Copenhagen Malmö Port Annual Report 2007 your logistics partner
Svanemøllehavnen Kalkbrænderihavnen Fisker Færgehavn Nord Copenhagen Nordbassinet Orientbassinet Frihavnen Kronløbsbassinet DFDS Terminal Sdr. Frihavn Langelinie Yderhavnen Nordhavnen Ndr.Toldbod Lynettehavnen Trekroner Inderhavnen Christiansholm Refshaleøen Amagerværket Øresund Prøvestenen Ocean Pier Prøvestenshavnen Containers Ro-ro Cars/PDI General cargo Liquid bulk Dry bulk Passengers Logistics The distance between the two ports is approx. 14 nautical miles or 26 km. a n n u a l r e p o r t 2 0 0 7
The Gateway to the Baltic Sea Region ihavn Vision: CMP aims to be a leading, innovative and customer-oriented port and terminal operator. Founded: 2001, following the merger of the port and terminal activities in Copenhagen and Malmö Port. Business concept: CMP sells port, terminal and transport services. Market position: CMP is one of the biggest port and terminal operators in the whole Nordic Region; one of the largest North European cruise ship ports; and occupies a key position in the Baltic Sea Region for the distribution of cars and transit oil. CMP supplies the Øresund Region with consumer and bulk goods. Competitive advantages: The Øresund Region can be covered from one port CMP. This offers benefits in terms of economies of scale and lower costs. CMP provides access to an infrastructure that ensures goods are processed quickly and safely. CMP is situated close to both Copenhagen Airport and a well-developed network of motorways and railway connections. Four million relatively affluent consumers live in the immediate vicinity of the port. The Baltic Sea Region is home to some 100 million consumers. Clients: The biggest customers include the container-shipping company Unifeeder, the ro-ro company Rederi AB Nordö-Link, the oil companies STS and Oiltanking, the steel producer Acerinox Scandinavia, the car company Toyota and the freight- and passengershipping company DFDS. Biggest investments: The DFDS Terminal in Copenhagen (2004): SEK 420 million. The car terminal Nordic Hub (2003): SEK 220 million. Major investments in the near future will include establishing new ro-ro facilities and a new container terminal in Malmö, and building new quays for cruise ships, etc. in Copenhagen. Social benefits: CMP is the major port in the Øresund Region and meets demands for the transport of consumer goods, new cars, aviation fuel, building materials, etc. Cruise ships bring approximately SEK 800 million into the regional economy. CMP is a dynamic workplace. In partnership with the international automobile industry, it has created 500 new jobs since 2003. Owners: Port & City Development Corporation I/S (50%) and Malmö Hamn AB (50%). The Port & City Development Corporation I/S is owned by the City of Copenhagen (55%) and the Danish state (45%). Malmö Hamn AB is owned by the City of Malmö (55%) and private investors (45%). Number of employees: 490 (473 in 2006). Swede Harbour Norra Hamnen Oljehamnen Sega å Centralhamnsrännan Industrihamnsrännan Mellersta Hamnen Industrihamnen Östra Hamnen Frihamnen Frihamnen Västra Hamnen Nyhamnen Inre Hamnen Malmö a n n u a l r e p o r t 2 0 0 7
Achievements in 2007 Progress in all business areas Best cruise-ship season in CMP s history New clients two new car brands Contract signed for major cement terminal to be operational in 2010 New piers at the oil terminals, and widening of a fairway Performance since 2001 Established a position as: The biggest and most important port in the Øresund Region A Scandinavian and Baltic Sea hub for new cars The Northern European centre for cruise ships An international hub for transit oil Targets Minimum growth in net sales and profit of 50% compared to 2005 Opening of the new ferry, containers and combi-terminal in Malmö First tenants to move into the logistics park in Malmö Opening of new cruise-ship quays in Copenhagen Opening of new bulk areas at Prøvestenen in Copenhagen Contents Summary Chief Executive s review Financial performance 2007 Cargo volumes 3 4 6 7 Business areas: Status and perspectives 8 Cruise ships, passengers and passenger vehicles, new cars, containers, logistics, liquid bulk, dry bulk and ro-ro Themes: Investments in liquid bulk Investments in dry bulk Future investments Nordhavnen (North Harbour), Copenhagen Future investments Norra Hamnen (North Harbour), Malmö Distribution from CMP 12 13 14 15 16 Board and management Management report Financial report Balance sheet Cash-flow statement Additional information Audit report 18 21 23 24 26 27 31
Summary Net sales SEK mill. 800 700 600 500 400 300 200 100 0 Net profit SEK mill. 160 140 120 100 80 60 40 20 0 Cargo volumes Tonnes mill. 20 15 10 5 0 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 a n n u a l r e p o r t 2 0 0 7
Chief Executive s Review Prepared for continued growth According to the bottom line, 2007 was yet another good year for CMP in terms of both net sales and profits. Volumes and profits were up in all business areas. Since it was founded in 2001, CMP has consistently continued to develop, grow and generate new jobs. Total cargo volumes have risen by 5 million tonnes, almost 40%. Turnover has increased by SEK 269 million, or almost 60%. In addition, annual growth in volumes and sales in recent years has been around 10%. However, based on the current macro-economic outlook, we cannot expect to maintain growth rates of 10% p.a. over the next few years. On the other hand, although more subdued growth is likely, negative trends are not expected. Russia continues to be a powerful force for growth in the Baltic Sea Region, and the Øresund Region is a large and affluent market. Higher volumes will remain our goal over the next few years, and we foresee realistic growth potential in all business areas. CMP s infrastructure is absolutely crucial, both for existing clients looking to expand their businesses and for new clients who want to establish themselves in the Øresund Region. Our customers are deeply and actively involved in the infrastructure s long- and short-term development potential. Our framework conditions determine to a great extent our ability to develop as a port and terminal operator. We are highly conscious of the fact that we face diligent competitors in the Baltic Sea Region success today is no guarantee of success tomorrow. CMP will not be able to cope with future progress without farreaching changes to our production apparatus. We need more space for the business area cars, new quays for cruise ships and greater space for bulk. Guaranteeing opportunities for growth over the next few years is CMP s most important strategic challenge. We are therefore engaged in close and highly constructive dialogue with the port owners from whom we lease land on both sides of the Sound. We have pursued a dual business strategy over the years: to service the Øresund Region, of which we are a part, and also to make the most of the potential in the Baltic Sea market. Both aspects have to a great extent borne fruit. CMP is not only responsible for direct supplies to our region, but now also plays an important international role in cruise ships, the distribution of cars and trans-shipments of transit oil. It has also become evident that regional and international activities underpin each other, and to a certain extent are prerequisites for one another. For example, in order to effectively handle oil in transit, the oil terminals require an infrastructure that will also benefit regional stakeholders. In the final analysis, our investments in new piers, the dredging of fairways, etc., have resulted in shorter turnaround times for all of our oil customers. a n n u a l r e p o r t 2 0 0 7
