2014-11-06 14:54:27 CET
2014-11-06 14:55:31 CET
REGULATED INFORMATION
Finnlines - Interim report (Q1 and Q3)
Finnlines Plc Interim report January-September 2014 (unaudited)
Helsinki, Finland, 2014-11-06 14:54 CET (GLOBE NEWSWIRE) -- FINNLINES PLC
INTERIM REPORT JANUARY-SEPTEMBER 2014 (unaudited) Stock Exchange Release 6
November 2014 at 15:55
JANUARY-SEPTEMBER 2014: Result improved over EUR 37 million
· Revenue EUR 413.8 (433.3 prev. year) million, decrease 4.5 per cent
· Result before interest, taxes, depreciation and amortisation (EBITDA)
EUR 91.5 (63.4) million, increase 44.3 per cent
· Result for the reporting period EUR 33.2 (-3.9) million
· Earnings per share were 0.64 (-0.08) EUR/share
· Interest-bearing debt decreased EUR 96.7 million and was EUR 627.1
(723.8) million at the end of the period
· Fuel consumption reduced by 4.9 per cent
JULY-SEPTEMBER 2014: Best quarterly result ever in eight years, earnings per
share up by almost 200 per cent
· Revenue EUR 143.7 (149.7 prev. year) million, decrease 4.0 per cent
· Result before interest, taxes, depreciation and amortisation (EBITDA)
EUR 36.9 (28.6) million, increase 29.4 per cent
· Result for the reporting period EUR 18.1 (6.1) million
· Earnings per share were 0.35 (0.12) EUR/share
KEY FIGURES
MEUR 1-9 2014 1-9 2013 7-9 2014 7-9 2013 1-12 2013
Revenue 413.8 433.3 143.7 149.7 563.6
Result before interest, 91.5 63.4 36.9 28.6 83.7
taxes, depreciation and
amortisation (EBITDA)
Result before interest and 48.1 12.8 22.9 11.7 18.1
taxes (EBIT)
% of revenue 11.6 2.9 15.9 7.8 3.2
Result for the reporting 33.2 -3.9 18.1 6.1 6.0
period
EPS, EUR 0.64 -0.08 0.35 0.12 0.12
Shareholders' equity/share, 9.63 8.78 9.63 8.78 8.98
EUR
Equity ratio, % 38.6 33.4 38.6 33.4 35.7
Interest bearing debt, MEUR 627.1 723.8 627.1 723.8 673.0
Gearing, % 130.0 163.5 130.0 163.5 149.1
EMANUELE GRIMALDI, PRESIDENT AND CEO, IN CONJUNCTION WITH THE REVIEW:
Finnlines Group's profitability growth is impressive and the fleet is ready for
2015
”The third quarter result for the reporting period, EUR 18.1 million, is the
fourth consecutive quarter with impressive over EUR 10 million improvement when
compared to previous year. The January-September result for the reporting
period amounting to EUR 33.2 million, again, is a record result in eight years.
Despite of a somewhat uncertain economic environment we have been able to
improve further our profitability. Lower bunker surcharge reduced the turnover
slightly. However, higher cargo volumes have increased the capacity utilisation
of our vessels, which have reduced our costs and have improved our efficiency.
Through operational optimisations, fuel consumption was reduced in the first
nine months of the year by 4.9 per cent with benefit for both the environment
and company results. The Company is targeting not only for improving its
operations and profitability but also for improving its capital structure; we
continue to analyse every vessel and every line in order to investigate whether
there is opportunity for profitable operations in the current market situation
and need to react if overcapacity exists. Finnlines Group's good cash-flow
generation has enabled us to further reduce our interest bearing debt
considerably and, therefore, the equity ratio has improved to 38.6 per cent.
