2014-02-27 15:39:25 CET
2014-02-27 15:40:28 CET
REGULATED INFORMATION
Finnlines - Financial Statement Release
Finnlines Plc, INTERIM REPORT JANUARY – DECEMBER 2013 (unaudited)
Helsinki, Finland, 2014-02-27 15:39 CET (GLOBE NEWSWIRE) -- Finnlines Plc,
Stock Exchange Release, 27 February 2014 at 16:40
INTERIM REPORT JANUARY - DECEMBER 2013 (unaudited)
SUMMARY
January - December 2013
- Revenue EUR 563.6 million (EUR 609.3 million prev. year), decrease 7.5%
- Result before interest, taxes, depreciation and amortisation (EBITDA) EUR
83.7 million (EUR 89.8 million), decrease 6.8%
- Result for the reporting period EUR 6.0 million (EUR -0.1 million)
- Earnings per share were 0.12 (0.00) EUR/share
October - December 2013
- Revenue EUR 130.3 million (EUR 138.4 million prev. year), decrease 5.9%
- Result before interest, taxes, depreciation and amortisation (EBITDA) EUR
20.2 million (EUR 11.6 million), increase 73.7%
- Result for the reporting period EUR 9.9 million (EUR -5.3 million)
- Earnings per share were 0.19 (-0.11) EUR/share
JANUARY - DECEMBER 2013 IN BRIEF
MEUR 1-12 1-12 10-12 2013 10-12 2012
2013* 2012*
Revenue 563.6 609.3 130.3 138.4
Result before interest, taxes, 83.7 89.8 20.2 11.6
depreciation and amortisation (EBITDA)
Result before interest and taxes (EBIT) 18.1 23.7 5.3 -5.1
% of revenue 3.2 3.9 4.1 -3.7
Result for the reporting period 6.0 -0.1 9.9 -5.3
Earnings per share (EPS), EUR** 0.12 0.00 0.19 -0.11
Equity ratio, % 35.7 29.0 35.7 29.0
Gearing, % 149.1 204.9 149.1 204.9
Shareholders' equity/share, EUR 8.98 9.14 8.98 9.14
Calculation of key ratios is presented under 'Calculation of ratios'.
* The result for January-December 2013 includes a non-recurring cost item of
about EUR 1.0 million related to general increases of the collective agreement
(see chapter “Changes in Essential Legal Proceedings”) and a sales profit of
EUR 3.0 million from the sales of MS Europalink, MS Transeuropa and MS
Translubeca. The result for January-December 2012 includes a non-recurring
compensation of EUR 3.4 million from the Jinling shipyard and one-time cost
items amounting to EUR 3.3 million mainly relating to the arrangements of
leased property and settlements with the personnel.
** Key indicators per share have been adjusted with the share issue adjustment
factor.
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 eleven ports. The Company also provides port services in
Helsinki, Turku and Kotka. The Company has subsidiaries in Germany, Belgium,
Great Britain, Sweden, Denmark and Poland.
GENERAL MARKET DEVELOPMENT
Based on the statistics by the Finnish Transport Agency for January-December,
the Finnish seaborne imports carried in container, lorry and trailer units
decreased by 3 per cent whereas exports increased by 6 per cent (measured in
tons) compared to the same period in 2012. According to the statistics
published by Shippax for January-December, trailer and lorry volumes
transported by sea between Southern Sweden and Germany increased by 4 per cent
compared to 2012. During the same period, private and commercial passenger
traffic between Finland and Sweden decreased by 1 per cent compared to 2012.
Between Finland and Germany the corresponding traffic decreased by 15 per cent
(Finnish Transport Agency).
FINNLINES TRAFFIC
In the first quarter, the last of six ro-ro newbuildings (MS Finnwave) entered
service. The vessel flies the Finnish flag.
In order to adapt to the current market situation, Finnlines chartered out MS
Finnarrow to the Grimaldi Group at market price in the second quarter.
In the third quarter, Finnlines started new services in the Baltic Sea and the
North Sea. The expansion of the liner service network is a result of long-term
contracts made with key customers.
Due to changes in the market circumstances, Finnlines restructured its vessel
capacity and updated schedules in the service with Aarhus and Rostock during
the last quarter. The newest ro-ro vessels in the Finnlines fleet were
operating two sailings a week in both directions linking Aarhus and Helsinki.
