2009 Annual Report 1 Contents
3 introduction
4 rEVIEW OF COMMERCIAL AND FINANCIAL ACTIVITIES
8 Freight Services
11 Passenger Services
14 rolling Stock
17 inFRASTRUCTURE
18 tECHNICAL DEVELOPMENT AND INVESTMENT POLICY
21 traffic Safety
22 ENVIRONMENTAL PROTECTION
24 information Technologies
26 international Relations
29 human Resources
32 Management Structure of AB Lietuvos Geležinkeliai
33 Main Events
34 independent Auditor's Report
36 Balance sheets
38 income statements Dear Readers, In 2009, AB Lietuvos Geležinkeliai operated on an even keel, as well as at a profit. The Company’s operations and their results were evidently adapted by the economic downturn in Lithuania and neigh bouring countries. Transit rail freight transported to the Kaliningrad Region decreased by more than 30 per cent; a fall in the production and sales volumes in Lithuanian companies (AB ORLEN Lietuva, AB Achema, AB Akmenės Cementas) resulted in a considerable loss of domestic freight. The freight flows were stabilised only in the second half of 2009 through close cooperation of our specialist staff with freight consignors and representatives of railway undertakings in other countries. However, modern technologies, effective management and the implemented system of risk management ensured steady operations of the Company even in the period of crisis. AB Lietuvos Geležinkeliai is a major transport company in Lithuania. The Company together with its daughter companies employ around 12,000 people. The Company produces approximately 1.3 per cent of the GDP and is one of the largest tax payers in Lithuania. About two thirds of the income of AB Lietuvos Geležinkeliai is generated from foreign customers. The Company focuses on the improvement in management and control by implementing information systems and modern management methods. The financial management system SAP has been operating in the Company allowing one to ensure transparent records management complying with the EU and Lithuanian legal requirements. The Company’s financial state ments are audited by a world-known auditing company. AB Lietuvos Geležinkeliai is one of the most advanced railway undertakings in Eastern and Central Europe. The Company operates the up-to-date fleet of freight locomotives; new comfortable and efficient passenger trains are being acquired. Modern signalling, telecommunications, rolling stock control systems have been installed on the main railway lines and stations, passenger buildings and railway constructions have been refurbished. One of the most significant events of the year 2009 was opening for traffic of Kaunas railway tunnel after the two years of reconstruction work. This tunnel, the construction of which was started in 1859, is an important part of the 150-year his tory of Lithuanian railways. It is a significant structure of today, as well as a national cultural value. Kaunas railway tunnel has been included in the Register of Cultural Values of the Republic of Lithuania. AB Lietuvos Geležinkeliai preserves and maintains over fifty objects of national cultural heritage; that is why in this publica tion we would like not only to update you on the Company’s activities and their results in 2009, but also to show you the most beautiful railway structures preserved by the Company, as well as the old structures that are currently still in use. Sincerely yours,
Stasys Dailydka Director General of AB Lietuvos Geležinkeliai 3 REVIEW OF COMMERCIAL AND FINANCIAL ACTIVITIES
MAIN INDICATORS 2009 2008 Assets and Liabilities (LTL million) Assets 4,135.7 4,070.4 Equity 2,196.4 2,240.6 Total Revenues (LTL million) 1,206.0 1,630.4 Revenues from core activities (sales) 1,183.5 1,593.9 Revenues from financial and investing activities 12.1 16.5 Other revenues 10.4 20.0 Total Costs (LTL million) 1,193.7 1,507.0 Costs of core activities 1,162.7 1,481.1 Costs of financial and investing activities 29.1 23.5 Other costs 1.9 2.4 Result (LTL million) Profit before tax 12.3 123.4 Net profit 13.0 106.5 Financial Indicators Liquidity (current assets/current liabilities), % 0.7 0.7 Gross profitability (gross profit/sales), % 11.9 17.8 Net profitability (net profit/sales), % 1.1 6.7 EBITDA (earnings before interest, taxes, depreciation and amortisation) 338.0 414.5 (LTL million) Return on Assets (ROA) (net profit/assets), % 0.3 2.6 Return on Equity (ROE) (net profit/equity), % 0.6 4.8 Investment (LTL million) Investment 475.5 779.8 Company funds invested 270.5 386.9 Staff Number of staff 10,506 10,717 Average monthly salary (LTL) 2,487 2,954 Sales income per employee (LTL thous./person) 112.6 148.7 4 CHANGES IN THE BALANCE SHEET In 2009, the assets of the Company went up by 1.6 per cent amounting to LTL 4,135.7 million. The non- current assets accounted for 93.0 per cent in the total asset structure, an increase of 3.2 per cent up to LTL 3,845.2 million, compared to 2008. This was determined by an increase in the material assets of the Com pany (new rolling stock acquired, investment made, land plots received by trust from the municipalities). The financial assets of the Company went down by 7.2 per cent and amounted to LTL 108.9 million due to fewer investments in subsidiary companies after the acquisition by AB Lietuvos Geležinkeliai of the Rail Welding Plant from UAB Gelmagis. Trade debtors and cash amount having decreased, the current assets shrank by 15.5 per cent amounting to LTL 290.4 million and accounted for 7.0 per cent in the total asset structure.
The fall in the profits during the reporting period resulted in a decline of shareholders’ equity in 2009 by 2.0 per cent down to LTL 2,196.4 million.
By the end of 2009, the loan portfolio of the Company had reached LTL 465.1 million. It comprised the financial liabilities to credit institutions related to the investment projects on the modernisation and de velopment of infrastructure and acquisition of rolling stock.
REVENUES The Company’s activities and their results in 2009 were influenced by the economic downturn in Lithuania and neighbouring countries. In 2009, the revenues made up LTL 1,206.0 million, a decline of 26.0 per cent from the previous year. The main changes in revenues were determined by a drop in freight transportation volumes, to the Kaliningrad Region in particular.
Total revenues (ltl million)
1,630.4 1,433.2 1,123.4 1,246.6 1,206.0
2005 2006 2007 2008 2009
• Freight revenues. Freight revenues accounted for 86.1 per cent in the total revenue structure. The rev enues earned from freight services in 2009 were by 26.6 per cent less than those in 2008 due to a sharp fall in freight volumes. The freight tariffs were not increased during the reporting period.
• Passenger revenues. Passenger revenues accounted for 5.5 per cent in the total revenue structure in 2009, a decrease of 3.9 per cent from the previous year. This was due to the fall in both domestic and inter national passenger flows. A total of LTL 5.0 million subsidies were allocated for financing passenger traffic in 2009 to reimburse privileged passengers and to cover losses in domestic services.
