SJ AB Annual Report 2009 Annual Review
Sidhuvud
The sustainable travel option
Market share medium-distance trips Market share long-distance trips Excluding travel to and from Norrland
60 60 17 26 53 4 Contents 1 15Bus 79 5 5% Air 1 % Bus 4 % Air 17 % 50 50 Train 15 %
40 40 Significant events in 2009 2 Financial Calendar 5 year summary 3 Interim report January – March: April, 2010 30 30 75 Car 79 % Car 53 % Interim report January – June: August, 2010 Train 26 % Comments from the CEO 4 20 20 74 Vision and business concept 7 Interim Report January – September: October, 2010 Objectives 8 Year-end report: February, 2011 10 10 73 Annual report 2010: March, 2011 Strategies 10 0 0 72 Source: Swedish Travel and Tourist Data Base A profitable SJ benefits everyone 12 Reports 2009 71 Many players in travel process 13 SJ’s Annual Report 2009 is published in two sections: Why did you choose to travel by train? Customer Satisfaction Index Tomorrow’s train travel 15 70 an Annual Review and a Financial Report. In addition, Travelling by train is good for the environment, % Deregulation of the Swedish rail market 16 SJ publishes a Sustainability Report. Expansion into new markets 21 6060
New trains – new customers 22 The Annual Report and Sustainability Report can be 5050 75 7575 Subsidiaries 24 ordered from: 4040 74 7474 The SJ brand changes tracks 26 SJ AB, Communications SJ’s history 28 SE-105 50 Stockholm 3030 73 7373 SJ today 30 [email protected] 2020 72 7272 SJ in the future 32 All reports are available at www.sj.se 1010 71 7171 % Here’s what we do with customer opinions 35 50 For questions, please contact the SJ Press Office at 40 Who travels with SJ? 37 00 70 % 7070 +46-10-751 51 84. 30...... 0 5 0 6 0 7 0 8 09 0 6 07 0 8 09 Punctuality right on track 38 20 Offers onboard 40 10 = Satisfied customers 0 05 06 07 08 09 Sweden’s largest travel agent 43 10 Source: SJ CSI survey Attractive employer 44 05 06 07 08 09 The heart of the journey 46 % % Return on equity, % Equity/assets50 ratio, % Board of Directors 50 % Executive Management 51 4040 Demanding owner 52 5050 4040 Satisfied chairman 53 Target 30%30 1515 10 Directors’ report in brief 54 05 06 07 08 09 2020 Governance at SJ 56 Target 10%10 Contact information 57 10 55 10
20 00 00 This Annual Report was produced by SJ in association with Publicera Information AB. 05 06 07 08 09 0 5 0 6 0 7 0 8 09 005 5 006 6 007 7 0 808 0909 Photography: Patrik Engström, Erik Svensson and Samuel Ahlin. Printing: Elanders Sverige AB. 15 We would like to thank all of the customers and employees who participated in the making of this Annual Report. . 10
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2 SJ Annual report 2009 Annual Review 1 Significant events in 2009 5 year summary
• Profit after tax was SEK 460 million (525). entitled to deliver and receive passengers in Sweden. Key data summary, Group • Return on equity was 11.2 percent and the equity/assets • Stockholmståg signed a new five-year contract with AB ratio was 41 percent. Storstockholms Lokaltrafik (SL) regarding commuter train Key financial ratios (MSEK) 2009 2008 2007 2006 2005 • The second step in deregulating the Swedish rail traffic traffic. The contract value is approximately SEK 7,000 mil- Net sales 8,741 8,992 8,230 6,938 5,690 market was taken on 1 October. The implication is that a lion and the contract period extends to the end of 2016. foreign operator conducting cross-border traffic would be Operating profit 629 795 814 615 666 Operating margin (%) 7.2 8.8 9.9 8.8 11.6 Profit for the year 460 525 493 368 1 203 January – March April - June Return on equity (%) 11.2 13.5 14.1 11.5 49.8 Equity/assets ratio (%) 41.0 40.4 36.6 33.2 31.7 Investments 595 1 011 380 590 1 397 – Travel with SJ AB increased by 3 percent, ad- – Travel with SJ AB declined by 5 percent. Adjusted for Average number of employees 4 439 4 539 4 053 3 581 3 153 justed for the Öresund contract. the Öresund contract, travel declined by 1 percent. 10 – The Government tabled bill 2008/09:176 con- – On 16 June, The Riksdag passed the Government bill Statistics cerning the deregulation of Swedish rail traffic. “Competition on the tracks”. 8 – SJ decided not to submit a tender for Västtrafik. – In June, SJ announced it would lay off 215 employ- SJ AB supply and load factor ees. Passenger kilometers, million 7,038 67,156 6,467 6,160 5,673 Seat kilometers, million 12,915 13,263 12,510 12,318 11,617 Load factor, % 54 4 54 52 50 49 Number of journeys, millions 36.3 40.1 38.4 37.4 34.9 July - September October - December 2 10000 80 60 Environment
0 70 8000 – Travel declined by 8 percent. Adjusted for the Öresund 0.89 0.85 1.36 1.26 1.50 – Travel with SJ declined by 10 percent. Adjusted 50 CO2, grams per person/km contract travel declined by 3 percent. for the loss of the contract for the Öresund railway 60 kWh consumption/pkm, electric train 0.08 0.07 0.09 0.10 0.10 6000 40 operations, travel declined by 4 percent. – SJ refrained50 from submitting a tender for the Östgöta- 10 1) – Government proposal SOU 2009:74 to create se- pendeln commuter route and from the procurement Punctuality % 40 30 parate high-speed tracks was tabled. 4000 process for the Krösatågen. SJ focused instead on 8 30 SJ AB 91 90 90 90 91 – The Swedish Rail Administration announced hig- 20 developing its own commercial traffic in these regions. Stockholmståg KB 92 90 87 842) 2000 20 6 her track fees, whereby fees in 2013 will be dou- – SJ launched the wireless portal mobil.sj.se 2) 10 Norrlandståg AB 83 85 ble their present level. through10 which customers can buy tickets and access 0 4 traffic0 information in their mobile phone.0 1) For SJ AB punctuality is stated as arrival at final destination within 5 minutes, for Stockholmståg KB within 3 minutes and for Norrlandståg AB within 15 2 minutes. Nettoomsättning Operativt kassa öde 2) June - December. Annual profit/loss Net sales Cash flow from operating activities 0 Sick leave absence, % 1500 1400 SEK SEK10000 SEK1500 10 million million million SJ AB – Customer Satisfaction Index 1200 1,2001200 1200 8,0008000 1,2001200 88 1000 1,0001000 900 2006 2007 2008 2009 6,0006000 900900 66 800 800800 Comfort 71 73 72 72
600 600 600 Information 73 75 76 78 600 4,0004000 600600 44
400 400 Punctuality 63 61 59 60 400 300 2,0002000 300300 Customer care 73 74 73 75 22 200 200200 CSI Total 1) 71 73 73 74 0 0 00 00 00 00 05 06 07 08 09 0 5 0 6 0 7 0 8 09 0 5 0 6 0 7 0 8 09 0 5 0 6 0 7 0 8 09 1) Each entry is separate, also total CSI. 0 5 0 6 0 7 0 8 09
2 SJ Annual report 2009 Annual Review 3
Comments from the CEO Comments from the CEO
”Because SJ is a strong company with stable profits, SJ is on a new track I’m not worried about increased competition”
e can look back on another good year, on several fronts, while persevering with the stream- expansion initiatives include running more trains to thanks to our customers and our talented lining program that will cut our costs by 15 percent Oslo and beefing up service from southern Sweden to W employees. in 2010. We implemented the first half of this pro- Copenhagen’s Kastrup airport. We also intend to grow While the number of SJ passengers declined in gram in 2009. About 200 employees became redun- our service to Berlin, Hamburg, and Brussels by con- 2009, air travel fell much more sharply. SJ’s overar- dant, but with creative, flexible solutions only 70 jobs necting SJ’s service to the European rail network, allo- ching ambition is to continue to capture market were lost. wing us to offer new options for our customers to tra- share from other modes of transport. With more railway operators in the market, lower vel with us. Our initiatives to upgrade service, establish variab- prices can be expected, but our cost-cutting measu- We’re establishing new partnerships for expansi- le pricing, expand our offering, and improve punctu res will increase our competitiveness. Our variable on, both in Sweden and abroad, while nurturing our ality are clearly attracting passengers. The envi- pricing model enables us to offer a ticket for every recent partnership with SAS. The partnership is desig- ronment and the climate also benefit when more need and every budget, making it important to cla- ned to improve integration of the two modes of trans- people travel by rail, since the train is the most rify our various offers so that customers know what portation, while offering even more options to combi- environmentally friendly form of transportation in to expect when they travel with us. We’ll be concen- ne rail and air for selected destinations and routes. terms of energy consumption. trating on this area in 2010. But now is not the time to rest. To defend our No government subsidies market position, we must further upgrade our servi- We play to win Competition requires a level playing field, which ce and ensure consistent quality. Yesterday’s “good Because SJ is a strong company with stable profits, places demands on the authorities and regulatory enough” won’t cut it tomorrow. I’m not worried about increased competition. More bodies who are laying the foundation. In practice, For years, Sweden has had free competition on players will enter the market over time; some have much more must be done than just opening borders cent. It’s in everyone’s interest, not least that of the services contracted by regional transport authoriti- already become established through contract rail to other operators. Already now, we see rail operators environment, for rail to at least double its share. We es. SJ holds about 80 percent of the Swedish pas- services. To enter the commercial rail market they’ll in procurement rounds submitting bids that don’t can only do this with more tracks for high-speed senger rail market. With free competition, SJ no also have to build up a sales organization, acquire really have a sound financial basis. Allowing govern- trains. The rest of Europe is rapidly expanding its longer has sole rights to commercial service, which modern trains, and last but not least, create a fea- ment-owned and subsidized rail operators to having high-speed network. In 2009 we worked with other means that more operators are offering long-dis- sible timetable with connections if they’re going to access to the Swedish rail market could push out industry players to form the non-profit organization tance rail service on the main lines. Beginning with compete with SJ. commercial companies such as SJ, Arriva, and Veolia Future Rail Sweden to encourage Sweden to come to the annual allocation of railway routes for 2011, We’re investing in the future and all signs say that – moving the Swedish railroad industry back to squ- a decision on this matter. and ahead, the new Swedish Transport Administra- rail travel is on the rise. We expect to put our 20 new are one, but with rail service run by foreign monopo- Finally, I would like to express my heartfelt thanks tion will decide which parties receive which routes. high-speed trains into service from late 2010 to mid- lies. SJ does not receive government subsidies. to all of our employees for their outstanding efforts 2011. New trains will enable us to offer better servi- Competition also requires sufficient capacity in during the year. I also want to thank all of our custo- Public benefit ce and faster travel times to more destinations, whi- the track system, though this is not the case today. mers and I promise that we will continue to do our If several rail companies apply to run the same rou- le improving the structure of our fleet. The main lines were built 150 years ago and if rail- best to live up to your demands and expectations. te on the same schedule, the route will go to the We’re making serious investments in moderni- road service is to grow, more tracks are essential. SJ wants to be your first choice when you plan your operator that provides the greatest public benefit. zing and upgrading parts of the current fleet, while Consequently, SJ supports the proposal to build trip. In addition, differentiated track fees optimize use developing new services on and off the trains. a separate high-speed network in Sweden. Building of the entire rail network. Track fees determine the In 2009 we also successfully identified and resol- high-speed tracks costs the same as building con- best way for regional trains, commuter trains, high- ved the technical problems on the X 2000, allowing ventional rails. The proposed high-speed rail net- speed trains, and other long-distance trains to balan- more effective use of our premium product. work would enable us to double passenger rail ser- ce track usage. We are in favor of differentiated track SJ will continue to expand in new markets, both at vice compared with current track capacity. On the fees. home and abroad. For example, at home in Sweden Stockholm – Malmö route, rail has 24 percent of the Jan Forsberg SJ will continue to strengthen its competitiveness we will develop our Norrland traffic. Our international market, while air has 31 percent and cars 44 per- President and Chief Executive Officer
4 SJ Annual report 2009 Annual Review 5 Vision and business concept
e will continue to be Sweden’s leading train rail services in three steps. SJ rail services are mana- operator and our customer’s first choice. ged on a commercial basis, which means that SJ de- W The Swedish government owns SJ AB and cides on routes, frequency, and services in general. has tasked us with operating passenger rail services Contract rail services are rendered on a contract on commercial terms and conditions. With deregu- basis with the regional public transport authorities lation of domestic traffic from October 2010 and the or Rikstrafiken and are procured in competition with opening of competition in 2011, high awareness of other players. SJ’s offer and strong confidence in our service and Regional public transport authorities engage us quality are more important than ever. to provide regional services, such as the tendered contract for the Stockholm commuter trains. SJ rail services and contract rail services Interregional routes that cannot be considered SJ’s passenger traffic is divided into SJ rail services profitable are subject to competitive bidding by and contract rail services. Rikstrafiken. One such example is Norrland traffic, SJ rail services are interregional; in the past, SJ with services currently provided by SJ’s subsidiary enjoyed exclusive rights in this segment. The Riks- Norrlandståg. dag (Parliament) has decided to deregulate these
Markets Customers
Our markets are long-distance, regional, commuter, SJ customers include travellers, corporate customers, and night rail services. We operate different products and transport authorities. Travellers are divided into on the different markets. Our high-speed trains, con- the segments business travellers, leisure travellers, sisting of the X 2000 and the new high-speed trains, and commuters. Business travellers account for 14 provide long-distance rail services on SJ’s main routes. percent of volume, leisure travellers for 44 percent, InterCity and night trains also provide long-distance and commuters for 42 percent. service, while regional service is provided in areas such as Mälardalen, primarily with double-decker trains.
