2012-02-28 16:16:00 CET
2012-02-28 16:17:08 CET
REGULATED INFORMATION
Finnlines - Financial Statement Release
FINNLINES PLC FINANCIAL STATEMENT BULLETIN JANUARY-DECEMBER 2011 (unaudited)
Helsinki,Finland, 2012-02-28 16:16 CET (GLOBE NEWSWIRE) -- Finnlines Plc Stock
Exchange Release 28 February 2012 at 17:15
FINANCIAL STATEMENT BULLETIN JANUARY-DECEMBER 2011 (unaudited)
SUMMARY
October - December 2011
-- Revenue EUR 144.8 million (EUR 139.3 million prev. year), increase 4.0%
-- Result before interest, taxes, depreciation and amortisation (EBITDA) EUR
14.4 million (EUR 16.0 million), decrease 10.2%
-- Earnings per share were -0.07 (-0.07) EUR/share.
January - December 2011
-- Revenue EUR 605.2 million (EUR 561.1 million prev. year), increase 7.9%
-- Result before interest, taxes, depreciation and amortisation (EBITDA) EUR
84.5 million (EUR 85.9 million), decrease 1.6%. 2010 figure includes
non-recurring refund income of EUR 5.7 million
-- Earnings per share were -0.05 (0.05) EUR/share.
JANUARY - DECEMBER 2011 IN BRIEF
MEUR 10-12 2011 10-12 2010 1-12 2011 1-12 2010
Revenue 144.8 139.3 605.2 561.1
EBITDA 14.4 16.0 84.5 85.9
Result before interest and taxes -1.6 0.5 21.0 25.6
(EBIT)
% of revenue -1.1 0.3 3.5 4.6
Result before taxes (EBT) -8.2 -4.9 -5.4 3.7
Result for the reporting period -3.1 -3.1 -2.5 2.2
EPS, EUR -0.07 -0.07 -0.05 0.05
Equity ratio, % 29.1 29.1 29.1 29.1
Gearing, % 199.8 198.8 199.8 198.8
Shareholders' equity/share, EUR 9.12 9.14 9.12 9.14
Calculation of key ratios is presented under 'Calculation of ratios'.
FINNLINES' BUSINESS
Finnlines is one of the largest North-European liner shipping companies,
providing sea transport services mainly in the Baltic and the North Sea. In
addition to freight, the Company's ro-pax vessels carry passengers between five
countries and eight ports. The Company also provides port services in Helsinki,
Turku and Kotka. The company has subsidiaries or sales offices in Germany,
Belgium, the UK, Sweden, Denmark, Poland, Luxembourg and a representative
office in Russia. Finnlines is a Finnish listed company and part of the Italian
Grimaldi Group.
GENERAL MARKET DEVELOPMENT
The recovery of market volumes decelerated towards the end of 2011. Based on
the statistics by the Finnish Transport Agency, the Finnish seaborne imports
carried in container, lorry and trailer units increased by 6 per cent and
exports by 12 per cent during January-December 2011 compared to the previous
year (measured in tons). The Finnish export and import volumes 2010 and 2011
are not comparable as such as the first quarter of 2010 was affected by the
stevedoring strike in March. According to the statistics published by Shippax,
trailer and lorry volumes transported by sea between Southern Sweden and
Germany in January-December decreased by one per cent compared to 2010. During
the same period private and commercial passenger traffic between Finland and
Sweden decreased by two per cent. Between Finland and Germany the corresponding
decrease was 11 per cent (Finnish Transport Agency). In the second quarter of
2010 the volcanic ash cloud caused airspace limitations, which then abnormally
increased the amounts of private passengers.
FINNLINES TRAFFIC
During the first quarter of the year, the traffic was influenced by a number of
external disturbances. Unexpected stevedoring strikes and very severe ice
conditions in the Baltic Sea caused several temporary schedule changes,
reroutings and stoppages. The last quarter was challenging due to adverse
weather conditions and weak market volumes.
The bunker price remained high throughout the entire reporting period and
further increased notably during the second half of 2011.
In April and May, two of the six ro-ro newbuildings (MS Finnbreeze and MS
Finnsea) entered service and are sailing under the Finnish flag. Finnlines
operated on average 25 vessels in its own traffic compared to 24 vessels in
2010.
The cargo volumes transported during January-December totalled approximately
641,000 (629,000 in 2010) units, 72,000 (56,000) cars (not including
passengers' cars ) and 2,239,000 (2,039,000) tons of freight not possible to
measure in units. In addition, some 635,000 (648,000) private and commercial
passengers were transported.
