2016-05-11 12:17:20 CEST
2016-05-11 12:17:20 CEST
REGULATED INFORMATION
Finnlines - Interim report (Q1 and Q3)
Finnlines Plc Interim Report January-March 2016 (unaudited)
Helsinki, Finland, 2016-05-11 12:16 CEST (GLOBE NEWSWIRE) -- FINNLINES PLC
INTERIM REPORT JANUARY-MARCH 2016 (unaudited)
Stock Exchange Release 11 May 2016 at 13:15
JANUARY-MARCH 2016: Result for the reporting period improved to EUR 8.3 million
from EUR 0.6 million
- Revenue EUR 105.2 (EUR 116.8 prev. year) million, decrease 10.0 per cent,
mainly due to the reduction in cargo-related bunker surcharge
- Result before interest, taxes, depreciation and amortisation (EBITDA) EUR
25.3 (17.7) million, increase 42.8 per cent
- Result for the reporting period EUR 8.3 (0.6) million, increase 1,216.3 per
cent
- Earnings per share were 0.16 (0.01) EUR
- Interest-bearing debt decreased EUR 57.6 million and was EUR 536.0 (593.5)
million at the end of the period
KEY FIGURES
MEUR 1-3 2016 1-3 2015 1-12 2015
Revenue 105.2 116.8 511.2
Result before interest, taxes, 25.3 17.7 126.9
depreciation and amortisation (EBITDA)
Result before interest and taxes 11.4 3.9 70.3
(EBIT)
% of revenue 10.8 3.3 13.7
Result for the reporting period 8.3 0.6 56.8
EPS, EUR 0.16 0.01 1.10
Shareholders’ equity/share, EUR 11.05 9.79 10.89
Equity ratio, % 45.9 40.2 45.7
Interest-bearing debt, MEUR 536.0 593.5 533.7
Gearing, % 96.9 121.0 97.1
EMANUELE GRIMALDI, PRESIDENT AND CEO, IN CONJUNCTION WITH THE REVIEW:
“Finnlines’ improved first quarter result was according to expectations.
The result of the first quarter 2016 was EUR 8.3 (0.6) million, which was
according to our expectations. The comparable first quarter in 2015 was
burdened with several vessels being docked for scrubber installations. This
year we have been operating with 21 vessels and therefore this first quarter
with uninterrupted service to our customers brought improved results. We have
also been able to use the less expensive HFO instead of MDO on vessels equipped
with scrubbers. Although it does not contribute directly to our profitability
since we pass this benefit to our clients through the bunker clause mechanism,
it enabled us to offer low prices to our customers and through that we can have
higher capacity utilisation of our vessels. We also received two vessels, MS
Finncarrier and MS Finnmaster, in January, and new scrubbers were installed
into both vessels. These vessels now operate in our UK service. We are
continuing our EUR 100 million Environmental Technology Investment Programme
according to plan with three ro-pax vessel re-bladings and scrubber
installations. These were started in March. We are very proud that by the end
of March 2016 we have successfully completed scrubber installations on 17 out
of 22 ro-ro and ro-pax vessels. With these sulphur cleaning systems we can
offer our clients more environmentally friendly and more sustainable services.
The Company’s interest-bearing debt decreased by EUR 57.6 million and stood at
EUR 536 million. Our solidity is stronger than ever, with equity ratio at 45.9
(40.2) per cent. In 2016, we will install scrubbers, in total, in five vessels.
Apart from scrubbers, we are also investing in propulsion systems and
reblading, and in “silicon paint” hull projects for better fuel economy and, as
stated above, for the environment. Although we had a record breaking result in
2015, we continue to strive for improved efficiency and for even better results
in 2016.”
FINNLINES PLC, INTERIM REPORT JANUARY-MARCH 2016 (unaudited)
FINNLINES’ BUSINESS
Finnlines is the largest shipping company in the Baltic Sea based on both ro-ro
and ro-pax volumes (source: Baltic Transportation Journal). The Company's
passenger-freight vessels offer services from Finland to Germany and via the
Åland Islands to Sweden, as well as from Sweden to Germany. Finnlines’ ro-ro
vessels operate in the Baltic Sea and the North Sea. The Company has
subsidiaries in Germany, Belgium, Great Britain, Sweden, Denmark and Poland
which all are also sales offices. In addition to sea transportation, the
Company provides port services in Helsinki and Turku.