• Other revenues. A decline in transportation volumes resulted in a fall in the number of other supple mentary services rendered (repair and maintenance of private rolling stock, operation of locomotives and engine-crews abroad, freight handling and storage services, other transport-related services, as well as the 5 lease of own assets and sales of scrap iron). In 2009, the revenues from rendering other supplementary services dropped by 28.4 per cent, compared to the previous year, and accounted for 6.6 per cent in the total revenue structure.
Revenue structure in 2009 (%)
0.8% 1.0% 6.6% 5.5% Freight Passenger 86.1% Other supplementary services Other activities Financial & investment activities
COSTS The costs incurred by the Company in 2009 amounted to LTL 1,193.7 million, a decline of 20.8 per cent from 2008. In order to reimburse losses of earned income due to a sharp fall in transportation volumes, the Company implemented in 2009 a number of activity optimisation measures, as well as reducing operating costs before depreciation (amortisation) according to decrease in income. Major saving of expenses was reached by decreasing labour costs, fuel and communication costs, as well as costs of materials and repair works.
Cost structure in 2009 (%)
11.2% 2.4% Remuneration 3.0% Fuels 36.1% 6.5% Depreciation (amortisation)
2.2% Energy resources Materials Repairs Financial & investment costs 25.2% 13.4% Other costs
In 2009, staff-related costs represented major part in the total cost structure and accounted for 36.1 per cent, the non-current asset depreciation costs and the costs of fuels made up 25.2 per cent and 13.4 per cent respectively.
6 PROFIT Despite the shrinkage of sales turnover, the Company operated at a profit in 2009; the profit before tax during the reporting year reached LTL 12.3 million (cf. LTL 123.4 million in 2008), and the net profit repre sented LTL 13.0 million (cf. LTL 106.5 million in 2008).
Profit before tax (ltl million)
164.0 141.8
105.5 123.4
12.3
2005 2006 2007 2008 2009
OPERATING RESULTS OF SUBSIDIARY COMPANIES In 2009, AB Lietuvos Geležinkeliai group consisted of AB Lietuvos Geležinkeliai and its subsidiary compa nies, UAB Geležinkelio Tiesimo Centras, UAB Gelmagis, UAB Vilniaus Lokomotyvų Remonto Depas, UAB Gelsauga, and associated company UAB VAE Legetecha.
Profit (loss) during Company the reporting year Core activity (LTL thous.) UAB Gelmagis (306.0) Railway construction UAB Geležinkelio Tiesimo Centras 283.9 Railway construction Major overhauls to UAB Vilniaus Lokomotyvų Remonto Depas 830.7 locomotives and diesel trains UAB Gelsauga 871.2 Railway security services UAB VAE Legetecha (100.1) Turnout manufacturing
7 On 17 November 2009, Kaunas railway tunnel was opened for traffic after the two years of overhaul repair works.
Freight Services
In 2009, AB Lietuvos Geležinkeliai carried 42.7 million tonnes of freight, a decline of 22.4 per cent from 2008 (55.0 million tonnes).
Freight volumes in 2005–2009 (million tonnes)
53.5 55.0 49.3 50.2 42.7
2005 2006 2007 2008 2009
Import freight and domestic freight represented major part of the total rail freight; they accounted for 31 per cent (13.1 million tonnes) and 30 per cent (12.9 million tonnes) respectively. Transit freight made up 29 per cent (12.5 million tonnes), while export freight constituted 10 per cent (4.2 million tonnes) of the total rail freight structure. 8 Kaunas railway tunnel was constructed in the autumn of 1861. It was the most complex engineering structure of that period.
Rail freight structure in 2009
9.8% Domestic 30.2% Transit 30.7% Import Export
29.3%
In 2009, the majority of rail freight was transported on International Corridor IX B trunk line (freight going to the port of Klaipėda) and on International Corridor IX D line Kena–Kybartai (transit freight from the CIS countries going to/from the Kaliningrad Region).
Klaipėda direction is of exceptional importance to Lithuanian railways. Freight to Klaipėda Port is trans ported under especially favourable conditions; that is why freight flows to Klaipėda Port remained quite stable in 2009. 9 A total of 20.5 million tonnes of freight was transported to Klaipėda, of which oil and oil products account ed for 8.5 million tonnes (42 per cent of the total freight), mineral and chemical fertilisers for 7.6 million tonnes (37 per cent of the total freight), and foodstuffs and feedstuffs for 2.3 million tonnes (11 per cent of the total freight).
The majority of international freight reloaded at Klaipėda Port was from Belarus; it represented 6.5 million tonnes.
Domestic freight carried from/to the port accounted for 9.8 million tonnes, of which the core commodi ties were oil and oil products (from AB Orlen Lietuva) and the production of chemical plants (AB Lifosa, AB Achema).
A total of 10.9 million tonnes of freight was transported to the Kaliningrad Region (Kaliningrad direction) in 2009, down 34 per cent from 2008. The freight flows carried to this direction showed a sharp decline due to the economic downturn experienced in the first half-year; however, the freight flows were stabilised in the second half-year.
AB Lietuvos Geležinkeliai orients its activities towards introducing new services, applying flexible system of tariffs and providing marketing solutions.
In order to develop intermodal freight transport in Lithuania, public logistics centres are being founded in Vilnius (nearby Vaidotai Marshalling Yard) and Kaunas. The EU financial assistance of the Cohesion Fund will be used for establishing infrastructure necessary for said centres: modern overland intermodal terminals, exclusive in the Baltic Sea Region and Eastern Europe, will be built, and conditions will be created for setting up companies on the territory of the terminal engaged in transport, logistics or other freight related activi ties. This conception is expected to encourage commercial cooperation among transport modes, and more freight will be carried by rail which is more cost-efficient and environmental friendly mode of transport.
Container traffic is becoming the main trend in developing freight services due to its versatility.
The Viking project of combined traffic has been successfully conducted over the past years; a total of 39.5 thousand containers (TEU) were carried on this container train in 2009, improving the result of 2008 by 16.2 per cent. In 2009, this project was announced by the European Intermodal Association as the winner of The Best Practices Competition.
10 Passenger Services
In 2009, AB Lietuvos Geležinkeliai trains operated on 49 domestic lines and on 4 international lines: 185 trains on domestic lines and 6 trains (made up by the Company) on international lines.
A total of 22 trains of the railway companies from other countries came to Lithuania or passed the territory of this country in transit.
In 2009, a total of 4.4 million passengers were using the services of the Company including: • 3.5 million passengers on domestic trains; and • 0.9 million passengers on international trains.
