2015-11-12 14:30:16 CET
2015-11-12 14:31:18 CET
REGLERAD INFORMATION
Finnlines - Interim report (Q1 and Q3)
Finnlines Plc Interim Report January-September 2015 (unaudited)
Helsinki, Finland, 2015-11-12 14:30 CET (GLOBE NEWSWIRE) -- FINNLINES PLC
INTERIM REPORT JANUARY-SEPTEMBER 2015 (unaudited)
Stock Exchange Release 12 November 2015 at 15:30
JANUARY-SEPTEMBER 2015: Result improved to EUR 41.1 million, an increase of
23.8 per cent
- Revenue EUR 390.3 (413.8 prev. year) million, decrease 5.7 per cent, partly
due to the reduction of cargo related bunker surcharge
- Result before interest, taxes, depreciation and amortisation (EBITDA) EUR
94.7 (91.5) million, increase 3.5 per cent
- Result for the reporting period EUR 41.1 (33.2) million, increase 23.8 per
cent
- Earnings per share were 0.80 (0.64) EUR/share
- Interest-bearing debt decreased EUR 65.8 million and was EUR 561.4 (627.1)
million at the end of the period
JULY-SEPTEMBER 2015: Best quarterly result ever EUR 24.7 million, earnings per
share up by 37 per cent
- Revenue EUR 138.2 (143.7 prev. year) million, decrease 3.8 per cent, partly
due to the reduction of cargo related bunker surcharge
- Result before interest, taxes, depreciation and amortisation (EBITDA) EUR
43.2 (36.9) million, increase 17.1 per cent
- Result for the reporting period EUR 24.7 (18.1) million, increase 36.0 per
cent
- Earnings per share were 0.48 (0.35) EUR/share
KEY FIGURES
MEUR 1-9 2015 1-9 2014 7-9 2015 7-9 2014 1-12 2014
Revenue 390.3 413.8 138.2 143.7 532.9
Result before interest, 94.7 91.5 43.2 36.9 115.4
taxes, depreciation and
amortisation (EBITDA)
Result before interest and 53.0 48.1 29.0 22.9 58.6
taxes (EBIT)
% of revenue 13.6 11.6 21.0 15.9 11.0
Result for the reporting 41.1 33.2 24.7 18.1 41.7
period
EPS, EUR 0.80 0.64 0.48 0.35 0.81
Shareholders' equity/share, 10.58 9.63 10.58 9.63 9.78
EUR
Equity ratio, % 43.7 38.6 43.7 38.6 41.7
Interest bearing debt, MEUR 561.4 627.1 561.4 627.1 552.5
Gearing, % 106.0 130.0 106.0 130.0 113.0
EMANUELE GRIMALDI, PRESIDENT AND CEO, IN CONJUNCTION WITH THE REVIEW:
January-September performance continued to be very strong and stems from
prudent actions taken during the past years
”The third quarter result for the reporting period, EUR 24.7 million, is the
best result ever. The January-September result for the reporting period EUR
41.1 million is a very strong achievement taken into account the slowdown of
Finnish economy, the Russian sanctions and upgrade dockings on 17 vessels.
Finnlines Group's continued strong performance stems from several past actions
taken, some being more strategic decisions and some being more operational
decisions. First of all, the Group has invested over EUR 1 billion on its fleet
over the past ten years, and now has the youngest and most modern fleet in the
Baltic Sea of all competitors. Secondly, this EUR 1 billion investment
programme has been coupled with a strategic decision to own all vessels and to
cease to charter a single vessel. This gives the required flexibility to manage
the vessel capacity more optimally in this cyclical business. The Company is no
longer dependent on a volatile charter market and can buy vessels which best
meet its customer needs and are cost-efficient to operate. In turn, it can sell
the vessels that are not cost-efficient or do not meet the Company's ROCE
targets. Thirdly, the Group focused along the years to improve its financial
position and strengthen its balance sheet by reserving all excess cash flow
left after implementing a simultaneous and extensive EUR 1 billion capex
programme to reduce its interest bearing debt and improve its equity ratio.
Fourthly, we continue our EUR 100 million Environmental Technology Investment
Programme by installing scrubbers to the remaining vessels, investing in
propulsion and re-blading, and silicon-paint hull projects for better fuel
economy and for the environment. Fifthly, the ongoing Turnaround Programme has
resulted in a great improvement of our operational efficiency and cost
efficiency, but we need to continue to focus on costs in every area also in the
future.
