Finnlines Plc Stock Exchange Release 11 May 2010
INTERIM REPORT JANUARY - MARCH 2010 (Unaudited)
JANUARY - MARCH 2010 IN BRIEF
--------------------------------------------------------------------------------
| MEUR | 1-3 2010 | 1-3 2009 | 1-12 2009 |
--------------------------------------------------------------------------------
| Revenue | 121.5 | 117.4 | 494.4 |
--------------------------------------------------------------------------------
| EBITDA | 16.1 | -0.2 | 37.4 |
--------------------------------------------------------------------------------
| Result before interest and | 1.4 | -16.0 | -23.6 |
| taxes | | | |
--------------------------------------------------------------------------------
| % of revenue | 1.2 | -13.7 | -4.8 |
--------------------------------------------------------------------------------
| Result before taxes | -3.8 | -26.6 | -51.4 |
--------------------------------------------------------------------------------
| EPS, EUR * | -0.07 | -0.51 | -0.96 |
--------------------------------------------------------------------------------
| Equity ratio, % | 29.2 | 28.5 | 29.4 |
--------------------------------------------------------------------------------
| Gearing, % | 202.7 | 206.7 | 198.3 |
--------------------------------------------------------------------------------
| Shareholders' equity/share, | 9.03 | 10.52 | 9.07 |
| EUR * | | | |
--------------------------------------------------------------------------------
*Key indicators per share have been retroactively adjusted with the share issue
adjustment factor.
Calculation of key ratios is presented on the page 12.
GENERAL MARKET DEVELOPMENT
The sharp drop in volumes that was experienced especially during the last
quarter of 2008 and the first quarter of 2009, stabilised during the rest of the
year 2009, and the market volumes remained on the new lower level. Based on
statistics by the Finnish Maritime Administration (FMA), the Finnish seaborne
imports carried in container, lorry and trailer units increased by 4% and
exports by 6% during the first quarter of 2010 compared to the previous year
(measured in tons). According to statistics published by Shippax, trailer and
lorry volumes transported by sea between Southern Sweden and Germany decreased
in January-March by 8% compared to 2009. Private and commercial passenger
traffic between Finland and Germany increased by 1% and decreased between
Finland and Sweden by 5% (FMA).
FINNLINES TRAFFIC
During the first quarter of the year, traffic was influenced by a number of
external disturbances. Severe ice conditions in the northern parts of the Baltic
Sea, stevedores' overtime ban in Finnish ports and the 16 days' stevedores'
strike in Finland all caused several temporary schedule changes, reroutings and
even stoppages. Especially the stevedores' strike had big impacts as practically
all ro-ro traffic to and from Finnish ports was halted during the strike. By the
end of March, the situation normalised and the traffic has returned to normal
pattern. During the first quarter of 2010, the company operated on average of 23
vessels in its own traffic compared to 30 during the same period in 2009.
The cargo volumes transported during January-March totalled approximately
148,000 (155,000 in 2009) units, 9,000 (11,000) cars (not including cars of the
passengers) and, in addition 390,000 (485,000) tons of freight not possible to
measure in units. In addition, some 121,000 private and commercial passengers
were transported (around 102,000), an increase of 19%. Compared to the first
quarter of 2009, the number of private passengers (excluding lorry drivers)
transported by the company increased by 59%.
PRODUCTIVITY
The fleet capacity has been adjusted to new market requirements both on number
of ships as well as the correct allocation of tonnage in specific trades. These
measures have mainly been taken at the end of 2009 and will therefore generate
most part of the savings from 2010 onwards.
The average number of personnel has decreased by 14% compared to the same period
of the previous year mainly due to temporary lay offs in ports and personnel
cuttings in offices.
During 2009 the Group started a significant process to merge group companies and
businesses. This process will continue during 2010 and will result in a much
leaner company structure thus creating savings in administration and personnel
costs.
FINANCIAL RESULTS
The Finnlines Group recorded revenue totalling EUR 121.5 million (117.4), an
increase of 3.5%. Shipping and Sea Transport Services generated revenue
amounting to EUR 110.9 million (103.3) and Port Operations EUR 14.8 million
(20.1). The internal revenue between the segments was EUR 4.2 million (6.1).
Result before depreciation and amortisation (EBITDA) was EUR 16.1 million
(-0.2). Personnel expenses have decreased by EUR 3.7 million and vessel lease
expenses decreased by EUR 6.1 million compared to the same period of the
previous year. Other operating expenses totalled EUR -39.4 million (-54.2) and
included EUR 2.9 million (2.7)
reimbursement of fairway dues.
Result before interest and taxes (EBIT) was EUR 1.4 million (-16.0). Financial
income was EUR 1.4 million (1.2) and financial expenses totalled EUR -6.7
million (-11.8). Result before taxes (EBT) was EUR -3.8 million
(-26.6), an improvement of EUR 22.8 million compared to the same period in 2009.
Earnings per share (EPS) were EUR -0.07
(-0.51).