Compared to 2008, the number of passengers transported had fallen by 13.6 per cent in 2009.
Passenger transportations in 2008–2009 (million people)
5.1 4.1 4.4 3.5 2008 2009 1.0 0.9
Domestic International Total transportations transportations
The revenues from passenger services including the State subsidies amounted to LTL 66.2 million in 2009.
Passenger revenues in 2008–2009 (LTL million)
68.8 66.2
39.9 39.5 2008
22.5 21.6 2009
5.1 3.9 1.3 1.2
Subsidies International Domestic Other Total transportations transportations
11 Marijampolė railway station, one of the most beautiful examples of Art Nouveau architecture.
In 2009, AB Lietuvos Geležinkeliai successfully implemented the following marketing solutions:
• Action for the young people to travel by train at cheaper prices: during this action young people from 10 to 26 received a discount of 30 per cent to travel by the 2nd and 3rd class of all domestic trains.
• Arranging the route Vilnius–Kretinga–Palanga, and back (from July to November): the price was reduced for the ticket on the route Vilnius–Kretinga–Vilnius.
• Since October 2009 the ticket price for the route Vilnius–Kaunas–Vilnius has been reduced, i.e. the price for onetime travelling on the route Vilnius–Kaunas–Vilnius has been reduced. During the action period, the number of passengers on the 2nd class trains grew by 8 per cent.
• Vilnius Railway Station–Vilnius Airport, and back for half of the price (the action was announced in Octo ber 2009). During the action period, passengers who obtained flight tickets at tourism agencies (departure from the International Vilnius Airport) received onetime coupons to travel from Vilnius Railway Station to the Airport and back at a 50 per cent discount. The action helped to stabilise the number of passengers on this route; their number was not decreasing.
12 Marijampolė railway station was constructed in 1924.
• Advance sales of tickets (the action was announced in December 2009). A 15 per cent discount was applied for the onetime 2nd class tickets on the route Vilnius–Klaipėda–Vilnius bought 3 or more days in advance. This action allowed optimum planning of rolling stock, thus reducing operating costs, and rare was the case when there were no tickets available.
• On the route Vilnius–Lazdėnai–Vilnius in the summer of 2009 the passengers’ bicycles were carried at a special discount. A cooperation agreement was signed with the administration of the Neris Regional Park on the promotion of railway transport; as a result, numbers of passengers on said route travelling to the Neris Regional Park by train increased about 4 times.
• Ignalina–Visaginas–Ignalina (the action is valid from November 2009 to June 2010): the onetime ticket price for the travellers on this route was reduced by approximately 15 per cent. During the first month of the action passenger numbers went up by approximately 40 per cent.
13 Rolling Stock
Timely and qualitative preparedness of the rolling stock of AB Lietuvos Geležinkeliai is one of the most important factors determining traffic intensity, efficiency and safety, as well as the factor related to envi ronment pollution.
The traction fleet of the Company consisted of the following in 2009: • 34 freight locomotives ER20CF (produced by Siemens); • 96 freight locomotives 2M62, of which 25 locomotives 2M62K with internal combustion engine D49 and 29 locomotives 2M62M with internal combustion engine Caterpillar; • 40 freight locomotives M62, of which 2 standard gauge locomotives and 16 locomotives M62K with internal combustion engine D49; • 5 passenger locomotives TEP60, 4 passenger locomotives TEP70, and 4 passenger locomotives TEP70BS; • one shunting locomotive TEM TMH; • 41 shunting locomotives ČME3, of which 5 locomotives ČME3MG with Caterpillar engine (1450 kW) and 17 locomotives ČME3ME with Caterpillar engine (940 kW); • 37 shunting locomotives TEM2, and one locomotive TGK2.
The locomotives have been allocated to Vilnius or Radviliškis Locomotive Depots with their workshops at Kaunas, Klaipėda, and Bugeniai. Traction rolling stock has been registered with the Register of Rolling Stock and Containers.
The freight wagon fleet consisted of 9,561 wagons with different purpose: • 1,958 covered wagons, of which 10 standard gauge wagons; • 228 flat wagons; • 1,854 low-sided wagons; • 1,876 tank wagons; • 3,645 other wagons.
The wagons are repaired by Radviliškis Wagon Depot, a subdivision of AB Lietuvos Geležinkeliai.
The performance of the freight traction rolling stock was 23,211 million gross tkm in 2009, a decline of 16.8 per cent from 2008.
Performance of freight trains (million gross tkm)
27,571 27,901 24,392 24,813 23,211
2005 2006 2007 2008 2009
14 On average, 49 freight locomotives were operated daily (62 locomotives in 2008). The average daily effi ciency of freight locomotives was 1,257.8 thousand gross tkm, up 1.5 per cent over 2008. The average daily run of freight locomotives was 539.8 km, up 3.7 per cent over the 2008 figure.
Average daily locomotive run (km)
530.2 539.8 512.9 520.8 520.3
2005 2006 2007 2008 2009
The average freight train weight was 2,712 tonnes (cf. 2,678 tonnes in 2008).
Average gross weight of a freight train (t)
2,712 2,587 2,621 2,652 2,678
2005 2006 2007 2008 2009
The operating speed grew from 46.4 km/h in 2008 to 47.4 km/h in 2009. Diesel fuel consumption per 10 thousand gross km fell to 20.85 kg (cf. 22.03 kg in 2008). The total diesel fuel consumption dropped by 23.8 per cent from 63.5 thousand tonnes in 2008 to 48.4 thousand tonnes in 2009.
The number of unscheduled repairs to locomotives went down by 10.1 per cent in 2009 (cf. 711 in 2009, and 791 in 2008). Running repair ER-3 was carried out to 40 locomotive units. The major repairs were conducted in cooperation with UAB Vilniaus Lokomotyvų Remonto Depas.
In 2009, a new shunting locomotive TEM TMH was purchased from a subsidiary company UAB Vilniaus Lokomotyvų Remonto Depas; it was manufactured using the new main frame and undercarriage of the Russian shunting locomotive TEM18, as well as power unit and management modules analogous to ČME3M produced by CZ LOKO.
The re-engining of the old internal combustion engines by new Caterpillar engines on locomotives ČME3 was further continued in 2009. A total of 8 locomotives ČME3 were thus modernised.
In July 2005, the contract for procurement of 34 new freight locomotives was signed between AB Lietuvos Geležinkeliai and Siemens TS AG. The first locomotive ER20CF was delivered in September 2007, while the last two locomotives ER20CF were supplied in April 2009.
15 AB Lietuvos Geležinkeliai focuses its attention on the modernisation of freight wagons. The experience of railway administrations from other countries and knowledge of specialised scientific institutions were used for this purpose.
