Color Group AS annual report 2011

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Color Group AS annual report 2011

  1. 1. Color Group AS Annual Report 2011
  2. 2. Color Group AS Annual Report 2011 Principal figures and key figures Color Group AS This is Color Line Accounting Standard IFRS Color Group AS is the parent company of Color Line AS. Color Line AS is only shipowner operating international passenger traffic services using CONSOLIDATED 2011 2010 2009 2008 2007 2011 Norway’s largest – and one of Europe’s leading – short-sea cruise and ships registered in the Norwegian Ordinary Ship Register (NOR). DEVELOPMENT OF TRAFFIC freight shipping companies. Of the company’s approximately 3 000 employees (some 2 500 man- Passengers 4 085 938 4 129 119 4 212 974 4 093 761 4 294 691 The company’s fleet of six vessels operates four international services years), 2 300 are employed on board the vessels (equivalent of 1 800 Cars 954 930 958 671 984 695 890 407 879 458 between seven ports in Norway, Sweden, Denmark and Germany. man-years). Color Line operates one of Norway’s biggest maritime Freight units (12m-equivalents) 172 311 171 796 172 245 168 272 176 634 The company’s vision is to be Europe’s best cruise and freight shipping training organisations and annually offers 60 apprenticeships on deck, company. in the engine room and in the hotel operation. PROFIT (in NOK mill.) 1) (in EUR mill.) Color Line offers high quality cruises on the service between Oslo and In 2011, Color Line’s services carried close to 4.1 million passengers, in Operating revenues 4 586 4 509 4 600 4 568 3 802 590 Operating expenses -3 666 -3 540 -3 538 -3 550 -3 137 -472 Kiel in Germany, while the efficient transportation of freight and passengers addition to over 172 000 freight units (12m-equivalents). The company Operating profit before depreciation, amortisation, charter and leasing costs 920 969 1 062 1 018 665 118 is the main priority on the shorter routes between Kristiansand and recorded a turnover of almost NOK 4.6 billion and a pre-tax profit of Ordinary depreciation and amortisation -343 -299 -302 -305 -310 -44 Hirtshals, Larvik and Hirtshals and on the Sandefjord-Strømstad service. NOK 78 million. This figure includes an exceptional provision of approxi- Other exceptional items -150 -19 Most of Color Line’s fleet is modern and economically efficient and the mately NOK 150 million relating to a decision handed down by the EFTA Charter, leasing costs -118 -123 -133 -98 -65 -15 ships have been designed to operate efficiently and cost-effectively. Surveillance Authority (ESA) in December 2011. Color Group AS is the Earnings before interest and taxes (EBIT) 308 547 627 616 290 40 Product-standardisation has given the ships a distinct profile based on parent company of Color Line AS. Color Group is wholly owned by the Net financial items -230 -81 256 -752 -88 -30 well-functioning, attractive and highly-reputed concepts. limited company O. N. Sunde AS, which in turn is owned in its entirety by Pre-tax income 78 466 883 -136 203 10 The company is headquartered in Oslo and at present Color Line is the Olav Nils Sunde and his family. n Tax expenses -23 -129 -242 37 -59 -3 Profit/loss for the year before discontinued operations 55 337 642 -99 144 7 ‘‘ Discontinued operations -85 -22 Net profit/loss for the year 55 337 642 -184 121 7 To succeed in the process of industrial renewal on the scale BALANCE SHEET (in NOK mill.) achieved by Color Line over the last few years requires the ability to Current assets 1 674 1 943 893 1 208 1 743 215 Non-current assets 7 613 7 706 7 913 7 999 6 877 980 innovate and implement at every level of the organisation. Total assets 9 287 9 649 8 806 9 207 8 620 1 195 Trond Kleivdal Group President Current liabilities 1 393 1 092 1 027 1 637 967 179 Non-current liabilities 4 884 5 230 4 767 5 287 4 863 629 Deferred tax liabilities 934 928 778 521 733 120 Equity 2 060 2 398 2 234 1 762 2 057 265 Total liabilities and equity 9 287 9 649 8 806 9 207 8 620 1 195 LIQUIDITY (in NOK mill.)/FINANCIAL STRENGTH (%) Cash and cash equivalents as at 31 Dec. 2) 1 631 1 740 670 694 1 307 210 Cash flow from operations 638 871 772 640 980 82 Equity ratio % 22 25 25 19 24 Net interest-bearing debt 4 518 4 635 5 094 5 656 4 955 581 EMPLOYEES/SUNDRY EXPENSES Number of man-years 3) 2 490 2 446 2 445 2 739 3 967 Cost of wages 1 286 1 231 1 213 1 141 1 409 166 Port dues 138 144 147 141 152 18 Definitions: 1) Translated into EUR, exchange rate as at 31 Dec. 2011 2) Including non-utilized credit facilities 3) 2007 figure shows number of employees 2 3