The turnaround programme striving towards cost efficiency has been well
implemented and the results show our people can deliver. We are progressing
well with our capex programme and after implementation we will have the
strongest fleet in the Baltic Sea with scrubbers installed and efficient fuel
economy with new propulsion systems. We continue our good work to improve
further our operational efficiency and cost efficiency and it has already
become crystal clear that the Group's result before taxes will continue to
improve over the previous year. In fact, when measured at the EBITDA level
Finnlines Group is likely to make its best or second best EBITDA since the
beginning of this century.”
FINNLINES PLC, INTERIM REPORT JANUARY-SEPTEMBER 2014 (unaudited)
FINNLINES' BUSINESS
Finnlines is the largest shipping company in the Baltic Sea providing both
ro-ro and ro-pax services (source: Baltic Transportation Journal). Finnlines'
passenger-freight vessels offer services from Finland to Germany and via the
Åland Islands to Sweden, from Sweden to Germany and from Germany to Russia.
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 25 subsidiaries.
Finnlines is part of the Italian Grimaldi Group, which is a global logistics
group specialising in maritime transport of cars, rolling cargo, containers and
passengers. The Grimaldi Group comprises seven shipping companies, including
Finnlines, Atlantic Container Line (ACL), Malta Motorways of the Sea (MMS) and
Minoan Lines. With a fleet of about 100 vessels, the Group provides maritime
transport services for rolling cargo and containers between North Europe, the
Mediterranean, the Baltic Sea, West Africa, North and South America. It also
offers passenger services within the Mediterranean and Baltic Sea. With 77.76
per cent (on 30 September 2014) 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-August, the
Finnish seaborne imports carried in container, lorry and trailer units remained
at the same level as in 2013 whereas exports increased by 3 per cent (measured
in tons) compared to the same period in 2013. According to the statistics
published by Shippax for January-August, trailer and lorry volumes transported
by sea between Southern Sweden and Germany increased by 1 per cent compared to
2013. During the same period private and commercial passenger traffic between
Finland and Sweden decreased by 3 per cent. Between Finland and Germany the
corresponding traffic decreased by 8 per cent (Finnish Transport Agency).
FINNLINES' TRAFFIC
During the third quarter Finnlines operated on average 24 (25) vessels in its
own traffic.
In August Finnlines re-opened its weekly service from the Finnish ports of
Kotka and Helsinki to Tilbury, Great Britain. The vessel returns to Helsinki
via Amsterdam and Antwerp and further to St. Petersburg.
On the Helsinki-Rostock service MS Finnkraft substituted MS Finnhansa, which
left northern Europe at the end of September 2014.
The cargo volumes transported during January-September totalled approximately
486 (478 in 2013) thousand cargo units, 61 (43) thousand cars (not including
passengers' cars) and 1,803 (1,649) thousand tons of freight not possible to
measure in units. In addition, some 450 (443) thousand private and commercial
passengers were transported.
FINANCIAL RESULTS
January-September 2014
The Finnlines Group recorded revenue totalling EUR 413.8 (433.3) million, a
decrease of 4.5 per cent compared to the same period in 2013. Shipping and Sea
Transport Services generated revenue amounting to EUR 401.9 (413.8) million and
Port Operations EUR 28.6 (38.5) million. The internal revenue between the
segments was EUR 16.7 (19.0) million.
Result before interest, taxes, depreciation and amortisation (EBITDA) was EUR
91.5 (63.4) million, an increase of 44.3 per cent.
Result before interest and taxes (EBIT) was EUR 48.1 (12.8) 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 impact the financial performance of the Group.
Net financial expenses decreased and were EUR -16.8 (-18.9) million. Financial
income was EUR 0.3 (0.3) million and financial expenses EUR -17.2 (-19.2)
million. The above mentioned increased operational efficiency, decreased net
financial expenses, and moreover, cutting of the vessel overcapacity by selling
three vessels in the end of 2013, which enabled better optimization of the
existing tonnage, altogether contributed to a EUR 37.1 million increase in the
result for the reporting period. The result for January-September was EUR 33.2
(-3.9) million and earnings per share (EPS) were EUR 0.64 (-0.08).