More importantly, Finnlines, belonging to Grimaldi Group, one of Europe's
strongest shipping companies with a proven track record when measured against
its global peers, is today a successful, profitable, cost-efficient,
environmental-friendly, technically, operationally and financially sound
company. Finnlines being ranked as one of the best performing listed shipping
companies in 2014, has only been possible through the long-term prudent actions
taken over the past years as described above. All the aforementioned has
impacted our today's share price and has generated the best shareholder value
to all of our shareholders - being small or large.”
FINNLINES PLC, INTERIM REPORT JANUARY-SEPTEMBER 2015 (unaudited)
FINNLINES' BUSINESS
Finnlines is the largest shipping company in the Baltic Sea based on both ro-ro
and ro-pax volumes (source: Baltic Transportation Journal). The Company's
passenger-freight vessels offer services from Finland to Germany and via the
Åland Islands to Sweden, as well as from Sweden to Germany. Finnlines' ro-ro
vessels operate in the Baltic Sea and the North Sea. The Company has
subsidiaries in Germany, Belgium, Great Britain, Sweden, Denmark and Poland,
which all are also sales offices. In addition to sea transportation, the
Company provides port services in Helsinki and Turku.
GROUP STRUCTURE
Finnlines Plc is a Finnish listed company. At the end of the reporting period,
the Group consisted of the parent company and 21 subsidiaries.
Finnlines is part of the Italian Grimaldi Group, which is a global logistics
group specialising in maritime transport of cars, rolling cargo, containers and
passengers. The Grimaldi Group comprises seven shipping companies, including
Finnlines, Atlantic Container Line (ACL), Malta Motorways of the Sea (MMS) and
Minoan Lines. With an owned fleet of about 110 vessels, the Group provides
maritime transport services for rolling cargo and containers between North
Europe, the Mediterranean, the Baltic Sea, West Africa, North and South
America. It also offers passenger services within the Mediterranean and Baltic
Sea. With 80.74 per cent (on 30 September 2015) of the shares, the Grimaldi
Group is the biggest shareholder in Finnlines Plc.
GENERAL MARKET DEVELOPMENT
Based on the statistics by the Finnish Transport Agency for January-August, the
Finnish seaborne imports carried in container, lorry and trailer units
decreased by 4 per cent whereas exports increased by 3 per cent (measured in
tons) compared to the same period in 2014. During the same period private and
commercial passenger traffic between Finland and Sweden increased by 1 per
cent. Between Finland and Germany the corresponding traffic decreased by 3 per
cent (Finnish Transport Agency).
FINNLINES' TRAFFIC
During the third quarter Finnlines operated on average 23 (24) vessels in its
own traffic.
MS Finnmerchant, operating between Hanko and Rostock, was docked in September
for the installation of exhaust gas cleaning system. During the docking MS
Finneagle moved from Naantali-Kapellskär traffic to Hanko-Rostock line.
The cargo volumes transported during January-September totalled approximately
472 (486 in 2014) thousand cargo units, 112 (61) thousand cars (not including
passengers' cars) and 1,472 (1,803) thousand tons of freight not possible to
measure in units. In addition, some 453 (450) thousand private and commercial
passengers were transported.
FINANCIAL RESULTS
January-September 2015
The Finnlines Group recorded revenue totalling EUR 390.3 (413.8) million, a
decrease of 5.7 per cent compared to the same period in 2014. Shipping and Sea
Transport Services generated revenue amounting to EUR 376.5 (401.9) million and
Port Operations EUR 27.0 (28.6) million. The internal revenue between the
segments was EUR 13.1 (16.7) million, which means that the external revenue of
Port Operations has increased during the reporting period.
Result before interest, taxes, depreciation and amortisation (EBITDA) was EUR
94.7 (91.5) million, an increase of 3.5 per cent.
Result before interest and taxes (EBIT) was EUR 53.0 (48.1) million. The
increased efficiency of the operations in terms of bunker consumption, higher
capacity utilisation of vessels and reduction of costs in many areas has
continued to impact the financial performance of the Group. Despite the
increased efficiency of the operations the result was burdened with several
vessels being docked for the installations of scrubbers and new propulsion
systems during the first quarter.
Net financial expenses decreased and were EUR -13.4 (-16.8) million. Financial
income was EUR 0.5 (0.3) million and financial expenses EUR -14.0 (-17.2)
million. The result for January-September was EUR 41.1 (33.2) million and
earnings per share (EPS) were EUR 0.80 (0.64).
July-September 2015
The Finnlines Group recorded revenue totalling EUR 138.2 (143.7) million, a
decrease of 3.8 per cent compared to the same period in 2014. Shipping and Sea
Transport Services generated revenue amounting to EUR 133.4 (140.0) million.