Together with the port owner in Copenhagen (Port & City Development Corporation) we are considering the establishment of new cruise-ship quays. In the course of 2008, we will also conclude negotiations about new bulk areas at Prøvestenen, which will generate excellent development potential from 2009 onwards. Finally, we are also currently discussing the location of a long-term site for the vehicle and container terminals. In Malmö, discussions about the establishment of new port facilities in Norra Hamnen are expected to reach a positive outcome in the first half of 2008. The negotiations with the port owner, the City of Malmö, concern the relocation of the current cargo-ferry and container terminal to Norra Hamnen and, as a direct extension of this, the establishment of a combi-terminal for rail freight. Concentrating these terminals in Norra Hamnen will create absolutely ideal preconditions for transfers between ships, lorries and rail, and will generate ideal opportunities for logistics and distribution. This will enable CMP and the Øresund Region to take a new great leap forward. At the same time, the space generated by the moving of the current terminals can be utilised by the expanding business area: cars. In order to ensure that cargo volumes in our port facilities and terminals become more efficient and are increased wherever possible over the next few years, we will not only be working on generating the necessary capacity through new infrastructure, but we will also cooporate with other port and terminal operators in the Baltic Sea Region. The purpose of this co-operation is to prevent bottlenecks and enable our customers to despatch greater volumes to their consumers on time. A modern logistics chain is never stronger than its weakest link, and as bigger hub systems continue to develop, it will be necessary for all the links in a transport chain to work together. I have every confidence that we will find solutions to the major challenges we face. I base this optimism on the positive co-operation we already enjoy with our clients and partners. In addition, my optimism is also based on our staff s commitment, job satisfaction and pride in their work. We are well prepared to face the future. Copenhagen, March 2008 Lars Karlsson Managing Director a n n u a l r e p o r t 2 0 0 7
F i n a n c i a l p e r f o r m a n c e 2 0 0 7 Focus on investments Financial strength for large-scale investments Key data for Copenhagen Malmö Port 2003 2004 2005 2006 2007 Net sales (SEK millions) 510 546 603 649 733 Profit after financial items (SEK millions) 31 35 80 93 146 Net profit (SEK millions) 17 17 27 38 82 Equity (adjusted) (SEK millions) 151 162 217 259 360 Balance sheet total (SEK millions) 255 288 431 425 528 Net margin (%) (profit after financial items/net sales) 6 7 13 14 20 Solidity (adjusted) (%) 59 56 50 61 68 Profit/equity ratio (%) 22 23 42 39 47 Net sales per employee (SEK 1,000) 1,094 1,179 1,302 1,372 1,497 Number of employees 466 462 463 473 490 CMP made a pre-tax profit of SEK 146 million in 2007, an increase of 57% from SEK 93 million the previous year. Net sales rose by 13% to SEK 733 million. Profits this year were primarily derived from progress in passenger numbers and from cargo volumes in all business areas. Higher volumes have had a satisfactory impact on the bottom line. The utilisation of machines and systems has also improved, as has productivity. CMP is close to maximising its utilisation of existing capacity. Therefore, in order to maintain and enhance current profit levels, it will soon be necessary to invest significant amounts in the existing terminals and in new facilities. As a result, CMP is planning wide-ranging new investments over the next few years. CMP continues to work on making all business areas profitable in their own right, and expects to reach this target before the end of 2010. CMP expects less rapid, but still positive, macro-economic trends in 2008. The annual profit for 2008 is expected to be of the same order as 2007. The human factor The members of staff are any given company's greatest asset, and this is particularly true of CMP. In addition to supplementary training, all members of staff took part in the Vision 2010 project in 2007, the goal of which was to communicate plans for the company s future and improve dialogue between staff and management. The members of staff were brought together for a four-part sequence of events: 1. Know your company 2. Greater profitability 3. Customer interaction 4. CMP s business plan 2010 The dialogue project will continue in 2008. a n n u a l r e p o r t 2 0 0 7
c a r g o v o l u m e s Progress in all products For the second year in a row, CMP cargo volumes rose by 10% Progress in cargo and passenger numbers benefited all business areas. A significant proportion of this progress can be attributed to increased economic activity in the Øresund Region and in Russia. Economic activity in the region in 2007 was reflected in a 10% growth in container volumes, particularly in consumer goods from the Far East. Major construction activity, especially work on the City Tunnel in Malmö, contributed to increased volumes of traditional bulk products. CMP processed over half a million new cars in 2007 a growth of 18%. A significant part of the turnover was due to cars in transit to the Russian market. Oil turnover rose by 1 million tonnes or 17%, and much of this rise can be attributed to Russian transit oil. Regional volumes remained stable. The number of cruise passengers rose by 11% to 509,000, while other forms of passenger transport increased by 3%. The shipping company AB Nordö-Link substantially increased its ro-ro capacity, which is an important competitive parameter, by replacing four vessels on the Malmö Travemünde route. DFDS will increase its ro-ro capacity between Copenhagen and Klaipeda in 2008 by deploying a newbuilding on the route. CMP expects some growth in the business areas cruise ships, containers, ro-ro and oil in 2008, and less rapid growth in its other areas. CMP cargo volumes 2003 07 Mill. tonnes 2003 2004 2005 2006 2007 liquid bulk 6.6 5.7 6.1 6.2 7.2 Dry bulk 3.1 3.3 3.2 3.4 3.7 other cargo 5.1 5.8 5.9 7.0 7.4 total cargo volumes 14.8 14.8 15.2 16.6 18.3 a n n u a l r e p o r t 2 0 0 7
