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Annual Report 2014

Annual Report 2014(8th financial year)

2 Annual Report 2014

Content

GREETINGS FROM THE AMBASSADOR 3

NCCL BOARD REPORT 4

MEMBERS BY MARCH 2015 9

INFORMATION ON THE ASSOCIATION 14

REPORT ON REVENUE AND EXPENSES 15

BALANCE SHEET 16

NOTES TO THE FINANCIAL STATEMENTS 17

INDEPENDENT AUDITORS REPORT 18

page

The Norwegian Chamber of Commerce in Latvia Address: Ogļu iela 3, Riga, LV 1048Registration number: 50008111541www.nccl.lv


Dear Members

Supporting Norwegian companies abroad is one of the main priorities of the Norwegian Embassy. As new Ambassador of Norway to Latvia it is my privilege to work closely with the Norwegian-Latvian business community. Over the years Norway and Latvia have built a strong economic relationship. Norway is among the biggest foreign investors in Latvia with companies present in various sectors across the country. NCCL provides an excellent platform for taking care of their interests. A good working Board and an effective Executive Director form a dynamic Chamber that functions as a strong voice on behalf of the Norwegian business community. Through various formal and informal events the NCCL has become a vital support for its members. For the Embassy NCCL is our closest co-operation partner when it comes to business activities. Therefore I sincerely recommend Norwegian companies to take part in their activities.

Steinar Egil HagenAmbassador

Greetings from the Ambassador

Ambassador Steinar Egil Hagen was accredited by the President of Latvia Andris Bērziņš in September.


NCCL´s mission is to promote and support Norwegian companies in Latvia. We also serve as a platform for cooperation between Norwegian and Latvian businesses in all types of industries. Membership gives access to relevant companies, stakeholders and information on doing business in Latvia. It is also a channel to influence key decision makers and be inspired by other business leaders. We invite to 35 annual events with endless opportunities for company promotion and networking. 2/3 of these are free of charge for members. Our services are relevant for both Norwegian and Latvian business representatives. Together with “Team Norway” (Norwegian Embassy, NCCL, Innovation Norway and selected business representatives), we represent the core of the Norwegian business community in Latvia.

Founded in 2007 by 20 companies, we have reached our target of 100 members. Norway is among the largest investors in Latvia and we welcomed many new members during the year. Several large Norwegian companies took a firmer grip on the Latvian market during the year and both Orkla and Visma joined the Chamber as Corporate members. NCCL is a non- profit association with a financial buffer that provides sustainability and long-term perspective.

The local political and economical scene was influenced by many changes. January opened with the introduction of the EURO and the change of Prime Minister, followed by new geopolitical challenges and the election of a new Parliament. Prime Minister Valdis Dombrovskis met with us during his final days in office to look back at his achievements, Latvia´s competitiveness and relationship to Nordic countries, Europe and Russia. In the Spring, new Prime Minister Laimdota Straujuma discussed the challenges and priorities of her Government. The political and economical landscape was also the topic at our Annual General Meeting, with Ivars Ijabs, Associate Professor of Political Science at University of

NCCL Board report

In April we invited to a Business Lunch with the new Prime Minister Laimdota Straujuma.


Latvia and Morten Hansen, Head of Economics at SSE Riga as speakers. Riga Business School invited to an economic outlook in the light of Ukraine’s crisis and six leading political parties as well as 130 business representatives, diplomats and stakeholders gathered for the Joint Chamber pre-election debate “Stetting priorities for the new Saeima”.

Our excellent cooperation with the Embassy continued with the new Ambassador. In August we said farewell to Ambassador Jan Grevstad with a boat trip on Daugava followed by an informal dinner, gifts, speeches and many bottles of wine. New Ambassador Steinar Egil Hagen kindly invited all members to his Residence in only two weeks after his accreditation. “Team Norway” met with Norwegian Prime Minister Erna Solberg, CEO of DNB Norway Rune Bjerke and Norwegian State Secretary Ingvild Næss Stub to present our activities and Norwegian investments in Latvia. Vidar Helgesen, Norwegian Minister of EU/ EEA and Chief of Staff to the Prime Minister met with members and called Norden-Baltic a region of opportunities that will be even more important in the future. The Norwegian Embassy has also generously invited NCCL to use their guest office on a weekly basis. Here we discuss common projects and meet with members and new investors.