However, Port Operations revenue increased during the third quarter from EUR
8.5 million to EUR 8.9 million. The internal revenue between the segments was
EUR 4.1 (4.8) million. Compared to the first two quarters the amount of
passengers has increased due to the summer high season.
Result before interest, taxes, depreciation and amortisation (EBITDA) was EUR
43.2 (36.9) million, an increase of 17.1 per cent.
Result before interest and taxes (EBIT) was EUR 29.0 (22.9) million. The
majority of Finnlines' fleet is using cheaper IFO fuel instead of MGO which has
further decreased fuel costs.
Net financial expenses were EUR -4.4 (-5.4) million. Financial income was EUR
0.1 (0.1) million and financial expenses totalled EUR
-4.5 (-5.5) million. The result for July-September was EUR 24.7 (18.1) million,
which is the best quarter ever. Earnings per share (EPS) rose to EUR 0.48
(0.35).
STATEMENT OF FINANCIAL POSITION, FINANCING AND CASH-FLOW
Interest-bearing debt decreased by EUR 65.8 million and amounted to EUR 561.4
(627.1) million. The equity ratio calculated from the balance sheet improved to
43.7 (38.6) per cent and gearing dropped to 106.0 (130.0) per cent. Vessel
lease commitments decreased by EUR 11.5 million to EUR 2.7 million compared to
the end of September 2014.
At the end of the period, cash and deposits together with unused committed
working capital credits amounted to EUR 92.4 (82.0) million.
Net cash generated from operating activities improved markedly and was EUR 66.4
(55.5) million.
CAPITAL EXPENDITURE
Finnlines Group's gross capital expenditure in the reporting period totalled
EUR 65.3 (20.5) million including tangible and intangible assets. Total
depreciation and amortisation amounted to EUR 41.8 (43.4) million. The
investments consist of the purchase of MS Finnmerchant, normal replacement
expenditure of fixed assets, IT investments, scrubber, special coating,
re-blading projects and dry-dockings of ships. In January, Finnlines signed a
purchase agreement of two ro-ro vessels, and paid a part of the purchase price.
The vessels will be delivered at the turn of the year 2015/2016.
In 2014 Finnlines ordered exhaust gas cleaning systems (scrubbers) for ten of
its ro-ro vessels and four of its ro-pax vessels plus propulsion upgrading to
six of its vessels. These retrofits were finalised during winter/spring 2015.
In March 2015, Finnlines launched the second phase of the Finnlines Group's EUR
100 million environmental investment programme by ordering one additional
scrubber for MS Finnmerchant. The installation was finalised in September 2015.
In July 2015, Finnlines placed additional orders for exhaust gas cleaning
systems for two more of its ro-ro vessels and three more of its ro-pax vessels.
Installations will start end of this year and are expected to be finalised in
beginning of May 2016. In addition, Finnlines enlarged its propulsion upgrading
programme in August 2015 by ordering new propeller blades for three of its
ro-pax vessels.
In August 2015, Finnlines also concluded agreements for applying special foul
release coating (silicon paint) to two of its ro-pax vessels deployed on
Sweden-Germany route. The hull treatment of the ro-pax vessels was finalised in
beginning of October 2015.
PERSONNEL
The Group employed an average of 1,612 (1,729) persons during the period,
consisting of 704 (778) persons on shore and 908 (951) persons at sea. The
average number of shore personnel decreased mostly due to employee reductions
in Port Operations. The number of sea personnel decreased due to employee
reductions concerning MS Finnhansa and MS Finnsailor. The number of persons
employed at the end of the period was 1,584 (1,628) in total, of which 712
(709) on shore and 872 (919) at sea. The personnel expenses (including social
costs) for the reporting period were EUR -62.7 (-67.2) million.
THE FINNLINES SHARE
The Company's registered share capital on 30 September 2015 was EUR 103,006,282
divided into 51,503,141 shares. A total of 0.5 (4.0) million shares were traded
on the NASDAQ OMX Helsinki during January-September. The market capitalisation
of the Company's stock at the end of September was EUR 824.1 (772.5) million.
Earnings per share (EPS) were EUR 0.80 (0.64). Shareholders' equity per share
was EUR 10.58 (9.63). At the end of the reporting period, the Grimaldi Group's
holding and share of votes in Finnlines was 80.74 per cent.
RISKS AND RISK MANAGEMENT
Finnlines is exposed to business risks that arise from the capacity of the
fleet existing in the market, counterparties, prospects for export and import
of goods, and changes in the operating environment. The risk of overcapacity is
reduced when the aging vessels are scrapped, on the one hand, and as more
stringent sulphur directive requirements have come into force, on the other.
