Finnlines Plc Stock Exchange Release 31 July, 2008
INTERIM REPORT 1 JANUARY - 30 June 2008 (unaudited)
The Finnlines Group recorded revenue totalling EUR 384.0 (328.9)million.
Operating profit was EUR 31.5 (30.5) million. Profit before taxes was EUR 16.2
(18.6) million. Return on equity (ROE) was 6.1 (7.0) % and return on investment
(ROI) was 5.5 (6.4) %.
Market development
The Finnish sea imports of unitized goods grew 8 % during January-May while
export volumes stayed approximately at the same level in comparison with the
corresponding period of previous year (measured in tons). This development
widens the import-export gap of unitized goods. The trailer and lorry volumes
transported by sea between the Southern Sweden and Germany continued to develop
favourably and grew almost 6% compared to previous year. The passenger traffic
between Finland and Germany decreased by almost 5 % and increased over 1 %
between Finland and Sweden.
Bunker prices have increased substantially during 2008. The price for the
Rotterdam LS180 used as a reference has increased 44 % between January-June 2008
(quoted in USD).
Group structure
Finnlines is one of the largest European shipping companies specialised in liner
cargo services. The Group's operations are centred on sea transports in the
Baltic Sea and North Sea areas and on providing port services in Finland and
Norway. Through its subsidiaries and associated companies, the Group has
operations in eight northern European countries and in Russia. The Group's
services are also offered throughout Europe via an extensive network of agents.
There were no significant changes in the Group structure during the reporting
period.
Significant events during the reporting period
Fleet
According to Finnlines' strategy, the target is to own a bigger part of the
fleet in order to reduce the dependence on time-chartered vessels.
In April, Finnlines bought MS Finnmill and MS Finnpulp and two other vessels, MS
Finnkraft and MS Finnhawk, which all were under time charter to Finnlines
traffic, at the total amount of EUR 121 million. This deal settled the
litigation process relating to the purchase options of Finnpulp and Finnmill.
In Finnlines ownership Finnkraft and Finnhawk are plying under the Finnish flag
and Finnmill and Finnpulp under the Swedish flag.
By this transaction together with the investment programme launched in 2007
Finnlines will own about half of the roro fleet in its services besides all 15
ropax vessels
Traffic
The operations at the terminals of Lübecker Hafengesellschaft (LHG) in Lübeck
harbours suffered from actions of the stevedoring workers' union during the
first quarter of the year. The union protested against the planned privatisation
of LHG.
The cargo volumes transported during the first half of the year totalled
approximately 429,000 (387,000 in 2007) units (lorries, trailers), 61,000
(49,000) cars (not including cars of the passengers) and, in addition,
1,526,000(1,303,000) tonnes of freight not possible to measure by the unit. In
addition, some 294,000 (224,000) passengers (including freight-related
passengers) were transported in 2008.
Financial performance
The Finnlines Group recorded revenue from the continuing operations totalling
EUR 384,0 (328,9 in 2007) million. Shipping and Sea Transport Services generated
revenue amounting to EUR 333,4 (278,9) million and Port Operations EUR 65,9
(66,9) million. Other income from operations amounted to EUR 1,1 (0,9) million.
The expenses were mostly affected by the fuel oil
price increases. Operating profit from the continuing operations was EUR 31,5
(30,5) million. The port operations in Oslo (Norsteve) was moved to a new
location resulting in losses of revenue and one-time expenses for the Port
Operations segment. Financial income was EUR 3,2(2,7) million and financial
expenses totalled EUR -18,5 (-14,6) million. Profit before taxes from the
continuing operations was EUR 16,2 (18,6) million. Return on equity (ROE) was
6,1 (7,0) % and return on investment (ROI) was 5,5 (6,4) %.
Investments and financing
The Group's investments were EUR 147,9 (209,9) million, consisting mainly of the
payments for the purchased four roro vessels and of investments in Vuosaari
harbour. Interest-bearing net debt amounted to EUR 843,4 (622,5) million. The
next payment for Jingling newbuilding project, USD 65 million, is due in
August 2008.
At the end of June, 44% of the loans were floating rate and the rest were fixed
rate loans. The duration (average interest rate period) of the debt portfolio
was approx. 63 months. On 30 June 2008 the granted but non-utilised credit
facilities totalled EUR 234 million.
The equity ratio calculated from the balance sheet was 29,2 (33,4) %. Gearing
was 189,1 (147,7) %.