FINANCIAL RESULTS
October - December 2011
The Finnlines Group recorded revenue totalling EUR 144.8 million (139.3), an
increase of 4.0 per cent compared to the same period in 2010. Shipping and Sea
Transport Services generated revenue amounting to EUR 136.3 million (127.9) and
Port Operations EUR 15.3 million (18.4). The internal revenue between the
segments was EUR 6.8 million (7.0).
Result before interest, taxes, depreciation and amortisation (EBITDA) was EUR
14.4 million (16.0), a decrease of 10.2 per cent. Vessel lease expenses
decreased by EUR 0.6 million compared to the same period of the previous year.
Result before interest and taxes (EBIT) was EUR -1.6 million (0.5). Financial
income was EUR 0.5 million (0.6) and financial expenses totalled EUR -7.0
million (-5.9). Result before taxes (EBT) was EUR -8.2 million (-4.9), and
earnings per share (EPS) were EUR -0.07 (-0.07).
January - December 2011
The Finnlines Group recorded revenue totalling EUR 605.2 million (561.1), an
increase of 7.9 per cent compared to the same period in 2010. Shipping and Sea
Transport Services generated revenue amounting to EUR 563.3 million (513.7) and
Port Operations EUR 67.7 million (72.3). The internal revenue between the
segments was EUR 25.8 million (24.9).
Result before interest, taxes, depreciation and amortisation (EBITDA) was EUR
84.5 million (85.9, including non-recurring items of EUR 5.7 million). Vessel
lease expenses decreased by EUR 5.5 million and amounted to EUR 28.4 million
(33.8).
Result before interest and taxes (EBIT) was EUR 21.0 million (25.6, including
EUR 5.7 million non-recurring items). Financial income was EUR 0.9 million
(3.8) and financial expenses totalled EUR -27.4 million (-25.7). Result before
taxes (EBT) was EUR -5.4 million (3.7) and earnings per share (EPS) were EUR
-0.05 (EUR 0.05). As from 1 January 2012, the applicable corporate tax rate in
Finland decreased from 26 per cent to 24.5 per cent. In 2011, the one-time
positive effect of the tax rate change is EUR 3.3 million.
STATEMENT OF FINANCIAL POSITION, FINANCING AND CASH-FLOW
Interest-bearing net debt increased by EUR 2.1 million compared to end of 2010
and amounted to EUR 854.8 million (852.6). According to the consolidated
statement of financial position, the equity attributable to parent company
shareholders equals to EUR 426.9 million at the end of the reporting period.
Distributable funds included in the parent company's shareholders' equity on 31
December 2011 totals EUR 114.2 million. The equity ratio calculated from the
balance sheet was 29.1 per cent (29.1) and gearing was 199.8 per cent (198.8).
Vessel lease commitments have decreased by EUR 28.4 million from the end of
December 2010 due to redelivery of chartered tonnage and were EUR 14.8 million
at the end of the reporting period.
The Company is in complete compliance with the financial covenants of its loan
portfolio. At the end of the period, cash and deposits together with unused
committed working capital credits and the undrawn part of committed credits for
newbuildings amounted to EUR 103.1 million. The Company has a commercial paper
programme amounting to EUR 100 million of which the company had issued EUR 5.0
million at the end of 2011.
CAPITAL EXPENDITURE
Gross capital expenditure in the review period totalled EUR 64.4 million
(82.2), and consists mainly of payments for newbuildings (EUR 57.3 million).
Total depreciation amounted to EUR 63.5 million (60.1).
Two of the six newbuildings (MS Finnbreeze and MS Finnsea) were delivered from
the shipyard in China during March 2011. The vessels were taken into use in
Finnlines' service during April and May. The next two vessels (MS Finnsky and
MS Finnsun) were delivered in the beginning of 2012. The last two of the
newbuildings are scheduled to be delivered during the second half of 2012. In
June, Finnlines sold its terminal building in Pansio, Turku and in December two
container cranes in port of Kotka. The transactions had no major effect to the
financial result of the reporting period.
PERSONNEL
The Group employed an average of 2,076 (2,096) persons during year 2011,
consisting of 1,072 (1,141) employees on shore and 1,004 (954) at sea. The
number of persons employed at the end of the year were 2,041 (2,143) in total,
of which 1,007 (1,166) on shore and 1,034 (977) at sea.
The decrease in the number of onshore personnel was due to employee reductions
in the Port Operations during 2011 after employee co-operation negotiations
which were started in 2010 and completed during the first quarter of 2011.