July-September 2014
The Finnlines Group recorded revenue totalling EUR 143.7 (149.7) million, a
decrease of 4.0 per cent compared to the same period in 2013. Shipping and Sea
Transport Services generated revenue amounting to EUR 140.0 (144.2) million and
Port Operations EUR 8.5 (11.4) million. The internal revenue between the
segments was EUR 4.8 (5.9) million. Compared to the first two quarters the
amount of passengers has increased due to the summer high season.
Result before interest, taxes, depreciation and amortisation (EBITDA) was EUR
36.9 (28.6) million, an increase of 29.4 per cent.
Result before interest and taxes (EBIT) was EUR 22.9 (11.7) million.
Net financial expenses were EUR -5.4 (-6.2) million. Financial income was EUR
0.1 (0.1) million and financial expenses totalled EUR -5.5 (-6.3) million. The
result for July-September was EUR 18.1 (6.1) million, which is the best quarter
ever in eight years. Earnings per share (EPS) rose to EUR 0.35 (0.12).
STATEMENT OF FINANCIAL POSITION, FINANCING AND CASH-FLOW
Interest-bearing debt decreased by EUR 96.7 million and amounted to EUR 627.1
(723.8) million excluding leasing liabilities EUR 19.9 (21.5) million. The
equity ratio calculated from the balance sheet improved to 38.6 (33.4) per cent
and gearing dropped to 130.0 (163.5) per cent. Vessel lease commitments
decreased by EUR 13.9 million to EUR 14.2 million compared to the end of
September 2013.
At the end of the period, cash and deposits together with unused committed
working capital credits amounted to EUR 82.0 (68.8) million.
Net cash generated from operating activities improved markedly and was EUR 55.5
(30.2) million.
CAPITAL EXPENDITURE
Finnlines Group's gross capital expenditure in the reporting period totalled
EUR 20.5 (9.4) million including tangible and intangible assets. Total
depreciation amounted to EUR 43.4 (50.7) million. The capital expenditures
consist of normal replacement costs of fixed assets, prepayments of scrubber
and re-blading projects and dry-docking cost of ships.
Due to the new stringent sulphur oxide emission regulations to be enforced 1
January 2015, Finnlines has ordered exhaust gas cleaning systems for six of its
latest series of ro-ro vessels built 2011-2012, for four of its Star-class
ro-pax vessels built 2006-2007 and for four of its ro-ro vessels built
2000-2002. These investments are part of the 2014 capex programmes. The
scrubber systems will be installed during the end of 2014 and the beginning of
2015. By selecting these scrubber systems, the vessels will be able to operate
in compliance with the new environmental regulations while continuing to
operate on heavy fuel oil. At the same time, Finnlines has ordered an
improvement retrofit to the propulsion system to be installed on four
Star-class ro-pax vessels. At the end of June, Finnlines ordered the same type
of improvement retrofit to the propulsion systems of MS Finnmill and MS
Finnpulp. These re-blading projects will be done during the turn of the year.
This new propeller and rudder system improves substantially the vessels'
relative propulsion efficiency and as a result, the vessels achieve a reduction
in fuel consumption.
PERSONNEL
The Group employed an average of 1,729 (1,878) persons during the period,
consisting of 778 (927) persons on shore and 951 (951) persons at sea. The
average number of shore personnel decreased mostly due to employee reductions
in Port Operations. The number of persons employed at the end of the period
was1,628 (1,834) in total, of which 709 (927) on shore and 919 (907) at sea.
The personnel expenses (including social costs) for the reporting period were
EUR -67.2 (-78.4) million.
THE FINNLINES SHARE
The Company's registered share capital on 30 September 2014 was EUR 103,006,282
divided into 51,503,141 shares. A total of 4.0 (0.8) million shares were traded
on the NASDAQ OMX Helsinki during January-September. The market capitalisation
of the Company's stock at the end of September was EUR 772.5 (321.9) million.
Earnings per share (EPS) were EUR 0.64 (-0.08). Shareholders' equity per share
was EUR 9.63 (8.78). At the end of the reporting period, the Grimaldi Group's
holding and share of votes in Finnlines was 77.76 per cent.