Business Vision concept Core values All aboard! Efficient and Reliable, safe, environmentally convenient, friendly travel environmentally proactive
6 SJ Annual Report 2 0 0 9 Annual Review 7 Riksgränsen Björkliden Narvik Abisko
Kiruna
Gällivare
Porjus
Jokkmokk Murjek
Kåbdalis
Boden Moskosel Älvsbyn Luleå Arvidsjaur Sorsele
Storuman Jörn Objectives Bastuträsk Dorotea Vindeln Hoting Vännäs Umeå
Trondheim Mellansel Duved Åre Järpen Krokom Storlien Undersåker Långsele Östersund
SJ will be a modern, profitable customer-oriented and sustainable travel company. Svenstavik Bräcke Åsarna Ånge Härnösand Timrå As competition increases, we will continue to be the customer’s first choice. We Sundsvall measure our performance in three categories: business objectives, financial objec- Sveg Ljusdal Hudiksvall tives and operational objectives. Tandsjöborg Järvsö
Bollnäs Söderhamn Orsa Mora Rättvik Ockelbo Malung Leksand Gävle Falun Storvik Sandviken Borlänge Kongsvinger Vansbro Tierp
Lilleström Torsby Ludvika Avesta Krylbo Oslo Charlotten- Sala berg Fagersta Hällefors Uppsala Ski Sunne Enköping Arvika Västerås Arlanda Köping Bålsta Moss Kil Karlstad Frövi Märsta Hovsta Strängnäs Sarpsborg Grums Arboga Stockholm Fredrikstad Kristinehamn Örebro Eskilstuna Läggesta Halden Säffle Degerfors Kumla Kornsjö Flen Södertälje Strömstad Åmål Laxå Hallsberg Gårdsjö Katrineholm Nynäshamn Ed Mellerud Tanum Mariestad Nyköping Töreboda Lidköping Munkedal Öxnered Motala Norrköping Uddevalla Vänersborg Skövde Linköping Trollhättan Mjölby Falköping Åtvidaberg Stenungssund Herrljunga The Swedish rail network Tranås Business objectives Operational objectives Alingsås Kisa Jönköping Göteborg Borås Eksjö Västervik Kinna Limmared Nässjö Vimmerby Kungsbacka Vaggeryd Hultsfred Sävsjö Sweden’s railway network is Vetlanda Smålands- Värnamo Berga Travel declined by 2 percent in 2009 for compara- Our customer objectives were to improve our po- Varberg stenar just over 12,000 km long, of Falkenberg Alvesta which 8,000 km is single track. ble service. Our market share for long-distance ser- sition in the Swedish Quality Index (SKI) to 64.0, Växjö Nybro Halmstad Markaryd Kalmar Just over 11,000 is electrified. vice (over 300 km) declined from 28 to 26 percent, and our own Customer Satisfaction Index (CSI) to Laholm Älmhult Emmaboda Båstad Osby and for medium-length trips (100-300 km) from 16 75. The CSI rose to 74, so it came as a surprise Ängelholm Karlshamn Klippan Hässle- Karlskrona holm Ronneby to 15 percent. that the SKI declined to 55.6. We conduct nume- Helsingör Helsingborg Sölvesborg Kristian- Landskrona Höör Lines operated by SJ in 2009 SJ estimates that travel will remain unchanged rous surveys every year to refine and improve our Eslöv stad Köpenhamn Lund Lines operated by other operators Tomelilla Kastrup Simrishamn in 2010, but our objective is to maintain or grow our offers, services and internal processes, as well as Malmö 100 km market share. to strengthen our customer focus throughout our Trelleborg Ystad business. One employee objective was to reduce sick leave, which declined from 5.1 percent to 4.6 percent. Our objective for the next two years is to reach Variable prices Financial objectives 4.5 percent by further reducing short-term sick leave. Another objective is to increase employee satisfaction. We improved punctuality for high- A central aspect of SJ’s business model is variable remaining tickets are offered on the auction website speed rail service in particular, and punctuality for pricing, where prices are determined by supply and Tradera with a starting price of SEK 1. Revenues declined by 3 percent to SEK 8.7 billion. all types of rail service rose from 90 to 91 percent. demand. This model allows more people to travel at With our variable pricing model, which was introdu- Annual after-tax profits declined by 11 percent to Our target for 2010 is 93 percent. a lower price. Today, 90 percent of all passengers tra- ced in 2005, we’ve created a trip for every budget – as SEK 460 million. Return on equity was 11 percent, vel for less than under our old fixed price list, and no well as higher profitability for SJ since the trains have which met our owner’s 10 percent requirement. Environmental objectives one pays more. Passengers can book tickets 90 days more passengers. From 2006 to 2008 Swedish train The equity/assets ratio was 41 percent, far above Carbon emissions were 0.89 grams per passenger- prior to departure and travel anywhere in Sweden for ticket prices declined by 7 percent according to Statis- the target of at least 30 percent. kilometer. Our target for 2010 is 1.22 grams. a low price, sometime as low as SEK 90. Last-minute tics Sweden, while inflation rose by the same amount. travellers can also buy low-price tickets, when the last When more people travel, everybody wins.
8 SJ Annual report 2009 Annual Review 9 Strategies
has three main strategies to achieve its are clean and in good repair. We will achieve this th- business, financial and operational objec- rough reliable and stable processes for resource uti- SJ tives: expansion, quality and efficiency. lization and delivery reliability. This requires a qua- lity-assured approach that creates lasting results for Expansion customers and profitability for SJ. For example we Our expansion strategy is designed to fill the trains, are developing processes and procedures for SJ’s expand into new markets and offer new products depots in order to achieve higher punctuality and and services. Our objective is to meet customers’ more efficient utilization of trains and personnel. needs, strengthen our competitiveness and impro- In 2008 SJ became ISO 9001:2000-certified; this ve profitability. forms the basis for our longer-term quality efforts. In Sweden this expansion means higher capa- SJ is also certified according to the ISO 14001 envi- city in both existing and new markets. Twenty new ronmental management standard. high-speed trains will arrive in 2010 and 2011 and increase these opportunities. We plan to operate Efficiency high-speed trains on the new Botniabanan between Our strategy for increased efficiency is based on ini- Sundsvall and Umeå. We can expand our capaci- tiatives in different areas: more efficient administra- ty during peak hours by connecting more cars and tion and planning of travelling personnel and trains. ensuring that maintenance on our trains is primarily The challenge is to tailor our resources as needed performed at night and during off-peak hours. Bey- over the course of the day, weekends and vacation ond Sweden’s borders, we plan further expansion in periods. As many trains as possible must be avai- Denmark and expanded service to Oslo. lable during peak hours, properly staffed onboard Expansion outside Scandinavia is possible both for both peak and off-peak hours. through SJ’s rail service and in partnership with In 2009 we enacted savings measures worth SEK European railway companies. 300 million. By the end of 2010 our two-year plan to reduce costs by 15 percent will be complete, after Quality additional efficiency measures that will produce SEK Our quality strategy aims to improve punctuality 350 million in savings in 2010. and customer service, and ensure that our trains Expansion
Quality Efficiency
10 SJ Annual Report 2 0 0 9 Annual Review 11 The deep recession had a negative impact on earnings in 2009. Nevertheless, over A successful trip is a complex process. SJ depends on other players and partners, the past five years SJ has shown that it is one of the most profitable railway com- who must do their jobs to the best of their ability. panies in Europe. A profitable SJ benefits Many players in the travel everyone process
he entire railway map is being redrawn as a We implemented the “Competitiveness 2010” efore affärsverket Statens järnvägar was split offices and workshops along the Swedish rail net- result of deregulation. In this changing mar- program to reduce the costs we can influence. We into different companies and authorities, the work. Their job is to offer travellers security and ser- T ket it is more important than ever for SJ to be set attractive ticket prices to entice more people to B agency was responsible for the entire trip – vices at the stations, to keep the stations and plat- a financially sound and stable company. travel by train – and to be able to sell additional ser- from train transportation to rails, from platforms forms neat and clean, and to offer train operators SJ must be profitable in order to carry out the vices. Our business model is under continuous deve- to stations, from repair shops to rail construction and maintenance companies meaningful, effective necessary investments and initiatives to continue to lopment to be able to offer more than just transpor- and maintenance. Since 2001, SJ AB has been workshops. SJ leases its travel stores and the loung- grow the business into an agile, modern and custo- tation services, such as cancellation and rebooking responsible for train travel and everything related to es in a number of cities from Jernhusen. mer-focused company. of tickets, meal options, taxis, rental cars, hotels and it. SJ is a player in a long chain and its mission is to Samtrafiken is another important player that is Rail traffic is capital-intensive. Large and recur- other services associated with train travel. guarantee that travellers enjoy a safe, punctual and owned by several public transportation companies. rent investments in particular place heavy demands With the arrival of deregulation, new train opera- pleasant trip. Its remit is to coordinate different types of traffic and on financial efficiency and sustainability. In addi- tors will try to break into the Swedish market, which Banverket and Jernhusen are the players that operators, so that travellers can combine various tion, train operators work under substantially dif- will probably result in intense price competition. have the greatest impact on the travel experience means of transportation to reach their final destina- ferent conditions than, for example, airlines. There Sweden is a front runner compared with other for SJ customers. tions. Resplus is an example to this collaboration. is no standardized fleet for trains; each country in European countries with respect to opening the rail- SJ needs many different services that can be Europe has its own standards and traffic rules dif- ways to competition, which means that foreign train Railroad service players sourced from a number of vendors. Such services fer from one country to the next. Locomotives and companies will probably use Sweden for a test run. Banverket, which will be integrated into Trafikverket include train repairs, maintenance and renovation, carriages have to be adapted to individual markets, In this new market situation, financial strength and (the Swedish Transport Administration) from April as well as cleaning, emptying toilets and graffiti yet another contributing factor for the heavy invest- sustainability will provide the company with major 1, 2010, is the regulatory authority responsible for removal. ments required in this industry. advantages. all rail traffic. Its remit includes responsibility for To meet profitability requirements SJ must both Thus the reasons are many for SJ to run the ope- expansion and maintenance of infrastructure, inclu- Partners cut costs and increase revenue. Our price model is ration with good profitability, with a sound financial ding rails and the signal system. This responsibili- SJ has a number of partners to simplify the enti- important for the company to achieve both financial foundation – completely without taxpayer subsidies. ty also includes guiding train traffic, scheduling and re journey and provide a better travel experience. and environmental long-term sustainability. providing traffic information to travellers. Its mis- In order to offer high availability, our tickets can be sion is to provide a safe, customized and competiti- purchased and picked up in many different ways ve infrastructure for the operators that use it. Those and in many venues. SJ offers other services such as operators that use the rails pay fees to Banverket. taxis, rental cars and hotels at good prices through Each year Banverket and the operators sign Track agreements we have with many highly-respected Access Agreements, as well as agreements on the players. Profit for the year Net debt repercussions of inadequate quality that impact Travel packages and event-based trips are addi- customers. tional examples of our new offers, where SJ coope- SEK 1200 SEK 1400 million million Jernhusen owns, manages and develops stations, rates with an array of different companies. 1000 1200 1,2001200 3000 -30000
800 1000 1,0001000 2500 -500-2500
600 800 800800 2000 -1,000-2000
400 600 600600 1500 -1,500-1500
200 400 400400 1000 -2,000-1000
0 200 200200 500 -2,500-500
0 00 0 -3,0000 05 06 07 08 09 05 06 07 08 09 0 5 0 6 0 7 0 8 09 0 5 0 6 0 7 0 8 09
12 SJ Annual report 2009 Annual Review 13
SJ on new tracks
Trend analysts have declared the train to be the winner among modes of transport. Demands for comfort, punctuality and convenience are increasing, which accor- ding to marketing research company Kairos Future benefits trains – conclusions confirmed by an SJ study in 2009.