  3. 3. Color Group AS Annual Report 2011 Key events The production of Peer Gynt in Hamburg was a great success. The 50th anniversary of the Oslo – Kiel service Line operates will be included in a new pilot project for road trains. Group President Trond Kleivdal and Owner Olav Nils Sunde at the celebration in Hamburg. The 2nd of May 2011 was the 50th anniversary of the start of the Oslo - Road trains can be up to 25.2 m in length and carry 50 per cent heavier HKH Crown Prince Haakon Magnus was the guest of honour at the performance of Peer Gynt in Hamburg. Kiel service. In 1961, Jahre Line deployed the M/S Kronprins Harald on this loads than traditional heavy goods vehicles. The expectation is that this M/S SuperSpeed1 is currently undergoing a refit and when completed will feature a new pizzeria. service and the ship carried a total of almost 50 000 passengers in the scheme will lead to more efficient and environmentally friendly goods The reception on board the M/S Color Fantasy to celebrate the 50th anniversary of the start of the Oslo – Kiel service. first year of operations. Since the start, the service has carried almost traffic. 20 000 000 guests and several million tonnes of freight. The motto for the grand celebrations in Kiel was: “With an eye to the future”. Represent- M/S SuperSpeed1 undergoes refit atives of the Norwegian and German authorities, harbour management, In January, the M/S SuperSpeed1, which operates on the Kristiansand - customers and other collaboration partners attended the celebrations. Hirtshals service, resumed operations after a refit in which the vessel’s restaurant section was extended to seat a further 450 guests. The refit Peer Gynt in Hamburg was a response to an increase in traffic, particularly during the high sea- Color Line was the instigator and main sponsor of a unique performance son and holiday periods. The extension will increase capacity by approxi- of Peer Gynt in Hamburg on the 5th of May 2011. The performance was a mately 500 000 passengers a year. Norwegian-German co-production based on artistic contributions from Peer Gynt AS at Gålå. The event marked the start of a marketing cam- Germany’s best conference hotel 2011 paign to promote Norway in Germany. Key contributors included the Port M/S Color Fantasy and M/S Color Magic were voted «Conference Hotels of of Oslo, the Norwegian Seafood Export Council, the Norwegian-German the Year 2011» in Germany at the Business Diamond Awards and were also Chamber of Commerce, Innovation Norway and Norwegian commercial ranked among the top five most popular cruise ships by the users of the and industrial interests in Germany. HKH Crown Prince Haakon Magnus travel rating portal HolidayChecks. The Business Diamond Award is one was the guest of honour. of Germany’s most prestigious business travel awards. M/S Color Magic and M/S Color Fantasy are in good company: former prizewinners include 25th anniversary of Sandefjord - Strømstad the Intercontinental Düsseldorf Radisson SAS Hotel Frankfurt and the The 17th of March 1986 marked the start of the maiden voyage of the Arabella Sheraton Grand Hotel in Munich. M/S Bohus on the Sandefjord – Strømstad service. During the first year of the service the operator, Scandi Line, carried 67 000 passengers. In year Color Line voted Denmark’s best passenger shipping company 2000 Color Scandi Line AS was fully integrated as a line in Color Line AS. Danish consumers voted Color Line Denmark’s best passenger shipping On 8 May 2001 the company acquired the M/S Color Viking after a period company. The combination of the high efficiency and comfort of the ships of charter hire. was what particularly appealed to the Danes. The Danish Travel Award was presented in Copenhagen in October. The award is based on a survey Shore-based electrical power that looked at the travel and transport preferences of 400 consumers, The 10th of October 2011 saw the opening of Norway’s first shore-based conducted between January and August. electrical power facility for large vessels at Color Line’s terminal at Hjortnes in Oslo. With shore-based power the electricity is largely pro- Decision on port agreement duced from clean, renewable energy. When the M/S Color Magic and the In December, the EFTA Surveillance Authority (ESA) adopted a decision to M/S Color Fantasy have both switched to shore-based power, CO2 emis- charge Color Line EUR 18.8 million, which is equivalent to approximately sions in Oslo will be reduced by approximately 3 000 tonnes a year and NOK 145 million. The decision relates to allegations of breach of competi- NOx emissions by approximately 50 tonnes a year. This will also mean tion legislation relating to a previous port agreement in force between lower emissions of SOx and airborne particulate matter. An additional 1994 and 2005. Color Line does not agree with the decision, but has benefit is that when the ships receive power from shore, the noise gener- chosen to bring this matter to a close by accepting the charge. n ated by the auxiliary engines formerly used to produce electricity for the vessels will also disappear. Trial scheme for environmentally efficient road trains Effective from June 2011, the Norwegian Ministry of Transport decided that several stretches of road leading to and from ports in which Color 4 5
