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Notes to the consolidated financial
statements, REC Group
REC Annual Report 2011
Share of profit or loss is after tax and non-controlling interests of associates, including fair value adjustments. The main investment in
associates is Mainstream Energy Inc. located in California, USA. In April 2008, REC Solar AS acquired a 20 percent ownership interest and
voting right in this company. The investment supports REC’s ambition to take an active role in the building of robust and scalable market
channels, and marked the entry in the increasingly important USmarket. Mainstream Energy conducts its operating through AEE Solar Inc.,
which is one of the largest distributors of renewable energy systems and equipment in the USA, and the large PV system integrator
REC Solar Inc. (not to be confused with REC’s business segment REC Solar).
REC recognized impairment on the shares of Mainstream Energy of NOK 93million in 2011. The estimated recoverable amount was based
on different scenarios of estimated future cash flows. The impairment was a result of the challenging market conditions and related
reduction in expected margins for Mainstream Energy relative to previous estimates.
RECWafer Norway AS has a 20 percent ownership interest and voting right in Meløy Bedriftsservice AS. RECWafer Norway AS is a major
customer of this company.
The REC Group’s share of figures for the associates at and for the year ending on December 31*
(NOK INMILLION)
ASSETS
LIABILITIES
REVENUES
PROFIT/LOSS
Total 2011
165
91
309
-97
Total 2010
251
77
277
1
* Including fair value adjustments, goodwill and impairments.
INVESTMENTS IN JOINTVENTURES
At December 31, 2011 and 2010 the REC Group has ownership interests in two joint venture entities in the USA within the REC Systems
area. The REC Group’s interests in jointly controlled entities are accounted for by proportionate consolidation. Accordingly, the REC Group
combines its share of the jointly controlled entities’ individual income and expenses, assets and liabilities and cash flows on a line-by-line
basis with similar items in the REC Group’s financial statements. The aggregate amounts of financial statement items are shown in separate
tables below. The net cash flow fromfinancing activities reflects capital contributions to the entities by the REC Group.
Items from the statement of financial position
(NOK INMILLION)
2011
2010
Non-current assets
25
6
Current assets
11
3
Total assets
35
9
Non-current liabilities
0
0
Current liabilities
1
0
Total liabilities
1
0
Items from the statement of income
(NOK INMILLION)
2011
2010
Revenues
0
0
Operating expenses
-7
-9
Loss after income tax
-7
-9
Items from the statement of cash flow
(NOK INMILLION)
2011
2010
Net cash flow from operating activities
-13
-12
Net cash flow from investing activities
-17
-6
Net cash flow from financing activities
31
18
Net cash flow in the period
2
0
Cash and cash equivalents at January 1
0
1
Foreign currency effect on cash and cash equivalents
0
0
Cash and cash equivalents at December 31
2
0