GROUP STRUCTURE
Finnlines Plc is a Finnish listed company. At the end of the reporting period,
the Group consisted of the parent company and 21 subsidiaries.
Finnlines is part of the Italian Grimaldi Group, which is a global logistics
group specialising in maritime transport of cars, rolling cargo, containers and
passengers. The Grimaldi Group comprises seven shipping companies, including
Finnlines, Atlantic Container Line (ACL), Malta Motorways of the Sea (MMS) and
Minoan Lines. With an owned fleet of about 110 vessels, the Group provides
maritime transport services for rolling cargo and containers between North
Europe, the Mediterranean, the Baltic Sea, West Africa, North and South
America. It also offers passenger services within the Mediterranean and Baltic
Sea. With 98.17 per cent (on 31 March 2016) of the shares, the Grimaldi Group
is the biggest shareholder in Finnlines Plc.
GENERAL MARKET DEVELOPMENT
Based on the statistics by the Finnish Transport Agency for January-March, the
Finnish seaborne imports carried in container, lorry and trailer units
(measured in tons) increased by 5 per cent and exports increased by 1 per cent
compared to the same period in 2015. During the same period private and
commercial passenger traffic between Finland and Sweden increased by 5 per
cent. Between Finland and Germany the corresponding traffic remained at the
same level as in 2015 (Finnish Transport Agency).
FINNLINES’ TRAFFIC
During the first quarter, Finnlines operated on average 21 (23) vessels in its
own traffic.
In the beginning of 2016 the frequency of the Polish service increased and the
new port of call in Finland is Hanko. The charter agreement of MS Misida
expired and the vessel was redelivered on 4 January 2016 in Tilbury. In January
2016, Finnlines acquired two ro-ro vessels in accordance with the purchase
agreement signed earlier. The vessels were put into Finnlines’ liner services
in February 2016.
As from January 2016 Finnlines made a major improvement on its weekly liner
services between West Finland and Germany, and offers two direct sailings from
Turku to Travemünde and back. The line is operated by Finnlines' newest ro-ro
vessels with a capacity of 3,260 lane metres.
The cargo volumes transported during January-March totalled approximately 153
(150 in 2015) thousand cargo units, 31 (33) thousand cars (not including
passengers’ cars) and 369 (480) thousand tons of freight not possible to
measure in units. In addition, some 113 (103) thousand private and commercial
passengers were transported.
FINANCIAL RESULTS
January-March 2016
The Finnlines Group recorded revenue totalling EUR 105.2 (116.8) million, a
decrease of 10.0 per cent compared to the same period in 2015. Shipping and Sea
Transport Services generated revenue amounting to EUR 100.4 (112.9) million and
Port Operations EUR 9.3 (8.3) million. The internal revenue between the
segments was EUR 4.4 (4.4) million.
Result before interest, taxes, depreciation and amortisation (EBITDA) was EUR
25.3 (17.7) million, an increase of 42.8 per cent.
Result before interest and taxes (EBIT) was EUR 11.4 (3.9) million. During the
first quarter of the previous year, the installations of sulphur scrubbers and
propulsion systems and chartering of substituting tonnage caused additional
costs influencing the result negatively. During the first quarter of this year,
however, most of the vessels were operating using less expensive fuel oil which
had a positive impact on the result.
In addition, the results of the first quarters are affected by the seasonality
of the cargo volumes, which are typically on a lower level at the turn of the
year. The number of passengers is also modest compared to the summer season.
Net financial expenses amounted to EUR -3.9 (-4.3) million. Financial income
was EUR 0.0 (0.3) million and financial expenses totalled EUR -4.0 (-4.6)
million. The result for the reporting period improved considerably and was EUR
8.3 (0.6) million and earnings per share (EPS) were EUR 0.16 (0.01).
