Annual Report 2023
F iv en Annual R eport 2023
Content
A worldwide leader 4
Key financials 5
Building Strong Communities Together 6
Letter from the Chairman 8
Board and Management 11
Environment, Social, and Governance (ESG) 12
Board of Directors’ Report 16
Consolidated financial statements 24
Fiven ASA financial statements 80
Auditor’s report 98
Appendix to Fiven 2023 Annual report -
Alternative Performance Measures (APMs) 104
Arendal,
Norway
Hody,
Belgium
Oslo,
Norway
Cologne,
Germany
Pittsburgh, PA,
USA
Shanghai,
China
Lillesand,
Norway
Barbacena,
Brazil
4 A worldwide leader
A worldwide leader
€151.4 M
Revenue
1 January - 31 December 2023
>400
Customer groups
399
Employees
€44.7 M
EBITDA Adjusted
1 January - 31 December 2023
4
Production
Sites
As worldwide leader in the production of silicon carbide
grains and powders, Fiven is dedicated to delivering
innovative and sustainable solutions for the current and
future industries.
Selling to 49 countries on 5 continents
4 production sites
4 office locations
Revenue breakdown
31%
69%
Customized
products share
of sales in 2022
Core products
share of sales
2022
South America
8%
38%
39%
15%
Europe
Asia
North America
12%
42%
47%
Fiven Brazil
Fiven Norway
Fiven Belgium
P&L Euro Millions 2023 2022
Revenue 151.4 192.3
Adjusted EBITDA
1
44.7 61.5
Net Income (loss)
2
(2.0) 53.7
Balance sheet Euro Millions 2023 2022
Assets 175.9 189.0
Cash and Cash Equivalents 33.4 18.9
Cash flow Euro Millions 2023 2022
Cash flow from operations 33.2 41.5
Cash flow from investments (10.8) (7.6)
Cash flow from financing activities (7.8) (38.7)
1
Adjusted EBITDA excludes non-recurring/non-financial items and monitoring fees
2
Of which (20,904) kEUR come from changes in the fair value of the financial instruments for power contracts (2022: 17,463 kEUR).
Key financials 5
Key financials
Fiven Annual Report 2023
Building Strong
Communities Together
At Fiven, we understand that we are part of many
communities. As a responsible corporate citizen, we aim
to actively engage with and support the communities
where we live and work. By collaborating with local
partners, we can make a positive impact and help create an
environment where everyone can thrive.
Over the past few years, Fiven has focused on developing meaningful partnerships with our
neighbors, government agencies, academic institutions, industry groups, and nonprofits.
Fostering Partnerships with Academia
We have built strong relationships with academic and research
institutions that align with Fiven's focus areas. We maintain an
active presence at universities in Norway, Brazil, and Belgium,
engaging with students through presentations, project collabo-
rations, bachelor and master thesis, and more.
Over the past years, we have collaborated with universities on
research projects applying our silicon carbide materials, pursued
industrial PhD partnerships, published joint papers with univer-
sity researchers, served as co-advisors for student theses, and
supplied silicon carbide for universities to test new applications.
We meet regularly with university teams to monitor progress and
plan future partnerships.
By engaging closely with academic researchers and students
internationally, we gain valuable insights while also contributing
our expertise. These mutually beneficial partnerships with
technical clusters, universities, and institutes allow us to stay
abreast of emerging technologies and best practices.
Fiven partners with NORCE, the Norwegian
Research Centre, combining their modeling
expertise with our process knowledge.
Together, we analyze gas dynamics inside
and outside our Acheson furnaces used for
silicon carbide production. This allows us to
optimize gas flows, improve efficiency, and
enhance our manufacturing performance
- staying at the cutting edge of process
technology.
6 Building Strong Communitites Together
Fiven Annual Report 2023
Driving Local Community Development
We also prioritize initiatives that support the communities sur-
rounding our facilities. At our Barbacena, Brazil location, we have
undertaken extensive reforestation efforts, planting over 110,000
trees across 70 hectares of land. This helps restore and preserve
the local ecosystem. We have also set up a local tree nursery
through a partnership with the city government, distributing over
8,000 seedlings to the public along with environmental education.
Additionally, our "SiC Solidario" social program has renovated
multiple local schools and childcare facilities over the past five
years, directly benefiting more than 5,000 children. We work
closely with local government, families, and our own employee
volunteers to transform these learning environments by improv-
ing infrastructure, providing teacher training, and more.
Industry Collaboration
We are convinced that a continuous exchange within expert
committees is an important component for the further
development of our industry and the development of new
qualitative products for our customers. As such, Fiven maintains
active memberships and participation in several key industry
associations:
• SiCMa (Silicon Carbide Manufacturers Association)
• FEPA (Federation of European Producers of Abrasives)
• DFFI (Deutsche Feuerfest Industrie e.v.)
• ABIFA (Associação Brasileira de Fundição)
• ALAFAR (Asociación Latinoamericana de Fabricantes de
Refractarios)
• The American Ceramic Society
Through these memberships, our experts collaborate with peers
to share best practices, advance technical standards, promote
health and environment best practices, and drive innovation
across different industries. We contribute our deep material
expertise while also gaining valuable insights from partners
around the world.
These partnerships are not just the right thing to do, they also
make good business sense. By building inclusive relationships
locally, we gain valuable insights and perspectives. Our partner-
ships with technical clusters and industry groups also allow us
to stay on top of emerging trends and best practices. At the end
of the day, Fiven's success is intertwined with our surrounding
communities. As we continue to grow, we want to ensure we
are growing together.
Fiven Brazil teamed up with volunteers
and staff at Irmãos do Caminho Day
Care Center in Barbacena as part of SiC
Solidário. This community collaboration
rejuvenated the nursery facilities,
reflecting Fiven's commitment to social
responsibility and local impact.
Building Strong Communitites Together 7
Fiven Annual Report 2023
Fiven's two-pillar strategy of serving specialty and standard
products again proved its strength. Demand held steady for
our high-margin specialty products, even as broader economic
forces led to softened demand for some of our standard
commodity offerings. This highlights the power of our diversified
product portfolio.
We continue actively investing in co-development projects
and partnerships to maintain and expand our leadership in
key specialty areas like the EV market. At the same time, we
remain firmly committed to serving our long-standing standard
silicon carbide customers with the same excellence we have
delivered for decades. The volume of the standard segment and
growth opportunities in specialties give us confidence in the
balanced approach of our two-pillar strategy. With our specialty
innovation and operational excellence in standards, we are
well-positioned to deliver robust performance through varied
economic cycles.
In 2023, we took an important step further to clarify our
communication around our comprehensive ESG strategy.
We confirmed our goal to become a Net-Zero company that
cultivates a safe, positive, and inclusive working environment,
upholds strong business ethics, and fosters local anchorage
worldwide. We aim to leave behind a positive handprint
for future generations to prosper. To bring more focus to
As we reflect on this past year, while
economic conditions remained
challenging, our company showed
resilience and made significant strides.
Letter from
the Chairman
8 Letter from the Chairman
Fiven Annual Report 2023
our efforts, we updated our messaging to describe our
ambitions more precisely across environmental sustainability,
social responsibility, and governance integrity. This refined
communication will help stakeholders better understand our
ESG priorities as we execute our strategy in the years ahead. We
remain committed to transparency and accountability in pursuit
of our goals.
I am proud to share that our progress on ESG initiatives is
being recognized externally. We received a sustainability award
from one of our biggest customers in South America this year,
validating our efforts to operate responsibly and help build a
more sustainable future.
While uncertainties remain in the broader economic climate, the
diversity of our product portfolio and the commitment of our
team give us confidence. We have the right strategy to drive
growth and create long-term value.
Thank you for your continued support as bondholders.
Sincerely,
Falk Ast
Chairman of the Board
Fiven ASA
Letter from the Chairman 9
Fiven Annual Report 2023
10 Board and Management
Fiven Annual Report 2023
Board and Management
Helén Borchgrevink
Member of the Board of Fiven ASA
Isabelle Bouteille
General Manager Belgium
Falk Ast
Chairman of the Board Fiven ASA
Terrance Blanchard
COO Fiven Group
General Manager Norway
Trygve Eidet
CRO Fiven Group
Stein Erik Ommundsen
CFO Fiven Group and General
Manager Fiven ASA
Thiago Barros
General Manager Brazil &
Sales Director Americas
Betty Lunøe Åsheim
CCO Fiven Group
Member of the Board of Fiven ASA
Sabine Radoux
Chief Sustainability Officer
Board and Management 11
Fiven Annual Report 2023
Environment, Social,
and Governance (ESG)
Introduction by the Chairman
We are determined to limit all adverse effects of our activities on the environment, people, and communities. We
thereby go one step further and focus on driving positive change across our value chain by offering our customers
premium products that enable them to improve their own impact.
In 2023, we reviewed our sustainability approach and transformed it into a complete ESG strategy with global targets
across Environmental, Social and Governance. We then linked tangible KPIs to each target, ensuring that we keep track
of our performance.
Falk Ast, Chairman of the Board
Certification
All our Fiven entities are certified ISO 9001, ISO 14001 and ISO
45001 meaning that all key production entities of the Group
have health and safety certifications:
• Fiven Norge AS: ISO 9001, ISO 14001, ISO 45001
• Carbeto de Silicio Sika Brazil: ISO 9001, ISO 14001, ISO 45001
• Materiaux Céramiques SA: ISO 9001, ISO 14001, ISO 45001
Fiven is currently awarded with the EcoVadis Silver Medal.
The rating places Fiven in the top 25 percent of all companies
assessed by EcoVadis.
Our Principles
We live and are guided in our activities by our principles called the 'Fiven 5'. These principles are:
Adherence to these principles is a requirement for belonging to Fiven Group.
Respect – We treat
everybody with respect
independent of their
background, culture,
and origins.
Integrity – We are
honest people and have
strong moral principles
helping us to stay
undivided.
Solidarity – We stand
by each other and help
one another to reach
our common goals. We
encourage teamwork,
and we bring out the
best of each person.
Trust – We act with
trust in people’s
honesty and sincerity.
Transparency –
We foster a climate of
direct, honest, and open
communication.
12 Environment, Social, and Governance (ESG)
Fiven Annual Report 2023
Health and Safety
Our goals stated in our H&S policy is ZERO accidents and
ensuring Safety and Health protection for all our employees. No
matter the plant location, all our people are protected following
the same Fiven standards.
In 2023, one lost time accident was reported within Fiven, and
therefore TF1 (defined as the number of lost time accidents
divided by the working hours multiplied by 1000000) was at
0.9 compared to 0 in 2022. The TF2, which is the frequency
rate of lost time accident and non-lost time accident (defined
as the sum of lost time accidents and non-lost time accidents
divided by the working hours multiplied by 1000000) decreased
to 1.9 compared to 2.6 in 2022. This represents 1 non lost time
accident compared to 3 lost time accidents in 2022.
In 2023, our Fiven entity in Belgium achieved six consecu-
tive years without any lost time or non-lost time accidents.
Additionally, our plant in Arendal, Norway, celebrated one year of
operation without any accidents.
1 1 9 52 3 955 2 011
Diversity
Fiven has more than 15
nationalities out of its
399 employees.
13.7%
1
LTA Lost Time Accident
2
NLTA Non-Lost Time Accident
3
SMAT (Safety Management Audit, which is a behavioral observation)
Six years award ceremony in Belgium One year award ceremony in Arendal, Norway
LTA
1
NLTA
2
First Aid Near Misses Unsafe Acts/
Unsafe Conditions
SMAT
3
Environment, Social, and Governance (ESG) 13
33% 67%
Female share of
the total FTE
Female share of
Fiven management team
Female share of
the board of directors
Fiven Annual Report 2023
Environment
Fiven is committed to managing its activities responsibly
and minimizing the environmental impact of its production
processes. In 2023, Fiven finalized investments to capture
gases from furnaces at its plant in Lillesand, Norway.
By the end of 2023, Fiven issued a new environmental policy formalizing its commitment to environmental sustainability. This policy
aims to integrate sustainable practices throughout the organization and promote best environmental practices in its operations.
In connection with its Environmental roadmap set up in 2020, the Group has pursued on implementing the different actions listed in
the roadmap. Fiven has made the following progress on the main projects and actions:
• Completion of the covering furnace project in Fiven Norge
• Completion of the pre-engineering study to cover furnaces in Fiven Brazil
• Making good progress on the biocarbon source project
• Completion of trees nursery project where more than 8000 seeds were donated during the year.
• Increase the use of internal recycled material in the Acheson furnaces in Fiven Brazil
Environmental Roadmap
-9%
-20%
Net Zero
14 Corporate Social Responsibility
-10%
-20%
Net Zero
-15%
-30%
Net Zero
Air
2025
2030
2050
Water withdrawn Non-recovered waste
Fiven Annual Report 2023
“In 2023, we undertook a comprehensive review of our sustainability approach,
evolving it into a holistic Environmental, Social, and Governance (ESG) strategy with
overarching targets spanning all three pillars. This transformation underscores our
commitment to driving positive change across our operations, communities, and
governance practices."
Sabine Radoux
Chief Sustainability Officer
Corporate Social Responsibility 15
Fiven Annual Report 2023
Board of Directors’ Report
About Fiven
Fiven is a global leader in silicon carbide (SiC), a material used in
a variety of industrial applications. SiC is recognized for superior
hardness, high thermal conductivity and chemical inertness,
making it the preferred material for demanding applications:
abrasive, metallurgy, filtration, technical ceramics and other
uses. Fiven product brand “SIKA” is recognized as a premium
brand with high quality and supply consistency.
Fiven ASA is headquartered in Oslo, Norway, and is the parent
company in the Fiven Group. The Group was established in 2019
in connection with the acquisition of the silicon carbide business
from Compagnie de Saint-Gobain S.A, and the operational
history can be traced back more than 100 years.
Fiven has manufacturing entities in Arendal and Lillesand
(Norway), Hody (Belgium) and Barbacena (Brazil). Fiven GmbH
located in Cologne (Germany) is a management office, and
Fiven North America Inc. is a sales office operating in Pittsburgh
(USA). There is also a sales representation office operating in
Shanghai (China).
The Market
2023 was a challenging year globally: heightened geopolitical
tensions, significant disruptions in European energy supply
chains, and a macroeconomic climate shadowed by rising
interest rates and inflation. Fiven demonstrated remarkable flex-
ibility and determination despite these headwinds, effectively
navigating these complex market conditions.
The silicon carbide market is diverse, with varying trends across
regions and end-use industries.
In Europe, Fiven faced persistent challenges, particularly in
the construction and broader economic landscape. Revenue in
Europe saw a year-over-year decline of 26 per cent, with core
products facing steeper decreases compared to customized
products. This downturn was mainly due to subdued demand
and market contractions, especially in the steel and construction
sectors.
In North America, Fiven experienced a notable decrease in sales,
attributed to cyclical projects and validation processes. Despite
these temporary market headwinds, the management team
remained focused on adapting strategies to emerging market
needs.
In Latin America, the market witnessed a dip in sales compared
to the record levels of 2022. The decline was primarily driven
by slowdowns in key sectors, including automotive, steel, and
construction.
Asia emerged as a bright spot for Fiven in 2023. The region saw
significant growth in sales, fueled by increased co-development
activities and strategic partnerships. This success underlines the
effectiveness of Fiven's innovation-led approach.
The global competitive landscape varies from one region to
another. Fiven maintains a strong market position in Europe and
Latin America. Local players and global Asian producers influ-
ence the competition in North and Latin America and Europe.
Fiven’s Strategy
Fiven's strategy focuses on achieving profitable growth through
two main pillars:
1. Accelerating growth in customized products by target-
ing high-growth applications, emphasizing innovation,
and fostering collaboration with key customers through
co-development.
2. Selectively serving core markets, enhancing cost competitive-
ness and providing exceptional service offerings.
Fiven remains well-positioned to maintain solid financial results
despite current market uncertainties. The Group's confidence
in its strategic execution, combined with its proven ability
to respond to dynamic market conditions, sets the stage for
sustained performance and resilience in the face of future
challenges.
16 Board of Directors’ Report
Fiven Annual Report 2023
Financial Review
Presentation of accounts
Fiven’s consolidated financial statements have been prepared
in accordance with International Financial Reporting Standards
(IFRS) as adopted by the EU. The parent company’s annual
financial statements have been prepared in compliance with the
Norwegian Accounting Act and accounting principles generally
accepted in Norway. For further information, please refer to the
financial statements and note disclosures.
Operating Profit and profitability
Fiven delivered another strong financial performance in 2023
in times of weaker global economies and headwinds in key end
markets. It demonstrated that the extraordinary 2022 perfor-
mance was not a coincidence and that profitability reach the
second-best performance in Fiven history.
The total consolidated revenues for the 12-month period
reached 151.4 mEUR, a Year-on Year decline by 21 percent
(2022: 192.3mEUR). The result is in line with trends observed by
other players in the silicon carbide industry.
In terms of revenues by customer location, Europe revenues at
57.3mEUR decreased by 26 percent from previous year, North
America reported at 22.4mEUR were down by 25 percent, the
59.0mEUR revenues from South America represented a YoY
decrease of 22 percent, whilst Asian revenues were 12.8mEUR,
up from 2022 levels by 39 percent. As for products, the core
product products decreased by 28 percent to 103.8mEUR, and
the Customized product sales reached 47.7mEUR, on par with
2022 (47.9mEUR).
The Operating Profit for the year ended at 9.5mEUR (2022:
84.0mEUR).
The 2023 operating results are negatively impacted by the
changes in the fair value of power derivatives (IFRS 9). The
result reflects the change in the forward market prices for power
contracts in Norway and has zero cash impact to Fiven. It has
no operational adverse impact for the business and is only an
accounting consideration. The change of the hedge amounts is
also impacted by the consumption and sales of power leading
to settlement of the power contracts. Excluding the impact
from IFRS 9 fair value adjustment in the Operating profit, the
2023 adjusted result would be 36.3mEUR (2022: 61.6mEUR).
The operating result also includes gains from the sales of power
hedge contracts of 1.2mEUR whilst sales of hedged power
contracts in 2022 amounted to 15.1mEUR.
The Net Finance expenses of 9.2mEUR (2022: 9.0mEUR). Net
Loss of the year was 2.0mEUR (2022: Net Income 53.7mEUR).
Fiven uses Adjusted EBITDA to measure operating performance
at the Group and segment level. The Adjusted EBITDA (Earnings
Before Interest, Taxes, Depreciation and Amortization including
the positive impact from IFRS 16 and excluding non-recurring/
non-financial items and monitoring costs) showed 44.7mEUR
(2022: 61.5mEUR).
The lower Adjusted EBITDA is driven by decreased revenues
(21% YoY) arising from lower demand in the core product
markets as a consequence of slow growth in Global economies,
ongoing wars, rising inflation and interest rates. Under the cur-
rent market conditions, it has been necessary to enforce a strict
costs discipline in all areas of activity to protect the Adjusted
EBITDA margin.
Cash Flow and Liquidity reserve
Total cash and cash equivalents at year-end were 33.4mEUR, up
from 18.9mEUR for year-end 2022.
Cash flow from operating activities was 33.2mEUR (2022:
41.5mEUR). The sales of hedged power contracts had a positive
impact to cash flow by 1.2mEUR (2022: 15.1mEUR).
The cash flow from investing activities amounted to -10.8mEUR
(2022: -7.6mEUR). In 2023 Fiven completed the gas cleaning and
emission control system in Norway for 2 furnace groups. By the
end of 2023 6 out of 8 furnace group in Norway were completed.
Other important investments included crude production capacity
expansion in Brazil for the cover of expected higher SiC demand,
build-up of e-SiC production capacity, product development,
productivity improvements as well as for necessary maintenance
needed to run the factories.
The full year cash flow from financing activities was -7.8mEUR
(2022: -38.7mEUR). In December, Fiven ASA refinanced with a
new bond of 110mEUR, and at the same time redeeming the bond
from 2021 for an amount of 70mEUR. This operation permitted a
distribution to owners of 38mEUR and taking into account fees and
call option premium, the whole operation was cash neutral for 2023.
Debt and financial position
Fiven’s total liabilities at 31.12.2023 were 167.0mEUR in compari-
son to 139.2mEUR year-end 2022.
The non-current liabilities at YE 2023 end were EUR 112.9m,
an increase from year end 2022 at EUR 80.0m. The change is
coming from the increase in bond financing (EUR 39.4m), from
decrease in deferred tax liabilities (EUR 5.9m) and a decrease in
other non-current liabilities (EUR 0.7m).
Total current liabilities were EUR 54.1m at year end, down from
EUR 59.3m at Year End 2022. Income tax payable accounts
for EUR 5.9m of the reduction, all other current liabilities have
increased by EUR 0.7m.
Board of Directors’ Report 17
Fiven Annual Report 2023
Total assets and equity
Total assets at year-end amounted to 175.9mEUR compared
to 189.0mEUR year-end 2022. The power hedge contracts
reported at fair value decreased the assets by EUR 26.8m from
year end 2022, of which EUR 16.6m of the decrease is reported
under Other non-current assets and EUR 10.2m is reported as
Other Current Assets. Cash and cash equivalents and Plant
and Equipment (Net Capex additions) increased total assets by
respectively EUR 14.5m and EUR 5.7m. Other assets show a net
reduction from year end 2022 by EUR 6.5m, mainly from lower
inventories and trade receivables.
Equity reported at year-end was 8.9mEUR compared to
49.8mEUR at end of 2022. In December a distribution of EUR
38m was paid to shareholders, and the 2023 Net Loss of EUR
2.0m was transferred to the account for retained earnings. The
impact on equity from changes in foreign currency translation
reserve was -0.8mEUR. The Equity ratio end of 2022 was hence
5 percent (2022: 26 percent).
Going Concern
Pursuant to Section 3-3a of the Norwegian Accounting Act, the
Board of Directors confirms that the financial statements have
been prepared on the assumption of going concern, and that the
assumption is valid. The consolidated equity as per 31.12.2023 was
8.9mEUR (2022: 49.8mEUR). The Fiven ASA equity was 22.8mEUR
at 31.12.2023 compared with 25.3mEUR as of year-end 2022.
In December 2023 Fiven ASA has been refinanced through a new
sustainability linked bond for an amount 110 mEUR. The new bond
has a duration of 3 years from issue date (11 December 2023) and
replaces the 2021 bond.
The Board of Directors has based the going concern assumption on
the current financial position, long-term funding, and the fore-
casted net cash flows.
Segment Review
Fiven Norway
Fiven's product portfolio in Norway primarily comprises
customized products catering to diverse market segments and
customer requirements. External revenues from Fiven Norway
(excluding other income) declined by 15% in 2023 compared to a
record level in 2022.
The adjusted EBITDA was 17.3mEUR (2022: 27.6mEUR). The
variation to last year was mainly coming from the lower sales
and the selling of excess power benefitting adjusted EBITDA of
last year for an amount of 0.1mEUR whilst the corresponding
number for 2022 was 7.1mEUR.
Full time equivalents (FTE’s) at year end 2023 was 161, a reduc-
tion from 179 at year end 2022.
Fiven Brazil
Fiven Brazil's external revenues declined by 25% in 2023 year-
on-year. The result is due to a slowdown in all market segments
within Latin America and an unusually high level of demand and
customers building up inventories in 2022.
The adjusted EBITDA of 25.0mEUR was lower than 2022 of
33.9mEUR caused by lower sales during 2023.
The number of full-time equivalents (FTEs) at year end 2023
was 206, a reduction by 14 from year end 2022.
Fiven Belgium
Revenues in Fiven Belgium saw a 27% decline, which is primarily
attributed to the diminishing European market demand for core
applications, compounded by uncertain market dynamics.
As for adjusted EBITDA, the reported 2023 result of 1.0mEUR
was higher than the 2022 performance of -0.7mEUR. The 2023
performance is impacted by lower prices and low demand in
comparison with 2022. Last year carries a write-off of inventory
for an amount of 5.0mEUR.
In 2023, Fiven Belgium received the first supplies of silicon car-
bide material from the plant in Venezuela, which was previously
owned by Fiven until end of November 2022.
