Color Group AS   Annual Report 2010
Color Group AS      Annual Report 2010             Principal figures and key figures             Color Group AS             ...
Color Group AS   Annual Report 2010                                      Prepared for a new era                           ...
Color Group AS   Annual Report 2010                                      Stable framework conditions                      ...
Color Group AS   Annual Report 2010                                                                                       ...
Directors Report and Financial Statement   Color Group Annual Report 2010             Cash flow                            ...
Directors Report and Financial Statement   Color Group Annual Report 2010                                                 ...
Directors Report and Financial Statement         Color Group Annual Report 2010             Balance sheet                 ...
Directors Report and Financial Statement   Color Group Annual Report 2010                                                 ...
Color Group AS Annual report 2010
Color Group AS Annual report 2010
Color Group AS Annual report 2010
Color Group AS Annual report 2010
Color Group AS Annual report 2010
Color Group AS Annual report 2010
Color Group AS Annual report 2010
Color Group AS Annual report 2010
Color Group AS Annual report 2010
Color Group AS Annual report 2010
Color Group AS Annual report 2010
Color Group AS Annual report 2010
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Color Group AS Annual report 2010

  1. 1. Color Group AS Annual Report 2010
  2. 2. Color Group AS Annual Report 2010 Principal figures and key figures Color Group AS ACCOUNTING STANDARD IFRS CONSOLIDATED 2010 2009 2008 2007 2006 2010 DEVELOPMENT OF TRAFFIC Passengers 4 129 119 4 212 974 4 093 761 4 294 691 4 279 868 Cars 958 671 984 695 890 407 879 458 828 284 Freight units (12m-equivalents) 171 796 172 245 168 272 176 634 192 412 PROFIT/LOSS (in NOK mill.) 1) (in EUR mill.) Operating revenues 4 509 4 600 4 568 3 802 4 585 577 Operating expenses -3 540 -3 538 -3 550 -3 137 -3 726 -453 Operating result before depreciation, charter and leasing costs 969 1 062 1 018 665 859 124 Ordinary depreciation -299 -302 -305 -310 -397 -38 Charter, leasing costs -123 -133 -98 -65 -66 -16 Operating income before write-downs/loss/gain EBIT 547 627 616 290 396 70 Net financial items -81 256 -752 -88 -31 -10 Pre-tax income 466 883 -136 203 365 60 Taxes -129 -242 37 -59 -104 -17 Net income prior to discontinued business 337 642 -99 144 43 Discontinued business -85 -22 Net income 337 642 -184 121 261 43 BALANCE SHEET (in NOK mill.) Current assets 1 943 893 1 208 1 743 1 534 249 Non-current assets 7 706 7 913 7 999 6 877 5 073 987 Total assets 9 649 8 806 9 207 8 620 6 608 1 235 Current liabilities 1 092 1 027 1 637 967 842 140 Long-term debt 5 230 4 767 5 287 4 863 2 928 670 Deferred taxes 928 778 521 733 599 119 Equity 2 398 2 234 1 762 2 057 2 074 307 Total liabilities and equity 9 649 8 806 9 207 8 620 6 608 1 235 LIQUIDITY (in NOK mill.)/FINANCIAL STRENGTH (%) Cash and cash equivalents as at 31 Dec. 2) 1 740 670 694 1 307 1 463 223 Cash flow from operations 871 772 640 980 606 108 Equity ratio % 25 25 19 24 31 Net interest-bearing debt 4 635 5 094 5 656 4 955 2 950 593 EMPLOYEES/SUNDRY EXPENSES Number of man-years 3) 2 446 2 445 2 739 3 967 3 821 Cost of wages 1 231 1 213 1 141 1 409 1 296 158 Port dues 144 147 141 152 143 18 Definitions: 1) Translated into Euro, exchange rate as at 31 Dec. 10 2) Including non utilized credit facilities 3) 2006 and 2007 show the number of employees 2 3
  3. 3. Color Group AS Annual Report 2010 Prepared for a new era ABOUT THE GROUP The company is subject to the Norwegian tax regime and Color Line is Color Group AS is the parent company of Color Line AS. Color Line AS is not part of the Norwegian tax scheme for shipowners. Norway’s largest and one of Europe’s leading companies in the field of short-sea cruises and freight. The company’s fleet of 6 ships has trans- INVESTMENTS IN EMPLOYEES AND THE ORGANIZATION ported more than 4 million passengers, almost 990 000 private cars and Color Line’s vision is to be the best shipowning company in Europe in the more than 170 000 trailers (12m equivalents) each year. The company field of cruise and transport goods. represents approx. 2 446 man-years in four countries. Annual turnover is Color Line has its main focus on securing dependable and good results in the region of NOK 4.5 billion. by strengthening the development of income and adjusting expenses The company’s vessels operate four international services between in the company on an ongoing basis. In 2010 the company increased its seven ports in Norway, Germany, Denmark and Sweden offering high engagement in the development of management and staff throughout quality cruises on the service to Germany and efficient transport on the the entire organization. During the course of the year, 440 managers and services between Norway, Denmark and Sweden. team leaders have attended management training courses. Color Line is Color Line represents more than one hundred years of continuous Norway’s largest private training enterprise at sea. service between Norway and the Continent. The company celebrated its During the period 2003 to 2010 the company has taken in 561 appren- 