Finnlines Plc Financial Statement Bulletin January-December 2014 (unaudited)


Helsinki, Finland, 2015-02-24 14:30 CET (GLOBE NEWSWIRE) -- FINNLINES PLC
FINANCIAL STATEMENT BULLETIN JANUARY-DECEMBER 2014 (unaudited)  Stock Exchange Release 24 February 2015 at 15:30

 

JANUARY-DECEMBER 2014: Result before taxes (EBT) improved over EUR 43 million

- Revenue EUR 532.9 (563.6 prev. year) million, decrease 5.4 per cent

- Result before interest, taxes, depreciation and amortisation (EBITDA) EUR 115.4 (83.7) million, increase 37.9 per cent

- Result for the reporting period EUR 41.7 (6.0) million

- Earnings per share were 0.81 (0.12) EUR/share

- Interest-bearing debt decreased EUR 118.9 million and was EUR 552.5 (671.3) million at the end of the period

- Fuel consumption reduced by 7 per cent

OCTOBER-DECEMBER 2014: Strong result performance continued during the last quarter

- Revenue EUR 119.1 (130.3 prev. year) million, decrease 8.6 per cent

- Result before interest, taxes, depreciation and amortisation (EBITDA) EUR 23.9 (20.2) million, increase 18.2 per cent

- Result for the reporting period EUR 8.5 (9.9) million

- Earnings per share were 0.17 (0.19) EUR/share

 

KEY FIGURES

MEUR 1-12 2014 1-12 2013 10-12 2014 10-12 2013
Revenue 532.9 563.6 119.1 130.3
Result before interest,
taxes, depreciation and
amortisation (EBITDA)
115.4 83.7  
23.9
20.2
Result before interest
and taxes (EBIT)
58.6 18.1 10.5 5.3
% of revenue 11.0 3.2 8.8 4.1
Result for the reporting
period
41.7 6.0 8.5 9.9
         
EPS, EUR 0.81 0.12 0.17 0.19
Shareholders’
equity/share, EUR
9.78 8.98 9.78 8.98
Equity ratio, % 41.7 35.7 41.7 35.7
Interest bearing debt,
MEUR
552.5 671.3 552.5 671.3
Gearing, % 113.0 149.1 113.0 149.1

 

 

EMANUELE GRIMALDI, PRESIDENT AND CEO, IN CONJUNCTION WITH THE REVIEW:

Finnlines Group’s result for the period, EUR 41.7 million, has added value to our shareholders through 113.3 per cent share price increase

"Finnlines Group made a remarkable turnaround which generated strong shareholder value during the financial year 2014. Result before taxes (EBT) increased by more than EUR 43 million compared to previous year. During 2014, the Company focused on improving its operations and profitability. We still continue to analyse every vessel, every line and every function in order to investigate whether there is opportunity for further improvement and react quickly if overcapacity exists or other measures are required. We have also focused on improving our capital structure. The turnaround programme striving towards cost efficiency has been well implemented and Finnlines Group’s improved quarterly results have enabled us to further reduce our interest bearing debt. The interest bearing debt was reduced by EUR 119 million, even though we, at the same time, have been implementing our EUR 65 million capex programme. The Group's equity ratio rose to 41.7 per cent and our liquidity position is strong, cash and unused committed credit facilities amounted to over EUR 123 million at the end of the financial year. At the beginning of 2015, we are installing scrubbers and new propeller and rudder systems into a great number of vessels which, in turn, might cause some occasional disruption to our service. We have further strengthened our fleet with three ro-ro vessels which will on longer-term provide our clients high-class service with the most environment-friendly vessels and enable competitive sea transport services to our customers also in the future."

 

FINNLINES PLC, FINANCIAL STATEMENT BULLETIN JANUARY-DECEMBER 2014 (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, 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 24 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 79.96 per cent (on 31 December 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-December, the Finnish seaborne imports carried in container, lorry and trailer units remained on the same level whereas exports increased by 3 per cent (measured in tons) compared to the same period from 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 10 per cent (Finnish Transport Agency).

FINNLINES’ TRAFFIC

During the fourth quarter, Finnlines operated on average 23 (24 in 2013) vessels in its own traffic.

In October, Finnlines extended its North Sea services by adding a weekly call at Paldiski in Estonia. The port of Paldiski offers very good rail connections to Central Asia and Siberia.

