Sustainable
growth
ANNUAL REPORT 2014
KEYFIGURES01
Contents
Key figures
201420132012 20112010
MNOK
HoReCa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Flowers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Service market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
International. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
TOPIC: Corporate social responsibility and ethics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Quality and the environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Corporate social responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Sponsorship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
HR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
TOPIC: Expertise and marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Corporate governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Report from the Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Income statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Balance sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Statement of cash flow. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58
Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59
Auditor's report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75
12,509.8
557.2
559.4
409.1
10,772.0
478.0
506.5
344.7
9,960.0
446.5
470.5
327.0
9,006.8
395.9
401.2
259.1
2,580.4
1,934.2
1,051.4
900.2
2,563.1
2,308.5
1,674.4
997.5
557.1
2,428.4
1,271.5
1,830.4
854.1
242.1
2,005.6
1,115.9
1,701.0
761.4
231.0
1,824.5
1,130.3
1,606.4
742.8
246.8
1,747.1
684.1
-7.7
635.8
2.2
573.8
28.6
540.0
24.0
443.6
5.3
75.5
3.9
6.8
26.5
23.3
24
34
9
5.3
69.0
4.7
8.0
37.6
25.0
23
30
8
5.3
91.3
4.8
9.7
47.0
27.5
22
31
9
5.0
93.2
4.9
9.8
48.1
27.0
21
30
8
5.0
91.9
4.7
8.7
40.4
27.1
20
26
8
4.6
LIQUIDITY
Changeinliquidassets
Netfinancialitems
KEY FIGURES
Liquidityratio(%)
Profitratio(%)
Inventoryturnoverrate
Totalreturn(%)
Gearingratio(%)
Customerdayssalesoutstanding(days)
Supplierdayspayableoutstanding(days)
Inventorystorage(days)
Salesperfull-timeequivalent
1
2
3
4
5
6
7
8
9
Printed by: RK Grafisk AS
DEFINITIONS – KEY FIGURES
1. Currentassetsasapercentageofcurrentliabilities
2. Operatingprofit/loss+financialincomeasapercentageofoperatingrevenues.
3. Operatingrevenues/(assets-currentliabilities-deferredtaxliabilities-interest-bearing
liabilities)
4. Profitratioxinventoryturnoverrate
5. Equity31 Decx100/totalassets
OPERATING REVENUES (MNOK)
SALESGROWTH
15000
12000
9000
6000
6.
7.
8.
9.
PROFIT MARGIN BEFORE TAX
2014
5%
4%
2011
2012
3%
2%
3000
1%
0
0%
2010
2011
2012
2013
2014
Making
Norway
fresher and
healthier.
Tradereceivablesaverageof1 Janand31 Decx360/(Operatingrevenuesx1.15)
Tradepayablesaverageof1 Janand31 Decx360/(Costofgoodssoldx1.15)
Inventoriesaverageof1 Janand31 Decx360/Costofgoodssold
Operatingrevenues/Full-timeequivalents
3.6
TOPIC: Environmentally friendly transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
Grocery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24
13,522.3
492.8
485.1
344.4
4.47
From field to fork . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
4.73
Import goods flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
4.72
Norwegian goods flow. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
4.45
Management review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
BALANCE SHEET
Non-currentassets
Currentassets
Equity
Long-termliabilities
Currentliabilities
13 522 8.1%
TOPIC: Environmentally focused production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
12 510 16.0%
Words from the CEO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08
Photo: Ole Walter Jacobsen, Veslemøy Vreskår, Morten Brakestad, Rune Kongsro, Sara Johannessen, VI.P, Nature’s Pride, BAMA archive.
The BAMA model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06
10 772 8.0%
History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 05
9 960 10.6%
2014 highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04
INCOME STATEMENT
Operatingrevenues
Operatingprofit
Profitbeforetax
Netprofitfortheyear
9 007 7.7%
This is BAMA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .02
Design: Nucleus AS
Key figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 01
2010
2013
2014
Consumergrowthandefficientand
dynamicworkalongthevaluechain
haveresultedinsolidsalesgrowth
inallthebusinessareas.TheGroup
postedtotalsalesofBNOK13.5,which
equatestogrowthof8.1percent,and
returnedanoperatingprofitofMNOK
485.1. Knowledge,renewalandstrategicfocusareaswillbekeydriversof
futuregrowth.
02
03
BUSINESSOPERATIONS
This is BAMA
BAMA is the Norwegian market leader within fresh fruit, vegetables, berries and
potatoes. The company is also gaining a steadily increasing market share within flower
sales. In 2014 the BAMA Group employed 2,000 staff in Norway and posted consolidated sales of BNOK 13.5.
BAMAisoneofNorway'soldestprivately
ownedtradingcompanies,andhasbeen
inoperationforalmost130years.
Tradingwithmorethan1,300suppliers
onallcontinents,todaythecompanyis
aglobalplayerwithaprobablywider
sphereofoperationsthananyother
Norwegianbusiness.
Weassumeend-to-endlogisticsresponsibilityalongthevaluechain,fromthe
supplierinNorwayandabroadallthe
waytoourcustomersinNorway.
OUR VISION
Asacommercialplayer,BAMAalsoaims
tostimulategrowthintheconsumptionoffruitandvegetables,inlinewith
officialNorwegianhealthandnutritional
policies.Thisconfersuswithsignificant
socialresponsibility,butalsooffers
opportunities.Byactingtransparently
andhonestlyineverythingwedo,and
complyingwithourvisionofmaking
Norwayfresherandhealthier,weshall
helptoimprovesociety,whereahealthierdietandphysicalactivityaretopofthe
agenda.
2014 IN BRIEF
BAMAturnedinapositiveperformance
in2014inallareaswithwell-established
growthinconsumptionoffruitand
vegetables.SalesofBNOK13,5equateto
valuegrowthof8.1percent,andresulted
inanoperatingprofitofMNOK492.This
isinlinewithourtarget.
Like-for-likevolumegrowthclosedon2.6
percent,marginallyshortofthecompany'stargetof3percent.
Theseresultswereachievedontheback
ofastrongfocusonallproductgroups,
withinallbusinessareasandacrossthe
entirevaluechain.
STRUCTURE
BAMAisstructuredintosixbusiness
areas:Grocery,HoReCa,Industry,Service
market,FlowersandInternationalbusiness.Theseareasareinturnorganised
intoanumberoflimitedcompanies.
Purchasingandlogisticsactivitiesand
centralstafffunctionsareorganisedin
theparentcompany.
MAIN OBJECTIVES
• BAMAshallbe,andbeperceivedas,
thebestsupplierandpartnerforits
customers.
• BAMAshallbeagrowthdriverinthe
Norwegianmarket
• BAMAshalldeliverproductstoits
customerswithanabsolutefocuson
qualityinallstagesofthevaluechain,
andpossessuniqueknowledgeabout
suppliersandgoodssupply.
• BAMAshalladoptasocietalposition
intheNorwegianmarketthathelpsto
boostthefocusonhealthyeatingand
physicalactivity.
• BAMAshallbeadriverofandmodel
businessforsustainabledevelopment
intheenvironmentandsocialresponsibilitywithinthecompany'sproduct
areas.
CORE VALUES
Creatingvalueforourcustomersunderpinsourentirebusiness.Ouremployees
takeprideintheirdailywork,whichis
characterisedbythevaluesofHonesty,
IntegrityandFairness.
GROCERY
TheGrocerybusinessareaisorganised
andoperatedthroughtwoseparate
entitieswiththevariousgrocery
systems.
HORECA
BAMAHoReCaisamarketleader
withinthemarketinganddistribution
offruitandvegetables.Inrecentyears
otherproductgroupssuchasfresh
meat,chickenandaboveallseafood
havecontributedarisingshareof
sales.Themarketisservedthrough
threesaleschannels:HoReCa(hotel,
restaurantandcatering),thepublic
sectorandthebusinessmarket.
INDUSTRY
BAMAIndustrydevelopsandproduces
freshlyprocessedproductsforBAMA’s
HoReCaandGrocerybusinesscustomers.
Theproductrangevariesfromready-cut
salads,fruitandvegetablestofreshor
processedvegetablesandpotatoproducts.Thisbusinessareaisalsoresponsiblefortheproductionoffreshmeal
solutions.
FLOWERS
BAMA’sactivitieswithinflowersare
operatedthroughthefollowingchannels:BAMABlomsterAS(groceryand
servicemarket)andBaReBlomsterAS
(grocery),FlorissDriftAS(specialist
trade)andBAMABlomsterTrading
(purchasing).ThecompaniesareincorporatedinBAMABlomsterHolding,
whichisownedbyBAMAGruppenAS.
SERVICE MARKET
BAMAServiceMarketsuppliesfruit
andvegetables,drinks,mealsolutions
andsandwichproductstothekiosk,
petrolstationandservicemarket.The
businessareaisnowformallyintegratedintoBAMAHoReCa.
BAMA INTERNATIONAL
BAMAInternationalcomprisesanumber
ofwhollyorpartlyownedcompaniesin
Europe:Nature’sManagementB.V,Nordic
LunchABinSwedenandArcticSpòlkâ
Zo.OinPoland.Thecompanieshavedifferentfocusareasandareincorporated
intoBAMA'ssystemsindifferentways
04
05
HIGHLIGHTS
2014 highlights
History
2014
The GRESS Group names BAMA HoReCa
Best Direct Supplier.
January
BAMA HoReCa carries off Nordic Choice Hotels'
Sustainable Focus prize.
Record sales of organic carrots, + 32 per cent.
February
BAMA names apple producer VI.P from the Tyrol in Italy
"International Supplier of the Year".
matsvinn.no is launched, with the remit of
reducing food wastage in the food industry.
BAMA is one of the participants.
March
BAMA moves into a new head office and terminal site at
Nyland Syd in Groruddalen.
April
BAMA becomes new partner in EAT, a science-, politicsand commerce-based forum tasked to identify solutions
for a healthy and sustainable food industry.
May
Interflora and BAMA Blomster Holding enter into
collaboration agreement.
June
BAMA participates as dietary consultant in Norwegian Health
Minister Bent Høie's industry group reviewing public health.
Record harvests of new potatoes.
July
New, wide-ranging campaign for Norwegian products.
10-year anniversary of the Bendit Cup, 450 children step
on to the turf at the Ullevål Stadium in Oslo.
August
BAMA Industry starts expansion of potato
production site in Moss.
The Norwegian Ministry of Agriculture allows the
import of apple and pear trees.
September
Major environmental gains following optimisation
of external packaging for green salads.
Cucumber producer Kristian Guren from Rygge named BAMA's
Supplier of the Year.
November
"Food as medicine" seminar arranged for public sector HoReCa
businesses.
The Norwegian Directorate of Health’s report on "Norwegian
diet trends in 2014" reveals a slight decrease in the consumption of vegetables, but an increase in fruit consumption.
December
Physical activity included as new focus area in authorities'
official dietary recommendations.
2015
1886Timberbusinessestablishedbyfounder
ChristianMariusEmilMatthiessen.
1905Agreementtosupplywoodenboxesto
transportbananasintheUKandimport
bananastoScandinaviasigned.Thefirst
bananasarriveinNorway.
1915 Bananaimportsachieverapidgrowth.
Ownbranchesestablishedinkeycities.
Theexpression“Banan-Matthiessen”
entersthevernacular.Importofother
southernfruitsincludingorangesand
grapesstarts.
1920 Importofbananasderegulatedin1919.
Thecompanyexpandsstronglyandoutgrowsthecapacityoftheripeningsheds
inStiftsgårdenandStatholdergårdenin
Oslo.
1930 Fyffesbananasareingreatdemandand
anewandmodernripeningshediscompletedatFilipstadkaiainOslo.
1940 Allimportoffruitandvegetablesceases
duringWorldWarII.Otherproducts
tradedtosurvive.Thenewripeningshed
atFilipstadisdevastatedbyanexplosion
in1943,butrebuiltin1946.
1950 Currencyrestrictionsintroducedand
Norwaybecomesabanana-freezonefrom
1947.Thecompanystartssellingother
goodscategories.Marketequilibriumis
establishedin1957.Othertropicalproductsincorporatedintorange.
1960 Importofbananasderegulatedafter20
years’scarcity.Thecompanygoesnationwide.Norwegianproductionincluded
intherange.Marketcharacterisedby
strongcompetition.
1970 Majorconstructionactivityandupgradingoflocalterminals.Strongfocuson
competence-raising.RegulatoryframeworkstronglyimpactedbyNorwegian
agriculturalpolicyandmarketaccess
securedthroughactiveorganisation
business.
1905
The first bananas arrive
in Norway.
1980 ThecompanychangesitsnametoBAMA
GruppenAS.Marketingandproduct
trainingsteppedupProducerorganisationBAMAGrøntestablished.
1990 "5-a-day”campaignlaunchedandmajor
sponsorshipagreementsigned(1993).
BAMAlaunchesfreshlyprocessedsalads.
MajormarketchangesleadtocollaborationbetweenGartnerhallenandBAMA.
Long-termpartnershipagreements
enteredintowithNorgesGruppenand
Rema1000.
2000 Anniversarycampaignfor100yearsof
bananasinNorway,"Benditlikeabanana",suppliesmarketwith200million
bananasin2005.Brennpunktputsthe
campaignunderacriticalspotlight.
Establishmentofinternationalbusiness
throughNature’sPrideandArcticSpòlkâ.
BAMAacquiresNordicLunchin2007.
Launchoffreshdrinksproductsand
ready-to-eatavocadosandmangosin
2008.
2010BAMAacquiresmajoritystakeinNature’s
ManagementBV,theNetherlands.
TheFoodChainAssessmentCommittee
presentsitsreport.
BAMAcelebratesits125-yearanniversary
in2011.
Foundationstonelaidfornewheadoffice
andterminalin2012.
NewterminalforNature’sPridecompletedinNovember2013.
1915
Import of other southern
fruits including oranges
and grapes starts.
1950
Currency restrictions
make Norway a
banana-free zone
from 1947.
200million
2005
"Bendit like a banana"
anniversary campaign
supplies the market with
200 million bananas.
06
07
TOPIC
The category fruit and vegetables needs renewal in order to grow. This renewal must
be founded on insight and knowledge. BAMA's role is to be an initiator of value chain
collaboration in order to ensure that the necessary knowledge is as accessible as
possible and optimally utilised in all stages. This will enable us to drive innovation and
efficiency improvements, with the aim of achieving sustainable growth and higher
consumption. We call our approach to this work "the BAMA model".
We share knowledge
and expertise along
the entire value
chain
OneimportantgoalforBAMAistohelpensurethatourcustomersachieveabove-averagegrowth,i.e.thatfruitandvegetables
achievehighergrowththanotherfoodcategories.
fruitandvegetables.Thisallowsustodevelopnewproducts,
betterpackaging,efficientlogisticssolutionsandtargeted
marketing.
For15yearsBAMAhasthereforeadoptedadynamicandvaluechain-basedmodelthatreflectsouraimofaholisticapproach.
Thisisamodelinwhichdetailedplanningandpredictability
areintendedtoresultinlong-term,sustainableproductionand
profitabilityinallstages.
Let'sillustratethiswiththefruitthatisperhapssynonymous
withBAMA,thebanana.Bananasareouroldestproduct,and
thelargestfruitproductmeasuredinkgs.Wehaveselectedfour
keyareasforthiswork,whicharepresentedinthereportabove
anddemonstratehowweworkalongthevaluechain:
Wecollaboratewithskilledandinnovativeproducers,with
leadingdevelopmentandresearchbodiesandwithcustomers
whoappreciatethevalueofofferinganextensiveselectionof
Environmentallyfocusedproduction,Environmentallyfriendly
transport,Corporatesocialresponsibilityandethics,and
Knowledgeandmarketing.
THE BAMA MODEL:
FROM FIELD…
Aseed,aplantorabulb
–ofthehighestquality.
INNOVATION AND
KNOWLEDGE
RESEARCH AND
DEVELOPMENT
TRANSPORT AND
THE ENVIRONMENT
CORPORATE SOCIAL
RESPONSIBILITY
MARKETING AND
KNOWLEDGE
Weconstantlykeepabreast
oftrends,whichwecaterfor
throughproductdevelopment
andinnovation.
Newproductionmethodsand
betterplantmaterialsareraising
productqualityandthusdriving
consumptiongrowth.
Newtechnologiesandtransport
methodsaresecuringproduct
qualityandsparingtheenvironment.
AsamajorplayerinNorway,
tradingin80countries,theentireorganisationassumesmajor
obligations–eachandeveryday.
Improvedavailability,inspiration
andincreasedknowledgeboost
consumption.
PRODUCER
MARKET ACCESS
ETHICAL TRADING
AVAILABLE AND EXPEDIENT
QUALITY AND TASTE
Dedicatedandlong-termpartnerswithhighlevelsofexpertise.Thisprovidespredictability
andgrowthforthevaluechain.
Climatevariationsareresulting
inunstableandunpredictable
production,whichnecessitates
continuousmonitoringofthe
market.
Ourethicalguidelinesobligeus
–bothindailytransactionsand
indealingswithsupplierswho
produceourproducts–toensure
thatthewayweconductbusiness
complieswithsignedagreements.
Increasedavailabilityofhealthy
andpracticalproductssimplify
theconsumer'sbusyworking
day.
Developproductsofhigher
quality,morenutritionand
bettertaste.
CONCEPT DEVELOPMENT
Atargetedfocusonexpertise
enhancementandproduct
knowledgeinordertocaterfor
emergingtrends.
CONSUMER TRENDS
AND NEEDS
Health-consciousconsumers
prioritisequalityandselection
aheadoflowprices,andprefer
short-travelledfood.
…TO FORK
Taste,nutritionand
well-being
08
09
WORDSFROMTHECEO
170
BAMA
168%
160
150
NORWAY
138%
130
­ OLUME­GROWTH,­
V
FRUIT­AND­VEGETABLES­
120
110
2014 was another good year for BAMA, characterised by growth in our focus areas.
"This is an incredible achievement bearing in mind the major development and realignment processes that have been underway. We have a culture and an ability to
get things done of which we can rightly be proud," comments CEO Rune Flaen.
Thelast20yearshavebeenonelong
journeyofgreenachievementforthe
company.Oneimportantdriverof
growthhasbeenanefficientlong-term
modelforvalue-chaincollaborationthat
createsthenecessarydynamicstodevelopthemarkets.Amodelthatnurtures
highlevelsofexpertisealongtheentire
valuechain,fromfieldtoforkandallthe
waybackagain.
Wehavesystematicallyaccumulatedthis
expertiseinthevaluechainandintegratedthisintoourworkmethodology.
Ouremployeespossessuniqueexpertise
whichisactivelysharedthroughoutthe
organisation.Consequently,wearewell
equippedtohandlebothgrowthand
realignments.
Productdevelopmentandlaunchesof
freshandhealthyproductsarecontributingtothegrowth.Developmentsarealso
beingdrivenbydeterminedcustomers
andhealth-conscious,knowledgeable
consumers.Thishashelpedustodeliver
inaccordancewithourgoalseachyear.
Since1997thecompanyhasenjoyeda
closeanddynamicvalue-chaincollaborationwithGartnerhallen,whichis
Norway'slargestproducerorganisation.
Oneofourexpressgoalsistoincrease
thequotaofNorwegianproductsinour
system.Withcumulativevaluegrowth
inexcessof200percentintheproducer
stageduringthisperiod,thereisnodoubt
thatwearemovingintherightdirection.
ACTIVE CONTRIBUTOR TO SOCIETY
Thesizeofboththedomesticandinternationalmarketforfruitandvegetables
andotherfreshproductsconfersuswith
asignificantsocialresponsibility.
Thegrowthinconsumptionoffruit
andvegetablesinNorwayhasbeenin
markedcontrasttodevelopmentsinthe
restofEurope.Whileconsumptionhas
steadilydwindledintheEUoverthelast
fiveyears,theoppositehasbeenthecase
inNorway.
However,evenwithastronghealthtrend
andgrowthinconsumptionoffruitand
vegetables,societyalsohasa"darkside".
Excessweightandobesityareemerging
asNorway'sgreatesthealthchallenge.
Withtheaveragefifteenyear-oldnow
moresedentarythantheaverage80-year
old,inactivelifestylesareagrowing
problem.Forecastsindicatethatthis
trendissettocontinueunlesswereally
dosomethingtohelp.
Ourvisionisinplace;however,aspartof
thecompany'snewstrategicplatformwe
havedecidedtoaddressthischallenge
byadoptinganactivesocietalpositionin
ordertohelptoimprovethegeneralpublic'shealth,throughanincreasedfocus
onhealthydietsandphysicalactivity.
BAMAsupportsandactivelyparticipates
intheMinistryofHealth'sandthehealth
authorities'initiativeintendedtoidentify
effectivesolutionstoachievethegoalof
reducingdiet-relatedlifestyleillnesses.
