Fees (legal, audit etc.) -1 -2Rental of premises -1 -1Transaction cost and bank charges -2 -2Other operating expenses -4 -4Total other operating expenses -10 -33

Note 5 - Net financial items

Amounts in NOK million 2018 2017Interest income - bank deposits 6 4Interest expense - borrowings from banks - -2Net interest income (expenses) 6 2

Amounts in NOK million 2018 2017Net interest income (expense) 6 2Net foreign exchange gains (losses) on financing activities 2 15Net finance income (expense) 8 17

Note 6 - Income taxReconciliation of Norwegian nominal statutory tax rate to effective tax rate


Nominal tax rate 23% -72 -105Effect of income not subject for tax (permanent differences) - 27Effect of associates results reported net of tax -3 2Dividends / group contribution not assessable for income tax 73 70Total tax on result -2 -6


Note 7 - Investments in associated companies

Associated companies in Uno-X Energi AS

Company name Office location Nature of businessShare of

ownership

Share of voting rights

Measurement method

Book value in parent

Amount in NOK mill

Scanlube AB Gøteborg, Sweden Lubricants manufacturer 50.0 % 50.0 % Equity 13Skanol A/S Århus, Denmark Logistics and distribution 50.0 % 50.0 % Equity 47Uno-X Hydrogen AS Bærum, Norway Developm. of hydrogen refuelling points 41.0 % 41.0 % Equity 4Total investments in associated companies at 31 December 2018 64



Note 8 - Investments in subsidiariesShare capital in

companyBook value in

parent


Proporation of shares held directly by

parent

Proportion of shares held

by theGroup Amount in 1000 Amount in NOK mill.

Uno-X Danmark A/S Søborg, Denmark Self-service stations 100.0 % 100.0 % 105,500 146YX Danmark A/S Søborg, Denmark Energy 100.0 % 100.0 % 264,970 62Uno-X Smøreolie A/S Søborg, Denmark Lubricants 100.0 % 100.0 % 2,000 54Uno-X Norge AS Bærum, Norway Self-service stations 100.0 % 100.0 % 351 19YX Norge AS Bærum, Norway Full-service stations 100.0 % 100.0 % 312 17Uno-X Forsyning AS Bærum, Norway Energy 100.0 % 100.0 % 578 41Uno-X Smøreolje AS Bærum, Norway Lubricants 100.0 % 100.0 % 300 13Total investments in subsidiaries at 31 December 2018 352

Note 9 - Financial instruments by categoryFinancial instruments and their carrying amounts recognised in the consolidated statement of financial position at 31 December.

Amounts in NOK million 2018 2017

Loans and receivablesTrade and other current receivables 940 1,080Cash 1 1Total current assets 941 1,081

Financial liabilitiesCurrent borrowings -189 -301Trade and other current liabilities -147 -178

Total net financial instruments at 31 December 605 602

Note 10 - Trade and other receivables

Amounts in NOK million 2018 2017Prepaid expenses 1 1Current receivables, group companies 939 1,079Total receivables at 31 December 940 1,080

Note 11 - Cash and cash equivalents

Amounts in NOK million 2018 2017Cash at bank and in hand 1 1Cash and cash equivalents (excluding bank overdrafts) 1 1

Cash and cash equivalents include the following for the purposes of the statement of cash flows

Amounts in NOK million 2018 2017Cash and cash equivalents (excluding bank overdrafts) 1 1Bank overdrafts -189 -301Cash and cash equivalents -188 -300



Note 8 - Investments in subsidiariesShare capital in

companyBook value in

parent


Proporation of shares held directly by

parent

Proportion of shares held

by theGroup Amount in 1000 Amount in NOK mill.