BALANCE SHEET, FINANCING AND CASH-FLOW
Interest-bearing net debt decreased by EUR 47.6 million compared to the same
period 2009 and amounted to EUR 858.2 million (905.7). The equity ratio
calculated from the balance sheet was 29.2% (28.5) and gearing was 202.7%
(206.7). Vessel lease commitments decreased by EUR 65.5 million from the end of
March 2009 due to the redelivery of chartered tonnage.
At the end of the period, cash and deposits together with unused committed
working capital credits and the undrawn part of committed credits for
newbuildings amounted to EUR 159.5 million.
CAPITAL EXPENDITURE
Gross capital expenditure in the review period totalled EUR 5.0 million (13.7).
Depreciation amounted to EUR 14.7 million (15.9).
The timetable of the 6 vessels under construction in China has been adapted to
meet scheduled further redeliveries of the chartered tonnage. The new delivery
times are for vessels Nos. 1 and 2 end of first quarter of 2011, vessels Nos. 3
and 4 during the fourth quarter of 2011, vessel No. 5 end of the third quarter
2012 and vessel No. 6 during the fourth quarter of 2012.
PERSONNEL
The Group employed an average of 1,950 (2,267) persons during the period,
consisting of 1,035 (1,302) persons on shore and 915 (965) persons at sea. The
average number of employees has been calculated by converting the regular
working hours performed during the reporting period to correspond to a full-time
employee, and the average number of persons was recalculated accordingly for
2009.
DECISIONS TAKEN BY THE ANNUAL GENERAL MEETING
The Annual General Meeting of Finnlines Plc approved the Financial Statements.
The Meeting approved the Board of Directors proposal not to pay any dividend.
The Annual General Meeting decided that the Board of Directors shall have six
members. The following were re-elected to the Board: Mr. Emanuele Grimaldi, Mr.
Diego Pacella, Mr. Gianluca Grimaldi, Mr. Antti Pankakoski, Mr. Olav Rakkenes
and Mr. Jon-Aksel Torgersen. The Board elected Mr. Emanuele Grimaldi Chairman
and Mr. Diego Pacella Vice-Chairman.
The firm of authorised public accountants Deloitte & Touche was appointed as the
company's auditors for 2010.
The Annual General meeting authorised the Board of Directors to decide on the
issuance of new shares in one or several tranches so that the total number of
shares issued based on the authorization is 20 000 000 at maximum. The
authorization is valid until the next Annual General Meeting. The authorization
replaces the Annual General Meeting's authorization to decide on a share issue
of 15 April 2009.
RISKS
The main business risk in the shipping is the overcapacity of the tonnage.
Overall the ro-ro market looks better than other maritime transport sectors,
where newbuildings are further increasing the imbalance of supply and demand of
tonnage. For the ro-ro sector this does not apply. Moreover, around 50% of the
current global ro-ro fleet is over 25 years old and needs to be scrapped for
environmental reasons.
Finnlines monitors constantly the stability and the payment habits of its
customers and currently there are no significant risks related to this.
Finnlines holds adequate credit lines to maintain liquidity in the current
business environment.
The annual report 2009 contains a thorough description of Finnlines' risks and
risk management, and there are no essential changes to that report.
ESSENTIAL CHANGES IN LEGAL PROCEEDINGS
The Annual report 2009 contains a thorough description of legal proceedings and
the following is a description of changes compared to what was reported in the
annual report:
The Helsinki District Court rendered on 3 March 2010 its judgment in the action
initiated by Mutual Pension Insurance Company Ilmarinen against Finnlines Plc.
In its action Ilmarinen objected to the decision by Finnlines' General Meeting
held on 20 May 2008 to distribute 180,216.39 euros as a minimum dividend and
demanded that the minimum dividend be increased. The District Court has approved
Ilmarinen's claim to have the resolution of the General Meeting amended so that
the minimum dividend instead of 180,216.39 euros as above should have been
17,181,000 euros. In addition, the District Court has ordered Finnlines to
compensate Ilmarinen's legal costs by an amount of 300,035.15 euros together
with interest at statutory rate. Finnlines filed an appeal with the Helsinki
Court of Appeal against the judgement by the Helsinki District Court in April
2010.
The former management of Finnlines' port operations subsidiary had been
summoned to the Helsinki District Court to answer for infringing the
Occupational Safety and Health Act and Working Hours Act in the port
of Helsinki. The Helsinki District Court rendered its decision on 3 March 2010
sentencing the former management to pay fines. Finnlines port operations
subsidiary has taken rectifying measures in the follow-up system of the working
hours in order to avoid any infringements in the future.
Taxation of internal vessel sales carried out in 2007 by Finnlines' Swedish
subsidiary includes uncertainties. The decision of the tax authorities was that
a SEK 97.2 million (EUR 9.5) tax debt should be paid. The Company has been
granted postponement of this payment as it has appealed in the matter and the
court proceedings are under way. As the company recorded a deferred tax
liability due to the temporary timing difference in the tax year in question,
this matter does not have any significant effect on the company's result.