20th anniversary in 2010 and in 2011 will celebrate the 25th anniversary tices, 117 in the field of hotel operation and 444 deckhand, engine room of the Sandefjord-Strømstad service and the 50th anniversary of the and electrician apprentices. The company is the largest contributor to the service between Oslo and Kiel. Norwegian Maritime Competence Foundation. ■ INVESTING FOR THE FUTURE From the year 2004, Color Line has invested more than 7.5 bil- lion in new ships, concepts, port facilities and other infrastruc- ture. These investments include the world’s two largest cruise ships equipped with a car deck, M/S Color Fantasy and M/S Color Magic, operating on the Oslo-Kiel service in addition to the new transport concept in which M/S SuperSpeed1 and 2 operate on the Kristiansand- Hirtshals Line and the Larvik-Hirtshals Line. Color Line is part of the European ShortSea industry and is at present the only transport and cruise operator with a fleet sailing under the Norwegian flag. Color Line’s ships are registered in the Norwegian ordinary register of shipping (NOR) and the company is a Norwegian registered limited company with its head office in Oslo. 4 5
  4. 4. Color Group AS Annual Report 2010 Stable framework conditions Color Line’s operations, flying the Norwegian flag with Norwegian seamen allocation will amount to approx. NOK 20 million per year. Color Line is in and landbased operations in Norway must be based on stable framework the process of preparing a list of proposed beneficiaries, which must be conditions. Color Line’s ambitions are subject to the company having the approved by the Norwegian Gaming and Foundation Authority. same framework conditions as its competitors in the field of cruise and international passenger travel, operating under flags other than the Nor- PUTTING NORWAY ON THE TOURIST MAP wegian. Traffic between Sandefjord and Strømstad is stable and high throug- The Government’s maritime strategy, also called “a Steady Course” hout the year. Interest in Norway among German tourists has increased was launched in 2007 and has subsequently been followed up by status considerably after Color Line’s new cruise ships Color Fantasy and Color reports. The strategy is based on three main pillars – development of Magic were put into operation between Oslo and Kiel, and SuperSpeed has competence, a taxation scheme for shipowners and a refund scheme for widened the overall market from Denmark to Norway. In order to absorb the employment of seamen. Color Line has been given special mention further growth in traffic, the capacity of the SuperSpeed ferry operating in the Government maritime strategy “a Steady Course” dated 2 October between Kristiansand and Hirtshals was increased in 2010. This has in- 2007: creased the capacity of the ferry by a further 450 passengers equivalent to approx. 20 percent. This means that the new SuperSpeed ferry can ‘‘ Color Line has developed into one of Europe’s leading cruise and ferry companies. The company operates at the intersection between transport of goods and tourism and plays an important part in attracting foreign tourists to Norway. now carry half a million more passengers annually and will have a daily capacity of 9 000 passengers between Kristiansand and Hirtshals in nor- mal operation. In addition, SuperSpeed2 operating between Larvik and Hirtshals represents a further 7 500 passengers daily. The present day refund scheme for seamen continued more or less NEW MARKET STRATEGY IN GERMANY unchanged in 2010, compared with the preceding year and the scheme Germany is Norway’s most important and largest foreign market. provides Color Line with almost equal competitive terms compared with However, Norway’s market share of German foreign travel is less than shipowning companies in the Nordic Countries and in Europe, despite the 1 percent. This is the background for the increase in the marketing of fact that since its introduction the scheme has been weakened in relation Norwegian tourism in Germany. In 2010, almost 1,1 million guests travelled to the company’s international competitors. by Color Line’s cruise ships Color Magic and Color Fantasy, a historical Color Line faces competition from both Nordic shipowners operating record on the service between Norway and Germany. Two of three new on international services and carrying both passengers and goods, and guests are from Germany and the Netherlands. from cruise companies operating under international flags with crews This growth is due mainly to the effect of Color Line’s new market stra- engaged on local terms. For safety reasons, Color Line is under obliga- tegy in Germany together with increased initiative on the part of Innova- tion to have crew members who speak one of the Scandinavian langua- tion Norway and VisitOslo in the form of Oslo packages comprising, crui- ges in all jobs involving emergency procedures. At the same time, Color se, hotel and cultural events. The development of a theme cruise for the Line must continue to be registered in the Norwegian International Ship Norwegian market is expected to increase the potential even further. The Register (NIS) as the company operates its ships on a fixed schedule to increase registered in Color Line for this segment was 65 percent from and from Norwegian Ports. 2009 to 2010. On the Oslo-Kiel service the number of German guests in 2010 increased by almost 7 percent and German guests now represent 84 GAMING AND CASINO ONBOARD percent of all foreign guests onboard. ■ All sections of the regulations permitting gaming onboard Color Line ships were adopted in 2010 and apply from 1 January 2011, including pro- cedures for control and reporting. These regulations and the handling of this issue goes far in securing equality for Color Line compared with passenger ships sailing under other flags to and from Norwegian ports. Licences for gaming onboard are granted on the express condition that 20 percent of profits (the sales figure less payment of prizes) must be paid to an organization that is approved as a lottery beneficiary. This 6 7