Tomorrow’s train travel
he Royal Swedish Academy of Engineering personal health. Similarly, the main reason people Sciences (IVA) engaged Kairos Future to study take the train is convenience, even if environmental Thow changing consumer behavior would affect concerns are also important. But consumers choose travel between now and 2030. The study shows that a train operator based on factors other than the en- the train will increase its market share for several vironment, according to Kairos Future. reasons. The main reason is that time will increa- One such factor is technology onboard. Many singly be at a premium. Taking the train is more con- people work while they are on the train. Our study venient than flying and working onboard the train is shows that a growing number of people even work easier than while travelling on other types of trans- while on vacation. Already today 39 percent state portation. that they surf as much or more when they are free; Another trend causing train statistics to rise is 45 percent of men and 29 percent of women read urbanization. Densely populated urban areas will their e-mail daily while on vacation. This trend in- become denser and sparsely populated rural areas creases demands on travel operators, in particular, will become sparser. More people will live close to to offer Internet service and to provide an electrical urban areas and they will need rapid transportation outlet to everyone onboard. to work and recreation, according to the study. Personal travel Time is a luxury Another trend involves personal travel. People want One prominent trend is that time is a luxury. Time to be able to design their own travel package through is money, a commodity that people do not want to a travel agent or on their own, which increases the waste. In one European study with 2,000 respon- need for personalized service at all levels. Our own dents, 80 percent prefer to travel by high-speed study confirmed this trend. To succeed in compe- train than by plane, since they feel they make better tition as an operator we must work to simplify the use of their time on the train. entire travel process for the traveller, door to door. Punctuality and convenience are the most im- portant competitive factors in the Kairos Future study. Another important factor is that there will be better coordination among modes of transportation Potential travel time from Stockholm to simplify travel. In the new competition created through deregu- Today’s Very high-speed lation it will be important for train operators to make high-speed trains trains travel convenient, punctual and comfortable. The Göteborg 2:45 2:00 environmental argument, like punctuality, is mostly Malmö 4:25 2:27 a hygiene factor. In other words, customers take it Copenhagen 5:20 2:51 for granted that SJ continues to be one of the green- Helsingborg 5:03 2:13 est companies. The same trend is apparent when Linköping 1:39 1:05 people are interviewed in depth about their reasons Jönköping 3:10 1:23 for buying organic food. The strongest motivation is
14 SJ Annual Report 2 0 0 9 Annual Review 15
SJ on new tracks
In October 2010 Sweden will open up passenger rail traffic to full competition. In- ternational traffic and freight traffic were previously deregulated in similar way.
Deregulation of the Swedish rail market
n the short term the situation will not change much, ny. We are working on introducing night trains from but from 2012 we can assume that new train ope- Stockholm to Brussels. Irators will traffic the main lines in Sweden. Intensifying competition will be noticed as all Rail shortage operators strive to become the customers’ first choi- The situation in the Swedish market is mainly limi- ce. SJ has strategies for dealing with new players ted by a shortage of rails and train capacity. While and for taking advantage of deregulation to expand more operators will compete for the same rails, the- in new markets. re will not be more train departures. The establish- ment thresholds in train traffic will also be signifi- Expansion in several markets cantly higher than for example, for air traffic. On the Swedish market we will grow with our own The annual timetable commencing in December commercial traffic by running on longer routes in 2011 will be the first in which the market for domes- Mälardalen and in western Sweden. High-speed tic passengers is deregulated. trains will run on Botniabanan. Several participants are expected to engage in In Europe we will expand with high-speed trains, contract rail services, the routes contracted by regio- first to Copenhagen and then to northern Germa- nal transport authorities. The business risk is lower
Sweden leads deregulation in Europe Allocation of railway routes
The railway is the last state-run monopoly to be In order to drive trains on the rail network each deregulated by EU legislation. The purpose is to year the railway companies apply for allocation of create more alternatives and price competition. railway routes. Based on the applications, opera- Rail deregulation is governed by the three EU rail- tors are assigned train paths and room for track way packages. services in a train plan. The 2010 train plan has The first railway package went into effect in about 8,000 railway routes; SJ has about one 2001. It stipulated that infrastructure should be quarter of them. owned by a separate company that is competition- The method for allocating capacity is regu- neutral. Another directive opened international lated in the railway legislation, which is descri- freight traffic to competition. bed in Banverket’s annual network statement. The second railway package went into force in Banverket’s prioritization criteria will lead to so- 2004. It established the legislative framework and cioeconomically effective use of the tracks. Each technical rules for an integrated rail market within train is classified according to assessed public the EU, as well as establishment of a European benefit, building in part on how time-sensitive the railway agency. transport is and the number of passengers. The third railway package was adopted in 2007 If two or more operators apply for the same and consists of three directives to open competi- route on a line, Banverket determines which ope- tion for international passenger traffic. It also es- rator will get to drive during the specific time in tablished regulation of passenger rights such as the timetable. Decisions can be appealed. compensation for delays, which went into effect on December 2009.
16 SJ Annual report 2009 Annual Review 17
SJ on new tracks
here since the risk can be found in long fixed agree- More high-speed trains ments and transportation authorities usually own In the near term DSB may become the largest compe- and are responsible for the trains. This regional titor. It has declared that Sweden is its second home market has been subject to competition since 1990, market and it will engage in both contract rail services which has caused assignments to change operators and commercial traffic. However, SJ will challenge DSB on multiple occasions. in its home market with more high-speed trains direc- Denmark’s equivalent to SJ, DSB, has already tly to Copenhagen and onward to destinations such acquired a platform on the Swedish market in coo- as Odense. peration with British First by winning the procure- Another competitor is the Norwegian state-run ment process for Öresundstrafiken. DSB First won NSB, which is established in Sweden through its sub- the procurement for Västtrafik. SJ has essentially sidiary Tågkompaniet. SJ plans to expand in the Nor- chosen not to participate in procurement processes wegian market with new high-speed trains to Oslo. for contract rail services, since we feel these agree- Deutsche Bahn, DB, could be a third major player. ments do not provide adequate profitability. Instead, It has become established in Sweden through its sub- our strategy is to meet contract rail services on stra- sidiary DB Regio by winning Östgötatrafiken. tegic routes with our own commercial traffic.
More energy-efficient trains perature in parked carriages has been reduced to a Last year SJ purchased electricity through Banverket maximum of 12 degrees. for more than SEK 400 million. SJ buys all of its elec- In autumn 2009, significant energy savings were tricity from renewable sources in Sweden. achieved by modernizing 32 carriages. Another 128 Over the past 15 years energy consumption per carriages will be modernized in 2010. When all 160 SJ’s most important competitors passenger-kilometer has decreased by 20 percent for modernized carriages are delivered, the annual savings SJ’s electric trains. Energy consumption will decrease is expected to be about 2.5 million kWh, which cor- Arriva Skandinavien A/S. Svenska Tågkompaniet AB, subsidiary of NSB even more with the new high-speed trains that will be responds to electric heating for approximately 100 Runs Pågatågen for Skånetrafiken and Kinnekulleba- A/S, Norske Statsbaner. taken into operation in 2010 and 2011. They have single-family homes. nan for Västtrafik until 2016. Currently runs Oslo–Göteborg and Tåg i Bergslagen, as lower air resistance than locomotive-drawn trains and In 2009 studies of energy-efficient driving were car- well as local train services for X-traffic and Värmlands- they regenerate electricity during braking. ried out with respect to eco-driving. These tests pro- DB Regio Sverige AB, subsidiary to Deutsche trafik. Owns 40 percent of Roslagståg. The new high-speed trains also have control sys- duced positive results. The aim is to minimize energy Bahn. tems that automatically prioritize the electric brakes, consumption without increasing travel time. Different Competes for contract rail services in the Swedish Veolia Transport Sverige AB. market. Won the contract for Östgötapendeln in 2009. Runs Kustpilen and Mittnabotåget as well as commer- which reduces the need for mechanical brakes whi- methods are being evaluated and eco-driving will be cial weekend traffic Stockholm–Malmö and charter le cutting particle emissions, since wear on the brake included in the driver training program for the new DSB Sverige AB, subsidiary of Danske trains to and from Jämtland and upper Norrland. Owns shoes and brake linings is lower. high-speed trains. Statsbaner. Merresor i Sverige AB together with SJ. In 2009 Mer- Another measure that reduces SJ’s electricity con- SJ will continue to reduce its already limited envi- Currently runs Öresundstrafiken through DSB First to- resor provided local services in Värmland and Krösatå- sumption is the renovation of carriages for the Inter- ronmental impact. More importantly, SJ has succeeded get in Småland, but lost the most recent procurement gether with First Group; also runs and owns a 60 per- City trains, which will now have more modern regu- in filling the trains more during recent years, resulting cent stake in Roslagståg. In 2009 DSB First also won process for this service. the contract for Västtrafik’s train traffic and Krösatå- lation systems for heat, ventilation and lighting. The in a decline in energy consumption per person-kilome- gen in Småland. earlier manual function for saving energy when ter. The major gain here is not that SJ saves energy, but parked has been modified; lighting and ventilation that we help others to reduce their environmental foot- are now automatically reset and the interior tem- print by taking the train.
18 SJ Annual report 2009 Annual Review 19
SJ on new tracks
SJ aims to grow both in domestic rail service and outside Sweden. Key to this ex- pansion of rail service in both Sweden and abroad is the delivery of the new high- speed trains.
Expansion into new markets
o date, the shortage of trains and rails has pre- Copenhagen on Zealand and Odense on Funen is vented us from increasing rail service. Once our Danish DSB’s largest market. However, rail service in T new high-speed trains start rolling we will be Denmark has not been opened to competition to the able to offer an additional 5,000 comfortable seats same extent as in Sweden, which affects our expan- on the highly competitive main lines. We will then be sion plans. able to capture market share from other modes of In the rest of Europe, business opportunities are transportation such as plane, car and bus. growing as markets open in various countries. Night High-speed train service is being developed to train service to Europe is one possible growth area. the north in Sweden and once construction on Bot- Our night trains to Berlin comprise our current ope- niabanan is completed, we will be able to run the rations outside the Nordic countries. new trains between Stockholm and Umeå. Upon However, the really big opportunities will not completion in 2011, the route will entail a substan- come until the Fehmarn Belt bridge linking Denmark tial increase in rail service. and Germany is completed in 2018, when we will be able to operate both high-speed trains and other rail Shorter travel time service to the south. Once the Swedish market is fully deregulated, opp- ortunities will open to operate commercial rail ser- City Tunnel vice on all routes in Sweden. For example, providing Our travel service to Denmark will soon improve sig- service on certain routes in southern and central nificantly with the reduction of travel time once the Sweden, where regional transport authorities cur- City Tunnel in Malmö is completed in 2011. The ope- rently have a monopoly, could be of interest. We will rator that provides rail service for the transport aut- be able to offer shorter travel times and a better pro- horities on Västkustbanan stops at 17 stations on duct compared with the operators that are on these the route between Gothenburg and Copenhagen. SJ routes today. has decided not to participate in the regional ten- dered market and instead runs its own commercial Gradual expansion services with fewer stops. With more convenient pas- We have growth potential with increased rail service sage through Malmö, travellers will save even more outside Sweden. Our trains already run to Denmark time by choosing to travel with us on this route. and the X 2000 service that currently goes to Copen- hagen will be extended to Odense. Service between
20 SJ Annual Report 2 0 0 9 Annual Review 21
SJ on new tracks
SJ på nya spår The most important event this year for SJ and the railways in Sweden is the delivery of 20 new high-speed trains, the first of which is expected to enter into service in late 2010.
New trains – new customers
ever before have so many people traveled tion with train connections, taxis, etc. Various infor- by train and demand for rail transportation mation and entertainment services are also available N keeps rising. Sweden leads Europe in pas- onboard. For example, customers can download senger growth. SJ’s new high-speed trains are an movies, books and music to their own laptop com- important component of the strategy to grow the puters. They can also receive information about our service and make optimal use of the train fleet. offers from the Bistro directly on their screens. Travellers will be offered yet another high-speed The new trains make it easier for us to meet the train, similar to the X 2000. The investment will goal of offering a useful onboard experience. In addi- increase SJ’s high-speed train capacity by over 40 tion, all interior furnishings are made from environme- percent. ntally friendly materials and the trains are fitted with The trains will gradually be placed in service in energy-saving brakes. late 2010 and during the first half of 2011. The first lines that the new high-speed trains will Fast acceleration serve are Stockholm–Östersund, Stockholm– Dalar- Technically, the new high-speed trains offer many na and in 2011, Stockholm–Oslo. The 20 trains will advantages. They reach the same top speed as the The new high-speed train brakes and accelerates faster than the X 2000. seat a total of 5,000 passengers, allowing many more X 2000. Although they are a little slower in the cur- people to discover the advantages of travelling these ves, they have better acceleration than the X 2000 – SJ Event operates proprietary trips with themes, such as the “Madonna Train” with disco music. trains. which reduces the time between two destinations on routes with multiple stops along the way. Thus these Business and pleasure trains are well-suited for rails outside the main lines, The trains are loaded with new technology; travel- even single-track lines. lers receive digital information about the next sta-
New high-speed train
• Speed record for trains, 303 km/h, was set between • Regenerative brakes use 20 percent less energy Skövde and Töreboda in 2008. than traditional trains. • Total of 245 seats in each train, which consists of • Equipped with radial steering bogies which reduces four carriages. wear on the tracks. • Modern full-service bistro. • SJ has ordered 20 trains at a cost of more than SEK 2 billion. The trains are being built at Bombardier’s • Infotainment with movies and interactive entertain- factories in Germany. ment will be offered for the first time on trains in Sweden. • Refurbished Regina trains brake and accelerate faster than the X 2000.
