2012-05-10 13:31:09 CEST
2012-05-10 13:32:14 CEST
REGULATED INFORMATION
Finnlines - Interim report (Q1 and Q3)
FINNLINES PLC INTERIM REPORT JANUARY - MARCH 2012 (unaudited)
Helsinki,Finland, 2012-05-10 13:31 CEST (GLOBE NEWSWIRE) -- Finnlines Plc Stock
Exchange Release 10 May 2012 at 14:30
INTERIM REPORT JANUARY - MARCH 2012 (unaudited)
JANUARY - MARCH 2012 IN BRIEF
MEUR 1-3 2012 1-3 2011 1-12 2011
Revenue 145.0 139.0 605.2
EBITDA 16.0 15.1 84.5
Result before interest and taxes (EBIT) -0.2 -0.1 21.0
% of revenue -0.2 -0.1 3.5
Result before taxes (EBT) -7.1 -6.1 -5.4
Result for the reporting period -5.8 -4.6 -2.5
EPS, EUR -0.12 -0.10 -0.05
Equity ratio, % 28.4 27.9 29.1
Gearing, % 212.9 209.7 199.8
Shareholders' equity/share, EUR 9.02 9.03 9.12
Calculation of key ratios is presented under 'Calculation of ratios'.
FINNLINES' BUSINESS
Finnlines is one of the largest North-European liner shipping companies,
providing sea transport services mainly in the Baltic and the North Sea. In
addition to freight, the Company's ro-pax vessels carry passengers between six
countries and eleven 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, Luxembourg and Poland and a
representative office in Russia. Finnlines is a Finnish listed company and part
of the Italian Grimaldi Group.
GENERAL MARKET DEVELOPMENT
The market volumes in January-March 2012 were on a slightly better level than
in 2011. Based on the statistics by the Finnish Transport Agency, the Finnish
seaborne imports carried in container, lorry and trailer units increased by 2%
and exports by 8% 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 by 2% compared to 2011.
During the same period private and commercial passenger traffic between Finland
and Sweden decreased by 4%. Between Finland and Germany the corresponding
decrease was 2% (Finnish Transport Agency).
FINNLINES' TRAFFIC
During the first quarter the third and the fourth out of six ro-ro newbuildings
(MS Finnsky and MS Finnsun) entered the traffic flying the Finnish flag.
Finnlines operated on average 23 vessels in its own traffic compared to 24
vessels in the same period in 2011.
The cost of bunker remained high throughout the reporting period.
The cargo volumes transported during January-March totalled approximately
156,000 (155,000 in 2011) units, 16,000 (17,000) cars (not including
passengers' cars ) and 520,000 (499,000) tons of freight not possible to
measure in units. In addition, some 118,000 (121,000) private and commercial
passengers were transported.
FINANCIAL RESULTS
The Finnlines Group recorded revenue totalling EUR 145.0 (139.0) million, an
increase of 4.3%. Shipping and Sea Transport Services generated revenue
amounting to EUR 135.4 (126.5) million and Port Operations EUR 15.8 (18.7)
million. The internal revenue between the segments was EUR 6.2 (6.1) million.
Result before interest, taxes, depreciation and amortisation (EBITDA) was EUR
16.0 (15.1) million.
Result before interest and taxes (EBIT) was EUR -0.2 (-0.1) million. The result
includes a non-recurring compensation of EUR 3.4 million from the Jinling
shipyard relating to the first two newbuildings covering loss for reduced
income. Financial income was EUR 0.1 (0.2) million and financial expenses
totalled EUR -7.0 (-6.2) million. Result before taxes (EBT) was EUR -7.1 (-6.1)
million and earnings per share (EPS) were EUR -0.12 (-0.10).
STATEMENT OF FINANCIAL POSITION, FINANCING AND CASH-FLOW
Interest-bearing net debt increased by EUR 12.7 million compared to the same
period in 2011 and amounted to EUR 900.8 (888.0) million. The equity ratio
calculated from the balance sheet was 28.4 (27.9)% and gearing was 212.9
(209.7)%. Vessel lease commitments decreased by EUR 24.7 million from the end
of March 2011 due to the redelivery of chartered tonnage.
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 69.0 million. The company has a commercial paper
programme amounting to EUR 100 million of which the company has issued EUR 7.9
million at the end of March.