We promote sustainable leadership and help improve the local business environment. “Business as usual is not an option” was the topic of the annual CSR conference hosted by the Norwegian Embassy and NCCL in May. Sven Mollekleiv from DNV GL and Baiba Rubesa from Citadele addressed the changing role of leadership and called for more visionary leadership in Latvia. Several Norwegian companies shared how they work within their organizations. The conference was part of the 200th anniversary of the Norwegian Constitution that also included an open-air celebration with excellent Norwegian-Latvian cultural performances in Esplanade Park on May 17. NCCL in cooperation with the Embassy also produced a 3 min film promoting Norwegian investments in Latvia as part of “Norway 200”. Our thanks goes to DNB, Linstow, Møller Baltic Import, Husvik, Livonia Print, DNV GL, Narvesen, Riga Business School, UnitedPress and Clarion Collection Hotel Valdemars for supporting these initiatives.

Team Norway met with Prime Minister Erna Solberg to present Norwegian investments and experiences.


“Nordic Baltic Business Forum”: a new arena for Nordic inspiration and cooperation. Overview on Nordic investments the past decade, research on Nordic-Baltic business cultures, 20 high profile speakers, 200 participants and unique networking opportunities were success ingredients of “Nordic Baltic Business Forum”, moderated by previous Minister of Economics Daniels Pavluts in the new National Library of Latvia. The initiative and execution of this large scale conference was carried out by NCCL and SCCL. An Advisory Board of Nordic Chambers, Nordic Embassies, Nordic Council of Minister´s Office and DNB have already started working on the next Forum planned for November 2015.

Company presentations provide interesting market information and exchange of experiences. Magnus Reitan, CEO of Reitan Convenience and Katrine Judovica, CEO of Narvesen Baltija presented how Narvesen cultivates their 150 year old market leadership through strong corporate culture, constant innovations and high customer service. Every year Nordea invites to a presentation of the latest developments in the Latvian economy. New member Grand Palace Hotel gave a tour of their newly renovated hotel, originally built in 1877 as the Central Bank of Latvia. Changes in regulations related to tax law, labor law and transport law were presented by Varul and bnt attorneys-at-law. Management advises on risk management was shared by Meditor Search, Varul and Seccredo. Business Park Ogre, Ring Baltic, TM Metal, Latlaft and Shopping center Dauga presented their companies during our regional trip to Ogre. NCCL Director also travelled to Ventspils to look at Norwegian investments there.

Female Focus targets female professionals working for Norwegian and Swedish companies. A new arena to add value to members is Female Focus, inviting Scandinavian and Latvian ladies with different professional backgrounds to speak on leadership, entrepreneurship and life & work balance. 60 ladies attended our meetings in 2014, listening to Norwegian Defence Attache Britt Brestrup, Swedish Head of Baltic Banking

Inese Andersone presented Nordic investments the past decade at Nordic Baltic Business Forum 2014.


Birgitte Bonnesen, Entrepreneur and adventurer Olga Kotova and Creative brand incubator Inese Indāne.

Social activities are popular arenas for cultural exchange, networking and fun. The 17th Norwegian Lutefisk Party was organized thanks to Bjørn Røang and the “Royal Norwegian Lutefisk Association”, who fly in from Norway every year to perform the traditional Lutefisk songs and ceremonies. Norwegian-Latvian families were invited to celebrate the Norwegian Constitution on May 17. Our Christmas Party opened with live music and a jazzy Christmas concert by the female duet “Tea For Two” and followed by a delicious dinner and a charity lottery. 635 EUR was raised for the NGO Cerību Spārni supporting disabled children and adults and their families.