As for FTEs, the year ended with 19 compared to 17 FTEs end of
2022.
Parent Company Review
Fiven ASA is the parent company of the Group. The revenues
of the period reached 5.3 mEUR (2022: 5.8 mEUR) and the
Operating profit amounted to 0.3 mEUR (2022: -0.1 mEUR). The
Net Income was 35.6 mEUR (2022: 28.0 mEUR).
The Board of Directors proposes to transfer the Net Income of
35.6 mEUR to retained earnings. During 2023 Fiven ASA has
issued an extraordinary dividend of 38 mEUR.
R&D Activities
Fiven’s R&D activities are focused around four key business
areas: New Product Development, Sales Support, ESG, and
Production Support. Product development projects and the
activities in R&D is a vital part of Fiven’s growth strategy in
customized products. The product development topics in focus
are e-SiC, high purity silicon carbide for power electronic applica-
tions, and advanced technical ceramic solutions for a wide range
of applications, including ballistic protection and 3D printing.
SIKA e-SiC is continuing a very good development and products
delivered more than tripled since 2022. Quality performance
of the e-SiC production met the high micro electronic industry
18 Board of Directors’ Report
Fiven Annual Report 2023
standards, and the production system of Fiven SIKA e-SiC was
formally approved by world leading SiC electronics customers.
Strong development also in the ballistic products segment
where new product solutions and alternative process routes
were developed enabling new qualities to be offered and
facilitating higher volume output.
For the first time complex shape, full density, 3-D printed SiC
was exhibited at the 2023 Formnext conference. This break-
through was exhibited by the company Durst with large scale
parts printed from custom supplied S-Cast product from Fiven.
R&D supports the implementation and operationalization of
Fiven’s environmental roadmap. The environmental technology
development is now entering into a new phase where optimiza-
tion of the interaction between process and furnace coverage
technology is developed. The optimization of the newly invested
semi-closing of Acheson SiC furnaces includes new measured
furnace mass balance which showed improved environmental
performance of the technology.
Corporate governance
Fiven ASA does not have a corporate assembly, and therefore
the general meeting elects the Board. Fiven’s board consists of
3 members, and the Board of Directors elects its own chair.
The composition of the Board of Directors attends to the
interests of the shareholder and to meet the Fiven’s need for
expertise through executive personnel. In accordance with the
Norwegian Public Limited Liability Act (Allmennaksjeloven) and
supplementary policies and procedures provided by the share-
holder, the Board of Directors exercises the overall governance
of Fiven ASA.
The Audit Committee operates as a working committee, report-
ing to the Board of Directors in accordance with the mandate
prepared and approved by the Board of Directors.
The Executive Chairman of the Board of Directors facilitates
the reporting to the shareholder of Fiven ASA. Two of the three
Board members have long term experience from the inside of
the silicon carbide industry, assuring that the Board of Directors
has sufficient operational expertise as well as comprehensive
knowledge of the business conducted in the Fiven Group.
The General Manager of Fiven ASA, currently also being the
Fiven Group CFO, is responsible for the day-to-day manage-
ment of Fiven ASA. The General Manager governs the operations
through policies and procedures, management meetings, Board
meetings and through the Audit Committee interaction.
The General Manager of Fiven ASA meets with the extended
management team of the Fiven Group. These management
meetings are called by the Chairman, and in addition to the
executive management team, also include production site
general managers and Chief Sustainability Officer. The purpose
of the meetings is to monitor the status of the operations and
key performance indicators. The market situation and business
development issues are also addressed, as well as health,
environment, safety and security indicators and human resource
issues. These meetings are a vehicle for scrutiny of the segment
units’ performance relative to budgets and targets. The market
situation, order intake, new opportunities and other significant
items at the time are also addressed.
The internal controls over financial reporting are governed by
the Group Accounting Policies and a set of procedures and
internal controls. The Audit Committee reinforces the focus on
internal controls over financial reporting. Monthly management
reporting is submitted by the management team of each
segment to assist the Board in its work on monitoring and
controlling the Group’s operations. The reports cover financial
information of the Group’s key figures, matters related to health
and safety, market development, operations and financial
performance, and the status of other business-related matters.
Quarterly and annual financial statements are reviewed by the
Audit Committee and the Board.
In 2023 Fiven released the first report on supplier code of
conduct to comply with the Norwegian Transparency Act.
Risk Factors and risk management
Market risk
Automotive and construction are two of the largest markets to
Fiven. The Board monitors the implications of unsettling trends
such as lack of semiconductors in automotive, and material cost
inflation and supply chain disruption in the construction market.
To reduce these risks, the Board focuses heavily on developing
new specialty products and diversifying into other markets,
which shield the group from any acute risk on revenue.
The Asian competition can exert intense pressure by sudden
reducing standards products’ prices. In Europe, the market is
dynamic, with many players competing in an inflationary cost
environment and sudden changes in demand. In addition, the
geopolitical tensions from the Ukrainian - Russian war have
caused spikes in energy prices and fueled inflation. Globally,
Fiven will keep facing fierce competition from players in
Germany, China, Spain, and the US. However, Fiven will continue
to counter the risk through its customer-centricity, superior
delivery performance, and innovation.
Board of Directors’ Report 19
Fiven Annual Report 2023
Operational risk
The Group’s business includes several operational risks associ-
ated with the running of the industrial factories.
The manufacturing of silicon carbide is highly depending on raw
material such as petroleum coke and sand as well as energy
for production and processing. Through forward contracts
on energy, Fiven entities are able to secure a stable supply of
power for production. For petroleum coke there is no forward
market, but through multiple sourcing, the Group has what is
considered a steady supply. Fiven has its own sand mine in
Brazil.
Adverse changes in the general economic conditions and
business environment in the countries in which the Group man-
ufactures, i.e. Norway, Belgium and Brazil, may have an adverse
effect on the Group’s business, financial position and results
of operations. With production and processing capabilities in
several locations including an exclusive supply agreement with
the new owner of the companies in Venezuela formerly owned
by Fiven until 2022, Fiven has the possibility to shift sourcing
among plants when these regional risks materialize.
The Group’s high consumption of petroleum coke in the produc-
tion of silicon carbide has led to exposure against different types
of emission such as dust, PAH, B(a)P and SO2 and related costs
to satisfy local laws and regulation.
At the end of 2023, the Lillesand plant in Fiven Norge has
completed its gas cleaning project. In total, six furnace groups
are connected to a gas cleaning system. Fiven is confident that
the investment into the technology developed by Fiven itself will
enable full compliance to requirements.
In 2023, Fiven also obtained the renewal of the permit for Fiven
Norge, Eydehavn facility, this new licence is valid for the next 10
years.
Safety is a key priority to Fiven, and the manufacturing
locations have established routines and procedures designed
to minimize overall operational risk. KPIs are recorded, analyzed,
and actioned systematically. Health, environment, and safety
performance is reviewed monthly on management level and
with owners.
Political risk
Since the Group is present in several geographic markets, Fiven
is also subject to external risks, such as political risks.
The Group's operations in Brazil are subject to detailed reg-
ulation and complicated rules regarding, inter alia, tax, labor,
financing, the environment, and other regulatory requirements.
The complexity of the legislative framework may expose the
Group to risks such as legal uncertainties, increased costs in the
compliance work and a lack of foreseeability, which could have
a material adverse effect on the Group's business and financial
position. Under the existence of Fiven, the Group has managed
well the challenges in Brazil.
Financial risk
Fiven is exposed to different risks in the various market it oper-
ates. The objective is to minimize the impact from such risks to
the financial statement.
Fiven operates in an international industry which exposes
the business to a variety of financial risks. Through its global
operations, Fiven is impacted by fluctuations in exchange rates
of other currencies. Major trading currencies are USD, EUR and
BRL. Fiven Group’s reporting currency is EUR, and the Group
both hedges through financial instruments and actively uses
natural hedge to reduce the risk for currency exposure. Similarly,
denomination of currency for loans and bonds seeks to reduce
the impact of fluctuations in exchange rates.
Customer credit risk is considered low, and credit management
ensures that a substantial portion of the receivables is insured
against credit risk. Fiven Norge and Fiven Belgium (Matériaux
Céramiques S.A) have a factoring arrangement where there is
no recourse.
Liquidity risk is related to difficulty in meeting financial obliga-
tions. In 2023 the Group has secured its long terms financing
through a new Bond of 110mEUR being listed on the NASDAQ
Stockholm and Frankfurt Open Market stock exchanges from
February 2024. In parallel, the factoring agreement for Fiven
Norge and Fiven Belgium constitutes another source of funding.
There is also an export credit facility in Brazil. Other than that,
liquidity needs are covered through cash generated from oper-
ations. The 2023 cash generation has been positive, and cash
performance and liquidity situation have enabled Fiven ASA to
pay out a dividend to owners of 38mEUR.
Insurance for board members and general manager
The Group has procured Directors and Officers liability insurance
on behalf of the members of the Board of Directors and Fiven
management. This is standard insurance to protect against cer-
tain risks including (but not limited to) civil fines and penalties,
emergency costs, public relations expenses, tax extensions,
foreign corruption and securities claims.
Corporate Social Responsibility
General
At the end of 2022, Fiven performed the second ESG self-as-
sessment by the company Ecovadis. Ecovadis awarded Fiven
in January 2023 for the 2nd time a Silver Medal with a score of
59/100 compared to 56/100 in 2021. The silver rating places Fiven
in the top 25 percent of all companies assessed by Ecovadis. The
progress made in 2022 was mostly performed on the business
ethics axis. Fiven will be reassessed beginning of 2024
20 Board of Directors’ Report
Fiven Annual Report 2023
Similar to the bond financing executed in June 2021, the refi-
nancing of a new a bond in December 2023 is also sustainability
linked. The same Key performance indicators were kept as in the
previous sustainability linked bond, being CO
2
and SO
2
emis-
sions (expressed in tons/tons of crude produced), and quantity
water withdrawals (in absolute value). At the exit of the first
sustainability linked bond, DNV reviewed Fiven’s sustainability
action plan, the report is disclosed on Fiven website. For the
new bond, the KPI’s achievement for 2023 will be reported in
the Sustainability Linked Bond progress report 2023 that will be
published on Fiven website (www.fiven.com/company-informa-
tion/investor-relations/reports) by end of March 2024.
Fiven started its sustainability Link Bond financing approach
in 2021 to create a stronger link between the operations and
how they affect the environment that Fiven operates in, and to
better align the objectives of the Environmental Roadmap with
Fiven’s financing strategy. The Group objective is to reduce CO2
emissions by 9 percent, SO2 emissions by 15 percent and water
withdrawal by 10 percent within 2025. 2023 new Sustainability
linked bond is part of the strategy.
Environment
Fiven is committed to manage its activities to limit the impact of
the production processes on the environment.
In 2023 Fiven has been finalizing its investments of capturing
gases at the plant in Lillesand coming from the furnaces. During
the year and up to present in 2024, furnace production in
Norway has been limited to testing and small-scale production.
Fiven Norway has covered its need for crude production from
the plant in Brazil for financial reasons as raw materials and
energy prices have been more favourable in South America. The
processing of the material in Norway continues as normal.
In 2023 we were compliant with all permit limits for the Lillesand
and Eydehavn plants, and it is expected that Fiven will stay
within the permit limits during the duration of the permit. This
applies also to other Fiven locations. Fiven Norge will resume to
crude production when it makes financially sense.
By end of 2023, Fiven has issued a new environmental policy
that formalizes the commitment to supporting the principles of
environmental sustainability and recognizes that a sustainable
environment is central to our lives and our work. The aim of this
policy is to integrate a philosophy of environmental sustaina-
bility into the whole organization and to establish and promote
best environmental practices in our operations.
In connection with Fiven’s environmental roadmap set up in
2020, Fiven management has pursued on implementing the
different actions listed in the roadmap. The following achieve-
ment was made on the main projects and actions:
• Completion of the covering furnace project in Fiven Norge
• Completion of the pre-engineering study to cover furnaces in
Fiven Brazil
• Increase the proportion of biocarbon used in Acheson
furnaces in Brazil
• Completion of trees nursery project where more than 8000
seeds were donated during the year.
• Increase the use of internal recycled material in the Acheson
furnaces in Fiven Brazil
Governance
Fiven is aware that company decisions and actions may have a
repercussion on society. The general rule of Fiven is that all parties
shall comply with national and all other applicable laws, prevailing
industry standards and other requirements to which company
subscribes. When laws and industry standards address the same
issues, the most favorable provision shall apply to Fiven people.
In 2023, Fiven initiated the implementation of e-learning on the
Fiven Code of Conduct. As of end of 2023, 47% of Fiven employ-
ees have performed the training. In 2024, this e-learning will be
deployed to all Fiven employees.
A whistleblowing line, called Fiven Integrity line, allowing Fiven
Board of Director’s to be warned about any potential business
ethics breach, has been deployed within all Fiven entities. As of
today, no warning has been reported through the Integrity line.
By end of June 2023, Fiven published its first due diligence report
on suppliers’ transparency and work on fundamental human rights
and decent working conditions (Transparency Act) www.fiven.
com/company-information/investor-relations/reports.
Finally, Fiven is committed to fostering inclusive and sustainable
value creation within the communities surrounding the production
plants in Barbacena (Brazil), Arendal and Lillesand (Norway), and
Hody (Belgium). In this respect, this year, for example, the Brazilian
entity supported again different local associations in offering
food parcels to disadvantage families, they participating to the
cooperation day in organizing a leisure and fun day for children in
collaboration with Unimed, they also celebrated their 20TH collab-
oration anniversary with the Sao Miguel Society Orchestra (children
orchestra). Fiven Norge entity continue its support to local sportive
association and to local association helping youth in difficulties.
Social
People
Fiven believes in equal treatment of people in respect of ethnic-
ity, religion, belief, disabilities sexual orientation, gender identity
and gender expression and the Group recognizes and respects
the uniqueness of everybody working in Fiven.
Board of Directors’ Report 21
Fiven Annual Report 2023
At year end, the number of full-time equivalents (FTEs) were
399 compared to 428 end of 2022. In 2023, some departures
mainly in production department occurred in Fiven Norge.
The short-term sickness rate for the period showed 1,8 percent
compared to 3.5 percent in 2022, the reduction of the percent-
age is mainly linked to Fiven Brazil short term absenteeism.
Fiven management works to extend the share of women into
various positions. The number of women has increased in 2023
compared to 2022 and represented 13,7 percent of the total FTE
at year end compared to 12.7 in 2022. In the board of Directors
and the senior management team, the female share was stable
compared to 2022 and represented respectively 67 percent and
33 percent.
In December 2023, Fiven organized the first employee survey
at group level. Results will be shared in the course of the first
quarter 2024.
Health and Safety
The company has implemented EHS prevention programs and
procedures to mitigate inherent risks of the Acheson process as
well as risks associated with silicon carbide processing. The Group
is following several KPIs on a monthly basis. In 2023, we had one
lost time accident and one non-lost time accident, therefore the
TF1 (defined as the number of lost time accidents divided by the
working hours multiplied by 1000000) was at 0,9 compared to 0
in 2022. The TF2, which is the frequency rate of lost time accident
and non-lost time accident (defined as the sum of lost time
accidents and non-lost time accidents divided by the working
hours multiplied by 1000000) decrease to 1,9 compared to 2.6 in
2022. The Group target remains zero accidents.
In August 2023, Fiven entity in Belgium reached six years without
lost time and non-lost time accidents. In November 2023, Fiven
Norge, Eydehavn reached one year without lost time and non-lost
time accidents.
In 2023, Fiven performed at Fiven Belgium (Matérieux Céramiques
SA) an audit of the ‘Fiven Roadmap’ which includes 29 standards
that should be applied in all Fiven plants. Fiven Belgium has
reached the Label Level which means they reach minimum
80% for the safety standards that are specific to silicon carbide
production and minimum 90% for the standards called the ‘Fiven
Stars’ which are permits to work, subcontractors, working at
height, log out tag out and machine guarding standards. They
have joined Fiven Brazil in the club of Fiven plants having
reached the Label level of the safety roadmap
Outlook for Fiven Group
Fiven, operating in a landscape of escalating geopolitical
tensions, European energy supply chain disruptions, and a
macroeconomic environment burdened by surging interest
rates and inflation, has exhibited both flexibility and agility.
The group's steadfast adherence to its dual-pillar strategy
showcases its capacity to adeptly maneuver through diverse
economic challenges, reinforcing its sustained success across
various markets. Confident in its strategic direction, Fiven will
uphold robust financial performance amidst prevailing market
uncertainties.
The Board of Directors of Fiven ASA - Oslo, 19 March 2024
Falk Ast Betty Lunøe Åsheim
Chairman Member of the Board
Helén Borchgrevink Stein Erik Ommundsen
Member of the Board General Manager
22 Board of Directors' Report
Fiven Annual Report 2023
Kapittelnavn 23
Consolidated
financial
statements
Consolidated statement of income
Amounts in EUR thousand Note 2023 2022
1 January to 31 December
Revenue 5,6 151 417 192 258
Other Income 6 1 380 15 174
Total revenue and other income
152 796
207 432
Raw materials, energy cost and change in inventory 19 (62 278) (77 552)
Employee benefit expenses 8,9,10 (22 828) (27 931)
Depreciation and amortization 12,15,16 (5 826) (5 437)
Other operating expenses 11 (25 583) (34 930)
Total operating expenses
(116 515)
(145 850)
Other gains and losses 23 (26 800) 22 388
Operating profit (loss) 9 482 83 971
Finance income 13 240 371
Finance expense 13 (10 438) (10 627)
Other financial items (net) 13 988 1 238
Net finance income (expense) (9 210) (9 019)
Net income (loss) before income taxes 272 74 952
Income tax expense 14 (2 306) (21 228)
Net income (loss) (2 033) 53 724
Net income (loss) attributable to:
Shareholders of the parent (2 033) 53 724
Total net income (loss) attributed to shareholders (2 033) 53 724
Amounts in EUR thousand 2023 2022
1 January to 31 December
Net income (loss) (2 033) 53 724
Other comprehensive income:
Items that may be reclassified to net income (loss) attributed to the shareholders of the parent:
Exchange differences on translation of foreign operations (794) 3 337
Total comprehensive income (loss), net of tax, attributed to shareholders of the parent (2 827) 57 061
Consolidated statement of comprehensive income
Fiven Annual Report 2023
Financial statements 25
Amounts in EUR thousand Note 31 Dec 2023 31 Dec 2022
ASSETS
Buildings and land 15 9 165 9 253
Plant and equipment 15 29 692 24 020
Right-of-use-assets 15,12 1 948 1 301
Other Intangible assets 16,17 13 320 13 890
Goodwill 16,17 5 390 5 390
Other non-current financial assets 18,23 311 10 378
Deferred tax assets 14 166 1 088
Total non-current assets 59 993 65 321
Inventories 19 47 696 49 454
Trade receivables 20,23 20 488 28 003
Other receivables 18,23 12 249 8 626
Prepayments 18 783 734
Other current financial assets 18,23 1 332 17 976
Cash and cash equivalents including restricted cash 21 33 382 18 881
Total current assets 115 930 123 673
TOTAL ASSETS
175 923
188 995
Consolidated statement of financial position
Fiven Annual Report 2023
26 Financial statements
Amounts in EUR thousand Note 31 Dec 2023 31 Dec 2022
EQUITY AND LIABILITIES
Share capital 27 101 101
Other paid in capital 27 5 575 5 575
Retained earnings 10 427 50 460
Foreign currency translation reserve (7 176) (6 383)
Total equity 8 927 49 754
Bond loan 22,23 108 593 69 146
Non-current lease liabilities 12 1 013 477
Non-current other liabilities 23 142 -
Deferred tax liabilities 14 2 698 8 565
Employee benefit obligations 9 216 265
Provisions 24 252 1 523
Total non-current liabilities 112 913 79 976
Trade payables 23,28 26 905 28 634
Other payables 23,28 5 490 6 948
Current other interest-bearing liabilities 22 16 346 14 211
Current lease liabilities 12 1 052 958
Income tax payable 14 2 090 8 023
Other current liabilities 23 83 84
Provisions (current) 24 2 116 406
Total current liabilities 54 083 59 264
Total liabilities 166 996 139 241
TOTAL EQUITY AND LIABILITIES 175 923 188 995
The Board of Directors of Fiven ASA - Oslo, 19 March 2024
Falk Ast Betty Lunøe Åsheim
Chairman Member of the Board
Helén Borchgrevink Stein Erik Ommundsen
Member of the Board General Manager
Fiven Annual Report 2023
Financial statements 27
Consolidated statement of changes in equity
Amounts in EUR thousand
Share
capital
Other paid
in capital
Retained
Earnings
Foreign
currency
translation
reserve Total Equity
Opening balance 1 January, 2023 101 5 575 50 460 (6 383) 49 754
Net income (loss) - - (2 033) - (2 033)
Other comprehensive income (loss) - - - (794) (794)
Total comprehensive income (loss) of the year - - (2 033) (794) (2 827)
Dividends to owners - - (38 000) - (38 000)
Closing balance as of 31 December 2023 101 5 575 10 427 (7 176) 8 927
Opening balance 1 January, 2022 101 5 575 (451) (9 719) (4 494)
Net income (loss) - - 53 724 - 53 724
Other comprehensive income (loss) - - - 3 337 3 337
Total comprehensive income (loss) of the year - - 53 724 3 337 57 061
Dividends to owners - - (2 813) - (2 813)
Closing balance as of 31 December 2022 101 5 575 50 460 (6 383) 49 754
Fiven Annual Report 2023
28 Financial statements
Consolidated statement of cash flows
Amounts in EUR thousand Note 2023 2022
1 January to 31 December
Net income (loss) before income taxes 272 74 952
Adjustments to reconcile net income (loss) before income tax to net cash flows:
Corporate income tax paid (11 728) (10 435)
Depreciation and amortization 15,16 5 826 5 437
Net (gain)/loss on disposal of buildings, plant and equipment (397) (355)
Net (gain)/loss on fair value of power derivatives 23, 30 26 819 (22 388)
Net finance expense 13 9 213 9 019
Change in inventory, trade receivables and trade payables 7 689 (20 625)
Change in other receivables, prepayments, and other payables (5 357) 5 156
Change in provisions 824 1 254
Other changes 10 (499)
Cash flows from operating activities 33 170 41 516
Payments for buildings, plant and equipment, and intangible assets 15,16 (11 061) (7 963)
Proceeds from sale of assets 151 20
Interest received 234 354
Other investing activity (83) -
Cash flows from investing activities (10 760) (7 589)
Proceeds from issues of bonds 22,23 110 000 -
Repayment Bond loan 22,23 (70 000) -
Repayment Shareholders loan 22,23 - (21 977)
Net proceeds from factoring/export financing 22 2 281 (1 576)
Interest, placement fee and other financial expenses paid (10 508) (11 091)
Payment of principal portion of lease liabilities 12 (1 586) (1 263)
Payments to companys shareholders (38 000) (2 813)
Cash Flow from Other Financing Activities (23) -
Cash flows from financing activities (7 836) (38 720)
Net increase (decrease) in cash and cash equivalents 14 575 (4 793)
Net foreign exchange differences (74) 36
Cash and cash equivalents including restricted cash at 1 January 18 881 23 637
Cash and cash equivalents including restricted cash as of 31 December 21 33 382 18 881
Restricted cash at 1 January 194 112
Change in restriced cash 145 82
Restricted cash as of 31 December 21 339 194
Total cash and cash equivalents excluding restricted cash 31 December 21 33 042 18 687
Fiven Annual Report 2023
Financial statements 29
Notes to the consolidated
financial statements
Note 1 General information 31
Note 2 Material accounting policies 31
Note 3 Accounting estimates and judgements 33
Note 4 Composition of the group 34
Note 5 Operating segments 36
Note 6 Revenue 39
Note 7 Grants 41
Note 8 Employee benefit expenses 42
Note 9 Employee benefit obligations (pensions) 43
Note 10 Management remuneration 44
Note 11 Other operating expenses 46
Note 12 Leasing 47
Note 13 Finance income and expenses 49
Note 14 Taxes 50
Note 15 Property, plant and equipment 53
Note 16 Intangible assets 55
Note 17 Impairment assessments 57
Note 18 Other receivables 59
Note 19 Inventories 59
Note 20 Trade receivables 60
Note 21 Cash and cash equivalents 61
Note 22 Interest bearing liabilities 61
Note 23 Financial assets and liabilities 66
Note 24 Provisions 71
Note 25 Financial risk 72
Note 26 Capital management 75
Note 27 Equity 76
Note 28 Trade and other payables 77
Note 29 Transactions and balances with related parties 78
Note 30 Financial impact of climate related risk 79
Note 31 Events after the reporting period 79
Fiven Annual Report 2023
30 Financial statements
Note 1 General information
Fiven ASA is a public limited liability company incorporated
in Oslo, Norway, and whose bonds are publicly traded at
the Stockholm and Frankfurt stock exchanges. Fiven ASA’s
registered office is at Apotekergata 10, Oslo, Norway. Fiven ASA
is owned 100 percent by Tosca Intermediate Holdings Sàrl, a
company controlled by OpenGate Capital, a private equity firm
specialized in acquiring and optimizing lower middle market
businesses throughout North America and Europe.