At the same time, when rescheduling this service, a new twice weekly connection
between Aarhus and Rostock was introduced. In addition, Finnlines sold the
vessels MS Translubeca and MS Transeuropa. MS Transeuropa was sold to the
Grimaldi Group at market price of EUR 27 million, which is slightly above the
book value of the vessel. MS Transrussia entered the Helsinki-Rostock route due
to the sale of MS Transeuropa. MS Translubeca was sold to an external party at
market price of EUR 11.6 million, which is also slightly above book value of
the vessel.
During the fourth quarter, Finnlines operated on average 24 (24 in 2012)
vessels in its own traffic.
The cargo volumes transported during January - December totalled approximately
632 thousand (628 thousand in 2012) cargo units, 66 thousand (72 thousand) cars
(not including passengers' cars) and 2,248 thousand (2,102 thousand) tons of
freight not possible to measure in units. In addition, some 556 thousand (598
thousand) private and commercial passengers were transported.
FINANCIAL RESULTS
The lowering of the corporate tax rate from 24.5 per cent to 20 per cent at the
end of the fourth quarter had a EUR 9.4 million non-recurring positive effect
on the result for the reporting period January-December 2013 and also on the
result for October-December 2013.
January - December 2013
The Finnlines Group recorded revenue totalling EUR 563.6 (609.3) million, a
decrease of 7.5 per cent compared to the same period in 2012. Shipping and Sea
Transport Services generated revenue amounting to EUR 538.6 (574.8) million and
Port Operations EUR 50.1 (58.5) million. The internal revenue between the
segments was EUR 25.1 (24.0) million.
Result before interest, taxes, depreciation and amortisation (EBITDA) was EUR
83.7 (89.8) million, a decrease of 6.8 per cent.
Result before interest and taxes (EBIT) was EUR 18.1 (23.7) million. The
comparable result before interest and taxes (EBIT) adjusted with non-recurring
items was EUR 16.1* (23.6) million. The result is affected by the seasonality
of the cargo volumes, which are typically on a lower level at the beginning of
the year. The number of passengers is also modest during the winter period
compared to the summer season. Financial income was EUR 0.5 (0.7) million and
financial expenses totalled EUR 25.3 (26.0) million. Result for the reporting
period was EUR 6.0 (-0.1) million and earnings per share (EPS) were EUR 0.12
(0.00).
October-December 2013
The Finnlines Group recorded revenue totalling EUR 130.3 (138.4) million, a
decrease of 5.9 per cent compared to the same period in 2012. Shipping and Sea
Transport Services generated revenue amounting to EUR 124.8 (130.5) million and
Port Operations EUR 11.6 (13.8) million. The internal revenue between the
segments was EUR 6.1 (5.8) million.
Result before interest, taxes, depreciation and amortisation (EBITDA) was EUR
20.2 (11.6) million, an increase of 73.7 per cent. This improvement was
achieved by cutting costs and adjusting the fleet to meet the prevailing market
conditions both through the sale of vessels and efficient route planning.
Result before interest and taxes (EBIT) was EUR 5.3 (-5.1) million. Financial
income was EUR 0.2 (0.0) million and financial expenses totalled EUR 6.1 (6.0)
million. Result for the reporting period was EUR 9.9 (-5.3) million and
earnings per share (EPS) were EUR 0.19 (-0.11).
STATEMENT OF FINANCIAL POSITION, FINANCING AND CASH-FLOW
Interest-bearing debt decreased by EUR 216.4 million and amounted to EUR 673.0
(889.4) million. The equity ratio calculated from the balance sheet improved to
35.7 per cent (29.0) and gearing dropped to 149.1 per cent (204.9). Due to the
expansion of liner service network vessel lease commitments increased by EUR
17.9 million to EUR 24.7 million compared to the end of December 2012.
At the end of the period, cash and deposits together with unused committed
working capital credits amounted to EUR 65.9 (41.3) million.
The Board of Directors of Finnlines Plc decided on 7 May 2013, based on the
authorisation granted at the annual general meeting on 16 April 2013, on a
rights issue, in which the Company offered a maximum of 4,682,104 new shares to
be subscribed by the Company's existing shareholders. All offered shares were
subscribed for in the rights issue completed at the end of May. The net
proceeds raised by Finnlines in the rights issue were approximately EUR 28.4
million which were used to strengthen the Company's capital structure.
In April, Finnlines' port subsidiaries sold four container cranes to a
financing company and rented them back with a five-year financing lease
contract. This arrangement released EUR 15 million working capital to the
Group.
During the latter half of the year, Finnlines sold two vessels, MS Europalink
and MS Transeuropa, to the Grimaldi Group and MS Translubeca to an external
party for a total amount of EUR 124 million.