Norway Grants co-financed the opening of the first Baltic “Green Technology Incubator”. Green Technology Incubator is a partnership between Riga Technical University, University of Latvia and Industrial Development Corporation of Norway (SIVA) to foster innovation and development of “greener” products and businesses. Norway Grants are contributing near 100 million EUR to green industry innovation in 7 countries, including Latvia. Available Grants for businesses was also the topic of a Joint Chamber event with Andris Ozols, Director of LIAA and Agnese Cimdina, Advisor for Business Relations and EEA/ Norway Grants at the Norwegian Embassy.

Thank you to all companies who supported us by sponsorship or donations: DNB, Norwegian Embassy, Danish Embassy, Finnish Embassy, Nordic Council of Ministers office, aMedia, Fjord Software, GatewayBaltic, Husvik, Linstow Center Management, Runway, Evita Peroni, ESPA Riga, Gjensidige, Grand Palace Hotel and UnitedPress.

Finally, we would like to thank all members and cooperating partners in 2014. A special thank you to Corporate Members DNB, EVRY, Gjensidige, Husvik, ICD, JPD Total Retail Solution, Klaveness Marine, Linstow, Meditor Search, Orkla (NP Foods), Rødl & Partner, Narvesen, Nordea, RE&RE, Riga Business School, Runway, Ræder and Visma.

On behalf of the Board of the Norwegian Chamber of Commerce in Latvia,

Sincerely,

Frode Aasheim Lene Grønvold Chairman Executive Director

“FEMALE LEADERSHIP AND ENTREPRENEURSHIP IN MALE-DOMINATED INDUSTRIES’’

FEMALE FOCUS is a business network inspired by Scandinavian values where professional women in Latvia can be challenged, build competence and enjoy a healthy networking lunch.

FEMALE FOCUS presents speakers from Scandinavia and Latvia with different professional backgrounds inspiring both head & heart sharing their experience on relevant topics such as leadership, entrepreneurship, meeting professional and private challenges and life & work balance.

BRITT BRESTRUP, Norwegian Defence Attaché to Estonia, Latvia and Lithuania

Colonel Britt Brestrup is the first Norwegian woman to hold the position as Defence Attaché. She has served for 30 years in the national military service as well as in international peacekeeping and humanitarian missions in Hebron, Kosovo, Sarajevo, Iraq, Lebanon and Romania. She is described as brave, powerful and engaged. Brestrup is an experienced lecturer, mentor and coach and was awarded the Norwegian Armed Forces Equal Opportunity Prize in 2006.

OLGA KOTOVA, Partner at Baltic Commercial Aviation Training

Olga Kotova has 20 years of business experience in various industries ranging from woodworking to aviation. At a young age, she became the first female Board Member of one of the leading Baltic woodworking companies. She has also solid experience in marketing and business development from various positions in Tetra Pak. Today, she is a successful entrepreneur in the field of aviation with business customers around the globe. She is also a dream-chaser and the first woman from Baltic States to stand on the top of Mount Everest.

Date: Thursday, June 5

Time: 12:00 - 14:00 Presentations at 12:30, Networking Lunch at 13:00Venue: Garage Vine Bar, Berga Bazārs, Elizabetes iela 83/85

Admission: 28 EUR members/ 35 EUR non-members

Registration: by latest June 3

KEY SPEAKERS:


1.

3.

5.

2.

4.

6.

1. Two female Prime Ministers: Erna Solberg and Laimdota Straujuma.2. Tom Erdal was honored “First class Lover” at the 17th annual Lutefisk Dinner in March.3. Aasmund Skår and Knut Magnussen, DNB at the Nordic Baltic Business Forum.4. Farewell party for Ambassador Jan Grevstad, with Team Norway, Board members and Embassy colleagues.5.-6. May 17, celebrating the 200th anniversary of the Norwegian Constitution in Esplanade.