22 SJ Annual report 2009 Annual Review 23 Subsidiaries
AB subsidiaries include Norrlandståg, our own training company that serves both SJ and Stockholmståg, SJ Event, SJ Service Aca- external customers. Linkon is our supplier of reser- SJ Event AB SJ Service Academy AB SJ demy and Linkon. The first two provide vation systems as well as sales, distribution and pay- contract rail services in areas where SJ won tenders. ment settlement system services for travel. The com- SJ Event operates charter trains and customized pany also sells services to external customers. SJ Event operates rail service aimed at creating SJ Service Academy is the latest addition to the event-based travel solutions. SJ Service Academy is favorable experiences to entice travellers who Group and is our own training facility. Its purpose might not otherwise take the train. SJ Event of- is to provide basic training and skills development fers charter trains for enterprises and other travel for SJ employees, as well as training programs companies. The travel package range from short commissioned by external customers. The cus- Norrlandståg trips between two cities in Sweden to more distant tomized programs are largely based on practical destinations, such as Prague. exercises. SJ Service Academy’s remit is to com- SJ Event also offers its own travel packages with municate and refine what can be called the soul of sports, skiing, or concert trains. Trains for runners SJ – customer care. By gathering various catego- Norrlandståg has an agreement with Rikstrafiken that Since SJ took over rail services in June 2008, custo- heading to Lidingöloppet and skiers participating ries of employees from all over the country in the covers night train service from Stockholm and Gothen- mer satisfaction has increased sharply, according to a in Vasaloppet are well-established trips arranged company’s classrooms in Solna, we can create a burg, respectively, to Upper Norrland, as well as dayti- survey that Rikstrafiken carried out in 2009. each year. A new addition to the lineup is Ullareds- common SJ spirit. me services between Luleå and Kiruna. In addition to tåget for shoppers travelling to a shopping mall in contract services, Norrlandståg also operates daytime Founded: 2008 Halland. Founded: 2008 rail services between Luleå and Umeå. The small-scale CEO: Björn Nilsson CEO: Olle Lundström nature of the company is an advantage; it is ideal for Full-time employees: 182 (110) Founded: 2001 Full-time employees: 50 (27) new ideas, suppliers or methods. Better cleaning and Net sales SEK 390m (232) CEO: Michael Wikström Net sales SEK 81m (64) meal services are examples of areas that contribute to Total assets SEK 40m (26) Full-time employees: 12 (11) Total assets SEK 46m (18) more satisfied customers. Net sales SEK 27m (64) Total assets SEK 6m (6)
Stockholmståg KB Linkon AB
The subsidiary Stockholmståg operates commuter rail Corresponding surveys in the autumn of 2009 showed The subsidiary Linkon owns, maintains and deve- Founded: 2000 services in Stockholm with the county council-owned a CSI of 69. This success is one of the reasons that SL lops SJ’s ticketing system. The company develops CEO: Christer Jernberg Storstockholms Lokaltrafik (SL) as its customer. The decided to extend the agreement with Stockholmståg and markets cost-effective IT solutions for sales, Full-time employees: 56 (51) problems that the previous operator had with rail ser- for another five years. distribution and payment settlement for the entire Net sales SEK 190m (196) vices, including extensive delays, have dramatically travel industry. Linkon is primarily active within Total assets SEK 220m (138) decreased since Stockholmståg took over as operator. Founded: 2005 the Swedish market, but also has some internatio- Stockholmståg has successfully reversing trends that CEO: Kjell Färnström nal customers. are now moving in the right direction with increased Full-time employees: 623 (600) Linkon’s sales clients currently include more customer satisfaction, which is positive for SJ. Net sales SEK 1,440m (1,366) than 400 dealers and a number of online distri- When Stockholmståg took over commuter rail ser- Total assets SEK 183m (144) butors. vices in 2006 the Customer Satisfaction Index was 27.
24 SJ Annual report 2009 Annual Review 25 Expectations are an important component of brand value. The perception of SJ is governed by how well we succeed in meeting or exceeding our pledge to provide our customers with comfort, service and punctuality.
The SJ brand changes tracks
is one of Sweden’s most well-recognized rails. We will therefore develop a message that will brands. Most people perceive us as envi- convince the customers to choose us. SJ will be the SJronmentally friendly, safe and Swedish. customer-focused train operator. We want to expand this brand perception; custo- The train is the most environmentally friendly mers will also associate SJ with being a modern mode of transportation. For many years SJ has con- enhanced travel experience and the company that ducted several projects to reduce its impact on the always puts its customers first, in every situation. environment. Such initiatives are integrated into our Our Achilles’ heel is our sensitivity to disruptions daily management. SJ is the only operator to qualify caused by wind and weather, as well as our depen- for the most stringent ecolabel in the world, Sweden’s dence on other players. These are our top priorities Good Environmental Choice. The more people who for 2010 aimed at increasing our ability to arrive on travel with us, the better it is for the environment. Our time and to take better care of our customers. message will show that SJ is a sustainable company SJ has made the train highly attractive as a good that contributes to a more sustainable Sweden. means of transportation; a growing number of pas- sengers now choose to travel by train instead of Log on or chill out by plane. We’ve done a good job of publicizing the Travelling with SJ offers so many opportunities: advantages of the train. The next step is to clarify passengers can get some work done, or read a good the message describing the advantages of choosing book; relax while watching the countryside go by; SJ instead of other train companies. This messa- be connected and available, or enjoy our food and ge will become increasingly critical as competition drink options. The next step in the customer expe- increases and the branding initiative must switch to rience will be to offer new services onboard for both this new track. business and pleasure. Another core message is that there is a ticket The most stringent ecolabeling in the world for every wallet. Our price model has created many We must advance from the vision “All aboard!” to more opportunities for affordable travel. Moving for- succeed with the next challenge: “All aboard on SJ!” ward, the product and price differentiation among The customers must want us to be their solution of our different trains will be even more distinct. choice, even when more train operators share the The SJ brand
The SJ brand has improved its position in recent Environmentally aware 48 % years. Previously it was perceived as a bit gray, government-run and boring. Now SJ is associated Swedish 36 % with more positive attributes. Safe 25 % The table shows the percentage of respondents who used a specific attribute to describe the SJ Convenient 24 % brand. They were asked to choose up to five words Popular 20 % that best described the brand.
Source: Brandjobs Sverige AB
26 SJ Annual report 2009 Annual Review 27
SJ’s history
154 years of rail service
he expansion of the Swedish rail network goes infrastructure and affärsverket Statens järnvägar, hand in hand with SJ’s history. In 1854 the Riks- which was responsible for service operations. About T dag decided that the Government would build ten years later it was time for the next major organiza- and operate a number of main railway lines. The first tional change. In 2000 affärsverket Statens järnvägar lines connected Gothenburg and Malmö with Stock- was divided into six different companies. SJ AB was holm. Statens järnvägar (Swedish State Railways), formed, with responsibility for passenger rail service. founded in 1856, was responsible for building and One consequence of the 1988 transportation poli- operating the main lines, while private interests and cy decision was the division of the rail network into individual enterprises were permitted to build local main lines and regional lines. Beginning in 1990, and regional connecting routes as well as industrial municipal and county council-municipal transporta- rails. tion authorities were responsible for rail service on For a long time, the Swedish rail network con- the regional lines and in some cases began to pro- sisted of both state-operated and private routes, cure services through competitive tender. Statens but in 1939 the Riksdag decided to nationalize all järnvägar’s monopoly on providing rail service began private routes. Statens järnvägar gradually beca- to be dissolved. In response to an EU directive, com- me responsible for the entire Swedish railway net- petition was implemented in rail freight traffic in work. At that time, many small private routes had 1996 and in 2007 in charter and night train services. begun to encounter competition from cars, buses In June 2009 the Riksdag decided to proceed to the and trucks. Maintaining a profitable service became next step with deregulation of passenger rail service. increasingly difficult and many routes were closed A “B” locomotive with freight train at a station in June 1950. Photo: Swedish Railway Museum. during the 1950s, 60s, and 70s. Railroad service opens up On July 1, 2009, the market opened for weekend Statens järnvägar divided and holiday rail service and on October 1 that year The next major change in the Swedish rail industry for international passenger service. On October 1, occurred in the late 1980s. Statens järnvägar was 2010, the deregulation process will be complete with divided into Banverket, which was responsible for domestic passenger traffic open to full competition.
Sweden’s Riksdag Västra stambanan, The Riksdag Statens järnvägar is The X 2000 is the first First online booking Statens järnvägar SJ implements a new decides that the Swe- the main western decides to divided into Banverket, train to be operated at a system for SJ is corporatized and demand-driven price dish Government will route between Goth- nationalize the which takes care of speed of 200 km/hour. tickets. SJ AB becomes model that contributes to build and operate the enburg and Stock- country’s private infrastructure, and affärs- responsible for improved capacity utili- country’s main routes. holm, opens. railways. verket Statens järnvägar, passenger rail service. zation of the trains and Ground will be broken which operates the trains. higher profitability. one year later. 1854 1862 1939 1988 1990 1997 2001 2005
28 SJ Annual Report 2009 Annual Review 29 a
SJ today
Customer-focused dialog
t SJ, we are moving toward a more customer- reduction in ticket prices for customers. The price focused approach, with increased dialog and model enables SJ to offer customers with flexible A service. We will be a clearly customer-focused travel plans particularly attractive, affordable prices. company. About 500,000 people travel during the year using More and more people are using electronic chan- a ticket that costs SEK 95. The low-price ticket has nels such as sj.se, ticket machines and mobil.sj.se particularly attracted many clubs and athletic asso- to reserve and pay for their tickets. Self-service has ciations, which has enabled SJ to take market share increased sharply and currently accounts for 55 from the bus and other modes of transportation. percent of sales. The rest goes via manual channels such as SJ travel stores, the Contact Center, travel Service at the individual level agencies and other partners. The SJ Prio customer loyalty program has 510,000 members after just a few years, far exceeding ex- Modern sales channels pectations. The program has become a real success SJ’s entire sales and distribution process, reserva- and has won multiple awards. tions, payment, ticketing and ticket checking, has SJ Prio allows frequent travellers to accumulate developed considerably in recent years. The number points and receive targeted offers and benefits. Tra- of sales channels has increased; for example, with vel profiles at sj.se also provide greater convenience our newly developed site for mobile devices custo- when making reservations. The points can be used mers can now reserve or cancel tickets by mobile for future travel, service options, in the bistro or with phone. It is also possible to find heavily discounted our partners. tickets at the auction site Tradera. Members are divided into three levels: white, gray There are also many ways to get tickets today. The and black. Black is the highest level. The more you most recent solution is the e-ticket, which is sent to travel or shop, the higher the level and the better the the customer’s mobile phone. Employees onboard offers and services. read the ticket bar code through the mobile phone The customer loyalty program and the informa- screen. The ticket can also be printed out by logging tion stored about who is travelling with us is im- on to sj.se. portant in dealing with increased competition. It The more customer-focused emphasis should allows SJ to carry out a dialog with its travellers to also be noticeable in the travel stores, which are now see how we can improve. We can also find out what being remodeled. A modern, light and customer- offers they would like to receive. SJ’s newly renovated travel store in Västerås features computer terminals focused concept has been designed and will gradu- ally be implemented in the thirty or so stores all over Customer dialog in realtime where customers can book tickets and other services. Sweden. The reorganization will also enable the ven- It will be increasingly important for companies to dor to meet the customer in a different way through have a presence in social media and monitor what is Collaboration with SAS from three versions of a joint season pass. The pass increased interaction out on the floor. The travel store being said about the company. SJ launched a social During the year SJ initiated a collaborative effort allows unlimited travel to specific destinations or to in Västerås was the first to get the new look. media initiative as part of our communication stra- with SAS. The concept includes a travel guaran- all destinations in Sweden. In addition it gives the tegy. Since October 2009 we can be found on Twit- tee within Europe, where SAS and SJ jointly gua- customer access to lounges and a variety of bene- Product and price model ter. The response has been very high. In a survey last rantee that customers will reach their destination, fits. In summary, Flyrail provides increased freedom Our demand-driven price model has been success- November, SJ was the company in Sweden that Twit- regardless of whether they miss their connection at of choice as well as a more convenient and comfor- ful in terms of revenue. It has also led to an overall ter users turned to most. Arlanda or Kastrup. Frequent travellers can choose table travel experience.
