Hovedstadens I Letbane Hovedstadens S Letbane I/S Annual Report Annual Report Hovedstadens Letbane I/S Metrovej DK- Copenhagen S CVR number: T + E [email protected] Read more about the Greater Copenhagen Light Rail at dinletbane.dk Cover visualisation: Gottlieb Paludan Architects Layout, e-Types Printing, GraphicUnit ApS ISBN number: ---- EMÆR AN KE V T S Tryksag 5041 0473 Annual Report 2019 Contents Foreword 05 2019 In Brief 06 Directors’ Report 08 Results and Expectations 08 Status of the Greater Copenhagen Light Rail 16 Design 22 Communication 23 Safety on the Right Track 25 Corporate Management 26 Compliance and CSR Report 27 Annual Accounts 35 Accounting Policies 36 Accounts 39 Management Endorsement 59 Independent Auditors’ Report 60 Appendix to the Directors’ Report 65 Long-Term Budget 66 3 The Light Rail will run under the viaduct at Buddingevej before continuing up to Lyngby Station. Visualisation: Gottlieb Paludan Architects Annual Report 2019 Foreword The Greater Copenhagen Light Rail will be 2019 was the year in which the Light Rail In May, the design of the coming Light Rail part of the public transport network that construction activities got underway and trains was decided on. The trains will be will enable residents, commuters and busi- the project became visible in several places green and will thereby have their own iden- nesspeople to get around in an easy, fast and along Ring 3. The major preparatory works tity in relation to the other modes of trans- more environmentally friendly way. When it at Lyngby Station, Buddinge Station and the port in the Greater Copenhagen area, while goes into operation, the Light Rail will run Control and Maintenance Centre in Glostrup also making it easy to spot the Light Rail in on electricity, which is one of the most en- picked up speed and utility line owners began the cityscape. It was also decided to estab- vironmentally friendly resources. The Light the work of realigning utility lines along the lish four flex rooms in the coming Light Rail Rail trains will have capacity for around 260 entire section. In June, the project achieveda trains, to accommodate wheelchairs, prams passengers. This corresponds to the passen- major milestone, when the groundbreaking and bicycles. ger capacity of around four city buses. The ceremony was held, attended by the owners, Light Rail thereby has substantial capacity contractors, employees and press. Throughout the period, the focus was on good to transport many passengers. The more information for the surrounding communities people who use the Light Rail, the more en- The year also saw start-up with the new con- about the project. A new Info service email vironmentally friendly it will be as a mode of tractors. Among other things, time was de- was launched, text message alerts were im- transport. In addition, for most of the 28-km voted to drawing up a time schedule for the plemented, and the company’s website was section between Ishøj and Lyngby, the Light project and the launch of the joint safety and redesigned to make it easier to find infor- Rail will run in its own track. This means that working environment activities. In 2019, the mation about construction activities in the the Light Rail will be shielded from other traf- Safety Academy training programme became individual municipalities. The company also fic, and will not have to wait for congested well-established with a number of active launched a Facebook profile and initiated roads to clear. The Light Rail will thus to a courses both internally within the company closer dialogue with the surrounding world, great extent have far greater accessibility and for contractors and subcontractors for via both social media and the local press. than cars and buses. the Light Rail project. The new construction activities also meant I would like to thank all business partners that in 2019, for the first time, there was focus and employees. on the actual traffic flows at individual points along the line. This was handled via the meet- ings held by the Greater Copenhagen Light Rail together with the relevant road authori- We hope you enjoy reading the report. ties, the contractor for the works in question, the police and Movia, in order to prepare for Jakob Thomasen the traffic flows during the various excavation Chairman of the Board of Directors works. There was also focus on ensuring cor- rect and up-to-date traffic information con- Henrik Plougmann Olsen cerning the road works in question. CEO 5 Annual Report 2019 2019 In Brief Investments Operations-related capital investments Capital expenditure (DKK million) 1,559 5,884 Budget (2019 prices) Budget (2019 prices) Total 7,443 Total budget (including adjustment reserve at 2019 prices) The Light Rail is expected to serve Long-term budget (DKK million) 13-14 million passengers per year. 84 -4,440 184 2014 2025 2059 6 Annual Report 2019 Design of the trains: A Light Rail train will have four carriages. There will be one flex room in each carriage, where a wheelchair, a pram or two bicycles can be anchored. Each train can accommodate around 260 passengers. 