b u s i n e s s a r e a s Business areas status and perspectives Cruise ships The number of passengers rose by 11% to 509,000, of which the number of passengers involved in turnarounds (i.e. cruise ships changing passengers in Copenhagen) rose by 12% to 293,000, spread among 116 calls. Roughly one in four visitors to Copenhagen arrives in the city by sea, and half of all turnarounds in the Baltic Sea Region are now made at CMP. Three Christmas cruises demonstrated the potential for extending the main cruise-ship season. Copenhagen was named Europe's Leading Cruise Destination for the fourth time at the World Travel Awards. In Malmö, a new cruise ship quay was brought into use in 2007, and the target is 10 calls per season. The cruise-ship market still has great passenger potential, and the Baltic Sea Region does well in competition with Alaska and the Mediterranean, which share the same season. So far, 320 calls have been booked for 2008, of which 130 will be turnarounds. A total of 600,000 passengers by season 2010 is still considered a reasonable expectation. However, a precondition for this is that CMP is continually able to provide the facilities that the industry demands. The current quay options must therefore be exploited intensively over the next few years until new quays in Copenhagen (800 metres) are ready for use, hopefully in season 2011. Cruise ships. Passengers 2003 07 (thousands)* 2003 2004 2005 2006 2007 268 362 428 458 509 Cruise ships. Tonnage 2003 07 (millions of gross tonnes) 2003 2004 2005 2006 2007 8.5 10.0 12.5 13.2 14.2 *These figures include arriving passengers as well as new boarding passengers. Passengers and passenger vehicles The passenger area recorded growth of 3% in 2007, corresponding to 858,000 passengers. DFDS continued its intensive product development of the Copenhagen Oslo route as a mini-cruise. Polferries Copenhagen Swinoujscie route also noted progress. In 2007, the shipping company Nordö-Link replaced all its tonnage with new vessels also suitable for travellers with caravans and passenger vehicles. CMP will encourage shipping companies to take initiatives to establish new east west passenger routes in the Baltic Sea. The relocation of the current Malmö ferry traffic to Norra Hamnen will provide an ideal base for new routes. Passengers 2003 07 (millions) Cars 2003 2004 2005 2006 2007 1.2 1.2 0.9 0.8 0.9 Car turnover rose by 18%, with the number of cars processed reaching a total of half a million. In other words, volume targets that were previously not expected to be reached until the end of 2010 have now been achieved. Fiat and Alfa Romeo were added as new clients in 2007. Through utilising a landfill site in Malmö s Frihamnsbassin and by relocating an oil facility, CMP also freed up space that can be redeployed for storage of cars. CMP has developed into the biggest port in the Nordic Region for car imports and for cars in transit, but new business opportunities still exist. However, this area is subject to fierce competition from other Northern European ports, as the handling of cars is no longer restricted to local or national markets. Several automobile manufacturers and major international car logistics companies are currently analysing how they will organise their future distribution in the Nordic and Baltic Sea regions. Vacant land is a key factor in both developing existing customers and establishing new ones. New cars by ship and rail 2003 07 (thousands) 2003 2004 2005 2006 2007 By ship 139 246 295 382 447 By rail 22 47 50 58 71 total 161 293 345 440 518 Containers Turnover of containers rose by 10% to 192,000 TEUs, which is on a par with the general market trend. This positive development is due to higher imports of consumer goods into the Øresund Region, as well as the general trend towards more and more goods being handled in containers (the number of containers processed has doubled in a decade). CMP is still working to improve its a n n u a l r e p o r t 2 0 0 7
b u s i n e s s a r e a s administrative routines, part of which includes a new IT system in Malmö that is expected to go live in 2008. This will enable customers to book containers online, as already happens in Copenhagen. Although the growth in containers helped to improve profits in this area, access conditions, particularly in Copenhagen, must be improved if CMP is to continue to be able to cope with higher volumes in the future. A new road connecting to the motorway network will be completed in 2014, and will help to significantly improve the flow of traffic to and from the port. Containers 2003-07 (thousand TEUs) 2003 2004 2005 2006 2007 135 144 155 175 192 Logistics The logistics area has undergone a comprehensive structural change. In 2007, volumes of stainless steel increased, and projectcargo volumes were also satisfactory, for example, a new segment was added at the end of the year in the form of citrus fruit from Morocco. The main objective is to attract long-term clients who will utilise CMP s services for distribution in the Baltic Sea Region. To this end, CMP is running a marketing campaign designed to encourage more clients to use cargo-ferry routes within the car and ro-ro areas. The long-term strategy for logistics is closely linked to the establishment of a distribution park in Norra Hamnen in Malmö, which will enable CMP to assist customers with everything from leasing terminals to integrated inter-modal cargo handling. a n n u a l r e p o r t 2 0 0 7
b u s i n e s s a r e a s Liquid bulk Volumes of liquid bulk rose by 17% compared with the previous year, reaching a total of 7.2 million tonnes. The volume of oil on the regional market was stable, while transit oil was an area of particular growth. In 2007, CMP widened the fairway to the oil terminal in Malmö and established two new piers: one in Malmö, one in Copenhagen. The two new piers were necessary in order to accommodate more and bigger ships. CMP s strength on the oil market is based on terminals with good water depth on both sides of the Sound, as well as on operators with major storage capacity. Tank capacity is a primary consideration on the transit market, in which both terminals are actively involved. Liquid bulk (millions of tonnes) 2003 2004 2005 2006 2007 6.6 5.7 6.1 6.2 7.2 Dry bulk The volume of dry bulk rose by 8% in 2007, largely due to higher imports of fuels to the Amager Værket in Copenhagen, and largescale construction activity in the region (e.g. the City Tunnel in Malmö). The latter is reflected in, for example, increased volumes of bulk materials such as stone, gravel and sand. Increased activity also led bulk customers to establish new facilities, providing new work for CMP's staff. Large-scale construction activity in the Øresund Region is sensitive to changes in market conditions and the economic climate. However, the trend in commercial building is still positive for example, over the next couple of years, construction work will begin on a new stage of the Metro in Copenhagen. Consequently, CMP believes that there is a market for the continued expansion of bulk activities. Current planning work is looking in greater depth at the infrastructure for the new bulk areas at Prøvestenen in Copenhagen, which are expected to be taken into use in the next few years. Ro-ro Ro-ro traffic rose by 4% in 2007 compared with the previous year. The largest operator, the Finnlines company Nordö-Link, renewed its tonnage with two refurbished vessels and two newbuildings. The new tonnage provides 70% greater lane-metre capacity, which is an important competitive parameter in the fierce market for traffic between southern Sweden and the Continent. Another positive aspect in 2007 was higher volumes at CMP s Malmö combiterminal, where trailers and containers are loaded onto railway carriages. Activity has been steadily increasing over the past few years, and the terminal now processes goods five days a week. In 2007, DFDS decided to deploy a newbuilding on the Copenhagen Klaipeda route at the start of 2008, increasing the lane-metre capacity by some 20%. Relocation of ferry traffic from Nyhamnen to Norra Hamnen, Malmö, will produce ideal conditions in terms of terminal facilities and motorway access. The new terminal area will offer opportunities for increasing ro-ro traffic to the Baltic Sea Region, and will improve CMP and the Øresund Region s position in the East West traffic corridor. Dry bulk (millions of tonnes) 2003 2004 2005 2006 2007 3.1 3.3 3.2 3.4 3.7 Ro-ro (thousands of units) 2003 2004 2005 2006 2007 202 240 249 294 305 10 a n n u a l r e p o r t 2 0 0 7
