2013-11-05 15:41:29 CET
2013-11-05 15:42:32 CET
REGULATED INFORMATION
Finnlines - Interim report (Q1 and Q3)
Finnlines Plc Interim report January - September 2013 (unaudited)
Helsinki, Finland, 2013-11-05 15:41 CET (GLOBE NEWSWIRE) -- Finnlines Plc Stock
Exchange Release 5 November 2013 at 16.40
INTERIM REPORT JANUARY - SEPTEMBER 2013 (unaudited)
SUMMARY
January - September 2013
-- Revenue EUR 433.3 million (EUR 470.9 million prev. year), decrease 8.0%
-- Result before interest, taxes, depreciation and amortisation (EBITDA) EUR
63.4 million (EUR 78.1 million), decrease 18.8%
-- Result for the reporting period EUR -3.9 million (EUR 5.3 million)
-- Earnings per share were -0.08 (0.11) EUR/share
July - September 2013
-- Revenue EUR 149.7 million (EUR 161.3 million prev. year), decrease 7.2%
-- Result before interest, taxes, depreciation and amortisation (EBITDA) EUR
28.6 million (EUR 30.8 million), decrease 7.2%
-- Result for the reporting period EUR 6.1 million (EUR 5.3 million)
-- Earnings per share were 0.12 (0.11) EUR/share
JANUARY - SEPTEMBER 2013 IN BRIEF
MEUR 1-9 1-9 7-9 2013 7-9 2012 1-12 2012
2013* 2012*
Revenue 433.3 470.9 149.7 161.3 609.3
Result before interest, taxes, 63.4 78.1 28.6 30.8 89.8
depreciation and amortisation
(EBITDA)
Result before interest and taxes 12.8 28.8 11.7 14.3 23.7
(EBIT)
% of revenue 2.9 6.1 7.8 8.9 3.9
Result for the reporting period -3.9 5.3 6.1 5.3 -0.1
Earnings per share (EPS), EUR** -0.08 0.11 0.12 0.11 0.00
Equity ratio, % 33.4 29.3 33.4 29.3 29.0
Gearing, % 163.5 202.4 163.5 202.4 204.9
Shareholders' equity/share, EUR 8.78 9.23 8.78 9.23 9.14
Calculation of key ratios is presented under 'Calculation of ratios'.
* The result for January-September 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 1.2 million from the sale of MS Europalink. The result for
January-September 2012 includes a non-recurring compensation of EUR 3.4 million
from the Jinling shipyard and one-time cost items amounting to EUR 3.2 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 ten 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
Based on the statistics by the Finnish Transport Agency for January-September,
the Finnish seaborne imports carried in container, lorry and trailer units
decreased by 3 per cent whereas exports increased by 5 per cent (measured in
tons) compared to the same period in 2012. According to the statistics
published by Shippax for January-September, trailer and lorry volumes
transported by sea between Southern Sweden and Germany increased by 3 per cent
compared to 2012. During the same period private and commercial passenger
traffic between Finland and Sweden decreased by 1 per cent. Between Finland and
Germany the corresponding traffic decreased by 17 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 in
the second quarter MS Finnarrow to the Grimaldi Group at market price.
In the third quarter Finnlines started sailings in the new services in Baltic
Sea and North Sea. The expansion of liner service network is a result of long
term contracts entered with key customers.
During the third quarter Finnlines operated on average 25 vessels in its own
traffic compared to 23 vessels in the same period in 2012.
The cargo volumes transported during January-September totalled approximately
478 thousand (478 thousand in 2012, corrected figure) cargo units, 43 thousand
(50 thousand, corrected figure) cars (not including passengers' cars ) and
1,649 thousand (1,595 thousand) tons of freight not possible to measure in
units. In addition, some 443 thousand (487 thousand) private and commercial
passengers were transported.
FINANCIAL RESULTS
January - September 2013
The Finnlines Group recorded revenue totalling EUR 433.3 (470.9) million, a
decrease of 8.0 per cent compared to the same period in 2012. Shipping and Sea
Transport Services generated revenue amounting to EUR 413.8 (444.4) million and
Port Operations EUR 38.5 (44.7) million. The internal revenue between the
segments was EUR 19.0 (18.2) million.
