Sund & Bælt Holding A/S CVR No. 15694688 Annual Report 2016
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Sund & Bælt Holding A/S Vester Søgade 10 1601 Copenhagen V CVR no. 15694688 Annual Report 2016 Chairman of the Annual General Meeting: Kristina Jæger Approved at the Annual General Meeting on 18 April 2017 \\Sv-data2-hals\transfer\Aarsrapport alle selskaber\ÅR_2016_UK.xlsx 2 Annual report Sund & Bælt Holding A/S Contents Sund & Bælt Group’s objective and organisation Preface 3 Sund & Bælt Group’s objectives and organisation 5 Highlights of the year 6 CSR – Corporate Social Responsibility 7 Results 2016 Traffic 8 Financial position 9 Finance 10 Events after the balance sheet date 13 Outlook for 2017 13 CSR objectives 2017 14 Business areas Road 15 Railway 16 Ports and ferry services 17 Wind turbines 18 Consultancy 18 The issuer company BroBizz A/S 19 Partnerships for the collection of tolls 20 Fehmarnbelt 21 Øresundsbro Konsortiet I/S 24 Corporate Social Responsibility Corporate Governance 25 Risk management and control environment 25 Environment and climate 26 Employees 27 Accounts Main items 29 Key figures and financial ratios 30 Accounts 32 Statement by the Board of Directors and Management Board 74 The independent auditor’s statement 75 Board of Directors, Management Board and Senior Executives 77 Key figures and financial ratios (subsidiaries) 81 Financial glossary 83 \\Sv-data2-hals\transfer\Aarsrapport alle selskaber\ÅR_2016_UK.xlsx Sund & Bælt Holding A/S Annual report 3 High traffic levels and operational first Scandinavian company to be registered as an EETS issuer in September. This means that we can now engage in discussions efficiency deliver profits to Sund & Bælt with other European countries on the use of BroBizz® as a means For the first time in the history of the Storebælt fixed link, over of payment on their infrastructure. It is an important step for the 50,000 vehicles drove over the link in one day. The figure is future to offer BroBizz as a competitive and natural choice for our consistent with a number of other records being set during the customers. Danish customers can now pay for crossings on summer: both traffic on our facilities and on Danish roads in Scandlines ferry routes with BroBizz after BroBizz A/S took over general. More than 12 million customers passed through the toll the contract administration in 2016. The company also launched a station in 2016 without significant inconvenience to traffic flow. partnership with the German fuel card company, UTA with a view This shows that our focus on efficient operations and new to covering the foreign commercial vehicles that run on toll roads in technology supports the objective of ensuring high mobility at our Scandinavia. facility. The over 400,000 more trips that were paid for by BroBizz® in 2016 show that technology development is relevant to On May 2016, Femern A/S signed construction contracts with enable us to continue to offer our customers the fastest way international consortia for almost DKK 30 billion. The consortia will through the toll station. be responsible for construction of the 18km long Fehmarnbelt tunnel between Rødbyhavn and Puttgarden. The submission of the The traffic growth and continued low interest rates gave us a good project application in Germany followed in July with a subsequent result for the year with a profit before value adjustments and tax of consultation period where there was a focus on environmental DKK 1.8 billion. The strong result also stems from a deliberate aspects in the local area and in the Fehmarnbelt. During the rest of strategy to keep costs and quality at a suitable level. As the the year, Femern A/S worked to respond comprehensively to all facilities age, they require increasing maintenance and reinvest- the objections. The final approval of the project before construction ment. Therefore, it becomes increasingly important to be able to work can begin is now awaited. take the necessary actions at the correct time. This is so that we maintain high accessibility while ensuring that we do not invest The political parties behind the Fehmarnbelt project decided on 4 before it is necessary. This gives us the right balance between March 2016 to initiate the Danish construction works at A/S quality and economy. Femern Landanlæg. This was based on a broad political agreement on the way forward for the Fehmarnbelt project. The In 2016, we repaired sections of the East Bridge’s road surface for Fehmarnbelt link, as with the Group’s other infrastructure facilities, the first time since its opening in 1998. The decision was based on is based on the state guarantee model, and will not just result in a data from our advanced asset management system that makes it significant boost for Danish and Scandinavian infrastructure to the possible to plan the optimum time for replacing the asphalt and our continent; the upgrade of the Danish land facilities will also mean a reinvestments. The same approach underlies the 3.9 km of railway reduction in the rail journey between Copenhagen and Nykøbing tracks we have replaced on the Øresund