Annual Report 2005

Annual Report 2005
We will create enduring value
and leave clear footprints

Key figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Highlights 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Letter from the Chief Executive Officer . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
This is Ferd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Vision, corporate mission statement and value platform . . . . . . 7
Board of Directors’ Report 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Consolidated profit and loss account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Consolidated balance sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Cash flow analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Notes to the accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Ferd Holding AS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Auditor’s report 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Partnership with Young Enterprise Norway . . . . . . . . . . . . . . . . . . . . 36
Elopak AS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Swix Sport AS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Ferd Private Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Ferd Invest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Ferd Venture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Ferd Real Estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Executive Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Addresses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
FRONT PAGE: Færder lighthouse on the island of Tristein off Tjøme in
the Oslo fjord marks the boundary between the Oslo fjord and
Skagerrak. The tower is made of cast iron and was completed in
1857. Standing 43 meters high, this is the second tallest lighthouse
in Norway and the third oldest. However, the original Færder light
dates back to 1696, making it the second in Norway after Lindesnes.
The old lighthouse was located a little north of today's tower - on the
island of Store Færder, where its ruins can be seen to this day.
THIS PAGE: Homborsund lighthouse stands on a small island at the
entry to the Hombor sound off Grimstad. The lighthouse dates from
1879, and is of concrete construction.

Last year marked the 350th
anniversary of the first lighthouse
in Norway. This was in 1655, at
Lindesnes. Since then 200 lighthouses
have been built at one
time or another. Powerful coastal
lights, visible from way out at sea,
smaller lights to mark coastal
routes or harbour entrances. Our
lighthouses provide a continually
changing navigation system.
Changing needs have led to new
lighthouses being built and old
lighthouse stations being closed.
At the high point there were 150
lighthouses in operation in
Norway, but we are now down to
around 100. The first lights were
wood fired; then came coal, oil
and paraffin. Today everything is
electric, in some places using solar
energy. Despite all the changes
over the years, lighthouses are
still the most visible and lasting
footprints of many generations'
voyages around the coasts of
Norway.
POWERFUL LIGHT. The coastal lighthouse
at Slåtterøy has been in
operation since 1859, and the
beam from the powerful lenses
in its 25 m high tower are still
the first sign of land for an untold
number of ships heading in from
the ocean.
1

Key figures
2
NOK million
Profit and loss account
Operating revenue
Operating profit
Profit for the year
Cash flow
Net cash from operations
Net cash from investments
Equity ratio
Equity ratio (%) book value
Equity ratio (%) value-adjusted
Liquidity
Cash, bank and listed securities
Return on capital
Return on equity (%) book value
Return on equity (%) value-adjusted
2005
5 970
884
4 026
266
3 068
77%
81%
6 002
64%
28%
2004
5 957
641
664
602
42
63%
76%
2 186
19%
12%
2003
5 582
731
586
733
18
52%
67%
2 247
22%
2002
3 892
- 473
- 301
856
- 441
47%
1 499
- 12%
TOTAL ASSETS BY BUSINESS AREA (BOOK VALUE) OPERATING PROFIT - 7 YEAR HISTORY
NOK million NOK million
Other
Elopak
Ferd Private Equity
Ferd Real Estate
Ferd Venture
Ferd Invest
3 751
492
260
2 318
3 566
603
1 000
800
600
400
200
0
-200
-400
-600
2001
4 952
200
161
509
- 350
52%
1 446
5%
2000
4 931
65
116
271
- 280
47%
1 778
4%
1999
5 192
515
530
630
- 1 072
51%
1 936
16%
1999 2000 2001 2002 2003 2004 2005

Highlights of 2005
■ Ferd sold all its shares in Skandinavisk
Tobakskompagni in 2005. The sale
raised EUR 420 million, with a gain
on disposal of NOK 3 037 million.
■ Value-adjusted equity grew by 28%
in 2005. By the close of 2005, valueadjusted
equity including the gain on
the sale of shares in ST amounted to
NOK 10.9 billion.
■ All business areas made a positive
contribution to the group’s earnings
in 2005. Elopak strengthened its core
businesses and Ferd Private Equity
produced a sizeable increase in the
value of its portifolio, while
favourable stock market conditions
meant that Ferd Invest made the
largest contribution to earnings.
PIVOTED BEACONS. The first lighthouses were simply beacons, often no more
than an open fire lit in an iron basket on a rocky headland. The pivoted beacon
was a more advanced idea, built using a long pivoted tree trunk. Wood or
coal was burnt in a basket hanging from one end of the trunk, which could be
lowered to add more fuel. However, if the flames were too high they burnt the
tree trunk, and this form of construction fell out of use. No pivoted beacons
remain, but this reconstruction at Verdens Ende in Norway was built in 1932.
3

Letter from the Chief Executive Officer
“
What really merits attention
is not that the year's
earnings were so good, but
that we still have such great
potential.
4
BEST-EVER RESULTS
Ferd achieved its best-ever results in
2005. This is the case even before
adding in the sizable gain from the
sale of our shares in Skandinavisk
Tobakskompagni (ST), which we can
safely say was a non-recurring item.
However, what really merits attention
is not that the year's earnings were so
good, but that we still have such great
potential. It may well be some years
before we can report such good results
again, but it does not need to take too
long. Elopak is now growing more profitably
than before in all geographic
areas, Ferd Private Equity and Ferd
Venture have companies in their portfolios
that offer good opportunities for
very strong returns in future years, Ferd
Real Estate is close to start developing
its sizable landbank at Ensjø in Oslo,
and Swix Sport has more and better
positioned brands than ever before.
Ferd’s best years are therefore still to
come. And that is as it should be, since
it will be very challenging to maintain
our current level of value-adjusted rate
of return on capital.
Ferd starts 2006 with an equity ratio of
81%, much higher than our target to
keep above 40%. We will allocate more
capital to the current business areas in
line with the strategy established in
2004, but this will still leave considerable
unallocated risk capital. We will
therefore launch a number of new initiatives
this year. At the time of writing
our plans are still at the drawing board
stage, but in broad outline we intend to
invest in mature and growing companies
as an active and long-term industrial
owner, either alone or in collaboration
with other investors, while at the
same time making our financial investment
activities even more professional.
2005 confirmed our ability to contribute
to significant value creation in partnership.
One example of this is the results
achieved by our active participation in
Energy Ventures Fund I and Fund II. Both
these funds have performed well, and
we saw the first exit with the successful
IPO of the offshore company Advanced
Production and Loading. A second example
is the Ferd Private Equity Fund,
which produced an impressive return
for Ferd and the other investors from
the sale of Collett Pharma to Orkla.
These and other examples demonstrate
that Ferd offers much more than just
capital, and that our contribution also
benefits our partners. This recognition
of our contribution has encouraged us
to commit ourselves more actively to
collaborative ventures. Among these I
would like to mention Selvaag Pluss
Eiendom, where Ferd Real Estate
invested as one of four partners in a
new concept to develop full service
apartments in a number of Norwegian
cities as well as in Spain. We intend to
develop the collaborative investment
model further in future years. In some
cases access to cash will be crucial, and
this may make it appropriate for Ferd to
take full control.
Ferd is now in a position where the
group can attract the best people. This
was confirmed by our performance in
2005 and will be crucial to our future
results. However it is becoming difficult
to find good candidates in some specialist
areas, particularly people with worldclass
scientific expertise. If our education
system is to produce these skills,
it needs exceptional teachers and programs
at every level. Politicians and the
authorities carry an enormous responsibility
for this as the owners and decision-makers
for the school system. We
cannot rely on access to highly qualified
people from abroad to meet our needs,
and the Norwegian education system
has an important role to play. While it
can be said that talented people go
where the money is, it is more often
the case that money follows the people.
Ferd makes a major part of its investments
in Norway, and we want this to
continue, but we recognise that investments
may increasingly have to be in
companies that operate a major part
of their value chain internationally.
While external commentators will focus
on Ferd's pre-tax profit for 2005, what
really matters for the future is the performance
of our value-adjusted equity.
Excluding the ST sale, the value adjusted
return on equity in 2005 was 20.2%.
However, reporting a high percentage

eturn does not necessarily provide a
complete picture of the value creation
achieved in companies where values are
booked at cost price. This may be due to
emphasising top line growth, strategic
repositioning, growth in profit margins
or even in some cases decisions to
repay borrowings as a result of good
earnings. The trained reader of accounting
figures will, in the same way as we
do in Ferd, recognise the achievements
of employees and partners in these
companies where successful value
creation will become much more
apparent in future years. It is always
pleasing to report good historical
figures, but we are driven by our
objective to create enduring value
and leave clear footprints.
Johan H. Andresen, Jr.
Chief Executive Officer
5

This is Ferd
Ferd is a Norwegian industrial and financial
group with activities concentrated on
active long-term ownership of strong
companies with international potential,
as well as financial investments based
on the group's core expertise in finance,
business development and networking.
Ferd also has an extensive real estate
business. The group's dual structure
means that its industrial and investment
activities compete on equal terms for the
group's capital resources.
The group is structured as five business
areas: Ferd Private Equity, Ferd Invest,
Ferd Venture, Ferd Real Estate and
Elopak. The group also includes the
brand warehouse Swix Sport.
6
ELOPAK
Carton Division
Plastics Division
Market Areas
Elopak is a leading
international supplier
of packaging systems
for the liquid food
market, catering for
both fresh and aseptic
filling of highquality
packaging.
FERD
PRIVATE EQUITY
Ferd Equity Partners
(40 percent)
Investor in the Ferd
Private Equity Fund
Ferd Private Equity is
the largest of 25
Norwegian and international
investors in
the Ferd Private
Equity Fund, which is
the leading private
equity fund with a
focus on Norway. Ferd
owns 40 percent of
Ferd Equity Partners,
the investment
adviser to the fund.
Ferd is wholly owned by Johan H.
Andresen, Jr. who is also the group Chief
Executive Officer. All the owner's commercial
business interests are concentrated
in the Ferd group. The chairman of
Ferd’s Board of Directors and all its members
are external appointments.
HISTORY
Ferd adopted its current structure of five
business areas in 2000. The group
changed its name to Ferd the following
year. However, the company's history
dates back to 1778, and it has been
owned by the Andresen family ever
since 1849 when the first Johan H.
Andresen bought J. L. Tiedemanns
Tobaksfabrik. The company's operational
involvement in the tobacco industry
FERD INVEST FERD VENTURE FERD EIENDOM
Equity investments
Investments in
international equity
funds
Invests in companies
with sound business
concepts, good potential
for value creation,
shareholder-oriented
management and
acceptable gearing.
FERD
Direct investments
Investments in
venture capital funds
Offers risk capital for
technology-based
Nordic growth companies
with significant
potential, principally
in the ICT and energy
sectors.
ended in 1998, and it sold its last financial
investment in this industry in 2005.
The group's long history of industrial
ownership continues today through businesses
such as the international brand
warehouse Swix Sport, acquired in 1978,
and the global packaging systems supplier
Elopak, which the group established
in 1957 to produce Pure-Pak packaging
under license. Elopak went on to purchase
Ex-Cell-O's packaging division in
1987, giving it exclusive global rights to
the Pure-Pak system.
Real Estate management
Real Estate
development
Real Estate investments
Ferd Real Estate is
an active real estate
investor. It manages
and develops a significant
portfolio of
commercial property
as well as developing
new residential projects
for sale. Most of
its real estate interests
are in the Oslo
area.
SWIX SPORT
Brands
Develops, produces
and markets ski
waxes, ski poles and
accessories as well as
textile goods for
sporting and other
active recreational
pursuits, both domestically
and internationally.

Vision, corporate mission statement and value platform
VISION:
We will create enduring value
and leave clear footprints
CORPORATE MISSION STATEMENT:
Ferd will focus on being a proactive
long-term owner of strong
companies with international
potential as well as operating as
a financial investor, making use
of its core expertise in finance,
business development and networking
VALUE PLATFORM:
Ferd has defined two sets of values
that will play an important
role in realising the business
vision for which we strive
CHARACTERISTIC SILHOUETTE.
Ytterøyane lighthouse, on a
small island northwest of
Kinn in Sogn og Fjordane.
This describes the vision that we will strive
to achieve. By value we mean more than
just financial return - value is also created
through personal development and
growth. Equally we shall not forget the
role we play as a significant and valuable
member of society as a whole. Enduring
value signals that we intend to create
something more than just short-term 'bubbles'
- we stand for sound and worthwhile
The mission statement confirms that Ferd
will continue to be involved both as an
active owner of companies and as a financial
investor. This combination of roles has
historically generated good results for the
group, and over the years Ferd has built up
its expertise in both areas. Our corporate
mission underlines the group's commitment
to taking a long-term approach and
stresses that we do not intend to base our
business on making a quick 'turn'.
OPERATIONAL VALUES
Expertise
If we are to be a pro-active owner and partner,
the group needs to build up a store of
knowledge and expertise in important common
areas. We have defined finance, business
development and networking as key
areas of expertise for the group as a whole.
Networking
We strive to develop and make good use
of the group's network of contacts, both
between our industrial companies and
between our industrial and financial activities
as a whole in order to create benefits
such as synergies between our activities.
We must also make full use of the group's
network of international contacts in the
best interests of every individual unit.
Capital
Our strong capital base and healthy liquidity
represent an important competitive advantage,
and give us the capacity to provide
the financial resources needed to develop
and grow both the industrial and financial
investment activities of the group.
projects of enduring value. By leaving
clear footprints we mean that we want
our activities to leave lasting, significant
and visible results in their wake. This also
acknowledges that a trail is clearest if
many follow it - our ambition is for all our
companies, units and employees to be
driven by the same overriding principles
whilst retaining each company's particular
identity and freedom of action.
Moreover the statement stresses that we
will not only be a long-term owner, but
will also play an active role in the companies
where we have a dominant position.
This means that the group is committed to
developing the expertise needed to support
our companies in their continuing
development. A particular challenge in this
area is to ensure that our companies can
benefit from each other's areas of particular
strength and expertise.
CORPORATE VALUES
Credibility
This means that everyone can be confident
that we keep our promises - that we will
implement our strategies and meet our
goals. Even though Ferd is a family-owned
company, credibility requires openness in
our relationship with the media and the
outside world as a whole.
Spirit of adventure
This represents our willingness to take the
initiative and try new opportunities - and
also our readiness to accept that we can
make mistakes. We want our people to be
ready to take the initiative and make the
extra effort, but they must also feel secure
that we understand that not everything can
be 100 percent successful. Our spirit of
adventure means a commitment to progress
and to seeing new opportunities beyond the
distant horizon. It also means that all our
employees will have the opportunity for
personal development and the satisfaction
of creating new adventures for the group.
Teamwork
Ferd can only realise its goals if everyone works
as a team with mutual respect for each other.
This is what creates synergies and a sense of
shared purpose both within each company and
between all the companies in the group.
Long-term view
The continuity, reliability and integrity which
characterise the group will continue to be
central aspects of our personality.
7

Board of Directors’ Report 2005
2005 was a good year for Ferd. For the
first time in the group’s history, all the
business areas reported profits. In addition
to the earnings from the business
areas, the shareholding in Skandinavisk
Tobakskompagni was sold and realised
a gain of NOK 3 037 million. In total,
this gave a pre-tax profit for 2005 of
NOK 4 119 million. The major contribution
in terms of accounting profit
was the return generated on Ferd
Invest’s securities portfolio. Elopak also
made a significant contribution, with
good earnings from the company’s core
activities. Ferd Private Equity’s sale of
Collett Pharma marked a milestone as
the first disposal by the Ferd Private
Equity Fund. This transaction generated
a good return for the investors in
the fund. Ferd Venture recorded a very
good profit when the Energy Ventures
Fund I realised its investment in the
portfolio company APL. Ferd Venture
has also committed significant capital
to Energy Ventures Fund II. Ferd Real
Estate considered many possible properties
for investment in 2005, but did
not carry out any purchases during the
year. The properties it considered were
sold at prices that would have made it
unrealistic for Ferd Real Estate to
achieve its target return on investment.
Swix Sport reported a weaker than
expected operating profit, mainly due to
the adverse winter weather conditions.
Following the sale of shares in
Skandinavisk Tobakskompagni, Ferd’s
consolidated balance sheet shows NOK
3 837 million of free liquid assets and
only NOK 1 067 million of interestbearing
liabilities. This capacity will be
used in the future for a new industrial
investment initiative, accompanied by
investment in financial assets of similar
size to maintain the balance of the
group’s overall risk profile. The group’s
strong financial condition and the
steps taken to strengthen its organisation
over recent years lead the Board to
conclude that Ferd is well-positioned
to realise its vision of creating enduring
value and leaving clear footprints.
THE GROUP’S VALUE-ADJUSTED EQUITY
Ferd operates as a financial investor
from its head office at Lysaker through
the business areas Ferd Invest, Ferd
Venture, Ferd Private Equity and Ferd
Real Estate and has extensive industrial
activities through its subsidiaries
Elopak and Swix. Given the diversified
nature of the group’s activities, the figures
reported for earnings and equity
in accordance with generally accepted
accounting principles provide only a
limited degree of information on the
underlying value of the group. Ferd
8
therefore supplements its accounting
reporting with a value-adjusted analysis
of its results. Such an analysis involves
considerable uncertainty since it is
based on a number of assumptions and
estimated values. The group estimates
its value-adjusted equity at the close of
2005 at NOK 10.9 billion, representing
an increase of 28% from 2004. Ferd’s target
is to achieve 10% average annual
growth in value-adjusted equity.
Value-adjusted equity
Verdijustert egenkapital
NOK billion
12
10
8
6
4
2
0
2003 2004 2005
Value-adjusted equity (left)
Return on value-adjusted equity (right)
30%
25%
20%
15%
10%
5%
0%
FINANCIAL RESULTS AND CASH FLOW
The group’s operating revenue
amounted to NOK 5 969 million in 2005
as compared to NOK 5 957 million in
2004. Consolidated operating profit for
2005 totalled NOK 884 million, which
was NOK 243 million higher than in
2004. The strong improvement in operating
profit reflects improved profitability
at Elopak and a higher investment
return from Ferd Invest. Net financial
items increased from NOK 141 million in
2004 to NOK 197 million in 2005. Lower
interest rates, combined with debt
repayments, led to lower financial
expense for Elopak in 2005 as compared
to 2004. In addition, the group generated
a higher return on its bank deposits,
including a currency gain on the settlement
from the sale of the shareholding
in Skandinavisk Tobakskompagni. A dividend
of NOK 206 million was received
from Skandinavisk Tobakskompagni, in
line with the previous year.
Further commentary on financial
Operating Driftsresultat pr. forretningsområde profit by business siste 2 år area
NOK million
600
500
400
300
200
100
0
-100
Elopak Ferd
Private
Equity
2004
2005
Ferd
Invest
Ferd
Venture
Ferd
Real
Estate
Other
results for 2005 can be found below in
the separate sections on the group’s
business areas.
A substantial reform of Norwegian
taxation for shareholders and limited liability
companies came into effect in
2005. What is known as the exemption
model now applies to income received
by a company from investment in
shares, with the effect that such income
is to all practical intent exempt from taxation
and losses on shares are similarly
not tax deductible. What is known as the
shareholder model applies to shares
held by private individuals, making
income from investments in shares taxable
as general income to the extent that
it exceeds a stipulated standard rate of
return. One of the implications of these
changes for Ferd is that the gain on the
sale of shares in Skandinavisk Tobakskompagni
is not subject to tax, and tax
will only arise if the owner of Ferd benefits
from this gain by drawing a dividend.
The tax charge for 2005 was NOK
93 million as compared to NOK 118
million for 2004. Elopak’s tax charge for
2005 was affected by NOK 52 million in
respect of accounting losses not
deductible for tax. This arose mainly
because deferred tax assets arising
from losses in certain countries are not
capitalised. In addition, Elopak
recorded goodwill depreciation that
was not tax deductible.
Maintaining a high and stable cash
flow is a priority target for the group.
Net cash flow for 2005 was made up of
cash from operations of NOK 266 million,
cash from investment activities of
NOK 3 068 million and cash from
financing activities of NOK -177 million.
SALE OF THE SHAREHOLDING IN
SKANDINAVISK TOBAKSKOMPAGNI
The decision in autumn 2005 to sell
Ferd’s 17.2% shareholding in
Skandinavisk Tobakskompagni represented
an important milestone for the
group’s development. The sales proceeds
of EUR 420 million have given
Ferd an even stronger starting point to
realise its objective of creating enduring
value and leaving clear footprints.
Ferd’s history is intertwined with the
development of its involvement in the
tobacco industry. From the start of its
history, Tiedemanns Tobaksfabrik was
always a leading company in the
Norwegian tobacco industry, becoming
a clear market leader with strong brands
and a high market share. Tiedemanns
Tobaksfabrik merged with Skandinavisk
Tobakskompagni in 1998. This transaction
resulted in Ferd, through its subsidiary
Andresen Holding, owning 17.2%
of the share capital of Skandinavisk

