Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698060830363.pdf (Liberia)
Eyrir Invest ehf.

Condensed Interim Financial Statements 1 January - 30 June 2011 EUR Eyrir Invest ehf.

Skólavörðustígur 13 101 Reykjavík Iceland Reg.

no.

480600-2150 Contents Endorsement and Statement by the Board of Directors and the CEO ..................................................................

Independent Auditor's Review Report ..................................................................................................................
Statement of Comprehensive Income ..................................................................................................................

Statement of Financial Position ..............................................................................................................................

Statement of Changes in Equity ...........................................................................................................................
Statement of Cash Flows ...................................................................................................................................... Notes .................................................................................................................................................................... _____________________________________________________________________________________________________________ Eyrir Invest ehf.
Condensed Interim Financial Statements 30 June 2011 2 Endorsement and Statement by the Board of Directors and the CEO Eyrir Invest ehf.’s aim is to own, buy and sell shares, other securities and all other financial assets.

The Company started its operation on 8 June 2000.

The condensed interim financial statements of Eyrir Invest ehf.

for the period from 1 January to 30 June 2011 have been prepared in accordance with International Accounting Standard IAS 34 Interim Financial Reporting.
Net Asset Value (NAV, defined as Market value of Assets less Net Debt) amounted to EUR 196 million at 30 June 2011 compared to EUR 193 million at the beginning of the year, an increase of 2%.

Eyrir Invest ehf.

accounts for its shares in Marel hf.

in accordance with the equity method.

Market value of Marel shares, based on last trade shareprices, is 23.2 million higher than book value at 30 June 2011.
Loss for the period from 1 January to 30 June 2011 amounted to EUR 13.4 million and total comprehensive loss amounted to EUR 13.5 million.

According to the statement of financial position, equity at end of June 2011 amounted to EUR 173.1 million.

In the first half of 2011, Eyrir Invest ehf.

sold all of its shares in Össur hf.

after having been a major shareholder in the company for seven years, during which time Össur hf.

grew considerably.
grew considerably.

Following the sale of the Össur hf's shares the Company repaid some of it's borrowings, resulting in a decrease of EUR 52 million in borrowings in the period from 1 January to 30 June 2011.

In May 2011, Stork Technical Services (STS), an subsidiary of London Acquisition Luxco S.á.r.l., increased geographical footprint by the acquisition of RBG Ltd.
There are now 15,000 employees within STS that are dedicated to serve the oil, gas and power business in Benelux, North Sea, Caspian region, Middle East, N- and S-America.

Various cost and cross selling synergies are between those companies.
In the first half of 2011, a principle agreement was reached between Stork Pension Fund (SPF), the Dutch company Stork BV, Marel and a number of other companies that were formerly part of the Stork group on the future arrangement of the pensions currently managed by the Fund.

Following this agreement Stork’s and Marel´s liability towards SPF is limited to a fixed annual premium.
Statement by the Board of Directors and the CEO The condensed interim financial statements for the six months ended 30 June 2011 have been prepared in accordance with International Accounting Standard IAS 34 Interim Financial Reporting.
According to our best knowledge it is our opinion that the condensed interim financial statements give a true and fair view of the financial performance of the Company for the six-month period ended 30 June 2011, its assets, liabilities and financial position as at 30 June 2011 and its cash flows for the period then ended.
Further, in our opinion the financial statements and the endorsement of the Board of Directors and the CEO give a fair view of the development and performance of the Company’s operations and its position and describes the principal risks and uncertainties faced by the Company.

The Board of Directors and the CEO have today discussed the condensed interim financial statements of Eyrir Invest ehf.

for the period from 1 January to 30 June 2011 and confirm them by means of their signatures.
Reykjavík, 26 August 2011.

The Board of Directors: Thórdur Magnússon, Chairman Jón Helgi Gudmundsson Ólafur S. Guðmundsson Hermann Már Þórisson Sigurjón Jónsson CEO: Árni Oddur Thórdarson _____________________________________________________________________________________________________________ Eyrir Invest ehf.

Condensed Interim Financial Statements 30 June 2011 3 Independent Auditor's Review Report To the Board of Directors of Eyrir Invest ehf.
We have reviewed the accompanying condensed statement of financial position of Eyrir Invest ehf.

as of 30 June 2011 and the related condensed statements of comprehensive income, changes in equity and cash flows for the six- month period then ended.

Management is responsible for the preparation and presentation of this condensed interim financial information in accordance with IAS 34 Interim Financial Reporting .
Our responsibility is to express a conclusion on this condensed interim financial information based on our review.

Scope of Review We conducted our review in accordance with International Standard on Review Engagements 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity .
A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion.

Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed information is not prepared, in all material respects, in accordance with IAS 34 Interim Financial interim financial Reporting .

Reykjavík, 26 August 2011.

KPMG ehf.

Matthías Þór Óskarsson _____________________________________________________________________________________________________________ Eyrir Invest ehf.
Condensed Interim Financial Statements 30 June 2011 4 Statement of Comprehensive Income for the Six Months Ended 30 June 2011 1 January - 30 June Notes 2011 2010 Investment income Change in fair value of securities ................................................................... Share of profit of equity accounted associates .............................................. Net interest expenses .................................................................................... Net foreign exchange gain (loss) ................................................................... Net operating (expenses) revenue 5,6 7 ( 15.165) 2.583 5.487) 5.531 12.538) 10.991 4.663 7.071) 4.612) 3.971 ( ( ( ( Operating expenses Salaries and salary related expenses .............................................................. Other operating expenses .............................................................................. Operating expenses 451 370 821 459 264 723 (Loss) profit for the period ........................................................................... ( 13.359) 3.248 Other comprehensive income Foreign currency translation difference of foreign associates ........................ Net loss on hedges in investment in foreign associates ................................ Share of comprehensive income of associates .............................................. Other comprehensive income for the period .......................................... 0 0 190) 190) ( ( ( ( 7.454 3.006) 1.311) 3.137 Total comprehensive income for the period .............................................. ( 13.549) 6.385 Earnings per share for result attributable to equity holders of the Company for the period (expressed in EUR cent per share) Basic and diluted ............................................................................................ ( 0,0133) 0,0032 Earnings per share for total comprehensive income attributable to equity holders of the Company for the period (expressed in EUR cent per share) Basic and diluted
 ............................................................................................ ( 0,0134) 0,0063 The notes on pages 9 - 12 are an integral part of the condensed financial statements _____________________________________________________________________________________________________________ Eyrir Invest ehf.
Condensed Interim Financial Statements 30 June 2011 5 All amounts are in EUR thousand Statement of Financial Position as at 30 June 2011 Assets Notes 30.6.2011 31.12.2010 Cash and cash equivalents ..............................................................................
Restricted cash ................................................................................................ Investment securities ...................................................................................... Investment in equity accounted associates ..................................................... Trade and other receivables ............................................................................. Operating assets .............................................................................................. Total assets 4 5,6 11.216 1.058 174.320 167.533 2.764 2.126 359.017 12.311 10.447 256.835 143.602 1.201 2.050 426.446 Equity Share capital .................................................................................................... Share premium ................................................................................................
Translation reserve ..........................................................................................
Retained earnings ............................................................................................ Total equity 5.912 97.855 5.484 63.847 173.098 5.912 97.855 5.674 77.207 186.648 Liabilities Borrowings ...................................................................................................... Trade and other payables ................................................................................. Total liabilities 8,10 185.693 226 185.919 237.890 1.908 239.798 Total equity and liabilities 359.017 426.446 The notes on pages 9 - 12 are an integral part of the condensed financial statements _____________________________________________________________________________________________________________ Eyrir Invest ehf.
Condensed Interim Financial Statements 30 June 2011 6 All amounts are in EUR thousand Statement of Changes in Equity for the Six Months Ended 30 June 2011 Share capital Share premium Translation reserve Retained earnings Total equity 1 January to 30 June 2010 Equity 1.1.2010 .............................................. Total comprehensive income for the period .. Equity 30.6.2010 ............................................ 1 January to 30 June 2011 Equity 1.1.2011 .............................................. Total comprehensive income for the period .. Equity 30.6.2011 ............................................ 5.912 97.855 5.912 97.855 24.313 4.447 28.760 25.389 1.938 27.327 153.469 6.385 159.854 5.912 97.855 5.912 97.855 ( 5.674 190 ) 5.484 ( 77.207 13.359 ) 63.847 ( 186.648 13.549 ) 173.098 The notes on pages 9 - 12 are an integral part of the condensed financial statements _____________________________________________________________________________________________________________ Eyrir Invest ehf.
Condensed Interim Financial Statements 30 June 2011 7 All amounts are in EUR thousand Statement of Cash Flows for the Six Months Ended 30 June 2011 1 January - 30 June Notes 2011 2010 Cash flows from operating activities (Loss) profit for the period ..................................................................................
Adjustments for: Change in fair value of securities .................................................................... Share of profit of associates ........................................................................... Net interest expenses .................................................................................... Net foreign exchange (gain) loss .................................................................... Depreciation and other changes .....................................................................
Working capital used in operations 5 7 Change in operating assets and liabilities ........................................................... Cash used in operations before interest Interest expenses paid ....................................................................................... Interest income received .................................................................................... Net cash used in operating activities Cash flows from investing activities Restricted cash, decrease (increase) ................................................................. Investments in shares in associates ................................................................... Investments in shares in other companies .........................................................
Proceeds from sale of shares ............................................................................. Acquisition of operating assets ........................................................................... Net cash from investing activities ( 13.359 ) 3.248 ( ( ( ( 15.165 2.583 ) 5.487 5.531 ) 48 773 ) ( ( ( 1.369 ) 2.142 ) 8.092 ) 141 10.093 ) ( ( 9.389 21.595 ) 216 ) 73.171 124 ) 60.625 ( ( 10.991 ) 4.663 ) 7.071 4.612 89 634 ) 222 412 ) 4.276 ) 997 3.691 ) 4.508 ) 0 0 18.761 3 ) 14.250 ( ( ( ( ( ( ( Cash flows from financing activities Proceeds from borrowings .................................................................................
Repayment of borrowings .................................................................................. Net cash used in financing activities 6.189 57.816 ) 51.627 ) ( ( 3.634 11.729 ) 8.095 ) ( ( (Decrease) increase in cash and cash equivalents .......................................... ( 1.095 ) 2.464 Cash and cash equivalents at 1 January ......................................................... 12.311 3.301 Cash and cash equivalents at 30 June ............................................................. 11.216 5.765 Investment and financing activities without cash flow effect: Sale of shares .....................................................................................................
Receivables ......................................................................................................... 0 0 ( 593 593 ) The notes on pages 9 - 12 are an integral part of the condensed financial statements _____________________________________________________________________________________________________________ Eyrir Invest ehf.

