2016-02-25 14:46:11 CET
2016-02-25 14:46:11 CET
REGULATED INFORMATION
Finnlines - Interim report (Q1 and Q3)
Finnlines Plc Financial Statement Bulletin January-December 2015 (unaudited)
Helsinki, Finland, 2016-02-25 14:45 CET (GLOBE NEWSWIRE) -- FINNLINES PLC
FINANCIAL STATEMENT BULLETIN JANUARY-DECEMBER 2015 (unaudited)
Stock Exchange Release 25 February 2016 at 15:45
JANUARY-DECEMBER 2015: Result before taxes (EBT) improved over EUR 16.5 million
to EUR 53.2 million
- Revenue EUR 511.2 (532.9 prev. year) million, decrease 4.1 per cent, partly
due to the reduction of cargo related bunker surcharge
- Result before interest, taxes, depreciation and amortisation (EBITDA) EUR
126.9 (115.4) million, increase 9.9 per cent
- Result for the reporting period EUR 56.8 (41.7) million, increase 36.2 per
cent
- Earnings per share were 1.10 (0.81) EUR/share
- Interest-bearing debt decreased EUR 18.7 million and was EUR 533.7 (552.5)
million at the end of the period
- Fuel consumption reduced by 8 per cent
OCTOBER-DECEMBER 2015: Strong result performance continued during the last
quarter supported by revenue growth
- Revenue EUR 120.9 (119.1 prev. year) million, increase 1.5 per cent, despite
the reduction of cargo related bunker surcharge
- Result before interest, taxes, depreciation and amortisation (EBITDA) EUR
32.1 (23.9) million, increase 34.4 per cent
- Result for the reporting period EUR 15.7 (8.5) million, increase 84.4 per cent
- Earnings per share were 0.31 (0.17) EUR/share
KEY FIGURES
MEUR 1-12 2015 1-12 2014 10-12 2015 10-12 2014
Revenue 511.2 532.9 120.9 119.1
Result before interest, taxes, 126.9 115.4 32.1 23.9
depreciation and amortisation
(EBITDA)
Result before interest and taxes 70.3 58.6 17.3 10.5
(EBIT)
% of revenue 13.7 11.0 14.3 8.8
Result for the reporting period 56.8 41.7 15.7 8.5
EPS, EUR 1.10 0.81 0.31 0.17
Shareholders’ equity/share, EUR 10.89 9.78 10.89 9.78
Equity ratio, % 45.7 41.7 45.7 41.7
Interest bearing debt, MEUR 533.7 552.5 533.7 552.5
Gearing, % 97.1 113.0 97.1 113.0
EMANUELE GRIMALDI, PRESIDENT AND CEO, IN CONJUNCTION WITH THE REVIEW:
In January-December 2015, the Group achieved its best ever operational result
"The first quarter was still burdened by dockings of several ships because of
scrubber installations but the second quarter already ended up presenting the
best quarterly result in ten years. The third quarter even topped this
performance by being the best quarter ever in the Group’s history. Also, the
result for the last quarter’s reporting period was the best fourth quarter
result ever reported. In other words, the positive financial development
continued throughout the year and the result before taxes (EBT) was EUR 53.2
million - an increase of 45 per cent compared to the previous year. The Group’s
capital structure is strong. The equity ratio improved markedly, to 45.7 per
cent and despite implementing a major part of our EUR 100 million Environmental
Technology Investment Programme and acquiring a new vessel, MS Finnmerchant,
the Group’s interest-bearing debt decreased further. Net debt to EBITDA stood
at 4.2 at year-end, which has greatly improved our credit profile. During
2014-2015, the Group implemented the investment programme, which included the
installations of exhaust gas scrubbers on 15 vessels, while six vessels have
been also rebladed. On top of this, two vessels have undergone an antifouling
treatment. Bunker prices have fallen during the past 12 months, a reduction
which we share with our customers through the bunker surcharge mechanism. But
due to our reblading and other technological improvements, our bunker
consumption fell by 8.3 per cent over the previous year and enabled us to save
in bunker costs.
We have broken the records in Finnlines’ financial performance. The hard work
and the right decisions made over these years have transformed us to one of the
strongest companies in the Baltic shipping sector. We have always strived to
reach our goals in improving our productivity and profitability, and now, with
the record breaking performance levels, Finnlines can justifiably say that
these goals need to be reset to a higher level."
