2011-03-02 14:41:43 CET
2011-03-02 14:42:46 CET
REGULATED INFORMATION
Finnlines - Financial Statement Release
Finnlines Plc: FINANCIAL STATEMENT BULLETIN JANUARY-DECEMBER 2010 (Unaudited)
Helsinki, Finland, 2011-03-02 14:41 CET (GLOBE NEWSWIRE) -- Finnlines Plc Stock
Exchange Release II 2 March 2011 at 15:20
FINANCIAL STATEMENT BULLETIN JANUARY-DECEMBER 2010 (Unaudited)
SUMMARY
October- December 2010
-- Revenue EUR 139.3 million (EUR 122.1 million prev. year), increase 14.0%
-- Result before interest, taxes, depreciation and amortisation (EBITDA) EUR
16.0 million (EUR 9.3 million), increase 72.9%
-- Earnings per share were -0.07 (-0.16) EUR/share
January - December 2010
-- Revenue EUR 561.1 million (EUR 494.4 million prev. year), increase 13.5%
-- Result before interest, taxes, depreciation and amortisation (EBITDA) EUR
85.9 million (EUR 37.4 million), increase 129.8%.
-- Earnings per share were 0.05 (-0.96) EUR/share
JANUARY - DECEMBER 2010 IN BRIEF
MEUR 10-12 2010 10-12 2009 1-12 2010 1-12 2009
Revenue 139.3 122.1 561.1 494.4
--------------------------------------------------------------------------------
EBITDA 16.0 9.3 85.9 37.4
Result before interest and taxes 0.5 -5.5 25.6 -23.6
(EBIT)
% of revenue 0.3 -4.5 4.6 -4.8
Result before taxes (EBT) -4.9 -11.2 3.7 -51.4
EPS, EUR * -0.07 -0.16 0.05 -0.96
Equity ratio, % 29.1 29.4 29.1 29.4
Gearing, % 198.8 198.3 198.8 198.3
Shareholders' equity/share, EUR * 9.14 9.07 9.14 9.07
* In 2009, key indicators per share have been retroactively adjusted with the
share issue adjustment factor.
Calculation of key ratios is presented under 'Calculation of ratios'.
GENERAL MARKET DEVELOPMENT
During 2010, the market volumes started to recover from the sharp drop
experienced in 2009, but remained below 2008 levels on an annual basis. Based
on the statistics by the Finnish Maritime Administration (FMA), the Finnish
seaborne imports carried in container, lorry and trailer units increased by 14%
and exports by 13% during January-December 2010 compared to the previous year
(measured in tons). According to the statistics published by Shippax, trailer
and lorry volumes transported by sea between Southern Sweden and Germany
decreased in January-December by 1% compared to 2009. During the same period,
private and commercial passenger traffic between Finland and Germany increased
by 6% and decreased between Finland and Sweden by 2% (FMA).
FINNLINES TRAFFIC
During the first quarter of the year, traffic was influenced by a number of
external disturbances. Severe ice conditions in the northern parts of the
Baltic Sea, stevedores' overtime ban in Finnish ports and the 16-day
stevedoring strike in Finland all caused several temporary schedule changes,
reroutings and stoppages. Especially the stevedores' strike had big impacts as
practically all ro-ro traffic to and from Finnish ports halted during the
strike. By the end of March, the situation normalised and the traffic returned
to the normal pattern.
During the second half of 2010, Finnlines operated on average 24 vessels in its
own traffic, compared to 23 vessels in the same period in 2009. During the
fourth quarter, the Company continued to expand its connections to St.
Petersburg. Besides the Bilbao-Antwerp-Helsinki service to St. Petersburg,
Finnlines launched a new service between the United Kingdom and Russia. In
addition, the number of weekly departures between Germany and Russia increased
to three in the TransRussiaExpress liner service.
The cargo volumes transported during January-December totalled approximately
629,000 (596,000 in 2009) units, 56,000 (38,000) cars (not including
passengers' cars ) and 2,039,000 (2,001,000) tons of freight not possible to
measure in units. In addition, some 648,000 private and commercial passengers
were transported (around 533,000 in 2009), an increase of 22%. Compared to
January-December of 2009, the number of private passengers (excluding lorry
drivers) transported by the Company increased by 44%.
FINANCIAL RESULTS
October - December 2010
The Finnlines Group recorded revenue totalling EUR 139.3 million (122.1), an
increase of 14.0% compared to the same period in 2009. Shipping and Sea
Transport Services generated revenue amounting to EUR 127.9 million (111.3) and
Port Operations EUR 18.4 million (16.8). The internal revenue between the
segments was EUR 7.0 million (5.9).
Result before interest, taxes, depreciation and amortisation (EBITDA) was EUR
16.0 million (9.3), an increase of 72.9%. Vessel lease expenses decreased by
EUR 6.0 million. Other operating expenses totalled EUR -40.9 million (-43.0).
Result before interest and taxes (EBIT) was EUR 0.5 million (-5.5). Financial
income was EUR 0.6 million (1.0) and financial expenses totalled EUR -5.9
million (-6.7). Result before taxes (EBT) was EUR -4.9 million (-11.2), an
improvement of EUR 6.3 million compared to the same period in 2009. Earnings
per share (EPS) were EUR -0,07 (-0.16).
