Annual Report 2006

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Annual Report 2006 Annual Report 2006 Your shortcut in Denmark 84 Hirtshals Frederikshavn Hjørring We sail directly to and from the Jutland motorway system! Thisted Aalborg Odden-Ebeltoft approx. 45 min. Odden-Aarhus approx. 65 min. Hobro Kalundborg-Aarhus approx. 2 h. 40 min. Motorway Skive Randers Viborg Holstebro Silkeborg Herning Ebeltoft Skanderborg Odden Helsingør Horsens København Kalundborg Roskilde 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
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