Result before interest, taxes, depreciation and amortisation(EBITDA) was EUR
63.4 (78.1) million, a decrease of 18.8 per cent.
Result before interest and taxes (EBIT) was EUR 12.8 (28.8) million. The result
for 2013 includes a non-recurring cost item of about EUR 1.0 million related to
general increases of the collective agreement and sales profit of EUR 1.2
million from the sales of MS Europalink. The result for 2012 includes a
non-recurring compensation of EUR 3.4 million from the Jinling shipyard and
one-time cost items amounting to EUR 3.2 million mainly relating to the
arrangements of leased property and settlements with the personnel. The
comparable result before interest and taxes (EBIT) adjusted with above
mentioned items was EUR 12.6 (28.6) million. The result is affected by the
seasonality of the cargo volumes, which are typically on a lower level in the
beginning of the year. Also the number of passengers is modest during the
winter period compared to the summer season. Financial income was EUR 0.3 (0.7)
million and financial expenses totalled EUR -19.2 (-20.1) million. Result for
the reporting period was EUR -3.9 (5.3) million and earnings per share (EPS)
were EUR -0.08 (0.11).
July - September 2013
The Finnlines Group recorded revenue totalling EUR 149.7 (161.3) million, a
decrease of 7.2 per cent compared to the same period in 2012. Shipping and Sea
Transport Services generated revenue amounting to EUR 144.2 (153.2) million and
Port Operations EUR 11.4 (13.7) million. The internal revenue between the
segments was EUR 5.9 (5.6) million.
Result before interest, taxes, depreciation and amortisation(EBITDA) was EUR
28.6(30.8)million, a decrease of 7.2 per cent.
Result before interest and taxes (EBIT) was EUR 11.7 (14.3) million. Financial
income was EUR 0.1 (0.2) million and financial expenses totalled EUR -6.3
(-6.4) million. Result for the reporting period was EUR 6.1 (5.3) million and
earnings per share (EPS) were EUR 0.12 (0.11).
STATEMENT OF FINANCIAL POSITION, FINANCING AND CASH-FLOW
Interest-bearing net debt decreased by EUR 135.7 million and amounted to EUR
741.2 (876.9) million. The company has a commercial paper programme amounting
to EUR 100 million of which the company has issued EUR 51.0 (13.6) million at
the end of September. The equity ratio calculated from the balance sheet
improved to 33.4 per cent (29.3) and gearing dropped to 163.5 per cent (202.4).
Due to the expansion of liner service network vessel lease commitments
increased by EUR 24.4 million to EUR 28.1 million compared to the end of
September 2012.
At the end of the period, cash and deposits together with unused committed
working capital credits amounted to EUR 68.8 (46.0) million.
The Board of Directors of Finnlines Plc decided on the 7th of 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 gross
proceeds raised by Finnlines in the rights issue were approximately EUR 28.8
million. The net proceeds are 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 working capital to the group EUR 15
million. In September, Finnlines sold the vessel Europalink to the Grimaldi
Group at EUR 86 million.
CAPITAL EXPENDITURE
Finnlines Group gross capital expenditure in the reporting period totalled EUR
9.4 (45.5) million. Total depreciation amounted to EUR 50.7 (49.3) million. The
investments are mainly consisting of normal replacement costs of fixed assets
and accrued dry-docking cost of ships. The investment programme of six ro-ro
newbuildings was finalised in 2012 and there are no decisions on any new vessel
investments.
PERSONNEL
The Group employed an average of 1,878 (2,057) persons during the period,
consisting of 927 (979) persons on shore and 951 (1,078) persons at sea. In
August, Finnsteve Oy Ab started employer-employee adaption negotiations with
the personnel in Turku, where the company employs 100 persons.
DECISIONS TAKEN BY THE ANNUAL GENERAL MEETING
The Annual General Meeting of Finnlines Plc approved the Financial Statements
and discharged the members of the Board of Directors and President and CEO from
liability for the financial year 2012.
It was decided to accept the proposal of the Board of Directors that no
dividend shall be paid for the year 2012.
