Letter from the CEO
For 175 years, the Andresen family and Ferd have been engaged in industrial ownership and investments through changing times. 2023 was yet another year marked by dramatic events: war in Europe and the Middle East, an increasingly volatile geopolitical situation, and a macroeconomic shift with high inflation and a sharp increase in interest rates both in Norway and abroad.
This challenging and at times turbulent backdrop strongly impacted global financial markets and individuals over the past year – and of course, Ferd as well. This environment tested the adaptability and resilience of our portfolio, and we passed the test in 2023: a total return on the group’s equity of almost 9 percent is satisfactory for the year we have left behind.
For 175 years, the Andresen family and Ferd have been engaged in industrial ownership and investments through changing times.
The turmoil and uncertainty meant that activity in 2023 in both public and private financial markets was lower than usual. However, the activity level at Ferd remained high: we supported and assisted the companies in our portfolio impacted by reduced purchasing power among consumers, whilst we further developed those companies backed by strong trends such as digitalization and energy transition. Furthermore, several companies executed strategic additional investments. We also found new opportunities: Ferd was, among other things, invited in as a preferred partner in the rapidly growing digital consultancy firm Forte Digital and in the global ocean technology company General Oceans. In the past year, we also actively worked to create value beyond an economic perspective, including an initiative to provide support to youth in four of Oslo’s most disadvantaged districts.
Long-term perspective is important at Ferd, but long-term ownership is not a goal in itself. We regularly ask ourselves whether we still are the best owner for our companies, or it is right to hand over ownership to others. When we pass the baton, we simultaneously free up capital that enables us to pursue new opportunities.
Long-term perspective is important at Ferd, but long-term ownership is not a goal in itself.
We are prepared for headwinds in the economy to continue in 2024, but we also see that a turning point may be approaching. Once the interest rates peak is behind us, one can again expect increased activity and better-functioning financial markets. And Ferd is well-positioned for this: we will look for opportunities to both realize investments and to deploy capital in new ones. In the coming years, we will particularly explore future-oriented industries that can grow internationally, such as companies that drive digitalization and industrial firms with strong competitive advantages.
Even as times change, the value of active and responsible ownership remains. Our ownership is executed by people who want to make a difference and contribute to creating positive effects for both our own business and the environment we are part of. I am proud of the colleagues at Ferd and in our portfolio companies: They have solid values at their core, and they are capable of lifting both themselves and others. In the years to come, we will continue to develop Ferd and the people who work with us, so that we can strengthen our position as a responsible and value-creating owner in both listed- and privately owned companies.
In the years to come, we will continue to develop Ferd and the people who work with us, so that we can strengthen our position as a responsible and value-creating owner.
In December 2023, Chairman Johan H. Andresen announced that his A-shares will one day be owned by the Ferd Foundation. Together, we will write the next chapter in Ferd’s history, a chapter where we continue to deliver on the vision to “create enduring value and leave clear footprints” in a long-term, responsible, and sustainable manner – for current and future generations.
Morten Borge
CEO
