Annual Report 2011/2012 NOBINA | annUAL REPORT 2011/2012 1 FRAMVAGNSVINJETT » THE BUS RIDE TOOK ALL DAY BACK THEN » When we took the bus from Lövånger to visit Grandma and Grandpa in Umeå in the 1940s, the trip almost took all day. Now, it’s a quick and comfy ride that takes just over an hour. A lot has happened in terms of both buses and roads since then ... EVA, 73 YEARS OLD 2 NOBINA | annUAL REPORT 2011/2012 FVRAM AGNSVINJETT obina’s business concept is about simplifying everyday travel. We have even greater ambitions. N We want to help get society on the move more. And, we want more people to travel by public transport – at least double the current amount. Traveling together is smart and sustainable. We’ve been doing this for over a hundred years. CONTENTS Nobina in brief 4 Administration report 54 Financial overview 5 Accounts The year in review 6 Consolidated income statement and consolidated statement of comprehensive income 59 Statement from the CEO 8 Consolidated balance sheet 60 Market Consolidated statement of changes in share holders’ equity 61 Public transport 10 Consolidated cash-flow statement 62 R egional traffic 14 Parent Company income statement and statement Interregional traffic 18 of comprehensive income for the Parent Company 63 Nobina Parent Company balance sheet 64 Operations 20 Parent Company statement of changes in shareholders’ equity 65 Business areas 27 Parent Company cash-flow statement 66 Responsibility – environment and safety 40 Notes 66 Corporate governance Corporate governance report 46 Auditor's report 92 The share 50 Glossary and definitions 93 Board of Directors and Group management 52 Addresses 94 Annual general meeting 94 The people in the full-page photographs have no connection with the quotations. The photographs come from photo agencies and the names have been changed of the people quoted. While every care has been taken in the translation of this annual report, readers are reminded that the original annual report, signed by the Board of Directors, is in Swedish. NOBINA | annUAL REPORT 2011/2012 3 IN BRIEF T his is Nobina Nobina continues to maintain its market-leading position on a changing market. The com- pany’s ambition is to advance its position with sustained profitability throughout the Nordic region, and take shares in the value chain through improved customer offerings and an optimized bus fleet and traffic planning. Through goal-oriented and delegated leadership, the industry’s most dedicated employees will be a driving force in this movement. BUS SINES MODEL SGTRATE Y – PROFITABLE GROWTH Nobina has an effective business model Stable and profitable growth is achieved by securing the right contracts, rather than based on stable revenue generated by greater market shares, and by optimizing the bus fleet and daily operation in existing long-term contracts and relationships. The contracts. Nobina’s focal points: market logic and selected model entail that the business is conducted with low risk. WORK FOR A LARGE ACCESSIBLE TENDER CONSTANTLY DEVELOP LEADERSHIP AND An extensive contract portfolio and large VOLUME TO SECURE MORE PROFITABLE EMPLOYEE PARTICIPATION CONTRACTS tender volumes provide stability, while the ■ P rioritize the recruitment and training of growing number of contracts that feature ■ Nobina shall enhance the quality of its leadership for all managers roles. incentives (and in certain cases entirely tenders and participate in a large number of ■ M ake all employees visible and committed passenger-based remuneration) due to tendering process, but only where there through management by objectives and ongoing deregulation, allow for growth are good conditions for profitability. continuous feedback. and better margins. DEVELOP THE CUSTOMER OFFERING CONTINUE TO ACTIVELY DRIVE Nobina’s market-leading position in AND TAKE A LARGER SHARE OF THE STRUCTURAL CHANGE the Nordic region entails significant VALUE CHAIN advantages in connection with tendering ■ Nobina shall capture market opportunities ■ Nobina shall strengthen its offering to cus- processes, contract management, vehicle and increase the proportion of incentive- tomers in both Regional and Interregional operation and traffic planning. based remuneration in traffic contracts. traffic, through constant product develop- This entails increasing the traffic company’s ment and greater responsibility for influ- The operations are divided into two commitment through greater responsibil- encing the journey and the traveling. business areas: Regional and Interregional ity for the range of services, schedules traffic. Nobina is one of the largest public and sales, and remuneration for both transport companies in northern Europe PRIORITIZE AND IMPROVE PROFITABILITY traffic production and the number of with a bus fleet of about 3,500 buses and IN ALL AREAS passengers. 