The meeting decided that the number of Board Members be seven. All of the
current Board Members were re-elected; Mr Emanuele Grimaldi, Mr Gianluca
Grimaldi, Mr Diego Pacella, Mr Olav K Rakkenes, Mr Jon-Aksel Torgersen, Mr
Christer Backman and Ms Tiina Bäckman. The yearly compensation to the Board
will remain unchanged as follows: the Chairman EUR 50,000, the Vice-Chairman
EUR 40,000 and the Member EUR 30,000.
The Annual General Meeting elected KPMG Oy Ab as the Company's auditor for the
fiscal year 2013. It was decided that the external auditors will be reimbursed
according to invoice.
It was decided to authorise the Board of Directors to resolve on the issuance
of shares in one or several tranches. The Board of Directors may, on the basis
of the authorisation, resolve on the issuance of shares in one or several
tranches, so that the aggregate number of shares to be issued shall not exceed
10,000,000 shares. The Board of Directors decides on all the conditions of the
issuance of shares. The issuance of shares may be carried out in deviation from
the shareholders' pre-emptive rights (directed issue). The authorisation is
valid until the next Annual General Meeting. The authorisation replaces the
Annual General Meeting's authorisation to decide on a share issue of 17 April
2012.
It was also decided to change § 10 of the Articles of Association of the
Company regarding the convocation way of announcement of the Shareholder
Meeting as follows: “The Shareholders' Meeting shall be announced in a national
newspaper chosen by the Board or on the web site of the company, no earlier
than three months before the Shareholders' Meeting and no later than 21 days
before the Shareholders' Meeting. The invitation must in any event be given no
later than nine (9) days before the record date of the Shareholders Meeting.”
SHARE ISSUE
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. The Company's largest
shareholder, Grimaldi Compagnia di Navigazione S.p.A., committed on its own and
its subsidiaries' behalf to subscribe for its relative portion of the new
shares and gave an underwriting commitment concerning all new shares that would
otherwise possible remain unsubscribed for in the offering.
All offered shares were subscribed for in the rights issue completed at the end
of May. A total of 4,008,441 shares, representing approximately 85.6 per cent
of the offered shares, were subscribed in the primary subscription. In the
secondary subscription 7,451 shares, representing 0.2 per cent of the offered
shares, were subscribed for. The remaining 666,212 shares, approximately 14.2
per cent of the offered shares, were subscribed for based on the underwriting
commitment.
Shares subcribed for in the primary subscription were subject to public trading
on NASDAQ OMX Helsinki Ltd since 3 June 2013. The new shares are traded
together with the old shares as of 7 June 2013.
The gross proceeds raised by Finnlines in the rights issue were approximately
EUR 28.8 million. The net proceeds are used to strengthen the Company's capital
structure.
Following the registration of the new shares with the Trade Register, the
number of Finnlines Plc's shares amounts to 51,503,141 shares and share capital
to EUR 103,006,282.00.
RISKS AND RISK MANAGEMENT
The 2012 Financial statements, published in March 2013, contains a thorough
description of Finnlines' risks and risk management, and there are no essential
changes to that report.
CHANGES IN ESSENTIAL LEGAL PROCEEDINGS
The 2012 Financial statements, published in March 2013, contains a thorough
description of essential legal proceedings and the following is a description
of the changes compared to what was reported in the financial statements:
A number of former and current employees of the Company, represented by the
Union of Salaried Employees, has brought an action against the Company at theCity Court of Helsinki on adherance to the general increases of the collective
agreement. The Court has in February 2012 rendered the decision in favour of
the employees and ordered the Company to compensate the employees with about
EUR 0.2 million in all. The Company has appealed the decision partly at the
Helsinki Court of Appeal. The Helsinki Court of Appeal rendered its decision in
April 2013 in favour of the employees.
TONNAGE TAXATION
The Finnish Parliament has 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 on 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 1.1.2013 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 the distributable funds 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 1.1.2013 into 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.
According to the tonnage tax regime in the transition moment 1.1.2013 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 done from the second year
onwards. The yearly maximum of deductable amount cannot exceed the maximum
value of 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
1.1.2013 according to the above mentioned tonnage tax act.
EVENTS AFTER THE REPORTING PERIOD
Finnlines has sold the vessels Translubeca and Transeuropa. MS Transeuropa has
been sold to the Grimaldi Group at market price, which is slightly above the
book value of the vessel. MS Translubeca has been sold to an external party at
market price, which is also slightly above book value of the vessel. The sales
will have minor positive effect on Finnlines' result in the last quarter of
2013.
