Finnlines Plc Stock Exchange Release 20 February, 2008 FINANCIAL STATEMENT BULLETIN 1 JANUARY - 31 DECEMBER 2007 The Finnlines Group recorded revenue totaling EUR 685.5 (632.7) million, continuing operations). Operating profit was EUR 68.8 (58.2) million. Profit before taxes was EUR 40.1 (47.7) million. Return on equity (ROE) was 8.0 (14.1)% and return on investment (ROI) was 6.9 (9.9)%. Significant events in 2007 For Finnlines, 2007 was marked with newbuildings and converted vessels entering service and the resulting traffic rearrangements. In early 2007, a third vessel joined the company's ro-pax traffic between Germany and Finland, after which it has been possible to sell passenger services on this route to the full. The route between Naantali and Kapellskär received a fourth, converted vessel in March. During the year, the traffic rearrangements hampered in particular the company's Malmö - Travemünde route, owing to two newbuildings and two converted vessels entering service. The investment programme and vessels' withdrawals from traffic for conversion burdened the whole year's operating profit. As a result of the newbuildings, Finnlines' passenger capacity increased considerably. For this reason, a new head was appointed to take responsibility for the company's passenger services. From the start of 2008, passenger services form a separate segment, including passenger operations in the company's all operating areas. These services will be marketed under the name Finnlines regardless of the route. During 2007, the company's entire top management changed. The new Board of Directors was appointed in March and the new permanent President and CEO in July. Changes in the ownership In January, Grimaldi Group, the majority shareholder in Finnlines made a public mandatory tender offer for all shares in Finnlines. The purchase price was EUR 17.00 for each share. Grimaldi Group's holding and share of votes in Finnlines rose to 50.7 per cent. At the end of the year, Grimaldi Group's holding and share of votes in Finnlines was 52.5 per cent. Annual General Meeting Finnlines Plc's Annual General Meeting, held on 16 March 2007, decided to pay a dividend of EUR 0.42 per share, i.e. a total of EUR 17.1 million. The dividend payment day was 28 March 2007. The AGM decided that the company's Board of Directors has seven members. The following members were elected to the Board: Mr. Emanuele Grimaldi, Mr. Gianluca Grimaldi, Mr. Diego Pacella (vice-chairman), Mr. Heikki Laine, Mr. Antti Pankakoski, Mr. Olav K. Rakkenes and Mr. Jon-Aksel Torgersen (chairman). The firm of authorised public accountants Deloitte & Touche Oy was appointed as the company's auditors with Mikael Leskinen, APA, as the principally responsible auditor. Changes in management Antti Lagerroos, President and CEO of Finnlines Plc resigned from his duties in February and Mr. Olav K. Rakkenes, a member of the Board of Directors, was appointed temporary President and CEO of Finnlines Plc as from 24 April 2007. Mr. Christer Antson (MSc, Econ), was appointed President and CEO of Finnlines Plc as from 4 July 2007. Mr. Antson was previously Executive Vice President and Chief Controller of Finnlines Plc. Ms. Seija Turunen (MSc, Econ) was appointed Deputy CEO and CFO being in charge of finance, accounting, communications, personnel, administration and information technology as from 4 July 2007. Mrs. Turunen was previously Executive Vice President, Finance and Communications of Finnlines Plc. Vessels and traffic The third newbuilding, MS Finnlady, entered service between Helsinki, Finland and Travemünde, Germany in mid-February and the fourth vessel of the series, MS Europalink, started plying between Malmö, Sweden and Travemünde, Germany in March 2007. The last of the five newbuildings, MS Nordlink, was delivered in July and started operating between Malmö, Sweden and Travemünde, Germany at the end of July. The compensation dispute relating to the late delivery of the newbuildings was settled with the shipyard and the received EUR 15 million compensation has been booked to balance sheet as deduction of the purchase prices of the vessels. MS Finntrader started operating in NordöLink traffic in February 2007. Her sister vessel MS Finnpartner was docked for conversion in April and started plying in NordöLink traffic at the beginning of September in 2007. These Hansa-class vessels were converted into drive-through vessels with increased passenger capacity. MS Finnclipper has been back in FinnLink service since March after conversion. The cargo capacity of the vessel was increased by 500 lane metres to a total of 2,900 lane metres. In April, Finnlines Group agreed on the sale of the ropax vessels MS Malmö-Link and MS Lübeck-Link (built 1980) to external non-related parties. The first of these NordöLink vessels was replaced by the newbuilding Nordlink at the end of July and the second was replaced, after conversion, by MS Finnpartner at the beginning of September. The sales profit, approximately EUR 12 million, is included in the Group's third quarter result. At the end of August, Finnlines ordered six new ro-ro vessels from the Chinese Jinling shipyard. The cargo capacity of each vessel will be about 3,200 lane metres and the speed 20 knots. The contract price is around EUR 240 million and the vessels will be delivered in 2010-2011. The vessels will form an essential part of Finnlines ice-classified core fleet. The operations at the terminals of Lübecker Hafengesellschaft in Lübeck harbours suffered from actions of the stevedoring workers' union during the second quarter. The reason was the union's protest against the planned privatisation of Lübecker Hafengesellschaft. The cargo volumes transported during the year totalled approximately 807,000 (743,000 in 2006) units, 96,000 (149,000) cars (not including cars of the passengers) and, in addition, 2,363,000 (3,117,000) tonnes of freight not possible to measure as units. In addition, some 500,000 passengers were transported (around 400,000 in 2006), which figure includes freight-related passengers. At the end of the year, the economic trend seems to have changed considerably. The traffic between Finland and Continental Europe was not in balance since import volumes continued to grow, while growth in export volumes stalled. Both segments, shipping and sea transport services, and port operations, suffered from this trend, which prejudiced the financial performance of the last quarter. Financial performance The Finnlines Group recorded revenue totaling EUR 685.5 (632.7 from the continuing operations in 2006) million. This is equivalent to an 8.3 per cent growth. Shipping and Sea Transport Services generated revenue amounting to EUR 585.1 (539.0) million and Port Operations EUR 133.2 (123.1) million. Other income from operations amounted to EUR 15.3 (2.1) million, the main part of which comes from the sales gain on the two vessels sold. Operating profit was EUR 68.8 (58.2, continuing operations) million. Financial income was EUR 5.3 (10.8) million and financial expenses totaled EUR -34.0 (-21.6) million. The increase in financial expenses is due to the investment programmes, which are financed with long-term loans. Profit before taxes was EUR 40.1 (47.7, continuing operations) million. Return on equity (ROE) was 8.0 (14.1) % and return on investment (ROI) was 6.9 (9.9) %. Investments and financing The Group's gross investments were EUR 391.3 (238.8) million. The main part of this amount came from the delivery of three new buildings, MS Finnlady, MS Europalink and MS Nordlink. Based on the contract with the Chinese Jinling shipyard, the Group paid the first instalment of the vessels amounting to EUR 72 million in September. Interest-bearing net debt amounted to EUR 729.3 (441.4) million. The equity ratio calculated from the balance sheet was 31.1 (39.7)%. Gearing was 167.4 (104.2)%. Personnel The Group employed an average of 2,335 (2,196 continuing operations) people during the period, consisting of 1,470 (1,451) employees on shore and 865 (745) persons at sea. The Finnlines share The Company's registered share capital on 31 December 2007 was EUR 81,383,916 divided into 40,691,958 shares. A total of 9.4 million Finnlines shares were traded on the Helsinki Exchange during the period. The market capitalisation of the Company's stock at the end of December was EUR 620.6 million. Earnings per share (EPS) during the period were EUR 0.83 (1.38). Shareholders' equity per share was EUR 10.67 (10.36). Risks The loan portfolio of the company has increased substantially due to the five-vessel investment programme which ended in July, and due to the new investment programme of six new ro-ro vessels, with the value of approximately EUR 240 million, to be delivered during 2010-2011. The payments of this programme will be partly in USD, but this exposure is 100% hedged against EUR. The vessels are financed with long-term (12-15 years) loans. Otherwise there are no material changes in the risks during the year. More detailed information on Finnlines' risks is available in financial statements included in company's Annual Report. Litigation Arbitration proceedings commenced between the owners of MS Finnmill and MS Finnpulp and Finnlines Plc. The vessels are chartered by Finnlines and the charter agreements include purchase options on each of the vessels. The main dispute concerns the validity of these purchase options. Outlook for 2008 Finnlines has increased its transportation capacity and frequency considerably on its main routes and implemented a faster timetable between Finland and Germany. With its current fleet and traffic concept Finnlines has excellent potential to increase its market share on its main routes. The new Vuosaari harbour will most probably be operational as planned at the end of 2008. There will be some none-recurring expenses arising from the start-up phase of the new harbour. Those expenses are related mainly to transportation and re-location of the machinery, equipment and personnel and to closure of current premises. Company expenses are affected due to the new labour agreements in the sector, and by the increase in the bunker oil price. Due to the investments in the new vessels, vessel conversions and Vuosaari harbour, there will be continued increase in the depreciation and interest expense in 2008. The economic development in Europe creates uncertainty for the business environment. Dividend Distribution Proposal The Board of Directors will propose to the Annual Shareholders' Meeting that no dividend is paid for 2007 due to the sizeable investment for the 5 new vessels already in operation and the commitments for vessel renewable program and logistical investment. Annual General Meeting Finnlines Plc's Annual General Meeting will be held from 12.30 on Tuesday, 15 April 2008 at the Hotel SAS Radisson Royal, Kamppi, Runeberginkatu 2, Helsinki, Finland. The first interim report of the year, 1 January - 31 March 2008, will be published on 7 May 2008. Finnlines Plc The Board of Directors ENCLOSURES Profit and Loss Account Balance Sheet Changes in Shareholders Equity Cash Flow Statement Profit and Loss Account, Parent company, FAS Balance Sheet, Parent Company, FAS Revenue by business division Property, plant and equipment Financial indicators Contingencies and Commitments Revenue and operating result by quarter DISTRIBUTION Helsinki Exchanges Main media All figures unaudited -------------------------------------------------------------------------------- | CONSOLIDATED PROFIT AND LOSS ACCOUNT | | | | -------------------------------------------------------------------------------- | 1000 EUR | 10-12/07 | 10-12/06 | 1-12/07 | 1-12/06 | -------------------------------------------------------------------------------- | Continuing Operations | | | | | -------------------------------------------------------------------------------- | Revenue | 180,054 | 159,137 | 685,464 | 632,666 | -------------------------------------------------------------------------------- | Other income from operations | 933 | 561 | 15,320 | 2,078 | -------------------------------------------------------------------------------- | Materials and services | -59,698 | -44,993 | -205,904 | -196,042 | -------------------------------------------------------------------------------- | Personnel expenses | -29,289 | -29,705 | -116,648 | -111,266 | -------------------------------------------------------------------------------- | Depreciation, amortization | -14,036 | -11,273 | -53,081 | -39,875 | | and other write-offs | | | | | -------------------------------------------------------------------------------- | Other operating expenses | -66,331 | -58,086 | -256,334 | -229,337 | -------------------------------------------------------------------------------- | Total operating expenses | -169,353 | -144,057 | -631,968 | -576,521 | -------------------------------------------------------------------------------- | Operating profit | 11,633 | 15,641 | 68,816 | 58,223 | -------------------------------------------------------------------------------- | Financial income | 1,958 | 8,229 | 5,258 | 10,784 | -------------------------------------------------------------------------------- | Financial expenses | -9,403 | -11,018 | -33,956 | -21,557 | -------------------------------------------------------------------------------- | Share of associated | | 274 | | 274 | | companies' profits | | | | | -------------------------------------------------------------------------------- | Profit before taxes | 4,188 | 13,127 | 40,118 | 47,725 | -------------------------------------------------------------------------------- | Income taxes | 1,819 | -2,028 | -5,725 | -9,989 | -------------------------------------------------------------------------------- | Profit for the reporting | 6,007 | 11,099 | 34,393 | 37,736 | | period, continuing | | | | | | operations | | | | | -------------------------------------------------------------------------------- | Discontinuing operations | | | | | -------------------------------------------------------------------------------- | Profit for the reporting | N/A | -234 | N/A | 18,742 | | period, discontinuing | | | | | | operations | | | | | -------------------------------------------------------------------------------- | Profit for the reporting | 6,007 | 10,865 | 34,393 | 56,477 | | period | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Distribution: | | | | | -------------------------------------------------------------------------------- | Parent company shareholders | 5,870 | 10,728 | 33,900 | 56,053 | -------------------------------------------------------------------------------- | Minority interest | 137 | 137 | 493 | 425 | -------------------------------------------------------------------------------- | | 6,007 | 10,865 | 34,393 | 56,477 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit attributable to parent company shareholders | | -------------------------------------------------------------------------------- | calculated as earnings per share (EUR/share) | | | -------------------------------------------------------------------------------- | Undiluted earnings per share | 0.14 | 0.26 | 0.83 | 1.38 | -------------------------------------------------------------------------------- | Diluted earnings per share | 0.14 | 0.26 | 0.83 | 1.38 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit attributable to parent company shareholders, | | -------------------------------------------------------------------------------- | continuing operations, | | | -------------------------------------------------------------------------------- | calculated as earnings per share (EUR/share) | | | -------------------------------------------------------------------------------- | Undiluted earnings per share | 0.14 | 0.27 | 0.83 | 0.92 | -------------------------------------------------------------------------------- | Diluted earnings per share | 0.14 | 0.27 | 0.83 | 0.92 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit attributable to parent company shareholders, | | -------------------------------------------------------------------------------- | discontinuing operations, | | | | | -------------------------------------------------------------------------------- | calculated as earnings per share (EUR/share) | | | -------------------------------------------------------------------------------- | Undiluted earnings per share | N/A | -0.01 | N/A | 0.46 | -------------------------------------------------------------------------------- | Diluted earnings per share | N/A | -0.01 | N/A | 0.46 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED BALANCE SHEET, IFRS | | | -------------------------------------------------------------------------------- | 1000 EUR | 31/12/07 | 31/12/06 | -------------------------------------------------------------------------------- | ASSETS | | | -------------------------------------------------------------------------------- | Non-current assets | | | -------------------------------------------------------------------------------- | Property, plant and equipment | 1,139,576 | 817,977 | -------------------------------------------------------------------------------- | Goodwill | 108,660 | 108,660 | -------------------------------------------------------------------------------- | Other intangible assets | 9,899 | 10,136 | -------------------------------------------------------------------------------- | Investment properties | 1,584 | 1,588 | -------------------------------------------------------------------------------- | Share of associated companies | 1,526 | 2,349 | -------------------------------------------------------------------------------- | Other financial assets | 4,797 | 4,892 | -------------------------------------------------------------------------------- | Receivables | 9,173 | 5,839 | -------------------------------------------------------------------------------- | Deferred tax assets | 2,051 | 617 | -------------------------------------------------------------------------------- | | 1,277,265 | 952,057 | -------------------------------------------------------------------------------- | Current assets | | | -------------------------------------------------------------------------------- | Inventories | 6,908 | 5,412 | -------------------------------------------------------------------------------- | Accounts receivable and other receivables | 91,191 | 91,538 | -------------------------------------------------------------------------------- | Income tax receivables | 63 | 512 | -------------------------------------------------------------------------------- | Bank and cash | 26,913 | 18,436 | -------------------------------------------------------------------------------- | | 125,075 | 115,898 | -------------------------------------------------------------------------------- | Total assets | 1,402,340 | 1,067,956 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | SHAREHOLDER'S EQUITY | | | -------------------------------------------------------------------------------- | Equity attributable to parent company shareholders | | -------------------------------------------------------------------------------- | Share capital | 81,384 | 81,384 | -------------------------------------------------------------------------------- | Share premium account | 24,525 | 24,525 | -------------------------------------------------------------------------------- | Fair value reserves | -4,544 | | -------------------------------------------------------------------------------- | Translation differences | 152 | 28 | -------------------------------------------------------------------------------- | Retained earnings | 332,601 | 315,791 | -------------------------------------------------------------------------------- | | 434,118 | 421,728 | -------------------------------------------------------------------------------- | Minority interest | 1,534 | 2,028 | -------------------------------------------------------------------------------- | Total equity | 435,652 | 423,757 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | LIABILITIES | | | -------------------------------------------------------------------------------- | Long-term liabilities | | | -------------------------------------------------------------------------------- | Deferred tax liabilities | 103,910 | 98,352 | -------------------------------------------------------------------------------- | Interest-free liabilities | 1,314 | | -------------------------------------------------------------------------------- | Pension liabilities | 2,358 | 2,565 | -------------------------------------------------------------------------------- | Provisions | 2,284 | 3,659 | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 593,817 | 360,067 | -------------------------------------------------------------------------------- | | 703,682 | 464,643 | -------------------------------------------------------------------------------- | Current liabilities | | | -------------------------------------------------------------------------------- | Accounts payable and other liabilities | 99,459 | 79,155 | -------------------------------------------------------------------------------- | Income