Net cash generated from operating activities after investing activities
improved markedly and was EUR 157.9 (-25.0) million.
CAPITAL EXPENDITURE
Finnlines Group's gross capital expenditure in the reporting period totalled
EUR 10.1 (67.1) million. Total depreciation amounted to EUR 65.6 (66.1)
million. The investments consist of normal replacement costs of fixed assets
and accrued dry-docking cost of ships. The investment programme of six ro-ro
newbuildings was completed in 2012 and there are no decisions on any new vessel
investments.
PERSONNEL
The Group employed an average of 1,861 (2,023) persons during the period,
consisting 918 (957) employees on shore and 943 (1,066) persons at sea. The
number of the employees at the end of the year were 1,806 (2,009) in total, of
which 898 (963) on shore and 908 (1,046) at sea. The total number of persons
employed by the Group will decrease to 1,661 persons as a result of the actions
mentioned below.
In the first quarter, the Finnsteve companies started statutory employee
co-operation negotiations in Helsinki with all personnel groups due to the
loss-making business in the ports. As a result of the negotiations, the number
of the port personnel decreased by 100 in the Finnsteve companies (Finnsteve Oy
Ab, Containersteve Oy Ab, FS-Terminals Oy Ab and FL Port Services Oy Ab) in
2013.
In the fourth quarter, the Finnsteve companies started new statutory employee
co-operation negotiations in Turku with all personnel groups due to the
loss-making business in the port. As a result of the negotiations, the number
of port personnel decreased by 61 employees. In Helsinki, at FL Port Services
Oy Ab the statutory employee co-operation negotiations ended in the dismissal
of 21 employees and closing down the company.
The number of the sea personnel decreased due to selling of two vessels and
chartering out of a third one.
The personnel expenses (including social costs) for the reporting period were
EUR 102.6 (109.0) million.
GROUP STRUCTURE
Finnlines Plc is a Finnish listed company. At the end of the reporting period,
the Group consisted of the parent company and 25 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 a fleet of about 100 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 73.39
per cent (at 31 December 2013) of the shares, the Grimaldi Group is the
biggest shareholder in Finnlines Plc.
THE FINNLINES SHARE
The Company's registered share capital on 31 December 2013 was EUR 103,006,282
divided into 51,503,141 shares. A total of 2.2 (1.4) 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 386.3 (365.2) million. Earnings
per share (EPS) were EUR 0.12 (0.00). Shareholders' equity per share was EUR
8.98 (9.14). At the end of the year, the Grimaldi Group's holding and share of
votes in Finnlines was 73.39 per cent.
ESSENTIAL LEGAL PROCEEDINGS
In March 2010, the District Court of Helsinki rendered its judgment in the
action initiated by Mutual Pension Insurance Company Ilmarinen (”Ilmarinen”)
against the Company, which was reversed by the Court of Appeal of Helsinki in
favour of the Company in November 2011. The Supreme Court granted a leave to
the appeal of Ilmarinen on the decision of the Court of Appeal of Helsinki in
December 2012. The action initiated by Ilmarinen is the appeal against the
decision of Finnlines' Annual General Meeting held on 20 May 2008 concerning
minimum dividend and claimed that the decision be amended in that the minimum
dividend paid should have been 17,181,000.00 euros instead of 180,216.39 euros.
The process is still ongoing.
In 2008, the Administrative Court of Helsinki rendered the decisions based on
which it can be argued that the Finnish Act on Fairway Dues in force until 1
January 2006 contained provisions which, according to the EU law, were
discriminatory. The Company has submitted a 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. The process is ongoing.
TONNAGE TAXATION
The Finnish Parliament approved the amended Tonnage Tax Act (476/2002), as
amended by the Act 90/2012 which entered into force on 1 March 2012. Finnlines
Plc's board decided in December 2012 to enter into the tonnage taxation regime
as from 1 January 2013. In the tonnage taxation regime, the shipping operations
will be transferred from business taxation to tonnage-based taxation.
The depreciation difference of EUR 215.1 million recorded in Finnlines Plc's
opening balance as per 1 January 2013 has been divided into two portions: the
depreciation difference of EUR 162.4 million (75.5 per cent) and deferred tax
liability of EUR 52.7 million (24.5 per cent). The depreciation difference of
EUR 162.4 million has been entered in to the retained earnings of Finnlines
Plc's equity. The deferred tax of EUR 52.7 million has been entered in the
deferred tax liability. The recording has no effect on the equity and the
deferred tax liability of the consolidated financial statements of the
Finnlines Group.