Tobakskompagni. The merger marked
a clear change in Ferd’s ownership relationship
with the tobacco business.
Prior to the merger, Tiedemanns
Tobaksfabrik was the focal point of the
group’s industrial activities, but following
the merger it saw its shareholding
in Skandinavisk Tobakskompagni as a
financial investment.
Ferd has played an active ownership
role in Skandinavisk Tobakskompagni
since 1998, and this has included two
representatives on the Board of Directors.
The company has shown an impressive
ability to successively improve its earnings,
and has paid a high and stable dividend
that has played a crucial role in
Ferd’s ability to invest in other areas.
The Board’s decision to nonetheless sell
the group’s shares in Skandinavisk
Tobakskompagni was based on three
main reasons:
Firstly, the Board considered that
Skandinavisk Tobakskompagni’s future
growth prospects were limited.
Important factors in this respect are
the emergence of low-price cigarette
brands and falling tobacco consumption
in important markets, due in part
to higher taxes and bans on smoking in
many locations.
Secondly, the Board took the view
that it was neither possible nor desirable
for Ferd to play an even more active
ownership role in Skandinavisk Tobakskompagni.
The company has a sizeable
majority shareholder created from the
three Danish tobacco companies that
originally founded Skandinavisk Tobakskompagni.
The next largest shareholder
is a large global tobacco company.
The third, and perhaps most important,
reason for the decision to sell the
shares in Skandinavisk Tobakskompagni
is the expertise that Ferd has developed
over recent years and the return that
Ferd’s organisation can be expected to
generate on the capital released by selling
the shares. Ferd’s current business
areas offer very good opportunities for
profitable growth, and Ferd also has
the expertise to generate good returns
on investments in other areas.
The Board therefore concluded
that, over the longer term, the group’s
investment in Skandinavisk Tobakskompagni
would not contribute to fulfilling
Ferd’s objectives to the same
extent as could be achieved by alternative
uses of the capital tied up in this
investment.
FINANCIAL STRATEGY
The group’s objective is to generate
sound long-term return on capital while
maintaining a moderate risk profile.
Ferd aims to achieve its objective
through its significant business activities
in both industrial and investment activities.
The results reported for recent years
demonstrate very clearly that the group’s
investment activities are very dependent
on conditions in the equity markets. The
group’s industrial activities have also
shown sizeable fluctuations in reported
accounting profit, and it is reasonable to
assume that the underlying values are
also volatile. Ferd is exposed to equity
investments to a large degree, although
these investments are well diversified in
terms of the company type, industry,
size, stage of life cycle etc. Nonetheless,
the overall performance of these investments
will be relatively highly correlated
with the performance of equity markets.
The asset classes of real estate and fixedincome
represent diversifying factors,
but the current relatively small allocations
to these classes limit the scale of
this effect. In total, it must be concluded
that the group can expect major fluctuations
in its value-adjusted equity and
that Ferd has high exposure to operational
risk. One measure to increase
diversification and reduce the exposure
to operational risk is the establishment
at the start of 2006 of a portfolio of
hedge fund investments of around
NOK 500 million.
Ferd maintains a moderate financial
risk profile in order to ensure that
the group’s total risk level is acceptable.
This is achieved mainly by maintaining
a strong equity ratio and good liquidity.
At the close of 2005, the group had no
interest-bearing liabilities except for
Elopak’s external financing. The group’s
investment in Skandinavisk Tobakskompagni
has helped to ensure a high
and stable cash flow.
The sale of the shareholding in
Skandinavisk Tobakskompagni creates
new requirements for the level of liquidity
reserves and the cash flow expected
from new investments. Periods of weak
cash flow and/or high interest rates may
make it necessary to realise investments
at undesirable times in order to maintain
debt service payments. The group’s
Equity Egenkapitalandel ratio
90 %
80 %
70 %
60 %
50 %
40 %
30 %
20 %
10 %
0 %
52 52
47
67
2001 2002 2003 2004
Equity ratio (%) book value
Equity ratio (%) value-adjusted
63
76
81
77
2005
financial strategy must therefore carefully
consider the risks of fluctuations in
the value of investments, the stability of
the cash flows they generate and the
scope for realising investments at short
notice. Ferd’s activities are exposed to
currency risk since receipts and payments
in foreign currencies are not fully
matched. The group seeks to minimise
this risk through the active use of various
hedging instruments. In its financial
investment activities, the group hedges
all investment in foreign currency
denominated interest-bearing securities,
but does not hedge investments in
equity instruments. Elopak has limited
currency risk despite being an international
business with many cross-border
transactions. This is achieved by ensuring
that operating costs and raw material
purchases are to a large extent in the
same currency as the related operating
revenue. In addition, Elopak uses hedging
instruments to reduce its risk exposure,
for example by hedging major purchases
or investments on the day the
order is placed.
Ferd’s exposure to interest rate risk
arises from funding and interest-bearing
investments, and is managed by
Group Treasury in accordance with
established guidelines. Interest can be
fixed for periods of up to 10 years. The
group (excluding Elopak) has a committed
credit facility of NOK 1 billion
on which no drawings were made in
2005. The interest-bearing investment
portfolio is modest, hence the group
has very limited exposure to interest
rate risk. Elopak, which has interestbearing
liabilities of NOK 1 058 million,
manages its own interest rate risk
exposure through active use of suitable
interest rate hedging instruments.
Elopak’s main objective is to reduce the
effect of interest rate fluctuations, and
the company follows a policy of fixing
interest rates on a rolling five-year
basis for 50-70% of its total borrowings.
The group’s industrial activities are
exposed to credit risk through customer
receivables. The group has not historically
suffered any major losses on customer
receivables. In its financial investment
activities, the group only invests
in securities issued by companies of at
least investment grade credit quality.
CORPORATE GOVERNANCE
The Board of Directors of Ferd has substantially
the same responsibilities and
authority as the board of a public company.
This is essential if the Board is to
function effectively and contribute to
sound decision making. Precise risk evaluation
and thorough decision making
processes help to strengthen Ferd’s credi-
9

ility, which is one of the group’s fundamental
corporate values. The Board pays
great attention to ensuring that management
has established satisfactory internal
procedures and control processes so
that the group’s business operates in
accordance with the approved limits and
strategies. The group is about to launch
its plans for significant growth over the
next few years, and the Board will pay
particular attention to the implementation
and monitoring of this strategy in
2006. Ferd is committed to providing
open and reliable information on the
group’s financial condition as one of the
steps it takes to promote its corporate
value of credibility.
The Board held five meetings in
2005, one of which was a strategy
meeting held over two days. The attendance
record for its meetings was over
90%. The Board has evaluated its own
performance, and concluded that it is
independent and effective in its operation
although it did identify some
potential for improvement.
ELOPAK
Elopak’s carton activities generated a
sound operating profit in 2005 despite
significant price increases for the company’s
main raw materials. Elopak has
countered these higher costs with continuing
innovation, increased volumes
and further efficiency improvements,
and its carton activities achieved the
best annual earnings in the company’s
history. Plastic packaging activities also
showed an improvement in 2005, but
in accordance with the revised strategy
for this area these activities are currently
undergoing restructuring which
burdened the Elopak group’s earnings
in 2005 by NOK 54 million. The group’s
consolidated earnings for 2005 are considered
satisfactory in view of the challenging
conditions in which Elopak
operates.
Elopak generated positive cash flow
in 2005, which was used to repay a significant
proportion of its interest-bearing
borrowings. The cash conversion
ratio, defined as cash from operations
(after changes in working capital and
Operating profit – Elopak
Driftsresultat Elopak siste 5 år
NOK million
300
250
200
150
100
50
0
10
272
2001
135
2002
242
27
251
2003 2004 2005
investments in fixed assets) as a proportion
of operating profit before amortisation,
was 0.8 in 2005 as compared to 1.0
in 2004. The fall in this ratio was principally
due to an increase in inventories in
anticipation of expected price increases.
Elopak works continuously to
improve the efficiency and profitability of
its production activities. The continuing
rollout of UV flexo press technology
improved the overall efficiency of
Elopak’s production lines in 2005. The
company increased its capacity for this
new technology to four production lines,
and further production lines will be
added in 2006. In addition to more efficient
capacity utilisation, this technology
is successfully delivering higher print
quality. Other measures to improve efficiency
include optimising the structure
of paperboard for cartons, greater flexibility
and improved processes for polyethylene
paperboard coating.
Construction of the carton factory
in China has been delayed for 12 months,
and construction is now expected to
start in the first quarter of 2006.
In the markets where Elopak operates,
it is essential to take a leading role
in developing new solutions for customers.
The cost savings implemented
elsewhere in the company have not
affected the research and development
effort, and a number of innovative
products and system improvements
were launched in 2005. Carton innovations
launched in 2005 already account
for 5% of operating revenue. The Pure-
Pak Diamond Curve concept was
launched in Greece in autumn 2005,
and a range of carton models were subsequently
launched in a number of
European markets for both fresh and
aseptic packaging. Work is underway
on the development of two potential
new carton systems with a view to market
launches in 2006-2007.
Elopak reported higher revenue and
earnings from its carton activities in all
geographic markets. The company is
achieving faster growth than the market
as a whole. Considerable effort has
been devoted to further improving customer
deliveries of high-quality aseptic
packaging systems. Consumption of
fresh milk in Europe, which is Elopak’s
largest market, continued its downward
trend of 1-2% per annum in 2005.
However, the market for juice consumption
showed an equivalent increase, and
Elopak has strengthened its position in
the market for high quality long-life
juice packaging. Elopak’s carton sales in
the EMEA region as a whole were 8%
higher in 2005, and sales of screw cap
closures made a further contribution to
Elopak’s growth in this area.
ROUGH SEAS. Skomvær lighthouse in Nordland is on an island southwest
of Røst, way out into the wild waters of the Norwegian Sea.
Sales of both cartons and screw caps
to the American market increased in
2005, and this trend is expected to continue
in 2006. Further improvements in
operational efficiency and the launch of
screw caps in the Mexican market are
expected to generate a further improvement
in operating profit from this region.
In the CIS market area (Commonwealth
of Independent States), 2005 was
a challenging year due to the political
and economic situation, but despite this
Elopak reached its sales and earnings
targets. This was achieved thanks to
focused work on customer projects and
the launch of product improvements
including the introduction of screw
caps. The Asian market is characterised
by strong growth in consumption of
dairy and juice products. Elopak’s new
production facility in China will play a
central role in serving this market.
Elopak revised its strategy for the
production and sale of plastics packaging
in 2005, and company policy is now
not to be the 100% owner of these
activities. Some aspects of the plastics
packaging business were sold in 2005,
and the company intends to focus on
efficient operation of its remaining
plastic bottle production facilities.
FERD PRIVATE EQUITY
Ferd Private Equity reported operating
profit of NOK 47 million for 2005. This
represents a sizeable reduction from
the results for 2004, which included
profit and gain on disposal from TiTech
Visionsort. Operating profit for the year
includes a share of the gain the fund
achieved on its sale of Collett Pharma.
It is important to note that the decline
in reported accounting profit does not
reflect the significant increase in the
value of investments held by Ferd Private
Equity Fund.
Ferd Private Equity established an
investment fund in 2004, with 25
Norwegian and foreign investors committing
a capital base of NOK 2 billion.
Ferd is the largest investor in the fund,
and has committed NOK 1 278 million.
Over the course of 2005 Ferd Private
Equity strengthened its team and successfully
established a strong position
in the attractive Norwegian private
equity market. Thanks to its expertise
and active use of its network of contacts,
the organisation has attracted a
good flow of investment opportunities.
The fund made its first disposal in
2005 with the sale of Collett Pharma to
Orkla ASA. The sale generated a good
result for the fund, and gives Collett
Pharma a new owner who is well placed
to ensure the company’s future success.
Pronova Biocare continues to report

sound performance. The company has
now launched its pharmaceutical product
Omacor in the American market.
A further important event in 2005 was
the signing of a long-term contract
with a significant player for sales of this
product in the Japanese market. The
company’s consumer products division
was sold at the same time as the sale of
Collett Pharma. Pronova Biocare is now
focused solely on its pharmaceutical
division having spun-off its oils and
dietary supplements activities as a
separate company. The new company,
Epax, is now an independent company
in the fund’s portfolio.
In March 2005 the portfolio company
Noratel purchased Toroid
International, which manufactures
transformers in Sri Lanka and India.
This acquisition makes Noratel a global
company with annual turnover in
excess of NOK 500 million. Noratel and
the fund will now focus on realising
operational improvements as well as
considering further acquisitions.
In autumn 2005 Handicare acquired
two companies, Kjærulff in Denmark
and Movingpeople in Holland. Work is
currently under way to integrate these
acquisitions, and the company is
already preparing for further purchases.
These developments have given
the company a strong position and
sound growth for the start of 2006.
The fund intends to place great
emphasis on the further development
of the companies in its portfolio. It also
has significant un-invested capital, and
intends to make further acquisitions
and supplementary investments in 2006.
Ferd will also consider direct private
equity investments in the future
where these do not compete with the
Ferd Private Equity Fund.
FERD INVEST
The Oslo stock market has performed
very strongly over the last three years,
producing its best three-year performance
in recent times. Ferd Invest
accordingly enjoyed another good year
in 2005. The return for the year fell
slightly short of the benchmark index
due to holding a higher proportion of
the portfolio in cash from time to time,
but nonetheless Ferd Invest contributed
NOK 566 million to consolidated profit
for the year. This represents an increase
of NOK 188 million from 2004.
Energy shares produced the
strongest performance in the Oslo market
in 2005. Ferd Invest has been underweight
in this sector. However, Ferd
Invest made a number of good stock
selections in other sectors. The return on
Ferd Invest’s Norwegian share portfolio
for 2005 was 35.3% as compared to 40.5%
for the Oslo Børs benchmark index.
Total return – Ferd Invest
Avkastning i Ferd Invest siste 5 år
NOK million
800
600
400
200
0
-200
-400
-600
2001
2002
2003 2004 2005
Total return Ferd Invest 5-year-history
Total return Ferd Invest %
60 %
50 %
40 %
30 %
20 %
10 %
0 %
-10 %
-20 %
-30 %
-40 %
The international portfolio also
performed well, with a return of 27.5%.
American stock markets produced only
a modest return in 2005 due to rising
interest rates, hurricanes and high oil
prices. However, stock markets in
Europe and Asia performed strongly
thanks to encouraging growth
prospects and low interest rates.
At the close of 2005, Ferd Invest’s
portfolio of Norwegian listed shares
had a market value of NOK 1 450 million.
The international share portfolio
amounted to NOK 745 million, and the
portfolio also held liquid assets of NOK
122 million. During the course of 2005,
Ferd Invest increased its exposure to
international stock markets by investing
in international funds.
FERD VENTURE
Ferd Venture produced an operating
profit of NOK 12 million in 2005. This
represents an improvement of NOK 25
million from 2004, and is the first time
this business area has reported a profit.
This reflects the first exit achieved
through Ferd Invest’s successful investment
in Energy Ventures. The remainder
of the portfolio also performed well,
and reversals of previous write-downs
contributed to the profit for the year.
2005 again saw a good flow of
potential investments, and Ferd Venture
expanded its portfolio with investments
in a further four companies. Ferd
Venture recruited new colleagues to
strengthen its team, and is recognised
as one of the country’s leading venture
capital businesses. Ferd Venture again
made a positive contribution to the
development of the companies in its
portfolio through its systematic and
long-term ownership involvement.
New investments in 2005 principally
focused on high-technology companies,
but the final investment in 2005
was in a company that provides legal
insurance products for the retail mar-
ket. In addition to its investments in
new companies in 2005, Ferd Venture
made a number of follow-up investments
in existing portfolio companies.
Operating profit – Ferd Venture
Driftsresultat i Ferd Venture siste 5 år
NOK million
20
0
-20
-40
-60
-80
-100
-120
-140
Energy Ventures has established a
position as the leading Norwegian venture
capital company for the energy
sector. The company’s first fund has
made eight investments in the energy
sector, and most of these companies
are performing very strongly. One of
these companies, APL, was admitted to
stock exchange listing in April and this
generated a good return for Ferd
Venture. Ferd Venture is also a significant
investor in the second Energy
Ventures fund, to which it has committed
NOK 130 million.
FERD REAL ESTATE
2005 was a satisfactory year for Ferd Real
Estate. Operating profit fell back from
NOK 104 million in 2004 to NOK 56 million.
This was because the business area
had no residential developments on sale
in 2005, and did not make any new
investments in commercial property.
Operating profit – Ferd Real Estate
Driftsresultat Ferd Eiendom siste 5 år
NOK million
120
100
80
60
40
20
0
-72
2001
31
2001
-119
2002
31
2002
2003 2004 2005
2003 2004 2005
The commercial property rental
market improved somewhat in 2005,
but is characterised by increasing segmentation.
The bulk of Ferd Real
Estate’s commercial property portfolio
is located in the Ensjø district, which
continues to suffer from downward
pressure on rental levels despite its
proximity to the centre of Oslo.
The market for purchases and sales
of investment properties was again very
active in 2005. This should be seen
-7
59
-13
104
12
56
11

against the background of low interest
rates combined with increasing activity
by investment syndicates and real estate
funds. Ferd Real Estate actively evaluated
a number of potential purchases of
investment properties over the course of
the year, but did not make any purchases
since the properties sold for prices that
Ferd Real Estate considered were too
high to permit a satisfactory return.
The residential market was strong
in 2005 and is expected to remain
strong in 2006, although the market
can scarcely support any major price
increases. Ferd Real Estate is currently
involved in a number of new residential
development projects, of which the
largest involves work on planning permission
for the company’s various sites
at Ensjø. Sales of units in a new development
on the Tiedemanns site in the
Ensjø district started in February 2006.
Ferd Real Estate intends to add to
its portfolio of investments in commercial
properties for rent. The business
area strengthened its team with the
appointment of an investment director
in 2005. The commercial property market
is again expected to attract many
investors with low yield requirements
in 2006, which will make it challenging
for Ferd Real Estate to find investment
properties that meet its criteria.
SWIX SPORT
After several years of growth in turnover
and good profits, 2005 was a poor year
for Swix Sport. This was caused by poor
snow conditions at the start of the year
and at the start of the 2005/2006 winter
season. Turnover was lower than
expected, especially for ski waxes and
ski poles. Swix reported turnover for
2005 of NOK 397 million, a decline of
5% from 2004. The company’s costs
for the year reflected the considerable
resources it committed to product
development and international brand
development. Swix has now established
its position as a modern brand warehouse,
with separate brand identities
Gunn Wærsted
Chair
12
and profiles for Swix, Bavac and Ulvang.
The company has strengthened its
organisation and is well positioned for
future growth. The result for 2005 was a
loss of NOK 20 million as compared to a
profit of NOK 22 million in 2004.
Operating profit – Swix Sport
Driftsresultat i Swix siste 5 år
NOK million
40
30
20
10
0
-10
-20
-30
13
2001
28
2002
2003 2004 2005
The current season looks more
promising thanks to better snow conditions,
and Swix has made a satisfactory
start to 2006. The investments made in
2005 and the steps taken to strengthen
the company’s organisation are also
expected to produce results. The Board
is confident that Swix will report
markedly stronger results for 2006.
HEALTH, SAFETY, ENVIRONMENTAL MATTERS
AND EMPLOYMENT EQUALITY
None of the group’s activities produces
discharges that require licensing and
environmental monitoring. Elopak’s
facilities have environmental management
systems to monitor performance,
identify any areas for improvement and
report any incidents. There is increasing
recognition of the environmental
superiority of Pure-Pak cartons, reflecting
greater environmental awareness
among consumers. Consumers recognise
paper as a natural product, and
react positively to paper-based packaging
products. Paper-based drink cartons
can be readily recycled. In 2005 all
the raw material suppliers used by
Elopak were certificated in accordance
with the principles developed by the
Forest Stewardship Council (FSC). No
Bærum, 23. March 2006
The Board of Directors of Ferd Holding AS
Wenche Agerup Henrik Brandt Urban Jansson Jo Lunder
27
22
-20
incidents occurred in 2005 that affected
the external environment.
The Ferd group had 2 253 employees
in 2005, an increase of 34 from the
previous year. Elopak actively monitors
key indicators for health and safety at
work, which provide a comprehensive
picture of working conditions. Elopak’s
management carries out surveys of
working conditions to help identify
areas that require attention.
Sick leave amounted to 3.2% for the
group as a whole in 2005, as compared
to 3.8% in 2004. Elopak reported a
reduction in the number of accidents
at work leading to absence from work
per million working hours from 15.7%
in 2004 to 10.1% in 2005. This is a satisfactory
performance, but the company
has nonetheless targeted a further
improvement.
Ferd AS had 29 employees at the
close of 2004, of which 21 are male and
8 are female. Four new male employees
were appointed in 2005. One of the
objectives of the Ferd Academy, which
identifies and provides further training
for promising young managers, is to
create a better balance between the
sexes in senior management. So far
19 members of staff have completed
the Ferd Academy training program,
of which 7 are female.
The Board of Directors of Ferd
Holding comprises two female nonexecutive
directors and three male
non-executive directors.
ALLOCATION OF THE RESULT FOR THE YEAR
Ferd Holding AS (the parent company)
reported a profit for the year of NOK 4
million, which is transferred to other
equity. The company’s distributable
reserves amount to NOK 325 million.
The annual accounts have been prepared
on the going concern assumption.
The group made good progress in
2005 in line with Ferd’s strategic direction.
The Board would like to thank all
employees for their enthusiasm and
commitment.
Johan H. Andresen Jr.
CEO

The Board of Directors of Ferd Holding:
Jo Lunder, Gunn Wærsted, Urban Jansson,
Wenche Agerup and Henrik Brandt.
GUNN WÆRSTED, Chair, is the Managing
Director of SpareBank 1 Gruppen AS and
has extensive experience of financial and
insurance business in Norway. She has
held a number of board appointments
with companies and other bodies since
the end of the 1980s, and her current
appointments include Chair of the Board
of the Norwegian School of Management,
Chair of the Executive Board of the
Norwegian Financial Services Association,
member of the Corporate Assembly of
both Orkla and Rieber & Søn and member
of the Election Committee for Norske
Skog and Schibsted.
WENCHE AGERUP is Vice President, Alumina
& Bauxite, at Norsk Hydro ASA where she
was previously Vice President, Corporate
Mergers & Acquisitions. Her previous experience
includes practising as a lawyer at
Thommesen, Krefting, Greve & Lund and
employment with Nycomed ASA.
HENRIK BRANDT is Danish and the
Managing Director of Unomedical AS in
Denmark. He has extensive international
experience from a number of senior
positions with Sophus Berendsen and
Skandinavisk Tobakskompagni A/S.
Mr Brandt is a board member for Royal
Unibrew A/S.
URBAN JANSSON is Swedish and a board
member of a number of companies including
Addtech, Ahlström, Eniro, Plantasjen,
SEB, Tylö, Clas Ohlson, i.a. His previous
experience includes Chief Executive Officer
of Ratos, a family-owned company that
was subsequently listed on the stock
exchange. Mr Jansson was the first CEO of
Ratos not to come from the owning family.
Prior to this he held a number of senior
positions in Incentive AB and SE Banken.
JO LUNDER is CEO of Ementor ASA. Prior to
this, he was the working Chairman and
CEO of the Russian telecommunications
company VimpelCom, which is partly
owned by Telenor. He also has experience
from other senior appointments in the
Telenor group and with Norgeskreditt.
13

14
IN FROM THE OCEAN. There are a number of types of lighthouse that perform
different functions. Coastal lights – represented here by Skomvær
lighthouse –are built on the edge of the ocean, normally on wind swept
rocky islets or headlands. They need to be visible from way out at sea,
and therefore need an elevated location or a high tower to compensate
for the curvature of the earth.