The Finnish prosecutor has taken a decision, in so called Lattakia case
relating to a container consisting of military equiment, not to prosecute the
three employees of Finnlines Group.
The Board of Directors of Finnlines Plc has accepted Mr Uwe Bakosch's request
to leave his function as the CEO and President of Finnlines Plc. Mr Bakosch
will continue as a Managing Director of Finnlines Deutschland GmbH. The Board
of Directors has appointed Mr Emanuele Grimaldi as the new CEO and President of
Finnlines Plc starting on 5 November 2013. On the same date the Board of
Directors has elected Mr Jon-Aksel Torgersen as the new Chairman of the Board
of Directors as Mr Grimaldi has stepped down as the Chairman of the Board of
Directors.
OUTLOOK AND OPERATING ENVIRONMENT
Finnlines has continued the re-structuring of its fleet and organisation in
order to improve cost efficiency of its vessels and its overall logistics
system. With the completed deliveries of the six newbuildings the dependency on
a volatile charter market has been further reduced.
The Board expects that the remaining part of the year 2013 will still be
volatile and challenging. The result for the reporting period for the last
quarter of 2013 is expected to improve over the corresponding quarter in 2012.
The Group Financial Statement bulletin for the period 1 January - 31 December
2013 will be published on Thursday, 27 February 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 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's consolidated statement of financial position for
2012 have 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 was included in tonnage taxation from January 2013. In tonnage
taxation, shipping operations shifted 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 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. 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 Jul-30 1 Jul-30 1 Jan-30 1 Jan-30 1 Jan-31
Sep 2013 Sep 2012 Sep 2013 Sep 2012 Dec 2012
Revenue 149,661 161,335 433,303 470,930 609,329
Other income from 1,853 244 2,636 5,222 5,702
operations
Materials and -59,465 -60,970 -178,021 -188,704 -247,237
services
Personnel expenses -23,887 -27,472 -78,427 -81,350 -109,009
Depreciation, -16,823 -16,451 -50,668 -49,322 -66,095
amortisation and
write-offs
Other operating -39,609 -42,375 -116,062 -127,986 -169,030
expenses
Total operating -139,784 -147,268 -423,178 -447,363 -591,371
expenses
Result before 11,729 14,311 12,761 28,790 23,660
interest and taxes
(EBIT)
Financial income 107 179 348 716 747
Financial expenses -6,262 -6,361 -19,210 -20,051 -26,013
Result before taxes 5,575 8,128 -6,101 9,454 -1,606
(EBT)
Income taxes 554 -2,797 2,232 -4,187 1,539
Result for the 6,128 5,331 -3,869 5,266 -66
reporting period
Other comprehensive
income:
Other comprehensive
income to be
reclassified to
profit and loss in
subsequent periods:
Exchange differences 14 0 -10 14 2
on translating
foreign operations
Changes in cash flow
hedging reserve
Fair value changes -204 9 13
Transfer to fixed 1,755 3,178
assets
Tax effect, net -5 50 2 -432 -782
Other comprehensive 8 -154 -7 1,346 2,411
income to be
reclassified to
profit and loss in
subsequent periods,
total
Other comprehensive
income not being
reclassified to
profit and loss in
subsequent periods:
Defined benefit plan -150
actuarial
gains/losses*
Tax effect, net 7
Other comprehensive -143
income not being
reclassified to
profit and loss in
subsequent periods,
total
Total comprehensive 6,136 5,178 -3,877 6,613 2,201
income for the
reporting period
Result for the
reporting period
attributable to:
Parent company 6,076 5,299 -3,879 5,305 -27
shareholders
Non-controlling 52 33 10 -38 -39
interests
6,128 5,331 -3,869 5,266 -66
Total comprehensive
income for the
reporting period
attributable to:
Parent company 6,084 5,145 -3,887 6,651 2,241