The fixed assets subject to tonnage tax regime must be revalued in the
transition moment 1 January 2013 to their fair values. The fair value of
Finnlines Plc's fixed assets exceeded their net book values by EUR 7.0 million,
and out of this amount the company recorded a deferred tax liability of EUR 1.7
million (24.5 per cent). The fair value of the fixed assets exceeded their
group values by EUR 1.5 million, and the share of deferred tax liability out of
this amount was EUR 0.4 million.
Under the tonnage tax regime, at the time of transition, from the value of
maximum amount entered as income determined to the fixed assets subject to
tonnage tax regime a maximum reduction of 1/9 can be made from the second year
onwards. The yearly maximum of deductible amount cannot exceed the maximum
value of the granted state subsidy. The deferred tax liability will decline
respectively according to the valid corporate tax rate.
Finnlines Plc will record the reduction of deferred tax liability as from 1
January 2013, according to the above mentioned Tonnage Tax Act.
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.
CHANGE IN THE MANAGEMENT AND IN THE BOARD
During the fourth quarter the position of the President and CEO was taken over
by Mr Emanuele Grimaldi and at the same time he stepped down as the Chairman of
the Board. The Board of Directors elected Mr Jon-Aksel Torgersen as the new
Chairman of the Board of Directors. Mr Emanuele Grimaldi continues as the Board
member.
OUTLOOK AND OPERATING ENVIRONMENT
Finnlines has continued to re-structure its fleet and organisation to improve
the cost-efficiency of its vessels and overall logistics system. Having sold
its last vessel, Finnlines Deutschland GmbH will end its shipowning operations
and concentrate on providing agency services to the Finnlines Group companies
and Russia liner services with chartered vessels. Finnlines has flagged a large
number of vessels in Finland as the company has entered the Finnish tonnage
taxation regime.
The Finnlines Group's result before taxes is expected to improve as a
consequence of the measures taken: vessels have been sold to cut overcapacity,
the number of personnel has been reduced, fleet planning has brought cost
savings and the capital structure has been improved due to share issue and
reduction in the net interest bearing debt.
DIVIDEND DISTRIBUTION PROPOSAL
The parent company Finnlines Plc's result for the period ended on 31 December
2013 was EUR 0.04 million negative. The Board of Directors will propose to the
Annual Shareholders' Meeting that no dividend be paid out for 2013 due to fact
that the Group's and the parent company's result before taxes were
unsatisfactory.
ANNUAL GENERAL MEETING
Finnlines Plc's Annual General Meeting will be held from 12.00 on Tuesday, 8
April 2014 at Scandic Marina Congress Center, Katajanokanlaituri 6, Helsinki.
The annual report for 2013 will be published during the week commencing on 17
March 2014 at the latest and will be available at www.finnlines.com or at
Finnlines' headquarters, Komentosilta 1, 00980 Helsinki.
The first interim report of 2014, for 1 January-31 March, will be published on
Tuesday, 6 May 2014.
Finnlines Plc
The Board of Directors
Emanuele
Grimaldi
President/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 statement of cash flows, 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
- 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 has adopted new or revised
IFRS standards and IFRIC interpretations from the beginning of the reporting
period corresponding to those described in the 2012 Financial Statements.
With effect from 1 January 2013, the Finnlines Group has adopted the revised
IAS 19 Employee benefits standard. The amendment has an impact on the Finnlines
Group's pension liability and equity on the balance sheet. Resulting from the
amendment, the Finnlines Group's consolidated statement of financial position
for 2012 has been updated in compliance with the requirements prescribed in the
revised standard. In consequence of the adoption of the revised IAS 19 Employee
benefits standard, the Group's equity in the 2012 opening balance will decrease
by EUR 1.2 million and in the balance sheet of 31 December 2012 by EUR 0.1
million due to actuarial losses recognised in equity in the consolidated
statement of financial position.
Otherwise new or revised standards have not had an effect 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.