FINNLINES PLC, FINANCIAL STATEMENT BULLETIN JANUARY-DECEMBER 2015 (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 Northern
Europe, the Mediterranean, the Baltic Sea, West Africa, North and South
America. It also offers passenger services within the Mediterranean and the
Baltic Sea. With 93.38 per cent (on 31 December 2015) 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-December,
the Finnish seaborne imports carried in container, lorry and trailer units
decreased by 4 per cent whereas exports increased by 3 per cent (measured in
tons) compared to the same period in 2014. During the same period, private and
commercial passenger traffic between Finland and Sweden increased by 1 per
cent. Between Finland and Germany the corresponding traffic increased by 1 per
cent (Finnish Transport Agency).
FINNLINES’ TRAFFIC
During the fourth quarter, Finnlines operated on average 22 (23 in 2014)
vessels in its own traffic.
Finnlines entered into a slot charter agreement for the provision of slots on
board Finnlines vessels to DFDS on the route between Russia and Germany. The
slot charter agreement came into effect as from 11 October 2015. Both companies
continue to independently provide maritime services, handle sales, customer
service and cargo in the port terminals related to the route.
The charter agreement of MS Misana expired and the vessel was redelivered on 31
December 2015 in Hull. MS Finneagle was chartered out to the Grimaldi Group
during the fourth quarter of 2015.
The cargo volumes transported during January-December totalled approximately
624 (638 in 2014) thousand cargo units, 156 (99) thousand cars (not including
passengers’ cars) and 2,032 (2,319 corrected figure) thousand tons of freight
not possible to measure in units. In addition, some 575 (561) thousand private
and commercial passengers were transported.
FINANCIAL RESULTS
January-December 2015
The Finnlines Group recorded revenue totalling EUR 511.2 (532.9) million in
2015, a decrease of 4.1 per cent compared to the same period in the previous
year. Shipping and Sea Transport Services generated revenue amounting to EUR
492.9 (517.4) million and Port Operations EUR 35.9 (36.9) million. The Shipping
and Sea Transport Services segment's revenue decreased due to the lower bunker
surcharge and lower bareboat charter income resulting from divestment of
vessels. In Port Operations the revenue decreased due to the restructuring
measures taken. The internal revenue between the segments was EUR 17.6 (21.3)
million, which means that the external revenue of Port Operations increased
during the reporting period.
Result before interest, taxes, depreciation and amortisation (EBITDA) was EUR
126.9 (115.4) million, an increase of 9.9 per cent.
Result before interest and taxes (EBIT) was EUR 70.3 (58.6) million. The
increased efficiency of the operations in terms of bunker consumption, higher
capacity utilisation of vessels and reduction of costs in many areas has
continued to positively impact the financial performance of the Group. Despite
the increased efficiency of the operations, the result was burdened by docking
of several vessels for the installations of scrubbers and new propulsion
systems during the first quarter.
As a result of the improved financial position, net financial expenses
decreased and were EUR -17.1 (-21.9) million. Financial income was EUR 0.9
(0.5) million and financial expenses EUR -18.1 (-22.4) million. Result before
taxes (EBT) improved by EUR 16.5 million and was EUR 53.2 (36.6) million. The
result for the reporting period was EUR 56.8 (41.7) million and earnings per
share (EPS) were EUR 1.10 (0.81).
October-December 2015
The Finnlines Group recorded revenue totalling EUR 120.9 (119.1) million in the
fourth quarter, an increase of 1.5 per cent compared to the same period in the
previous year, although the cargo related bunker surcharge has continued to
decline following the fuel price development. Shipping and Sea Transport
Services generated revenue amounting to EUR 116.4 (115.4) million and Port
Operations EUR 9.0 (8.2) million. The internal revenue between the segments was
EUR 4.5 (4.6) million. The result is 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 during the autumn/winter period compared to
the summer season.
Result before interest, taxes, depreciation and amortisation (EBITDA) was EUR
32.1 (23.9) million, an increase of 34.4 per cent.
Result before interest and taxes (EBIT) was EUR 17.3 (10.5) million. The
majority of Finnlines' fleet is using cheaper IFO fuel instead of MGO which has
further decreased fuel costs.