shareholders
Non-controlling 52 33 10 -38 -39
interests
6,136 5,178 -3,877 6,613 2,201
Result for the
reporting period
attributable to
parent company
shareholders
calculated as
earnings per share
(EUR/share)**:
Undiluted / diluted 0.12 0.11 -0.08 0.11 0.00
earnings per
share**
Average number of
shares:
Undiluted / diluted 51,503,141 47,343,662 49,202,477 47,343,662 47,343,662
* 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
Restated* Restated*
EUR 1,000 30 Sep 30 Sep 31 Dec
2013 2012 2012
ASSETS
Non-current assets
Property, plant and equipment 1,098,516 1,255,234 1,260,295
Goodwill 105,644 105,644 105,644
Intangible assets 5,941 6,923 6,629
Other financial assets 4,581 4,582 4,581
Receivables 483 969 768
Deferred tax assets 1,428 4,164 1,792
1,216,592 1,377,516 1,379,709
Current assets
Inventories 11,360 8,913 9,759
Accounts receivable and other receivables 90,475 89,392 74,087
Income tax receivables 1 123 24
Bank and cash 4,099 2,920 16,282
105,934 101,347 100,151
Non-current assets held for sale 36,620
Total assets 1,359,146 1,478,862 1,479,861
EQUITY
Equity attributable to parent company
shareholders
Share capital 103,006 93,642 93,642
Share premium account 24,525 24,525 24,525
Fair value reserve -1,077 0
Translation differences 109 128 116
Unrestricted equity reserve 40,016 21,015 21,015
Retained earnings 284,773 294,127 288,652
452,429 432,361 427,951
Non-controlling interests 848 839 838
Total equity 453,277 433,200 428,788
LIABILITIES
Long-term liabilities
Deferred tax liabilities 68,497 79,639 71,444
Interest-free liabilities 4,349 4 1,325
Pension liabilities 3,711 3,590 3,710
Provisions 5,052 4,892 5,100
Interest-bearing liabilities** 549,404 639,322 712,985
631,014 727,448 794,564
Current liabilities
Accounts payable and other liabilities 78,864 77,651 74,504
Income tax liabilities 25 18 108
Provisions 60 30 48
Current interest-bearing liabilities** 195,907 240,517 181,848
274,856 318,215 256,508
Total liabilities 905,869 1,045,663 1,051,072
Total equity and liabilities 1,359,146 1,478,862 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, the Finnlines' consolidated statement of financial position for 2012
have 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 move
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 -10
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 30 September 2013 103,006 24,525 109 40,016
EUR 1,000 Equity attributable Non-controlling Total
to parent company interests equity
shareholders
Retained Total
earnings
Reported equity 1 January 2013 289,990 429,289 838 430,127
Effect of IAS 19 Employee -1,338 -1,338 -1,338
benefits standard
Restated equity 1 January 2013 288,652 427,951 838 428,788
Comprehensive income for the
reporting period:
Result for the reporting period -3,879 -3,879 10 -3,869
Exchange differences on -10 -10
translating foreign operations
Changes in cash flow hedging
reserve
Fair value changes
Transfer to fixed assets
Tax effect, net 2 2
Total comprehensive income for -3,879 -3,887 10 -3,877
the reporting period
Share issue 28,365 28,365
Equity 30 September 2013 284,773 452,429 848 453,277
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 14
on translating
foreign operations
Changes in cash flow
hedging reserve
Fair value changes 9
Transfer to fixed 1,755
assets
Tax effect, net -432
Total comprehensive 14 1,332
income for the
reporting period
Equity 30 September 93,642 24,525 128 -1,077 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 5,305 5,305 -38 5,266
Exchange differences on 14 14
translating foreign operations
Changes in cash flow hedging
reserve
Fair value changes 9 9
Transfer to fixed assets 1,755 1,755
Tax effect, net -432 -432
Total comprehensive income for 5,305 6,651 -38 6,613
the reporting period
Equity 30 September 2012 294,127 432,361 839 433,200