Condensed Interim Financial Statements 30 June 2011 8 All amounts are in EUR thousand Notes 1.

2. a. b. c. Reporting Entity Eyrir Invest ehf.


(the "Company") is an international investment company incorporated and domiciled in Iceland.

The registered office of the Company is at Skólavörðustígur 13 in Reykjavík, Iceland.

The financial statements of Eyrir Invest ehf.

as at and for the six-month period ended 30 June 2011 comprise the Company and it's share in associates.

Eyrir Invest ehf.

is an investment company, aiming to own, buy and sell shares, bonds and other financial instruments.
The Company has listed bonds on the NASDAQ OMX Iceland.

The Company follows a "Buy and Build" strategy that implies being a leading investor and active participant in operations and strategic planning of core investments by providing knowledge, experience and stable ownership.

Basis of preparation Functional and presentation currency The Condensed Interim Financial Statements are presented in Euro, which is the Company's functional currency.
All financial information presented in Euro has been rounded to the nearest thousand, unless otherwise stated.

Statement of compliance These condensed interim financial statements for the six months ended 30 June 2011 have been prepared in accordance with IAS 34 Interim Financial Reporting .
They do not include all the information required for full annual financial statements and should be read in conjunction with the financial statements of the company as at and for the year ended 31 December 2010, which are available on the Company´s website www.eyrir.is The interim financial statements were approved by the Board of Directors of Eyrir Invest ehf.

on 26 August 2011.
on 26 August 2011.

Estimates The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses.
Actual results may differ from these estimates In preparing these condensed interim financial statements, the significant judgements made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the financial statements as at and for the year ended 31 December 2010.

3.
3.

Significant accounting policies The accounting policies applied by the Company in these condensed interim financial statements are the same as those applied by the Company in its financial statement as at and for the year ended 31 December 2010.

_____________________________________________________________________________________________________________ Eyrir Invest ehf.

Condensed Interim Financial Statements 30 June 2011 9 All amounts are in EUR thousand Notes, contd.

: 4.
: 4.

Investment securities Investment securities are specified as follows: Fair value 30.6.2011 Fair value 31.12.2010 Listed securities: Össur hf.

................................................................................................... 0,0% 0 82.711 Unlisted securities: Foreign investments: London Acquisition Luxco S.á.r.l.
* ............................................................ Unlisted shares .......................................................................................... Total unlisted securities ............................................................................. 17,0% 173.579 741 174.320 173.579 545 174.124 Fair value of investment securities at end of period .................................. 174.320 256.835 In the first half of 2011, Eyrir sold all of its shares in Össur after having been a major shareholder in the company for seven years.
The sale price amounted to EUR 73.2 million.

Following the sale of the shares the Company repaid some of its borrowings resulting in a decrease of EUR 52.2 million in the period from 1 January to 30 June 2011.

* London Acquisition Luxco S.á.r.l.

Investments plc.

and Eyrir Invest ehf.

