Annual Report 2006
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Køge 500 , 04.2007 Datagraf, Datagraf, Table of contents
Page
Board of Directors and Board of Executives ...... 4
Company information and addresses ...... 4
2006 in brief ...... 5
Business philosophy and targets ...... 6
Financial highlights ...... 8
Management’s review ...... 10
Shareholder information ...... 14
Mols-Linien builds on strong values ...... 18
Human resources ...... 20
Mols-Linien Service Academy ...... 23
Mols-Linien and the environment ...... 24
New service improvements based on IT ...... 27
Mols-Linien’s ferries in 2006 ...... 30
Routes, customers and traffic trends...... 32
Financial review ...... 35
Income statement ...... 37
Balance sheet...... 38
Statement of changes in equity for 2006...... 40
Cash flow statement...... 41
This publication is a summary of the Annual Report for 2006 for Mols-Linien A/S.
In the event of any discrepancies, the content of the Annual Report for 2006 takes precedence.
The complete Annual Report for 2006 – including the financial review and the complete financial statements with notes
– can be found at www.mols-linien.dk. Board of Directors and Board of Executives
Board of Directors Anker Christoffersen, former chairman of FTF (Chairman) Thorleif Blok, Manager (Vice-chairman) Erik Østergaard, CEO Michael Steen-Knudsen, Assistant Manager John Steen-Mikkelsen, Head of Division Kaj Birk Jensen, Chief Engineer (employee representative) Annelise Lund, Team Manager (employee representative) BOARD OF DIRECTORS Bent Mand Jørgensen, Chief Engineer (employee representative)
Preben Wolff Board of Executives CEO, MSc (Economics) Preben Wolff, CEO, MSc (Economics)
Board of Directors of Mols-Linien A/S Back row from left: Anker Christoffersen Michael Steen-Knudsen Erik Østergaard John Steen-Mikkelsen
Front row: Annelise Lund Thorleif Blok Kaj Birk Jensen Bent Mand Jørgensen
Company details Subsidiaries Grenaa-Hundested Linien af 1988 A/S, Ebeltoft, Mols-Linien A/S Municipality of registration: Denmark (100%) (non-trading company) Færgehavnen Ebeltoft, Denmark Kattegatruternes Reparationsselskab ApS, Ebeltoft, Denmark (100%) DK-8400 Ebeltoft Telephone +45 89 52 52 00 CVR no. 17 88 12 48 Fax +45 89 52 52 90 Auditors Internet www.mols-linien.dk Deloitte Statsautoriseret Revisionsaktieselskab Email [email protected] PricewaterhouseCoopers Statsautoriseret Revisionsinteressentskab
Best results in the history of Mols-Linien
• In 2006, Mols-Linien posted total revenue of DKK 761.2 within all internal and external areas, the ferry line set up the million against DKK 716.5 million in 2005, up 6.2%. Mols-Linien Service Academy in 2006.
• The net profit amounted to DKK 53.2 million, which is an • The estimated market value of the Mols-Linien ferries improvement on the announced outlook for 2006 of DKK 40- currently totals approx. EUR 76-86 million, corresponding to 50 million – and at the same time the best-ever results in the approx. DKK 570-645 million. As at 31 December 2006, the company’s history. book value of the ferries is DKK 416.9 million.
• Mols-Linien realised a positive cash flow from ordinary • The satisfactory results were achieved despite the continued activities in 2006 of DKK 104.8 million, which is on a par with political fixing of the rates for crossing the Great Belt Link, the announced outlook for the year of DKK 100-110 million. which leads to fierce competition on travel and transport between eastern and western Denmark – and despite the fact • In 2006, the ferry line again saw an increase in the number of that fuel prices remained very high in 2006. motorcars and lorries carried. • Against the background of the satisfactory results for the year • The Kalundborg-Aarhus combi-ferry route carried a record and Mols-Linien’s favourable capital structure, the Board of 360,100 lorry units, representing a 1.7% increase on the Directors recommends to the general meeting that dividend of record from 2005. DKK 10 per share be paid, corresponding to a total of approx. DKK 28 million. The dividend corresponds to a pay-out ratio • The high-speed ferry concept on the Kattegat introduced of 53% of the net profit for the year. more departures with hourly services at certain times and the ongoing launch of a number of new services for professional business travellers, which has attracted an increasing number of frequent commuters. Outlook 2007 • Mols-Linien’s continued growth and success is conditional upon the management’s and the employees’ constant focus • Provided that fuel prices remain stable, Mols-Linien A/S on developing and implementing improved services and expects to post a total profit after tonnage tax for 2007 in the rationalisations throughout the company. To ensure the future region of DKK 50-60 million and a positive cash flow from development of Mols-Linien’s service concepts and products operating activities of DKK 100-110 million.
Mols-Linien’s five ferries sail across the Kattegat just under 16,000 phy times a year. This corresponds to
oso approx. 561,000 nautical miles l i or approx. 1,038,000 kilometres, ph the equivalent of approx. 26 ess n
i times around the equator. BUS
Business philosophy and targets
The objective and vision of Mols-Linien ing know-how and a range of manage- resentatives of the employees and the is to continue to live up to the original ment services within the high-speed management concerning a programme political intentions of creating and fur- ferry segment to ferry lines around the which involves the granting of shares of ther developing a well-balanced traffic world. up to DKK 20,900 per employee in return infrastructure in Denmark. for a corresponding pay cut. Thus, the company is a significant and Shareholding policy If adopted, the programme will be important player in Danish society as it The company wishes to safeguard the offered to all employees. However, a ensures highly stable ferry connections interests of its shareholders. In general number of general criteria will be laid between eastern and western Denmark. and subsequent to the financing of any down, entailing for example that partici- Mols-Linien will continue its current new tonnage, other new investments pants must have a certain seniority. strategy of further optimising the high- and any potential company acquisitions, The programme will be implement- speed ferry concept from Sjællands Odde Mols-Linien will repay excess capital to ed in pursuance of Section 7A, Subsec- to both Aarhus and Ebeltoft. This will be the investors in the form of share buy- tion 1(2) of the Danish Tax Assessments realised providing a very high level of back schemes and/or dividends. The Act (Ligningsloven). The maximum allo- service where the future development of Board of Directors estimates that a con- cation of shares per employee will be de- positive travelling experiences is of vital siderable amount of cash should be set termined in consideration of the maxi- importance. aside for future business development. mum tax-free allocation to employees In addition, Mols-Linien will take an In the coming years, the company will stipulated by the Danish tax authorities active and involved approach to other attempt to optimise the capital struc- (Skat). In 2006 the limit was DKK 20,900. domestic ferry routes which may support ture. The repayment of the resulting pro- The shares received must be held for a the company’s primary routes. This may ceeds to the shareholders will take place period of 7 years. take the form of collaboration, alliances, in consideration of the company’s devel- If all eligible employees decide to join partnerships and direct ownership. opment plans and the necessary consoli- the programme, Mols-Linien will need It is also Mols-Linien’s ambition to dation of the equity, thereby creating a approx. 16,000 shares which will be al- strengthen its collaboration with Sund & basis for the continued expansion of the located in the form of bonus shares. At Bælt and to engage in technical collab- company. a price of 480, the total maximum value oration with a view to offering a better of the programme is DKK 7.7 million. The service to all types of travellers between Incentive scheme for value of the programme will be fully off- eastern and western Denmark. company employees set by the pay cuts which will be agreed At the same time, Mols-Linien will The Board of Directors of Mols-Linien with the employees, for which reason take a more targeted approach and in- has decided to follow a recommenda- the programme involves no additional tensively seize any opportunities for sell- tion from a work group consisting of rep- costs for Mols-Linien A/S.