CONSOLIDATED STATEMENT OF CASH FLOWS, IFRS (CONDENSED)
EUR 1,000 1 Jan-30 1 Jan-30 1 Jan-31
Sep 2013 Sep 2012 Dec 2012
Cash flows from operating activities
Result for the reporting period -3,869 5,266 -66
Non-cash transactions and other adjustments 65,601 72,572 89,253
Changes in working capital -9,536 -33,715 -26,481
Net financial items and income taxes -21,947 -22,748 -25,587
Net cash generated from operating activities 30,248 21,376 37,118
Cash flow from investing activities
Net investments in tangible and intangible -10,265 -44,091 -63,121
assets
Proceeds from sale of investments 2
Other investing activities 86,503 706 982
Net cash used in investing activities 76,238 -43,385 -62,136
Cash flows from financing activities*
Share issue 28,365
Loan withdrawals 173,773 207,400 282,772
Net increase (+) / net decrease (-) in 43 -34,114 -34,602
current interest-bearing liabilities
Repayment of loans -321,077 -152,657 -211,377
Increase / decrease in long-term receivables 229 28 237
Net cash from (used in) financing activities -118,667 20,657 37,030
Change in cash and cash equivalents -12,181 -1,352 12,012
Cash and cash equivalents 1 January 16,282 4,263 4,263
Effect of foreign exchange rate changes -3 8 7
Cash and cash equivalents at the end of 4,099 2,920 16,282
period
* Activities related to revolving credit facilities, of which the company can
unilaterally move 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 Jul-30 Sep 1 Jul-30 Sep 1 Jan-30 Sep 1 Jan-30 Sep 1 Jan-31 Dec
2013 2012 2013 2012 2012
MEUR % MEUR % MEUR % MEUR % MEUR %
Revenue
Shipping 144.2 96.3 153.2 95.0 413.8 95.5 444.4 94.4 574.8 94.3
and sea
transport
services
Port 11.4 7.6 13.7 8.5 38.5 8.9 44.7 9.5 58.5 9.6
operation
s
Intra-grou -5.9 -4.0 -5.6 -3.5 -19.0 -4.4 -18.2 -3.9 -24.0 -3.9
p revenue
External 149.7 100.0 161.3 100.0 433.3 100.0 470.9 100.0 609.3 100.0
sales
Result
before
interest
and taxes
Shipping 13.5 16.4 19.7 35.3 34.0
and sea
transport
services
Port -1.8 -2.1 -7.0 -6.5 -10.4
operation
s
Result 11.7 14.3 12.8 28.8 23.7
before
interest
and taxes
(EBIT)
total
Financial -6.2 -6.2 -18.9 -19.3 -25.3
items
Result 5.6 8.1 -6.1 9.5 -1.6
before
taxes
(EBT)
Income 0.6 -2.8 2.2 -4.2 1.5
taxes
Result for 6.1 5.3 -3.9 5.3 -0.1
the
reporting
period
PROPERTY, PLANT AND EQUIPMENT 2013
EUR 1,000 Land Buildin Vessels Machine Advance Total
gs ry and payments
equipme &
nt acquisitions
under constr.
Acquisition cost 1 72 76,466 1,597,437 79,690 991 1,754,655
January 2013
Exchange rate -13 -13
differences
Increases 102 8,463 479 23 9,067
Reclassification to -126,855 -237 -127,092
non-current assets
held for sale*
Disposals -803 -106,412 -6,344 -113,559
Reclassifications 406 5 -410 0
Acquisition cost 30 72 75,765 1,373,037 73,817 367 1,523,058
September 2013
Accumulated -15,047 -429,028 -50,285 -494,360
depreciation,
amortisation and
write-offs 1
January 2013
Exchange rate 12 12
differences
Reclassification to 90,472 90,472
non-current assets
held for sale*
Cumulative 801 21,612 6,579 28,991
depreciation on
reclassifications
and disposals
Depreciation for -1,919 -44,575 -3,163 -49,657
the reporting
period
Accumulated -16,166 -361,518 -46,858 -424,542
depreciation,
amortisation and
write-offs 30
September 2013
Book value 30 72 59,599 1,011,519 26,959 367 1,098,516
September 2013
* Finnlines has sold the vessels Translubeca and Transeuropa. MS Transeuropa
has been sold to the Grimaldi Group at market price, which is slightly above
the book value of the vessel. MS Translubeca has been sold to an external party
at market price, which is also slightly above book value of the vessel. The
sales will have minor positive effect on Finnlines' result in the last quarter
of 2013.
PROPERTY, PLANT AND EQUIPMENT 2012
EUR 1,000 Land Buildin Vessels Machine Advance Total
gs ry and payments
equipme &
nt acquisitions
under constr.