The cargo volumes transported during January-December totalled approximately 638 (632 in 2013) thousand cargo units, 99 (66) thousand cars (not including passengers’ cars) and 2,388 (2,248) thousand tons of freight not possible to measure in units. In addition, some 561 (556) thousand private and commercial passengers were transported.

FINANCIAL RESULTS

January-December 2014

The Finnlines Group recorded revenue totalling EUR 532.9 (563.6) million in 2014, a decrease of 5.4 per cent compared to the same period in the previous year. Shipping and Sea Transport Services generated revenue amounting to EUR 517.4 (538.6) million and Port Operations EUR 36.9 (50.1) million. In Shipping and Sea Transport Services the revenue decreased due to the lower bunker surcharge and lower charter income due to divestment of vessels. In Port Operations the revenue decreased due to the re-structuring measures taken. The internal revenue between the segments was EUR 21.3 (25.1) million.

Result before interest, taxes, depreciation and amortisation (EBITDA) was EUR 115.4 (83.7) million, an increase of 37.9 per cent.

Result before interest and taxes (EBIT) was EUR 58.6 (18.1) million. The increased efficiency of the operations i.e. lower bunker consumption, higher capacity utilisation of vessels and reduction of costs in many areas continued to impact the financial performance of the Group.

Net financial expenses decreased and were EUR -21.9 (-24.8) million. Financial income was EUR 0.5 (0.5) million and financial expenses EUR -22.4 (-25.3) million. Result before taxes (EBT) improved by EUR 43.4 million and was EUR 36.6 (-6.7) million. The above mentioned increased operational efficiency, decreased net financial expenses, and above all, cutting of the vessel overcapacity through the sale of three vessels at the end of 2013 and another two vessels during the last quarter 2014, which enabled better optimisation of the existing tonnage, altogether contributed to a EUR 37.1 million increase in the result for the reporting period. The result for the reporting period was EUR 41.7 (6.0) million and earnings per share (EPS) were EUR 0.81 (0.12).

October-December 2014

The Finnlines Group recorded revenue totalling EUR 119.1 (130.3) million in the fourth quarter, a decrease of 8.6 per cent compared to the same period in the previous year. Shipping and Sea Transport Services generated revenue amounting to EUR 115.4 (124.8) million and Port Operations EUR 8.2 (11.6) million. The internal revenue between the segments was EUR 4.6 (6.1) 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. During the fourth quarter, the Company disposed of two ro-pax vessels and therefore the other operating income includes gains on sales of EUR 3.2 (1.8) million.

Result before interest, taxes, depreciation and amortisation (EBITDA) was EUR 23.9 (20.2) million, an increase of 18.2 per cent.

Result before interest and taxes (EBIT) was EUR 10.5 (5.3) million.

Net financial expenses were EUR -5.1(-5.9) million. Financial income was EUR 0.1 (0.2) million and financial expenses totalled EUR
-5.2 (-6.1) million. The result for the reporting period was EUR 8.5 (9.9) million. Earnings per share (EPS) decreased to EUR 0.17 (0.19).

STATEMENT OF FINANCIAL POSITION, FINANCING AND CASH-FLOW

Interest-bearing debt decreased significantly by EUR 118.9 million and amounted to EUR 552.5 (671.3) million excluding leasing liabilities EUR 19.6 (21.1) million. The equity ratio calculated from the balance sheet improved to 41.7 (35.7) per cent and gearing dropped to 113.0 (149.1) per cent. Vessel lease commitments decreased by EUR 13.2 million to EUR 11.4 million compared to the end of December 2013.

The Group's liquidity position was strengthened and at the end of the period, cash and cash equivalents together with unused committed credit facilities grew by EUR 57.2 million amounting to EUR 123.1 (65.9) million.

Net cash generated from operating activities improved considerably and was EUR 82.1 (48.2) million before capex and divestments.

During the fourth quarter, Finnlines sold two vessels, MS Finnhansa to the Grimaldi Group and MS Finnarrow to an external party, at a total price of EUR 62.5 million.

CAPITAL EXPENDITURE

Finnlines Group’s gross capital expenditure in the reporting period totalled EUR 36.6 (10.1) million including tangible and intangible assets. Total depreciation decreased to EUR 56.8 (65.6) 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.