Fiven is a global leader in silicon carbide (“SiC”), a material
used in a variety of industrial applications. SiC is recognized for
superior hardness and thermal conductivity, making it the pre-
ferred material for demanding applications: abrasive, metallurgy,
filtration, technical ceramics and other uses. The Fiven Group
is headquartered in Oslo (Norway), and has significant manu-
facturing operations in Arendal and Lillesand (Norway), Hody
(Belgium), and Barbacena (Brazil).
The consolidated financial statements of Fiven ASA and its
subsidiaries (hereafter Fiven or the Group), including notes, for
the year 2023 were approved by the Board of Directors of Fiven
ASA on 19 March 2024.
Note 2 Material accounting policies
Note 2.1 Basis of preparation
The consolidated financial statements are prepared in accord-
ance with IFRS® Accounting Standards as adopted by the EU
(IFRS).
The presentation currency of Fiven is Euro, which is the
functional currency of Fiven ASA. All financial information is
presented in Euro thousand, unless otherwise stated. As a result
of rounding adjustments, the figures in one or more columns
included in the consolidated financial statements, may not add
up to the total.
The financial statements have been prepared on a historical
cost basis, except for derivative instruments and defined benefit
pension plans that are measured at fair value.
The consolidated financial statements have been prepared
based on the going concern assumption.
Fiven Annual Report 2023
Financial statements 31
Note 2.2 Foreign currency
Foreign currency transactions
The functional currency is determined in each entity in the
Group based on the currency within the entity's primary eco-
nomic environment. Transactions in foreign currency are trans-
lated to functional currency using the exchange rate at the date
of the transaction. At the end of each reporting period foreign
currency monetary items are translated using the closing rate,
non-monetary items that are measured in terms of historical
cost are translated using the exchange rate at the date of the
transaction and non-monetary items that are measured at fair
value in a foreign currency are translated using the exchange
rates at the date when the fair value was measured.
Foreign operations
The assets and liabilities of foreign operations, including goodwill
and fair value adjustments arising on acquisition, are translated
into euro at the exchange rates at the reporting date. The income
and expenses of foreign operations are translated into euro at
the exchange rates at the dates of the transactions. The monthly
average exchange rates are used as an approximation of the
transaction exchange rate. Foreign currency differences are rec-
ognized in other comprehensive income (“OCI”) and accumulated
in the foreign currency translation reserve.
If a foreign entity is sold, the accumulated translation difference
linked to the entity is reversed and recognized in the statement of
comprehensive income in the same period as the gain or loss on
the sale is recognized.
Note 2.3 Current versus non-current
classification
The Group presents assets and liabilities in the consolidated
statement of financial position as either current or non-current.
The Group classifies an asset as current when it:
• Expects to realize the asset, or intends to sell or consume it, in
its normal operating cycle
• Holds the asset primarily for the purpose of trading
• Expects to realize the asset within twelve months after the
reporting period
Or
• The asset is cash or a cash equivalent, unless the asset is
restricted from being exchanged or used to settle a liability for
at least twelve months after the reporting period.
All other assets are classified as non-current, including deferred
tax assets.
The Group classifies a liability as current when it:
• Expects to settle the liability in its normal operating cycle
• Is due to be settled within twelve months after the reporting
period
Or
• It does not have an unconditional right to defer settlement
of the liability for at least twelve months after the reporting
period.
All other liabilities are classified as non-current, including
deferred tax liabilities.
Note 2.4 Changes in accounting principles
Events after the reporting period
New information on the company’s financial position on the
end of the reporting period which becomes known after the
reporting period is recorded in the annual accounts. Events after
the reporting period that do not affect the company’s financial
position at the end of the reporting period, but will affect the
company’s financial position in the future, are disclosed if
significant.
New standards and interpretations
adopted by the Group
New or revised accounting standards and interpretations
implemented as of 1 January 2023 are among others, IFRS 17
Insurance contracts, Amendments to IAS 1 and IFRS Practice
Statement 2 - Disclosure of Accounting policies, Amendments
to IAS 8 - Definition of Accounting Estimates, Amendments to
IAS 12 - Deferred Tax related to Assets and Liabilities arising
from a Single Transaction, and Amendments to IAS 12 –
International Tax reform – Pillar Two Model Rules
The new or revised standards and interpretations effective for
the annual reporting period commencing 1 January 2023 did not
have any significant impact on the amounts recognized in prior
periods and are not expected to significantly affect the current
or future periods.
New standards and interpretations not yet adopted
Certain new accounting standards, amendments to accounting
standards and interpretations have been published that are not
mandatory for 31 December 2023 reporting periods and have
not been early adopted by the group. These standards, amend-
ments or interpretations are not expected to have a material
impact on Fiven in the current or future reporting periods and on
foreseeable future transactions.
Fiven Annual Report 2023
32 Financial statements
Note 3 Accounting estimates and judgements
The preparation of financial statements requires the use of
accounting estimates which, by definition, will seldom equal the
actual results. Management also needs to exercise judgement in
applying the group’s accounting policies.
This note provides an overview of the areas that involved a
higher degree of judgement or complexity.
The areas involving significant estimates or judgements are:
Impairment indicators
Fiven has made an assessment to identify any indications to the
effect that material tangible or intangible assets with a finite life
may be impaired. Such indications have not been identified and
therefore a full estimation of recoverable amounts has not been
made. The evaluation of external and internal sources and the
potential effect involves considerable judgement.
Impairment testing of goodwill and
intangible assets with an indefinite life.
Goodwill and intangible assets with an indefinite useful life are
not amortized. These assets are therefore tested at least annually
for impairment. The test process involves identifying expected
cash flows relating to the assets and discounting the cash flows
to arrive at an estimated value. Future cash flows are based on
specific assumptions and plans adopted by the company.
The impairment testing process involves considerable judge-
ment and estimation with regard to the specific assumptions
and plans made. See note 17 Impairment Assessments.
Estimation and judgements
regarding environmental liabilities
Fiven has operations in Norway, Brazil and Belgium representing
potential exposure towards environmental consequences. A
provision is recognized when the group has a present obligation,
and it is probable that an outflow of resources is required to
settle the obligation.
Any significant contingent liabilities are disclosed in the notes.
Contingent liabilities are liabilities which are not recognized
because they are possible obligations that have not yet been
confirmed, or they are present obligations where an outflow of
resources is not probable.
The process and procedures used in assessing the need for a
provision or alternatively information regarding contingent liabil-
ities involves considerable judgements with regard to assessing
potential obligations in terms of probability and potential outflow
of resources. See note 24 Provisions.
Estimation and judgements regarding contingent liabilities
Contingent liabilities are not recognized in the annual accounts.
Significant contingent liabilities are disclosed, with the exception
of contingent liabilities that are unlikely to be incurred.
Estimates and judgements are continually evaluated. They are
based on historical experience and other factors, including
expectations of future events that may have a financial impact
on the entity and that are believed to be reasonable under the
circumstances.
Fiven Annual Report 2023
Financial statements 33
Note 4 Composition of the group
Consolidation principles
The Group’s consolidated financial statements comprise the
parent company and its subsidiaries as of 31 December 2023. An
entity has been assessed as being controlled by the Group when
the Group is exposed to, or have the rights to, variable returns
from its involvement with the entity and has the ability to affect
those returns through its power over the entity.
Thus, the Group controls an entity if and only if the Group has all
the following:
• power over the entity;
• exposure, or rights, to variable returns from its involvement
with the entity; and
• the ability to use its power over the entity to affect its returns.
There is a presumption that if the Group has the majority of the
voting rights in an entity, the entity is considered as a subsidiary.
To support this presumption the Group considers all relevant facts
and circumstances in assessing whether it has power over the
entity, including voting rights, ownership structure and relative
power, and other contractual arrangements and rights thereto.
Consolidation of a subsidiary begins when the Group obtains
control over the subsidiary and ceases when the Group loses
control of the subsidiary. The Group re-assesses whether or not
it controls an entity if facts and circumstances indicate that there
are changes to one or more of the three elements of control.
Inter-company transactions, balances and unrealized gains
on transactions between group companies are eliminated.
Unrealized losses are eliminated in the same way as unreal-
ized gains, but only to the extent that there is no evidence of
impairment.
Business combinations and goodwill
Business combinations are accounted for using the acquisition
method. For description of the measurement of non-controlling
interest, see below. Acquisition-related costs are expensed in
the periods in which the costs are incurred and the services are
received.
The consideration paid in a business combination is measured at
fair value at the acquisition date and consist of cash.
When acquiring a business are all financial assets and liabilities
assumed for appropriate classification and designation in
accordance with contractual terms, economic circumstances
and pertinent conditions at the acquisition date. The acquired
assets and liabilities are accounted for by using fair value in the
opening group balance (unless other measurement principles
should be applied in accordance with IFRS 3).
The initial accounting for a business combination can be
changed if new information about the fair value at the acquisi-
tion date is present. The allocation may be amended within 12
months of the acquisition date.
The measurement principle is done for each business combina-
tion separately.
When the business combination is achieved in stages are
the previously held equity interest re-measured at its acqui-
sition-date fair value and the resulting gain or loss, if any, is
recognized in profit or loss.
Goodwill is recognized as the aggregate of the consideration
transferred and the amount of any non-controlling interest, and
deducted by the net of the acquisition-date amounts of the
identifiable assets acquired and the liabilities assumed. Goodwill
is not depreciated, but is tested at least annually for impairment.
If the fair value of the equity exceeds the acquisition cost in a
business combination, the difference is recognized as income
immediately on the acquisition date.
Fiven Annual Report 2023
34 Financial statements
Fiven ASA and the following subsidiaries make up the composition of the group and are included in the consolidated financial
statements:
Company
Functional
Currency
Country of
incorporation
31 Dec 2023
Equity
Interests
31 Dec 2022
Equity
Interests Owner
Fiven Norge AS NOK Norway 100% 100% Fiven ASA
Fiven GmbH EUR Germany 100% 100% Fiven ASA
Materiaux Ceramiques SA EUR Belgium 100% 100% Fiven ASA
Carbeto de Silício Sika Brasil Ltda BRL Brazil 100% 100% Fiven ASA
Fiven North America Inc USD US 100% 100% Fiven ASA
Changes in composition of the Group
In November 2022 Fiven sold its two Venezuelan subsidiaries for 1 (one) EUR. These subsidiaries have never been included in the
consolidated financial statements. The assessment was that although the two Venezuelan subsidiaries were controlled by the Group
as defined in IFRS 10, as they were integrated cost centers under the business model of the Belgian production facility there was no
material impact on the financial information being relevant and faithfully represented by their exclusion. The sale was at no material
consideration and there was no gain or loss on sale, and the disposal has no impact on the consolidated financial statement.
The following disposed subsidiaries have not been included in the consolidated financial statements:
Company
Functional
Currency
Country of
incorporation
31 Dec 2023
Equity
Interests
31 Dec 2022
Equity
Interests Owner
Materials Ceramicos CA USD Venezuela - - Fiven Norge AS
Carburo del Caroni CA VEF Venezuela - - Materials Ceramicos CA
Fiven Annual Report 2023
Financial statements 35
Note 5 Operating segments
Operating segments are reported in a manner consistent with
the internal reporting provided to the chief operating decision
maker (“CODM”). At Fiven this is defined as the Chairman, for the
purpose of assessing performance and allocating resources.
Fiven identifies its segments according to the organization and
reporting structure as decided and followed up by group man-
agement. Operating segments are components of a business
that are evaluated regularly by the chief operating decision
maker, defined as the Chairman, for the purpose of assessing
performance and allocating resources.
Fiven has three reportable segments: Fiven Norway, Fiven Brazil
and Fiven Belgium.
Fiven Norway - The two plants in Norway in respectively
Lillesand and Arendal are focused on customized products as
well as abrasive applications. Arendal is the oldest still running
silicon carbide plant in the world.
Fiven Brazil - The largest silicon carbide plant within the Fiven
Group is located in Barbacena, Brazil. Mainly supplying the
American continent market, the plant provides solutions for
refractory and metallurgical applications.
Fiven Belgium - The processing plant in Hody, Belgium, delivers
mainly products for metallurgical and refractory applications.
Fiven Belgium’s source of crude silicon carbide has traditionally
been Fiven entities in Venezuela acting as an extension of the
Belgian operations with no other customers than the Belgian
entity. In November 2022 the Venezuelan production entities
were sold, and a supply agreement was entered into with the new
owner. Fiven Belgium is also receiving material from Fiven Brazil.
Other - Fiven ASA has offices in Oslo, Norway. Together with
Fiven GmbH in Cologne, Germany, they are performing head-
quarter and management activities for the Fiven Group. Fiven
also has a subsidiary in Pittsburgh (USA) performing sales
and marketing services, and a sales representation office in
Shanghai (China).
Operating segment information
Segment performance is evaluated based on Adjusted EBITDA
(as defined in the APM attachment). Adjusted EBITDA shows the
Group’s operating profit (loss) before depreciation and amor-
tization, before items that require special explanation. “Other
income and expenses” (OIE) include one-off and non-recurring
operating expenses, but excludes operating income excess
power sales. The Alternative Performance Measures (APMs) are
further explained in the APM attachment to the annual report.
Fiven's financing and taxes are managed on a group basis and
are not allocated to operating segments. Eliminations comprise
mainly of intersegment sales. Transactions between operating
segments are conducted on an arm's length basis in a manner
similar to transactions with third parties. The accounting policies
used for segment reporting reflect those used for the group.
Fiven Annual Report 2023
36 Financial statements
SEGMENT REPORTING FOR THE PERIOD 1 JANUARY TO 31 DECEMBER 2023
Amounts in EUR thousand
Fiven
Norway
Fiven
Brazil
Fiven
Belgium Other
Total
segment
reporting
Revenue from contracts with customers 63 496 70 421 17 500 - 151 417
Other income 1 369 - 11 - 1 380
Total revenue and other income from external customers 64 864 70 421 17 511 - 152 796
Revenue from other group segments 236 20 302 2 260 (22 798) -
Total revenue and other income 65 100 90 723 19 772 (22 798) 152 796
Operating expenses (excluding depr. and amort.) (49 069) (65 937) (18 864) 23 181 (110 689)
Other gains and losses
1
(26 800) - - - (26 800)
Operating profit (loss) before depreciation and amortization (10 768) 24 786 908 383 15 308
Non-recurring & other non-financial items
2
28 098 241 83 940 29 361
Adjusted EBITDA 17 329 25 026 990 1 323 44 669
Operating profit (loss) before depreciation and amortization (10 768) 24 786 908 383 15 308
Depreciation and amortization (2 841) (1 685) (229) (1 071) (5 826)
Operating profit (loss) 9 482
1
Other items relate to the gain or loss on fair value of a power contract, refer to note 23 for further information.
2
Of non-recurring & other non-financial items kEUR 25 583 is related to power contract income.
SEGMENT REPORTING FOR THE PERIOD 1 JANUARY TO 31 DECEMBER 2022
Amounts in EUR thousand
Fiven
Norway
Fiven
Brazil
Fiven
Belgium Other
Total
segment
reporting
Revenue from contracts with customers 74 721 93 593 23 943 - 192 258
Other income 15 161 1 11 2 15 174
Total revenue and other income from external customers 89 882 93 594 23 955 2 207 432
Revenue from other group segments 2 842 23 903 1 492 (28 236) -
Total revenue and other income 92 724 117 497 25 447 (28 235) 207 432
Operating expenses (excluding depr. and amort.) (57 199) (83 908) (26 951) 27 645 (140 413)
Other gains and losses
1
22 388 - - - 22 388
Operating profit (loss) before depreciation and amortization 57 913 33 588 (1 505) (589) 89 408
Non-recurring & other non-financial items
2
(30 302) 306 779 1 267 (27 950)
Adjusted EBITDA 27 611 33 894 (725) 677 61 457
Operating profit (loss) before depreciation and amortization 57 913 33 588 (1 505) (589) 89 408
Depreciation and amortization (2 486) (1 535) (229) (1 186) (5 437)
Operating profit (loss)
83 971
1
Other items relate to the gain or loss on fair value of a power contract, refer to note 23 for further information.
2
Of non-recurring & other non-financial items kEUR (30 353) is related to power contract income
Fiven Annual Report 2023
Financial statements 37
NON-CURRENT ASSETS IN THE SEGMENTS AS OF 31 DECEMBER 2023
Amounts in EUR thousand
Fiven
Norway
Fiven
Brazil
Fiven
Belgium Other
Total
segment
reporting
Buildings and land 4 780 4 091 294 - 9 165
Plant and equipment 15 315 13 569 795 13 29 692
Right-of-use-assets 1 103 576 270 - 1 948
Other Intangible assets 12 525 680 115 - 13 320
Goodwill 5 390 - - - 5 390
Other non-current financial assets 90 208 - 13 311
Deferred tax assets - 166 - - 166
Non-current assets 39 203 19 290 1 474 26 59 993
NON-CURRENT ASSETS IN THE SEGMENTS AS OF 31 DECEMBER 2022
Amounts in EUR thousand
Fiven
Norway
Fiven
Brazil
Fiven
Belgium Other
Total
segment
reporting
Buildings and land 4 937 4 009 308 - 9 253
Plant and equipment 12 682 10 586 742 11 24 020
Right-of-use-assets 380 616 306 - 1 301
Other Intangible assets 12 894 836 161 - 13 890
Goodwill 5 390 - - - 5 390
Other non-current financial assets 10 249 114 - 14 10 378
Deferred tax assets - 1 088 - - 1 088
Non-current assets 46 532 17 248 1 517 24 65 321
Fiven Annual Report 2023
38 Financial statements
Note 6 Revenue
Fiven’s main performance obligations are related to sale of
goods, where the performance obligation is the delivery of an
agreed volume of products within the agreed specification.
The Group considers whether there are other promises in the
contract that are separate performance obligations to which a
portion of the transaction price would need to be allocated. The
Group has concluded that the current sales contracts do not
include any other material promises that are separate perfor-
mance obligations.
Fiven has both short term and long-term contracts. Short term
contracts, normally within one month, cover delivery of an agreed
volume at market price at the date the order is placed. The long-
term contracts cover a period of a few months and up to one
year, where the prices normally are fixed within a volume range.
The Group has generally concluded that it is the principal in its
revenue arrangements, because it typically controls the goods
or services before transferring them to the customer.
The Group recognizes revenue from the sale of goods at the
point in time when control of the goods is transferred to the
customer. Control of an asset refers to the ability to direct the
use of and obtain substantially all of the remaining benefits from
the asset, and the ability to prevent others from directing the
use of and receiving the benefits from the asset. The transfer
of control is determined based on the individual Incoterms rules
agreed in the customer contract. Revenue is recognized at the
point in time where the risk is transferred to the buyer. The main
incoterms in use are:
FOB- Free on Board- means that the seller delivers the goods
on board the vessel nominated by the buyer at the named port
of shipment or procures the goods already so delivered. The
risk of loss of or damage to the goods passes when the goods
are on board the vessel, and the buyer bears all costs from that
moment onwards.
FCA- Free Carrier -means that the seller delivers the goods to
the carrier, or another person nominated by the buyer at the
seller’s premises, or another named place. The risk passes to the
buyer at that point.
CPT- Carriage Paid To- means that the seller delivers the goods
to the carrier, or another person nominated by the seller at an
agreed place and that the seller must contract for and pay the
costs of carriage necessary to bring the goods to the named
place of destination. The risk passes to the buyer when the
goods have been delivered to the named place.
CIF – Cost, Insurance and Freight means that the seller delivers
the goods on board the vessel or procures the goods already
so delivered. The risk of loss of or damage to the goods passes
when the goods are on board the vessel. The seller must con-
tract for and pay the costs and freight necessary to bring the
goods to the named port of destination. The seller also contracts
for insurance cover against the buyer’s risk of loss of or damage
to the goods during the carriage.
DDP- Delivered Duty Paid-means that the seller delivers the
goods when the goods are placed at the disposal of the buyer,
cleared for import on the arriving means of transport ready for
unloading at the named place of destination. The seller bears all
the costs and risks involved in bringing the goods to the place
of destination and has an obligation to clear the goods for all
custom duties.
Fiven in certain instances provides retrospective volume
discounts (or bonuses) once the quantity of products purchased
during a period exceeds a threshold specified in the contract.
When the consideration in a contract includes a variable amount,
such as retrospective discounts and bonuses, the Group esti-
mates the amount of consideration to which it will be entitled
in exchange for transferring the goods to the customer. The
retrospective bonuses and discounts are estimated at contract
inception and constrained until it is highly probable that a sig-
nificant revenue reversal in the amount of cumulative revenue
recognized will not occur, when the associated uncertainty with
the variable consideration is subsequently resolved. Constrained
amounts are set off against amounts payable by the customer.
To estimate the variable consideration for the expected future
rebates, the Group applies the most likely amount method for
contracts with a single-volume threshold and the expected
value method for contracts with more than a single-volume
threshold. The Group recognizes refund liabilities for the
expected volume rebates.
The Group sometimes receives short-term advances from its
customers. Using the practical expedient in IFRS 15, the Group
does not adjust the promised amount of consideration for the
effects of a significant financing component if it expects, at
contract inception, that the period between the transfer of the
promised good or service to the customer and when the customer
pays for the particular good or service will be one year or less.
The Group has chosen to apply the optional practical expedi-
ent for costs to obtain a contract which allows the Group to
immediately expense such costs when the related revenue is
Fiven Annual Report 2023
Financial statements 39
expected to be recognized within one year. When revenues
will be recognized over several reporting periods the Group
recognizes incremental costs of obtaining a contract with a
customer as an asset, provided that the costs are expected to
be recovered throughout the contract. The costs are amortized
on a systematic basis that is consistent with the transfer of the
related goods or services to the customer and subsequently
re-assessed at the end of each reporting period.
Revenue from contracts with customers
DETAILS OF REVENUE FOR THE PERIOD 1 JANUARY TO 31 DECEMBER 2023
Amounts in EUR thousand Fiven Norway Fiven Brazil Fiven Belgium Total
Core products 18 271 67 999 17 500 103 770
Customized products 45 225 2 422 - 47 647
Total revenue 63 496 70 421 17 500 151 417
DETAILS OF REVENUE FOR THE PERIOD 1 JANUARY TO 31 DECEMBER 2022
Amounts in EUR thousand Fiven Norway Fiven Brazil Fiven Belgium Total
Core products 29 273 91 154 23 943 144 371
Customized products 45 448 2 439 - 47 887
Total revenue 74 721 93 593 23 943 192 258
Sales are recognized in income at the expected value of the consideration after deducting benefits to customers, mainly estimated
bonus payments. At 31 December 2023 the accrued, unpaid volume discounts bonus was 53 kEUR compared to 117 kEUR at 31
December 2022.
REVENUE FROM CONTRACTS WITH CUSTOMERS BASED ON CUSTOMER LOCATION
Amounts in EUR thousand 2023 2022
Europe 57 252 77 883
Asia 12 751 9 143
North America 22 432 29 718
South America 58 982 75 514
Other - -
Total revenue 151 417 192 258
Fiven has several large customers, of which top 10 customers accounted for 51% percent of revenues in 2023 (2022: 48 percent).