tax liabilities | 491 | 430 | -------------------------------------------------------------------------------- | Provisions | 672 | 230 | -------------------------------------------------------------------------------- | Current interest-bearing liabilities | 162,384 | 99,739 | -------------------------------------------------------------------------------- | | 263,006 | 179,555 | -------------------------------------------------------------------------------- | Total liabilities | 966,688 | 644,199 | -------------------------------------------------------------------------------- | Total equity and liabilities | 1,402,340 | 1,067,956 | -------------------------------------------------------------------------------- Changes in Consolidated Shareholders' Equity -------------------------------------------------------------------------------- | 1000 EUR | Share | Share | Share issue | Trans- | | | capital | issue | premium | lation | | | | | | diffe- | | | | | | rences | -------------------------------------------------------------------------------- | Shareholders´ | 81,314 | 6 | 24,301 | -1,046 | | equity 31.12.2005 | | | | | -------------------------------------------------------------------------------- | Translation | | | | 1,074 | | differences | | | | | -------------------------------------------------------------------------------- | Profit for | | | | | | reporting period | | | | | -------------------------------------------------------------------------------- | Total recognised | | | | 1,074 | | income for the | | | | | | period | | | | | -------------------------------------------------------------------------------- | Dividend | | | | | -------------------------------------------------------------------------------- | Share issue | 70 | -6 | 224 | | -------------------------------------------------------------------------------- | Teamlines | | | | | | sale | | | | | -------------------------------------------------------------------------------- | | 70 | -6 | 224 | | -------------------------------------------------------------------------------- | Shareholders´ | 81,384 | | 24,525 | 28 | | equity 31.12.2006 | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 1000 EUR | Retained | Total | Minority | Total | | | earnings | | interest | equity | -------------------------------------------------------------------------------- | Shareholders´ | 271,946 | 376,520 | 2,002 | 378,523 | | equity | | | | | | 31.12.2005 | | | | | -------------------------------------------------------------------------------- | Translation | | 1,074 | | 1,074 | | differences | | | | | -------------------------------------------------------------------------------- | Profit for | 56,053 | 56,053 | 427 | 56,480 | | reporting period | | | | | -------------------------------------------------------------------------------- | Total | 56,053 | 57,127 | 427 | 57,554 | | recognised | | | | | | income for | | | | | | the period | | | | | -------------------------------------------------------------------------------- | Dividend | -12,208 | -12,208 | -392 | -12,600 | -------------------------------------------------------------------------------- | Share issue | | 289 | | 289 | -------------------------------------------------------------------------------- | Teamlines sale | | | -9 | -9 | -------------------------------------------------------------------------------- | | -12,208 | -11,919 | -401 | -12,320 | -------------------------------------------------------------------------------- | Shareholders´ | 315,791 | 421,728 | 2,028 | 423,757 | | equity | | | | | | 31.12.2006 | | | | | -------------------------------------------------------------------------------- Changes in Consolidated Shareholders' Equity -------------------------------------------------------------------------------- | 1000 EUR | Share | Share | Trans- | Fair | | | capital | issue | lation | value | | | | premium | diffe- | reserves | | | | | rences | | -------------------------------------------------------------------------------- | Shareholders´ | 81,384 | 24,525 | 28 | | | equity 31.12.2006 | | | | | -------------------------------------------------------------------------------- | Cash flow hedges | | | | -6,141 | -------------------------------------------------------------------------------- | Deferred tax in | | | | 1,597 | | equity | | | | | -------------------------------------------------------------------------------- | Translation | | | 124 | | | differences | | | | | -------------------------------------------------------------------------------- | Profit for | | | | | | reporting period | | | | | -------------------------------------------------------------------------------- | Total recognised | | | 124 | -4,544 | | income for the | | | | | | period | | | | | -------------------------------------------------------------------------------- | Dividend | | | | | -------------------------------------------------------------------------------- | Reduction of share | | | | | | capital | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholders´ | 81,384 | 24,525 | 152 | -4,544 | | equity 31.12.2007 | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 1000 EUR | Retained | Total | Minority | Total | | | earnings | | interest | equity | -------------------------------------------------------------------------------- | Shareholders´ | 315,791 | 421,728 | 2,028 | 423,757 | | equity | | | | | | 31.12.2006 | | | | | -------------------------------------------------------------------------------- | Cash flow hedges | | -6,141 | | -6,141 | -------------------------------------------------------------------------------- | Deferred tax in | | 1,597 | | 1,597 | | equity | | | | | -------------------------------------------------------------------------------- | Translation | | 124 | 3 | 127 | | differences | | | | | -------------------------------------------------------------------------------- | Profit for | 33,900 | 33,900 | 493 | 34,393 | | reporting period | | | | | -------------------------------------------------------------------------------- | Total | 33,900 | 29,480 | 496 | 29,976 | | recognised | | | | | | income for | | | | | | the period | | | | | -------------------------------------------------------------------------------- | Dividend | -17,091 | -17,091 | -392 | -17,483 | -------------------------------------------------------------------------------- | Reduction of | | | -598 | -598 | | share capital | | | | | -------------------------------------------------------------------------------- | | -17,091 | -17,091 | -990 | -17,483 | -------------------------------------------------------------------------------- | Shareholders´ | 332,601 | 434,118 | 1,534 | 435,652 | | equity | | | | | | 31.12.2007 | | | | | -------------------------------------------------------------------------------- Consolidated Cash Flow Statement -------------------------------------------------------------------------------- | 1000 EUR | 1-12/07 | 1-12/06 | -------------------------------------------------------------------------------- | Cash flows from operations: | | | -------------------------------------------------------------------------------- | Profit for the reporting period | 34,393 | 56,477 | -------------------------------------------------------------------------------- | Adjustments: | | | -------------------------------------------------------------------------------- | Non-cash transactions | 39,561 | 13,913 | -------------------------------------------------------------------------------- | Financial income and expenses | 28,937 | 10,743 | -------------------------------------------------------------------------------- | Taxes | 5,725 | 9,989 | -------------------------------------------------------------------------------- | Changes in working capital: | | | -------------------------------------------------------------------------------- | Change in accounts receivable | 66 | 4,525 | | and other receivables | | | -------------------------------------------------------------------------------- | Change in current assets | -1,496 | 1,228 | -------------------------------------------------------------------------------- | Change in accounts payable | 11,766 | -11,646 | | and other liabilities | | | -------------------------------------------------------------------------------- | Change in provisions | 197 | -2,096 | -------------------------------------------------------------------------------- | Interest paid | -20,988 | -11,473 | -------------------------------------------------------------------------------- | Interest received | 1,397 | 2,008 | -------------------------------------------------------------------------------- | Other financing items | -3,948 | -588 | -------------------------------------------------------------------------------- | Taxes paid | -1,087 | 7,174 | -------------------------------------------------------------------------------- | Net cash from operating activities | 94,524 | 80,255 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flows from investing activities: | | -------------------------------------------------------------------------------- | Acquisition of subsidiaries | N/A | -1,727 | -------------------------------------------------------------------------------- | Sale of subsidiaries | N/A | 35,708 | -------------------------------------------------------------------------------- | Investments in tangible and intangible | -392,780 | -231,744 | | assets | | | -------------------------------------------------------------------------------- | Sale of tangible and intangible assets | 30,819 | 1,625 | -------------------------------------------------------------------------------- | Disposal of associated companies | 200 | | -------------------------------------------------------------------------------- | Proceed sale of investment | 243 | | -------------------------------------------------------------------------------- | Reduction in share capital, minority | -598 | | | interest | | | -------------------------------------------------------------------------------- | Dividends received | 16 | 34 | -------------------------------------------------------------------------------- | Net cash used in investing activities | -362,099 | -196,104 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow from financing activities: | | -------------------------------------------------------------------------------- | Proceeds from issue of shares | | 289 | -------------------------------------------------------------------------------- | Borrowing | 309,307 | 202,881 | -------------------------------------------------------------------------------- | Net increase in current interest-bearing | 79,907 | -27,816 | | liabilities | | | -------------------------------------------------------------------------------- | Repayment of loans | -96,440 | -59,394 | -------------------------------------------------------------------------------- | Increase / decrease of long-term receivables | 770 | 2,190 | -------------------------------------------------------------------------------- | Dividends paid | -17,483 | -12,600 | -------------------------------------------------------------------------------- | Net cash used in financing activities | 276,062 | 105,550 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Change in cash and cash equivalents | 8,487 | -10,299 | -------------------------------------------------------------------------------- | Cash and cash equivalents | 18,436 | 28,735 | | on 1 January | | | -------------------------------------------------------------------------------- | Effect of foreign exchange rate changes | -10 | 0 | -------------------------------------------------------------------------------- | Cash and cash equivalents on December 31 | 26,913 | 18,436 | -------------------------------------------------------------------------------- PROFIT AND LOSS ACCOUNT, PARENT COMPANY, FAS -------------------------------------------------------------------------------- | EUR 1 000 | 1 Jan- | 1 Jan- | | | 31 Dec 2007 | 31 Dec 2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Revenue | 296,112 | 253,070 | -------------------------------------------------------------------------------- | Other income from operations | 4,179 | 4,738 | -------------------------------------------------------------------------------- | Materials and services | 67,074 | 60,061 | -------------------------------------------------------------------------------- | Personnel expenses | 23,308 | 22,668 | -------------------------------------------------------------------------------- | Depreciation, | 14,864 | 12,354 | | amortisation and other | | | | write-offs | | | -------------------------------------------------------------------------------- | Other operating | 188,337 | 147,647 | | expenses | | | -------------------------------------------------------------------------------- | Operating profit | 6,708 | 15,078 | -------------------------------------------------------------------------------- | Financial income and expense | -9,938 | 38,190 | -------------------------------------------------------------------------------- | Profit/loss before extraordinary | -3,230 | 53,268 | | items | | | -------------------------------------------------------------------------------- | Extraordinary items | -34,002 | -7,445 | -------------------------------------------------------------------------------- | Profit/loss before appropriations and | -37,232 | 45,823 | | taxes | | | -------------------------------------------------------------------------------- | Appropriations | 37,624 | 9,419 | -------------------------------------------------------------------------------- | Income taxes | -31 | | -------------------------------------------------------------------------------- | Profit for the reporting period | 360 | 55,242 | -------------------------------------------------------------------------------- BALANCE SHEET, PARENT COMPANY, FAS -------------------------------------------------------------------------------- | EUR 1 