The new stricter environmental regulations for the fuel sulphur limit came into force as from 1 January 2015. For this reason, Finnlines ordered exhaust gas cleaning systems ("scrubbers") for six of its latest series of ro-ro vessels built in 2011-2012, for four of its Star-class ro-pax vessels built in 2006-2007 and for four of its ro-ro vessels built in 2000-2002. These investments are part of the 2014 EUR 65 million capex programme. The actual installations of scrubbers started in late 2014 and are scheduled to be finished in spring 2015. These cleaning systems enable the vessels to operate in compliance with the new environmental regulations. Finnlines has also ordered an improvement retrofit to the propulsion system on four Star-class ro-pax vessels and on two ro-ro vessels. This propulsion upgrading project started also at the turn of the year. The new system will substantially improve the vessels’ relative propulsion efficiency and, as a result, reduce their fuel consumption.

PERSONNEL

The Group employed an average of 1,701 (1,861) persons during the period, consisting of 759 (918) persons on shore and 942 (943) persons at sea. The number of persons employed at the end of the period were 1,635 (1,806) in total, of which 716 (898) on shore and 919 (908) at sea.

The average number of shore personnel decreased mostly due to employee reductions in Port Operations. Containersteve Oy Ab’s adaptation negotiations were initiated in the Port of Kotka in January 2014, which resulted in the termination of all 36 employments in Kotka.

The Group’s personnel expenses for the reporting period were EUR 88.4 (102.6) million social costs included.

THE FINNLINES SHARE

The Company’s registered share capital on 31 December 2014 was EUR 103,006,282 divided into 51,503,141 shares. A total of 5.1 (2.2) million shares were traded on the NASDAQ OMX Helsinki during the reporting period. The market capitalisation of the Company’s stock at 31 December 2014 more than doubled compared to previous year and was EUR 824.1 (386.3) million. Earnings per share (EPS) were EUR 0.81 (0.12). Shareholders’ equity per share was EUR 9.78 (8.98). At the end of the reporting period, the Grimaldi Group’s holding and share of votes in Finnlines was 79.96 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 when the aging vessels are 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 was reduced to 0.10 per cent in 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 targeted 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 2014 Financial statements, published on 24 February 2015, 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

Finnlines has signed a purchase agreement of two ro-ro vessels in January 2015. The vessels will be put into Finnlines liner traffic at the end of 2015. Furthermore in January 2015, Finnlines bought MS Finnmerchant (ex MS Dorset, ex MS Longstone), which is deployed on the route between Rostock and Hanko as from 19 January 2015. The acquired ro-ro vessels will complement Finnlines’ liner services offered to customers and strengthen the competitiveness of Finnlines fleet.

In October, Finnlines Plc announced that it has participated in the privatisation of the Polish shipping company, Polferries. In January 2015, Ministry of Treasury of Poland announced that Finnlines Plc was accepted among the three bidders to the final stage of the privatisation negotiations.

OUTLOOK AND OPERATING ENVIRONMENT

The ongoing capex programme affects smoothness of operations during the first three months of the financial year 2015, because fourteen scrubbers and six propulsion systems are being installed. However, Finnlines Group’s result before taxes is expected to be better in 2015 compared to the same period in the previous year due to several reasons: the company has been able to reduce the overcapacity, new Rostock-Hanko route with recently acquired MS Finnmerchant is in full operation, fuel consumption is further reduced due to energy-saving measures and technological improvements in our vessels, and, efficient fleet planning and streamlining of every function bring cost savings.

DIVIDEND DISTRIBUTION PROPOSAL

 

The parent company Finnlines Plc’s result for the reporting period was EUR 4.2 million. The Board of Directors proposes to the Annual General Meeting that no dividend is paid for the reporting period ended on 31 December 2014 due to the ongoing extensive capital expenditure requirement for installing the scrubbers into Finnlines vessels in 2015.

ANNUAL GENERAL MEETING 2015

Finnlines Plc’s Annual General Meeting will be held from 13:00 on Tuesday, 14 April 2015 at the Havis Business Center, Unioninkatu 22, 00130 Helsinki.

The first interim report of 2015 for the period of 1 January-31 March 2015, will be published on Wednesday, 13 May 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 Group has adopted from the beginning of 2014 the following new standards, interpretations and amendments: IFRS 10, IFRS 11, IFRS 12, IAS 27 (revised), IAS 28 (revised), IAS 32 (amendment), IAS 36 (amendment), IAS 39 (amendment) and IFRIC 21 Levies). They did not have any material impact on the Group's consolidated financial statement.