OTHER INCOME
Amounts in EUR thousand 1 Jan-31 Dec 23 1 Jan-31 Dec 22
Realized portion of economic hedge power derivatives 1 218 15 141
Gain on sale of property, plant and equipment 151 20
Other income 11 14
Total other income 1 380 15 174
In Norway Fiven enters into power contracts to hedge prices related to forecast future production needs. During 2023 Fiven sold
power contracts that were in excess of forecast power needs which resulted in gains of EUR 1.2 million. (EUR 15.1 million 2022) Refer
to note 23 for further information on derivative contracts.
Fiven Annual Report 2023
40 Financial statements
Note 7 Grants
Government grants are recognized when it is reasonably certain that the company will meet the conditions stipulated for the grants
and that the grants will be received. Operating grants are recognized systematically during the grant period. Grants are recognized
as a deduction of the related expense. Investment grants are capitalized and recognized systematically over the asset’s useful life.
Investment grants are recognized as a deduction of the asset’s carrying amount.
1 Jan-31 Dec 23 1 Jan-31 Dec 22
Amounts in EUR thousand
Income
statement
Deduction
of carrying
amount
fixed assets
Income
statement
Deduction
of carrying
amount
fixed assets
SkatteFUNN R&D tax incentive scheme 215 - 23 -
Innovation Norway grants from the Norwegian Government - - 160 371
CO2 compensation from the Norwegian Government 866 - 2 141 -
R&D grants from Brasilian Goverment 190 - - -
Staff training grant from the Belgian government - - 2 -
R&D grants from Norwegian Government (Forskningsrådet) 70 - - -
Total Government grants 1 341 - 2 326 371
R&D grants from Miljøfondet - 347 - 904
R&D Grants from GassNova 85 - -
R&D grants from SINTEF, EU project 77 - - -
Grants from other than Government 162 347 - 904
Total grants 1 502 347 2 326 1 275
SkatteFUNN R&D tax incentive scheme
In 2023 215 kEUR is recognized as a reduction in tax expense,
all related to development of new product as well as projects for
reducing the environmental footprint in relations with process-
ing of crude. In 2022 23 kEUR is recognized as a reduction in tax
expense, which comprises 110 kEUR in tax deductions received
in relation to the development of new products, and an 87 kEUR
reversal of excess funding recognized in 2021.
R&D grants from Norwegian
Government (Forskningsrådet)
Fiven received grants from Forskningsrådet for the research
regarding how transparency and particle size in Silicon Carbide
influence the possibilities for 3D-printing with Digital Light
Processing.
R&D grants from GassNova
The project is a pre study on how to perform carbon capture in
the processing of silicon carbide crude.
EU-product
The project relates to how recycle SiC raw materials in
Acheson’s ovens.
Miljøfondet grants to improve gas cleaning
Research and development grants of 347 kEUR (904 kEUR 2022)
received from Miljøfondet (the Norwegian environmental fund)
for gas cleaning of the furnace hall at the plant in Lillesand,
Norway.
In total 636 kEUR in R&D grants was recognized in other
operating expense, and 347 kEUR as a deduction in the carrying
amount of fixed assets.
In 2022 531 kEUR of funding was received for the development
and demonstration of new furnace technology and gas cleaning
expansion linked to the demonstration of new environmental
technology for SiC production). Of this 160 kEUR was recognized
in other operating expense, and 371 kEUR as a deduction in the
carrying amount of fixed assets.
CO
2
compensation
The Norwegian government established a scheme for CO
2
com-
pensation for power intensive industries, with the purpose to
counteract carbon leakage from Europe due to increased power
prices as a result of the EU's climate quota system, and in this
way prevent increased global emissions. The annual costs of
CO
2
compensation are directly linked to the quota price. The CO
2
compensation scheme only applies for Fiven's Norwegian plants
and is recognized where there is reasonable assurance that the
entity will comply with the conditions attached and the grants
will be received. 866 kEUR is recognized as a reduction in the
income statement line Raw materials, energy cost and change in
inventory for 2023 - compared to 2 141 kEUR in 2022.
Fiven Annual Report 2023
Financial statements 41
Note 8 Employee benefit expenses
Amounts in EUR thousand 1 Jan-31 Dec 23 1 Jan-31 Dec 22
Salaries incl. bonuses 17 902 22 229
Social security cost 3 273 3 575
Pension cost (Note 9) 1 024 1 089
Other personnel related cost 629 1 038
Total employee benefit expenses 22 828 27 931
Amounts in EUR thousand 2023 2022
Average full time equivalents 409 453
Full time equivalents 31.12 399 428
Expenses relating to research activities are recognized in the statement of income as they incur. Expenses relating to development
activities are capitalized to the extent that the product or process is technically and commercially viable and the Group has sufficient
resources to complete the development work.
DEVELOPMENT EXPENSES
Amounts in EUR thousand 1 Jan-31 Dec 23 1 Jan-31 Dec 22
Total research and development expenses 1 944 1 830
Less: R&D Grants not qualified for capitalization (636) (183)
Less: Capitalized development excluded from employee benefit expenses (298) (264)
Net expensed research and development expenses 1 010 1 383
Fiven Annual Report 2023
42 Financial statements
Note 9 Employee benefit obligations (pensions)
Defined contribution plans
Fiven’s pension plans are mainly defined contribution plans.
These plans comprise arrangements whereby the company
makes annual contributions to the employee's pension plan,
and where the employee's future pension is determined by the
amount of the contributions and the return on the pension plan
asset. The Group’s contributions to these plans are recognized
as an expense when they incur.
Defined contribution plans are the main pensions plan for
Fiven's Norwegian entities. In Fiven Norge AS the contribution is
4% of annual salary up to 7.1G and 15% from 7.1G to 12G. In Fiven
ASA the contribution is 5% of annual salary up to 7.1G and 8%
from 7.1G to 12G. 1G refers to the Norwegian national insurance
scheme's basic amount, which was 118 620 as of 1 May 2023.
In addition, Fiven Norge AS participates in a Norwegian
multi-employer early retirement scheme called AFP, where
sufficient information to calculate each participant's pension
obligation is not available, is accounted for as it is a defined
contribution plan in accordance with the Ministry of Finance's
conclusion. The participants in the pension plan are jointly
responsible for 2/3 of the plan's pension obligation, the
government is responsible for the remaining part. The yearly
pension premium in 2023 is 2.6 percent of the employees' salary
between 1G and 7.1G, covering this year's pension payments and
contribution to a security fund for future pension obligations.
The subsidiary in Brazil has a defined contribution plan with a
contribution from the company. The employee participates in
the plan with a percentage that may vary from 2 percent up
to 7 percent of their salary. The company contributes with 150
percent of the employee contribution.
The subsidiary in Belgium has a defined contribution plan with
a contribution from the company and from the employee. The
company contribution varies from 1.4 percent to 4.23 percent
of the monthly salary, the employee contribution is equal to 50
percent of the company contribution.
BREAKDOWN OF NET PENSION EXPENSES
Amounts in EUR thousand 1 Jan-31 Dec 23 1 Jan-31 Dec 22
Pension costs def. contrib. plan 1 024 1 167
Pension costs (net gain) def. benefit plan (5) (78)
Total pension cost 1 019 1 089
DEFINED BENEFIT PLANS
Amounts in EUR thousand 2023 2022
Present value of pension obligations 216 265
Fair value of plan assets - -
Net unfunded pension obligations
216
265
Defined benefit plans
Defined benefit plans are pension plans where the group is
responsible for paying pensions at a certain level, based on
employees' salaries when retiring. The current service cost and
net interest income/costs are recognized in profit or loss and
is presented in the salary and personnel cost in the income
statement.
Fiven Norge AS has an unfunded benefit plan covering retired
employees only. There are no new pensioners entering the plan.
In 2023 a net gain of 5 kEUR was recorded as the remeasure-
ment gain was greater than interest and service cost during the
year (78 kEUR gain in 2022).
Fiven Annual Report 2023
Financial statements 43
Note 10 Management remuneration
The key principles for determination of the Group’s remuneration are
to encourage a strong, sustainable and performance-based culture.
The remuneration policy should also ensure that Fiven has a strong
ability to attract, retain and develop qualified people with adequate
leadership and professional competencies and skills, in order to sup-
port and contribute to profitable growth and creation of shareholder
value. Determination of remuneration also takes into account the
breadth and complexity of the company’s worldwide operations and
reflects the company’s objections for sustainability and growth.
The company shall seek to offer a remuneration level on market
terms satisfying the company's need to recruit and keep highly qual-
ified personnel on executive management level. More specifically,
this implies that the total compensation of the executive manage-
ment consists of a fixed compensation and other remuneration at a
level reflecting the principles mentioned above.
Remuneration includes
1. Salary - The fixed base salary will be determined based on
the following criteria: job level, local conditions in the labor
market, performance level, budget and guidelines for annual
salary review in line with general salary trends. The fixed
compensation shall be reasonable and competitive and rep-
resent a significant component in the executive management
compensation.
2. Bonus – The executive management participates in an annual
bonus scheme linked to achievements of both financial,
strategic and operational targets. The financial targets are
linked to Adjusted EBITDA and cash flow from operations.
3. Other – Benefits and insurances – The benefits are deter-
mined considering market standards and job level and include
elements such as mobile phone, laptop and car allowance
/ company car. The executive management is covered by
insurance arrangements applicable to Fiven employees in
their respective countries of residence.
4. Pension – The executive management participate in the
relevant local pension schemes in their countries of residence
in line with established market practices.
Loan and guarantees - There are no loans or guarantees to the
executive management or board members.
Termination of employment - The employment agreements for
the executive management have a minimum 6-month period of
notice from last day of the month in which the written notice is
given, and an equivalent period severance pay if employment is
terminated by Fiven.
Board members and group management personnel, including
their close family members or controlled entities, do not own any
shares directly in Fiven ASA. Indirect shareholdings are discussed
under Management investment scheme details below.
The table below details compensations paid to group management in the year:
FOR THE PERIOD 1 JANUARY TO 31 DECEMBER 2023
Amounts in EUR thousand Company Position Salary Bonus Other Pension cost Total
Falk Ast Chairman 332 200 82 8 622
Stein Erik Ommundsen Chief Financial Officer 211 79 16 8 313
Terrance Blanchard Chief Operating Officer 151 22 6 8 187
Betty Lunøe Åsheim Chief Commercial Officer 164 75 15 8 262
Trygve Eidet Chief Research Officer 148 8 14 8 178
Total 1 005 384 134 39 1 563
Fiven Annual Report 2023
44 Financial statements
FOR THE PERIOD 1 JANUARY TO 31 DECEMBER 2022
Amounts in EUR thousand Company Position Salary Bonus Other Pension cost Total
Falk Ast Chairman 307 86 82 8 482
Stein Erik Ommundsen Chief Financial Officer 226 61 18 9 313
Fernando Miquel Peraire Chief Operating Officer (until 31.5.2022) 92 45 7 3 146
Terrance Blanchard Chief Operating Officer (from 1.7.2022) 78 - 9 5 92
Betty Lunøe Åsheim Chief Commercial Officer 212 47 17 14 291
Pål Einar Runde Chief Research Officer (until 31.5.2022) 124 33 5 8 171
Trygve Eidet Chief Research Officer (from 1.10.2022) 45 - 4 3 51
Total 1 083 272 142 50 1 547
Remuneration of the board
The remuneration to the board of directors is determined by the
shareholders at the annual general meeting. Executive board
members are not compensated for their board position. The
non-executive board member, Helén Borchgrevink, received a
director’s fee of NOK 124 800 for her position as a board mem-
ber in 2023 (2022: NOK 120 000). The board of directors did not
receive any other fees, other than those for executive directors
in the previous table for their role in group management
Management investment scheme
The Management Investment Scheme is a management share
purchase plan, whereby the senior management members of
Fiven, including the 3 group management members above, in
September 2021 were invited to invest in Tosca Intermediate
Holdings SARL (“Tosca”), the holding company of Fiven ASA, for
shares representing 0.9% of total share capital.
The group-settled equity-settled share purchase plan allowed
management to purchase shares at a price equal to the grant-
date fair value, i.e., no discount, and there is no obligation for
Fiven to settle the transaction with Tosca. The fair value was
determined using a multiple valuation technique of the Fiven
business, operating profit (loss) before depreciation and amor-
tization adjusted for Net Financial Debt. As the purchase was
at fair value there is no share-based payment compensation
expense associated with the Management investment scheme.
Shares purchased under the program is subject to a three-year
lock-up period during which the acquired shares may not be
sold or otherwise disposed of. If participants in the scheme
leaves Fiven, there is a mandatory return of investment to the
lowest of fair value and cost.
There was no change to the scheme in 2023.
Fiven Annual Report 2023
Financial statements 45
Note 11 Other operating expenses
Amounts in EUR thousand 1 Jan-31 Dec 23 1 Jan-31 Dec 22
Transport, maintenance, energy and water expenses 15 113 18 632
External services 5 698 6 745
Travel, insurance, meetings and office expenses 2 780 2 711
Lease expenses 569 862
Other operating expenses 1 424 5 980
Total other operating expenses 25 583 34 930
REMUNERATION OF THE AUDITOR
Amounts in EUR thousand 1 Jan-31 Dec 23 1 Jan-31 Dec 22
Audit services 350 304
Other assurance services 9 5
Other non-assurance services 5 -
Audit expenses 364 309
PWC is the group auditor of Fiven.
Fiven Annual Report 2023
46 Financial statements
Note 12 Leasing
Identifying a lease
At the inception of a contract, The Group assesses whether the
contract is, or contains, a lease. A contract is, or contains, a lease
if the contract conveys the right to control the use of an identified
asset for a period of time in exchange for consideration.
The Group as a lessee
Separating components in the lease contract
For contracts that constitute, or contain a lease, the Group sepa-
rates lease components if it benefits from the use of each under-
lying asset either on its own or together with other resources that
are readily available, and the underlying asset is neither highly
dependent on, nor highly interrelated with, the other underlying
assets in the contract. The Group then accounts for each lease
component within the contract as a lease separately from non-
lease components of the contract.
Recognition of leases and exemptions
At the lease commencement date, the Group recognizes a
lease liability and corresponding right-of-use asset for all lease
agreements in which it is the lessee, except for the following
exemptions applied:
• Short-term leases (defined as 12 months or less)
• Low- value assets
For these leases, the Group recognizes the lease payments as
other operating expenses in the statement of profit or loss when
they incur.
Lease liabilities
The lease liability is recognized at the commencement date of the
lease. The Group measures the lease liability at the present value
of the lease payments for the right to use the underlying asset
during the lease term that are not paid at the commencement
date. The lease term represents the non-cancellable period of the
lease, together with periods covered by an option either to extend
or to terminate the lease when the Group is reasonably certain to
exercise this option.
The lease payments included in the measurement comprise of:
• Fixed lease payments (including in-substance fixed pay-
ments), less any lease incentives receivable
• Variable lease payments that depend on an index or a rate,
initially measured using the index or rate as at the commence-
ment date
• Amount expected to be payable by the Group under residual
value guarantees
• The exercise price of a purchase option, if the Group is
reasonably certain to exercise that option
• Payments of penalties for terminating the lease, if the lease
term reflects the Group exercising an option to terminate the
lease.
The lease liability is subsequently measured by increasing the
carrying amount to reflect interest on the lease liability, reducing
the carrying amount to reflect the lease payments made and
re-measuring the carrying amount to reflect any reassessment or
lease modifications, or to reflect adjustments in lease payments
due to an adjustment in an index or rate.
The Group does not include variable lease payments in the
lease liability. Instead, the Group recognizes these variable lease
expenses in profit or loss.
The Group presents its lease liabilities as separate line items in the
statement of financial position.
Right-of-use assets
The Group measures the right-of use asset at cost, less any
accumulated depreciation and impairment losses, adjusted for
any re-measurement of lease liabilities. The cost of the right-of-
use asset comprise:
• The amount of the initial measurement of the lease liability
recognized
• Any lease payments made at or before the commencement
date, less any incentives received
• Any initial direct costs incurred by the Group. An estimate
of the costs to be incurred by the Group in dismantling and
removing the underlying asset, restoring the site on which it
is located or restoring the underlying asset to the condition
required by the terms and conditions of the lease, unless
those costs are incurred to produce inventories.
The Group applies the depreciation requirements in IAS 16
Property, Plant and Equipment in depreciating the right-of-use
asset, except that the right-of-use asset is depreciated from
the commencement date to the earlier of the lease term and the
remaining useful life of the right-of-use asset.
The Group applies IAS 36 Impairment of Assets to determine
whether the right-of-use asset is impaired and to account for any
impairment loss identified.
Fiven Group has lease contracts for various production related
equipment, mainly forklifts, mining and quarry equipment, trucks
and vehicles. The production related equipment generally has lease
terms between 1 and 5 years. The obligations under its leases are
secured by the lessor’s title to the leased assets. Generally, Fiven
Group is restricted from assigning and subleasing the leased assets.
Fiven group has some leases of equipment with leases terms of 12
months or less and leases of office equipment with low value. For
these leases Fiven Group applies the “short-term lease” and the
“lease of low-value assets” recognition exemptions.
Fiven Annual Report 2023
Financial statements 47
Set out below are the carrying amount of right-of-use assets recognized and the amount during the period:
RIGHT-OF-USE ASSETS
Amounts in EUR thousand
Plant and
equipment
31 Dec 2023
Plant and
equipment
31 Dec 2022
Opening balance 1 301 2 741
Additions 2 408 483
Depreciation (1 770) (1 465)
Disposals - (613)
Currency translation difference 8 155
Net book value closing balance 1 948 1 301
TOTAL LEASE LIABILITIES
Amounts in EUR thousand 31 Dec 2023 31 Dec 2022
Opening balance 1 436 2 978
Addition 2 202 483
Disposals - (947)
Accretion of interest 220 198
Lease payments (1 806) (1 461)
Currency translation difference 13 185
Total lease liabilities 2 065 1 436
MATURITY ANALYSIS - CONTRACTUAL UNDISCOUNTED CASH FLOWS
Amounts in EUR thousand 31 Dec 2023 31 Dec 2022
Within one year 1 068 1 009
After one year but not more than five 1 095 478
More than five years 204 18
Total lease liabilty 2 367 1 505
AMOUNTS RECOGNIZED IN CONSOLIDATED STATEMENT OF INCOME
Amounts in EUR thousand 1 Jan–31 Dec 2023 1 Jan–31 Dec 2022
Depreciation charge of right-of use assets (1 770) (1 465)
Interest expense(included in finance cost) (220) (198)
Expense relating to short term leases (included in other operating cost) (569) (862)
Total amount recognized in statement of income (2 559) (2 526)
AMOUNTS RECOGNIZED IN CONSOLIDATED STATEMENT OF CASH FLOWS
Amounts in EUR thousand 1 Jan–31 Dec 2023 1 Jan–31 Dec 2022
Payment of principal portion of lease liabilities (1 586) (1 263)
Payment of interest (220) (198)
Total recognised in the cash flow statement (1 806) (1 461)
Fiven Annual Report 2023
48 Financial statements
Note 13 Finance income and expenses
Financial instruments are classified as liabilities or equity in accordance with the underlying economic realities.
Interest, dividend, gains and losses relating to a financial instrument classified as a liability will be presented as an expense or
income. Amounts distributed to holders of financial instruments that are classified as equity will be recorded directly in equity.
Amounts in EUR thousand 1 Jan-31 Dec 23 1 Jan-31 Dec 22
Finance income
Other interest income 235 359
Other financial income 5 12
Total finance income 240 371
Finance expenses
Interest on debts and borrowings (8 662) (7 783)
IFRS 16 interest expenses (220) (198)
Interest expense factoring/export financing (995) (563)
Other financial expenses
1
(561) (2 082)
Total finance expenses (10 438) (10 627)
Other financial items (net)
Net foreign exchange gains (losses) 718 1 244
Net change in currency fair value financial instruments 270 (6)
Other financial items (net) 988 1 238
Net Finance income (expenses) (9 210) (9 019)
1
In 2023 475,5 kEUR relates to early redemption fee of the previous Bond loan dated December 5, 2022. In 2022 1 995 kEUR relates to the consent
fee paid to bondholders for the amendment to the terms and conditions in the Bond loan dated December 5, 2022. Refer to note 22 for further
information.
Fiven Annual Report 2023
Financial statements 49
Note 14 Taxes
The income tax expense or credit for the period is the tax
payable on the current period’s taxable income, based on the
applicable income tax rate for each jurisdiction, adjusted by
changes in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses.
Deferred tax/tax assets are calculated on all differences
between the book value and tax value of assets and liabilities,
with the exception of:
• temporary differences linked to goodwill that are not tax
deductible
• temporary differences related to investments in subsidiaries,
associates or joint ventures when the Group controls when
the temporary differences are to be reversed and this is not
expected to take place in the foreseeable future.
Deferred tax assets are recognized when it is probable that the
company will have a sufficient profit for tax purposes in subse-
quent periods to utilize the tax asset. The companies recognize
previously unrecognized deferred tax assets to the extent it has
become probable that the company can utilize the deferred tax
asset. Similarly, the company will reduce a deferred tax asset
to the extent that the company no longer regards it as probable
that it can utilize the deferred tax asset.
Deferred tax and deferred tax assets are measured on the basis
of the expected future tax rates applicable to the companies in
the Group where temporary differences have arisen.
Deferred tax and deferred tax assets are recognized at their
nominal value and classified as non-current asset investments
(long-term liabilities) in the balance sheet.
Taxes payable and deferred taxes are recognized directly in
equity to the extent that they relate to equity transactions.
Amounts in EUR thousand 1 Jan–31 Dec 2023 1 Jan–31 Dec 2022
Tax payable (7 280) (16 762)
Correction of previous years current income taxes 303 231
Withholding tax (338) (352)
Changes in deferred tax 5 009 (4 345)
Income tax (expense) benefit (2 306) (21 228)
The Group's parent company is domiciled in Norway, where the applicable tax rate is 22 percent. The reconciliation of the expected to
the actual income tax expense is based on the applicable tax rate in Norway.
RECONCILIATION OF TAX (EXPENSE) BENEFIT TO NOMINAL STATUTORY TAX RATE
Amounts in EUR thousand 1 Jan–31 Dec 2023 1 Jan–31 Dec 2022
Net income (loss) before income taxes 272 74 952
Tax expense (-) benefit at applicable tax rate (60) (16 489)
Effect of different tax rates applied by subsidiaries (2 357) (3 454)
Tax effect of permanent differences exempted for tax / not tax deductible 78 (1 113)
Change in unrecognized deferred tax assets (467) (856)
Tax effect of translation differences exempted for tax 399 805
Correction of previous years current income taxes 439 231
Withholding tax (338) (352)
Income tax expense (2 306) (21 228)
Effective tax rate 847% 28%
Fiven Annual Report 2023
50 Financial statements
TAX PAYABLE IN THE BALANCE SHEET
Amounts in EUR thousand 2023 2022
Income tax payable (7 280) (16 762)
Prepaid taxes 4 723 (8 738)
Paid witholding tax 467 -
Income tax payable in the balance sheet (2090) (8023)
DEFERRED TAX ASSETS AND DEFERRED TAX LIABILITY
Amounts in EUR thousand 1 Jan–31 Dec 2023 1 Jan–31 Dec 2022
Receivable 300 401
Inventory 75 279
Other current liabilities 1 009 1 113
Tangible and intangible fixed assets 161 -
Tax losses carried forward 1 239 -
Other non current / Interest cost subject to limitations 5 811 5 163
Deferred tax assets 8 595 6 956
Unrecognized deferred tax asset, losses carried forward (1 239)
Unrecognized deferred tax asset, interest cost subject to limitations (5 686) (5 163)
Unrecognized deferred tax asset other (180) -
Deferred tax assets recognized 1 489 1 793
Netting (1 323) (705)
Net Deferred tax assets recognized 166 1 088
Tangible and intangible fixed assets 3 456 3 091
Inventory 282 -
Derivatives 283 6 179
Deferred tax liabilities 4 021 9 270
Netting (1 323) (705)
Net deferred tax liabilities 2 698 8 565
Net deferred tax (liabilities) / assets (2 532) (7 477)
CHANGE IN DEFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES
Amounts in EUR thousand 2023 2022
Opening balance as of 01 January (7 477) (3 205)
Change in deferred tax in statement of income 5 009 (4 345)
Translation difference (64) 73
Net Deferred tax assets/(liabilities) 31 December (2 532) (7 477)
Fiven Annual Report 2023
Financial statements 51
THE GROUP HAS TOTAL TAX LOSS CARRY FORWARD OF WHICH EXPIRES AS FOLLOW
2023 2022
Amounts in EUR thousand Tax base amount Tax amount Tax base amount Tax amount
Unlimited (Belgium) (4 955) (1 239) - -
Unlimited (Norway) - - - -
Total tax loss carry forward 31 December (4 955) (1 239) - -
THE GROUP HAS TOTAL TAX LOSS CARRY FORWARD OF WHICH EXPIRES AS FOLLOW
2023 2022
Amounts in EUR thousand Tax base amount Tax amount Tax base amount Tax amount
10 years (Norway) (25 848) (5 686) (21 497) (4 729)
Total tax loss carry forward 31 December
(25 848)
(5 686)
(21 497)
(4 729)
OECD Pillar Two model rules 9,10
The group is outside the scope of the OECD Pillar Two model rules. The OECD Pillar two is only effective for multinational companies
with group revenues over 750 million Euros.