Furthermore, the SeaRail traffic was discontinued in the Port of Turku.
The personnel expenses (social costs included) for the reporting period were
EUR 107.9 (110.6) million.
GROUP STRUCTURE
The Group has established three new subsidiaries in Luxembourg for the
ownership of the newbuildings. At the end of the reporting period, the Group
consisted of the parent company and 24 subsidiaries.
Research and development
The aim of Finnlines' research and development work is to find and introduce
new practical solutions and operating methods, which enable the company to
better and more cost-efficiently meet customer needs. In 2011, the focus was on
energy efficiency of the vessels under construction and more energy-efficient
use of vessels in the traffic.
The implementation of the new IT tools for marketing and sales in Passenger
Services and for Purchasing was accomplished in 2011.
The company is also actively developing the safety of cargo handling methods.
Sufficient securing of cargo is essential in order to ensure safe cargo
handling operations and safety at sea. Together with a group of vocational
education providers and cargo securing experts in Finland, Germany, Italy and
Sweden, Finnlines is participating in the CARING project: Cargo securing to
prevent cargo damages on road, sea, rail and air. The project has partially
been financed by the Leonardo da Vinci programme of the European Union. The
project will produce up-to-date learning and instructive material in order to
improve the quality of cargo securing. There will also be a Cargo Calculator
for determining sufficient cargo lashing and an Online Survey on the know-how
and attitudes of people working with cargo securing issues.
In 2011, Finnlines launched an energy saving programme to have all vessels'
officers to analyse and identify all possible measures to optimise the energy
consumption devices in the day-to-day business. The target is to minimise all
energy-related costs to the absolutely necessary minimum, also including all
port-related issues. Finnlines has started to work together with two system
suppliers to develop an automated voyage reporting system, including data on
fuel consumption, emissions and performance. The target is to have a tool to
benchmark ships' performance and to support decision making for traffic
management.
THE FINNLINES SHARE
The Company's registered share capital on 31 December 2011 was EUR 93,642,074
divided into 46,821,037 shares. A total of 1.5 (2.9) million shares were traded
on the NASDAQ OMX Helsinki during the period. The market capitalisation of the
Company's stock at the end of December was EUR 360.5 (373.2) million. Earnings
per share (EPS) were EUR -0.05 (0.05). Shareholders' equity per share was EUR
9.12 (9.14). At the end of the year, Grimaldi Group's holding and share of
votes in Finnlines was 66.97 per cent.
DECISIONS TAKEN BY THE ANNUAL GENERAL MEETING
The Annual General Meeting of Finnlines Plc held on 19 April 2011 approved the
Financial Statements and discharged the members of the Board of Directors and
the President and CEO from liability for the financial year 2010.
The Annual General Meeting approved the Board of Directors proposal not to pay
any dividend.
The Annual General Meeting decided that the Board of Directors shall have six
members. The current Board Members were re-elected to the Board: Mr Emanuele
Grimaldi, Mr Gianluca Grimaldi, Mr Diego Pacella, Mr Antti Pankakoski, Mr Olav
Rakkenes and Mr Jon-Aksel Torgersen. The Board of Directors elected Mr Emanuele
Grimaldi as Chairman and Mr Diego Pacella as Vice-Chairman.
The firm of authorised public accountants Deloitte & Touche Oy was appointed as
the Company's auditors for 2011.
The Annual General Meeting authorised the Board of Directors to resolve on the
issuance of new shares in one or several tranches so that the total number of
shares issued based on the authorization is 20 000 000 at maximum. The
authorization is valid until the next Annual General Meeting. The authorization
replaces the Annual General Meeting's authorization to decide on a share issue
of 14 April 2010.
RISKS
The risks affecting the business sector where the Group operates are:
The risk of overcapacity in terms of ro-ro tonnage plays a less important role
compared to the general shipping overcapacity of the world tonnage as the
scrapping of ro-ro and ro-pax tonnage has exceeded and is expected to exceed
the newbuilding order-book. As far as Finnlines is concerned, in the beginning
of 2012 two chartered vessels were redelivered to their owners when two
newbuildings entered the fleet. At the end of 2012 three vessels will terminate
their charter and will be redelivered to respective owners, whilst only two
newbuildings will enter the fleet. During the autumn of 2011 there was
increasing uncertainty in the global and European economy.
Finnlines constantly monitors the stability and the payment habits of its
customers and currently there are no significant risks related to this.