Uno-X Danmark A/S Søborg, Denmark Self-service stations 100.0 % 100.0 % 105,500 146YX Danmark A/S Søborg, Denmark Energy 100.0 % 100.0 % 264,970 62Uno-X Smøreolie A/S Søborg, Denmark Lubricants 100.0 % 100.0 % 2,000 54Uno-X Norge AS Bærum, Norway Self-service stations 100.0 % 100.0 % 351 19YX Norge AS Bærum, Norway Full-service stations 100.0 % 100.0 % 312 17Uno-X Forsyning AS Bærum, Norway Energy 100.0 % 100.0 % 578 41Uno-X Smøreolje AS Bærum, Norway Lubricants 100.0 % 100.0 % 300 13Total investments in subsidiaries at 31 December 2018 352

Note 9 - Financial instruments by categoryFinancial instruments and their carrying amounts recognised in the consolidated statement of financial position at 31 December.

Amounts in NOK million 2018 2017

Loans and receivablesTrade and other current receivables 940 1,080Cash 1 1Total current assets 941 1,081

Financial liabilitiesCurrent borrowings -189 -301Trade and other current liabilities -147 -178

Total net financial instruments at 31 December 605 602

Note 10 - Trade and other receivables

Amounts in NOK million 2018 2017Prepaid expenses 1 1Current receivables, group companies 939 1,079Total receivables at 31 December 940 1,080

Note 11 - Cash and cash equivalents

Amounts in NOK million 2018 2017Cash at bank and in hand 1 1Cash and cash equivalents (excluding bank overdrafts) 1 1

Cash and cash equivalents include the following for the purposes of the statement of cash flows

Amounts in NOK million 2018 2017Cash and cash equivalents (excluding bank overdrafts) 1 1Bank overdrafts -189 -301Cash and cash equivalents -188 -300






sharesShare of

ownershipShare of



Group contributions and dividendsAmounts in NOK million 2018 2017Dividends to shareholders 300 200Total group contributions and dividends 300 200

Accountable entities that prepare separate financial statements according to the regulations of the Accounting Act paragraph 3–9 may, without prejudice to other provisions in these regulations, enter dividends and group contributions in accordance with other provisions of the Act. This means that any dividends and group contributions given or received by the parent company must be entered in the accounts the year before the decision to give or receive such dividend or group contribution is made. This also applies to any tax effects relating to such transactions.



Note 13 – BorrowingsThe parent company has the following loan agreements as of 31 December 2018:

Working capital and facility agreement

Uno-X Energi AS and DNB entered into a credit and corporate account agreement in 2010 with collateral in subsidiaries, receivables and inventories, the latter limited to Norwegian subsidiaries only. The agreement includes an overdraft facility of NOK 1‚400 million, limited to a percentage of the group’s outstanding receivables and the Norwegian companies’ inventories. The parent company is the owner of the facility. The group’s net deposits (borrowings) are presented in the parent company’s accounts. Unused credit facilities are at floating rates and mature within a year.

Subsidiaries’ deposits (drawing) is presented as deposits (receivables) for the parent company.

All subsidiaries are members of the credit and corporate account agreement and have provided an on-demand guarantee as collateral for Uno-X Energi AS and its obligations according to the working capital facility agreement.

The following financial covenants apply to the credit facility in Uno-X Energi:

Time of measuringReceivables/Debt

(minimum)EBITDA 12 months

rolling basis (minimum)Equity to be

(minimum)Equity Ratio to be

(minimum)

From Q4 2010 1,00 NOK 220 million NOK 900 million 20 %

Borrowings at 31 December

Amounts in NOK million 2018 2017Bank overdraft 189 301Current borrowings at 31 December 189 301

Carrying amount of assets held at collateral for debt at 31 December

Amounts in NOK million 2018 2017Inventory 144 142Trade and other current receivables 504 708Carrying amount of assets hald at collateral for debt at 31 December 681 850


Amounts in NOK million 2018 20171 year or less 189 3011-2 years - -2-3 years - -3-5 years - -Total borrowings at 31 December 189 301


Amounts in NOK million 2018 2017NOK 14 38DKK 245 361SEK 20 3EUR 15 2USD -105 -103Total borrowings at 31 December 189 301

Fair value of borrowings at 31 December 2018Fair value for both current and non-current borrowings equals their carrying value.