The modernisation of freight wagons is being conducted in two ways: (1) purchase of new wagons, and (2) extension of the life cycle of existing wagons. In 2009, the life cycle was extended to 116 freight wagons (of which 87 tank wagons, 16 flat wagons, 10 low-sided wagons and 3 covered wagons).
In order to use the wagons efficiently, a total of 108 flat wagons were readjusted to 9 flat wagon units for the transportation of refrigerating containers, and 20 refrigerator cars were readjusted to covered wagons with heat insulating car bodies.
In 2009, the assessment in line with the RID (International Carriage of Dangerous Goods by Rail) require ments was undertaken to 500 tank wagons.
In 2009, the passenger rolling stock fleet consisted of the following: • 138 passenger trains; • 40 diesel trains; • 14 electric trains.
In 2009, the following rolling stock was purchased and put into operation in passenger services: • 2 railcars 620M manufactured in PESA Bydgoszcz Plant, Poland, in 2009; • 2 double-deck electric trains EJ575 produced in Škoda Vagonka Plant, the Czech Republic, in 2009; • 4 four-seat sleeping compartment cars manufactured in Tver Wagon-Building Plant, Russia, in 2008.
16 INFRASTRUCTURE
A total of LTL 232.3 million was allocated for the reconstruction and modernisation of railway infrastruc ture in 2009, of which LTL 12.9 million came from the State budget, LTL 133.3 million from the EU funds, LTL 38.2 million as a NIB loan and LTL 47.9 million from the Company’s funds.
The following main projects were carried out in 2009: • Replacement of 9.75 km of rails by new ones; • Replacement of 34 sets of turnouts by new ones; • Construction of 340 km of telecommunication networks; • Repairs to 4 bridges; • Reconstruction of Kaunas Railway Tunnel; • Acquisition of technological equipment.
In 2009, AB Lietuvos Geležinkeliai was implementing 107 infrastructure investment projects; the total value of the projects amounted to LTL 1.4 billion. The reconstruction of railway bridges and overpasses on International Corridor IX and the renovation of Kaunas railway tunnel were completed, telecommunication systems on the railway line State border with Latvia–Panevėžys–Tauragė–Pagėgiai and telecommunica tion installations on the line Kaišiadorys–Kybartai were modernised, the reconstruction of power supply installations at Radviliškis railway station was carried out, and the modernisation of marshalling yards on International Corridor IX was completed.
In 2009, the following projects were started to be implemented: construction of noise protection walls at Klaipėda station, reconstruction of the track area at Rimkai railway station, the first stage of the project on the development of Klaipėda railway junction (reconstruction of the track area at Draugystė station). The feasibility studies on the establishment of the Traffic Management Centre as well as on the development of Radviliškis railway junction were carried out.
In order to enhance competitiveness of the railway transport system on the international and domestic transport service markets, the reconstruction of railway lines is going to be continued in 2010–2012.The track repairs will be accompanied by the modernisation of telecommunication systems, signalling and pow er supply installations. The reconstructed infrastructure will allow increasing the speed of passenger trains to 160 km/h on separate sections, and of the weight of freight trains to 6,000 tonnes.
In 2009, the applications for the EU financial assistance for the following 9 projects were submitted. These were technical assistance (design work) for the modernisation of the line Vilnius–Kaunas to increase the speed to 160 km/h; modernisation of signalling and power supply installations at Kaunas railway station, on Palemonas–Rokai–Jiesia bypass, as well as on the line Kaunas–Kybartai; technical assistance (design work) for the construction of second tracks on the lines Telšiai–Lieplaukė, Kūlupėnai–Kretinga, Pavenčiai–Raudėnai, Plungė–Šateikiai, and Telšiai–Dūseikiai; installation of infrastructure diagnostics systems; reconstruction/ construction of railway overpass at Klaipėda; design work for the reconstruction of Rimkai railway station and of Pauostis track area; the first stage of the development of Klaipėda railway junction (reconstruc tion of track area at Draugystė station); the second stage of the development of Klaipėda railway junction (reconstruction of the pedestrian bridge at Klaipėda railway station). A financial assistance of LTL 302.3 million was received from the EU funds for the implementation of said projects. 17 The largest bridge in Lithuania – Lyduvėnai Bridge across the River Dubysa – celebrates the 95th anniversary in 2010.
TECHNICAL DEVELOPMENT AND INVESTMENT POLICY
The most important priorities for the development of Lithuanian railways are traffic safety, environmental issues, and competitiveness, i.e. diversified high quality customer-centric services.
In 2009, the following projects were further carried out by the Company: the modernisation of railway in frastructure, of passenger and freight rolling stock, implementation of advanced information technologies, developing cooperation between Klaipėda Port and railway transport, establishment of public logistics centres, modernisation and development of existing freight terminals, other strategic projects.
The projects carried out by the Company are being implemented on the basis of the Lithuanian Strategy for Absorbing the EU Structural Funds in 2007–2013; the said projects ensure successful integration of the rail way transport sector into the European transport system. The EU transport policy focuses on the develop ment of green corridors. The EU legislation and financial assistance provide a basis for developing more en vironmentally friendly railway transport business and to ensure its interaction with other transport modes. On 16 December 2009, AB Lietuvos Geležinkeliai hosted a forum, Lithuanian Intermodal Days 2009. During this forum the prospects for the development of intermodal transport and logistics centres, as well as the 18 Lyduvėnai bridge in the interwar period.
benefits for regions were discussed, and the agreement was signed on establishing an Initiative Group for the international project East–West Transport Corridor II (EWTC II) to be carried out within the framework of the EU Baltic Sea Region Cooperation Programme.
AB Lietuvos Geležinkeliai understanding the importance of investment in sciences has been supporting the educational institutions in Lithuania (Vilnius Gediminas Technical University, Kaunas Technological Uni versity, Petras Vileišis Railway Transport Department of Vilnius Technological and Design College, Vilnius Railway Transport and Business Services School) by financing the development of their laboratory facilities, further training for staff, acquisition of necessary specialised scientific literature, software and hardware, redecoration of laboratory premises etc.