Personnel
The Group employed an average of 2,388 (2,286) people during the period,
consisting of 1,469 (1,464) employees on shore and 919 (822) persons at sea.
The Finnlines share
The Company's registered share capital on 30 June 2008 was EUR 81,383,916
divided into 40,691,958 shares. A total of 5,5 (6,7) million Finnlines shares
were traded on the OMX Helsinki Exchanges during the period. The market
capitalisation of the Company's stock at the end of June was EUR 553,4 (638,9)
million. Earnings per share (EPS) during the period were EUR 0,33 (0,36).
Shareholders' equity per share was EUR 10,92 (10,30).
Risks
In addition to the earlier published investment programme Finnlines purchased
in April four roro vessels at the price of EUR 121 million. The deal was
financed with long-term debts.
The company has invested and will invest during 2003-2011 over one billion euros
in the renewal of the fleet and ports. Due to the investment programme the net
interest-bearing debt has increased and will continue to increase. This also has
a negative effect on the consolidated equity ratio. Otherwise there are no
material changes in the risks disclosed in the notes to the financial statements
2007.
Litigation
The arbitration proceedings commenced last year between the owners of MS
Finnmill and MS Finnpulp and Finnlines Plc was withdrawn in April when closing
the deal of these vessels. The main dispute concerned the validity and terms of
the purchase options of the vessels.
The Annual General Meeting
The Board of Directors of Finnlines Plc proposed to the AGM held on 15 April
2008 that no dividend be paid out from the fiscal year 2007 due to the sizeable
investment in the five vessels already in operation and the commitments of the
vessel renewal programme as well as to the investments in the Vuosaari harbour.
The minority shareholders (more than 10% of the shares) used their rights to
require the postponement of the handling of the closing of the books and the
discharge of the Board to a continued meeting. The meeting also decided to
postpone the Board of Directors' proposal for authorization to increase the
share capital to the same meeting.
The AGM decided that the company's Board of Directors has seven members. Mr.
Emanuele Grimaldi, Mr. Gianluca Grimaldi, Mr. Diego Pacella, Mr. Heikki Laine,
Mr. Antti Pankakoski, Mr. Olav K. Rakkenes and Mr. Jon-Aksel Torgersen were
unanimously re-elected. Finnlines' Board of Directors elected Mr. Jon-Aksel
Torgersen as Chairman and Mr. Diego Pacella as Vice Chairman of the Board. 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.
The Continued Annual General Meeting was held on 20 May, 2008. In his speech
during the Meeting, Christer Antson, President and CEO, explained that Group
contribution has been given, like in previous years, to Finnlines' 100% owned
ship-owning companies, which have invested in new vessels or converted older
vessels.
The Continued AGM approved, after voting, the financial statements and
discharged the company's officers from liability for the financial year 2007.
Ilmarinen Mutual Pension Insurance Company informed that it will apply for a
special audit in the company.
The Meeting decided, after voting, that the minimum dividend required by the
minority (more than 10% of shares) will be paid. The total amount of dividend
paid is EUR 180,216.40 ie. EUR 0.00443 per share. The dividend record date was
23 April 2008 and the dividend payment date was 30 April 2008.
The Board of Directors was, after voting, authorized to resolve on the issuance
of shares. The company may, on the basis of the authorization, issue new shares
in one or several instalments, so that the aggregate maximum number of new
shares will be 10,000,000 shares. The authorization includes the right for
direct issue of shares, in deviation from the shareholders' pre-emptive
subscription right on the terms and conditions prescribed by law. The
authorization is valid until the next Annual General Meeting.
Events after reporting period
On 26 June 2008, Finnlines Plc received a request for a statement of reply from
the County Administrative Board of South-Finland to the application made by
Mutual Pension Insurance Company Ilmarinen on executing special audit of
accounts. The application letter of Ilmarinen, addressed to the County
Administrative Board is dated June 19, 2008. In the application letter Ilmarinen
demands that the County Administrative Board orders the special audit to be
executed in Finnlines Plc's administration and accounting between 1.1. -
31.12.2007 as it is prescribed in The Companies Act (21.7.2006/624) 7:7 §.
Finnlines Plc will submit its reply by given time limit September 15, 2008.
Outlook for 2008
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 the
current premises.