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 may 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. The
uncertainties related to the key assumptions were the same as those applied to
the consolidated financial statements at the year-end 31 December 2012.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, IFRS
Restated*
EUR 1,000 1 Oct-31 1 Oct-31 1 Jan-31 1 Jan-31
Dec 2013 Dec 2012 Dec 2013 Dec 2012
Revenue 130,284 138,399 563,587 609,329
Other income from operations 2,693 479 5,329 5,702
Materials and services -51,670 -58,532 -229,690 -247,237
Personnel expenses -24,158 -27,659 -102,584 -109,009
Depreciation, amortisation and -14,915 -16,773 -65,583 -66,095
impairment losses
Other operating expenses -36,921 -41,044 -152,983 -169,030
Total operating expenses -127,662 -144,008 -550,840 -591,371
Result before interest and taxes 5,314 -5,129 18,075 23,660
(EBIT)
Financial income 178 32 526 747
Financial expenses -6,126 -5,962 -25,335 -26,013
Result before taxes (EBT) -633 -11,059 -6,734 -1,606
Income taxes 10,513 5,727 12,744 1,539
Result for the reporting period 9,880 -5,333 6,011 -66
Other comprehensive income:
Other comprehensive income to be
reclassified to profit and loss
in subsequent periods:
Exchange differences on 1 -12 -9 2
translating foreign operations
Changes in cash flow hedging
reserve
Fair value changes 4 13
Transfer to tangible assets 1,423 3,178
Tax effect, net -1 -350 2 -782
Other comprehensive income to be 0 1,065 -7 2,411
reclassified to profit and loss
in subsequent periods, total
Other comprehensive income not
being reclassified to profit
and loss in subsequent periods:
Remeasurement of defined benefit -399 -399 -150
plans*
Tax effect, net 1 1 7
Other comprehensive income not -398 -398 -143
being reclassified to profit
and loss in subsequent periods,
total
Total comprehensive income for 9,482 -4,268 5,606 2,201
the reporting period
Result for the reporting period
attributable to:
Parent company shareholders 9,876 -5,332 5,997 -27Non-controlling interests 4 -1 14 -39
9,880 -5,333 6,011 -66
Total comprehensive income for
the reporting period
attributable to:
Parent company shareholders 9,479 -4,267 5,592 2,241
Non-controlling interests 3 -1 14 -39
9,482 -4,268 5,606 2,201
Result for the reporting period
attributable to parent company
shareholders calculated as
earnings per share (EUR/share):
Undiluted / diluted earnings per 0.19 -0.11 0.12 0.00
share **
Average number of shares 51,503,141 47,343,662 49,782,370 47,343,662
Undiluted / diluted **
* restated due to revised IAS 19 Employee benefit standard.
** key indicators have been adjusted with the share issue adjustment factor
CONSOLIDATED STATEMENT OF FINANCIAL POSITION, IFRS
EUR 1,000 31 Dec 2013 Restated*
31 Dec 2012
ASSETS
Non-current assets
Property, plant and equipment 1,084,389 1,260,295
Goodwill 105,644 105,644
Intangible assets 5,836 6,629
Other financial assets 4,580 4,581
Receivables 43 768
Deferred tax assets 1,370 1,792
1,201,861 1,379,709
Current assets
Inventories 8,832 9,759
Accounts receivable and other receivables 85,251 74,087
Income tax receivables 1 24
Cash and cash equivalents 2,508 16,282
96,592 100,151
Total assets 1,298,453 1,479,861
EQUITY
Equity attributable to parent company shareholders
Share capital 103,006 93,642
Share premium account 24,525 24,525
Fair value reserve 0 0
Translation differences 109 116
Fund for invested unstricted equity 40,016 21,015
Retained earnings 294,641 288,652
462,297 427,951
Non-controlling interests 360 838
Total equity 462,658 428,788
LIABILITIES
Long-term liabilities
Deferred tax liabilities 57,560 71,444
Interest-free liabilities 3,242 1,325
Pension liabilities 3,982 3,710
Provisions 1,980 5,100
Interest-bearing liabilities** 557,759 712,985
624,523 794,564
Current liabilities
Accounts payable and other liabilities 72,815 74,504
Current tax liabilities 27 108
Provisions 3,715 48
Current interest-bearing liabilities** 134,715 181,848
211,273 256,508
Total liabilities 835,796 1,051,072
Total equity and liabilities 1,298,453 1,479,861
* With effect from 1 January 2013, the Finnlines Group has adopted the revised
IAS 19 Employee benefits standard. The amendment has an impact on the Finnlines
Group's pension liability and equity on the balance sheet. Resulting from the
amendment, Finnlines consolidated statement of financial position for 2012
has been updated in compliance with the requirements prescribed in the revised
standard. In consequence of the adoption of the revised IAS 19 Employee
benefits standard, the Group's equity in the 2012 opening balance will decrease
by EUR 1.2 million and in the balance sheet of 31 December 2012 by EUR 0.1
million due to actuarial losses recognised in equity in the consolidated
statement of financial position.
** The revolving credit facilities, of which the Company can unilaterally
postpone the final due date over one year after the reporting period, are
reclassified from current liabilities to non-current liabilities in accordance
with IFRS.