Dealing with the issues important for the Company, the following research studies were conducted in 2009: the Analysis of Port Management and Control Models in the EU and CIS countries, of the subordination of tracks situated on the territory of a port, and of the interaction between a port and railway undertaking; TAF TSI (Technical Specifications for Interoperability for Telematic Applications for Freight) Analysis; Re ducing the Effect of Uneven Magnetisation of Rails Interfering with ALS Equipment; and Feasibility Study of Railway Sanitary Protection Zone. The research study on Estimating Emissions from Railway Vehicles was started to be conducted. 19 In 2009, the Company invested in Lithuanian railways LTL 475.5 million (cf. LTL 779.8 million in 2008), of which 57 per cent or LTL 270.5 million was own funds. The Company also absorbed LTL 133.5 million of the EU funds, LTL 13.2 million of the State budget funds, and LTL 58.3 million of the EIB and NIB loans.
Structure of investment in 2009
2.7%
28.1% Own funds 56.9% Borrowed funds EU funds Funds from State budget
12.3%
For implementing the projects within the framework of the State Investment Programme, a total of LTL 173.0 million was invested in 2009, of which LTL 14.1 million came as loans, LTL 12.2 million as own funds, LTL 13.2 million as the State budget funds, and LTL 133.5 million as the EU funds.
Investment funds in 2005–2009 (LTL million)
779.8
475.5 Own funds 429.1 419.1 327.4 Borrowed funds EU funds Funds from State budget
2005 2006 2007 2008 2009
Investments in businesses in 2009:
• LTL 232.3 million was invested in the reconstruction and modernisation of railway infrastructure; assets were acquired and the works performed for LTL 226.4 million;
• LTL 138.4 million was invested in freight services; non-current assets were acquired and the works per formed for LTL 129.4 million;
• LTL 72.8 million was invested in passenger services; assets were acquired and the works performed for LTL 60.3 million;
• LTL 30.5 million was invested in the development of information technologies; non-current assets were acquired and the works performed for LTL 35.2 million.
20 Traffic Safety
In order to ensure traffic safety on Lithuanian railways, the modern technology is being purchased by the Company, advanced IT installed, and the train traffic management system improved.
In 2009, the fall in freight volumes carried on Lithuanians railways resulted in a decline of traffic accidents in half.
Traffic accidents are investigated following the Rules on Investigating Railway Traffic Accidents and Elimi nating Their Effects approved by the order of the Lithuanian Minister of Transport and Communications. An Investigation Committee is set up which shall investigate the accident within a period of 10 working days and draw up a report on an accident indicating the circumstances of an accident, data on an accident, conclusions and the established failures. The Committee shall submit an official investigation file to the railway infrastructure manager, railway undertaking (the carrier), the State Railway Inspectorate under the Lithuanian Ministry of Transport and Communications, as well as to the Head of Accidents’ Investigation at the Ministry of Transport and Communications.
The main reasons for traffic accidents in 2009 were non-compliance with the instructions, work technolo gies or job descriptions.
In order to reduce the number of traffic accidents, it is necessary to focus attention on the selection of employees, their technical training and professional improvement.
On 9 February 2009, the State Railway Inspectorate under the Ministry of Transport and Communications issued the Safety Certificate and safety authorisations to AB Lietuvos Geležinkeliai.
The Safety Certificate proves that the Company follows the rules on establishing and applying the inter operability requirements for the Trans-European railway system as well as the rules on national traffic safe ty; that the staff qualifications are in line with Lithuanian legislation requirements, and rolling stock meets the technical, operational and railway traffic safety requirements. Safety authorisations here demonstrate that the Company is able to ensure safe management, maintenance and use of railway infrastructure, as well as safe organisation and management of train traffic.
A total of 11 road accidents occurred at the level crossings in 2009, during which 3 people perished and 2 were injured (cf. 13 road accidents in 2008 with 4 people perished and 4 injured).
21 Kaunas railway station dating back to 1952 has been included in the Register of Cultural Values of the Republic of Lithuania. The building was reconstructed in 2008.
ENVIRONMENTAL PROTECTION
Railway transport is the most environment friendly mode, therefore, environmental protection and preven tion, as well as reduction of pollution are among the priorities of Company activities.
In 2009, the Company operated 14 industrial and domestic wastewater treatment systems and 7 surface wastewater treatment systems. A total of 6 largest boiler-houses were reconstructed and started to use gas, less polluting fuel. Control measurements of atmospheric pollutants were conducted in these station ary pollution sources twice to four times a year. In 2009, two wastewater treatment systems and two scavenge units of locomotive air reservoirs were reconstructed.
In order to evaluate the impact of the Company’s activities (freight and passenger transportations) and that of potential pollution sources and of the places of accidents on the soil and groundwater, the monitoring of groundwater was continued in the subdivisions of the Company. Soil remediation works were conducted in 2009 on the territories where the exceeded pollution limits had been identified by ecogeological research data. Following the legal requirements, the waste was sorted out into secondary, communal, construction, hazardous etc. and delivered to waste management companies.
22 Kaunas railway station in the early 20th century. This building was blown up during WW II.
The railway noise was abated by implementing new technologies, modernising old rolling stock, acquiring new railway vehicles, repairing tracks, e.g. by replacing butt joint rails by longrails, as well as by carrying out planting projects.
The Company is developing 6 infrastructure modernisation projects with the procedures for evaluation of environmental impacts (implementation of the projects foresees the construction of noise protection walls).
23 Information Technologies
Major IT projects cover the establishment of data communication network, the design and installation of cargo accounting system, as well as ensuring information security. In 2009, a high-value project, the devel opment of a new server station, was completed.
The year 2009 saw further development and modernisation of the Company’s data communication net work, i.e. the fifth stage of this project was implemented. At this stage, the trunk segment was installed on sections Pagėgiai–Radviliškis–Obeliai, Šiauliai–Pakruojis, and Pavenčiai–Bugeniai.
Successful development and modernisation resulted in a rapid and reserved data transmission and in safe access to the Company’s centralised information resources on the aforementioned sections and entities, thus allowing further development of existing and new information technology systems, as well as rejecting the data transmission services provided by the third party at 10 railway stations.
In 2009, the information systems related to the computerisation of freight services accounting were further developed.
In the system Krovinys (Cargo), the module Application for Carriage was completed and expanded by new functions. The measures for handling and transmitting the information on hired wagons to other systems in the Company were implemented.
In cooperation with the State Seaport Authority, the interface between the information system Krovinys and the information system KIPIS at Klaipėda Seaport was developed.
In the system OPKIS (Operative Computerised Information System for Haulage), the changes and improve ment of the software for allocation of numbers to wagons used for domestic transportation and their ac counting on the public railway infrastructure network were conducted. Now the information on the move ment of motor railway vehicles can be accumulated and reports can be compiled on the OPKIS data base.
The information system for stations STOKIS was started to be implemented. In 2009, this system was installed at Kaunas railway station. Interfaces with information systems OPKIS and Krovinys were designed and installed.