Finnlines holds adequate credit lines to maintain liquidity in the current
business environment.
ESSENTIAL LEGAL PROCEEDINGS
Two of the three legal actions raised in the District Courts in Finland by the
Finnish Transport Workers' Union (“Union”) against the Finnlines' port
operations subsidiary for compensation of weekend work are still under
process.The Company estimates that the amount of potential liabilities should
not exceed EUR 0.5 million.
Sub-chartering of two vessels to Benfleet Shipping Limited, Cyprus (“SSI”)
caused the Company a loss of time charter hires and expenses in total EUR 0.3
million, as SSI terminated the charters in summer 2009. The Company continues
proceedings for the enforcements of favourable decisions rendered by the sole
arbitrator in the case.
Sponda Kiinteistöt Oy (“Sponda”) has summoned the Company to the Helsinki
District Court. The dispute concerns the termination of the lease contracts
signed between the parties on 2005. The Helsinki District Court rendered
decision on 23rd February in favour of Sponda and ordered the Company to
compensate Sponda EUR 0.9 million plus interests. The Company is underway to
analyse the decision and possible appeal to the Helsinki Court of Appeal.
The Company's German subsidiary has been taken to the City Court of Lübeck in
December 2009 by its former Managing Director regarding the termination of his
Service Agreement. The City Court of Lübeck has rendered the decision in favour
of the subsidiary. The former Managing Director has appealed on the decision.
The process is under way.
The Helsinki District Court rendered in March 2010 its judgment in the action
initiated by Mutual Pension Insurance Company Ilmarinen (“Ilmarinen”) against
the Company, which was reversed by the Helsinki Court of Appeal in favour of
the Company in November 2011. At the end of January 2012, Ilmarinen filed on an
application for a leave to appeal and a petition of appeal with the Supreme
Court regarding the judgement of the Helsinki Court Of Appeal.
In 2008, the Administrative Court of Helsinki rendered decisions based on which
it can be argued that the Finnish Act on Fairway Dues in force until 1 January
2006 has contained provisions which according to EU law were discriminatory.
The Company has submitted the claim for damages and restitution against the
Finnish State for the years 2001-2004 at the District Court of Helsinki. The
amount of the claim is approximately EUR 8.5 million which has not been
recognised as revenue.
ENVIRONMENT AND SAFETY
The objective of Finnlines' environmental policy is to provide safe,
top-quality services while making efforts to minimise the environmental impacts
in every aspect of operations.
To improve ships' fuel economy, Finnlines has made efforts to optimise route,
speed, load, and engine mode. On two ships, electronic tools for optimal voyage
planning and trim are trialled. The newbuildings delivered from China are
fitted with a rudder/propeller combination technology designed to achieve
reductions in fuel consumption.
In the Emissions Control Areas, the sulphur content limit for heavy fuel oil is
1.0 per cent. In EU ports, there is a maximum 0.1 per cent sulphur limit on all
marine fuel. IMO (International Maritime Organisation) plans to continue with
sulphur reductions to 0.1 per cent also at sea, effective from 2015, but there
are widespread international efforts in order to postpone the effective due
date by at least five years.
By the end of 2011, the Ballast Water Management Convention had been signed by
30 countries, representing 26.4 per cent of world tonnage. The Convention will
enter into force when 30 countries, representing 35 per cent of world tonnage,
have signed it. In the first phase, the ships will have to exchange ballast
water or install a treatment plant. After 2016, treatment plants will be
mandatory. Finnlines has been looking at efficient ballast water treatment
systems for ships.
A total of 16 ships flying the Finnlines flag are incorporated in the certified
environmental system which meets the requirements of the ISO 14 001 standard.
During 2011, Finnsteve also had its environmental system certified in
accordance with ISO 14 001.
CORPORATE GOVERNANCE
Finnlines applies the Finnish Corporate Governance Code for listed companies
updated in autumn 2010. The Corporate Governance Statement can be reviewed at
the corporate website (www.finnlines.com).
MAIN EVENTS AFTER THE REPORTING PERIOD
In January 2012, Mutual Pension Insurance Company Ilmarinen filed an
application for a leave to appeal and a petition of appeal with the Supreme
Court regarding the judgement of the Helsinki Court Of Appeal of 29 November
2011 in which the Court of Appeal overruled the judgement rendered by the
Helsinki District Court on 3 March 2010 and dismissed all claims presented
against Finnlines Plc by Ilmarinen.
The employee co-operation negotiations, which started at the end of 2011 with
the personnel in Kotka, were completed in January 2012. The negotiations
resulted in termination of 23 employments in total.