January - December 2010
The Finnlines Group recorded revenue totalling EUR 561.1 million (494.4), an
increase of 13.5% compared to the same period in 2009. Shipping and Sea
Transport Services generated revenue amounting to EUR 513.7 million (444.9) and
Port Operations EUR 72.3 million (73.2). The internal revenue between the
segments was EUR 24.9 million (23.7). The Port Operations segment was affected
by the stevedores' two-week strike in spring.
Result before interest, taxes, depreciation and amortisation (EBITDA) was EUR
85.9 million (37.4), an increase of 129.8%. Vessel lease expenses decreased by
EUR 27.3 million and amounted to 33.8 million (61.2). Other operating expenses
totalled EUR -165.9 million (-199.1) and included EUR 3.1 million (2.8)
reimbursement of fairway dues and refund on harbour dues EUR 2.7 million (See
Chapter ‘Essential Legal Proceedings').
Result before interest and taxes (EBIT) was EUR 25.6 million (-23.6). Financial
income was EUR 3.8 million (3.9) and financial expenses totalled EUR -25.7
million (-31.7). Result before taxes (EBT) was EUR 3.7 million (-51.4), an
improvement of EUR 55.1 million compared to the same period in 2009. Earnings
per share (EPS) were EUR 0.05 (-0.96).
STATEMENT OF FINANCIAL POSITION, FINANCING AND CASH-FLOW
Interest-bearing net debt increased by EUR 8.5 million compared to end of 2009
and amounted to EUR 852.6 million (844.1). According to the consolidated
statement of financial position the equity attributable to parent company
shareholders equals to EUR 428.1 million at the end of the reporting period.
Distributable funds included in the parent company's shareholders' equity on 31
December 2010 equals to EUR 114.2 million. The equity ratio calculated from the
balance sheet was 29.1% (29.4) and gearing was 198.8% (198.3). Vessel lease
commitments have decreased by EUR 38.6 million from the end of December 2009.
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 147 million. The Company has a commercial paper
programme amounting to EUR 100 million of which the company had issued EUR 17
million at the end of 2010.
In April 2009, Finnlines' subsidiary Hanseatic Shipping sold MS Finnhansa to
Grimaldi Group at the market price of EUR 40 million with a call option to
repurchase the vessel at the same price. This call option was exercised. MS
Finnhansa (renamed Transrussia) was bought in July by Finnlines Deutschland
GmbH and started plying in TransRussiaExpress traffic between Lübeck, Germany
and St. Petersburg, Russia.
CAPITAL EXPENDITURE
Gross capital expenditure in the review period totalled EUR 82.2 million
(28.0), and consists mainly of prepayments for newbuildings (EUR 31.4 million)
and the purchase of Finnhansa vessel (EUR 40.0 million). Depreciation amounted
to EUR 60.1 million (61.0). Finnlines sold the associated company Simonaukion
Pysäköinti Oy in April and also the investment properties in Turku were sold in
2010.
The delivery timetable of the six vessels under construction in China has been
adapted to meet scheduled further redeliveries of the chartered tonnage. The
new delivery times are: vessels Nos. 1 and 2 at the end of the first quarter of
2011, vessels Nos. 3 and 4 during the fourth quarter of 2011, vessel No. 5 at
the end of the third quarter 2012 and vessel No. 6 during the fourth quarter of
2012.
PERSONNEL
The Group employed an average of 2,096 (2,050) persons during 2010, consisting
of 1,141 (1,086) persons on shore and 954 (964) persons at sea. The increase in
the average number of shore personnel was due to two main reasons:in 2010 there
were less temporary layoffs both in the ports and in the offices than in 2009,
and the passenger department's personnel has increased considerably.
The average number of employees has been calculated by converting the regular
working hours performed during the reporting period to correspond to a
full-time employee. The average number of employees was recalculated
accordingly for 2009.
In the middle of December 2010, the Group's port operations companies Finnsteve
Oy Ab, Containersteve Oy Ab and FS-Terminals Oy Ab started employer-employee
adaptation negotiations in the Port of Helsinki according to the collective
agreement of FinnishTransport Workers' Union. Finnsteve and Containersteve had
already earlier started similar negotiations in the ports of Turku and Kotka.
These negotiations concern all personnel groups in all three ports.
Finnsteve-companies employ 700 persons in Helsinki, Turku and Kotka. Finnlines
Plc is the parent company of these stevedoring companies. The co-operation
negotiations with the personnel, which started late 2010 in the ports of Kotka,
Turku and Helsinki, resulted in the termination of about 160 employments in
total.
GROUP STRUCTURE
In 2009, the Group started a significant restructuring process mainly by
merging group companies with an aim to gain efficiencies and a more transparent
group structure. This process continued in 2010: Finnlines Plc acquired all the
shares in the Swedish subsidiary Finnlines Ship Management AB from AB Finnlines
Scandinavia Ltd and Oy Finnlink Ab sold all the shares in its Swedish
subsidiary Finnlink AB to AB Finnlines Scandinavia Ltd. In addition, Oy
Finnlink Ab and Oy Hanseatic Shipping Ab were merged with Finnlines Plc's
Shipping and Sea Transport Services segment. In the Port Operations segment,
Containersteve Oy Ab and Finncare Oy Ab were merged with TBE System Oy Ltd
followed by the rename of the TBE System Oy Ltd to Containersteve Oy Ab, which
continues container handling operations. Further, some smaller subsidiaries
were dissolved.