Finnlines received information on the last day of January 2010 that the Finnish
Transport Workers' Union has filed legal actions against Finnlines' port
operations subsidiary for compensation of weekend work. The Company considers
the basis of the action groundless and will reply to the submission of the Union
in the given time limit.
ESSENTIAL EVENTS AFTER REPORTING PERIOD
In April 2009, Finnlines subsidiary Hanseatic Shipping sold MS Finnhansa to
Grimaldi Group at the market price of EUR 40 million with a call option to
repurchase the vessel at the same price. In April 2010, Finnlines exercised this
call option. MS Finnhansa will start plying in Finnlines' traffic in July 2010.
FINNLINES PROSPECTS FOR 2010
Since April there have been signs of good recovery in transport volumes. In some
lines the Company has been able to improve the freights and the passenger
bookings for the summer season have increased considerably compared to last
year.
The Company expects the whole year 2010 result to be positive due to the
improved volumes and the significantly lower cost structure in 2010.
The second interim report of the year 2010, 1 January - 30 June, will be
published on Thursday, 29 July 2010.
Finnlines Plc
The Board of Directors
Uwe Bakosch
President/CEO
ENCLOSURES
- Consolidated statement of comprehensive income, IFRS
- Consolidated balance sheet, IFRS
- Consolidated statement of changes in equity, IFRS
- Consolidated statement of cash flows, IFRS
- Revenue and result by business segment
- Property, plant and equipment
- Contingencies and commitments
- Shares, market capitalisation and trading information
- Calculation of ratios
DISTRIBUTION
NASDAQ OMX Helsinki Ltd.
Main media
This interim report is unaudited.
FINNLINES' BUSINESS
Finnlines is one of the largest North-European liner shipping companies,
providing sea transport services mainly in the Baltic and the North Sea. In
addition to freight, the Company's ro-pax vessels carry passengers between five
countries and eight ports. The Company also provides port services in Helsinki,
Turku and Kotka. The company has subsidiaries or sales offices in Germany,
Belgium, the UK, Sweden, Denmark, Poland and Russia. Finnlines is a Finnish
listed company and part of the Italian Grimaldi Group.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, IFRS
--------------------------------------------------------------------------------
| EUR 1,000 | 1 Jan - 31 | 1 Jan - 31 | 1 Jan - 31 |
| | Mar 2010 | Mar 2009 | Dec 2009 |
--------------------------------------------------------------------------------
| Revenue | 121,506 | 117,401 | 494,411 |
--------------------------------------------------------------------------------
| Other income from operations | 2,455 | 1,017 | 13,413 |
--------------------------------------------------------------------------------
| Materials and services | -43,409 | -35,609 | -162,553 |
--------------------------------------------------------------------------------
| Personnel expenses | -25,062 | -28,786 | -107,548 |
--------------------------------------------------------------------------------
| Depreciation, amortisation and | -14,653 | -15,875 | -61,012 |
| other write-offs | | | |
--------------------------------------------------------------------------------
| Other operating expenses | -39,396 | -54,191 | -200,328 |
--------------------------------------------------------------------------------
| Total operating expenses | -122,521 | -134,461 | -531,441 |
--------------------------------------------------------------------------------
| Result before interest and | 1,440 | -16,042 | -23,617 |
| taxes (EBIT) | | | |
--------------------------------------------------------------------------------
| Financial income | 1,390 | 1,194 | 3,922 |
--------------------------------------------------------------------------------
| Financial expenses | -6,655 | -11,788 | -31,724 |
--------------------------------------------------------------------------------
| Result before taxes | -3,825 | -26,637 | -51,419 |
--------------------------------------------------------------------------------
| Income taxes | 566 | 5,601 | 9,713 |
--------------------------------------------------------------------------------
| Result for the reporting | -3,259 | -21,036 | -41,706 |
| period | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive income: | | | |
--------------------------------------------------------------------------------
| Exchange differences on | -37 | -170 | -255 |
| translating foreign operations | | | |
--------------------------------------------------------------------------------
| Change in hedging reserve | 1,375 | 910 | -723 |
--------------------------------------------------------------------------------
| Deferred tax revaluation | | | -1,481 |
--------------------------------------------------------------------------------
| Income tax relating to | -357 | -237 | 188 |
| components of other | | | |
| comprehensive income | | | |
--------------------------------------------------------------------------------
| Total comprehensive income | -2,278 | -20,532 | -43,977 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result attributable to: | | | |
--------------------------------------------------------------------------------
| Parent company shareholders | -3,190 | -21,015 | -41,637 |
--------------------------------------------------------------------------------
| Non-controlling interests | -69 | -20 | -69 |
--------------------------------------------------------------------------------
| | -3,259 | -21,036 | -41,706 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive income | | | |
| attributable to: | | | |
--------------------------------------------------------------------------------
| Parent company shareholders | -2,209 | -20,512 | -43,908 |
--------------------------------------------------------------------------------
| Non-controlling interests | -69 | -20 | -69 |
--------------------------------------------------------------------------------
| | -2,278 | -20,532 | -43,977 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result attributable to parent | | | |
| company shareholders | | | |
| calculated as earnings per | | | |
| share (EUR/share): | | | |
--------------------------------------------------------------------------------
| Undiluted earnings per share * | -0.07 | -0.51 | -0.96 |
--------------------------------------------------------------------------------
| Diluted earnings per share * | -0.07 | -0.51 | -0.96 |
--------------------------------------------------------------------------------
| Average number of shares: | | | |
--------------------------------------------------------------------------------
| Undiluted * | 46,821,037 | 41,528,302 | 44,384,929 |
--------------------------------------------------------------------------------
| Diluted * | 46,821,037 | 41,528,302 | 44,384,929 |
--------------------------------------------------------------------------------
*Key indicators per share have been retroactively adjusted with the share issue
adjustment factor.