CAPITAL EXPENDITURE
Gross capital expenditure in the reporting period totalled EUR 23.9 (24.6)
million and consisted mainly of payments for newbuildings (19.4 million). Total
depreciation amounted to EUR 16.2 (15.2) million. Four of the six newbuildings
ordered from the Jinling shipyard in China have been delivered, MS Finnbreeze
and MS Finnsea in March 2011 and MS Finnsky and MS Finnsun in the beginning of
2012. The last two of the newbuildings are scheduled to be delivered during the
last quarter of 2012.
PERSONNEL
The Group employed an average of 1,991 (2,039) persons during the period,
consisting of 984 (1,102) persons on shore and 1,007 (937) persons at sea. The
average number of sea personnel increased due to two newbuildings taken into
use during the reporting period. The number of shore personnel decreased mainly
due to employee reductions carried out in the Port Operations. The employee
co-operation negotiations with personnel in Kotka were completed in January
2012 resulting in termination of 23 employments in total.
DECISIONS TAKEN BY THE ANNUAL GENERAL MEETING
The Annual General Meeting of Finnlines Plc held on 17 April 2012 approved the
Financial Statements and discharged the members of the Board of Directors and
the President and CEO from liability for the financial year 2011.
The Annual General Meeting approved the Board of Directors' proposal not to pay
any dividend.
The Annual General Meeting decided that the Board of Directors shall have seven
members. The current Board Members were re-elected to the Board: Mr Emanuele
Grimaldi, Mr Gianluca Grimaldi, Mr Diego Pacella, Mr Olav Rakkenes and Mr
Jon-Aksel Torgersen. In addition, Mr. Christer Backman and Ms. Tiina Bäckman
were elected as new Members. The Board of Directors elected Mr Emanuele
Grimaldi as Chairman and Mr Diego Pacella as Vice-Chairman.
The Authorised Public Audit Firm Deloitte & Touche Oy was appointed as the
Company's auditors for 2012.
The Annual General Meeting authorised the Board of Directors to resolve on the
issuance of new shares in one or several tranches so that the total number of
shares issued based on the authorization is 20 000 000 at maximum. The
authorization is valid until the next Annual General Meeting. The authorization
replaces the Annual General Meeting's authorization to decide on a share issue
of 19 April 2011.
RISKS
The 2011 Financial statements, published in March 2012, contains a thorough
description of Finnlines' risks and risk management, and there are no essential
changes to that report.
ESSENTIAL CHANGES IN LEGAL PROCEEDINGS
The 2011 Financial statements contains a thorough description of legal
proceedings and the following is a description of the changes compared to what
was reported in the financial statements:
In January 2012, Mutual Pension Insurance Company Ilmarinen filed an
application for a leave to appeal and a petition of appeal with the Supreme
Court regarding the judgement of the Helsinki Court of Appeal of 29 November
2011 in which the Court of Appeal overruled the judgement rendered by the
Helsinki District Court on 3 March 2010 and dismissed all claims presented
against Finnlines Plc by Ilmarinen.
EVENTS AFTER THE REPORTING PERIOD
There are no essential events after the reporting period.
OUTLOOK FOR THE REMAINING PART OF 2012
The Board expects 2012 still to be a volatile and challenging year. The Company
is well prepared to face the market challenges.
The second interim report of 2012 for the period of 1 January - 30 June will be
published on Thursday, 26 July 2012.
Finnlines Plc
The Board of Directors
Uwe Bakosch
President/CEO
ENCLOSURES
- Consolidated statement of comprehensive income, IFRS
- Consolidated statement of financial position, IFRS
- Consolidated statement of changes in equity, IFRS
- Consolidated cash flow statement, IFRS (condensed)
- Revenue and result by business segments
- Property, plant and equipment
- Contingencies and commitments
- Shares, market capitalisation and trading information
- Calculation of ratios
DISTRIBUTION
NASDAQ OMX Helsinki Ltd.