ThisisconsistentwiththeWorldHealth
Organization'sgoals,towhichNorway
subscribes.
ThetargetsinNorwayaretohalvesalt
intake,reduceintakeofsaturatedfat
by35percent,reducesugarintakeand
increaseconsumptionoffruitsandvegetablesby25percent.
NEW COLLABORATION MODEL
Weareincreasinglyfindingthatconsumersarecommittedtotheenvironment.
Wearealsonoticingthatknowledgeable
consumersarebuyingandeatingmore
fruitandvegetables.Consequently,we
areprioritisingtargetedmarketinginitiativesandknowledge-basedmarketingof
fruitandvegetables.Infuturewewilluse
allavailablemediasurfacesandarenas
wherewearerepresentedtoencourage
peopletoadopthealthierandbetter
diets.Andweshallhighlightourenvironmentalworkthroughtargetedmeasures
laiddowninadedicatedstrategy.
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
100
2003
Strategically positioned
for growth
140
Percentage development, fresh fruit
and vegetables.
Source: The Norwegian Fruit and Vegetables Marketing Board (OFG)/BAMA
tocommunicateabouthealth,well-beingandactivelifestyles.TheNorwegian
FootballAssociationhasanenormous
reachwithandinfluenceonfootballing
familiesandothersportsenthusiasts
acrossNorway,andengagesdedicated
sportspersonalitiesashealthambassadors.TheEATInitiativeiscontributing
global,academicandscientificresources
thatallowustomeasurethelong-term
effectoftheprojectsweimplement.
Theprojectislong-terminnature,and
intendedtohelptocreateanew,differentapproachtobuildingahealthiersociety.Itwillalsobeanimportantforumfor
identifyingsolutionsforahealthyand
sustainableglobalfoodindustry.Naturally,everythingisalsoinplacetoensure
thatthisalsohelpstoboostconsumptionoffruitandvegetablesandfuture
growthintheNorwegianmarket.
Dedicatedemployeesandastrong
organisationalculturehavebeenkey
driversofBAMA'sdevelopmentoverthe
years.Wearethereforemakingarrangementstoensurethatallemployeeslearn
aboutthevalueofmaintainingtheir
ownhealth,toallowthemtoactasgood
ambassadorsandrolemodels.
Ortoputitanotherway:
"Wepractisewhatwepreach"
However,onitsownthiswillnotbe
enough.Wehavealliedourselveswith
twopartnersinthisimportantwork,
aspartofanewcollaborationmodel.
Togetherwithourlong-termcollaborationpartners,theNorwegianFootballAssociationandtheEATInitiative,wehave
establishedtheproject"EatMove.Sleep".
Thiswillbeastrategicalliancewiththe
requisiteexpertise,credibilityandpower
Rune Flaen
CEO
10
11
TOPIC
SUSTAINABILITY
IN ALL STAGES
THE DOMINICAN
REPUBLIC (Fairtrade)
We import all our bananas from South
America. Together with our suppliers,
we work extensively in all these countries, and take responsibility for ensuring that our production is performed
in the most environmentally friendly
and sustainable manner possible. All
our suppliers are obliged to comply
with international GLOBAL GAPs (Good
Agricultural Practices) standard for
sustainability and food safety within
farming and production.
We make sure we look after the
food we produce along the entire
value chain in order to ensure that
as much as possible of the food
we produce is actually eaten.
COSTA RICA
ECUADOR
REDUCED IMPACT
Our supplier Dole is taking a number of environmental measures relating to banana
production. The company's sustainability strategy has four main pillars:
A REDUCED CARBON
FOOTPRINT better
refrigeration systems,
environmentally
friendly fertilisers,
forest planting etc.
WATER MANAGEMENT
less artificial watering,
reuse of packaging etc.
SOIL CONSERVATION
organic fertilisers,
restricted cultivation,
crop rotation, coverage
etc.
RECYCLABLE PACKAGING AND WASTE
REDUCTION
"Reuse or Recycle" policy, biologically degradable packaging, etc.
MAKING MORE OF BANANAS
We make sure we look after the food we
produce along the entire value chain in
order to ensure that as much as possible
of the food we produce is actually eaten.
It is not sustainable to throw away food.
So when it comes to bananas, for example, Dole uses the entire banana bunch.
Bananas are allocated into four categories, from premium to budget.
1 - Premium
2 - Quad pack
3 - Consumer & cabana
4 - Singles
Y
N
L
L
O
I
A
T
T
ENVIRONMEN
C
U
D
O
R
P
FOCUSED
12
13
MANAGEMENTREVIEW
Confirmed trends
presenting major
opportunities
430
410
410
390
390
370
370
350
350
2013
2012
2011
2010
2009
2008
310
2007
2013
310
330
2006
330
Source: Norwegian Directorate of Health 2015 (less wastage)
430
Source: Freshfel 2015
450
inthemarketstructureandgeneralmajorpricecompetitionalsocharacterised
themarketin2014.Thankstoamajor
focusonfruitandvegetablesatourcustomers,thisproductgroupisproducing
greatergrowththantheaveragegrowth
inotherproductgroups.
HoReCaturnedinaweakeryearthan
expected.Thiswasattributabletoseveral
factors,includingadifficultreorganisationinconnectionwiththecoordination
andrelocationofthebusinessesinthe
OsloareatoNylandSyd,andthelossof
somecustomers.However,highservice
levels,coupledwithclosedialogueand
efficientcollaborationwithcustomers
resultedinacknowledgementsfrom
severalcustomers.
BAMAIndustry,whichproducesand
deliversfreshlyprocessedandsandwich
products,generatedgoodsalesgrowthin
2014.Productdevelopmentandlaunches
ofseveralsaladandvegetableproducts,
TheGroup'sgrocerysystemsdelivered
anotheryearofstronggrowth.Changes
450
2012
Atle Beyer, G
roup
directorIndustry,Quality
andEnvironment.
Wenche Holen,
GroupdirectorFlowers
andStrategicProcesses.
ThegrowthpotentialforBAMA'sproduct
groupsisthereforesignificant,withthe
opportunitiesthisprovidesforgrowth
movingforward.
ACROSS-THE-BOARD IMPROVEMENTS
Theyearunderreviewsawpleasingdevelopmentsinmostbusinessareas.
Interestinhigh-qualityandhealthyfood
isalsogrowing.This,togetherwithour
targetedandsystematicfocusontaste,
healthandknowledgeconveyance,has
beenanimportantdriverofrisingconsumption.
2011
Øyvind Briså, Group
directorGoodsFlow,
PackagingandLogistics.
However,despiterising35percentover
thelast20years,consumptioninNorway
remainsbelowtheauthorities'official
dietaryrecommendations."Fiveaday"is
infactcurrentlyjustunder"Fouraday",
or385grams,tobeprecise.
2010
Odd Lindstad Johansen,
Groupdirector
HoReCa,ServiceMarket,
In-houseLogisticsand
Property.
BAMA'soverallvolumegrowthforfruit
andvegetablesfor2014closedon2.6per
cent.Astronghealthtrendisreflected
insignificantgrowthinsalesoftypical
healthproductssuchasberries,avocados,spinach,redvegetablesandkale.
Consumers'newlyacquiredtasteforthis
typeofproductdoesnotautomatically
resultinmorekgspercapita,butdoes
provideamuchmorebeneficialhealth
effect.
2009
Jarle Gjerde,
GroupdirectorFinance,
Treasury,ITandHR.
Thegrowthtrendwithintheproduct
groupfruitandvegetablesisinmarked
contrasttotherestofEurope.Mostparts
oftheEUhaveexperiencedadecreasein
consumptionoffruitandvegetablesin
recentyears.
2008
Rune Flaen,
CEO
Therehasbeenastrongfocusoncreatinggrowthinconsumptionofourproductcategories,inaccordancewithofficial
healthpolicytargetsinNorwayand
BAMA'sownvisionof"makingNorway
fresherandhealthier".
2007
BAMA's Group
management
With sales growth of 8.1 per cent and a profit before tax of MNOK 485.1, BAMA posted
another good set of results in 2014. Management is satisfied with the year as a whole,
particularly in light of the previous year's completion of and relocation to a new head
office and terminal site at Nyland Syd, and investments in a new ERP system and
realignment processes.
2006
Front:AtleBeyer
andRuneFlaen.
Middle:JarleGjerde
andWencheHolen.
Back:ØyvindBrisåand
OddLindstadJohansen
CHANGE GRAM/CAPITA
FRUIT AND VEGETABLES
EU AND NORWAY
DAILY CONSUMPTION,
ALL FRUIT AND VEGETABLES
TREND EU
TREND NORWAY
14
15
MANAGEMENTREVIEW
inparticularforgrocery,returnedthelargestsalesgrowth.Athird
ofthe8percentgrowthgeneratedbytheareacamefromproductslaunchedinthelastfouryears.
BAMA
Group
The"freshlyprocessed"productcategoryrepresentsagrowing
marketandoffersmajorpotentialforBAMA.SomeEuropean
countrieshavemarketsharesofupto30–40percent,whilethe
categoryinNorwayisjustunder 5percent.
Central
staff function
FLOWERS BLOSSOMING
Flowersiscontinuingonitsupwardtrajectory.Withgrowthof15
percentin2014,theGrocerysegmentremainsthemaingrowth
driver.
Grocery
HoReCa
Trading
Service market
Flowers
Industry
International
Property
Florisspostedsatisfactorylike-for-likegrowthof4percentin
stores.Attheendoftheyearthechainhad95stores.
Thankstoanincreasedfocusonefficientgoodsflowandquality,
andknowledgeoftheproductgroup,Flowerspostedtotalgrowth
intheyearunderreviewof9.4percent.
MODEST PRICE RISES
Since2006pricechangesforfruitand
vegetableshavebeenlowerthanboth
forfoodsandtheoverallconsumerprice
index(CPI)inNorway.Pricegrowth
overthelasttwoyearsisattributable
togoodsshortagescausedbyclimate
changesandassociatedpricerises.The
NOKgenerallydepreciatedduringthe
reportingperiod.Volatilityintheglobal
financeandcurrencymarkets,plusclimatechallengesandincreaseddemand
fromnewmarkets,suggestthatprices
willbehardtopredictmovingforward.
Thiswillrequirecontinuousvigilanceon
thepartofBAMA.
ANOTHER CHALLENGING YEAR FOR SERVICE MARKET
ServicemarketwasintegratedintoBAMAHoReCain2013,andin
theyearunderreviewwasimpactedbytherealignmentprocess
inthewakeofthereorganisation.Whilethisintegrationisnow
generatingsynergies,2014nonethelessprovedadifficultyearina
challengingmarket.
ThehighgrowthconfirmsthattheNorwegianvaluechainmodel
isalsofunctioningwellintheEuropeanmarket.
Throughstrategicownershipofinternationalbusinesses,BAMA
willcontributetogrowthanddevelopmentofthevariousproduct
categoriesintheNorwegianmarket.Aspartofthisstrategy,in
January2015BAMApurchasedamajoritystakeintheNetherlands-basedflowerscompanyXpolB.V.Theacquisitionfurther
reinforcedBAMA'spositionandgrowthintheflowersmarket.
UNSTABLE GOODS SUPPLY
Theglobalgoodssupplymarketisbecomingincreasinglychallenging.Extremeweatherandclimatechangesareaffectingall
continents,aswellasthedeliveryofqualityproductsin2014.
TheRussianimportbancreatedsignificantmarketuncertainty,includingforNorwegianproducts,althoughthesituationstabilised
duringtheyear.
Throughongoingworktoidentifyneworiginsandsuppliers,in
mostcasesBAMAmanagedtomaintainthesupplyofquality
products.Effectivevaluechaincollaboration,includinglong-term
supplieragreements,willplayamajorroleinsecuringthegoods
supplyinfuture.
The largest realignment
process in BAMA's history,
involving the relocation of
staff functions and operating
units to Nyland Syd was
implemented in 2014.
PRIORITISED AREAS
Despitepostinggoodresultsinmost
businessareasin2014,BAMAstillhas
manymajoropportunitiesforfurther
PRICE CHANGES
135
130
125
120
115
110
105
2006
2007
2008
OVERALL INDEX
CPI
136.9
2009
STRONG ENVIRONMENTAL FOCUS
Withanewandwide-rangingenvironmentalstrategy,BAMAtakessustainabilitychallengesseriously.Themost
importanttargetareasarereducedfood
wastage,optimisationofpackaging
andenvironmentallyfriendlytransport
systems.Wehaveadeliberatestrategyof
beinganinitiatorofandmodelbusiness
forsustainableenvironmentaldevelopmentwithinourproductareas.
AVOCADOS
+170%
140
Source: STATISTICS NORWAY
INTERNATIONAL GROWTH
BAMA'sInternationalbusinesscontinuedtoimprove,clockingup
aggregatesalesofalmostBNOK2.4in2014.Thisequatestoyearon-yearsalesgrowthof42percent.
growth.Thecollaborationstrategywith
Gartnerhallenisintendedtoboost
growthofNorwegianproducts,andgenerateaverageannualvaluegrowthofat
least8percent.Othercategoriessuchas
berries,freshlyprocessedproducts,drinks
andflowersalsostandoutasdedicated
focusareaswithspecificgrowthtargets.
2010
FOODS AND
DRINKS
128.9
2011
2012
2013
FRUIT, VEGETABLES
AND POTATOES
125.2
2014
NEW MAIN TERMINAL
Thelargestrealignmentprocessin
BAMA'shistory,involvingtherelocation
ofstafffunctionsandoperatingunitsto
NylandSyd,wasimplementedin2014.
However,thecoordinationofthegoods
flowatthenewterminal,inparallel
withtheimplementationofanewERP
system,resultedingreater-than-expected
challengesanddelays.BAMA'semployees
haveworkedtirelesslythroughoutthis
demandingprocess.
Whiletheeffectofthedelayswerealso
feltinto2015,overthelong-termthe
investmentswillgiveBAMAsignificantefficiencyimprovementgainsandafresher
goodsflow,enablingustodeliverinline
withourvision.
BERRIES
+140%
JUICE
+280%
TONNES
20 000
LITRES (’000)
TONNES
6 000
15 000
4 000
10 000
2 000
5 000
12 000
9 000
0
6 000
3 000
0
2009
2010
2011
2012
2013
2014
0
2009
2010
2011
2012
2013
2014
2009
2010
2011
2012
2013
2014
16
17
NORWEGIANGOODSFLOW
Kristian Guren is a third-generation cucumber grower at Melleby
Farm in Rygge in Østfold, and
Gartnerhallen's cucumber producer
responsible for cultural affairs .
His innovative solutions, excellent
market understanding and a strong
environmental focus won him
BAMA's 2014 "Norwegian Supplier
of the Year" award .
Pleasing value and volume
increase for Norwegian
products
A lengthy and productive growing season laid the basis for a very good 2014
for Norwegian producers. Value and volume growth both came in above target
and increased BAMA's quota of Norwegian production to 31 per cent. BAMA and
Gartnerhallen are now gearing up for further growth.
Long-termandtargetedworkalongthe
entirevaluechainhavealsocontributedtotheresults.However,long-term
availabilityofqualityNorwegiangoods
continuestobethemostimportant
individualfactordrivingupvolumesand
sales.Thisistoalargeextentgoverned
byweatherandgrowthconditions.While
2013wasanextremelychallengingyear
formanygrowers,2014wasmuchbetter.
Springarrivedearly,andautumnwas
longandwarm.
VALUE TRENDS IN Norway, producers
VOLUME GROWTH, individual
products
VALUE
203%
180
100
80
150
120
93%
210
48%
18%
17%
15%
14%
Apples
Onions
Salads
Tomatoes
22%
Leek
0
Pears
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
0
20
Herbs
30
Source: Gartnerhallen
40
60
Berries
90
40%
60
Naturally,thesummerheatresultedin
challenges,inparticularforberrygrowers–however,thelatternonetheless
producedagreatervolumethanthepreviousyear.Therewasgood-quality,large
harvestformostvariants.Therewasalso
goodaccesstostoredproductsinthe
periodbeforeharvest.Andwhenthere
isavailability,weknowthatNorwegian
consumerspreferNorwegianproducts.
BAMAandGartnerhallenhaveenjoyed
along-standingcollaboration,andin
2012drewupacollaborationstrategyto
increaseNorwegianproduction.Asitentersitsfinalyearin2015,theprojecthas
comfortablyexceededitstargetsinthe
firstyears.In2014theoverallincreasein
thevolumeofNorwegianproductswas8
percent,whilethevalueincreasewas12
percent.InthesameperiodtheNorwegi-
ansharemeasuredagainstimportsrose
byonepercentagepointto31percent.
Importedproductsgeneratedvolume
growthof2.4percentandvaluegrowth
of5.7percent.
POTATOES ON THE UP
Thepotatoisafocusproductunderthe
collaborationstrategy.Fallingsalesofpotatoesovertimecomparedwithimports
necessitatednewmeasures,including
withinvarietydevelopment,cultivation
methodsandmarketing.Theehaveproducedresults.Thesharehasrisenfrom
60percenttwoyearsagoto67.5per
centin2014.Thuswearewellonourway
toachievingourgoalof80percentby
theendof2017.
Theyear2014featuredoverproductionofNorwegianpotatoesforhuman
consumption,meaningthatsomehad
tobetakenoffthemarketforindustrial
purposes.Producersandcustomersdid
theirbesttoaddressthechallenge–for
examplethroughextrasalesactivitiesin
thestores.Thishelpedtoensurethatall
storedinventoriesweresold.
RESEARCH COLLABORATION
Aspartoflong-terminitiativestoboost
productionandvaluecreationofNorwegianproducts,for15yearsBAMAhas
workedcloselyonresearchwithGartner-
hallenandtheBioforskandtheNorwegianInstituteofFood,Fisheriesand
AquacultureResearch(Nofima)research
bodies.Theprojectembraceseverything
frompesticidesandpestcontroltotaste
andvarietaldevelopment.Atotalof
88projectswithavalueofMNOK537
enabledGartnerhallentopostannual
valuegrowthofMNOK100–150,while
Norwegianrawmaterialshavereinforcedtheirpositionasadirectresultofthe
research.20newprojectsarecurrently
underway.
SHORT-TRAVELLED AND ORGANIC
IN VOGUE
Consumersarecontinuingtoshow
increasinginterestinshort-travelled
andorganicfood.In2014,60percentof
productswerelocallyproduced,nomore
thantwohoursawayfromthesales
outlet.
DemandfororganicNorwegianproducts
roseby29percentin2014.Productionof
newvariantssuchaspurée,parsnipsand
beetrootalsostarted.Theorganicfocus
iscloselylinkedtotheaimofensuring
sustainableandenvironmentallyfriendly
production,andduringtheyeareven
morepackagingplantswerecertifiedas
EnvironmentalLighthouses.Infuturethe
increaseinNorwegianproductionwillbe
achievedinasustainablemanner.
19
IMPORTGOODSFLOW
TyrolinItalyisrenownedforthe
qualityofitsapples.For23years
BAMAhasboughtapplesfromthe
producerVI.P,acooperativeof1,745
appleproducersinamountainous
area,hererepresentedbyKarl
Dietl.VI.Pwasvoted"International
SupplieroftheYear"in2014.The
cooperative'sspecialityisGolden
Delicious.WhatmakesGoldenfrom
thisarea"special"isthattheapples
maintainacrispandfirmflesh
rightupuntilthepeelacquiresits
characteristicyellowcolour.
Climate changes and extreme
weather conditions exacerbating the supply situation
BAMA Trading is company division at the sharp end of day-to-day global climatechanges. 2014, when the supply situation proved difficult for several important product
groups. Combined with the delayed phasing-in of a new ERP system, this resulted in a
demanding year, and it is testament to employees and suppliers that deliveries were
maintained throughout the year.
MOST IMPORTANT
PRODUCTION COUNTRIES,
byweight
30%
20%
25
20
13%
15
Bananas
10%
8%
7%
5%
1.3%
1.0%
Brazil
4%
1.2%
4%
Onions
Chile
Tomatoes
Costa Rica
1.7%
1.4%
Morocco
France
Italy
Peru
2.6%
5.1%
Netherlands
Central America
15%
Carrots
0
Spain
Potatoes
Apples
10
5
MOST IMPORTANT PRODUCTS, byweight
Citrus fruits
6.5%
30
Norway
18
Drinks
Berries
Grapes
3%
0%
EXHAUSTIVE WORK AND CLOSE
COLLABORATION
ThismeansthatBAMAhastobeflexible,
andtoacceptnewvariantsfromnew
suppliersandcountries.Wealsohave
totakeevenmoremeasurestoprotect
4%
3%
3%
Extremeweatherandclimatechanges
aremanifestingthemselvesinmanydifferentways.Someexamplesfrom2014:
Spanishclementineswereaffectedby
bothhightemperaturesthatimpacted
thefruit'scolour,andrainthatproduced
toomuchfruitinthehighseasonof
December.HailstormsinIndiaandheavy
raininChilecausedmajordamageand
significantlycurtailedtheseasonfor
grapesintherespectivecountries.In
SouthandCentralAmericadroughts
resultedinhighsaltcontentsformelons
andstonefruits.AndintheNetherlands
coldanddarkweathermeantthateven
greenhousegoodsproducedinadequate
growth.Instancesoftheaboveare
becomingmoreandmorecommon,so
muchsothatitisperhapstimetoconcedethattheabnormalisnowbecoming
thenorm.