STATEMENT OF FINANCIAL POSITION, FINANCING AND CASH-FLOW
Interest-bearing debt decreased by EUR 57.6 million and amounted to EUR 536.0
(593.5) million excluding leasing liabilities EUR 17.5 (19.2) million. The
equity ratio calculated from the balance sheet improved to 45.9 (40.2) per cent
and gearing dropped to 96.9 (121.0) per cent. Due to the expired charter
agreements and redelivery of the remaining chartered tonnage vessel lease
commitments decreased by EUR 8.0 million to EUR 0.0 million compared to the end
of March 2015.
At the end of the period, cash and deposits together with unused committed
credit lines amounted to EUR 78.0 (54.9) million.
Net cash generated from operating activities before investing activities
increased and was EUR 20.3 (4.9) million.
CAPITAL EXPENDITURE
Finnlines Group’s gross capital expenditure in the reporting period totalled
EUR 28.2 (39.3) million including tangible and intangible assets. Total
depreciation and amortisation amounted to EUR 13.9 (13.8) million. The
investments consist of the final payments related to the purchase and delivery
of MS Finncarrier and MS Finnmaster, normal replacement expenditure of fixed
assets, scrubber projects and dry-dockings of ships.
In 2015, Finnlines launched the second phase of the environmental investment
programme which covered scrubber orders for its remaining ro-ro vessels and a
further three of its ro-pax vessels. Moreover, additional energy efficiency
investment was initiated by extending the propulsion upgrading programme.
The second phase of the EUR 100 million Environmental Technology Investment
Programme is halfway now with the last two ro-ro vessel scrubber systems
installed and commissioned in the beginning of March 2016 and the first out of
the three ro-pax vessel re-bladings and scrubber installations initiated in
March 2016.
By the end of March 2016, 17 out of 22 ro-ro and ro-pax vessels fully owned and
operated by Finnlines are equipped with scrubbers. These cleaning systems
enable the vessels to operate cost-efficiently in compliance with the new
stricter environmental regulations for the fuel sulphur limit that came into
force as from 1 January 2015.
PERSONNEL
The Group employed an average of 1,621 (1,595) persons during the period,
consisting of 927 (901) persons at sea and 694 (694) persons on shore. The
number of persons employed at the end of the period was 1,622 (1,567) in total,
of which 933 (861) at sea and 689 (706) on shore. The number of sea personnel
increased due to the acquisition of new vessels, MS Finnmaster and MS
Finncarrier, which joined the Group’s fleet in the beginning of 2016. The
personnel expenses (including social costs) for the reporting period were EUR
22.4 (21.0) million.
THE FINNLINES SHARE
The Company’s registered share capital on 31 March 2016 was EUR 103,006,282
divided into 51,503,141 shares. A total of 2.7 (0.3) million shares were traded
on the Nasdaq Helsinki Ltd during the period. The market capitalisation of the
Company’s stock at the end of March was EUR 907.0 (825.1) million. Earnings per
share (EPS) were EUR 0.16 (0.01). Shareholders’ equity per share was EUR 11.05
(9.79). At the end of the reporting period, the Grimaldi Group’s holding and
share of votes in Finnlines was 98.17 per cent.
On 3 February 2016, the Grimaldi Group notified Finnlines of its redemption
rights on the remaining Finnlines shares, for which it offers EUR 17.80 per
share in the redemption proceedings. To implement the redemption of the shares
the Grimaldi Group has initiated arbitration proceedings in accordance with the
provisions of the Finnish Companies Act.
DECISIONS TAKEN BY THE ANNUAL GENERAL MEETING
Finnlines Plc’s Annual General Meeting was held in Helsinki on 12 April 2016.
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 2015. It was decided to accept the proposal of
the Board of Directors that no dividend be paid for 2015.
The meeting decided that the number of Board Members be seven. All of the
current Board Members were re-elected; Mr Christer Backman, Ms Tiina Bäckman,
Mr Emanuele Grimaldi, Mr Gianluca Grimaldi, Mr Diego Pacella, Mr Olav K.