The integration of these three information systems allows effective solution of the technological, organisa tional and financial issues related to freight traffic.
The project on the outfit of backup data centre was completed at the end of 2009. This project is of utmost importance to the Company as it ensures a reliable development and operation of information systems.
For the protection of technological premises of said centre the solution Lampertz developed by the com pany Rittal was employed. Namely, it is an armour-plated structure of 120 square metres protecting the technological premises from fire, water, explosion or other external effects.
In order to increase the effectiveness and reliability of the aforementioned data centre, AB Lietuvos Geležinkeliai employed a great number of advanced measures and exclusive technological solutions; some of them are unique not only in Lithuania but also in other Baltic States. One of these solutions was a new type diesel electric power plant. The plant is in line with the highest international reliability recommenda tions. 24 State-of-the art technologies were also applied in developing the air conditioning systems for the data cen tre. In order to save energy resources and to increase the reliability of the air conditioning system, the cold/ hot areas were fully separated in the data centre. The equipment cabinets were located so that the cold air flows entering for server ventilation and hot air flows leaving the servers were completely isolated. They did not mix with each other, therefore, a higher efficiency of air conditioning was reached; only the hot air rather than the entire indoor air was cooled down to required working temperature.
As of 1 January 2009, the Company’s financial accounting has been handled only with the help of SAP. While developing the system, functional technical documents on the accounting of investment manage ment and on the accounting of repairs have been prepared, on the basis of which the accounting of said items has been designed and implemented in the system.
With the aim to enhance security of the Company’s information systems, the following documents were finalised in 2009:
• The procedure for coordinating the protection of information. The list of the procedure for communi cating with other organisations and the guidelines for the protection of information were updated, the schedule of drafting comprehensive procedures for the protection of information for 2010–2013 was estab lished.
• The procedure for splitting responsibilities. The relevant courseware was prepared, people responsible for the control of meeting the regulations of information protection were appointed and trained in the Company’s subdivisions, and a supervising committee on meeting the requirements for the protection of information was set up.
• The procedure for protecting against malware and spyware.
• The procedure for backup copying. The check was conducted on proper operation of hardware and soft ware for backup copying, as well as on correct copying of important data.
• The procedure for user access management and supervision. The procedure description of registering users and granting access rights was drafted.
• The procedure for planning business continuity, i.e. recording and analysis of all incidents related to the protection of information, as well as to the safety of information systems, and selection of technical and organisational measures, if necessary, in order to avoid or reduce the number of incidents in the future.
25 Liepkalnis stone overpass in Vilnius.
International Relations
International cooperation contributes to gaining more importance on the market of transport services.
Geographical location of Lithuania and existing business relations determine the presence of AB Lietuvos Geležinkeliai in the dimension of legal and economic regulation of the EU and CIS countries.
Special attention was paid to the activities of OSJD, an organisation for cooperation of railways uniting 1520 mm gauge railway undertakings. Our specialist staff have been participating in OSJD working parties; they are drafting new documents and revising the existing ones. In 2009, AB Lietuvos Geležinkeliai hosted several conferences of OSJD: a conference of Passenger Transport Commission on international train time tables 2009/2010 and a conference of Ad Hoc Working Party II on the revision issues of SMGS (both in May), a conference of Expert Commission on Infrastructure and Rolling Stock to discuss the issues on the use and diagnostics of concrete sleepers, beams, and turnouts (in June), a conference of Ad Hoc Working Party on drafting Annex 14 to SMGS (in December). On 8–11 December 2009, meetings of representatives authorised by the OSJD Conference of Ministers and Managing Directors were held in Warsaw. In these meetings, important issues of OSJD activities and their results were discussed, as well as guidelines for further work defined. 26 Liepkalnis overpass was constructed in 1862.
In May and October 2009, managers and responsible specialist staff of AB Lietuvos Geležinkeliai participated as observers (in a consultative capacity) in the 50th and 51st meetings of the Railway Transport Council held in Belarus and Uzbekistan respectively. The issues important to railway undertakings, members of the Council, on the organisation of freight and passenger transportations, and on settlement for the use of freight wagons were discussed. The decisions relating to further activities of the Council were also taken in these meetings.
In 2009, AB Lietuvos Geležinkeliai further participated in the activities of UIC, International Union of Rail ways. The Company has been a member of this organisation since June 1992. The Company managers participated in the 74th and 75th General Assemblies of UIC, while the specialist staff took part in working parties dealing with legal issues, as well as those relating to statistics, freight traffic, and safety.
On 12–13 March 2009, a meeting was held in Vilnius where Johannes Ludewig, Executive Director of CER, the Community of European Railway and Infrastructure Companies, and top officials of the Lithuanian Ministry of Transport and Communications discussed the issues of railway sector reform, financing, and conditions for competition between railway and road transport.
In view of negative changes in the overall economic situation over the past year and taking into account the necessity for discovering new possibilities in developing freight traffic, the core activity generating income for the Company, the attention was focused on partner relations with neighbouring railways. 27 AB Lietuvos Geležinkeliai organised in Vilnius bilateral and multilateral meetings with the heads of Latvian, Belarusian, Russian and Kaliningrad railway undertakings during which important cooperation issues were discussed, technological problems were dealt with, ways for solving difficulties and increasing freight flows were being explored by sharing existing experiences. On 25 June 2009, the Company organised interna tional conference The Benefit of Public Logistics Centres for Regions and Transport System in the Countries: Examples of the Best Practices; specialist staff on logistics centres from German Großbeeren municipality and from the Advisory Council of German Freight Yards Community took an active participation in this conference. The conference was a great opportunity for familiarising potencial partners and clients of AB Lietuvos Geležinkeliai with the services provided by the Company.
Considering the trends in transport policies and developing freight transportations by sea and rail as well as in order to find new clients, several meetings with Chinese businessmen and representatives of ports and logistics companies as well as with politicians were held in 2009. In July 2009, Company’s managers participated in the meetings with the Chinese Transport Minister, representatives of transport company COSCO Group, Chinese JIE CHENG INTERNATIONAL LOGISTICS together with Russian TAMCO GROUP delegations. During the meetings, prospects of close cooperation while implementing the project on East– West Transport Corridor (from China to Europe through Kazakhstan, Russian, Belarus, and Lithuania) and on developing COSCO project Land Bridge were examined, as well as discussing the issues on cooperation with AB Lietuvos Geležinkeliai.
AB Lietuvos Geležinkeliai contributed to organising the Lithuanian–Belarusian International Economic Fo rum and Belarus EXPO 2009 held on 16 September 2009. This forum became an excellent opportunity for enhancing close cooperation of railway undertakings from neighbouring countries and for attracting atten tion of Lithuanian and Belarusian legal entities to rail freight services.