6%
9%
12%
15%
crops.Thisisanareatowhichourproject
managersdevotetheiralleverysingle
day,inclosecollaborationwithsuppliers.However,whenentireregionsare
affectedbythesameweatherconditions,
thingscanbeextremelydifficult.
Nonetheless,inthevastmajorityofcases
BAMAmanagedtomaintainthesupply
ofqualitygoods.Thiswasattributable
tosterlingworkalongtheentirevalue
chain,andnotleastourlong-standing
strategyoflong-termsuppliercollaboration.Thankstoeffectivedialogues
andinterplay,ourloyalsuppliersare
justaskeenasustosecuresuppliesand
continuedgrowth.Supplierscanseethat
weareactivelyendeavouringtodevelop
qualityproducts,andclearlyprioritising
bothtasteandpreservation.
EVERYDAY GOODS FLOW CHALLENGES
2014wasalsotheyearinwhichBAMA
intendedtochanneltheentireincoming
goodsflowthroughthenewterminalat
NylandSyd,atthesametimeanewERP
systemforthegoodsflowwastoenter
fulloperation.However,thisphasing-in
hasnotproceededasdesired.Thesystem
hasestablishedneithertherequisite
stabilitynorcapacity.Thishasresulted
inhighercosts,moredifficultoperations,
andhasdelayedtherelocationtoa
sharedterminal.BAMA'semployeeshave
madeanincrediblecontributionduring
thisdemandingperiod.Theeffectsofthe
delaywillalsobeall-too-visiblein2015.
Atoughyearwasalsoreflectedinmore
unstableinternationalcontainertraffic,
withslowertransportsduetoroute
changes,problemswithprofitabilityand
strictercontrolsatEUborders.Thisis
creatingchallengesingettingbananas
ripenedontime,andourripenershave
performedanincrediblejobevery
singledaytoensurethatbananasare
shippedouttherightcolour.Despite
this,theproductgroupachievedvolume
growthofsixpercentin2014 ,and
thusprovidesanexampleofhowour
knowledgeandhardworkhaveenabled
ustosuccessfullymaintainoursupply
ofhealthyandfreshproductsfromthe
entireglobe–eveninthetoughestof
times.
20
21
GOODSFLOW
From field to fork
The goods flow is BAMA’s very lifeblood. Each year 500,000
tonnes of fresh products pass through our terminals on
their way to 15,000 customers in Norway. Some products are
short-travelled, while others are imported from virtually all
corners of the world. Our business – in a nutshell.
BAMA is a global player with a significant sphere of operations, both in Norway and abroad . The company currently
has a network of more than 1,300 producers in Norway and
abroad, and each year sells 500,000 tonnes of fresh fruit,
vegetables, berries, drinks and flowers .
Fruit and vegetables are live products whose quality has to
be maintained, regardless of distance, and well thought-out
logistics solutions play a crucial role in ensuring that fresh
and pristine products reach our customers and the consumer
as quickly as possible .
Reducing the distance from field to fork is an ever-present
aim in this context, and the products are refrigerated during
their entire transport – regardless of origin .
BAMA has built up many years of specialist expertise in
purchasing and logistics, and prioritises cultivating and
nurturing good relations with new and existing producers .
In a world characterised by increasingly volatile access to
goods, value chain collaboration is now more important
than ever .
FLOWERS
28%
2,700 CUSTOMERS
NORWEGIAN
PRODUCTION
300 loading points
1,115 suppliers
PACKAGING PLANTS
500,000
TONNES FRESH PRODUCE
72%
DIRECT TO TERMINAL
INDUSTRIAL PROCESSING
GROCERY
2,200 CUSTOMERS
TERMINALS
15,300
DAILY DELIVERIES
HORECA
8,400 CUSTOMERS
INTERNATIONAL
PRODUCTION*
220 loading points
180 suppliers
SERVICE MARKET
* all products
2,000 CUSTOMERS
22
23
TOPIC
1905:
300KG
QUICK OFF THE MARK
20 September 1905 BAMA's founder Christian
Mathiessen imported the first banana cargo
by ship from the UK port of Hull to Oslo. The
cargo comprised 50 bunches of bananas,
or around 300 kgs. Norway was the second
European country to start organised imports
of bananas after the UK.
-16,800
OSLO
FROM LAND TO SEA
We have always transported bananas from
South America to Europe by ship. The journey takes around nine days. For many years
bananas were transported in container ships
to Europe, and freighted onwards by lorry to
Norway. In 2009 we changed our transport
policy so that the containers were freighted
by ship all the way to Norway. Lorries are only
used from the harbour in Oslo to our ripening plant. The switch reduced CO2 emissions
equivalent to the average annual emissions
of 16,800 private vehicles.
RAILWAY AMBITIONS
Rail transport is generally held to be the most environmentally friendly way to transport goods.
Our target is for 50 per cent of our incoming transport to be made via inter-modal solutions by
2020. Today this figure is around 12 per cent.
When the bananas are ripe and ready to be transported to various parts of Norway, they are
increasingly conveyed by rail. In 2014 more than half of our freight was transported to Northern
Norway by train.
In Costa Rica around 40 per cent of the bananas that Dole produces are transported by train.
This form of transport is estimated to be 35 per cent more efficient than road transport.
40%
COSTA RICA
35%
MORE EFFICIENT
THAN ROAD
TRANSPORT
LL
Y
SOUTH
AMERICA
In 2014 more than half of
our freight was transported
to Northern Norway by train.
M
N
O
ENVIUR
FRI E
N D LY T R A
A
T
EN
O
P
NS
T
R
24
25
BUSINESSAREA:GROCERY
Grocery
BAMA works closely with its chain customers to boost the sale of fresh products
through tailored fruit and vegetable concepts for the grocery trade. In 2014 we helped
stores to generate sales growth and offer sustainable solutions and fresher products,
despite razor-sharp competition in the grocery market. All consumer surveys indicate
that the positive trend is set to continue.
400
2 000
500
200
0
0
0
2010
2011
2012
2013
2014
2010
2011
2012
2013
2014
2010
2011
2012
8.0%
1 000
4 000
13.0%
600
Freshness, quality and selection have the greatest influence on consumers' choice of store in which they buy fruit and vegetables. With
Lise Finckenhagen as figurehead, BAMA is adopting a proactive
societal stance to explain where our products come from, building
knowledge of healthy diets, and inspiring even more people to eat
"Five a day".
5.3%
0.7%
10.3%
800
-3.3%
6000
1 500
9.0%
8 000
2 000
17.1%
10 000
-0.9%
• Thegenerationgaphasdisappeared
• Theover60sbelievethemselvestobeinas
goodhealthasthepopulationingeneral
• Fewerpeopleareputtingtastebefore
healthconsiderations
• Morepeoplearewillingtopayextrafor
short-travelledNorwegianfood
• Growingfocusonpreservingnatureand
theenvironment
• Fewerpeopleregardingfoodpreparation
asachore
• Weareexercisingmoreoften
8.8%
SALES PERFORMANCE (MNOK):
10.8%
Newrefrigeratorspreservequality,boost
salesandreduceelectricityconsumption
by35percent.
TRENDS FROM “NORWEGIAN
EATING FACTS” 2014:
16.0%
35%
Atthesametimeourownsurveysare
highlightingthequalityoffruitand
vegetabledepartmentsasoneofthe
mostimportantdriversofconsumers'
choiceofgrocerystore.Here,qualityis
moreimportantthanprice,whereitis
paramountthatfruitandvegetables
areperceivedasfresh.Manypeoplealso
attachimportancetowideselections
andranges.
Wearealsotakingmeasurestoguaranteequalitythroughoutthevaluechain
–fromtheproducer,duringtransport,
inthestoresandallthewaytotheconsumer.Wehopetocollaborateevenmore
efficientlywithcustomersinfuture,primarilybyhelpingtoraiseexpertiselevels
inallstages.BAMAGroceryshallcontinuetoplayakeyroleinmakingexciting
newproductsandvariantsavailablein
themarket,andhelptoreinforcestores'
competitivenessthroughaconstantly
fresherandwiderselectionoffruitand
vegetables.
8.1%
REDUCED ELECTRICITY CONSUMPTION:
FAVOURABLE CONSUMERS TRENDS
Consumertrendsaregenerallyworking
inourfavour.Thelatesteditionofthe
NorskSpisefakta(NorwegianEating
Facts)Surveyrevealsasteadilygrowing
interestamongNorwegiansinhealthy
diets,naturalfoodstuffsandfoodofNorwegianorigin.Thisispresentinguswith
anumberofopportunities,andweare
doingallwecantoprovideNorwegians
withthebestpossibleofferingoffresh,
healthyandlocallysourcedfoods.
FRESHER GOODS IN STORES
Wearecontinuallytakingmeasuresspecificallydesignedtoguaranteethehighestquality. During2014manystoresinstallednewregrigeratorswithdoorsthat
ensurelowtemperaturesatthesame
timeasreducingelectricityconsuption.
Thishashelpedtosignificantlyreduce
wastage,improvequality-preservation
andthusboostsales.
3.9%
CompetitionintheNordicgrocery
marketisextremelytough,withthe
low-pricestoresreturningthegreatest
growthinrecentyears.BAMAhelpsto
maintainitscustomers'growththrough
closeandefficientcollaborationonthe
developmentofchain-adaptedconcepts
andproducts.During2014wecollaboratedsuccessfullywithBAMAIndustry
tolauncharangeofnewprocessed
products.Consumersareincreasingly
demandingsuchproducts.
3.7%
Akeygoalforthegroceryareahasbeen
forourcustomerstogeneratehigher
growthinourproductgroupsthaninthe
otherproductcategories.Weachieved
thisgoalin2014,andfruitandvegetableshaveestablishedthemselvesas
oneofourcustomers'absolutelykey
productgroups.Thisdevelopmentisalso
reflectedinthefactthatasteadilyincreasingnumberofstoresareoptingto
makefruitandvegetablesthefirstthing
customersseewhentheyenterastore.
Thisgeneratesimmediatebenefitsinthe
formofsalesgrowth.
2013
2014
26
27
BUSINESSAREA:HORECA
HoReCa
BAMA HoReCa remains an attractive collaboration partner. However, growth in 2014
was lower than in previous years, which was in part attributable to the expiry of chain
agreements and abolition of free school fruit, along with general price pressure in
the industry. Despite this, demand for fruit and vegetables remains significant, and
exciting seafood and knowledge-building initiatives promise further growth in 2015.
competitivenesswegivecustomers.We
werealsoawardedthe"Outstanding
DesignAward2014”bytheNorwegian
CentreforDesignandArchitecturefor
ournewcommunicationplatformthat
wasimplementedduringtheyear.
REINFORCED ENVIRONMENTAL FOCUS
Aclearenvironmentalfocusisbecoming
increasinglyimportantalongtheentire
valuechain.Allourdivisionsarenow
certifiedasEnvironmentalLighthouses,
andasteadilyincreasingnumberof
customeragreementsinvolvefewerand
largerdeliveries,withreducedtransports
andemissions.Thisrequireslogisticsand
planning,butisdesiredbybothourselves
andourcustomers.
Wegenerallyenjoycloseandefficient
collaborationwithourcustomers.We
arecontinuallydevelopingnewconcepts
intendedtoboostprofitability.Thetrend
towardsmorefruitandvegetablesin
canteensandhotelbuffetsiscontinuing,
withanumberofcustomersintroducing
meat-freeMondays,whenonlyfruit,
vegetablesandfishareserved.
SALES PERFORMANCE SEAFOOD
(MNOK):
100 20131502014 200
2012
250
0.7%
1 000
400
500
200
0
0
2010
2011
2012
2013
2014
2010
2011
2012
8.0%
50
2011
3%
600
13.0%
203.1
2014
10%
10.3%
8.8%
36%
196.7
2013
2 000
0
2010
8.1%
178.5
4 000
0
1 500
13%
800
5.3%
2012
131.2
2 000
-3.3%
6000
3.9%
2011
SALES PERFORMANCE (MNOK):
10.8%
Allourdivisionsarenowcertified
asEnvironmentalLighthouses,and
anincreasingnumberofcustomer
agreementsinvolvefewerandlarger
deliveries,withreducedtransports
andemissions.
116
2010
8 000
3.7%
100%
10 000
16.0%
SHARE OF CERTIFIED HORECA
DIVISIONS:
9.0%
Asinpreviousyears,BAMAHoReCa
wasvotedSupplieroftheYearbymajor
partnerssuchasGress,theNorwegian
HospitalityAssociation'sPurchasing
ChainandAlbatross.Thisistestamentto
ourmarketapproachandtheincreased
17.1%
QUALITY PRIORITISED
ForBAMA,toughtenderprocesses
resultedinthelossof,orreducedsales
from,somemajorchainagreementsin
2014.However,oneformerpublicsector
customerreturnedtoBAMAtowardsthe
endoftheyear–aclearindicationthat
customerscontinuetoprioritisequality.
Forthefirsttimesince2005itwasalso
pleasingtoenterintoanagreementwith
yetanothermajorsupplierforcanteens
andstaffrestaurants.
FOCUS ON SEAFOOD AND KNOWLEDGE
BUILDING
ParticularmajorfocusareasforHoReCa
in2014 includedfishandotherseafood,
andseveralmajorchainagreements
wereputinplaceduringtheyear.This
productgroupisperfectlysuitedtoour
objectiveofmakingNorwayhealthier
andfresher.Ouruniqueexperience
offreshgoodslogisticsandproduct
developmentmeanswearealreadywell
placedtoaccountforanevengreater
shareofconsumers'diet.Throughthe
"Sustainableseafood"projectweshall
assumeresponsibilityforsustainable
andenvironmentallyfriendlyhandlingof
productsalongtheentirevaluechain.
TheBAMACulinaryTeamplaysanimportantroleinexpertisedevelopment
atourcustomers.Acorpsofourmost
knowledgeablechefsrolluptheirsleeves
andtakeagoodlookatthestructureand
operationofthecustomer'skitchen.Itisa
questionoffindingnewwaysofpresentingfoodandnewwaysofworking.This
conceptwasfurtherstrengthenedin2014.
Theknowledgeandqualitywecan
contributewillprovidegoodprospectsfor
furthergrowthoverthenextfewyears.
-0.9%
Aftergeneratingsignificantgrowthfor
severalyears,thisbusinessareaonly
generatedmarginalgrowthin2014.This
isafeatureoftheentireHoReCamarket.
Manycompanieswereaffectedbythe
abolitionofthefreepartoftheSchool
FruitScheme,whilestrongcompetition
andsignificantpricepressurehave
squeezedmargins.
2013
2014
Seafood represents a relatively new product group for BAMA. We
are doing a great deal of work on product development to simplify life for our customers. Here Sten Magne Fagerhaug filters the
day's fresh halibut in the seafood division at Nyland Syd, ensuring that wastage is kept to a minimum. The chefs have ready-toserve fish delivered to save the kitchen time and wastage.
29
BUSINESSAREA:INDUSTRY
Industry
BAMA Industry posted excellent sales growth in 2014 , in line with budget and strategy objectives. A high development rate for new products, which were well received by
customers, made a significant contribution to growth. Extensive investments and even
better utilisation of raw materials will guarantee continued freshness, quality and sustainable development in line with BAMA's environmental strategy.
Productdevelopmentisakeypillarofthe
businessarea'sstrategy,andisproducingclearresults.In2014newlaunches
accountedfor11percentofsales,while
productsdevelopedandlaunchedover
thelastfouryearsaccountedfor32
percentofsalesin2014.Development
processescarriedoutinclosecollaborationwithcustomershavebeenthe
keytosuccess.Oneofthemostexciting
innovationsintheyearwasarangeof
sous-videpotatoproductswhichhave
helpedtoboostpotatosales.Wokmixes
andseveralnewsaladproducts,includingtwoorganicsaladmixes,werealso
wellreceivedbythemarket.
NordicLunchAShasbeenpartofBAMA
I ndustrisince2014,andhasgenerated
extremelygoodgrowthforthegrocery
sector.Salesofproductssuchaswraps,
sandwichesandbaguettesroseby25per
centduringtheyear.
MORE AND BETTER PRODUCTS FOR
THE CONSUMER
Wetakecontinuousmeasurestoensure
thatevenmorefreshqualityproducts
"Uglyfood"wasaparticularfocusareain
2014.Thisinvolvedimportantmeasures
tocutfoodwastage–themostimportantenvironmentalaimofBAMA's
environmentalstrategy.Themainideais
torefinealargerproportionsofpreviouslyunmarketablematerialsthatare
producedintohighqualityproducts,
andthushelptoboostconsumption.
Unmarketablerawmaterialscan,for
example,haveskinblemishesorirregular
sizes,despitethefactthattheirtasteand
nutritionalvalueareofthehighestquality.Theserawmaterialsareincreasingly
beingusedformashes,pulps,purées,
stewsandsoups.
2014
2010
0.7%
10.3%
Import
Norwegian
"Uglyproducts"
2011 2012 2013
2014
37%
31%
32%
2011
2012
8.0%
2013
9.0%
PERCENTAGE OF RAW MATERIALS
IN PRODUCTION:
0
2012
600
13.0%
1 000
800
5.3%
1 500
17.1%
2 000
Newlaunchesinthelastfouryearsgenerated
500
32percentofsalesin2014.
2011
Investmentsarealsobeingmadeinnew
productionlines,automation,efficiency
improvements,productqualityandHSE
measuresatothersites.Thebusiness
areaiscontinuingitsowninternal"Five
aday"initiative,whichgovernsallwork
oncontinuousimprovements.The"fivea-day"inquestionarequalityandfood
safety,sales,productdevelopment,personnelmanagement,andcost-efficiency.
Thewide-ranginginitiativeandthedaily
focusontheseareasarecontributingto
growthandboostingcompetitiveness.
SALES PERFORMANCE (MNOK):
-0.9%
8.8%
16.0%
8.1%
3.9%
NEW LAUNCHES
INVESTING IN THE FUTURE
BAMAIndustryhasanongoingandextensiveinvestmentprogrammetosecure
continuedgrowth.Oneofthelargest
projectsin2014relatedtotheexpansion
ofthepotatoproductionsiteinRygge.
Thissitewillhaveaproductionareaof
5,200squaremetreswhenitiscompletedinAugust2015,doublethecurrent
productioncapacity.Weareadopting
amajorfocusonproductandvariant
developmentandnewtechnologyto
furtherpromotetheNorwegianpotato.
-3.3%
32%
reachallthewaytotheconsumer.The
processthatisunderwayinthegrocery
storesinvolvingtheroll-outofbetter
refrigeratorshashelpedtoincrease
sales,reduceshrinkage,improveproduct
qualityandcutenergyconsumption.This
istheresultofthoroughtestingofrefrigerationequipmentcarriedoutbyBAMA
Industryincollaborationwithcustomers
andrefrigeratorsupplierssince2011.
10.8%
0
28
2013
2014
400
200
0
2010
Potatoes are overflowing with nutrients, and we are actively striving to increase Norwegian potato consumption. Varietal improvement and product development are the most important tools in
this work. Quality control of production is equally important and is
performed here by Gui Ying Zeng and Anh N.T Tran. At BAMA Industry in Moss we are constantly developing new freshly processed
products to ensure that the potato becomes an even more natural
and tasty item on consumer's plates.
30
31
BUSINESSAREA:FLOWERS
Flowers
Flowers represent an important strategic focus area for BAMA. We have ambitious
aims, and offer flowers through several different channels – for both the grocery and
specialist trade. The year of 2014 was one of continued growth and featured the start of
new alliances to further reinforce our goods flow and value chain.
10 000
0
0
300
2010
2014
2013
2012
2013
600
900
1 341
1 378
2012
26 %
20 000
1200 1500
0
0
2010
2011
2012
2013
2014
-3.9%
3.3%
2.3%
200
1.0%
9.4%
250
36.6%
12.2%
800
17.2%
SALES PERFORMANCE (MNOK):
1000
2 500 000
2 000 000
150
1 500 000
400
100
1 000 000
200
50
500 000
0
0
0
600
2010
2011
2012
2013
2014
2010
2011
2012
2013
2014
-3.3%
2010
2011
2012
2013
2014
Norwegians love flowers, with roses the nation's clear favourite.