Consolidated profit and loss account - Ferd Holding Group
Figures in NOK 1 000 2005 2005 2004 2003
OPERATING REVENUE AND OPERATING EXPENSES
Note uro 1) NOK NOK NOK
Operating revenue 2,3,4 747 603 5 969 608 5 956 732 5 582 320
Cost of goods sold 4 381 074 3 042 878 3 037 021 2 786 175
Salary and personnel costs 6 119 382 953 263 1 072 577 996 504
Ordinary depreciation 2,7,8 39 121 312 378 381 839 335 438
Write-down of fixed assets and intangible assets 7,8 8 682 69 326 134 502 14 279
Other operating expenses 3 88 588 707 372 689 789 718 945
Total operating expenses 636 847 5 085 217 5 315 727 4 851 341
Operating profit 2 110 756 884 391 641 005 730 979
FINANCIAL INCOME AND FINANCIAL EXPENSES
Income from associated companies 11 1 266 10 112 7 623 - 20 841
Gain on sale of shares in Skandinavisk Tobakskompagni A/S 5 380 388 3 037 399 0 0
Financial income 5 34 973 279 258 266 913 278 161
Financial expenses 5 - 11 568 - 92 371 - 133 609 - 196 335
Net financial items 405 059 3 234 398 140 927 60 985
Profit before tax and minority interests 515 815 4 118 789 781 931 791 964
Tax 16 11 658 93 091 117 882 205 773
PROFIT FOR THE YEAR 504 157 4 025 698 664 049 586 191
Minority share of profit for the year 14 093 112 533 7 586 9 555
Majority share of profit for the year 490 064 3 913 165 656 463 576 636
1) Figures presented in Euro are the figures from the accounts denominated in NOK converted at the exchange rate as of 31.12.05. The exchange rate applied
was 7.9850.
15

Consolidated balance sheet at 31. December - Ferd Holding Group
Figures in NOK 1 000 2005 2005 2004
ASSETS
Fixed assets
Intangible assets
16
Note uro 1) NOK NOK
Patents, trademarks and software 7 6 580 52 543 28 280
Deferred tax assets 16 25 874 206 604 174 196
Goodwill 7 17 979 143 566 214 271
Total intangible fixed assets 50 433 402 713 416 747
Tangible fixed assets
Land, buildings and other real estate 8 47 213 376 999 445 753
Plant and machinery 8 126 569 1 010 654 1 082 957
Fixtures and fittings, vehicles, and other equipment 8 6 007 47 966 60 487
Total tangible fixed assets 179 789 1 435 619 1 589 197
Financial fixed assets
Interests in associated companies 11 12 647 100 989 80 236
Equity investments and limited partnerships 9 426 3 398 308 087
Prepaid pensions 15 456 3 645 18 609
Other receivables 14 642 116 915 73 033
Total financial fixed assets 28 171 224 947 479 965
Total fixed assets 258 393 2 063 279 2 485 909
Current assets
Inventories 12 115 596 923 036 863 491
Receivables
Accounts receivable 85 769 684 869 620 962
Other receivables 73 836 589 583 362 216
Total receivables 159 605 1 274 452 983 178
Financial current assets
Equities and equity funds 10 271 185 2 165 413 1 506 739
Bonds 10 4 452 35 546 45 329
Other non-listed investments 10 86 598 691 484 600 935
Total financial current assets 362 235 2 892 443 2 153 003
Bank deposits 480 558 3 837 258 679 706
Total current assets 1 117 994 8 927 189 4 679 378
TOTAL ASSETS 1 376 387 10 990 468 7 165 287
1) Figures presented in Euro are the figures from the accounts denominated in NOK converted at the exchange rate as of 31.12.05.
The exchange rate applied was 7.9850

Consolidated balance sheet at 31. December - Ferd Holding Group
Figures in NOK 1 000 2005 2005 2004
EQUITY AND LIABILITIES
Equity
Paid-in equity
Note uro 1) NOK NOK
Aksjekapital 13,14 6 074 48 500 48 500
Share capital 14 265 755 2 122 050 2 122 050
Other Paid-in equity 14 91 143 727 776 727 776
Total paid-in equity 362 972 2 898 326 2 898 326
Retained earnings
Hedging reserves 14 -370 -2 951 0
Retained earnings 14 674 387 5 384 982 1 565 833
Minority interests' share in capital 14 16 597 132 529 21 190
Total retained earnings 690 614 5 514 560 1 587 023
Total equity 1 053 586 8 412 886 4 485 349
Liabilities
Provisions
Pension liabilities 15 25 702 205 233 118 822
Deferred tax 16 16 524 131 944 135 562
Total provisions 42 226 337 177 254 384
Other long-term liabilities
Liabilities to financial institutions 17 103 145 823 609 1 018 480
Other long-term liabilities 13 823 110 376 123 768
Total other long-term liabilities 116 968 933 985 1 142 248
Current liabilities
Liabilities to financial institutions 23 570 188 204 125 546
Accounts payable 55 711 444 853 461 373
Tax payable 16 6 619 52 855 33 671
Employer's contributions, duties etc. payable 10 965 87 558 95 115
Dividends 14 4 34 30 445
Other current liabilities 66 740 532 916 537 156
Total current liabilities 163 608 1 306 420 1 283 306
Total liabilities 322 801 2 577 582 2 679 938
TOTAL EQUITY AND LIABILITIES 1 376 387 10 990 468 7 165 287
1) Figures presented in Euro are the figures from the accounts denominated in NOK converted at the exchange rate as of 31.12.05. The
exchange rate applied was 7.9850
Gunn Wærsted
Chair
Bærum, 23 March 2006
The Board of Directors of Ferd Holding AS
Wenche Agerup Henrik Brandt Urban Jansson Jo Lunder
Johan H. Andresen Jr.
CEO
17

Consolidated cash flow analysis - Ferd Holding Group
Figures in NOK 1 000 2005 2005 2004 2003
Cash flow from operational activities
18
uro 1) NOK NOK NOK
Profit before tax and minority interests 515 816 4 118 789 781 931 791 964
Tax paid - 5 769 - 46 064 - 90 300 - 91 847
Ordinary depreciation and write down 47 803 381 704 516 341 349 717
Share in profit of associated companies - 1 266 - 10 112 - 7 623 20 841
Gains and losses on sales of securities, net - 464 565 -3 709 550 - 706 324 - 447 118
Gains and losses on sales of fixed assets, net - 1 643 - 13 122 - 20 924 - 3 280
Change in inventories - 5 382 - 42 974 - 43 164 82 217
Change in accounts receivable - 6 231 - 49 754 62 719 40 050
Change in accounts payable - 4 581 - 36 579 19 493 - 20 105
Change in other current assets and current liabilities, net - 40 868 - 326 332 89 417 10 888
Net cash from operational activities 33 314 266 006 601 566 733 327
Cash flow from investment activities
Proceeds from sales of tangible assets 6 884 54 970 43 312 19 421
Investments in tangible assets - 34 558 - 275 947 - 387 527 - 525 374
Proceeds from sale of shares in Skandinavisk Tobakskompagni A/S 417 109 3 330 614 0 0
Net investment in securities - 10 619 - 84 793 80 758 540 684
Net receipts from/ payments to other investments 5 427 43 335 305 338 - 16 549
Net cash flow from investment activities 384 243 3 068 179 41 881 18 182
Cash flow from financing activities
Change in liabilities to financial institutions - 17 032 - 136 003 - 847 798 - 438 693
Equity paid-in 0 0 2 100 050 0
Dividends paid - 4 312 - 34 435 -2 182 500 - 20 855
Payments to minority interests - 776 - 6 195 - 60 - 5 072
Net cash flow from financing activities - 22 120 - 176 633 - 930 308 - 464 620
Net increase (decrease) in bank deposits 395 435 3 157 552 - 286 861 286 889
Bank deposits at 01.01 85 123 679 706 966 567 679 678
Bank deposits at 31.12 480 558 3 837 258 679 706 966 567
1) Figures presented in Euro are the figures from the accounts denominated in NOK converted at the exchange rate as of 31.12.05.
The exchange rate applied was 7.9850

Notes - Ferd Holding Group
NOTE 1 ACCOUNTING PRINCIPLES
The accounts have been prepared in accordance with the Accounting Act of
1998 and generally accepted accounting principles in Norway.
The management’s preparation of the accounts is partly based on assumptions
and estimates that will affect the accounting value of assets, liabilities,
income, expenses and information on contingent liabilities in the notes to the
financial statements. Actual numbers may deviate from the original estimates.
Consolidation
The consolidated accounts include Ferd Holding AS and subsidiaries. The
group accounts show the financial condition of the companies as one unit and
include those companies where Ferd Holding AS directly or indirectly owns
50% or more of the voting share capital and / or exercises controlling influence.
All material transactions and accounts payable and receivable between
companies in the group are netted off in the consolidated accounts.
The group’s interest in jointly controlled companies is recognised on the proportional
consolidation method and is included in the relevant items of the
group’s profit and loss account and balance sheet. Where the group’s ownership
interest in a company is between 20% and 50% of the voting capital
and the group exercises significant influence (associated companies), the
equity method of accounting is applied to the investment. The equity
method implies that the group’s share of the company’s profit for the year is
shown in the accounts as a separate line in the profit and loss account and
the group’s interest in the equity of associated companies, adjusted for any
over-value, is shown as a fixed asset in the balance sheet.
In the parent company accounts, investments in subsidiaries, jointly controlled
companies and associated companies are recognised in accordance
with the cost method of accounting.
All acquisitions are recognised in accordance with the past equity method.
When subsidiaries are acquired, the cost of the shares is netted against the
subsidiary’s equity at the date of acquisition. Any over-value in excess of the
equity of the subsidiary is posted to identifiable assets and liabilities so that
they are stated at their actual value at the date of acquisition. Any over-value
that cannot be attributed to assets or liabilities is capitalised as goodwill.
Goodwill is amortised on a linear basis according to the plan referred to in
note 7 taking into consideration expected future cash flows. Goodwill is
tested for impairment if indications exist at the reporting date that goodwill
may be impaired. For the purpose of impairment testing, goodwill is allocated
to the cash-generating unit that has benefited from the synergies of
the business acquisition.
Translation of accounts denominated in foreign currency
The profit and loss account of overseas subsidiaries is converted to
Norwegian kroner at the average exchange rate for the year. Balance sheet
items, including over-value and goodwill, are converted at the exchange rate
on the date of the balance sheet. Foreign exchange gains or losses arising
from the translation of foreign subsidiaries’ accounts to Norwegian kroner
are applied directly against the group’s equity capital.
Foreign currencies
Monetary items denominated in foreign currency are converted to Norwegian
kroner at the exchange rate on the balance sheet date.
Recognition of income
As a general rule income is recognised on the sale of goods or services at
the date of delivery provided that risk and ownership is transferred to the
customer. Unrealised gains or losses on listed securities which have a sufficiently
deep and liquid market, and which are classified as current assets,
are recognised to profit and loss on the balance sheet date.
Realised gains from the sale of the investments in the Ferd Private Equity
Fund are recognised at the date the respective portfolio investment is sold
by Ferd Private Equity Fund. The gain is calculated as Ferd’s share of the sale
proceed less for the original cost of the respective investment space. Any
related contingent bonus is accrued for at the time of realisation, based on
best estimate.
Realised gains from the sale of investments in funds within Ferd Venture
are recognised only to the extent that gains exceed the original cost of the
investment in the fund.
Foreign currency and interest rate risk
The Ferd Holding group makes use of various financial derivatives to manage
interest rate risk and foreign currency exposure. In the consolidated accounts,
financial derivatives are marked to their market value when market value
can be reliably estimated. Income and expenses arising from contracts
entered into and designated as fair value hedging instruments are amortised
and classified in the same way as the underlying balance sheet item that is
being hedged. Income and expenses arising from contracts entered into and
designated as cash flow hedges are deferred in equity until the hedged
transaction is recognised to profit and loss.
Currency and interest rate hedging transactions which are not designated as
hedging instruments for accounting purposes are valued at market value and
recognised to profit and loss as financial income or expense.
Leases
Leases are classified as finance leases and the corresponding assets and
obligations are recorded on the balance sheet when substantially all of the
risks and rewards of ownership have been transferred to Ferd. All other
leases are classified as operating leases.
Intangible assets
Intangible assets are included in the balance sheet at cost, if:
1. It is likely that future economic benefits will flow to the enterprise, and
2. the cost of the asset can be measured reliably.
Intangible assets that are acquired separately are recognised in the balance
sheet at acquisition cost. Intangible assets acquired as part of a business
combination are recognised separately at fair value to the extent criteria for
separate recognition are satisfied.
Intangible assets, except for assets with indefinite economic life, are depreciated
on a linear basis over their expected economic life.
Tangible fixed assets
Assets intended for permanent ownership or use are classified as fixed assets.
All other assets are classified as current assets. Fixed assets are shown in the
balance sheet at acquisition cost less accumulated depreciation. Fixed assets are
depreciated on a linear basis over their expected economic life. If any indication
exist on reporting date that the fixed assets may be impaired, fixed assets are
tested for impairment by estimating recoverable amount. The recoverable
amount is the higher of its fair value lest costs to sell and its value in use.
Write-downs may be reversed to the extent that the reason for the write-down
ceases to apply. Gains or losses on the sale of fixed assets are included as operating
income or operating expense respectively in the profit and loss account.
Inventories
Inventories are valued at the lower of average cost applying the FIFO principle
or net sales value. Goods manufactured in-house are valued at the full
cost of manufacture and are written down to net sales value to the extent
that net sales value is lower than capitalised cost of manufacture. The cost of
manufacture includes the cost of raw materials, energy, direct salaries, and a
proportion of indirect costs including depreciation. The net sales value of raw
materials and work in progress is calculated as the sales value of the equivalent
finished goods reduced to take into account the remaining manufacturing
costs and sales costs.
Construction contracts
Operating revenue from construction contracts is recognised in pace with the
progress of the contract (percentage of completion method of accounting).
The degree of completion is calculated on the basis of the costs incurred at
the balance sheet date as a percentage of estimated total costs.
Receivables
Customer receivables and other accounts receivable are carried in the
accounts at face value net of provisions for expected losses. Provisions for
losses on customer receivables are recognised after a specific evaluation of
individual receivables and of receivables as a whole.
19

Notes - Ferd Holding Group
Financial current assets
Holdings of shares and other equity investments of strategic or industrial
character are classified as fixed assets. These investments are recognised in
the balance sheet at the cost of acquisition, and are written down to fair
value if a fall in value is assumed not to be of a temporary nature. Dividends
and other distributions of profit received are recognised to income as financial
income.
Investments of a financial nature are classified as current assets. Listed securities
with a good spread of ownership and good liquidity are included in the
trading portfolio and are valued at market value at the date of the balance
sheet. Other financial securities classified as current assets and managed as a
unified portfolio are adjusted for any fall in value if the total portfolio of such
financial securities has an estimated value lower than acquisition cost. Other
financial securities, including portfolio investments in Ferd Private Equity Fund,
are adjusted for any fall in value based on an individual assessment.
Interest bearing securities are recognised at actual value. Market value is calculated
theoretically, based on the yield curve for the respective market and
the issuer’s credit risk.
The net result of investment activities is included in operating revenue in the
profit and loss account.
Bank deposits
Bank deposits include, cash, bank deposits and other monetary instruments
with a maturity of less than three months at the date of purchase. The majority
of the subsidiaries are included in one of the group’s two cash pool
arrangements.
Liabilities
Liabilities that fall due for payment later than 12 months from the date of the
balance sheet and the first year’s instalment payment on such liabilities are
classified as long-term liabilities. Other liabilities are classified as current liabilities.
Liabilities are carried in the balance sheet at their nominal amount at
the time they are incurred. Unrealised gains or losses resulting from changes
in interest rates are not recognised to profit and loss.
Tax
Tax expenses are matched with operating income before tax. The tax expense
is made up of tax payable and change in deferred tax. Tax arising from equity
transactions is applied directly to equity.
20
Deferred tax in the balance sheet is calculated on the basis of temporary
differences between taxation and accounting values and tax losses carried
forward at the close of the accounting year. Tax reducing temporary differences
and tax losses carried forward are netted against tax increasing temporary
differences that reverse in the same period. Full provision is made for
deferred tax in accordance with the liability method without discounting to
current value, and deferred tax and deferred tax assets are presented as a
net figure in the balance sheet after offset. Deferred tax assets that cannot
be offset are capitalised if it is likely that the benefit can be utilised in
respect of future earnings.
No provision is normally made for deferred tax on retained surpluses in subsidiaries
since it is assumed that such surpluses will remain invested in these
companies.
Pension costs and pension assets/liabilities
Liability in respect of pension commitments is calculated as the discounted
current value of the future pension benefits for which entitlement has been
earned at the date of the balance sheet, based on a linear accrual of pension
rights over the employee’s period of service. Pension assets are valued at
market value at the date of the balance sheet, and are recognised net of
pension liabilities in respect of each pension scheme.
Net pension assets are shown as long-term receivables and net pension liabilities
are shown as long-term liabilities. The calculation of pension assets and
pension liabilities is based on economic and actuarial assumptions as set out
in Note 15.
The net pension cost for the year forms part of salary and personnel costs,
and is made up of the discounted current value of pension rights earned in
the year, the interest accruing on pension liabilities, the expected return on
pension assets and the effect of changes in estimates and the terms of pension
schemes and accrued employers’ social security contributions. The accumulated
effect of changes in estimates and deviations between estimated
and actual return as of 1 January 2005, and the change in accounting principle
has been recorded to equity.
Reclassification
Some previous years’ figures have been reclassified to be comparable to the
2005 accounts.

Notes - Ferd Holding Group
NOTE 2 ANALYSIS BY BUSINESS AREA
Business area Elopak Private Equity 1)
NOK 1 000 2005 2004 2003 2005 2004 2003
External operating revenue 4 775 555 4 731 225 4 344 632 109 454 225 173 294 435
Intra-group operating revenue 0 0 0 0 11 390 0
Depreciation and write-downs 351 121 491 369 304 447 45 4 066 28 535
Operating profit 251 448 26 894 242 398 46 945 148 429 -20 453
Total assets 3 565 722 3 653 044 3 886 245 603 248 495 102 397 212
Business area Invest Venture
NOK 1 000 2005 2004 2003 2005 2004 2003
External operating revenue 571 678 382 142 412 644 22 874 -3 837 3 987
Depreciation and write-downs 90 127 113 74 22 11
Operating profit 565 823 377 938 407 051 11 829 -13 395 -7 086
Total assets 2 317 943 1 698 862 1 322 386 260 405 181 036 256 655
Business area Real Estate Other 1),2)
NOK 1 000 2005 2004 2003 2005 2004 2003
External operating revenue 91 687 185 889 174 173 398 360 436 140 352 449
Intra-group operating revenue 9 203 7 320 6 483 -9 203 -18 709 -6 483
Depreciation and write-downs 17 341 8 889 8 856 13 034 11 868 7 755
Operating profit 55 616 104 458 58 656 -47 270 -3 319 50 413
Total assets 491 697 448 374 465 372 3 751 452 688 870 1 249 750
Business area Group
NOK 1 000 2005 2004 2003
External operating revenue 5 969 608 5 956 732 5 582 320
Depreciation and write-downs 381 704 516 341 349 717
Operating profit 884 391 641 005 730 979
Total assets 10 990 468 7 165 288 7 577 620
1) Swix is reclassified from Private Equity to Other in 2004. In 2003, the numbers for Private Equity and for Other are adjusted to include this change.
2) The dividend received and the gain from sale of the group's 17.2% interest in Skandinavisk Tobakskompagni A/S are classified as financial income.
Geographic analysis of sales
NOK 1 000 2005 2004 2003
Norway 1 257 335 1 322 183 1 027 111
Rest of Europe 3 616 294 3 749 148 3 578 742
America 604 539 527 002 599 035
Rest of the world 491 440 358 399 377 432
Total 5 969 608 5 956 732 5 582 320
Geographic analysis of sales is based on the customer's geographic location. Operating revenue includes the investment activities' net profit/loss on equities and
other investments, which is attributable entirely to Norway.
NOTE 3 BUSINESSES SOLD
2005 2004 2003
Gramamed/
Hageveien 4 Seifried and TiTech Scott Sea/Coremar/ Fastighets
NOK 1 000 AS Olma Nealko Visionsort Equipment Agrosol AS Aquemar AB Jämtland
Date of sale Dec Aug Aug Jun Jan Dec Nov Oct
Sales proceeds 63 663 26 400 14 600 202 210 97 104 735 16 563 13 958
Book value at date of sale 37 568 22 000 21 200 61 887 90 797 -8 480 38 007 11 320
Gain / loss on disposal 26 095 4 400 -6 600 140 323 6 307 9 215 -21 444 2 638
21

Notes - Ferd Holding Group
NOTE 4 CONSTRUCTION CONTRACTS
NOK 1 000 2005 2004 2003
Revenue recognised on construction contracts 0 92 083 111 313
Costs incurred in respect of revenue earned 0 - 64 562 - 90 186
Net profit recognised
on construction contracts 0 27 521 21 127
The degree of completion is the ratio between project costs incurred to date
and the estimated total cost of the project.
NOTE 5 FURTHER DETAILS ON AGGREGATE ITEMS
Profit and loss account
NOK 1 000 2005 2004 2003
Dividends received 206 443 215 022 211 007
Interest income 58 976 47 496 59 536
Other financial income 13 839 4 395 7 618
Total financial income 279 258 266 913 278 161
Interest expense - 81 733 - 106 882 - 141 389
Other financial expense - 10 638 - 26 727 - 54 946
Total financial expense - 92 371 - 133 609 - 196 335
Sale of shares in Skandinaviske Tobakskompagni A/S
Ferd's 17.2% interest in Skandinavisk Tobakskompagni A/S was sold in
October 2005.
NOK 1 000
Sales proceeds 3 330 614
Book value of shares 293 215
Gain from sale of shares 3 037 399
NOTE 6 SALARY AND PERSONNEL COSTS, EMPLOYEE NUMBERS
AND OTHER REMUNERATION
Salary and personnel costs
NOK 1 000 2005 2004 2003
Wages and salaries 758 402 831 885 781 149
Social security contributions 89 125 102 059 89 402
Pension costs (note 15) 10 490 52 217 44 511
Other benefits 95 246 86 416 81 442
Total salary and personnel costs 953 263 1 072 577 996 504
Average number of employees 2 253 2 219 2 380
Auditor
Deloitte Touche Tohmatsu is the auditor for the group. However, certain companies
in the group are audited by other accountancy firms. Fees paid for
audit and audit-related services for the group in 2005 totalled TNOK 10 308,
while fees for other attestation services amounted to TNOK 280, fees for tax
services were TNOK 3 322 and fees for other services were TNOK 1 348.
NOTE 7 INTANGIBLE ASSETS
Intangible assets
NOK 1 000
Patents, trademarks
and
software 1) Goodwill 2) Total
Acquisition cost at 01.01 210 325 559 236 769 561
Additions / disposals 25 560 200 25 760
Translation differences - 1 833 6 198 4 365
Acquisition cost at 31.12 234 051 565 633 799 686
Accumulated depreciation at 31.12 165 885 268 539 434 424
Accumulated write-down at 31.12 15 623 153 528 169 151
Book value at 31.12 52 543 143 566 196 111
Depreciation for the year 6 179 36 633 42 812
Write-down for the year 2 989 40 845 43 834
Economic life 3-10 yrs / 3-15 yrs
indefinite
Depreciation method Linear Linear
22
Research and development
The cost of research and development recognised to profit and loss in 2005
amounted to 96 975. The equivalent cost in 2004 was 119 145. The
expected future earnings arising from current research and development
projects are expected to be at least equivalent to the total costs involved.
1) Software
The group has reclassified Software from tangible assets to intangible
assets effective from 01.01.2005. Acquisition costs, accumulated depreciation
and accumulated write-downs related to these assets were 118 100,
109 700 and 200, respectively, as at 01.01.2005.
2) Goodwill
Goodwill in Auspac Ltd. (UK) is written down by 40 845 in 2005. The cash
generating unit assessed was Auspac Ltd. and the recoverable amount is
estimated as the value in use by discounting expected future cash flows
using a discount rate of 9.8%.
Goodwill arising from corporate acquisitions
Acquisition Book Depre-
Year of cost a value at ciation
NOK 1 000 acquisition 31.12.05 31.12.05 period
Elopak BV (Variopak) 2003 107 098 64 308 5 years
Auspac Ltd. 2001/2003 55 733 0 8 years
Elofin Oy 1999 46 170 26 151 15 years
Envases 1997/1998 65 985 30 777 15 years
Elite Sport AS 2004 16 200 9 720 5 years
Elopak Precision Machining Inc. 1999 54 341 9 789 10 years
Unifill SPA 1995 180 351 0 10 years
Other 39 755 2 821 3-15 years
Total 565 633 143 566
NOTE 8 TANGIBLE FIXED ASSETS
Fixtures and
Factories, fittings,
buildings, vehicles,
and other Plant and and other
NOK 1 000 real estate machinery equipment 1) Total
Acquisition cost at 01.01 774 105 2 524 982 210 429 3 509 516
Additions 4 588 255 381 15 978 275 947
Disposals - 52 031 - 222 608 - 33 341 - 307 980
Translation differences 5 196 - 23 896 - 441 - 19 141
Acquisition cost at 31.12 731 858 2 533 859 192 625 3 458 342
Accumulated depreciation at 31.12 344 775 1 489 846 144 588 1 979 209
Accumulated write-down at 31.12 10 084 33 359 71 43 514
Book value at 31.12 376 999 1 010 654 47 966 1 435 619
Depreciation for the year 21 083 228 750 19 729 269 562
Write-down for the year 10 042 15 439 11 25 492
Economic life 5-50 yrs 5-15 yrs 3-13 yrs
Depreciation method Linear Linear Linear
Annual lease payments
not capitalised 50 145 30 399 31 634 112 178
1) Software
The group has reclassified Software from tangible assets to intangible
assets effective 01.01.2005. Acquisition costs, accumulated depreciation
and accumulated write-downs related to these assets were 118 100,
109 700 and 200, respectively, as at 01.01.2005.
NOTE 9 AKSJER OG ANDELER I ANDRE SELSKAPER
NOK 1 000 Book value Ownership interest
Norse Crown Sdn. Bhd. 2 800 20.0%
Norsk Returkartong AS 50 50.0%
Others 548
Total 3 398