30 SJ Annual Report 2009 Annual Review 31
SJ in the future
High-speed tracks needed
he Government investigator conducted a com- Many more take the train mission and concluded that high-speed tracks While trains are a good green option, a major invest- T should be built to provide necessary train ment of this magnitude is not justified primarily by capacity – and increased growth in society. environmental arguments, but by the implications The proposal entails a major investment in high- for society – both regionally and nationally. Environ- speed trains on two routes, Götalandsbanan (Stock- mental benefits are a bonus. holm– Gothenburg) and Europabanan (Stock- The investigator believes that growth in rail ser- holm–Malmö). The trip between Stockholm and vices will be very strong. Air travel will probably be Gothenburg will take about 2 hours on trains that marginalized on routes that are shorter than two will reach speeds of up to 320 kilometers per hour. hours. The time has come to integrate modes of A total of about 700 kilometers of track would be transportation rather than to have them compete, built at a cost of about SEK 125 billion. According as has historically been the case. More people will to the commission the Government would pay for choose the train instead of the car. almost half of the cost and the rest would be funded The commission has presumed that deregulation by the involved regions, the EU and ticket revenues. of rail services will be implemented in accordance The Government has not yet approved the proposal with the Riksdag decision. and it is an open question whether this will occur If the high-speed tracks are not built, the con- before the Riksdag election this autumn. Six out of ditions for competition will be poor, quite simply seven Riksdag parties and most referral authorities because of lack of capacity. Competition is based on In just a few years, the high-speed train between Madrid and Barcelona are in favor of the proposal. capacity; otherwise competition will be for the rails, not the customers. Sweden is leading rail deregula- has almost eliminated domestic air travel on this route. Serious capacity problem tion in Europe, but we are among the last in Europe A separate high speed network is a future investment to build high-speed rails. for both the railway and Sweden. It will lead to regio- also believe that a fixed connection such as a brid- the National Road Administration. Parts of the Swe- nal enlargement with new businesses and opportuni- Connection to Europe ge or tunnel between Helsingborg and Helsingör will dish Maritime Administration, the Swedish Trans- ties. The railway and its ability to attract more travel- Europabanan will make it possible to connect to the be necessary in the future, in part to achieve a more port Agency and the Swedish Institute for Transport lers is also positive from an environmental standpoint. European rail network. Denmark is currently upgra- efficient connection to the European railway net- and Communications Analysis (SIKA), will also come All of Europe is building high-speed tracks, which ding its line between Copenhagen and Rödby. The work. The Öresund bridge, which already has capa- under the umbrella of the new authority, which will reduce travel time and promote growth. For example, Fehmarn Belt bridge will be built connecting Den- city issues, will not have room for the increased rail be one of the largest in Sweden with 6,400 employe the possibility of travelling between Jönköping and mark to Germany via Puttgarden, with completion traffic. However, such a connection will not become es. The purpose is to streamline operations and to Gothenburg in 30 minutes completely changes condi- expected in 2018. reality for a long time. take a more comprehensive and cohesive approach tions for where people can live and work. Shorter tra- Denmark has not yet decided on future capacity Assuming that SJ can drive faster through Den- to all types of traffic. Trafikverket’s remit includes vel times will shrink Sweden. The regions become lar- or the speed that will be permitted. Germany plans mark, the vision is that it will be possible to travel meeting the climate challenge. ger and their growth promotes economic growth. to upgrade its line between Puttgarden and Ham- from Stockholm to Brussels overnight. The Government appointed Gunnar Malm to be Currently freight traffic, regional services and burg so that a speed of 160 km/h will be possible director general of Trafikverket. Mr. Malm was the high-speed trains all run on the same tracks. A sepa- on electrified trains. To date diesel trains have ope- New Trafikverket investigator who put forth the proposal for high- rate high speed network would increase capacity on rated on this route. Trafikverket (Swedish Transport Administration) is speed rails in Sweden. today’s main routes – which is just as important as For several years EU-funded projects have been in the name of the new central government regulato- the fact that high-speed trains reduce travel time by progress aimed at integrating the Helsingborg – Hel- ry authority that formed on April 1, 2010 through approximately 30 percent. singör – Copenhagen – Malmö route. Many people the merger of the National Rail Administration and
32 SJ Annual Report 2009 Annual Review 33
Customer care
What SJ’s customers think about us is crucial for how we develop our services to become an even better travel service provider. Consequently SJ conducts many customer surveys. Here’s what we do with customer opinions
he large onboard survey that measures the Comfort is important Customer Satisfaction Index is carried out in Comfort is the second most important aspect for T cooperation with an external company. About customer satisfaction, behind punctuality. The sur- 20,000 questionnaires are randomly handed out and vey asks if the seats are comfortable and whether collected in a year. We ask questions about everything the trains are clean and in good condition. The score related to the train journey, from booking to custo- for comfort climbed one point to 72, which is equi- mer service and punctuality. The answers help us in valent to the mark “good.” our efforts to achieve continuous improvement. Customers give affordability a lower mark and jud- In 2009 we can conclude that the customers give ge it to be “average,” even though Swedish train pri- us a higher grade both overall and within almost eve- ces dropped 7 percent in recent years according to ry category compared with 2008. The total CSI is 74, Statistics Sweden and many passengers travel inex- up one point over last year, indicating that customers pensively for just SEK 95. The CSI here is unchanged are generally satisfied with SJ and that our initiatives compared with 2008 at 63. to make travel even more convenient, comfortable Personnel are more available, according to last year’s big customer survey. and affordable in recent years have paid off. Customers also feel that information in the stations has improved. Better customer care . Customer care is an important category for custo- mer satisfaction. Here, the index rose by two points over last year’s score and is now 75, earning the gra- Customer Satisfaction Index - SJ AB de “Very good.” The most significant improvements in customer 2006 2007 2008 2009 care are that personnel are perceived as more avai- Comfort 71 73 72 72 lable than previously and that they make the custo- Information 73 75 76 78 mers feel important to a greater degree. Punctuality 63 61 59 60 There is a clear correlation between employee Customer care 73 74 73 75 Total CSI 1) 71 73 73 74 job satisfaction and customer care management. In
recent years, employee satisfaction has increased, 1) Each item is separate, including Total CSI. resulting in better customer care management. Travellers also give high marks to information, especially about arrivals on the platform and in the Onboard survey method, where 100 represents station. This year’s index is 78 (76). However, travel- “total satisfaction.” The index levels are usually lers are not as satisfied with information at stations classified according to the following ranges: about delays. People want better and clearer infor- mation about the cause of delay and how connec- 0 – 50 = completely unacceptable 51 – 54 = extremely poor tions are affected. 55 – 60 = poor Punctuality is extremely important to SJ’s custo- 61 – 69 = average mers, who gave the company relatively low grades on 70 – 74 = good 75 – 79 = very good this point – even though punctuality actually impro- 80 – 100 = excellent ved during the year, from 90 to 91 percent.
34 SJ Annual Report 2 0 0 9 Annual Review 35
Customer care
Every day, 100,000 people travel with SJ on 500 different trains and we stop at 230 stations. Customer surveys and statistics can tell us who they are and why they travel with us.
Who travels with SJ?
lmost six out of ten train travellers are women, both for business and pleasure. Almost six of ten who travel in second class more often than travellers are engaged in the most common occupa- A men. Business travellers are more likely to be tion among travellers: reading a book, newspaper or men, who travel with the X 2000 to a greater degree magazine. Over 60 percent sleep and half watch the than women. countryside and eat or drink. One of four works or The travellers are evenly distributed in terms of studies. Forty percent listen to music. age, with the exception of seniors, who account for a relatively small percentage, just 9 percent in 2009. Customer panel The level of education among travellers is rather During the summer of 2009 we launched our Custo- high; 59 percent have postsecondary education. mer Panel to develop and improve our performan- Almost seven of ten pay for the trip out of pocket; ce. We currently have almost 4,800 voluntary parti- employers cover the cost for the others. Forty per- cipants. The Internet-based customer panel makes cent travel by train more than 25 times per year. it easy to quickly ask questions, test suggestions and Nine of ten travel second class. ideas and Resenärerobtain opinions andel from resor, customers. % Almost 20 percent travel to or from work, while Resenärer andel av intäkter, % just as many travel to or from work-related meetings. Travellers, share of travel, % Approximately 30 percent travel to visit friends and family. Forty percent are members in the customer loyalty program, SJ Prio. Business 14% A är, 14 Pendel, 15 Why do people travel with SJ? Leisure 44 % The environment is the most common reason for choosing the train rather than another alternative. Pendel 42 A är, 27 This reason has also increased most over the past three years; 45 percent of travellers in 2009 stated Fritid, 44 Commuter 42% Fritid, 58 that reduced environmental impact was the reason for choosing the train rather than other means of transportation. More women than men state that the environmentalResenärer andel argument resor, is % important. However, the Resenärer andel av intäkter, % environmental argument seems to be taken for gran- ted when customers choose a train operator. Other Travellers, share of revenue, % important reasons for choosing the train include the low price, being able to relax or rest and avoiding dri- Business 27% A är, 14 ving or parking. A large share of travellers, 64 per- Pendel, 15 cent, states that the train was the only option for the trip. For 20 percent the car was an option and for Leisure 58% Pendel 4210 percent, the plane. A är, 27
What do people do on the train? Commuter 15% Fritid, 44People have time to do many things on a train trip, Fritid, 58
36 SJ Annual Report 2009 Annual Review 37
Customer care
The sharp rise in train travel has caused congestion on the tracks, causing problems for both travellers and rail operators.
Punctuality right on track
n-time train arrivals and departures are the Reasons for delays basic premise of all our work. We must live Mörkgrå motsols-14 13 29 44 O up to this most important customer pledge. External factors 16% Our customers expect nothing less. Infrastructure 50% During the year we have addressed those factors we can influence to improve punctuality. We fine- Operator 12% tuned our logistics planning for maintenance and overhaul and implemented new procedures for dai- ly traffic planning. With new IT support for commu- we found that 31 of 44 planned corrective measu- (the Swedish Transport Agency) from April 1. nication between the traffic division and employees Trains 22% res had been implemented. The work is making good Our agreement includes clear financial incentives on board, we can provide our customers with better, progress toward the ultimate goal – to cut delays in for 2010. If Banverket does not achieve the agreed faster information in the event of major traffic dis- mize our train plans by using simulations and half by the end of 2010. targets, it must pay a penalty to SJ, but if the results ruptions. We track the results of all of our initiatives models, from a customer and community perspec- Initiatives with dedicated action programs to exceed the targets, SJ will pay a bonus instead. by measuring customer satisfaction and by working tive. improve punctuality are also underway in the Goth- One important matter going forward is to ensu- with continuous improvement, oversight and follow- In 2009, 77 percent of X 2000 trains arrived on enburg and Öresund regions. re the reliability of our locomotives and cars in dai- up of processes and procedures. time – a clear improvement over 2008, when punc- SJ embarked on an extensive collaborative effort ly operation. SJ made good progress on this point tuality was 69 percent. with Banverket during the year aimed at improving in 2009 and will intensify these efforts in 2010. The More punctual high-speed trains We have made a good progress in our efforts to traffic quality, with a focus on punctuality and traffic supplier who provides maintenance for the trains Our efforts paid off in 2009 – particularly with improve punctuality. Our intention is to minimize the information. They are conducting joint analyses and must meet more stringent demands and the qua- respect to improved punctuality for the X 2000. delays we cause and can influence as far as possible. follow-up of quality developments. lity of repair shops and regular maintenance must SJ also collaborates extensively with professors One cause of delays is a shortage of trains. Delays SJ and Banverket are also conducting a number improve. Better designed technical analyses and and researchers at the Royal Institute of Technology due to infrastructure-related problems or disrup- of joint projects addressing problems with power technical upgrades will be important elements of (KTH). One aim of this collaborative effort is to opti- tions have been substantial at certain times of the lines, power feeds and signal systems. Better inte- this effort. year. Some of these delays are caused by problems gration of manual and computerized traffic manage- Some of these measures have been identified and New “PhD of Trains” to improve with power lines and switches. Slower trains can also ment has also resulted in an improvement in punc- carried out as part of current initiatives. punctuality prevent our trains from getting through. tuality. Another important area to address involves con- The largest obstacle for achieving a substantial Depot work SJ has launched a “PhD of Trains” project together gestion on the rails at peak travel times. The entire improvement in punctuality is still related to pro- An efficient depot—where trains are cleaned and with Vinnova (Swedish Agency for Innovation Sys- rail network is under heavy strain during the mor- blems with the railway network. Quite simply, the cleared—is also essential for increasing availabili- tems), the National Rail Administration and the ning and evening rush hour. A minor delay often has infrastructure cannot handle the increased demand ty. We continue to search for new methods so that Institute of Technology at Linköping University (LTH). This research position will explore models major ramifications not only for the delayed train, for all forms of rail transport. Sweden needs rail trains reach the platform on time. New procedures at to minimize traffic disruptions in the rail network but for other rail traffic in the area as well. infrastructure investments – for existing tracks and the depot are aimed at guaranteeing clean trains in as well as methods to eliminate consequences of for high-speed lines. Punctuality depends on it. good condition, well before scheduled departures. delays. The “PhD of Trains” will begin to carry out Initiatives SJ employees will also receive training to impro- research at LTH in 2010. Since 2007 Banverket (The National Rail Administra- Stronger demands for punctuality ahead ve handling of reports and delays. One current pro- SJ also collaborates extensively with professors and researchers at the Royal Institute of Techno- tion), SJ and affected regional transportation autho- We will continue to pursue our efforts to impro- ject is aimed at implementing consistent solutions to logy (KTH). One aim of this collaborative effort is rities have worked together on activities and projects ve punctuality because that is the most important problems throughout the organization to gain long- to optimize our train plans by using simulations aimed at reducing delays and fortifying capacity in request we receive from our customers. In 2010 we term benefits in terms of both time-savings and pre- and models, from a customer and community per- the urban regions. The largest joint initiative involves will expand our collaboration agreement with Ban- cision. spective. Mälardalen. After a status review in autumn 2009 verket, which will be a part of the new Trafikverket
38 SJ Annual report 2009 Annual Review 39
CustomerSidhuvud care
Travellers can download movies, music and books on the new high-speed trains. The bistro features new dishes and more choices.
