Statistics and accumulated accounts (IFU)
The total number of IFU projects reached 719 at the end of 2010. Out of these IFU had exited 492 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 will be presented for the exited projects.
Internal rate of return (IRR) on exited projects
Total IRR on the 492 projects from which IFU has exited since its establishment in 1968 is 4.2% distributed on 5.3% for share capital and 2.2% for loans (see diagram below). When looking at the 279 projects exited during the recent 10-year period, 2001-2010, a significantly positive development has taken place with an increase in the total IRR to 7.4%.
If the IRR is divided according to the size of IFU’s Danish partner there is a clear connection with the highest yield for projects with large Danish Partners. This is not surprising as larger companies generally can make more resources available for the projects, be it financial, managerial or otherwise. Worth noticing is, however, the large improvement for projects with medium-sized Danish partners exited in the past 10 years.
When it comes to geographic distribution, it is worth noticing that the largest improvement in IRR during the past 10 years compared to the entire period has been in Africa. For the whole period projects in Asia have performed the best.
Accumulated accounts
The realised contribution from the 492 projects exited in IFU since 1967 shows that IFU received a total gross contribution from projects of DKK 1,018.7m. Share capital investments contributed DKK 813.3m, while loans and guarantees contributed DKK 217.8m.
The cash flow on these exited project activities shows that operating activities generated a positive net cash flow of DKK 947.3m, while investing activities generated a positive net cash flow of DKK 48.3m.