CONSOLIDATED statement of changes in equity 2013, IFRS
EUR 1,000 Equity attributable to parent company shareholders
Share Share Translation Fund for invested
capital issue differences unrestricted
premium equity
Reported equity 1 January 93,642 24,525 116 21,015
2013
Effect of IAS 19 Employee
benefits standard
Restated equity 1 January 93,642 24,525 116 21,015
2013
Comprehensive income for
the reporting period:
Exchange differences on -9
translating foreign
operations
Changes in cash flow
hedging reserve
Fair value changes
Transfer to fixed assets
Tax effect, net 2
Total comprehensive -7
income for the reporting
period
Share issue 9,364 19,001
Equity 31 December 2013 103,006 24,525 109 40,016
EUR 1,000 Equity Non-controlli Total
attributable to ng interests equity
parent company
shareholders
Retained Total
earnings
Reported equity 1 January 2013 289,990 429,289 838 430,127
Effect of IAS 19 Employee benefits -1,338 -1,338 -1,338
standard
Restated equity 1 January 2013 288,652 427,951 838 428,788
Comprehensive income for the
reporting period:
Result for the reporting period 5,997 5,997 14 6,011
Exchange differences on translating -9 -9
foreign operations
Changes in cash flow hedging reserve
Fair value changes
Transfer to fixed assets
Remeasurement of defined benefit -399 -399 -399
plans
Tax effect, net 1 3 3
Total comprehensive income for the 5,599 5,592 14 5,606
reporting period
Share issue 28,365 28,365
Changes in non-controlling interests 390 390 -491 -102
without change in controlling
interest
Equity 31 December 2013 294,641 462,297 360 462,658
CONSOLIDATED statement of changes in equity 2012, IFRS
EUR 1,000 Equity attributable to parent company shareholders
Share Share Translatio Fair Fund for
capita issue n value invested
l premium difference reserves unrestricted
s equity
Reported equity 1 93,642 24,525 114 -2,409 21,015
January 2012
Effect of IAS 19
Employee benefits
standard
Restated equity 1 93,642 24,525 114 -2,409 21,015
January 2012
Comprehensive income
for the reporting
period:
Exchange differences 2
on translating
foreign operations
Changes in cash flow
hedging reserve
Fair value changes 13
Transfer to tangible 3,178
assets
Tax effect, net -782
Total comprehensive 2 2,409
income for the
reporting period
Equity 31 December 93,642 24,525 116 0 21,015
2012
EUR 1,000 Equity attributable Non-controlling Total
to parent company interests equity
shareholders
Retained Total
earnings
Reported equity 1 January 2012 290,017 426,905 877 427,782
Effect of IAS 19 Employee -1,195 -1,195 -1,195
benefits standard
Restated equity 1 January 2012 288,822 425,710 877 426,587
Comprehensive income for the
reporting period:
Result for the reporting period -27 -27 -39 -66
Exchange differences on 2 2
translating foreign operations
Changes in cash flow hedging
reserve
Fair value changes 13 13
Transfer to tangible assets 3,178 3,178
Remeasurement of defined -143 -143 -143
benefit plans
Tax effect, net -782 -782
Total comprehensive income for -170 2,241 -39 2,201
the reporting period
Equity 31 December 2012 288,652 427,951 838 428,788
CONSOLIDATED STATEMENT OF CASH FLOWS, IFRS (CONDENSED)
EUR 1,000 1 Jan-31 Dec 1 Jan-31 Dec
2013 2012
Cash flows from operating activities
Result for reporting period 6,011 -66
Adjustments:
Non-cash transactions 61,609 65,526
Unrealised foreign exchange gains (-) / 19 -34
losses (+)
Financial income and expenses 24,790 25,300
Taxes -12,744 -1 539
Changes in working capital:
Change in accounts receivable and other -6,402 2,606
receivables
Change in inventories 927 -856
Change in accounts payable and other -170 -28,247
liabilities
Change in provisions 379 16
Interest paid -22,366 -20,829
Interest received 192 339
Taxes paid -423 -650
Other financing items -3,645 -4,448
Net cash generated from operating activities 48,175 37,118
Cash flows from investing activities *
Investments in tangible and intangible -10,960 -63,121
assets
Sale of tangible assets 120,647 957
Proceeds from sale of investments 2
Dividends received 12 25
Net cash used in investing activities 109,699 -62,136
Cash flows from financing activities *
Proceeds from issue of share capital 28,365
Loan withdrawals 263,772 282,772
Net increase in current interest-bearing -14,198 -34,602
liabilities
Repayment of loans -449,914 -211,377
Acquisition of non-controlling interest -102
Increase / decrease in non-current 429 237
receivables
Net cash used in financing activities -171,647 37,030
Change in cash and cash equivalents -13,772 12,012
Cash and cash equivalents 1 January 16,282 4,263
Effect of foreign exchange rate changes -2 7
Cash and cash equivalents 31 December 2,508 16,282
* Activities related to revolving credit facilities, of which the company can
unilaterally postpone the final due date over one year after the reporting
period, have been reclassified from current liabilities to non-current
liabilities within the Cash flows from financing activities group in accordance
with IFRS.