Financial highlights ts 2006 2005 2004* 2003* 2002* gh i DKKM DKKM DKKM DKKM DKKM ghl i
l h Income statement cia Revenue 761.2 716.5 694.4 633.6 606.8 n a Expenses 698.8 673.7 627.7 568.6 546.6 n fi Other operating income - 21.8 - - - Operating profit (EBIT) 61.0 64.6 66.7 65.0 60.2 Net financials -9.9 -19.1 -23.4 -27.9 -32.0 Profit/loss from ordinary activities before tax 52.5 45.5 43.3 37.1 28.2 Net profit/loss, laid-up/chartered-out ferry - - - -97.4 -0.5 Profit/loss before tax 52.5 45.5 43.3 -60.3 27.7 Profit/loss for the year 53.2 41.4 43.2 -60.5 6.0
Balance sheet as at 31 December Non-current assets 503.5 516.0 736.3 809.0 879.3 Receivables and inventories 84.1 86.6 84.6 81.1 71.0 Financial assets available for sale 198.5 - - - - Cash and cash equivalents 50.2 234.5 1.0 1.2 1.6 Assets 836.3 837.1 821.9 891.3 951.9 Equity 419.9 385.8 361.2 317.9 378.4 Provisions - - 22.5 48.0 0.0 Long-term liabilities other than provisions 249.0 276.1 253.5 309.4 361.7 Short-term liabilities other than provisions 167.3 175.3 184.7 216.0 211.8 Liabilities and equity 836.3 837.1 821.9 891.3 951.9
Cash flow statement Cash flows from operating activities 104.8 110.3 122.8 97.2 83.8 Cash flows from investing activities -241.2 180.5 -36.4 -35.4 -39.8 Cash flows from financing activities -47.9 -40.2 -51.4 -51.1 -33.0 Change in cash and cash equivalents -184.3 250.6 35.0 10.7 11.0 Cash and cash equivalents, net as at 31 Dec. 50.2 234.5 -16.1 -51.1 -61.8
Other financial highlights Net working capital (NWC) -54.8 -55.3 -29.5 -30.6 -25.7 Invested capital 428.1 439.0 707.1 778.7 854.0 Investments in property, plant and equipment 41.3 57.3 36.7 37.4 42.9 Net interest-bearing debt 8.7 53.8 326.2 412.8 475.6 Average number of full-time employees 492 509 524 507 516 Average number of shares (in thousands) 2,796 2,799 2,799 2,799 2,799 Average number of shares, diluted (in thousands) 2,830 2,799 2,799 2,799 2,799
2006 2005 2004* 2003* 2002*
Share-related highlights Earnings per share (DKK) 19.0 14.8 15.4 -21.6 2.1 Earnings per share, diluted (DKK) 18.8 14.8 15.4 -21.6 2.1 Cash flow per share (DKK) 37.5 39.4 43.9 34.7 29.9 Dividend per share (DKK) 10 5 5 - - Pay-out ratio (%) 53.2 34.2 32.8 - - Book value per share (DKK) 148 136 127 112 134 Share price, year-end (DKK) 480 256 237 94 113
Operating highlights Return on equity (%) 13.2 11.1 12.8 - 1.6 EBIT margin (%) 8.2 9.0 9.6 10.3 9.9 Return on invested capital (ROIC) (%) 14.6 10.6 8.9 7.8 4.8 Solvency ratio (%) 50.2 46.0 43.9 35.7 39.8
*) Financial highlights for 2005 and 2006 have been prepared in accordance with IFRS, cf. the description in note 1. The comparative figures for 2004, 2003 and 2002 have not been restated in accordance with the changes in the accounting policies following the transition to presenting the financial statements in accord- ance with IFRS, but have been calculated in accordance with the accounting policies which have been applied so far, based on the provisions of the Danish Fi- nancial Statements Act and Danish accounting standards.
Definitions and calculations Net working capital (NWC) is defined as inventories, receivables The financial highlights are presented in accordance with the and other current operating assets less trade payables and oth- “Recommendations & Ratios 2005” prepared by the Danish Soci- er liabilities and current operating liabilities. ety of Financial Analysts (Den Danske Finansanalytikerforening). Invested capital is defined as net working capital plus the book value of non-current property, plant and equipment and less Operating profit/loss x100 other provisions and non-current operating liabilities. Net in- Profit margin (%) Revenue terest-bearing debt is defined as interest-bearing liabilities, in- cluding taxes payable, less interest-bearing assets, including Return on invested capital (%) EBITA x 100 cash and cash equivalents, financial assets available for sale Average invested capital and taxes receivable. excluding goodwill The solvency ratio is not defined by the Danish Society of Fi- Return on equity (%) Profit/loss x100 nancial Analysts’ “Recommendations & Ratios 2005”. In this an- Average equity nual report, the solvency ratio is defined as:
Average number of shares: The average number of shares in circulation in a given period, Equity year-end x 100 Solvency ratio (%) excluding the company’s own Balance sheet total year-end shares.
Management’s review
On board the ferries, passengers can take a break and w
ie enjoy a wide selection of food and drinks. Each year, v Mols-Linien’s own catering department prepares re s ’ and serves approx. 1 million meals. The ferries offer t n a wide variety of both light and more substantial
eme meals, including interesting gourmet menus. g a n a M
Growth in revenue and profit in2006 as a result of continued streamlining and service improvements
In 2006, Mols-Linien posted total rev- For Mols-Linien, 2006 was again char- road trains and in the cargo volumes fer- enue of DKK 761.2 million against DKK acterised by competition from the Great ried by the company across the Kattegat. 716.5 million in 2005, up 6.2%. Belt Link and the politically determined In the course of the year Mols-Linien The net profit for the year totalled DKK rates for crossing the bridge, but also concentrated on maintaining and opti- 53.2 million against DKK 35.0 million in by very high prices on fuel for the com- mising a number of the initiatives and 2005, representing an increase of DKK pany’s ferries and by several periods of streamlining measures already imple- 18.2 million, thus exceeding the outlook unfavourable weather conditions. mented and planned throughout the announced in the most recent interim The negative impacts of these factors company. These measures and initiatives financial statements of a net profit for were, however, countered by the growth also had a positive effect in 2006. 2006 of DKK 40-50 million. of the Danish economy and increasing Consequently, the Mols-Linien man- The net profit for the year represents levels of economic activity across Den- agement would like again to thank all the best results in the company’s history mark. This led to growth in the number employees for their positive and com- so far. of business travellers, in the number of mitted efforts in the face of what has at
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Cash flow Cash flow from operating activities con- tributed DKK 105.8 million in 2006,
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125 115 105 95 85 75 2002 2003 2004 2005 2006 Management’s review Mols-Linien presents annual report in accordance with IFRS/IAS
This annual report has been prepared in 2009 financial year, but has decided to benefits and jubilee obligations pursu- accordance with the International Finan- start applying these standards voluntar- ant to IAS 19. cial Reporting Standards (IFRS/IAS) and ily as from the 2006 financial year. • Measurement of investments in sub- therefore also contains current assess- The Annual Report for 2006 has thus sidiaries at cost. ments of the scrap values and useful lives been presented in accordance with the of the Mols-Linien ferries. International Financial Reporting Stand- The changes have resulted in a reduc- The management has taken this step ards (IFRS) as approved by the Europe- tion in equity as at 1 January 2005 of DKK to meet demands from investors and an Union and also with Danish report- 2.818 million and an increase in the prof- also in view of international develop- ing standards applicable to the annual it for 2005 of DKK 6.393 million. ments in accounting procedures and fi- reports of reporting class D (listed) com- For further details about the chang- nancial reporting. However, the decision panies. The Annual Report also complies es and their effect on the Annual Report, has also been made so as to facilitate the with the International Financial Report- please refer to note 1 of the Annual Re- benchmarking of the company against ing Standards (IFRS) issued by IASB. port. other ferry lines with which Mols-Linien The transition to IFRS has necessitat- The transition to IFRS has not result- is compared internationally. ed a number of changes in the parent ed in any other changes to the account- Mols-Linien does not present consol- company’s accounting policies and esti- ing policies. idated financial statements as the com- mates. The most important changes are pany’s two subsidiaries are immateri- as follows: al to the overall picture, for which rea- • Recognition of residual values of son there would be no real difference property, plant and equipment pur between the financial statements of the suant to IAS 16, which has not been parent company and such consolidated the case under the former accounting financial statements. policies. The parent company is not required • Recognition of share-based remuner to comply with the International Finan- ation. cial Reporting Standards (IFRS) until the • Recognition of long-term termination