The economic development in Europe creates uncertainty for the business
environment. The expenses of the company are heavily affected by the bunker oil
price and the new labour agreements in the sector. Owing to those reasons
Finnlines' whole year operating profit may fall behind the comparable figure in
previous year. Due to the investments in the new vessels, vessel conversions and
Vuosaari harbour, there will be a substantial increase in the depreciation and
interest expenses compared to 2007.
The next interim report for 1 January - 30 September, 2008 will
be published on 28 October, 2008.
Finnlines Plc
The Board of Directors
ENCLOSURES Profit and loss account
Balance sheet
Changes in shareholders equity
Cash flow statement
Revenue and operating result by business segments
Property, plant and equipment
Financial indicators
Contingencies and commitments
Revenue and operating profit by quarter
DISTRIBUTION Helsinki Exchanges
Main media
All figures unaudited
--------------------------------------------------------------------------------
| CONSOLIDATED PROFIT AND LOSS | | | | |
| ACCOUNT | | | | |
--------------------------------------------------------------------------------
| 1,000 EUR | 4-6/08 | 4-6/07 | 1-6/08 | 1-6/07 | 1-12/07 |
--------------------------------------------------------------------------------
| Continuing Operations | | | | | |
--------------------------------------------------------------------------------
| Revenue | 198,977 | 171,442 | 384,049 | 328,885 | 685,464 |
--------------------------------------------------------------------------------
| Other income from | 544 | 320 | 1,140 | 909 | 15,320 |
| operations | | | | | |
--------------------------------------------------------------------------------
| Materials and services | -68,427 | -48,267 | -131,394 | -90,883 | -205,904 |
--------------------------------------------------------------------------------
| Personnel expenses | -31,707 | -29,328 | -60,042 | -58,083 | -116,648 |
--------------------------------------------------------------------------------
| Depreciation, | -14,865 | -13,395 | -28,816 | -25,012 | -53,081 |
| amortisation and | | | | | |
| other write-offs | | | | | |
--------------------------------------------------------------------------------
| Other operating | -67,034 | -63,824 | -133,406 | -125,363 | -256,334 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Total operating | -182,03 | -154,81 | -353,658 | -299,340 | -631,968 |
| expenses | 3 | 3 | | | |
--------------------------------------------------------------------------------
| Operating profit | 17,488 | 16,948 | 31,531 | 30,453 | 68,816 |
--------------------------------------------------------------------------------
| Financial income | 2,090 | 536 | 3,184 | 2,743 | 5,258 |
--------------------------------------------------------------------------------
| Financial expenses | -8,900 | -7,207 | -18,495 | -14,592 | -33,956 |
--------------------------------------------------------------------------------
| Profit before taxes | 10,679 | 10,277 | 16,219 | 18,605 | 40,118 |
--------------------------------------------------------------------------------
| Income taxes *) | -1,816 | -2,158 | -2,757 | -3,907 | -5,725 |
--------------------------------------------------------------------------------
| Profit for the | 8,863 | 8,119 | 13,462 | 14,698 | 34,393 |
| reporting period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Distribution: | | | | | |
--------------------------------------------------------------------------------
| Parent company | 8,683 | 7,960 | 13,234 | 14,518 | 33,900 |
| shareholders | | | | | |
--------------------------------------------------------------------------------
| Minority interest | 180 | 159 | 228 | 180 | 493 |
--------------------------------------------------------------------------------
| | 8,863 | 8,119 | 13,462 | 14,698 | 34,393 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit attributable to parent company shareholders | | |
--------------------------------------------------------------------------------
| calculated as earnings per share | | | |
| (EUR/share) | | | |
--------------------------------------------------------------------------------
| Undiluted earnings per | 0.21 | 0.20 | 0.33 | 0.36 | 0.83 |
| share | | | | | |
--------------------------------------------------------------------------------
| Diluted earnings per | 0.21 | 0.20 | 0.33 | 0.36 | 0,83 |
| share | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
*)Taxes have been estimated based on the profit for the reporting
period.
