A/S Storebælt. Interim report. for the period 1 January - 30 September The interim report comprises: A/S Storebælt, CVR no.

Transcription

1 A/S Storebælt Interim report for the period The interim report comprises: A/S Storebælt, CVR no \\Sv-data2-hals\transfer\Aarsrapport alle selskaber\kvd 3_UK.xlsx Page 1/11

2 R E S U M É Financial results (figures for the corresponding period in are given in parenthesis). Road revenue: DKK 2,205 million (DKK 2,116 million). Compared to, road revenue from Storebælt increased by 4.2 per cent. The revenue increase can primarily be explained by traffic growth of 4.5 per cent Revenue from the railway; DKK 444 million (DKK 590 million). The fall in revenue is due to the annual reduction of DKK 200 million ( price level) in the rail fee for Storebælt under the Danish government s growth package as adopted by the Danish parliament in. Operating expenses: DKK 328 million (DKK 337 million). Depreciation: DKK 397 million (DKK 398 million). EBIT DKK 1,968 million (DKK 2,015 million). Interest expenses DKK 402 million (DKK 440 million). Value adjustments: income DKK 297 million (expense DKK 777 million).this includes the fair value adjustment of net financials at an income of DKK 304 million, which is an accounting item with no effect on the company s debt reduction. The result before value adjustments and tax is a profit of DKK 1,566 million (profit DKK 1,575 million). Tax constitutes an expense of DKK 410 million (expense DKK 176 million). As regards the tax expense for the period, a tax income of DKK 28 million has been offset, which relates to an adjustment of the Group s tax asset as a result of the reduction in the corporation tax rate. The result after tax is a profit of DKK 1,453 million (profit DKK 623 million). Cash flow Cash flow from operating and investing activities (free cash flow) resulted in a net rise in liquidity of DKK 1,768 million. Cash flow from financing activities has resulted in a net fall in liquidity of DKK 1,529 million whereby A/S Storebælt s cash at bank and in hand for the period saw a net rise of DKK 239 million. Outlook for The outlook before financial value adjustments and tax is upgraded by DKK 100 million to a profit of approximately DKK 1,960 million. Page 2/11

3 COMPREHENSIVE INCOME STATEMENT 1 July - 1 July - (DKK million) Revenue - road 2, , ,784.9 Revenue - railway Other income Total income 2, , ,634.4 Operating expenses Depreciation EBIT 1, , ,637.7 Interest expenses Profit before value adjustment 1, , ,057.0 Value adjustments Profit before tax 1, ,262.0 Tax Profit after tax 1, Page 3/11

4 ASSETS 31 December (DKK million) Non-current assets Fixed assets Road link 14, , ,437.7 Rail link 12, , ,088.3 Port facilities Wind turbine facilities Total road and rail links, port and wind turbine facilities 27, , ,103.6 Other property, plant and equipment/intangible fixed assets Total property, plant and equipment 27, , ,229.1 Other non-current assets Total non-current assets 27, , ,446.9 Current assets Receivables 4, , ,809.1 Cash at bank and in hand , Total current assets 4, , ,872.4 Total assets 32, , ,319.3 EQUITY AND LIABILITIES Equity Share capital Retained earnings at the beginning of the period 1, , ,753.0 Profit for the period 1, Proposed dividend Dividend Total equity 2, , ,830.7 Liabilities Non-current liabilities 22, , ,049.1 Current liabilities 7, , ,439.5 Total liabilities 29, , ,488.6 Total equity and liabilities 32, , ,319.3 Page 4/11

5 CASH FLOW STATEMENT (DKK million) Cash flow from operating activities Profit before net financials 1, , ,637.7 Adjustment for non-cash items Amortisation, depreciation and impairment Adjustment for other non-cash items Cash flow from operations (operating activity) before change in working capital 2, , ,693.0 Change in working capital Receivables, prepayments and accrued income Creditors and other liabilities Total cash flow from operating activities 1, , ,987.2 Cash flow from investing activities Purchase of facility Total cash flow from investing activities Free cash flow 1, ,858.9 Cash flow from financing activities Raising of loans , ,732.5 Reduction of liabilities net -1, , ,392.6 Interest paid Interest received Paid dividend to shareholder Total cash flow from financing activities -1, , ,279.4 Change for the period in cash at bank and in hand Cash at bank and in hand at the beginning of the period Cash at bank and in hand at the end of the period ,145.8 Cash at bank and in hand at the end of the period is composed as follows: Cash at bank and in hand Securities and fixed term deposit accounts Total cash at bank and in hand at the end of the period ,145.8 Page 5/11

6 MAIN FIGURES (DKK million) Q3 Q3 Net turnover 2, , ,634.4 EBIT 1, , ,637.7 Net financials before value adjustment 1, , Value adjustments net Profit before tax 1, ,262.0 Total assets 32, , , , ,787.4 Equity 2, , , , ,143.7 FINANCIAL RATIOS Q3 Q3 Per cent Profit ratio (EBIT) 73.1% 73.3% 75.6% 75.2% 72.6% Rate of return (EBIT) 8.1% 8.1% 3.0% 3.0% 8.1% Return on facility (EBIT) 9.5% 9.6% 3.5% 3.5% 9.4% Page 6/11

