Ring 3 Letbane I/S Annual Report 2014 Contents Ring 3 Letbane I/S
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Ring 3 Letbane I/S Annual Report 2014 Contents Ring 3 Letbane I/S Herlev Annual Report 2014 Contents Contents 1.0 Welcome 4 2.0 Directors' Report 8 2.1 Result for the Year 10 2.2 Company Management 14 2.3 Social Responsibility 16 2.4 Construction of a light railway in Ring 3 18 3.0 Annual Accounts 22 3.1 Accounting Policies 24 3.2 Profit and Loss Account 27 3.3 Balance Sheet 28 3.4 Cash Flow Statement 30 3.5 Notes 31 4.0 Board of Directors of Ring 3 Letbane I/S 38 4.1 Board of Directors of Ring 3 Letbane I/S 40 5.0 Endorsements 42 5.1 Management Endorsement 44 5.2 The Independent Auditors' Report 45 6.0 Appendix to the Directors' Report 46 6.1 Long-Term Budget 48 The English text in this document is an unofficial translation of the Danish original. In the event of any inconsistencies, the Danish version shall apply. 3 Welcome Ring 3 Letbane I/S 1.0 Welcome Dear reader, 2014 was a decisive year for the coming The light railway from Lyngby to Ishøj light railway in Greater Copenhagen. The will intersect the S-train network, with Folketing (Parliament) adopted the Act departures every five minutes in daytime on a Light Railway, and the preparatory hours, ensuring passengers a faster and work commenced. The company that simpler journey across the various areas is to undertake the engineering design, of the capital. The municipalities along construction and operation of the light the light railway will have new opportu- railway was established, and the Board nities to develop urban quarters, attract of Directors began the work of setting new employers and create new commu- the framework for the coming light rail- nal and social facilities. way in Greater Copenhagen. It is unique that 11 municipalities, the In the spring of 2015, the Ministry of Capital Region and the Danish State have Transport will publish the EIA Report, been able to join forces on constructing which will then be submitted for public a light railway. This requires a good deal consultation. Before the actual con- of foresight. struction work can commence, a more detailed description of the construction This Annual Report presents a detailed project must be drawn up, the Act to account of Ring 3 Letbane I/S' activities Construct the Light Railway must be in 2014. adopted, an invitation to tender must be held, and the winning contractors must We hope you enjoy reading the report. be found. The light railway will be vitally important Anne Grete Holmsgaard Chairman of the Board of Directors to the people of Greater Copenhagen, and for the Capital Region's public trans- Henrik Plougmann Olsen port network and overall development. CEO 4 Annual Report 2014 Welcome Ishøj 5 Map Ring 3 Letbane I/S v/Lundtofte v/DTU v/Bygning v/Akademivej Expected v/Akademivej Vest journey times v/Lyngbygårdsvej Lyngby station → Buddinge station v/Lyngby Centrum 7 minutes Lyngby Buddinge station → Herlev station v/Gammelmosevej 11 minutes Buddinge Herlev station → Glostrup station v/Buddingecentret 13 minutes v/Gladsaxevej Lyngby station → Glostrup station v/Gladsaxe trafikplads 31 minutes v/Dynamovej The entire line will take approxi- mately v/Herlev Hospital 55 minutes v/Herlev Hovedgade Herlev v/Lyskær v/Islevbro v/Ejbydal København v/Hersted Industripark v/Glostrup Hospital Glostrup ← Fyn/Jylland v/Park Allé vest v/Vallensbækvej Vallensbæk v/Bækkeskovvej v/Vejlebrovej Ishøj 6 Annual Report 2014 Map Light railway v/Lundtofte v/DTU along Ring 3 v/Bygning v/Akademivej v/Akademivej Vest v/Lyngbygårdsvej v/Lyngby Centrum Lyngby v/Gammelmosevej Buddinge The planned You can v/Buddingecentret extent transfer to v/Gladsaxevej will be 27 S-trains at v/Gladsaxe trafikplads kilometres, six stations v/Dynamovej with 27 – Ishøj, Val- v/Herlev Hospital stations lensbæk, v/Herlev Hovedgade Glostrup, Herlev Herlev, Bud- v/Lyskær dinge and Lyngby v/Islevbro v/Ejbydal København v/Hersted Industripark v/Glostrup Hospital A light railway The light rail- Glostrup ← Fyn/Jylland train can car- way trains will v/Park Allé vest ry 200-230 roll out for v/Vallensbækvej passengers. the first time Vallensbæk This corre- in 2021 v/Bækkeskovvej sponds to v/Vejlebrovej three-four Ishøj city buses. 