As a result of the restructuring process the Group consisted of the parent
company and 21 subsidiaries at the beginning of 2011, whereas at the beginning
of 2009 there were 49 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 2010, the focus ofsystem development has been on passenger traffic and procurement.
The new state-of-the-art IT system for day-to-day marketing and sales in
Passenger Services is aimed at enhancing efficiency and improving purchasing
experience for customers. Development of procurement procedures and systems is
done under the Grimaldi Group framework. Best practices of Grimaldi Group's
wide procurement are available, which with local application ensures efficient
local and global sourcing.
Finnlines has ordered six ro-ro vessels from Jinling shipyard in China. For
these newbuildings the R&D engineered a design, which allows substituting the
present vessels with new ones which not only have an average of 1,000 lane
metres of additional capacity but also 9,000 m2 more car capacity thanks to
hoistable decks. These modern ships are being built to ice-class 1A, are
capable of 20 knots, and have capacity for 3,245 lane metres of rolling cargo.
The first two ships will enter Finnlines traffic during spring 2011 and the
rest of the newbuildings later in 2011 and during 2012.
THE FINNLINES SHARE
The Company's registered share capital on 31 December 2010 was EUR 93,642,074
divided into 46,821,037 shares. A total of 2.9 (2.7) 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 373.2 (323.1) million. Earnings
per share (EPS) were EUR 0.05 (-0.96). Shareholders' equity per share was EUR
9.14 (9.07). At the end of the year, Grimaldi Group's holding and share of
votes in Finnlines was 65.84%.
DECISIONS TAKEN BY THE ANNUAL GENERAL MEETING
The Annual General Meeting of Finnlines Plc held in April 2010 approved the
Financial Statements.
The 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 following were re-elected to the Board: Mr Emanuele Grimaldi, Mr
Diego Pacella, Mr Gianluca Grimaldi, Mr Antti Pankakoski, Mr Olav Rakkenes and
Mr Jon-Aksel Torgersen. The Board elected Mr Emanuele Grimaldi Chairman and Mr
Diego Pacella Vice-Chairman.
The Authorized Public Audit Firm Deloitte & Touche Oy was appointed as the
Company's auditors for 2010.
The Annual General Meeting authorised the Board of Directors to decide 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.
RISKS
The Group's business, financial conditions and results could be materially
affected by various risks.
The main business risk in shipping is overcapacity of tonnage. Overall the
global ro-ro market looks better than other maritime transport sectors, where
newbuildings are further increasing the imbalance of supply and demand of
tonnage. For the ro-ro sector this does not apply. Moreover, around 50% of the
current global ro-ro fleet is over 25 years old and needs to be scrapped for
environmental reasons.
Finnlines constantly monitors the stability and the payment behaviour of its
customers and currently there are no significant risks related to this.
Other significant risk factors, which may affect our business are listed below.
The presentation order of the risk factors is not intended to be an indication
of the probability of their occurrence or of their potential impact on our
business.
- Macroeconomic development
- Accidents
- Changes in laws and regulations
- Relations with the trade unions
- Increase in the interest rates
- Increase in the fuel prices
- Market behaviour
Wherever possible, the Company has taken all the measures needed for minimizing
the risks.
ESSENTIAL LEGAL PROCEEDINGS
The Helsinki District Court rendered on 3 March 2010 its judgment in the action
initiated by Mutual Pension Insurance Company Ilmarinen against Finnlines Plc.
The District Court approved Ilmarinen's claim to have the resolution of the
Annual General Meeting 2008 amended so that the minimum dividend instead of EUR
180,216.39 should have been EUR 17,181,000. In addition, the District Court
ordered Finnlines to compensate Ilmarinen's legal costs by an amount of EUR
300,035.15 together with interest at statutory rate. As Finnlines has assessed
Ilmarinen's claim not being justifiable, no amount relating to the claim has
been recorded. Finnlines filed an appeal with the Helsinki Court of Appeal
against the judgement by the Helsinki District Court in April 2010 and the case
is under process.
Taxation of internal vessel sales carried out in 2007 by Finnlines' Swedish
subsidiary includes uncertainties. The decision of the tax authorities was
that a SEK 97.2 million (EUR 9.5) tax debt should be paid. The Company appealed
against this decision and requested postponement of the payment of the tax
debt, which was granted. The Appeal Court rendered its decision on 10 January
2011 in favour of the tax authorities and the tax debt became payable. The
Company submitted on 8 February 2011 the leave for appeal at the Administrative
High Court and extension of the postponement of the payment of the tax debt.
Both submissions are under process. As the Company recorded a deferred tax
liability due to the temporary timing difference in the tax year in question,
this matter does not have any significant effect on the Company's result.