Net financial expenses were EUR -3.7 (-5.1) million. Financial income was EUR
0.4 (0.1) million and financial expenses totalled EUR
-4.1 (-5.2) million. The result for the reporting period was EUR 15.7 (8.5)
million, which is the best fourth quarter result ever reported. Earnings per
share (EPS) increased to EUR 0.31 (0.17).
STATEMENT OF FINANCIAL POSITION, FINANCING AND CASH-FLOW
Even though the Company has an ongoing environmental investment programme,
interest-bearing debt decreased by EUR 18.7 million and amounted to EUR 533.7
(552.5) million excluding leasing liabilities EUR 17.9 (19.6) million. The
equity ratio calculated from the balance sheet improved to 45.7 (41.7) per cent
and gearing dropped to 97.1 (113.0) per cent. Vessel lease commitments
decreased by EUR 10.4 million to EUR 0.1 million compared to the end of
December 2014.
The Group’s liquidity position is strong and at the end of the period, cash and
cash equivalents together with unused committed credit facilities amounted to
EUR 114.5 (123.1) million.
Net cash generated from operating activities improved considerably and was EUR
105.8 (82.1) million before capex and divestments.
CAPITAL EXPENDITURE
The Finnlines Group’s gross capital expenditure in the reporting period
totalled EUR 64.1 (36.6) million including tangible and intangible assets.
Total depreciation and amortisation amounted to EUR 56.6 (56.8) million. The
capital expenditures consist of the purchase of MS Finnmerchant, prepayments of
two ro-ro vessels delivered at the beginning of January 2016, normal
replacement costs of fixed assets, IT investments and, to a large extent,
payments related to the Finnlines Group’s EUR 100 million Environmental
Technology Investment Programme.
As part of the Connecting Europe Facility (CEF), the European Union awarded
Finnlines a funding of EUR 14.5 million for environmental technology
investments on vessels in liner services. The funding is recognised as
adjustment of investment costs.
The environmental investment programme was a direct response to the new
stricter environmental regulations for the fuel sulphur limit which came into
force on 1 January 2015. Finnlines follows a consequent and cost-efficient
compliance strategy of deploying effective exhaust gas cleaning measures,
achieving an even better reduction level of sulphur oxides (SOx) than required.
In addition, Finnlines is investing in energy efficiency and environmental
performance improvements. By upgrading several vessels’ propulsion and applying
special foul release paint on other vessels, significant reduction in fuel
consumption is achieved and thus substantially less CO2 is emitted.
The first phase of the environmental investment programme was initiated in 2014
when the Company ordered exhaust gas cleaning systems ("scrubbers") for ten of
its ro-ro vessels and four of its ro-pax vessels as well as propulsion
upgrading to six of its vessels. These retrofits were implemented in
winter/spring 2015 and completed in May 2015.
In 2015, Finnlines launched the second phase of the environmental investment
programme which covers scrubber orders for a further three of its 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 to cover a further three ro-pax vessels and by applying special foul
release coating ("silicon paint") to two ro-pax vessels.
The second phase of the EUR 100 million Environmental Technology Investment
Programme is ongoing and scheduled to be completed in spring 2016.
PERSONNEL
The Group employed an average of 1,597 (1,701) persons during the reporting
period, consisting of 698 (759) persons on shore and 899 (942) persons at sea.
The average number of the shore personnel decreased mainly due to employee
reductions in Port Operations. The number of the sea personnel decreased due to
employee reductions made on MS Finnhansa and MS Finnsailor.
The total number of persons employed at the end of the reporting period was
1,588 (1,635), of which 699 (716) on shore and 889 (919) at sea. The Group’s
personnel expenses (including social costs) for the reporting period were EUR
84.2 (88.4) million.
THE FINNLINES SHARE
The Company’s registered share capital on 31 December 2015 was EUR 103,006,282
divided into 51,503,141 shares. A total of 7.1 (5.1) million shares were traded
on Nasdaq Helsinki Ltd during the reporting period. The market capitalisation
of the Company’s stock on 31 December 2015 increased by more than 10 per cent
compared to the previous year and was EUR 911.6 (824.1) million. Earnings per
share (EPS) were EUR 1.10 (0.81). Shareholders’ equity per share was EUR 10.89
(9.78).