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET, IFRS | | | |
--------------------------------------------------------------------------------
| 1,000 EUR | 30/6/08 | 30/6/07 | 31/12/07 |
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Property, plant and equipment | 1,259,526 | 1,002,614 | 1,139,576 |
--------------------------------------------------------------------------------
| Goodwill | 108,660 | 108,660 | 108,660 |
--------------------------------------------------------------------------------
| Other intangible assets | 8,945 | 10,248 | 9,899 |
--------------------------------------------------------------------------------
| Investment properties | 1,582 | 1,586 | 1,584 |
--------------------------------------------------------------------------------
| Share of associated companies | 1,526 | 1,526 | 1,526 |
--------------------------------------------------------------------------------
| Other financial assets | 4,797 | 4,892 | 4,797 |
--------------------------------------------------------------------------------
| Receivables | 3,560 | 7,938 | 9,173 |
--------------------------------------------------------------------------------
| Deferred tax assets | 2,961 | 614 | 2,051 |
--------------------------------------------------------------------------------
| | 1,391,557 | 1,138,079 | 1,277,265 |
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 9,086 | 6,646 | 6,908 |
--------------------------------------------------------------------------------
| Accounts receivable and other | 106,665 | 98,566 | 91,191 |
| receivables | | | |
--------------------------------------------------------------------------------
| Income tax receivables | 26 | 531 | 63 |
--------------------------------------------------------------------------------
| Bank and cash | 19,520 | 17,543 | 26,913 |
--------------------------------------------------------------------------------
| | 135,297 | 123,286 | 125,075 |
--------------------------------------------------------------------------------
| Total assets | 1,526,854 | 1,261,364 | 1,402,340 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDER'S EQUITY | | | |
--------------------------------------------------------------------------------
| Equity attributable to parent company shareholders |
--------------------------------------------------------------------------------
| Share capital | 81,384 | 81,384 | 81,384 |
--------------------------------------------------------------------------------
| Share premium account | 24,525 | 24,525 | 24,525 |
--------------------------------------------------------------------------------
| Fair value reserves | -7,543 | | -4,544 |
--------------------------------------------------------------------------------
| Translation differences | 227 | 45 | 152 |
--------------------------------------------------------------------------------
| Retained earnings | 345,654 | 313,218 | 332,601 |
--------------------------------------------------------------------------------
| | 444,247 | 419,172 | 434,118 |
--------------------------------------------------------------------------------
| Minority interest | 1,762 | 2,211 | 1,534 |
--------------------------------------------------------------------------------
| Total shareholders' equity | 446,009 | 421,383 | 435,652 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LIABILITIES | | | |
--------------------------------------------------------------------------------
| Long-term liabilities | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 105,939 | 98,745 | 103,910 |
--------------------------------------------------------------------------------
| Interest free liabilities | 2,383 | | 1,314 |
--------------------------------------------------------------------------------
| Pension liabilities | 2,443 | 2,497 | 2,358 |
--------------------------------------------------------------------------------
| Provisions | 2,282 | 3,657 | 2,284 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 742,200 | 539,139 | 593,817 |
--------------------------------------------------------------------------------
| | 855,247 | 644,038 | 703,682 |
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Accounts payable and other | 104,958 | 91,366 | 99,459 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Income tax liabilities | 232 | 3,266 | 491 |
--------------------------------------------------------------------------------
| Provisions | 1,169 | 411 | 672 |
--------------------------------------------------------------------------------
| Current interest-bearing | 119,239 | 100,900 | 162,384 |
| liabilities | | | |
--------------------------------------------------------------------------------
| | 225,598 | 195,943 | 263,006 |
--------------------------------------------------------------------------------
| Total liabilities | 1,080,845 | 839,981 | 966,688 |
--------------------------------------------------------------------------------
| Total shareholders' equity and | 1,526,854 | 1,261,364 | 1,402,340 |
| liabilities | | | |
--------------------------------------------------------------------------------
Changes in Consolidated Shareholders' Equity
--------------------------------------------------------------------------------
| 1,000 EUR | Share | Share issue | Fair value | Trans- |