Finnlines addressed material appeals to the Finnish Customs and the Port of
Helsinki for rectification of the paid fairway and port dues based on incorrect
tonnage certificates of the Star-class vessels issued by the Swedish and
Finnish maritime authorities. The Port of Helsinki has refunded the excess paid
harbour dues entirely totalling EUR 2.7 million and Finnish Customs EUR 3.1
million.
Two former and 37 current employees of the Company, represented by the Union of
Salaried Employees, have brought an action against the Company at the District
Court of Helsinki. They claim that the Company is to adhere to the general
increases of the collective agreement and to pay the increases accordingly
retroactively and in the future. The Company considers the claims groundless.
The process is under way.
Finnlines' port operations subsidiaries received summons on 2 February 2011
from 16 employees on weekly resting times and compensation thereof. The claims
derive from years 2008 and 2009. The claims might be amended with claims
arising from 2010 but this is yet uncertain. The claimants also claim penalty
interest and legal expenses. The Company considers the claims groundless. The
process is under way.
Finnlines received information on the last day of January 2010 that the Finnish
Transport Workers' Union (“Union”) has filed legal actions against Finnlines'
port operations subsidiary for compensation of weekend work. The legal actions
are handled in three District Courts in Finland and concern 393 employees of
the port subsidiary represented by the Union. The claim is based on weekly
resting times and compensation thereof. The employees claim that they have not
received sufficient weekly rest/ compensation from 2008-2009. The case raised
in the District Court of Kotka resulted in a judgement by default in favour of
the defendant company. The total amount of all the claims is not firmly
specified by the Union but could now be estimated to be about EUR 0.5 million
in maximum. The Company considers the basis of the actions groundless.
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 been charged excessive fairway dues during 2001-2005. The
Company has been refunded the fairway dues only for 2005, amounting to EUR 2.8
million by the Finnish Customs. The Company is preparing 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 and has not been recognised as revenue. The Company has also filed
applications for reversals in the Supreme Administrative Court concerning the
fairway dues decisions of the Finnish Customs. Any amounts received as a result
of a successful application to the Supreme Administrative Court would be
deducted from the claim for damages or restitution.
ENVIRONMENT AND SAFETY
The objectives of Finnlines' environmental policy are to provide safe,
top-quality services while taking into account the environmental impacts in
every aspect of operations.
Transports and routes are regularly optimised to achieve the highest possible
utilisation rate on both southbound and northbound voyages, which minimises
environmental stress per transported cargo unit. Finnlines is in the process of
looking at effective and technically feasible solutions for reduction of
emissions. The six new ships to be delivered from China in 2011-2012 will be
equipped with a rudder/propeller combination technology that is designed to
achieve a significant decrease in fuel consumption.
Sulphur content of marine fuel has reduced step by step. As of 1 January 2010,
there has been a maximum 0.1 per cent sulphur limit on all marine fuel used in
EU ports while the ship is at berth for at least two hours. Finnlines' ships
have complied with this regulation for many years. In the Emissions Control
Areas, i.e. the Baltic Sea, North Sea and English Channel, the sulphur content
limit for heavy fuel oil was reduced from 1.5 per cent to 1.0 percent on 1 July
2010. Finnlines' ships run on low-sulphur fuel also when operating outside the
Emissions Control Areas.
In 2010, all Finnlines-owned ro-pax and ro-ro ships were incorporated into the
environmental certificate issued by LRQA (Lloyd's Register Quality Assurance).
Finnsteve has also started to build up an environmental system in accordance
with the ISO 14 001 standard.
All vessels have been certified in accordance with the International Safety
Management Code (ISM code). All ships and port facilities also comply with the
requirements of the International Ship and Port Facility Security Code (ISPS).
In its annual report Finnlines publishes a report of environmental and safety
issues.
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
Finnsteve-companies (Finnsteve Oy Ab, Containersteve Oy Ab and FS-Terminals Oy
Ab) started co-operation negotiations in the ports of Kotka, Turku and Helsinki
with all personnel groups during the last quarter of 2010. These negotiations
have resulted in the termination of about 160 employments in total.
FINNLINES PROSPECTS FOR 2011
In 2010 import and export volumes started to recover which influenced
positively the performance of the Company. For 2011 the Company expects that
this positive trend will continue.
The tough competition in the port of Helsinki has negatively influenced the
volumes and the price levels of port operations services.The Port Operations
segment has made significant losses since the opening of the new Vuosaari
Harbour in autumn 2008. The port operation companies have been compelled to cut
the number of personnel, of which
considerable savings are expected. However, substantial part of them will
realise in 2012 due to long notice periods.
During 2011 the Company will take the delivery of major part of its
newbuildings and will during the year have a modern optimized fleet to meet
future demand and challenges. The Company has during 2009 and 2010 been
reshaped and optimized both with respect to efficiency and cost. Based upon the
expected market development and the state of the Company the Board of Directors
expects improved result in 2011.
DIVIDEND DISTRIBUTION PROPOSAL
The Board of Directors will propose to the Annual Shareholders' Meeting that no
dividend be paid out for 2010 due to the still uncertain financial business
environment and the ongoing investment programme. However, the Board expects
dividends to be paid from the financial year 2011 onwards on the condition that
there are no negative surprises in the Company's business environment.