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 10-12 2014 10-12 2013 1-12 2014 1-12 2013
Revenue 119,077 130,284 532,889 563,587
Other income from operations 3,719 2,693 6,776 5,329
Materials and services -42,150 -51,670 -191,445 -229,690
Personnel expenses -21,268 -24,158 -88,418 -102,584
Depreciation, amortisation
and impairment losses
-13,459 -14,915 -56,843 -65,583
Other operating expenses -35,469 -36,921 -144,396 -152,983
Total operating expenses -112,345 -127,662 -481,102 -550,840
Result before interest and
taxes (EBIT)
10,451 5,314 58,563 18,075
Financial income 141 178 483 526
Financial expenses -5,231 -6,126 -22,412 -25,335
Result before taxes (EBT) 5,361 -633 36,634 -6,734
Income taxes 3,169 10,513 5,079 12,744
Result for the reporting period 8,530 9,880 41,713 6,011
         
Other comprehensive income:        
Other comprehensive income to
be reclassified to profit and
loss in subsequent periods:
       
Exchange differences on
translating foreign operations
35 1 69 -9
Tax effect, net 6 -1   2
Other comprehensive income to
be reclassified to profit and
loss in subsequent periods,
total
41 0 69 -7
Other comprehensive income not being reclassified to profit and loss in subsequent periods:        
Remeasurement of defined
benefit plans 
-844 -399 -844 -399
Tax effect, net * 141 1 353 1
Other comprehensive income not
being reclassified to profit
and loss in subsequent
periods, total
-702 -398 -491 -398
Total comprehensive income for
the reporting period
7,869 9,482 41,291 5,606
         
Result for the reporting
period attributable to:
       
Parent company shareholders 8,532 9,876 41,726 5,997
Non-controlling interests -2 4 -13 14
  8,530 9,880 41,713 6,011
Total comprehensive income for
the reporting period
attributable to:
       
Parent company shareholders 7,871 9,479 41,304 5,592
Non-controlling interests -2 3 -13 14
  7,869 9,482 41,291 5,606
Result for the reporting
period attributable to parent
company shareholders
calculated as earnings per
share (EUR/share):
       
Undiluted / diluted earnings
per share
0.17 0.19 0.81 0.12
Average number of shares:        
Undiluted / diluted 51,503,141 51,503,141 51,503,141 49,782,370

 

The majority of amounts included in Comprehensive income relates to tonnage tax scheme.

 

* 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 31 Dec 2014 31 Dec 2013
ASSETS    
Non-current assets    
Property, plant and equipment 983,183 1,084,389
Goodwill 105,644 105,644
Intangible assets 5,500 5,836
Other financial assets 4,576 4,580
Receivables 838 43
Deferred tax assets 5,353 1,370
  1,105,092 1,201,861
Current assets    
Inventories 5,926 8,832
Accounts receivable and other receivables 76,480 85,251
Income tax receivables 1 1
Cash and cash equivalents 2,680 2,508
  85,086 96,592
     
Non current assets held for sale 20,297  
Total assets 1,210,475 1,298,453
     
EQUITY    
Equity attributable to parent company shareholders    
Share capital 103,006 103,006
Share premium account 24,525 24,525
Translation differences 178 109
Fund for invested unrestricted equity 40,016 40,016
Retained earnings 335,876 294,641
  503,601 462,297
     
Non-controlling interests 306 360
Total equity 503,907 462,658
     
LIABILITIES    
Long-term liabilities    
Deferred tax liabilities 56,102 57,560
Interest-free liabilities 163 3,242
Pension liabilities 4,705 3,982
Provisions 1,844 1,980
Interest-bearing liabilities 420,722 557,759
  483,536 624,523
Current liabilities    
Accounts payable and other liabilities 71,565 72,815
Income tax liabilities 72 27
Provisions 81 3,715
Current interest-bearing liabilities 142,967 134,715
  214,685 211,273
Total liabilities 698,220 835,796
     
Liabilities directly attributable to non-
current assets held for sale
8,348  
     
Total equity and liabilities 1,210,475 1,298,453

 