  4. 4. Color Group AS Annual Report 2011 From road to sea A sense of social responsibility – environmentally-efficient transport There has been broad political agreement for some time in Norway from ports served by Color Line were incorporated in a new trial scheme The Norwegian-controlled shipping fleet is amongst the largest and most Color Line represent a total spend in Norway of almost NOK 3.6 billion. and within the European Union that condition should be put in place to for road trains. Road trains are large heavy goods vehicles which help to modern in the world and the Norwegian maritime cluster is unique, not This accounts for approximately 8 per cent of total tourist consumption encourage the transfer of goods from road to sea and rail. Norway lies make freight traffic more efficient and environmentally friendly. least because it is so varied and comprehensive. As Norway’s largest in mainland Norway. on a peninsula in Europe and Color Line’s ports and terminals serve as In addition to economical loading and unloading operations, efficient cruise and transport operator, Color Line supplements the maritime important hubs on vital transport routes between national and interna- terminals are essential if more goods traffic is to transfer to sea and rail. cluster along the Norwegian coast and acts as an instigator and agenda- GAMING FUNDS FOR CHARITABLE CAUSES tional transport corridors. Color Line’s services represent cost-effective The Norwegian National Transport Plan stresses that integrated inter- setter in the generation and transfer of knowledge, environmental New regulations permitting gambling on Color Line ships came into force and environmentally efficient transport corridors for goods carried by modal terminals can have a beneficial impact on the profitability of innovation, restructuring and growth. in January 2011. Twenty per cent of the profits (turnover less payouts of sea to and from Norway. freight operations and will serve to strengthen the attractiveness of Color Line’s sense of social responsibility is built on the company’s winnings) go to organisations approved as recipients of lottery funding. With effect from 1 June 2011, several sections of road leading to and transport by sea and rail. n direct creation of value through its industrial activities internationally, Annually, this provision totals approximately NOK 20 million. nationally and locally. The company contributes actively to the develop- ment of infrastructure in and around the ports from which it operates SHORE-BASED ELECTRICAL POWER IN OSLO and these ports serve as vital hubs in the transport corridors to and from Color Line supports the Norwegian Shipowners’ Association’s vision of Norway. Color Line helps to nurture active local communities that play an zero-emission ships. On 10 October 2011, Norway’s first facility for shore- important part in the development of the Norwegian travel industry. based electrical power for large vessels opened at Color Line’s terminal Color Line operates one of Norway’s largest private maritime at Hjortnes in Oslo. The shore-based power project is the fruit of a partner- apprenticeship schemes. Between 2003 and 2009, the company created ship between a range of interests, including Oslo Port Authority, 539 apprentice places: 111 in the hotel operation and 428 on deck and in environmental foundation Bellona, and power grid operator Hafslund the engine room. This programme makes the company by far the biggest Nett, and forms part of the environmental treaty that Oslo City Council sponsor of apprentices in the Norwegian maritime sector. has concluded with various external collaborators. Shorebased power means that the electricity is primarily produced A FORCE TO BE RECKONED WITH IN THE TRAVEL from clean, renewable energy. When the M/S Color Magic and the M/S Color AND TOURISM INDUSTRY Fantasy have both switched to shore-based power, CO2 emissions in Oslo As a carrier of tourists from Europe, Color Line is a force to be reckoned will be reduced by approximately 3 000 tonnes a year and NOx emissions with in the Norwegian travel and tourism industry. Each year, some by approximately 50 tonnes a year. This will also mean lower emissions 550 000 foreign tourists travel to Norway on Color Line ships: 60 per cent of SOx and airborne particulate matter. An additional benefit is that when from Germany and just over 32 per cent from Denmark. the ships receive power from shore, the noise generated by the auxiliary Annually, tourists travelling on Color Line’s services account for approxi- engines formerly used to produce electricity for the vessels will also mately 3.5 million visitor days on shore. Foreign tourists travelling with disappear. n Shore based electrical power was pronounced with an arrangement on board M/S Color Magic. (Photo: A. Mathismoen) 6 7