ANNUAL GENERAL MEETING
Finnlines Plc's Annual General Meeting will be held from 12.00 on Tuesday 19
April 2011 at the Radisson Blu Royal Hotel Helsinki, Runeberginkatu 2,
Helsinki.
A shareholder has the right, by virtue of the Limited Liability Companies Act,
to put matters that fall within the competence of the General Meeting on the
agenda of the General Meeting, provided the shareholder makes a written request
to the Board of Directors in time for the matter to be included in the notice
of the meeting.
Possible requests from shareholders to put matters on the agenda of Finnlines
Plc's 2011 Annual General Meeting shall be sent to Finnlines Plc's Board of
Directors not later than 16 March 2011. The request, together with an
explanation or a draft resolution, shall be sent in writing to Finnlines Plc,
Legal Matters, POB 197, 00181 Helsinki, Finland or by e-mail to
ir@finnlines.com.
The financial statements, the Board of Directors' Report and the annual report
for 2010 will be published on 28 March at the latest and will be available at
www.finnlines.com or at Finnlines' headquarters, Porkkalankatu 20 A, Helsinki.
The first interim report of 2011, for 1 January - 31 March, will be published
on Thursday, 19 May 2011.
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
- 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.
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 and a representative office
in Russia. Finnlines is a Finnish listed company and part of the Italian
Grimaldi Group.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, IFRS
EUR 1,000 1 Oct - 31 1 Oct - 31 1 Jan - 31 1 Jan - 31
Dec 2010 Dec 2009 Dec 2010 Dec 2009
Revenue 139,276 122,130 561,108 494,411
--------------------------------------------------------------------------------
Other income from operations 1,042 1,306 4,287 13,413
Materials and services -53,484 -44,635 -202,964 -162,553
Personnel expenses -29,905 -26,515 -110,635 -108,763
Depreciation, amortisation and -15,551 -14,802 -60,322 -61,012
other write-offs
Other operating expenses -40,910 -43,021 -165,850 -199,113
Total operating expenses -139,850 -128,973 -539,770 -531,441
Result before interest and taxes 468 -5,537 25,625 -23,617
(EBIT)
--------------------------------------------------------------------------------
Financial income 554 1,007 3,793 3,922
Financial expenses -5,903 -6,695 -25,734 -31,724
Result before taxes -4,881 -11,225 3,683 -51,419
--------------------------------------------------------------------------------
Income taxes 1,752 3,747 -1,450 9,713
================================================================================
Result for the reporting period -3,129 -7,478 2,234 -41,706
================================================================================
Other comprehensive income:
Exchange differences on 51 30 -7 -255
translating foreign operations
Change in hedging reserve 304 317 1,418 -723
Deferred tax revaluation -1,481 -1,481
Income tax relating to -79 -83 -369 188
components of other
comprehensive income
================================================================================
Total comprehensive income -2,853 -8,694 3,276 -43,977
================================================================================
Result attributable to:
Parent company shareholders -3,158 -7,503 2,243 -41,637
Non-controlling interests 29 24 -9 -69
--------------------------------------------------------------------------------
-3,129 -7,478 2,234 -41,706
--------------------------------------------------------------------------------
Total comprehensive income
attributable to:
Parent company shareholders -2,882 -8,718 3,285 -43,908
Non-controlling interests 29 24 -9 -69
--------------------------------------------------------------------------------
-2,853 -8,694 3,276 -43,977
--------------------------------------------------------------------------------
Result attributable to parent
company shareholders calculated
as earnings per share
(EUR/share):
Undiluted earnings per share * -0.07 -0.16 0.05 -0.96
Diluted earnings per share * -0.07 -0.16 0.05 -0.96
Average number of shares:
Undiluted * 46,821,037 46,821,037 46,821,037 44,384,929
Diluted * 46,821,037 46,821,037 46,821,037 44,384,929
*In 2009, key indicators per share have been retroactively adjusted with the
share issue adjustment factor.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION, IFRS
EUR 1,000 31 Dec 2010 31 Dec 2009
ASSETS
----------------------------------------------------------------------------
Non-current assets
Property, plant and equipment 1,263,626 1,240,057
Goodwill 105,644 105,644
Intangible assets 9,736 11,342
Investment properties 0 1,577
Share of associated companies 0 1,514
Other financial assets 4,562 4,792
Receivables 1,820 894
Deferred tax assets 4,225 3,567
----------------------------------------------------------------------------
1,389,613 1,369,386
----------------------------------------------------------------------------
Current assets
Inventories 6,567 6,530
Accounts receivable and other receivables 69,900 64,345
Income tax receivables 82 18
Bank and cash 6,452 6,103
----------------------------------------------------------------------------
83,001 76,996
----------------------------------------------------------------------------