BAMA imports many of its roses from Kenya, whose position on the
equator guarantees ideal production conditions. The Kenyan flower
industry is the lifeblood of more than 500,000 people, and the Kenyan roses are regarded as among the most attractive in the world.
41.9%
2014
8.0%
200
13.0%
500
5.3%
400
2010
2011
10.3%
1 000
2012
24.9%
0.7%
10.3%
9.0%
17.1%
-0.9%
8.8%
16.0%
2013
600
10.8%
2012
1 500
800
11.7%
2011
8.1%
3.9%
3.7%
2010
2 000
17.2%
117 %
1 275
2011
13 %
998
30 000
2012
26 %
2011
2010
40 000
1999
2011
117 %
29 %
50 000
In2014BAMABlomsterHoldingentered
10 000
intoapartnershipwiththeInterflora
chaintostrengthenitspositionwithin
8 000
thespecialistflowertrade.Thisinvolved
Interfloraacquiringashareholdingof34
6000
percentinFlorissandthepartiesenteringintoabindingcollaborationongoods
4 000
flowandsupply.Theaimistobecome
2 000
marketleaderinthespecialisttradeand
flowerdeliveries,toboththecommercial
0
andprivatemarket.
6.6%
PER CAPITA FLOWERS PURCHASES IN
NORWAY (NOK)
2013
29 %
Source: The Norwegian Association
of Gardeners
CHANGE IN ROSE SALES:
STRENGTHENING THE SPECIALIST TRADE
At15percent,thegrocerychannelgeneratedthelargestsalesincreaseinflowers
in2014.Competitionissteadilyramping
upinthespecialisttrade,bothasaresult
ofstrongcompetitionbetweenthevariouscompaniesinthespecialisttradeand
inparticularasaresultofthegrocery
trade'sfocusonplantsandflowers.This
developmentisexpectedtocontinue,
anditwillbeincreasinglyimportantto
reinforceFlorissthroughawiderange,
andhighexpertiseandservicelevelsin
stores.
16.0%
Awideselectionisimportant;however,
roseshavebeenandcontinuetobethe
FOCUS ON LOCAL PRODUCERS
BAMAaimstoguaranteeawideselectionofqualityflowersforconsumers
throughevenclosercontrolofthegoods
flowdirectlyfromtheproducer.To
strengthenourpositionintheinternationalflowermarketin2014wedecided
topurchaseashareholdinginourpartnerXpolBV,effectiveJanuary2015.The
companyoffersfreshqualityproducts
byconnectingproducersinAfricaand
Europedirectlywiththeircustomersin
atransparentandethicalprocess,and
hasestablishedavaluechaininwhich
customersandgrowerscollaborate
closely–fromconceptdevelopmentto
ready-packedandtailoredproducts.
13 %
ROSES CROWNING GLORY
Christmasisthemainflowerseason,and
goodChristmassaleshaveasignificantinfluenceontheyear-endfigures.
Wehavenoticedthatcustomersare
increasinglydemandingawiderselectionofplantsandflowers,withgreen
plantssuchaspalmsandcactusesmore
popularthanever.Naturalfeaturesarea
popularelementincurrentinteriordecoration,andweendeavourtoofferarange
ofactivelymirrorsthelatesttrends.
mainsaleswinnersintheNorwegian
flowermarket.Wehaveenjoyedsuccess
withthesaleofFairtraderosestoa
numberofchaincustomersandFloriss
thathasestablishedastrongposition
asarosespecialist.Thesuccessful"Big
Five"concept,whichgivesusfullcontrol
ofrosesfromproducertostore,wascontinuedwithgreatsuccessin2014,and
therangeof"BigFive"roseshasbeen
expandedfromfivetoninevarieties
2014
BAMAorganisesitsflowersinitiatives
throughanumberofcompanies.BAMA
BlomsterASdeliverstogrocerycustomersandtheservicemarket,whileBaRe
BlomsterASexclusivelydeliverstogrocerycustomers.With95franchisestores
thelengthandbreadthofNorway,Floriss
isaleadingcompanywithinthespecialistflowertrade,whileBAMABlomster
TradingASisresponsibleforsourcing
andpurchasingplantsandflowers,from
bothNorwayandabroad.
2013
2014
32
33
BUSINESSAREA:SERVICEMARKET
Service market
Since 2013 BAMA Service Market has formally been part of BAMA HoReCa, but
has retained its own sales interface organisation with customers. Although the
integration is now generating synergies, 2014 nonetheless proved a difficult year
in a demanding market.
400
200
0
5.3%
2011
2012
8.0%
10.8%
-3.3%
600
13.0%
0.7%
10.3%
9.0%
17.1%
-0.9%
8.8%
2013
2014
400
200
0
2010
2011
2012
2013
2014
2010
150
1 500 000
100
1 000 000
50
500 000
0
0
2010
2011
2012
2013
2014
41.9%
2010
2011
2012
24.9%
2 000 000
10.3%
-3.9%
3.3%
200
2 500 000
11.7%
Baguettesandcheesebread
Sandwichesandwraps
Ola-packs
Benditsmoothiesandjuices
Snackingnuts
Fruitbeakers
Strawberrybeakers
Blueberrybeakers
2010 2011 2012 2013 2014
250
2.3%
9.4%
SALES PERFORMANCE (MNOK):
1.0%
16.0%
8.1%
3.9%
800
0
2014
PRODUCT
VARIANTS
THE MOST POPULAR:
Productdevelopmentisnotsimplya
matterofmajorconceptlaunches–itis
alsoaquestionofcontinuallymakingminorimprovementsandadjustments.For
2 000
example,wemadeallproductspalm-oilfreeduringtheyear.Atthestartof2015
1therangeofproductswasexpanding,
500
inparticularforBAMAIndustry'sfruit
andvegetablesandprocessedproducts.
1 000
Servicemarketoffersmajorfurther
untappedpotential,providedweoffer
500
appropriateandtailoredproducts.
17.2%
600
2013
PRODUCT DEVELOPMENT AND NEW
LAUNCHES
Weareconstantlydevelopingnew
conceptsinclosecollaborationwith
customers.Twonewsandwichproducts"Mettoggo’"and"Velvalgt"were
launchedin2014.Ittakestimeestablish
newbrandsinatoughmarket;however,
theabovehavestartedtogainafoothold.Inparticularthe"Velvalgt"range,
whichcompriseshealthierproductsthan
arenormallysoldinkiosksandpetrol
stationshasmadeapromisingstart.
36.6%
800
50
2012
17.2%
3%
1000
2011
12.2%
ANNUAL GROWTH TARGETS
2010
6.6%
Thesuccessoftheabovewilldependon
0
closercollaborationwiththechainsto
LOCAL KNOWLEDGE GENERATING SYNERGIES
2014wasthusBAMAServiceMarket's
firstyearoffulloperationunderthe
HoReCaumbrella,andthemergerhas
proceededwithoutahitch.Thecoordinationcoversdistribution,inventory
logisticsandalladministrativefunctions,
althoughwehaveretainedourownsales
interfaceorganisationwiththemarket.
Theaboveismanagedcentrally,butoperatedlocally.Theorganisationprovides
greaterlocalanchoringandproximityto
themarketthroughthemanyHoReCa
divisionsandtheexpertisetheypossess.
Thisisexpectedtogenerategrowing
synergyeffectsin2015.
3.7%
CONSUMER TRENDS PROVIDING
10 000
GROUNDS FOR OPTIMISM
Despitethis,BAMAretainsfaithinthe
8 000
servicemarket,whereconsumertrends
aregenerallyworkinginourfavour.With
6000
Norwegiansexpressingadesiretoeat
healthierproducts,thereisnoreasonto
4 000
believethattheservicemarketcannot
alsobenefitfromthistrend.
2 000
developattractive,tailoredandcustomer-embeddedconceptsthatsatisfyconsumers'wishesinahealthyandtempting
manner.Itwillalsobeaquestionof
leveragingevenmoreofthebreadthof
BAMA'sproductrangewhendeveloping
andlaunchingthesesolutions.Oneof
BAMAServiceMarket'sobjectivesisto
increasinglyhelptodevelopberriesalong
thesamelinesasseeninotherbusinessareas.
16.0%
Kiosksandpetrolstationsarethemost
importantcustomergroupsforservice
market,anditisthesemarketsthattend
tostruggle–notleastincompetition
withgrocerychainsthatcanoffera
muchwiderselection,morestoresand
longeropeninghours.Todealwiththe
competition,manyofthechainshave
optedtostandoutthoughanincreased
focusontraditionalfastfoodsuchas
meatballs,hotdogsandhamburgers.
Thishashadasomewhatdetrimental
effectonBAMA'sproductrangesfor
sandwichproducts,fruitandvegetables,
drinksandothermealsolutions.Year-end
salescloseddown3.9percent.
2013
2014
Together with our customers we are developing healthy and attractive fruit and vegetable concepts for kiosks and petrol stations. Lars
Imset is one of our locally known sales colleagues who is constantly
out and about ensuring that the shelves are full of fresh and
appealing products.
2014 proved another very successful year for BAMA's International business. The first full
year of operation of Nature’s Berries produced exceptional results, while Nature’s Management turned in an excellent performance under the roof of the new terminal building.
Sweden and Poland are also enjoying solid operations.
havealsodevelopedabrandnewproductdesignthatwillbelaunchedin2015.
Whilesalesfortheyearcameinatthe
samelevelasin2013,theprofitclearly
improved.Thisisattributabletomore
cost-efficientproduction,andimproved
volumeforecasts.Salestothemajor
servicemarketcustomersStatoilandReitanhavebeendevelopedandenhanced
duringtheyear.
Thisnotonlyincreasessales,butalso
givesusbettercontrolofthegoods
flow,withshorterleadtimesandmore
appropriategoods.Wastageofberriesin
storeshasbeensignificantlyreducedasa
resultofproperselectionofvariantsand
suppliers.
2011
Withsalesgrowthashighas48per
cent,2014wasasuccessfulyearfor
Nature’sManagement.
2012
2013
2014
100
Netherlands
Germany
2010
1.5
0.75
1.0
0
2011
0.75
2
2012
5.3%
10.8%
2011
2012
2013
42013 6 2014 8
10
2 500 000
2 000 000
1 500 000
1 000 000
2014
41.9%
2010
24.9%
9.0
50
0
0
10.3%
-3.9%
MANGO
2.0
150
deliveries,primarilyfocusingonmushrooms,blueberriesandapples.Wealso
200
makedeliveriestoseveralotherNordic
customers.
11.7%
Norway
3.3%
200
2.3%
250
resultsin2014.Thecompanysupplies
BAMAwithpredictableandreliable
400
SALES PERFORMANCE (MNOK):
AVOCADO
1.0%
9.4%
17.2%
12.2%
48%
PER CAPITA/ITEMS/YEAR
ThePolishcompanyArcticSpòlkaalso
600
reportedsolidoperationsandimproved
-3.3%
-0.9%
SALES GROWTH
NATURE’S MANAGEMENT IN 2014:
36.6%
8.1%
3.9%
A BERRIES ODYSSEY
1 500
2014wasalsothefirstfullyearofoperationofthesubsidiaryNature’sBerries,
whosesmallandcost-efficientorganiNEW PRODUCTS, DESIGN AND CUSTOM1 000
sationpostedsalesofanimpressive60
ERS IN SWEDEN
percentabovebudget.Themainreason
InSwedenNordicLunchABdelivers
500
forthissuccess–inadditiontoamarket
sandwichproductsandsaladstothe
thatwasripeforsuchaninitiative–is
servicemarket.Thecompanylaunched
0
arangeofnewproductgroupsduring
thefactthatmajorvolumesthatprevi2011 ouslycamefromexternalsuppliersare
2012 2013 2014
2010theyear.Basedonconsumersurveys,we
2011 2012 2013 2014
8.0%
0.7%
10.3%
9.0%
800
13.0%
OneimportantobjectiveforNordic
LunchABhasbeentoentertheSwedish
grocerymarketNordicLunchAB–agoal
thatwassuccessfullyachievedin2014.
Moreproductconceptshavebeendevelopedandnewsupplieragreementshave
beensigned.Thisisexpectedtoproduce
goodresultsin2015.
OneoftheNature’scompanies'strategiesistoachievesufficientcriticalmass
tobeabletodelivergoodstocustomers
outsideBAMA.Nature’sBerriesalready
hasahighprofileintheEuropeanberries
market,whileNature’sManagement
nowdelivers24percentofitsgoodsto
BAMA,comparedwith60–70percent12
yearsago.
17.1%
8.8%
16.0%
Thankstoskilledworkmanshipandan
appetiteforhardwork,thefirstyearof
operationofthenewbuildingproveda
greatsuccess,andinpartnershipwith
suppliersandcustomerswepostedsales
growthof48percent.Thiswasachieved
despitemajoruncertaintyinthemarket
duetofactorssuchasclimatechanges.
2 000
nowbeingsourcedthroughNature’s
Berries.Wealsoworkdirectlywithmajor
Netherlands-basedstrawberryproducers,
cuttingoutexpensivemiddlemen.
17.2%
ThemajorityofourInternationalbusinessislocatedintheNetherlands,where
Nature'sManagementBVhassoldexotic
fruits,vegetablesandberriestotheEuropeanmarketsince2001.Importandsales
activitieshavebeenperformedthrough
thecompanyNature’sPride,which
movedintoanew,modernterminal
buildingtogetherwithNature’sPackin
November2013.
Source: The Norwegian Association of Gardeners
0
35
BUSINESSAREA:INTERNATIONAL
International
6.6%
0
34
500 000
0
2010
2011
2012
2013
2014
Ready-to-eat avocados have become a notable success in just a few
years. Nature’s Pride's pristine new terminal at Rotterdam is home
to as many as 49 ripening sheds, where Mautits Zuijderwijk is one
of many experienced employees who ensure that the avocados that
arrive in Norway have just the right tenderness and appeal.
37
TOPIC
SOCIAL-DIALOGUE-BASED
APPROACH
As a major importer and purchaser, at BAMA
we use our commercial influence to create
better working conditions in the places
where our goods are produced. This is one of
the most important things we do under the
banner of corporate social responsibility. Our
approach to this work is based on social dialogue. This means that we focus on creating
results through processes and collaboration,
rather than by laying down conditions, for
example for certification. In our experience
significantly more challenges can be overcome through dialogue than through making
demands.
Given fairer trading conditions,
farmers and workers can start
to combat poverty themselves.
INTERNATIONAL OBLIGATIONS
Since 2002 BAMA has been a member of
the Initiative for Ethical Trading (IEH). This
obliges us to maintain human and employer
rights, address challenges in our own supplier
chain, and to report openly on the status and
progress of such work. We adopt a long-term
approach to this work, making clear demands
of all our suppliers.
BAMA and Dole are members of and active
contributors to the UN's World Banana Forum,
a wide-ranging industry initiative that was
established in 2009 to promote sustainable
production and trading in bananas – from an
environmental, social and financial perspective.
FAIRTRADE
We import organic Fairtrade bananas from the
Dominican Republic. Fairtrade is an international certification scheme that uses trade to
improve the position of farmers and workers
in emerging countries. The Fairtrade standards
secure better working and trading conditions,
with the result that over time it becomes
possible to invest in production, local communities and a sustainable future. Given fairer
trading conditions, farmers and workers can
start to combat poverty themselves.
IC
AL
36
C O R P O R AT E
O
S
RESPONSIBILITY
AND
S
C
I
ETH
38
39
QUALITYANDTHEENVIRONMENT
Committed environmental
strategy
In December BAMA adopted its new environmental strategy, which commits us
to initiating sustainable environmental development in our product areas. Working closely with our customers, we shall develop environmentally friendly and
resource-saving solutions.
Newpackagingsolutionshavegenerated
majorsavings.Someofthecentralproject
participantsatBAMAIndustry(leftto
right):ThomasEie,TomEgilKlausen,Anita
RuudandHansChristianBjerketveit.
ReducingfoodwastageisBAMA'smost
importantenvironmentalobjective.
Thisrequiresextensiveanalyses,and
associatedspecificmeasuresateach
individualstageinthevaluechain.Fruit
andvegetablesessentiallyenjoyavery
healthyenvironmentalprofile.Ourjob
istopreservethisalongtheentirevalue
chain.Thebestwaytoachievethisisto
ensurethatfruit,vegetables,saladsand
berriesareactuallyeaten.
Importantmeasurestoreducefood
wastageinclude:
1. ensuringthatonlythefreshestpossibleproductsreachourcustomersand
consumers.
2. developingmeasuringsystemsthat
guaranteecorrectrecordingofstatus,
developmentandtheeffectivenessof
workingenvironmentmeasures.
3. guaranteeingthatthepackagingfor
eachindividualproductisoptimisedat
alltimes.
NEW PACKAGING SOLUTIONS
Appropriateandoptimisedpackagingis
animportantenvironmentalmeasure.
Thesolutionisnottocutoutpackaging
offruitandvegetables–asthisoften
leadstodryingout,damageandlossof
qualitythatresultsinwastage.Rather,it
isaquestionofusingsmart,optimised
andproduct-specificpackagingthat
guaranteesadequateproductprotection,
withthelowestpossibleresourceutilisationandenvironmentalimpact,along
withthehighestpossibledegreeofmaterialrecyclingandenergyutilisation.
87%
50
32
30
15
64%
Weperformfocusedandtargetedwork
onqualityimprovements.Theaboveis
supportedbymeasuressuchaspesticide
analysesperformedbyBAMAandthe
NorwegianFoodSafetyAuthorityin2014,
inwhichnoexcesslevelswereidentified.
PACKAGING
TRANSPORT
48%
10
0%
60%
90%
120%
150%
BAMA
THE INDUSTRY
0
2014
2013
1
2
2012
2011
2010
2007
30%
2009 0
0
Tomatoes 12%
2
3
40%
2008
Peppers
5
7
Mushrooms
Thepurposeofpackagingistooptimise
productqualityallthewaytotheconsumer,andhelptoensurethatthefood
isconsumed.Allthepackagingusedfor
ourproductsisrecyclable.
reducedconsumption
20
74%
Bananas
30
15
Grapes
NEW QUALITY STRATEGY
BAMA'srevisedqualitystrategywas
adoptedinDecember2014.Thepurpose
ofqualityworkistoensurethatBAMA
deliversproductstothemarketbased
onaholisticqualityapproachcovering
allstagesofthevaluechain,andwith
auniqueknowledgeofconsumers,
productsandcustomers.Continuous
improvement,knowledgeandquality-assuranceroutinesbasedonriskanalyses
shallenableBAMAtodeliverfresh,
healthyandsafeproductstoitscustomersandconsumers.
40
23
139%
Carrots
Nopesticideresidues
werefoundtoexceed
permittedthresholds
inBAMA'sproducts
in2014.
50
23
Increaseinwastageonsaleofloose-weightproductsinrelation
topackagedproducts.
PESTICIDE
RESIDUES
WealsoparticipateintheNorwegian
ResearchCouncil'sCYCLEproject,in
whichindustryandresearcherscollaboratetooptimisethefood'sjourney
fromharvestandcaptureallthewayto
theconsumer.Wealsointendtoreduce
ouremissions,includingthroughmore
efficientcontainertransportandgreater
useofrailways.
35
WASTAGE
PRODUCT DEVELOPMENT
Oneinitiativethatproducedgoodresults
in2014wasincreasedutilisationof
"Uglyfood"–previouslyunmarketable
rawmaterialsthatwouldotherwisebe
thrownawayorusedforanimalfeed.
Anotherexamplearethenewrefrigeratorswithdoorsthathavebeeninstalled
inmanygrocerystores,andwhichhave
significantlyreducedwastage.Theserefrigeratorsconsumearound35percent
lesselectricitythansimilarrefrigerators
withoutdoors.
Optimisationofexternalpackagingfor
saladsreducedconsumptionofcorrugatedboardbyanareaequalto35football
fields.
Themostenvironmentallysolutionswithahigh
presentationqualityare
prioritised.Thetargetisforat
least50percentoftransport
fromEuropetobemadevia
inter-modalsolutionsby2020.
Ourextensivemicrobiologicalanalyses
resultedintwocontrolledrecallsoflimitedpart-productsinaccordancewithour
"prevention-is-better-than-cure"policy.
Whilewearesatisfiedwiththereported
lowlevelofexcesspesticidelevels,the
objectiveisnaturallyzeronon-conformances.
Towardstheendof2014anewfood
informationregulationalsoenteredinto
force.Thisnecessitatedextensivework
throughouttheyeartosecureaccurate
markingandbetterconsumerinformationforallourproducts.