FINNLINES PROSPECTS FOR 2012
The Board expects 2012 still to be a volatile and a challenging year. The
Company is well prepared to face the market challenges.
DIVIDEND DISTRIBUTION PROPOSAL
The Board of Directors will propose to the Annual Shareholders' Meeting that no
dividend be paid out for 2011 due to the still uncertain financial business
environment and the ongoing investment programme.
ANNUAL GENERAL MEETING
Finnlines Plc's Annual General Meeting will be held from 12.00 on Tuesday 17
April 2012 at the Scandic Marina Congress Center, Katajanokanlaituri 6,
Helsinki.
The financial statements, the Board of Directors' Report and the annual report
for 2011 will be published during the week commencing on 26 March 2012 at the
latest and will be available at www.finnlines.com or at Finnlines'
headquarters, Porkkalankatu 20 A, Helsinki.
The first interim report of 2012, for 1 January - 31 March, will be published
on Thursday, 10 May 2012.
Finnlines Plc
The Board of Directors
Uwe Bakosch
President/CEO
ENCLOSURES
- Consolidated statement of comprehensive income, IFRS
- Consolidated statement of financial position, IFRS
- Consolidated statement of changes in equity, IFRS
- Consolidated cash flow statement, IFRS (condensed)
- Revenue and result by business segments
- Property, plant and equipment
- Contingencies and commitments
- Revenue and result by quarter
- Shares, market capitalisation and trading information
- Calculation of ratios
DISTRIBUTION
NASDAQ OMX Helsinki Ltd.
Main media
The information is unaudited.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, IFRS
EUR 1,000 1 Oct - 31 1 Oct - 31 1 Jan - 31 1 Jan - 31
Dec 2011 Dec 2010 Dec 2011 Dec 2010
Revenue 144,824 139,276 605,208 561,108
Other income from operations 1,025 1,042 2,515 4,287
Materials and services -62,841 -53,484 -247,262 -202,964
Personnel expenses -26,464 -29,905 -107,948 -110,635
Depreciation, amortisation and -16,019 -15,551 -63,512 -60,322
write-offs
Other operating expenses -42,164 -40,910 -167,972 -165,850
Total operating expenses -147,488 -139,850 -586,695 -539,770
Result before interest and taxes -1,639 468 21,028 25,625
(EBIT)
Financial income 462 554 911 3,793
Financial expenses -6,979 -5,903 -27,370 -25,734
Result before taxes -8,155 -4,881 -5,431 3,683
Income taxes * 5,028 1,752 2,925 -1,450
Result for the reporting period -3,128 -3,129 -2,506 2,234
Other comprehensive income:
Exchange differences on 2 51 -3 -7
translating foreign operations
Changes in cash flow hedging
reserve
Fair value changes 306 304 -95 1,418
Transfer to fixed assets 2,004
Tax effect, net -79 -79 -496 -369
Effect of the tax rate change -48 -48
Total comprehensive income for -2,947 -2,853 -1,145 3,276
the reporting period
Result for the reporting period
attributable to:
Parent company shareholders -3,128 -3,158 -2,517 2,243
Non-controlling interests 0 29 10 -9
-3,128 -3,129 -2,506 2,234
Total comprehensive income for
the reporting period
attributable to:
Parent company shareholders -2,947 -2,882 -1,155 3,285
Non-controlling interests 0 29 10 -9
-2,947 -2,853 -1,145 3,276
Result for the reporting period
attributable to parent company
shareholders calculated as
earnings per share (EUR/share):
Undiluted/ diluted earnings per -0.07 -0.07 -0.05 0.05
share
Average number of shares:
Undiluted/ diluted 46,821,037 46,821,037 46,821,037 46,821,037
* In Finland, the corporate tax rate was decreased to 24.5 per cent from 26 per
cent starting 1 January 2012. In 2011, the one-time positive effect of the tax
rate change is EUR 3.3 million.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION, IFRS
EUR 1,000 31 Dec 2011 31 Dec 2010
ASSETS
Non-current assets
Property, plant and equipment 1,258,306 1,263,626
Goodwill 105,644 105,644
Intangible assets 8,049 9,736
Investment properties 0
Share of associated companies 0
Other financial assets 4,582 4,562
Receivables 1,250 1,820
Deferred tax assets 4,395 4,225
1,382,225 1,389,613
Current assets
Inventories 8,903 6,567
Accounts receivable and other receivables 76,660 69,900
Income tax receivables 73 82
Bank and cash 4,263 6,452
89,898 83,001
Total assets 1,472,123 1,472,614
EQUITY
Equity attributable to parent company shareholders
Share capital 93,642 93,642
Share premium account 24,525 24,525
Fair value reserve -2,409 -3,773
Translation differences 114 117
Unrestricted equity reserve 21,015 21,015