The Company announced on 9 October 2015 that the Grimaldi Group has made an
agreement with Mutual Pension Insurance Company Ilmarinen ("Ilmarinen") on the
purchase of Ilmarinen's Finnlines shares, through which the Grimaldi Group’s
ownership rose to 91.32 per cent. At the end of the reporting period, the
Grimaldi Group’s holding and share of votes in Finnlines was 93.38 per cent.
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 limits 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.
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
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 early 2016.
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 will initiate arbitration proceedings as provided in the
Finnish Companies Act.
OUTLOOK AND OPERATING ENVIRONMENT
Finnlines will complete its EUR 100 million Environmental Technology Investment
Programme in 2016. Finnlines Group’s result before taxes is expected to improve
in 2016 compared to the same period in the previous year.
DIVIDEND DISTRIBUTION PROPOSAL
The parent company Finnlines Plc’s result for the reporting period was EUR 52.8
million. The Board of Directors proposes to the Annual General Meeting that no
dividend be paid for the reporting period ended on 31 December 2015 due to the
ongoing extensive capital expenditure requirement for the installation of
scrubbers on Finnlines’ vessels during 2015 and 2016.
ANNUAL GENERAL MEETING 2016
Finnlines Plc’s Annual General Meeting will be held from 13:00 on Tuesday, 12
April 2016 at the National Museum of Finland, Mannerheimintie 34, 00100
Helsinki.
The first interim report of 2016 for the period of 1 January-31 March 2016 will
be published on Wednesday, 11 May 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
- Revenue and result by quarter
- Shares, market capitalisation and trading information
- Events after the reporting period
- Calculation of ratios
- Related party transactions
DISTRIBUTION
Nasdaq Helsinki Ltd
Main media
This financial statement bulletin is unaudited.
REPORTING AND ACCOUNTING POLICIES
This financial statement bulletin included herein is prepared in accordance
with IAS 34 (Interim Financial Reporting) standard. The Group has adopted new
or revised IFRS standards and IFRIC interpretations from the beginning of the
reporting period corresponding to those described in the 2014 Financial
Statements with effect of 1 January 2015. They did not have any 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 2014.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, IFRS
EUR 1,000 10-12 2015 10-12 2014 1-12 2015 1-12 2014
Revenue 120,894 119,077 511,167 532,889
Other income from operations 558 3,719 1,810 6,776
Materials and services -34,803 -42,150 -161,264 -191,445
Personnel expenses -21,517 -21,268 -84,186 -88,418
Depreciation, amortisation -14,835 -13,459 -56,590 -56,843
and impairment losses
Other operating expenses -33,000 -35,469 -140,654 -144,396
Total operating expenses -104,155 -112,345 -442,694 -481,102
Result before interest and taxes 17,298 10,451 70,284 58,563
(EBIT)
Financial income 387 141 934 483
Financial expenses -4,099 -5,231 -18,064 -22,412
Result before taxes (EBT) 13,586 5,361 53,153 36,634
Income taxes 2,146 3,169 3,675 5,079
Result for the reporting period 15,732 8,530 56,829 41,713
Other comprehensive income:
Other comprehensive income to
be reclassified to profit and
loss in subsequent periods:
Exchange differences on 2 35 32 69
translating foreign operations
Tax effect, net 6
Other comprehensive income to 2 41 32 69
be 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 632 -844 632 -844
plans
Tax effect, net -36 141 -36 353
Other comprehensive income not 596 -702 596 -491
being reclassified to profit and
loss in subsequent periods,
total
Total comprehensive income for 16,330 7,869 57,457 41,291
the reporting period
Result for the reporting period
attributable to:
Parent company shareholders 15,728 8,532 56,841 41,726
Non-controlling interests 4 -2 -12 -13
15,732 8,530 56,829 41,713
Total comprehensive income for
the reporting period
attributable to:
Parent company shareholders 16,326 7,871 57,469 41,304
Non-controlling interests 4 -2 -12 -13
16,330 7,869 57,457 41,291
Result for the reporting period
attributable to parent
company shareholders calculated
as earnings per share