Fiven Annual Report 2023
52 Financial statements
Note 15 Property, plant and equipment
Items of property, plant and equipment are measured at cost
less accumulated depreciation and impairment losses. When
assets are sold or disposed, the carrying amount is derecognized
and any gain or loss is recognized in the statement of income.
The cost of property, plant and equipment is the purchase price,
including taxes/duties and costs directly linked to preparing the
asset ready for its intended use. Costs incurred after the asset
is in use, such as regular maintenance costs, are recognized in
the statement of income, while other costs that are expected to
provide future financial benefits are capitalized.
Depreciation is calculated using the straight-line method over
the useful life.
The depreciation period and method are assessed each year. A
residual value is estimated at each year-end, and changes to
the estimated residual value are recognized as a change in an
estimate.
Assets under construction are classified as non-current assets
and recognized at cost until the production or development
process is completed. Assets under construction are not depre-
ciated until the asset is taken into use.
2023
Amounts in EUR thousand Land Buildings
Plant and
equipment
Right-of-use
assets
Assets under
construction
1
Total
Accumulated cost 1 January 2023 324 12 418 23 140 5 523 6 078 47 483
Additions - - - 2 409 8 699 10 901
Transfers from assets under construction - 670 6 437 - (7 107) -
Disposals - (1) 14 (278) - (59)
Exchange differences 6 (70) (630) 122 (13) (586)
Closing balance as of 31 December 2023 330 13 017 28 960 7 775 7 657 57 739
Accumulated depreciation 1 January 2023 - 3 489 5 198 4 221 - 12 908
Depreciation - 648 2 110 1 770 - 4 528
Disposals - - (12) (278) - (290)
Exchange differences - 44 (371) 114 - (213)
Closing balance as of 31 December 2023 - 4 181 6 925 5 827 - 16 933
Net book value as of 31 December 2023 330 8 836 22 036 1 948 7 657 40 806
Estimated useful life 10-30 Years 5-10 years 2-5 years
Depreciation plan Straight-line Straight-line Straight-line
1
Depreciation starts when the asset is ready for the intended use. Land is not depreciated. Total addition of assets under construction is in 2023
reduced by 0,4 mEUR related to Grants (note7).
Fiven Annual Report 2023
Financial statements 53
2022
Amounts in EUR thousand Land Buildings
Plant and
equipment
Right of
use assets
Assets under
construction
1
Total
Accumulated cost 1 January 2022 307 11 526 18 234 6 053 3 564 39 684
Additions - - - 483 8 612 9 095
Transfers from assets under construction - 637 5 303 - (5 942) -
Disposals - - (5) (1 284) - (1 289)
Exchange differences 17 255 (392) 270 (156) (6)
Closing balance as of 31 December 2022 324 12 418 23 140 5 523 6 078 47 483
Accumulated depreciation 1 January 2022 - 2 663 3 677 3 312 - 9 651
Depreciation - 699 1 902 1 465 - 4 066
Disposals - - (27) (671) - (697)
Exchange differences - 126 (352) 115 - (110)
Closing balance as of 31 December 2022 - 3 489 5 198 4 221 - 12 908
Net book value as of 31 December 2022 324 8 929 17 942 1 301 6 078 34 575
Estimated useful life 10-30 Years 5-10 years 2-5 years
Depreciation plan Straight-line Straight-line Straight-line
Depreciation starts when the asset is ready for the intended use. Land is not depreciated. Total addition of assets under construction is in 2022
reduced by 1.3 mEUR related to Grants (note7).
Fiven Annual Report 2023
54 Financial statements
Note 16 Intangible assets
Intangible assets that have been acquired separately are
measured on initial recognition at cost. The costs of intangible
assets acquired through an acquisition are recognized at their
fair value at the date of acquisition. Following initial recognition,
intangible assets are carried at cost less any amortization and
accumulated impairment losses.
Internally generated intangible assets, excluding capitalized
development costs, are not capitalized but are expensed as
occurred.
The economic life is either finite or indefinite. Intangible assets
with a finite economic life are amortized over their economic
life and tested for impairment if there are any indications that
the intangible asset may be impaired. The amortization method
and period are assessed at least once a year. Changes to the
amortization method and/or period are accounted for as a
change in estimate.
Intangible assets with an indefinite economic life are tested for
impairment at least once a year, either individually or as a part
of a cash-generating unit. Intangible assets with an indefinite
economic life are not amortized. The economic life is assessed
annually with regard to whether the assumption of an indefinite
economic life can be justified. If it cannot, the change to a finite
economic life is made prospectively.
Technologies, patents and licenses
Technology purchased or acquired in a business combination
are recognized at fair value at the acquisition date.
Fiven technology intangible assets relate to four main
technologies:
• Metallurgy products technology
• Refractories products technology
• Abrasives products technology
• Customized product technology
The technologies have a finite useful life and are carried at cost
less accumulated amortization. Amortization is calculated using
the straight-line method over the expected life of the technolo-
gies. The expected useful life ranges from 5 to 20 years.
Customer relationships
Customer relationships purchased or acquired in a business
combination are recognized at fair value at the acquisition date.
The customer relations have a finite useful life and are carried at
cost less accumulated amortization. Amortization is calculated
using the straight-line method over the expected life of the
customer relationship.
Trademark
Fiven acquired the trademark “Sika”, and all Fiven products are
sold using this brand. The trademark has an indefinite useful life
and is not amortized, but is tested annually for impairment.
Software
Expenses linked to the purchase of new computer software
are capitalized as an intangible asset provided these expenses
do not form part of the hardware acquisition costs. Software is
normally depreciated on a straight-line basis over three years.
Costs incurred as a result of maintaining or upholding the future
utility of software is expensed unless the changes in the soft-
wareincrease the future economic benefits from the software.
Fiven Annual Report 2023
Financial statements 55
2023
Amounts in EUR thousand Goodwill Trademark Technology
Customer
relationships
Other
intangible
assets
Assets under
development Total
Accumulated cost 1 January 2023 5 390 6 848 6 154 3 295 1 436 1 462 24 586
Additions - - - - - 799 799
Transfers from assets under construction - - 29 - 137 (167) -
Disposals - - - - 11 - 11
Exchange differences - - (34) - (4) (55) (93)
Closing balance as of 31 December 2023
5 390
6 848
6 150
3 295
1 580
2 040
25 303
Accumulated amortization 1 January 2023 - - 2 879 1 594 832 - 5 305
Amortization - - 670 394 231 - 1 294
Disposals - - - - - - -
Exchange differences - - (5) - (2) - (7)
Closing balance as of 31 December 2023 - - 3 544 1 988 1 061 - 6 593
Net book value as of 31 December 2023 5 390 6 848 2 606 1 307 519 2 040 18 710
2022
Amounts in EUR thousand Goodwill Trademark Technology
Customer
relationships
Other
intangible
assets
Assets under
development Total
Accumulated cost 1 January 2022 5 390 6 848 6 158 3 295 1 188 1 131 24 010
Additions - - - - - 643 643
Transfers from assets under construction - - - - 225 (225) -
Disposals - - - - - - -
Exchange differences - - (4) - 23 (88) (68)
Closing balance as of 31 December 2022 5 390 6 848 6 154 3 295 1 436 1 462 24 586
Accumulated amortization 1 January 2022 - - 2 125 1 170 650 - 3 945
Amortization - - 757 424 189 - 1 371
Disposals - - - - (12) - (12)
Exchange differences - - (4) - 5 - 1
Closing balance as of 31 December 2022 - - 2 879 1 594 832 - 5 305
Net book value as of 31 December 2022 5 390 6 848 3 275 1 701 604 1 462 19 280
Estimated useful life Indefinite Indefinite 5-20 Years 5-20 Years 4-15 Years
Amortization plan
Straight-line Straight-line
Straight-
line
Fiven Annual Report 2023
56 Financial statements
Note 17 Impairment assessments
For impairment testing goodwill and other intangible assets acquired through business combinations and licenses with indefinite
useful lives are allocated to the Norway, Brazil and Belgium CGUs, which are also operating and reportable segments.
Carrying amount of goodwill and intangible assets allocated to each of the CGUs
2023
Fiven Norway Fiven Brazil Fiven Belgium
Total segment
reportingAmounts in EUR thousand
Goodwill 5 390 - - 5 390
Trademark 6 848 - - 6 848
Technology 2 606 - - 2 606
Customer relationships 758 434 116 1 307
Other intangible assets 2 314 247 - 2 559
As of 31 December, 2023 17 915 680 116 18 710
2022
Fiven Norway Fiven Brazil Fiven Belgium
Total segment
reportingAmounts in EUR thousand
Goodwill 5 390 - - 5 390
Trademark 6 848 - - 6 848
Technology 3 275 - - 3 275
Customer relationships 993 547 162 1 701
Other intangible assets 1 778 289 - 2 066
As of 31 December, 2022
18 284
836
162
19 280
Fiven Group has material non-current assets in the form of both tangible (property, plant and equipment) and intangible assets. The assets
are routinely monitored and if there are indications that the value of an asset is no longer recoverable, an impairment test is carried out.
Goodwill and intangible assets with an indefinite useful life are not amortized on a regular basis. These assets are therefore tested at least
annually for impairment. If any such indication exists, the recoverable amount of the asset or the Cash Generating Unit (CGU) including
goodwill, is estimated in order to determine the extent of the impairment loss. The recoverable amount is the higher of fair value less costs
of disposal and value in use.
Through the acquisition from Saint-Gobain Group in May 2019 Fiven group acquired the following intangible assets with an indefinite
useful life: Trademark 6 848 kEUR. Goodwill resulting from the acquisition amounted to 5 390 kEUR.
Judgements and estimates
Discounted cash flow models are applied to determine the value in use for the cash-generating units. The test process involves identifying
expected cash flows relating to the assets and discounting the cash flows to arrive at an estimated value. Future cash flows are based on
specific assumptions and plans adopted by the company. If the discounted cash flow is lower than the capital employed, the assets are
written down to the recoverable amount.
Key assumptions used in the calculation of value in use are growth rate, operating profit (loss) before depreciation and amortization
levels, capital expenditure and discount rates.
Growth rates: The expected growth rates are based on its current level experienced over the last few years, to long term-growth level in
the marked in which the Group operates.
Fiven Annual Report 2023
Financial statements 57
Key assumptions used in estimating value in use and determining the recoverable amount, are sales prices, development in commodity
prices, production costs and gross margin levels, and other relevant information. A forecast is developed for a period of 3.5 years with
projections thereafter.
Capital expenditure: Expected cash costs are forecasted based on the historical experience of management and the planned refur-
bishment expenditure. A normalized capital expenditure is assumed on a long run. Estimated capital expenditure do not include capital
expenditure that significantly enhance the current performance, as such effects generally are not included in the cash flow projections.
Discount rates: The rate of return is calculated using the Weighted Average Cost of Capital (WACC) method, reflecting specific risks relat-
ing to the relevant segments and the countries in which they operate. The cost of equity and debt are weighted to reflect the company’s
optimal capital structure. The WACC is a post-tax measure.
Growth WACC
Selected key assumptions used 2023 2022 2023 2022
Fiven Norge 1.5% 1.4% 7.8% 7.6%
Fiven Brazil 2.0% 2.0% 10.7% 11.8%
Fiven Belgium 0.5% 0.5% 9.0% 8.4%
The pre-tax discount rates for each of Norway, Brazil and Belgium CGUs in
2023 are 10,0% (9.8%), 16,2% (17.9%) and 14,2% (11.3%) respectively.
Impairment – test results and conclusion
The impairment testing was conducted in Q2 2023. In addition, the Group has assessed if there are any indications of impairment as
of 31 December 2023.
No indications of impairment were detected.
In Q4 2022 Fiven Norge temporarily stopped all furnaces in Norway for crude production and launched the implementation of a gas
cleaning system for additional 2 furnace groups. During 2023 Fiven has completed the gas cleaning project and the result of this
project and the requirements from the existing emission permits have been addressed when assessing whether an impairment
trigger exist. Based on the implementations performed and current license, Fiven has not identified any impairment triggers.
Sensitivity of estimated cash flows
An increase of 10 percent in WACC will not result in an impairment for Fiven.
A change of long-term growth rate down to 0 percent, and 25 percent reduction in operating profit (loss) before depreciation and
amortization level will not result in a material impairment for Fiven.
The directors and management have considered and assessed reasonably possible changes for other key assumptions and have not
identified any instances that could cause the carrying amount of the CGUs to exceed their recoverable amount.
Fiven Annual Report 2023
58 Financial statements
Note 18 Other receivables
Non-current Current
Amounts in EUR thousand 31 Dec 2023 31 Dec 2022 31 Dec 2023 31 Dec 2022
Grants receivables (note 7) - - 1 002 2 403
VAT receivables - - 6 833 5 490
Other receivables - - 4 413 733
Total other receivables - - 12 249 8 626
Non-current Current
Amounts in EUR thousand 31 Dec 2023 31 Dec 2022 31 Dec 2023 31 Dec 2022
Prepayments 18 - 783 734
Total prepayments 18 - 783 734
Non-current Current
Amounts in EUR thousand 31 Dec 2023 31 Dec 2022 31 Dec 2023 31 Dec 2022
Power contract derivative - 10 173 1 288 17 915
Other assets 293 204 44 62
Total other financial assets 293 10 378 1 332 17 976
See also Note 23 Financial assets and liabilities.
Note 19 Inventories
Inventories are recognized at the lower of cost and net realizable value, which is typically net selling price. The net selling price is the
estimated selling price in the case of ordinary operations minus the estimated completion, marketing and distribution costs. The cost
is arrived at using the first-in, first-out (FIFO) allocation method and includes the costs incurred in acquiring the goods and the costs
of bringing the goods to their current state and location. In-house produced goods include variable costs and fixed costs that can be
allocated based on normal capacity utilization.
31 Dec 2023 31 Dec 2022
Amounts in EUR thousand Cost price Provision Book value Cost price Provision Book value
Raw materials and spare parts 16 859 (250) 16 609 26 068 (5 065) 21 004
Semi-finished products 17 764 (550) 17 213 18 052 (408) 17 644
Finished products 13 874 - 13 874 10 806 - 10 806
Allowance inventory
Total Inventories 48 497 (801) 47 696 54 926 (5 472) 49 454
This year's change in provision for impairment of inventory, a gain of 4 672 kEUR (kEUR -5140), is recognized as a part of raw
materials and energy cost.
Fiven Annual Report 2023
Financial statements 59
Note 20 Trade receivables
Trade receivables are initially recognised at transaction price, which in most cases corresponds to their nominal amount. The carrying
amount is subsequently measured at nominal amount less any provision for expected credit losses. For more information see
disclosure 23.
TRADE RECEIVABLES AGING BASED ON DUE DATE
31 Dec 2023 31 Dec 2022
Amounts in EUR thousand Gross Provision Carrying value Gross Provision Carrying value
Not due 16 552 - 16 552 21 322 - 21 322
Overdue 1 to 30 days 3 195 - 3 195 6 359 (40) 6 319
Overdue 31 to 60 days 389 - 389 307 (3) 304
Overdue 61 to 90 days 208 - 208 540 (481) 58
Over 90 days 553 (408) 144 - - -
Total trade receivables 20 897 (408) 20 488 28 527 (524) 28 003
Fiven has entered into a non- recourse factoring agreement
currently covering Fiven Norge AS and Fiven Belgium with
Factofrance being the factoring company. The total maximum
financing amount under this agreement is 15 mEUR.
The agreement permits Fiven companies to sell receivables and
receive funding for up to 90 percent of the sold receivables
to Factofrance. There are several criteria that must be met to
qualify for status ‘eligible receivable’ enabling Fiven to sell the
receivable. Under the factoring agreement Fiven is obliged to
insure all relevant transferred receivables.
In the agreement the factor agrees to bear the credit risk for
approved receivables. As a result, the factor shall not be entitled
to exercise any recourse against the Fiven entities by reason of
a payment default of a Fiven customer for which a receivable
has been sold to the factor.
There are still some exceptions applying where the non-re-
course principle will not apply. These circumstances include
receivables being approved, but where they prove not to be
fundable, and instances linked to credit insurance where Fiven
has certain obligations to fulfill. The non-recourse will not
apply if it proves that Fiven has made faulty deliveries. Still, the
overriding principal is that receivables are sold without recourse.
So far there have been no events of the factor sending back
receivables to Fiven for any default to non-recourse require-
ment has occurred.
The receivables are derecognized from Fiven statement of
financial position when the customer has paid to Factofrance.
The below tables give an overview of Fiven Group trade receiva-
bles at 31 December.
Amounts in EUR thousand 31 Dec 2023 31 Dec 2022
Total gross trade receivables 20 897 28 527
Transferred to Facto France 8 800 9 534
Fiven Brazil trade receivables 12 071 17 968
Other receivables not transferred to Facto France 26 1 025
Total trade receivables 20 897 28 527
8 301 kEUR of the 8 880 kEUR transferred to Factofrance was funded at 31 December 2023, compared to 6 140 kEUR of the 9 534
kEUR in 2022.
Fiven Annual Report 2023
60 Financial statements
Note 21 Cash and cash equivalents
Cash includes cash in hand and at bank. Cash equivalents are short-term liquid investments that can be immediately converted into
a known amount of cash and have a maximum term to maturity of three months.
Amounts in EUR thousand 31 Dec 2023 31 Dec 2022
Cash and bankdeposits (unrestrickted) 33 042 18 687
Restricted cash and bank deposits 339 194
Total cash and cash equivalents
33 382
18 881
Restricted cash relates to bank deposits in favor of the Norwegian Government Environment Agency and employee withholding tax.
Note 22 Interest bearing liabilities
Interest-bearing liabilities are initially recognised at fair value of the amount required to settle the associated obligation, net of
prepaid costs directly attributable to the liability. See disclosure 23 for more information.
Carrying amount
Amounts in EUR thousand Interest rate Maturity date 31 Dec 2023 31 Dec 2022
Secured
Senior secured floating rate bond EURIBOR 3M+6,7% 11 Dec 26 108 593
Senior secured floating rate bond EURIBOR 3M+6,85% 21 Jun 24 69 146
Factoring financing 3% p.a 8 301 6 140
Export financing Averag. 4,8% p.a 8 046 8 070
Obligations under leases (IFRS 16)
2 065
1 436
Total secured interest- bearing liabilities 127 004 84 793
Current interest bearing debt
(17 399)
(15 169)
Total non-current interest bearing-liabilities 109 606 69 624
Fiven Annual Report 2023
Financial statements 61
Senior secured floating rate bond loan
On 11 December 2023 (First Issue Date) Fiven completed
a mEUR 170 Senior Secured Sustainability-Linked Floating
Rate Bond. The bonds carry an interest of EURIBOR + 6.7%.
The interest is settled on a quarterly basis. The initial nominal
amount of each initial bond is EUR 1 000. The maximum total
nominal amount of the initial bonds is mEUR 110. The prior bond
loan of mEUR 70 was redeemed on 21 December 2023 resulting
in payment of a call option of kEUR 479,5. In accordance with
the new bond agreement Fiven paid a dividend of mEUR 38 in
December 2023.
In 2022 as a part of the amended and restated version of the
Bondholder agreement at that time - Section “14-2 Restricted
Payments” letter (d) - Fiven ASA was permitted to pay dividend
on its shares and/or repay Shareholder Loans in the period
between Dec 5, 2022 and Dec 31, 2022 limited to cash exceeding
mEUR 18 on December 31, 2022. Fiven ASA repaid the share-
holder loan including accrued interest in full, and distributed a
dividend of kEUR 2.813 in the period before December 31, 2022.
The covenants for the new bond are as following
Provided that the incurrence test is met, the issuer may, at one
or several occasions, issue subsequent bonds. During the term
of the bond Fiven shall ensure that the leverage ratio is equal to
or less than:
(a) 4.25:1 for the period from 11 December 2023 to (and
including) the date falling one (1) year after the 11
December 2023;
(b) 4.00:1 for the period from (but excluding) the date falling
one year after the 11 December 2023 to (and including) the
date falling two years after 11 December 2023; and
(c) 3.75:1 for the period from (and excluding) the date falling
two years after 11 December 2023 to (and including) 11
December 2026 (the Final Maturity Date).
The Incurrence Test is met, if:
(a) the Leverage Ratio is equal to or less than:
(i) 3.00:1 for the period from the First Issue Date to (and
including) the date falling eighteen (18) months after the First
Issue Date; and
(ii) 2.75:1 for the period from (but excluding) the date
falling eighteen (18) months after the First Issue Date to
(and including) the Final Maturity Date; and
(b) no Event of Default is continuing or would occur upon the
incurrence or payment (as applicable).
Leverage ratio is the ratio of net interest-bearing debt to EBITDA.
The descriptions of elements being included and excluded from
the traditional EBITDA and net interest-bearing debt for covenant
calculation is described in the bond agreement.
The Issuer and any Group Company may at any time, subject to
applicable law, and at any price purchase Bonds. Bonds held by the
Issuer, or any Group Company may at the Issuer's or such Group
Company's discretion be retained or sold, but not cancelled.
The Issuer shall redeem all, but not only some, of the outstanding
Bonds in full on the 11 December 2026 (Final Maturity Date) with
an amount per Bond equal to the Nominal Amount together with
any applicable Sustainability-Linked Redemption Premium on the
Redemption Date and accrued but unpaid Interest. If the Final
Maturity Date is not a Business Day, then the redemption shall occur
on the first following Business Day.
The applicable Sustainability-Linked Redemption Premium shall
be equal to:
(a) the Maximum Sustainability-Linked Redemption Premium;
less (b) one third (1/3) of the Maximum Sustainability-Linked
Redemption Premium (rounded down to two (2) decimals) for
each KPI where the Issuer meets the Sustainability Performance
Target for such KPI on the Target Observation Date.
The Maximum Sustainability-Linked Redemption Premium is
0.50 percent.
Target Observation Date means thirty days prior to (a) 11
December 2026 (the Final Maturity Date), or (b) such earlier date
when the Bonds are redeemed in full.
Sustainability Performance Action Plan means a plan setting
out the means by which the Issuer intents to achieve its targets
reducing by 2025 (a) CO2 emissions (relating to KPI 1) by 9.00
percent, (b) SO2 emissions (related to KPI 2) by 15.00 percent,
and (c) water withdrawal (relating to KPI 3) by 10.00 percent in
each case compared to 2019, and as further described in the
Sustainability-Linked Bond Framework.
