DSB S-tog a/s Annual report 2008 Annual report 2008· DSB S-tog a/s / 1 Publisher: DSB S-tog a/s Sølvgade 40 1349 København K Photo: Klaus Holsting Layout: DSB Kommerciel, Visual Kommunikation 6. marts 2009 Annual report 2008 · DSB S-tog a/s / 2 Contents Management Statement Annual Accounts & Auditors’ report 11 Accounting Policies 4 Management statement 15 Profit and loss account 5 Independent auditors’ report 16 Balance sheet 18 Equity statement Management’s report 19 Cash flow statement 6 Financial review 20 Notes to the annual accounts 7 Risks 9 Sustainability Other information 10 Expectations for the future 31 Company information 32 Company profile Annual report 2008· DSB S-tog a/s / 3 Management Statement & Auditors’ report Management statement The Board of Directors and the Executive Board have today It is also our view that the Management Report contains a dis¬cussed and adopted DSB S-tog’s Annual Report for well-founded assessment of the company’s activities and 2008. financial conditions, the annual result and the company’s financial position in general and a description of the most The Annual Report is presented in accordance with the Da- important risks and uncertainty factors to which the nish Financial Statements Act, Danish Accounting Standards company is subject. and the Act on the Independent Public Corporation DSB and on DSB S-tog A/S. We consider the accounting policies The Annual Report is presented for approval at the Annual applied to be appropriate. Accordingly, the Annual Report Meeting. gives a true and fair view of the company’s assets, liabi- lities and financial position at 31 December 2008 and the Copenhagen, 6 March 2009 results of the company’s activities and cash flows for the financial year January 1-December 31, 2008. Executive Board Gert Frost CEO Bestyrelse Søren Eriksen Tage Reinert Marianne A. Jensen Chairman Vice-Chairman Michael K. Järvinen Gunhild Lange Skovgaard Anne Vang Annual report 2008 · DSB S-tog a/s / 4 Independent auditors’ report To the shareholder of DSB S-tog a/s policies used and the reasonableness of accounting estima- We have audited the Annual Report for DSB S-tog a/s for tes made by the Board of Directors and Executive Board, as the financial year January 1-December 31, 2008, comprising well as evaluating the overall presentation of the Annual the management statement, management report, ac- Report. counting policies, profit and loss account, balance sheet, equity statement, cash flow statement and notes. The We believe that the audit evidence we have obtained is Annual Report has been presented in accordance with the sufficient and appropriate to provide a basis for our audit Danish Financial Statements Act, Danish Accounting Stan- opinion. dards and the Act on the Independent Public Corporation DSB and on DSB S-tog A/S. Our audit did not result in any qualification. The Board of Directors’ and Executive Board’s responsi- Opinion bility for the Annual Report In our opinion, the Annual Report gives a true and fair view The Board of Directors and the Executive Board are re- of the company’s assets, liabilities and financial position sponsible for preparing and presenting annual accounts at December 31, 2008 and of the results of the company’s that give a true and fair view in accordance with Danish operations and cash flows for the financial year January 1 - Financial Statements Act, Danish Accounting Standards and December 31, 2008 in accordance with the Danish Financial the Act on the Independent Public Corporation DBS and Statements Act, Danish Accounting Standards and the Act on DSB S-tog A/S and for preparing a management report on the Independent Public Corporation DSB and on DSB that gives a well-founded assessment in accordance with S-tog A/S and that the management report gives a well- Danish disclosure requirements for annual reports. Such founded assessment in accordance with Danish disclosure responsibility comprises the design, implementation and requirements for annual reports. maintenance of internal controls relevant to preparing and presenting an annual report which gives a true and fair Copenhagen, March 6, 2009 view free of material misstatement, whether due to fraud or error; selecting and applying appropriate accounting po- licies and making accounting estimates that are reasonable KPMG in the circumstances. Statsautoriseret Revisionspartnerselskab Auditors’ responsibility and basis of opinion Our responsibility is to express an opinion on this annual report on the basis of our audit. We have conducted our audit in accordance with Danish Auditing Standards. These standards require that we comply with ethical