CW Obel Maritime
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CWO2400025Arsbe_omsUK _RT.qx4 29/06/00 12:12 Side 1 C.W. Obel A/S CVR - no. 39980614 Vestergade 2 DK-1456 Copenhagen K Tel. +45 3333 9797 Fax +45 3333 9779 www.cwobel.com Annual Accounts 1999 CWO2400025Arsbe_omsUK _RT.qx4 29/06/00 12:12 Side 2 Contents Vision . 1 Financial Summary - The Group . 2 Annual Report for the Group and the Parent Company . 4 Supervisory Board and Management - Other Executive Staff Members . 10 Semco Danmark . 12 Semco Sverige . 16 C.W. Obel Maritime . 18 C.W. Obel Industriteknik . 22 Other Companies . 26 C.W. Obel Ejendomme . 28 Associated Companies . 32 Shareholder Information . 34 Accounting Report and General Financial Analysis . 36 Accounting Policies . 40 Signatures and Auditors’ Report . 42 Consolidated Profit and Loss Account . 43 Assets . 44 Liabilities . 45 Cash Flow Statement for the Group . 46 Notes . 47 List of Rental Properties . 52 C.W. Obel · April 2000 Group Companies . 53 Design: Bysted Hovedkvarteret A/S Addresses . 54 Printing: Repro & Tryk A/S Vision The C.W. Obel Group is one of the largest Scandinavian suppliers of land-based technical installations and service and a significant supplier of technical systems, equipment, installations and service to the interna- tional maritime sector. The Group also has significant activities in properties and investments in associated companies. The aim is to create continuously profitable, long- term and sustainable growth by strengthening the Group’s know-how and competences. The key words are trustworthiness, professionalism and flexibility. The skills and dedication of the employees are vital for achieving the goals. Therefore, the C.W. Obel Group must be an attractive workplace that offers versatile development opportunities. Through its consolidated activities, the C.W. Obel Group will ensure continued stability and a competi- tive return on the Group’s capital. 1 Financial Summary – The Group Financial Highlights (DKK mill.) 1995 1996 1997 1998 1999 Profit and Loss Account Net turnover, excluding rental income 84.8 2,612.6 3,901.3 4,457.5 4,484.9 Rental income 80.9 81.1 94.5 100.6 99.9 Operating profit 30.2 79.9 -29.5 74.5 110.3 Financial items, net 25.2 -13.6 -38.9 -51.3 -53.7 Share of profits, associated companies 174.1 274.9 244.0 279.5 342.5 Consolidated profit before taxation 229.5 350.9 175.7 302.6 413.3 C.W. Obel’s share of the profit of the year 133.9 245.9 101.8 202.6 302.7 Assets Tangible fixed assets 719.0 1,235.2 1,310.1 1,355.2 1,341.6 Financial fixed assets 559.0 629.2 554.6 550.3 637.7 Stocks, including work in progress 17.1 324.7 369.5 414.1 363.2 Debtors 22.8 682.0 789.0 897.3 968.3 Cash and securities 254.0 361.2 473.2 604.4 393.1 Total assets 1,571.9 3,232.3 3,496.3 3,821.2 3,703.9 Liabilities C.W. Obel’s share of the equity capital 1,400.2 985.9 921.6 1,071.5 1,296.1 Minority shareholders’ share of the equity capital - 3.9 4.5 3.7 0.4 The Group’s combined equity capital 1,400.2 989.8 926.1 1,075.2 1,296.5 Provisions 29.0 197.8 129.4 99.6 130.8 Long-term creditors 48.4 444.2 1,191.5 1,377.7 1,155.2 Short-term creditors 94.3 1,600.6 1,249.3 1,268.7 1,121.3 Total liabilities 1,571.9 3,232.3 3,496.3 3,821.2 3,703.9 Cash Flow Statement Cash flow from operating activities 71.0 -12.4 -79.8 35.0 122.9 Cash flow from investing activities 20.4 -796.0 -38.1 21.3 48.6 Cash flow before financing activities 91.4 -808.4 -117.9 56.3 171.5 Cash flow from financing activities -131.2 758.2 319.0 9.6 -278.9 Net change in cash and securities -115.0 107.2 112.0 131.2 -211.2 Change in interest-yielding net cash 64.5 -1,109.8 -140.0 51.0 119.3 Interest-bearing net debt, end of year -186.8 923.0 1,063.0 1,012.0 892.7 Key Figures Average number of employees 109 4,850 5,828 6,149 6,400 Average number of shares (’000) 2,075 2,075 2,075 2,075 2,075 Earnings per share, DKK 100 64.5 118.5 49.1 97.7 145.9 Cash flow per share, DKK 9.5 (6.0) (38.5) 16.9 59.3 Dividend per share, DKK 100 15.0 15.0 15.0 18.0 18.0 Net asset value per share, DKK 100 675 475 444 516 625 Gross plant investments and purchase of activities 60 996 211 182 232 Equity ratio % 89.1 30.5 26.4 28.0 35.0 Return on equity % 9.9 20.6 10.7 20.3 25.6 Definitions according to the "Recommendations & Key Figures 1997" issued by the Danish Society of Financial Analysts: Earnings per share Profit after taxation