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T h e m e : I n v e s t m e n t s i n l i q u i d b u l k All set for bigger tankers The fairway to the oil terminal in Malmö has been widened, and the terminal in Copenhagen now has an extra pier In 2007, the fairway to the oil terminal in Malmö was widened to 162 metres, enabling larger vessels with a breadth of up to 45 metres to dock. By comparison, the maximum width of ships in the Panama Canal is 32 metres. The widening of the seaward approach is an advantage for all tankers calling at Malmö, regardless of size. The wider approach reduces dependence on currents and weather conditions and cuts turnaround times. It also provides opportunities for larger tankers to dock when transit oil is being transferred and bigger ships means better profitability. The project cost was SEK 50 million and was carried out in collaboration with the Swedish Maritime Administration. Both the Malmö and Copenhagen terminals have become important trans-shipment ports for transit oil on its way from Russia. New pier for tankers The new pier at Prøvestenen in Copenhagen came into use during summer 2007. The draught at the new pier is 11.5 metres, and the pier takes tankers of up to 180 metres. The largest tankers, with loads of up to 70,000 tonnes or 100,000 DWT, will still use the Ocean Pier. The expansion means that oil can now be unloaded at two quays simultaneously. This will lead to shorter turnaround times and provide greater certainty when planning and timing calls. CMP has invested SEK 16 million in the new pier, and the terminal s oil operators invested in extending pipelines out to the pier. Depots in new setting Nynäs brought its new depots in CMP s oil terminal in Malmö into use on 1 May 2007. The new depots mean that the total storage capacity of the oil port is 34,000 cubic metres. The facility also includes a new pier. The depot supplies bitumen, which is used on roads and in other coverings, as well as special products for bridge and roof construction. Nynäs previously had a facility in Frihamnen. 12 a n n u a l r e p o r t 2 0 0 7
T h e m e : I n v e s t m e n t s i n d r y b u l k Bulk of all types New companies and facilities Two new cement and concrete plants have opened, a third is on the way, and a major Danish recycling company now operates on both sides of the Sound. CMP has been improving its bulk infrastructure in recent years. At Prøvestenen in Copenhagen, 650 metres of quays and an area of 18 hectares will be ready for use in 2009. Both existing and potential clients have already shown major interest in the new area. Industrihamnsrännan in Malmö provides good quay and support conditions for bulk activities. Cementa opens new facility In 2010, Cementa will move from Limhamn to a newly built distribution unit in Norra Hamnen, Malmö. Construction work will begin in 2009. The new facility will occupy 25,000 square metres of land, and represents an investment by Cementa of several hundred million SEK. CMP is investing a total of SEK 50 million in the project, which includes 250 metres of quays with a water depth of nine metres, and associated railway tracks. The new facility will enable Cementa to unload cement from the quay and distribute it to the south of Sweden by rail. The present terminal at Limhamn is one of Cementa s biggest in Sweden. Danish recycling in Malmö The H.J. Hansen recycling company, which has been represented at CMP in Copenhagen for many years, set up a second base of operations in Malmö s bulk harbour at the end of 2006, leasing 8,500 square metres with direct access to the quays. The company set up in Malmö because of the harbour s good quay conditions and its ease of access to the railway and motorway networks. H.J. Hansen previously transported scrap metal and other recycling materials by ship from Landskrona and by truck to Sealand, Denmark. Aalborg Portland in new setting Aalborg Portland opened its new facility at Prøvestenen in Copenhagen at the end of 2006. The facility comprises two silos, an office and chauffeur facilities, and replaces the company s former facilities in the North Harbour and South Harbour. The facility, which supplies East Sealand, represents an investment of SEK 110 million. Ships calling at the quay utilise a specially installed pipe to pump cement into the terminal s 50-metrehigh silos. More and more concrete Sydsten opened a concrete factory in Malmö s North Harbour in 2006. The facility produces concrete, particularly for use on the City Tunnel construction project, and receives raw materials across the quays. The City Tunnel is expected to use more than 400,000 cubic metres of concrete for its two tunnels, the stations, bridges and ramps more than was used in the Øresund Bridge. a n n u a l r e p o r t 2 0 0 7 13
T h e m e : F u t u r e i n v e s t m e n t s N o r d h a v n e n, C o p e n h a g e n More room for cruise ships The port owner and CMP are planning new cruise-ship quays in Nordhavnen The east side of Copenhagen s Nordhavn will in future be the main quay for cruise ships changing passengers in Copenhagen. CMP and the port owner, the Port & City Development Corporation are considering building new quays. The plan is to construct 800 metres of new quays out towards Kronløbet the seaward approach to Copenhagen. This will enable three large cruise ships to dock at the same time. The new quays will enhance CMP s potential as a home port for cruise ships. At present, over half of the turnarounds in the Baltic Sea Region take place in Copenhagen. The new cruise-ship area will be purpose-built, complete with facilities for passengers and baggage-handling. Every third cruise ship uses CMP as turnaround port resulting in 300,000 turnaround passengers. The total number of passengers i 2007 was half a million. CMP expects a total of 600,000 passengers in the 2010 season. An extra quay in the Freeport will be used until the new quays come into use. Following the completion of the extension, cruise ships in transit will be able to call at the current cruise-ship quay at the Frihavn terminal. The same applies to the quays at Langelinie and Ndr. Toldbod. Discussions about port planning CMP and the port owner in Copenhagen are discussing the future location of the vehicle and container terminals in the city over a time frame of 10 15 years. The discussions include a proposal to place the two terminals on new landfill sites in the north-eastern part of the Nordhavnen, as an extension of the planned cruise-ship quays. Environmental concerns and current plans to build homes and offices in the southern part of the Nordhavnen underpin the discussions. The car and container terminals currently cover some 300,000 square metres. 14 a n n u a l r e p o r t 2 0 0 7