Outlook 2007
In its assessment of the outlook for 2007, will translate into DKK +/-9 million in the management of Mols-Linien is as- results. • A profit for 2007 after tonnage tax in suming that the net prices of fuel for the • Deviations in the price of oil for the the region of DKK 50-60 million. ferries will average approx. USD 600 per high-speed ferries of 10% in the second • A positive cash flow from operating ac- ton of oil for the high-speed ferries and half of the year will have an impact on tivities in the region of DKK 100-110 approx. USD 300 per ton of oil for the results of DKK +/-11 million. million. combi-ferries. • Deviations in the price of oil for the high-speed ferries of 10% in the second The following risk factors should half of the year will have an impact on also be taken into account: results of DKK +/-2 million. • Deviations in the number of motor- cars ferried or average prices of +/-5% Based on these assumptions, will translate into DKK +/-25 million in Mols-Linien expects: results. • To ferry approx. 1,000,000 motorcars • Deviations in the volume of heavy traf- and approx. 370,000 lorries on the Kat- fic ferried or average prices of5 +/- % tegat ferries.
13 Shareholder information 1 accounting standards. andDanish Financial Act Statements provisions the Danish on the ofbased far, so applied been have which accordancepolicies accountingin calculatedthe with been have but cordanceIFRS, with ac in statements financial the presenting to transition the following policies accounting the in changes the with accordance in restated been not have 2002 * 725 at as value DKK was shares company’s the of value ket of thefinancial the course year of in increase price a to corresponds This December On Exchange. Stock Copenhagen the on listed are shares A/S’s Mols-Linien Shareholder information 4 Share price, year-end (DKK) year-end price, Share (DKK) share per value Book (DKK) share per flow Cash (DKK) diluted share, per Earnings Earnings per share (DKK) share per Earnings DKK highlights Share-related ) Financial highlights for 2005 and 2006 have been prepared in accordance with IFRS, cf. the description in note 1. The comparative figures for 2004, 2003 and 2003 2004, for figures Thecomparative 1. note in description cf.the IFRS, with accordance in prepared been have 2006 and 2005 for highlights Financial ) s at As . 3 1 million. , 356 31 , 8 2006 31 million, whereas the marketwhereas the million, December December the share price was price share the 2006 2005 te mar the , was DKK was 87 . 480 5 %. 31 - .
DKK Steven Brooker, SEBEnskilda Phillip Danske Equities Christensen, a numberof including: analysts, crease year. onlast a representing year, financial the during Exchange Stock Copenhagen The company’s shares are followed by of total a for shares A/S Mols-Linien 1 , 907 ID code ID Limited negotiability Limited voting rights Bearer security No. of votes pershare Share classes No. of shares Nominal value pershare Share capital exchange:Stock . 1 million were traded on the on traded were million 2006 37 18 19.0 480 148 . . 5 8 ...... 2005 39 14 14 256 136 . . 695 ...... 4 8 8 ...... in %
No DKK DK No Yes One One DKK Copenhagen Exchange Stock 2 - , 833 0010207067 2004 parts ofparts theDanishinfrastructure. ture of Scandlines and thereby important fu the concerning no government Danish the by that made been yet fact as has decision the despite very positively developed shares Mols-Linien’s of most During 100 283 , 43 15 15 333 237 127 . . . , 9 4 4 * 333 shares , 000 2003 - - 34 21 21 112 94 . . . 2006 7 6 6 *
te rc of price the , 2002 29 113 134 2 2 . . . 9 1 1 * - -
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Shareholders
Mols-Linien A/S has registered the fol- Scandlines Danmark A/S, Copenhagen Ejendomsselskabet Øresundshøj A/S, lowing shareholders holding more than (as at 13.10.2006) (30%) - Rudersda A/S, Hellerup (as at 03.05.2006) (5.18%) - Clas- 5% of the company’s share capital and Birkerød (as at 7.11.2006) (15.25%) - Ejen- sen Holding A/S, Copenhagen K (as at voting rights, stating the time of registra- domsselskabet Sandgården, Hellerup (as 14.12.2006) (5.01%) tion of the information: at 11.12.2006) (9%)
The company’s purchase 487 each. The company currently holds general meeting that dividend of DKK 10 of treasury shares 40,178 treasury shares, corresponding per share be paid, corresponding to a to- In accordance with the resolution to 1.42% of the company’s share capi- tal of approx. DKK 28 million. The divid adopted by the annual general meet- tal. Up to 34,350 of these treasury shares end corresponds to a pay-out ratio of ing, Mols-Linien A/S was authorised to are expected to be used for the above- 53% of the net profit for the year. acquire treasury shares with a nominal mentioned share option programme. value of up to DKK 28,333,000, corre- Investor relations sponding to 10% of the share capital, in Dividend policy Mols-Linien A/S’s investor relations pol- the period up until 30 June 2007. It is Mols-Linien’s policy that sharehold- icy aims to ensure a high level of infor- On 7 November 2006 the company ers should receive a return on their in- mation and a continuing active and open initiated a share buy-back scheme, but vestment in the form of price increases dialogue with investors and analysts the liquidity of the share proved to be and dividend which exceeds a risk-free – and to provide information about the limited. In the period up until 12 Janu- investment in government bonds. The stock market and the company’s financial ary 2007, the company has thus acquired distribution of dividend should allow situation, operations and strategies. shares for a total of DKK 3.5 million. the necessary consolidation of equity The company aims to hold investor Against this background, the Board of as a basis for the company’s continued relations events with a high degree of Directors decided to abandon the pro- growth. openness – among other things by invit- gramme and to review the current divi- Against the background of the satis ing analysts and investors to information dend policy. factory results for the year and Mols- meetings. The shares have been bought back at Linien’s favourable capital structure, the a weighted average price of approx. DKK Board of Directors recommends to the Shareholder information Stock Exchange Notifications in2006/2007
No. Date Subject 112 09.03.2006 Financial Statements of Mols-Linien A/S 113 10.03.2006 Senior employees’ trading in Mols-Linien A/S shares 114 13.03.2006 Senior employees’ trading in Mols-Linien A/S shares 115 20.04.2006 Information on the proceedings at the annual general meeting 116 20.04.2006 Update on developments during Q1 2006 117 20.04.2006 Information on the proceedings at the annual general meeting 118 23.08.2006 Press release from the Danish Ministry of Transport and Energy 119 25.08.2006 Interim financial statements2006 120 07.11.2006 Update on developments in Q1-Q3 2006 121 07.11.2006 Financial calendar 2007 122 12.01.2007 Status and plans for Mols-Linien’s share buy-back scheme 123 12.01.2007 General incentive programme for Mols-Linien employees
Financial calendar for 2007