Retained earnings 290,017 292,534 426,905 428,060
Non-controlling interests 877 867
Total equity 427,782 428,927
LIABILITIES
Long-term liabilities
Deferred tax liabilities 76,015 89,459
Interest-free liabilities 8 12
Pension liabilities 2,462 2,310
Provisions 4,562 4,562
Interest-bearing liabilities 665,496 701,606
748,544 797,951
Current liabilities
Accounts payable and other liabilities 102,181 88,130
Income tax liabilities 65 104
Provisions 30 30
Current interest-bearing liabilities 193,521 157,473
295,797 245,736
Total liabilities 1,044,341 1,043,687
Total equity and liabilities 1,472,123 1,472,614
CONSOLIDATED statement of changes in equity 2010, IFRS
EUR 1,000 Equity attributable to parent company shareholders
Share Share Translation Fair Unrestricted
capita issue differences value equity
l premium reserves reserve
Equity 1 January 2010 93,642 24,525 124 -4,822 21,015
Comprehensive income
for the reporting
period:
Exchange differences on -7
translating foreign
operations
Changes in cash flow
hedging reserve
Fair value changes 1,418
Tax effect, net -369
Total comprehensive -7 1,049
income for the
reporting period
Equity 31 December 2010 93,642 24,525 117 -3,773 21,015
EUR 1,000 Equity attributable Non-controlling Total
to parent company interests equity
shareholders
Retained Total
earnings
Equity 1 January 2010 290,291 424,775 876 425,651
Comprehensive income for the
reporting period:
Result for the reporting period 2,243 2,243 -9 2,234
Exchange differences on -7 -7
translating foreign operations
Changes in cash flow hedging
reserve
Fair value changes 1,418 1,418
Tax effect, net -369 -369
Total comprehensive income for 2,243 3,285 -9 3,276
the reporting period
Equity 31 December 2010 292,534 428,060 867 428,927
CONSOLIDATED statement of changes in equity 2011, IFRS
EUR 1,000 Equity attributable to parent company shareholders
Share Share Translation Fair Unrestricted
capita issue differences value equity
l premium reserves reserve
Equity 1 January 2011 93,642 24,525 117 -3,773 21,015
Comprehensive income
for the reporting
period:
Exchange differences on -3
translating foreign
operations
Changes in cash flow
hedging reserve
Fair value changes -95
Transfer to fixed 2,004
assets
Tax effect, net -496
Effect of the tax rate -48
change
Total comprehensive -3 1,364
income for the
reporting period
Equity 31 December 2011 93,642 24,525 114 -2,409 21,015
EUR 1,000 Equity attributable Non-controlling Total
to parent company interests equity
shareholders
Retained Total
earnings
Equity 1 January 2011 292,534 428,060 867 428,927
Comprehensive income for the
reporting period:
Result for the reporting period -2,517 -2,517 10 -2,506
Exchange differences on -3 -3
translating foreign operations
Changes in cash flow hedging
reserve
Fair value changes -95 -95
Transfer to fixed assets 2,004 2,004
Tax effect, net -496 -496
Effect of the tax rate change -48 -48
Total comprehensive income for -2,517 -1,155 10 -1,145
the reporting period
Equity 31 December 2011 290,017 426,905 877 427,782
CONSOLIDATED CASH FLOW STATEMENT, IFRS (CONDENSED)
EUR 1,000 1 Jan-31 Dec 1 Jan-31 Dec
2011 2010
Cash flows from operating activities
Result for reporting period -2,506 2,234
Non-cash transactions and other adjustments 85,570 82,484
Changes in working capital 4,840 10,187
Net financial items and income taxes -37,065 -27,118
Net cash generated from operating activities 50,839 67,787
Cash flow from investing activities *
Net investments in tangible and intangible -62,398 -81,839
assets
Disposal of subsidiaries and associated 1,650
companies
Investments in shares -22
Proceeds from sale of investments 59 159
Other investing activities 9,371 2,621
Net cash used in investing activities -52,991 -77,409
Cash flows from financing activities
Loan withdrawals 41,440 44,120
Net increase in current interest-bearing 28,102 33,744
liabilities
Repayment of loans -70,209 -69,379
Increase / decrease in long-term receivables 637 1,482
Net cash from (used in) financing activities -30 9,967
Change in cash and cash equivalents -2,181 344
Cash and cash equivalents 1 January 6,452 6,103
Effect of foreign exchange rate changes -8 5
Cash and cash equivalents at the end of 4,263 6,452
period
* Capitalised borrowing costs amounting to EUR -2,465 thousand (2010: EUR
-2,033 thousand ) are included in investments.