T h e m e : F u t u r e i n v e s t m e n t s N o r r a H a m n e n, M a l m ö All forms of transport converge in the Norra Hamnen Malmö s Norra Hamn aims to provide ideal conditions for trans-shipment between ship, train and truck First, the Malmö Travemünde cargo-ferry routes will move from the city-centre Nyhamnen Terminal to Norra Hamnen. Then a combi-terminal for the trans-shipment of cargo from ferries to railways will be established. The third phase will see the container terminal move from Frihamnen to Norra Hamnen. The end result will provide ideal conditions for trans-shipment between the three forms of transport. The three new terminals will be state-of-the-art. Traffic to Germany will have adequate loading and unloading space for the first time, trucks will have direct access to the motorway network, and ferries to Malmö will benefit from a shorter voyage time. In Norra Hamnen, a new 3/4-million-square-metre area will be put at the disposal of transport and distribution companies, offering direct access to all three forms of transport. The plans for Norra Hamn also entail a number of positive sideeffects. When the container terminal moves from Frihamnen, the vacated ground will function as loading and unloading space for companies that use Malmö as the starting point for car distribution in the Baltic Region. CMP aims to move the ferry, combi and container terminals in 2010, at a total cost of approximately SEK 500 million. Further expenses will be incurred in establishing new roads, tracks, etc., in the area. Awaiting approval The land in Norra Hamn is owned by the City of Malmö, and CMP has been working closely with the local authority on the plans for this area for several years. The port facilities here are already incorporated into the local authority s over-arching development plans. The City of Malmö council is expected in the first half of 2008 to reach a decision about the project s future and timetable. In the middle of 2008 the Environmental Court is expected to reach its decision on the necessary excavation work and quay facilities. CMP is ready to continue with planning and tendering as soon as a decision is reached. The relocation of harbour activities will provide the City of Malmö with large plots for urban development including sites close to Malmö Central Station and the city centre, and just beside the water. In addition, the Norra Hamn project will generate many jobs in transport and logistics. a n n u a l r e p o r t 2 0 0 7 15
T h e m e : D i s t r i b u t i o n f r o m C M P Barcodes for emergency aid and development In 2007, UNICEF despatched containers corresponding to 2,000 TEUs from Copenhagen, most of them destined for Africa Much of the media attention paid to UNICEF s world store in Copenhagen Freeport comes in the wake of humanitarian disasters. However, 90% of its distribution is for planned projects or programmes. The store is also often wrongly associated with air freight 90% of the goods are sent by ship from CMP s container terminal. And volunteers do not stand at long tables packing medicine this is specialised work done by a team of 32 employees. First and foremost, the world store functions as a logistics company, complete with incoming and outgoing containers. Disasters account for 10% of our work but dominate the media picture, explains Søren Winther Hansen, global logistics manager for UNICEF. Our day-to-day activities mainly consist of development work, such as providing schooling for millions of children in Africa, Iraq and Sudan. This means deliveries of pencils, rulers and blackboards, or varnish for blackboards, and jotters. The warehouse has 1,000 standard goods in stock. One key area is stocked with supplies for vaccinations as well as 250 other medical products. The world store is also a major buyer, ordering large shipments that are usually sent directly from the supplier to the receiving country. Harbour more important than airport The fact that UNICEF does more work on development than disasters means that sea freight is far more important than air freight in their day-to-day operations. In 2007, UNICEF processed a global total of 12,000 TEUs including just over 2,000 TEUs from CMP s container terminal in Copenhagen. It is far more important for us to be located in a port than in an airport, says Søren Winther Hansen. When we send air freight, it might as well be from Billund as Copenhagen, and we often use a German or Dutch airport. It s mostly a matter of departures and prices. Contact with all time zones The world store has been located in the Freeport since 1962, and at its current address since 1984. The site has been evaluated several times by independent consultancy firms. 16 a n n u a l r e p o r t 2 0 0 7
T h e m e : D i s t r i b u t i o n f r o m C M P The most recent consultants evaluation says that we have to be in Dubai, South Africa, South-East Asia and Panama, but that we also need a store in Western Europe, says Søren Winther Hansen. Because of the import and export structure in global trade, the Western Europe location provides us with both very low freight rates to Africa and ease of access to goods. The logistics manager asserts that Copenhagen offers its own special advantages, first and foremost its freeport status, which saves the organisation a large amount of administrative work. In the course of a working day, you might be in contact with many different time zones. Copenhagen is in the same time zone as Africa, which is of special significance for the world store. In Copenhagen we are dependent on feeder connections, but things run smoothly and we are pleased with the service we get. Our co-operation with CMP, which supplies containers at the door, is good and flexible. It is particularly important for us to be able to call upon extra staff at peak times, says Søren Winther Hansen. Doubled in five years The world store in Copenhagen has doubled its activities in the last five years, and its annual turnover is now USD 1.4 billion. The warehouse has also become a store for the Red Cross and other UN organisations, such as the UNCHR, UNDP and the UN s peacekeeping forces. The actual warehouse is run along similar lines to any other commercial logistics or transport company. It is fully IT-integrated and organised via barcodes, which function as an umbilical cord to the system. One of our greatest challenges is buying in response to prognoses, and that, of course, is all about recording consumption levels as accurately as possible. It is also a challenge to buy from 100 different countries and supply goods to 166. This in itself engenders enormous complexity. Finally, another of the main challenges in terms of transport is guaranteeing the stability of supplies to Africa, Søren Winther Hansen concludes. Søren Winther Hansen, global logistics manager for UNICEF. Large-scale distribution Many companies use CMP for distribution. They include: Toyota Toyota officially opened its facility in Malmö in 2003. The cars come from factories in Japan, Thailand, Great Britain, France, Turkey, Portugal, the Czech Republic and South Africa. From the terminal, the cars are distributed to Denmark on lorries. The Swedish market is covered by lorries and trains, the Norwegian by trains, and the Finnish and Russian markets by feeder ships. Acerinox The world s third-biggest producer of stainless steel uses CMP for distribution to the whole of the Baltic Sea Region. The steel comes to CMP by ship and is forwarded by lorry and train. CMP takes care of the unloading, some of the storage, and the reloading onto lorries. Sony/DHL DHL has been handling Sony s storage activities since 2004. The warehouse in Copenhagen Frihavn services Sony s customers in the Nordic and Baltic countries. Roland International Roland International s distribution centre for musical instruments is located in Copenhagen Freeport. a n n u a l r e p o r t 2 0 0 7 17