Date Subject 08.03.2007 Financial statements 2006 03.04.2007 Submission of the printed annual report for 2006 to the Copenhagen Stock Exchange 19.04.2007 General meeting at Hotel Ebeltoft Strand, Ebeltoft, at 2.15 pm 19.04.2007 Update on developments in Q1 2007 19.04.2007 Information on the proceedings at the annual general meeting 23.08.2007 Publication of interim financial statements2007 22.11.2007 Update on developments in Q1-Q3 2007. Financial calendar 2008
Annual general meeting The annual general meeting of Mols-Linien A/S will be held on 19 April 2007 at 2.15 pm at Hotel Ebeltoft Strand. MXcl\Z`iZc\ l ues a 8Y`c`kpXe[n`cc K\Xdjg`i`k kfZ_Xe^\ ng v K_\Zfi\ Gif]`kXY`c`kp stro Xe[Zi\Xk`fe n
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Mols-Linien builds on strong values
The development of Mols-Linien to date ensuring the continued operation, devel- targets set can only be met through the has always been borne by strong values opment and growth of the ferry line. At focused and efficient efforts of all em- in respect of the company, its manage- the same time, Mols-Linien aims to con- ployees in the organisation, across pro- ment, employees, customers and society tinue to be a healthy and viable work- fessional boundaries. at large. In some cases based on formal- place for its employees. ised sets of values – in other cases in a Ability and will to change more informal form. “Service and customer satisfaction” Mols-Linien is always ready to change As part of the continued development Mols-Linien aims to safeguard its finan- and adapt to new situations – driven by of the company, the Mols-Linien man- cial position by offering the best possi- its own innovation, by changing custom- agement and employees work close- ble and safest transport solutions to its er requirements, by political decisions ly together to translate the Mols-Linien customers, based on modern ferries con- and by changes in society. The market is values into words, action and specific tar- necting eastern and western Denmark, undergoing constant development and gets within all relevant areas of activity. and by always providing a high level of change. Mols-Linien wants to play an This has so far resulted in a framework quality, the best service in the market active role in this development. Conse- description of the Mols-Linien values in and positive travel experiences. quently, old habits, customs, traditions the form of a so-called value circle, which This in turn is based on Mols-Linien’s and views must not stand in the way of describes the company’s values and tar- unique service concept which is fun- the company’s ability and will to imple- gets for the creation of value and prof- damental to the company’s activities at ment changes. itability, while also describing the com- all levels of the organisation and which pany’s values and targets in relation to aims to attract and provide all types of Shared responsibility and loyalty internal and external processes and re- customers with positive travel experi- Mols-Linien’s employees must always be lations. ences, at the same time creating direct ready and willing to assume their per- The value circle consists of two main and indirect value for Mols-Linien and its sonal share of responsibility for the com- elements – i.e. focus on “profitability and customers. pany’s activities, for the future develop- creation of value” and focus on “service The following factors, among others, ment of the service concept and for the and customer satisfaction”. are central to safeguarding these main financial results of day-to-day opera- elements of the value circle: tions. All employees must demonstrate “Profitability and creation of value” ownership and take independent ini- Mols-Linien is working in a targeted way Teamwork tiatives to optimise and streamline the to create financial results and values The management and employees of company and to strengthen cross-func- which live up to shareholder require- Mols-Linien rank teamwork and team tional collaboration in connection with ments concerning profitability, thereby spirit very highly, acknowledging that the all types of activities and challenges.
18 This requires personal integrity, loyal individual by always looking for new op- their jobs conscientiously and with the ty and respect for the ferry line and its portunities – rather than obstacles, and attention to detail required to achieve owners, management and other col- by supporting cross-functional collabor the defined performance targets, but also leagues in the organisation who are all ation to ensure the continued dynam- with a view to ensuring compliance with dependent on the positive teamwork of ic development of the company – both the quality and overall safety standards committed people. nationally and internationally. which apply throughout the organisa- tion. This is of decisive importance when Innovation Attention to detail and it comes to ensuring that the organisa- Mols-Linien’s management and employ- conscientiousness tion can act as a team in dynamic proc- ees must be creative and able to identi- It is the aim of the entire manage- esses and also in critical situations. fy new and innovative solutions which ment team and all employees in the create value for the company and for the Mols-Linien organisation to carry out
19 resources n Huma
Company based on people, service, safety and quality
As a specialist transport and service pro- line very much depends on the contin- Happy and satisfied customers will vider, Mols-Linien is under constant pres- ued innovative development and im- ensure the long-term business founda- sure to develop new concepts and serv- provement of its service concepts. Such tion for Mols-Linien, while at the same ices to both attract and retain customers initiatives also involve the company’s time being the best ambassadors when and concepts and services which are com- employees and depend on their educa- it comes to spreading the message that petitive in comparison with alternative tion and training, professionalism, moti- the ferry line is actually in a class of its transport solutions between Jutland and vation – and unique service-mindedness own with its quality, service and safety Zealand and other service offers. and customer focus. standards. It is not and will not be possible for Mols-Linien to take part in the political- Service focusing on quality Stable and loyal organisation ly determined price competition with the When the Mols-Linien management and In 2006, Mols-Linien had an average of Great Belt Link for transport and travel employees talk about “service”, “service 492 employees who had been employed solutions between Jutland and Zealand. concepts”, “quality”, “positive experien with the company for an average of ap- The Mols-Linien service concept is ces” etc., what is meant is the sum of all prox. 11 years. The stable workforce is at therefore the strongest card in the com- the ideas, initiatives, special offers and the heart of the organisation – and helps petition for travellers between eastern specific measures which the ferry line is to ensure the presence of the necessary and western Denmark. The continued able to develop and offer to attract and experience and know-how within all development and success of the ferry retain a growing customer base. areas of activity.
20 In the course of the year, the perma- booking departments, to assist during up to Mols-Linien’s high safety and ser nent members of staff were supplement- holiday periods, on bank holidays etc. vice standards. ed by a number of temporary workers, All temporary workers attend a carefully primarily in the catering and ticket sales/ planned course to ensure that they live
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22 Mols-Linien has established its own service school, the Mols-Linien Service Academy. The academy offers training programmes for the ferry line’s staff within the fields of service, teamwork etc. In 2006, approx. 200 employees from a number of different staff groups attended the academy’s courses.