Acquisition cost 1 72 76,758 1,401,930 90,543 130,588 1,699,892
January 2012
Exchange rate 26 26
differences
Increases 533 6,247 195 38,417 45,393
Disposals -514 -80 -1,520 -2,114
Reclassifications 23 92,765 -92,787 0
Acquisition cost 30 72 76,800 1,500,862 89,244 76,218 1,743,196
September 2012
Accumulated -12,916 -372,235 -56,435 -441,586
depreciation,
amortisation and
write-offs 1
January 2012
Exchange rate -23 -23
differences
Cumulative 277 80 1,348 1,705
depreciation on
reclassifications
and disposals
Depreciation for -2,021 -42,382 -3,655 -48,058
the reporting
period
Accumulated -14,659 -414,537 -58,765 -487,962
depreciation,
amortisation and
write-offs 30
September 2012
Book value 30 72 62,141 1,086,325 30,479 76,218 1,255,234
September 2012
CONTINGENCIES AND COMMITMENTS
EUR 1,000 30 Sep 30 Sep 31 Dec
2013 2012 2012
Minimum leases payable in relation to
fixed-term leases:
Vessel leases (Group as lessee):
Within 12 months 13,934 3,716 3,285
1-5 years 14,175 3,468
28,109 3,716 6,753
Vessel leases (Group as lessor):
Within 12 months 1,580 2,486 6,251
1-5 years 4,749 17,742
6,329 2,486 23,993
Other leases (Group as lessee):
Within 12 months 5,658 6,140 6,496
1-5 years 17,177 15,947 17,176
After five years 13,127 13,671 16,123
35,962 35,757 39,795
Other leases (Group as lessor):
Within 12 months 364 227 211
364 227 211
Collateral given
Loans from financial institutions 601,095 781,653 786,395
Vessel mortgages provided as guarantees for the 1,136,000 1,263,000 1,254,000
above loans
Other collateral given on own behalf
Pledged deposits 11 471 471
Corporate mortgages 606 606 606
617 1,077 1,077
Other obligations 2,777 20,646 1,932
Obligations of parent company on behalf of
subsidiaries
Guarantees 6,000 6,913 6,913
VAT adjustment liability related to real estate 6,953 8,231 7,927
investments
Open derivative instruments:
Fair value Contract amount
1000 EUR 30 Sep 30 Sep 31 Dec 30 Sep 30 Sep 31 Dec
2013 2012 2012 2013 2012 2012
Currency 272 0 7,579 0
derivatives
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
Shipping and sea transport services 126.0 135.4 143.6 155.8 144.2 153.2
Port operations 14.3 15.8 12.8 15.2 11.4 13.7
Intra-group revenue -6.4 -6.2 -6.7 -6.4 -5.9 -5.6
External sales 133.9 145.0 149.7 164.6 149.7 161.3
Result before interest and taxes
Shipping and sea transport services -3.6 2.4 9.8 16.5 13.5 16.4
Port operations -2.2 -2.7 -3.0 -1.8 -1.8 -2.1
Result before interest and taxes -5.8 -0.2 6.9 14.7 11.7 14.3
(EBIT) total
Financial items -6.2 -6.9 -6.5 -6.3 -6.2 -6.2
Result before taxes (EBT) -12.1 -7.1 0.4 8.4 5.6 8.1
Income taxes 1.2 1.3 0.5 -2.7 0.6 -2.8
Result for the reporting period -10.9 -5.8 0.9 5.7 6.1 5.3
EPS (undiluted / diluted)* -0.23 -0.12 0.02 0.12 0.12 0.11
*Key indicators per share have been adjusted with the share issue adjustment
factor.
SHARES, MARKET CAPITALISATION AND TRADING INFORMATION
30 September 2013 30 September 2012
Number of shares 51,503,141 46,821,037
Market capitalisation, 321.9 356.8
EUR million
1 Jan - 30 Sep 2013 1 Jan - 30 Sep 2012
Number of shares traded, million 0.8 1.0
1 Jan - 30 Sep 2013
High Low Average Close
Share price 7.97 5.76 6.64 6.25
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 4.
RELATED PARTY TRANSACTIONS
In September 2013 Finnlines sold MS Europalink to the Grimaldi Group at the
market price of EUR 86 million. The vessel was chartered out since October last
year 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.
Otherwise there were no material related party transactions during the
reporting period. The business transactions were carried out using market-based
pricing.
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