Main media
This information is unaudited.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, IFRS
EUR 1,000 1 Jan - 31 1 Jan - 31 1 Jan - 31
Mar 2012 Mar 2011 Dec 2011
Revenue 145,009 139,047 605,208
Other income from operations 4,650 437 2,515
Materials and services -64,865 -56,486 -247,262
Personnel expenses -27,046 -28,433 -107,948
Depreciation, amortisation and write-offs -16,189 -15,168 -63,512
Other operating expenses -41,797 -39,514 -167,972
Total operating expenses -149,897 -139,601 -586,695
Result before interest and taxes (EBIT) -239 -117 21,028
Financial income 119 177 911
Financial expenses -6,996 -6,180 -27,370
Result before taxes (EBT) -7,116 -6,120 -5,431
Income taxes 1,327 1,514 2,925
Result for the reporting period -5,789 -4,606 -2,506
Other comprehensive income:
Exchange differences on translating foreign 5 1 -3
operations
Changes in cash flow hedging reserve
Fair value changes -233 -1,183 -95
Transfer to fixed assets 1,755 2,004
Tax effect, net -373 308 -496
Effect of the tax rate change -48
Total comprehensive income for the reporting -4,635 -5,480 -1,145
period
Result for the reporting period attributable
to:
Parent company shareholders -5,726 -4,555 -2,517
Non-controlling interests -63 -51 10
-5,789 -4,606 -2,506
Total comprehensive income for the reporting
period attributable to:
Parent company shareholders -4,572 -5,430 -1,155
Non-controlling interests -63 -51 10
-4,635 -5,480 -1,145
Result for the reporting period attributable
to parent company shareholders calculated
as earnings per share (EUR/share):
Undiluted / diluted earnings per share -0.12 -0.10 -0.05
Average number of shares:
Undiluted / diluted 46,821,037 46,821,037 46,821,037
CONSOLIDATED STATEMENT OF FINANCIAL POSITION, IFRS
EUR 1,000 31 Mar 31 Mar 31 Dec
2012 2011 2011
ASSETS
Non-current assets
Property, plant and equipment 1,266,325 1,273,388 1,258,306
Goodwill 105,644 105,644 105,644
Intangible assets 7,731 9,366 8,049
Investment properties 0
Share of associated companies 0
Other financial assets 4,582 4,562 4,582
Receivables 1,243 1,762 1,250
Deferred tax assets 4,238 4,491 4,395
1,389,764 1,399,213 1,382,225
Current assets
Inventories 9,871 8,469 8,903
Accounts receivable and other receivables 90,021 97,357 76,660
Income tax receivables 526 82 73
Bank and cash 2,713 11,583 4,263
103,131 117,491 89,898
Total assets 1,492,895 1,516,703 1,472,123
EQUITY
Equity attributable to parent company
shareholders
Share capital 93,642 93,642 93,642
Share premium account 24,525 24,525 24,525
Fair value reserve -1,260 -4,648 -2,409
Translation differences 119 117 114
Unrestricted equity reserve 21,015 21,015 21,015
Retained earnings 284,291 287,979 290,017
422,333 422,630 426,905
Non-controlling interests 814 816 877
Total equity 423,147 423,447 427,782
LIABILITIES
Long-term liabilities
Deferred tax liabilities 74,437 87,767 76,015
Interest-free liabilities 4 8 8
Pension liabilities 2,450 2,297 2,462
Provisions 4,892 4,562 4,562
Interest-bearing liabilities 649,598 692,539 665,496
731,382 787,174 748,544
Current liabilities
Accounts payable and other liabilities 84,404 98,862 102,181
Income tax liabilities 66 104 65
Provisions 30 30 30
Current interest-bearing liabilities 253,866 207,088 193,521
338,366 306,083 295,797
Total liabilities 1,069,748 1,093,257 1,044,341
Total equity and liabilities 1,492,895 1,516,703 1,472,123
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 2011, IFRS
EUR 1,000 Equity attributable to parent company shareholders
Share Share Translation Fair Unrestricted
capita issue differences value equity
l premium reserves reserve
Equity 1 January 2011 93,642 24,525 117 -3,773 21,015
Comprehensive income
for the reporting
period:
Exchange differences on 1
translating foreign
operations
Changes in cash flow
hedging reserve
Fair value changes -1,183
Tax effect, net 308
Total comprehensive 1 -875
income for the
reporting period
Equity 31 March 2011 93,642 24,525 117 -4,648 21,015
EUR 1,000 Equity attributable Non-controlling Total
to parent company interests equity
shareholders
Retained Total
earnings
Equity 1 January 2011 292,534 428,060 867 428,927
Comprehensive income for the
reporting period:
Result for the reporting period -4,555 -4,555 -51 -4,606
Exchange differences on 1 1
translating foreign operations
Changes in cash flow hedging