The complete plan will not be made public but will be subjected
to review by the External Reviewer (DNV GL) in accordance
with the Sustainability Performance Action Plan Review. The
review will be conducted on the latest available version of the
Sustainability Performance Action Plan at the time, recognizing
that the Sustainability Performance Action Plan will be updated
as and when necessary.
The new bond is continued under the previous Sustainability-
Linked Bond Framework. Sustainability-Linked Bond Framework
means the framework adopted in June 2021 establishing the
Group’s KPI’s and Sustainability Performance Targets in line with
ICMA (International Capital Markets Association) Sustainability-
Linked Bond Principles.
Fiven Annual Report 2023
62 Financial statements
The Issuer may redeem all, but not only some, of the
outstanding Bonds in full:
(i) any time from and including 11 December 2023 to, but
excluding, the First Call Date (date falling eighteen months
after 11 December 2023) at an amount per Bond equal to
103.35 per cent. of the Nominal Amount plus any applica-
ble Sustainability-Linked Redemption Premium and the
remaining interest payments to, but excluding, the First
Call Date, up to and including the First Call Date together
with accrued but unpaid Interest;
(ii) any time from and including the First Call Date (date falling
eighteen months after 11 December 2023) to, but exclud-
ing, the first Business Day falling twenty-four months after
11 December 2023 at an amount per Bond equal to 103.35
per cent. of the Nominal Amount plus any applicable
Sustainability-Linked Redemption Premium, together with
accrued but unpaid Interest;
(iii) any time from and including the first Business Day falling
twenty-four months after 11 December 2023 to, but
excluding, the first Business Day falling thirty months after
the 11 December 2023 at an amount per Bond equal to
102.01 per cent. of the Nominal Amount plus any applicable
Sustainability-Linked Redemption Premium, together with
accrued but unpaid Interest;
(iv) any time from and including the first Business Day falling
thirty months after the 11 December 2023 to, but exclud-
ing, the first Business Day falling thirty-three months after
the 11 December 2023 at an amount per Bond equal to
100.67 per cent. of the Nominal Amount plus any applica-
ble Sustainability-Linked Redemption Premium, together
with accrued but unpaid Interest; and
(v) any time from and including the first Business Day falling
thirty-three months after the 11 December 2023 to, but
excluding, the Final Maturity Date (11 December 2026) at
an amount per Bond equal to 100.000 per cent. of the
Nominal Amount plus any applicable Sustainability-Linked
Redemption Premium, together with accrued but unpaid
Interest.
Redemption shall be made by the Issuer giving not less than
fifteen Business Days' notice to the Bondholders and the Agent.
Any such notice is irrevocable but may, at the Issuer's discre-
tion, contain one or more conditions precedent. Upon expiry
of such notice and the fulfillment of the condition’s precedent
(if any), the Issuer is bound to redeem the Bonds in full at the
applicable amounts.
Upon the occurrence of a Change of Control Event, Listing
Failure Event or a Delisting Event, each Bondholder shall have
the right to request that all, or some only, of its Bonds be repur-
chased at a price per Bond equal to 101 per cent. of the Nominal
Amount together with any applicable Sustainability-Linked
Redemption Premium on the Redemption Date and accrued but
unpaid Interest, during a period of forty-five days following a
notice from the Issuer of the Change of Control Event, Listing
Failure Event or Delisting Event.
The bond loan agreement is available at: https://www.fiven.
com/company-information/investor-relations/reports/
Un-secured shareholder loan
The un-secured shareholder loan was repaid in full on 6
December 2022.
Factoring financing
On 5 June 2019 Fiven entered into a master non-recourse
factoring agreement with Factofrance. Each seller (Fiven
Belgium and Fiven Norge) has entered into a credit insurance
amendment agreement under which the factor benefits from
the relevant credit insurance policy in respect of the relevant
transferred receivables.
At any time during the purchase period the factor agrees to
purchase eligible receivables owned by the debtor up to a
maximum amount determined by an approval limit relevant to
Fiven Belgium and Fiven Norge, respectively.
Leasing liabilities
Lease liabilities are effectively secured as the rights to the
leased assets recognized in the financial statements revert to
the lessor in the event of default.
Export financing
Fiven has an unsecured export credit facility covering export
orders for Fiven Brazil to finance cost of production. The financ-
ing takes place upon presentation of the orders, and credit lines
are through Bradesco Bank and Santander Bank. Interest is paid
upon repayment of the financing which normally takes place
180 days after drawing on the facility.
Pledge of assets and guarantees
The bond loan agreement is based on a negative pledge and
Fiven ASA (Bond issuer) and Group entities can only to a limited
extent pledge its assets to secure its other liabilities.
Fiven ASA and Group entities shall not provide, prolong or renew
any permitted security as defined by the bond unless otherwise
stated in the bond document.
Fiven Annual Report 2023
Financial statements 63
MATURITY OF INTEREST-BEARING LIABILITIES AS OF 31 DECEMBER 2023
Amounts in EUR thousand 2024 2025 2026 2027 2028 2029+ Total
Senior securd floting rate bond - - 110 000 - - - 110 000
Estimated bond intrest 11 892 11 846 8 893 - - - 32 631
Factoring financing 8 301 - - - - - 8 301
Export financing 8 046 - - - - - 8 046
Total interest-bearing liabilities 28 238 11 846 118 893 - - - 158 978
Yearly interest payable on Bond loan is estimated to be 11 846 kEUR at current interest level. Total interest payable from December 31
2023 to final maturity date (December 11 2026) is estimated to 32 631 kEUR.
For lease liabilities, see note 12.
MATURITY OF INTEREST-BEARING LIABILITIES AS OF 31 DECEMBER 2022
Amounts in EUR thousand 2023 2024 2025 2026 2027 2028+ Total
Senior securd floting rate bond - 70 000 - - - - 70 000
Estimated bond intrest 6 326 3 172 - - - - 9 497
Factoring financing 6 140 - - - - - 6 140
Export financing 8 070 - - - - - 8 070
Total interest-bearing liabilities 20 536 73 172 - - - - 93 708
For lease liabilities, see note 12.
Fiven Annual Report 2023
64 Financial statements
MOVEMENTS IN INTEREST-BEARING LIABILITIES 2023
Cash flows Non-cash effects
Amounts in EUR thousand
1 Jan 2022
Cash
flows in
Cash
flows out
Other
changes
(fees and
interest
expences)
Foreign
exchange
movement
Net new
leases Accruals
31 Dec 2022
Senior secured floating bond 6.7 % - 110 000 (1 407) - - - - 108 593
Senior secured floating bond 6.85 % 69 146 - (78 287) 8 287 - - 854 -
Factoring
1
6 140 1 707 - 460 (6) - - 8 301
Export financing
1
8 070 - (421) 535 (139) - - 8 046
Lease liabilities 1 436 - (1 806) 220 13 2 202 - 2 065
Total liabilities from financing activities
84 793 111 707 (81 921) 9 502 (133) 2 202 854 127 005
1
Cash in/outflows Factoring and Export financing is shown net.
MOVEMENTS IN INTEREST-BEARING LIABILITIES 2022
Cash flows Non-cash effects
Amounts in EUR thousand
1 Jan 2022
Cash
flows in
Cash
flows out
Other
changes
(fees and
interest
expences)
Foreign
exchange
movement
Net new
leases Accruals
31 Dec 2022
Senior secured floating bond 6.85 % 68 946 - (7 123) 7 563 - - (240) 69 146
Shareholders loan 22 717 - (24 187) 1 470 - - - -
Factoring
1
7 803 - (1 636) 286 (312) - - 6 140
Export financing
1
4 806 - (503) 277 3 490 - - 8 070
Lease liabilities 2 978 - (1 461) 198 185 (464) - 1 436
Total liabilities from financing activities
107 250
-
(34 911)
9 795
3 363
(464)
(240)
84 793
Fiven Annual Report 2023
Financial statements 65
Note 23 Financial assets and liabilities
Financial assets
On initial recognition, a financial asset is classified as measured
at amortized cost, fair value through OCI or fair value through
profit or loss. The classification depends on the group’s business
model for managing the financial assets and the contractual
terms of the cash flows.
Financial assets are not reclassified subsequent to their initial
recognition unless the group changes its business model for
managing financial assets.
The Group classified its financial assets in two categories:
• Financial assets at amortized cost
• Financial assets at fair value through profit or loss
The Group measures financial assets at amortized cost if both of
the following conditions are met:
• The financial asset is held within a business model with the
objective to hold financial assets in order to collect contrac-
tual cash flows, and
• The contractual terms of the financial asset give rise on spec-
ified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding
Financial assets at amortized cost are subsequently measured
using the effective interest rate (EIR) method and are subject
to impairment assessment. Gains and losses are recognized
in profit or loss when the asset is derecognized, modified or
impaired.
The Group’s financial assets at amortized cost include receiv-
ables and other short-term deposits. Trade receivables that do
not contain a significant financing component are measured at
the transaction price determined under IFRS 15 Revenue from
contracts with customers.
Regular way purchases and sales of financial assets are recog-
nized on trade date, being the date on which the group commits
to purchase or sell the asset. Financial assets are derecognized
when the rights to receive cash flows from the financial assets
have expired or have been transferred and the group has trans-
ferred substantially all the risks and rewards of ownership.
Financial assets at fair value through profit or loss
Derivatives are initially recognized at fair value at the date when
the derivative contracts are entered into. Transaction costs that
are directly attributable to the acquisition of financial assets
or liabilities at fair value through profit or loss, are recognized
immediately in the statement of profit or loss. Subsequently
the derivatives are remeasured to their fair value at the end of
each reporting period. The resulting gain or loss is recognized
in the statement of profit or loss immediately. Derivatives that
relate to operating items are recognized in other items in the
profit or loss. Currency derivatives are used as an economic
hedge, but are not designated as hedging instruments for hedge
accounting under IFRS 9, and are recognized in finance income
or expense.
Impairment of financial assets
The Group recognizes an allowance for expected credit losses
(ECLs) for all debt instruments not held at fair value through
profit or loss.
For trade receivables, the Group applies a simplified approach in
calculating ECLs. Therefore, the Group does not track changes
in credit risk, but instead recognizes a loss allowance based on
lifetime ECLs at each reporting date.
Derecognition of financial assets
A financial asset (or, where applicable, a part of a financial
asset or part of a group of similar financial assets) is primarily
derecognized (i.e., removed from the Group’s consolidated
statement of financial position) when:
• The rights to receive cash flows from the asset have expired, or
• The Group has transferred its rights to receive cash flows
from the asset or has assumed an obligation to pay the
received cash flows in full without material delay to a third
party under a ‘pass-through’ arrangement; and either
a. the Group has transferred substantially all the risks and
rewards of the asset, or
b. the Group has neither transferred nor retained sub-
stantially all the risks and rewards of the asset, but has
transferred control of the asset
Financial liabilities
Financial liabilities are classified, at initial recognition, as loans
and borrowings, payables, or as derivatives designated as
hedging instruments in an effective hedge, or as hedging
instruments not qualifying for hedge accounting, as appropriate.
Derivatives are recognized initially at fair value. Loans, borrow-
ings and payables are recognized at fair value net of directly
attributable transaction costs.
Derivatives are financial liabilities when the fair value is negative,
they are accounted for similarly as derivatives as assets.
Fiven Annual Report 2023
66 Financial statements
Loans, borrowings and payables
After initial recognition, interest-bearing loans and borrow-
ings are subsequently measured at amortized cost using the
Effective Interest rate (EIR) method. Gains and losses are
recognized in profit or loss when the liabilities are derecognized
as well as through the EIR amortization process.
Amortized cost is calculated by taking into account any discount
or premium on acquisition and fees or costs that are an integral
part of the EIR. The EIR amortization is included as finance costs
in the statement of profit or loss.
Payables are measured at their nominal amount when the effect
of discounting is not material.
Derecognition of financial liabilities
A financial liability is derecognized when the obligation under
the liability is discharged or cancelled or expires. When an
existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange
or modification is treated as the de-recognition of the original
liability and the recognition of a new liability. The difference in
the respective carrying amounts is recognized in the statement
of profit or loss.
Categories Fair value measurement using
31 Dec 2023
Amounts in EUR thousand
Financial
instruments
at fair value
through
profit or loss
Financial
instruments
at fair value
through OCI
Financial
instruments
at amortised
cost Total
Quoted
prices
in active
markets
(Level 1)
Significant
observable
inputs
(Level 2)
Significant
un-
observable
inputs
(Level 3)
Total
instruments
measured at
fair value
Assets
Derivatives
Foreign exchange
forward contracts
44 - - 44 - 44 - 44
Commodity contracts in
scope of IFRS 9
1 288 - - 1 288 1 288 - - 1 288
Debt instruments
Trade receivables - - 20 488 20 488 - - - -
Cash and cash
equivalents
- - 33 382 33 382 - - - -
Other receivables - - 12 249 12 249 - - - -
Other non-current
assets
- - 293 293 - - - -
Total Financial assets 1 332 - 66 412 67 744 1 288 44 - 1 332
Liabilities
Derivatives
Foreign exchange
forward contracts
83 - - 83 - 83 - 83
Interest bearing loans
Bond loan - - 108 593 108 593 - - - -
Other interest bearing
loans
- - 16 346 16 346 - - - -
Other financial
liabilities
Trade and other payables - - 33 578 33 578 - - - -
IFRS 16 Leasing liabilities - - 2 065 2 065 - - - -
Total financial
liabilities 83 - 160 582 160 665 - 83 - 83
Fiven Annual Report 2023
Financial statements 67
Categories Fair value measurement using
31 Dec 2022
Amounts in EUR thousand
Financial
instruments
at fair value
through
profit or loss
Financial
instruments
at fair value
through OCI
Financial
instruments
at amortised
cost Total
Quoted
prices
in active
markets
(Level 1)
Significant
observable
inputs
(Level 2)
Significant
un-
observable
inputs
(Level 3)
Total
instruments
measured at
fair value
Assets
Derivatives  
Foreign exchange
forward contracts
62 - - 62 - 62 - 62
Commodity contracts in
scope of IFRS 9
28 088 - - 28 088 28 088 - - 28 088
Debt instruments
Trade receivables - - 28 003 28 003 - - - -
Cash and cash
equivalents
- - 18 881 18 881 - - - -
Other receivables - - 8 626 8 626 - - - -
Other non-current
assets
- - 204 204 - - - -
Total Financial assets
28 150
-
55 714
83 864
28 088
62
-
28 150
Liabilities
Derivatives
Foreign exchange
forward contracts
84 - - 84 - 84 - 84
Interest bearing loans
Bond loan - - 69 146 69 146 - - - -
Other interest bearing
loans
- - 14 211 14 211 - - - -
Other financial
liabilities
Trade and other payables - - 34 084 34 084 - - - -
IFRS 16 Leasing liabilities - - 1 436 1 436 - - - -
Total financial
liabilities 84 - 118 876 118 960 - 84 - 84
Fair value of financial assets and financial liabilities are measured using different levels of input.
• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date.
• Level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly
or indirectly.
• Level 3 inputs are unobservable inputs for the asset or liability
Fiven’s financial assets and liabilities are classified as financial instruments at amortized cost, except for derivatives.
Fiven Annual Report 2023
68 Financial statements
Derivatives
Power contracts
Non-financial commodity contracts where the relevant com-
modity is readily convertible to cash and where the contracts
are not for own use, fall within the scope of IFRS 9 Financial
instruments - recognition and measurement.
Fiven Norge’s current power contracts have two elements to the
agreement, one being the sale of power and the other to hedge
the fluctuation of the price. The two elements have distinct sep-
arate purposes, and do not form a single contract. The contract
is settled in net cash.
Such contracts are therefore measured at fair value through
profit or loss and classified as derivatives.
The full fair value of a derivative is classified as “Other non-cur-
rent assets or ”Other non-current liabilities“ if the remaining
maturity of the derivative is more than 12 months and, as ”Other
current financial assets“ or ”Other current liabilities", if the
maturity of the derivative is less than 12 months.
The fair value estimation of the power contracts (CfD derivative)
has been arrived at by applying a level 1 valuation methodology
which inputs are quoted prices (unadjusted) in active marked,
being the spot price in the Norwegian power marked (NASDAQ
OMX). The current contacts are for the period until end 2024.
EFFECTS OF POWER DERIVATIVES
Amounts in EUR thousand 2023 2022
Opening Balance power derivatives 28 088 5 699
Changes in unrealised value of power derivatives (other gains and losses) (26 800) 22 388
Closing balance power derivatives 1 288 28 088
Effects before tax of Power derivatives in statement of income: 2023 2022
Realized derivatives recognized as other income (volume not used) 1 218 15 141
Changes in unrealised value of power derivatives (other gains and losses) (26 800) 22 388
Foreign exchange forward contracts
The foreign exchange forward contracts in Brazil are used as hedging instruments for revenues in USD and EURO. The forward
contracts are measured at fair value.
Fiven Annual Report 2023
Financial statements 69
DETAILS OF CURRENCY EXCHANGE CONTRACTS 31 DECEMBER 2023
Purchase
Currency
Purchase
Thousand
Sale
Currency
Sale
Thousand
Type of Instrument
Currency
Deal rate Due Date
Fair Value
TEUR
Notional
Amount
TEUR
BRL 1 110 EURO 200 Non Deliverable Foward 5.55 25 Jan 2024 6 215
BRL 1 094 EURO 200 Non Deliverable Foward 5.47 8 Feb 2024 (3) 209
BRL 813 EURO 150 Non Deliverable Foward 5.42 20 Feb 2024 - 154
BRL 1 096 EURO 200 Non Deliverable Foward 5.48 28 Feb 2024 (2) 209
BRL 1 001 USD 200 Non Deliverable Foward 5.01 25 Jan 2024 5 185
BRL 1 039 USD 200 Non Deliverable Foward 5.19 26 Jan 2024 (12) 199
BRL 780 USD 150 Non Deliverable Foward 5.20 8 Feb 2024 (9) 149
BRL 1 280 USD 250 Non Deliverable Foward 5.12 20 Feb 2024 (11) 242
BRL 781 USD 150 Non Deliverable Foward 5.21 28 Feb 2024 (9) 150
BRL 652 USD 129 Non Deliverable Foward 5.07 1 Apr 2024 (4) 121
9 646 (39) 1 833
Fiven Annual Report 2023
70 Financial statements
Note 24 Provisions
A provision is recognized when the Group has an obligation (legal or self-imposed) as a result of a previous event, it is probable (more
likely than not) that a financial settlement will take place as a result of this obligation and the size of the amount can be measured
reliably. If the effect is considerable, the provision is calculated by discounting estimated future cash flows using a discount rate
before tax that reflects the market’s pricing of the time value of money and, if relevant, risks specifically linked to the obligation.
Restructuring provisions
Restructuring provisions are recognized when the Group has approved a detailed, formal restructuring plan and the restructuring has
either started or been publicly announced.
Amounts in EUR thousand Site renovation
Environmental
obligations Other provisions
Total provisions
2023
Total provisions
2022
Opening balance 239 190 1 499 1 929 586
Additional provision recognised 2 204 2 204 1 323
Used during the year (92) (92)
Provision reversal (174) (1 327) (1 501)
Exchange rate differences 12 (17) (27) (31) 19
Closing balance 252 - 2 257 2 509 1 928
Non-current liability 393 1 522
Current liability 2 116 406
Closing balance
2 509
1 928
The increase in non-current other provisions of KEUR 2 024 mainly consist of a provision for an ominous contract which will be settled
in Q1 2024.
The site renovation provision 252 kEUR in 2023 (239 kEUR in 2022) refers to estimated future expenses to recover the land impacted by
the sand mine in Brazil.
Fiven Annual Report 2023
Financial statements 71
Note 25 Financial risk
Fiven operates in an international and cyclical industry which
exposes the business to a variety of financial risks. The financial
risks are related to (1) market risk consisting of risk factors to
currency, price and interest rates, (2) counterpart credit risk
related to the financial ability of customers and lastly, (3) liquid-
ity risk related to the risk that Fiven will encounter difficulties in
meeting financial obligations.
1 Market Risks
1.1 Currency Risks
Fiven has revenues and operating costs denominated in various
currencies. The largest trading currencies are EUR and USD, but
also BRL, and GBP are currencies in which Fiven trade. Fiven is
using natural hedge to the extent possible by matching inflows
and raw materials purchases to be denominated in the same
currencies as well as entering into forward foreign exchange
contracts to cover surplus currency risks.
Fiven Norway has virtually no sales in local currency, and USD
and EUR are the dominant ones. Raw material contracts like
pet coke, sand, energy and imported crude silicon carbide
accounting for the majority of costs of goods sold, are signed
in corresponding currencies to reduce impact on risk from cur-
rency inflows. Fiven Belgium external sales are in EUR. Import
of crude silicon carbide from Venezuela is USD based. Fiven
Brazil has mainly a currency inflow exposure as raw materials
purchases are paid in local currency. In 2023 approximately 48
percent (46 percent 2022) of total sales were in foreign cur-
rency, and the risk were covered through hedging instruments.
The parent company Fiven ASA has EUR as functional currency
as main in- and outflows are EUR denominated.
Currency exposure affecting the consolidated statement of
income:
The table below shows assets and liabilities denominated in for-
eign currencies different from the entities functional currency,
where changes in currency rates will affect profit and loss. The
table includes notional amount of foreign exchange contracts.
31 December 2023
Amounts in EUR thousand USD EUR BRL NOK Other Total 2023 Total 2022
Other non current (financial) assets - - - 13 - 13 13 496
Receivables 6 336 7 447 18 913 9 700 106 42 502 41 112
Other current (financial ) assets - 1 288 - 3 7 1 298 17 991
Cash and cash equivalents 1 153 2 187 - 191 46 3 577 4 764
Total monetary assets 7 489 10 922 18 913 9 907 158 47 390 77 362
Interest bearing liabilities 4 725 28 290 - - - 33 016 20 441
Other liabilities 2 009 - - 800 - 2 809 1 047
Trade payables 351 4 198 - 71 100 4 720 7 257
Total monetary liabilities 7 086 32 488 - 871 100 40 545 28 746
Derivatives notional value 1 046 787 1 833 11 228
Net currency exposure financial position (643) (22 353) 18 913 9 036 59 5 012 37 388
Fiven Annual Report 2023
72 Financial statements
31 December 2022
Amounts in EUR thousand USD EUR BRL NOK Other Total 2022
Other non current (financial) assets - 13 482 - 14 - 13 496
Receivables 8 572 10 203 7 865 14 272 200 41 112
Other current (financial ) assets - 17 914 - 70 7 17 991
Cash and cash equivalents 3 178 1 317 - 222 47 4 764
Total monetary assets 11 750 42 916 7 865 14 577 254 77 362
Interest bearing liabilities 7 185 5 651 - 7 365 240 20 441
Other liabilities 681 - - 348 18 1 047
Trade payables 982 4 173 - 2 076 27 7 257
Total monetary liabilities 8 848 9 823 - 9 790 285 28 746
Derivatives notional value 4 016 7 212 11 228
Net currency exposure financial position
(1 114)
25 881
7 865
4 787
(30)
37 388
Amounts in EUR thousand USD EUR BRL NOK Other Total
Sensitivity 2023
10 % appreciation (64) (2 235) 1 891 904 6 501
10 % depreciation 64 2 235 (1 891) (904) (6) (501)
Sensitivity 2022:
10 % appreciation (111) 2 588 787 479 (3) 3 739
10 % depreciation 111 (2 588) (787) (479) 3 (3 739)
The sensitivity related to financial assets and liabilities potential
impact on Fiven's profit or loss, is based on a strengthening /
weakening of main currencies by 10 percent against the func-
tional currencies of the subsidiaries. If all the main currencies
weakened against the functional currencies, the profit before
tax would decrease by 492 kEUR.
1.2. Price Risk
Fiven is exposed to fluctuation in the market prices in the oper-
ating business related to individual contracts and products. The
way Fiven mitigates the price risk is through innovation, product
differentiation and through improved cost competitiveness.