Offers onboard
e are gradually introducing new onboard our double-decker trains will be offered a light break- services to provide a productive experience fast on selected morning departures between Stock- W to those who choose to travel with us, not holm and Linköping. A pilot program with preorde- just transportation between two locations. Travel- red breakfast is also being offered to second class lers will have opportunities to make maximum use passengers on the X 2000. of their time. In 2009 we engaged a new coffee provider – and of course we only serve fair trade organic coffee. First Preordered breakfast class passengers enjoy free tea and coffee, as well as The X 2000 and our double decker trains all fea- access to the SJ Lounge in several locations around ture an electrical outlet by each seat. This feature the country. will also be available on the 160 InterCity carriages, which are currently being renovated and moderni- Mannerström special zed. Our high-speed and double decker trains offer Our next major initiative will begin in May 2010 – Internet service, which is free in first class. collaboration with Michelin chef Leif Mannerström. Food and beverages are an important part of trave- He is the creator of the recipes for the first class ling by train, especially on longer trips. Bistro servi- menu on the X 2000 and the main courses offe- ce is available on the high-speed train and InterCity red in the bistro. Second class passengers on the trains, while regional trains have vending machines X 2000 will also find many new options when this with snacks. In early 2010, first class passengers on new collaboration is launched.
Onboard services X 2000 Intercity Night Regional General • Electrical outlet next to seats • Food/beverages/ • Food/beverages/newspa- • Electrical outlet next offers, first • Quiet zone newspapers in Bistro/ pers in Bistro/Snackbar to seats1) and second • Food/beverages/newspapers/in- Snackbar • Vending machines 1) class fotainment in Bistro • Electrical outlet next • Internet service to seats First class First class First class First class Our offer • Highest comfort • High comfort/news- • High comfort • Peace and quiet • Personalized service papers • Own compartment with • Free Internet access 1) • Seat reservation • Access to SJ Lounge toilet and shower • Free coffee 1) • Newspapers/infotainment • Free coffee / tea • Breakfast/newspaper • Access to SJ Lounge • Access to SJ Lounge • Access to SJ Lounge • Breakfast/food options • Preordered breakfast • Free coffee and fruit • Free Internet access
Second class Second class Second class Second class
• High comfort • Good comfort • Good comfort • Preordered breakfast • Part of sleeper / couchette • Preordered breakfast 1) Double-deckers.
40 SJ Annual Report 2 0 0 9 Annual Review 41
Customer care
SJ is a large travel store that sells travel-related products and services. The strategy is to offer more inexpensive tickets, so that travellers can afford these services.
Sweden’s largest travel agent
ith 36 million trips annually and 500 trains upplevelser, where customers can buy tickets to the daily, SJ is Sweden’s largest travel agent. theater, opera and other events when they buy their W We are also a key player in making travel train tickets. These travel packages enable us to arrangements for both consumers and business tra- reach more target groups. In 2009 we sold 75,000 vellers. event packages. In addition to reserving train tickets, our custo- Business travel fell in 2009, though this drop was mers can also purchase tickets for travel by bus, air largely offset by increased leisure travel. The trend or trains belonging to other operators. Our partner- for large corporate customers is to travel more by ships with many players enable us to create packa- train and we have also succeeded in attracting more ges and provide additional services, which our custo- small businesses. We are helping many companies mers appreciate. This part of our business increased to achieve their carbon dioxide emissions targets. We in 2009. We are increasingly becoming a company are proud of our contribution to our customers’ sus- More than half of SJ’s ticket sales are electronic. This percentage will increase that sells travel products and related services. tainability because they choose to travel with us. Our ticket sales for other travel operators have Sales campaigns targeting various customer seg- with the opening of SJ’s mobile portal in autumn 2009. already passed SEK 500 million annually and this ments have also been successful, such as our att- business is growing. Many players consider SJ to be ractive offers for the over the 65 and under 25 age an exciting partner, especially because of our many groups. sales and distribution channels. Electronic ticket sales exceeded manual sales in Customer-oriented stores 2009 and this trend is expected to continue. The Personal sales at SJ’s 31 stores across Sweden are fourth-quarter launch of our mobile portal was a crucial. Many customers prefer to meet our sales contributing factor to this development. We expect associates in person. We are currently updating our customers’ mobile phones will become an increa- stores to make them more customer-focused and to singly common ticket carrier to take advantage of increase sales. The Västerås, Eskilstuna and Hässle- this service in an effort to simplify travel. holm stores were all renovated during the year. Increased up-selling of services helps keep ticket 75,000 event packages prices low. Our employees have learned how to listen Customers trust the SJ web site, which makes it an to customers and understand their needs, resulting important sales and distribution channel even when in an increase in sales along with our many different reserving services other than train trips. They do not services and offers. have to turn to other vendors to find these services. In 2009 we launched our experience site, www. sj.se/
42 SJ Annual Report 2 0 0 9 Annual Review 43 SJ must fortify its position as an attractive employer. The objective is for SJ employ- ees to thrive and feel they receive the support and are equipped with the tools they need to do a good professional job.
Attractive employer
n 2007 SJ initiated a wellness program aimed at Our supervisors and mangers can also find extensi- improving the health of our employees and redu- ve leadership support on our Intranet. All new mana- I cing sick leave absences. The program focuses gers complete a special orientation course at SJ Ser- on fitness and exercise, nutrition counseling, stress vice Academy. During the year we have also focused management, and mental health for our employe on our Learning Management System (LMS) to orga- es. Our health index shows an increase in employee nize information about all employees’ training and satisfaction and a decrease in absenteeism. In 2009 certification programs. This system is an important the focus was on reducing long-term sick leave; tool for training, planning and follow-up. absenteeism fell from 5.1 to 4.6 percent. The next SJ wants to be a sustainable company in all step is to reduce short-term sick leave. For the 1,300 regards, especially with respect to our employees. employees in the Stockholm area, SJ has tried to Gender equality is an important field and during the implement a direct line for reporting illness to our year we formulated our equality policy and adapted occupational medicine service. If a sick employee it to the new anti-discrimination legislation. Among Many people turned up when SJ recruited attendants at Wallmans salonger. has not returned to work after three days, a doctor other things, the policy states that all employees or nurse calls to see how the person is feeling and will have salary agreements and that employees on Attendants have to be good at improvising and handling unexpected situations. offer help. This proactive rehabilitation approach has parental leave will be offered the same opportunities produced good results. Overall, the health initiative for skills development as their coworkers. has had many positive effects. We have a three-year plan to achieve a more equal gender distribution in all professional groups. Reset- Individual targets ting the historically male dominance among drivers During the year we implemented commission-based and switch personnel will take a long time to. We are sales for employees who work with sales in our stores also trying to achieve a more equal gender distribu- and at the Contact Center to develop a more custo- tion among our sales associates. mer- and service-oriented sales culture at SJ. Each travel agent has individual targets that are tracked Hiring by the employee’s immediate supervisor, whose role The need for employees varies over time and SJ as coach has gained importance. Implementation of needs to use more flexible forms of employment in commissions on sales is unique in a government- the future. Hourly employment will mainly attract run company. young people who can gradually be channeled into Workers and managers have many courses and the operation. About 70 new employees were hired training programs from which to choose for both on an hourly basis at the end of 2009 to work on the professional and general improvement. SJ has offe- trains when needed. red an employeeship program for the past few years.
SJ employees
The average age for men in the Group is 46 years and for new employees were hired on an hourly basis to work on women 36 years. The average length of service for men board the trains. in the Group is 13 years and for women 9 years. The personnel turnover rate was 9 percent in 2009. About Average number of employees 2009: 4,439 (4,539) 200 employees left the Group in 2009 through natural Breakdown by gender 60 percent (62) men and 40 per- attrition, dismissal and pension agreements. About 70 cent (38) women.
44 SJ Annual report 2009 Annual Review 45 Traffic supervisor helps customers get where they want to go
Together with about 80 colleagues, Fredrik Tynelius works on a shift schedule every day, year around, to supervise and control traffic.
If service is disrupted, Fredrik’s job is to get the travellers to their destination within a reasonable amount of time. “I try to find new connections and ways for customers to reach their destination. If no alternative connections by train are available, we have to bring in a bus or some other means of transportation,” he says. The heart of the journey Many factors interact in train traffic and when something goes wrong, there are often consequences. Fredrik’s job is to look at the big picture and minimize the impact. He is always thinking about the customer; if he didn’t, serious repercus- sions could arise. “Say a train in Norrland with a bus connection is delayed All SJ employees do their part to ensure that SJ trains keep rolling, each in their own and the next bus departure is two hours away. The tempe- way. Everyone is equally important and we all work together to offer our customers rature is 30 below outside. You can’t just let people stand out there and wait for two hours; you have to make arrang- what they want and need – both today and in the future. We’d like to present a few ements for the customers to stay warm, maybe have a bite to eat.” He has to make tough decisions and find solutions as of them here. Every day they do their best so that even more people choose to travel quickly as possible. It is crucial for information flows to work with us. Extreme cold between everyone involved when disturbances occur. “Customer focus and customer satisfaction are important, “My job is to help my colleagues who work on the trains. but most important of all is safety. Safety is critical.” In order to be able to make the right decisions we need com- “For example, in extreme weather conditions we some- munication, accurate information. Unfortunately things oc- times have to cancel a train, which could affect customer casionally go wrong and in the final analysis the customers satisfaction. But we can’t risk having a train standing in the suffer. For the most part I feel we can resolve the situation middle of a forest in the middle of the night in extreme cold. in the best possible way for the customer. And that’s the fun We just don’t take that kind of safety risk,” says Fredrik. part about this job,” says: Fredrik.
The carriage operator inspects the trains
Malin Moliner Rosgård has been a carriage operator at SJ’s Active listening for group sales associate terminal in Hagalund, Solna for the past eighteen months.
The travellers are always foremost in her mind; her job is Pernilla Eriksson sells group packages at the ContactCenter in to make sure that the trains are safe and in good condition Ånge. No two customers are alike. She deals with customers before they enter traffic. from Swedish athletics clubs to Japanese travel agencies. No train can leave the station and drive toward its desti- nation until the train driver has a paper stating that the train The most important part of her job and the key to success has been checked out and is ready to roll. This work is a large is the ability to listen - actively and then offer the very best and important part of Malin’s job at the Hagalund terminal. trip possible. She says that the customer is always on her mind when “You have to be interested in what the customer says – she works. both the details and the big picture. Sometimes I hear so- “When we go through the train and check it, from the bra- mething the customer may consider unimportant, but it pro- kes and the fire extinguisher to the ventilation, making sure vides an opening to offer a taxi or hotel,” she says. that the seats are clean and in good condition, it’s all for the Active listening allows her to provide more service and sake of the customers. They have to feel safe and comforta- exceed expectations, resulting in a satisfied customer who ble, that they are getting their money’s worth.” gladly returns. That’s the part of her job that she likes best. She says that SJ’s growing supply of new services makes The right train, on time it easier for her to provide service, along with increased ac- Malin and her colleagues prepare all types of trains for their cessibility. journey. She also works switching carriages, which involves “Today there are so many good solutions, like e-tickets working under pressure. and tickets by mobile phone. SJ has so much more to offer is achieving the Group’s overarching budget targets. But her “The right train has to be delivered on time and many customers with respect to both services and selection.” favorite part of her job is the conversations with customers. factors can influence how much time we have to do the job, think the change will lead to better punctuality in the long Pernilla receives coaching once a month to further shar- “The fact that we communicated both by e-mail and te- such as repairs and events out on the tracks. But I enjoy wor- term.” pen her skills and sales abilities. lephone quite a bit probably makes me feel even greater re- king under pressure, you have to be able to do that here.” Malin also works as an instructor for trainees. She has a “You can always improve at up-selling,” she says, at the sponsibility to make the trip the best possible. Sometimes I Many trains have to be prepared to run in traffic each technical school background and several courses in the SJ same time it is always important to be sensitive; the custo- think about a customer project even after hours. Just about day and Malin feels that it is good that the responsibility has vehicle training program, training for the job of preparing the mer may just want to order a trip. the most fun of all is when the customers stop by afterwards moved. carriages for service and courses at SJ Service Academy. Like any sales associate, she has her own sales targets to tell you about the trip.” “We still have more time to prepare the trains than when “I like this job,” she says. “It has variety and responsibility and she usually achieves those goals. At least as important the drivers did the job, and with even more procedures. I and the company is good. And I enjoy working outdoors.”