B o a r d a n d M a n a g e m e n t The Board and Management of CMP Bengt Madsen Chairman of the Board. Board member since 2001. Chairman of the Board: Port of Malmö AB, GN Transport AB, Pro Krami AB and Malmö FF. Peter Maskell Dr. Merc, Professor at Copenhagen Business School. Board member since 2001. Member of the board: Port & City Development Corporation I/S, CBS Press and DJØF Forlag A/S. Michael Soetmann Director, Finances. Port & City Development Corporation I/S. Board member since 2008. Åke Svensson Director. Former Managing Director of Scandlines AB. Board member since 2001. Deputy board member of Port of Malmö AB. Kerry Forsberg Terminal Manager. Board member since 2007. Employee representative. Alfred Voldum Service mechanic. Board member since 2001. Employee representative. Rolf Hansson Docker. Board member since 2007. Employee representative. Søren A. Nyegaard Docker. Board member since 2001. Employee representative. 18 a n n u a l r e p o r t 2 0 0 7
B o a r d a n d M a n a g e m e n t Flemming Hansen Ex-minister, Director. Vice-chairman of the Board. Board member since 2008. Vice-chairman of board of Port & City Development Corporation I/S. Member of the board: Rovsing Management A/S. Joen Magnusson Managing Director of G&L Beijer AB. Board member since 2007. Member of the Board: Beijer Electronics AB. Anne Vang Student of Political Science, member of Copenhagen City Council. Board member since 2008. Member of the board: Port & City Development Corporation I/S, AKB Copenhagen and Copenhagen Energi A/S. Anders Rubin Deputy Mayor, City of Malmö. Board member since 2007. Vice-chairman of Board of Port of Malmö AB. Lars Karlsson Managing Director since 2001. Lennart Pettersson Deputy Managing Director since 2001. a n n u a l r e p o r t 2 0 0 7 19
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Management report Org. no. 556027-4077 The Board of Directors and Managing Director of Copenhagen Malmö Port AB (CMP) take great pleasure in presenting their annual report for the financial year January December 2007. Group structure, organisation and activities CMP is a 50/50 joint venture owned by Malmö Port AB (Swedish company registration no. 556014-7596) and Port & City Development Corporation I/S (Danish company registration no. 30 82 37 02). CMP s activities in Denmark are managed by a subsidiary (Danish company registration no. SE 25 99 60 11). CMP leases fixed plant such as quays, fairways, buildings, etc., from Malmö Port AB and Port & City Development Corporation I/S. The annual lease is based partly upon the cost of existing facilities and partly upon the cost of investment in new plant. The current agreement with the port owners runs until 2023. Negotiations have been initiated with the port owners regarding the extension of the agreement and investments in the relocation of certain terminals. Business concept CMP provides a range of port, terminal and transport services. Net sales and results Profit after financial items in 2007 was SEK 145.9 million (up from 92.8 million in 2006). All business areas contributed to the improved financial performance. Important events during and after the end of the financial year Total cargo volumes handled by CMP during 2007 amounted to 18.3 million tonnes, up 10% from 2006. All business areas registered increased cargo volumes, but the largest growth was in oil products, which rose by 17% in comparison with the previous year. Dry-bulk activity was up 8%, primarily due to higher volumes of coal, sand and scrap. Cargo ferries, primarily traffic between Malmö and Travemünde, rose by 7%. Container volumes over CMP quays also continued to rise, exceeding 192,000 TEUs in 2007, an improvement of 10%. CMP consolidated its position as the most important transit port for the import and distribution of new cars in the Baltic Sea Region, handling more than 500,000 cars in 2007 (an increase of 18%). CMP is still Northern Europe s most popular cruise port, with 291 calls in 2007. The total number of cruise passengers in 2007 was 509,000, up 11% on 2006, which is more or less in line with the general trend in this market segment. Future developments Following several years with major increases in cargo volumes and net sales, more moderate growth is expected in 2008, partly due to a subdued macro-economy. In certain areas, CMP s current facilities are approaching their limit in terms of the volume of cargo they are able to handle. The level of investment needed to cope with future volumes growth is therefore the subject of intensive current planning work. However, pre-tax profits are still expected to continue to improve over the next 3 4 years. Total net sales in 2007 were SEK 733.5 million, compared to SEK 649.1 million in 2006. Total operating costs were SEK 590.8 million in 2007, a rise of 6% compared to a 13% increase in net sales during the same period. The environment CMP continues to prioritise the environment. Company policy on the environment states that: Copenhagen Malmö Port AB continually prioritises and improves its safety, health and environmental procedures in order to achieve longterm, sustainable development. a n n u a l r e p o r t 2 0 0 7 2 1
The international standard ISO 14001 was introduced as an environment-management system throughout CMP several years ago. The current certificate is valid until December 2009. Port operations in Sweden are required to be licensed under the new environmental code. CMP lodged the appropriate application for permission to operate as a port with the county administrative board in September 2004. This process is still ongoing, but CMP expects to be granted a license before the end of 2008. The requirements for operating conditions for CMP s current activities have been met in full, and approval from the environmental authorities has been granted. The environment at certain facilities and in certain areas where CMP operates has been adversely affected by previous activities. However, environmental conditions that stem from prior to 2001, when CMP commenced its activities, are the respective port owner s responsibility. Investments Investment in buildings, machinery and inventory amounted to SEK 54.6 million, mainly in machinery. Personnel The number of employees rose by 4% to 490 in 2007, of whom 14% were women. Short-term sick leave was 2.6% (down from 2.8% in 2006) and long-term sick leave was 2.4% (down from 3.3% in 2006). Proposed distribution of profit The annual general meeting has the following profits at its disposal: Balanced profit from previous year SEK 55,343,000 Profit 2007 SEK 81,579,000 Total SEK 136,922,000 The Board and the Managing Director propose: A dividend of SEK 175.00 per share SEK 35,000,000 Carried forward SEK 101,922,000 Total SEK 136,922,000 No addition to working capital is proposed. The Board and managing director deem the proposed dividend to be justified in the light of the demands placed on the size of working capital by the nature, scale and risks of CMP s activities, as well as the company s need to strengthen its balance sheet, liquidity and general situation. For further information about company profits and the financial situation for 2007 and 2006, please refer to the profit and loss accounts, balance sheets and additional information below. 2 2 a n n u a l r e p o r t 2 0 0 7