REVENUE AND RESULT BY BUSINESS SEGMENTS
1 Oct-31 Dec 1 Oct-31 Dec 1 Jan-31 Dec 1 Jan-31 Dec
2011 2010 2011 2010
MEUR % MEUR % MEUR % MEUR %
Revenue
Shipping and sea 136.3 94.1 127.9 91.9 563.3 93.1 513.7 91.5
transport services
Port operations 15.3 10.6 18.4 13.2 67.7 11.2 72.3 12.9
Intra-group revenue -6.8 -4.7 -7.0 -5.1 -25.8 -4.3 -24.9 -4.4
External sales 144.8 100.0 139.3 100.0 605.2 100.0 561.1 100.0
Result before interest
and taxes
Shipping and sea 0.9 4.6 30.8 39.3
transport services
Port operations -2.6 -4.2 -9.8 -13.7
Result before interest -1.6 0.5 21.0 25.6
and taxes (EBIT) total
Financial items -6.5 -5.3 -26.5 -21.9
Result before taxes -8.2 -4.9 -5.4 3.7
(EBT)
Income taxes 5.0 1.8 2.9 -1.4
Result for reporting -3.1 -3.1 -2.5 2.2
period
PROPERTY, PLANT AND EQUIPMENT 2010
EUR 1,000 Land Buildin Vessels Machine Advance Total
gs ry and payments
equipme &
nt acquisitions
under constr.
Acquisition cost 1 35 78,943 1,254,854 103,524 133,545 1,570,900
January 2010
Exchange rate 13 13
differences
Increases 18 47,233 154 33,861 81,266
Disposals -37 -405 -3,231 -3,673
Reclassifications 37 355 -355 37
Acquisition cost 31 72 78,923 1,302,037 100,460 167,050 1,648,543
December 2010
Accumulated -7,676 -271,610 -51,557 -330,843
depreciation,
amortisation and
write-offs 1
January 2010
Exchange rate -18 -18
differences
Cumulative 403 3,167 3,570
depreciation on
reclassifications
and disposals
Depreciation for -2,835 -48,585 -6,207 -57,627
the reporting
period
Accumulated -10,510 -319,792 -54,615 -384,917
depreciation,
amortisation and
write-offs 31
December 2010
Book value 31 72 68,413 982,245 45,845 167,050 1,263,626
December 2010
PROPERTY, PLANT AND EQUIPMENT 2011
EUR 1,000 Land Buildin Vessels Machine Advance Total
gs ry and payments
equipme &
nt acquisitions under constr
Acquisition cost 1 72 78,923 1,302,037 100,460 167,050 1,648,543
January 2011
Exchange rate 12 12
differences
Increases 10 6,002 191 57,620 63,823
Disposals -2,175 -191 -10,121 -12,487
Reclassifications 94,082 -94,082 0
Acquisition cost 31 72 76,758 1,401,930 90,543 130,588 1,699,892
December 2011
Accumulated -10,510 -319,792 -54,615 -384,917
depreciation,
amortisation and
write-offs 1
January 2011
Exchange rate -11 -11
differences
Cumulative 532 191 3,824 4,547
depreciation on
reclassifications
and disposals
Depreciation for -2,938 -52,634 -5,633 -61,205
the reporting
period
Accumulated -12,916 -372,235 -56,435 -441,586
depreciation,
amortisation and
write-offs 31
December 2011
Book value 31 72 63,842 1,029,695 34,108 130,588 1,258,306
December 2011
CONTINGENCIES AND COMMITMENTS
EUR 1,000 31 Dec 2011 31 Dec 2010
Minimum leases payable in relation to fixed-term
leases:
Vessel leases (Group as lessee):
Within 12 months 14,785 28,410
1-5 years 14,785
14,785 43,195
Vessel leases (Group as lessor):
Within 12 months 910 1,147
910 1,147
Other leases (Group as lessee):
Within 12 months 6,796 6,658
1-5 years 17,551 18,596
After five years 13,164 15,904
37,511 41,158
Other leases (Group as lessor):
Within 12 months 204 237 204 237
Collateral given
Loans from financial institutions 730,563 727,419
Vessel mortgages provided as guarantees for the above 1,189,500 1,173,500
loans
Other collateral given on own behalf
Pledged deposits 476 472
Corporate mortgages 606 606
1,082 1,078
Other obligations 56,407 103,819
Obligations of parent company on behalf of
subsidiaries
Guarantees 6,913 6,913
VAT adjustment liability related to real estate 9,839 11,134
investments
Open derivative instruments:
Fair value Contract amount
1000 EUR 31 Dec 2011 31 Dec 2010 31 Dec 2011 31 Dec 2010
Currency derivatives 231 657 7,574 22,003
