Page 26 - Nemko - Annual performance - 2023
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(3.7 million) for Nemko Group AS and NOK 54.2 complexity related to regulatory requirements,
million (222.8 million) for Nemko Group. The products, customers, and end-user demands
investments mainly involve buildings, laboratory strengthens the need for third-party actors like
equipment, either as an upgrade of existing Nemko. The market and end-users demand that
equipment or the purchase of new equipment traded products are safe and meet energy and
to expand the company’s service offerings. The environmental requirements. This represents
company’s ability to self-finance investments opportunities for Nemko.
is satisfactory. The company and the group Operational Risk: Nemko operates as an
are exposed to exchange rate fluctuations. independent third party to the company’s
Receivables are also exposed to credit risk. customers. Loss of reputation is considered
Furthermore, fluctuations in the general interest Nemko’s greatest threat, in addition to loss of
rate level will affect interest expenses and income accreditations and quality deviations. Through
on loans and bank deposits. The systematic management and focus on risk-driving elements
work on the collection of accounts receivable as well as comprehensive global insurance
has continued in 2023. Based on this, provisions coverage, operational risk is considered reduced
for doubtful debts are considered sufficient. but still relevant.
Nemko Korea, as part of the group, has entered
into agreements with banking partners for Financial Risk: Although Nemko Group AS
interest rate and currency swaps to neutralize operates with the Norwegian krone (NOK) as its
the interest rate and currency exposure related functional currency, conducting business outside
to loans from external banks. With this, the of Norway means the company is also exposed
company’s risk related to currency exposure to fluctuations in other currency exchange rates
is considered moderate. The board considers against the Norwegian krone (NOK), mainly the
Nemko’s financial position to be satisfactory. The euro (EUR) and the United States dollar (USD).
group’s total assets at the end of the year were Nemko faces currency risk related to both
NOK 1,001.9 million (965.4 million). The equity monetary items on the balance sheet and the
ratio as of December 31, 2023, was 54 percent translation of net assets in foreign operations.
(51 percent). Nemko Group AS’s cash balance The group’s returns on liquidity placements are
as of December 31, 2023, was NOK 30.4 million affected by changes in the interest rate market.
(41,2 million), while the total for the group was Nemko Group AS currently operates with a
NOK 137.5 million (140.4 million). liquidity investment strategy where the company
is classified as a long-term investor, seeking
Appropriation of Surplus: The annual profit stability and focused on preserving capital. The
in Nemko Group AS after tax amounts to NOK company’s liquidity risk is primarily associated
49.1 million (25.0 million). The annual profit in with ongoing operations and investment
the group after tax amounts to NOK 34.1 million placements.
(8.0 million). The board proposes the following
appropriation of the annual surplus in Nemko Organization
Group AS: NOK 49.1 million is transferred to
retained earnings.
The Board: In 2023, 6 board meetings were
Market Risk: Nemko is constantly exposed held. The composition of the board consists
to market risk, and there remains a degree of four women and three men, of which five
of uncertainty regarding general economic are appointed by the STIFTELSEN NORGES
developments, especially concerning global ELEKTRISKE MATERIELLKONTROLL NEMKO
versus regional trade, changes in regulatory and two are elected among the employees. It
frameworks, as well as significant price is confirmed that the company has directors’
increases and issues in supply chains. Increased and officers’ liability insurance. The insurance
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