reserve
Fair value changes -1,183 -1,183
Tax effect, net 308 308
Total comprehensive income for -4,555 -5,430 -51 -5,480
the reporting period
Equity 31 March 2011 287,979 422,630 816 423,447
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 2012, IFRS
EUR 1,000 Equity attributable to parent company shareholders
Share Share Translation Fair Unrestricted
capita issue differences value equity
l premium reserves reserve
Equity 1 January 2012 93,642 24,525 114 -2,409 21,015
Comprehensive income
for the reporting
period:
Exchange differences on 5
translating foreign
operations
Changes in cash flow
hedging reserve
Fair value changes -233
Transfer to fixed 1,755
assets
Tax effect, net -373
Total comprehensive 5 1,149
income for the
reporting period
Equity 31 March 2012 93,642 24,525 119 -1,260 21,015
EUR 1,000 Equity attributable Non-controlling Total
to parent company interests equity
shareholders
Retained Total
earnings
Equity 1 January 2012 290,017 426,905 877 427,782
Comprehensive income for the
reporting period:
Result for the reporting period -5,726 -5,726 -63 -5,789
Exchange differences on 5 5
translating foreign operations
Changes in cash flow hedging
reserve
Fair value changes -233 -233
Transfer to fixed assets 1,755 1,755
Tax effect, net -373 -373
Total comprehensive income for -5,726 -4,572 -63 -4,635
the reporting period
Equity 31 March 2012 284,291 422,333 814 423,147
CONSOLIDATED CASH FLOW STATEMENT, IFRS (CONDENSED)
EUR 1,000 1 Jan-31 Mar 1 Jan-31 Mar 1 Jan-31 Dec
2012 2011 2011
Cash flows from operating activities
Result for the reporting period -5,789 -4,606 -2,506
Non-cash transactions and other 21,496 19,600 85,570
adjustments
Changes in working capital -32,692 -8,679 4,840
Net financial items and income taxes -6,384 -16,750 -37,065
Net cash generated from operating -23,369 -10,434 50,839
activities
Cash flow from investing activities
Net investments in tangible and -22,785 -24,954 -62,398
intangible assets
Investments in shares -22
Proceeds from sale of investments 59
Other investing activities 285 56 9,371
Net cash used in investing -22,501 -24,897 -52,991
activities
Cash flows from financing activities
Loan withdrawals 16,440 16,880 41,440
Net increase in current 53,956 43,473 28,102
interest-bearing liabilities
Repayment of loans -26,091 -19,938 -70,209
Increase / decrease in long-term 9 47 637
receivables
Net cash from (used in) financing 44,314 40,462 -30
activities
Change in cash and cash equivalents -1,555 5,130 -2,181
Cash and cash equivalents 1 January 4,263 6,452 6,452
Effect of foreign exchange rate 5 0 -8
changes
Cash and cash equivalents at the end 2,713 11,583 4,263
of period
REVENUE AND RESULT BY BUSINESS SEGMENTS
1 Jan-31 Mar 1 Jan-31 Mar 1 Jan-31 Dec
2012 2011 2011
MEUR % MEUR % MEUR %
Revenue
Shipping and sea transport services 135.4 93.4 126.5 91.0 563.3 93.1
Port operations 15.8 10.9 18.7 13.4 67.7 11.2
Intra-group revenue -6.2 -4.3 -6.1 -4.4 -25.8 -4.3
External sales 145.0 100.0 139.0 100.0 605.2 100.0
Result before interest and taxes
Shipping and sea transport services 2.4 2.9 30.8
Port operations -2.7 -3.0 -9.8
Result before interest and taxes -0.2 -0.1 21.0
(EBIT) total
Financial items -6.9 -6.0 -26.5
Result before taxes (EBT) -7.1 -6.1 -5.4
Income taxes 1.3 1.5 2.9
Result for the reporting period -5.8 -4.6 -2.5
PROPERTY, PLANT AND EQUIPMENT 2011
EUR 1,000 Land Buildin Vessels Machine Advance Total
gs ry and payments &
equipme acquisitions
nt under constr.
Acquisition cost 1 72 78,923 1,302,037 100,460 167,050 1,648,543
January 2011
Exchange rate -15 -15
differences
Increases 1 1,540 66 22,761 24,368
Disposals -61 -256 -317
Reclassifications 12 -12 0
Acquisition cost 72 78,924 1,303,528 100,255 189,799 1,672,579
31 March 2011
Accumulated -10,510 -319,792 -54,615 -384,917
depreciation,
amortisation and
write-offs 1
January 2011
Exchange rate 13 13
differences
Cumulative 61 256 317
depreciation on
reclassifications
and disposals
Depreciation for -684 -12,473 -1,447 -14,604
the reporting
period
Accumulated -11,195 -332,204 -55,792 -399,191
depreciation,
amortisation and
write-offs 31
March 2011
Book value 31 72 67,730 971,324 44,463 189,799 1,273,388
March 2011
PROPERTY, PLANT AND EQUIPMENT 2012
EUR 1,000 Land Buildin Vessels Machine Advance Total
gs ry and payments &
equipme acquisitions
nt under constr.
