Annual Report 2011 Metroselskabet I/S
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Annual Report 2011 Metroselskabet I/S Metroen Annual Report 2011 Contents for Metroselskabet I/S Contents 1.0 Résumé and Outline 4 2.0 Directors' Report 8 Finances 10 Business Strategy 14 Metro Operation 16 Cityringen 21 Major Projects 26 Company Management 28 Social Responsibility 35 3.0 Annual Accounts 40 Accounting Policies 41 Profi t and Loss Account 45 Balance Sheet 46 Cash Flow Statement 48 Notes 49 4.0 Metroselskabet's Board of Directors 66 5.0 Endorsements 70 Management Endorsement 72 The Independent Auditors' Report 73 6.0 Appendix 76 Long-term budget 78 3 Annual Report 2011 Résumé and Outline for Metroselskabet I/S 1.0 Résumé and Outline Financial result for 2011 Metro Team (CMT) will construct stations The profi t before depreciation and write- and tunnels. downs increased from 2010 by DKK 81 mil- lion to DKK 191 million in 2011, as a con- In autumn 2011 the fi rst construction work sequence of stronger growth in passenger for City ringen commenced in Nørrebro- revenue than expected, and lower costs for parken. At the close of 2011, half of City - the operation of the Metro. The lower costs ringen's 21 construction sites were handed are a consequence of the new operating con- over from the preparatory works – realign- tract with Ansaldo STS, which entered into ment of utility grids and archaeological force at the end of 2010. excavations – to the contractor, Copenhagen Metro Team. The total cost of City ringen is The result for the year is aff ected by two very DKK 21.3 billion in 2010 prices. City ringen, large items – the provision for construction with its 17 new stations, will open in of City ringen and the market value adjust- December 2018. ment of loans and interest-rate agreements. The provision is a result of the conclusion of Higher passenger growth than expected contracts at the beginning of the year for the The Metro is a popular means of transport construction of City ringen, while the market with both residents and tourists in the capi- value adjustment is solely an accounting item tal. Ever since it opened in 2002 the num- that does not infl uence the Company's ability ber of Metro passengers has expanded to service its obligations. constantly. In 2011 this trend continued as expected, but with even higher growth than The Company's adjusted equity capital, expected, and a total number of passengers stated excluding the market value adjust- exceeding 54 million. This was almost one ment, decreased by DKK 6.0 billion to DKK million more passengers than budgeted, and 2.8 billion at the end of 2011. The develop- two million more than in 2010. ment in equity is a consequence of the provi- sion made, and corresponds to the expected Decision in the fi nancing of City ringen. arbitration case fi led by COMET On 10 April 2012 a ruling was made in the Commencement of the arbitration case with COMET, the major en- City ringen construction work gineering contractor for the Metro in opera- On 7 January 2011 the contracts for tion. COMET had originally claimed additional Copenhagen's coming new Metro system – payment of DKK 4 billion, but the Arbitration City ringen – were signed. Ansaldo STS is to Tribunal limited the possible compensation deliver trains, operating systems and infra- to maximum DKK 2 billion. With the ruling, structure, as well as the operation of City - COMET was awarded a total additional pay- ringen for fi ve to eight years. Copenhagen ment of DKK 478 million (excluding interest). 4 Metroen Annual Report 2011 Résumé and Outline for Metroselskabet I/S On its payment, the amount is expected to be area with new high-level stations. It is as- set off against the loan totaling DKK 839 mil- sessed that, in time, approximately 11,000 lion (excluding interest) that Metroselskabet new passengers will embark on a Metro train made available to COMET in the years 1999 every 24 hours at the two new stations in to 2002 in order to ensure COMET suffi cient Nordhavnen. liquidity to complete the construction work within the agreed time frame. Metrosel- Electronic ticket system skabet's total receivable from COMET, with comes to the capital interest, will fall due for payment when the In November 2011 a test group had the op- Arbitration Tribunal, in the course of 2013, portunity to use the electronic ticket system has ruled on the follow-up issues concerning in Greater Copenhagen, and the Metro sys- interest, currency, etc. tem is now equipped with fully functional equipment to check in and out using the The consequences of the Arbitration Tri- electronic ticket system. bunal's ruling are recognized in Metrosel- skabet's accounts for 2011. Reference is made Metro passengers have welcomed the new to the account of the arbitration case under electronic ticket options. In the spring, the section 2.6. Metro launched an app that makes it easy for