Mols-Linien Service Academy
As a natural part of the company’s inno- inspiration, dynamics and specific service Mols-Linien will be able to increase ca- vative measures, Mols-Linien has estab- skills which the course participants have pacity and resources at the Mols-Linien lished its own Service Academy which brought back to their job functions. Service Academy and perhaps even de- was in operation throughout 2006. The results of the Mols-Linien Serv- velop it as an independent business In the course of the first year, more ice Academy’s first year have had certain activity. than 200 employees have already at- repercussions as several competing ferry It is primarily the ferry line’s own em- tended the Mols-Linien Service Acad- lines in Denmark and abroad and various ployees who undertake to educate, coach emy’s newly developed courses. In line service companies within other lines of and train their own colleagues. Later on, with the aims of the Service Academy, business have enquired about the pos- external specialists may well be called in participants have represented a wide sibility of buying training places at the who can contribute other competences range of job categories, including ship’s academy. which are or are set to become neces- assistants, captains, officers, service and Initially, first priority is given to Mols- sary in a service organisation with high cleaning staff and other job functions. Linien’s own managers and employees levels of ambition and aggressive growth The Service Academy has got off to a when allocating places and resources. targets. flying start, as clearly evidenced by the However, the positive feedback from par- In spring 2007, the Mols-Linien Ser results achieved. Both customers and ticipants and from external stakeholders vice Academy will be moving into newly everybody in the Mols-Linien organisa- has already paved the way for an as- refurbished course and teaching facilities tion have from day one clearly sensed the sessment aimed at ascertaining whether at Odden Havn.
23 t Mols-Linien and the environment n me
n Mols-Linien endeavours to act as a re- This initiative is yet another exam- vidual departures, which also results in sponsible and well-run company at all ple of how Mols-Linien gives a high pri- reduced environmental impacts. iro
nv times. This also applies within the field ority to participating actively in innova- Moreover, the ferry line monitors the e of the environment, and the ferry line tive projects and processes which are in engines and other items of machinery to e h
t attaches the utmost importance to or- accordance with the political and social ensure the lowest possible oil consump-
d ganising the operation of its ferries and agendas. tion. Ongoing monitoring and optimum n a terminals to ensure that all its activities maintenance thus helps to improve the n
ie have the least possible impact on the At sea operating economy while at the same n environment and the surroundings as The Mols-Linien ferry services on the time reducing environmental impacts. Li - s possible. The concern for the environ- Kattegat represent a natural shortcut in The Danish environmental require- l o ment has always been given a very high Denmark, saving travellers between the ments governing noise and wave height M priority by the ferry line, which will also Greater Copenhagen Area and eastern/ are some of the most restrictive in the be the case in future. central and/or northern Jutland approx. world. The high-speed ferries are fitted 200 kilometres of driving – each way, in with noise reduction technology, and Tests with biofuels comparison with driving all the way, by both routes are environmentally ap- In 2006, Mols-Linien initiated a devel- car. proved and comply with all current stat- opment and trial project which involves So as to reduce the fuel consumption utory requirements, including the Danish adding a certain amount of soya oil to of the Mols-Linien ferries as much as rules on wave height. the fuel used by the high-speed ferries. If possible, the ferry line is constantly ad- The high-speed ferries sailing on the the trials go according to plan, this could justing and optimising its timetables for crossings between Odden and Aarhus/ lead to a number of environmental im- both the high-speed and combi-ferries. Ebeltoft do not sail on routes which pass provements and perhaps even a reduc- The operating economy improves, the through areas designated as important tion in costs. more passengers there are on the indi- bird areas or other preservation areas.
24 On land At Odden Færgehavn, Mols-Linien The sulphur content of fuel oil contin- Energy consumption at port facilities and has its own water purification plant with ues to fall as a result of technological ad land terminals will be reduced as much a capacity of 1,000 person equivalents. vances at the refineries. as possible. This is being achieved by The purification plant cleans waste water Mols-Linien is aware that nitrogen keeping employees informed about ex- and oily water from the ferries. oxide (NOx), which also causes acidifica- pedient behaviour and use of energy- Waste from the ferries is sorted for tion, is the primary source of emissions consuming equipment. Moreover, new recycling in accordance with a special from its ferries. A group of specialists is routines are being introduced and new waste plan. Mols-Linien’s employees therefore seeking to reduce NOx emis- technology installed, including mod- sort the waste into factions such as pa- sions through technical modifications to ernised electricity and IT installations, a per packaging, iron, batteries, spray cans, the ferry engines. wood pellet boiler at the port in Ebeltoft fluorescent lights, oil waste, oil filers and The ferry line finds that emissions of and electronic management and control food items. hydrocarbon (HC) and carbon oxide (CO) of heating and water consumption etc. from the ferries are at an acceptable level. In collaboration with the Danish Energy consumption and emissions These emissions are typically caused by Maritime Occupational Health Service, In 2006 the Mols-Linien high-speed incomplete combustion. Mols-Linien checks all cleaning agents ferries and combi-ferries used approx. In 2006, total emissions per passen- and chemicals used on land and on 2.8 million GJ on the Kattegat, which ger on Mols-Linien’s ferries are all on a board the ferries. Thus, the ferry line corresponds to consumption in 2005. par with previous years. only ever uses products included on the Sulphur oxide (SOx), which gives rise positive list, constantly working to re- to increased acidification of, for exam- place the products used with products ple, waterways and lakes, largely de- which are more gentle and more en- pends on the sulphur content of the fuel. vironmentally sound. This process in- The sulphur content of the fuel used by volves both employees and members of Mols-Linien’s ferries is very low com- the safety committees. pared with that used by other vessels.