CONSOLIDATED BALANCE SHEET, IFRS
--------------------------------------------------------------------------------
| EUR 1,000 | 31 Mar 2010 | 31 Mar 2009 | 31 Dec 2009 |
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Property, plant and equipment | 1,230,989 | 1,309,919 | 1,240,057 |
--------------------------------------------------------------------------------
| Goodwill | 105,644 | 105,644 | 105,644 |
--------------------------------------------------------------------------------
| Intangible assets | 10,726 | 13,013 | 11,342 |
--------------------------------------------------------------------------------
| Investment properties | 1,576 | 1,579 | 1,577 |
--------------------------------------------------------------------------------
| Share of associated companies | 1,514 | 1,526 | 1,514 |
--------------------------------------------------------------------------------
| Other financial assets | 4,788 | 4,791 | 4,792 |
--------------------------------------------------------------------------------
| Receivables | 957 | 4,514 | 894 |
--------------------------------------------------------------------------------
| Deferred tax assets | 2,971 | 3,034 | 3,567 |
--------------------------------------------------------------------------------
| | 1,359,163 | 1,444,022 | 1,369,386 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 6,550 | 5,444 | 6,530 |
--------------------------------------------------------------------------------
| Accounts receivable and other | 82,268 | 76,398 | 64,345 |
| receivables | | | |
--------------------------------------------------------------------------------
| Income tax receivables | 96 | 111 | 18 |
--------------------------------------------------------------------------------
| Bank and cash | 3,897 | 14,007 | 6,103 |
--------------------------------------------------------------------------------
| | 92,812 | 95,960 | 76,996 |
--------------------------------------------------------------------------------
| Total assets | 1,451,976 | 1,539,982 | 1,446,382 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | | | |
--------------------------------------------------------------------------------
| Equity attributable to parent | | | |
| company shareholders | | | |
--------------------------------------------------------------------------------
| Share capital | 93,642 | 81,384 | 93,642 |
--------------------------------------------------------------------------------
| Share premium account | 24,525 | 24,525 | 24,525 |
--------------------------------------------------------------------------------
| Fair value reserve | -3,805 | -2,133 | -4,822 |
--------------------------------------------------------------------------------
| Translation differences | 87 | 209 | 124 |
--------------------------------------------------------------------------------
| Unrestricted equity reserve | 21,015 | | 21,015 |
--------------------------------------------------------------------------------
| Retained earnings | 287,101 | 311,912 | 290,291 |
--------------------------------------------------------------------------------
| Hybrid bond | | 20,906 | |
--------------------------------------------------------------------------------
| | 422,566 | 436,803 | 424,775 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-controlling interests | 807 | 1,511 | 876 |
--------------------------------------------------------------------------------
| Total equity | 423,373 | 438,314 | 425,651 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LIABILITIES | | | |
--------------------------------------------------------------------------------
| Long-term liabilities | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 86,566 | 91,408 | 87,660 |
--------------------------------------------------------------------------------
| Interest-free liabilities | 16 | | 742 |
--------------------------------------------------------------------------------
| Pension liabilities | 2,348 | 3,026 | 2,355 |
--------------------------------------------------------------------------------
| Provisions | 4,312 | 4,277 | 4,312 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 701,253 | 771,935 | 721,112 |
--------------------------------------------------------------------------------
| | 794,496 | 870,645 | 816,182 |
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Accounts payable and other | 71,874 | 80,169 | 73,714 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Income tax liabilities | 649 | 199 | 448 |
--------------------------------------------------------------------------------
| Provisions | 777 | 2,843 | 1,280 |
--------------------------------------------------------------------------------
| Current interest-bearing | 160,806 | 147,811 | 129,107 |
| liabilities | | | |
--------------------------------------------------------------------------------
| | 234,106 | 231,023 | 204,549 |
--------------------------------------------------------------------------------
| Total liabilities | 1,028,603 | 1,101,668 | 1,020,731 |
--------------------------------------------------------------------------------
| Total equity and liabilities | 1,451,976 | 1,539,982 | 1,446,382 |
--------------------------------------------------------------------------------
statement of changes in equity 2009, IFRS
--------------------------------------------------------------------------------
| EUR 1,000 | Equity attributable to parent company shareholders |
--------------------------------------------------------------------------------
| | Share | Share | Translat | Fair | Unrestric |
| | capital | issue | ion | value | ted |