| | capital | premium | reserves | lation |
| | | | | diffe- |
| | | | | rences |
--------------------------------------------------------------------------------
| Shareholders´ | 81,384 | 24,525 | 0 | 28 |
| equity 1.1.2007 | | | | |
--------------------------------------------------------------------------------
| Translation | | | | 16 |
| differences | | | | |
--------------------------------------------------------------------------------
| Profit for | | | | |
| reporting period | | | | |
--------------------------------------------------------------------------------
| Total recognised | | | | 16 |
| income for the | | | | |
| period | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | |
--------------------------------------------------------------------------------
| Shareholders´ | 81,384 | 24,525 | 0 | 45 |
| equity 30.6.2007 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1,000 EUR | Retained | Total | Minority | Total |
| | earnings | | interest | equity |
--------------------------------------------------------------------------------
| Shareholders´ | 315,791 | 421,728 | 2,028 | 423,757 |
| equity | | | | |
| 1.1.2007 | | | | |
--------------------------------------------------------------------------------
| Translation | | 16 | 3 | 19 |
| differences | | | | |
--------------------------------------------------------------------------------
| Profit for | 14,518 | 14,518 | 180 | 14,698 |
| reporting period | | | | |
--------------------------------------------------------------------------------
| Total | 14,518 | 14,534 | 183 | 14,717 |
| recognised | | | | |
| income for | | | | |
| the period | | | | |
--------------------------------------------------------------------------------
| Dividend | -17,091 | -17,091 | | -17,091 |
--------------------------------------------------------------------------------
| | -17,091 | -17,091 | 0 | -17,091 |
--------------------------------------------------------------------------------
| Shareholders´ | 313,218 | 419,172 | 2,211 | 421,383 |
| equity | | | | |
| 30.6.2007 | | | | |
--------------------------------------------------------------------------------
Changes in Consolidated Shareholders' Equity
--------------------------------------------------------------------------------
| 1,000 EUR | Share | Share issue | Fair value | Trans- |
| | capital | premium | reserves | lation |
| | | | | diffe- |
| | | | | rences |
--------------------------------------------------------------------------------
| Shareholders´ | 81,384 | 24,525 | -4,544 | 152 |
| equity 1.1.2008 | | | | |
--------------------------------------------------------------------------------
| Cash flow hedges | | | -2,999 | |
--------------------------------------------------------------------------------
| Translation | | | | 74 |
| differences | | | | |
--------------------------------------------------------------------------------
| Profit for | | | | |
| reporting period | | | | |
--------------------------------------------------------------------------------
| Total recognised | | | -2,999 | 74 |
| income for the | | | | |
| period | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders´ | 81,384 | 24,525 | -7,543 | 227 |
| equity 30.6.2008 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1,000 EUR | Retained | Total | Minority | Total |
| | earnings | | interest | equity |
--------------------------------------------------------------------------------
| Shareholders´ | 332,601 | 434,118 | 1,534 | 435,652 |
| equity | | | | |
| 1.1.2008 | | | | |
--------------------------------------------------------------------------------
| Cash flow hedges | | -2,999 | | -2,999 |
--------------------------------------------------------------------------------
| Translation | | 74 | | 74 |
| differences | | | | |
--------------------------------------------------------------------------------
| Profit for | 13,234 | 10,309 | 228 | 10,537 |
| reporting period | | | | |
--------------------------------------------------------------------------------
| Total | 13,234 | 10,309 | 228 | 10,537 |
| recognised | | | | |
| income for | | | | |
| the period | | | | |
--------------------------------------------------------------------------------
| Dividend | -180 | -180 | 0 | -180 |
--------------------------------------------------------------------------------
| | -180 | -180 | 0 | -180 |
--------------------------------------------------------------------------------
| Shareholders´ | 345,655 | 444,247 | 1,762 | 446,009 |
| equity | | | | |
| 30.6.2008 | | | | |
--------------------------------------------------------------------------------
Consolidated Cash Flow Statement
--------------------------------------------------------------------------------
| 1,000 EUR | 1-6/08 | 1-6/07 | 1-12/07 |
--------------------------------------------------------------------------------
| Cash flow from operations: | | | |
--------------------------------------------------------------------------------
| Profit for reporting period | 13,462 | 14,698 | 34,393 |
--------------------------------------------------------------------------------
| Adjustments: | | | |
--------------------------------------------------------------------------------
| Non-cash transactions | 28,287 | 25,473 | 39,561 |
--------------------------------------------------------------------------------