Note 14 - Trade and other payables

Amounts in NOK million 2018 2017Trade payables 1 2Current income tax liabilities 2 -Public dues other than income tax 1 1Accured expenses 2 3Current liabilities, group companies 141 172Total trade and other payables at 31 December 147 178


Note 15 - Related partiesShareholdersUno-X Energi AS ia a 95 percent owned subsidiary of Reitangruppen AS, se note 12 – Share capital, premium and shareholders. Reitangruppen AS is 100 percent owned by the Reitan family through three holding companies. Reitangruppen AS also owns shares of other companies. Uno-X Energi AS has office location in Lysaker, Bærum.

Related partiesUno-X Energi AS has direct and indirect ownership in 17 companies. The subsidiaries of Uno-X Energi AS are presented in Note 8 - Investment in subsidiaries. Associated companies of Uno-X Energi AS are shown in Note 7 – Associated companies.

Purchase and sales of goods and servicesAll transactions with related parties are made on an arm's-length basis.

Loans to subsidiariesUno-X Energi AS has provided loans to subsidiaries. The interest rate is determined by Uno-X Energi AS’s average borrowing rate for loans with similar risk.

Current receivablesUno-X Energi AS prepares its financial statements according to the regulations of the Accounting Act, paragraph 3–9 and may, without prejudice to other provisions in these regulations, enter dividends and group contributions in accordance with other provisions of the Act. The proposed dividends from subsidiaries recognised by the parent company as of 31 December are pending approval by the General Assemblies, and are classified as current receivables until such approval is granted. As of 31 December 2018, the amount recognised is NOK 316 million (NOK 321 million as of 31 December 2017).


The parent company has not made any provisions for losses on current receivables from related parties as of 31 December 2018 or 31 December 2017, nor have any such losses been realised in 2018 or 2017.

Current liabilitiesThe same accounting principles have been applied for current liabilities as for current receivables. In the parent company, the proposed dividends to shareholders that are pending approval by the General Assembly are recognised as of 31 December 2018, and are classified as current liabilities until such approval is granted. As of 31 December 2018, the amount recognised is NOK 200 million (NOK 200 million as of 31 December 2017).


The parent has the following transactions with its parent company

Amounts in NOK million 2018 2017Other operating expenses -1 -1

The parent has the following transactions with its subsidiaries

Amounts in NOK million 2018 2017Current receivables 939 1,078Current liabilities 141 172Sales of goods and services 24 24Purchases of goods and services -4 -12Guarantees 626 271

The parent has the following transactions with its associates

Amounts in NOK million 2018 2017Current receivables 30 21Guarantees 34 38The parent has the following transactions with its other related parties

Amounts in NOK million 2018 2017Sales of goods and services 1 1Guarantees 739 697



Note 15 - Related partiesShareholdersUno-X Energi AS ia a 95 percent owned subsidiary of Reitangruppen AS, se note 12 – Share capital, premium and shareholders. Reitangruppen AS is 100 percent owned by the Reitan family through three holding companies. Reitangruppen AS also owns shares of other companies. Uno-X Energi AS has office location in Lysaker, Bærum.

Related partiesUno-X Energi AS has direct and indirect ownership in 17 companies. The subsidiaries of Uno-X Energi AS are presented in Note 8 - Investment in subsidiaries. Associated companies of Uno-X Energi AS are shown in Note 7 – Associated companies.

Purchase and sales of goods and servicesAll transactions with related parties are made on an arm's-length basis.

Loans to subsidiariesUno-X Energi AS has provided loans to subsidiaries. The interest rate is determined by Uno-X Energi AS’s average borrowing rate for loans with similar risk.

Current receivablesUno-X Energi AS prepares its financial statements according to the regulations of the Accounting Act, paragraph 3–9 and may, without prejudice to other provisions in these regulations, enter dividends and group contributions in accordance with other provisions of the Act. The proposed dividends from subsidiaries recognised by the parent company as of 31 December are pending approval by the General Assemblies, and are classified as current receivables until such approval is granted. As of 31 December 2018, the amount recognised is NOK 316 million (NOK 321 million as of 31 December 2017).