REVENUE AND RESULT BY BUSINESS SEGMENTS
1 Oct-31 Dec 1 Oct-31 Dec 1 Jan-31 Dec 1 Jan-31 Dec
2013 2012 2013 2012
MEUR % MEUR % MEUR % MEUR %
Revenue
Shipping and sea 124.8 95.8 130.5 94.3 538.6 95.6 574.8 94.3
transport services
Port operations 11.6 8.9 13.8 9.9 50.1 8.9 58.5 9.6
Intra-group revenue -6.1 -4.7 -5.8 -4.2 -25.1 -4.5 -24.0 -3.9
External sales 130.3 100.0 138.4 100.0 563.6 100.0 609.3 100.0
Result before interest
and taxes
Shipping and sea 8.2 -1.3 27.9 34.0
transport services
Port operations -2.8 -3.8 -9.8 -10.4
Result before interest 5.3 -5.1 18.1 23.7
and taxes (EBIT) total
Financial items -5.9 -5.9 -24.8 -25.3
Result before taxes -0.6 -11.1 -6.7 -1.6
(EBT)
Income taxes 10.5 5.7 12.7 1.5
Result for the reporting 9.9 -5.3 6.0 -0.1
period
PROPERTY, PLANT AND EQUIPMENT 2013
EUR 1,000 Land Buildin Vessels Machiner Advance Total *
gs y and payments and
equipmen acquisitions
t under
construction
Reporting period
ending
31 Dec 2013
Acquisition cost 72 76,466 1,597,437 79,690 991 1,754,655
1 Jan 2013
Exchange rate -11 0 -11
differences
Increases 102 8,861 542 31 9,536
Disposals -1,298 -233,934 -7,104 -214 -242,549
Reclassification 406 5 -410 0
s
Acquisition cost 72 75,271 1,372,769 73,122 398 1,521,632
31 Dec 2013
Accumulated -15,047 -429,028 -50,285 -494,360
depreciation,
amortisation
and write-offs
1 Jan 2013
Exchange rate 10 10
differences
Cumulative 1,295 112,727 7,325 121,348
depreciation on
reclassificatio
ns and disposals
Depreciation for -2,564 -57,566 -4,111 -64,240
the
reporting period
Accumulated 0 -16,316 -373,866 -47,060 0 -437,243
depreciation,
amortisation
and write-offs
31 Dec 2013
Book value 31 72 58,955 998,903 26,061 398 1,084,389
Dec 2013
* Finnlines has sold the vessels MS Translubeca and MS Transeuropa. MS
Transeuropa was sold to the Grimaldi Group at market price, which is slightly
above the book value of the vessel. MS Translubeca was sold to an external
party at market price, which is also slightly above book value of the vessel.
The sales will have a minor positive effect on Finnlines' result in the last
quarter of 2013.