25 n IT IT n o based ts n eme v ro p im ice v ser w w Ne 26 Passengers can now book car tickets via the Internet and print their own tickets at the same time. This option is becoming increasingly popular. New service improvements based on IT Mols-Linien continues to give a high pri- • Order and pay for your ticket online and ority to the development and use of IT use your cash or credit card as an elec- within all areas which may help to op- tronic ticket timise internal business procedures and • Wireless Internet via Hotspot for all processes – and result in service im- customers on board the ferries and in provements for customers. Mols-Linien BlueClass Business Lounges on land is therefore always ready to invest in IT • Electronic travel updates which may pave the way for strength- • Current travel information via email, ening the company’s technological and text message and WAP telephones via competitive edge in the market. www.mols-linien.dk/WAP New initiatives worth mentioning • Constant news and special offer up- include: dates at www.mols-linien.dk • Self-service and fast check-in for Busi- ness BlueClass travellers • Order and pay for your ticket online 27 n IT IT n o based ts n eme v ro p im ice v ser w w Ne 28 29 2006 n i Mols-Linien’s ferries in 2006 ferries Combi-ferries Maren and Mette Mols s In 2006, the depreciation and impairment of the two combi- The company estimates that, with ongoing refurbishment of n’ ie ferries amounted to approx. DKK 14.9 million, the carrying the catering facilities and passenger areas as well as technical n Li amount as at 31 December 2006 being approx. DKK 157.6 mil- maintenance at the present high level, the combi-ferries will - s lion. The ferries will be fully depreciated in 2021. have a technical lifespan of another 20-25 years. l o In 2006, approx. DKK 8.4 million was paid off on the Ship M Credit Fund loans, the outstanding debt as at 31 December 2006 being approx. DKK 75,2 million. The loan in the combi- ferries will be fully repaid in 2016. High-speed ferries Mai and Mie Mols In 2006, the depreciation and impairment of the two Seajet Mols-Linien estimates that, with ongoing refurbishment of, high-speed ferries amounted to approx. DKK 21.3 million, the for example, the catering facilities and passenger areas as well carrying amount as at 31 December 2006 being approx. DKK as technical maintenance at a very high level, the Seajet high- 148.2 million. The ferries will be fully depreciated in 2016. speed ferries will have a technical lifespan of another 10-15 In 2006, approx. DKK 8.8 million was paid off on the Ship years. Credit Fund loans, the outstanding debt as at 31 December 2006 being approx. DKK 79,3 million. The loan in the Seajet ferries will be fully repaid in 2016. High-speed ferry Max Mols In 2006, the depreciation and impairment of the Incat ferry Mols-Linien estimates that, with ongoing refurbishment of amounted to approx. DKK 9.0 million, the carrying amount as at the catering facilities and passenger areas as well as technical 31 December 2006 being approx. DKK 111.0 million. The ferry maintenance at the present high level, the Incat ferry will have will be fully depreciated in 2018. a technical lifespan of another 15-20 years. In 2006, approx. DKK 12.8 million was paid off on the Ship Credit Fund loans, the outstanding debt as at 31 December 2006 being approx. DKK 115,5 million. The loan in the Incat ferry will be fully repaid in 2016. 30 Built: ...... 1996, Yard No. 191/192 Type: ...... Passenger Ferry CSA/STB Deepsea Dead weight: ...... 3,800 tonnes Capacity: ...... 1,200 lane metres / 600 passengers Length: ...... 136 metres · Beam: 24 metres Top speed: ...... 20 knots (37 km/h) Maren and Mette Mols each have a kiosk/cafeteria with Crossing time: ...... Approx. 2 h. 30 min. TV and children’s play area. The large, comfortable fer- Engine power: ...... 15,800 HP ries are suitable for foot passengers, motorcars, cara- Main engines: ...... 2 x Man B&W 9L35MC, Alpha Diesel vans, buses, lorries and the transport of semi-trailers. – 2 x 5850 kW Shipyard: ...... Ørskov Staalskibsværft, Frederikshavn, Denmark Built: ...... 1996, Yard No. 740/741 Type: ...... 76 m Seajet 250 Catamaran Dead weight: ...... 250 tonnes Capacity: ...... 120 motorcars / 450 passengers Length: ...... 76 metres · Beam: 23 metres Top speed: ...... 45 knots (84 km/h) Mai and Mie Mols each have a restaurant, separate VIP Crossing time: ...... 45 minutes lounge, café with kiosk, reclining seats, video cinema, Engine power: ...... 33,000 HP computer games for children and an open sun deck. Main engines: ...... 2 x General Electric gas turbines The ferries are smartly and newly designed with light, Type LM 1600 – 2 x 12,400 kW airy interiors and wide, customer-friendly aisles. Shipyard: ...... DANYARD, Aalborg, Denmark Built:...... 1998, Yard No. 048 Type:...... Incat 91 m Wave Piercing Catamaran Dead weight: ...... 509 tonnes Capacity: ...... 220 motorcars / 780 passengers Length: ...... 91.3 metres · Beam: 26 metres Top speed: ...... 45 knots (84 km/h) Max Mols has a restaurant, separate VIP lounge, café Crossing time: ...... 65 minutes with kiosk, reclining seats and several outdoor decks. Engine power: ...... 38,480 HP There is a children’s playroom with video and games. Main engines: ...... 4 x Ruston 20RK270 - 4 x 7,080 kW The ferry has exciting and cosmopolitan interiors. It Shipyard: ...... Incat Tasmania Pty., Australia has two levels so there is plenty of space throughout. 31 Modest growth in number of travellers ds 2006 saw a 2-3% increased in total car Most of this growth comes from pri- sciously select a more comfortable and traffic in Denmark relative to 2005 – the vate motorcars and holidaymakers who secure mode of travelling – rather than greatest increases being on the motorway go for the reduced bridge toll rates. spending unproductive time and money tre n d traffic network and slightly lower increases on travelling by road. other main roads and highways (Source: More commuters In 2006, the ferry line realised a com- Danish Road Directorate). However, the growing numbers of com- bined growth in the number of motor- The increasing traffic volume repre- muters who elect to live further and fur- cars ferried of 0.8%, which is satisfactory sents a considerable load on the road ther away from their places of work in given the current market conditions. network with more frequent and seri- order to reduce their housing costs ac- ous congestion problems along many count for the largest share of the increase High-speed ferry routes stretches of highway, especially around in traffic load on the state-controlled Mols-Linien regularly optimises and a n R outes , customers the larger towns and cities. fixed links. adapts the overall timetables of the high- At the same time, the preliminary fig- speed ferries for services and departure ures for 2006 indicate that the political- Modest combined growth in times to meet market requirements and ly determined reductions in the rates for number of customers carried demands, both in relation to business crossing the Great Belt Link and the Øre- Despite the unfair competition for travel- travellers and private passengers. The sund Link have contributed to increasing lers between eastern and western Den- company’s two high-speed ferry routes motorcar and lorry volumes – despite the mark, Mols-Linien in 2006 succeeded have started offering more frequent de- high fuel prices for most of 2006. in attracting more customers who con- partures at peak hours and are thus in- 32 creasingly being perceived as one com- Numbers ferried by Mols-Linien bined and efficient service and transport 01.01.–31.12. 2006 2005 Change function across the Kattegat. Motorcars 992,500 984,727 +0.8% The high-speed ferries Odden-Aarhus Lorries 360,100 354,080 +1.7% and Odden-Ebeltoft transported roughly Passengers 2,631,599 2,674,341 -1.6% the same number of motorcars in 2006 as in 2005, which Mols-Linien consid- ers to be satisfactory given the politically determined rate reductions on the Great Belt Link which continue to expose the ferry line to completely unfair competi- tion. The synergies created between the two routes from Odden to Aarhus and Ebeltoft, respectively, are becoming ever more apparent, where travellers espe- cially perceive the many departures from Odden to Jutland as one combined effi- cient service. 