Notes - Ferd Holding Group
NOTE 10 FINANCIAL CURRENT ASSETS
Listed equity investments
Acquisition Ownership
NOK 1 000 cost Market value Book value interest
10 largest norwegian equity investments ranked by market value
Orkla ASA 134 716 231 985 231 985 0.4%
Lerøy Seafood Group ASA 96 000 219 000 219 000 7.6%
Nordic Semiconductor ASA 22 371 119 700 119 700 5.4%
Storebrand ASA 103 265 117 712 117 712 0.8%
Telenor ASA 41 888 82 813 82 813 0.0%
Kongsberg Gruppen ASA 62 157 80 600 80 600 2.2%
Andword Tybring-Gjedde ASA 28 018 75 899 75 899 5.0%
Norman ASA 42 069 59 325 59 325 9.9%
Otrum ASA 21 338 54 000 54 000 9.1%
Subsea 7 ASA 14 951 49 445 49 445 0.4%
Andre norske 294 921 333 309 333 309
Total investment in listed Norwegian equities 861 694 1 423 787 1 423 787
Foreign equity funds 545 778 741 626 741 626
Total foreign shares 545 778 741 626 741 626
Total investment in listed equities and equity funds 1 407 472 2 165 413 2 165 413
Non-listed investments
Ownership
NOK 1 000 Book value interest
Norwegian
K/S Technoinvest VII 21 350 1.3%
Forbrukerforsikring AS 20 000 2.9%
Affitech AS 17 776 21.9%
Vensafe ASA 16 100 11.2%
Colibria AS 15 200 17.9%
Nacre AS 15 000 28.4%
Omnia ASA 10 915 15.6%
Mohive AS 9 000 30.0%
Cinevation AS 7 000 21.0%
Energy Ventures II KS 5 756 21.7%
Genkey AS 5 000 36.7%
Energy Ventures II AS 3 818 26.0%
Energy Ventures AS 1 405 28.1%
Other Norwegian 15 435
Foreign
Ferd Private Equity Fund 476 613 63.9%
Amerscan Partners III Ltd Partnership 20 306 10.5%
Bone Support AB 12 758 17.8%
MariCal Inc 12 355 16.0%
Ferd Private Equity (GP-I) Ltd 122 40.0%
Ferd Private Equity (GP-II) Ltd 122 40.0%
Other foreign 5 452
Total non-listed investments 691 484
Bonds
NOK 1 000 Currency Market value
Category of issuer
Norwegian banks and other financial institutions NOK 15 344
Norwegian industrial enterprises NOK 20 202
Total bonds 35 546
23

Notes - Ferd Holding Group
NOTE 11 ASSOCIATED COMPANIES
Associated companies
Elopak Elopak
NOK 1 000 Obeikan Ltd. South Africa Other Total
Ownership and voting interest 49.0% 50.0% 49.0%
Acquisition cost 54 136 25 662 825 80 623
Share of profit at 01.01 26 962 4 107 - 2 078 28 991
Goodwill depreciation at 01.01 - 14 161 - 4 231 0 - 18 392
Translation differences / netting - 12 121 - 118 198 - 12 041
Presented as liabilities 0 0 1 055 1 055
Book value at 01.01 54 816 25 420 80 236
Additions during the year 556 556
Share of profit for the year 10 386 6 607 - 3 307 13 686
Goodwill depreciation / write-down - 1 534 - 2 040 - 3 574
Translation differences / netting 7 434 - 100 - 293 7 041
Presented as liabilities 3 044 3 044
Book value at 31.12 71 102 29 887 100 989
Shares in associated companies are recognised in the consolidated accounts in accordance with the equity method of accounting.
Jointly controlled activities recognised in accordance with the proportional consolidation method of accounting
The following jointly controlled companies are recognised on the proportional consolidation method an are included line by line in the group's consolidated
accounts. Key figures for the contribution of jointly controlled companies to the consolidated accounts are as follows:
Elopak Envases Elopak Elopak Plastic
NOK 1 000 Danmark AS S.A de C.V. Elopak AB Elopak S.A Systems Hellas SA Elocap Ltd. Total
Ownership and voting interest 50.0% 49.0% 50.0% 50.0% 50.0% 50.0%
Operating revenue 308 240 216 174 122 850 47 956 30 363 44 453 770 036
Operating profit 37 820 25 710 13 232 3 867 460 4 446 85 535
Total assets 222 119 169 975 74 879 42 443 51 601 59 989 621 006
-of which bank deposits 21 30 261 6 761 833 1 452 2 264 41 592
NOTE 12 INVENTORIES
NOK 1 000 2005 2004
Raw materials 368 876 317 705
Work in progress 91 216 87 736
Finished products 462 944 458 050
Total 923 036 863 491
NOTE 14 EQUITY
Share Share premium Other paid-in Hedging Retained Minority Total
NOK 1 000 capital account capital reserves earnings interests equity
Equity at 01.01 48 500 2 122 050 727 776 1 565 833 21 190 4 485 349
Dividends paid - 10 185 - 10 185
Dividend payable - 34 - 34
Translation differences 22 335 - 1 160 21 175
Equity effect of change in principle - 2 951 - 106 166 - 109 117
Profit for the year 3 913 165 112 533 4 025 698
Equity at 31.12 48 500 2 122 050 727 776 - 2 951 5 384 982 132 529 8 412 886
NOTE 15 PENSION COSTS AND LIABILITIES
Ferd and several of the subsidiaries operate pension schemes that provide the
majority of employees with the right to defined future pension benefits.
Future pension benefits are normally based on the number of years of service
and salary at retirement age. Certain companies operate pension schemes
whereby the employer makes a defined contribution which is managed separately,
or makes a defined contribution to a pension scheme which forms part
of a joint arrangement together with other employers.
In addition to pension liabilities catered for through pension insurance arrangements,
the group also has uninsured pension liabilities. The uninsured pension
liabilities include pensions payable on early retirement and pensions based on
amounts that exceed the limit set by tax legislation, and related to 328 individuals.
The uninsured pension leabilities also include estimated future liabilities
in respect of the norwegian AFP contractual early retirement scheme and com-
24
NOTE 13 SHARE CAPITAL AND SHAREHOLDER INFORMATION
The share capital is made up of 2 425 shares each of nominal value
NOK 20 000. All the shares are held by Johan H. Andresen jr.
mitments to employees of foreign subsidiaries. The assumptions set out
below are applied in calculation future pensions.
Elopak has defined contribution plans for some of their employees. The
group's obligation with respect to these plans is limited to make specified
contributions. The total expense recognised in profit and loss account was
NOK 30.2 million and NOK 33.2 million in 2005 and 2004 respectively.
Elopak has liabilities in respect of future health benefits for certain groups of
employees in the USA. The gain recognised in respect of the health scheme in
2005 was NOK 27.2 million. Of these NOK 30.8 million relates to gains on curtailment
of part of the health scheme in 2005. The total expense recognised in
2004 and 2003 was NOK 15.9 million and NOK 11.9 million respectively. The
liability at the end of 2005, 2004 and 2003 was NOK 41.5 million, NOK 24.3
and NOK 21.7 million respectively. The health scheme included 114 employees
in 2005.

Notes - Ferd Holding Group
NOTE 15 continued
Economic assumptions
2005 2004 2003
Expected return on pension plan assets 4.8-8.0% 4.8-8.0% 5.0-8.0%
Discount rate 3.25-5.5% 5.3-6.0% 5.5-6.0%
Expected increase in salaries and pensions 0.3-5.0% 3.0-5.0% 3.0-5.0%
Economic assumptions for the Norwegian companies
2005 2004 2003
Expected return on pension plan assets 5.8% 7.0% 7.0%
Discount rate 4.8% 6.0% 6.0%
Expected increase in salaries and pensions 2.0-3.5% 3.0-4.0% 3.0-4.0%
Pension liabilities
Over-funded Under-funded
pension pension
NOK 1 000 plans ordninger
Estimated pension liabilities 172 390 487 856
Pension assets at market value 176 008 289 047
Pension assets / -liabilities 3 618 - 198 809
Accrued employer's social security contributions etc. 27 - 6 424
Book value of pension assets / -liabilities 3 645 -205 233
NOTE 16 TAX
Tax charge for the year is made up of
NOK 1 000 2005 2004 2003
Tax payable
Norway 35 194 42 084 10 584
Abroad 75 124 60 839 75 459
Total tax payable 110 318 102 923 86 043
Deferred tax
Norway - 29 326 10 339 125 804
Abroad 12 099 4 620 -6 074
Total Deferred tax - 17 227 14 959 119 730
Tax charge for the year 93 091 117 882 205 773
Reconciliation of nominal tax rate to effective tax rate
NOK 1 000 2005 2004 2003
Pre-tax profit 4 118 789 781 931 791 964
Expected tax at the
nominal rate (28%) 1 153 261 218 941 221 750
Losses and other dedutions with
no net effect on tax 51 600 70 552 16 496
Dividend from Skandinavisk
Tobakskompagni A/S - 60 234 - 60 195 - 49 712
Goodwill amortisation 13 601 39 979 13 631
Income not subject to tax - 193 837 - 84 925 - 11 146
Income not subject to tax from
sale of shares in Skandinavisk
Tobakskompagni A/S - 850 472 0 0
Effect of changes in tax regulations - 4 266 - 61 810 0
Tax effects of other permanent
differences - 16 562 - 4 660 14 754
Tax charge 93 091 117 882 205 773
Effective tax rate 2.3% 15.1% 26.0%
Effective tax rate excluding the gain
on sale of shares in Skandinavisk
Tobakskompagni A/S 8.6% 15.1% 26.0%
Pension cost
NOK 1 000 2005 2004 2003
Discounted current value of pension
rights accrued in the year 29 941 27 283 43 869
Interest on pension liability 33 450 35 747 35 104
Expected return on pension assets - 26 338 - 27 240 - 24 951
Amortisation of actuarial and
other changes - 6 090 14 151 - 11 419
Curtailment - 21 944 0 0
Accrued employer's sosial security
contribution etc. 1 471 2 276 1 908
Net pension cost 10 490 52 217 44 511
Number of persons covered by
pension plans 1 303 1 071 1 132
Tax losses carried forward
As of 31.12.2005, Ferd has tax losses carried forward of 654 111,
principally in the United Kingdom, the United States, Austria and Norway.
Tax losses carried forward expire in future years as follows:
NOK 1 000
2006 0
2007 10 600
2008 64 000
2009 106 400
After 2009 327 911
No time limit 145 200
Total 654 111
Tax effect of temporary differences and losses carried forward
2005 2004
NOK 1 000 Benefit Liability Benefit Liability
Inventories 19 213 9 924 15 693 10 712
Shares and securities 609 20 036 0 0
Other differences 46 029 17 496 31 761 44 322
Fixed assets 40 905 117 841 32 001 119 267
Pensions 56 707 2 287 30 504 1 574
Losses carried forward 201 486 0 182 034 0
Dividend tax credit
carried forward 73 442 0 76 016 0
Write-down of deferred
tax assets - 196 147 0 - 153 500 0
Total 242 244 167 584 214 509 175 875
Deferred tax capitalised
in the balance sheet 206 604 131 944 174 196 135 562
25

Notes - Ferd Holding Group
NOTE 17 LONG-TERM LIABILITIES
Total liabilities to
NOK 1 000 financial institutions
2006 188 204
2007 19 602
2008 17 313
2009 10 541
2010 1 431
2011 577
Thereafter 774 145
Total 1 011 813
NOTE 18 OFF-BALANCE SHEET FINANCIAL INSTRUMENTS
Currency risk
The group operates on the general principle that all currency exposure related
to balance sheet items should be hedged. In the case of industrial equity
investments denominated in foreign currencies, this is achieved by striving to
match the currency composition of the borrowing portfolio with the currency
composition of investments. Financial investments in equities are not hedged.
Contractual currency receipts from operational activities are normally hedged in
full, and other forecast currency receipts are hedged to a certain extent. Expected
dividend receipts denominated in foreign currency are not hedged . Interest
income from the group's portfolio of interest-bearing securities is not hedged.
Interest payments in respect of the group's borrowings in foreign currency are to
a large extent hedged by currency receipts from the group's activities.
Forward foreign-exchange contracts outstanding
Currency NOK
Figures in 1 000 Purchased Sold Purchased Sold
EUR 22 991 - 39 099 183 582 - 312 202
NOK 42 323 - 9 239 42 323 - 9 239
DKK 0 - 25 900 0 -27 720
USD 9 687 - 9 822 65 566 - 66 479
GBP 300 - 1 350 3 496 - 15 730
JPY 3 209 907 - 147 120 184 528 - 8 457
SEK 120 681 - 92 953 102 640 - 79 059
CAD 0 - 4 700 0 - 27 344
CHF 2 076 - 9 583 10 658 - 49 207
Total 592 793 - 595 437
Currency options outstanding
Valuta Norske kroner
Figures in 1 000 Purchased Sold Purchased Sold
EUR 1 150 1 150 9 183 9 183
Sum 1 150 1 150 9 183 9 183
Interest-rate swaps outstanding
Remaining
Figures in 1 000 Currency Amount Receive Pay maturity
EUR 5 000 EURIBOR 6M Fixed 3.00% p.a. 1.2 years
EUR 10 000 EURIBOR 6M Fixed 3.34% p.a. 2.2 years
EUR 5 000 EURIBOR 6M Fixed 3.50% p.a. 3.2 years
EUR 5 000 EURIBOR 6M Fixed 3.27% p.a. 2.2 years
GBP 5 000 LIBOR 6M Fixed 5.50% p.a. 3.8 years
NOK 75 000 NIBOR 6M Fixed 3.74% p.a. 1.7 years
NOK 50 000 NIBOR 6M Fixed 3.67% p.a. 2.2 years
NOK 50 000 NIBOR 6M Fixed 4.04% p.a. 2.7 years
NOK 50 000 NIBOR 6M Fixed 4.17% p.a. 3.2 years
USD 10 000 LIBOR 6M Fixed 3.16% p.a. 2.2 years
NOTE 19 ASSETS PLEDGED AND GUARANTEES
Borrowings secured by assets pledged
NOK 1 000 2005 2004
Liabilities to financial institutions 24 177 26 327
Total 24 177 26 327
Book value of assets pledged as security
NOK 1 000 2005 2004
Buildings 17 950 19 303
Plant and equipment 38 426 36 403
Other 2 306 2 908
Total 58 682 58 614
26
Compositional borrowing by currency
Loan amount Loan amount
NOK 1 000 in currency in NOK
NOK 460 088 460 088
USD 10 363 70 144
EUR 21 516 171 805
DKK 27 972 29 938
JPY 535 421 30 780
CHF 5 366 27 553
GBP 15 097 175 910
Other 45 595 45 595
Total 1 011 813
The group uses instruments such as forward foreign exchange contracts, currency
swap agreements, currency exposure and options in the management of currency
exposure.
Interest rate risk
The group's long-term borrowing is subject to short-term interest fixing. This
applies to borrowing in both NOK and foreign currencies. Elopak applies interest
hedging to reduce the exposure on parts of the loan by swapping variable
interest to fixed interest.
The group's portfolio of interest-bearing securities had an average residual
maturity of 3.4 years at 31 December 2005. The manager of this portfolio is
authorised to vary the residual maturity between 0 and 6 years. The management
of this portfolio is based solely on market values.
Guarantee liabilities and off-balance sheet commitments
NOK 1 000 2005 2004
Uncalled partnership contributions 843 483 840 742
Commitment to contribute loan / capital 51 993 58 648
Unsecured guarantee liabilities 146 937 162 141
Total 1 042 413 1 061 531

Profit and loss account - Ferd Holding AS
Figures in NOK 1 000 Note 2005 2004 2003
OPERATING EXPENSES
Salary and personnel costs 3 2 975 1 360 1 321
Other operating expenses 1 666 2 722 1 697
Total operating expenses 4 641 4 082 3 018
FINANCIAL INCOME AND FINANCIAL EXPENSES
Financial income 2 11 483 178 979 1 941 669
Financial expenses 2 - 946 -3 377 - 2 173
Net financial items 10 537 175 602 1 939 496
Profit before tax and minority interests 5 896 171 520 1 936 478
Tax 7 1 836 34 890 2 346
PROFIT FOR THE YEAR 4 060 136 630 1 934 132
Allocations
Dividends proposed 0 -24 250 0
Appropriation to other equity - 4 060 -112 380 - 1 934 132
Total allocations - 4 060 -136 630 - 1 934 132
THROUGH TREACHEROUS INSHORE WATERS.
Navigation lights are smaller lights that guide
shipping through inshore waters – marking channels
between islands and through narrow inlets. There
are different kinds of navigation lights: white lights
mark a channel, red and green lights guide navigation
through dangers. Makkaur light is an unusual
example of a navigation light, located at the end
of Båtsfjord in Finnmark.
27

Balanse sheet at 31 December - Ferd Holding AS
Figures in NOK 1 000 Note 2005 2004
ASSETS
Fixed assets
Interests in subsidiary companies 4 2 649 310 2 644 763
Investment in shares and other equity participations 250 250
Total fixed assets 2 649 560 2 645 013
Current assets
Intra-group receivables 0 170 805
Other receivables 15 0
Bank deposits 599 659 525 110
Total current assets 599 674 695 915
TOTAL ASSETS 3 249 234 3 340 928
EQUITY AND LIABILITIES
Equity
Share capital 5,6 48 500 48 500
Share premium reserve 6 2 122 050 2 122 050
Other paid-in capital 6 727 776 727 776
Other equity 6 324 555 330 680
Total equity 3 222 881 3 229 006
Current liabilities
Tax payable 7 0 483
Employer's contributions, duties etc. payable 187 184
Dividends 0 24 250
Intra-group liabilities 6 497 296
Other current liabilities 19 669 86 709
Total current liabilities 26 353 111 922
TOTAL EQUITY AND LIABILITIES 3 249 234 3 340 928
28

Cash flow analysis - Ferd Holding AS
Figures in NOK 1 000 2005 2004 2003
Cash flow from operational activities
Profit before tax 5 895 171 520 1 936 478
Tax paid - 550 0 - 684
Income from investments in subsidiaries 0 1 758 219 - 1 789 196
Net change in other current assets and current liabilities - 67 167 38 115 - 26 102
Net cash from operational activities - 61 822 1 967 854 120 496
Cash flow from investment activities
Investments in subsidiary companies 0 - 1 720 584 0
Received dividend from subsidiary companies 170 805 0 0
Purchased securities 0 0 - 250
Net cash flow from investment activities 170 805 - 1 720 584 - 250
Cash flow from financing activities
Dividend paid - 34 435 - 2 182 500 - 20 855
Group contribution paid 0 - 8 377 0
Paid-in equity 0 2 100 050 0
Net cash flow from financing activities - 34 435 - 90 827 - 20 855
Net increase (decrease) in bank deposits 74 548 156 443 99 391
Bank deposits at 01.01 525 110 368 668 269 277
Bank deposits at 31.12 599 659 525 110 368 668
Notes - Ferd Holding AS
NOTE 1 ACCOUNTING PRINCIPLES
The accounting principles of Ferd Holding AS are identical to those of the Ferd Holding group as described in note 1 in the consolidated
accounts. In cases where the accounting principles in the parent company are materially different from the group, this is shown separately.
In the parent company accounts, investments in subsidiaries are recognised in accordance with the cost method of accounting.
NOTE 2 FURTHER DETAILS ON AGGREGATE ITEMS
Profit and loss account
NOK 1 000 2005 2004 2003
Income from subsidiary companies 0 170 805 1 929 024
Interest received from group companies 0 8 162 0
Other interest income 11 483 12 12 645
Total financial income 11 483 178 979 1 941 669
Interest paid to group companies - 8 - 4 0
Other interest expense - 938 - 3 373 - 2 173
Total financial expense - 946 - 3 377 - 2 173
29

Notes - Ferd Holding AS
NOTE 3 SALARY AND PERSONNEL COSTS, EMPLOYEE NUMBERS
AND OTHER REMUNERATIONS
Salary and personnel costs
NOK 1 000 2005 2004 2003
Salaries 2 635 1 120 1 100
Social security contributions 269 220 220
Other benefits 71 20 1
Total salary and personnel costs 2 975 1 360 1 321
Average number of employees 1 1 1
Remuneration of CEO
NOK 1 000 2005
Salary 1 141
Other benefits 152
Total remuneration of CEO 1 293
The CEO is not part of the company's retirement benefit arrangements. He does
not have a right to a bonus or any other form of profit sharing nor will he
receive any form of compensation if his employment is changed or terminated.
Remuneration to the Board of Directors of Ferd Holding AS in 2005 amounted
to TNOK 992.
Auditor
Fees paid to Deloitte Statsautoriserte Revisorer AS for audit amounted to
TNOK 22 for 2005. Fees or other services amounted to TNOK 144.
NOTE 5 SHARE CAPITAL AND SHAREHOLDER INFORMATION
NOTE 7 TAX
Tax charge for the year is made up of
NOK 1 000 2005 2004 2003
Tax payable 1 836 483 2 346
Change in deferred tax 0 34 407 0
Tax charge for the year 1 836 34 890 2 346
Reconciliation of nominal tax rate to effective tax rate
NOK 1 000 2005 2004 2003
Pre-tax profit 5 896 171 520 1 936 478
Expected tax at the nominal rate (28%) 1 651 48 026 542 214
Dividend receipts from
Norwegian companies 0 - 47 825 - 540 127
Effect of changes in tax regulations 0 34 407 0
Tax effect of other permanent
differences 118 282 259
Remaining tax expense 67 0 0
Tax charge 1 836 34 890 2 346
Effective tax rate 31.1% 20.3% 0.1%
30
NOTE 4 SUBSIDIARIES
Subsidiaries owned by Ferd Holding AS and Ferd AS
Registered Ownership and
office voting interest
Subsidiaries of Ferd Holding AS
Ferd AH Holding AS Bærum 100.0%
Tiedemanns Joh. H. Andresen DA Bærum 100.0%
Ferd AS Bærum 100.0%
Subsidiaries of Ferd AS
Collett Pharma Invest AS Bærum 100.0%
Det Oversøiske Compagnie AS Bærum 100.0%
Elopak AS Røyken 100.0%
Ferd Eiendom AS Bærum 100.0%
Grupo TiMar SGPS Lda. Portugal. Fuseta 100.0%
Norse Crown Company Ltd. AS Bærum 100.0%
Sanodor X-it AS Bærum 100.0%
Swix Sport AS Lillehammer 100.0%
Swix Sport Japan KK Japan. Tokyo 70.0%
The share capital is made up of 2 425 shares, each of nominal value NOK 20 000. All the shares are held by Johan H. Andresen, Jr.
NOTE 6 EQUITY
Equity
NOK 1 000 Share capital Share premium Other paid-in Other equity Total equity
reserve capital
Equity 01.01.05 48 500 2 122 050 727 776 330 680 3 229 006
Extraordinary dividend paid - 10 185 - 10 185
Profit for the year 4 060 4 060
Equity at 31.12.05 48 500 2 122 050 727 776 324 555 3 222 881