(EUR/share):
Undiluted / diluted earnings per 0.31 0.17 1.10 0.81
share
Average number of shares:
Undiluted / diluted 51,503,141 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 Dec 2015 31 Dec 2014
ASSETS
Non-current assets
Property, plant and equipment 997,619 983,183
Goodwill 105,644 105,644
Intangible assets 3,758 5,500
Other financial assets 4,576 4,576
Receivables 1,258 1,434
Deferred tax assets 5,792 5,353
1,118,645 1,105,688
Current assets
Inventories 4,333 5,926
Accounts receivable and other receivables 86,019 75,884
Income tax receivables 539 1
Cash and cash equivalents 6,468 2,680
97,359 84,490
Non current assets held for sale 15,121 20,297
Total assets 1,231,125 1,210,475
EQUITY
Equity attributable to parent company shareholders
Share capital 103,006 103,006
Share premium account 24,525 24,525
Translation differences 209 178
Fund for invested unrestricted equity 40,016 40,016
Retained earnings 393,313 335,876
561,070 503,601
Non-controlling interests 294 306
Total equity 561,363 503,907
LIABILITIES
Long-term liabilities
Deferred tax liabilities 52,712 56,102
Other long-term liabilities 113 163
Pension liabilities 3,919 4,705
Provisions 1,810 1,844
Loans from financial institutions 367,445 420,722
425,999 483,536
Current liabilities
Accounts payable and other liabilities 59,191 71,565
Current tax liabilities 14 72
Provisions 345 81
Loans from financial institutions 176,736 142,967
236,287 214,685
Total liabilities 662,286 698,220
Liabilities related to long-term assets held for sale 7,476 8,348
Total equity and liabilities 1,231,125 1,210,475
CONSOLIDATED statement of changes in equity 2014, 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 24,525 109 40,016 294,641 462,297 360 462,658
equity 1
January
2014
Compre-
hensive
income for
the repor-
ting period:
Result for 41,726 41,726 -13 41,713
the repor-
ting period
Exchange 69 69 69
dif-
ferences on
trans-
lating
foreign
opera
tions
Remeasuremen -844 -844 -844
t of defined
benefit
plans
Tax effect, 353 353 353
net
Total 69 41,235 41,304 -13 41,291
compre-
hensive
income for
the repor-
ting period
Dividend -42 -42
Equity 31 103,006 24,525 178 40,016 335,876 503,601 306 503,907
December
2014
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 56,841 56,841 -12 56,829
the repor-
ting period
Exchange 32 32 32
differences
on trans-
lating
foreign
opera-
tions
Remeasuremen 632 632 632
t of defined
benefit
plans
Tax effect, -36 -36 -36
net
Total 32 57,437 57,469 -12 57,457
compre-
hensive
income for
the repor-
ting period
Dividend
Equity 31 103,006 24,525 209 40,016 393,313 561,070 294 561,363
December
2015
CONSOLIDATED CASH FLOW STATEMENT, IFRS
EUR 1,000 1-12 2015 1-12 2014
Cash flows from operating activities
Result for the reporting period 56,829 41,713
Adjustments:
Non-cash transactions 56,192 51,987
Unrealised foreign exchange gains (-) / losses (+) -3 -28
Financial income and expenses 17,133 21,957
Taxes -3,675 -5,079
Changes in working capital
Change in accounts receivable and other receivables -2,009 4,855
Change in inventories 1,592 2,906
Change in accounts payable and other liabilities -2,515 -9,435
Change in provisions -238 -207
Interest paid -14,240 -18,742
Interest received 442 141
Taxes paid * -81 -3,990
Other financing items -3,632 -3,970
Net cash generated from operating activities 105,794 82,108
Cash flow from investing activities
Investments in tangible and intangible assets ** -78,897 -29,575
Proceeds from sale of tangible assets 799 69,590
Proceeds from sale of investments 1
Dividends received 12 13
Net cash used in investing activities -78,085 40,029
Cash flows from financing activities
Loan withdrawals 282,000 169,604
Net increase in current interest-bearing liabilities (+) / 32,447 7,953
net decrease (-)
Repayment of loans -338,550 -298,974
Loans granted -900
Increase (-) / decrease (+) in long-term receivables 180 395
Dividends paid -42
Net cash used in financing activities 23,922 -121,964
Change in cash and cash equivalents 3,787 173
Cash and cash equivalents 1 January 2,680 2,508
Effect of foreign exchange rate changes 1 -1
Cash and cash equivalents at the end of period 6,468 2,680
* Taxes paid in 2014 include the payment of EUR 3.6 million included in
Finnlines Deutschland GmbH’s tax provisions due to the exit from the tonnage
tax scheme.