280 million completed customer trips ■ Nobina shall achieve greater efficiency in ■ P articipate in the market consolidation per year. both existing and new contracts with the towards active and quality-focused support of Group-wide working processes. players. ■ Optimize indexation, fuel consumption and OVERALL GOALS traffic planning. Nobina shall continue to be a strong driving force in the market to expand public traffic by bus in the Nordic region, broaden traffic Nobina’s business concept companies’ responsibility for the customer offering and improve opportunities for is to simplify customers’ strengthening the profitability of contracts through more balanced terms between everyday travel, and the parties. the vision is clear: »EVERYBODY WANTS TO TRAVEL WITH US» 4 NOBINA | annUAL REPORT 2011/2012 financiaL OVERVIEW Financial overview Sales increased by 5.3% to SEK 7,050 million expenses for the centenary celebrations of SEK 7 (6,697) and operating profit fell to SEK 37 million million, and extraordinary winter expenses in SALES (232). The decline in earnings comprises one-off Finland of SEK 8 million. During the year, Nobina Rolling four quarters effects in the form of a goodwill impairment for won contracts for 650 buses (556). 263 buses SEK M Nobina Norge AS in the amount of SEK 84 million, (273) were acquired to a value of SEK 745 million 8,000 a one-off charge to earnings for regional bus traffic (731) and were financed though financial leasing. 7,000 in Norway of SEK 31 million, taking up previous The number of cash-financed buses totaled 133 6,000 issue expenses of SEK 49 million as income, (122) to a value of SEK 53 million (151). 5,000 Sales Operating profit 4,000 SEK M unless otherwise stated 2011/2012 2010/2011 2011/2012 2010/2011 3,000 Regional traffic S weden 4,905 4,459 295 242 2,000 Denmark 325 323 –33 –53 1,000 Norway 718 783 –128 21 Finland 775 756 12 7 0 Q1 Q1 Q1 Q1 Q1 Interregional traffic 07/08 08/09 09/10 10/11 11/12 Swebus 370 430 –4 40 Total 7,050 6,697 37 232 EARNINGS TREND Rolling four quarters S ALES by business area and HISTORY of tenders SEK M 1,250 OPERATING profit EBITDAR Adjusted* SEK M Number of buses EBITDAR 7,000 500 3,500 Reported 1,000 6,000 3,000 300 5,000 2,500 750 100 4,000 2,000 0 500 3,000 1,500 EBITDA – 100 Adjusted* EBITDA 2,000 1,000 250 Reported –300 1,000 500 0 Q1 Q1 Q1 Q1 Q1 0 –500 0 07/08 08/09 09/10 10/11 11/12 07/08 08/09 09/10 10/11 11/12 07/08 08/09 09/10 10/11 11/12 Number of buses tendered in the Nordic region Regional traffic Interregional traffic Number of tendered buses where Nobina has Operating profit submitted a tender SEK M Number of buses won by Nobina 500 EBIT Adjusted* EBIT Reported SEK M, unless otherwise stated 07/08 08/09 09/10 10/11 11/12 300 Sales 5,406 6,134 6,308 6,697 7,050 Operating profit/loss 161 206 192 232 37 100 Profit/Loss after net financial income/expense –16 –233 121 59 –230 Profit/Loss after tax –15 –239 121 59 –230 –100MSEK EBT 7 000 Adjusted* Cash flow 211 –59 –67 –91 –120 EBT Reported Cash and cash equivalents incl. restricted funds 529 558 472 335 260 6 000 –300 Of which restricted funds 74 141 141 110 153 5 000 Equity/assets ratio, % 5.8 Neg 2.8 3.4 Neg Q1 Q1 Q1 Q1 Q1 –500 07/08 08/09 09/10 10/11 11/12 Shareholders' equity 210 –117 137 178 –43 4 000 Number of buses 3,376 3,505 3,553 3,618 3,437 3 000 Average number of employees 7,021 7,606 7,318 7,714 7,008 * Adjusted for one-off costs and non-recurring expenses Revenue/bus 1.60 1.75 1.78 1.85 2.05 2 000 1 000 0 05/06 06/07 07/08 08/09 09/10 NOBINA | ANNUAL REPORT 2011/2012 5 Regional trafik Interregional trafik FRV AM AGNSVINJETT 2011/2012T he year in review T he main features of the past year were Nobina’s centenary celebration and the new Swedish Public Transport Act coming into effect. In terms of operations, the year featured major contract adjustments, chiefly in Sweden. In total, Nobina won traffic contracts comprising 650 buses while 517 of its own buses were exposed in tenderings; a net gain of 133 new buses for the full year. N OBINA AND ITS BUSINESS ENVIRONMENT OND E HUN RED YEARS SINCE THE FIRST JOURNEY This year marks the one hundredth anniversary of Nobina’s first bus journey. To celebrate its anniversary, Nobina embarked on a bus tour in the summer to visit five cities to promote ideas and thoughts on future public years transport. To round off the celebra- 100K ARLStad tions, a full-day event was organized at Berns in Stockholm, attended by öREBRO Sweden’s leading experts on public TEH buS.