RISKS AND RISK MANAGEMENT
Finnlines is exposed to business risks that arise from 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 when the aging fleet is scrapped, on the one hand, and when more
stringent sulphur directive requirements come into force, 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 will decrease to 0.1 per cent in 2015 in accordance with the MARPOL
Convention. This brings a risk of increased costs in sea transportation. But
considering that Finnlines has one of the youngest and largest fleet in
Northern Europe, and the Company is doing targeted investment on engine systems
and energy efficiency, Finnlines is in the 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 risks related
to counterparties and Finnlines 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 2013 Financial statements, published in 27 February 2014, 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 October, Finnlines has sold MS Finnhansa to the Grimaldi Group at a market
price of EUR 30 million and Finnlines Plc's subsidiary has signed the sales
agreement of MS Euroferry Brindisi (MS Finnarrow) with an external party at a
market price of EUR 32.5 million. These actions, when concluded, will lead in
Finnlines Group to a cumulative additional cash-flow of EUR 62.5 million, gains
on sales of approximately EUR 3.5 million and an equity ratio improvement to
around 40 per cent in the fourth quarter.
OUTLOOK AND OPERATING ENVIRONMENT
The Finnlines Group's result before taxes is expected to continue to be better
for the remaining part of 2014 compared to the corresponding period in the
previous year due to several reasons: certain vessels have been sold to cut
overcapacity, the number of personnel has been reduced, changes in fleet/routes
have increased operational efficiency, fuel consumption has been reduced,
overall productivity has been increased, and the interest bearing debt has been
reduced.
The Group Financial Statement bulletin for the period of 1 January-31 December
2014 will be published on Tuesday, 24 February 2015.
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 (condensed)
- Revenue and result by business segments
- Property, plant and equipment
- Contingencies and commitments
- Revenue and result by quarter
- Shares, market capitalisation and trading information
- Calculation of ratios
- Related party transactions
DISTRIBUTION
NASDAQ OMX Helsinki Ltd.
Main media
This interim report is unaudited.
REPORTING AND ACCOUNTING POLICIES
This interim report included herein is prepared in accordance with IAS 34
(Interim Financial Reporting) standard. The Company has adopted new or revised
IFRS standards and IFRIC interpretations from the beginning of the reporting
period corresponding to those described in the 2013 Financial Statements with
effect of 1 January 2014. These new or revised standards have not had an effect
on the reported figures.
Finnlines Plc entered into the tonnage taxation regime in January 2013. In
tonnage taxation, shipping operations transferred from taxation of business
income to tonnage-based taxation.
In other respects, the same accounting policies have been applied as in the
previous annual financial statements.
All figures in the accounts have been rounded and, consequently, the sum of
individual figures may deviate from the presented sum figure.