Auditor’s report
31

Strategy
TARGETS AND OBJECTIVES
The overall objective for Ferd’s activities
will continue to be “to create
enduring value and leave clear footprints”.
The group allocates its risk capital
between asset classes and organises
its activities to provide the best possible
investment return relative to the
risk profile determined by its owner.
Ferd currently expects to generate an
annual return on value-adjusted equity
of 10%. Ferd is committed to promoting
its reputation as a leading
Norwegian investment operation
through its sound investment return,
the competence shown by its organisation
and its focus on active and
involved ownership.
CAPITAL BASE
Ferd defines its capital base as the total
of its value-adjusted equity capital and
committed borrowing facilities.
At the close of 2005, the market value of
the group’s equity was estimated at NOK
10.9 billion, an increase of 28% from
2004. Elopak, Ferd Invest and the consideration
received for the sale of shares
in Skandinavisk Tobakskompagni (ST)
represent the major components of
value-adjusted equity. In anticipation
of decisions on the long-term application
of surplus capital, it is temporarily
invested in highly liquid interest-bearing
securities with limited interest rate
and credit risk.
The group has a committed borrowing
facility of NOK 1 billion on which no
drawings were made in 2005. The
group’s interest-bearing liabilities total
NOK 1 067 million, of which borrowings
by Elopak that are not guaranteed
by Ferd account for NOK 1 052 million.
The group’s equity ratio at the close of
2005 was 81% on a value-adjusted basis
and 77% on book values, and it can
therefore be safely concluded that the
group’s financial risk capacity is underutilised.
The group intends to consider using
debt financing for its growth opportunities
to a greater extent in the future.
After a period of particular focus on
building up the group’s competence
and structuring its activities, Ferd now
has significantly stronger investment
capacity. This, together with strong
growth in value-adjusted equity, has
served to increase the owner’s willingness
and ability to increase the group’s
indebtedness. However, the group
remains committed to maintaining an
investment grade credit standing.
32
In total, it can be concluded that the
group’s capital base is sufficient to permit
significant expansion in its activities
over coming years.
ORGANISATIONAL CAPACITY
The responsibility for managing investments
on such a scale imposes major
responsibilities on Ferd’s organisation.
The group has strengthened and
improved the structure first established
in 2001. The current business areas
have the capacity to manage more capital
than they have at present. However,
the scale of investment activity that the
group now needs is so great that there
is a need for additional capacity to
manage these assets, either through the
group’s internal organisation or by
using external investment managers.
CAPITAL ALLOCATION
Allocating risk capital is one of the
group’s most important tasks, since relative
profitability and risk exposure are
largely determined by its choice of asset
classes. In addition, the process of capital
allocation creates greater awareness
of diversification, how the group uses
its capital base and its risk capacity.
Ferd reviews its capital allocation every
autumn in advance of the annual
budgeting round so that each business
area knows how much capital it will be
allocated for the following year. The
management team considers representations
from the business areas before
producing proposals for the next year’s
capital allocation. These proposals are
discussed and debated by the executive
management team before submission
to Ferd’s Board.
The group’s investment exposure has
so far been divided into three asset
classes:
• Equity
• Real estate
• Fixed-income
Equity comprises Elopak, Ferd Private
Equity, Ferd Venture, Ferd Invest and
Swix.
Ferd’s 2005-2007 strategic plan assumes
a strategic allocation of the group’s
capital base of 85% to equities and 15%
to real estate. The actual exposure to the
equity class was close to this target
throughout 2005. Exposure to real estate
was lower than the 15% target in 2005,
and fixed-income made up the balance.
The sale of the shareholding in ST and
the new industrial and financial invest-
ments planned create a need for a fresh
review of the investment allocation
structure. The decision to permit a significantly
higher degree of debt financing
for the group’s activities will
increase its overall risk exposure, and
this places new demands on questions
of diversification and liquidity. The
processes involved in this are currently
underway, but no final decisions have
yet been taken.
REQUIRED RETURN ON EQUITY
Ferd and its business areas need to
have a stable long-term objective for
return on equity. The group’s required
return on equity, expressed in nominal
terms before tax, is held constant until
the operational and/or financial risk
scenario changes, or until there is a
change in the normalised level of interest
rates on which the required return
is based. The group currently operates
with an overall required return on
value-adjusted equity of 10% per
annum. The following chart shows the
anticipated balance of risk and reward
on a long-term perspective:
New focus areas will affect the composition
of the group and therefore the
overall required return on capital.
Making greater use of debt financing
will tend to increase the required
return on Ferd’s equity.
RISK MANAGEMENT
Ferd’s risk exposure arises from operational
risk, financial risk and liquidity
risk. Operational risk relates to uncertainty
over the future performance of
the group’s various investments.
Financial risk refers to the degree of
debt financing. Liquidity risk refers to
the cash assets the group can make
available at short notice at any time.
The most important risk factor for Ferd
is operational risk. Ferd’s investment
activities are very dependent on conditions
in the financial markets, and
earnings over recent years demonstrate
this very clearly. In terms of accounting
figures, Ferd’s industrial activities are
not affected by the financial markets to
the same extent, but their results have
also fluctuated quite markedly. Moreover,
it seems reasonable to assume
that if market values were applied to
the industrial businesses they would
show a comparable sensitivity to conditions
in the financial markets, and
that accounting profits understate the
volatility of the underlying valueadjusted
results. Prior to the sale of the
group’s investment in ST, this invest-

Ferd’s portfolio structure from an anticipated risk- and reward perspective
Expected long-term return
16 %
14 %
12 %
10 %
8 %
6 %
4 %
2 %
0 %
Efficient portfolio frontier
Fixed-income
Real Estate
Ferd
ment provided stable income and cash
flow. In overall terms, the group’s high
equity exposure means that quite sizeable
fluctuations in value-adjusted
equity must be expected at times, and
this represents a relatively high level of
operational risk.
Since Ferd represents all its owner’s
business activities, it is natural for the
group to focus on diversification,
which is a measure of the extent to
which the values of the group’s different
investments are correlated over
time. Ferd’s overall portfolio is heavily
weighted towards equity investments,
principally through Elopak, Private
Equity, Invest, and Venture. However,
these investments vary quite considerably
in terms of company type, size,
industry, geographic exposure and
stage of life cycle, making this a welldiversified
equity portfolio. Nonetheless,
the overall outlook for the value of
the portfolio is relatively highly correlated
with the performance of
Norwegian and international stock
markets. The asset classes of real estate
and fixed-income represent diversifying
factors, but the current relatively
small allocations to these classes limit
the scale of this effect. At the start of
2006, the group established a portfolio
comprising investments in 20 hedge
funds. This portfolio is not only
expected to generate an attractive riskadjusted
return, but is also constructed
to have little or no correlation with specific
equity indices in order to provide
diversification relative to the group’s
overall portfolio. A correct focus on
diversification of a sufficient scale will
Invest
Swix
Expected standard deviation
Private Equity
Elopak
Skandinavisk Tobakskompagni
Venture
5 % 10 % 15 % 20 % 25 % 30 % 35 % 40 % 45 % 50 %
serve to reduce operational risk at the
group level.
Until now, very little of the group’s overall
activities have been financed by debt.
The group is now considering a significantly
higher degree of debt financing,
and this will increase its risk exposure.
Periods of weak cash flow and/or high
interest rates may make it necessary to
realise investments at undesirable times
in order to maintain debt service payments.
This makes it essential to carefully
consider the risks of fluctuations in
the value of investments, the stability of
the cash flows they generate and the
scope for realising investments at short
notice before making the decisions on a
financial strategy involving greater debt
financing.
The group’s tobacco investments have
produced a high and stable cash flow
over many years, and this has ensured a
low level of liquidity risk. This cash flow,
combined with limited borrowings, has
made it less important to focus on the
liquidity of the group’s other investments
and the cash flows they generate. However
the sale of the ST shares, the new
industrial investment strategy under
consideration and the possibility of a
higher degree of debt financing will
change the situation. The group’s liquidity
reserves can include bank deposits
and regular cash flows from sources such
as share dividends and real estate investments.
In addition, liquidity can include
liquid investments in commercial paper
and bonds as well as readily tradable
listed shares, and last but not least the
group’s undrawn committed credit lines.
THE GROUP’S RESOURCES
Ferd’s Mission, Vision and Values
express the group’s vision and indicate
how it will be achieved. The most
important tools for this will be the operational
values of capital, expertise and
networking, and these values can therefore
be seen as an expression of Ferd’s
comparative advantage.
The capital base provides the basis for
the group’s activities, and is therefore a
very important resource for Ferd.
Important resources for Ferd:
• Capital base
• Financial expertise
• Business development expertise
• Reputation
• Networking
• Corporate culture
Since Ferd’s core activities are based on
its investment activities and industrial
ownership, access to financial and business
development expertise is very
important for the group’s profitability.
While these may not be particularly
unusual areas of expertise, the group’s
comparative advantage depends on
making best use of the range of expertise
in the group. New investments may
further strengthen this range of expertise.
Ensuring that the group has excellent
expertise and makes best use of its
skills is an essential, but not necessarily
sufficient, condition for value creation.
The group must in addition ensure that
it allocates its expertise well so that it is
employed where it will have best effect.
In an organisation where expertise is
distributed across several business
areas, it is very important that the
organisational structure does not hinder
the best use of expertise. Teamwork,
which is a core value for Ferd, helps to
promote best allocation of expertise,
but incentive systems that principally
reflect the results of an individual’s own
business area may weaken the commitment
to best allocation. Ferd therefore
considers it very important to organise
internal forums that bring together the
business areas to exchange information
and promote better internal communication.
The CEO and the executive
management team play a central role in
facilitating and driving collaboration
within the group across organisational
dividing lines.
Reputation and networking are important
resources for Ferd’s activities.
33

Access to an external network is very
important for the profitability of the
group’s investment activities, both in
terms of access to new investment
opportunities and for professional
assistance with investment decisions
to supplement internal expertise.
Ferd has developed an electronic network
database to make best use of its
contact network.
The corporate culture is the resource
that pulls together all the resources discussed
above to ensure that they coalesce
as a powerful tool to help realise
Ferd’s corporate vision.
NEW INDUSTRIAL INVESTMENT INITIATIVE
At the start of 2006, Ferd is considering
a new industrial investment initiative
on a significant scale. This initiative
aims to make a major contribution to
the group’s vision to create enduring
value and leave clear footprints.
The current corporate ownership structure
in Norway creates good opportunities
for a player willing to focus on
professional, involved and long-term
ownership in both listed and private
companies. The proportion of shareholders
in Norway prepared to take an
active involvement is thought to be relatively
low, and the number of players
that approach investment as a strategic
commitment with a long-term time
horizon is even more limited. In addition,
we believe that many Norwegian
companies actively welcome this kind
of ownership involvement.
By active ownership, Ferd means that it
contributes more than capital to the
companies in which it invests. Our aim
34
is to understand a company and the
industry in which it operates so well
that we can make a valuable contribution
to setting the strategic agenda.
Our contribution in this respect is
very likely to involve our leading-edge
expertise in mergers, acquisitions, sales
and disposals. In terms of operational
issues, we aim to have the skills to
identify areas that need improvement
and evaluate the quality of programs
for operational improvement, while
entrusting the company’s management
with the responsibility for finding the
right solutions and implementing the
processes agreed.
We expect to take an ownership interest
in a few companies of sufficient size
to make it possible to exercise the type
of active ownership described above.
We principally exercise our ownership
role through the board of directors, and
an important criteria for success will be
our ability to create a board with the
optimal characteristics for the company
in question. Where these requirements
can be achieved, we then expect
the team at Ferd responsible for monitoring
investment to maintain close
and regular contact with the companies
in our portfolio. This monitoring
is of a more operational character,
and it is important that our contacts
are in accordance with the principles
for good corporate governance. We
consider incentive arrangements that
create a common financial interest
between the company’s owner and its
executive management to be a central
tool for achieving the targets set.
The investment initiative described
here has many similarities with the
activities of Ferd Private Equity, but dif-
fers in terms of central factors such as
the scale of individual investments and
the time horizon for ownership. The
new initiative will seek investment
opportunities on a scale larger than
that envisaged by Ferd Private Equity’s
overall strategy. Moreover, while a private
equity fund typically has a three to
five-year perspective for its investments
and places particular importance
on there being potential purchasers
for the company after this
period, these concerns will not be significant
for the new initiative described
here. Ferd’s starting point is a longterm
ownership involvement with
focus on strong value creation over
time, but does not exclude the possibility
that other players may be better
placed to realise the company’s potential
at a later stage in its development.
Ferd has the qualities and resources
needed to make such an initiative a
success. The group has a sound capital
base, and the owner is willing to
allocate sufficient capital. Ferd is
recognised as a group with a breadth
of expertise in finance and business
development that represents an important
competitive advantage. A new
industrial investment initiative will
make demands on this expertise, but
will also serve to strengthen it further.
Given the strengths of Ferd’s existing
organisational values, this initiative
will be based on balanced and stable
parameters. The group’s corporate
culture and its history of industrial
investment, together with the financial
strength to act counter-cyclically, are
also considered to be important criteria
for the success of this initiative.
FAR NORTH. Slettnes is the world's most
northerly mainland lighthouse, 3.5 km north
of the fishing village Gamvik in Finnmark.
The first lighthouse keeper moved in here
in 1905, and Slettnes lighthouse was then
manned for 100 years until last year,
making it one of the last manned lighthouses
anywhere in Norway.

Langøytangen lighthouse.
PRISMS AND LENSES. The French physicist
Augustin Fresnel (1788-1827) invented
a revolutionary lens system for lighthouses
that is still in use. The Fresnel system uses
prisms and lenses to collect and concentrate
the light beam. There are two main
types, one forms a belt around the light
source so that the beam shines out horizontally
in all directions, if necessary using
red or green glass to mark sectors with
shoals. The second type is a rotating lens
and prism system that sends out a concentrated
beam of light, which to the distant
observer appears as a flashing light.
Fresnel’s lenses are divided into six sizes
based on the focal length and strength of
the light source. The first category is the
largest, with a focal length of 92 cm while
the sixth has the smallest focal length at
15 cm. The Fresnel system was first used
at Corduan lighthouse outside Bordeaux in
1823, and was then first used in Norway
at Oksøy lighthouse outside Kristiansand
in 1832.
35

Strong involvement with Young Enterprise Norway
Ferd was again heavily involved with
Young Enterprise Norway in 2005 following
the group's agreement in November
2004 to become one of the organisation's
major nationwide sponsors. This
involves both a significant annual financial
contribution and personal involvement
by the members of the Ferd management
team from its head office,
business areas and group companies.
EXTENSIVE COLLABORATION IN 2005
The Ferd Prize was awarded for the first
time at the Norwegian national competition
for student companies in April
2005. The prize is awarded to the student
company showing the greatest
international potential, and was one of
the most sought-after awards among
the 21 student companies in the competition,
which took place at the
Horten secondary school in Vestfold.
The winning company had developed
an impressive business concept based
on free SMS messages and chat using
Bluetooth and GPRS technology. The
prize was handed over by Johan H.
Andresen, Jr., the owner and CEO of
Ferd, who also chaired a seminar in
connection with the competition.
The next Ferd Prize was awarded as
early as July 2005, but this was a special
arrangement as part of the European
competition for student companies.
36
The European competition was held in
Oslo with Ferd as its main sponsor, and
the winning student companies from
24 countries participated. The winning
entry was an Italian student company
with a project for a pillow with a
remote-controlled alarm clock function
intended for the hard of hearing or
anyone looking for a particularly pleasant
way to be woken. The criteria for
the annual Ferd Prize were also used to
select the winner at the European competition.
Ferd's owner and CEO was
again on hand to present the prize, and
was part of the jury that judged the
competition.
As part of its sponsorship of Young
Enterprise Norway, a number of Ferd
employees from both head office and
its business areas made an active contribution
in 2005. This mainly involved
acting as jury members for competitions,
as well as practical support for
both national and local competitions.
In addition, Ferd's CEO is a member of
the Board of Junior Achievement
– Young Enterprise Europe, the
European umbrella organisation for
Young Enterprise.
IN LINE WITH FERD'S VISION
Young Enterprise aims to integrate
entrepreneurship into the educational
system through a comprehensive program
for student companies. This gives
pupils and students first-hand experience
of business innovation and setting
up companies with experience, support
and guidance.
Ferd's commitment to this organisation
springs from the group's vision to create
enduring value and leave clear footprints
– as well as a recognition that the
future will depend on the innovation
and entrepreneurship of future generations.
It is a well-known fact that innovative
small companies make a major contribution
to economic growth, but independent
annual surveys show that
Norway does not have a good record
for business start-ups. It seems likely
that the reasons for Norway's poor
record can be found in the operating
environment for small businesses, a
lack of political commitment to business
and less emphasis on businessoriented
courses in Norway than in
comparable countries. However, the
underlying problem is the underdeveloped
entrepreneurial culture and lack
of understanding of business that we
see in Norway – an attitude that people
first learn from home and school,
friends and the media.
This makes it important that schools,
higher education colleges and universities
give the business leaders of the
future the opportunity to develop
expertise and attitudes that will support
innovation, and that the politicians
and bureaucrats of the future

The Ferd Prize was awarded to the studentcompany BluMe. Proud students and members of the jury from Ferd.
gain experience and understanding of
how value is created in our society.
These views enjoy broad cross-party
support from Norwegian politicians. In
its plans for innovation in Norway, the
previous government set out its vision
for ”the Norwegian education system
to be among the best in the world for
training in entrepreneurship”. The current
government has recommended
the same approach.
AN IMPORTANT CONTRIBUTION
There is a long way to go before the
government's vision is realised, but
Young Enterprise is already making an
important contribution. Ferd is therefore
committed to supporting the
organisation's work both financially
and practically. In addition, Ferd's
involvement gives it the chance to
make contact with young people who
may well represent valuable business
contacts in the future. This is demonstrated
by survey results that show that
a young person who has participated in
a student company is more than twice
as likely to set up his or her own business
than the population in general,
and four times more likely than people
over 29 years of age.
Ferd's sponsorship agreement with
Young Enterprise runs until 2008, but
both Young Enterprise and Ferd intend
to continue their partnership beyond
the contract date.
Young Enterprise Norway
• Aims to promote creativity, teamwork
and responsibility among
pupils and students and to encourage
them to establish companies
• Works to develop greater understanding
of the importance of
innovation and value creation in
business
• Is supported by major Norwegian
companies and organisations.
Its board is chaired by Vibeke
Hammer Madsen, Managing
Director of the Federation of
Norwegian Commercial and Service
Enterprises
• First established in Norway 1997.
Since then, more than 35 000
secondary school pupils have
participated in Young Enterprise
programs
• Is the Norwegian branch of Junior
Achievement – Young Enterprise
Europe, which has members in
41 European countries
37

DANGEROUS CHANNEL. Just 1 km from the Slettnes lighthouse the Korsbøan reef
extends one hundred meters out to sea with just two or three metres depth, and west
of the light the waves wash over the Tørrbøan shoals - dangerous waters before the
lighthouse was built. And as if this was not enough: In 1653 Baarne Olsdatter from
Syltevik was accused of leading a coven of witches to cause the shipwreck of two
Dutch vessels by casting spells. She was burnt at the stake on 17 March that year.
38

WHICH LIGHTHOUSE? This is how Lista lighthouse looked from 1853-1873 – with not
one but three light towers. This was needed to make sure that ships could differentiate
Lista from other lighthouses in the area. It was not until around 1870, when flashing
mechanisms were introduced, that lighthouses could be distinguished by using
different flashing frequencies. This put an end to the need for double and triple
towers, and only the tower on the right of the drawing now remains at Lista. The
flashing mechanism uses moving steel discs that either rotate on their own axes (von
Otter system), or around the light source itself (L. F. Lindberg rotating system). The
flashing pattern is divided into two main categories: Occulting light where the beam
is interrupted at regular intervals by a brief period of darkness and blinking light
where the periods of darkness are longer than the illuminated periods.
39

Mission Statement:
Elopak
Bjørn Flatgård
Elopak’s mission is to satisfy market
needs for attractive high quality
carton based packaging systems
for non-carbonated fresh and
long-life liquid food products. This
will be achieved by continuous
focus on consumer and customer
satisfaction, innovation, operational
efficiency and human capital
development
Carton sales 2000 – 2005 Billion
12
10
8
6
4
2
0
00 01 02 03 04 05
NOK million
Key figures 2005 2004 2003 2002
Operating revenue 4 775.6 4 731.2 4 344.6 3 843.4
Operating profit 251.4 26.9 242.4 134.9
Fixed assets 1 741.4 1 799.5 2 065.5 1 764.7
Current assets 1 824.3 1 853.5 1 820.7 1 611.9
Total assets 3 565.7 3 653.0 3 886.2 3 376.6
Equity 1 240.9 1 204.2 1 391.8 1 234.5
Long-term liabilities 1 159.5 1 281.6 1 476.5 1 329.0
Current liabilities 1 165.3 1 167.2 1 017.9 813.1
Total equity
and liabilities 3 565.7 3 653.0 3 886.2 3 376.6
40
■ Continuous improvement of operational efficiency
■ Innovative carton shapes create new business
■ Increased raw material cost
■ Carton manufacturing plant in Serbia acquired
■ Revised strategy for plastic packaging
2005 was concluded as yet another
year of consistent improvement. While
markets and the business environment
continued to be turbulent and
challenging, Elopak launched innovations,
gained carton volumes and
achieved improved efficiency.
The most significant challenge to
overcome in 2005 was a steep increase
in raw material pricing, impacting raw
board as well as polyethylene at levels
previously unheard of in the industry.
Elopak countered this through an
even stronger focus on internal efficiencies
and improvement projects.
Added value for the customers was
pursued through product and system
innovation. In consequence, the carton
business has delivered a good
underlying result, further improved
from previous years.
The improvements are created partly
through strong focus on core competences
and innovations within
Elopak’s portfolio of gable top carton
systems. The strategy for Elopak’s
plastic business was revised; although
plastics results improved from the
previous years, Elopak will now predominantly
supply bottles and plastic
filling systems through partners with
established market leadership.
Restructuring within the plastic business
has caused costs in 2005, related
to loss on sale of activities, and revaluing
of assets.
THE CARTON BUSINESS
2005 was a satisfactory year with positive
development in all areas of the
Carton Business, resulting in steady
growth of volumes and business
results. Continuous improvement in
carton blanks manufacturing was
among others achieved by ramping up
volumes from the new UV flexo converter
lines installed in 2004. Much
attention was also paid to ensuring
efficiency and performance of aseptic
and ultra clean systems. Elopak
adjusted its organisation in order to
handle demanding installation projects
and further strengthen its efforts
within premium aseptic systems.
All Elopak’s market regions achieved
volume development well ahead of
underlying market growth. Installed
filling systems were generally performing
well, and recent innovations
met with positive response in the
market.
But 2005 was also a year with major
challenges. Raw material cost
increased steeply. Cost increase was
experienced for container board as
well as for polyethylene (PE). In total,
the increases put an unprecedented
cost strain on carton manufacturers,
which had to be countered through
aggressive pursuit of improvement
projects.
Furthermore, an eight-week
strike/lockout in the Finnish paper
industry put serious strain on the supply
chain. Established contingency
plans enabled Elopak to supply cartons
throughout the conflict without
serious disruptions for the customers.
During the fall, findings of the inkcuring
agent ITX in carton-packed liquids
caused attention and concern in
the EU. After a limited analysis, the
European Food Safety Authority
(EFSA) stated that ITX did not give
cause for health concerns. Nevertheless,
Elopak immediately chose to
implement ITX-free carton production.
MANUFACTURING
Elopak’s carton converting strategy
was further pursued, meeting the
increased challenges from customer
and consumer demands. Roll-out of
UV-flexo technology, optimisation of
container board structure and

Elopak’s Human Resource Network comprises all HR-functions of the company.
improving the already state-of-the-art
coating process resulted in strong efficiency
gains in blanks production.
The UV-flexo converting lines give
Elopak a cost efficient printing
process combined with high quality
print image. Four UV-lines are now in
production and more are planned for
in 2006. An optimised coating process
is important in the supply chain and
the coating lines in The Netherlands
and Ukraine showed continuous
improvements in capacity and quality.
The production structure for carton
blanks was further consolidated and
standardised. This was achieved by
closing down inefficient production
lines and utilising the increased
capacity on new UV flexo converters.
A major efficiency project was initiated
in Europe. The project aimed to pursue
improvements in the supply chain
through defining service levels based
on customer requirements. Ultimately,
the project targets a solid increase in
overall equipment effectiveness.
In order to meet changing legislation
and terms of business, the start-up of
local carton blanks production in
China was delayed by one year. The
design of the manufacturing plant has
now been finalised and construction
is expected to begin in first quarter
2006.
During 2005 Elopak acquired a carton
manufacturing plant in Serbia. Elopak
has had an ongoing partnership with
this company for several years, supplying
coated board and manufacturing
technology. Elopak chose to take
full ownership in 2005, in order to
fully exploit the potential for manufacturing
and marketing synergies in
Europe.
Elopak’s Canadian plant faced challenges
during the year. The board
costs increased substantially more
than planned, while simultaneously
the market price level was under pressure.
However, a newly installed UV
flexo converter has already been filled
up and another similar press has been
ordered for 2006 delivery. A new plan
has been instituted to improve margins
and operational efficiencies.
■ The Diamond Pure-Pak Curve Concept
combines innovative design and carton
technology. It has an extra eye catching
curved panel for featuring selling point
messages and an extended top panel,
which gives extra space for a wider screw
cap for better pouring.
■ The Diamond
Pure-Pak Curve
concept is available
for standard and
mini cartons and
thereby fitted for
any product.
Austrian company
Alpenmilch used
it to promote their
Mozart dessert
drink marking the
250th birthday of
Wolfgang Amadeus
Mozart.
■ The Mini Diamond Pure-Pak Curve carton
is well suited as portion pack for yogurts
and on the go products. Spanish consumers
enjoy Simbi, a drinking yogurt enriched
with prebiotics, probiotics and Omega 3.
41