  5. 5. Color Group AS Annual Report 2010 Directors Report and Financial Statement Color Group Annual Report 2010 Environment and safety Director’s Report 2010 Color Group AS SAFETY of greenhouse gasses by 10 percent by the year 2015 measured in the ABOUT THE GROUP and gains on shares, compared with approx. NOK 470 million in 2009. The Color Line makes every effort to prevent situations arising that could relation to the company’s discharge in 2009. Color Group AS is the parent company of Color Line AS. Color Line AS annual result after tax shows a profit of NOK 337 million compared with cause injury or a negative impact on health and the environment. Color In 2010 Color Line entered into partnership with Oslo Municipality in is Norway’s largest, and one of Europe’s leading companies in the field NOK 642 million in 2009. The parent company Color Group AS recorded a Line is engaged in adapting to new requirements in connection with MLC connection with the municipality’s work in improving the quality of air in of European short-sea shipping, employing approx. 2 446 man-years in pre-tax result of NOK 182 million compared with NOK 391 million in 2009. 2006 and STOW 2010. These are the new international standards for sa- the capital. This partnership has been defined in a pact entitled “Working four countries. The company now operates a fleet of six vessels, operat- After tax, the result is NOK 134 million for 2010 compared with NOK 290 fety at sea and are a supplement to the ISM code. Adaption work takes for a better climate”. The agreement was signed in Oslo City Hall on 29 ing on four international ferry services between seven ports in Norway, million in 2009. The Board proposes that NOK 43 million be distributed place through participation in a separate working group in the Norwegian November 2010 together with approx. 20 other companies and institu- Germany, Denmark and Sweden. as Group contribution. The remaining profit to be transferred to other Shipowner’s Association. Color Line has also implemented training and tions. Color Line has a long term cooperation agreement with the envi- Norway is part of a peninsula in Europe where efficient sea transport is equity. Distributable shareholders’ equity in the parent company was NOK courses in safety work and understanding the ISM code. These training ronmental foundation Bellona concerning measures for reducing envi- essential for Norwegian industry and Norwegian tourism. Color Line has 384 million as at 31 December 2010. activities apply to both seagoing personnel and shore-based personnel ronmentally harmful discharge to air and water. In a separate agreement an assertive differentiation strategy – high quality cruises on the service throughout the year. with the World Wildlife Fund in connection with the Baltic Sea initiative, between Oslo and Kiel in Germany and efficient transport of goods and FINANCIAL MATTERS Color Line is represented in international EU financed projects in Color Line has voluntarily undertaken not to discharge water into the passengers on the shorter routes between Kristiansand and Larvik in Balance Sheet and financing addition to national projects and organizations engaged in safety and Baltic Sea. Norway and Hirtshals in Denmark in addition to the Sandefjord-Strømstad Color Group AS focuses on diversified long term financing and predict- the environment. In 2010, Color Line has initiated several specific measures for reducing service. ability. The company issued two new bond loans in 2010 registered on There were no major accidents in 2010 involving serious injury or the company’s impact on the environment. The most important measure Color Line has a modern and cost-efficient fleet with a high degree Oslo Stock Exchange ABN. The first bond loan (COLG07) was issued in environmental pollution. is the agreement on the establishment of shore based mains electricity of product standardisation. Passengers in 2010 totalled 4 129 119 (2009: April for a total amount of NOK 500 million maturing in August 2014. The to ships berthed in Oslo on a daily basis. The shore based electricity pro- 4 212 974). This is a reduction in the number of passengers of approx. second bond loan (COLG08) was issued in November for a total of NOK THE ENVIRONMENT ject in Oslo is the first in Norway and will contribute towards preventing 2 percent from January to December in relation to 2009. The reduction 900 million, maturing in November 2015. In connection with the issuing In 2010, Color Line continued its engagement in environmental issues in discharge of the greenhouse