| Interest expense and other | 15,311 | 11,849 | 28,937 |
| financial expenses | | | |
--------------------------------------------------------------------------------
| Taxes | 2,757 | 3,907 | 5,725 |
--------------------------------------------------------------------------------
| Changes in working capital: | | | |
--------------------------------------------------------------------------------
| Change in accounts | -12,902 | -6,979 | 66 |
| receivable and other | | | |
| receivables | | | |
--------------------------------------------------------------------------------
| Change in current assets | -2,178 | -1,234 | -1,496 |
--------------------------------------------------------------------------------
| Change in accounts payable | -3,259 | 5,804 | 11,766 |
| and other liabilities | | | |
--------------------------------------------------------------------------------
| Change in provisions | 580 | 107 | 197 |
--------------------------------------------------------------------------------
| Interest paid | -10,346 | -4,649 | -20,988 |
--------------------------------------------------------------------------------
| Interest received | 572 | 695 | 1,397 |
--------------------------------------------------------------------------------
| Taxes | -827 | -812 | -1,087 |
--------------------------------------------------------------------------------
| Other financing items | -1,122 | -1,150 | -3,948 |
--------------------------------------------------------------------------------
| Net cash flow from operations | 30,335 | 47,708 | 94,524 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investing activities: | | |
--------------------------------------------------------------------------------
| Investments in tangible and | -147,927 | -210,665 | -392,780 |
| intangible assets | | | |
--------------------------------------------------------------------------------
| Sale of tangible assets | 610 | 325 | 30,819 |
--------------------------------------------------------------------------------
| Disposal of associated companies | | | 200 |
--------------------------------------------------------------------------------
| Proceed sale of investment | | | 243 |
--------------------------------------------------------------------------------
| Reduction in share capital, | | | -598 |
| minority interest | | | |
--------------------------------------------------------------------------------
| Dividends received | 6 | 2 | 16 |
--------------------------------------------------------------------------------
| Net cash flow from investing | -147,311 | -210,338 | -362,099 |
| activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing activities: | | |
--------------------------------------------------------------------------------
| Borrowing | 189,000 | 229,920 | 309,307 |
--------------------------------------------------------------------------------
| Net change in current | -30,169 | 22,658 | 79,907 |
| interest-bearing liabilities | | | |
--------------------------------------------------------------------------------
| Repayment of loans | -49,409 | -74,128 | -96,440 |
--------------------------------------------------------------------------------
| Increase / decrease of long-term | 343 | 372 | 770 |
| receivables | | | |
--------------------------------------------------------------------------------
| Dividends paid | -180 | -17,091 | -17,843 |
--------------------------------------------------------------------------------
| Net cash flow from financing | 109,585 | 161,731 | 276,062 |
| activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash and cash equivalents | -7,391 | -899 | 8,487 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 26,913 | 18,436 | 18,436 |
| on 1 January | | | |
--------------------------------------------------------------------------------
| Effect of foreign exchange rate | -2 | 6 | 10 |
| changes | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents on June | 19,520 | 17,543 | 26,913 |
| 30 / December 31 | | | |
--------------------------------------------------------------------------------
REVENUE AND OPERATING RESULT BY BUSINESS SEGMENTS (PRIMARY SEGMENT)
--------------------------------------------------------------------------------
| 1,000 EUR | 1-6/08 | % | 1-6/07 | % | 1-12/07 | % |
--------------------------------------------------------------------------------
| Sales | | | | | | |
--------------------------------------------------------------------------------
| Shipping and sea | 333,391 | 86.8 | 278,897 | 84.8 | 585,067 | 85.3 |
| transport | | | | | | |
--------------------------------------------------------------------------------
| Port operations | 65,901 | 17.2 | 66,876 | 20.3 | 133,155 | 19.4 |
--------------------------------------------------------------------------------
| Eliminations | -15,243 | -4.0 | -16,888 | -5.1 | -32,758 | -4.8 |
| (intragroup) | | | | | | |
--------------------------------------------------------------------------------
| External sales | 384,049 | 100.0 | 328,885 | 100.0 | 685,464 | 100.0 |
--------------------------------------------------------------------------------
| Operating profit | | | | | | |
--------------------------------------------------------------------------------
| Shipping and sea | 30,287 | | 25,955 | | 61,653 | |