42
The filling machine strategy was
revised to provide a stable base for
equipment supply, offering all the current
innovations into the market while
building the competence and infrastructure
to support the overall Elopak
strategy. For aseptic and ultra clean
filling machines focus was given to
improve the operating window on the
key machine types. These enhancements
will be commercially rolled out
during 2006.
Materials Handling experienced
another satisfactory year with steady
results and a sustainable sales outlook
for 2006. Materials Handling have
commercialised a new generation
wrap-around machine, which will
form a key part in Elopak’s future
machine system portfolio.
Production of screw caps for the Pure-
Pak cartons continued the growth
trend with sales of close to 3 billion
screw caps, representing an increase
of 23% to last years results. In line with
the company’s focus on innovation
and consumer convenience, 2006 will
see further screw cap development. As
closures have become an integrated
part and add value to the company’s
core product, the Pure-Pak carton, a
volume increase is expected also for
the coming year.
RESEARCH & DEVELOPMENT – INNOVATION
Elopak’s R&D departments continued
focusing on process improvements
and new product innovations.
The Food Science and Technology
Department had a hectic year with
verification of aseptic and ultra clean
installations. The department has
performed several audits, and numerous
requests from market units and
customers were handled by the laboratory.
Elopak reached a technological milestone
developing the industry’s first
fully servo controlled filling machine
– where the main axel is replaced by
servo motors – giving savings in steel
and moving parts. The project was
completed and is now part of the
machine portfolio.
2005 was also the year when a range of
innovative products and system
improvements were launched. Elopak
continued to drive innovation as a key
for volume growth and support of premium
brand development. New idea
generation was satisfactory, with many
new ideas for production, packaging,
and process innovations.
The Diamond Pure-Pak Curve Concept
was launched in Europe in October
with Delta Dairy in Greece. The launch
of Pure-Pak Curve, Mini-Diamond and
Mini-Diamond Curve (both chilled
and aseptic) was carried out and several
patents filed.
The development of two new packaging
solutions was initiated, expected to
be introduced to the market in 2006-
2007.
Innovations already represent more
than 5% of the annual revenue and are
expected to grow further in 2006.
MARKET ACTIVITIES
EUROPE, MIDDLE EAST AND AFRICA
In Europe in 2005, basic milk consumption
was down another 1 to 2%
tracing to both chilled and ambient
products, while value-added dairy
products continue to increase. Juice
consumption was up +1 to 2%.
The consumption of carbonated
drinks continued to decline in favor of
non-carbonated and new liquid food
products, including dairy, juice drinks,
water, teas, energy, functional drinks
and soups.
For Region EMEA (Europe, Middle
East and Africa) carton volume was
up 8% versus 2004; cap volume grew
by 25%. Elopak supplied 46 new filling
machines, including 13 Pure-Pak
P-S120, 6 aseptic fillers, and 30 cap
applicators.
Region EMEA changed its organisational
structure to meet the growth of
global brands. The four market areas
were gathered in two strong regional
teams to improve coordination of
efforts between multi-national and
global accounts, and drive consistent
improvements in revenues and profit.
Middle East experienced growth of all
dairy products, including Laban (fermented
milk accounting for 65% of
total processed milk in Saudi Arabia),
fresh milk (very important in
Morocco), and UHT milk (Saudi
Arabia and Egypt) due to wider distribution
and product offerings. Juices
and juice drinks were also up significantly
on a small volume basis at the
expense of carbonated soft drinks. In
the Middle East, Elopak achieved
record volumes with an increase of

33% versus 2004 for cartons and
43% for plastic bottles. In South Africa
Elopak achieved +13% in volume
versus 2004.
AMERICAS
The Americas Region achieved a
record carton volume, exceeding
2.2 billion blanks. The blanks volume
increased 8.5 percent above 2004
levels. The screw caps volume in the
Region increased by almost 100 million
units compared to 2004.
The results from Elopak’s joint venture
in Mexico increased, despite rising PE
prices, due to high blanks and screw
caps volumes. Pure-Pak Curve carton
with screw caps will be introduced
into the Mexican market in 2006.
Screw caps will be produced locally.
Operational results in the region
improved as the plans developed in
2004 began to be implemented. It is
anticipated that the progress will continue
in 2006 as blanks and screw caps
volumes grow and operational efficiencies
continue to improve.
CIS (COMMONWEALTH OF INDEPENDENT
STATES)
2005 was a challenging year for
Elopak’s business in CIS. Despite
obstacles the organisation found new
solutions in market approach and production
efficiency to reach sales and
financial goals. Elopak CIS exceeded
volume budget and had a volume
growth of 23% compared to 2004 and
has doubled its volumes since year
2000.
Financial targets were met despite the
extraordinary costs raised by external
factors. Elopak continued to successfully
roll out product enhancements
by offering screw caps for consumer
convenience. Customer projects and
market investments from previous
years proved successful and several
new customers were gained. Elopak
see clear opportunities in the market
segments outside the dairy sector and
will invest substantial effort into penetrating
these.
■ The extra panel of the Pure-Pak Curve car-
ton was used to promote the values added
for health benefits of Essentials premium
juices when relaunched by Tropicana.
■ Milko Yogurts were the first products
launched in Diamond Pure-Pak Curve cartons.
The extended top panel gives place for a
wider screw cap perfectly fitted for pouring
this high quality yogurt product.
■ First aseptic filling machine installation
in the Australian market resulted in the
launch of a high quality soymilk. The product
was successfully launched with Sanitarium
Health Food Company.
43

44
Elopak took over full ownership of the blanks manufacturing plant in Serbia and Montenegro.
The plant is an important supplier of blanks to the growing Eastern European market.
Macroeconomic factors in CIS Region
are not as stable and established as
they are in Europe. Uncertain political
climate inside and between CIS countries,
financial instability and bureaucracy
bring new risks and new challenges.
Elopak constantly reevaluates
the current business setup in order to
minimise risks and remain a reliable
high-quality supplier in this changing
environment.
APA (ASIA-PACIFIC-AUSTRALIA)
The APA market area realised an overall
positive development. The demand
in the Chinese market for dairy and
juice products continues to be strong
and Elopak’s own manufacturing plant
will be well situated to serve this growing
market.
The South East Asian activities have
unchanged volumes and the unit continues
the consolidation and training
program to prepare for the start-up of
the China manufacturing plant.
Support and trading activities in
Australia have benefited from the sellin
of new technology and carton innovations
through Elopak’s local associate.
PLASTIC BUSINESS
Elopak revised its plastic business
strategy and decided no longer to be
100% owner in activities related to
production, sale and marketing of
plastic bottles. This change in strategy
is a consequence of the last years’
unsatisfactory results within this business
segment and the need to focus
resources on the growing carton business.
An extensive restructuring of the complete
Plastic Division with main focus
on plastic bottle production resulted
in the sale of the „Hole-through-thewall’
installations in Austria and the
Czech republic.
In 2006 Elopak will concentrate on
efficiently running the remaining
manufacturing plants, but will seek
solutions in line with the revised strategy
for plastic bottle production.
ORGANISATION AND DEVELOPMENT
Development of a common performance
culture continued through 2005.
The company-wide organisational
survey showed clear strengths in all
employees understanding what is
expected of them. All departments will
continue to work on addressing
improvement areas and further building
on strengths in 2006.

Competence development is
approached in a structured way,
through the definition of core competences,
and the appointment of managers
for the systematic development
of each competence. New training
courses were introduced through the
new ‘Elopak Academy’ in 2005, and
additional courses are planned for
2006.
By year end Elopak had 1697 employees,
exclusive Joint Ventures, compared
to 1705 at year end 2004.
Headcount increase through the
acquisition of the Serbia plant was
offset by reductions in Plastics and
the effect of many different efficiency
gains across the Group. Elopak
Norway had 160 employees at year
end.
ENVIRONMENT
The Pure-Pak cartons’ environmental
benefits are increasingly recognised,
reflecting consumer awareness and
concern for the environment. Paper
is seen as a more natural product and
consumers react positively to it.
Beverage cartons can easily be recycled
into new applications. In 2005
all raw material sources were certified
on FSC – Forest Stewardship Council
– principles. No incidents affecting
external environment were recorded.
HEALTH, SAFETY AND THE WORKING
ENVIRONMENT
Total leave of absence in 2005 was 3.2%.
As for previous years, Elopak suffered
no fatal accidents in 2005. 62 minor
accidents were recorded, of which 31
led to absence of more than one day.
The figure for Lost-Time-Injuries was
10.1 for 2005, compared to 15.7 in
2004. While the improvement is pleasing,
a further reduction of the level is
targeted. Ongoing improvement activities
are defined, mainly in production,
focused on improving the physical
work environment.
FUTURE ASPECTS
At the outset of 2006, Elopak recognises
that the business environment
will remain challenging. The raw
material price pressure experienced in
2005 is expected to persist and even
increase. However, Elopak is very well
positioned to meet the challenges with
a healthy and improving core business
– carton-based packaging.
It remains Elopak’s firm commitment to
become a market leader in fresh as well
as premium aseptic packaging solu-
tions. During 2006, Elopak expects further
growth based on continuous innovation
and improvement of operational
efficiency. Organic growth is targeted
for Europe as well as the Americas,
Commonwealth of Independent States
(CIS – former Soviet) and Asia.
Elopak's customers across the globe
are knowledgeable and demanding.
Consolidation among dairies and
retailers, and changing consumer
trends and preferences contribute to
a rapidly changing environment.
Elopak’s strategy is to pursue customer
partnerships, value-adding innovation
and high internal efficiency in order to
ensure that the company remains a
preferred supplier in a demanding
market place.
■ Three years of filler development made
it possible that three different products can
be filled simultaneously in one filling
process while maintaining product viscosity.
Dutch dairy giant Campina launched their
famous Vla desserts and yogurt Flip as the
world-first triple products to the market.
■ Elopak’s annual press event was arranged
at Delta Dairy in Greece marking the com-
mercial launch of the Diamond Pure-Pak
Curve Concept. All Delta Dairy fresh products
were relaunched in the new innovative
cartons.
45

Mission Statement:
Sales NOK million
400
350
300
250
200
150
100
0
Swix Sport
Randi B. Sætershagen
We aim to develop, produce and
market innovative and high quality
accessories and textile goods
for sporting and other active recreational
pursuits, both in Norway
and internationally. We will do
this by developing and managing
our own market-leading brands
through an enthusiastic and valuedriven
organisation so that we are
recognised as a pioneering company
in our chosen sectors
00 01 02 03 04 05
NOK million
Key figures 2005 2004 2003 2002
Operating revenue 396.9 415.9 305.7 273.3
Operating profit -19.5 21.6 26.5 28.4
Fixed assets 75.0 74.8 32.4 31.4
Current assets 215.5 206.4 180.1 159.9
Total assets 290.5 281.2 212.5 191.3
Equity 77.4 96.6 87.9 86.3
Long-term liabilities 50.2 60.4 9.0 14.1
Current liabilities 162.9 124.2 115.6 90.9
Total equity
and liabilities 290.5 281.2 212.5 191.3
46
■ New managing director and head of sales appointed, customer
relations function strengthened
■ Subsidiary established in Germany
■ Swix Sport establishes its position as a brand warehouse for Swix,
Bavac, Ulvang, XL-1 and Pedro’s
■ New profile developed and implemented for Swix Sport and Swix
products
Swix Sport is a strong international
market leader for ski waxes, and a leading
player for ski poles. Through the
integration of Elite Sport, the company
has gained a broader and even more
competitive product range of textile
goods.
MARKETS
Most of Swix Sport’s products are
dependent on snow conditions.
The first months of 2005 saw persistently
poor weather conditions in all
the important markets. This caused
a significant downturn in orders from
sporting goods retailers at the start of
the year, and a similar decline in
advance orders for the 2005/2006 winter
season. The company's results for
2005 reflect these adverse conditions.
Despite this, the company's systematic
pursuit of its target to be the leader in
selected niches has strengthened its
long-term position in an overall market
where most of the product categories
sold by Swix Sport are not showing
appreciable growth. This is true of ski
waxes, ski accessories and ski poles,
and it also seems that Nordic Walking
sales have peaked for the moment.
A strong focus on design, particularly
on targeted ranges of women's and
men's clothing, has strengthened the
company's market position for textile
goods, which is a product area offering
considerable potential for future
growth.
RESULTS
After many years of strong earnings,
Swix Sport reported a weaker than
expected operating profit, mainly due
to the adverse winter weather conditions
but also because resources were
used to strengthen the organisation
and invest in new products for future
growth.
Swix Sport's operating revenue for 2005
was NOK 397 million as compared to
NOK 416 million for 2004, representing
a decline of some 5 percent.
SWIX SPORT USA
Swix Sport USA again set a new turnover
record in 2005. However, sales of
textile goods fell short of target. This
was due to the quota restrictions on
imports from China introduced in
summer 2005. Nordic Walking sales
remained modest, and the launch of
Ulvang products made little impact on
turnover in their first year. Investment
in new product areas held back profits,
which did not reach a satisfactory level
in total.
A new manager was appointed for
Pedro’s in 2005.
SWIX SPORT JAPAN
After two years of falling revenue due
to a general decline in the winter
sports market, Swix Sport Japan
increased its turnover in 2005 and so
reinforced its strong position in its
market segment. In view of the general
market conditions, the company's
results for 2005 were satisfactory.
SWIX SPORT GERMANY
Swix Sport established a subsidiary in
Germany in the spring of 2005. The
new operation took over responsibility
for distribution to the German market,
and was given responsibility for the
Austrian market with effect from 1
January 2006. The company has been
successful in recruiting the staff it
needs, all of whom have a good background
in the winter sports sector.
PRODUCT DEVELOPMENT AND INVEST-
MENTS
Swix Sport invested heavily in 2005 in
product development and building its
international brand. A more modern
logo and profile were introduced for
Swix products, and Swix Sport
launched a new corporate profile and
corporate communications program.

The company is now recognised as a
modern brand warehouse, with the
brands Swix, Bavac, Ulvang, XL-1 and
Pedro’s enjoying their own positions
and brand images.
In terms of product development, the
year was notable for an innovative ski
pole concept for top-level cross-country
skiing, which is currently being
tested by elite participants in international
competitions. The new pole
attracted great interest at the winter
ISPO trade fair, and it is likely to be on
sale on a limited basis by the autumn
of this year. Work was also completed
on new glide and kick wax products
which are very simple to use and will
be a competitive alternative in the
recreational skiing market.
ORGANISATION
The company's chief executive Mikkel
Dobloug decided to retire following a
period of leave of absence. Randi B.
Sætershagen was appointed as chief
executive to succeed Mr Dobloug at the
end of January 2006. Erik Stensrud was
acting chief executive from 1 April 2005
until Randi B. Sætershagen’s appointment,
and has now returned to his
position as head of the textile goods
area.
New appointments and changes in
responsibilities have been made in
order to improve the company's customer
focus. Bjørn Krekke joined the
company in May 2005 to fill the new
position of sales director, and what was
previously the order office has been
transformed into a state-of-the-art cus-
tomer centre with a newly appointed
manager. The logistics function has
been strengthened in order to cope
with the separate product lines of Swix,
Ulvang, Bavac and XL-1.
The process of integrating Elite Sport is
now complete, and the working environment
and internal collaboration are
entirely satisfactory. Swix Sport had 176
employees at 31 December 2005 (170 at
the close of 2004), of which 40 were
based in the USA (36), 10 in Japan (10),
and 5 in the new German subsidiary.
FUTURE PROSPECTS
The company expects significantly better
results in 2006 than in 2005, partly
because the year has started well, but
mainly as a result of the improvements
made to the organisational structure
and investment in product development
and brand identities. These
investments will also have a long-term
benefit in making Swix Sport a more
attractive business partner for distributors
and customers, and will contribute
to growth and improved profitability
for many years to come.
Swix is a modern brand warehouse, with
the brands Swix, Bavac, Ulvang, XL-1 and
Pedro´s enjoying their own positions and
brand images.
47

Introduction:
Ferd Private Equity Fund
Gert W. Munthe
Ferd Private Equity Fund (FPEF) is a
buy-out fund with NOK 2 billion in
committed capital. Ferd AS is the
largest single investor in FPEF, which
is backed by 25 Norwegian and foreign
investors. The fund invests in
established companies with international
potential where it can contribute
to value creation by playing
an active ownership role.
FPEF's business idea is to invest in established
companies where the fund's
expertise and network can contribute to
increased value creation. FPEF will therefore
invest in portfolio companies where
it can hold a sufficient ownership interest
to actively influence their development.
FPEF is the leading buy-out fund with a
primary focus on the Norwegian market,
and has a significant capital base of NOK
2 billion. The fund's ambition since it was
established in August 2004, has been to
position itself in the buy-out market
between the smaller Norwegian players
and the larger Nordic/European players,
and this has proved very successful. The
fund sees a strong flow of investment
opportunities and currently has five companies
in its portfolio: Pronova Biocare,
Epax, Noratel, Handicare and Wonderland.
Epax was spun off from Pronova Biocare
in 2005 and is now a separate company
in the FPEF portfolio. Collett Pharma,
which was purchased from Nycomed in
2004, was sold to Orkla ASA in 2005.
Ferd Equity Partners AS (FEP) is the exclusive
investment adviser for the fund. The
company has twelve employees and rents
premises from Ferd AS. FEP is owned 60%
by its employees and 40% by Ferd AS.
FEP’s objective is to strengthen its position
as the leading private equity environment
in Norway.
48
■ Acquired Toroid International as a supplementary investment for
Noratel
■ Acquired Handicare AS, a leading supplier of technical aids to
the handicapped and elderly, and expanded the company through
acquisitions in Denmark and Holland
■ Sold Collett Pharma to Orkla ASA in a transaction which also included
the consumer products division of Pronova Biocare
■ Acquired Norsk Hydro’s remaining shares in Pronova Biocare
■ Further strengthened the organisation and maintained a strong
position in the market with continuing good access to investment
opportunities
■ In February 2006 Wonderland, a leading Norwegian mattress manufacturer
with a strong position in the other Nordic countries was acquired
ORGANISATION
Ferd Private Equity Fund is an independent
buy-out fund with 25
Norwegian and international investors.
Investors have committed NOK 2 billion
of capital to the fund, with Ferd AS
as the largest single investor. FPEF is
incorporated in Jersey and the fund's
Board of Directors in Jersey is responsible
for all investment decisions. The
daily management and administration
of the fund is carried out by Aztec
Financial Services in Jersey.
Ferd Equity Partners AS is the exclusive
investment adviser to the fund. Ferd
Equity Partners continued to strengthen
its team in 2005. Kristian Eikre, who
previously worked as an investment
analyst at First Securities, joined as an
analyst in September, and later in the
autumn Aase Sunde, who previously
worked at Wiersholm, was employed as
executive secretary. Cato Haug, who
previously worked for Morgan Stanley
in London, and Sverre Flåskjer, formerly
the marketing director at Nidar, were
both appointed as investment managers
in January 2006. Malin Krog
joined from Boston Consulting Group
as an analyst in 2006. The company
now has three partners, four investment
managers, three analysts, a CFO and an
executive secretary.
LEADING POSITION IN AN ATTRACTIVE
MARKET
Ferd Private Equity Fund is recognised
as one of the leading buy-out funds
with a focus on Norway. The fund aims
to position itself in the private equity
market between the smaller Norwegian
players and the larger Nordic/European
players, and this approach has proved
very successful. FPEF focuses on
investments in the range NOK 100-400
million with a Norwegian connection.
There are major opportunities for private
equity in Norway, where private
equity is a less well-developed market
than in other countries, such as
Sweden. The fund has attracted a very
good flow of attractive investment
opportunities ever since it was first
established, and focuses on transactions
in a range where competition is
less intense. Ferd Equity Partners is
well positioned to take advantage of
these opportunities and to strengthen
its position as the leading private
equity investment business in Norway.
PORTFOLIO DEVELOPMENT
FPEF continued to work on the development
of its portfolio companies in
2005. In March the fund made an
acquisition through Noratel of Toroid
International. This has made Noratel a
global company and added production
facilities in Sri Lanka and India.
Noratel’s annual turnover increased
from NOK 310 million to NOK 500 million.
In July the fund purchased
Handicare AS, a leading supplier of
technical aids to the elderly and handicapped.
Just a few months later, with
the support of capital and transaction
expertise from FPEF, Handicare
acquired Kjærulff in Denmark and
Movingpeople in Holland. This ensured
a strong position and rapid growth for
Handicare for the start of 2006. June
also saw an agreement with Orkla ASA
for the sale of Collett Pharma. This
transaction, which was completed in
October, secured a good return for the
fund and also gives Collett Pharma the
best opportunities and conditions for
its further development. The sale to
Orkla also included the consumer
products division of Pronova Biocare .
Pronova now focuses on its pharmaceuticals
division and on oil products
for dietary supplement applications.