46 SJ Annual report 2009 Annual Review 47 Customer-focused train attendant Safe driving
Jenny Söderberg is a train attendant on the X 2000. Nicklas Granath, who used to work in marketing at an Upp- sala newspaper, has worked as a train driver for about a year. She is responsible for safety on board, but also provides or- “Every day is an exciting challenge,” he says. dinary services such as serving food and beverages in first class, checking tickets and taking care of the bistro. “We receive vast quantities of information to process all the Jenny has worked as a train attendant since 2000 and time and when things happen, you have to make quick deci- really enjoys her job. “The most important thing is to have sions. Unlike what most people think, no two trips are alike the right attitude,” she says. in this job,” says Nicklas. “I’m usually upbeat; everything works so much better then. If something happens you have to make the best of the Dream job situation. The customer has paid for a trip and maybe an ex- After 20 years of dreaming, he now has his dream job and perience and we do everything we can to provide them with he is very satisfied with it. It was more complicated than he it. After all, what would we be without our customers?” had expected, but that’s also what makes the job so exciting. Nicklas experiences the greatest satisfaction when travel- The couple that could not exit lers don’t notice any of the events and challenges he faces She meets new people all the time in her job, facing situa- Look at the customer during the course of the journey. tions she was trained to handle. She received her training at She feels that the most difficult part of the job is when custo- “The best compliment I can receive is when no one says SJ’s Service Academy, where students practice and improve mers are really upset, such as because of delays. anything. When the customer experience is that everything their skills and abilities to handle a variety of situations. Ne- “When people are angry, I’ve learned to wait them out is just rolling along – smoothly, quickly and reliably.” vertheless, she has to frequently rely on her own judgment and not interrupt. Only afterwards are they receptive to what and experience. I have to say about the causes and possible solutions. Then Safety first She tells about a pair of 75-year olds who were unable to everything usually turns out fine.” And of course the train has to run on time. That can be the exit the train at Åre because the door wouldn’t open. It’s important to be flexible when delays and unusual biggest challenge. Congestion on the tracks and safety as a “The door was out of order, but the sign on the inside had events arise and look at the customer. Sometimes treating top priority sometimes cause delays. fallen off. When the train rolled on toward Duved they were them to something extra in the bistro as compensation can “We do everything in our power to ensure that everyone upset and didn’t know what they would do. I calmed them be appropriate. A satisfied customer is the most important arrives on time. But we never compromise on safety. Safety down, treated them to coffee in the bistro and then arrang- thing. is not just priority number one when we drive, it’s also prio- ed free lodging overnight in Duved. I told them they could rity number two and number three.” travel back to Åre with me in the morning, free of charge. How good can you get at your job? Nicklas learns a lot about the job from experienced train Everything worked out and they were extremely grateful and “There’s always room for improvement, that’s my attitu- drivers and the more he drives on his own, the better he gets. satisfied.” de. I learn something new about the job every day.” He can adapt the speed perfectly when he has knowledge and experience about a particular section of track. He is con- stantly thinking about the best interests of the travellers. Travel agent enjoys meeting customers “The train is filled with about 300–400 people who are working or resting, eating or snacking. I want to drive as Marie Louise Gunér works as a travel agent at the SJ Travel smoothly and comfortably as possible. I want people to en- Store in Stockholm. Customers come here to buy tickets, get joy the ride and arrive on time.” help with rebooking or with hotels and other services. She Niklas is improving at the art of anticipating and doing says that she never gets tired of meeting the customers. the right thing in his job with every day. The goal is for the trip to be comfortable, punctual, and disruption-free – for the customer. The central station is filled with activity almost all day long. About 50 people work at the travel store with sales and customer service. “Sometimes the store is packed with people. I always try to help each customer the best way I can, that’s the chal- lenge and the fun part of the job,” she says. She meets people from different parts of the country, as well as foreign visitors and tourists. “It’s fun to see customers in person, you develop a different relationship than on the phone. Explaining things to people is easier when you meet them face to face, even for customers who don’t speak much Swedish,” says Marie Louise.
Customer needs Since SJ currently has a large selection of services and offers for improvements it is important to capture the customer’s needs in the face- “I get a lot out of this since we learn from each other,” to-face encounter. says Marie Louise. “We can offer the customer almost anything, from the en- As a travel agent at the central station she also helps tire trip to hotels and events. It’s important to communicate customers when there are delays. this to the customer by actively listening and asking ques- “I help them to rebook their trips. The customer must al- tions,” she says. ways feel completely secure about reaching the final desti- nation, no matter what happens. If it isn’t possible by train, Coaching we arrange for a bus or taxi. Sometimes we give coupons As a trained coach she helps her colleagues to develop their or allow families with children and second-class travellers customer relationship management skills as well as sales. to have access to our lounge. We always try to help the best She sits in on sales calls and listens to the sales pitch. After- way we can.” wards they discuss the results and brainstorm suggestions
48 SJ Annual report 2009 Annual Review 49 Board of Directors Executive Management
Thomas Winäs Communication Employees SJ Business Lars-Olof Gustavsson Jan Olson Jan Forsberg Nina Hornewall Year of birth 1952. Council and the Union of Service and Year of birth 1943. Employed at SJ since 2003. Employed at SJ since 2002. Employed at SJ since 2005. Train driver. Communication Employees Göteborg Club Non-executive director of SJ AB since 2005. Year of birth 1950. Year of birth 1951. Year of birth 1956. Non-executive director of SJ AB since 2003. SJ Resor. Chairman of Four Seasons Venture Capital Vice President Business Development. President and Chief Executive Officer. Vice President Sales. Chairman of ST-Spårtrafik SJ AB. Member of AB, Fouriertransform AB. Bachelor of Science. Master of Engineering KTH. Diploma in Marketing. the departmental board of ST-Spårtrafik. Elisabet Salander Björklund Non-executive director of Data Respons ASA, Chairman of Merresor i Sverige AB. Non-executive director of Samtrafiken i University-level language studies Year of birth 1958. Mikroponent AB, Siem Capital AB, Swedish Sverige AB, Apoteket Omstrukturering AB Non-executive director of KF Fastigheter. Nils-Gunnar Nyholm Executive Vice President Stora Enso. Industrial Development Fund, Mellifer AB, TA Elisabeth Lindgren and Almega. Year of birth 1944. Non-executive director of SJ AB since 2008. Associates AB. Employed at SJ since 2007. Chairman of Stockholmståg KB, SJ Event AB, Peter Cedervall Controller. Non-executive director/Chairman of the Year of birth 1963. SJ Service Academy AB and SJ Norrlandståg Employed at SJ since 2008. Non-executive director of SJ AB since 2001. boards of several subsidiaries/affiliated Ingela Tuvegran Vice President Corporate Communications. AB. Year of birth 1965. Employee representative of SACO/TJ (the companies within Stora Enso Oyj. Year of birth 1951. Bachelor of Arts, Diploma in Marketing, Vice President Traffic. Swedish Confederation of Professional Non-executive director of Claes Ohlson AB, Director of development, Region Västra Master of Business Administration Lars Svensson Master of Engineering. Associations), Chairman of the TJ section at Marcus Wallenberg Prize Foundation, the Götaland. Stockholm School of Economics. Employed at SJ since 1999. SJ AB and member of the National Executive Swedish Forest Industries Federation, the Non-executive director of SJ AB since 2003. Non-executive director of Magelungen AB. Year of birth 1948. Britta Dalunde Vice President Traffic Safety. Employed at SJ since 2009. Committee of TJ. Royal Swedish Academy of Agriculture and Chairman of the Board of the University of Claes Broström Master of Engineering KTH. Year of birth 1958. Forestry, the Royal Swedish Academy of Skövde. Employed at SJ since 2006. Vice President and Chief Financial Officer. Monica Caneman Engineering Sciences. Deputy member of the board of Uppsala Year of birth 1954. Peter Blomqvist Bachelor of Science. Year of birth 1954. Monitoring Center. Vice President Fleet Management. Employed at SJ since 1982. Chairman of SJ Försäkring AB and SJ Invest Non-executive director of SJ AB since 2002. Ulf Adelsohn Bachelor of Science, Diploma in Marketing. Year of birth 1954. AB. Chairman of SOS International AS, Linkmed Year of birth 1941. Eivor Andersson Chairman of Linkon AB. Vice President Human Resources. AB, Point Scandinavia AB, the Fourth Consultant. Year of birth 1961. Degree in social work. Håkan Ahl Chairman of the Board of SJ AB since 2002. Swedish National Pension Fund. CEO Ving Sverige AB. Non-executive director of Swedish Social Employed at SJ since 2007. Non-executive director of Investment AB Chairman of Realm (Xanté+Sherry Heering), Non-executive director of SJ AB since 2005. Insurance Agency. Year of birth 1955. Öresund, Poolia AB, Schibsted ASA, Orexo SEB/ Trygghetsstiftelsen assembly, the Non-executive director of Coop Butiker och Vice President Service. AB, Securia AB. Swedish Hotel and Restaurant Association, Stormarknader AB. Master of Business Administration Nordic Airport Properties (LFV+ General University of Leicester. Erik Johannesson Electric), Humle Kapitalförvaltning. Björn Mikkelsen Year of birth 1957. Other directorships: Stiftelsen Acta Year of birth 1962. Train driver. Oto-Laryngologica, Confederation of Swedish Deputy director of the Ministry of Enterprise, Non-executive director of SJ AB since 2005. Enterprise, Aktiv Arbetsmedicin (Falk), Energy, and Communications. Employee representative of the Union of Frösunda LSS AB, Transticket AB. Non-executive director of SJ AB since 2002. Service and Communication Employees, Non-executive director of Green Cargo AB. Chairman of the Union of Service and
50 SJ Annual report 2009 Annual Review 51 The owner sits just a stone’s throw from SJ’s headquarters at the Central Railway “There will always be people who oppose the future, but high-speed trains will come, Station in Stockholm. Maud Olofsson, Minister for Industry, Employment and Com- even to Sweden. The rest of Europe can’t be wrong and I consider high-speed rail munications, would like to share her thoughts about how the owner views deregu- lines to be a lifeline to Europe for Sweden,” says Ulf Adelsohn. lation of the railways and SJ’s future.