London Acquisition sole asset is the Dutch company Stork B.V. is a holding company owned by funds that are controlled by Candover When measuring fair value of the Company's shares in London Acquisition S.á.r.l.
the Company's managements uses comparison with market multiples of comparable companies, multiples in recent transactions with comparable companies and projected discounted cash flow.

5.

Investments in equity accounted associates Investments in equity accounted associates are specified as follows: At the end of June 2011, the market value of Eyrir Invest's holding (based on last trading prices) in Marel is EUR 23.2 million higher than book value in the Company's accounts.
30 June 2011 Ownership Share in profits Carrying amount Market value exceeding book value Market value Marel hf., Iceland ......................................... 35,6% 2.583 167.533 190.745 23.212 30 June 2010 Marel hf., Iceland ......................................... 32,0% 1.836 141.428 133.362 ( 8.066) 6.
Key financial information of associated companies: 30 June 2011 Total assets Total liabilities Total revenue Total expenses Profit Marel hf., Iceland ......................................... 841.487 487.196 316.855 307.851 9.004 30 June 2010 Marel hf., Iceland ......................................... 895.150 560.614 283.959 278.228 5.731 _____________________________________________________________________________________________________________ Eyrir Invest ehf.
Condensed Interim Financial Statements 30 June 2011 10 All amounts are in EUR thousand Notes, contd.

: 7.
: 7.

Net interest expenses Net interest expenses is specified as follows: Interest expenses ............................................................................................................. Interest income ................................................................................................................ Net interest expenses ...................................................................................................... 8.
Borrowings Borrowings, including accrued effective interest, are specified as follows: EUR .................................................................................................................................. ISK, unindexed ................................................................................................................ ISK, indexed ..................................................................................................................... USD .................................................................................................................................. GBP .................................................................................................................................. CHF .................................................................................................................................. NOK .................................................................................................................................. JPY ................................................................................................................................... Total borrowings ............................................................................................................... 9.
Borrowings are secured as follows: 2011 1.1.

- 30.6.

2010 1.1.

- 30.6.

( ( 5.797) 310 5.487) 8.145) 1.074 7.071) ( ( 30.6.2011 31.12.2010 102.114 9.413 25.149 38.826 5.677 3.324 0 1.190 185.693 120.392 20.672 32.124 52.201 4.110 3.569 2.468 2.354 237.890 Secured bank loans ..........................................................................................................

Unsecured loans and bond issues ....................................................................................
Borrowings total .............................................................................................................. 156.534 29.159 185.693 182.428 55.462 237.890 10.
Repayment of borrowings are specified as follows: Repayments in 1 year or less ........................................................................................... Repayments in 1 - 2 years ................................................................................................ Repayments in 2 - 3 years ................................................................................................ Repayments in 3 - 4 years ................................................................................................ Repayments in 4 - 5 years ................................................................................................
Subsequent ...................................................................................................................... Total borrowings ............................................................................................................... 20.292 28.733 133.039 614 614 2.401 185.693 20.112 64.150 29 147.801 29 5.769 237.890 11.
Currency risk The Company's exposure to foreign currency risk was as follows based on notional amounts: 30 June 2011 ISK USD GBP NOK SEK Other Financial instruments at fair value through profit or loss ....................... Loans and receivables ......... Cash and equivalents ...........

Restricted cash ....................


Borrowings .......................... Net balance sheet ................ exposure ........................... 415 551 11.201 1.013 34.764 ) ( 3 1.971 7 0 (38.826) 0 0 0 0 5.677 ) ( 326 0 0 0 0 0 0 0 45 0 0 0 8 0 4.514 ) ( ( 21.584 ) ( 36.845 ) ( 5.677 ) 326 45 ( 4.506 ) _____________________________________________________________________________________________________________ Eyrir Invest ehf.
Condensed Interim Financial Statements 30 June 2011 11 All amounts are in EUR thousand Notes, contd.

: 11.

Currency risk, contd.

: 31 December 2010 Financial instruments at fair value through profit or loss ....................... Loans and receivables ......... Cash and equivalents ...........

Restricted cash ....................


Borrowings .......................... Net balance sheet exposure ........................... ISK USD GBP NOK SEK Other 82.929 66 12.229 10.401 52.815) ( 3 578 6 0 52.199) ( 0 0 0 0 4.110) ( 324 0 0 0 2.468) ( 0 0 1 46 0 0 0 5 0 5.924) ( 52.810 ( 51.612) ( 4.110) ( 2.144) 47 ( 5.919) The functional currency of the Company is EUR.

Majority of the Company's revenue and expenses are in EUR.
_____________________________________________________________________________________________________________ Eyrir Invest ehf.

Condensed Interim Financial Statements 30 June 2011 12 All amounts are in EUR thousand