The preparation of the 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 2013.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, IFRS
EUR 1,000 7-9 2014 7-9 2013 1-9 2014 1-9 2013 1-12 2013
Revenue 143,673 149,661 413,813 433,303 563,587
Other income from 888 1,853 3,057 2,636 5,329
operations
Materials and -50,535 -59,465 -149,296 -178,021 -229,690
services
Personnel expenses -19,933 -23,887 -67,150 -78,427 -102,584
Depreciation, -14,079 -16,823 -43,384 -50,668 -65,583
amortisation and
impairment losses
Other operating -37,159 -39,609 -108,927 -116,062 -152,983
expenses
Total operating -121,706 -139,784 -368,757 -423,178 -550,840
expenses
Result before 22,855 11,729 48,113 12,761 18,075
interest and taxes
(EBIT)
Financial income 146 107 342 348 526
Financial expenses -5,498 -6,262 -17,181 -19,210 -25,335
Result before taxes 17,502 5,575 31,273 -6,101 -6,734
(EBT)
Income taxes 645 554 1,910 2,232 12,744
Result for the 18,147 6,128 33,183 -3,869 6,011
reporting period
Other comprehensive
income:
Other comprehensive
income
to be reclassified
to profit
and loss in
subsequent periods:
Exchange differences 15 14 34 -10 -9
on translating
foreign operations
Changes in cash flow
hedging reserve
Fair value changes
Transfer to fixed
assets
Tax effect, net -4 -5 -6 2 2
Other comprehensive 11 8 28 -7 -7
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:
Remeasurement of -399
defined benefit
plans
Tax effect, net * 0 212 1
Other comprehensive 0 212 -398
income
not being
reclassified to
profit
and loss in
subsequent periods,
total
Total comprehensive 18,158 6,136 33,422 -3,877 5,606
income
for the reporting
period
Result for the
reporting period
attributable to:
Parent company 18,132 6,076 33,193 -3,879 5,997
shareholders
Non-controlling 15 52 -10 10 14
interests
18,147 6,128 33,183 -3,869 6,011
Total comprehensive
income
for the reporting
period attributable
to:
Parent company 18,143 6,084 33,433 -3,887 5,592
shareholders
Non-controlling 15 52 -10 10 14
interests
18,158 6,136 33,422 -3,877 5,606
Result for the
reporting period
attributable to
parent company
shareholders
calculated as
earnings per share
(EUR/share):
Undiluted / diluted 0.35 0.12 0.64 -0.08 0.12
earnings per share
Average number of
shares:
Undiluted / diluted 51,503,141 51,503,141 51,503,141 49,202,477 49,782,370
The majority of amounts included in Comprehensive income relates to tonnage tax
scheme. There is no tax on this income.
* Tax asset has been posted from remeasurement because Finnlines Deutschland
GmbH transferred from tonnage-based taxation to business taxation at the end of
January 2014. The company entered into business taxation as from 1 February
2014.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION, IFRS
EUR 1,000 30 Sep 30 Sep 31 Dec
2014 2013 2013
ASSETS
Non-current assets
Property, plant and equipment 986,021 1,098,516 1,084,389
Goodwill 105,644 105,644 105,644
Intangible assets 5,717 5,941 5,836
Other financial assets 4,580 4,581 4,580
Receivables 1,018 483 43
Deferred tax assets 1,599 1,428 1,370 1,104,579 1,216,592 1,201,861
Current assets
Inventories 8,496 11,360 8,832
Accounts receivable and other receivables 97,011 90,475 85,251
Income tax receivables 185 1 1
Cash and cash equivalents 2,454 4,099 2,508
108,145 105,934 96,592
Non current assets held for sale 74,086 36,620
Total assets 1,286,810 1,359,146 1,298,453
EQUITY
Equity attributable to parent company
shareholders
Share capital 103,006 103,006 103,006
Share premium account 24,525 24,525 24,525
Fair value reserve
Translation differences 136 109 109
Fund for invested unrestricted equity 40,016 40,016 40,016
Retained earnings 328,046 284,773 294,641
495,730 452,429 462,297
Non-controlling interests 308 848 360
Total equity 496,038 453,277 462,658
LIABILITIES
Long-term liabilities
Deferred tax liabilities 55,596 68,497 57,560
Interest-free liabilities 2,550 4,349 3,242
Pension liabilities 3,961 3,711 3,982
Provisions 1,889 5,052 1,980
Interest-bearing liabilities 485,988 549,404 557,759
549,983 631,014 624,523
Current liabilities