Owner: Chairman of the Board: “SJ will do just fine in increased “Better preparedness for harsh winters” competition”
Maud Olofsson makes it clear that the Swedish go- How do you feel SJ performed in 2009? vernment actively supports the EU deregulation “Considering that we’ve had the deepest recession since process for railways. The center-right government’s World War II and the coldest winter in Stockholm at yearend policy is to deregulate to achieve increased competi- since1827, I feel that SJ performed extremely well. We conti- tion and lower prices. nued to have good profitability and we transported almost as many travellers as in 2008, despite the sharp decline in total What do you hope will be the result of deregulation of the flows of travellers.” railway market? ”Experience from deregulation in other industries, such as What does SJ need to improve? telecom, shows that it creates increased competition and lo- “Health is silent, as the Swedish saying goes. Most of our wer prices, but also increased growth. While it may be painful travellers are satisfied, but you never hear from them. It’s at first for those companies that experience increased compe- the criticism that we hear and of course punctuality needs tition, deregulation is socioeconomically profitable,” says the further improvement. Although this winter has been extreme, Minister for Industry, Employment and Communications. we still need better preparedness for harsh winters. We’re working on formulating a program for this purpose.” Won’t increased competition make harder it for SJ to deliver the same return to the government? Is more money needed to improve punctuality? “In recent years SJ has worked hard to become a profi- “Yes, both for maintenance and for new tracks. According table, more modern railway company. Therefore I am con- Photographer: Gunnar Seijbold / Government Offices to one study, Sweden had among the lowest appropriations Photographer: Björn Leijon vinced that SJ will do just fine with increased competition for maintenance compared with other European countries for roads and rails in 2009 and 2010.” and continue to meet the owner’s yield requirements in the over an extended period of time. The goal of increasing train How can SJ protect itself against such competition? future. We have no intention of easing these requirements. If Where does SJ need to change or improve? travel in Sweden by 50 percent cannot be achieved with the ”We can’t compete with the Danish or Norwegian Treasu- competition increases for our own companies then they will “SJ has a strong brand. When you’re the people’s railway, appropriations planned for the railways in the infrastructure ry.” have to adapt to deal with it. I believe that SJ is well equipped you create a love-hate relationship. Personally, I rarely take plan that’s in place until 2021. There is SEK 25 billion in new “The competition authority in Denmark has reported DSB to do just that.” the train. Since I live just outside Umeå I usually fly to Stock- funds, but we need four times more that amount.” because it has hidden state aid. If there should be distorted holm and from there I fly abroad. But, if there were a night Do you see a risk that SJ will face competition from other competition on the Swedish market we will act via our owner train from Stockholm to Brussels I’d take it. In general I prefer Are you satisfied with SJ’s performance? government railway companies that are backed by govern- and the EU rules on state aid.” to take the train, since it’s easier to work and you arrive in “Our ability to meet the owner’s yield requirements in ment subsidies to operate? the heart of the city. The train could help tie our elongated such a deep recession is a demonstration of strength. The How do you view future competition with other modes of “Naturally the Government’s attitude is that all players country together even better. But the train needs better con- public seems to think that SJ should transport everyone for transportation? must have the same terms of competition. If we suspect illegal nections with other modes of transportation and the Swedish low prices, but they don’t seem to grasp the fact that we also “That’s up to the market. SJ has shown that we can trans- state aid under EU rules, we will challenge it by allowing the network needs to be linked to its European counterparts. have to be profitable.” port more and more for lower prices. As a result we’ve captu- EU commission to conduct a judicial review. But under any It isn’t particularly competitive for a freight train between red market share, particularly from aviation. We will continue circumstances, SJ must ensure that it can handle increased Volvo’s factories in Gothenburg and Gent in Belgium to chan- What do you think about deregulation of the railways? to do so, but there isn’t a single route where we do not com- competition. And the best way to do that is to continue to ge locomotives five times and travel at an average speed of “Purely ideologically, I feel that infrastructure is a govern- pete with other modes of transportation. The car is difficult increase customer satisfaction and customer benefit.” 17 km/hour.” ment responsibility and that one major rail company should to beat, since it is perceived as the simplest and most conve- remain government-owned. Today there really isn’t room for Do you support government investigator Gunnar Malm’s nient way to travel.” Is there room for new players on the tracks? more competition on the tracks, since they’re already cong- proposal to build high-speed rail lines? “The tracks aren’t as crowded as it is sometimes stated ested. There would only be competition for the tracks, not for “High-speed trains would be good for Sweden. But the Do you think that Sweden will get high-speed trains, or in the discussion. During rush hour the entries to the major the customers.” socioeconomic benefit need to be further investigated. In- is that just a utopian ideal? cities can be congested. But capacity can be increased, even frastructure minister Åsa Torstensson is currently working on “Sooner or later, high-speed trains will even come to Swe- without new tracks. Trains can be connected when they start How will SJ manage to meet the increased competition that the proposal, which has already made the rounds for com- den. When political decisions were being made to build sub- from the urban areas and then separated at appropriate lo- will accompany deregulation? ment. But first the government has to adopt the collective ways, many people viewed them as a form of utopia. The rest cations, to continue on to different destinations. Another way “SJ is very competitive and we are well prepared. If we action package for infrastructure investments of SEK 417 of Europe is building high-speed rail lines. Is all of Europe is to drive more double decker trains.” aren’t competitive enough, it’s because we meet competition billion for 2010-2021. Parts of this package will affect the wrong, while the opponents to high-speed trains in Sweden from rail operators backed by government subsidies.” are right?” Is the railway a low political priority compared with high proposed high-speed rail lines, though they will require sepa- ways? rate financing. The government will decide on the action plan “I don’t think so. We’re building out the rail routes in the during the spring.” plan and the government has allocated SEK 7.6 billion extra
52 SJ Annual report 2009 Annual Review 53 Directors’ report in brief
Our operations and customers The drop in income of SEK 204 million was chiefly due Financial targets this field. SJ believes a proactive approach to sustai- SJ AB runs railway passenger traffic. Customers are to the transfer of Öresundstrafiken to another operator SJ aims to be a modern travel company operating nability will help to fulfill our vision of “All aboard!” divided into private and business travellers and com- and to a decline in passenger volume for SJ AB. on a sustainable and purely commercial basis. The and hence contributes to a greener and more sustai- muters. owner has two financial targets for SJ: an equity/ nable society. Train operations in the Group are mainly operated Operating profit and operating margin assets ratio of at least 30 percent and a return on The Sustainability Reporting framework is the third through the parent company, SJ, and the subsidia- Operating profit was slightly less than the previous equity of 10 percent after tax over one business generation, or G3, guidelines of the Global Reporting ries Stockholmståg and Norrlandståg. Other subsi- year at SEK 629 million (795), while the operating cycle. SJ’s policy is to pay a dividend equal to one- Initiative (www.globalreporting.org). diaries and associates operate in areas closely allied margin was down slightly compared with 2008 at third of annual net profit. The intention is to gua- These guidelines have been widely embraced by to SJ’s core business. 7.2 percent (8.8). rantee a direct return on investment for the owner large corporations, and applying them facilitates com- in the form of sustainable, reasonable dividends, parisons with other enterprises. SJ chose in 2009 to Market trend Profit after financial items taking into account the company’s capital require- apply level B+. SJ self-evaluates its compliance with The deep recession left its mark on the year with Consolidated profit after financial items was SEK ments and financial position. The dividend policy is GRI G3 guidelines. Ernst & Young has reviewed SJ’s declining exports and rising unemployment, affec- 622 million (728). The net financial expense was approved by the AGM. Sustainability Report and confirmed the self-declara- ting SJ just like society at large. The Swedish Travel SEK –7 million (–67). Interest income dropped due tion of level B+ compliance. and Tourism Database (TDB) shows that travel by to lower interest rates, totaling SEK 133 million (143) Significant risks and uncertainties car increased in 2009, while air travel sustained the during the year. Finance costs including net of finan- SJ’s operations are exposed to a variety of risks, defi- Human resources greatest decline. cial instruments held for hedging totaled SEK –140 ned as business environment risks, business risks, The SJ Group has an average of 4,439 (4,539) SJ’s sales were stable during the first half of the million (–210). and financial risks. During the year SJ implemented employees, of whom 40 percent (38) are female and year, but demand for train travel softened during a new risk management process to ensure that risks 60 percent (62) are male. the fall. The two largest segments are Copenhagen Profit for the year, before and after tax are identified and handled more efficiently. The pur- During the year SJ conducted an efficiency pro- –Stockholm and Copenhagen-Gothenburg. Every fifth As of 2009 the corporate tax rate was changed from pose of risk control is to achieve better, more consis- ject that resulted in a reduction in the number of trip along the west coast of Sweden on Västkustbanan 28 percent to 26.3 percent. Profit for the year after tent results over time. Primary responsibility for risk employees. Redundant employees were offered vari- on the X 2000 or InterCity begins or ends in Denmark. taxes amounted to SEK 460 million (525). management at SJ rests with the Executive Manage- ous solutions. The most common package involved Almost 15 percent of trips with the X 2000 on the ment, although much of the work is performed local- early retirement and severance pay, though it was Copenhagen–Stockholm route cross the bridge. Cash flow ly in the organization. also necessary to dismiss a number of employees. Cash flow was SEK 970 million better than the cor- Employees who left their positions voluntarily recei- RESULTS AND FINANCIAL POSITION responding period in 2008 and amounted to SEK 1 Traffic safety ved severance pay, the size of which was determined million (–969), mainly because of the cash payment Rail travel should be safe and secure, with the goal based on length of employment and age. Parent company for the new high-speed trains the previous year, wit- that neither passengers nor SJ crew should be at risk The Board of Directors and the Executive Manage- The parent company, SJ AB, with its registered offi- hout taking out any loans. of loss of life or serious injury from the company’s ment consist of ten members each. The Board inclu- ce in Stockholm, accounts for 79.6 percent of con- operations. Traffic safety focuses on ensuring comp- des four women and six men; the Executive Mana- solidated sales and 83.3 percent of profit. The main Investments liance with safety regulations and managing safety- gement three women and seven men. A long-term source of revenue is income from rail services. Investments amounted to SEK 595 million (1,011) related issues throughout the business. initiative is also under way to encourage more women for the period. Investments in trains totaled SEK 477 No fatalities or serious injuries to passengers or to become train drivers. Operating income million (829), largely consisting of the investment personnel were reported in 2009, which meant that SJ’s efforts to reduce sick leave absences and pro- SJ’s income was SEK 8,790 million (8,994), a 2.3 in new high-speed trains. Investments in intangible the company met its safety target. mote wellness continued to produce good results; percent decline. SJ’s income typically varies during assets, including the customer loyalty program, tota- total sickness absence was 4.6 percent (5.1). the year, with a traditional drop in demand around led SEK 103 million (140). SJ’s sustainability work Employee turnover for the Group was 9 percent (7). the half-year mark due to lower business travel volu- Sustainable development has always been a priori- me during vacation months. ty for SJ, which has a long history of engagement in
54 SJ Annual report 2009 Annual Review 55 SJ AB is wholly owned by the Swedish state and operates under a market-based structure and conditions. The government’s overriding objective for its ownership is value creation. This objective is accompanied by expectations for a long-term stra- tegy, efficiency, profitability, development, and environmental and social responsi- bility. Governance at SJ
he government’s long-term financial targets Board establishes overall company strategy, span- Internal audit Auditors for SJ are an equity/ assets ratio of 30 percent ning organizational structure and changes as well The internal audit independently audits the SJ The role of the auditors is to independently exa- T and a return on equity of 10 percent. Short- as major investments. Group’s internal oversight and control. It also eva- mine the administration of the Board and the term outcomes may be affected by the business The Board also decides about the guidelines for luates compliance with policies, legislation and CEO. A large part of the audit is dedicated to the cycle and thus may be higher or lower than the tar- the company’s work. Another important task is to set provisions as well as the company’s risk manage- Group’s annual accounts and accounting records. get at any given point in time, without the owner con- the targets, in addition to the owner’s targets, that ment procedures. The internal audit reports direc- The Board’s Audit Committee is tasked with the re- sidering that the targets were not achieved. the management will achieve. tly to the Board. sponsibility of maintaining regular communication The Swedish government receives part of SJ’s The Board also ensures that SJ complies with the with auditors. The Owner at the AGM appoints the earnings through the annual dividend that the com- government guidelines for state-owned companies. auditors. pany pays. According to the Group’s dividend policy, which is established by the Board of Directors, the dividend will amount to one third of the profit after Owner tax if the equity/assets ratio is achieved. Nomination process AGM Board structure Inlagda 07 jan-ej gröna Board of Directors The Annual General Meeting (AGM) appoints SJ’s Internal Audit Remuneration Auditors Board members for one year at a time. The process audit Committee Committee of finding suitable directors is managed and coor- Contact information dinated by the state ownership unit of the Ministry President and of Enterprise, Energy and Communications. Direc- Chief Executive SJ AB SJ Service Academy AB tors should possess a high level of expertise well sui- Officer www.sj.se www.sjserviceacademy.se ted to the company’s business, conditions and futu- Visiting address: Centralplan 19, Stockholm Visiting address: Telegrafgatan 8A, Solna re challenges. Boards should contain a good balance Mailing address: SE-105 50 Stockholm Mailing address: Box 3147, SE-169 03 Solna Phone: +46 (0)10-751 60 00 Phone: +46 (0) 10-751 87 70 in terms of directors’ expertise, backgrounds, age The Board includes an Audit Committee and a [email protected] [email protected] and gender. Remuneration Committee. These committees pre- The Chairman oversees an annual review of Board pare issues but never make decisions. SJ Norrlandståg AB SJ Event AB performance in terms of both the administration by www.sj.se www.sjevent.se the Board as a group and the performance of each Remuneration Visiting address: Centralplan 19, Stockholm Visiting address: Telegrafgatan 8A, Solna Mailing address: Box 255, SE-105 50 Stockholm Mailing address: Box 3117, SE-169 03 Solna director. The Government Office is informed about The owner takes decisions on compensation for the Phone: +46 (0) 10-751 60 00 Phone: +46 (0)8-522 504 50 the results of this review. directors at the AGM. Prior to this decision an ana- [email protected] [email protected] lysis is conducted of comparable companies, since Board activities SJ’s remuneration must be competitive but not mar- Stockholmståg KB Linkon AB Under the Swedish Companies Act, the company’s ket-leading. www.stockholmstag.se www.linkon.se Visiting address: Klarabergsviadukten 49, Visiting and mailing address: Board has ultimate responsibility for SJ’s admi- Remuneration to the Chairman is higher than Stockholm Vasagatan 11, SE-111 20 Stockholm nistration, organization and financial position. The that of the other directors. Directors participating on Mailing address: Box 505, SE-101 30 Stockholm Phone: +46 0- 8-789 33 00 Board must always act in the best interests of the committees receive compensation for this work. Phone: +46 (0) 8-562 242 00 [email protected] company. The Remuneration Committee proposes the sala- [email protected] Each year the Board prepares a work plan. In ry and other benefits of the CEO and establishes addition to current business, the Board addresses principles for salaries and other benefits payable to issues of key importance or of a financial nature. The senior executives of the SJ Group.
56 SJ Annual report 2009 Annual Review 57 SJ AB Årsredovisning 2009 Årsöversikt SJ AB Årsredovisning 2009 Finansiell rapport SJ AB Hållbarhetsredovisning 2009
SJ AB Annual report 2009 SJ AB Annual report 2009 Sustainability Report 2009 Annual Review Financial Report
SJ AB SE-105 50 Stockholm Visiting address: Centralplan 19 Corp. ID no: 556196-1599 Phone: +46 (0) 10-751 60 00 [email protected], www.sj.se