Rakkenes and Mr Jon-Aksel Torgersen. The yearly compensation to the Board will
remain unchanged as follows: EUR 50,000 for the Chairman, EUR 40,000 for the
Vice Chairman, and EUR 30,000 for each of the other members of the Board.
The Annual General Meeting elected KPMG Oy Ab as the Company's auditor for the
fiscal year 2016. 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 14 April
2015.
RISKS AND RISK MANAGEMENT
Finnlines is exposed to business risks that arise from the capacity of the
fleet existing in the market, counterparties, prospects for export and import
of goods, and changes in the operating environment. The risk of overcapacity is
reduced through scrapping of aging vessels, on the one hand, and the more
stringent Sulphur Directive requirements, on the other. Finnlines operates
mainly in the Emissions Control Areas where the emission regulations are
stricter than globally. The sulphur content limit for heavy fuel oil was
reduced to 0.10 per cent as from 1 January 2015 in accordance with the MARPOL
Convention. This increases costs of sea transportation. However, with one of
the youngest and largest fleets in Northern Europe and with investments in
engine systems and energy efficiency, Finnlines is in a strong position to
greatly mitigate this risk. The effect of fluctuations in the foreign trade is
reduced by the fact that the Company operates in several geographical areas.
This means that slow growth in one country is compensated by faster recovery in
another. Finnlines continuously monitors the solidity and payment schedules of
its customers and suppliers. Currently, there are no indications of imminent
risks related to counterparties but the Company continues to monitor the
financial position of its counterparties. Finnlines holds adequate credit lines
to maintain liquidity in the current business environment.
LEGAL PROCEEDINGS
The 2015 Financial statements, published on 25 February 2016, contain a
description of ongoing legal proceedings.
On 27 February 2015, the District Court of Helsinki rendered its decision on
the dispute between Finnlines Plc and the State of Finland. According to
Finnlines Plc the Finnish Act on Fairway Dues in force until 1 January 2006 has
contained provisions which according to EU law were discriminatory. The Company
has been charged excessive fairway dues during 2001-2004. In its decision, the
District Court of Helsinki has ordered the State of Finland to refund to
Finnlines Plc, as plaintiffs, the fairway dues, charged in excessive extent in
the years 2001-2004 totalling about EUR 17.0 million including interest. The
case is pending at the Helsinki Court of Appeal.
CORPORATE GOVERNANCE
Finnlines applies the Finnish Corporate Governance Code for listed companies.
The Corporate Governance Statement can be reviewed on the corporate website:
www.finnlines.com.
EVENTS AFTER THE REPORTING PERIOD
There are no significant events to report.
OUTLOOK AND OPERATING ENVIRONMENT
Finnlines will complete its EUR 100 million Environmental Technology Investment
Programme in 2016. There are some early positive signs in gradual recovery in
Finnish economy. Due to improved efficiency and with a more suitable fleet with
regard to the current operative environment, Finnlines Group’s result before
taxes is expected to improve in 2016 compared to the previous year.
The second interim report of 2016 for the period of 1 January-30 June will be
published on Thursday, 28 July 2016.
Finnlines Plc
The Board of Directors
Emanuele Grimaldi
President and CEO
ENCLOSURES
- Reporting and accounting policies
- Consolidated statement of comprehensive income, IFRS
- Consolidated statement of financial position, IFRS
- Consolidated statement of changes in equity, IFRS
- Consolidated cash flow statement, IFRS
- Revenue and result by business segments
- Property, plant and equipment
- Fair value hierarchy
- Contingencies and commitments
- Shares, market capitalisation and trading information
- Events after the reporting period
- Calculation of ratios
- Related party transactions
DISTRIBUTION
Nasdaq Helsinki Ltd
Main media
www.finnlines.com
This interim report is unaudited.
REPORTING AND ACCOUNTING POLICIES
This interim report included herein is prepared in accordance with IAS 34
(Interim Financial Reporting) standard. The Company adopts new or revised IFRS
standards and IFRIC interpretations from the beginning of the reporting period
corresponding to those described in the 2015 Financial Statements with effect
of 1 January 2016. They did not have an impact on the reported figures.