gasses, SOx, NOx and PM while the ships are in the number of passengers is primarily the result of lower production of the bond loan COLG08, the company bought back 205 million (with line with the company’s environmental strategy from 2009 by establishing berthed. ■ involving 45 more cancellations than in the preceding year due to the shorter maturity) in COLG04 (maturity 2012), NOK 124 million in COLG05 KPIs for discharge to air. The company’s objective is to reduce discharge ice conditions in the outer Oslo Fjord and 18 more days of planned dock- (maturity 2012), and NOK 118 million in COLG06 (maturity 2011). ing for all ships. The competitive situation changed from 2009 to 2010 Color Group has also concluded an agreement on a new Reducing involving a new operator on the route between Kristiansand and Hirtshals Revolving Credit Facility of NOK 350 million in 2010, the principal matur- and new initiatives from international cruise companies offering short ing in October 2014. This refinanced existing facility of NOK 150 million sea cruises directly from Kiel and Oslo. The volume of freight (12m equiva- maturing in 2012. lents) was 171 796 compared to 172 245 in 2009. As at 31 December 2010, the Group’s balance totalled NOK 9 649 mil- lion, an increase of NOK 843 million compared with 2009, primarily due to INCOME STATEMENT the issue of the bond loans COLG07 and COLG08 providing a cash effect Accounting principles (approx. NOK 1 100 million in bank deposits/cash at yearend). Equity as at Color Group AS is a Norwegian limited company with its head office in 31 December 2010 totalled NOK 2 398 million, compared with NOK 2 234 Oslo. The consolidated accounts are presented in accordance with IFRS million in 2009. The equity ratio was approx. 25 percent, about the same (International Financial Reporting Standards). as in 2009. Long-term mortgages in ships/terminals/hotel have a repayment pro- Result for the Group and the parent company file of 12 to 15 years. Total outstanding mortgages on ships/terminals/ Operating income totalled NOK 4 509 million in 2010 compared with hotel as at 31 December 2010 are NOK 5 678 million. Net outstanding debt NOK 4 600 million in 2009. The operating result before depreciation and after deduction of bank deposits and cash was NOK 4 635 million as at charter hire totalled NOK 969 million compared with NOK 1 062 million 31 December 2010 compared with NOK 5 094 million in 2009. The bond in 2009. The underlying operations were satisfactory and in addition to loans registered on Oslo Stock Exchange mature during the period 2011 to the elements mentioned above include a higher cost of bunkers than in 2015. Outstanding net bond loans as at 31 December 2010 total NOK 1 948 the preceding year. The operating result in 2010 totalled NOK 547 million million. In connection with the handover of the high speed ferry MS compared with NOK 627 million in 2009. SuperSpeed2 in 2008, a 12 year operational leasing agreement was Group net financial expenses show an increase from NOK 256 million concluded between Oslo Line AS and Color Line Transport AS with a in 2009 to NOK -81 million in 2010. Net financial items in 2010 include guarantee from Color Group AS. In its loan agreements the company approx. NOK 85 million in realised and unrealised values in respect of cur- has liabilities linked to liquidity, equity and debt servicing ratio. All rency loans, fixed interest contracts, interest derivates, currency hedging liabilities were fulfilled as at 31 December 2010. 8 9
  6. 6. Directors Report and Financial Statement Color Group Annual Report 2010 Cash flow the demands of the Anti-discrimination Act and the Anti-discrimination nies and institutions. This agreement is a supplement to other goodwill ESA In 2010, the Group’s cash flow from operational activities totalled NOK and Availability Act. This applies both to employees and in recruitment agreements that in 2010 also include an agreement with the environ- ESA, EFTA’s supervisory body, decided in December 2009 to instigate 871 million. Net cash flow from financing activities totalled NOK 395 mil- of new crew members. mental foundation Bellona as well as WWF for their Baltic Sea initiative competition law-based investigations of Color Line and the company’s lion, and net cash flow from investments showed a deficiency of NOK -229 Of the Group employees onboard the ships, 953 are women. There are whereby the company has undertaken not to discharge waste water into port agreements in connection with the Sandefjord-Strømstad service. million of which part is related to development costs in connection 224 leading positions and 24 of these are held by women. The percent- the Baltic Sea. Competitors of Color Line filed a complaint with the Norwegian Competi- with the new booking and Internet platform. The Group’s total liquidity age of women in leading positions onboard is relatively low as technical/ In 2010, Color Line has also initiated several specific measures tion Authority in 2006. As the case also concerns Sweden, it was trans- reserve, including granted drawing rights and liquid securities totalled maritime jobs have traditionally been dominated by males and so far few for reducing environmental impact. The most important of these ferred to ESA. In the view of the company, Color Line has acted in accord- approx. NOK 1 740 million. Ordinary planned instalments on the Group’s women hold the necessary certificates. is the start-up of work on shore based mains current for ships ance with the ruling provisions of competition law at all times. interest-bearing debt to credit institutions and bond loan is approx. NOK Of the 691 shore-based personnel, 410 are women. There is 1 woman in berthed in Oslo on a daily basis in order to prevent the discharge of 466 million. the Color Line AS Group management. The percentage of women in shore- greenhouse gasses to air (SOx, NOx and PM). Equal competition based management positions is approx. 