Accounts payable and other liabilities 79,589 78,864 72,815
Income tax liabilities 16 25 27
Provisions 103 60 3,715
Current interest-bearing liabilities 152,560 195,907 134,715
232,268 274,856 211,273
Total liabilities 782,251 905,869 835,796
Liabilities directly attributable to 8,521
non-current assets held for sale
Total equity and liabilities 1,286,810 1,359,146 1,298,453
CONSOLIDATED statement of changes in equity 2013, IFRS
EUR Equity attributable to parent company
1,000 shareholders
Share Share Trans- Fair Unres- Retaine Total Non-
Total
capital issue lation value tricte d contro
equity
pre diffe- reserv d earning l-
-mium rences es equity s ling
reserv intere
e sts
Report 93,642 24,525 116 21,015 289,990 429,289 838
430,127
ed
equit
y 1
Januar
y 2013
Effect -1,338 -1,338
-1,338
of
IAS
19
Emplo
yee
benefi
ts
standa
rd
Restat 93,642 24,525 116 21,015 288,652 427,951 838
428,788
ed
equity
1
Januar
y 2013
Compre
hen-
sive
incom
e for
the
repor
ting
period
:
Result -3,879 -3,879 10
-3,869
for
the
report
ing
period
Exchan -10 -10
-10
ge
differ
ences
on
transl
ating
foreig
n
operat
ions
Tax 2 2
2
effec
t, net
Total -7 -3,879 -3,887 10
-3,877
compr
ehensi
ve
income
for
the
report
ing
period
Share 9,364 19,001 28,365
28,365
issue
Equity 103,006 24,525 109 40,016 284,773 452,429 848
453,277
30
Septem
ber
2013
CONSOLIDATED statement of changes in equity 2014, IFRS
EUR Equity attributable to parent company
1,000 shareholders
Share Share Trans- Fair Unres- Retai- Total Non-
Total
capital issue lation value tricte ned contr-
equity
premiu diffe- reserv d earning olling
m rences es equity s intere
reserv sts
e
Report 103,006 24,525 109 40,016 294,641 462,297 360
462,658
ed
equity
1
Januar
y 2014
Effect
of
IAS
19
Emplo
yee
benefi
ts
standa
rd
Restat 103,006 24,525 109 40,016 294,641 462,297 360
462,658
ed
equity
1
Januar
y 2014
Compre
hen-
sive
incom
e for
the
repor
ting
period
:
Result 33,193 33,193 -10
33,183
for
the
report
ing
period
Exchan 34 34
34
ge
differ
ences
on
transl
ating
foreig
n
operat
ions
Tax -6 212 206
206
effec
t, net
Total 28 33,405 33,433 -10
33,422
compre
hensiv
e
income
for
the
report
ing
period
Divide -42
-42
nd
Equity 103,006 24,525 136 40,016 328,046 495,730 308
496,038
30
Septem
ber
2014
CONSOLIDATED CASH FLOW STATEMENT, IFRS
EUR 1,000 1-9 2014 1-9 2013 1-12 2013
Cash flows from operating activities
Result for the reporting period 33,183 -3,869 6,011
Adjustments:
Non-cash transactions 41,788 48,970 61,609
Unrealised foreign exchange gains (-) / losses -45 33 19
(+)
Financial income and expenses 16,884 18,829 24,790
Taxes -1,910 -2,232 -12,744
Changes in working capital
Change in accounts receivable and other -16,676 -16,273 -6,402
receivables
Change in inventories 336 -1,601 927
Change in accounts payable and other liabilities 4,934 8,467 -170
Change in provisions -113 -129 379
Interest paid -15,983 -19,172 -22,366
Interest received 113 121 192
Taxes paid * -3,885 -406 -423
Other financing items -3,080 -2,491 -3,645
Net cash generated from operating activities 55,547 30,248 48,175
Cash flow from investing activities
Investments in tangible and intangible assets -16,689 -10,265 -10,960
Proceeds from sale of tangible assets 7,801 86,503 120,647
Dividends received 13 12
Loans granted -900
Net cash used in investing activities -9,775 76,238 109,699
Cash flows from financing activities
Proceeds from issue of share capital 28,365 28,365
Loan withdrawals 135,475 173,773 263,772
Net increase in current interest-bearing 17,556 43 -14,198
liabilities
Repayment of loans -199,166 -321,077 -449,914
Acquisition of non-controlling interest -102
Decrease in long-term receivables 350 229 429
Dividends paid -42
Net cash used in financing activities -45,827 -118,667 -171,647
Change in cash and cash equivalents -55 -12,181 -13,772
Cash and cash equivalents 1 January 2,508 16,282 16,282
Effect of foreign exchange rate changes 0 -3 -2
Cash and cash equivalents at the end of period 2,454 4,099 2,508
* Taxes paid includes Finnlines Deutschland GmbH's payment of tax provision EUR
3.6 million.