Fiven Annual Report 2023
Financial statements 73
1.3. Commodity prices
Sand, power and pet coke are the main raw materials in the manufacturing of Silicon Carbide and account for a significant portion of
the total production costs. Whilst there is a forward market for energy enabling Fiven to secure future needs with contracts signed
today, pet coke and sand are purchased in the spot markets as no forward market exists. This means Fiven is exposed to fluctuation
in the commodity markets for these raw materials. Fiven tries to keep multiple source options to avoid being overly depended on any
particular supplier.
Amounts in EUR thousand Power Petcoke Sand Total
Sensitivity 2023
10% price increase (1 848) (2 418) (238) (4 504)
10% price decrease 1 848 2 418 238 4 504
Sensitivity 2022
10% price increase (3 880) (3 872) (370) (8 122)
10% price decrease 3 880 3 872 370 8 122
The sensitivity related to commodity prices impact on Fiven's profit or loss, is based on an increase/decrease of sand, power and
petcoke by 10 percent compared to actual costs of 2023. If all the commodity prices had increased by 10%, the profit before tax
would have decrease by 4 504 kEUR.
1.4. Interest rate risk
Fiven’s interest risks arises from interest bearing liabilities
granted by external financial institutions and owners. Fiven lia-
bilities are drawn in EUR and USD (export credit facility in Brazil).
Fiven financing have three pillars; a bond, a factoring facility and
an export credit facility. All four facilities have in common that
they have floating interest, and hence are exposed to fluctu-
ating interest rates. With floating interest rates, the group will
normally be in a position to benefit from lower interest rates in
an economic downturn, but a floating rate policy will also leave
the group exposed to higher future interest rates. An increase/
decrease of interest rates by 1 point per annum would have
impacted the Group’s financials expenses negatively/positively
by 681 kEUR in 2023.
2. Trading partner risk
Credit risk is the risk of financial losses to the group if a cus-
tomer or counterparty fails to meet contractual obligations. For
Fiven this arises mainly to trade receivables. Trade receivables
are generally secured by credit insurance from a reputable credit
insurance company. Credit limits for each customer and overdue
receivables are monitored and built into the ERP systems and
for customers where credit insurance cannot be obtained, other
methods are generally used to secure the sales proceeds, such
as prepayment or documentary credit. There is a non-recourse
factoring agreement for Fiven Norge and Fiven Belgium enabling
the two entities to sell up to 90 percent of the total ‘allowable
receivables’ to the Factofrance. For further details see note 20.
3. Liquidity Risk
Liquidity risk is the risk that the group will encounter difficulty
in meeting the obligations associated with its financial liabilities.
Fiven is exposed to liquidity risk related to its operations and
financing. Fiven’s cash flow will fluctuate due to economic
conditions and financial performance. In order to assess its
future operational liquidity risk, short-term and long-term cash
flow forecasts are provided. The short-term forecast is updated
each week, and the long-term cash flow projection is updated
as part of the planning cycles.
Fiven has a non-recourse factoring facility which allows a
funding of up to 90 percent of the total receivables transferred
to the factoring company for a total amount not exceeding 15
mEUR for entities in Fiven Norge and Fiven Belgium. As per 31
December 2023, the utilization of the factoring facility was 8,3
mEUR.
In Brazil, Fiven has an export credit facility based on confirmed
export order intake to finance cost of production. The credit
facility is covering up to 174 days, and at the end of December
2023 the total of the facility was 8.0 MEUR.
The bond has maturity date 11 December 2026. Trade payables
are payable in 2024. The factoring liabilities at 31 December
2023 matures in Q1 2024 and the export credit facility in Brazil
in 1H 2024. The bond contains financial covenants further
described in note 22 Interest Bearing liabilities. The group is in
compliance with all covenants as of the reporting date.
Fiven Annual Report 2023
74 Financial statements
Note 26 Capital management
Fiven is managing its financing and liquidity position to support
Fiven’s growth strategy. Furthermore, the capital management
objectives also include reduction of liquidity risk and to ensure
that the company can meet its financial obligations at all times
and to optimize the capital structure to reduce cost of capital.
During 2023, Fiven refinanced its operations through a new
bond of 110 mEUR expiring in December 2026. Fiven has now
secured long term financing for the coming years. Since the
beginning, Fiven has maintained a strong focus on liquidity
monitoring risks and uncertainty in this regard about market
impact and subsequently about the company’s ability to meet
its financial commitments. The results demonstrate that Fiven
has been able to manage the situation well through a healthy
cash position and a reduction of net-interest bearing debt
(including the repayment in full of the unsured shareholder loan
in full).
Looking forward and to support the company’s growth strategy,
it is important to optimize the availability of the external financial
sources. The new bond structure allows a total maximum
nominal amount of 170 mEUR. In February 2024 the new Fiven
bond was listed on NASDAQ in Stockholm, and the bond is also
traded at the Frankfurt Stock Exchange.
Bondholders under the initial bonds are senior ranked and there
will be no dividend paid to Fiven shareholders or servicing of any
loan in the period 9 April 2024 to prior to the final maturity date
of the initial bond.
The bond agreement includes covenants prescribing a max-
imum net interest bearing debt to EBITDA (defined in bond
agreement) ratio should not exceed 4.25 (first year), 4.0 (second
year) and 3.75 (third year). The descriptions of elements being
included and excluded from the traditional EBITDA and net
interest-bearing debt for covenant calculation is described in
the bond agreement. The financial flexibility is also maintained
through the existing factoring facility and an export credit
facility subject to regulations described in the Bond agreement.
The utilization of these facilities can potentially be extended
depending on the growth pace of the business.
Fiven Annual Report 2023
Financial statements 75
Note 27 Equity
SHARE CAPITAL AND OTHER PAID IN CAPITAL
Number of shares Nominal value per share
Total share
capital
Other paid in
capital
EUR NOK EUR EUR
As of 1 January 2023 1 000 101 1 000 101 376 5 575 350
Contribution of equity - - - - -
As of 31 December 2023 1 000 101 1 000 101 376 5 575 350
As of 1 January 2022 1 000 101 1 000 101 376 5 575 350
Contribution of equity - - - - -
As of 31 December 2022 1 000 101 1 000 101 376 5 575 350
100 percent of the shares are owned by Tosca Intermediate Holdings Sàrl, a company owned by OpenGate Capital, a private equity
firm. There is one class of shares, and each share carries one vote and has equal rights on distribution of income and capital.
In connection with refinancing of bond loan in December 2023, Fiven distributed a dividend of kEUR 38 000 to owners.
In agreement with the amended terms and conditions in the Bond Agreement of 15 June 2021 (December 5, 2022) a dividend of
kEUR 2 813 was distributed to owners December 6, 2022.
Fiven Annual Report 2023
76 Financial statements
Note 28 Trade and other payables
Amounts in EUR thousand 31 Dec 2023 31 Dec 2022
Trade payable 20 754 26 235
Accrued expenses 6 150 2 399
Total trade payables 26 905 28 634
Amounts in EUR thousand 31 Dec 2023 31 Dec 2022
Other account payables 613 1 296
Accrued personnel and social expenses 4 034 5 142
Tax payable (other than income tax) 53 220
Accrued intrest payable 652 173
Accrued other payables 138 117
Total Other payables 5 490 6 948
Fiven Annual Report 2023
Financial statements 77
Note 29 Transactions and balances with related parties
1 Jan-31 Dec 23 31 Dec 2023
Amounts
in EUR thousand Trade sales
Trade
purchases
Sale of
services
Purchase of
services
Interest
income
Interest
expense
Receivables
from
Payables
to
Open Gate Capital - - - 1 047 - - - -
Total - - - 1 047 - - - -
1 Jan–31 Dec 22 31 Dec 2022
Amounts
in EUR thousand Trade sales
Trade
purchases
Sale of
services
Purchase of
services
Interest
income
Interest
expense
Receivables
from
Payables
to
Fiven Venezuelan
entities
- 11 870 - - - - - -
Open Gate Capital - - - 1 000 - - - -
Tosca Intermediate
Holding Sarl
- - - - - 1 470 - -
Total - 11 870 - 1 000 - 1 470 - -
In December 2022 the Shareholder loan was repaid in full. Fiven Norge AS’s Investment in Venezuelan entities was disposed in 2022,
see note 4.
Fiven ASA is owned 100 percent by Tosca Intermediate Holdings Sàrl which is controlled by Open Gate Capital Fund II. Transactions
and balances between Fiven ASA and its consolidated subsidiaries have been eliminated in the consolidated financial statements.
Fiven Annual Report 2023
78 Financial statements
Note 30 Financial impact of climate related risk
Fiven has implemented an ESG roadmap summarizing the
initiatives within 4 years. During 2023 we have restructured
our ESG strategy to be more accessible and understandable
for every stakeholder. Therefore, we have included health and
safety under the Social dimension in ESG.
The ESG roadmap progress report is presented to the Board of
Directors every quarter by the Chief Sustainability officer (CSO).
All projects are closely followed by the CSO. To measure and
control the ESG roadmap progress the CSO issues twice a year
the scorecard where environmental, social, and business ethics
KPI’s are addressed.
As a consequence of the climate change, authorities have
imposed stricter requirements to operate in the silicon carbide
industry, and this also impacts the Fiven Group. These require-
ments are related to emission in the production. Through the
usage of water and carbon source raw materials in production,
the Group, is exposed to transition risk where economies are
becoming less carbon intensive. Therefore, the Group set up
an environmental roadmap in 2020 with the objectives to
reduce emissions to air, water usage and non- recovered waste.
Different milestones were fixed for 2025 and 2030 and the
ultimate target for the Group is to become a net zero emission
company by 2050. Group investments to support the environ-
mental roadmap represent 47% of its total investment.
The production of silicon carbide production in Norway is subject
to limitation on emissions of certain substances defined by the
Norwegian Environmental Agency (NEA). Non-compliance can
result in administrative fines and required stoppage in produc-
tion in Norway. To mitigate the risk of non-compliance, Fiven
has been developing its own gas cleaning systems as there is no
technology readily available in the market. In 2023 Fiven Norge
has completed the covering of 6 of 8 furnacegroups.
The risk of non-compliance can be offset by reducing produc-
tion in Norway and importing silicon carbide from Fiven facilities
in Brazil instead. For the processing activities the requirements
from NEA are not foreseen as a risk.
In 2021, Fiven entered a Sustainability link Bond financing
meaning the Group’s financing was linked to the improvement
of environmental indicators over the next years. The new bond
of 2023 has continued the sustainability framework set in
2021. These indicators are CO2, SO2 emissions (expressed in
tons/tons of crude produced), volume of water withdrawals (in
absolute value). The objective is to reduce these emissions by
respectively 9%, 15 % and 10 % by 2025 which is in line with
our environmental 2025 milestone. A redemption premium of
a maximum of 0.50 per cent will be due in case of KPI’s target
failure at the exit of the sustainability linked bond. Following the
above, the maximum exposure of Fiven in the event failing to
comply with the objectives is EUR 350 thousand. As of Today,
Fiven believes the objectives are achievable within the time
frame set
As for other climate related risks, the Group’s production
locations are located in geographical areas where the physical
climate change related risk could be considered as low.
Note 31 Events after the reporting period
There are no material events having taken place after the balance sheet date.
Fiven Annual Report 2023
Financial statements 79
Fiven ASA
financial
statements
Statement of income
Amounts in EUR thousand Note 2023 2022
1 January to 31 December
Revenue 3 5 325 5 832
Total revenue 5 325 5 832
Employee benefit expenses 4, 5 (874) (1 116)
Other operating expenses 6 (4 154) (4 788)
Total operating expenses (5 028) (5 904)
Operating profit (loss) 297 (72)
Finance income 7 45 722 40 428
Finance expense 7 (9 422) (9 274)
Other financial items (net) (101) (882)
Net finance income (expense) 36 199 30 272
Net income (loss) before income taxes 36 495 30 200
Income tax expense 8 (927) (2 247)
Net income (loss) 35 568 27 952
Net income (loss) attributable to:
Equity holders of the parent 9 35 568 27 952
Total net income (loss) attributed 35 568 27 952
Financial statements 81
Fiven Annual Report 2023
Fiven Annual Report 2023
Amounts in EUR thousand Note 31 Dec 2023 31 Dec 2022
ASSETS
Investments in subsidiaries 10 77 635 77 635
Other financial assets 11 13 14
Deferred tax asset 8 - 437
Total non-current assets 77 648 78 086
Trade receivables 3 158 1 936
Other receivables 3, 12 43 988 22 234
Prepayments 118 130
Cash and cash equivalents 13 11 480 5 899
Total current assets 55 744 30 198
TOTAL ASSETS 133 392 108 284
Statement of financial position
82 Financial statements
Fiven Annual Report 2023
Amounts in EUR thousand Note 31 Dec 2023 31 Dec 2022
EQUITY AND LIABILITIES
Share capital 9 101 101
Other paid in capital 9 - -
Retained earnings 9 22 740 25 172
Total equity 22 842 25 274
Bond loan 12 108 593 69 146
Interest bearing liabilities 12 - -
Other liabilities and provision 3 - 10 560
Total non-current liabilities 108 593 79 706
Trade payables 3 501 618
Other payables 1 065 577
Income tax payable 8 391 2 109
Total current liabilities 1 957 3 305
Total liabilities 110 550 83 011
TOTAL EQUITY AND LIABILITIES 133 392 108 284
Financial statements 83
The Board of Directors of Fiven ASA - Oslo, 19 March 2024
Falk Ast Betty Lunøe Åsheim
Chairman Member of the Board
Helén Borchgrevink Stein Erik Ommundsen
Member of the Board General Manager
Fiven Annual Report 2023
Statement of cash flows
Amounts in EUR thousand Note 2023 2022
1 January to 31 December
Net income (loss) 35 568 27 952
Corporate income tax 8 927 2 247
Net income (loss) before income taxes 36 495 30 200
Adjustments to reconcile net income (loss) before income tax to net cash flows:
Corporate income tax paid (2 208) (1 050)
Net finance expenses 7 (36 199) (30 272)
Received paid dividend and group contribution
1
22 965 19 005
Changes in trade receivables and trade payables 1 661 (2 272)
Changes in other receivables, prepayments, and other payables 27 (89)
Other changes (13) (2)
Cash flows from operating activities 22 729 15 520
Repayments of loan by related parties 3 (10 506) 8 420
Cash flows from investing activities (10 506) 8 420
Proceeds from issues of bonds 12 110 000 -
Repayment of Bond loan 12 (70 000) -
Repayment of shareholder loan 12 (21 977)
Proceeds from other interest bearing liablities 12 5 591
Interest and placement fee paid 12 (8 642) (9 514)
Dividend to shareholders 9 (38 000) (2 813)
Cash flows from financing activities (6 642) (28 714)
Net increase in cash and cash equivalents 5 581 (4 774)
Cash and cash equivalents as of 31 December 2023 5 899 10 673
Cash and cash equivalents as of 31 December 2023 11 480 5 899
1 The comparison figures for 2022 haves been changed to reflect payment of dividends from subsidiaries as operational activities for Fiven ASA.
84 Financial statements
Notes to Fiven ASA
financial statements
86 Financial statements
Note 1 General information and basis of preparation 87
Note 2 Significant accounting policies 87
Note 3 Intercompany items 89
Note 4 Employee benefit expenses 89
Note 5 Employee benefit obligations (pensions) 89
Note 6 Other operating expenses 90
Note 7 Finance income and expenses 90
Note 8 Taxes 91
Note 9 Share capital and statement of changes in equity 92
Note 10 Investments in subsidiaries 92
Note 11 Financial risk 93
Note 12 Interest bearing receivables and liabilities 94
Note 13 Cash and cash equivalents 96
Note 14 Events after the reporting period 96
Fiven Annual Report 2023
Note 1 General information and basis of preparation
Fiven ASA is a limited liability company domiciled in Norway, and
the parent company of the Fiven Group. Fiven is a global leader
in silicon carbide (“Sic”), a material used in a variety of indus-
trial applications. Fiven ASA is owned 100 per cent by Tosca
Intermediate Holdings Sàrl, a private limited liability company
incorporated in Luxembourg, the ultimate parent of which is
OpenGate Capital.
The financial statements for Fiven ASA (hereafter Fiven),
including notes, for the year ended
31 December 2023 were approved by the Board of Directors of
Fiven ASA on 19 March 2024.
Note 2 Significant accounting policies
The financial statements have been prepared in accordance
with the Norwegian Accounting Act and generally accepted
accounting principles in Norway. The accounts are prepared
based on a going concern assumption.
The functional currency of Fiven ASA is Euro.
Use of estimates
The preparation of financial statements in compliance with the
Accounting Act requires the use of estimates. The application of
the company's accounting principles also require management
to apply judgements. Areas which to a great extent contain
such judgements, a high degree of complexity, or areas in which
assumptions and estimates are significant for the financial
statements, are described in the notes.
Foreign currency translation
Transactions in foreign currencies are translated at the
exchange rate applicable at the date of the transaction.
Monetary items in a foreign currency are translated to NOK using
the exchange rate applicable on the balance sheet date. Foreign
exchange differences arising on translation are recognized in
the income statement as they occur.
Revenues
Income from sale of services is recognized at fair value of the
consideration, net after deduction of VAT, returns, discounts
and reductions. Sales are taken to income when the company
has delivered its services to the customer and there are no
unsatisfied commitments which may influence the customer's
acceptance of the service.
Classification of balance sheet items
Assets intended for long term ownership or use have been
classified as fixed assets. Assets relating to the trading cycle
have been classified as current assets. Other receivables are
classified as current assets if they are to be repaid within one
year after the transaction date. Similar criteria apply to liabilities.
The first year's instalment on long term liabilities and long term
receivables are, however, not classified as short term liabilities
and current assets.
Investments in other companies
Except for short term investments in listed shares, the cost
method is applied to investments in other companies. The
cost price is increased when funds are added through capital
increases or when group contributions are made to subsidiaries.
Dividends/Group contribution received are initially taken to
finance income. Dividends/Group contribution exceeding the
portion of retained earnings after the acquisition are reflected as
a reduction in cost. Dividend/group contribution from subsid-
iaries are reflected in the same year as the subsidiary makes a
provision for the amount. Dividends from other companies are
reflected as financial income when it has been approved.
Fiven Annual Report 2023
Financial statements 87
Receivables
Trade receivables are recognized in the balance sheet after pro-
vision for bad debts. Trade receivables in 2023 and 2022 were
all internal receivables related to management fee. The bad
debts provision is made on basis of an individual assessment
of each debtor and an additional provision is made for other
debtors to cover expected losses. Significant financial problems
at the customers, the likelihood that the customer will become
bankrupt or experience financial restructuring and postpone-
ments and insufficient payments, are considered indicators that
the debtors should be written down.
Other receivables, both current and long term, are recognized
at the lower of nominal and net realizable value. Net realizable
value is the present value of estimated future payments.
When the effect of a write down is insignificant for accounting
purposes this is, however, not carried out. Provisions for bad
debts are valued the same way as for trade debtors. Most of
Other Trade receivables in 2023 and 2022 were internal current
receivables. See also note 13.
Assets and liabilities in foreign currencies are valued at the
exchange rate on the balance sheet date. Exchange gains and
losses relating to sales and purchases in foreign currencies are
recognized as operating income and expenses.
Liabilities
Interest-bearing liabilities are initially recognized at cost. After
initial recognition, such financial liabilities are measured at
amortized costs using the effective interest method. Transaction
costs are taken into account when calculating amortized cost.
Trade payables are carried at cost.
Pensions
The company has a defined contribution plan. With a defined
contribution plan the company pays contributions to an
insurance company. After the contribution has been made the
company has no further commitment to pay. The contribution
is recognized as payroll expenses. Prepaid contributions are
reflected as an asset (pension fund) to the degree the contribu-
tion can be refunded or will reduce future payments.
Taxes
The tax charge in the income statement includes both payable
taxes for the period and changes in deferred tax. Deferred tax
is calculated at relevant tax rates on the basis of the temporary
differences which exist between accounting and tax values,
and any carryforward losses for tax purposes at the year-end.
Tax enhancing or tax reducing temporary differences, which
are reversed or may be reversed in the same period, have been
eliminated. The disclosure of deferred tax benefits on net tax
reducing differences which have not been eliminated, and
carryforward losses, is based on estimated future earnings.
Deferred tax and tax benefits which may be shown in the
balance sheet are presented net.
Group contribution received is booked as finance income. If
received group contribution exceeds retained earnings under
Fiven’s ownership, it is booked as a reduction of investments in
subsidiaries. Tax related to received group contribution is booked
in profit and loss. Deferred tax is reflected at nominal value.
Cash flow statement
The cash flow statement is presented using the indirect method.
Cash and cash equivalents includes cash, bank deposits and
other short term, highly liquid investments with maturities of
three months or less.
Fiven Annual Report 2023
88 Financial statements
Note 3 Intercompany items
Fiven Norge AS
Materiaux
Ceramiques SA
Carbeto de Silício
Sika Brasil Ltda Fiven GmbH
Fiven North
America Inc Total
Amounts in EUR thousand 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
Trade receivables 102 91 11 1 808 41 36 3 1 - - 158 1 936
Other receivables 24 970 14 267 - - 18 913 7 865 - - 107 97 43 990 22 229
Total assets 25 072 14 358 11 1 808 18 954 7 901 3 1 107 97 44 147 24 165
Non current liabilities - 7 365 - - - 3 195 - - - - - 10 560
Trade payables - - - - 7 - 122 - 42 70 170 70
Total liabilities - 7 365 - - 7 3 195 122 - 42 70 170 10 630
Revenue 2 091 2 032 646 1 197 2 588 2 602 - - - - 5 325 5 832
Dividend/Group
Contribution
23 896 14 267 - - 20 638 25 712 - - - - 44 534 39 979
Management fee expense - - - - - -
(1 689)
(1 693)
(552)
(587)
(2 241)
(2 279)
Other income 923 435 165 - - - - - 14 9 1 102 445
Financial expense
(584)
(54)
-
(109)
(24)
(75)
- - - -
(608)
(237)
Total income statement 26 326 16 681 812 1 088 23 201 28 239
(1 689)
(1 693)
(538)
(578)
48 112 43 739
Note 4 Employee benefit expenses
Amounts in EUR thousand 1 Jan-31 Dec 23 1 Jan-31 Dec 22
Salaries incl. bonuses 700 797
Social security cost 126 120
Defined contribution pension cost (note 5) 26 30
Other personnel related cost 22 169
Total employee benefit expenses
874
1 116
Average number of full time equivalents 4 4
For further information concerning remuneration to management see note 10 Management remuneration in the consolidated
financial statements.
Note 5 Employee benefit obligations (pensions)
Defined contribution plans
Defined contribution plans are the main pensions plan for Fiven ASA, where the contribution to each individual pension plan is 5 per
cent up 7.1G and 8 per cent between 7.1 and 12 G.
1G refers to the Norwegian national insurance scheme's basic amount, which was 118 620 NOK as of 1 May 2023.
The defined contribution plan covers all full-time employees. As of 31 December 2023, there were 4 members in the plan.
Contribution expensed amounted to 26,1 kEUR in 2023, (29.6 kEUR in 2022).
Fiven Annual Report 2023
Financial statements 89
Note 6 Other operating expenses
Amounts in EUR thousand 1 Jan-31 Dec 23 1 Jan-31 Dec 22
Other operating expenses
Lease expenses 65 73
IT related expenses 83 290
Travel, Insurance, meetings and office expenses 155 173
Consultancy fees and external personnel expenses 402 738
Audit expenses 147 140
Management fee 3 287 3 359
Other operating expenses 15 15
Total other operating expenses 4 154 4 788
Amounts in EUR thousand 1 Jan-31 Dec 23 1 Jan-31 Dec 22
Specification auditor's fee
Statutory audit (PWC) 115 121
Other assurance services (PWC) 32 19
Total 147 140
Note 7 Finance income and expenses
Amounts in EUR thousand 1 Jan-31 Dec 23 1 Jan-31 Dec 22
Finance income
Interest income intercompany 1 102 445
Dividends from subsidiaries 44 534 39 979
Other interest income 86 4
Total finance income 45 722 40 428
Amounts in EUR thousand 1 Jan-31 Dec 23 1 Jan-31 Dec 22
Finance expenses
Interest on debts and borrowings (8 333) (7 038)
Interest expense intercompany (608) (237)
Interest expenses other (1) (4)
Other financial expenses
1
(480) (1 995)
Total finance expenses (9 422) (9 274)
Other financial items (net)
Net foreign exchange gains (losses) (101) (882)
Other financial items (net) (101) (882)
Net Finance income (expenses) 36 199 30 272
1
480 kEUR relates to the call option premium for early redemption of the previous Bond loan with termination date (21 June 2024), correspondently
the 1 995 kEUR in 2022 relates to the consent fee paid to bondholders for the amendment to the terms and conditions in the Bond loan dated
December 5, 2022.