On 19 October 2009, representatives of AB Lietuvos Geležinkeliai participated in the Asia–Europe Trans port Development Forum held in Vilnius; the forum was organised in parallel with the 1st ASEM Transport Ministerial Meeting. During the forum, representatives of business companies and State institutions from different countries in Europe and Asia could learn about the services provided by AB Lietuvos Geležinkeliai and their advantages with respect to other transport modes.
On 15–16 December, the Lithuanian Intermodal Transport Technology Platform Forum was held in Vilnius; one of the main organisers of this forum was AB Lietuvos Geležinkeliai. The forum was noted for the fact that AB Lietuvos Geležinkeliai signed the agreement on joining the EIA, the European Intermodal Associa tion, as an associate member.
28 Human Resources
The Company had employed 10,506 people by the end of 2009.
Change in staff numbers
11,327 10,827 10,535 10,717 10,506
2005 2006 2007 2008 2009
Due to the economic downturn in Lithuania and in order to maintain the Company’s competitive abilities, changes in work organisation, as well as in the organisational structure were made in 2009: the number of employees was optimised by implementing new technologies and cancelling ineffective operations; the management costs were reduced by merging Company’s subdivisions. Compared to 2008, the number of employees had decreased by 211. The staff turnover was 3.4 per cent in 2009.
The number of employees at AB Lietuvos Geležinkeliai Group
1.1% 4.0% 1.2% 4.6% AB Lietuvos Geležinkeliai 89.1% UAB Vilniaus Lokomotyvų Remonto Depas UAB Gelmagis UAB Geležinkelio Tiesimo Centras UAB Gelsauga
In 2009, the average level of monthly salaries also decreased: the variable part of a salary had been re duced, irregular (onetime) quarterly and yearly performance-related payments had not been paid, salaries and monthly payments had been reduced for high-level personnel. The average monthly salary amounted to LTL 2,487; compared to 2008, it had decreased by 15.8 per cent (cf. LTL 2,954 in 2008). However, the average monthly salary in the Company exceeded the average monthly salary in the country by about 21 per cent.
The labour productivity was LTL 112.7 thousand of sales income per employee in 2009, a decline of 24.2 per cent from 2008 (cf. LTL 148.7 thousand per employee in 2008).
29 AB Lietuvos Geležinkeliai administration building – part of the history of Vilnius, an architectural monument.
Change in labour productivity (LTL thousand/employee)
148.7 133.5 111.5 112.7 97.6
2005 2006 2007 2008 2009
The labour productivity according to relative production was 1,314.1 thousand tkm/employee, a fall of 18.7 per cent from 2008 (cf. 1,616.6 thousand tkm/employee). The decline in labour productivity was de termined by decreased transportation volumes in freight and passenger services.
In 2009, a total of LTL 7.1 million was spent on occupational safety and health care. Approximately LTL 1.1 million was allocated for health care, medical examinations, maintenance of first-aid posts, about LTL 114 thousand for vaccines against tick-borne encephalitis and flu.
30 The building constructed in 1903 hosted Polesė railway administration at that time.
Company funds were allocated for partial financing of the children’s summer camp in Ignalina, as well as for maintaining the staff training, rehabilitation and recreation centre in Giruliai, where the employees could have leisure time on their summer holidays with their family members.
Implementation of modern technologies resulted in the need for new capacities and competences. In 2009, as many as 3,177 employees attended training courses, a rise of 17 per cent over 2008. The training costs in 2009 were by 44 per cent less than in 2008.
In 2009, a total of 637 employees studied at universities and colleges; contracts for financing of studies were signed with 23 employees studying railway transport business, following which up to a 50 per cent of studying costs were to be covered by Company funds. Good students unable to pay for their studies received financial allowances. In 2009, a total of 182 employees completed their studies.
31 Management Structure of AB Lietuvos Geležinkeliai
Ministry of Transport and Communications of the Republic of Lithuania
AB LIETUVOS GELEŽINKELIAI
Head Office
Railway Infrastructure Rail Baltica Directorate projeCT Directorate
Information Technologies Freight Directorate Centre
Representative Office in Moscow, Passenger Directorate the Russian Federation
Subsidiary Companies
32 Main Events
• April 2009: The last two freight locomotives ER20CF out of 34 purchased from Siemens were delivered to the Company.
• 31 July 2009: The first contract on Rail Baltica project was signed. Following this contract, the winner of the tender, UAB Kelprojektas, has undertaken to draft a special plan of the railway section from Lithuanian border with Poland to Marijampolė and to conduct the evaluation of environmental impacts.
• August 2009: The Company organised festive events to commemorate the 150th anniversary of railways in Lithuania.
• September 2009: A modern turnout laying machine DESEC TL-70 produced in Finland was presented at Lentvaris railway station.
• 19–20 October: The Asia–Europe Transport Ministerial meeting was held in Vilnius. The participants of the meeting signed the Vilnius declaration enhancing closer cooperation between Asian and European countries with the view of ensuring a long-term transport development.
• October 2009: The Viking project of combined traffic was announced by the European Intermodal As sociation as the winner of The Best Practices Competition.
• 5 November: The reconstruction of Vaidotai railway station that lasted for four years was completed. After reconstruction, Vaidotai railway station became a fully automated, most modern marshalling yard not only in Lithuania but also in Eastern Europe.
• 17 November: Kaunas railway tunnel was opened for traffic after the two years of overhaul repair works.