| transport | | | | | | |
--------------------------------------------------------------------------------
| Port operations | 1,244 | | 4,497 | | 7,163 | |
--------------------------------------------------------------------------------
| Operating profit | 31,531 | | 30,453 | | 68,816 | |
| total | | | | | | |
--------------------------------------------------------------------------------
| Financial items | -15,312 | | -11,848 | | -28,698 | |
--------------------------------------------------------------------------------
| Profit | 16,219 | | 18,605 | | 40,118 | |
| before taxes | | | | | | |
--------------------------------------------------------------------------------
| Income taxes | -2,757 | | -3,907 | | -5,725 | |
--------------------------------------------------------------------------------
| Profit for | 13,462 | | 14,698 | | 34,393 | |
| reporting period | | | | | | |
| continuing | | | | | | |
| operations | | | | | | |
--------------------------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT
--------------------------------------------------------------------------------
| 1,000 EUR | 30/6/08 | 30/6/07 | 31/12/07 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Historical cost at the | 1,410,479 | 1,084,491 | 1,084,491 |
| beginning of the period | | | |
--------------------------------------------------------------------------------
| Translation differences | -141 | 96 | -8 |
--------------------------------------------------------------------------------
| Additions | 147,837 | 208,910 | 389,559 |
--------------------------------------------------------------------------------
| Disposals | -3,594 | -856 | -63,598 |
--------------------------------------------------------------------------------
| Reclassifications | | | 19 |
--------------------------------------------------------------------------------
| Historical cost at the end of | 1,554,581 | 1,292,641 | 1,410,479 |
| the period | | | |
--------------------------------------------------------------------------------
| Accumulated depreciation at | -269,319 | -264,926 | -264,926 |
| the beginning of the period | | | |
--------------------------------------------------------------------------------
| Translation differences | 109 | -66 | 11 |
--------------------------------------------------------------------------------
| Cumulative depreciation on | 3,513 | 692 | 46,694 |
| reclassifications and | | | |
| disposals | | | |
--------------------------------------------------------------------------------
| Depreciations | -27,776 | -24,142 | -51,098 |
--------------------------------------------------------------------------------
| Accumulated depreciations at | -293,473 | -288,442 | -269,319 |
| the end of the period | | | |
--------------------------------------------------------------------------------
| Book value | 1,261,108 | 1,004,199 | 1,141,160 |
--------------------------------------------------------------------------------
FINANCIAL INDICATORS
--------------------------------------------------------------------------------
| | 1-6/08 | 1-6/07 | 1-12/07 |
--------------------------------------------------------------------------------
| Operating profit as % of | 8.2 | 9.3 | 10.0 |
| revenue (continuing | | | |
| operations) | | | |
--------------------------------------------------------------------------------
| ROE, % | 6.1 | 7.0 | 8.0 |
--------------------------------------------------------------------------------
| ROI, % | 5.5 | 6.4 | 6.9 |
--------------------------------------------------------------------------------
| Gearing, % | 189.1 | 147.7 | 167.4 |
--------------------------------------------------------------------------------
| Gross capital | 147.9 | 209.8 | 391.3 |
| expenditure, MEUR | | | |
--------------------------------------------------------------------------------
| % of revenue | 38.5 | 63.8 | 57.1 |
--------------------------------------------------------------------------------
| Equity ratio, % | 29.2 | 33.4 | 31.1 |
--------------------------------------------------------------------------------
| Shareholders' equity/ | 10.92 | 10.30 | 10.67 |
| share, EUR | | | |
--------------------------------------------------------------------------------
| Number of shares during | 40,692 | 40,692 | 40,692 |
| period, average (1000) | | | |
--------------------------------------------------------------------------------
| Number of shares at | 40,692 | 40,692 | 40,692 |
| end of period (1000) | | | |
--------------------------------------------------------------------------------
| Market capitalisation, | 553.4 | 638.9 | 620.6 |
| EUR million | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average personnel (continuing | | | |
| operations) | | | |
--------------------------------------------------------------------------------
| Shore-based personnel | 1,469 | 1,464 | 1,470 |
--------------------------------------------------------------------------------
| Sea-borne personnel | 919 | 822 | 865 |
--------------------------------------------------------------------------------
| Personnel total | 2,388 | 2,286 | 2,335 |
--------------------------------------------------------------------------------
Financial ratios have been calculated according to the same principles as in
financial statements 2007.