Acquisition cost 1 72 76,758 1,401,930 90,543 130,588 1,699,892
January 2012
Exchange rate 4 4
differences
Increases 464 3,773 64 19,516 23,817
Disposals -47 -485 -531
Reclassifications 23 92,765 -92,787 0
Acquisition cost 72 77,245 1,498,422 90,125 57,317 1,723,180
31 March 2012
Accumulated -12,916 -372,235 -56,435 -441,586
depreciation,
amortisation and
write-offs 1
January 2012
Exchange rate -4 -4
differences
Cumulative 47 444 491
depreciation on
reclassifications
and disposals
Depreciation for -648 -13,854 -1,254 -15,756
the reporting
period
Accumulated -13,564 -386,043 -57,249 -456,855
depreciation,
amortisation and
write-offs 31
March 2012
Book value 31 72 63,681 1,112,379 32,877 57,317 1,266,325
March 2012
CONTINGENCIES AND COMMITMENTS
EUR 1,000 31 Mar 31 Mar 31 Dec
2012 2011 2011
Minimum leases payable in relation to
fixed-term leases:
Vessel leases (Group as lessee):
Within 12 months 11,109 24,736 14,785
1-5 years 11,109
11,109 35,845 14,785
Vessel leases (Group as lessor):
Within 12 months 570 0 910
570 0 910
Other leases (Group as lessee):
Within 12 months 6,696 6,589 6,796
1-5 years 17,117 17,971 17,551
After five years 12,439 15,162 13,164
36,252 39,722 37,511
Other leases (Group as lessor):
Within 12 months 199 347 204
199 347 204
Collateral given
Loans from financial institutions 807,807 725,160 730,563
Vessel mortgages provided as guarantees for the 1,240,500 1,189,500 1,189,500
above loans
Other collateral given on own behalf
Pledged deposits 469 469 476
Corporate mortgages 606 606 606
1,075 1,075 1,082
Other obligations 37,451 81,536 56,407
Obligations of parent company on behalf of
subsidiaries
Guarantees 6,913 6,913 6,913
VAT adjustment liability related to real estate 9,628 10,811 9,839
investments
Open derivative instruments:
Fair value Contract amount
1000 EUR 31 Mar 31 Mar 31 Dec 31 Mar 31 Mar 31 Dec 2012 2011 2011 2012 2011 2011
Currency 23 -88 231 7,338 13,796 7,574
derivatives
SHARES, MARKET CAPITALISATION AND TRADING INFORMATION
31 March 2012 31 March 2011
Number of shares 46,821,037 46,821,037
Market capitalisation, 327.7 369.9
EUR million
1 Jan - 31 Mar 2012 1 Jan - 31 Mar 2011
Number of shares traded, million 0.4 0.6
1 Jan - 31 Mar 2012
High Low Average Close
Share price 7.84 6.66 7.01 7.00
CALCULATION OF RATIOS
Earnings per share (EPS), EUR :
Result attributable to parent company shareholders
----------------------------------------------------------------------
Weighted average number of outstanding shares
Shareholders' equity per share, EUR :
Shareholders' equity attributable to parent company shareholders
--------------------------------------------------------------------------------
---------
Undiluted number of shares at the end of period
Gearing, %:
Interest-bearing liabilities - cash and bank equivalents
--------------------------------------------------------------------------- X
100
Total equity
Equity ratio, %:
Total equity
---------------------------------------------- X 100
Assets total - received advances
Taxes corresponding to the result for the reporting period are presented as
income taxes in the interim report.
RELATED PARTY TRANSACTIONS
As from autumn 2011, Finnlines Group has chartered out one ro-pax vessel to the
Grimaldi Group. The charter hire contract is not exceeding one year's time and
is done at current market price level. Otherwise there were no material related
party transactions during the reporting period. The business transactions were
carried out using market-based pricing.
REPORTING AND ACCOUNTING POLICIES
This 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 beginning of the reporting period
corresponding to those described in the 2011 Financial Statements. These new or
revised standards have not had an effect on the reported figures. In other
respects, the same accounting policies have been followed as in the previous
annual financial statements. All figures in the accounts have been rounded and
consequently the sum of individual figures can deviate from the presented sum
figure.
The preparation of the financial statements in accordance with IFRS requires
management to make estimates and assumptions that affect the valuation of the
reported assets and liabilities and other information such as contingent
liabilities and the recognition of income and expenses in the income statement.
Although the estimates are based on the management's best knowledge of current
events and actions, actual results may differ from the estimates.
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