45 percent. Other measures worthy of mention include the start-up of several trial Color Line is today the only major shipping company in Norwegian owner- The financial risk situation projects aimed at reducing discharge of greenhouse gasses (and reduc- ship, operating from a head office in Norway, registered in the Norwegian The Group is exposed to foreign exchange risk due to fluctuations in NOK SAFETY ing consumption of energy by several percent). The company has also Register of Shipping, sailing under the Norwegian flag and operating on against other currencies, particularly USD, EUR and DKK. The Group is also Color Line endeavours to prevent situations that can involve injury and in 2010 reduced the consumption of electricity for lighting onboard by a regular all year round schedule between Norway and the Continent exposed to interest risk, and fluctuations in the price of bunker products. an impact on health and the environment. In 2010 the company contin- replacing light units on several ships with new low energy units in addi- carrying freight and passengers. Stable and internationally competitive The Group makes use of financial instruments in order to curb the risk of ued to develop the company’s electronic safety management system. tion to control systems and routines for lighting on board. framework conditions have been and are a condition for the appreciable fluctuations in the Group’s cash flow. On balance sheet date, approx. 20 Moreover in 2010 the company has issued new preparedness plans for investments by Color Line in Norway. Color Line works actively to ensure percent of the Group’s interest-bearing debt was secured through fixed the company. The company has also been working on the adaption to THE BOARD OF DIRECTORS AND SHAREHOLDERS that there are equal conditions for Norwegian seamen in line with the interest agreements and approx. 45 percent of the company’s estimated new requirements in connection with MLC 2006 and STOW 2010, the new O. N. Sunde AS owns indirectly 100 percent of the company’s 71 800 000 company’s competitors in the Nordic countries and in the EU. This is joint cost of bunkers for 2011 was secured through derivate contracts for bun- internationals standards for safety at sea that are a supplement to the shares. O. N. Sunde AS is wholly-owned by Director and Group President effort with Color Line’s crew members and their organizations, the Nor- kers. The company also had different currency derivate contracts related ISM code. Color Line participates in a working group in the Norwegian Olav Nils Sunde and his family. wegian Shipowner’s Association, the Maritime Forum of Norway and the to budgeted operations in 2011. The Group has a limited market risk as its Shipowner’s association. Norwegian Authorities. business relates to a large number of customers. The company has also been engaged in extensive training and courses PROSPECTS/EVENTS AFTER BALANCE SHEET DATE in safety work and in the ISM code for both sea and land-based personnel Changed market conditions Rebuilding M/S SuperSpeed1 Continued operation throughout the year. The company is represented in international (EU fi- The cruise and seaborne transport industry requires a high level of in- The rebuilding of M/S SuperSpeed1 was completed in January 2011. The re- On the basis of the above report on the Group’s result and financial nanced) projects in addition to national projects and organizations work- vestment and places heavy demands on cost management and earning building work cost in the region of EUR 15 million and comprises a larger position, the Directors confirm that the Annual Financial Statement ing on improvements in safety and the environment. There were no major potential. Several of the ferry services between Norway and Europe have pizza restaurant which has increased the passenger capacity of the ferry has been prepared under the assumption of continued operation as a accidents in 2010 involving serious injury or environmental pollution. been discontinued in recent years, primarily due to costly operating con- by more than 400 passengers or approx. 