Letter from the CEO
How can we create enduring value? And how do we leave clear footprints? These are questions that we ask ourselves every day at Ferd. Our vision is crucial to every judgment we make and every decision we take. We believe that there is a clear connection between value creation in the form of social results, climate and environmental improvements and absolute value creation. Making a contribution to sustainability is profitable, and this is also the case just in financial terms.
In a short time, we have experienced a pandemic, climate crisis, energy crisis and not least a devastating war in the middle of Europe. Russia’s invasion of Ukraine has radically changed the geopolitical situation, and the humanitarian crisis that has arisen is unacceptable, frightening and almost unbelievable that is happening in Europe. The war is a gloomy example of the fact that change is happening faster than ever and that the pace is constantly increasing. Other examples are technological transformation, acute climate change, major differences and social challenges, and new expectations to employers and the business community. These are universal changes that create challenges that must be solved.
We believe that there is a clear connection between value creation in the form of social results, climate and environmental improvements and absolute value creation. Making a contribution to sustainability is profitable, and this is also the case just in financial terms.
Rapid changes are also taking place at Ferd: In 2021 we carried out our first stock exchange listing, for Elopak, a company that we established back in 1957. Ferd Real Estate has set the bar high, and is committed to being a leading urban developer in the Oslo region, with the Marienlyst project as the foundation for this ambition. We have extended our involvement as an active owner to countries outside Norway, and we currently have active ownership interests in companies in Sweden, Denmark and England. We have invited many new companies into our portfolio, and have said farewell to some companies that are now better suited to a different owner. Ferd’s value adjusted equity has increased by 55% in just three years, and now amounts to NOK 48 billion.
Internal and external changes put even greater demands on us as an organisation. The consequences of the crises we are facing will be large and long-lasting. It is our employees who have the courage and expertise to invest and create, and it is they who make it possible for us to be as good an owner as possible for our companies. Sustainability and climate have become an ever-more crucial part of how we evaluate new companies, and this also applies to our expectations for the companies that we already own. In order to evaluate how companies and industries can best contribute to solving global challenges, we need to have the best people we can possibly find. Enduring value is created by expertise and insight.
It is our employees who have the courage and expertise to invest and create, and it is they who make it possible for us to be as good an owner as possible for our companies.
Over recent years we have increased the size of our organisation from 40 to 66 employees, and we expect this to continue. We want to build up even more industry-specific expertise in Ferd Real Estate, we intend to continue to increase capacity in Ferd Capital, we want to attract more people who are passionately devoted to creating positive results for both environmental and social challenges, and we want to strengthen what we offer as an owner by providing even more development resources to the companies that we own. We do not underestimate our role as a long-term strategic owner: For us it is absolutely crucial that we set expectations and offer support, both to companies and to individuals. All of this means that our employees at Ferd and in the portfolio companies are our most important resource and are the key to our success.
We want to attract more people who are passionately devoted to creating positive results for both environmental and social challenges, and we want to strengthen what we offer as an owner by providing even more development resources to the companies that we own.
The challenges we face demand active and long-term solutions, and this is something that a family-owned company is well equipped to provide. In the years ahead we will continue to invest in people and companies that have the drive and determination to make a difference. Digitalisation, energy transformation, seafood and healthcare are some of the areas where we will seek out opportunities both in Norway and internationally.
Even so, the crucial question that we will always ask is: Can we contribute to creating enduring value and leaving clear footprints? If the answer is yes to both, the decision becomes much easier.
Morten Borge
CEO