Finnlines Plc entered into the tonnage taxation regime in January 2013. In
tonnage taxation, shipping operations transferred from taxation of business
income to tonnage-based taxation.
All figures in the accounts have been rounded and, consequently, the sum of
individual figures may deviate from the presented sum figure.
The preparation of the interim financial statements in accordance with IFRS
requires management to make estimates and assumptions and use its discretion in
applying the accounting principles that affect the valuation of the reported
assets and liabilities and other information such as contingent liabilities and
the recognition of income and expenses in the income statement. Although the
estimates are based on the management’s best knowledge of current events and
actions, actual results may differ from the estimates. The uncertainties
related to the key assumptions were the same as those applied to the
consolidated financial statements at the year-end
31 December 2015.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, IFRS
EUR 1,000 1-3 2016 1-3 2015 1-12 2015
Revenue 105,176 116,829 511,167
Other income from operations 825 288 1,810
Materials and services -26,932 -42,899 -161,264
Personnel expenses -22,396 -20,952 -84,186
Depreciation, amortisation and impairment -13,936 -13,837 -56,590
losses
Other operating expenses -31,362 -35,534 -140,654
Total operating expenses -94,626 -113,222 -442,694
Result before interest and taxes (EBIT) 11,374 3,894 70,284
Financial income 26 354 934
Financial expenses -3,962 -4,608 -18,064
Result before taxes (EBT) 7,438 -360 53,153
Income taxes 875 991 3,675
Result for the reporting period 8,313 632 56,829
Other comprehensive income:
Other comprehensive income to be
reclassified to profit and loss in
subsequent periods:
Exchange differences on translating foreign -33 38 32
operations
Other comprehensive income to be -33 38 32
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 plans 632
Tax effect, net -36
Other comprehensive income not 596
being reclassified to profit and loss in
subsequent periods, total
Total comprehensive income for the reporting 8,280 670 57,457
period
Result for the reporting period attributable
to:
Parent company shareholders 8,330 655 56,841
Non-controlling interests -17 -23 -12
8,313 632 56,829
Total comprehensive income for the reporting
period attributable to:
Parent company shareholders 8,297 693 57,469
Non-controlling interests -17 -23 -12
8,280 670 57,457
Result for the reporting period attributable
to parent company shareholders calculated
as earnings per share (EUR/share):
Undiluted / diluted earnings per share 0.16 0.01 1.10
Average number of shares:
Undiluted / diluted 51,503,141 51,503,141 51,503,141
Most of the items recognised in the Consolidated Statement of Comprehensive
Income fall under the tonnage tax scheme.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION, IFRS
EUR 1,000 31 Mar 31 Mar 31 Dec
2016 2015 2015
ASSETS
Non-current assets
Property, plant and equipment 1,011,825 1,014,013 997,619
Goodwill 105,644 105,644 105,644
Intangible assets 3,776 5,307 3,758
Other financial assets 4,581 4,576 4,576
Receivables 1,449 838 1,258
Deferred tax assets 6,050 5,703 5,792
1,133,325 1,136,080 1,118,645
Current assets
Inventories 4,374 7,102 4,333
Accounts receivable and other receivables 91,345 99,662 86,019
Income tax receivables 536 1 539
Cash and cash equivalents 1,778 2,185 6,468
98,034 108,950 97,359
Non-current assets held for sale 15,121 15,121 15,121
Total assets 1,246,480 1,260,151 1,231,125
EQUITY
Equity attributable to parent company
shareholders
Share capital 103,006 103,006 103,006
Share premium account 24,525 24,525 24,525
Translation differences 171 216 209
Fund for invested unrestricted equity 40,016 40,016 40,016
Retained earnings 401,649 336,530 393,313
569,367 504,294 561,070
Non-controlling interests 170 283 294
Total equity 569,537 504,577 561,363
LIABILITIES
Long-term liabilities