20 percent. Rebuilding work took going concern, and that the Report provides a correct picture of the cepts, low utilisation of capacity, and competition from alternative forms place at the STX Yards in Finland and will be financed via a guarantee parent company’s and the Group’s assets, liabilities, financial position, THE ENVIRONMENT of transport. Strong focus on the environment by the authorities in the from Finnvera Plc in Finland. and result. In 2010, Color Line Marine AS continued the work on environmental issues EU and in Norway involving a defined objective for the transfer of goods in line with the company’s environmental strategy from 2009 through traffic from road to seaborne and rail transport has contributed towards Prospects for 2011 WORKING ENVIRONMENT AND PERSONNEL the establishment of KPI for discharge to air. The company’s aim is to stable and long-term framework conditions for shipowners. It is expected The Group’s main objective is to ensure profitability and to maintain cost- At the end of 2010, the number of man-years in the Group totalled approx. reduce the discharge of greenhouse gasses by 10 percent by the year that there will be further positive political measures in the field of trans- efficient operation. The Group expects to achieve a satisfactory result for 2 446. In 2010, the average absence due to illness in the Group was ap- 2015 measured in relation to the 2009 level. Color Line Marine has port and industry that will strengthen the competitiveness of seaborne 2011. The Directors are of the opinion that the company is well equipped prox. 5.2 percent for shore-based employees (6.8 percent in 2009), and engaged the company CO2focus AS to take care of the greenhouse transport with particular emphasis on intermodality in the ports. to meet the challenges of 2011. approx. 9.8 percent for seagoing employees (10.5 percent in 2009). gas discharge accounts on behalf of the company. C02focus AS is an The Directors consider that the working environment in the Group is authorized audit company in this area using the method recommended good and will continue to focus attention on the environment and on by the UN (based on the Greenhouse Gas Protocol Initiative – the GHG Oslo, 27 April 2011 absence due to illness in respect of both shore-based and seagoing per- protocol) which is the usual accounting standard for the discharge of sonnel in line with the company’s policy and with trends in society. greenhouse gases. In 2010, Color Line also became engaged as a partner in Oslo Mu- EQUAL OPPORTUNITIES nicipality’s work in improving the quality of air in the capital by signing Morten Garman Olav Nils Sunde Alexander Sunde Bjørn Paulsen Chairman of the Board Director/Group President Director Director It is Color Group AS’ objective that there shall be full equality between the Greenhouse Gas Agreement “working for a better climate” in Oslo female and male employees. The company makes every effort to satisfy City Hall on 29 November 2010 together with approx. 20 other compa- 10 11
  7. 7. Directors Report and Financial Statement Color Group Annual Report 2010 Income statement Color Group AS PARENT COMPANY (NRS) Amounts in TNOK GROUP (IFRS) 2010 2009 Note 2010 2009 133 761 136 702 Sales revenues 3, 7 4 508 912 4 599 127 0 0 Other operating income 7 0 582 133 761 136 702 Total operating income 4 508 912 4 599 709 0 0 Cost of sales -1 539 917 -1 524 970 -7 717 -10 769 Cost of wages 4, 18, 19, 20 -1 230 750 -1 212 789 -4 952 -11 945 Other operating expenses 7, 15 -769 133 -799 913 -12 669 -22 714 Total operating expenses -3 539 800 -3 537 672 121 092 113 988 Operating income before depreciation, charter hire and leasing expenses 969 112 1 062 037 -22 034 -22 034 Write-downs and depreciation 4, 8, 9, 10 -299 337 -302 294 0 0 Charter and leasing expenses 15 -122 568 -132 621 99 058 91 954 Operating profit 547 207 627 122 82 925 299 313 Net financial expenses 16, 17 -81 279 256 173 181 983 391 267 Pre-tax profit 465 928 883 295 -47 947 -101 158 Taxes 24 -128 724 -241 517 134 036 290 109 Profit for the year before discontinued operations 337 204 641 778 Comprehensive income statement Profit for the year 337 204 641 778 Other income and expenses Conversion differences, foreign exchange -1 359 -7 691 Net gain/loss bunkers hedging -992 13 334 Total other income and expenses net after taxes -2 351 5 643 Total profit 334 853 647 421 Majority share of total profit for the year 334 853 647 421 12 13
  8. 8. Directors Report and Financial Statement Color Group Annual Report 2010 Balance sheet Cash flow statement Color Group AS Color Group AS PARENT COMPANY (NRS) Amounts in TNOK GROUP (IFRS) PARENT COMPANY (NRS) Amounts in TNOK GROUP (IFRS) 2010 2009 ASSETS Note 2010 2009 2010 2009 FOR THE PERIOD 1 JANUARY TO 31 DECEMBER Note 2010 2009 Non-current assets 181 983 391 267 Pre-tax result 465 928 883 295 Intangible assets 22 034 22 034 Write-downs and depreciation 299 337 302 294 130 761 152 795 Goodwill and other intangible assets 4, 9, 10 671 301 671 301 Loss/gain on sale of non-current assets 153 130 761 152 795 Total intangible assets 671 301 671 301 -22 891 Changes in value financial assets -4 372 -18 519 Property, plant and equipment 2 996 15 482 Changes in value financial long term liabilities 2 996 -13 280 0 0 Property under construction 2, 4, 8 378 112 273 454 -1 827 -228 183 Changes currency financial liabilities -1 827 -228 183 0 0 Land, buildings and other real estate 4, 8 653 538 698 509 Write-down financial non-current assets 12 450 0 0 Equipment 4, 8, 10 49 363 59 125 Pension costs exceeding premium paid 20 12 690 -4 354 0 0 Ships 2, 4, 8 5 526 463 5 733 712 -57 955 -182 488 Unrealized foreign exchange gain/loss, currency loans 16 -58 406 -182 488 0 0 Total property, plant and equipment 6 607 476 6 764 800 Unrealized foreign exchange gain/loss, long term receivables 16 1 026 2 362 Non-current financial