Annual Report 2017 About Corporate Social Shareholder Annual Report and Strategy Fjord1 Asa Responsibility Information Financial Statements
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ANNUAL REPORT 2017 ABOUT CORPORATE SOCIAL SHAREHOLDER ANNUAL REPORT AND STRATEGY FJORD1 ASA RESPONSIBILITY INFORMATION FINANCIAL STATEMENTS TABLE OF CONTENTS About Fjord1 ASA Strategy Corporate social responsibility This is Fjord1 Vision Safety Key figures Goals and management parameters The environment A values-based company Main ambitions Technology, innovation and development Organisation Values Personnel and organisation Operating segments Highly skilled employees Ethics and anti-corruption Important events in 2017 High ethical standard Support to local communities Targets and results Co-ownership Focus in the period up to 2020 Shareholder information Annual report and The road towards stock exchange listing financial statements Group management Board of directors' report 2017 The Board of Directors Consolidated financial statements (IFRS) Corporate governance Parent company financial statements (NGAAP) Board of Directors’ report Auditor's report 2 ABOUT CORPORATE SOCIAL SHAREHOLDER ANNUAL REPORT AND STRATEGY FJORD1 ASA RESPONSIBILITY INFORMATION FINANCIAL STATEMENTS THE EMPLOYEES – FJORD1’S MOST IMPORTANT RESOURCE SOLID ECONOMIC Fjord1 aims to be the most reliable and attractive RESULTS supplier of environmentally friendly ferry and passenger-boat transport for our customers, Fjord1 reported strong financial results for clients and collaboration partners. 2017. Such a positive result is of particular With their friendly and professional service, importance for Fjord1 with a view to the Fjord1's employees will make travel on the fjords current changes on the market. Fjord1 a safe, comfortable and trouble-free experience. is in the middle of the “green shift” and The positive development of the company is plans to renew all of its vessel over the strongly reliant on the efforts of each employee, coming years, introducing the leading and and it is the employees who have developed “greenest” technology on the ferry market. Fjord1 into a strong brand. 3 ABOUT CORPORATE SOCIAL SHAREHOLDER ANNUAL REPORT AND STRATEGY FJORD1 ASA RESPONSIBILITY INFORMATION FINANCIAL STATEMENTS ABOUT FJORD1 ASA THIS IS FJORD1 Fjord1’s core business is ferry transport, and the company is the leading ferry operator in Norway. The company is also involved in passenger-boat services, catering and fjord-based tourism. The 21 million passengers who use Fjord1’s services are fundamental to our business. With their friendly and professional service, Fjord1's employees will make travel on the fjords a safe, comfortable and trouble-free experience. Fjord1 is an innovative company with major ambitions. The “green shift” is set to dominate the ferry industry in the near future, and Fjord1 aims to play a leading role in this development. The company aims to be the most environmentally friendly and reliable transport operator, and works continuously on developing world- class newbuilds. Since May 2017, the company has been listed on Merkur Market but on 15 August 2017 took the major step of being listed on Oslo Stock Exchange's main list. With its head office in Florø, Fjord1 is the largest company The employees are the company’s most in Sogn og Fjordane important resource, and the company's county listed on value is closely linked to the motivation the Oslo Stock and efforts of the individual employee. Exchange. OVERVIEW OF CONNECTIONS AND PCE MOLDE - branch office PCE 2017 Number of Marketshare routes measured in PCE Fjord1 17 357 725 29 49 % FLORØ - head office Torghatten 7 224 651 34 22 % Norled 9 409 556 31 27 % Boreal 574 605 13 2 % Other 296 276 4 1 % BERGEN - branch office The current Norwegian ferry market and Fjord1's market mainly comprise four companies. With a marketshare of 49 %, Fjord1 is the leading company in the industry. 4 ABOUT CORPORATE SOCIAL SHAREHOLDER ANNUAL REPORT AND STRATEGY FJORD1 ASA RESPONSIBILITY INFORMATION FINANCIAL STATEMENTS Fjord1 is currently taking part in a major boost to the With solid experience from ferry operations, strong ferry industry, and having more room to manoeuvre market know-how and significant fleet 11 år, the on the capital market is one of the benefits inherent company aims to demonstrate that they are a sound in a stock exchange listing. investment for owners. In practically all the recent tender competitions for ferry operations, the requirements for environmental Fjord1 reported 1,056 full-time equivalents in 2017. protection have been made more stringent and there The company’s head office/registered office is are increasing demands for low-and zero-emission located in Florø, with operating departments in Molde technology. With its hard work on the construction and Bergen. The total number of full-time equivalents of new vessels, Fjord1 has therefore secured a for the group is 1,204. leading position in