  5. 5. Color Group AS Annual Report 2011 Director’s Report and Financial Statement Color Group Annual Report 2011 Innovating for the future Directors’ Report 2011 – greater efficiency and increased profitability Color Group AS After many years of planning and investing in new tonnage, infrastruc- and the M/S SuperSpeed2 in June 2008, the company has revolutionised ABOUT THE GROUP derivatives, currency hedging and gains on shares, as compared with a ture and expertise, Color Line’s new booking and Internet platform was a more than 150-year-old shipping tradition in the Skagerrak. Color Group AS is the parent company of Color Line AS. Color Line AS is more or less neutral effect from these items in 2011. commissioned on Monday, 16th January 2012. A new era had started for Norway’s largest – and one of Europe’s leading – companies in the field of The profit for the year after tax totals NOK 55 million, as compared the company. With the launch of this new platform all the key elements of THE FUTURE IS DIGITAL European short-sea shipping, employing approximately 2 500 man-years with NOK 337 in 2010. The parent company, Color Group AS, reported a Color Line’s modernisation strategy are now in place. The new booking- and Internet platform will play an important part in in four countries. At present, the company’s fleet numbers six vessel’s pre-tax profit of NOK 25 million, compared with NOK 182 million in 2010. fulfilling Color Line’s ambition of growing its business through ef- operating on four international ferry services between seven ports in The profit after tax was NOK 18 million for 2011, as compared with NOK 134 RENEWAL OF THE FLEET ficient distribution systems using the Internet as the primary sales Norway, Germany, Denmark and Sweden. million in 2010. The Board proposes that the profit be applied to other The modernisation programme started with an extensive fleet renewal channel. The system also plays an important role in optimising the Norway forms part of a peninsula in Europe and efficient sea transport equity. Distributable shareholders’ equity in the parent company stood at process which saw the introduction on the Oslo – Kiel service of the M/S price picture for travel products by providing the right prices for all is essential to, for example, Norwegian industry and Norwegian travel NOK 63 million as at 31 December 2011. Color Fantasy in December 2004 and the M/S Color Magic in September products at the right time. The new web portal makes it easier to and tourism. Color Line operates a clear strategy of differentiation: high- 2007. These ships mark the start of a new era in short-sea cruise experi- purchase travel products from Color Line. New travel and tourism quality cruises on the service between Oslo and Kiel in Germany and Exceptional effect on profits ences in Europe. With the launch of the M/S SuperSpeed1 in March 2008 experiences are no more than a mouse click away. n the efficient shipment of freight and passengers on the shorter routes In December, the EFTA Surveillance Authority (ESA) announced a between Kristiansand and Larvik in Norway and Hirtshals in Denmark and decision to charge Color Line AS EUR 18.8 million for breaches of the on the Sandefjord-Strømstad service. competition regulations. The decision relates to an historical port agree- Color Line has a modern and cost-effective fleet with a high degree of ment (Strømstad port) concluded in 1991 by the limited company Scandi product standardisation. Passenger numbers in 2011 totalled 4 085 938 Line AS, which at that time was operating the service between Sande- (2010: 4 129 119). This represents a reduction in the number of passen- fjord and Strømstad. Larvik Scandi Line AS took over the line in 1994, gers carried between January and December of approximately 1 per cent succeeded by Color Line in 2000. The ESA takes the view that a from 2010. On the whole, the downturn in passenger numbers can be competition restricting agreement was in force from 1994, when the attributed to lower production as a result of 145 more