assets Translation differences non-current assets 8 13 679 39 621 2 792 511 2 739 225 Investments in subsidiaries 5, 6 0 0 Change in interest contracts CIRR 27 633 16 117 3 698 977 3 936 909 Long-term receivables and investments 6, 11, 17, 20 427 134 476 868 Translation differences foreign subsidiaries -1 359 -7 691 6 491 488 6 676 154 Total non-current financial assets 427 134 476 868 Changes in bunkers contracts, equity -992 13 334 6 622 249 6 828 929 Total non-current assets 7 705 911 7 912 969 Current assets Changes in working capital 0 0 Inventories 12 150 121 155 393 276 753 409 195 Accounts receivable and other receivables 17 596 464 523 104 Changes in inventories 5 272 22 039 22 891 0 Other financial assets 17 22 891 18 519 3 644 17 131 Changes in accounts receivable and other receivables 10 252 218 493 35 257 95 239 Short term share investments 35 257 95 239 59 982 -95 239 Changes in market based shares 59 982 -95 239 1 113 524 69 815 Bank deposits and cash 17 1 138 648 101 150 283 432 -43 886 Changes in accounts payable and other current liabilities 38 761 -188 096 1 448 425 574 249 Total current assets 1 943 381 893 405 8 070 674 7 403 178 TOTAL ASSETS 9 649 292 8 806 374 347 058 -121 994 Total changes in working capital 114 267 -42 803 471 398 -103 882 Net cash flow from operational activities 870 753 772 155 2010 2009 EQUITY AND LIABILITIES Note 2010 2009 Contributed capital Payments, investments in ships -34 166 -15 322 143 600 143 600 Share capital (71 800 000 shares, nominal value NOK 2.- per share) 6, 22 143 600 143 600 Pre-paid investments in ships -72 682 1 478 436 1 478 436 Premium fund 22 1 478 436 1 478 436 Payments, purchase of equipment -7 531 -5 736 1 622 036 1 622 036 Total contributed capital 1 622 036 1 622 036 Payment re. purchase of land, building and other real estate -9 490 -5 127 515 025 652 008 Other equity 22 776 459 612 018 Payments, purchase of property under construction -104 658 -142 923 2 137 061 2 274 044 Total equity 2 398 495 2 234 054 LIABILITIES Proceeds from sale of equipment 2 698 Provisions -53 286 -192 587 Payments, other investments 57 441 42 558 Deferred tax liabilities 23 928 492 777 663 57 441 42 558 Total provisions 928 492 777 663 -53 286 -192 587 Net cash flow from investment activities -228 527 -166 410 Long-term liabilities 3 610 553 3 970 791 Debt to credit institutions 13, 17 3 360 544 3 757 516 49 048 90 000 Proceeds from taking up of new debt to credit institutions 49 048 90 000 1 927 733 1 062 500 Bond loans 13. 17 1 851 233 994 500 1 380 233 194 500 Proceeds from taking up of new bond loans 1 380 233 194 500 18 478 15 482 Other long term liabilities 17 18 478 15 482 -351 331 -218 776 Repayment of debt to credit institutions -373 114 -258 513 5 556 764 5 048 773 Total long-term liabilities 5 230 255 4 767 498 -515 000 -543 500 Instalments on bond loans -515 000 -543 500 Current liabilities 0 0 Payments, interest bearing receivables -115 685 319 408 35 976 Trade creditors and other current liabilities 14, 17 626 050 582 332 290 825 949 993 Proceeds, long term receivables 8 385 0 0 Current share of long-term liabilities 13, 17 466 000 443 000 -356 976 -359 843 Paid, received dividend/Group contribution -143 350 -165 900 0 1 827 Other financial liabilities 0 1 827 128 798 -20 859 Change in outstanding account/owner -10 930 55 691 319 408 37 803 Total current liabilities 1 092 050 1 027 159 625 597 91 515 Net cash flow from financing activities 395 272 -743 407 8 070 674 7 403 178 TOTAL EQUITY AND LIABILITIES 9 649 292 8 806 374 1 043 709 -204 954 Net change in liquid resources 1 037 498 -137 662 69 815 274 769 Closing balance liquid resources 1 Jan. 101 150 238 812 1 113 524 69 815 Closing balance liquid resources 31 Dec. 1 138 648 101 150 Morten Garman Olav Nils Sunde Alexander Sunde Bjørn Paulsen Chairman of the Board Director/Group President Director Director The Cash flow statement has been changed for 2010. The figures for 2009 have been changed accordingly. 14 15
  9. 9. Directors Report and Financial Statement Color Group Annual Report 2010 Notes Color Group Annual Report 2010 Statement of changes in equity Notes to the accounts 2010 Color Group AS Color Group AS Amounts in TNOK NOTE 1 ACCOUNTING PRINCIPLES NOK. Balance sheet items are translated at the exchange rate ruling at year- Share Premium Translation Hedging Undistributed end, while items on the Income statement are translated on the basis of an capital Fund differences reserve surplus Total General information Equity 1 Jan. 2009 143 600 1 478 436 11 017 0 129 028 1 762 081 Color Group comprises Color Group AS and its subsidiary companies. Color average exchange rate. Translation differences are entered against equity Result for the year 641 778 641 778 Group AS is a limited company with its head office in Oslo. The Group con- and are specified separately. Other income and expenses -7 691 13 334 0 5 643 centrates mainly on two core areas, cruise and transport. These business Total income and expenses for the period 0 0 -7 691 13 334 641 778 647 421 areas are described in Note 3, Information Segment. Transactions and Balance Sheet items Group contribution/dividend to owner -175 448 -175 448 Money items (assets and liabilities) in foreign currency are translated at Framework for preparing the Annual Financial Statements the exchange