Anunbrokenrefrigerationchainisa
prioritisedqualitymeasurethatrequires
continuousrecordingoftemperature
data.Weselecttransportsthatguaranteethecorrecttemperature,andthe
numberofmonitoredtransportsroseby
14percentin2014.Intheyearunderreviewagreatdealofworkwasperformed
onembeddingtemperaturecontrol
infrastructure.
TRANSPORT CHALLENGES
Intermsoftransport,theunpredictable
situationintheworld'scontainerports
hasresultedindelaysandadditional
costs.Bettermanagementoftheoceanboundcontainerflowisaprioritisedarea.
Weareadheringtoourpolicyofengagingfewercompaniesunderlonger-term
contracts,andwillcontinuetoprioritise
transportbyshipandrailway.Weare
increasinglyusingrailwaysfortransport
withinNorway.Themostenvironmentallyfriendlysolutionswillalsobeprioritisedinthisareainfuture.
40
41
CORPORATESOCIALRESPONSIBILITY
Global player with significant social responsibility
BAMA imports products from many parts of the world. This confers a major social responsibility. Norwegian customers and consumers must be confident that our products
have been produced under ethical conditions, and that we have considered food safety
and environmental requirements. CSR (Corporate Social Responsibility) is an area we
address every single day – in close collaboration with our producers and suppliers, and
with a steadily expanding sphere of operations.
*Stipulated
USD
2 500 000
2 000 000
1 500 000
1 000 000
500 000
0
5%
Theseexamplesprovidesomeideaof
thebreadthandlong-termnatureofour
CSRwork.Projectsareunderwayinnew
countriessuchasVietnamandKenya,
andourstrategyhasbeenfirmlyestablished.Ourethicalguidelinesshallbe
secondnaturetoallouremployeesand
suppliers–eachandeveryday.
FINANCIAL GROWTH
23%
Whenwevisitedforthesecondtimea
yearlater,allthesepointshadbeenrectified.Subsequently,weagreedamore
long-termplanwithnewimprovement
areas,andonourthirdvisitthecompany
wasbusyimplementingthesetoo.We
arewillingtoinvesttimeinsuppliers,as
Wealsohaveanexcitingstorytotellin
Guatemala,wherewebyNature’sPride
havehelpedtodevelopaveryparticular
ruralcommunity.Here,wehelpedresidentstostartproductioninaccordance
withinternationalstandardsforfood
safetyandtheenvironment,assisted
withtheproductionofgoodsofasatisfactoryqualityfortheEuropeanmarket,
aswellasagreeingtopurchaseproducts
overthelongterm.TodaytheareadistributessweetpeastoallpartsofEurope
throughNature'sPride,andthecompany
hascommissioneditsownpackaging
plantthathascreatedjobsforaround70
womenandmenintheruralarea.
60%
BAMAcannaturallynotsolvesocial
problemsonitsownorovernight,but
believesthatitisresponsibleforhelping
toensurethatconditionsareasgood
aspossibleinthecountriesinwhich
thecompanyoperates.Wehavedecided
tocutoutthemiddlemaninthevalue
chain,andtobepresentourselvesto
PROGRESS IN CHINA AND GUATEMALA.
Since2014Chinahasprovidedagood
exampleofthewayourmodelworks.
Thefirsttimewevisitedoursupplierin
thecountry,weencounteredfarfrom
satisfactoryconditions–inrespectof
workingconditions,hygieneandenvironmentalawareness.Weaddressedthese
matterswiththesupplier,andsincethe
latterclearlyexpressedadesiretomeet
ourrequirements,weagreedalistof
non-negotiableimprovementrequirementsthatwouldhavetobemetwithin
aspecifieddeadline.
longasweencounterawilltoimprove
andadoptefficientprocesses.
155%
OWN REPRESENTATION
OneimportanttooltomeetthisresponsibilityisBAMA'sethicalcollaboration
model.Thisdescribestheworkprinciplesthathavebeenestablishedovera
numberofyearsthatcommittheentire
organisation,andwhichareintegrated
intoourday-to-daywork.
maintainongoingcontactwithalarge
networkofsuppliers,tradeunions,
authoritiesandprivateorganisations.
Inpracticethistendstoinvolveregular
visits,andcontinuousdialoguewith
partnerswhocanhelpustoworkeven
moreefficiently.
24%
BAMApurchasesgoodsfrom84countriesonallcontinents,andoftenfrom
countrieswherepeopleliveandwork
underquitedifferentconditionstothose
foundinNorway.Thiscanmakepurchasingworkchallenging.Wehavechosento
approachtheseissuesinalong-termand
process-orientedmanner,directlyandtogetherwiththesuppliers.OneofBAMA’s
expressgoalsistobeamodelbusiness
withinsocialresponsibilityintheEuropeanfruitandvegetablesmarket.
2009 2010 2011 2012 2013 2014*
In Guatemala we have helped to
develop a very small rural community. The country now exports
sweet peas to all parts of Europe.
42
43
CORPORATESOCIALRESPONSIBILITY
BAMA's ethical
collaboration model
1.
Weworkdirectlywithoursuppliers.
2.
Weadoptalong-termapproach,havealong-standing
associationwithmostofoursuppliersandarerelationship-oriented.
3.
Wesignuptointernationalagreementsaslaiddowninthe
UN’sILOconventions,andtheEU’supdatedstrategiesfor
CSR.
4.
Weusesocialdialogueasatool,inlinewithILOprinciples.
Forussocialdialoguemeansinvolvingcommercialpartners
andlocalauthoritiesinprocess-oriented,localimprovement
initiatives.Suppliersunwillingtomakerequiredimprovementswillhavetheircontractsterminated.
5.
WeworkcloselywithNorwegianauthoritiessuchasthe
EthicalTradingInitiative(IEH),theNorwegianConfederationofTradeUnions(LO)andtheEnterpriseFederationof
Norway(Virke)onwaystoestablisheffectiveimprovement
processesandbuilduporganisationalcapacityandusethe
partnershiptoimprovelocalprocesses.
6.
Weareinvolvedinmonitoringthevaluechain–regarding
qualityandtheenvironment,andsocially–fromfieldto
fork.
7.
Conditionsvaryineachcountryandateachsupplier.We
mustexercisediscretionandrespectdifferencesineach
individualcase–withoutcompromisingourbasicvalues.
8.
Oursocialresponsibilityencompassesmattersranging
allthewayfrompoverty,environmentalimpactsinthe
valuechain,corruptionandmoneylaundering,foodsafety
throughtothehealthandwelfareofchildrenandyoung
peopleinNorway(Benditcups,sportssponsorship).Insome
caseswehaveintervenedinnationalpoliticsinorderto
contributetopeace-brokeringwork(Palestine).
9.
Wehavenothingtohide.Theworldis–andwillremain
–complexandunfair.Werealisethatattimeswemaynot
alwayslearnaboutfailuresofoursupplierstomeetallour
demands,andthatwethusconstantlyhavetoremain“on
ourtoes”.Ourroleistostimulateimprovementsandimprovementprocesses,andtohelpensurethatnon-conformancesareaddressedintheplaceswherewetrade.
10. Webelievethatmaintainingtransparencyandimplementingprocessestodealwithanychallengesalongthevalue
chainarecurrentlymoresuitedtothecompany'sneeds
thancertificationschemes.
An active contributor
to society
We live in a country
where the average
15-year-old is sedentary for more time
than the average
80-year-old.
BAMA is the largest commercial fruit and vegetable company in Norway. This
presents us with a number of opportunities. However, it also confers a significant social responsibility.
Unhealthydietsandinactivityaretwo
ofthegreatestthreatstogeneralhealth
inthedevelopedworld.Weliveina
countrywheretheaverage15-year-old
issedentaryformoretimethanthe
average80-year-old.TheNorwegian
healthauthoritieshaveclearlyidentified
anumberofpotentiallychronichealth
issues.Thesewillposeanenormous
challengeforthehealthserviceinfuture
unlesswecandosomethingtoreverse
thecurrenttrend.
Withthegeneralpopulationprofessing
toaspiretomorehealthylifestyles,it
wouldbeeasytoassumethatthings
PHYSICAL ACTIVITY
3 out of 10 people take regular physical exercise.
arebetterthantheyreallyare.Thefact
isthatNorwegianconsumershavea
longwaytogobothintermsofdietand
physicalactivity.
Onlytwooutoftenpeopleeatthe
recommendedvolumeoffruitand
vegetables,andonlythreeoutoften
takeregularphysicalexercise.
BAMAisnowadoptinganevenmore
activesocietalpositionintheNorwegian
markettohelpreversethistrend.We
shallinspirethegeneralpublictomake
simpleandhealthyeverydaychoices
–whichwillleadtoabetterlife.
Threethingsarerequiredtomotivate
children,youngpeopleandadultsto
eatmorefruitandvegetables:high
quality,goodtaste,andeasilyaccessible
products.
BAMAbelievesthatinformedconsumers
makebetterchoices.Oneimportanttask
isthereforetopassonknowledgeabout
productqualities,howproductsshould
bepreparedtotasteasgoodaspossible
andthebeneficialeffectsthesehaveon
ourbodies.
Equallyimportantisencouragingpeople
totakephysicalactivity.Heretheauthoritiesrecommendthatweshouldtakeat
least30minutes'physicalactivityaday,
andwithanintensitythatmakesusperspireandleavesusslightlyout-of-breath.
Throughtargetedworkandmarketing,
andinclosecollaborationwithcustomers,partnersandthehealthandother
authorities,weshallleverageallchannels
inwhichweengagewithcustomers.
Inthenursery,schoolandworkplace,
throughsportseventsandinthemass
andsocialmedia,wewishtostimulate
andcontributetoimprovements,where
thebenefitsofahealthylifestylearethe
keymessage.
Weadoptalong-termapproach,onbehalfofourindustry.Forthebenefitofour
valuechainandsocietyasawhole.
DIET
2 out of 10 people eat the recommended
amount of fruit and vegetables.
44
45
SPONSORSHIP
Heightened focus on diet
and physical activity
The aim of BAMA's sponsorship activities is to convey to grass-root sports the importance of the right diet and physical activity. That is why we sponsor sport, in particular
for children and young people. In 2014 we heightened our focus on activities that
support this message during the events to which we contribute.
TheBenditeventsforchildrenandyoung
peoplerepresentourkeysponsorship
initiative,whichcelebrateditstenthanniversaryin2014.Herewemeetchildren
andyoungpeople–whotogetherwith
theirparentstotalalmost250, 000peopleeachyear–inanarenawherethefocusisonphysicalactivity,andwherewe
haveauniqueopportunitytoencourage
healthyandpositiveattitudesthatcan
becarriedoverintootherspheresoflife.
In2014wemarkedtenyearsofBendit
Cupfootballeventswithaspecialcup
competitionattheUllevålStadiumin
Oslo.ClubsfromallpartsofNorway
wereinvitedtothecelebrations,where
theygottoplayattheNationalStadium
completewithajointopeningceremonyandmedalceremonyinfrontofthe
RoyalBox–withthenationalNorwegian
footballmanagerandotherfootballstars
inattendance.
ALL-YEAR-ROUND AMBASSADORS
OverthelastyearBAMAhassystematicallyworkedtoensurethatourpartner
clubsundertakenotonlytoholdevents,
butalsotoactasambassadors.We
haveprovidedBenditeventsinfootball,
TEN YEARS OF THE
BENDIT CUP:
68
INCOME CLUB SALES FRUIT:
MNOK
cross-countryandbiathlonskiingwitha
widerandhealthiercontent–including
chefsandtastings,appearancesfrom
localproducersandleadingsportsstars,
andreadilyavailablesmoothies,salads
andready-cutfruitinthekiosks.Thishas
proventobeextremelypopularamong
participants–andhasgeneratedmuch
appreciatedrevenuefortheclubs.
Wearekeenforoureventclubstoperform
thisambassadorroleall-year-round,and
notjustduringcompetitions.Themessage
abouttheimportanceofagooddietfor
bothtrainingandcompetitioncannot
berepeatedenough.OurSportsFruit
initiativefacilitatestheabovebygiving
clubsa60percentdiscountonfruitand
vegetables.Alotoforganisationshave
takenadvantageofthistoreplacethe
traditionalcakerafflewithafruitbasket
raffle–withgreatsuccess.
ELITE SPORTS STARS SIGN UP
Thesameleadingfocuscharacterisesour
collaborationagreementswithelitesport.
BAMAhasbeenthemainsponsorofthe
Norwegianmen'sfootballteamformore
than20 years.TheFootballAssociationhas
alsotakenmeasurestoprovidehealthier
460
TOURNAMENTS
62,000
TEAMS
490,000
PARTICIPANTS
kioskofferingsatinternationalgamesat
theUllevålStadium,andisencouraging
otherfootballvenuesinNorwaytodo
likewise.Ithasdonethesameforthe
NorwegianFootballCupandNorwayCups
forcross-countryandbiathlonskiing,and
in2015willtakethingsfurtheratclub
levelheretoo.
BAMAhasalsoenteredintocollaborationagreementswithsomeofNorway's
leadingcross-countryandbiathlon
skiingstars.Thesehavenowtakenon
theroleofheathambassadors,and
activelyparticipateateventstoconvey
theimportanceofhealthydietsandlifestylestotheyoungparticipants.In2014
BAMA'sdietitiantookpartinatourwith
leadingsportsstarsandtheNorwegian
cross-countryskiingteam'ssupport
truckaroundNorway,wherepromotions
includedcoursesonhowtocutfruit.
RegardlessofwhetherwearecollaboratingwithlocalsportsclubsorOlympic
champions,theaimandthemessage
remainthesame.Toquotelong-time
BAMAassociate,OleEinarBjørndalen:
"Goodhabitsareacquiredyoung."
BAMA COLLABORATES
WITH ELITE SKIERS:
Johannes Thingnes Bø
Tarjei Bø
Emil Hegle Svendsen
Ole Einar Bjørndalen
Fanny Welle-Strand Horn
Marit Bjørgen
Therese Johaug
Sjur Røthe
Martin Johnsrud Sundby
Good habits are acquired
young.
Ole Einar Bjørndalen,
Norwegianbiathlonathlete
46
47
BAMAHR
EmployeesatNylandSydperform"wallsits"duringanexercisebreak.
Sickness absence
initiatives pay off
BAMA's decision to adopt an active position in society to promote healthy diets and physical activity also imposes obligations regarding our internal HR initiatives. We wish to be
a model business, with low sickness absence and high employee work satisfaction – by
quite simply "practising what we preach". Active and close follow-up along the entire value chain is the key to success in this regard, and 2014 saw the launch of new measures.
Thesicknessabsencerateisagood
yardstickoftheworkwearedoing.In
2014wemaintainedsicknessabsence
atthesamelowlevelasintheprevious
twoyears,ultimatelyachievingasmall
decrease.Thelevelhasconsistently
beenlowerthanincomparableindustries,whileworksatisfactionhasbeen
consistentlyhighyearafteryear.This
hasalsonotgoneunnoticedoutsidethe
company.
Becausesicknessabsenceinitiativespay
off.Withmorepeopleatwork,weretain
expertisetothebenefitofoperations
andgoodsflow.Withtherelocationof
someemployees'workplacesandnew
ITsystemsformoststaff,both2013and
2014provedtoughyearsforsomeareas
ofthecompany,Thishasmadeitextra
importanttomakemanagersaware
oftheimportanceofreducingsickness
absence,andactivelyhelpmanagersperformthisworkalongthevaluechain.
LOCAL PRESENCE
Anumberofimportantmeasureswere
implementedinthisareain2014.In
particular,wefocusedonmaintaining
apresenceintheoperatingunitsand
providingaservicewherepeoplework.
Theaimistobeastrategicandin-demandresourceandexpertisecentre
whichpeopledonothesitatetoconsult
foradviceandguidance.Thiswillmakeit
easiertoengagepeopleindialogue,and
identifyanyproblemsatanearlystage.
Managerswillcontinuetoberesponsible
forpersonnel,althoughtheywillnot
becomespecialists.AdedicatedHRteam
shallreducetheworkburdenonadayto-daybasisatalocallevel,whilemore
complexitemswillnaturallycontinueto
bedealtwithcentrally.
HRworkalsoinvolvesbuildingup
employees'knowledgeaboutdiets,
physicalactivityandresponsibility
fortheirhealth,inadditiontoforthe
populationasawhole.Theworkplace
representsmostpeoples'mainsocial
trainingvenue,andifwesuccessfully
educateour2,000employeesinthe
valueswerepresent,theycancarrythis
withthemandbecomepositiveBAMA
ambassadors.
Dailyinitiativestopreventsicknessabsenceandcreateemployeejobsatisfactionandhealthareanimportantreason
foroursuccess.Motivatedandhealthy
employeeswhoarehappyatworkmake
iteasiertosucceedinourgoalofmaking
therestofthepopulation"healthierand
fresher".
WorksatisfactionatBAMAoverthelast5yearshas
remainedstableataround4onascaleof1to5.
6.5%
7.2%
5.2%
6.5%
6.5%
5.2%
5.3%
2
2015
2014
NORWAY
1
2013
2014
2012
0
THE INDUSTRY
STEPS
STEPS
STEPS
STEPS
500
MILLION
2013
668
500
MILLION
MILLION
2014
2013
668
MILLION
12.712.7
2014 THE BAMA MARCH
Atotalof815participantstook668
millionsteps,thesameaswalking
roundtheworld12.7times.This
was27 percentfurtherthanthe
previousyear.
2
BAMA
815
THE BAMA MARCH
2014
3
2013
815
840
4
4
2012
840
PARTICIPANTS PARTICIPANTS
PARTICIPANTS PARTICIPANTS
5
2011
6
7.1%
8
TheBAMAMarchprovedasuccessonce
again,andaunifyingactivitythatwhettedthecompetitiveinstinctinmany
localdivisions.Atotalof 815participants
tookmorethan668millionsteps,the
sameaswalkingroundtheworld12.7
times–and27percentfurtherthanin
2013.
WORK SATISFACTION
7.2%
SICKNESS ABSENCE
LOCAL COMMITMENT THROUGH
BAMA PLUSS
FormanyyearsBAMAPluss'activities
havebeenanimportanttoolforinformingandinspiringouremployees.In2014
weattachedevengreaterimportance
toexpandingthegeographicalscopeof
theseactivities,andanumberofregional
initiativeswerelaunched.Oneofthese
wastheannualWinterDay,whichthis
yearweorganisedacrossNorway.
840
815
MILLION
STEPS
MILLION
STEPS
PARTICIPANTS PARTICIPANTS
500
2013
668
2014
48
49
TOPIC
108 YEARS OF MARKETING
We wasted little time in spreading knowledge about
and marketing our bananas. As long ago as 1906
we published our first information and advertising brochure, containing facts on bananas along
with several banana recipes. The author was Sigrid
Mathiessen – the importer's wife.
Creative advertising and marketing campaigns were one reason why banana sales
sky-rocketed in the ensuing years. as, did, in a manner of speaking, the 5.6 metre
high steel banana that was erected on the roof of our ripening shed at Filipstad in
1952. It is now part of the sculpture park in Høvikodden.
BAMA – making Norway fresher and healthier And the banana helps to achieve
just this – it really is a veritable little health bomb. Just have a look below.
They reduce blood
pressure thanks to
their high calcium
content.
They contain just
95 calories.
They provide
slow-release energy and are perfect
before and after
exercise.
They improve
mood by stimulating the brain's
production of
serotonin.
They are high in
fibre and thus aid
digestion.
They contain minerals that can help
you sleep.
Their high vitamin
B content regulates blood sugar
and calms the
nerves.
N
K
ING
THIS IS WHY YOU SHOULD EAT BANANAS!
ET
+ 6%
BANANA SALES
(VOLUME) 2014
GE
PER CAPITA
The banana is the most popular fruit
in Norway, and one of BAMA's largest
product groups. The average Norwegian eats 16.5 kgs of bananas each
year. We are keen to spread knowledge
about our products, and bananas are
no exception. Throughout 2014 we ran
regular advertising campaigns and
TV adverts with simple messages and
information promoting the health
benefits and versatility of the banana.
The result was a volume increase of 6
per cent.
LED
KG BANANAS
A BANANA-LOVING NATION
OW
16.5
The banana is the most
popular fruit in Norway,
and one of BAMA's largest
product groups.
AND MA
K
R
50
51
CORPORATEGOVERNANCE
Corporate governance 2014
BAMA Gruppen AS is a leading company and a trend-setting social player within
fresh and freshly processed fruit and vegetables, potatoes and flowers in Norway. The
company operates in a global market, which entails a significant obligation in terms
of food safety and corporate social responsibility. Effective corporate governance shall
contribute to increased growth, value creation and a good reputation.
CORPORATE GOVERNANCE
InaccordancewiththeNorwegian
Companies’Act,thecompany’sboard
isresponsibleforensuringthatthe
company’sbusinessandadministration
areproperlyorganised.BAMAGruppenis
runasanautonomousandindependent
company.Ithasagroupstructureunder
whichtherespectivebusinessareas
areconstitutedasindependentlimited
companies,withownboardswithcorrespondingresponsibilityfortheindividual
companies.
volumegrowthforfruitandvegetables
shallbe3percent.