Deferred tax liabilities 52,012 55,517 52,712
Other long-term liabilities 100 150 113
Pension liabilities 3,923 4,701 3,919
Provisions 1,810 1,844 1,810
Loans from financial institutions 377,889 468,512 367,445
435,735 530,724 425,999
Current liabilities
Accounts payable and other liabilities 65,324 80,361 59,191
Current tax liabilities 12 26 14
Provisions 295 267 345
Loans from financial institutions 168,327 136,061 176,736
233,957 216,715 236,287
Total liabilities 669,692 747,440 662,286
Liabilities related to long-term assets held 7,251 8,134 7,476
for sale
Total equity and liabilities 1,246,480 1,260,151 1,231,125
CONSOLIDATED statement of changes in equity 2015, IFRS
EUR 1,000 Equity attributable to parent company
shareholders
Share Share Transl Unre- Re- Total Non-co Total
capital issue a stric tained n equity
pre- tion ted ear- trolli
mium dif equity nings ng
ferenc re- intere
es serve sts
Reported 103,006 24,525 178 40,016 335,876 503,601 306 503,907
equity 1
January
2015
Compre-
hensive
income for
the repor-
ting period:
Result for 655 655 -23 632
the repor-
ting period
Exchange 39 39 39
dif-
ferences on
trans-
lating
foreign
opera-
tions
Remeasuremen
t of defined
benefit
plans
Tax effect,
net
Total 39 655 693 -23 670
compre-
hensive
income for
the repor-
ting period
Dividend
distributio
n
Equity 31 103,006 24,525 216 40,016 336,530 504,294 283 504,577
March 2015
CONSOLIDATED statement of changes in equity 2016, IFRS
EUR 1,000 Equity attributable to parent company
shareholders
Share Share Transl Unre- Re- Total Non-co Total
capital issue a stric tained n equity
pre- tion ted ear- trolli
mium dif equity nings ng
ferenc re- intere
es serve sts
Reported 103,006 24,525 209 40,016 393,313 561,070 294 561,363
equity 1
January
2016
Compre-
hensive
income for
the repor-
ting period:
Result for 8,330 8,330 -17 8,313
the repor-
ting period
Exchange -39 6 -33 -33
differences
on trans-
lating
foreign
opera-
tions
Remeasuremen
t of defined
benefit
plans
Tax effect,
net
Total -39 8,335 8,297 -17 8,280
compre-
hensive
income for
the repor-
ting period
Dividend -106 -106
distributio
n
Equity 31 103,006 24,525 171 40,016 401,649 569,367 170 569,537
March 2016
CONSOLIDATED CASH FLOW STATEMENT, IFRS
EUR 1,000 1-3 2016 1-3 2015 1-12 2015
Cash flows from operating activities
Result for the reporting period 8,313 632 56,829
Adjustments:
Non-cash transactions 13,834 13,760 56,192
Unrealised foreign exchange gains 0 -7 -3
(-) / losses (+)
Financial income and expenses 3,936 4,261 17,133
Taxes -875 -991 -3,675
Changes in working capital
Change in accounts receivable and -7,140 -23,115 -2,009
other receivables
Change in inventories -41 -1,176 1,592
Change in accounts payable and 5,564 14,764 -2,515
other liabilities
Change in provisions 4 -8 -238
Interest paid -2,617 -2,846 -14,240
Interest received 179 244 442
Taxes paid -136 111 -81
Other financing items -675 -712 -3,632
Net cash generated from operating activities 20,347 4,917 105,794
Cash flow from investing activities
Investments in tangible and -26,770 -42,576 -78,897
intangible assets *
Proceeds from sale of tangible assets 89 64 799
Purchase of investments -5 0
Dividends received 12
Net cash used in investing activities -26,686 -42,512 -78,085
Cash flows from financing activities
Loan withdrawals 73,000 90,000 282,000
Net increase in current interest- 4,581 -10,385 32,447
bearing liabilities (+) / net decrease (-)
Repayment of loans -75,931 -42,564 -338,550
Increase (-) / decrease (+) in long-term 45 180
receivables
Net cash used in financing activities 1,650 37,096 -23,922
Change in cash and cash equivalents -4,689 -500 3,787
Cash and cash equivalents 1 January 6,468 2,680 2,680
Effect of foreign exchange rate changes -1 5 1
Cash and cash equivalents at the end of period 1,778 2,185 6,468
* Investments include environmental aid granted by the European Union, of which
the Group has received EUR 5.8 million during the reporting period 2015.
