Annual Report Air Greenland A/S 2020 1
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Annual Report Air Greenland A/S 2020 1. januar 2020 - 31. december 2020 Annual Report Air Greenland A/S 2020 1 Januar 2020 - 31 December 2020 The annual report was presented and adopted at the Company’s Annual General Meeting on 18/5 2021 Peter Schriver Chair of the meeting Air Greenland A/S CVR-nummer: 56 99 67 10 www.airgreenland.com Postboks 1012 3900 Nuuk Grønland The Group’s key figures and ratios (DKK mill.) 2016 2017 2018 2019 2020 Net revenue 1.3 07,1 1.304,8 1.401,3 1.397,7 1.129,5 Earnings before interest, taxes, depreciation and amortisation 226,9 217, 2 224,5 253,8 172,8 (EBITDA) Earnings before interest and tax (EBIT) 35,6 75,8 79,1 112,9 45,2 Profit or loss before tax 40,8 71,1 80,8 106,6 32,6 Profit or loss for the year 25,6 44,9 52,1 88,6 30,6 Tangible fixed assets 745,4 764,3 737, 2 688,4 824,7 Equity 683,6 700,7 717,9 488,8 506,8 Balance sheet total 1.121,7 1.170,2 1.244,1 1.130,2 1.177,6 Dividends for the financial year 37,0 22,5 - 461,0 - Investments in tangible fixed assets 78,7 148,0 126,2 95,6 289,5 Number of employees (year-end) 621 614 631 637 544 Profit margin 2,7% 5,8% 5,6% 8,1% 4,0% Return on invested capital after tax incl. goodwill 4,1% 9,4% 10,8% 11,2% 4,9% Financial gearing -0,4 -0,2 -0,4 0,1 0,3 Operational gearing -1,2 -0,7 -1,2 0,2 0,9 Return on equity 3,2% 6,5% 7, 3% 14,7% 6,1% Equity ratio 60,9% 59,9% 57,7% 43,3% 43,0% Unit of Statistical information (DKK mill.) measurement 2016 2017 2018 2019 2020 Route network length Km 18.340 17.603 17.603 17.603 11.345 Number of towns serviced Byer 22 16 16 16 16 Flown km in regular traffic 1000 6.025 5.903 6.201 5.933 3.698 Flying hours in the air, total Timer 23.176 23.189 23.486 21.527 15.742 Flying hours in the air, regular Timer 13.911 12.648 13.064 12.845 8.271 Offered tonne-km, regular traffic 1000 81.369 85.233 91.793 88.989 54.329 Sold tonne-km, regular traffic 1000 54.713 56.922 58.971 59.792 29.765 Total load factor, regular traffic Procent 67, 2% 66,8% 64,2% 67, 2% 54,8% Number of passengers 1000 426 419 431 438 246 Offered seats-km, regular traffic 1000 650.059 678.174 733.328 717.18 0 435.859 Sold seats-km, regular traffic 1000 523.656 548.252 568.316 579.841 258.892 Cabin factor, regular traffic Procent 80,6% 80,8% 77,5% 80,9% 59,4% Average travel distance for regular traffic Km 1.229 1.310 1.319 1.323 1.054 Table of contents Group profile 7 Preface 7 Highlights 2020 9 Financial development 11 Net revenue 12 Personnel and other external costs 12 Subsidiaries and associated companies 13 Risk management 16 Operational risks 17 Commercial risks 17 Financial risks 18 Fleet strategy and contracts 19 Service contracts until 2030 20 Search-And-Rescue (SAR) contract until 2032 20 Flight services to Thule Air Base 20 Emergency preparedness and Covid-19 21 Employee focus 22 Development – the good customer experience 23 Safety 23 LEAN 24 Ticket concept 25 Customer loyalty 26 Charter, mail and cargo 27 Other initiatives 28 Sustainability 29 Education in society 30 Diversitet 32 Expectations for 2021 33 Financial statements 43 Company information Central Business Register (CVR) no.: 56996710 Ownership: Wholly owned by the Government of Greenland, Nuuk, Greenland Share capital: 24 mio. kr. Auditors: PricewaterhouseCoopers Grønlands Revision A/S Executive Board: Jacob Nitter Sørensen, Administrerende direktør Statement of the Board of Directors and Executive Board We have on this day presented the annual report for view of the Group and Parent Company’s assets, lia- the financial year 1 January – 31 December 2020 for bilities and financial position as at 31 December 2020 Air Greenland A/S. and of the result of the Group and Parent Company’s operating activities and cash flow in 2020. The annual report has been prepared in accordance with the Greenlandic Financial Statements Act. The annual report is recommended for adoption at the Annual General Meeting. We consider the accounting policies to be appropriate, such that the annual report provides a true and fair Nuuk, 23 March 2021 MANAGEMENT Jacob Nitter Sørensen Chief Executive Officer BOARD OF Bodil Marie Damgaard Annette Pia Henrik Maule DIRECTORS Chairman of the Board Brøndholt Sørensen Steinbacher Steen Jensen Peter Claus Grønvold Samuelsen Martin Motzfeldt Jette Larsen Malik Peter Sam Grønvold Hegelund Olsen 1 The independent Auditor’s Report To the owners of capital in Air Greenland A/S Opinion In our opinion, the consolidated accounts and financial In addition, it is our responsibility to consider whether the statements provide a true and fair view of