CORE VALUES
BAMAGruppenASdemandshonesty
andfairnessinallmattersrelatingtoits
businessactivities.Intheirconduct,all
staffandrepresentativesshallpromote
thecompany’scorevalues,complywith
applicableregulationsandlegislation
atalltimesandperformtheirworkin
accordancewithgoodbusinesspractice.
BAMAGruppen’sethicalguidelinescan
beviewedatwww.bama.no
SHAREHOLDERS
BAMAGruppenhasfourshareholders:
NorgesGruppenASA(45.55percent),AS
Banan(33.66percent),RemaIndustrier
AS (19.8 percent) andMacaseAS(0.99
percent).Thecompany’ssharecapital
comprises303shareseachwithanominalvalueofNOK3,000.
BUSINESS OPERATIONS
BAMAGruppen’sArticlesofAssociation
establishthatthecompany’sobjects
compriseperformingtrading,industrialandinvestmentbusinessandother
relatedactivities,includingparticipating
inothercompanies.
TRADABILITY
Thecompany’sArticlesofAssociation
andshareholderagreementscontainprovisionsonthetradabilityoftheshares.
GENERAL MEETING
Theannualgeneralmeetingisheldonce
ayearbytheendofJune.Noticeofthe
generalmeeting,thenotice’scontents
andpublicationoftheagendadocumentscomplywiththerequirementslaid
downbytheNorwegianCompanies’Act
andtherulesofprocedureforgeneral
meetings.
BAMAGruppen’svisionistomakeNorwayfresherandhealthier.Themainobjectiveisforthecompanytobeperceived
asthebestsupplierandpartnerforits
customersandtobeagrowthdriverin
theNorwegianmarket.Theannualvalue
growthshallbeatleast8percentand
SHARE CAPITAL AND DIVIDENDS
Attheendof2014theGroup’sequity
totalledMNOK1,051.4,whichcorrespondstoanequityratioof23.3percent.
Theboardhasproposedthedistribution
ofadividendforthe2014financialyear
inlinewiththeprovisionscontainedin
theshareholderagreement,involvinga
market-basedreturnoninvestedcapital
fortheshareholders.
Thereisonesharecategoryandeach
sharecarriesonevote.
CORPORATE ASSEMBLY AND BOARD OF
DIRECTORS
Theboardcompriseseightmemberswho
areelectedforatermoftwoyears.The
ChairmaniselectedbytheGeneralMeeting.Therearethreeemployeerepresentativesontheboard.Norepresentatives
ofthegeneralmanagementteamsit
ontheboard.Theownersexercisetheir
influencethroughtheboardandinthe
generalmeeting.Theboard’stasksand
dutiesareregulatedintheadoptedrules
ofprocedurefortheboard,including
handlingmattersofacompetition-sensitivenaturerelatingtothecompany’s
customers.Fiveboardmeetingswere
heldin2014.
Inaccordancewithanagreemententeredintowithemployeerepresentative
bodies,BAMAGruppenhasnocorporate
assembly.
RISK MANAGEMENT AND INTERNAL
CONTROL
Thecompanyadoptsaproactiveapproachtoriskmanagement,inwhich
significantresponsibilityisdelegated
downwardsintheorganisationinline
withtheGroup’scorevalues.TheGroup’s
riskmanagementisbundledinacentral
stafffunction,whichmonitorsthevariousriskareasintheGroupandimplementsadhocmeasures.
Corporategovernancecomplieswiththe
NorwegianCodeofPracticefromOctober2014wheresuchisexpedientbased
onthecompany’soperations.
52
53
REPORTFROMTHEBOARDOFDIRECTORS
SteinAukner
BjørnØsteby
RuneFlaen
GunnHeleneArsky
KnutHartvigJohannson
Report from the board of
directors 2014
BAMA shall be an initiator of and
a model business for sustainable
development within the environment within our product areas.
NATURE AND LOCATION OF BUSINESS
TheGroupsellsfreshfruit,berries,
vegetables,potatoes,processedproducts,
flowersandotherproductswithalimitedshelf-life.TheGroupisheadquartered
inOslo,andhasdivisionsandsubsidiariesthroughoutNorway.TheGroup
alsoperformsactivitiesinSweden,the
NetherlandsandPoland.
BAMA'stransportstrategyclearlyfocuses
ontheuseofinter-modalsolutions(use
ofseveraltransportmeanssuchasroads,
railwaysandships,avoidingproducts
beinghandledduringchangeoftransportmethod),wheretheobjectiveisfora
higherpercentageofincomingtransport
tobemadeusinginter-modalsolutions
by2020.
TheGroup’sfinancialpositionissatisfactory.AtthereportingdatetheGroup
hadcashandcashequivalentsofMNOK
477.7. TotalassetsamountedtoBNOK
4.5,comparedwithBNOK4.0twelve
monthspreviously.Asof31 December
2014 consolidatedequitytotalledMNOK
1,051.4,whichequatestoanequityratio
of23.3percent. ThecertificationprocessfortheEnvironmentalLighthouseSchemestarted
in2010,andasof31December2014a
totalof35divisionshadbeencertified.
Recertificationprocessesarecarriedout
everythreeyears.
Therehavebeennoeventssincetheend
oftheaccountingyearofimportancefor
anassessmentofthecompanyorthe
Group.Withregardtotradingconditions
andpricechangesforproductsincludedinthecompany’sandtheGroup’s
business,theBoardisnotawareofany
matterofinterestforanassessment
ofthecompanyortheGroup,withthe
exceptionofmattersdiscussedinother
sectionsoftheannualfinancialstatements.
GOING CONCERN
Theannualfinancialstatementsfor
2014havebeenpreparedinaccordance
withtheNorwegianAccountingActand
generallyacceptedaccountingpractice
inNorway(NGAAP).Theboardconfirms
thatthecompanyfulfilsalltheprerequisitesnecessarytocontinueasagoing
concern.
WORKING ENVIRONMENT AND
PERSONNEL
BAMAaimstobethemostattractive
employerwithinitsownandcomparableindustries.Thecompanyconsciously
strivestocreateagoodworkingenvironmentandtheannualworksatisfaction
surveyrevealedhighlevelsofsatisfaction
withtheworkplace.BAMAhascontinued
its"BAMAPluss"initiative–aprogramme
focusingonemployeehealthandwelfare.In2014totalsicknessabsencefor
theNorwegianbusinessamountedto
5.2percent,whichisonaparwiththe
previousyear.
In2014BAMAGruppenAS's totalsicknessabsenceratecameinat 4.0percent,
comparedwith4.2percenttheprevious
year.Therewasonelost-timeworkinjury
inexcessofthestatutoryemployer
periodin2014.
GENDER EQUALITY
AttheendoftheyearBAMAGruppenAS
employed438permanentstaff,ofwhom
106werewomenand332weremen.
Theboardcomprisedeightmembers,
includingonewoman.Onememberof
thesix-strongmanagementgroupwas
awoman.
Asanexpressoverarchingprinciple,the
Groupshallpromoteequalityandpreventdiscriminationsoastoensurethat
everyoneisaffordedequalopportunities,
regardlessofgender,ageornationality.
TheGrouphastraditionallyrecruited
frommale-dominatedenvironments,
andthiscontinuestobethecase.The
percentageofwomenisparticularlylow
withingoodshandling.Weareendeavouringtoraisethepercentageofwomen
inthisareathroughbetterfacilitation
anduseoftechnicalaids.BAMAalso
wishestoemploymorewomenin
managementpositions,andinfuture
willdevelopmeasurestoincreasethe
percentageoffemalemanagersinthe
Group.
ENVIRONMENTAL REPORTING
BAMAshallbeaninitiatorofandamodelbusinessforsustainabledevelopment
withintheenvironmentwithinourproductareas.BAMAshalltakespecificmeasurestohelpreducewastageinthevalue
chain.Weshalldevelopenvironmentally
friendly,resource-savingsolutionsforour
customers,andhelptoachieveNorway's
nationalclimatereductiontargetsby
reducingourownconsumptionand
emissions.Environmentalimprovement
measuresareimplemented,measured
andreportedinaccordancewithour
objectivesandobligations.Packagingfor
ourproductsshallbeoptimised.
FINANCIAL PERFORMANCE AND POSITION
Totalconsolidatedsalesamountedto
BNOK13.5in2014.Thisrepresentsa
year-on-yearincreaseofBNOK1.0, (8.1
percent).AllpartsoftheGroup’sbusinessareasdeliveredacross-the-board
growth.
Theconsolidatedprofitfortheyearafter
taxcameinatMNOK344.4,compared
withMNOK409.1in2013.
Intheboard’sopinionthepresentedincomestatementandbalancesheetand
associatednotesprovideatrueandfair
pictureofthecompany’sandtheGroup’s
operationsandpositionattheendofthe
year.
JosteinHestøy
OUTLOOK
ConsumptioniscontinuingtoriseinNorway,inmarkedcontrasttothenegative
trendintherestofEurope.Thepotential
forcontinuedconsumptiongrowthin
thenextfewyearsisregardedassigni-
ficant.Thegeneralpublicisdisplaying
agrowinginterestinhealthyliving,and
asakeyplayer,throughanewstrategic
platform,weshallplayanactiverolein
societyinordertocreategreatergrowth
inNorwegianconsumptioninourproductcategories,inaccordancewithofficial
overarchinghealthpoliciesinNorway.
Marketcompetitionisstronginallour
businessareasandthereisasignificant
needtogenerateorganicgrowth,in
particularinfruitandvegetables.The
board'sfocusondefinedfocusareas,
includingthroughstrategicinternational
allianceswillbeprioritised.Thesame
appliestoinitiativestoreducethelead
timeinourvaluechaintobeabletooffer
fresherproducts.
Researchandinnovationinitiativesrelatingtohealthyproductsandfoodproductionwillbecomeevenmoreimportant
movingforward.Thisappliesinparticular
54
REPORTFROMTHEBOARDOFDIRECTORS
FINANCIALSTATEMENTS55
Income statement
for the period 1 Jan-31 Dec
PARENT COMPANY
KristianNergaard
JonMartinKlafstad
TommyKorneliussen
2013
2014
GROUP
NOK'000
NOTE
2014
2013
OPERATING REVENUES
toNorwegianproduction,whereseveral
projectshaverevealedthatwearemovingintherightdirectionwhenitcomes
toincreasingthepercentageofNorwegianproduction.
nessisnotdeemedtobeexposedtoany
interestraterisk.TheGroupisexposedto
fluctuationsinexchangerates,primarily
inEUR,andperformssomehedgingof
currencyonforwardpurchases.
FINANCIAL RISK
TheGroupisexposedtofinancialriskin
theformofinterestrate,currencyand
liquidityrisk.BAMAGruppenAS’sfinance
functionisorganisedasacentralunit
whichdealswithongoingfollow-upand
managementoftheliquiditysituation
andfinancialrisk.Interestraterisk
primarilyattachestotheNIBORmoney
marketinterestrate,whichessentially
formsthebasisforinterestreceivedand
paidontheGroup’sbankdepositsand
borrowings.TheGroup’soperatingbusi-
TheGroupaimstomaintaingoodliquidityatalltimes.TheGroup'sactivities
makeadailycontributiontoliquidity,
andtheGrouputilisesagroupaccount
schemetoefficientlydistributeliquidity.
TheGroupalsohasunutilisedcommitted
overdraftfacilities.
TheriskofbaddebtswithintheGroup’s
overalltradereceivablesportfoliois
deemedtobelow.Thecompanycontinuallyassessesthecreditofandmonitors
customerswithunpaidoverdueinvoices.
Inaddition,anin-housecreditdepartment
chasesupoverduepaymentscollaborating
withanexternaldebtcollectioncompany
wherenecessary.Inrecentyearsbaddebts
havebeenlowinrelationtotheGroup’s
sales.TheboarddeemstheGroup’sliquiditytobesatisfactory.
NET PROFIT AND ALLOCATION OF PROFIT
FOR THE YEAR
BAMAGruppenASpostedaprofitfor
theyearofMNOK259.9.Theboard
proposesadividendofMNOK205.0and
thatMNOK54.9betransferredtoother
equity.Afterthesetransactions,asof31
December2014thecompanyhadtotal
equityofMNOK833.8,whichequatesto
34.3 percent.
7,157,0797,538,729
117,290112,230
7,274,3697,650,959
1
Otheroperatingrevenues
Totaloperatingrevenues
13,448,105
12,460,591
74,223
49,227
13,522,328
12,509,818
OPERATING EXPENSES
6,725,5617,042,432
366,832375,525
51,003107,973
-24-49
51,616144,283
7,194,9887,670,164
Costofgoodssold
9,810,212
9,173,534
Salariesandpersonnelcosts
2
1,594,296
1,501,195
Depr./amort.ofnon-currentassetsandintangibleassets
5
339,705
226,733
4,566
3,531
Baddebts
Otheroperatingexpenses
Totaloperatingexpenses
1,280,747
1,047,594
13,029,526
11,952,587
492,802
557,231
0
0
79,381-19,205
Operatingprofit
FINANCIAL INCOME AND FINANCIAL EXPENSES
228,077273,066
Incomefrominvestmentsinsubsidiaries
Incomefrominvestmentsinassociates
6
3,613
2,853
13,93613,289
Otherfinancialincome
3
30,544
27,720
46,7580
Impairmentofsharesinsubsidiaries
0
0
12,80910,575
Otherfinancialexpenses
41,892
28,402
-7,735
2,171
485,067
559,402
140,699
150,333
344,368
409,069
Netincomeattributabletominorityinterests
47,642
66,217
Netincomeattributabletomajorityinterests
296,726
342,852
00
Oslo,14April2015
TheBoardofDirectorsofBAMAGruppenAS
Salesrevenues
182,446275,780
Netfinancialitems
261,827256,575
Profitbeforetax
3
KristianNergaard
Boardchair
JonMartinKlafstad
KnutHartvigJohannson
TommyKorneliussen
16,234-3,286
245,593259,861
SteinAukner
GunnHeleneArsky
59354,861
BjørnØsteby
RuneFlaen
CEO
NET PROFIT FOR THE YEAR
TRANSFERS
245,000205,000
JosteinHestøy
Taxexpense
245,593259,861
Proposeddividend
Transferredtootherequity
TOTAL
9
56
57
FINANCIALSTATEMENTS
Balance sheet
for the period 1 Jan-31 Dec
PARENT COMPANY
31 DEC 2013 31 DEC 2014
PARENT COMPANY
GROUP
ASSETS NOK'000
NOTE 31 DEC2014 31DEC 2013
GROUP
31DEC2013 31DEC2014
NON-CURRENT ASSETS
195,635
0
58,950
173,733
0
87,823
INTANGIBLE ASSETS
Logisticsandmanagementsystems
Goodwill
Deferredtaxassets
254,585
261,556
TOTALINTANGIBLEASSETS
435
6,270
70,668
435
6,263
77,614
PROPERTY, PLANT AND EQUIPMENT
Land
Buildingsandconstruction-relatedfittingsetc.
Transportmeans,machinery,equipmentetc.
77,373
84,312
TOTALPROPERTY,PLANTANDEQUIPMENT
NON-CURRENT FINANCIAL ASSETS
Investmentsinsubsidiaries
Intragrouploans
Investmentsinassociates
Othersharesandshareholdings
Otherlong-termreceivables
751,621
225,496
1,840
5,266
0
761,268
243,989
1,840
5,266
0
984,223
1,012,363
TOTALNON-CURRENTFINANCIALASSETS
1,316,181
1,358,231
TOTALNON-CURRENTASSETS
32,822
38,727
5
5
9
5
6
8
6
6
8
CURRENT ASSETS
Inventories
181,624
127,684
142,775
204,450
66,269
113,856
452,083
384,575
203,507
1,308,565
567,435
203,507
1,205,521
471,573
2,079,507
1,880,601
0
0
35,418
8,081
5,339
0
0
32,135
6,381
4,857
48,838
43,373
2,580,428
2,308,549
357,159
421,811
909
356,250
TOTALPAID-INEQUITY
357,159
357,159
476,672
RETAINED EARNINGS
Otherequity
546,357
459,565
0
0
MINORITYINTERESTS
147,844
180,782
778,970
833,831
TOTALEQUITY
10
1,051,360
997,506
136,062
148,795
LIABILITIES
PROVISIONS
Pensionliabilities
4
172,558
158,032
136,062
148,795
TOTALPROVISIONS
172,558
158,032
0
0
0
30,288
OTHER LONG-TERM LIABILITIES
Liabilitiestocreditinstitutions
Otherlong-termliabilities
727,636
0
398,765
259
0
30,288
TOTALLONG-TERMLIABILITIES
727,636
399,024
69,793
756,106
10,587
27,258
205,000
350,836
CURRENT LIABILITIES
Liabilitiestocreditinstitutions
Tradepayables
Taxpayable
Publicchargespayable
Proposeddividend
Othercurrentliabilities
50,035
1,052,819
125,533
137,893
263,909
932,923
16,924
1,045,186
153,674
113,128
290,689
808,762
12
1,066,986
113,144
964,588
183,969
1,180,130
1,148,557
1,426,880
1,419,580
TOTALCURRENTLIABILITIES
2,563,112
2,428,363
477,671
304,079
1,562,942
1,598,663
3,463,306
2,985,419
2,341,912
2,432,494
TOTALLIABILITIES
TOTALLIABILITIESANDEQUITY
4,514,666
3,982,925
966,713
997,660
TOTALRECEIVABLES
26,196
37,876
1,025,731
1,074,263
TOTALCURRENTASSETS
1,934,238
1,674,376
2,341,912
2,432,494
TOTALASSETS
4,514,666
3,982,925
13
357,159
909
356,250
11
221,740
716,165
281,495
Cashatbankandonhand
909
356,250
276,437
704,145
262,568
7
909
356,250
EQUITY
PAID-IN EQUITY
Sharecapital
Sharepremium
NOTE 31DEC 2014 31DEC 2013
46,274
786,294
32,502
23,287
245,000
293,523
RECEIVABLES
Tradereceivables
Othercurrentreceivables
7
EQUITY AND LIABILITIES NOK'000
12
7
9
10
7
58
FINANCIALSTATEMENTS
Notes to the financial
statements
Statement of cash flow
for the period 1 Jan-31 Dec
Accounting policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
PARENT COMPANY
2013 2014
Note 1 – Sales revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
GROUP
NOK'000
NOTE
Note 2 – Salaries and payroll costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
2014 2013
256,575
Profitbeforetax
-40,794
-32,502
Taxespaidintheperiod
-1,609
-1,224
Profit/lossonsaleofnon-currentassets
18,503
37,973
Depreciationandamortisation
32,500
70,000
Impairmentsfortheyear
-3,264
-5,905
Changeininventories
-127,903
-12,020
Changeintradereceivables
164,389
-30,188
Changeintradepayables
288,186
44,667
591,835
327,376
-262,311
-96,027
485,067
559,402
-153,674
-158,128
-4,006
-4,255
258,010
184,863
81,695
41,870
-54,697
-22,565
-102,398
-144,748
7,633
164,766
Changeinotheraccrualsandprepayments
213,448
273,007
Netcashflowfromoperatingactivities
731,078
894,212
-612,374
-1,262,323
5,560
4,690
Saleofnon-currentassets
21,948
13,987
-202,615
-9,647
Changeinotherinvestments
-4,983
-2,106
-459,366
-100,984
-595,409
-1,250,442
CASH FLOW FROM INVESTING ACTIVITIES
Investmentsinproperty,plantandequipment
Netcashflowfrominvestingactivities
CASH FLOW FROM FINANCING ACTIVITIES
0
30,288
-207,000
-245,000
Dividendspaid
328,612
283,192
-290,689
-242,812
-207,000
-214,712
Netcashflowfromfinancingactivities
37,923
40,380
-74,531
11,680
Totalchangeincashandcashequivalents
173,592
-315,850
100,727
26,196
Cashandcashequivalents1Jan
304,079
619,929
26,196
37,876
Cashandcashequivalents31Dec
477,671
304,079
Changeinlong-termliabilities
Note 4 – Pensions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Note 5 – Property, plant and equipment/Intangible assets . . . . . . . . . . . . . . . . . 66
CASH FLOW FROM OPERATING ACTIVITIES
261,827
Note 3 – Net financial items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Note 6 – Shareholdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Note 7 – Intercompany balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Note 8 – Long-term receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Note 9 – Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
Note 10 – Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
Note 11 – Share capital and shareholder information . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Note 12 – Long-term liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Note 13 – Restricted funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Note 14 – Related parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Note 15– Forward exchange contracts and interest swaps . . . . . . . . . . . . . . . . . 74
60
61
NOTESTOTHEFINANCIALSTATEMENTS
Accounting policies
Theannualfinancialstatementshave
beenpreparedinaccordancewiththe
provisionsoftheNorwegianAccounting
Actandgenerallyacceptedaccounting
practiceinNorway(NGAAP).