Finnlines operates mainly in the Emissions Control Areas where the emission
regulations are stricter than globally. The sulphur content limit for heavy
fuel oil was reduced to 0.1 per cent as from 1.1.2015 in accordance with the
MARPOL Convention. This increases costs of sea transportation. However, with
one of the youngest and largest fleets in Northern Europe and with investments
targeted on engine systems and energy efficiency, Finnlines is in a strong
position to greatly mitigate this risk. The effect of fluctuations in the
foreign trade is reduced by the fact that the Company operates in several
geographical areas. This means that slow growth in one country is compensated
by faster recovery in another. Finnlines continuously monitors the solidity and
payment schedules of its customers and suppliers. Currently, there are no
indications of imminent risks related to counterparties but the Company
continues to monitor the financial position of its counterparties. Finnlines
holds adequate credit lines to maintain liquidity in the current business
environment.
LEGAL PROCEEDINGS
The 2014 Financial statements, published on 24 February 2015, contain a
description of ongoing legal proceedings.
On 27 February 2015, the District Court of Helsinki rendered its decision on
the dispute between Finnlines Plc and the State of Finland. According to
Finnlines Plc 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 been charged excessive fairway dues during 2001-2004. In its decision, the
District Court of Helsinki has ordered the State of Finland to refund to
Finnlines Plc, as plaintiffs, the fairway dues, charged in excessive extent in
the years 2001-2004 totalling about EUR 17.0 million including interest. The
Finnish State has appealed to the Helsinki Court of Appeal. The case is
pending.
The Company's port operation subsidiaries have received summons from 18 former
employees. All employees claim compensation based on groundless termination of
their employment contracts and compensation according to Non-Discrimination
Act. The total amount of the claims is EUR 2.2 million. The subsidiaries
consider the basis of the claims groundless. The processes are under way.
Finnlines Plc's port operation subsidiary Finnsteve Oy Ab ("Finnsteve") has
initiated legal action against the Port of Helsinki Oy (the "Port of
Helsinki"). The action has been initiated due to non-respect of the obligations
from the part of the Port of Helsinki under the operative agreement in force
between the parties concerning the rights of the subsidiary to use the
operative area in the port of Vuosaari. The Port of Helsinki has filed for its
own part after the review period of this interim report an application for a
temporary court order against Finnsteve in the Helsinki District Court. With
the application for an interim court order the Port of Helsinki is requesting a
right to force Finnsteve to empty certain areas in the Vuosaari harbour which
are essential to Finnsteve's business and operations and to oblige Finnsteve to
provide crane services on request by the two cranes owned by Finnsteve to any
third party designated by the Port of Helsinki. The Port of Helsinki has not
given any information showing that there would be any third parties in need of
additional areas or crane services in Vuosaari harbour. The temporary court
order, if granted, would be in force until a final and legally binding
judgement has been received in separate legal proceedings regarding the merits
of the allegations made by the Port of Helsinki. Finnsteve considers the
requests of the Port of Helsinki profoundly groundless and against the terms
and conditions of the agreement in force since 2007 for 20 years between the
Port of Helsinki and Finnsteve. The case is pending.
CORPORATE GOVERNANCE
Finnlines applies the Finnish Corporate Governance Code for listed companies.
The Corporate Governance Statement can be reviewed on the corporate website:
www.finnlines.com.
EVENTS AFTER THE REPORTING PERIOD
The Company has announced on 9 October 2015 that Grimaldi Group has made an
agreement with Mutual Pension Insurance Company Ilmarinen ("Ilmarinen") on the
purchase of Ilmarinen's Finnlines shares, through which Grimaldi Group's
ownership rose to 91.32%.
OUTLOOK AND OPERATING ENVIRONMENT
Finnlines continues its EUR 100 million Environmental Technology Investment
Programme, which is expected to be concluded in spring 2016, and which has
enabled the Company to reduce fuel consumption and fuel costs. The ongoing
Turnaround Programme has resulted in a great improvement of operational
efficiency and cost efficiency. Finnlines Group's result before taxes is
expected to be better in 2015 compared to the same period in the previous year.
The Group Financial Statement bulletin for the period of 1 January-31 December
2015 will be published on Thursday, 25 February 2016.
Finnlines Plc
The Board of Directors
Emanuele Grimaldi
President and CEO
ENCLOSURES
- Reporting and accounting policies
- Consolidated statement of comprehensive income, IFRS
- Consolidated statement of financial position, IFRS
- Consolidated statement of changes in equity, IFRS
- Consolidated cash flow statement, IFRS
- Revenue and result by business segments
- Property, plant and equipment
- Fair value hierarchy
- Contingencies and commitments
- Revenue and result by quarter
- Shares, market capitalisation and trading information
- Events after the reporting period
- Calculation of ratios
- Related party transactions
DISTRIBUTION
NASDAQ OMX Helsinki Ltd.