33 Routes, customers and traffic trends vans etc. cara trailers, vans, small of drivers also increasingly and passengers motorcar of numbers growing attracts and price its Above all, the route is segment. being marketed on market price-sensitive most the in offer well-known a become has concept on the Kalundborg-Aarhus route low-price company’s the years, recent In Kalundborg-Aarhus day periods. holi peak the during and holidays bank around weekends, at travellers private with popular particularly is Ebeltoft and central Odden between route the while Jutland, and eastern in areas business the from and to – travellers business ly primari highest – carried motorcars the of number for account to continues orwesterneither eastern Denmark. in work at day long a after home get to travellersneeding business for cater to – afternoons the in especially – timetable in and 2006 routes, these on ferries speed The route between Odden and Aarhus has a totalMols-Linien of three high- more departures were added to the - - - road as well as costly fuel, transport with hauliers the to working addition In etc. the regulations hours drivers, the for rules ing rest and driving concerning area port trans the in rules changed of result the also are Developments recent continued. years in market freight the acterised sults. re and operations optimising to icantly signif contributed has which bi-ferries, com the board on crews sign-on had time isnot suchanissueforthem. crossing because route ferry competitive people this use to many choose who car by travelling the for and customers freight for times departure as optimise so to combi-ferries the for timetable units. of level record a reaching thus creased by Denmark. western The number of freight units and in eastern between market freight the serve primarily route Aarhus Kalundborg- the on combi-ferries The Freight market The positive trends which have char have which trends positive The Throughout the changed also has line ferry The saving many kilometres on the on kilometres many saving 1 . 7 % in 2006 2006 Ml-iin has Mols-Linien , relative to 360 2005 , 100 ------, us o piie n sraln oper streamline and optimise to ours als cpct uiiain n css to costs and utilisation capacity tables, recent years. in experienced has whole a as company the which developments stable and tive 2006 Stable operations compared totheGreat Link. Belt market the in foothold strong a has rally natu company the where semi-trailers, of ferrying the in growth strong ences wasting precious transport time. withoutall – healthymeal ahave or rest On board the ferries, the drivers can relax, rules. resting and driving new the with keeping good in hours working during Mols-Linien’s ferries provides a nice break reliable lines. ferry and punctual most world’s the of one as known internationally be to continues Mols-Linien and interruptions, or accidents serious by affected been not ations withinallareas of activity. endeav its continued line ferry conditions, the and market current the match In experi still Mols-Linien Moreover, Technicallyhaveoperations speaking, saw the continuation of the posi the of continuation the saw 2006 , Mols-Linien , revised Mols-Linien its time - - - - - Financial review The annual report for 2006 of relative to 2005, which is attributable, nection with the sale of port facilities in Mols-Linien A/S has been presented in among other things, to job cuts. The av- 2005 – interest receivable increased by w ie accordance with the International erage number of employees thus fell to DKK 6.2 million relative to 2005. v Financial Reporting Standards (IFRS) as 492 in 2006 against 509 in 2005. The fall re approved by the European Union and is attributable, among other things, to Tax l cia also with Danish reporting standards the transition to using sign-on crews on The company recognised tax of DKK 0.7 n a applicable to the annual reports of the Kalundborg-Aarhus route as well as million as income in 2006. 2006 saw a n i listed companies. other initiatives. positive adjustment of tax for previous F In the course of the year, the permanent years of DKK 0.8 million. Additionally, Income statement members of staff were supplemented by the company made provisions for taxes Revenue a number of temporary workers, prima- of DKK 0.1 million under the tonnage tax In 2006, the company’s revenue increased rily in the catering and ticket sales/book- scheme. From 2002 and the next nine by DKK 44.7 million to a total of DKK 761.2 ing departments, to assist during holiday years, Mols-Linien elected to enter into million, corresponding to a 6.2 per cent periods, on bank holidays etc. All tempo- the new tonnage tax scheme. Shipping increase relative to 2005. rary workers attend a carefully planned lines covered by this tonnage tax scheme Traffic revenue from the high-speed course to ensure that they live up to are taxed in accordance with the ship- ferries on the Kattegat totalled DKK 469.7 Mols-Linien’s high safety and service ping line’s total net tonnage. With its million in 2006, DKK 30.2 million more standards. present number of ferries, Mols-Linien than in 2005. In 2006, the permanent staff had an av- will see annual tax of approx. DKK 0.1 Traffic revenues on the Kalundborg- erage seniority of approx. 11 years (2005: million. Aarhus route increased by DKK 9.9 million 11). This helps ensuring the necessary to DKK 199.7 million in 2006 as a result of experience and know-how in all areas. a combination of a 1.7 per cent increase in the number of lorries and a 9.0 per cent Depreciation growth in the number of motorcars. Depreciation on property, plant and In 2006, revenue from catering activ equipment totalled DKK 52.4 million in ities was DKK 91.9 million, up DKK 4.6 2006, a fall of DKK 27.5 million relative million on 2005. to 2005, mainly due to the impairment losses on the high-speed ferry concept in Expenses connection with the reduction in rates for The company’s expenses including de- crossing the Great Belt Link in 2005 and preciation totalled DKK 698.8 million in changed estimates of the economic lives 2006, up DKK 25.2 million on the year be- of the ferries. The changed estimates re- fore. The increase in net oil prices resulted sulted in a reduction in depreciation in in an increase in oil costs of DKK 46.1 mil- 2006 of DKK 8 million. lion relative to last year. The ferry line has continued its Net financials rationalisation and cost reduction efforts Net financial expenses of DKK 9.9 in all possible areas. million are DKK 9.2 million lower than in 2005. Interest payable on ship loans etc. Employees fell by DKK 1.8 million, one contributing Staff expenses totalled DKK 209.1 factor being loan repayments. As a result million in 2006, down DKK 7.8 million of income – among other things in con- 35 Balance sheet Assets Moreover, the company’s acquisition of ping line’s financial assets available for At the end of 2006, assets totalled DKK treasury shares in 2006 of DKK 3.1 million sale and cash and cash equivalents to- w ie 836.3 million against DKK 837.1 million and the value of an oil hedge of DKK 2.8 talled DKK 248.6 million. In addition, v at the end of 2005. million have been deducted from equity. Mols-Linien has an unutilised credit line re l Thus, property, plant and equipment Other negative adjustments amount to of DKK 100 million. cia were reduced from DKK 496.9 million in net DKK 0.3 million. In 2007, Mols-Linien is due to repay n a 2005 to DKK 485.6 million in 2006. Addi- The outstanding debt on the company’s ship credit fund loans totalling DKK 30 n i tions in the year totalled DKK 29.3 million loan in Danmarks Skibskredit A/S, the resid- million. F in respect of ships, of which DKK 22.6 ual value of the borrowing costs and bond For 2007, Mols-Linien expects an over- million related to the capitalisation of losses in connection with the arrangement all positive cash flow from operating activi regular maintenance during docking and of the loan and other long-term liabilities ties of between DKK 100-110 million. turbine overhauls on the Seajet ferries. other than provisions totalled DKK 249.0 Against the background of the above This item will be depreciated in the million, down DKK 27.1 million on last and considering the existing credit facil period up to the next maintenance year. As at 31 December 2006, DKK 229.5 ities, the management of the company is docking or turbine overhaul. million were recognised as long-term liabil of the opinion that the company has ar- Investments in terminals and port in- ities other than provisions, while the por- ranged the necessary liquidity for it to be stallations and in tools and equipment, tion falling due in the year 2007, amount- able to ensure and conduct its operations fixtures and fittings amounted to DKK 1.1 ing to DKK 27.2 million, was recognised as as planned as well as the development of million and DKK 11.0 million, respectively. short-term liabilities other than provisions. the company. Property, plant and equipment were The loan in Danmarks Skibskredit A/S will reduced by depreciation for the period be repaid in instalments of DKK 30 million of DKK 52.5 million, of which DKK 22.1 a year up until 2016. million relate to depreciation made in re- Trade payables of DKK 46.7 million were spect of regular maintenance. down DKK 2.4 million on 2005. The liabil- Fixed asset investments amount- ity in respect of the sale of Business Blue- ed to DKK 18.0 million and included in- Class 10-trip commuter cards increased to vestments in two subsidiaries and receiv DKK 47.1 million from DKK 40.4 million in ables from one subsidiary. 