REVENUE AND RESULT BY BUSINESS SEGMENTS
1-3 2016 1-3 2015 1-12 2015
MEUR % MEUR % MEUR %
Revenue
Shipping and sea transport services 100.4 95.4 112.9 96.6 492.9 96.4
Port operations 9.3 8.8 8.3 7.2 35.9 7.0
Intra-group revenue -4.4 -4.2 -4.4 -3.8 -17.6 -3.4
External sales 105.2 100.0 116.8 100.0 511.2 100.0
Result before interest and taxes
Shipping and sea transport services 12.1 5.0 72.2
Port operations -0.8 -1.1 -1.9
Result before interest and taxes 11.4 3.9 70.3
(EBIT) total
Financial items -3.9 -4.3 -17.1
Result before taxes (EBT) 7.4 -0.4 53.2
Income taxes 0.9 1.0 3.7
Result for the reporting period 8.3 0.6 56.8
PROPERTY, PLANT AND EQUIPMENT 2016
EUR 1,000 Land Buil- Vessels Machi- Advance Total
dings nery payments
and &
equip- acquisi-
ment tions
under
constr.
*
Acquisition 72 72,773 1,352,785 65,430 23,459 1,514,518
cost 1 January 2016
Exchange rate -42 -42
differences
Increases 21,540 20 6,469 28,029
Disposals -169 -91 -260
Reclassifi- 6,798 -6,798 0
cations
Reclassifi- -4,369 -22,395 -26,763
cations to non-current
assets held for sale **
Acquisition 72 68,404 1,380,953 42,923 23,130 1,515,482
cost 31 March 2016
Accumulated -19,544 -439,791 -42,444 -501,779
depreciation,
amortisation and
write-offs 1 January
2016
Exchange rate 38 38
differences
Cumulative depreciation 169 91 260
on reclassify-
cations and disposals
Depreciation for the -550 -12,995 -274 -13,819
reporting period
Accumulated -20,093 -452,617 -42,589 -515,299
depreciation,
amortisation and
write-offs 31 March
2016
Reclassifi- 1,132 10,510 11,642
cation to non-current
assets held for sale **
Book value 31 March 2016 72 49,443 928,337 10,844 23,130 1,011,825
Assets classified as
held for sale 1 Jan
2016
Acquisition cost
Transfer to non-current 4,369 22,395 26,763
assets held for sale
Accumulated depreciation
Transfer to non-current -1,132 -10,510 -11,642
assets held for sale
Carrying value 31 March 3,237 11,885 15,121
2016
* Includes mainly advance payments for the scrubber systems.
** Finnlines is negotiating a sale of port operations’ assets with carrying
value of EUR 15.1 million. No impairment losses were recognised on the carrying
values of these assets in 2015 or 2016, as according to management’s estimate,
the fair value of the assets classified as held for sale was higher than the
carrying value at the balance sheet date 31 March 2015 and 31 March 2016.
PROPERTY, PLANT AND EQUIPMENT 2015
EUR 1,000 Land Buil- Vessels Machi- Advance Total
dings nery payments
and &
equip- acquisi-
ment tions
under
constr.