CONSOLIDATED statement of changes in equity 2013, IFRS

EUR 1,000 Equity attributable to parent company shareholders    
  Share capi-
tal
Share issue pre-
mium
Trans-
lation diffe-
rences
Unres-
tric-
ted equity
re-
serve
Re-
tained ear-
nings
Total Non-control-
ling in-
ter-
ests
Total
equity
Repor-
ted equity 1 Janu-
ary
2013

93,642

24,525

116

21,015

289,990

429,289

838

430,127
Effect of IAS
19
Em-
ployee bene-
fit
stan-
dard
       

-1,338


-1,338
 

-1,338
Re-
stated equity
1
Janu-
ary
2013

93,642

24,525

116

21,015

288,652

427,951

838

428,788
Com-
prehensive
income
for
the
repor-
ting
period:
               
Result for
the
repor-
ting period
       
5,997

5,997

14

6,011
Ex-
change
dif-
fer-
ences
on trans-
lating
for-
eign
opera-
tions
   


-9
   


-9
 


-9
Remea-
sure-
ment
of de-
fined bene-
fit
plans
         
 
-399
 
 
-399
   
 
-399
Tax
ef-
fect,
net
    2   1 3   3
Total
com-
pre-
hen-
sive
income
for
the
repor-
ting
period
   


-7
 


5,599



5,592



14



5,606
Share
issue
9,364     19,001   28,365   28,365
Changes in
non-con-
troll-
ling
inter-
ests with-
out change
in con-
troll-
ling
inter-
est
         
 
 
 
 
390
 
 
 
 
 
390
 
 
 
 
 
-491
 
 
 
 
 
-102
Equity
31 De-
cember
2013

103,006

24,525

109

40,016

294,641

462,297

360

462,658

 

CONSOLIDATED statement of changes in equity 2014, IFRS

EUR 1,000 Equity attributable to parent company shareholders    
  Share
capital
Share
issue
pre-
mium
Trans-
lation
differences
Unre-
stricted
equity re-
serve
Re-
tained ear-
nings
Total Non-con-
trol-
ling in-
ter-
ests
Total
equity
Re-
ported equity
1 Janu-
ary
2014

103,006

24,525

109

40,016

294,641

462,297

360

462,658
Effect
of IAS
19 Em-
ployee
bene-
fits
stan-
dard
               
Resta-
ted equity
1 Janu-
ary 2014

103,006

24,525

109

40,016

294,641

462,297

360

462,658
Com-
pre-
hen-
sive income
for the repor-
ting
period:
               
Result
for the
repor-
ting
period
         
41,726
 
41,726
 
-13
 
41,713
Ex-
change
dif-
fer-
ences on trans-
lating for-
eign opera-
tions
     
 
 
69
     
 
 
69
   
 
 
69
Re-
mea-
sure-
ment of de-
fined bene-
fit plans
         
 
-844
 
 
-844
   
 
-844
Tax effect, net         353 353   353
Total com-
pre-
hen-
sive income
for the re-
por-
ting period
     
 
 
69
   
 
 
41,235
 
 
 
41,304
 
 
 
-13
 
 
 
41,291
Divi-
dend
            -42 -42
Equity 31 De-
cember 2014

103,006

24,525

178

40,016

335,876

503,601

306

503,907

 

CONSOLIDATED CASH FLOW STATEMENT, IFRS

EUR 1,000 1-12 2014 1-12 2013
Cash flows from operating activities    
Result for the reporting period 41,713 6,011
Adjustments:    
  Non-cash transactions 51,987 61,609
  Unrealised foreign exchange gains (-) / losses (+) -28 19
  Financial income and expenses 21,957 24,790
  Taxes -5,079 -12,744
Changes in working capital    
  Change in accounts receivable and other receivables 4,855 -6,402
  Change in inventories 2,906 927
  Change in accounts payable and other liabilities -9,435 -170
  Change in provisions -207 379
Interest paid -18,742 -22,366
Interest received 141 192
Taxes paid * -3,990 -423
Other financing items -3,970 -3,645
Net cash generated from operating activities 82,108 48,175
     
Cash flow from investing activities    
Investments in tangible and intangible assets -29,575 -10,960
Proceeds from sale of tangible assets 69,590 120,647
Proceeds from sale of investments 1  
Dividends received 13 12
Net cash used in investing activities 40,029 109,699
     
Cash flows from financing activities    
Proceeds from issue of share capital 0 28,365
Loan withdrawals 169,604 263,772
Net increase in current interest-bearing liabilities 7,953 -14,198
Repayment of loans -298,974 -449,914
Acquisition of non-controlling interest 0 -102
Loans granted -900  
Decrease in long-term receivables 395 429
Dividends paid -42  
Net cash used in financing activities -121,964 -171,647
     
Change in cash and cash equivalents 173 -13,772
Cash and cash equivalents 1 January 2,508 16,282
Effect of foreign exchange rate changes -1 -2
Cash and cash equivalents at the end of period 2,680 2,508

 

* Taxes paid includes Finnlines Deutschland GmbH’s payment of tax provision EUR 3.6 million.