000 | 31 Dec 2007 | 31 Dec 2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ASSETS | | | -------------------------------------------------------------------------------- | Non-current assets | | | -------------------------------------------------------------------------------- | Intangible assets | 11,065 | 11,577 | -------------------------------------------------------------------------------- | Tanging assets | 223,292 | 247,103 | -------------------------------------------------------------------------------- | Investments | | | -------------------------------------------------------------------------------- | Shares in group | 315,236 | 317,582 | | companies | | | -------------------------------------------------------------------------------- | Other investments | 5,646 | 5,742 | -------------------------------------------------------------------------------- | | 555,240 | 582,004 | -------------------------------------------------------------------------------- | Current assets | | | -------------------------------------------------------------------------------- | Inventories | 1,950 | 1,111 | -------------------------------------------------------------------------------- | Long-term receivables | 592,747 | 248,635 | -------------------------------------------------------------------------------- | Short-term receivables | 188,589 | 158,592 | -------------------------------------------------------------------------------- | Marketable securities | 13,363 | 3,191 | -------------------------------------------------------------------------------- | Bank and cash | 6,014 | 7,131 | -------------------------------------------------------------------------------- | | 802,662 | 418,661 | -------------------------------------------------------------------------------- | Total assets | 1,357,902 | 1,000,665 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES | | | -------------------------------------------------------------------------------- | Shareholder's equity | | | -------------------------------------------------------------------------------- | Share capital | 81,384 | 81,384 | -------------------------------------------------------------------------------- | Share premium account | 24,525 | 24,525 | -------------------------------------------------------------------------------- | Retained earnings | 92,567 | 54,416 | -------------------------------------------------------------------------------- | Profit for the period | 360 | 55,242 | -------------------------------------------------------------------------------- | Total shareholders' equity | 198,837 | 215,567 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Accumulated appropriations | 148,714 | 186,337 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liabilities | | | -------------------------------------------------------------------------------- | Long-term liabilities | | | -------------------------------------------------------------------------------- | Interest-bearing | 649,713 | 373,349 | -------------------------------------------------------------------------------- | Interest-free | 1,168 | | -------------------------------------------------------------------------------- | | 650,881 | 373,349 | -------------------------------------------------------------------------------- | Current liabilities | | | -------------------------------------------------------------------------------- | Interest-bearing | 292,139 | 196,459 | -------------------------------------------------------------------------------- | Interest-free | 67,331 | 28,952 | -------------------------------------------------------------------------------- | | 359,470 | 225,411 | -------------------------------------------------------------------------------- | Total liabilities | 1,010,351 | 598,760 | -------------------------------------------------------------------------------- | Total shareholders' equity and | 1,357,902 | 1,000,665 | | liabilities | | | -------------------------------------------------------------------------------- REVENUE AND OPERATING RESULT BY BUSINESS SEGMENTS (PRIMARY SEGMENT) -------------------------------------------------------------------------------- | | 1-12/07 | | 1-12/06 | | -------------------------------------------------------------------------------- | Sales | EUR | % | EUR | % | | | (1000) | | (1000) | | -------------------------------------------------------------------------------- | Shipping and sea | 585,067 | 85.3 | 538,996 | 85.2 | | transport | | | | | -------------------------------------------------------------------------------- | Port operations | 133,155 | 19.4 | 123,092 | 19.5 | -------------------------------------------------------------------------------- | Eliminations (intragroup) | -32,758 | -4.8 | -29,422 | -4.7 | -------------------------------------------------------------------------------- | External sales | 685,464 | 100.0 | 632,666 | 100.0 | -------------------------------------------------------------------------------- | Operating profit | | | | | -------------------------------------------------------------------------------- | Shipping and sea | 61,653 | | 50,771 | | | transport | | | | | -------------------------------------------------------------------------------- | Port operations | 7,163 | | 7,452 | | -------------------------------------------------------------------------------- | Operating profit total | 68,816 | | 58,223 | | -------------------------------------------------------------------------------- | Share of associated | | | 274 | | | companies | | | | | -------------------------------------------------------------------------------- | Financial items | -28,698 | | -10,773 | | -------------------------------------------------------------------------------- | Profit | 40,118 | | 47,725 | | | before taxes | | | | | -------------------------------------------------------------------------------- | Income taxes | -5,725 | | -9,989 | | -------------------------------------------------------------------------------- | Profit for reporting | 34,393 | | 37,736 | | | period continuing | | | | | | operations | | | | | -------------------------------------------------------------------------------- PROPERTY, PLANT AND EQUIPMENT (INCL. INVESTMENT PROPERTIES) -------------------------------------------------------------------------------- | | 31/12/07 | 31/12/06 | -------------------------------------------------------------------------------- | | EUR | EUR | | | (1000) | (1000) | -------------------------------------------------------------------------------- | Historical cost at the beginning of the | 1,084,491 | 849,029 | | period | | | -------------------------------------------------------------------------------- | Translation differences | -8 | 5,442 | -------------------------------------------------------------------------------- | Additions | 389,559 | 230,470 | -------------------------------------------------------------------------------- | Acquisition of subsidiaries | | 3,220 | -------------------------------------------------------------------------------- | Disposals | -63,598 | -2,615 | -------------------------------------------------------------------------------- | Business disposals | | -825 | -------------------------------------------------------------------------------- | Reclassifications | 19 | -229 | -------------------------------------------------------------------------------- | Historical cost at the end of the | 1,410,479 | 1,084,491 | | period | | | -------------------------------------------------------------------------------- | Accumulated depreciation at the | -264,926 | -227,710 | | beginning of the period | | | -------------------------------------------------------------------------------- | Translation differences | 11 | -1,143 | -------------------------------------------------------------------------------- | Disposals of subsidiaries | | 373 | -------------------------------------------------------------------------------- | Cumulative depreciation on | 46,694 | 2,271 | | reclassifications and disposals | | | -------------------------------------------------------------------------------- | Cumulative depreciation on business | | -577 | | acquisition | | | -------------------------------------------------------------------------------- | Depreciation | -51,098 | -38,140 | -------------------------------------------------------------------------------- | Accumulated depreciation at the end of | -269,319 | -264,926 | | the period | | | -------------------------------------------------------------------------------- | Book value | 1,141,160 | 819,565 | -------------------------------------------------------------------------------- FINANCIAL INDICATORS -------------------------------------------------------------------------------- | | 1-12/07 | 1-12/06 | -------------------------------------------------------------------------------- | Operating profit as % of revenue | 10.0 | 9.2 | | (continuing operations) | | | -------------------------------------------------------------------------------- | ROE, % | 8.0 | 14.1 | -------------------------------------------------------------------------------- | ROI, % | 6.9 | 9.9 | -------------------------------------------------------------------------------- | Gearing, % | 167.4 | 104.2 | -------------------------------------------------------------------------------- | Gross capital | 391.3 | 238.8 | | expenditure, MEUR *) | | | -------------------------------------------------------------------------------- | % of revenue | 57.1 | 37.7 | -------------------------------------------------------------------------------- | Equity ratio, % | 31.1 | 39.7 | -------------------------------------------------------------------------------- | Shareholders' equity/ | 10.67 | 10.36 | | share, EUR | | | -------------------------------------------------------------------------------- | Number of shares during period, | 40,692 | 40,685 | | average (1000) | | | -------------------------------------------------------------------------------- | Number of shares at | 40,692 | 40,692 | | end of period (1000) | | | -------------------------------------------------------------------------------- | Market capitalisation, | 620.6 | 699.9 | | EUR million | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Average personnel (continuing | | | | operations) | | | -------------------------------------------------------------------------------- | Shore-based personnel | 1,470 | 1,451 | -------------------------------------------------------------------------------- | Sea-borne personnel | 865 | 745 | -------------------------------------------------------------------------------- | Personnel total | 2,335 | 2,196 | -------------------------------------------------------------------------------- *) Includes continuing and discontinuing operations Financial ratios have been calculated according to the same principles as in financial statements 2006. -------------------------------------------------------------------------------- | CONTINGENCIES AND COMMITMENTS | 31/12/07 | 31/12/06 | -------------------------------------------------------------------------------- | 1000 EUR | | | -------------------------------------------------------------------------------- | Vessel hires (continuing operations): | | | -------------------------------------------------------------------------------- | Within 12 months | 89,899 | 88,258 | -------------------------------------------------------------------------------- | Between one and five years | 51,614 | 102,301 | -------------------------------------------------------------------------------- | After five years | 0 | 0 | -------------------------------------------------------------------------------- | | 141,513 | 190,559 | -------------------------------------------------------------------------------- | Other leases (continuing operations): | | | -------------------------------------------------------------------------------- | Within 12 months | 5,673 | 5,515 | -------------------------------------------------------------------------------- | Between one and five years | 21,537 | 11,899 | -------------------------------------------------------------------------------- | After five years | 42,689 | 9,937 | -------------------------------------------------------------------------------- | | 69,899 | 27,351 | -------------------------------------------------------------------------------- Collateral given: Borrowings secured by given mortgages -------------------------------------------------------------------------------- | Loans from financial institutions | 531,461 | 300,367 | -------------------------------------------------------------------------------- | Vessel mortgages provided as | 723,500 | 461,000 | | guarantees for the above loans | | | -------------------------------------------------------------------------------- Other guarantees given on behalf of the Group: -------------------------------------------------------------------------------- | Collateral | 2,517 | 2,485 | -------------------------------------------------------------------------------- | Mortgages | 606 | | -------------------------------------------------------------------------------- Other guarantees given on behalf of the others: -------------------------------------------------------------------------------- | Collateral | 1,200 | 1,027 | -------------------------------------------------------------------------------- | Mortgages | | 431 | -------------------------------------------------------------------------------- Other commitments given by group on behalf of subsidiaries: -------------------------------------------------------------------------------- | Commitments | 6,000 | 6,000 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Obligations for capital expenditure | 197,137 | 239,768 | -------------------------------------------------------------------------------- | Other obligations | 101 | 115 | -------------------------------------------------------------------------------- Open derivative instruments: -------------------------------------------------------------------------------- | 1000 EUR | 31/12/07 | 31/12/06 | 31/12/07 | 31/12/06 | -------------------------------------------------------------------------------- | | Net fair values | Contract amounts | -------------------------------------------------------------------------------- | Currency forwards | -3,845 | 0 | 64,126 | 0 | -------------------------------------------------------------------------------- | Interest rate swaps | -327 | 0 | 120,000 | 0 | -------------------------------------------------------------------------------- Contingent liabilities Finnsteve's Leasehold Agreement: When the new Vuosaari harbour is operational Finnsteve Oy will transfer its port operations from Helsinki's West Harbour and North Harbour to Vuosaari. Finnsteve and the Port of Helsinki have made a leasehold agreement, which obliges the leaseholder to dismantle and remove any buildings, plants and equipment (including foundations) located in the area. The extent of the liabilities arising from this depends on future town planning and is therefore difficult to estimate. REVENUE AND OPERATING RESULT BY QUARTER -------------------------------------------------------------------------------- | | Q1/07 | Q1/06 | Q2/07 | Q2/06 | -------------------------------------------------------------------------------- | | MEUR | MEUR | MEUR | MEUR | -------------------------------------------------------------------------------- | Continuing Operations | | | | | -------------------------------------------------------------------------------- | Shipping and sea | 132.5 | 129.1 | 146.4 | 142.2 | | transport | | | | | -------------------------------------------------------------------------------- | Port operations | 33.3 | 30.4 | 33.5 | 31.5 | -------------------------------------------------------------------------------- | Eliminations (intragroup) | -8.4 | -6.6 | -8.5 | -7.9 | -------------------------------------------------------------------------------- | External sales | 157.4 | 152.9 | 171.4 | 165.8 | -------------------------------------------------------------------------------- | Operating profit | | | | | -------------------------------------------------------------------------------- | Shipping and sea | 11.0 | 7.9 | 14.9 | 16.1 | | transport | | | | | -------------------------------------------------------------------------------- | Port operations | 2.5 | 1.9 | 2.0 | 1.8 | -------------------------------------------------------------------------------- | Operating profit total | 13.5 | 9.7 | 16.9 | 17.9 | -------------------------------------------------------------------------------- | Share of | 0 | 0 | 0 | 0 | | associated companies | | | | | -------------------------------------------------------------------------------- | Financial items | -5.2 | -3.3 | -6.7 | -3.9 | -------------------------------------------------------------------------------- | Profit | 8.3 | 6.4 | 10.2 | 14.0 | | before taxes | | | | | -------------------------------------------------------------------------------- | Income taxes | -1.7 | -1.4 | -2.2 | -3.3 | -------------------------------------------------------------------------------- | Profit for the reporting | 6.6 | 5.0 | 8.1 | 10.6 | | period,Continuing | | | | | | Operations | | | | | -------------------------------------------------------------------------------- | Discontinuing Operations | 0 | -0.3 | 0 | 1.0 | -------------------------------------------------------------------------------- | Profit for the reporting | 6.6 | 4.7 | 8.1 | 11.6 | | period | | | | | -------------------------------------------------------------------------------- | EPS* (undiluted) | 0.16 | 0.12 | 0.20 | 0.28 | -------------------------------------------------------------------------------- | EPS* (diluted) | 0.16 | 0.12 | 0.20 | 0.28 | -------------------------------------------------------------------------------- * Continuing operations -------------------------------------------------------------------------------- | | Q3/07 | Q3/06 | Q4/07 | Q4/06 | -------------------------------------------------------------------------------- | | MEUR | MEUR | MEUR | MEUR | -------------------------------------------------------------------------------- | Continuing Operations | | | | | -------------------------------------------------------------------------------- | Shipping and sea | 150.6 | 132.1 | 155.6 | 135.6 | | transport | | | | | -------------------------------------------------------------------------------- | Port operations | 33.5 | 29.6 | 32.8 | 31.6 | -------------------------------------------------------------------------------- | Eliminations (intragroup) | -7.6 | -6.8 | -8.3 | -8.0 | -------------------------------------------------------------------------------- | External sales | 176.5 | 154.9 | 180.1 | 159.1 | -------------------------------------------------------------------------------- | Operating profit | | | | | -------------------------------------------------------------------------------- | Shipping and sea | 24.5 | 13.2 | 11.2 | 13.6 | | transport | | | | | -------------------------------------------------------------------------------- | Port operations | 2.2 | 1.8 | 0.4 | 2.0 | -------------------------------------------------------------------------------- | Operating profit total | 26.7 | 14.9 | 11.6 | 15.6 | -------------------------------------------------------------------------------- | Share of | 0 | 0 | 0 | 0.3 | | associated companies | | | | | -------------------------------------------------------------------------------- | Financial items | -9.4 | -0.7 | -7.4 | -2.8 | -------------------------------------------------------------------------------- | Profit | 17.3 | 14.2 | 4.2 | 13.1 | | before taxes | | | | | -------------------------------------------------------------------------------- | Income taxes | -3.6 | -3.2 | 1.8 | -2.0 | -------------------------------------------------------------------------------- | Profit for the reporting | 13.7 | 11.0 | 6.0 | 11.1 | | period, continuing | | | | | | operations | | | | | -------------------------------------------------------------------------------- | Discontinuing Operations | 0 | 18.3 | 0 | -0.2 | -------------------------------------------------------------------------------- | Profit for the reporting | 13.7 | 29.2 | 6.0 | 10.9 | | period | | | | | -------------------------------------------------------------------------------- | EPS* (undiluted) | 0.33 | 0.27 | 0.14 | 0.27 | -------------------------------------------------------------------------------- | EPS* (diluted) | 0.33 | 0.27 | 0.14 | 0.27 | -------------------------------------------------------------------------------- * Continuing operations Related Party Transactions There were no material related party transactions during the reporting period. Reporting The interim report includes a summary of the financial statements for the period in accordance with the IAS 34. The accounting principles are the same as in the financial statements of 2006. This interim report is unaudited.