REVENUE AND RESULT BY QUARTER
MEUR Q1/11 Q1/10 Q2/11 Q2/10 Q3/11 Q3/10 Q4/11 Q4/10
Shipping and sea 126.5 110.9 148.9 138.9 151.7 135.9 136.3 127.9
transport services
Port operations 18.7 14.8 18.0 21.5 15.7 17.7 15.3 18.4
Intra-group revenue -6.1 -4.2 -6.6 -7.5 -6.2 -6.1 -6.8 -7.0
External sales 139.0 121.5 160.2 152.8 161.2 147.5 144.8 139.3
Result before interest
and taxes
Shipping and sea 2.9 5.9 11.8 16.5 15.2 12.3 0.9 4.6
transport services
Port operations -3.0 -4.5 -1.9 -2.1 -2.3 -3.0 -2.6 -4.2
Result before interest -0.1 1.4 9.9 14.4 12.9 9.3 -1.6 0.5
and taxes (EBIT) total
Financial items -6.0 -5.3 -7.1 -5.2 -6.8 -6.1 -6.5 -5.3
Result before taxes -6.1 -3.8 2.7 9.2 6.1 3.2 -8.2 -4.9
(EBT)
Income taxes 1.5 0.6 -1.5 -2.4 -2.1 -1.4 5.0 1.8
Result for the reporting -4.6 -3.3 1.2 6.8 4.0 1.8 -3.1 -3.1
period
EPS (undiluted/ -0.10 -0.07 0.03 0.15 0.08 0.04 -0.07 -0.07
undiluted)
SHARES, MARKET CAPITALISATION AND TRADING INFORMATION
31 December 2011 31 December 2010
Number of shares 46,821,037 46,821,037
Market capitalisation,EUR million 360.5 373.2
1 Jan - 31 Dec 2011 1 Jan - 31 Dec 2010
Number of shares traded, million 1.5 2.9
1 Jan - 31 Dec 2011
High Low Average Close
Share price 8.15 7.00 7.77 7.70
CALCULATION OF RATIOS
Earnings per share (EPS), EUR :
Result attributable to parent company shareholders
----------------------------------------------------------------------
Weighted average number of outstanding shares
Shareholders' equity per share, EUR :
Shareholders' equity attributable to parent company shareholders
--------------------------------------------------------------------------------
---------
Undiluted number of shares at the end of period
Gearing, %:
Interest-bearing liabilities - cash and bank equivalents
--------------------------------------------------------------------------- X
100
Total equity
Equity ratio, %:
Total equity
---------------------------------------------- X 100
Assets total - received advances
Taxes corresponding to the result for the reporting period are presented as
income taxes in the interim report.
RELATED PARTY TRANSACTIONS
As from autumn 2011 Finnlines Group has chartered out one ro-pax vessel to the
Grimaldi Group. The charter hire contract is not exceeding one year's time and
is done at current market price level.
Otherwise there were no material related party transactions during the
reporting period. The business transactions were carried out using market-based
pricing.
REPORTING AND ACCOUNTING POLICIES
This bulletin and the interim report included herein are prepared in accordance
with IAS 34 (Interim Financial Reporting) standard. The Company has adopted new
or revised IFRS standards and IFRIC interpretations from beginning of the
reporting period corresponding to those described in the 2010 Financial
Statements. These new or revised standards have not had an effect on the
reported figures. In other respects, the same accounting policies have been
followed as in the previous annual financial statements. All figures in the
accounts have been rounded and consequently the sum of individual figures can
deviate from the presented sum figure.
The preparation of the financial statements in accordance with IFRS requires
management to make estimates and assumptions that affect the valuation of the
reported assets and liabilities and other information such as contingent
liabilities and the recognition of income and expenses in the income statement.
Although the estimates are based on the management's best knowledge of current
events and actions, actual results may differ from the estimates.
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