REORGANISATION
ThefollowingreorganisationswereimplementedintheGroupin2014:
NordicLunchHoldingASmergedwith
BAMAInternationalAS.
TheGroceryandHoReCabusinessesin
BAMAKongsvingerASweremergedwith
respectivelyBAMADagligvareASand
BAMAStorkjøkkenAS.
TheactivitiesofBAMATelemarkASwere
spunofftoBAMADagligvareTelemark
AS,BAMAStorkjøkkenTelemarkASand
BareFruktogGrøntTelemarkAS.
ThegourmetsectionofBAMAStorkjøkkenOsloASwasspunofftoaseparate
legalentitycalledAugustaArnesenAS.
Followingthespin-offoftheactivitiesof
ByBlomstAS,CityBlomstAS,FlorissLambertseterASandFlorissGjøvikASMarco
ASwasmergedwiththeownercompany
FlorissDriftAS.
FlorissDriftASacquired100 percentof
thesharesinSjøsidenBlomsterAS.
Allspin-offsandmergerswereimplementedwithaccountingandtaxeffect
from1Januar 2014(accountingandtax
continuity).
Thecompletedreorganisationshavenot
hadanyeffectontheconsolidatedfiguresasthereorganisationswereentirely
withintheGroup.
USE OF ESTIMATES
Thepreparationoffinancialstatements
inaccordancewiththeNorwegian
AccountingActrequirestheuseof
estimates.Italsorequiresmanagement
toexerciseitsjudgementintheprocess
ofapplyingtheGroup’saccounting
policies.Areaswhichmakeextensiveuse
ofjudgementsorinvolveahighdegree
ofcomplexity,orareaswhereassumptionsandestimatesarematerialtothe
consolidatedfinancialstatementsare
describedinthenotes.
FOREIGN CURRENCY
Receivablesandpayablesinforeigncurrenciesarevaluedattheexchangerate
atthebalancesheetdate.
Exchangegainsandlossesrelatingto
salesandpurchasesinforeigncurrencies
arerecognisedasfinancialitems.
SALES REVENUES
Revenuesfromthesaleofgoodsandservicesarerecognisedatthefairvalueof
theconsiderationreceived,netofValue
AddedTax,returns,rebates,andotherdiscounts.Salesofgoodsarerecognisedin
incomewhenthecompanyhasdelivered
itsproductstothecustomerandthere
arenounfulfilledobligationsthatcould
affectthecustomer’sacceptanceofthe
delivery.
Servicesarerecognisedinincomeasthey
areperformed.
TAX
Thetaxexpenseintheincomestatementcomprisesbothtaxpayablefor
theaccountingperiodandchangesin
deferredtax.Deferredtaxiscalculated
as27percentofthebasisoftemporarydifferencesthatexistbetween
theaccountingandtax-written-down
values,andtaxlosscarryforwardsatthe
endofthefinancialyear.Tax-increasing
andtax-reducingtemporarydifferences
thatreverseormayreverseinthesame
periodareoffset.Deferredtaxassetsare
recognisedinthebalancesheettothe
extentthatitisprobablethatthesemay
beutilised.
CLASSIFICATION AND VALUATION OF
BALANCE SHEET ITEMS
Currentassetsandcurrentliabilities
includeitemsthatfalldueforpayment
withinoneyearofthetimeofacquisitionanditemsrelatingtothegoods
circulation.Otheritemsareclassifiedas
non-currentassets/long-termliabilities.
Currentassetsarevaluedatthelowerof
costandfairvalue.Currentliabilitiesare
recognisedatnominalvalueinthebal-
ancesheetonthedatetheyareincurred.
Long-termliabilitiesarerecognisedat
nominalvalueinthebalancesheeton
thedatetheyareincurred.
RESEARCH AND DEVELOPMENT
Developmentcostsarerecognisedinthe
balancesheettotheextentthatafuture
financialbenefitcanbeidentifiedasderivingfromthedevelopmentofanidentifiableintangibleassetandtheexpenses
canbereliablymeasured.Otherwise
costsareexpensedonanongoingbasis.
Developmentcostsrecognisedinthebalancesheetareamortisedonastraightlinebasisovertheirusefuleconomic
lives.Researchcostsareexpensedonan
ongoingbasis.
Thecostofsoftwareandexpenses
relatingtotheimplementationand
adaptationoftheGroup'slogisticsand
managementsystemsarerecognised
inthebalancesheetandamortisedon
astraightlinebasisovertheiruseful
economiclives.
PROPERTY, PLANT AND EQUIPMENT
Property,plantandequipmentis
recognisedinthebalancesheetand
depreciatedoveritsestimatedusefullife.
Directmaintenanceofoperatingassets
isexpensedunderoperatingexpenses,
whereasimprovementsandupgrades
areassignedtotheoperatingasset’scost
anddepreciatedinlinewiththeasset.If
therecoverableamountoftheoperating
assetislowerthanitsbookvalue,the
assetiswrittendowntoitsrecoverable
amount.Therecoverableamountisthe
higherofthenetsalespriceandvalue
inuse.
Thevalueinuseisthepresentvalueof
thefuturecashflowsthattheassetis
expectedtogenerate.
FORWARD CONTRACTS AND INTEREST
SWAPS
Forwardcontractsthathedgefuture
receipts/paymentsarenotrecognisedin
thefinancialstatements.Realisedgains/
lossesoninterestswapsarerecognised
intheincomestatement.
SHARES IN SUBSIDIARIES, JOINT
VENTURES AND ASSOCIATES
Subsidiariesarecompaniesoverwhich
theparentcompanyexercisescontrol,
andthusacontrollinginfluenceoverthe
entity'sfinancialandoperatingstrategy,
normallythroughownershipofmore
thanhalfofthevotingrights.Investmentsof20–50 percentofvotingrights
andsignificantinfluencearerecognised
asinvestmentsinassociates.
Investmentsinsubsidiariesandassociatesarerecognisedinaccordancewith
thecostmethodinsingleentityfinancial
statements.
Thecostisincreasedwhenfundsare
addedasaresultofcapitalincreases,
orwhensubsidiariesreceiveGroup
contributions.Receiveddistributionsare
essentiallyrecognisedinincome.Dividendsthatexceedtheshareofretained
earningsafterthepurchasearerecognisedasacostreduction.Dividends/
Groupcontributionsfromsubsidiaries
arerecognisedinthesameyearinwhich
thesubsidiaryprovidesfortherelevant
amount.
Dividendsfromothercompaniesare
recognisedasfinancialincomeoncethe
dividendhasbeenapproved.
Investmentsinassociatesarerecognised
intheconsolidatedfinancialstatements
inaccordancewiththeequitymethod.
Theapplicationofthismethodresultsin
thebookvalueinthebalancesheetcorrespondingtotheshareoftheequityin
theassociates,adjustedforanyresidual
excessvaluesarisingonthepurchase
andunrealisedinternalprofits.Theshare
ofresultsintheincomestatementis
basedontheshareoftheresultaftertax
intheassociates,adjustedforanyamortisationofexcessvaluesandunrealised
profits.Theshareofresultsisrecognised
intheincomestatementunderfinancial
items.
ArcticSpòlkâZ.O.O,Poland,isdefinedasa
jointventureandrecognisedinaccordancewiththegrossmethod.
INVENTORIES
Bought-ingoodsarevaluedatthelower
ofcostandestimatedsalespriceless
coststosell.
Goodsproducedin-housearevaluedat
fullcostofmanufacturewrittendown
forpotentialobsolescenceinaccordance
withgenerallyacceptedaccounting
practice.
RECEIVABLES
Tradeandotherreceivablesarerecognisedinthebalancesheetatnominal
valuelessprovisionsforbaddebts.
Provisionsforbaddebtsaremadeonthe
basisofindividualassessmentsofthe
relevantreceivables.
CURRENT INVESTMENTS
Currentinvestments(sharesandshareholdingsrecognisedascurrentassets)
arevaluedatmarketvalueatthebalance
sheetdate.
Dividendsandotherdistributions
receivedfromthecompaniesinwhich
investmentsaremadearerecognisedin
incomeasotherfinancialincome.
PENSIONS
Theparentcompanyandthesubsidiariesareobligedtooperateoccupational
pensionschemesinaccordancewiththe
NorwegianActonMandatoryOccupationalPensionSchemes.Thecompanies’
pensionschemessatisfytherequirementsoftheaboveActandtheGroup
operatesbothdefinedcontributionand
definedbenefitschemes.Forcompanies
withdefinedcontributionschemesthe
pensionexpensefortheyearequatesto
paid-incontributions.
Inthecaseofdefinedbenefitschemes,
thepensionexpenseandpensionliabilitiesarecalculatedinaccordancewith
thelinearearningsmethodbasedon
theexpectedfinalsalary.Thecalculation
isbasedonanumberofassumptions,
includingthoserelatingtodiscount
rates,futurewageadjustments,pensions
andotherpaymentsfromtheNational
InsuranceScheme,futurereturnonpensionassetsandactuarialassumptions
fordeathsandvoluntarydepartures.
Pensionassetsarevaluedatfairvalue
lessnetpensionliabilitiesinthebalance
sheet.Changesinpensionliabilities
duetochangesinpensionschemesare
recognisedovertheestimatedresidual
vestingperiod.
Changesintheliabilityandpension
assetsattributabletochangesand
deviationsincalculationassumptions
(estimatechanges)areallocatedoverthe
expectedaverageresidualvestingperiod
ifthedeviationsatthestartoftheyear
exceed10percentofthehigherofgross
pensionliabilitiesandpensionassets.
STATEMENT OF CASH FLOW
Thestatementofcashflowhasbeen
preparedinaccordancewiththeindirect
method.Cashandcashequivalents
includecash,bankdepositsandother
current,liquidinvestments.
BASIS OF CONSOLIDATION
Subsidiariesareconsolidatedfromthe
timecontrolistransferredtotheGroup.
Intheconsolidatedfinancialstatementstheitemsharesinsubsidiaries
isreplacedwiththesubsidiary'sassets
andliabilities.Theconsolidatedfinancialstatementsarepreparedasifthe
Groupwereasingleeconomicentity.
Transactions,unrealisedprofitsand
intercompanybalancesareeliminatedon
consolidation.
Acquiredsubsidiariesarerecognisedin
theconsolidatedfinancialstatements
basedontheparentcompany'scost.
Costisallocatedtoidentifiableassets
andliabilitiesinthesubsidiary,and
recognisedintheconsolidatedfinancial
statementsatfairvalueatthetimeof
acquisition.
Anyexcessvaluesotherthanthosethat
canbeallocatedtoidentifiableassetsor
liabilitiesarerecognisedinthebalance
sheetasgoodwill.Goodwillisrecognised
asaresidualinthebalancesheetinthe
percentageobservedintheacquisition
transaction.Excessvaluesareamortisedovertheexpectedlifetimeofthe
purchasedassetsintheconsolidated
financialstatements.
Minorityinterestsarerecognisedin
thebalancesheetonaseparatelineas
theminority'sshareofnetassetsand
liabilities.
Theminority'sshareisrecognisedin
consolidatedequity.
Thebalancesheetandincomestatement
offoreignsubsidiariesaretranslatedat
thebalancesheetrateandaveragerate
respectively.Anymaterialtransactions
aretranslatedatthedailytransaction
rate.Alltranslationdifferencesarerecogniseddirectlyinequity.
62
63
NOTESTOTHEFINANCIALSTATEMENTS
THE FOLLOWING COMPANIES ARE INCLUDED IN BAMA GRUPPEN AS’S CONSOLIDATED FINANCIAL STATEMENTS:
PARENTCOMPANY
SUBSIDIARY
REGISTEREDOFFICE
BAMAGruppenAS
5OmDagenAS
Oslo
BAMAGruppenAS
BAMAGr.BlomsterHoldingAS
BAMAGruppenAS
SHAREHOLDING
PARENTCOMPANY
SUBSIDIARY
REGISTEREDOFFICE
SHAREHOLDING
100.00%
BAMAStorkjøkkenAS
BAMAStorkjøkkenVestfoldAS
Sem
100.00%
Oslo
100.00%
BAMAStorkjøkkenAS
KøltzowInnkjøpAS
Oslo
100.00%
RågodtAS
Oslo
100.00%
BAMAStorkjøkkenAS
BAMAStorkjøkkenOsloAS
Oslo
63.00%
BAMAGruppenAS
JobbfruktAS
Oslo
100.00%
BAMAStorkjøkkenAS
BAMAStorkjøkkenTelemarkAS
Skien
51.04%
BAMAGruppenAS
FruktengrosAS
Oslo
100.00%
BAMABlomsterHoldingAS
BAMABlomsterTradingAS
Asker
100.00%
BAMAGruppenAS
BAMAInternationalAS
Oslo
100.00%
BAMABlomsterHoldingAS
BAMABlomsterAS
Asker
100.00%
BAMAGruppenAS
BAMATelemarkHoldingAS
Skien
100.00%
BAMABlomsterHoldingAS
BareBlomsterAS
Oslo
100.00%
BAMAGruppenAS
BAMATorgfriskAS
Oslo
100.00%
BAMABlomsterHoldingAS
SørblomstAS
Kristiansand
100.00%
BAMAGruppenAS
BAMADagligvareAS
Oslo
100.00%
BAMABlomsterHoldingAS
FlorissDriftAS
Asker
63.00%
BAMAGruppenAS
BAMAStorkjøkkenAS
Oslo
100.00%
BAMABlomsterAS
LyssandBlomstersalgAS
Os
50.00%
BAMAGruppenAS
BareFruktogGrøntAS
Oslo
100.00%
FlorissDriftAS
ByBlomstAS
Oslo
100.00%
BAMAGruppenAS
BAMAEiendomAS
Oslo
100.00%
FlorissDriftAS
CityBlomstAS
Oslo
100.00%
BAMAGruppenAS
BAMAPakkerierAS
Oslo
100.00%
FlorissDriftAS
FlorissGjøvikAS
Oslo
100.00%
BAMAGruppenAS
BAMAFerskeDrikkerAS
Oslo
100.00%
FlorissDriftAS
FlorissLambertseterAS
Oslo
100.00%
BAMAGruppenAS
LågenPotetpakkeriAS
Steinsholt
100.00%
FlorissDriftAS
SjøsidenBlomsterAS
Horten
100.00%
BAMAGruppenAS
BareNordAS
MoiRana
92.28%
BAMAIndustriAS
NordicLunchAS
Oslo
100.00%
BAMAGruppenAS
BAMAIndustriAS
Oslo
92.10%
BAMAIndustriAS
PotetPartnerAS
Grue
BAMAGruppenAS
BAMABlomsterHoldingAS
Oslo
90.30%
BAMALogistikkAS
SandvikTransportAS
Notodden
100.00%
BAMAGruppenAS
HvebergsmoenPotetpakkeriAS
Grue
51.10%
BAMALogistikkAS
K.SkovlyTransportAS
Rygge
100.00%
BAMAGruppenAS
BAMALogistikkAS
Skien
51.04%
BAMAStorkjøkkenOsloAS
AugustaArnesenAS
Oslo
100.00%
66.67%
BAMAGruppenAS
LarvikLøkAS
Larvik
50.00%
BAMAStorkjøkkenOsloAS
CarlHeftyeAS
Oslo
100.00%
BAMAGruppenAS
MjøsgrøntAS
Stange
50.00%
BAMAStorkjøkkenOsloAS
W.KøltzowAS
Oslo
65.80%
BAMAGruppenAS
BareAS
Oslo
50.00%
BAMATelemarkHoldingAS
BAMATelemarkAS
Skien
51.04%
BAMAEiendomAS
LågendalspakkerietAS
Steinsholt
100.00%
BAMATelemarkHoldingAS
BareFruktogGrøntTelemarkAS
Skien
51.04%
BAMAEiendomAS
FrierEiendomAS
Oslo
100.00%
BAMAFerskeDrikkerAS
NordicJuicesAS
Oslo
BAMAEiendomAS
NylandSydAS
Oslo
100.00%
BAMABlomsterTradingAS
BAMABloemenHollandBV
Netherlands
100.00%
BAMAEiendomAS
NedreRommenAS
Oslo
100.00%
BAMAInternationalAS
Nature’sManagementBV
Netherlands
82.50%
BAMAEiendomAS
Kildehaugen10AS
Oslo
100.00%
BAMAInternationalAS
NordicLunchAB
Sweden
BAMAEiendomAS
Silovegen10AS
Oslo
100.00%
BAMAEiendomAS
FrubaEiendomAS
Oslo
100.00%
BAMAEiendomAS
Rudsflata3AS
Oslo
100.00%
BAMAEiendomAS
BaGaEiendomAS
Tønsberg
75.00%
BAMADagligvareAS
BAMADagligvareVestfoldAS
Larvik
100.00%
BAMADagligvareAS
AlsakerFruktogGrøntAS
Oslo
100.00%
BAMADagligvareAS
KSSKØstfoldMidlertidigAS
Oslo
100.00%
BAMADagligvareAS
FruktGrøntSpesialistenAS
Lier
93.35%
BAMADagligvareAS
BAMAÅlesundAS
Ålesund
62.13%
BAMADagligvareAS
BAMADagligvareTelemarkAS
Larvik
51.04%
BAMADagligvareAS
OlavAakreAS
Tromsø
50.00%
THEFOLLOWINGCOMPANIESWERENEWTOTHEGROUPIN2014:
SjøsidenBlomsterAS.
BAMADagligvareTelemarkAS,BAMAStorkjøkkenTelemarkAS,BareFruktogGrøntTelemarkAS,ByBlomstAS,CityBlomst
AS,FlorissLambertseterASandFlorissGjøvikASarealsonew,butarenonethelessallcontinuingactivitiesthatwere
previouslyperformedbyotherGroupcompanies.
50.00%
100.00%
64
65
NOTESTOTHEFINANCIALSTATEMENTS
Note 1 Sales revenues
Note 3 Financial items
PARENTCOMPANY
GEOGRAPHICALLOCATION
Norway
RestofEurope
TOTAL
GROUP
PARENTCOMPANY
2014
2013
2014
2013
7,538,729
0
7,538,729
7,157,079
0
7,157,079
11,970,511
1,477,594
13,448,105
11,238,688
1,221,903
12,460,591
OTHERFINANCIALINCOME
Interestincome
InterestincomefromGroupcompanies
Otherfinancialincome
TOTALOTHERFINANCIALINCOME
GROUP
2014
2013
2014
2013
6,146
6,484
659
13,289
6,116
7,820
0
13,936
22,271
0
8,273
30,544
18,538
0
9,182
27,720
2,008
1,554
7,013
10,575
1,669
2,637
8,503
12,809
24,245
0
17,647
41,892
12,814
0
15,588
28,402
OTHERFINANCIALEXPENSES
Interestexpenses
InterestexpensesGroupcompanies
Otherfinancialexpenses
TOTALFINANCIALEXPENSES
Note 2 Salaries and payroll costs, number of employees,
remuneration, employee loans etc.
PARENTCOMPANY
SALARIESANDPAYROLLCOSTS
Remuneration
Employer’snationalinsurancecontributions
Pensioncostsetc.
Otherbenefits
TOTAL
Averagenumberoffull-timeequivalents
BENEFITSPAIDTOSENIOREXECUTIVES
Salary
Shareofpensionpremium
Otherbenefits
GROUP
2014
2013
2014
2013
241,249
49,657
41,278
43,341
375,525
210,624
44,284
61,500
50,424
366,832
1,209,784
185,083
84,790
114,639
1,594,296
1,094,530
167,706
101,272
137,687
1,501,195
470
418
2,527
2,340
CEO
THEBOARD
7,340,251
91,845
333,376
1,030,500
0
0
TheCEOhasanagreementprovidingtwoyears’severancepaywithadditionalbenefitsonterminationandabonusagreementcomprisingafixedandaperformance-relatedelement.Onretirementattheageof62inaccordancewiththepensionagreement,the
fixedelementofthebonusremainspayableuntiltheageof67.Benefitsinadditiontothegeneralschemearefinancedthroughthe
company’soperationsandareunfunded.WerefertoNote4.
REMUNERATIONPAIDTOAUDITORS
Statutoryauditing
Accountingandtaxconsultancy
Otherconsultancy
PARENTCOMPANY
GROUP
350,000
540,000
135,400
3,049,617
1,571,359
927,168
LOANSTOEMPLOYEES
TotalloanstoemployeesamounttoNOK6,912,024 intheparentcompanyandNOK12,559,824 fortheGroup.