Acquisition 72 72,773 1,287,982 66,273 25,928 1,453,028
cost 1 January 2015
Exchange rate 39 39
differences
Increases 30,752 90 8,387 39,229
Disposals -159 -118 -277
Reclassifi- 13,988 9 -13,997 0
cations
Reclassifi- -4,369 -22,395 -26,763
cations to non-current
assets held for sale
Acquisition cost 31 72 68,404 1,332,563 43,899 20,319 1,465,257
March 2015
Accumulated -17,341 -389,749 -42,459 -449,549
depreciation,
amortisation and
write-offs 1 January
2015
Exchange rate -36 -36
differences
Cumulative depreciation 159 118 277
on reclassify-
cations and disposals
Depreciation for the -551 -12,747 -280 -13,578
reporting period
Accumulated -17,891 -402,338 -42,657 -462,886
depreciation,
amortisation and
write-offs 31 March
2015
Reclassifi- 1,132 10,510 11,642
cation to non-current
assets held for sale
Book value 31 March 72 51,645 930,225 11,752 20,319 1,014,013
2015
Assets classified as
held for sale 1 Jan
2015
Acquisition cost
Transfer to non-current 4,369 21,675 22,395 48,439
assets held for sale
Reclassifi- -21,675 -21,675
cation between items
Accumulated
depreciation
Transfer to non-current -1,132 -16,499 -10,510 -28,141
assets held for sale
Reclassifi- 16,499 16,499
cation between items
Carrying value 31 March 3,237 0 11,885 15,121
2015
Due to the long-term charter contract in February 2015 of the vessel, which was
classified as asset held for sale in the Financial Statement as of 31.12.2014,
the classification had been ceased during the reporting period. A part of the
Port Operations' assets, book value of 15.1 million euros, were continued to be
classified as assets held for sale.
FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or
liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (i.e., as prices) or
indirectly (i.e., derived from prices).
The Group has loans from financial institutions and pension loans belonging to
level 2. There is no material difference between carrying values and fair
values of these instruments.
Level 3 - Inputs for the asset or liability that are not based on observable
market data (unobservable inputs).
Level 3 includes unlisted shares amounting to EUR 4.6 million (4.6 in 2014),
which are valued at the lower of acquisition cost or probable value, as their
fair value cannot be reliably measured.
CONTINGENCIES AND COMMITMENTS
EUR 1,000 31 Mar 31 Mar 31 Dec
2016 2015 2015
Minimum leases payable in relation to
fixed-term leases:
Vessel leases (Group as lessee):
Within 12 months 0 8,020 58
0 8,020 58
Vessel leases (Group as lessor):
Within 12 months 2,099 2,105 2,105
1-5 years 6,324 8,422 6,841
8,423 10,527 8,946
Other leases (Group as lessee):
Within 12 months 5,566 6,475 6,015
1-5 years 13,123 16,276 13,788
After five years 7,397 8,993 7,795
26,086 31,743 27,598
Other leases (Group as lessor):
Within 12 months 0 211 0
0 211 0
Collateral given
Loans from financial institutions 394,432 512,892 402,941
Vessel mortgages provided as guarantees for the 973,000 1,035,000 973,000
above loans
Other collateral given on own behalf
Cash deposit 0 850
Corporate mortgages 1,700
0 850 1,700
Other obligations * 5,475 36,247 36,143
VAT adjustment liability related to real estate 3,702 4,998 4,026
investments
* Includes scrubber system, re-blading obligations and vessel investments.
SHARES, MARKET CAPITALISATION AND TRADING INFORMATION
31 March 2016 31 March 2015
Number of shares 51,503,141 51,503,141
Market capitalisation, EUR million 907.0 825.1
1-3 2016 1-3 2015
Number of shares traded, million 2.7 0.3
1-3 2016
High Low Average Close
Share price 18.68 17.15 17.97 17.61
EVENTS AFTER THE REPORTING PERIOD
There are no significant events to report.
CALCULATION OF RATIOS
Earnings per share (EPS), EUR :
Result attributable to parent company shareholders
------------------------------------------------------
Weighted average number of outstanding shares
Shareholders’ equity per share, EUR :
Shareholders’ equity attributable to parent company shareholders
------------------------------------------------------------------
Undiluted number of shares at the end of period
Gearing, %:
Interest-bearing liabilities - cash and bank equivalents
---------------------------------------------------------- X 100
Total equity
Equity ratio, %:
Total equity
--------------------------------- X 100
Assets total - received advances
Income tax expense is recognised based on the best estimate of the
weighted-average annual income tax rate expected for the full financial year.
In January 2013, the shipping operations of Finnlines Plc transferred to
tonnage-based taxation.
At the end of January 2014, Finnlines Deutschland GmbH transferred from
tonnage-based taxation to business taxation. The company entered into business
taxation as from 1 February 2014.
RELATED PARTY TRANSACTIONS
There were no material related party transactions during the reporting period.
The business transactions were carried out using market-based pricing.
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