customers to use their mobile phones to ac- Investigation of cess travel information concerning buses, trains Growth was even new Metro to Nordhavnen and the Metro, and to buy tickets. The product “ In November 2011, Metroselskabet and is extremely popular. Many people use their higher than expected, Udviklingsselskabet By & Havn published mobile phones to buy tickets for public trans- with a total number of an investigation of the possibility of the port in Greater Copenhagen, and in 2011, aft er establishment of a branch of City ringen to just two years, mobile phone tickets passed the passengers exceeding Nordhavnen (the North Harbor). The study milestone of 10 million tickets sold. 54 million.” describes a possible branch of City ringen to Nordhavnen, whereby one of the two City - The electronic ticket system and mobile ringen Metro lines is continued to two new phone tickets have also facilitated coop- Metro stations in Nordhavnen. The report eration between the transport companies describes signifi cant fi nancial, timing and in the Greater Copenhagen area, besides environmental benefi ts from undertaking improving information to passengers, dur- this project as part of the construction of ing the past year. City ringen. New secretariat for At the beginning of 2012 an agreement was the light railway in Ring 3 concluded between the Danish State, repre- In late summer 2011 Metroselskabet was re- sented by the Ministry of Transport, the City quested to act as secretariat for a light railway of Copenhagen and the City of Frederiksberg in Ring 3. The task is to prepare a basis for that gives Metroselskabet the opportunity decision for the light railway in Ring 3. Metro- to spend DKK 96 million on the preparatory selskabet will contribute expertise and experi- work for a Nordhavn Metro. ence from the construction and operation of the Metro. The owners are the Danish State, In step with urban development, the Metro the Capital Region and 11 municipalities that line can be extended out into the Nordhavn all participate in the process. 5 Annual Report 2011 Résumé and Outline for Metroselskabet I/S The light railway proposed to be constructed Sustainability is a key focus of the construc- on the Lundtoft e-Ishøj section, southwest of tion of City ringen. The surplus soil from bor- Copenhagen, will cover a distance of 28 km, ing operations is used to build embankments with 28 stations. in the Nordhavn urban development area. In addition, "green concrete" is used for the Partnership agreement for structures, which reduces CO2 emissions from apprentices to work on City ringen concrete production by around 30 per cent. In summer 2011 Metroselskabet established a partnership agreement with Dansk Byggeri Communication with neighbors (the Danish Construction Association), 3F Metroselskabet gives high priority to en- (the United Federation of Danish Workers), suring that neighbors and other stakehold- BAT-kartellet (The cartel of unions in the build- ers are kept continuously informed of the ing, construction and wood sectors), LO (the current and future construction work. In Danish Confederation of Trade Unions) and 2011, this direct dialogue with neighbors our two main contractors, CMT and Ansaldo, took place via numerous channels, such as concerning the employment of apprentices the website, notices on doors, information to work on City ringen. The objective is for 5 meetings, the mobile information stand to 7 per cent of the hourly-waged employees called "Open Pavilion", and the local press. at the construction sites to be apprentices. In The Metro is the most conjunction with the agreement, a "match- The hoardings around construction sites will “ maker" is appointed via Byggeriets Uddan- be part of Copenhagen's urban landscape eco-friendly way to nelser (the Danish Construction Association's until 2018, and Metroselskabet has there- training schemes)with the task offinding fore launched a project to help make the travel around the city , apprentices with the competences required hoardings more interesting to look at, for apart from walking or for the construction work. example using artwork installations. Several cycling.” of the hoardings were decorated during the Environment year. In Nørrebroparken, local artists and Metroselskabet's Environmental Report children helped to decorate the hoardings, was published in August 2011. It includes and at Kongens Nytorv the American art- sections on Metroselskabet's vision and ist Shepard Fairey decorated the hoarding environmental objectives, the Metro's en- around the construction site. vironmental impact, an action plan for the coming years, and environmental accounts. We hope that this annual report will pre- sent more detailed information on Metro- The report states that the Metro is the most selskabet. We wish you a pleasant reading. eco-friendly way to travel around the city , apart from walking or cycling.