From left: Aase Sunde, Gert W. Munthe, Patrik Bø Egeland, Morten Blix, Cato Haug, Sverre
Flåskjer, Jostein Bjørge, Kristian Eikre, Tore Rynning-Nielsen, Adele Bugge Norman Pran,
Rikke T. Reinemo. In front: Malin Krog.
The latter business was spun off in
2005 as a separate company under the
name Epax. Pronova continues to perform
strongly, and recent developments
include the launch of the
Omacor pharmaceutical product in the
American market and a long-term contract
with Takeda Pharmaceuticals for
sales to the Japanese market.
In February 2006, FPEP acquired
Wonderland AS, one of the leading
Norwegian mattress manufacturers in
Norway with a strong position in the
other Nordic countries.
FPEF will continue to commit considerable
resources to developing these
companies. The fund's investment
adviser, FEP, assists in this task through
its representation on the boards of the
portfolio companies and active
involvement in a range of projects.
FUTURE PROSPECTS
FPEF will continue to focus in 2006 on
the further development of the companies
in its portfolio. The fund continues
to have significant assets available for
investment and intends to carry out
new acquisitions in 2006 as well as
considering supplementary investments
in its existing portfolio companies.
In addition to evaluating investment
opportunities represented by its
large and attractive deal flow, Ferd
Equity Partners will pro-actively
develop attractive investment opportunities
for consideration by the fund.
Further development of current portfolio
companies. FPEF will continue to
work closely with its portfolio companies
to ensure continuing growth and
further improvements in performance.
Further acquisitions/investments. FPEF
will continue to work on generating and
evaluating potential investment opportunities
for the fund. The fund continues
to have significant assets available
for investment, but will also ensure that
it has sufficient capital available for the
continued development of its existing
portfolio companies.
Ferd Private Equity Fund’s
portfolio:
• Pronova Biocare AS
• Epax AS
• Noratel AS
• Handicare AS
• Wonderland AS (February 2006)
49

HANDICARE
Ferd Private Equity Fund’s portfolio
NOK million
Key figures 2005 2004 2003 2002
Operating revenue 728.4 610.2
Operating profit 63.4 46.7
Fixed assets 427.5 44.2
Current assets 378.9 234.8
Total assets 806.4 279.0
Equity 143.0 84.7
Long-term liabilities 483.3 48.0
Current liabilities 180.1 146.3
Total equity
and liabilities 806.4 279.0
No comparable figures are available for the period 2002-
2003.
PRONOVA BIOCARE
NOK million
Key figures 2005 2004 2003 2002
Operating revenue 603.6 466.8 320.4 265.6
Operating profit 215.2 46.8 11.4 -10.2
Fixed assets 507.6 392.9 223.0 155.7
Current assets 313.8 319.1 187.9 254.3
Total assets 821.4 712.0 410.9 410.0
Equity 214.7 189.2 69.7 72.7
Long-term liabilities 479.6 428.2 41.9 38.6
Current liabilities 127.1 94.6 299.3 298.7
Total equity
and liabilities 821.4 712.0 410.9 410.0
Epax was spun off from Pronova Biocare in December 2005.
NORATEL
NOK million
Key figures 2005 2004 2003 2002
Operating revenue 508.9 304.5 266.2 249.0
Operating profit 36.7 22.9 19.0 15.4
Fixed assets 176.4 65.2 61.7 62.7
Current assets 266.5 137.4 119.1 114.6
Total assets 442.9 202.6 180.8 177.3
Equity 132.2 84.0 76.4 69.3
Long-term liabilities 178.9 38.9 36.3 39.9
Current liabilities 131.8 79.7 68.1 68.2
Total equity
and liabilities 442.9 202.6 180.8 177.3
50
Handicare
■ FPEF acquired Handicare in July 2005
■ Strong growth through acquisitions in
Denmark and Holland
■ Continuing top-line and bottom-line
growth
■ Work now under way to integrate
the companies acquired and prepare
for further expansion
Handicare is a leading supplier of technical
aids for the elderly and the handicapped.
The company is also the largest
player in Norway for the conversion of
cars for handicapped drivers, and is a
leading distributor of medical equipment
and material to hospitals through
its subsidiary Puls AS. The company
reports growth in all three areas of
activity.
Handicare was acquired by FPEF in
July 2005. Handicare and FPEF then
worked closely together to carry out
two acquisitions in July: Kjærulff A/S
which is a leading player for bathroom
aids in Denmark and Movingpeople
which is a leading supplier of technical
aids for the elderly and handicapped in
Holland.
In addition to its operations in Norway,
Handicare has subsidiaries in Sweden,
Denmark and Holland. The company
also sells its products to a number of
other European markets through distributors.
Handicare is currently experiencing
a good response to its products
in many markets, and is enjoying strong
growth in both turnover and profits.
Figures for the Handicare group
showed turnover of NOK 728 million
in 2005 with an operating profit of
approximately NOK 63 million.
Consolidated turnover in 2006 is
expected to approach NOK 1.1 billion.
Handicare has established a position as
an exciting international supplier of
technical aids for the elderly and handicapped,
and FPEF's objective is to
encourage the further development
and expansion of this business both
organically and through acquisitions.
www.handicare.com
Pronova Biocare
■ FPEF acquired Hydro’s remaining 20%
interest in April 2005
■ Industrial Brands division established
as Epax AS, a separate legal entity
■ Consumer Brands division sold to Orkla
■ Licence and supply agreement for the
Japanese market signed with Takeda
■ Launch of Omacor in the American
market
Pronova Biocare is a global leader for the
development, production and sale of
Omega-3 fatty acids, both for dietary
supplement and pharmaceutical applications.
The company is heavily focused on
international markets, and most of its production
is exported. The company's head
office is in Oslo and it has production
facilities in Sandefjord and Ålesund.
FPEF acquired the remaining 20% of the
share capital of Pronova Biocare from Hydro
in April 2005. At the start of 2005 the company
had three divisions: Pharmaceuticals,
Industrials Brands and Consumer Brands.
2005 saw significant investment in the company's
production facilities. The capacity
of the Sandefjord facility was doubled over
the course of the year, and sizeable investment
in the Ålesund facility has served to
increase capacity and eliminate the interdependency
between the two production sites.
The Sandefjord facility now focuses on pharmaceutical
production, while by the close
of 2005 the Ålesund facility's capacity was
almost solely committed to producing
Omega-3 for dietary supplement applications.
As part of the process of making
Sandefjord and Ålesund independent of each
other, the Industrial Brands division responsible
for production at Ålesund was established
as a separate legal entity in December
2005 known as Epax AS. The Consumer
Brands division was sold to Orkla in 2005.
In its pharmaceutical activities, Pronova
Biocare signed an important licence and
supply agreement with the Japanese company
Takeda in autumn 2005. The company
launched its Omacor product in the USA
in autumn 2005 through its distributor
Reliant. Sales of Omacor show promising
growth, and the main challenge in 2006 will
be to carry out sufficient further investment
in the company's pharmaceutical production
capacity.
Tomas Settevik will succeed Egil Bodd as
the managing director of Pronova Biocare
in the first half of 2006.
www.pronova.com

Noratel
■ Purchased Toroid International in
March 2005
■ Stronger structure with new executive
management appointments and a pro-
fessional Board of Directors
■ Successful integration of Noratel and
Toroid International, giving a global
position with production facilities in the
Nordic region, Eastern Europe and Asia
■ Established a joint-venture for a factory
in China to produce transformers for
Chinese manufacturers
Noratel, which was acquired by FPEF in
December 2004, was established in
1925 as Norsk Radiotelefon og Telegraf
A/S. The company changed its name to
Noratel AS in 1956, and began to focus
on the manufacture and distribution of
transformers and power supplies.
Noratel is based in Norway, but operates
an international organisation.
Noratel has operated subsidiaries in
the other Nordic countries and Poland
since the early 1990s. Following the
acquisition of Toroid, the company is
also represented in Germany, Holland,
England, Spain, India and Sri Lanka.
Noratel currently has production facilities
in Norway, Sweden, Finland,
Poland, India and Sri Lanka.
Noratel made new appointments to its
executive management team in 2005,
and a professional Board of Directors
was recruited. The company’s performance
improved in 2005 despite the challenges
of higher prices for steel and copper.
FPEF intends to develop Noratel
further by playing an active role in consolidation
and restructuring in this sector.
In 2006 Noratel and FPEF will focus
on identifying and realising operational
improvements and potential acquisitions
that can give Noratel an even
stronger position in this industry.
www.noratel.no
51

Mission Statement:
Ferd Invest
John Harald Henriksen
Ferd Invest’s objective is to operate
as a long-term financial
investor on the basis of its core
expertise in the areas of finance,
networking, investment analysis
and portfolio management
Ferd Invest aims to invest in companies
that offer sound business ideas, good
potential for value creation, management
commitment to shareholder value
and acceptable gearing. Our strategy is
twofold: We principally wish to play a
leading role and make a positive contribution
as a long-term investor in a relatively
limited number of companies. This
allows us to influence the development
of these companies. Secondly, we operate
as a financial investor in a range of
large, liquid companies and equity funds
sufficient to ensure a diversified equity
portfolio. Ferd invests directly in individual
stocks in the Norwegian market, but
international investments are made
mainly through equity funds. The portfolio
is entirely financed by equity.
NOK million
Key figures 2005 2004 2003 2002
Operating revenue 571.1 382.1 412.6 -435.1
Operating profit 565.8 377.9 407.1 -440.5
Fixed assets 0.1 11.9 14.7 126.7
Current assets 2 317.8 1 687.0 1 307.7 1 245.2
Total assets 2 317.9 1 698.9 1 322.4 1 371.9
Equity 2 274.5 1 684.1 1 320.2 1 371.5
Long-term liabilities 41.9 13.3 0.0 0.1
Current liabilities 1.5 1.5 2.2 0.3
Total equity
and liabilities 2 317.9 1 698.9 1 322.4 1 371.9
52
■ Favourable economic conditions in Norway, with low interest rates
and rising raw material prices
■ Continuing strong stock market in Norway
■ A further year of good returns from the Norwegian share portfolio
■ The outlook for oil prices will determine the future direction of the
Norwegian stock market
MARKETS
The increases in oil and commodity
prices seen in 2004 continued in 2005.
The Morgan Stanley global index
gained 7.5 % in US dollar terms, but
there were significant regional variations.
In the USA, rising interest rates,
the hurricanes in the Gulf of Mexico
and higher oil prices meant that equity
markets managed only a modest
improvement, with the leading S&P
index producing a return of 4.8% for
the year. However, stock markets in
Europe and Asia moved ahead thanks
to a combination of encouraging
growth prospects and low interest
rates. The major surprise for the year
was the return of economic growth in
Japan, which helped to push the TOPIX
index 44% higher. Stock markets with a
raw materials bias enjoyed another
good year, and the Oslo stock market
gained 40.5%. Over the last three years
the Oslo stock market has gained 188%,
which is the best three-year performance
in recent time. Energy shares produced
the strongest performance in
the Oslo market, but companies in a
number of other sectors also performed
very strongly.
INVESTMENT RETURN
Ferd Invest produced another good
year in 2005, with a total return of
NOK 572 million equivalent to 33.2%.
This was a little less than the return on
the benchmark index for the portfolio,
which gained 35.9%. The reason for
this underperformance is that the proportion
of the portfolio held in cash
was at times a little too high when the
Norwegian stock market was performing
strongly. The average total return
over the last three years was 36.1%. The
Norwegian share portfolio gained NOK
426 million or 35.3%. The largest contributors
to the year’s gains were Lerøy,
Orkla and Andvord Tybring-Gjedde.
However in percentage terms the airline
Norwegian produced the highest
return.
The international portfolio also performed
well, with a return of 27.5% in
NOK terms. The portfolio is not currency
hedged, and currency movements
contributed NOK 14 million of
the year’s return. At the beginning of
2005 we invested in an Asia fund and a
Japan fund. Both these funds made a
very positive contribution, both in
absolute terms and relative to the
benchmark index.
PORTFOLIO ALLOCATION
The portfolio allocation at the end of
2005 was 63% in Norwegian equities,
32% in foreign equities and 5% in bank
deposits. The equivalent allocation at
the start of the year was 71% in
Norwegian equities, 20% in foreign
equities and 9% in bank deposits.
During the course of 2005, we
increased the portfolio’s exposure to
international stock markets by purchasing
fund units. Purchases of shares
and fund units totalled NOK 514 million
for the year, and sales of shares
raised NOK 371 million. The rate of
turnover in the portfolio remained low.
The energy sector was the focus of
interest on the Oslo stock exchange
throughout 2005. Given our underweight
exposure to energy shares, this
sector made only a limited contribution
to the return for the year although
shares in both Subsea 7 and Awilco
Offshore contributed with returns better
than benchmark. A number of share
selections in other sectors proved successful,
including shares in Norwegian,
which made a breakthrough in the
Norwegian airline market, Andvord
Tybring-Gjedde formed by the merger
of Andvord and Tybring-Gjedde, and
Ibas, which was acquired by an industrial
purchaser. Other major events for
companies in the portfolio were Orkla’s
acquisition of Elkem and the stock
market’s acceptance of Lerøy as an
attractive investment alternative in the
seafood industry. During the course of
2005 Ferd Invest was represented on

John Harald Henriksen and Gaute Garshol.
the boards of Kongsberg Gruppen and
Telenor. We are also represented on the
election committees of a number of
other companies. Through our contribution
to the work of election committees,
we have helped to identify a
number of competent female board
members for companies in our portfolio.
ORGANISATION
Gaute Garshol was appointed as an
investment manager in September
2005 with particular responsibility for
the energy sector. He previously
worked as an investment analyst at
Carnegie and as an investment manager
at Orkla. We intend to appoint a
further new investment manager in
early 2006 to complete our coverage of
the Norwegian stock market. During
the course of the year, we will also
build up direct exposure to listed companies
on the Swedish stock market.
FUTURE PROSPECTS
The oil price will be crucial for both
global economic prospects in general
and the Norwegian stock market in
particular. The high oil price represents
a potential threat to growth in the
global economy, but is an important
factor in market sentiment in Oslo.
After three years of strong performance,
the Oslo market is not cheap.
Further strong performance will only
be achieved if the oil price remains
high and stable and the global economy
continues to grow rapidly.
Looking forward, we believe that the
potential for risk-adjusted returns will
be somewhat better internationally
than in Norway, and we will therefore
continue to increase the international
weighting of the portfolio at the
expense of the Norwegian share portfolio.
Five largest Norwegian shareholdings ranked by
market value
No. Market value share of
Company of shares NOK 1000 portfolio
Orkla 830 000 231 985 000 10.0%
Lerøy Seafood 3 000 000 219 000 000 9.5%
Nordic 1 800 000 119 700 000 5.2%
Semiconductor
Storebrand 2 020 800 117 711 600 5.1%
Telenor 1 250 000 82 812 500 3.6%
Total 771 209 100 33.4%
Total return on assets under management
40 %
35 %
30 %
25 %
20 %
15 %
10 %
5 %
0 %
40 %
35 %
30 %
25 %
20 %
15 %
10 %
5 %
0 %
Jan Mar May Jul Sep Nov
Portfolio Benchmark index
Cumulative return on share portfolios
Jan Mar May Jul Sep Nov
Norwegian portfolio International portfolio
53

Mission Statement:
Ferd Venture
Erik Fausa Olsen
Ferd Venture offers risk capital for
technology-based companies with
international potential and highly
motivated, experienced management.
Ferd Venture creates value by
making an active contribution to the
development, growth and realisation
of its portfolio companies. Ferd
Venture’s objective is to be a
demanding investor recognised for
its serious commitment, expertise
and long-term approach
NOK million
Key figures 2005 2004 2003 2002
Operating revenue 22,8 -3.8 4.0 -35.2
Operating profit 11.8 -13.3 -7.1 -119.3
Fixed assets 50.0 33.9 56.8 60.3
Current assets 210.4 147.1 199.9 125.5
Total assets 260.4 181.0 256.7 185.8
Equity 259.4 179.3 207.4 156.1
Long-term liabilities 0.0 0.0 0.8 18.3
Current liabilities 1.0 1.7 48.5 11.4
Total equity
and liabilities 260.4 181.0 256.7 185.8
54
■ Four new investments
■ Sound portfolio development
■ Additions to the Ferd Venture team
■ Good future prospects
AN EXCITING YEAR IN 2005
2005 was a very exciting year for Ferd
Venture. There was a good flow of new
investment opportunities, and over the
course of the year we invested in four
new companies. In addition, our targeted
work with the existing portfolio
companies helped ensure their healthy
development. Ferd Venture is now seen
as one of the country's leading venture
capital operations, characterised by the
strength of its team and its stable longterm
access to capital. Our philosophy
is that success comes through systematic
long-term commitment, and we
apply a clearly defined set of principles
and processes to structure our work.
FOUR NEW COMPANY INVESTMENTS
In the first quarter of 2005 Ferd Venture
made an investment in Nacre , a
Trondheim-based hi-tech company
with origins in the SINTEF environment.
The company has developed a
digital earplug that allows natural
speech and radio communications at
the same time as providing effective
sound protection. The main market for
this product is military special forces,
and in 2005 the company made its first
sales to the military authorities in
countries including Norway, Sweden
and Denmark. Nacre went on to take
its first step into the American market
towards the end of 2005 when it won a
contract with the US Marines.
In July, Ferd Venture invested in Mohive ,
a Norwegian software company that
supplies e-learning software for major
companies. This software makes it easy
for key employees to share their technical
knowledge with others in the
organisation. The customer list already
includes companies such as If, Storebrand,
ICA and Statsbygg in Norway as
well as UPC and Charles Schwab internationally.
E-learning is a growing
market, and annual sales of e-learning
solutions in Europe are around NOK
7 billion.
The third investment in 2005 was in
Colibria, a Norwegian company that is
a technological leader in instant messaging
and presence systems for
mobile phones. Mobile operators are
expected to invest in new communication
products as part of their drive to
find new sources of income, and
Colibria’s new concepts are well placed
to benefit from this. The company's
solutions are already used by a number
of operators in Europe, Asia and Latin
America. Four Seasons Venture and
Northzone were already shareholders
in Colibria, and also participated in
this round of investment.
Ferd Venture’s final investment in 2005
was Forbrukerforsikring. This company
sells legal insurance products to the
retail market that are intended to give
consumers greater security when
buying houses and consumer goods
and when employing tradesmen.
Forbrukerforsikring undertakes to
manage any disputes for the customer,
and to act as its representative in dealing
with the other party. Both costumers
and important distribution
channels have shown great interest in
this type of insurance.
Ferd Venture also made follow-up
investments in the portfolio companies
GenKey, Bone Support, MariCal and
Affitech in 2005.
FURTHER INVESTMENT IN ENERGY VENTURES
The venture capital company Energy
Ventures, in which Ferd Venture is a
major investor, has established its position
as the leading Norwegian venture
capital player in the energy sector, and
manages some NOK 900 million. The
first Energy Ventures fund has invested
in eight attractive companies, and is
now closed. A number of these companies
performed very strongly in 2005,
and APL was listed on the Oslo stock
exchange in March 2005. In April 2005,
Ferd Venture committed NOK 130 mil-

Annar Bøhn, Erik Fausa Olsen, Helge Hellebust, Monica Engen, Bjørn Erik Reinseth and
Pål M. Rødseth.
lion to the second Energy Ventures
fund, which has total capital of around
NOK 600 million.
In addition to its investments in Energy
Ventures I and II, Ferd Venture contributed
further capital to Four Seasons
Venture III and Teknoinvest VII in
accordance with its investment commitments
to these funds.
ADDITIONS TO THE FERD VENTURE TEAM
Ferd Venture further strengthened its
team over the course of 2005 by adding
one partner and one associate. In
spring 2005, Bjørn Erik Reinseth was
recruited as a partner. Reinseth has
extensive experience from the telecom-
PORTFOLIO
NOK million Investment* Year of
Company investment
Forbrukerforsikring 20.0 2005
Colibria 15.0 2005
Mohive 9.0 2005
Nacre 15.0 2005
Cinevation 18.5 2004
Vensafe 15.0 2003
Bone Support 13.0 2003
GenKey 8.0 2003
MariCal 16.5 2002
Affitech 18.0 2000
* includes both equity and loans to the company
PORTFOLIO FUNDS
munications industry, and has previously
been CEO of Sense Communication
and Bredbåndsfabrikken. Annar
Bøhn joined the team as an associate,
coming from a management consulting
position with PA Consulting Group.
Ferd Venture currently consists of Erik
Fausa Olsen, Managing Partner, with
three partners – Helge Hellebust, Pål M.
Rødseth and Bjørn Erik Reinseth, and
two associates – Monica Engen and
Annar Bøhn. The members of the team
represent a broad range of expertise
and education, with practical experience
from a range of different sectors.
GOOD FUTURE PROSPECTS
2005 was a year of good performance
in the financial markets, with strong
interest in stock exchange floatations.
The venture capital sector successfully
realised a number of its investments,
and several venture capital supported
companies were listed on the Oslo
stock exchange. Ferd Venture remains
confident that venture capital is an
attractive investment alternative in the
long-term. We believe that the coming
year will see further progress for our
portfolio companies, a good flow of
new investment opportunities and
continuing progress for the venture
capital market.
NOK million Year Total Amount Ownership Proportion of
established committed committed by share committed
capital Ferd Venture capital called
Energy Ventures I 2002 315 60 19.1% 63.7%
Energy Ventures II 2005 598 130 21.7% 4.5%
In addition, Ferd Venture has invested in Startfondet, Teknoinvest VII and Four Seasons Venture II & III
■ MOHIVE
Mohive is a Norwegian soft-
ware company that offers a
unique and well positioned
e-learning software product
intended for major companies
that have systems for expertise
management.
■ Nacre has developed
a lightweight digital
earpiece that provides
two-way speech and
radio communication
with maximum acousti-
cal awareness.
■ MOBILE INTERNET CHATTING
Colibria Mobile Instant Messaging (MIM)
makes internet chatting with friends and
acquaintances possible without having to
sit at a PC. The user’s mobile telephone
shows the texts from both sender and
recipient in just the same way as a PC chat
program, and its user interface offers the
same interactivity.
55

Companies in our portfolio
Forbrukerforsikring
Forbrukerforsikring sells legal insurance
to the retail market, both directly
to consumers and through distributors.
Its products are designed to give consumers
greater security when buying
houses and consumer goods and when
employing tradesmen. Forbrukerforsikring
undertakes to manage any
disputes for the customer, and to act as
its representative in dealing with the
other party. Both customers and
important distribution channels have
shown great interest in this type of
insurance. The company operates from
Oslo under its Managing Director
Johan Dolven. Ferd Venture invested in
Forbrukerforsikring in December 2005
together with Storebrand Livsforsikring.
www.forbrukerforsikring.no
Colibria
Colibria is a technological leader for
instant messaging and presence systems
for mobile telephones, and has
a number of mobile operators in
Europe, Asia and Latin America as customers.
Colibria’s product is delivered
as a server that the mobile operator
integrates into its own systems. Mobile
operators are expected to invest in new
communication products as part of
their drive to find new sources of
income, and Colobria’s new concepts
are well placed to benefit from this.
The company has offices in Norway,
the UK, the Philippines and Belgium.
Four Seasons Venture and Northzone
were already shareholders in Colibria
from earlier financing rounds, and also
participated in this round of investment
in September 2005.
www.colibria.com
Mohive
Mohive is a Norwegian software company
that offers a unique and well positioned
e-learning software product
intended for major companies that
have systems for expertise management.
The software makes it easy for
key employees to share their technical
knowledge with others in the organisation.
The customer list includes companies
such as If, Storebrand, ICA and
Statsbygg in Norway, as well as UPC
and Charles Schwab internationally.
Annual sales of e-learning solutions in
56
Europe are around NOK 7 billion, and
the market is expected to grow by 20%
annually over the next three years. Ferd
Venture invested in Mohive in July 2005.
www.mohive.com
Nacre
Nacre is a Trondheim-based hi-tech
company with origins in the SINTEF
environment. The company has developed
a small, patented digital earplug
that allows natural speech and radio
communications while at the same
time providing excellent hearing protection.
The main market for this product
is initially military special forces
and in due course the military
as a whole, as well as some civil applications.
The company made its first
sales in 2005 to the military authorities
in countries including Norway, Sweden
and Denmark. In addition, Nacre
recently won a contract with the US
Marines that represents an important
first step in the major American market.
Viking Venture and Sinvent Venture
were already shareholders in the company
from earlier financing rounds,
and they also participated in this round
of investment with Ferd Venture in
February 2005.
www.nacre.com
Cinevation
Cinevation has developed a revolutionary
and highly competitive film
recorder for transferring digital source
material to traditional analogue film in
real time, i.e. over 100 times faster than
with current technology. There is considerable
demand for this type of film
recorder, and Cinevation is expected to
gain a substantial share of the global
market. Cinevation has sold its first
machines to the leading international
post-production companies Efilm in
the USA and Moving Picture Company
in England, and is in negotiations with
a number of other potential customers.
Nordisk Film has been using Cinevation
equipment for almost one year.
Traditional analogue cameras still
dominate movie filming, but the use of
digital recording is on the increase
since it facilitates efficient editing and
the use of digital effects. However,
completed movies must be transferred
back to analogue film stock since most
cinemas still use analogue projectors.
Ferd Venture invested in Cinevation in
June 2004 in collaboration with Viking
Venture.
www.cinevation.net
Vensafe
Vensafe develops, sells and installs
automated systems for sales of small,
high-cost consumer goods in retail
stores. The company’s systems eliminate
stock shrinkage and increases
sales of high-cost items. Vensafe’s systems
are deployed in the Nordic countries,
Benelux and Germany by leading
retail grocery chains such as ICA, Ahold,
Norgesgruppen, Metro, Spar and Albert
Heijn. Sales of the company’s systems
have grown significently since the first
machine was installed in January 1999,
and the company has now installed
more than 1 000 of its machines.
Vensafe reported turnover of approximately
NOK 60 million in 2005. The
company has also continued to invest
heavily in research and development,
which caused it to report a loss for
2005. Ferd Venture invested in Vensafe
in 2003 together with Selvaag Venture,
Teknoinvest and Canica.
www.vensafe.no
Bone Support
Bone Support develops injectable bone
substitutes, based on synthetically produced
ceramic materials. The company
has a number of bone substitutes
under development, with different
compositions and different patents.
In 2005 Bone Support gained FDA
approval for a product used to treat
brittle bone fractures. The company's
most promising product is Spine-
Support, which is intended for the
treatment of osteoporotic fractures to
the spinal column. Clinical trials were
carried out in 2005 on patients with
osteoporotic spinal column fractures
with very successful results. Bone
Support operates from Lund in Sweden.
Ferd Venture invested in Bone Support
in July 2003 in collaboration with
Teknoinvest and Innovationskapital.
www.bonesupport.com
GenKey
GenKey develops innovative biometric
software solutions. The company has