the Group and the Management’s Report contains the required information in Company’s assets, liabilities and financial position as of 31 accordance with the Greenlandic Financial Statements Act. December 2020, as well as the result of the Group and the Company’s activities and cash flow for the financial year 1 Based on our audit work, it is our opinion that the Manage- January – 31 December 2020, in accordance with the Green- ment’s Report is consistent with the consolidated accounts landic Financial Statements Act. and financial statements and has been prepared in accor- dance with the requirements of the Greenlandic Financial We have audited the consolidated accounts and financial Statements Act. We have not found any significant errors or statements of Air Greenland A/S for the financial year 1 misinformation in the Management’s Report. January - 31 December 2020, which comprise the income statement, balance sheet, statement of changes in equity, Management’s responsibility for the notes, including accounting policies, and cash flow state- financial statements ment for both the Group and the Company (“financial state- Management is responsible for the preparation of the ments”). consolidated accounts and financial statements that provide a true and fair view in accordance with the Greenlandic Basis for opinion Financial Statements Act. Furthermore, Management is We have conducted our audit in accordance with interna- responsible for those internal controls that it considers tional standards for audits and the additional requirements necessary to prepare financial statements that are free from that are applicable in Greenland. Our responsibility under material misstatement, whether due to fraud or error. these standards and requirements is further described in the section Auditor’s responsibility for auditing the financial With the preparation of the financial statements, Manage- statements. We are independent of the Group pursuant to ment is responsible for evaluating the Group and the Com- the international ethical rules for auditors (IESBA Code of pany’s ability to continue operating, to provide information Ethics) and the additional requirements that are applicable in concerning continued operations, where relevant, and to Greenland, just as we have fulfilled our other ethical obliga- prepare financial statements on the basis of the accounting tions in compliance with these standards and requirements. principle of continued operation, unless Management either It is our opinion that the audit evidence obtained is sufficient intends to liquidate the Group or the Company, cease opera- and suitable as a basis for our opinion. tions or does not have any realistic alternative other than to do this. Statement on the Management’s Report Management is responsible for the Management’s Report. Auditor’s responsibility for auditing the financial state- ments Our opinion regarding the financial statements does not Our aim is to achieve a high degree of certainty as to wheth- include the Management’s Report and we express no form er the financial statements as a whole are free from material of definitive opinion on the Management’s Report. misstatement, whether due to fraud or error, and to submit an audit report with an opinion. A high degree of certainty In connection with our audit of the financial statements, it is is a high level of certainty, but it is not a guarantee that an our responsibility to read the Management’s Report and in audit that is conducted in accordance with international stan- that regard consider whether the Management’s Report is dards for audits and the additional requirements that apply substantially inconsistent with the financial statements or in to Greenland will always reveal material misstatements any other way seems to contain significant misinformation. when such are present. Material misstatements can occur due to fraud or error and may be considered to be significant if they can reasonably be expected to have an influence, individually or collectively, on the financial decisions that are made by the users based on the financial statements. As part of an audit conducted in accordance with internation- 2 al standards for audits and the additional requirements • We evaluate the total presentation, structure and that apply to Greenland, we undertake professional content of the financial statements, including in- evaluations and maintain professional scepticism dur- formation in the notes, and whether the financial ing the audit. In addition: statements reflect the underlying transactions and events in such a way that they present a true and fair view.