PROPERTY, PLANT AND EQUIPMENT 2012
EUR 1,000 Land Buildin Vessels Machiner Advance Total *
gs y and payments and
equipmen acquisitions
t under
construction
Reporting period
ending
31 Dec 2012
Acquisition cost 72 76,758 1,401,930 90,543 130,588 1,699,892
1 Jan 2012
Exchange rate 15 15
differences
Increases 533 8,212 263 57,830 66,837
Disposals -848 -110 -11,131 -12,089
Reclassification 23 187,405 -187,427 0
s
Acquisition cost 72 76,466 1,597,437 79,690 991 1,754,655
31 Dec 2012
Accumulated -12,916 -372,235 -56,435 -441,586
depreciation,
amortisation
and write-offs
1 Jan 2012
Exchange rate -13 -13
differences
Cumulative 656 110 10,935 11,701
depreciation on
reclassificatio
ns and disposals
Depreciation for -2,787 -56,902 -4,772 -64,461
the
reporting period
Accumulated 0 -15,047 -429,028 -50,285 0 -494,360
depreciation,
amortisation
and write-offs
31 Dec 2012
Book value 31 72 61,419 1,168,409 29,405 991 1,260,295
Dec 2012
CONTINGENCIES AND COMMITMENTS
EUR 1,000 2013 2012
Vessel leases (Group as lessee):
Within 12 months 14,007 3,285
1-5 years 10,644 3,468
24,651 6,753
EUR 1,000 2013 2012
Vessel leases (Group as lessor):
Within 12 months 2,356 6,251
1-5 years 7,457 17,742
9,812 23,993
EUR 1,000 2013 2012
Other leases (Group as lessee):
Future minimum lease payments from other leases due:
Within 12 months 6,107 6,496
1-5 years 17,948 17,176
After five years 12,358 16,123
36,413 39,795
EUR 1,000 2013 2012
Other leases (Group as lessor):
Within 12 months 350 211
350 211
EUR 1,000 2013 2012
Collateral given
Loans secured by mortgages 561,245 786,395
561,245 786,395
Vessel mortgages provided as guarantees for the above 1,121,000 1,254,000
loans
EUR 1,000 2013 2012
Other collateral given on own behalf
Pledged deposits 471
Corporate mortgages 606 606
606 1,077
EUR 1,000 2013 2012
Other obligations 2,375 1,932
EUR 1,000 2013 2012
Guarantees given by the parent company on behalf of the 6,000 6,913
subsidiaries
EUR 1,000 2013 2012
VAT adjustment liability related to real estate investments 6,756 7,927
Open derivative instruments:
Fair value Contract amount
1,000 EUR 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012
Currency derivatives 0 0
The Group has no outstanding hedging or other financial instruments at the end
of the reporting period, which would be classified in category 2 or 3 in the
fair value hierarchy described in Note 30 to the 2012 Financial Statements.
REVENUE AND RESULT BY QUARTER
MEUR Q1/13 Q1/12 Q2/13 Q2/12 Q3/13 Q3/12 Q4/13 Q4/12
Shipping and sea 126.0 135.4 143.6 155.8 144.2 153.2 124.8 130.5
transport services
Port operations 14.3 15.8 12.8 15.2 11.4 13.7 11.6 13.8
Intra-group revenue -6.4 -6.2 -6.7 -6.4 -5.9 -5.6 -6.1 -5.8
External sales 133.9 145.0 149.7 164.6 149.7 161.3 130.3 138.4
Result before interest
and taxes
Shipping and sea -3.6 2.4 9.8 16.5 13.5 16.4 8.2 -1.3
transport services
Port operations -2.2 -2.7 -3.0 -1.8 -1.8 -2.1 -2.8 -3.8
Result before interest -5.8 -0.2 6.9 14.7 11.7 14.3 5.3 -5.1
and taxes (EBIT) total
Financial items -6.2 -6.9 -6.5 -6.3 -6.2 -6.2 -5.9 -5.9
Result before taxes -12.1 -7.1 0.4 8.4 5.6 8.1 -0.6 -11.1
(EBT)
Income taxes 1.2 1.3 0.5 -2.7 0.6 -2.8 10.5 5.7
Result for the reporting -10.9 -5.8 0.9 5.7 6.1 5.3 9.9 -5.3
period
EPS (undiluted / -0.23 -0.12 0.02 0.12 0.12 0.11 0.19 -0.11
diluted)*
*Key indicators per share have been adjusted with the share issue adjustment
factor.
SHARES, MARKET CAPITALISATION AND TRADING INFORMATION
31 December 2013 31 December 2012
Number of shares 51,503,141 46,821,037
Market capitalisation, EUR million 386.3 356.2
1 Jan - 31 Dec 2013 1 Jan - 31 Dec 2012
Number of shares traded, million 2.2 1.4
1 Jan - 31 December 2013
High Low Average Close
Share price 7.97 5.76 6.86 7.50
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 as described in more detail in the Tonnage Taxation
chapter on page 6.
RELATED PARTY TRANSACTIONS
In September 2013, Finnlines sold MS Europalink to the Grimaldi Group at the
market price of EUR 86 million. The vessel had been chartered out since
November 2012 and was sailing in Grimaldi traffic in the Mediterranean Sea.
Finnlines has cut its fleet overcapacity in the second quarter by chartering MS
Finnarrow for five years to the Grimaldi Group.
In November 2013, Finnlines sold MS Transeuropa to the Grimaldi Group at the
market price of EUR 27 million.
Otherwise there were no material related party transactions during the
reporting period. The business transactions were carried out using market-based
pricing.
© 2024 Nasdaq, Inc. All Rights Reserved |