Members by March 2015

Honorary Member Industry WebsiteRoyal Norwegian Embassy in Latvia

Embassy www.norvegija.lv

Corporate Members Industry WebsiteDNB Banking/ finance www.dnb.lvEVRY IT/ Business Services Senter www.evry.comGjensidige Risk management/ insurance www.gjensidige.lvHusvik House production www.husvik.lvICD IT/ Telecommunication www.icd.noJPD Total Retail Solutions Retail solutions www.jpd.lvKlaveness Marine Investment/real estate www.klavenessmarine.comLinstow Center Management

Shopping center development

www.linstow.lv

Meditor Search HR/ Risk Management www.meditorsearch.noNarvesen Convenience retail www.narvesen.lvNordea Banking/ finance www.nordea.lvOrkla Food/ beverage www.orkla.comRE&RE Construction www.rere.lvRiga Business School Education www.rbs.lvRunway Business Services Center www.runway.lvRæder Law firm www.raeder.noRödl & Partner Accounting/ auditing/

consultingwww.roedl.com/lv

Visma IT/ Telecommunication www.visma.com


Members Industry Website4Energia Renewable energy www.4energia.eeaJob Recruitement services www.ajob.lvA.K Advokati Law firm www.akadvokati.lvAktiva IT/ TelecommunicationAMB Architects Architects www.arkamb.noAnacott Steel Healthcare/ house

production/ otherwww.amepure.com

AON Baltic Latvia Risk management/ Insurance

www.aon.com

AquaFence Flood protection systems www.aquafence.comArdur Tax Accounting and consulting www.ardur.noAtlas Services Group Maritime sector recruitment www.atlasservicesgroup.comB2 Holding/ B2 Kapital Banking/ accounts

receivables management www.b2holding.no

Baltic Pork Pork breeding/ energyBaltic Travel Partner Meetings/ incentive/ events www.btp.lvbnt Attorneys-at-law Law firm www.bnt.euBusiness Park Ogre Business Park www.pbogre.lvClarion Collection Hotel Valdemars

Hotel www.valdemars.lv

DNV GL Insurance/ Risk management

www.dnvgl.com

DFDS Transportation/ logistics www.dfdslogistics.comDiatom Enterprises IT/ Telecommunication www.diatomglobal.comEuropark Parking services www.europark.lv

Prime Minister Valdis Dombrovskis was speaking to the Nordic Chambers during his last days in office.


Members Industry WebsiteFontes Grupa HR Consultancy www.fontes.lvFiskevegn Production of fishing

equipmentwww.fiskevegn.no

GatewayBaltic Market intelligence and research

www.gatewaybaltic.com

Gencs Valters Law Firm Law firm www.gencs.euGlimstedt & Partners Law firm www.glimstedt.lvGrand Palace Hotel Hotel www.grandpalaceriga.comGrifs Security services www.grifsag.lvHospital Organiser/ eCare Solutions

IT solutions www.hospitalorganiser.no

ICT Latvia Transportation/ logistics www.ict-as.dkInovation Norway Consulting services www.innovasjonnorge.noJets Sanitary systems www.jetsgroup.com/enKarlsberg Manifacturing company www.karlsberg.noKPMG Consulting services www.kpmg.lvLanguage Master International

Translation services www.lminter.com

LAPA Maritime sector www.lapa.lvLatlaft Log house production www.latlaft.lvLawin Law firm www.lawin.lvLeinonen Accounting and consulting www.leinonen.euLibra Plast Maritime production of

doorswww.libraplast.no

Lindorff Credit management www.lindorff.lvLinstow Baltic Property development www.linstow.noLivonia Print Printing production www.livoniaprint.lv

Sven Mollekleiv, DNV GL at the CSR Conference “Business as usual is not an option”, hosted by Norwegian Embassy and NCCL