Total assets 1,472,614 1,446,382
============================================================================
EQUITY
Equity attributable to parent company shareholders
Share capital 93,642 93,642
Share premium account 24,525 24,525
Fair value reserve -3,773 -4,822
Translation differences 117 124
Unrestricted equity reserve 21,015 21,015
Retained earnings 292,534 290,291
428,060 424,775
----------------------------------------------------------------------------
Non-controlling interests 867 876
Total equity 428,927 425,651
----------------------------------------------------------------------------
LIABILITIES
Long-term liabilities
----------------------------------------------------------------------------
Deferred tax liabilities 89,459 87,660
Interest-free liabilities 12 742
Pension liabilities 2,310 2,355
Provisions 4,562 4,312
Interest-bearing liabilities 701,606 721,112
797,951 816,182
----------------------------------------------------------------------------
Current liabilities
Accounts payable and other liabilities 88,130 73,714
Income tax liabilities 104 448
Provisions 30 1,280
Current interest-bearing liabilities 157,473 129,107
245,736 204,549
----------------------------------------------------------------------------
Total liabilities 1,043,687 1,020,731
Total equity and liabilities 1,472,614 1,446,382
============================================================================
CONSOLIDATED statement of changes in equity 2009, IFRS
EUR 1,000 Equity attributable to parent company shareholders
Share Share Translatio Fair Unrestricte
capita issue n value d equity
l premium difference reserves reserve
s
Equity 1 January 2009 81,384 24,525 379 -2,807
--------------------------------------------------------------------------------
Comprehensive income for
the year:
--------------------------------------------------------------------------------
Profit for the reporting
period
Exchange differences on -255
translating foreign
operations
Change on hedging reserve -723
Deferred tax revaluation -1,481
Income tax relating to 188
components of other
comprehensive income
--------------------------------------------------------------------------------
Total comprehensive -255 -2,016
income for the year
--------------------------------------------------------------------------------
Share issue 12,258 21,015
--------------------------------------------------------------------------------
Equity 31 December 2009 93,642 24,525 124 -4,822 21,015
--------------------------------------------------------------------------------
EUR 1,000 Equity attributable to Non-controll Total
parent company shareholders ing equity
interests
Retained Hybrid Total
earnings bond
--------------------
Equity 1 January 2009 332,927 436,409 1,531 437,940
--------------------------------------------------------------------------------
Comprehensive income for the
year:
--------------------------------------------------------------------------------
Profit for the reporting -41,637 -41,637 -69 -41,706
period
Exchange differences on -255 -255
translating foreign
operations
Change on hedging reserve -723 -723
Deferred tax revaluation -1,481 -1,481
Income tax relating to 188 188
components of other
comprehensive income
--------------------------------------------------------------------------------
Total comprehensive income -41,637 -43,908 -69 -43,977
for the year
--------------------------------------------------------------------------------
Share issue 33,274 33,274
Issue of hybrid bond 20,906 20,906 20,906
Repayment of the hybrid bond -94 -20,906 -21,000 -21,000
Hybrid bond interest -905 -905 -905
Decrease in interest in -96 -96
subsidiary
Dividend -490 -490
--------------------------------------------------------------------------------
Equity 31 December 2009 290,291 0 424,775 876 425,651
--------------------------------------------------------------------------------
CONSOLIDATED statement of changes in equity 2010, IFRS
EUR 1,000 Equity attributable to parent company shareholders
Share Share Translatio Fair Unrestricte
capita issue n value d equity
l premium difference reserves reserve
s
Equity 1 January 2010 93,642 24,525 124 -4,822 21,015
--------------------------------------------------------------------------------
Comprehensive income for
the year:
--------------------------------------------------------------------------------
Profit for the reporting
period
Exchange differences on -7
translating foreign
operations
Change on hedging reserve 1,418
Income tax relating to -369
components of other
comprehensive income
Total comprehensive -7 1,049
income for the year
--------------------------------------------------------------------------------
Equity 31 December 2010 93,642 24,525 117 -3,773 21,015
--------------------------------------------------------------------------------
EUR 1,000 Equity attributable Non-controllin Total
to parent company g interests equity
shareholders
Retained Total
earnings
Equity 1 January 2010 290,291 424,775 876 425,651
--------------------------------------------------------------------------------
Comprehensive income for the year:
--------------------------------------------------------------------------------
Profit for the reporting period 2,243 2,243 -9 2,234
Exchange differences on -7 -7