 

REVENUE AND RESULT BY BUSINESS SEGMENTS

  10-12 2014 10-12 2013 1-12 2014 1-12 2013
  MEUR % MEUR % MEUR % MEUR %
Revenue                
Shipping and sea
transport services
115.4 96.9 124.8 95.8 517.4 97.1 538.6 95.6
Port operations 8.2 6.9 11.6 8.9 36.9 6.9 50.1 8.9
Intra-group revenue -4.6 -3.8 -6.1 -4.7 -21.3 -4.0 -25.1 -4.5
External sales 119.1 100.0 130.3 100.0 532.9 100.0 563.6 100.0
                 
Result before interest
and taxes
               
Shipping and sea
transport services
11.9   8.2   61.6   27.9  
Port operations -1.4   -2.8   -3.1   -9.8  
Result before interest
and taxes (EBIT) total
10.5   5.3   58.6   18.1  
Financial items -5.1   -5.9   -21.9   -24.8  
Result before taxes
(EBT)
5.4   -0.6   36.6   -6.7  
Income taxes 3.2   10.5   5.1   12.7  
Result for the reporting
period
8.5   9.9   41.7   6.0  

 

PROPERTY, PLANT AND EQUIPMENT 2014

EUR 1,000 Land Buil-
dings
Vessels Ma-
chin-
ery and equip-
ment
** Ad-
vance pay-
ments & acqui-
si-
tions under con-
struc-
tion
Total
Acquisition cost 1
January 2014
72 75,271 1,372,769 73,122 398 1,521,632
Exchange rate
differences
      34   34
Increases     9,728 243 25,897 35,867
Disposals   -2,497 -94,515 -7,125 -367 -104,505
Reclassifications
to non-current
assets held for
sale *
  -4,369 -21,675 -22,395   -48,439
Acquisition cost
31 December 2014
72 68,404 1,266,306 43,879 25,928 1,404,590
             
Accumulated
depreciation,
amortisation and
write-offs 1
January 2014
  -16,316 -373,866 -47,060   -437,243
Exchange rate
differences
      -31   -31
Cumulative
depreciation on
reclassifications
and disposals
  1,346 35,547 6,650   43,543
Depreciation for
the reporting
period
  -2,370 -51,430 -2,017   -55,818
Accumulated
depreciation,
amortisation and
write-offs 31
December 2014
  -17,341 -389,749 -42,459   -449,549
Reclassification
to non-current
assets held for
sale *
  1,132 16,499 10,510   28,142
Book value 31
December 2014
72 52,196 893,057 11,930 25,928 983,183

 

* Finnlines Group is negotiating to sell one vessel with the book value of EUR 5.2 million. The Port Operations are negotiating to sell port assets (buildings and machinery) with the book value of around EUR 15.1 million. No impairment losses have been recognised on the carrying amount of the assets.

** Includes mainly advance payments for the scrubber system.

 

PROPERTY, PLANT AND EQUIPMENT 2013

EUR 1,000 Land Buil-
dings
Vessels Ma-
chinery and equip-
ment
Advance
pay-
ments &
acqui-
sitions
under
con-
struc-
tion
Total
Acquisition cost 1
January 2013
72 76,466 1,597,437 79,690 991 1,754,655
Exchange rate
differences
      -11   -11
Increases   102 8,861 542 31 9,536
Reclassifications
to non-current
assets held for
sale
           
Disposals   -1,298 -233,934 -7,104 -214 -242,549
Reclassifications     406 5 -410  
Acquisition cost
31 December 2013
72 75,271 1,372,769 73,122 398 1,521,632
             