| | | premium | differen | reserves | equity |
| | | | ces | | reserve |
--------------------------------------------------------------------------------
| Shareholders' | 81,384 | 24,525 | 379 | -2,807 | |
| equity 1 | | | | | |
| January 2009 | | | | | |
--------------------------------------------------------------------------------
| Total comprehensive | | | -170 | 673 | |
| income for the year | | | | | |
--------------------------------------------------------------------------------
| Shareholders' | 81,384 | 24,525 | 209 | -2,133 | |
| equity | | | | | |
| 31 March 2009 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR 1,000 | Equity attributable to parent | Non-contr | Total |
| | company shareholders | olling | sharehold |
| | | interests | ers' |
| | | | equity |
--------------------------------------------------------------------------------
| | Retained | Hybrid | Total | | |
| | earnings | bond | | | |
--------------------------------------------------------------------------------
| Shareholders' | 332,927 | | 436,409 | 1,531 | 437,940 |
| equity 1 January | | | | | |
| 2009 | | | | | |
--------------------------------------------------------------------------------
| Total comprehensive | -21,015 | | -20,512 | -20 | -20,532 |
| income for the year | | | | | |
--------------------------------------------------------------------------------
| Issue of hybrid | | 20,906 | 20,906 | | 20,906 |
| bond | | | | | |
--------------------------------------------------------------------------------
| Shareholders' | 311,912 | 20,906 | 436,803 | 1,511 | 438,314 |
| equity 31 | | | | | |
| March 2009 | | | | | |
--------------------------------------------------------------------------------
statement of changes in equity 2010, IFRS
--------------------------------------------------------------------------------
| EUR 1,000 | Equity attributable to parent company shareholders |
--------------------------------------------------------------------------------
| | Share | Share | Translat | Fair | Unrestric |
| | capital | issue | ion | value | ted |
| | | premium | differen | reserves | equity |
| | | | ces | | reserve |
--------------------------------------------------------------------------------
| Shareholders' | 93,642 | 24,525 | 124 | -4,822 | 21,015 |
| equity 1 | | | | | |
| January 2010 | | | | | |
--------------------------------------------------------------------------------
| Total comprehensive | | | -37 | 1,017 | |
| income for the year | | | | | |
--------------------------------------------------------------------------------
| Shareholders' | 93,642 | 24,525 | 87 | -3,805 | 21,015 |
| equity | | | | | |
| 31 March 2010 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR 1,000 | Equity attributable to parent | Non-contr | Total |
| | company shareholders | olling | sharehold |
| | | interests | ers' |
| | | | equity |
--------------------------------------------------------------------------------
| | Retained | Hybrid | Total | | |
| | earnings | bond | | | |
--------------------------------------------------------------------------------
| Shareholders' | 290,291 | | 424,775 | 876 | 425,651 |
| equity 1 January | | | | | |
| 2010 | | | | | |
--------------------------------------------------------------------------------
| Total comprehensive | -3,190 | | -2,209 | -69 | -2,278 |
| income for the year | | | | | |
--------------------------------------------------------------------------------
| Shareholders' | 287,101 | | 422,566 | 807 | 423,373 |
| equity 31 | | | | | |
| March 2010 | | | | | |
--------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT, IFRS
--------------------------------------------------------------------------------
| EUR 1,000 | 1 Jan-31 Mar | 1 Jan-31 Mar | 1 Jan-31 Dec |
| | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Cash flows from operating | | | |
| activities | | | |
--------------------------------------------------------------------------------
| Result for reporting period | -3,259 | -21,036 | -41,706 |
--------------------------------------------------------------------------------
| Non-cash transactions | 19,144 | 20,728 | 67,673 |
--------------------------------------------------------------------------------
| Changes in working capital | -17,742 | -5,542 | 6,273 |
--------------------------------------------------------------------------------
| Net financial items and | -7,344 | -8,238 | -33,395 |
| income taxes | | | |
--------------------------------------------------------------------------------
| Net cash generated from | -9,200 | -14,089 | -1,154 |
| operating activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investing | | | |
| activities | | | |
--------------------------------------------------------------------------------
| Investment in shares and | | | -251 |
| acquisition | | | |
--------------------------------------------------------------------------------
| Net investments in tangible | -4,988 | -10,722 | -25,363 |
| and intangible assets | | | |
--------------------------------------------------------------------------------
| Disposal of subsidiaries | | | 2,114 |
--------------------------------------------------------------------------------
| Proceeds from sale of | 11 | 1 | 957 |
| investments | | | |
--------------------------------------------------------------------------------
| Other investing activities | 223 | 327 | 49,377 |
--------------------------------------------------------------------------------
| Net cash used in investing | -4,754 | -10,394 | 26,834 |
| activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flows from financing | | | |
| activities | | | |
--------------------------------------------------------------------------------
| Proceeds from share issue | | | 33,274 |
--------------------------------------------------------------------------------
| Loan withdrawals | | | 8,040 |
--------------------------------------------------------------------------------
| Net increase in current | 31,673 | 25,119 | 9,801 |
| interest-bearing liabilities | | | |
--------------------------------------------------------------------------------
| Repayment of loans | -19,949 | -18,050 | -81,143 |
--------------------------------------------------------------------------------
| Increase / decrease in | 20 | 2 | 466 |
| long-term receivables | | | |
--------------------------------------------------------------------------------
| Dividends paid | | | -540 |
--------------------------------------------------------------------------------
| Hybrid bond | | 20,906 | 20,906 |
--------------------------------------------------------------------------------
| Hybrid bond repayment | | | -20,906 |
--------------------------------------------------------------------------------
| Net cash from (used in) | 11,744 | 27,976 | -30,103 |
| financing activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash and cash | -2,211 | 3,492 | -4,423 |
| equivalents | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents 1 | 6,103 | 10,509 | 10,509 |
| January | | | |
--------------------------------------------------------------------------------
| Effect of foreign exchange | 5 | 4 | 17 |
| rate changes | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at | 3,897 | 14,007 | 6,103 |
| the end of period | | | |
--------------------------------------------------------------------------------
REVENUE AND RESULT BY BUSINESS SEGMENTS
--------------------------------------------------------------------------------
| | 1 Jan-31 Mar | 1 Jan-31 Mar | 1 Jan-31 Dec |
| | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| | MEUR | % | MEUR | % | MEUR | % |
--------------------------------------------------------------------------------
| Revenue | | | | | | |
--------------------------------------------------------------------------------
| Shipping and sea | 110.9 | 91.3 | 103.3 | 88.0 | 444.9 | 90.0 |
| transport | | | | | | |
--------------------------------------------------------------------------------
| Port operations | 14.8 | 12.2 | 20.1 | 17.2 | 73.2 | 14.8 |
--------------------------------------------------------------------------------
| Eliminations | -4.2 | -3.4 | -6.1 | -5.2 | -23.7 | -4.8 |
| (intragroup) | | | | | | |
--------------------------------------------------------------------------------
| External sales | 121.5 | 100.0 | 117.4 | 100.0 | 494.4 | 100.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result before interest | | | | | | |
| and taxes (EBIT) | | | | | | |
--------------------------------------------------------------------------------
| Shipping and sea | 5.9 | | -10.0 | | -7.7 | |
| transport | | | | | | |
--------------------------------------------------------------------------------
| Port operations | -4.5 | | -6.0 | | -15.9 | |
--------------------------------------------------------------------------------
| Result before interest | 1.4 | | -16.0 | | -23.6 | |
| and taxes (EBIT) total | | | | | | |
--------------------------------------------------------------------------------
| Financial items | -5.3 | | -10.6 | | -27.8 | |
--------------------------------------------------------------------------------
| Result before taxes | -3.8 | | -26.6 | | -51.4 | |
--------------------------------------------------------------------------------
| Income taxes | 0.6 | | 5.6 | | 9.7 | |
--------------------------------------------------------------------------------
| Result for reporting | -3.3 | | -21.0 | | -41.7 | |
| period | | | | | | |
--------------------------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT 2009
--------------------------------------------------------------------------------
| EUR 1,000 | Land | Buildin | Vessels | Machinery | Advance | Total |
| | | gs | | and | payments | |
| | | | | equipment | & | |
| | | | | | acquisit | |
| | | | | | ions | |
| | | | | | under | |
| | | | | | constr. | |
--------------------------------------------------------------------------------
| Acquisition | 339 | 106,638 | 1,289,692 | 109,525 | 125,401 | 1,631,595 |
| cost 1 | | | | | | |
| January | | | | | | |
--------------------------------------------------------------------------------
| Exchange | | 15 | | 488 | | 504 |
| rate | | | | | | |
| differences | | | | | | |
--------------------------------------------------------------------------------
| Increases | | 1,013 | 8,689 | 2,618 | 747 | 13,067 |
--------------------------------------------------------------------------------
| Sales of | | | | | | |
| assets | | | | | | |
--------------------------------------------------------------------------------
| Disposals | | | -12 | -1,039 | -41 | -1,091 |
--------------------------------------------------------------------------------
| Reclassifica | | | 3,796 | | -3,796 | 0 |
| tions | | | | | | |
--------------------------------------------------------------------------------
| Acquisition | 339 | 107,666 | 1,302,166 | 111,593 | 122,311 | 1,644,074 |
| cost 31 | | | | | | |
| March 2009 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Accumulated | | -32,221 | -237,395 | -50,010 | | -319,627 |
| depreciation | | | | | | |
| , | | | | | | |
| amortisation | | | | | | |