railway since we Falster. This, in itself, will bring entirely new development assumed responsibility for maintenance and reinvestment in 2015. opportunities to South Zealand and Lolland-Falster. And the result is clear; by the year end, there had been a noticeable improvement in punctuality. Now there is a full focus on At the end of the year, an amendment to the Act on Sund & Bælt maintaining this and capitalising on investments in the best was adopted in the Danish parliament. The Act, among other possible way. things, is about being more responsive in relation to the opportunities to exploit and utilise the skills and experience built up The Øresund motorway continues to have a central role in the in the Group, including in the BroBizz A/S and Sund & Bælt development of Amager and is an indispensable link between Partner A/S subsidiaries. The Act also authorises the Group to Copenhagen and the Øresund Region via the airport and Øresund create a new company that can bid on the installation, operation Bridge.This plays very much into the daily management of the and maintenance of toll stations on new infrastructure facilities. critical infrastructure facilities that have a very high traffic density. Against this background, we are well on the way to preparing our We are beginning to see the future need for capacity bid on a new toll station on the upcoming Fjordforbindelsen improvements on both the railway and the roads so that we can Frederikssund (Frederikssund Fjord Link) across Roskilde Fjord, meet the growing demand that, among other things, the which is expected to open in 2019. development of Copenhagen Airport will cause. The new opportunities are included in a new business strategy that We continue to work to stay abreast of technological developments Sund & Bælt’s board and management have just launched for the in the toll-charging sector. As part of this, evaluation of four Group. This will enhance the efficiency of the work to operate and European issuers’ OBEs is ongoing at Storebælt toll station. The develop the Group's infrastructure facilities and set the direction for ultimate goal is to enable citizens across Europe to use the same future activities. The strategy is based on the vision that Sund & OBE at all toll stations, independent of the facilities’ technology Bælt should be best placed to construct, operate and fund user- and systems. paid infrastructure that strengthens mobility in Denmark and Europe. BroBizz A/S is also participating in the project as an issuer of OBEs (BroBizz®) and achieved a distinguished quality mark as the 4 Annual report Sund & Bælt Holding A/S The strategy means that we will focus on optimising our skills and utilise these optimally to streamline our operations and we will Sund & Bælt: making travelling easier continue to work to increase Sund & Bælt’s value creation in the coming year and, at the same time, begin discussions with our partners through our Partner company to find the optimal formula for long-term maintenance. All for the benefit of our business, the industry and Danish society. Peter Frederiksen Chairman Sund & Bælt Holding A/S Mikkel Hemmingsen CEO Sund & Bælt Holding A/S Sund & Bælt Holding A/S Annual report 5 About Sund & Bælt The Sund & Bælt Group’s primary responsibility is to own and operate the fixed links across Storebælt and Øresund and, in time, also the Fehmarnbelt. These responsibilities are carried out with due regard for maintaining high levels of accessibility and safety on the links. Moreover, repayment of the loans raised to finance the facilities will take place within a reasonable time frame. The Sund & Bælt Group is tasked with: Operating and maintaining the road link across the Storebælt Bridge Collecting payment from motorists using the Storebælt Bridge. Monitoring and maintaining Storebælt’s rail section Being responsible for the planning, feasibility studies and Operating and maintaining the Øresund motorway construction works for the coast-to-coast link for the fixed link Monitoring and maintaining the Øresund railway across Fehmarnbelt Collecting fees from Banedanmark for the right to use the Being responsible for the ownership and financing of the Øresund railway on Amager and the rail link across Storebælt. Danish landworks in connection with the Fehmarnbelt fixed link Managing and ensuring repayment of A/S Storebælt’s and Being responsible for the co-ordination of the planning and A/S Øresund’s debt portfolio construction works for the fixed link across the Fehmarnbelt Managing the part ownership of Øresundsbro Konsortiet I/S comprising the coast-to-coast link and the Danish landworks Operating and maintaining the port facilities at Odden, Ebeltoft, Providing client consultancy in relation to major and primarily Spodsbjerg and Tårs international infrastructure projects on a commercial basis Operating and maintaining Sprogø offshore wind farm Operating as an issuer of BroBizz® for use at user-paid infrastructure via BroBizz A/S 6 Annual report Sund & Bælt Holding A/S Highlights of the year Mikkel Hemmingsen took up the position as CEO on 15 September 2016.