translating foreign operations
Change on hedging reserve 1,418 1,418
Income tax relating to components -369 -369
of other comprehensive income
--------------------------------------------------------------------------------
Total comprehensive income for the 2,243 3,285 -9 3,276
year
--------------------------------------------------------------------------------
Equity 31 December 2010 292,534 428,060 867 428,927
--------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT, IFRS
EUR 1,000 1 Jan-31 Dec 1 Jan-31 Dec
2010 2009
Cash flows from operating activities
--------------------------------------------------------------------------------
Result for reporting period 2,234 -41,706
Non-cash transactions 82,484 67,673
Changes in working capital 10,187 6,273
Net financial items and income taxes -27,118 -33,395
Net cash generated from operating activities 67,787 -1,154
--------------------------------------------------------------------------------
Cash flow from investing activities
Investment in shares and acquisition -251
Net investments in tangible and intangible -81,839 -25,363
assets
Disposal of subsidiaries 1,650 2,114
Proceeds from sale of investments 159 957
Other investing activities 2,621 49,377
--------------------------------------------------------------------------------
Net cash used in investing activities -77,409 26,834
--------------------------------------------------------------------------------
Cash flows from financing activities
Proceeds from share issue 33,274
Loan withdrawals 44,120 8,040
Net increase in current interest-bearing 33,744 9,801
liabilities
Repayment of loans -69,379 -81,143
Increase / decrease in long-term receivables 1,482 466
Dividends paid -540
Hybrid bond 20,906
Hybrid bond repayment -20,906
--------------------------------------------------------------------------------
Net cash from (used in) financing activities 9,967 -30,103
--------------------------------------------------------------------------------
Change in cash and cash equivalents 344 -4,423
Cash and cash equivalents 1 January 6,103 10,509
Effect of foreign exchange rate changes 5 17
--------------------------------------------------------------------------------
Cash and cash equivalents at the end of 6,452 6,103
period
--------------------------------------------------------------------------------
REVENUE AND RESULT BY BUSINESS SEGMENTS
1 Oct-31 Dec 1 Oct-31 Dec 1 Jan-31 Dec 1 Jan-31 Dec
2010 2009 2010 2009
MEUR % MEUR % MEUR % MEUR %
Revenue
--------------------------------------------------------------------------------
Shipping and sea 127.9 91.9 111.3 91.1 513.7 91.5 444.9 90.0
transport
Port operations 18.4 13.2 16.8 13.7 72.3 12.9 73.2 14.8
Eliminations -7.0 -5.1 -5.9 -4.9 -24.9 -4.4 -23.7 -4.8
(intragroup)
--------------------------------------------------------------------------------
External sales 139.3 100.0 122.1 100.0 561.1 100.0 494.4 100.0
--------------------------------------------------------------------------------
Result before interest
and taxes (EBIT)
Shipping and sea 4.6 -3.5 39.3 -7.7
transport
Port operations -4.2 -2.0 -13.7 -15.9
--------------------------------------------------------------------------------
Result before interest 0.5 -5.5 25.6 -23.6
and taxes (EBIT) total
--------------------------------------------------------------------------------
Financial items -5.3 -5.7 -21.9 -27.8
--------------------------------------------------------------------------------
Result before taxes -4.9 -11.2 3.7 -51.4
--------------------------------------------------------------------------------
Income taxes 1.8 3.7 -1.4 9.7
================================================================================
Result for reporting -3.1 -7.5 2.2 -41.7
period
================================================================================
PROPERTY, PLANT AND EQUIPMENT 2009
EUR 1,000 Land Buildin Vessels Machine Advance Total
gs ry and payments &
equipme acquisitions
nt under constr.
Acquisition cost 1 339 106,638 1,289,692 109,525 125,401 1,631,595
January
Exchange rate 28 913 940
differences
Increases 1,047 10,407 3,208 12,108 26,769
Sales of assets -206 -206
Disposals -285 -28,788 -49,168 -9,916 -41 -88,198
Reclassifications -19 19 3,924 -3,924 0
--------------------------------------------------------------------------------
Acquisition cost 35 78,943 1,254,854 103,524 133,545 1,570,900
31 December
--------------------------------------------------------------------------------
Accumulated -32,221 -237,395 -50,010 -319,627
depreciation,
amortisation and
write-offs 1 Jan
Exchange rate -14 -323 -337
differences
Cumulative 22,642 13,788 5,969 42,399
depreciation on
reclassifications
and disposals
Cumulative 5,030 127 5,157
depreciation on
sales of assets
Depreciation for -3,113 -48,003 -7,320 -58,435
the reporting
period
Accumulated -7,676 -271,610 -51,557 -330,843
depreciation,
amortisation and
write-offs 31 Dec
================================================================================
Book value 31 35 71,267 983,244 51,967 133,545 1,240,057
December 2009
================================================================================
PROPERTY, PLANT AND EQUIPMENT 2010
EUR 1,000 Land Buildin Vessels Machine Advance Total
gs ry and payments &
equipme acquisitions
nt under constr.