--------------------------------------------------------------------------------
| CONTINGENCIES AND COMMITMENTS | 30/6/08 | 30/6/07 | 31/12/07 |
--------------------------------------------------------------------------------
| 1,000 EUR | | | |
--------------------------------------------------------------------------------
| Vessel hires (continuing | | | |
| operations): | | | |
--------------------------------------------------------------------------------
| Within 12 months | 64,125 | 77,768 | 89,899 |
--------------------------------------------------------------------------------
| Between one and five years | 80,428 | 71,407 | 51,614 |
--------------------------------------------------------------------------------
| After five years | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| | 144,553 | 149,175 | 141,513 |
--------------------------------------------------------------------------------
| Other leases (continuing | | | |
| operations): | | | |
--------------------------------------------------------------------------------
| Within 12 months | 6,219 | 5,536 | 5,673 |
--------------------------------------------------------------------------------
| Between one and five years | 20,732 | 11,918 | 21,537 |
--------------------------------------------------------------------------------
| After five years | 40,256 | 8,942 | 42,689 |
--------------------------------------------------------------------------------
| | 67,207 | 26,396 | 69,899 |
--------------------------------------------------------------------------------
Collateral given:
Borrowings secured by given mortgages
--------------------------------------------------------------------------------
| Loans from financial | 630,320 | 384,095 | 531,461 |
| institutions | | | |
--------------------------------------------------------------------------------
| Vessel mortgages provided as | 843,500 | 536,000 | 723,500 |
| guarantees for the above loans | | | |
--------------------------------------------------------------------------------
Other guarantees given on behalf of the Group:
--------------------------------------------------------------------------------
| Collateral | 1,675 | 2,518 | 2,517 |
--------------------------------------------------------------------------------
| Mortgages | 606 | 606 | 606 |
--------------------------------------------------------------------------------
Other guarantees given on behalf of the others:
--------------------------------------------------------------------------------
| Collateral | 0 | 1,027 | 1,200 |
--------------------------------------------------------------------------------
| Mortgages | 0 | 431 | |
--------------------------------------------------------------------------------
Other commitments given by group on behalf of subsidiaries:
--------------------------------------------------------------------------------
| Commitments | 6,000 | 6,000 | 6,000 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Obligations for capital | 182,012 | 137,431 | 197,137 |
| expenditure | | | |
--------------------------------------------------------------------------------
| Other obligations | 89 | 112 | 101 |
--------------------------------------------------------------------------------
Open derivative instruments:
--------------------------------------------------------------------------------
| 1,000 EUR | 30/6/0 | 30/6/0 | 31/12/07 | 30/6/08 | 30/6/07 | 31/12/07 |
| | 8 | 7 | | | | |
--------------------------------------------------------------------------------
| | Fair value | Contract amount |
--------------------------------------------------------------------------------
| Currency | -7,558 | 18 | -3,845 | 59,883 | 20,733 | 64,126 |
| forwards | | | | | | |
--------------------------------------------------------------------------------
| Interest rate | 1,484 | | -327 | 120,000 | | 120,000 |
| swaps | | | | | | |
--------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------
| MEUR | Q1/08 | Q1/07 | Q2/08 | Q2/07 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Continuing Operations | | | | |
--------------------------------------------------------------------------------
| Shipping and sea | 160,0 | 132,5 | 173,4 | 146,4 |
| transport | | | | |
--------------------------------------------------------------------------------
| Port operations | 32,4 | 33,3 | 33,5 | 33,5 |
--------------------------------------------------------------------------------
| Eliminations (intragroup) | -7,3 | -8,4 | -7,9 | -8,5 |
--------------------------------------------------------------------------------
| External sales | 185,1 | 157,4 | 199,0 | 171,4 |
--------------------------------------------------------------------------------
| Operating profit | | | | |
--------------------------------------------------------------------------------
| Shipping and sea | 12,7 | 11,0 | 17,5 | 14,9 |
| transport | | | | |
--------------------------------------------------------------------------------
| Port operations | 1,3 | 2,5 | 0,0 | 2,0 |
--------------------------------------------------------------------------------
| Operating profit total | 14,0 | 13,5 | 17,5 | 16,9 |
--------------------------------------------------------------------------------
| Financial items | -8,5 | -5,2 | -6,8 | -6,7 |
--------------------------------------------------------------------------------
| Profit | 5,5 | 8,3 | 10,7 | 10,2 |
| before taxes | | | | |
--------------------------------------------------------------------------------
| Income taxes | -1,0 | -1,7 | -1,8 | -2,2 |
--------------------------------------------------------------------------------
| Profit for the reporting | 4,6 | 6,6 | 8,9 | 8,1 |
| period,Continuing | | | | |
| Operations | | | | |
--------------------------------------------------------------------------------
| Profit for the reporting | 4,6 | 6,6 | 8,9 | 8,1 |
| period | | | | |
--------------------------------------------------------------------------------
| EPS (undiluted) | 0.11 | 0.16 | 0.22 | 0.20 |
--------------------------------------------------------------------------------
| EPS (diluted) | 0.11 | 0.16 | 0.22 | 0.20 |
--------------------------------------------------------------------------------
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 2007. This interim report is unaudited.