require- Torben Kristensen Jesper Mikkelsen Heilbuth ments and plan and perform the audit to obtain reasonable State Authorised State Authorised assurance that the annual report is free from material mis- Public Accountant Public Accountant statement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosure in the annual report. The procedures selected depend on the auditors’ judgement, including the assessment of the risks of ma- terial misstatement in the Annual Report, whether due to fraud or error. In making those risk assessments, the auditors consider in- ternal controls relevant to the company’s preparation and fair presentation of the Annual Report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness of accounting Annual report 2008· DSB S-tog a/s / 5 Management’s report Financial review Pre-tax profits on a par with 2007 The rise in bus transport in connection with track work is DSB S-tog a/s pre-tax profits totalled DKK 185 million, DKK owing to extraordinary major costs for bus transport in 3 million less than in 2007 (DKK 188 million). This is largely connection with track work at the Farum and Klampenborg owing to a reassessment of the S-trains’ expected useful life section, which is a consequence of the fact that the track from 20 to 25 years, which is offset by falling passenger rev- work lasted significantly longer than Rail Net Denmark had enue, increased costs relating to bus transport in connection planned. with track work, higher energy costs and pay increases. Number of employees 90.9 million passengers travelled with DSB S-tog in 2008, The number of full-time employees fell by 490 to 1,336 in which represents a rise of 1.8 million passengers on the 2008. The fall is primarily owing to the transfer of the Kort year. & Godt shops to Kort & Godt A/S. As a result of the efforts to improve punctuality which Depreciation and write-downs, began in 2006, punctuality levels saw a significant improve- net financials and key ratios ment from 91.6 per cent in 2007 to 94.3 per cent in 2008. This well exceeds the target agreed with the Ministry of Investments Transport of 90.9 per cent in 2007 and 91.8 per cent in In 2008, DSB S-tog’s investments in fixed assets totalled 2008. DKK 197 million against DKK 264 million in 2007. Net turnover Depreciation and write-downs Net turnover fell by DKK 397 million from DKK 2,783 million In 2008, DSB S-tog carried out a reassessment of the in 2007 to DKK 2,386 million in 2008. The transfer of Kort S-trains’ expected useful life from 20 to 25 years, which & Godt shops as at 1 January 2008 to Kort & Godt A/S ac- resulted in a reduction in the year’s depreciation of DKK 124 counted for a fall of DKK 306 million. million compared to what would have been the case had the reassessment not been carried out. Despite an increase in the number of passengers and an increase in ticket prices, the share of traffic revenue from Net financials the fare co-operation in Greater Copenhagen fell by DKK 23 In 2008, net financials accounted for a net expense of DKK million. This was owing to the fact that the apportionment 292 million against DKK 296 million in 2007. Borrowing of passenger revenue in Greater Copenhagen benefits other requirements were less, while the borrowing rate rose. transport operators. Tax for the year Revenue from the transport contracts agreed with the Tax for the year totalled DKK 44 million, a rise of DKK 93 Ministry of Transport fell by DKK 67 million, as agreed in the million compared to 2007 when tax for the year constituted original transport contract. an income of DKK 49 million. It should be noted that tax in 2007 was positively affected by DKK 95 million following a Expenses reduction in the tax rate from 28 to 25 per cent. Total expenses amounted to DKK 1,481 million in 2008, which is a fall of DKK 240 million on the year. The transfer Balance sheet of Kort & Godt shops reduced costs by approx. DKK 300 million. Assets As at the end of 2008, the balance sheet stood at DKK Changes in expenses DKK million 9,448 million against DKK 10,086 million at the end of Total costs, 2007 -1,721 2007. This represents a fall of DKK 638 million. The decline - transfer of Kort & Godt shops 300 is made up of a fall in fixed assets of DKK 395 million, a - general price increases, wage & salary fall in receivables of DKK 256 million and a rise in stocks of increases and increased energy consumption -50 spare parts of DKK 27 million. - bus transport in connection with track work -30 - miscellaneous, including efficiency measures 20 The decline in fixed assets is owing to the fact that depre- Total costs, 2008 -1,481 ciation exceeds the year’s investments.