Accumulated
depreciation,
amortisation and
write-offs 1
January 2013
  -15,047 -429,028 -50,285   -494,360
Exchange rate
differences
      10   10
Cumulative depreciation on
reclassifications
and disposals
  1,295 112,727 7,325   121,348
Depreciation for
the reporting
period
  -2,564 -57,566 -4,111   -64,240
Accumulated depreciation,
amortisation and
write-offs 31
December 2013
  -16,316 -373,866 -47,060   -437,243
Reclassifications
to non-current
assets held for
sale
           
Book value 31
December 2013
72 58,955 998,903 26,061 398 1,084,389

 

CONTINGENCIES AND COMMITMENTS

EUR 1,000 31 Dec 2014 31 Dec 2013
Minimum leases payable in relation to fixed-term leases:    
     
Vessel leases (Group as lessee):    
Within 12 months 11,409 14,007
1-5 years   10,644
  11,409 24,651
Vessel leases (Group as lessor):    
Within 12 months 0 2,356
1-5 years 0 7,457
  0 9,812
Other leases (Group as lessee):    
Within 12 months 6,366 6,107
1-5 years 17,128 17,948
After five years 9,274 12,358
  32,768 36,413
Other leases (Group as lessor):    
Within 12 months 250 350
  250 350
     
Collateral given    
Loans from financial institutions 477,054 561,245
     
Vessel mortgages provided as guarantees for
the above loans
1,035,000 1,121,000
     
Other collateral given on own behalf    
Corporate mortgages 0 606
  0 606
     
Other obligations * 35,453 2,375
     
Guarantees given by the parent company on
behalf of the subsidiaries
0 6,000
     
VAT adjustment liability related to real
estate investments
5,322 6,756

 

* 2014 includes scrubber system and re-blading obligations EUR 33.8 million.

 

REVENUE AND RESULT BY QUARTER

MEUR Q1/
14
Q1/
13
Q2/
14
Q2/
13
Q3/
14
Q3/
13
Q4/
14
Q4/
13
Shipping and sea
transport services
122.8 126.0 139.1 143.6 140.0 144.2 115.4 124.8
Port operations 10.0 14.3 10.2 12.8 8.5 11.4 8.2 11.6
Intra-group revenue -6.0 -6.4 -5.9 -6.7 -4.8 -5.9 -4.6 -6.1
External sales 126.8 133.9 143.3 149.7 143.7 149,7 119.1 130.3
                 
Result before interest
and taxes
               
Shipping and sea
transport services
7.3 -3.6 20.4 9.8 22.1 13,5 11.9 8.2
Port operations -1.8 -2.2 -0.6 -3.0 0.7 -1,8 -1.4 -2.8
Result before interest
and taxes (EBIT) total
5.4 -5.8 19.8 6.9 22.8 11,7 10.5 5.3
Financial items -5.8 -6.2 -5.7 -6.5 -5.3 -6,2 -5.1 -5.9
Result before taxes
(EBT)
-0.4 -12.1 14.1 0.4 17.5 5,6 5.4 -0.6
Income taxes 0.7 1.2 0.6 0.5 0.6 0,6 3.2 10.5
Result for the
reporting period
0.3 -10.9 14.7 0.9 18.1 6,1 8.5 9.9
                 
EPS (undiluted /
diluted) *
0.01 -0.23 0.29 0.02 0.35 0,12 0.17 0.19

 

* Key indicators per share have been adjusted with the share issue adjustment factor.

 

SHARES, MARKET CAPITALISATION AND TRADING INFORMATION

  31 Dec 2014      31 Dec 2013
Number of shares 51,503,141 51,503,141
Market capitalisation,
EUR million
824.1 386.3

 

 

  1-12 2014 1-12 2013
Number of shares traded,
million
5.1 2.2

 

 

  1-12 2014
  High Low Average Close
Share price 17.00 7.14 10.45 16.00

 

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

In October 2014, Finnlines Plc sold the ro-pax vessel MS Finnhansa to the Grimaldi Group at the market price of EUR 30 million. The sale brought Finnlines a sales profit of approximately EUR 1.1 million.

Furthermore in October 2014, the chartering out of MS Euroferry Brindisi (ex MS Finnarrow) to the Grimaldi Group ended as Finnlines Plc's subsidiary signed the sales agreement with an external party at a market price of EUR 32.5 million.

Otherwise there were no material related party transactions during the reporting period.


Attachments

Finnlines Q42014 Eng.pdf