Acquisition cost 1 35 78,943 1,254,854 103,524 133,545 1,570,900
January
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 72 78,923 1,302,037 100,460 167,050 1,648,543
31 December 2010
--------------------------------------------------------------------------------
Accumulated -7,676 -271,610 -51,557 -330,843
depreciation,
amortisation and
write-offs 1 Jan
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 Dec
================================================================================
Book value 31 72 68,413 982,245 45,845 167,050 1,263,626
December 2010
================================================================================
CONTINGENCIES AND COMMITMENTS
EUR 1,000 31 Dec 2010 31 Dec 2009
Minimum lease payable in relation to fixed-term
leases:
--------------------------------------------------------------------------------
Vessel leases (Group as lessee):
Within 12 months 28,410 39,200
1-5 years 14,785 42,571
-------------------------------------------------------------------------------- 43,195 81,771
--------------------------------------------------------------------------------
Vessel leases (Group as lessor):
Within 12 months 1,147 9,226
1,147 9,226
--------------------------------------------------------------------------------
Other leases (Group as lessee):
Within 12 months 6,658 7,057
1-5 years 18,596 21,511
After five years 15,904 19,869
--------------------------------------------------------------------------------
41,158 48,437
--------------------------------------------------------------------------------
Other leases (Group as lessor):
Within 12 months 237 140
237 140
--------------------------------------------------------------------------------
Collateral given
Loans secured by mortgages
Loans from financial institutions 727,419 699,922
Vessel mortgages provided as guarantees for the above 1,173,500 1,153,500
loans
Other collateral given on own behalf
Pledged deposits 472 468
Corporate mortgages 606 606
--------------------------------------------------------------------------------
1,078 1,074
--------------------------------------------------------------------------------
Other obligations 103,819 132,943
--------------------------------------------------------------------------------
Obligations of parent company on behalf of
subsidiaries
Guarantees 6,913 6,913
6,913 6,913
--------------------------------------------------------------------------------
VAT adjustment liability related to real estate 11,082 12,430
investments
--------------------------------------------------------------------------------
Open derivative instruments:
Fair value Contract amount
-----------------------------------------------------------------------
1000 EUR 31 Dec 2010 31 Dec 2009 31 Dec 2010 31 Dec 2009
-----------------------------------------------------------------------
Currency forwards 657 -677 22,003 20,408
-----------------------------------------------------------------------
Interest rate swaps 0 -2,369 0 120,000 --------------------------
REVENUE AND RESULT BY QUARTER
MEUR Q1/10 Q1/09 Q2/10 Q2/09 Q3/10 Q3/09 Q4/10 Q4/09
-------------------------------------------------------------------
Shipping and sea 110.9 103.3 138.9 111.5 135.9 118.8 127.9 111.3
transport
-------------
Port operations 14.8 20.1 21.5 18.7 17.7 17.5 18.4 16.8
Eliminations -4.2 -6.1 -7.5 -5.9 -6.1 -5.8 -7.0 -5.9
(intragroup)
--------------------------------------------------------------------------------
External sales 121.5 117.4 152.8 124.4 147.5 130.5 139.3 122.1
--------------------------------------------------------------------------------
Result before interest
and taxes (EBIT)
Shipping and sea 5.9 -10.0 16.5 3.7 12.3 2.1 4.6 -3.5
transport
Port operations -4.5 -6.0 -2.1 -4.1 -3.0 -3.8 -4.2 -2.0
--------------------------------------------------------------------------------
Result before interest 1.4 -16.0 14.4 -0.3 9.3 -1.7 0.5 -5.5
and taxes (EBIT) total
--------------------------------------------------------------------------------
Financial items -5.3 -10.6 -5.2 -6.7 -6.1 -4.8 -5.3 -5.7
--------------------------------------------------------------------------------
Result before taxes -3.8 -26.6 9.2 -7.1 3.2 -6.5 -4.9 -11.2
--------------------------------------------------------------------------------
Income taxes 0.6 5.6 -2.4 -0.9 -1.4 1.3 1.8 3.7
================================================================================
Result for the reporting -3.3 -21.0 6.8 -8.0 1.8 -5.2 -3.1 -7.5
period
================================================================================
EPS (undiluted)* -0.07 -0.51 0.15 -0.20 0.04 -0.12 -0.07 -0.16
EPS (diluted)* -0.07 -0.51 0.15 -0.20 0.04 -0.12 -0.07 -0.16
* In 2009, key indicators per share have been retroactively adjusted with the
share issue adjustment factor.
SHARES, MARKET CAPITALISATION AND TRADING INFORMATION
31 December 2010 31 December 2009
---------------------------------------------------------------------
Number of shares 46,821,037 46,821,037
---------------------------------------------------------------------
Market capitalisation,EUR million 373.2 323.1
1 Jan - 31 Dec 2010 1 Jan - 31 Dec 2009
--------------------------------------------------------------------------
Number of shares traded, million 2.9 2.7
--------------------------------------------------------------------------
1 Jan - 31 Dec 2010
---------------------------------------
High Low Average Close
---------------------------------------
Share price 9.70 6.95 7.83 7.97
CALCULATION OF RATIOS
Earnings per share (EPS), EUR *:
Result attributable to parent company shareholders - hybrid bond interest
-------------------------------------------------------------------------
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
Shareholders' equity + non-controlling interests
Equity ratio, %:
Shareholders' equity + non-controlling interests
------------------------------------------------ X 100
Assets total - received advances
*In 2009, key indicators per share have been retroactively adjusted with the
share issue adjustment factor.
*In 2009, key indicators per share have been retroactively adjusted with the
share issue adjustment factor.
Taxes corresponding to the result for the reporting period are presented as
income taxes in the interim report.
RELATED PARTY TRANSACTIONS
In April 2009, Finnlines' subsidiary Hanseatic Shipping sold MS Finnhansa to
Grimaldi Group at the market price of EUR 40 million with a call option to
repurchase the vessel at the same price. This call option was exercised in
April 2010. MS Finnhansa (renamed Transrussia) was bought in July 2010 by
Finnlines Deutschland GmbH and started plying in TransRussiaExpress traffic
between Lübeck and St. Petersburg.
Redelivery of the two vessels, hired to Grimaldi Group in 2009, took place in
the first quarter 2010 and at the beginning of the second quarter 2010.
Related party business transactions were carried out by 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) using the same accounting policies
and methods as in the annual financial statements for 2009. 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 contingent 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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