The parent company has not made any provisions for losses on current receivables from related parties as of 31 December 2018 or 31 December 2017, nor have any such losses been realised in 2018 or 2017.

Current liabilitiesThe same accounting principles have been applied for current liabilities as for current receivables. In the parent company, the proposed dividends to shareholders that are pending approval by the General Assembly are recognised as of 31 December 2018, and are classified as current liabilities until such approval is granted. As of 31 December 2018, the amount recognised is NOK 200 million (NOK 200 million as of 31 December 2017).


The parent has the following transactions with its parent company

Amounts in NOK million 2018 2017Other operating expenses -1 -1

The parent has the following transactions with its subsidiaries

Amounts in NOK million 2018 2017Current receivables 939 1,078Current liabilities 141 172Sales of goods and services 24 24Purchases of goods and services -4 -12Guarantees 626 271

The parent has the following transactions with its associates

Amounts in NOK million 2018 2017Current receivables 30 21Guarantees 34 38The parent has the following transactions with its other related parties

Amounts in NOK million 2018 2017Sales of goods and services 1 1Guarantees 739 697



Definition of Key Figures

Excise duties - A number of the products sold by our companies are subject to excise duties. These duties accrue when products are taken from our main inventories, and thus it is our supply and storage companies (Uno-X Forsyning (NO) and YX Danmark) that collects the duties from our customers, both internal customers in Uno-X Energi and external customers. Excise duties that apply to our companies are lubricant duties, petrol and diesel duties, basic duties (grunnavgift), CO2 duties on all gas oil products, sulphur duties on some of our products, and bio-duties on products with bio-elements

Operating margin - Operating profit in percent of operating revenue, excl. excise duties

EBITDA - Earnings before interest, taxes, depreciation and amortization

Cash flow margin - EBITDA in percent of operating revenue, excl. excise duties

Return on assets - Profit before net interest cost (income), taxes and gain (loss) on disposal of operations in percent of average total assets

Return on equity - Profit for the year in percent of average equity

Equity ratio - Equity in percent of total assets

Net interest-bearing debt - Interest-bearing debt less interest-bearing receivables and liquid capital

Liquid capital - Total cash and bank deposits

Net investments - Investments in non-current assets (acquisition cost) less disposal of non-currentassets (sales price)

FIFO effect - The FIFO effect is a calculated effect, reflecting realised gain (loss) on oil products sold during the period. The calculated effect reflects the difference between the current cost on the day the product is sold (which is the basis for the day-to-day price in the market), and its historical cost. On average, oil products are sold about 20–30 days after they are purchased.

Definition of Key Figures


Addresses

Norway

YX NorgeThor Kristian Korsvold, CEO

Lysaker Torg 35 N-1366 Lysaker

www.yx.no

Uno-X NorgeJens Haugland, CEO


www.unox.no

Uno-X SmøreoljeElo Andersen, CEO


lube.unox.no

Uno-X ForsyningAlexandre Guindos, CEO


unoxforsyning.no

Denmark

YX DanmarkElo Andersen, CEO

Buddingevej 195 DK-2860 Søborg

www.yx.dk

Uno-X DanmarkOle Johannes Tønnessen, CEO

Buddingevej 195 DK- 2860 Søborg

www.unoxautomat.dk

Uno-X SmøreolieElo Andersen, CEO

Buddingevej 195 DK- 2860 Søborg

lube.unox.dk

Uno-X EnergiVegar Kulset, CEO

Lysaker Torg 35 N-1366 Lysaker NORWAY

www.unoxenergi.no


Auditor’s Report


Auditor’s Report - Continued


The development team for youth is amongst the most outstanding cycling initiatives in Norway. For Uno-X, the project is a long-term initiative with a focus on rider and team development.

The team gives the riders a natural starting point to climb on to a professional career. The goal is therefore not to win all races, but serves as a safe platform for performance development both individually and as a team.

unoxteam.no

Uno-X Norwegian Development Team

Uno-X Energi


P.O.Box 127 N-1325 Lysaker

uno-x energi annual report 2018 · increasingly blended with a variety of renewable biofuels in the...

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