33 Independent Auditor's Report
34 35 Balance sheets
Group Company As of 31 As of 31 As of 31 As of 31 ASSETS December 2009 December 2008 December 2009 December 2008 A. Non-current assets 3 803 119 797 3 658 273 725 3 845 227 396 3 726 562 878 I. INTANGIBLE ASSETS 15 192 046 16 857 929 15 079 667 16 735 367
II. PROPERTY, PLANT AND EQUIPMENT 3 775 611 677 3 625 300 433 3 715 445 119 3 583 833 974
II.1. Land and buildings 754 110 051 738 006 713 728 382 947 718 833 886
II.2. Structures and machinery 1 435 705 811 1 371 029 051 1 402 999 060 1 346 214 756
II.3. Vehicles 991 043 801 837 552 616 992 629 875 839 036 792
II.4. Other equipment and tools 38 401 344 25 958 418 36 561 018 23 846 033
II.5. Other property, plant and equipment 50 068 904 140 438 578 49 799 749 135 278 570
II.6. Construction in progress and 505 378 756 510 917 017 504 169 460 519 225 897 prepayments II.7. Investment property 903 010 1 398 040 903 010 1 398 040
II.7.1. Buildings 903 010 1 398 040 903 010 1 398 040
III. FINANCIAL ASSETS 6 018 081 6 733 982 108 919 551 117 414 714
III.1. Investments into subsidiaries and 5 806 499 6 544 238 108 707 971 117 224 971 associated companies III.2. Non-current receivables 211 582 189 744 211 580 189 743
IV. OTHER NON-CURRENT ASSETS 6 297 993 9 381 381 5 783 059 8 578 823
IV.1. Deferred income tax asset 6 297 993 9 381 381 5 783 059 8 578 823
B. Current assets 337 964 141 404 794 903 290 426 981 343 854 063 I. INVENTORIES AND PREPAYMENTS 121 478 011 145 314 979 105 990 047 112 263 325
I.1. Inventories 111 363 616 124 626 507 96 210 079 99 744 799
I.2. Non-current assets held for sale 3 220 824 3 140 974 3 220 824 3 140 974
I.3. Prepayments 6 893 571 17 547 498 6 559 144 9 377 552
II. CURRENT RECEIVABLES 146 448 998 200 995 710 138 613 520 189 767 891
II.1. Trade receivables 108 400 185 155 357 915 96 550 913 142 656 881
II.2. Receivables from subsidiaries and 26 667 21 087 422 057 1 067 603 associated companies II.3. Other receivables 38 022 146 45 616 708 41 640 550 46 043 407
III. OTHER CURRENT ASSETS 40 961 438 89 679 28 359 678 88 669
III.1. Bonds 34 147 285 - 28 317 919 -
III.2. Other current investments 5 829 366 - - -
III.3. Other current assets 984 787 89 679 41 759 88 669
IV. CASH AND CASH EQUIVALENTS 29 075 694 58 394 535 17 463 736 41 734 178
TOTAL ASSETS 4 141 083 938 4 063 068 628 4 135 654 377 4 070 416 941
36 Group Company As of 31 As of 31 As of 31 As of 31 ASSETS December 2009 December 2008 December 2009 December 2008 C. OWN EQUITY 2 198 663 092 2 241 893 681 2 196 411 193 2 240 644 822
I. EQUITY 2 149 027 000 2 089 814 899 2 149 027 000 2 089 814 899
I.1. Share capital (subscribed) 2 149 023 000 2 089 812 000 2 149 023 000 2 089 812 000
I.2. Share premium 4 000 2 899 4 000 2 899
II. REVALUATION RESERVE (RESULTS) - - - -
III. RESERVES 44 049 912 42 399 601 44 049 912 42 399 601
III.1. Legal reserve 36 500 000 31 000 000 36 500 000 31 000 000
III.2. Other reserves 7 549 912 11 399 601 7 549 912 11 399 601
IV. RETAINED EARNINGS (DEFICIT) 5 586 180 109 679 181 3 334 281 108 430 322
IV.1. Current year’s profit (loss) 14 036 255 109 679 181 13 033 215 106 505 965
IV.2. Previous year’s profit (loss) (8 450 075) - (9 698 934) 1 924 357
D. GRANTS AND SUBSIDIES 1 078 625 876 898 520 374 1 077 100 970 898 383 052
E. LIABILITIES 863 794 970 922 654 573 862 142 214 931 389 067
I. NON-CURRENT LIABILITIES 436 418 719 422 428 781 425 365 740 415 598 018 I.1. Financial borrowings 421 012 588 412 769 031 410 151 995 406 953 411
I.2. Provisions 15 391 524 9 645 143 15 199 138 8 630 000
I.3. Other accounts payable and non-current 14 607 14 607 14 607 14 607 liabilities II. CURRENT LIABILITIES 427 376 251 500 225 792 436 776 474 515 791 049
II.1. Current portion of non-current 54 934 678 41 209 230 54 934 678 38 293 409 borrowings II.2. Financial borrowings 28 021 329 - 28 021 329 -
II.3. Trade payables 178 731 850 278 532 747 174 845 904 253 709 966
II.4. Accounts payable to subsidiaries and 696 786 2 957 409 20 170 321 61 858 032 associated companies II.5. Prepayments received 11 654 565 8 183 791 11 559 841 7 843 716
II.6. Taxes payable 4 202 392 9 696 161 3 002 189 1 097 890
II.6.1. Income tax liabilities 47 028 1 221 203 - -
II.6.2. Other taxes 4 155 364 8 474 958 3 002 189 1 097 890
II.7. Labour-related liabilities 54 578 669 72 594 249 49 957 605 66 151 592
II.8. Provisions 3 636 710 1 712 787 3 358 318 1 588 231
II.9. Other accounts payable and current 90 919 272 85 339 418 90 926 289 85 248 213 liabilities TOTAL EQUITY AND LIABILITIES 4 141 083 938 4 063 068 628 4 135 654 377 4 070 416 941
37 Income statements
Group Company 2009 2008 2009 2008 I. Sales 1 185 573 026 1 596 881 697 1 183 523 415 1 593 920 824 II. Cost of sales (1 034 610 870) (1 294 980 201) (1 043 100 319) (1 309 555 028) III. Gross profit 150 962 156 301 901 496 140 423 096 284 365 796 IV. Operating expenses (128 079 765) (185 268 269) (119 547 591) (171 583 553) V. Profit from operations 22 882 391 116 633 227 20 875 505 112 782 243 VI. Other activities VI.1. Income 10 391 590 22 686 165 10 424 158 20 014 106 VI.2. Expenses (1 803 034) (5 022 041) (1 943 720) (2 398 532) 8 588 556 17 664 124 8 480 438 17 615 574 VII. Financial and investment activities VII.1. Income 11 908 512 18 027 689 12 072 719 16 443 984 VII.2. Expenses (29 564 316) (24 199 954) (29 084 042) (23 462 148) (17 655 804) (6 172 265) (17 011 323) (7 018 164) VIII. Profit from ordinary activities 13 815 143 128 125 086 12 344 620 123 379 653 IX. Extraordinary gain - - - - X. Extraordinary loss - - - - XI. Profit before tax 13 815 143 128 125 086 12 344 620 123 379 653 XII. Income tax 221 112 (18 445 905) 688 595 (16 873 688) XIII. Net profit 14 036 255 109 679 181 13 033 215 106 505 965
38 2010
AB Lietuvos Geležinkeliai Mindaugo g. 12/14 LT-03603 Vilnius Lithuania Phone +370 5 269 2038 Fax +370 5 269 2128 Email: [email protected] 40 www.litrail.lt