rate on balance sheet date. Foreign exchange gain and loss Equity 31 Dec. 2009 143 600 1 478 436 3 326 13 334 595 358 2 234 054 Group in connection with the translation of money items in foreign currency at Color Group AS has taken up bond loans which are registered on Oslo Stock year-end are entered in the income statement. Items are translated at the Exchange. Stock Exchange regulations require that the Group must report exchange rate ruling at the time of the transaction. Foreign currency gains Equity 1 Jan. 2010 143 600 1 478 436 3 326 13 334 595 358 2 234 054 in accordance with International Financial Reporting Standards (IFRS) and and losses arising upon payment of such transactions are entered in the Result for the year 337 204 337 204 the interpretations issued by the International Financial Reporting Inter- income statement. Other income and expenses -1 359 -992 -2 351 Total income and expenses for the period 0 0 -1 359 -992 334 853 pretations Committee (IFRIC). Group contribution/dividend to owner -170 412 -170 412 All new and amended standards and interpretations that are relevant Principles of consolidation for Color Group and that were in force with effect from the commencement Subsidiary companies comprise all units in which the Group has a deciding Equity 31 Dec. 2010 143 600 1 478 436 1 967 12 342 762 150 2 398 495 of the accounting period on 1 January 2010 have been applied when prepar- influence on the unit’s financial and operational strategy, through a stake ing the Annual Financial Statements. At the time these financial statements of more than 50 percent providing voting control. When deciding whether were presented, some new or amended standards and changes in inter- the Group has a deciding influence, the effect of potential rights that may pretations had not yet come into force in cases where the Group had not be exercised or converted on balance sheet date is included. chosen early application. In the view of management, these standards and Subsidiaries are consolidated from the time control has been taken interpretations will not have any significant effect on the annual financial over by the Group and are withdrawn from consolidation when deciding statements. influence ceases. Preparing the accounts in accordance with IFRS requires the use of esti- The purchase method of accounting is applied in connection with the mates. Moreover, consolidated accounting principles require that manage- acquisition of subsidiary companies. Procurement cost is measured at the ment shall make discretionary decisions. Areas that to a large extent are actual value of assets used as payment, equity instruments issued, liabili- based on discretionary evaluations that are very complex or areas in which ties that have been taken over through the transfer of control and direct assumptions and estimates are significant for the consolidated accounts expenses connected with the actual acquisition. Identifiable purchased are duly described in the notes. assets, debts undertaken and conditional liabilities are entered in the ac- The consolidated accounts have been prepared on the historical cost counts at real value at time of acquisition, irrespective of any minority principle, adjusted in respect of financial instruments and measured at real interests. Expenses connected with the acquisition are allocated to identifi- value. able assets and liabilities based on their actual value at time of acquisition. Procurement costs that exceed the share of actual value of identifiable The parent company net assets in a subsidiary company are entered in the balance sheet as The financial statements for the parent company, Color Group AS have been goodwill. If procurement cost is lower than actual value of net assets in a prepared in accordance with the provisions of the Accounting Act of 1998 subsidiary company, the difference is entered in the balance sheet at time and generally accepted accounting principles in Norway (NRS). of acquisition. Unless otherwise stated in the description of principles, it is the Group’s Intercompany transactions, intercompany accounts and unrealised accounting principles that are described. Description of accounting princi- earnings between companies in the Group are eliminated. Unrealised loss is ples that apply only to the parent company’s accounts in accordance with eliminated, but is evaluated as an indicator of the drop in value in relation NRS are specified separately. to the write-down of the transferred assets. Accounting principles in subsidiary companies are amended whenever Translation of foreign exchange necessary in order to conform to the Group’s accounting principles. Accounts relating to the individual units in the Group are presented in the currency normally used in the financial area where the unit operates Principles of taking to income (functional currency). The Group’s presentation currency is NOK and this is Income from the sale of goods and services is entered in the accounts at also the parent company’s presentation and functional currency. Subsidi- actual net value after deduction of VAT, discounts and reductions. ary companies which have another functional currency are translated to Income from the sale of goods and services is calculated from the 16 17

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