7 Developments over the period EBIT for the period shows a profit of DKK 1,968 million, which is DKK 47 million lower than the corresponding period in. Turnover from the road link across Storebælt totals DKK 2,205 million and increased by DKK 90 million, corresponding to 4.2 per cent compared to the same period in. The higher turnover can primarily be accounted for by a rise in traffic of 4.5 per cent while a smaller percentage can be attributed to the rise in toll charges on 1 January. Passenger car traffic increased by 4.8 per cent, lorry traffic by 1.4 per cent and coach traffic by 47.6 per cent. The very large percentage increase in coach traffic is due to a general rise in the number of scheduled services. Turnover from the rail link fell from DKK 590 million for the same period in to DKK 444 million, which relates to the aforementioned reduction of the rail fee. Operating expenses and depreciation are DKK 11 million net lower than for the same period in. Interest expenses total DKK 402 million, which is DKK 38 million less than in. The lower interest expenses are related primarily to the lower inflation in the period. The result before value adjustments and tax for the period shows a profit of DKK 1,566 million against a profit in of DKK 1,575 million. The value adjustments of net financials amount to an income of DKK 297 million. For the same period in, value adjustments amounted to an expense of DKK 777 million. The value adjustments include a positive fair value adjustment of DKK 304 million. This is an accounting item with no effect on the company's repayment ability. Tax for the period represents a net expense of DKK 410 million of which an income of DKK 28 million relates to an adjustment of the company s tax assets as a result of the reduction in the corporation tax rate. The result after tax is a profit of DKK 1,453 million. The result for the corresponding period in showed a profit of DKK 623 million. Compared to the same period in, the result after tax is positively affected by accounting adjustments of approx. DKK 815 million in the form of value adjustments of net financials. Financing expenses excluding value adjustments total 2.16 per cent per annum against 2.29 per cent per annum for the same period last year. Including value adjustments, financing expenses total 0.88 per cent per annum compared to 5.53 per cent per annum for the same period in. The Danish government s budget proposal for 2016 includes proposals that Banedanmark s payment to A/S Storebælt for use of the railway across the Storebælt link be reduced by approximately DKK 230 million. Furthermore, the rail fee to A/S Storebælt will be made dependent on the number of passengers on the railway section. In addition to the reduction of the rail fee to A/S Storebælt, it is also proposed that the price of a commuter card across the Storebælt link be reduced whereby revenues from road traffic in 2016 will be reduced by approximately DKK 50 million. Page 7/11

8 Outlook for The result before financial value adjustment and tax is upgraded by DKK 100 million. This is primarily due to higher revenue from road traffic and lower financial expenses resulting from a lower-than-expected inflation level. The annual result before financial value adjustments and tax is thus expected to amount to a profit of approximately DKK 1,960 million. Equity development (DKK million) 31 December Share capital Equity at the beginning of the period 2, , ,108.0 Profit/loss for the period 1, Proposed dividend Paid dividend Equity at the end of the period 2, , ,830.7 Equity is positive at DKK 2.7 billion. Equity movements for the period relate in part to the result for the period 1 January to and in part to the dividend payment of DKK 900 million, which was adopted at the company s Annual General Meeting on 16 April. The repayment period for the company s debt is estimated at 31 years from the time of the opening of the Storebælt link, which corresponds to If the Danish parliament adopts the aforementioned budget proposal for 2016 relating to a reduction in Banedanmark s rail fee for use of the railway across the Storebælt link as well as a significant reduction for commuters across the Storebælt Bridge, the repayment period for the company s debt will be negatively affected by approximately 1.5 years. The effect hereof will, however, be annulled by other effects whereby the net repayment period will not be changed. A/S Storebælt s interest-bearing net debt totals 23.1 billion at the end of September. Future operating results are estimated on the basis of the fixed fee from Banedanmark for use of the rail link as determined by the Minister of Transport and Building and the road traffic forecasts for the company. It should be noted that under the terms of the Act on Sund & Bælt Holding A/S for the parent company and i.a. A/S Storebælt, the Danish State has extended separate guarantees for interest and repayments and other ongoing liabilities relating to the company s loans against payment of a guarantee commission of 0.15 per cent. Moreover, and without further notification of each individual case, the Danish State guarantees the company s other financial liabilities. ACCOUNTING POLICIES The interim report is presented in accordance with IAS 34 provisions. The accounting policies conform to those used in the Annual Report. EVENTS AFTER THE BALANCE SHEET DATE No events have occurred after the balance sheet date that could affect these accounts. Page 8/11

9 OWNERSHIP The entire share capital of A/S Storebælt is held by Sund & Bælt Holding A/S, which is owned by the Danish State. AUDITOR S STATEMENT No audit or review of the interim report has been carried out. Page 9/11

10 STATEMENT BY THE BOARD OF DIRECTORS AND MANAGEMENT BOARD The Board of Directors and Management Board of A/S Storebælt have today discussed and approved the interim report for the period 1 January to. The interim report, which has not been audited by the companies auditors, has been prepared in accordance with IAS 34 Presentation of Interim Reports as approved by the EU and additional Danish disclosure requirements for interim reports for companies with publicly traded debt instruments. It is our view that the interim report provides a true and fair view of the Group s assets, liabilities and financial position at and the results of the Group s activities and cash flow for the period 1 January. It is our view the Management Report contains a true and fair view of developments in the Group s activities and financial position, the results for the period and the Group s financial position as a whole and a description of the key risks and uncertainties facing the Group. Copenhagen, Management Board Leo Larsen, CEO Board of Directors Henning Kruse Petersen, Chairman Carsten Koch, Vice-Chairman Pernille Sams Mette Boye Walter Christophersen Claus Jensen Page 10/11

11 APPENDIX 1 FINANCIAL RATIOS The financial ratios have been prepared in accordance with the Danish Society of Financial Analysts "Recommendations and Key Figures ". The financial ratios given in the main figures and financial ratios summary have been calculated as follows: Profit ratio: Rate of return: Return on facilities: EBIT less other income in percentage of turnover. EBIT less other income in percentage of total assets EBIT less other income in percentage of investment in road and rail links. Page 11/11