Members Industry WebsiteLursoft Databases of entreprises www.lursoft.lvMøller Baltic Import Car dealer www.audi.lvNordic Backoffice Business services center www.nordicbackoffice.lvNordisk Language center Language education and

translationwww.nordisksia.wordpress.com

Norplast Glass-fiber production www.norplast.lvNumeri Accounting and consulting www.numeri.lvOSM Crew Management Maritime sector www.osm.noPearl Baltic Labs SAP implementation www.pearlconsulting.noPK serviss Construction Management www.pkserviss.lvRaidla Leijn & Nourcous Law firm www.rln.lvRadisson Blu Hotel Daugava

Hotel www.radissonblu.com

Radisson Blu Hotel Latvija Hotel www.radissonblu.comRiga Norge Property development www.riganorge.lvRiga Ship Management Maritime sector www.shipmanagement.com.lvRing Baltic Production www.ringmek.comSeamaster Safety belt production www.livbeltefabrikker.comSkrivanek Language education and

translationwww.skrivanek.lv

Sperre Baltic Metal casting industry www.sperre.comStatoil Fuel&Retail Business Centre

Retail and energy www.statoilfuelretail.com

TM Metal Baltic Metal casting industry www.tmmetal.comUnited Press Printing production www.unitedpress.noVarul Law firm www.varul.lvVMS Group Metal production www.vms.lv

Narvesen visit in August, with Magnus Reitan, CEO of Reitan Convenience and Katrine Judovica, CEO of Narvesen Baltija.


Small Business Members Industry WebsiteAmber Pool Real estate consultancyEvolve Sustainability and hu-

man rights consultingNordic Invest Real estate developerNortrade HR/ Recruitment www.nortrade.lvPrime Recruitment Recruitment services www.prime.lvRixport Property development www.rixport.lvSuncrisp Food/beverage www.suncrisp.euVangazu Sildspeks Energy

Wesselshof Medical tourism www.wesselshof.lv

NGO/ Individual members Industry WebsiteLatvian wood construction cluster www.woodhouses.lvNordic Council of Minister´s Office www.norden.lvFaculty of Engineering Economics and Management (RTU)

www.mba.rtu.lv

Andre DemarestKnut Arne VingerOdd Erik FangholOdd Gomsrud

Visit to Norwegian-Latvian companies in Business Park Ogre and Ogre region, here with company TM Metal Baltic.


Information on the Association

Name of the Association

Legal status

Number, place and date of registration

Legal and postal address

Management board

Reporting year

Previous reporting year

Auditors and address

The Norwegian Chamber of Commerce in Latvia

Association

50008111541, Riga, 19th February, 2007

Ogļu iela 3, Riga, LV-1048

Frode Aasheim, Chairman of the Board, from 14.03.2013Alf Erik Lundgrenn, Deputy Chairman of the Board, from 27.03.2014Bjørn Sigurd Røang, from 19.02.2007Inese Andersone, from 04.06.2012Ivars Kapitovics, from 27.03.2014Antra Bula, from 27.03.2014Tor Bernhard Slaathaug, from 27.03.2014Tom Erdal, from 04.06.2012 to 27.03.2014Agnese Medne, from 23.05.2011 to 27.03.2014Claudio Rivera, from 14.03.2013 to 27.03.2014Kerija Andersena, from 23.05.2011 to 27.03.2014

01.01.2014.– 31.12.2014.

01.01.2013. – 31.12.2013.

KPMG Baltics SIA, Vesetas iela 7, Riga, LV-1013License No 55

Meeting with Vidar Helgesen, Norwegian Minister of EU/EEA and Chief of Staff to the Prime Minister’s office.


Report on Revenue and Expenses

31.12.2014 31.12.2013 EUR LVL

Membership fees 42 882 38 844Received donations and grants 5 512 4 145Other income 18 078 9 165TOTAL INCOME 66 472 52 154Administrative expenses and operating expenses :

Salaries (30 900) (24 465) Compulsory state social security contributions (7 289) (5 893) Depreciations and amortizations (28) (744) Other expenses (28 080) (20 864)TOTAL EXPENSES (66 297) (51 966)EXCESS OF INCOME OVER EXPENSES 175 188

The accompanying notes on page 17 form an integral part of these financial statements.