OfthisamountloanstothegeneralmanagercompriseNOK 2,707,637
Note 4 Pensions
TheGroupoperatesbothdefinedcontributionanddefinedbenefitpensionschemes.
Theparentcompanyoperatesdefinedbenefitpensionschemescovering444currentemployeesand154pensioners.The
correspondingfiguresfortheGroupare1,275 and218respectively.Theschemesprovidetherighttodefinedfuturebenefits.
ThenewAFPschemeisadefinedbenefitmulti-entityscheme.ThecompaniescoveredbytheLO-NHOagreementhaveanactual
financialliabilityasaresultoftheagreementonthenewAFPscheme.However,thereisinsufficientinformationtofacilitate
inclusionoftheliabilityintheannualfinancialstatements.Consequently,noliabilityhasbeenrecognisedinthebalancesheetin
respectofthenewAFPscheme.
Theparentcompanyoperatesapensionschemefor11employeesand7pensionersthatisfinancedfromthecompany's
operations.
PARENTCOMPANY
Presentvalueofaccruedpensionentitlementsfortheyear
Interestexpenseonpensionliabilities
Yieldonpensionassets
Actuariallosses/(gains)recognisedintheincomestatement
Adm.expenses,employer’snationalinsurancecontributions
NETPENSIONCOSTS
Estimatedpensionliabilities
Pensionassets(atmarketvalue)
Actuariallosses/(gains)notrecognisedintheincomestatement
Employer’snationalinsurancecontributions
PREPAIDPENSIONS(NETPENSIONLIABILITY)
GROUP
FUNDED
PLAN
UNFUNDED
PLAN
FUNDED
PLAN
UNFUNDED
PLAN
21,348
11,258
-8,691
4,281
5,559
33,755
7,527
5,042
0
774
0
13,343
44,100
19,361
-14,687
6,134
10,296
65,204
7,527
5,045
0
741
0
13,313
-313,666
211,038
110,828
-14,471
-6,271
-172,124
0
29,600
0
-142,524
-558,887
382,081
174,340
-24,977
-27,443
-174,603
0
29,488
0
-145,115
66
67
NOTESTOTHEFINANCIALSTATEMENTS
FINANCIALASSUMPTIONS:
Discountrate
3.00%
Projectedyieldonfundassets
3.80%
Forecastsalaryincrease
3.25%
ExpectedadjustmentintheNationalInsuranceScheme’sBasicAmount(G) 3.00%
Forecastadjustmentofcurrentpension
3.00%
Standardinsuranceindustryassumptionshavebeenappliedasactuarialassumptions
fordemographicfactorsanddepartures.
GOODWILL
PARENT COMPANY
BUILDINGS,
FITTINGSAND
INSTALLATIONS
MACH.,EQUIP,
TR.MEANS
40,577
2,473
0
43,050
-36,787
6,263
8,031
0
146,705
30,740
-14,356
163,089
-85,475
77,614
15,226
0
10 year
Straight-line
5–25 years
Straight-line
3–10 years
Straight-line
LOGISTICSAND
MANAGEMENT
SYSTEMS
BUILDINGS,
FITTINGSAND
INSTALLATIONS
MACH.,EQUIP,
TR.MEANS
1,546,117
169,859
-4,128
1,711,848
-403,283
1,308,565
73,608
11,695
1,180,020
279,083
-46,881
1,412,223
-844,788
567,435
129,589
0
5–25 years
Straight-line
3–10 years
Straight-line
Cost1 Jan2014
Additionspurchasedoperatingassets
Disposals
COST31 DEC2014
Cumulativedepreciationandimpairments31 Dec 2014
BOOKVALUE 31 DEC 2014
Depreciationfortheyear
Impairmentsfortheyear
TOTALAMORTISATIONANDIMPAIRMENTS
Usefuleconomiclife
Depreciationmethod
GROUP
Cost1 Jan 2014
Additionspurchasedoperatingassets
Disposals
COST31 DEC 2014
Cumulativedepreciationandimpairments31 Dec 2014
BOOKVALUE31DEC2014
Depreciationfortheyear
Impairmentsfortheyear
Amortisationofgoodwill,etc.
TOTALAMORTISATIONANDIMPAIRMENTS
Usefuleconomiclife
Depreciation/amortisationmethod
225,635
62,814
0
288,449
-114,716
173,733
14,716
70,000
237,450
64,478
0
301,928
-120,304
181,624
17,275
70,000
10 year
Straight-line
LAND
435
0
0
435
435
0
0
LAND
203,507
0
0
203,507
203,507
0
0
5–10 years
Straight-line
Usefuleconomiclife
Depreciation/amortisationmethod
Note 5 Property, plant and equipment/Intangible assets
LOGISTICSAND
MANAGEMENT
SYSTEMS
521,493
98,954
0
620,447
-492,763
127,684
37,538
0
Cost1 Jan2014
Additions
Disposals
COST31 DEC2014
Cumulativedepreciationandimpairments31 Dec2014
Bookvalue31Dec2014
Depreciationfortheyear
IMPAIRMENTSFORTHEYEAR
TOTAL
413,352
96,027
-14,356
495,023
-236,978
258,045
37,973
70,000
107,973
TOTAL
3,167,094
513,420
-51,009
3,629,506
-1,368,375
2,261,132
220,472
81,695
37,538
339,705
Note 6 Shares in subsidiaries and other companies
Investmentsinsubsidiariesarevaluedinaccordancewiththecostmethodintheparentcompany,andwrittendownintheeventof
impairmentsnotdeemedtobetemporaryinnature.
COMPANYNAME
REG.OFFICE
Oslo
RågodtAS
Oslo
BAMAFerskeDrikkerAS
Oslo
BAMAGruppenBlomsterHoldingAS
Oslo
JobbfruktAS
Oslo
FruktengrosAS
Oslo
BAMATorgfriskAS
Oslo
BAMADagligvareAS
Oslo
BAMAStorkjøkkenAS
Oslo
BaReFrukt&GrøntAS
Oslo
BAMAEiendomAS
Oslo
BAMAPakkerierAS
Oslo
5OmDagenAS
Oslo
BAMAInternationalAS
Skien
BAMATelemarkHoldingAS
Oslo
BAMABlomsterHoldingAS
Oslo
BAMAIndustriAS
Trondheim
BaReNordAS
Grue
HvebergsmoenPotetpakkeriAS
Skien
BAMALogistikkAS
Larvik
LarvikLøkAS
Stange
MjøsgrøntAS
Oslo
BaReAS
Steinsholt
LågenPotetpakkeriAS
TOTALINVESTMENTSINSUBSIDIARIES
SHAREHOLDING
VOTING
RIGHTS
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
90.30%
92.10%
92.28%
51.10%
51.04%
50.00%
50.00%
50.00%
61.54%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
86.30%
92.10%
92.28%
51.10%
51.04%
50.00%
50.00%
50.00%
61.54%
BOOKVALUE
5 300
12 252
3 564
13 860
1 150
19 053
340
58,704
240
277,350
120
120
52,149
13,175
98 767
62 327
117 673
5 110
7 512
660
3,792
50
8,000
761,268
RECOGNISED PROFIT/LOSS
EQUITY31 DEC
2014
181
3,402
5,357
5,867
2,164
2,562
69,141
92,458
39,843
277,354
93
95
265,267
21,434
75,600
212,329
9,949
19,961
18,975
8,184
7,094
41
10,533
1,147,884
6
209
0
63
23
1,884
95,280
12,020
54,203
-14,826
-7
-5
91,020
52,162
14,832
50,779
23,123
-4,222
3,738
660
2,606
-6
-199
383,343
68
69
NOTESTOTHEFINANCIALSTATEMENTS
ASSOCIATES IN THE PARENT COMPANY VALUED IN ACCORDANCE WITH THE COST METHOD:
COMPANYNAME
TromspotetAS
GROUP/OTHER SHARES AND SHAREHOLDINGS:
REG.REG.
SHAREHOLDING
VOTING
RIGHTS
BOOK
VALUE
RECOGNISED
EQUITY
31 DEC
PROFIT/
LOSS
2014
Silsand
34%
34%
1,840
6,236
636
BOOKVALUE
COMPANYNAME
5,246
430
225
100
2,080
8,081
ØkernTorghallSA
InterfruktSA
ArtNorAS
Naustveien17AS
Misc.othersharesandshareholdings
TOTAL
ASSOCIATES IN GROUP:
COMPANYNAME
TromspotetAS
GROEiendomAS
MeumFruktogGrøntAS
TelefruktAS
KaraTransportAS
BlomstertorgetAS
TOTAL
REG.REG.
SHAREHOLDING
COST
31DEC2014
BOOKVALUE
1 JAN2014
Lenvik
Oslo
Sandfjord
Sauherad
Vågsøy
Porsgrunn
40.69%
20.14%
49.00%
45.00%
50.00%
50.00%
2,202
24,700
8,000
1 800
1,852
450
39,004
2,279
24,096
1,021
3,882
469
388
32,135
PARENT COMPANY
Groupcompanies
Other
TOTAL
ASSOCIATES IN GROUP:
COMPANYNAME
Note 7 Intragroup balances
SHAREOF
PROFIT/LOSS
DIVIDEND/OTHER
CHANGES
BOOKVALUECONSOLI-
DATEDFINSTATS.
ASOF1 JAN2014
259
2,688
-245
762
106
43
3,613
0
0
0
-90
-200
-40
-330
2,538
26,784
776
4,554
375
391
35,418
TromspotetAS
GROEiendomAS
MeumFruktogGrøntAS
TelefruktAS
KaraTransportAS
BlomstertorgetAS
TOTAL
TRADERECEIVABLES
2014
2013
2014
2013
683,716
32,449
716,165
677,288
26,857
704,145
273,924
7,571
281,495
233,449
29,119
262,568
TRADEPAYABLES
Groupcompanies
Other
TOTAL
OTHERCURR.RECS.
OTHERCURRENTLIABILITIES
2014
2013
2014
2013
188,890
567,216
756,106
211,653
574,641
786,294
217,321
133,515
350,836
151,514
142,009
293,523
Otherinvestmentsarevaluedatthelowerofcostandfairvalue.
Note 8 Receivables falling due after more than one year
PARENT COMPANY/OTHER SHARES AND SHAREHOLDINGS:
COMPANYNAME
ØkernTorghallSA
NorwegianFruitandVegetablesPromotionBoard
TOTAL
BOOKVALUE
5,246
20
5,266
PARENT COMPANY
Otherlong-termreceivables
Intragrouploans
PARENTCOMPANY
GROUP
2014
2013
2014
2013
0
243,989
0
225,496
5 339
0
4,857
0
70
71
NOTESTOTHEFINANCIALSTATEMENTS
Note 9 Taxes
BREAKDOWNOFDEFERREDTAXBASIS:
TAX IN PARENT COMPANY
THETAXEXPENSEFORTHEYEARCOMPRISESTHEFOLLOWING:
25,587
-28,873
-3,286
Corporationtaxpayable2014
Grosschangeindeferredtaxinbalancesheet
TOTALTAXEXPENSEFORTHEYEAR
Differences that are set off connected to:
Non-currentassets
Currentassets
Liabilities
Otherdifferences
TOTAL
Deferredtaxassets
Taxrate
31 DEC2014
31 DEC2013
-123,374
0
-188,795
-13,102
-325,271
87,823
27%
-49,177
0
-156,062
-13,095
-218,334
58,950
27%
RECONCILIATIONOFTAXEXPENSEANDTAXCALCULATEDATNOMINALTAXRATE:
-3,286
69,275
-72,561
Totaltaxexpense2014
Taxcalculatedatnominaltaxrate(27 %)oftheprofitbeforetax
VARIANCE
THEVARIANCERELATESTOTHEFOLLOWING:
-2
-72,559
-72,561
Changeindeferredtaxondividend
Taxonpermanentdifferences
TOTALDIFFERENCE
256,575
-268,738
106,929
94,766
25,587
Profitonordinaryactivitiesbeforetax
Permanentdifferences
Changeintemporarydifferences
BASISFORTAXPAYABLE
Tax,27%
Taxpayableonprofitfortheyear
TaxonGroupcontributionspaid
TAXPAYABLEINTHEBALANCESHEET
THETAXEXPENSEFORTHEYEARCOMPRISESTHEFOLLOWING:
Corporationtaxpayable2014
Otherchanges
Grosschangeindeferredtaxinbalancesheet
TOTALTAXEXPENSEFORTHEYEAR
2014
2013
25,587
-15,000
10,587
34,922
-2,420
32,502
170,825
-1,206
-28,919
140,699
RECONCILIATIONOFTAXEXPENSEANDTAXCALCULATEDATNOMINALTAXRATE:
Totaltaxexpensefortheyear
Taxcalculatedatnominaltaxrate(27%)oftheprofitbeforetax
VARIANCE
TAXPAYABLEFORTHEYEARCOMPRISES:
TAXPAYABLEINTHEBALANCESHEETCOMPRISES:
TAX IN CONSOLIDATED FINANCIAL STATEMENTS
140,699
130,968
9,730
THEVARIANCERELATESTOTHEFOLLOWING:
Taxonpermanentdifferences
Taxondeferredtaxassetsnotrecognisedinbalancesheet
Effectofdifferingtaxrates
Taxrelatingtopreviousyears
Currencyandotherdifferences
TOTALDIFFERENCE
4,856
-271
-298
2,491
2,951
9,730
TAXPAYABLEINTHEBALANCESHEETCOMPRISES:
Profitonordinaryactivitiesbeforetax
Permanentdifferences
Changeintemporarydifferences
Changeintaxlosscarryforward
BASISFORTAXPAYABLE
485,067
17,986
107,106
-67
610,092
Taxpayable,27%
Prepaidtax
TAXPAYABLEASOF31DECEMBER2014
170,825
-45,292
125,533
72
73
NOTESTOTHEFINANCIALSTATEMENTS
BREAKDOWNOFDEFERREDTAXBASIS:
Differences that are set off connected to:
Non-currentassets
Currentassets
Liabilities
Otherdifferences
TOTALREVERSINGTEMPORARYDIFFERENCES
Total non-reversing temporary differences:
Taxlosscarryforward
Taxlosscarryforwardnotrecognisedinthebalancesheet
TOTALNON-REVERSINGTEMPORARYDIFFERENCES
TOTALTEMPORARYDIFFERENCES
DEFERREDTAXASSETS
Taxrate
31 DEC2014
31 DEC2013
-89,135
-5,897
-429,941
17,709
-507,264
-49,528
8,153
-371,961
-6,128
-419,464
-29,295
7,763
-21,532
-10,991
8,765
-2,226
-528,796
-421,690
142,775
27%
113,856
27%
Note 11 Share capital and shareholder information
Thecompany'ssharecapitalofNOK909,000 comprises303shareseachwithaparvalueofNOK3,000.
OWNERSHIPSTRUCTURE
NorgesGruppenASA
ASBanan
RemaIndustrierAS
MacaseAS
OFFICE
MUNICIPALITY
SHARE-
HOLDING
Oslo
Oslo
Oslo
Oslo
45.55%
33.66%
19.80%
0.99%
ASBananisfullycontrolledbytheboardmemberKristianNergaardandhisrelatedparties.
MacaseASisfullycontrolledbytheCEOSteinRuneFlaen.
Note 12 Long-term liabilities – Mortgages and guarantees
Note 10 Equity
PARENTCOMPANY
PARENT COMPANY:
COMPANYNAME
EQUITY 1JANUARY2014
Netprofitfortheyear
Proposeddividend
EQUITY31 DECEMBER 2014
SHARE
CAPITAL
SHARE
PREMIUM
OTHER
EQUITY
TOTAL
909
356,250
778,970
259,861
-205,000
833,831
909
356,250
421,811
259,861
-205,000
476,672
SHARE
CAPITAL
SHARE
PREMIUM
OTHER
EQUITY
MINORITY
INTERESTS
TOTAL
909
356,250
909
356,250
459,565
-4,934
296,726
-205,000
546,357
180,782
-21,671
47,642
-58,909
147,844
997,506
-26,605
344,368
-263,909
1,051,360
GROUP:
COMPANYNAME
EQUITY1 JANUARY2014
Changesinequity,currencydifferencesetc.
Netprofitfortheyear
Proposeddividend
EQUITY31DECEMBER2014
GROUP
2014
2013
2014
2013
Liabilitiesmaturingaftermorethanfive years
Liabilitiesmaturinginlessthanfiveyears
LIABILITIESTOCREDITINSTITUTIONS
0
0
0
0
0
0
140,242
587,394
727,636
233,243
165,522
398,765
LIABILITIESSECUREDBYMORTGAGESETC.
LIABILITIESTOCREDITINSTITUTIONS(INCLUDINGCURRENT)
0
0
777,671
415,689
TheparentcompanyhasissuedanegativepledgeforitstotalexposurewithDNB.
ThesubsidiaryOlavAakreAShasfurtherpledgedassetsuptoNOK4,262ascollateral
forbankoverdrafts.Thisoverdraftfacilitywasunutilisedasof31December2014. NylandSydAShaspledgedafirst-priority mortgageonpropertyunderconstructionintheamountofMNOK750.
SandvikTransportAShasissuedaguaranteeforTelemarkFylkeskommuneintheamountofMNOK1,367
Nature’sManagementBVhasalsomortgagedfuturerentalincomefromthecompany'sproperties,andbalanceswithNature’sPride
BVandNature’sPackBV.Theloanagreementcontainsclausesrelatingtocancellationoftheleasefor
Honderdland70,Maasdijkandfuturechangesinthecompany'sownership.
PARENTCOMPANY
BOOKVALUEOFMORTGAGEDASSETS
Landandbuildings
Machinery,equipmentetc.
Tradereceivables
Inventories
TOTAL
GROUP
2014
2013
2014
2013
0
0
0
0
0
0
0
0
0
0
1,280,707
121,166
235,470
55,255
1,692,598
482,856
74,993
202,594
42,874
803,317
74
NOTESTOTHEFINANCIALSTATEMENTS
AUDITOR'S REPORT
Note 13 Restricted funds
TheitembankdepositsincludesrestrictedfundsofNOK26,192,007 fortheparentcompanyandNOK79,152,585fortheGroup.
Note 14 Related parties
AlltransactionswithGroupcompanies,associatesandotherrelatedpartiesareconductedoncommercialtermsandprinciples.
TheGroupsellsasignificantvolumeofgoodstosomeofits
ownercompaniesandtheirrelatedcompanies.
Theparentcompany'ssalesprimarilycomprisesalesofgoods
andservicestothesubsidiaries.
Note 15 Forward exchange contracts and interest swaps
FORWARD EXCHANGE CONTRACTS
Nature’sManagementBVhedgescostandincomeflowsinforeigncurrencythroughhedgingtransactions,primarilyforward
exchangecontracts.
INTEREST SWAPS
Nature’sManagementBVhaslong-termloanswhichare
primarilyexposedtovariableinterestandthustofluctuations
inshort-terminterestrates.Thecompanyhedgeslong-term
liabilitiesagainstfluctuationsininterestratesthroughinterest
swaps,whichconvertvariableinterestratestofixedinterest
rates.
Asof31December2014Nature’sManagementBVhadfour
interestswapswithanegativefairvalueofMNOK12.26.The
loan'svariableinterestrateslinkedtoEURIBORhavebeenconvertedtoafixedinterestrateof3percentlinkedtoanominal
amountofNOK216.88attheyear-end.
Theinterestswapswereenteredintoin2013andhavematuritiesof5–10years.Paymentandothertermsaresimilartothose
fortheunderlyingloanagreement.Realisedlossesin2014are
recognisedinprofitorloss.Unrealisedlossesoninterestswaps
willbecarriedforwardto2015andwillnotberecognisedin
incomeuntiltheyhavebeenfinallyrealised.
75
76
AUDITOR'S REPORT
Contents
This is BAMA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .02
2014 highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04
History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 05
Words from the CEO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08
TOPIC: Environmentally focused production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Management review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Norwegian goods flow. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Import goods flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
From field to fork . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
TOPIC: Environmentally friendly transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
Grocery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24
HoReCa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Flowers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Service market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
International. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
TOPIC: Corporate social responsibility and ethics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Quality and the environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Corporate social responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Sponsorship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
HR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
TOPIC: Expertise and marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Corporate governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Report from the Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Income statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Balance sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Statement of cash flow. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58
Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59
Auditor's report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75
Photo: Ole Walter Jacobsen, Veslemøy Vreskår, Morten Brakestad, Rune Kongsro, Sara Johannessen, VI.P, Nature’s Pride, BAMA archive.
The BAMA model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06
Design: Nucleus AS
Key figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 01
Printed by: RK Grafisk AS
Making
Norway
fresher and
healthier.
BAMA Gruppen AS
PO Box 263 Alnabru
NO-0614 Oslo
Tel. no: +47 22 88 05 00
www.bama.no