2005 due to the growth in sales. Current assets totalled DKK 332.7 mil- lion, consisting of inventories of DKK 39.4 Cash flow and liquidity million, receivables of DKK 44.7 million Mols-Linien’s primary activities contrib- and financial assets available for sale and uted positively to the cash flow by DKK cash of DKK 248.6 million. 104.8 million in 2006. Inventories were up DKK 5.7 million In 2006, Mols-Linien placed DKK 198.2 relative to 2005, which is attributable to million of the company’s cash and cash the fact that the ferry line’s oil inventories equivalents in short-term bonds, recog- and spare part inventories were more nised under investments in the cash flow highly valued at the time of recognition. statement. Other investments are de- Receivables in respect of freight and pas- scribed in the section on assets. senger debtors were on a par with 2005. Repayment of the loan in Danmarks The financial assets available for sale are Skibskredit A/S as well as other long- bonds with short terms to maturity. term liabilities other than provisions amounted to DKK 30.8 million in 2006, Liabilities and equity while a dividend for 2005 of DKK 14.0 At the end of 2006, the company’s equity million was distributed. totalled DKK 419.9 million, thus increased Total cash flow was negative at DKK by the profit for the year of DKK53 .2 mil- 184.3 million as a result of the acquisition lion and reduced by dividend to share- of bonds totalling DKK 198.2 million. holders for 2005 of DKK 14.2 million. At the end of the year, the ship- 36 Income statement t 2006 2005 n DKK ‘000 DKK ‘000 Revenue 761,244 716,530 stateme Expenses: Ship operating expenses 304,381 263,940 come In Other operating expenses 66,770 50,066 Cost of sales, catering etc. 29,677 28,353 Other external expenses 36,473 34,494 Staff expenses 209,137 216,898 Depreciation, property, plant and equipment 52,395 79,930 Expenses 698,833 673,681 Profit/loss before other operating income, net financials and tax 62,411 42,849 Other operating income, net 0 21,755 Operating profit (EBIT) 62,411 64,604 Financial income 6,969 744 Financial expenses -16,844 -19,838 Profit/loss before tax 52,536 45,510 Tax on profit for the year (tonnage tax) 675 -4,100 Net profit/loss for the year 53,211 41,410 Earnings per share (EPS) 19,0 14,8 Earnings per share, diluted 18,8 14,8 Proposed appropriation of profit Dividend for the financial year 28,334 14,167 Retained earnings 24,877 27,243 53,211 41,410 37 Balance sheet as at 31 December 3 at as sheet Balance Assets assets Current equivalents cash and Cash sale for available assets Financial Receivables etc. receivables Other subsidiaries from Receivables receivables Trade Inventories assets Non-current assets Financial subsidiaries from Receivables subsidiaries in Investments fittings and fixtures equipment, and Tools installations port and Terminals Ships Assets P 8 roperty, plant and equipment and plant roperty, 31 December DKK ‘ DKK 836,250 416 485 198 503,532 332,718 17 18 50 36 17 50 44 39 8 2006 , , , , , , , , , , , , 337 634 002 700 859 318 416 971 561 000 173 449 734 362 - DKK ‘ DKK 837,091 432 496 234 516,036 321,055 18 10 53 11 37 19 52 33 4 2005 , , , , , , , , , , , , 500 634 732 341 829 292 053 134 902 000 472 970 625 613 - Balance sheet as at 31 December 2006 2005 DKK ‘000 DKK ‘000 Liabilities and equity Share capital 283,333 283,333 Retained earnings 110,189 88,251 Reserves -1,921 - Dividend for the financial year 28,334 14,167 Equity 419,935 385,751 Ship Credit Fund loans 229,504 255,740 Liabilities relating to finance leases 16,812 17,673 Provisions for termination benefits and jubilee obligations 2,660 2,639 Non-current liabilities 248,976 276,052 Ship Credit Fund loans 27,174 28,028 Liabilities relating to finance leases 861 827 Provisions for termination benefits and jubilee obligations 117 138 Accrual of commuter cards 47,097 40,416 Trade payables 46,731 49,171 Income tax 0 3,900 Other payables 45,359 52,808 Current liabilities 167,339 175,288 Liabilities 416,315 451,340 Liabilities and equity 836,250 837,091 39 BalanceStatement pr. of31 changes. december in equity 2006 for 2006 2006 for y y 2006 2005 uit q e Note TDKK TDKK n n Share Retained Proposed Total i capital Reserves earnings dividend equity es DKK ‘000 DKK ‘000 DKK ‘000 DKK ‘000 DKK ‘000 ng Skibe 416.859 432.829 a h c Terminaler og havneanlæg 50.700 53.341 of DriftsmidlerEquity as at 1og January inventar 2005, cf. Annual Report 2005 283,333 - 63,655 18.14002,167 10361.732,155 t n MaterielleEffect of changes aktiver to accounting policies, cf. note 1 - - -2,81814 485.561 - 496-.9022,818 Adjusted equity as at 1 January 2005 283,333 - 60,837 14,167 358,337 tateme S Kapitalandele i dattervirksomheder 15 634 634 TilgodehavenderProfit/loss for the hosyear dattervirksomheder - - 20,850 17.14337,167 18.35500,017 FinansielleEffect of changes aktiver to accounting policies, cf. note 1 - - 6,393 17.971 19.1346,393 Total income - - 27,243 14,167 41,410 Langfristede aktiver 503.532 516.036 Dividend paid, cf. note 13 - - - -14,167 -14,167 VDividendarebeholdninger on treasury shares - - 17116 39.362 - 33.613171 Changes in equity in 2005 - - 27,414 - 27,414 Tilgodehavender fra salg 17 36.416 37.053 TilgodehavenderEquity as at 31 December hos dattervirksomheder 2005 283,333 - 88,251 14,-167 3854.625,751 Andre tilgodehavender mv. 18 8.318 11.292 TilgodehavenderAdjustment to fair value of financial 44.734 52.970 instruments - -2,831 - - -2,831 FinansielleAdjustment aktiver to fair disponible value of financial for salg assets 19 198.449 - available for sale - 210 - - 210 LNikvideet gains/losses beholdninger recognised 20 50.173 234.472 directly in equity - -2,621 - - -2,621 Kortfristede aktiver 332.718 321.055 Net profit/loss for the year - 24,877 28,334 53,211 Total income - -2,621 24,877 28,334 50,590 Aktiver 836.250 837.091 Dividend paid, cf. note 13 - - - -14,167 -14,167 Dividend on treasury shares - - 171 - 171 Purchase of treasury shares, cf. note 21 - - -3,110 - -3,110 Recognition of share-based remuneration, equity scheme - 700 - - 700 Changes in equity in 2006 - -1,921 21,938 14,167 34,184 Equity as at 31 December 2006 283,333 -1,921 110,189 28,334 419,935 40 Cash flow statement flow Cash Purchase of treasury shares treasury of Purchase debt long-term of Repayment shareholders to paid Dividend activities investing from flows Cash subsidiaries from receivables long-term in Change equipment and plant property, of sale concerning Tax equipment and plant property, of Sale fittings and fixtures equipment, and tools in Investments installations port and terminals in Investments ships in Investments ships on inspections periodic in Investments sale for available assets financial of Purchase activities operating from flows Cash tax) (tonnage paid taxes Income etc. paid Interest etc. received Interest capital working in Change statement income in recognised remuneration Share-based Depreciation ferry tax laid-up/chartered-out and Payments, financials net income, operating other before Profit/loss Cash and cash equivalents as at at as equivalents cash and Cash year the for equivalents cash and cash in Change at as equivalent cash and Cash equivalents cash and cash in Change activities financing from flows Cash 1 January 31 December - - - - DKK ‘ DKK 198 - - - - - 104 184 241 184 234 - 50,173 13 52 62 30 13 10 22 - - - - - 47 6 3 3 1 3 1 6 2006 - , , , , , , , , , , , , , , , , , , , , , 242 161 934 969 574 700 395 411 110 806 996 163 062 256 976 055 631 646 806 000 299 472 299 912 193 - DKK ‘ DKK 234,472 237 ------110 250 180 250 - - 20 30 79 22 42 26 13 10 25 16 - 40 16 4 2005 , , , , , , , , , , , , , , , , , , 848 748 047 930 466 849 235 996 830 376 930 191 767 260 000 595 123 595 231 566 0 0 - - - - 4 1 Cash flow statement 42 Always a ferry for you ... We sail all the time!