specialised in fingerprint recognition
using a combination of pattern and
minutiae recognition coupled with
encryption. GenKey’s technology provides
quicker, cheaper and more accurate
recognition than existing technology
can offer. Applications include
authenticating ID cards and passports,
logical and physical access control and
digital signatures, e.g. in financial
transactions. The company completed
the development of its system in 2005,
and is now working on its commercialisation.
The first agreements for system
sales and collaboration have been signed
with international customers, and
GenKey has established a sound basis
for international success. Ferd Venture
invested in GenKey in May 2003.
www.genkey.no
MariCal
MariCal is an American life sciences
company that develops innovative
solutions for the world’s aquaculture
industry. MariCal’s products all use a
central technology developed by the
company that identifies a biological
‘thermostat’ triggered when salmon
move from fresh water to salt water.
In 2005, MariCal signed an important
contract with the feedstuff producer
EWOS, and the company is currently
in final negotiations with a global fish
farming company interested in using
SuperSmolt across all its operations.
During the course of 2005, MariCal also
demonstrated the commercial potential
of its next product, SeaReady,
which improves both production
capacity and quality for hatchery production
of juveniles for transfer to production
facilities. MariCal has a number
of attractive technologies and
products under development. The
company's development projects are
run in collaboration with various players
in the fish farming industry. Ferd
Venture invested in MariCal in collaboration
with Teknoinvest in April 2002.
www.marical.no
Affitech
Affitech is one of the few companies in
the world to have developed proprietary
technology for human type antibodies,
which is one of the most important new
areas of bio-medical development.
These antibodies are needed for medi-
cines that can work on specific targets in
the body such as cancer cells. This type
of biotechnology-based pharmaceutical
development represents one of the
most rapidly growing areas of the pharmaceutical
market, and is expected to
increase from a current annual value of
USD 3 billion to around USD 30-50 billion
by 2010. Affitech's strong technological
and patent-protected platform
represents a solid foundation for
becoming an important player in this
market. In 2005, Affitech signed a new
cross-licensing agreement with Xoma
(a NASDAQ listed company) and
licensed Protein-L to a British biotechnology
company. Affitech also
expanded its collaboration with
Peregrine and Viventia over the course
of 2005. Ferd Venture invested in
Affitech in July 2000 in collaboration
with Teknoinvest, Four Seasons PE,
Glastad Capital and Aker RGI.
www.affitech.com
Energy Ventures I og II
Energy Ventures was launched in 2002
and Ferd Venture was one of the
founders and largest investors. Energy
Ventures has established its position as
the leading Norwegian venture capital
player in the energy sector, and manages
two funds with some NOK 900
million under management in total.
In April 2005 Ferd Venture committed
NOK 130 million to the second fund,
of a total of NOK 600 million. This fund
has so far made one investment. The
first Energy Ventures fund has invested
in eight attractive companies, and is
now closed.
The companies in the Energy Ventures
portfolio are Seabed Geophysical AS,
Sense Intellifield AS, Omniware AS,
Caltec Ltd, MTEM Ltd, Sense Technology
AS, NCA AS and ARKeX Ltd.
www.energyventures.no
Ferd Venture is also an investor in the
funds Four Seasons Venture II & III,
Teknoinvest VII and Startfondet.
57

Mission Statement:
Ferd Real Estate
John Skogen
Ferd Real Estate will develop
attractive residential and commercial
properties in the Oslo
area. We will own, develop,
acquire and sell properties that
are characterised by long-term
value creation, either alone or
working with selected partners.
Ferd's objective is to be the best
city district developer in Oslo
NOK million
Key figures 2005 2004 2003 2002
Operating revenue 91.6 193.2 174.2 57.2
Operating profit 55.6 104.5 58.7 31.2
Fixed assets 205.8 263.6 243.2 264.1
Current assets 285.8 184.8 222.2 156.2
Total assets 491.6 448.4 465.4 420.3
Equity 246.0 204.6 188.8 186.1
Long-term liabilities 228.7 145.8 217.3 200.9
Current liabilities 16.9 98.0 59.3 33.3
Total equity
and liabilities 491.6 448.4 465.4 420.3
58
■ Outline planning for the Tiedemanns site finally approved
■ Architectural competition carried out for the Ensjø district
■ New investment strategy, new structure for the real estate portfolio
■ Partnership with Selvaag Pluss on an innovative concept for residential
units with additional services
Ferd Real Estate is an active real estate
investor with two business areas: Real
Estate Management is responsible for
letting, management and maintenance
of the real estate portfolio, while Real
Estate Development is responsible for
developing and implementing new
projects in both commercial and residential
real estate. In addition, Ferd
Real Estate has a staff function that is
actively involved in buying and selling
real estate.
MARKET CONDITIONS
Commercial rental market: The market
showed an overall improvement in
2005. Vacant commercial space in Oslo
fell to 8.5%, equivalent to 0.75 million
square metres, having been 0.9 million
in 2004 and over 1.0 million in 2003.
However, the improvement was very
uneven, and the market is becoming
increasingly segmented. Premises in
the centre of Oslo saw stronger demand,
low vacancy rates and significant
increases in rent levels. On the other
hand, properties in the outskirts have
seen little or no improvement. Ensjø,
where a significant proportion of the
Ferd Real Estate commercial property
portfolio is located, is relatively close to
the centre of Oslo and so it has attracted
some increase in interest, but this has
not been sufficient to materially
improve market conditions and rental
levels here are still under pressure.
There is also a new trend for tenants
to prefer modern buildings that offer
more efficient use of space. This is an
interesting trend, particularly since
new commercial properties are once
again being planned and built in
attractive areas such as Skøyen, Lysaker,
Tjuvholmen, Bjørvika, Vestbanen and
Filipstad.
Purchase and sale of commercial property:
2005 was characterised by high
demand. This was due in part to the his-
torically low level of interest rates, and
in part to many new players entering
the market as well as greater interest
from investment syndicates. Changes in
the lending terms offered by banks and
in their credit approval criteria have also
encouraged greater demand.
Ferd Real Estate was actively involved in
the market in 2005 and considered many
possible investments. However, the
properties sold for higher prices than
could be justified by Ferd’s risk evaluation
and investment yield requirements,
and no purchases were made.
Residential real estate: The market for
new residential units was good in 2005
and is expected to remain sound in 2006,
although the market can scarcely support
any major price increases. New statistics
show that the underlying growth
rate for the population in the greater
Oslo area is higher than previously estimated,
reflecting increased movement
into the area, a higher birth rate and
longer life expectancy. Forecasts suggest
that demand will increasingly favour
reasonably priced larger residential
units, while the market for small, expensive
apartments will weaken.
FINANCIAL RESULTS
Ferd Real Estate generated operating
revenue of NOK 91.6 million in 2005 as
compared to NOK 193.2 million in 2004.
Operating profit for 2005 was NOK 55.6
million as compared to NOK 104.5 million
in 2004. In view of the pressured
conditions in the commercial property
market in 2005, the results for the year
are considered satisfactory.
REAL ESTATE MANAGEMENT, OPERATION
AND MAINTENANCE
Properties managed by Ferd Real Estate
were occupied by 37 tenants at the close
of 2005. New lease contracts were signed
in 2005 with 5 new tenants for total
space of 2 800 m 2 . Munkedamsveien 53b
achieved an increase in rent of around

From left: Kristin Opperud, Espen Danielsen, John Skogen, Trond Ottervig, Anders Kristian
Dahl and Jan Grønhaug.
20%, but the other properties saw little
change in rental levels.
Vacant commercial property accounted
for 3.2% of the total real estate portfolio
at the close of 2005 as compared to 2.9%
a year earlier.
The operation and maintenance of the
portfolio in 2005 proceeded in accordance
with the planned program, and
no major problems were experienced.
The Petersborg building at Ensjø is
being renovated following significant
fire damage in 2004. The building forms
part of the development plan for Ensjø
and it is likely that it will be let to a
public sector tenant for a purpose such
as a day centre, nursery or the like.
CORPORATE STRUCTURE
Over the course of 2005, Ferd Real
Estate incorporated each property in
its portfolio as a separate limited company.
These companies are owned
either by Ferd Eiendom AS, which is
part of the Ferd group, or by Ferd
Eiendom Holding AS, which is owned
directly by Ferd's owner and is not
included in the group's balance sheet.
This reorganisation was carried out in
order to create a clearer structure and
better allocation of risk. Ferd Real
Estate will continue to be responsible
for all the operational tasks and duties
involved.
STRATEGY PROCESS
The strategy process initiated in 2004
was continued in 2005, with a particular
focus on investment strategy. This
resulted in a number of improvements,
including systematic investment criteria
to be used both for evaluating projects
and when presenting them to the
Board. This ensures a unified approach
that makes it easier to compare different
projects.
ORGANISATION
Ferd Real Estate focuses on operating
with a small but effective team with
access to a well-developed network
of external professional expertise.
This team works closely with selected
property developers, project managers,
architects, real estate brokers and other
advisers.
Ferd Real Estate appointed an Investment
Manager in 2005, but other than
this, there were no changes in the team
of six full-time employees. However,
the residential property developments
now in progress require a great deal of
attention, and the business area regularly
reviews whether to recruit new
staff rather than buying in services.
COMMERCIAL REAL ESTATE PORTFOLIO
As at 31 December 2005, Ferd Real
Estate managed 5 properties representing
total space of ca. 58 231 m 2 owned by
Ferd Eiendom AS and managed a further
14 896 m 2 for companies owned by
Ferd Eiendom Holding AS. The weighted
remaining term of the lease contracts on
these portfolios is 3.1 and 3.5 years
respectively. The total market value at
the close of 2005 was NOK 830 million.
Ferd Real Estate sold the property
Hageveien 4 AS in Lillehammer in
2005. The purchaser took over a
long-term lease to Swix Sport. Other
REAL ESTATE PORTFOLIO
Ferd Eiendom AS Type of
Area m 2 property
Joh. H. Andresensv. 5 44 900 off/prod/wh
Gladengveien 14 5 177 off/wh
Munkedamsveien 53 B 3 760 off
Ensjøveien 23 B 3 014 off/prod/wh
Grevegården 1 380 off
Total 58 231
Weighted remaining lease
period Ferd Eiendom AS 3.1 years
Ferd Eiendom Holding AS Type of
Area m 2 property
Joh. H. Andresensvei 1 7 666 off/wh
Ensjøveien 12 B 4 019 off/prod/wh
Gladengveien 12 3 211 retail/off
Total 14 896
Weighted remaining
lease period Ferd
Eiendom Holding AS 3.5 years
Total for both companies 73 127
Weighted remaining lease
period for both companies 3.2 years
Commercial property 2005
NOK/m 2
800
760
720
680
640
Jan Mar May Jul Sep Nov
Market rents
Ferd’s vacancy %
Market vacancy %
59
12%
10%
8%
6%
4%
2%
0%

Munkedamsveien 53b.
disposals included the sale of a 50%
shareholding in Vassholmen Utvikling
AS and the sale of the fully let retail
units at the Bergensgaten 26 development
in Oslo, which marked the end of
this successful project.
RESIDENTIAL REAL ESTATE DEVELOPMENT
PORTFOLIO
Hovinveien 29-35, Tiedemanns site:
After a demanding process, Oslo City
Council approved planning permission
and the development agreement for
this project in June 2005. Advance sales
of units in the first stage of the development
will start on 12 February 2006
following extensive marketing.
The first stage comprises 84 apartments
and 8 “town houses” on two stories.
This development will provide 200
residential units in total.
The development is located on a previously
un-developed area on the edge of
what is known as Motor City in the
Ensjø district of Oslo, and this area is
due to be developed over coming years
as an attractive residential area within
The winning entry for the planning of Ferd’s sites at Ensjø.
60
easy reach of the centre of Oslo. The
Tiedemanns site is the first major project
of this process.
Other sites at Ensjø: The Lund & Slaatto
architectural practice won a competition
arranged by Ferd Real Estate for the
planning of the company's other sites
at Ensjø. The competition was arranged
in collaboration with Aspelin Ramm
Bolig AS, which owns adjacent sites.
The winning entry shows a range of different
types of housing arranged around
an urban main street, with surrounding
areas characterised by detached developments
set in open spaces. The plan
provides for development in stages. The
site of the tobacco factory is included in
the planned area, but it is envisaged that
production activities can continue in
parallel with the development for as
long as this is necessary.
The winning plan is fully compatible
with the municipal authorities outline
planning program for Ensjø, which
envisages a modern urban centre with
between 3 000 and 7 000 residential
units to be developed over a period of
15 to 20 years.
Ferd Real Estate is actively involved in
the Ensjø Group that represents the
parties involved in the area, and the
Managing Director of Ferd Real Estate
is the group's chairman.
Trondheimsveien 269, Bjerke Panorama:
A residential development project is
planned for the site, which is controlled
through an option agreement held by
Bjerke Panorama AS, a company in
which Ferd Eiendom AS and Realbygg
AS are shareholders with 70% and 30%
respectively. Proposals for outline planning
permission have been submitted
to the Oslo municipal authorities, and
the purchase will be finalised once the
proposal has been approved.
Selvaag Pluss: Ferd Eiendom AS became
an active partner in Selvaag Pluss
Eiendom KS in 2005. This partnership
builds and operates residential developments
that offer a range of services and
social meeting places in addition to
normal communal building services.
This concept is new for Norway, and its
target group is people with a sound
financial condition. The concept uses
industrial methods to allow realistic
pricing of the residential units. Selvaag
Pluss initially plans to develop seven
projects in Norway and one in Spain,
and it has already completed its first
project in Kristiansand.
The other partners in Selvaag Pluss are
the Selvaag group, which has invested
NOK 150 million, as well as Snefonn AS
and Skips AS Tudor, companies related
to the shipowning companies Bergesen
and Wilhelmsen, which in common
with Ferd Eiendomsinvest AS have
invested NOK 100 million each.
FUTURE PROSPECTS
Commercial property rental market:
Ferd Real Estate experienced a modest
increase in vacant space in its commer-

cial property portfolio in 2005, and the
maturity structure of the portfolio's lease
contracts does not indicate any increase
in vacancy in the next few years.
Purchase and sale of commercial property:
Since intenst rates are expected to
raise only moderately, commercial
property is expected to again be attractive
in 2006 for investors with a relatively
long-term view. This makes it
quite a challenge for Ferd Real Estate to
find investment properties that meet
its financial criteria. Even so, the business
area intends to work even more
intensively on building its portfolio of
commercial property for rental, and
this commitment is supported by the
appointment of the new investment
manager in 2005.
Residential property: Ferd Real Estate
expects another good year for the residential
property market in 2006.
Residential property prices are not
expected to grow as strongly as in 2005,
and it will be increasingly important to
offer realistically priced larger units in
good locations.
The residential projects currently being
developed by Ferd match these
requirements. The Ensjø district is
close to the centre of Oslo but offers a
sunny location with good views, as well
as having an infrastructure and open
spaces that give it an important competitive
advantage over other projects
in the same price class. Given the
Hovinveien 29-35, the Tiedemanns site.
underlying level of demand for residential
property, Ferd's residential developments
will be attractive to buyers,
even if interest rates increase to the
extent currently expected.
Olav H. Selvaag in Selvaag Pluss (left) and John Skogen and Espen Danielsen of Ferd Real
Estate with a model of a Pluss-project in Oslo.
61

Executive Management
JOHAN H. ANDRESEN, JR.
OWNER AND CHIEF EXECUTIVE OFFICER
BA, Dartmouth College, USA (1988)
MBA, Rotterdam School of Management,
the Netherlands (1993)
PREVIOUS WORK EXPERIENCE:
International Paper Co., USA
APPOINTMENTS: Member of the board:
Ungt Entreprenørskap, Oslo, Junior
Achievement Young Enterprise, Europe,
Civita – Senter for næringsliv and samfunn
AS. Member of the Board of
Representatives: Storebrand ASA.
Member of Corporate Assembly: Orkla
ASA. Advisory Board: CNBI’s board for
family-owned Enterprises and Active
Ownership, RSM Erasmus University
Advisory Board, and the Conference
Board, global counselor
JOHN HARALD HENRIKSEN
EXECUTIVE VICE PRESIDENT
– FERD INVEST
M.Sc, California State University,
Sacramento (1992), Certified Financial
Analyst, AFA (1999)
PREVIOUS WORK EXPERIENCE: Astrup
Fearnley (assistant portfolio manager),
Tiedemanns (portfolio manager)
APPOINTMENTS: Election Committee:
Otrum ASA, Scanrope ASA, Norman
ASA, Nordic Semiconductor ASA and
VMetro ASA
62
JOHN GIVERHOLT
CHIEF FINANCIAL OFFICER
B.Sc., Manchester University, England
(1976), Advanced audit diploma,
Norwegian School of Economics and
Business Administration, NHH (1979)
PREVIOUS WORK EXPERIENCE: Orkla ASA
(Vice President), Den norske Bank
(Executive Vice President), Norsk Hydro
(Deputy Chief Financial officer)
APPOINTMENTS: Member of the board:
Telenor ASA and Kongsberg Gruppen ASA
ERIK FAUSA OLSEN
MANAGING PARTNER – FERD VENTURE
M.Sc, Norwegian School of Management
(1992), Certified Financial Analyst, AFA
(1996)
PREVIOUS WORK EXPERIENCE:
Deloitte & Touche (corporate finance, due
dilligence, financial auditing), Tiedemanns
(corporate finance, strategy, investment
activities)
APPOINTMENTS: Chairman of the
Investment Committee: Energy Ventures AS.
Chairman of the Board: Forbrukerforsikring,
Energy Ventures II AS. Member
of the Board: Teknoinvest VII, Bone
Support AB and Nacre AS
BJØRN FLATGÅRD
PRESIDENT AND CEO – ELOPAK AS
M.Sc Chemical Engineering, Norwegian
University of Science and Technology,
NTH (1973), BA, Norwegian School of
Management, BI (1981)
PREVIOUS WORK EXPERIENCE: Norgas AS
(marketing/development manager),
Norweld AS (Vice President), AMA AS
(Managing Director), Nycomed/Hafslund
Nycomed AS (Vice President), Nycomed
Pharma (President)
APPOINTMENTS: Member of the board:
Aker Kværner ASA, Aker ASA and
SalMar A/S
JOHN SKOGEN
EXECUTIVE VICE PRESIDENT
– FERD REAL ESTATE
Construction engineer, GIH (1981)
BA, Norwegian School of Management
(1985) M.Sc civil engineer Norwegian
University of Science and Technology
(1988)
PREVIOUS WORK EXPERIENCE:
Multiconsult AS (consulting engineer), AS
Høyres Hus (General Manager), KLP
Eiendom AS (Technical Manager), Posten
Eiendom (Vice President)
APPOINTMENTS: Chairman of the Board:
Malerhaugveien Utvikling AS, Vassholmen
Utvikling AS, Foreningen Ensjøbyen.
Member of the Board: Hasle Torg AS,
Selmer Eiendom AS and Selvaag Pluss
Eiendom KS

Addresses
FERD AS
Strandveien 50
P.O.Box 34, NO-1324 Lysaker
Telephone: +47 67 10 80 00
Telefax: +47 67 10 80 02
E-mail: post@ferd.no
www.ferd.no
ELOPAK AS
Elopak Group
Headquarters
P.O.Box 24, NO-3431 Spikkestad
Besøksadresse:
Grevegården 24, NO-1369 Stabekk
Telephone: +47 31 27 10 00
Telefax: +47 31 27 15 00
E-mail: elopak.hq@elopak.no
www.elopak.com
ELOPAK CORPORATE OFFICES
& MARKET UNIT NORWAY
P.O.Box 24
Industriveien 30, NO-3430 Spikkestad
Telephone: +47 31 27 10 00
Telefax: +47 31 27 10 10
E-mail: elopak.co@elopak.no
SWIX SPORT AS
Serviceboks
NO-2626 Lillehammer
Telephone: +47 61 22 21 00
Telefax: +47 61 25 23 28
E-mail: firmapost@swixsport.no
www.swixsport.no
MAKING PORT: Approach lighthouses are the third
category alongside coast lighthouses and navigation
lights, and mark the approach to ports. Vardø lighthouse
combines this function with those of a navigation
light. The lighthouse building is quite unusual,
with a 20 m high four-cornered tower clad in asbestos
sheeting. The current building dates from 1959 and
replaces the original 1896 tower.
FERD PRIVATE EQUITY
Strandveien 50
P.O.Box 34, NO-1324 Lysaker
Telephone: +47 67 10 80 00
Telefax: +47 67 10 80 01
E-mail: post@ferd.no
www.ferdpe.no
FERD INVEST
Strandveien 50
P.O.Box 34, NO-1324 Lysaker
Telephone: +47 67 10 80 00
Telefax: +47 67 10 80 01
E-mail: post@ferd.no
www.ferd.no
FERD VENTURE
Strandveien 50
P.O.Box 34, NO-1324 Lysaker
Telephone: +47 67 10 80 00
Telefax: +47 67 10 80 01
E-mail: venture@ferd.no
www.ferdventure.no
FERD REAL ESTATE
Strandveien 50
P.O.Box 34, NO-1324 Lysaker
Telephone: +47 67 10 80 00
Telefax: +47 67 10 80 02
E-mail: eiendom@ferd.no
www.ferd.no
63

OLDEST. The first Norwegian lighthouse
dates back to 1655 at Lindesnes, which
is the most southerly point of mainland
Norway. Kong Fredrik III granted Pouell
Hansønn of Christiansand the right to
establish a lighthouse financed by charges
on shipping using the ports between
Bergen and Båhuslen. This did not prove
to be a commercial success, and the lighthouse
was closed after just a few years.
Lighthouse operation started again in
1725, but this time with two open beacons
burning – one at the headland itself
and one a little further west at Markøy.
This was meant to avoid confusion
between Lindesnes and the light at
Skagens Odde! A coal-fired enclosed beacon
came into service in 1822 and was
used until 1854, when a new light with
a lens system was installed. The lighthouse
tower in use today is a 60 m high
cast iron tower that dates back to 1915,
and it still uses the lens system from
1854. The remains of the coal-fired beacon
are still visible and can be seen on
the left of the picture.
64

Ytterøyane
Slåtterøy
Lista
Verdens Ende
Homborsund
Lindesnes
Færder
Langøytangen
Skomvær
Nyholmen
Slettnes
Makkaur
Vardø
A LONG NIGHT'S VOYAGE TO PORT.
Even in today's world of satellite navigation,
lighthouses still play a vital role – ensuring
that both essential shipping traffic and
adventurous leisure sailors can find their
way safely home. The map shows the
location of the lighthouses described on the
previous pages. Readers who would like to
know more about these and the rest of the
hundred or so lighthouses in Norway should
consult the Norwegian Lighthouse
Association website at www.fyr.no

Nyholmen lighthouse was shut down in 1907, but the building still stands.
FERD | Strandveien 50, P.O. Box 34, NO-1324 Lysaker | Telephone +47 67 10 80 00 | Telefax + 47 67 10 80 02 | E-mail: post@ferd.no | www.ferd.com
Design: Signatur AS • Text: Ferd and Hans Gudmund Tvedt • Photo: Samfoto, Lindesnes fyr.no, Vest-Agder Fylkeskommune and Fotograf Schjelderup • Print: Gan Grafisk