REVENUE AND RESULT BY BUSINESS SEGMENTS
7-9 2014 7-9 2013 1-9 2014 1-9 2013 1-12 2013
MEUR % MEUR % MEUR % MEUR % MEUR %
Revenue
Shipping 140.0 97.4 144.2 96.3 401.9 97.1 413.8 95.5 538.6 95.6
and sea
transport
services
Port 8.5 5.9 11.4 7.6 28.6 6.9 38.5 8.9 50.1 8.9
operation
s
Intra-grou -4.8 -3.3 -5.9 -4.0 -16.8 -4.0 -19.0 -4.4 -25.1 -4.5
p revenue
External 143.7 100.0 149.7 100.0 413.8 100.0 433.3 100.0 563.6 100.0
sales
Result
before
interest
and taxes
Shipping 22.1 13.5 49.8 19.7 27.9
and sea
transport
services
Port 0.7 -1.8 -1.7 -7.0 -9.8
operation
s
Result 22.8 11.7 48.1 12.8 18.1
before
interest
and taxes
(EBIT)
total
Financial -5.3 -6.2 -16.8 -18.9 -24.8
items
Result 17.5 5.6 31.3 -6.1 -6.7
before
taxes
(EBT)
Income 0.6 0.6 1.9 2.2 12.7
taxes
Result for 18.1 6.1 33.2 -3.9 6.0
the
reporting
period
PROPERTY, PLANT AND EQUIPMENT 2014
EUR 1,000 Land Buildin Vessels Machinery ** Total
gs and Advance
equipment payments &
acquisition
s
under
constructio
n
Acquisition cost 72 75,271 1,372,769 73,122 398 1,521,632
1 January 2014
Exchange rate 36 36
differences
Increases 4,068 116 15,664 19,849
Disposals -2,062 -261 -6,698 -9,021
Reclassification -4,369 -94,603 -22,395 -121,367
s to non-current
assets held for
sale *
Acquisition cost 72 68,840 1,281,974 44,181 16,062 1,411,128
30 September
2014
Accumulated -16,316 -373,866 -47,060 -437,243
depreciation,
amortisation and
write-offs
1 January 2014
Exchange rate -33 -33
differences
Reclassification 1,132 35,638 10,510 47,280
to non-current
assets held for
sale *
Cumulative 1,012 261 6,223 7,496
depreciation on
reclassification
s and disposals
Depreciation for -1,815 -39,060 -1,733 -42,609
the
reporting period
Accumulated -15,986 -377,028 -32,093 -425,108
depreciation,
amortisation and
write-offs
30 September
2014
Book value 30 72 52,853 904,946 12,088 16,062 986,021
September 2014
* Finnlines Group is negotiating to sell two vessels with the book value of EUR
58.9 million and the Port Operations are negotiating to sell port assets with
the book value of around EUR 15.1 million. No impairment losses have been
recognized on the carrying amount of the assets.