| and | | | | | | |
| write-offs 1 | | | | | | |
| Jan | | | | | | |
--------------------------------------------------------------------------------
| Exchange | | -5 | | -148 | | -153 |
| rate | | | | | | |
| differences | | | | | | |
--------------------------------------------------------------------------------
| Cumulative | | | 10 | 895 | | 906 |
| depreciation | | | | | | |
| on | | | | | | |
| reclassifica | | | | | | |
| tions and | | | | | | |
| disposals | | | | | | |
--------------------------------------------------------------------------------
| Cumulative | | | | | | |
| depreciation | | | | | | |
| on sales of | | | | | | |
| assets | | | | | | |
--------------------------------------------------------------------------------
| Depreciation | | -809 | -12,585 | -1,888 | | -15,282 |
| for the | | | | | | |
| reporting | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
| Accumulated | | -33,035 | -249,969 | -51,151 | | -334,156 |
| depreciation | | | | | | |
| , | | | | | | |
| amortisation | | | | | | |
| and | | | | | | |
| write-offs | | | | | | |
| 31 Mar | | | | | | |
--------------------------------------------------------------------------------
| Book value | 339 | 74,631 | 1,052,197 | 60,442 | 122,311 | 1,309,919 |
| 31 March | | | | | | |
| 2009 | | | | | | |
--------------------------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT 2010
--------------------------------------------------------------------------------
| EUR 1,000 | Land | Buildin | Vessels | Machiner | Advance | Total |
| | | gs | | y and | payments | |
| | | | | equipmen | & | |
| | | | | t | acquisit | |
| | | | | | ions | |
| | | | | | under | |
| | | | | | constr. | |
--------------------------------------------------------------------------------
| Acquisition | 35 | 78,943 | 1,254,854 | 103,524 | 133,545 | 1,570,900 |
| cost 1 | | | | | | |
| January | | | | | | |
--------------------------------------------------------------------------------
| Exchange rate | | | | 3 | | 3 |
| differences | | | | | | |
--------------------------------------------------------------------------------
| Increases | | | 2,085 | 28 | 2,869 | 4,982 |
--------------------------------------------------------------------------------
| Sales of | | | | | | |
| assets | | | | | | |
--------------------------------------------------------------------------------
| Disposals | | -1,394 | -7 | -202 | | -1,602 |
--------------------------------------------------------------------------------
| Reclassificat | | | | | | |
| ions | | | | | | |
--------------------------------------------------------------------------------
| Acquisition | 35 | 77,549 | 1,256,932 | 103,353 | 136,413 | 1,574,283 |
| cost 31 March | | | | | | |
| 2010 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Accumulated | | -7,676 | -271,610 | -51,557 | | -330,843 |
| depreciation, | | | | | | |
| amortisation | | | | | | |
| and | | | | | | |
| write-offs 1 | | | | | | |
| Jan | | | | | | |
--------------------------------------------------------------------------------
| Exchange rate | | | | -2 | | -2 |
| differences | | | | | | |
--------------------------------------------------------------------------------
| Cumulative | | 1,394 | 7 | 180 | | 1,580 |
| depreciation | | | | | | |
| on | | | | | | |
| reclassificat | | | | | | |
| ions and | | | | | | |
| disposals | | | | | | |
--------------------------------------------------------------------------------
| Cumulative | | | | | | |
| depreciation | | | | | | |
| on sales of | | | | | | |
| assets | | | | | | |
--------------------------------------------------------------------------------
| Depreciation | | -727 | -11,705 | -1,597 | | -14,029 |
| for the | | | | | | |
| reporting | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
| Accumulated | | -7,009 | -283,308 | -52,977 | | -343,294 |
| depreciation, | | | | | | |
| amortisation | | | | | | |
| and | | | | | | |
| write-offs 31 | | | | | | |
| Mar | | | | | | |
--------------------------------------------------------------------------------
| Book value 31 | 35 | 70,540 | 973,624 | 50,376 | 136,413 | 1,230,989 |
| March 2010 | | | | | | |
--------------------------------------------------------------------------------
CONTINGENCIES AND COMMITMENTS
--------------------------------------------------------------------------------
| EUR 1,000 | 31 Mar 2010 | 31 Mar 2009 | 31 Dec 2009 |
--------------------------------------------------------------------------------
| Minimum lease payable in relation | | | |
| to fixed-term leases: | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Vessel leases (Group as lessee): | | | |
--------------------------------------------------------------------------------
| Within 12 months | 34,395 | 61,929 | 39,200 |
--------------------------------------------------------------------------------
| 1-5 years | 35,720 | 73,696 | 42,571 |
--------------------------------------------------------------------------------
| | 70,115 | 135,625 | 81,771 |
--------------------------------------------------------------------------------
| Vessel leases (Group as lessor): | | | |
--------------------------------------------------------------------------------
| Within 12 months | 4,031 | 15,466 | 9,226 |
--------------------------------------------------------------------------------
| 1-5 years | 0 | 501 | 0 |
--------------------------------------------------------------------------------
| | 4,031 | 15,967 | 9,226 |
--------------------------------------------------------------------------------
| Other leases (Group as lessee): | | | |