Income statement SEK 1,000 note 2007 2006 Net sales 1 733,528 649,118 Operating costs Other external costs 2-255,353-249,848 Personnel costs 3-300,143-272,929 Depreciation 4-35,277-35,400 Operating profit 142,755 90,941 Earnings from financial items Other interest income and similar items 4,061 2,390 Interest costs and similar items -947-564 Profit after financial items 145,869 92,767 Balance-sheet allocations 7-33,655-35,196 Tax -30,635-19,397 Net profit for the year 81,579 38,174 a n n u a l r e p o r t 2 0 0 7 2 3
Balance sheet ASSETS 31 December (SEK 1,000) note 2007 2006 Fixed assets Tangible assets 4 Buildings and land facilities 50,922 51,888 Machinery and other technical plant 208,400 176,201 Inventories, tools and installations 31,476 32,799 Ongoing construction projects and advance payments 899 1,017 291,697 261,905 Financial assets Other long-term receivables 843 1,263 843 1,263 Total fixed assets 292,540 263,168 current assets Short-term receivables Accounts receivable 57,973 49,409 Accounts receivable, co-owners 8,360 6,594 Other accounts receivable 5 697 27,663 Tax receivables 1,588 0 Prepaid expenses and accrued income 6 24,766 12,794 93,384 96,460 Short-term investments Other short-term securities 42,680 0 Cash and bank accounts 99,409 65,668 Total CURRENT assets 235,473 162,128 TOTAL ASSETS 528,013 425,296 2 4 a n n u a l r e p o r t 2 0 0 7
Equity, provisions and liabilities 31 December (SEK 1,000) note 2007 2006 Equity 10 Restricted equity Share capital 100,000 100,000 Premium fund 20,000 20,000 Reserve fund 388 388 Exchange-rate differences, subsidiaries 5,513-8,605 125,901 111,783 Non-restricted equity Balance 55,343 36,169 Net profit for the year 81,579 38,174 136,922 74,343 Total equity 262,823 186,126 Untaxed reserves 7 134,929 101,274 Appropriations 8 3,570 4,246 Short-term liabilities Supplier liabilities 23,913 27,164 Liabilities, tax 0 12,896 Miscellaneous liabilities 19,411 11,473 Accrued expenses and prepaid income 9 83,367 82,117 TOTAL Short-term liabilities 126,691 133,650 TOTAL EQUITY AND liabilities 528,013 425,296 Above-the-line items Securities given none none Guarantee commitments 400 400 a n n u a l r e p o r t 2 0 0 7 2 5
Cash flow statement SEK 1,000 2007 2006 Operating activities Profit after financial items 145,869 92,767 Adjustment for items not included in cash flow: Depreciation and amortization of fixed assets 35,277 35,400 Capital gains, tangible fixed assets -920-352 180,226 127,815 Paid income tax -45,120-4,523 Cash flow from operating activities 135,106 123,292 Alteration in accounts receivable 4,664-41,407 Alteration in short-term liabilities 5,937-6,722 Cash flow from operating activities 145,707 75,163 Investment activities Reduction in other long-term receivables 420 7,383 Purchase of tangible assets -54,526-25,254 Exchange rate difference in tangible assets -11,159 9,361 Sale of inventories 1,537 2,039 Cash flow from investment activities -63,728-6,471 Financial activities Increase in long-term liabilities -676-1,107 Loans procured 0-63,200 Dividends paid -19,000-12,000 Exchange-rate differences, subsidiaries 14,118-9,132 Cash flow from financial activities -5,558-85,439 Total cash flow 76,421-16,747 Liquid funds at start of period 65,668 82,415 Liquid funds at end of period 142,089 65,668 2 6 a n n u a l r e p o r t 2 0 0 7
Additional information Accounting principles The accounting principles used accord with the Annual Accounts Act and recommendations and statements from the Swedish Financial Accounting Standards Council and the Swedish Institute of Authorised Public Accountants (FARSRS). The following assessment and conversion principles have been used in the annual report: Co-owners Port of Malmö AB and Port & City Development Corporation I/S are referred to as co-owners in the annual report. NOTES Note 1 net sales SEK 1,000 2007 2006 Terminal income 583,634 508,066 Income from rent 126,120 118,041 Miscellaneous income 23,774 23,011 Total 733,528 649,118 Fixed assets Fixed assets are accounted for in terms of acquisition cost with allowance for planned depreciation based upon an estimation of the financial life of the assets. Planned depreciation is calculated as follows: Buildings Crains Permanent equipment in buildings and installations Machinery Vehicles and other equipment Computers 20-50 years 25 years 10-20 years 7-10 years 5 years 3-5 years Note 2 Auditing fee SEK 1,000 2007 2006 Auditing fee, Deloitte AB 346 439 Consultancy, Deloitte AB 176 188 Total 522 627 Note 3 salaries, other remuneration and social costs Tax-related write-offs in excess of planned depreciation are regarded as extra depreciation, constituting an untaxed reserve. Median workforce strength 2007 2006 The buildings have no ratable value. Accounts receivable and accounts payable Accounts receivable are entered into the accounts at the amount expected to be paid. Accounts receivable and liabilities in foreign currency are converted into SEK at the rate on the day the balance sheet is closed. Any difference between acquisition value and closure value is accounted for. Malmö Men 221 208 Women 37 30 258 238 Copenhagen Men 201 204 Women 31 31 232 235 Liquid assets Liquid assets include cash and bank accounts, as well as short-term investments. Total 490 473 Foreign subsidiary Profits and balances of the foreign subsidiary are converted according to the daily rate method, by which calculation differences are reckoned against equity. a n n u a l r e p o r t 2 0 0 7 2 7