and minority interests/Average no. of shares Cash flow per share Cash flow from operating activities/Average no. of shares Net asset value Equity capital, excl. minority interests, end of year/No. of shares, end of year Equity ratio (Equity capital excl. minority interests/Liabilities, end of year)*100 Return on equity (Profit after taxation and minority interests/Average equity capital excl. minority interests)*100 Interest-bearing net debt Interest-bearing debt - Cash and securities 2 Turnover Operating profit Profit on ordinary operations before taxation DKK mill. DKK mill. DKK mill. 5,000 120 500 100 4,000 400 80 3,000 60 300 40 2,000 20 200 0 1,000 100 -20 0 -40 0 1996 1997 1998 1999 1995 1996 1997 1998 1999 1995 1996 1997 1998 1999 Total assets Interest-bearing net debt Equity ratio DKK mill. DKK mill. % 4,000 1,200 100 3,500 1,000 80 3,000 800 2,500 60 600 2,000 400 1,500 40 200 1,000 20 500 0 0 -200 0 1995 1996 1997 1998 1999 1995 1996 1997 1998 1999 1995 1996 1997 1998 1999 Return on equity Earnings per share % DKK 30 150 25 120 20 90 15 60 10 30 5 0 0 1995 1996 1997 1998 1999 1995 1996 1997 1998 1999 3 Annual Report for the Group and the Parent Company 4 In 1999, the C.W. Obel Group gen- Strategy Semco Danmark: A significant strength- erated sales totalling DKK 4,485m, In autumn 1998, the Group initiated a ening of core business, including efficien- which is in line with sales in 1998. strategic planning program, whose ob- cy improvements of financial and admin- jective is to clarify the Group’s vision and istrative functions, focus on customer/ The operating profit went up from to adapt the Group so that the operating sales in order to better handle the exist- DKK 74m in 1998 to DKK 110m, structure reflects the vision. In 1999, ef- ing market situation and reinforcement equal to a 49% increase. The strong forts continued in the divisions to formu- of the sale of services. advance in profits is due to the sus- late divisional strategies with related tained profit improvement of 34% goals. Semco Sverige: Growth by the acquisi- reported for the Technical Installa- tion of local competitors, which will be- tions and Service Sector. In addi- Strategic efforts in the divisions sprang come integrated into Semco Sverige. tion, C.W. Obel Ejendomme affects from the Group's overall vision of con- the profit performance distinctively centrating on its strategic fortes as a C.W. Obel Maritime: Internationaliza- with sales gains reaching DKK 41m. stepping stone, in particular the three tion through company acquisitions, an Other Companies also reported overall competencies critical to the extension of the product portfolio, par- progress compared to the previous Group’s development: ticularly within the operating market in year. • Project control and management, right the offshore area, and enhanced flexibili- from canvassing new orders to hand- ty via more external business partners. The Group’s share of Skandinavisk ing over the individual jobs and provid- Tobakskompagni’s profits con- ing the appropriate servicing in this C.W. Obel Industriteknik: Consolida- tributes significantly to the connection tion and expansion of the existing core progress. • Focusing on customer needs through business in Scandinavia. pro-active sales work, market develop- The Group’s profit on ordinary op- ment and modelling solutions tailored Other Companies: Ongoing spin-off erations rose by 37% from DKK to the customer’s requirements until end-2001. 303m to DKK 413m. • Exchanging know-how and experience within the individual divisions and C.W. Obel Ejendomme: Further im- The profit for the year aggregated across divisional and national bound- provements to existing properties, sites DKK 303m, up 49% on that report- aries. and current operations plus new property ed in 1998, which amounted to acquisitions. DKK 203m. After completing the strategic planning for the divisions, the C.W. Obel Group’s The Group will constantly observe the The Group’s assets totalled DKK financial goals can be headlined thus: structural adaptation underway in indi- 3,704m. At the end of the year, the • Additional growth in the Technical In- vidual lines of the Technical Installations Group’s equity had grown to DKK stallations and Service Sector through and Service Sector, and which leans to- 1,296m, equal to a solvency ratio organic growth and via acquisitions.