4 260 carriages on passengers each train with capacity for: 1 wheelchair, a pram or two bicycles in each carriage dinletbane.dk was updated in October 2019. The site has around 200 unique users per day. 1,677 followers as at 13 December 2019 The Greater Copenhagen Light Rail joined Facebook in September 2019 2,518 registered for Info service emails as at 13 December 2019 7 Annual Report 2019 Directors’ Report Directors’ Report Results and Expectations Result for the year The result for 2019 was in accordance with expectations. The result for 2019 The Greater Copenhagen Light Rail will not “ have any passenger revenue until the Light As planned, the accounting result for 2019 was in accordance Rail opens. is a deficit of DKK 525 billion. The result is affected primarily by the market value with expectations. During the first years, the company's ac- adjustments of loans and interest rate counts will therefore show a deficit, due to agreements. the significant investments in the construc- tion of the Light Rail, without any passenger The market value adjustment can be attrib- revenue. uted to the company's financial agreements concerning interest rate hedging and rep- The company's finances are planned accord- resents expenditure of DKK 416 million, as ing to this strategy, which was also applied a consequence of the decrease in interest to the Great Belt Fixed Link, the Øresund rates in 2019. The adjustment is only an item Fixed Link, the Copenhagen Metro and the registered in the accounts, since the debt Fehmarn Belt Fixed Link. commitments are solely a valuation at fair value. The adjustment does not have any liquidity effect since the agreements are ex- pected to be maintained until their expiry. 8 Annual Report 2019 Directors’ Report Development in equity After market value adjustments, the compa- ny's adjusted equity was negative at DKK -1.1 Hovedstadens Letbane I/S was established billion at the end of 2019. In 2019, the market on 19 June 2014. The Danish State, repre- value adjustment gave accounting expendi- sented by the Danish Ministry of Transport ture of DKK 416 million. The decline in equity and Housing, the Capital Region and Lyngby- is in accordance with expectations and the Taarbæk Municipality, Gladsaxe Municipality, assumptions made on the establishment of Herlev Municipality, Rødovre Municipality, the company. Glostrup Municipality, Albertslund Munici- pality, Brøndby Municipality, Høje- Taastrup Hovedstadens Letbane I/S is a partnership in Municipality, Hvidovre Municipality, Val- which the owners are 100 per cent liable for lensbæk Municipality and Ishøj Municipality the company. Any negative equity capital in contributed DKK 3.5 billion on the company's the company would thus not as such entail a establishment. The company's accounting need for further contributions from the own- deficit of DKK 525 million has been deducted ers, since Hovedstadens Letbane I/S would from equity, which, as planned, was negative still be able to service its debt as planned. at DKK -1.6 billion at the end of 2019. Equity (DKK million) , 3,424 3,332 3,193 3,065 3,035 , , , -, -1,579 -1,054 -, * *Opening balance sheet, 1 January 2014 9 Annual Report 2019 Directors’ Report Capital and long-term finances that minimises the long-term financing costs, with due consideration of financial In December 2019, Hovedstadens Letbane I/S risks. Financial management within the strat- prepared an updated long-term budget. The egy adopted by the Board of Directors is un- long-term budget presents the expectations dertaken by Sund og Bælt Partner. This is laid of the long-term economic development in down and described in Greater Copenhagen the company. The long-term budget shows Light Rail’s memorandum of association. that the company's net debt is expected to reach its maximum level in 2025, at approx- As partners, the owners are directly, uncon- imately DKK 4.4 billion (in current prices). ditionally and jointly and severally liable for The debt is expected to be repaid by 2059, all of the company’s obligations, including which is in accordance with the previous the loans raised by the company. In addition expectations. to the terms that can generally be achieved in the capital market, the company has ac- The company has built up appropriate inter- cess to re-lending at Danmarks National- est rate exposure, so as to lock elements of bank. Re-lending is a loan raised directly by the future interest costs. The company has the company from Danmarks Nationalbank done this by entering into financial agree- on the basis of a specific government bond, ments on interest rate hedging, whereby the and on the same terms as when the bond is interest rates for a large part of the expected sold in the market.