the “green shift” and electrification of Norway’s fjord crossings. As a result, the company currently has a major plan for investments. KEY FIGURES Number Number of people Number of vehicles Employees: of vessels : transported by boat transported by ferry: and ferry: 1 204 67 21.1 MILLION 10.4 MILLION Revenue: Total Profit assets: Equity: before tax: NOK BILLION NOK BILLION NOK BILLION NOK MILLION 2.8 5.3 2.0 714 EBITDA: Investments: NOK 985 MILLION NOK 611 MILLION 5 ABOUT CORPORATE SOCIAL SHAREHOLDER ANNUAL REPORT AND STRATEGY FJORD1 ASA RESPONSIBILITY INFORMATION FINANCIAL STATEMENTS VESSEL LIST Vessel name Year of construction PCE Sogn 1982 110 Mastrafjord 2007 212 Driva 1963 29 Sognefjord 1984 64 Raunefjord 2007 212 Ørsta 1964 25 Dalsfjord 1986 28 Stavangerfjord 2006 212 Goma 1968 29 Sulafjord 1986 106 Årdal 2008 108 Nårasund 1968 11 Selje 1986 58 Davik 2009 45 Bolsøy 1971 38 Rauma 1988 73 Vågsøy 2008 42 Tingvoll 1972 35 Romsdal 1988 87 Moldefjord 2009 128 Fanaraaken 1973 29 Gulen 1989 83 Fannefjord 2010 128 Veøy 1974 50 Tresfjord 1991 124 Korsfjord 2010 128 Sykkylvsfjord 1975 36 Svanøy 1992 89 Lifjord 2010 110 Kvernes 1976 35 Ivar Aasen 1997 76 Norangsfjord 2010 120 Aurland 1977 35 Lærdal 1997 77 Romsdalsfjord 2010 128 Solnør 1977 36 Glutra 2000 120 Boknafjord 2011 242 Aukra 1978 36 Nordfjord 2001 54 Hjørundfjord 2011 122 Eid 1978 35 Eira 2002 100 Storfjord 2011 122 Nordmøre 1978 52 Volda 2002 100 Edøyfjord 2012 50 Sunnfjord 1978 46 Julsund 2004 99 Hornelen 2016 60 Bjørnsund 1979 61 Dryna 2005 35 Losna 2016 60 Geiranger 1979 36 Harøy 2005 35 Gloppefjord 2017 120 Stordal 1979 51 Lote 2006 120 Eidsfjord 2017 120 Stryn 1979 81 Bergensfjord 2006 212 Solskjel 1981 35 Fanafjord 2007 212 Passenger-boats Year of construction Passengers TBN 8 Q4 2018 120 Skagastøl 1970 384 TBN 9 Q 2019 120 Fjordglytt 2000 81 TBN 10 Q3 2019 120 Sylvarnes 2000 70 TBN 11 Q3 2019 120 Tansøy 2006 96 TBN 12 Q3 2019 130 TBN 13 Q3 2019 83 Vessels under construction Planned delivery PCE TBN 14 Q3 2019 83 TBN 1 Q1 2018 130 TBN 15 Q4 2019 83 TBN 2 Q2 2018 45 Vessel list per 31.12.2017 TBN 3 Q4 2018 50 TBN 4 Q4 2018 50 TBN 5 Q2 2018 120 TBN 6 Q4 2018 120 TBN 7 Q4 2018 120 6 ABOUT CORPORATE SOCIAL SHAREHOLDER ANNUAL REPORT AND STRATEGY FJORD1 ASA RESPONSIBILITY INFORMATION FINANCIAL STATEMENTS FROM THE CEO Our employees are our most important resource for success. The company culture is a major focus point, and we want our employees to look forward to coming to work every day. 7 ABOUT CORPORATE SOCIAL SHAREHOLDER ANNUAL REPORT AND STRATEGY FJORD1 ASA RESPONSIBILITY INFORMATION FINANCIAL STATEMENTS Every day, work is required for exciting tenders and newbuilds that require an increasingly high level of expertise and technology. We need good results to support such activities, and it is therefore extremely pleasing to see that our financial prognoses are correct. 2017 has been a very eventful year for Fjord1, 591 days without undesired incidents – a historic and the company is recognised as a strong, milestone in the Norwegian ferry industry! It is economic and sound business in the maritime therefore safe to say that we have established a industry. Fjord1 has developed into a forward- good safety culture in Fjord1, although we remain looking and leading company, achieving good humble and extremely vigilant where safety is results every day of the year. 2017 has been concerned. Technical and human errors occur a year of very high activity in all parts of the from time to time, but we always strive to be one company, including work on some 20 new vessels step ahead. Our human resources and safety are to be included in future tenders for crossings always the top priority for Fjord1. along the west coast of Norway. Our employees are our most important resource Fjord1 became a listed company in 2017. The for success. The company culture is a major transition from ownership by the county council focus point, and we want our employees to to part private ownership was a quantum leap look forward to coming to work every day. One for the company – from listing on Merkur Market important target area for the years ahead is in May to Oslo Stock Exchange's main list in the reducing total absence, including sick leave. summer of 2017. 15 August 2017 represents a Our focus on our human resources was very milestone for Fjord1, a moment to be recorded in evident in 2017 when we invited every one of our a long and proud company history. As a reward 1,200 employees to several conferences. These for the hard efforts of all our employees, we were followed by management conferences for gifted shares to each person with permanent all managers and captains. Good leadership is employment on the day the company was listed. essential and shall be a predominant feature of Making the employees shareholders in their Fjord1’s organisation. Both the employee and own company will strengthen the relationship management conferences were educational and between employee and workplace.