7 Directors' Report Ring 3 Letbane I/S 2.0 Directors' Report 2.1 Result for the Year 2.2 Company Management 2.3 Social Responsibility 2.4 Construction of a light railway in Ring 3 8 Annual Report 2014 Directors' Report Gladsaxe 9 Directors' Report Ring 3 Letbane I/S 2.1 Result for the Year The result for 2014 before depreciation and Ishøj Municipality contributed DKK for the company. Any negative equity and write-downs was a loss of DKK 1.8 3.5 billion. The company's book loss of capital would thus not as such entail a million. Depreciation and write-downs DKK 92.1 million has been deducted need for further contributions from the totalled DKK 90.3 million in 2014, and from equity, which amounts to DKK 3.3 owners, as Ring 3 Letbane I/S would still concern write-downs on the construc- billion as at year-end 2014. be able to service its debt as planned. tion of the light railway. The result before financial items is hereafter a loss of DKK One consequence of the accounting poli- Financing, including long-term finances 92.1 million. cies applied by Ring 3 Letbane I/S is that Ring 3 Letbane I/S has drawn up an up- equity must be expected to continue to dated long-term budget. The long-term Development in equity be reduced in the coming years, culmi- budget shows the expectations of the Ring 3 Letbane I/S was established nating on the establishment of the major long-term economic development in the on 19 June 2014. In connection with civil engineering contracts. This is when company. The long-term budget shows its establishment, the Danish State, a considerable accounting provision will that the company's net debt is expected represented by the Ministry of Transport, be made. This provision will affect the to reach its maximum level, at approxi- and the Capital Region, Lyngby-Taarbæk operating result for the year in question mately DKK 4 billion, in 2027 (in current Municipality, Gladsaxe Municipality, significantly, just as most of the equity prices). The debt is expected to be Herlev Municipality, Rødovre Municipal- contributions can be expected to have repaid in 2059, which is in accordance ity, Glostrup Municipality, Albertslund been allocated at this time. with the previous expectations. Municipality, Brøndby Municipality, Høje-Taastrup Municipality, Hvidovre Ring 3 Letbane I/S is a partnership in Municipality, Vallensbæk Municipality which the owners are 100 per cent liable Investment budget for Ring 3 Letbane I/S All figures in DKK million Investments in Investments Overall budget Overall budget 2014 as at 31 Dec. (2014 prices) (2013 prices) 2014 Capital investments 78.4 103.9 3,452 3,418 Operations-related capital investments 11.9 11.9 1,352 1,339 Total 90.3 115.8 4,804 4,757 10 Annual Report 2014 Directors' Report Investment in the light railway reviewed annually in order to determine Investments in the construction of the whether there are indications of impair- light railway totalled DKK 90.3 million in ment. 13-14 mil- 2014, of which DKK 78.4 million con- The future cash flows included in the lion passen- cerns capital investments and DKK 11.9 recoverable value are based on the million concerns operations-related cap- company's current long-term budget and gers are ex- ital investments. In 2014 a write-down its incorporated future expectations, cf. of DKK 90.3 million was made concern- the company's long-term budget, section pected to use ing the construction of the light railway, 6.1. The recoverable value is calculat- the light rail- and the book value of the light railway ed according to the capital asset value is carried at DKK 0 in the Balance Sheet. method. On the calculation of the capital way on an an- This is a consequence of how the invest- asset value, the estimated future cash ment in the light railway will not be fully flows are discounted back to present nual basis. For recovered via future revenue, such as value. The calculation of the recover- comparison, passenger revenue, etc., and is therefore able value of the light railway shows a written down on an ongoing basis to the negative value, so that the value in the the "Kystba- expected recoverable value of the light Balance Sheet is stated as DKK 0. railway, with due consideration of the nen" (coastal planned capital investments, cf. below. Events occurring after the Balance line between The write-down that has been made is in Sheet date accordance with expectations. After the close of the financial year no Copenhagen events of significance to the Annual The write-down is based on an estimate Report for 2014 have occurred. and Elsinore) of the value of the light railway according had more than to the assumptions applied by the com- pany in the current long-term budget, as 10 million well as the expectations of the future lev- passengers el of interest rates (discounting factor). in 2011. Value of the light railway The net book value of the light railway is 11 Directors' Report Ring 3 Letbane I/S In conjunction with its establishment the company's owners have made Timing differences between capital expenditure contributions to the financing of and revenue (owner contributions) the capital investment.