** Includes mainly advance payments for the scrubber system.
PROPERTY, PLANT AND EQUIPMENT 2013
EUR 1,000 Land Buildin Vessels Machine Advance Total
gs ry payments
and &
equipme acquisitio
nt ns
under
constructi
on
Acquisition cost 1 72 76,466 1,597,437 79,690 991 1,754,655
January 2013
Exchange -13 -13
rate
differences
Increases 102 8,463 479 23 9,067
Reclassifi -126,855 -237 -127,092
cations to
non-current
assets held
for sale *
Disposals -803 -106,412 -6,344 -113,559
Reclassifi 406 5 -410 0
cations
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 12 12
rate differences
Reclassifications to 90,472 90,472
non-current
assets held
for sale *
Cumulative 801 21,612 6,579 28,991
depreciation on
reclassifi
cations and
disposals
Depreciation -1,919 -44,575 -3,163 -49,657
for the
reporting
period
Accumulated -16,166 -361,518 -46,858 -424,542
depreciation,
amortisation
and write-offs 30
September
2013
Book value 72 59,599 1,011,519 26,959 367 1,098,516
30
September 2013
CONTINGENCIES AND COMMITMENTS
EUR 1,000 30 Sep 30 Sep 31 Dec
2014 2013 2013
Minimum leases payable in relation to
fixed-term leases:
Vessel leases (Group as lessee):
Within 12 months 11,492 13,934 14,007
1-5 years 2,683 14,175 10,644
14,175 28,109 24,651
Vessel leases (Group as lessor):
Within 12 months 2,446 1,580 2,356
1-5 years 5,847 4,749 7,457
8,293 6,329 9,812
Other leases (Group as lessee):
Within 12 months 6,307 5,658 6,107
1-5 years 17,619 17,177 17,948
After five years 10,117 13,127 12,358
34,043 35,962 36,413
Other leases (Group as lessor):
Within 12 months 245 364 350
245 364 350
Collateral given
Loans from financial institutions 520,024 601,095 561,245
Vessel mortgages provided as guarantees for the 1,035,000 1,136,000 1,121,000
above loans
Other collateral given on own behalf
Pledged deposits 0 11
Corporate mortgages 606 606 606
606 617 606
Other obligations * 43,782 2,777 2,375
VAT adjustment liability related to real estate 5,674 6,953 6,756
investments
* 2014 includes scrubber system and re-blading obligations EUR 42.1 million.
REVENUE AND RESULT BY QUARTER
MEUR Q1/14 Q1/13 Q2/14 Q2/13 Q3/14 Q3/13
Shipping and sea transport services 122.8 126.0 139.1 143.6 140.0 144.2
Port operations 10.0 14.3 10.2 12.8 8.5 11.4
Intra-group revenue -6.0 -6.4 -5.9 -6.7 -4.8 -5.9
External sales 126.8 133.9 143.3 149.7 143.7 149,7
Result before interest and taxes
Shipping and sea transport services 7.3 -3.6 20.4 9.8 22.1 13,5
Port operations -1.8 -2.2 -0.6 -3.0 0.7 -1,8
Result before interest and taxes 5.4 -5.8 19.8 6.9 22.8 11,7
(EBIT) total
Financial items -5.8 -6.2 -5.7 -6.5 -5.3 -6,2
Result before taxes (EBT) -0.4 -12.1 14.1 0.4 17.5 5,6
Income taxes 0.7 1.2 0.6 0.5 0.6 0,6
Result for the reporting period 0.3 -10.9 14.7 0.9 18.1 6,1
EPS (undiluted / diluted)* 0.01 -0.23 0.29 0.02 0.35 0,12
* Key indicators per share have been adjusted with the share issue adjustment
factor.
SHARES, MARKET CAPITALISATION AND TRADING INFORMATION
30 Sep 2014 30 Sep 2013
Number of shares 51,503,141 51,503,141
Market capitalisation, EUR million 772.5 321.9
1-9 2014 1-9 2013
Number of shares traded, million 4.0 0.8
1-9 2014
High Low Average Close
Share price 15.01 7.14 8.95 15.00
CALCULATION OF RATIOS
Earnings per share (EPS), EUR :
Result attributable to parent company shareholders
-------------------------------------------------------------------------
Weighted average number of outstanding shares
Shareholders' equity per share, EUR :Shareholders' equity attributable to parent company shareholders
--------------------------------------------------------------------------------
-----------
Undiluted number of shares at the end of period
Gearing, %:
Interest-bearing liabilities - cash and bank equivalents
--------------------------------------------------------------------------- X
100
Total equity
Equity ratio, %:
Total equity
--------------------------------------------- X 100
Assets total - received advances
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.
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