Statistics and accumulated accounts

Statistics and accumulated accounts (IFU)

The total number of IFU projects reached 616 at the end of 2007. Out of these IFU has exited from 415 projects. Success and profitability of IFU projects can only be evaluated in a long term perspective and – from IFU’s perspective – best after IFU’s exit. In the following, selected statistics and accounts shall be presented for the exited projects. Further, an analysis of the survival rate for all IFU projects is presented.

Internal rate of return (IRR) on exited projects

Total IRR on the 415 projects from which IFU has exited is 3.6%. The IRR on projects in Africa amounts to -3.8% against 9.0% in Asia and 3.4% in Latin America. The IRR on exited projects in Africa has steadily improved over the last four years. In 2004 the IRR for Africa was -9.6%. For projects in Europe (e.g. Turkey and Malta) the IRR is -0.3%. The latter figure, however, is based on a rather limited number of projects.

When related to size of partner, the highest IRR is achieved on projects where the Danish partner employs more than 300 people.

Related to size of project, the largest projects display the highest IRR. 

Accumulated accounts
The realised contribution from the 415 projects exited in IFU since 1967 shows that IFU received a total gross contribution from projects of DKK 695.1m. Share capital investments contributed DKK 554.0m, while loans and guarantees contributed DKK 154.0m.

The cash flow on these exited project activities shows that operating activities generated a positive net cash flow of DKK 822.9m, while investing activities generated a net cash flow of DKK (149.3)m.

Contribution from projects exited 1967-2007
	DKKm
	Rapport
Contribution from share capital investments
Dividends from projects	435,7
Contribution from divested share capital investments	118,3	554,0
Contribution from project loans and guarantees
Interest income and fees related to project loans and guarantees	588,8
Write off's and realised exchange rate adjustments, project loans	(243,3)
Write off's and realised exchange rate adjustment, interest and fee receivables	(191,5)	154,0
Other contribution from projects		(12,9)
GROSS CONTRIBUTION FROM PROJECTS		695,1

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Cash Flow from projects exited 1967-2007
		DKKm
		Rapport
Cash flow from operating activities
Dividends from projects received		420,0
Interest and fees from projects received		402,9
Net cash from operating activities		822,9
Cash flow from (to) investing activities
Received from sale of shares		1.733,7
Received from project loans		1.162,8
Paid-in share capital in projects		(1.613,6)
Disbursement of project loans		(1.432,2)
Net cash from (to) investing activities		(149,3)
NET CHANGE IN CASH		673,6
Transferred to active projects		22,6
Outstanding third party balances related to projects exited (net of value adjustments)
Receivables		1,2
Payables		(2,3)
		(1,1)
TOTAL CASH, TRANSFERRED TO ACTIVE PROJECTS
AND NET OUTSTANDING BALANCE		695,1

Project Survival
A survey of the survival rate for projects as a function of project age shows that about 79% of 571 projects are in operation 10 years after signing of the investment agreement. The analysis does not include 45 projects that were never implemented or implemented without IFU’s participation. The survival rates for large and medium-sized projects are generally higher than for smaller projects. After 10 years, about 87% of the larger projects are still in operation compared to about 73% of the smaller projects. For projects exited by IFU before the age of 10 and where the project was still in operation at the time of IFU's exit, it is assumed that this continues to be the case within the time frame of the analysis.