Frode AasheimChairman of the Board

24 February 2015


Balance sheet

31.12.2014 31.12.2013

ASSETS EUR EUR Long term investmentsFixed assetsOther fixed assets 972 -Total long term investments 972 -

Long term financial investmentsOther long term receivables 10 000 -Total long term financial investments 10 000 -Total long-term investments 10 972 -

Current assetsTrade receivables 410 297Other receivables 278 -Prepaid expenses 56 11Cash 26 206 37 305Total current assets 26 950 37 613Total assets 37 922 37 613

LIABILITIESFundsReserve fund 37 125 36 950 Total funds 37 125 36 950

Short term liabilitiesAccounts payable to suppliers and contractors 31 83

Accrued liabilities 473 391Taxes and compulsory state social security contributions

293 189

Total short term liabilities 797 663Total liabilities 37 922 37 613

The accompanying notes on page 17 form an integral part of these financial statements.


Notes to the Financial StatementsThe summary financial statements comprise the balance sheet as at 31 December 2014 and report on revenue and expenses for the year then ended derived from the audited financial statements of “The Norwegian Chamber of Commerce in Latvia” in accordance with the Cabinet of Ministers Regulation No 808 “On the annual reports of associations, foundations and trade unions” applicable in the Republic of Latvia.

The audited financial statements of “The Norwegian Chamber of Commerce in Latvia” and the Auditors’ Report thereon is available at Oglu 3, Riga, Latvia.

Management believes that the content of the summary financial statements is consistent with the objective of the summary financial statements.

From the Lunch debate “Setting priorities for the new Saeima” in September.


Independent Auditors report

Report of the independent auditor on the summary financial statements

To the Members of The Norwegian Chamber of Commerce in Latvia

Report on the summary financial statementsThe accompanying summary financial statements on pages 4 to 6, which comprise the summary balance sheet as at 31 December 2014 and the summary statement on revenue and expenses for the year then ended, and related notes to the summary financial statements, are derived from the audited financial statements of The Norwegian Chamber of Commerce in Latvia (“the Association”) for the year ended 31 December 2014. We expressed an adverse audit opinion on those financial statements in our report dated 24 February 2015 as the Association has not provided for potential obligations it is likely to incur as a result of contract concluded in 2012 and 2013 in amount of EUR 30 thousand.The summary financial statements do not contain all the disclosures required by the Cabinet of Ministers regulations No. 808 “On Annual Reports of Associations, Foundations and Trade Unions”, applicable in the Republic of Latvia. Reading the summary financial statements, therefore, is not a substitute for reading the audited financial statements of The Norwegian Chamber of Commerce in Latvia.

Management’s Responsibility for the Summary Financial Statements

Management is responsible for the preparation of a summary of the audited financial statements in accordance with the principles described in Notes to the summary financial statements.

Auditors’ Responsibility

Our responsibility is to express an opinion on the summary financial statements based on our procedures, which were conducted in accordance with International Standard on Auditing (ISA) 810, “Engagements to Report on Summary Financial Statements”.

Opinion

In our opinion, the summary financial statements derived from the audited financial statements of The Norwegian Chamber of Commerce in Latvia for the year ended 31 December 2014 are consistent, in all material respects, with the audited financial statements on the basis described in Notes to the summary financial statements.

KPMG Baltics SIA Licence Nr. 55

Valda Unne Irena SarmaKPMG Baltics SIA Sworn AuditorRiga, Latvia Certificate No. 15124 February 2015

KPMG Baltics SIA Vesetas iela 7 Riga LV 1013 Latvia

Phone: +371 670 380 00Fax: +371 670 380 02Internet: www.kpmg.lv

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