Main media
This interim report is unaudited.
REPORTING AND ACCOUNTING POLICIES
This interim report included herein is prepared in accordance with IAS 34
(Interim Financial Reporting) standard. The Company adopts new or revised IFRS
standards and IFRIC interpretations from the beginning of the reporting period
corresponding to those described in the 2014 Financial Statements with effect
of 1 January 2015. They did not have any impact on the reported figures.
Finnlines Plc entered into the tonnage taxation regime in January 2013. In
tonnage taxation, shipping operations transferred from taxation of business
income to tonnage-based taxation.
All figures in the accounts have been rounded and, consequently, the sum of
individual figures may deviate from the presented sum figure.
The preparation of the interim financial statements in accordance with IFRS
requires management to make estimates and assumptions and use its discretion in
applying the accounting principles 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. The uncertainties
related to the key assumptions were the same as those applied to the
consolidated financial statements at the year-end
31 December 2014.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, IFRS
EUR 1,000 7-9 2015 7-9 2014 1-9 2015 1-9 2014 1-12 2014
Revenue 138,234 143,673 390,273 413,813 532,889
Other income from 537 888 1,252 3,057 6,776
operations
Materials and -40,463 -50,535 -126,461 -149,296 -191,445
services
Personnel expenses -19,937 -19,933 -62,669 -67,150 -88,418
Depreciation, -14,212 -14,079 -41,755 -43,384 -56,843
amortisation and
impairment losses
Other operating -35,127 -37,159 -107,655 -108,927 -144,396
expenses
Total operating -109,739 -121,706 -338,539 -368,757 -481,102
expenses
Result before 29,032 22,855 52,986 48,113 58,563
interest and taxes
(EBIT)
Financial income 77 146 547 342 483
Financial expenses -4,451 -5,498 -13,965 -17,181 -22,412
Result before taxes 24,659 17,502 39,567 31,273 36,634
(EBT)
Income taxes 25 645 1,529 1,910 5,079
Result for the 24,683 18,147 41,096 33,183 41,713
reporting period
Other comprehensive
income:
Other comprehensive
income to be
reclassified to
profit and loss in
subsequent periods:
Exchange differences -18 15 30 34 69
on translating
foreign operations
Tax effect, net -4 -6
Other comprehensive -18 11 30 28 69
income to be
reclassified to
profit and loss in
subsequent periods,
total
Other comprehensive
income not being
reclassified to
profit and loss in
subsequent periods:
Remeasurement of -844
defined benefit
plans
Tax effect, net * 0 212 353
Other comprehensive 0 212 -491
income not being
reclassified to
profit and loss in
subsequent periods,
total
Total comprehensive 24,665 18,158 41,126 33,422 41,291
income for the
reporting period
Result for the
reporting period
attributable to:
Parent company 24,672 18,132 41,112 33,193 41,726
shareholders
Non-controlling 11 15 -16 -10 -13
interests
24,683 18,147 41,096 33,183 41,713
Total comprehensive
income for the
reporting period
attributable to:
Parent company 24,654 18,143 41,142 33,432 41,304
shareholders
Non-controlling 11 15 -16 -10 -13
interests
24,665 18,158 41,126 33,422 41,291
Result for the
reporting period
attributable to
parent company
shareholders
calculated as
earnings per share
(EUR/share):
Undiluted / diluted 0.48 0.35 0.80 0.64 0.81
earnings per share
Average number of
shares:
Undiluted / diluted 51,503,141 51,503,141 51,503,141 51,503,141 51,503,141
The majority of amounts included in Comprehensive income relates to tonnage tax
scheme.