Fiven Annual Report 2023
90 Financial statements
Note 8 Taxes
Amounts in EUR thousand 1 Jan-31 Dec 23 1 Jan-31 Dec 22
Current tax expense (858) (2 109)
Previous year tax adjustment 269
214
Withholding tax (338) (789)
Changes in deferred tax -
437
Income tax (expense) benefit (927) (2 247)
RECONCILIATION OF TAX (EXPENSE) BENEFIT TO NOMINAL STATUTORY TAX RATE OF 22%
Amounts in EUR thousand 1 Jan-31 Dec 23 1 Jan-31 Dec 22
Net income (loss) before income taxes 36 495 30 200
Tax (expense) benefit at applicable tax rate (8 029) (6 644)
Tax effect of permanent differences exempted for tax 7 788 5 487
Non deductible expenses 70
Other deductible expenses
Changes in urecognisez deferred tax asset (1 212) (1 541)
Tax effect on interest deductions above tax limitations
Tax effect on translation differences exempt of tax 595 956
Tax effect on translation differences previously unrealized
Correction of previous years current tax 269 214
Other taxes, withholding tax (338) (789)
Income tax (expense) benefit for the year (927) (2 247)
DEFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES
Amounts in EUR thousand 1 Jan-31 Dec 23 1 Jan-31 Dec 22
Tax losses carried forward - -
Withholding tax expected to be credited - 437
Other non current / Interest cost subject to limitations 5 686 4 623
Net Deferred tax assets/(liabilities) 5 686 5 060
Unrecognized deferred tax asset, losses carried forward - -
Unrecognized deferred tax asset, withholding tax
Unrecognized deferred tax asset (5 686) (4 623)
Net Deferred tax assets/(liabilities) 31.12 - 437
Deferred tax assets of 5 686 kEUR in 2023 (4 623 kEUR in 2022) relate to Norwegian limitations to interest deductions on net interest
expenses. The interest subject to limitation must be utilized within ten years. Total deferred tax assets of 5 686 kEUR are not recognized
as at 31 December 2023 (31 Dec 2022: 4 623 kEUR were not recognised. The 437 kEUR consist of tax withholding carried forward).
Fiven Annual Report 2023
Financial statements 91
Note 9 Share capital and statement of changes in equity
The company has one class of shares. All shares come with full voting rights. The share capital is nominated in NOK. The nominal value
per share is 1 000 NOK.
Amounts in EUR thousand Share capital
Other paid in
capital
Retained Earnings
(accumulated
deficit) Total Equity
As of 1 January, 2023 101 - 25 172 25 274
Net income (loss) - - 35 568 35 568
Dividend to owners - - (38 000) (38 000)
As of 31 December, 2023 101 - 22 740 22 842
Amounts in EUR thousand Share capital
Other paid in
capital
Retained Earnings
(accumulated
deficit) Total Equity
As of 1 January, 2022 101 - 33 135
Net income (loss) - - 27 952 27 952
Dividend to owners (2 813) (2 813)
As of 31 December, 2022 101 - 25 172 25 274
Fiven ASA distribute an extraordinary dividend of EUR 38 000.00 per share, in total EUR 38 000 000.00 based on the Company's
audited interim balance sheet of 3 November 2023.
Fiven ASA distribute an extraordinary dividend of EUR 2 813.33 per share, in total EUR 2 813 330.54, based on the Company's audited
interim balance sheet of 31 October 2022.
Note 10 Investments in subsidiaries
Amounts in EUR thousand Location
Ownership
interest in % Total equity Result
Carrying
value
31 Dec 2023
Carrying
value
31 Dec 2022
Company
Fiven Norge AS Norway 100% 14 451 (9 603) 42 368 42 368
Fiven GmbH Germany 100% 88 6 29 29
Materiaux Ceramiques SA Belgium 100% 9 583 388 15 391 15 391
Carbeto de Silício Sika Brasil Ltda Brazil 100% 26 720 13 681 19 846 19 846
Fiven North America Inc US 100% 22 (2) - -
Total 77 635 77 635
Fiven Annual Report 2023
92 Financial statements
Note 11 Financial risk
Currency exposure affecting statement of income
Amounts are shown in functional currency (normally the local currency of the reporting entity).
The table below shows assets and liabilities denominated in foreign currencies different from the entities functional currency, where
changes in currency rates will affect profit or loss.
Amounts in EUR thousand 31 Dec 2023 31 Dec 2022
Currency NOK USD BRL SEK NOK USD BRL SEK
Other non current (financial) assets 13 - - - 14 - - -
Receivables 9 700 107 18 913 - 14 272 299 7 865 -
Other current (financial ) assets 3 - - - 70 - - 7
Cash and cash equivalents 191 - - 11 222 - - 14
Total monetary assets 9 907 107 18 913 11 14 577 299 7 865 21
Interest bearing liabilities 7 365 - - -
Trade payables 71 42 7 92 348 84 - 18
Other payables 800 - - - 2 076 - - -
Total monetary liabilities 871 42 7 92 9 790 84 - 18
Net currency exposure financial position 9 036 65 18 906 (82) 4 787 215 7 865 3
31 Dec currency rate
11.24
1.11
5.36
11.10
10.51
1.07
5.64
11.12
Fiven Annual Report 2023
Financial statements 93
Note 12 Interest bearing receivables and liabilities
Interest Total
Amounts in EUR thousand Termination Rate 2023 2022 2023 2022
Loan Fiven Norge AS (subs.) Dec 31, 2024 EURIBOR+6.7% 270 24 970
Loan Fiven Norge AS (subs.) Dec 31, 2023 EURIBOR+8.1% 653 435 14 267
Loan Fiven North America Inc (subs.) Jun 21, 2024 USDLIBOR+8.1% 14 9 107 97
Total current assets 25 077 14 364
Senior secured floating rate bond – 2026 Dec 11, 2026 EURIBOR+6.85% 652 108 593
Senior secured floating rate bond – 2021 Jun 21, 2024 EURIBOR+6.85% 7 681 5 568 69 146
Loan Tosca Intermediate Holdings Sàrl
1
Jun 22, 2024 EURIBOR+6.8914% - 1 470 - -
Loan Matreaux Ceramiques (subs.) Jun 22, 2024 EURIBOR+8.1% - 109 - -
Loan Fiven Norge AS (subs.) Dec 1, 2025 EURIBOR+6.85% 584 54 - 7 365
Loan Carbeto de Silício Sika Brasil Ltda (subs.) May 27, 2023 2.5% 24 75 - 3 195
Total non-current liabilities 108 593 79 706
1
The shareholder loan was repaid in full on 6 December 2022. As a part of the amended and restated version of the Bondholder agreement - Section
“14-2 Restricted Payments” letter (d) - Fiven ASA was permitted to pay dividend on its shares and/or repay Shareholder Loans in the period between
Dec 5, 2022 and Dec 31, 2022 limited to cash exceeding mEUR 18 on December 31, 2022. Fiven ASA repaid shareholder loan including accrued
interest in full, and distributed a dividend of kEUR 2.813 in the period before December 31, 2022
.
Senior secured floating rate bond loan
On 11 December 2023 (First Issue Date) Fiven completed a 170
mEUR Senior Secured Sustainability-Linked Floating Rate Bond.
The bonds carry an interest of EURIBOR + 6.7%. The interest is
settled on a quarterly basis. The initial nominal amount of each
initial bond is EUR 1 000. The maximum total nominal amount of
the initial bonds is 110 mEUR. The old bond loan were redeemed
on 21 December 2023.
The covenants for the new bond is as following:
Provided that the incurrence test is met, the issuer may, at one
or several occasions, issue subsequent bonds. During the term
of the bond Fiven shall ensure that the leverage ratio is equal to
or less than:
(a) 4.25:1 for the period from 11 December 2023 to (and
including) the date falling one (1) year after the 11
December 2023;
(b) 4.00:1 for the period from (but excluding) the date falling
one year after the 11 December 2023 to (and including) the
date falling two years after 11 December 2023; and
(c) 3.75:1 for the period from (and excluding) the date falling
two years after 11 December 2023 to (and including) 11
December 2026 (the Final Maturity Date).
The Incurrence Test is met, if:
(a) the Leverage Ratio is equal to or less than:
3.00:1 for the period from 11 December 2023 to (and
including) the date falling eighteen (18) months after 11
December 2023; and
2.75:1 for the period from (but excluding) the date falling
eighteen (18) months after 11 December 2023 to (and
including) the 11 December 2026 (Final Maturity Date); and
(b) no Event of Default is continuing or would occur upon the
incurrence or payment (as applicable).
Leverage ratio is the ratio of net interest-bearing debt to EBITDA.
The descriptions of elements being included and excluded from
the traditional EBITDA and net interest-bearing debt for covenant
calculation is described in the bond agreement.
The Issuer and any Group Company may at any time, subject to
applicable law, and at any price purchase Bonds. Bonds held by
the Issuer or any Group Company may at the Issuer's or such
Group Company's discretion be retained or sold, but not cancelled.
The Issuer shall redeem all, but not only some, of the outstand-
ing Bonds in full on the 11 December 2026 (Final Maturity Date)
with an amount per Bond equal to the Nominal Amount together
with any applicable Sustainability-Linked Redemption Premium
on the Redemption Date and accrued but unpaid Interest. If the
Final Maturity Date is not a Business Day, then the redemption
shall occur on the first following Business Day.
The applicable Sustainability-Linked Redemption Premium shall
be equal to:
(a) the Maximum Sustainability-Linked Redemption Premium;
less (b) one third (1/3) of the Maximum Sustainability-Linked
Redemption Premium (rounded down to two (2) decimals) for
each KPI where the Issuer meets the Sustainability Performance
Target for such KPI on the Target Observation Date.
Fiven Annual Report 2023
94 Financial statements
The Maximum Sustainability-Linked Redemption Premium is
0.50 percent.
Target Observation Date means thirty days prior to (a) 11
December 2026 (the Final Maturity Date), or (b) such earlier date
when the Bonds are redeemed in full.
Sustainability Performance Action Plan means a plan setting
out the means by which the Issuer intents to achieve its targets
reducing by 2025 (a) CO2 emissions (relating to KPI 1) by 9.00
percent, (b) SO2 emissions (related to KPI 2) by 15.00 percent,
and (c) water withdrawal (relating to KPI 3) by 10.00 percent in
each case compared to 2019, and as further described in the
Sustainability-Linked Bond Framework.
The complete plan will not be made public but will be subjected
to review by the External Reviewer (DNV GL) in accordance
with the Sustainability Performance Action Plan Review. The
review will be conducted on the latest available version of the
Sustainability Performance Action Plan at the time, recognizing
that the Sustainability Performance Action Plan will be updated
as and when necessary.
Sustainability-Linked Bond Framework means the frame-
work adopted in June 2021 establishing the Group’s KPI’s
and Sustainability Performance Targets in line with ICMA
(International Capital Markets Association) Sustainability-Linked
Bond Principles.
The Issuer may redeem all, but not only some, of the outstand-
ing Bonds in full:
(i) any time from and including 11 December 2023 to, but
excluding, the First Call Date (date falling eighteen months
after 11 December 2023) at an amount per Bond equal to
103.35 per cent. of the Nominal Amount plus any applica-
ble Sustainability-Linked Redemption Premium and the
remaining interest payments to, but excluding, the First
Call Date, up to and including the First Call Date together
with accrued but unpaid Interest;
(ii) any time from and including the First Call Date (date falling
eighteen months after 11 December 2023) to, but exclud-
ing, the first Business Day falling twenty-four months after
11 December 2023 at an amount per Bond equal to 103.35
per cent. of the Nominal Amount plus any applicable
Sustainability-Linked Redemption Premium, together with
accrued but unpaid Interest;
(iii) any time from and including the first Business Day falling
twenty-four months after 11 December 2023 to, but
excluding, the first Business Day falling thirty months after
the 11 December 2023 at an amount per Bond equal to
102.01 per cent. of the Nominal Amount plus any applicable
Sustainability-Linked Redemption Premium, together with
accrued but unpaid Interest;
(iv) any time from and including the first Business Day falling
thirty months after the 11 December 2023 to, but exclud-
ing, the first Business Day falling thirty-three months after
the 11 December 2023 at an amount per Bond equal to
100.67 per cent. of the Nominal Amount plus any applica-
ble Sustainability-Linked Redemption Premium, together
with accrued but unpaid Interest; and
(v) any time from and including the first Business Day falling
thirty-three months after the 11 December 2023 to, but
excluding, the Final Maturity Date (11 December 2026) at
an amount per Bond equal to 100.000 per cent. of the
Nominal Amount plus any applicable Sustainability-Linked
Redemption Premium, together with accrued but unpaid
Interest.
Redemption shall be made by the Issuer giving not less than
fifteen Business Days' notice to the Bondholders and the Agent.
Any such notice is irrevocable but may, at the Issuer's discre-
tion, contain one or more conditions precedent. Upon expiry
of such notice and the fulfillment of the conditions precedent
(if any), the Issuer is bound to redeem the Bonds in full at the
applicable amounts.
Upon the occurrence of a Change of Control Event, Listing
Failure Event or a Delisting Event, each Bondholder shall have
the right to request that all, or some only, of its Bonds be repur-
chased at a price per Bond equal to 101 per cent. of the Nominal
Amount together with any applicable Sustainability-Linked
Redemption Premium on the Redemption Date and accrued but
unpaid Interest, during a period of forty-five days following a
notice from the Issuer of the Change of Control Event, Listing
Failure Event or Delisting Event.
The bond loan agreement is based on a negative pledge and the
group can only to a limited extent pledge its assets to secure its
other liabilities.
The bond loan agreement is available at: https://www.fiven.
com/company-information/investor-relations/reports/
Un-secured shareholder loan
The un-secured shareholder loan was repaid in full on 6
December 2022. No shareholder loans in 2023.
Fiven Annual Report 2023
Financial statements 95
Note 13 Cash and cash equivalents
Amounts in EUR thousand 31 Dec 2023 31 Dec 2022
Cash and bank deposits (unrestricted) 11 415 5 829
Restricted bank deposits
1
65 70
Total cash and cash equivalents 11 480 5 899
1
Restricted cash is related to income tax withheld from employees' wages and paid directly to the government by the employer.
Note 14 Events after the reporting period
No events have occurred after the balance sheet date with material impact on the financial statements for 2023.
Fiven Annual Report 2023
96 Financial statements
Fiven Annual Report 2023
Financial statements 97
Auditor’s report
PricewaterhouseCoopers AS, Dronning Eufemias gate 71, Postboks 748 Sentrum, NO-0106 Oslo
T: 02316, org. no.: 987 009 713 MVA, www.pwc.no
Statsautoriserte revisorer, medlemmer av Den norske Revisorforening og autorisert regnskapsførerselskap
To the General Meeting of Fiven ASA
Independent Auditor’s Report
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Fiven ASA, which comprise:
● the financial statements of the parent company Fiven ASA (the Company), which comprise the
statement of financial position as at 31 December 2023, the statement of income and statement of
cash flows for the year then ended, and notes to the financial statements, including a summary of
significant accounting policies, and
● the consolidated financial statements of Fiven ASA and its subsidiaries (the Group), which
comprise the statement of financial position as at 31 December 2023, the statement of income,
statement of comprehensive income, statement of changes in equity and statement of cash flows
for the year then ended, and notes to the financial statements, including a summary of material
accounting policies.
In our opinion
● the financial statements comply with applicable statutory requirements,
● the financial statements give a true and fair view of the financial position of the Company as at 31
December 2023, and its financial performance and its cash flows for the year then ended in
accordance with the Norwegian Accounting Act and accounting standards and practices generally
accepted in Norway, and
● the consolidated financial statements give a true and fair view of the financial position of the Group
as at 31 December 2023, and its financial performance and its cash flows for the year then ended
in accordance with IFRS Accounting Standards as adopted by the EU.
Our opinion is consistent with our additional report to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Company and the Group as required by
relevant laws and regulations in Norway and the International Ethics Standards Board for Acco untants’
International Code of Ethics for Professional Accountants (including International Independence Standards)
(IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these
requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit Regulation
(537/2014) Article 5.1 have been provided.
We have been the auditor of the Company for five years from the election by the general meeting of the
shareholders on 15 October 2019 for the accounting year 2019.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the financial statements of the current period. These matters were addressed in the context of our
Fiven Annual Report 2023
98 Auditor’s report
2 / 5
audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
The Group’s business operations are largely the same as last year. Impairment assessment of goodwill and
other intangible assets carries the same characteristics and risks this year and has consequently continued
to be in our focus for the 2023 audit.
Key Audit Matters
How our audit addressed the Key Audit Matter
Impairment assessment of goodwill
and other intangible assets
The net book value of the Group’s
goodwill and other intangible assets
was EUR 5
390 thousand and EUR
13
320 thousand respectively at 31
December 2023.
We focused on impairment
assessment of goodwill and other
intangible assets because of the level
of mana
gement judgment applied in
making the assessment. The use of
judgment is mainly related to
assumptions, such as, discount rate
(WACC), future revenues from sales
of products, EBITDA ratios and capital
expenditures.
Further, a potential impairment charge
ma
y have a material impact on the
asset’s carrying value.
See notes 3 and 17 to the
consolidated financial statements
where the impairment model and key
assumptions are explained and
disclosed.
We obtained management’s impairment review. The review
incl
uded documentation of management’s identification of cash
generating units (CGU’s). We assessed and found identified
CGU’s to be appropriate.
We challenged key assumptions applied by management in the
cash flow forecasts incorporated into the impairment mo
del.
Specifically, we challenged future revenues, EBITDA ratios and
capital expenditures.
We tested the mathematical accuracy of cash flow models, and
assessed relevant data to historical financial data, future budget
approved by management and other obtai
nable market
information such as relevant benchmarks for growth estimates.
We evaluated the discount rate used by management by
comparing its composition to empirical data for future interest
rates, relevant risk premium and debt ratio. Key assumptions
use
d were benchmarked against external data and our own
internal data. We found the applied discount rate to be within a
range of reasonable outcomes.
We performed sensitivity analyses on key assumptions in the
impairment assessment and found the impairment assessment to
be sensitive to changes in WACC, further revenues and EBITDA
ratios. We compared our sensitivity analyses to the disclosure in
the notes.
During the course of our audit procedures, no significant
deviations were identified.
Finally, we consid
ered the adequacy of financial statements
disclosures and found them appropriate.
Other Information
The Board of Directors and the Managing Director (management) are responsible for the information in the
Board of Directors’ report and the other information accompanying the financial statements. The other
information comprises information in the annual report, but does not include the financial statements and
our auditor’s report thereon. Our opinion on the financial statements does not cover the information in the
Board of Directors’ report nor the other information accompanying the financial statements.
In connection with our audit of the financial statements, our responsibility is to read the Board of Directors’
report and the other information accompanying the financial statements. The purpose is to consider if there
is material inconsistency between the Board of Directors’ report and the other information accompanying
Fiven Annual Report 2023
Auditor’s report 99
3 / 5
the financial statements and the financial statements or our knowledge obtained in the audit, or whether the
Board of Directors’ report and the other information accompanying the financial statements otherwise
appears to be materially misstated. We are required to report if there is a material misstatement in the
Board of Directors’ report or the other information accompanying the financial statements. We have nothing
to report in this regard.
Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors’ report
● is consistent with the financial statements and
● contains the information required by applicable statutory requirements.
Our opinion on the Board of Dir ector’s report applies correspondingly to the statements on Corporate
Governance and Corporate Social Responsibility.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation of financial statements of the Company that give a true and
fair view in accordance with the Norwegian Accounting Act and accounting standards and practices
generally accepted in Norway, and for the preparation of the consolidated financial statements of the Group
that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU.
Management is responsible for such internal control as management determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s and the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern.
The financial statements of the Company use the going concern basis of accounting insofar as it is not likely
that the enterprise will cease operations. The consolidated financial statements of the Group use the going
concern basis of accounting unless management either intends to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial stateme nts as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
● identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error. We design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
● obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company's and the Group's internal control.
● evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
Fiven Annual Report 2023
100 Auditor’s report
4 / 5
● conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Company's and the Group's ability to continue
as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor's report. However, future events or conditions may
cause the Company and the Group to cease to continue as a going concern.
● evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events
in a manner that achieves a true and fair view.
● obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the group audit. We remain
solely responsible for our audit opinion.
We communicate with the Board of Directors regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the Audit Committee with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and where applicable, actions taken to
eliminate threats or safeguards applied.
From the matters communicated with the Board of Directors, we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
Report on Compliance with Requirement on European Single Electronic Format (ESEF)
Opinion
As part of the audit of the financial statements of Fiven ASA, we have performed an assurance engagement
to obtain reasonable assurance about whether the financial statements included in the annual report, with
the file name 549300Z4VK4GSH1X0129-2023-12-31-en.zip, have been prepared, in all material respects,
in compliance with the requirements of the Commission Delegated Regulation (EU) 2019/815 on the
European Single Electronic Format (ESEF Regulation) and regulation pursuant to Section 5-5 of the
Norwegian Securities Trading Act, which includes requirements related to the preparation of the annual
report in XHTML format, and iXBRL tagging of the consolidated financial statements.
In our opinion, the financial statements, included in the annual report, have been prepared, in all material
respects, in compliance with the ESEF regulation.
Management’s Responsibilities
Management is responsible for the preparation of the annual report in compliance with the ESEF regulation.
This responsibility comprises an adequate process and such internal control as management determines is
necessary.
Fiven Annual Report 2023
Auditor’s report 101
5 / 5
Auditor’s Responsibilities
For a description of the auditor’s responsibilities when performing an assurance engagement of the ESEF
reporting, see: https://revisorforeningen.no/revisjonsberetninger
Oslo, 19 March 2024
PricewaterhouseCoopers AS
Anders Ellefsen
State Authorised Public Accountant (Norway)
Fiven Annual Report 2023
102 Auditor’s report
Fiven Annual Report 2023
103
Appendix to Fiven 2023 Annual report -
Alternative Performance Measures (APMs)
An APM is defined as a financial measure of historical or future financial performance, financial position, or cash flows, other than a
financial measure defined or specified in the applicable financial reporting framework (IFRS). Fiven uses Adjusted EBITDA to measure
operating performance at the group and segment level.
In particularly management regards Adjusted EBITDA as relevant performance measures at segment level because intangible assets,
income tax and finance expenses/ finance income, are managed on a group basis.
The APMs presented herein are not measurements of performance under IFRS or other generally accepted accounting principles and
should not be considered as a substitute for measures of performance in accordance with IFRS. Because companies calculate the
APMs presented herein differently, Fiven’s presentation of these APMs may not be comparable to similarly titled measures used by
other companies.
Fiven’s financial APMs defined:
Adjusted EBITDA
Adjusted EBITDA shows the Group’s operating profit before Depreciation and amortization, before items that require special
explanation.
OIE include one-off and non-recurring operating expenses, but excludes operating income from excess power sales for 2023.
The Adjusted EBITDA is the Group`s key financial figure, internally and externally. The figure is used to identify and analyze the
Group’s operating profitability from normal operations and operating activities, excluding the effects from depreciation and
amortization.
Please note there is a discrepancy between the Adjusted EBITDA measure and the EBITDA (defined in the bond agreement) as per
Fiven’s bond terms (i.e., the one reported to the Bond Trustee), as the APM does not cap other non-recurring costs at 12.5% as does
the bond terms and it excludes the monitoring fee.
Fiven Annual Report 2023
104 Alternative Performance Measures