** 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
10-12 2015 10-12 2014 1-12 2015 1-12 2014
MEUR % MEUR % MEUR % MEUR %
Revenue
Shipping and sea 116.4 96.3 115.4 96.9 492.9 96.4 517.4 97.1
transport services
Port operations 9.0 7.4 8.2 6.9 35.9 7.0 36.9 6.9
Intra-group revenue -4.5 -3.7 -4.6 -3.8 -17.6 -3.4 -21.3 -4.0
External sales 120.9 100.0 119.1 100.0 511.2 100.0 532.9 100.0
Result before interest
and taxes
Shipping and sea 18.1 11.9 72.2 61.6
transport services
Port operations -0.8 -1.4 -1.9 -3.1
Result before interest 17.3 10.5 70.3 58.6
and taxes (EBIT) total
Financial items -3.7 -5.1 -17.1 -21.9
Result before taxes 13.6 5.4 53.2 36.6
(EBT)
Income taxes 2.1 3.2 3.7 5.1
Result for the reporting 15.7 8.5 56.8 41.7
period
PROPERTY, PLANT AND EQUIPMENT 2015
EUR 1,000 Land Buil- Vessels * Machi- Advance Total **
dings nery payments
and &
equip- acquisitions
ment under
construc
tion *
Acquisition cost 72 72,773 1,287,982 66,273 25,928 1,453,028
1 January 2015
Exchange rate 33 33
differences
Increases 44,934 279 18,117 63,330
Disposals -708 -1,164 -1,872
Reclassifications 20,578 9 -20,586 0
Reclassifications -4,369 -22,395 -26,763
to non-current
assets held for
sale ***
Acquisition cost 72 68,404 1,352,785 43,035 23,459 1,487,755
31 December 2015
Accumulated -17,341 -389,749 -42,459 -449,549
depreciation,
amortisation and
write-offs 1
January 2015
Exchange rate -30 -30
differences
Cumulative 707 1,162 1,870
depreciation on
reclassifications
and disposals
Depreciation for -2,203 -50,749 -1,118 -54,070
the reporting
period
Accumulated -19,544 -439,791 -42,444 -501,779
depreciation,
amortisation and
write-offs 31
December 2015
Reclassifications 1,132 10,510 11,642
to non-current
assets held for
sale ***
Carrying value 31 72 49,993 912,994 11,101 23,459 997,619
December 2015
Assets classified
as held for sale 31
Dec 2015
Acquisition cost
Transfer to 4,369 21,675 22,395 48,439
non-current assets
held for sale 1
Jan 2015
Reclassification -21,675 -21,675
between items
Accumulated
depreciation
Transfer to -1,132 -16,499 -10,510 -28,141
non-current assets
held for sale 1
Jan 2015
Reclassification 16,499 16,499
between items
Carrying value 31 3,237 0 11,885 15,121
Dec 2015
* During the reporting period, EUR 9.3 million environmental aid granted by the
European Union was allocated to environmental investments in vessels. Advance
payments and acquisitions under construction include EUR 5.2 million
environmental aid granted by the European Union.
** The carrying value of property, plant and equipment includes EUR 22.3 (23.4)
million of capitalised borrowing costs during construction.
*** 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 2014 or 2015, 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 December 2014 and 31 December 2015.
The vessel which had been classified as held for sale in the Financial
Statements 2014 has been reclassified as fixed asset in 2015.
PROPERTY, PLANT AND EQUIPMENT 2014
EUR 1,000 Land Buil- Vessels Machi- Advance Total
dings nery payments
and &
equip- acquisi-
ment tions
under
constructi
on
Acquisition cost 1 72 75,271 1,372,769 73,122 398 1,521,632
January 2014
Exchange rate 34 34
differences
Increases 9,728 243 25,897 35,867
Disposals * -2,497 -94,515 -7,125 -367 -104,505
Reclassifications -4,369 -21,675 -22,395 -48,439
to non-current assets
held for sale **
Acquisition cost 31 72 68,404 1,266,306 43,879 25,928 1,404,590
December 2014
Accumulated -16,316 -373,866 -47,060 -437,243
depreciation,
amortisation and
write-offs 1 January
2014
Exchange rate -31 -31
differences
Cumulative 1,346 35,547 6,650 43,543
depreciation on
reclassifications and
disposals
Depreciation for the -2,370 -51,430 -2,017 -55,818
reporting period
Accumulated -17,341 -389,749 -42,459 -449,549
depreciation,
amortisation and
write-offs 31
December 2014
Reclassification 1,132 16,499 10,510 28,142
to non-current assets
held for sale **
Carrying value 31 72 52,196 893,057 11,930 25,928 983,183
December 2014
* Finnlines sold the vessels MS Finnhansa and MS Finnarrow during the reporting
period 2014.