* Tax asset has been posted from remeasurement because Finnlines Deutschland
GmbH transferred from tonnage-based taxation to business taxation at the end of
January 2014. The company entered into business taxation as from 1 February
2014.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION, IFRS
EUR 1,000 30 Sep 2015 30 Sep 2014 31 Dec 2014
ASSETS
Non-current assets
Property, plant and equipment 1,012,706 986,021 983,183
Goodwill 105,644 105,644 105,644
Intangible assets 4,656 5,717 5,500
Other financial assets 4,576 4,580 4,576
Receivables 838 1,018 838
Deferred tax assets 6,050 1,599 5,353
1,134,469 1,104,579 1,105,092
Current assets
Inventories 5,251 8,496 5,926
Accounts receivable and other 91,092 97,011 76,480
receivables
Income tax receivables 475 185 1
Cash and cash equivalents 2,245 2,454 2,680
99,063 108,145 85,086
Non current assets held for sale 15,121 74,086 20,297
Total assets 1,248,653 1,286,810 1,210,475
EQUITY
Equity attributable to parent
company shareholders
Share capital 103,006 103,006 103,006
Share premium account 24,525 24,525 24,525
Translation differences 207 136 178
Fund for invested unrestricted equity 40,016 40,016 40,016
Retained earnings 376,988 328,046 335,876
544,743 495,730 503,601
Non-controlling interests 289 308 306
Total equity 545,033 496,038 503,907
LIABILITIES
Long-term liabilities
Deferred tax liabilities 55,163 55,596 56,102
Other long-term liabilities 125 2,550 163
Pension liabilities 4,697 3,961 4,705
Provisions 1,783 1,889 1,844
Loans from financial institutions 392,406 485,988 420,722
454,175 549,983 483,536
Current liabilities
Accounts payable and other liabilities 61,920 79,589 71,565
Current tax liabilities 0 16 72
Provisions 211 103 81
Loans from financial institutions 179,618 152,560 142,967
241,749 232,268 214,685
Total liabilities 695,923 782,251 698,220
Liabilities related to long-term 7,696 8,521 8,348
assets held for sale
Total equity and liabilities 1,248,653 1,286,810 1,210,475
CONSOLIDATED statement of changes in equity 2014, IFRS
EUR 1,000 Equity attributable to parent company
shareholders
Share Share Transl Unre- Re- Total Non-co Total
capital issue a stric tained n equity
pre- tion ted ear- trolli
mium dif equity nings ng
ferenc re- intere
es serve sts
Reported 103,006 24,525 109 40,016 294,641 462,297 360 462,658
equity 1
January
2014
Compre-
hensive
income for
the repor-
ting period:
Result for 33,193 33,193 -10 33,183
the repor-
ting period
Exchange 34 34 34
dif-
ferences on
trans-
lating
foreign
opera-
tions
Tax effect, -6 212 206 206
net
Total 28 33,405 33,433 -10 33,422
compre-
hensive
income
for the
repor-
ting period
Dividend -42 -42
Equity 30 103,006 24,525 136 40,016 328,046 495,730 308 496,038
Septem-
ber 2014
CONSOLIDATED statement of changes in equity 2015, IFRS
EUR 1,000 Equity attributable to parent company
shareholders
Share Share Transl Unre- Re- Total Non-co Total
capital issue a stric tained n equity
pre- tion ted ear- trolli
mium dif- equity nings ng
ferenc re- inte
es serve rests
Reported 103,006 24,525 178 40,016 335,876 503,601 306 503,907
equity 1
January
2015
Compre-
hensive
income for
the repor-
ting period:
Result for 41,112 41,112 -16 41,096
the repor-
ting period
Exchange 30 30 30
differences
on trans-
lating
foreign
opera-
tions
Tax effect,
net
Total 30 41,112 41,142 -16 41,126
compre-
hensive
income
for the
repor-
ting period
Dividend
Equity 30 103,006 24,525 207 40,016 376,988 544,743 289 545,033
Septem-
ber 2015
CONSOLIDATED CASH FLOW STATEMENT, IFRS
EUR 1,000 1-9 2015 1-9 2014 1-12 2014
Cash flows from operating activities
Result for the reporting period 41,096 33,183 41,713
Adjustments:
Non-cash transactions 41,476 41,788 51,987
Unrealised foreign exchange -6 -45 -28
gains (-) / losses (+)
Financial income and expenses 13,424 16,884 21,957
Taxes -1,529 -1,910 -5,079
Changes in working capital:
Change in accounts receivable -15,023 -16,676 4,855
and other receivables
Change in inventories 675 336 2,906
Change in accounts payable and 1,324 4,934 -9,435
other liabilities
Change in provisions -119 -113 -207
Interest paid -12,283 -15,983 -18,742
Interest received 323 113 141
Taxes paid * -84 -3,885 -3,990
Other financing items -2,858 -3,080 -3,970
Net cash generated from operating activities 66,416 55,547 82,108
Cash flow from investing activities
Investments in tangible and -71,161 -16,689 -29,575
intangible assets
Proceeds from sale of tangible assets 195 7,801 69,590
Proceeds from sale of investments 1
Dividends received 12 13 13
Net cash used in investing activities 70,953 -8,875 40,029
Cash flows from financing activities
Loan withdrawals 245,000 135,475 169,604
Net increase in current interest-bearing 30,867 17,556 7,953
liabilities (+) /
net decrease (-)
Repayment of loans -271,901 -199,166 -298,974
Loans granted -900 -900
Increase (-) / decrease (+) in 135 350 395
long-term receivables
Dividends paid -42 -42
Net cash used in financing activities 4,101 -46,727 -121,964
Change in cash and cash equivalents -436 -55 173
Cash and cash equivalents 2,680 2,508 2,508
1 January
Effect of foreign exchange rate changes 0 0 -1
Cash and cash equivalents at 2,245 2,454 2,680
the end of period
* Taxes paid in 2014 include Finnlines Deutschland GmbH's payment of tax
provision EUR 3.6 million.