Absence due to illness Note 4 Tangible assets 2007 2006 Total absence due to illness 5.0% 6.1% Short-term absence due to illness 2.6% 2.8% Long-term absence due to illness 2.4% 3.3% Absence due to illness for women 6.4% 10.3% Absence due to illness for men 4.7% 5.5% Women 29 years 2.6% 6.9% Women 30 49 years 11.0% 16.1% Women 50 years 2.9% 3.5% Men 29 years 4.4% 2.9% Men 30 49 years 4.4% 4.4% Men 50 years 5.1% 6.7% Personnel costs SEK 1,000 2007 2006 Board, Managing Director and Deputy Managing Director Salaries and other remuneration 4,043 3,500 of which profit-sharing 457 270 Social security costs 2,103 1,973 of which pension costs and obligations 972 1,006 Other employees Salaries and other remuneration 227,878 212,653 Social security costs 56,121 46,832 of which pension costs and obligations 22,592 17,486 Agreements on severance payments amounting to two years' salary have been made with the Managing Director and Deputy Managing Director. Gender distribution within the Board and management Percentage men Board 92 % Managing Director and other top management 92 % 31 December (SEK 1,000) 2007 2006 Buildings and land facilities Opening acquisition value 53,056 44,424 Acquisition value adjustments 0-414 Purchases 0 9,046 Sales/disposals 0 0 Closing accumulated acquisition value 53,056 53,056 Opening depreciation -1,168-249 Sales/disposals 0 0 Depreciation for the year -966-919 Closing accumulated depreciation -2,134-1,168 Closing residual value according to plan 50,922 51,888 Machinery and other technical plant Opening acquisition value 279,153 276,743 Exchange rate adjustments 8,972-7,608 Purchases 50,001 14,913 Sales/disposals -5,238-4,895 Closing accumulated acquisition value 332,888 279,153 Opening depreciations -102,952-79,541 Sales/disposals 4,621 3,352 Depreciation for the year -26,157-26,763 Closing accumulated depreciation -124,488-102,952 Closing planned residual value 208,400 176,201 Inventories, tools and installations Opening acquisition value 63,744 62,723 Exchange rate adjustments 2,188-1,753 Purchases 4,643 6,004 Sales/disposals -146-3,230 Closing accumulated acquisition value 70,429 63,744 Opening depreciation -30,945-26,313 Sales/disposals 146 3,086 Depreciation for the year -8,154-7,718 Closing accumulated depreciation -38,953-30,945 Closing planned residual value 31,476 32,799 2 8 a n n u a l r e p o r t 2 0 0 7
31 December (SEK 1,000) 2007 2006 Ongoing construction projects and advance payments Opening balance 1,017 5,312 Costs during the year 41,793 11,009 Reclassifications made during the year -41,912-15,271 Exchange rate adjustments 1-33 Closing balance 899 1,017 Leasing SEK 1,000 The company incurs leasing charges for vehicles, machines and inventory. The costs amounted to 3,336 in 2007. Future known lease costs are as follows: 2008: 3,525 ; 2009: 2,957 ; 2010: 1,537 ; 2011: 588 ; 2012: 123. Note 7 Balance-sheet allocations and untaxed reserves 31 December (SEK 1,000) 2007 2006 Balance-sheet allocations Differences between planned depreciation and depreciation permitted for tax purposes 33,655 14,300 Tax allocations fund, tax 07 0 20,896 Total balance-sheet allocations 33,655 35,196 Untaxed reserves Accumulated excess write-offs 114,033 80,378 Tax allocations fund, tax 07 20,896 20,896 Total untaxed reserves 134,929 101,274 Note 5 OTHER ACCOUNTS RECEIVABLES Note 8 Provisions 31 December (SEK 1,000) 2007 2006 Insurance claims 0 15,103 Subcontracting expenses 0 10,362 Miscellaneous 697 2,198 697 27,663 Note 6 PREPAID EXPENSES AND ACCRUED INCOME 31 December (SEK 1,000) 2007 2006 Accrued terminal revenues, etc. 20,157 10,417 Prepaid expenses 4,609 2,377 24,766 12,794 Miscellaneous provisions include a provision for estimated risk of loss pertaining to a particular sales contract. Note 9 Major accrual and deferral items 31 December (SEK 1,000) 2007 2006 Accrued expenses and prepaid income Accrued salaries, holiday pay and social payments 54,918 51,869 Estimated payroll tax 1,996 1,385 Accrued discounts 15,983 16,767 Miscellaneous 10,470 12,096 Total accrued expenses and prepaid income 83,367 82,117 a n n u a l r e p o r t 2 0 0 7 2 9
Note 10 Equity SEK 1,000 Share Premium Reserve Exchange rate Non- Total capital fund fund differences, restricted equity subsidiaries equity Opening amount 100,000 20,000 388-8,605 74,343 186,126 Exchange-rate differences, subsidiaries 14,118 14,118 Dividend to shareholders -19,000-19,000 Net profit for the year 81,579 81,579 Amount at end of period 100,000 20,000 388 5,513 136,922 262,823 The company s share capital consists of 200,000 shares with a nominal value of SEK 500 each. Note 11 Credit on current account CMP has a SEK 50,000,000 credit facility with Danske Bank. On the day the books closed, no use had been made of this facility. Malmö, 25 March 2008 Bengt Madsen Chairman Flemming Hansen Joen Magnusson Peter Maskell Vice-Chairman Anders Rubin Michael Soetmann Åke Svensson Anne Vang Kerry Forsberg employee representative Søren Nyegaard Employee representative Rolf Hansson employee representative Alfred Voldum employee representative Lars Karlsson Managing Director My auditor's statement was made on 25 March 2008 Torbjörn Svensson Authorised Public Accountant 3 0 a n n u a l r e p o r t 2 0 0 7
Audit report To the annual meeting of the shareholders of Copenhagen Malmö Port AB Corporate identity number 556027-4077 I have audited the annual accounts, the accounting records and the administration of the board of directors and the managing director of Copenhagen Malmö Port AB for the financial year 2007. These accounts and the administration of the company and the application of the Annual Accounts Act when preparing the annual accounts are the responsibility of the board of directors and the managing director. My responsibility is to express an opinion on the annual accounts and the administration based on my audit. I conducted my audit in accordance with generally accepted auditing standards in Sweden. Those standards require that I plan and perform the audit to obtain reasonable assurance that the annual accounts are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the accounts. An audit also includes assessing the accounting principles used and their application by the board of directors and the managing director and significant estimates made by the board of directors and the managing director when preparing the annual accounts as well as evaluating the overall presentation of information in the annual accounts. As a basis for my opinion concerning discharge from liability, I examined significant decisions, actions taken and circumstances of the company in order to be able to determine the liability, if any, to the company of any board member or the managing director. I also examined whether any board member or the managing director has, in any other way, acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. I believe that my audit provides a reasonable basis for my opinion set out below. The annual accounts have been prepared in accordance with the Annual Accounts Act and give a true and fair view of the company s financial position and results of operations in accordance with generally accepted accounting principles in Sweden. The statutory administration report is consistent with the other parts of the annual accounts. I recommend to the annual meeting of shareholders that the income statement and balance sheet be adopted, that the profit be dealt with in accordance with the proposal in the administration report and that the members of the board of directors and the managing director be discharged from liability for the financial year. Malmö, 25 March 2008 Torbjörn Svensson Authorized Public Accountant Layout & production: Lars Green Principal photos: Dennis Rosenfeldt Cover: CMP processed over half a million cars in 2007. Photo shows supervisor Karolina Olsson
Copenhagen Malmö Port AB Containervej 9 P.O. Box 900 DK-2100 Copenhagen Denmark Tlf.: + 45 3546 1111 Fax: + 45 3546 1164 Terminalgatan 18 P.O. Box 566 S-201 25 Malmö Sweden Tel.: + 46 (0) 40 680 41 00 Fax: + 46 (0) 40 18 05 01 cmport@cmport.com www.cmport.com your logistics partner