** Finnlines negotiated a sale of one vessel, with book value of EUR 5.2
million, and assets concerning Port Operations, with book value of EUR 15.1
million. No impairment was made to the book values of these assets in 2014, as
according to management’s estimate, the fair value of the assets classified as
held for sale was higher than the book value at the balance sheet date 31
December 2014.
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 Dec 2015 31 Dec 2014
Minimum leases payable in relation to
fixed-term leases:
Vessel leases (Group as lessee):
Within 12 months 58 11,409
1-5 years
58 11,409
Vessel leases (Group as lessor)*:
Within 12 months 2,105 0
1-5 years 6,841 0
8,946 0
Other leases (Group as lessee):
Within 12 months 6,015 6,366
1-5 years 13,788 17,128
After five years 7,795 9,274
27,598 32,768
Other leases (Group as lessor):
Within 12 months 250
250
Collateral given
Loans from financial institutions 402,941 477,054
Vessel mortgages provided as guarantees for the above 973,000 1,035,000
loans
Other collateral given on own behalf
Corporate mortgages 1,700
1,700 0
Other obligations ** 36,143 35,453
VAT adjustment liability related to real estate 4,026 5,322
investments
* A long-term bareboat agreement was terminated on 17.12.2014 due to the sale
of the vessel, and another bareboat agreement was made during the first quarter
of 2015.
** Includes scrubber system, reblading obligations and vessel investments.
REVENUE AND RESULT BY QUARTER
MEUR Q1/15 Q1/14 Q2/15 Q2/14 Q3/15 Q3/14 Q4/15 Q4/14
Shipping and sea 112.9 122.8 130.2 139.1 133.4 140.0 116.4 115.4
transport services
Port operations 8.3 10.0 9.7 10.2 8.9 8.5 9.0 8.2
Intra-group revenue -4.4 -6.0 -4.6 -5.9 -4.1 -4.8 -4.5 -4.6
External sales 116.8 126.8 135.2 143.3 138.2 143.7 120.9 119.1
Result before interest
and taxes
Shipping and sea 5.0 7.3 20.2 20.4 29.0 22.1 18.1 11.9
transport services
Port operations -1.1 -1.8 -0.1 -0.6 0.1 0.7 -0.8 -1.4
Result before interest 3.9 5.4 20.1 19.8 29.0 22.8 17.3 10.5
and taxes
(EBIT) total
Financial items -4.3 -5.8 -4.8 -5.7 -4.4 -5.3 -3.7 -5.1
Result before taxes -0.4 -0.4 15.3 14.1 24.7 17.5 13.6 5.4
(EBT)
Income taxes 1.0 0.7 0.5 0.6 0 0.6 2.1 3.2
Result for the 0.6 0.3 15.8 14.7 24.7 18.1 15.7 8.5
reporting period
EPS (undiluted / 0.01 0.01 0.31 0.29 0.48 0.35 0.31 0.17
diluted)
SHARES, MARKET CAPITALISATION AND TRADING INFORMATION
31 Dec 2015 31 Dec 2014
Number of shares 51,503,141 51,503,141
Market capitalisation, EUR million 911.6 824.1
1-12 2015 1-12 2014
Number of shares traded, million 7.1 5.1
1-12 2015
High Low Average Close
Share price 18.00 14.34 17.65 17.70
EVENTS AFTER THE REPORTING PERIOD
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 early 2016.
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 will initiate arbitration proceedings as provided in the
Finnish Companies Act.
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
MS Finneagle was chartered out to the Grimaldi Group during the fourth quarter
of 2015.
Otherwise there were no material related party transactions during the
reporting period. The business transactions were carried out using market-based
pricing.
© 2024 Nasdaq, Inc. All Rights Reserved |