REVENUE AND RESULT BY BUSINESS SEGMENTS
7-9 2015 7-9 2014 1-9 2015 1-9 2014 1-12 2014
MEUR % MEUR % MEUR % MEUR % MEUR %
Reve
nue
Ship 133.4 96.5 140.0 97.4 376.5 96.5 401.9 97.1 517.4 97.1
ping and
sea
transport
ser
vices
Port 8.9 6.5 8.5 5.9 27.0 6.9 28.6 6.9 36.9 6.9
operation
s
In -4.1 -3.0 -4.8 -3.3 -13.1 -3.4 -16.8 -4.0 -21.3 -4.0
tra-group
re
venue
External 138.2 100.0 143.7 100.0 390.3 100.0 413.8 100.0 532.9 100.0
sales
Re-
sult be
fore
interest
and taxes
Ship 29.0 22.1 54.1 49.8 61.6
ping and
sea
transport
ser
vices
Port 0.1 0.7 -1.1 -1.7 -3.1
operations
Re 29.0 22.8 53.0 48.1 58.6
sult be
fore
interest
and
taxes
(EBIT)
total
Financial -4.4 -5.3 -13.4 -16.8 -21.9
items
Result be 24.7 17.5 39.6 31.3 36.6
fore taxes
(EBT)
In 0 0.6 1.5 1.9 5.1
come taxes
Re 24.7 18.1 41.1 33.2 41.7
sult for
the
reporting
period
PROPERTY, PLANT AND EQUIPMENT 2015
EUR 1,000 Land Buil- Vessels Machi- * Advance Total
dings nery and payments
equip- &
ment acquisi-
tions under
construc-
tion
Acquisition 72 72,773 1,287,982 66,273 25,928 1,453,028
cost 1 January
2015
Exchange rate 29 29
differences
Increases 45,282 241 19,194 64,718
Disposals -424 -429 -853
Reclassifi- 20,578 9 -20,586 0
cations
Reclassifi- -4,369 -22,395 -26,763
cations to
non-current
assets held for
sale
Acquisition 72 68,404 1,353,417 43,728 24,537 1,490,158
cost 30 September
2015
Accumulated -17,341 -389,749 -42,459 -449,549
depreciation,
amortisation and
write-offs
1 January 2015
Exchange rate -27 -27
differences
Cumulative 424 429 853
depreciation
on reclassify-
cations and
disposals
Depreciation -1,651 -37,871 -851 -40,373
for the reporting
period
Accumulated -18,991 -427,196 -42,907 -489,095
depreciation,
amortisation and
write-offs
30 September 2015
Reclassifi- 1,132 10,510 11,642
cation to
non-current
assets
held for sale
Book value 30 72 50,545 926,221 11,331 24,537 1,012,706
September 2015
A part of the Port Operations' assets, book value of 15.1 million euros, is
continued to be classified as assets held for sale.
* Includes mainly advance payments for the scrubber systems.
PROPERTY, PLANT AND EQUIPMENT 2014
EUR 1,000 Land Buil- Vessels Machi- Advance Total
dings nery and payments
equip- &
ment acquisi-
tions under
construc-
tion
Acquisition 72 75,271 1,372,769 73,122 398 1,521,632
cost 1 January
2014
Exchange rate 36 36
differences
Increases 4,068 116 15,664 19,849
Disposals -2,062 -261 -6,698 -9,021
Reclassifi- -4,369 -94,603 -22,395 -121,367
cations to
non-current
assets held
for sale
Acquisition 72 68,840 1,281,974 44,181 16,062 1,411,128
cost 30 September
2014
Accumulated -16,316 -373,866 -47,060 -437,243
depreciation,
amortisation and
write-offs
1 January 2014
Exchange rate -33 -33
differences
Cumulative 1,012 261 6,223 7,496
depreciation
on reclassify-
cations and
disposals
Depreciation -1,815 -39,060 -1,733 -42,609
for the reporting
period
Accumulated -17,119 -412,666 -42,603 -472,388
depreciation,
amortisation and
write-offs
30 September 2014
Reclassifi- 1,132 35,638 10,510 47,280
cation to
non-current
assets
held for sale *
Book value 30 72 52,853 904,946 12,088 16,062 986,021
September 2014
* In 2014, Finnlines Group's Port Operations were negotiating to sell port
assets with book value of around EUR 15.4 million. No impairment losses have
been recognized on the carrying amount of the assets of EUR 15.4 million.
FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or
liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (i.e., as prices) or
indirectly (i.e., derived from prices).
The Group has loans from financial institutions and pension loans belonging to
level 2. There is no material difference between carrying values and fair
values of these instruments.
Level 3 - Inputs for the asset or liability that are not based on observable
market data (unobservable inputs).
There are no instruments in this category.
During 2015 and the previous year there has been no transfers to or from the
fair value hierarchy level 3.
CONTINGENCIES AND COMMITMENTS
EUR 1,000 30 Sep 2015 30 Sep 2014 31 Dec 2014
Minimum leases payable in relation
to fixed-term leases:
Vessel leases (Group as lessee):
Within 12 months 2,683 11,492 11,409
1-5 years 0 2,683
2,683 14,175 11,409
Vessel leases (Group as lessor)*:
Within 12 months 2,105 2,446 0
1-5 years 7,370 5,847 0
9,475 8,293 0
Other leases (Group as lessee):
Within 12 months 6,182 6,307 6,366
1-5 years 14,465 17,619 17,128
After five years 8,202 10,117 9,274
28,849 34,043 32,768
Other leases (Group as lessor):
Within 12 months 259 245 250
1-5 years 9
268 245 250
Collateral given
Loans from financial institutions 453,539 520,024 477,054
Vessel mortgages provided as 973,000 1,035,000 1,035,000
guarantees for the above loans
Other collateral given on own behalf
Cash deposit 1,700 0
Corporate mortgages 0 606 0
1,700 606 0
Other obligations ** 35,425 43,782 35,453
VAT adjustment liability related 4,350 5,674 5,322
to real estate investments
* A long-term bareboat agreement was terminated on 17.12.2014 due to the sale
of the vessel, and another bareboat agreement was made during the first quarter
of 2015.
** Includes scrubber system, re-blading obligations and vessel investments.
REVENUE AND RESULT BY QUARTER
MEUR Q1/15 Q1/14 Q2/15 Q2/14 Q3/15 Q3/14
Shipping and sea transport 112.9 122.8 130.2 139.1 133.4 140.0
services
Port operations 8.3 10.0 9.7 10.2 8.9 8.5
Intra-group revenue -4.4 -6.0 -4.6 -5.9 -4.1 -4.8
External sales 116.8 126.8 135.2 143.3 138.2 143.7
Result before interest
and taxes
Shipping and sea transport 5.0 7.3 20.2 20.4 29.0 22.1
services
Port operations -1.1 -1.8 -0.1 -0.6 0.1 0.7
Result before interest and 3.9 5.4 20.1 19.8 29.0 22.8
taxes (EBIT) total
Financial items -4.3 -5.8 -4.8 -5.7 -4.4 -5.3
Result before taxes (EBT) -0.4 -0.4 15.3 14.1 24.7 17.5
Income taxes 1.0 0.7 0.5 0.6 0 0.6
Result for the reporting 0.6 0.3 15.8 14.7 24.7 18.1
period
EPS (undiluted / diluted)* 0.01 0.01 0.31 0.29 0.48 0.35
* Key indicators per share have been adjusted with the share issue adjustment
factor.
SHARES, MARKET CAPITALISATION AND TRADING INFORMATION
30 Sep 2015 30 Sep 2014
Number of shares 51,503,141 51,503,141
Market capitalisation, EUR million 824.1 772.5
1-9 2015 1-9 2014
Number of shares traded, million 0.5 4.0
1-9 2015
High Low Average Close
Share price 18.00 14.34 16.16 16.00
EVENTS AFTER THE REPORTING PERIOD
The Company has announced on 9 October 2015 that Grimaldi Group has made an
agreement with Mutual Pension Insurance Company Ilmarinen ("Ilmarinen") on the
purchase of Ilmarinen's Finnlines shares, through which Grimaldi Group's
ownership rose to 91.32%.
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
Income tax expense is recognised based on the best estimate of the
weighted-average annual income tax rate expected for the full financial year.
In January 2013, the shipping operations of Finnlines Plc transferred to
tonnage-based taxation.
At the end of January 2014, Finnlines Deutschland GmbH transferred from
tonnage-based taxation to business taxation. The company entered into business
taxation as from 1 February 2014.
RELATED PARTY TRANSACTIONS
There were no material related party transactions during the reporting period.
The business transactions were carried out using market-based pricing.
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