--------------------------------------------------------------------------------
| Within 12 months | 6,965 | 7,277 | 7,057 |
--------------------------------------------------------------------------------
| 1-5 years | 21,240 | 21,267 | 21,511 |
--------------------------------------------------------------------------------
| After five years | 18,714 | 21,852 | 19,869 |
--------------------------------------------------------------------------------
| | 46,918 | 50,396 | 48,437 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Collateral given | | | |
--------------------------------------------------------------------------------
| Loans secured by mortgages | | | |
--------------------------------------------------------------------------------
| Loans from financial institutions | 736,471 | 758,396 | 699,922 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Vessel mortgages provided as | 1,153,500 | 1,163,500 | 1,153,500 |
| guarantees for the above loans | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other guarantees given on behalf | | | |
| of the Group | | | |
--------------------------------------------------------------------------------
| Collateral | 11 | 19 | 11 |
--------------------------------------------------------------------------------
| Mortgages | 606 | 606 | 606 |
--------------------------------------------------------------------------------
| Other obligations | 122,410 | 122,546 | 120,962 |
--------------------------------------------------------------------------------
| | 123,027 | 123,171 | 121,579 |
--------------------------------------------------------------------------------
| Guarantees given on behalf of | | | |
| subsidiaries | | | |
--------------------------------------------------------------------------------
| Guarantees given on behalf of the | 6,913 | 6,000 | 6,913 |
| subsidiaries | | | |
--------------------------------------------------------------------------------
| | 6,913 | 6,000 | 6,913 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| VAT adjustment liability related | 12,106 | 13,349 | 12,430 |
| to real estate investments | | | |
--------------------------------------------------------------------------------
Open derivative instruments:
--------------------------------------------------------------------------------
| | Fair value | Contract amount |
--------------------------------------------------------------------------------
| 1000 EUR | 31 Mar | 31 Mar | 31 Dec | 31 Mar | 31 Mar | 31 Dec |
| | 2010 | 2009 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Currency | 655 | -169 | -677 | 21,812 | 53,353 | 20,408 |
| forwards | | | | | | |
--------------------------------------------------------------------------------
| Interest | -1,419 | -4,282 | -2,369 | 120,000 | 120,000 | 120,000 |
| rate swaps | | | | | | |
--------------------------------------------------------------------------------
SHARES, MARKET CAPITALISATION AND TRADING INFORMATION
--------------------------------------------------------------------------------
| | 31 March 2010 | 31 March 2009 |
--------------------------------------------------------------------------------
| Number of shares | 46,821,037 | 40,691,958 |
--------------------------------------------------------------------------------
| Market capitalisation, | 351.2 | 212.8 |
| EUR million | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 1 Jan - 31 Mar 2010 | 1 Jan - 31 Mar 2009 |
--------------------------------------------------------------------------------
| Number of shares traded, | 0.6 | 0.4 |
| million | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 1 Jan - 31 Mar 2010 |
--------------------------------------------------------------------------------
| | High | Low | Average | Close |
--------------------------------------------------------------------------------
| Share price | 8.16 | 6.95 | 7.34 | 7.50 |
--------------------------------------------------------------------------------
CALCULATION OF RATIOS
Earnings per share (EPS), EUR * = Result attributable to parent company
shareholders - hybrid bond interest / Weighted average number of outstanding
shares
Shareholders' equity per share, EUR * = Shareholders' equity attributable to
parent company shareholders / Number of shares at the end of period
Gearing, % = Interest-bearing liabilities - cash and bank equivalents /
Shareholders' equity + non-controlling interests x 100
Equity ratio, % = Shareholders' equity + non-controlling interests / Balance
sheet total - received advances x 100
*Key indicators per share have been retroactively adjusted with the share issue
adjustment factor.
Taxes corresponding to the result for the reporting period are presented as
income taxes in the interim report.
RELATED PARTY TRANSACTIONS
During the first quarter the group continued the sublet of two ro-ro vessels to
Grimaldi Group based on the contract signed in 2009. These were redelivered in
the first quarter 2010 and at the beginning of the second quarter 2010.
Otherwise there were no material related party transactions during the reporting
period.
REPORTING AND ACCOUNTING POLICIES
This interim report is prepared in accordance with IAS 34 (Interim Financial
Reporting) using the same accounting policies and methods as in the annual
financial statements for 2009. All figures in the accounts have been rounded
and consequently the sum of individual figures can deviate from the presented
sum figure.
The preparation of the financial statements in accordance with IFRS requires
management to make estimates and assumptions 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.