TEMA FLYTOGETS ÅRSRAPPORT 2014 — ASKER — — LYSAKER — SKØYEN — NATIONALTHEATRET — — LILLESTRØM — OSLO LUFTHAVN — FLYTOGETS ÅRSRAPPORT 2014 – report of the board of directors current Ministry of Trade, Industry and Fis- her turnover among train drivers than would – heries. The objective of the state ownership of otherwise be expected. TEKST REDAKSJONEN Flytoget is to achieve profitable train operati- In 2014, the Norwegian Ministry of Trans- FOTO FREDRIK MYHRE OG GLENN RØKEBERG ons that contribute towards maximising public port and Communications invited a variety transport's share of journeys made to and from of interested parties to present proposals for Oslo Airport. This is economically beneficial the future organisation of the rail network in for society, and also provides climate chan- . As part of this process, Flytoget has ge-related and other environmental benefits. prepared a proposal for a model which will BEST The company is administered on a commercial provide a modern, innovative and effective basis, without public sector procurement. organisation of the railway sector. Elements of the model address ownership, input factors, Status of the market and competition the size of tender packages, and measures to In 2014 Flytoget recorded passenger growth stimulate competition which will result in RESULTS of 4.2 per cent. The total number of airline a Norwegian rail network providing better passengers passing through Oslo Airport, not quality services in return for public transport including transit and transfer, increased by 1.8 sector funding. per cent. Flytoget's market share of transport In 2000, when the Norwegian Parliament service provision to Oslo Airport thus increa- reviewed Flytoget's opening balance sheet, the EVER sed to 33.2 per cent in 2014, which represents company was granted a 30-year entitlement in an increase of 0.8 per cent compared to 2013. the form of a track priority arrangement along Customer satisfaction ratings achieved a the route between Etterstad and Gardermoen. record high of 97 per cent on average in 2014. On the initiative of the Ministry of Transport Following a turnover of NOK 944 The most important reasons for excellent le- and Communications, Flytoget has negotiated vels of customer satisfaction are that Flytoget a new traffic agreement replacing the outdated million and a pre-tax profit of NOK continues to deliver high levels of departure track priority arrangement with a preferential frequency, punctuality and regularity, as well as entitlement to operate transport services on 253 million in 2014, Flytoget has excellent customer service. the route between Asker and Gardermoen. The agreement is in force for 15 years from 1 delivered its best result ever. Since The regulatory framework February 2013 until 31 January 2028. The Norwegian National Rail Administration its launch in 1998, the company has (Jernbaneverket) has provided Flytoget with Strategy and objectives the opportunity to expand its train operati- The company's safety-related objectives pro- paid out an accumulated dividend, ons from Oslo Airport to Lysaker by one train vide clear guidelines in terms of prioritisation. departure per hour. Our plan is to phase in In 2014, three strategic areas of focus were including provision for 2014, of NOK this expansion when the train turning facility identified above and beyond the prioritisation at Høvik is completed, some time in 2015. This of safety, punctuality and service: 1,056 million to its owners. expansion will enable us to provide our custo- • to optimise Flytoget's business operations mers with more departures from high-pressure concept areas in and around the stations at Lysaker, • to increase customer experience Business activities, objectives and strategy Sandvika, Skøyen and Nationaltheatret. • to increase the public transport market Flytoget operates public transport services The Norwegian government's ownership share to and from Oslo Airport on the route from Drammen to Oslo Airport, arrangements report published in 2014 contai- and has its head office in Oslo city centre. The ned provisions linked to the future ownership Specific targets and action plans were defined company transports approximately seven milli- of the company. The government believes that for each of these customer and market-orien- on passengers each year. This represents about there are no special reasons why the Norwegi- ted areas. For the most part, optimisation of ten per cent of all train passengers in Norway, an state should remain the long-term owner of the business operations concept has consisted and about 20 per cent of all those in the Oslo the company, and has signalled that it is willing of a review of current service delivery with the region. to consider arrangements that entail a reducti- aim of identifying potential for improvements on in the state's current ownership share. This which can lead to a further consolidation of Ownership structure has generated a public debate concerning the customer experience and the Flytoget brand. A Flytoget was previously owned, since 2004, by ownership of the company. Many employees at key component of this process has been a ma- the former Norwegian Ministry of Trade and Flytoget have experienced this news as stress- jor investment in digitization of the company's Industry, and subsequently, since 2013, by the ful, and the situation has contributed to a hig- interface with the general public. This process

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will continue during 2015. Key subsidiary tar- million). The difference when compared with sustainability have been identified: injury and near misses. gets in 2014 were a punctuality rating of 97 per the operating profit is due principally to wri- Audits are conducted on a regular basis cent and a regularity rating of 99.5 per cent. te-downs amounting to NOK 105 million, tax Commercial opportunities are linked to the of various aspects of the company's internal The figures achieved were 97.3 and 99.4 per expenditures of NOK 67 million, and changes following areas business activities, and of key external busi- cent, respectively. in working capital. Cash flow from investment • The driving forces behind public transport ness partners. These activities form part of an activities was negative at NOK 42 million, as • Motivated personnel annual audit programme, and the results of Passenger numbers continue to increase such indeed were cash flow figures from financing • An environmentally sound rail network the audits are reported to the Board. In 2014, that in the long-term these may generate chal- activities (NOK 399.6 million). This was due to Flytoget carried out audits of two companies – lenges in relation to capacity. In 2014, with this the dividend payments made in 2014. Flytoget's Commercial risk is linked to the areas Securitas, which supplies security services, and and passenger growth projections made for liquidity has been sound throughout the year. • Safe travel CL Glas, which supplies train windshields. An Oslo Airport in mind, the Board decided to ini- At the end of 2014, the company had an • Conduct in business and responsible internal audit was also carried out. tiate the procurement of eight new trains. unused overdraft facility of NOK 25 million. procurement The Norwegian Railway Authority (Statens Flytoget's contribution towards increas- jernbanetilsyn) carried out an audit of Flyto- ing the proportion of journeys made to Oslo Allocation of annual profit In 2014, with the aim of achieving long-term get's safety management system, focusing on Airport by public transport can be seen in the The after-tax profit for 2014 was NOK 184 value creation, Flytoget has been working to aspects such as emergency prepare