cancellations than Competition Act came into force, in December 2005. The ESA’s decision in the preceding year as a consequence of particularly unfavourable relates solely to historical conditions in the port of Strømstad and has no weather conditions in the latter half of 2011. Freight volume carried implications for current operations on the Sandefjord to Strømstad route. (12m-equivalents) in 2011 totalled 172 311, compared with 171 796 in 2010. Color line does not share the conclusions of the ESA, but has chosen not to appeal the decision. INCOME STATEMENT Accounting principles FINANCIAL MATTERS Color Group AS is a Norwegian limited company with its head office in Balance sheet and funding Oslo. The consolidated accounts are presented in accordance with IFRS Color Group AS focuses on securing diversified, long-term and predictable (International Financial Reporting Standards). financing. The company issued one new bond loan in 2011, which is quoted on the Oslo Stock Exchange ABN. The bond loan (COLG09) was issued in Results reported by the Group and the parent company November for a total amount of NOK 500 million, maturing in August Operating revenues totalled NOK 4 586 million in 2011, as compared with 2016. In connection with the issuing of bond loan COLG09, the company NOK 4 509 million in 2010. The operating profit before depreciation, repurchased parts of existing outstanding bond loans with shorter amortisation and charter hire was NOK 920 million, compared with NOK maturity: NOK 25.5 million of COLG04 (maturity October 2012), and NOK 969 million in 2010. Although underlying operations were satisfactory, 206 million of COLG05 (maturity 2012). bad weather during 2011 resulted in the cancellation of a large number of As at 31 December 2011, the balance sheet total of the Group was NOK departures and, moreover, the cost of bunker fuel rose. Earnings before 9 287 million. As at the same date, equity capital stood at NOK 2 060 interest and taxes in 2011 totalled NOK 308 million, compared to NOK 547 million, compared with NOK 2 398 million in 2010. The equity ratio was million in 2010. approximately 22 per cent. This includes an exceptional provision in the amount of approximately Long-term mortgages on ships/terminals/hotel have a repayment NOK 150 million related to a decision by the EFTA Surveillance Author- profile of 12 to 15 years. Total outstanding mortgage and unsecured ity (ESA) adopted in December of 2011. Group net financial expenses rose debt as at 31 December 2011 was NOK 5 527 million. Net outstanding from NOK -81 million in 2010 to NOK -230 million in 2011. Net financial items debt less bank deposits and cash stood at NOK 4 518 million as at 31 colorline.no in 2010 included approximately NOK 90 million in realised and unreal- December 2011, compared with NOK 4 635 million in 2010. Bond loans ised values on currency loans, fixed interest rate contracts, interest rate listed on Oslo Stock Exchange mature in the period between 2012 and on.enilroloc 8 9
  6. 6. Director’s Report and Financial Statement Color Group Annual Report 2011 2016. Net outstanding bond loans as at 31 December 2011 total NOK The Directors consider the working environment in the Group to be that the risk of the introduction of unwanted organisms into Norwegian but has been amended repeatedly in ways that over time have served to 2 120 million. In connection with the delivery of the high speed ferry good and will continue to maintain a sharp focus on the working environ- waters by means of ballast water exchanges is limited. undermine the Norwegian scheme relative to the terms enjoyed by Color M/S SuperSpeed2 in 2008, a 12-year operational leasing agreement was ment issues and on absence due to illness amongst both shore-based and During 2011, the company conducted testing on dynamic trim optimisa- Line’s international competitors. In 2006, the regulations were amended concluded between Oslo Line AS and Color Line Transport AS, with a seagoing personnel, reflecting the company’s policy and trends in society tion, automated weather and current data for adjusting departure plans, to apply only to shipboard safety crew, and with effect from 2008 an guarantee furnished by Color Group AS. In its loan agreements the as a whole. the testing of fuel additives, and the replacement of light sources and upper limit was introduced on the refunds payable per employee. Since company has commitments related to liquidity, equity and debt-servicing automation on-board ship with new low energy solutions. The results this maximum limit was introduced the scheme has not been adjusted ratio. All commitments had been fulfilled as at 31 December 2011. EQUAL OPPORTUNITIES/DISCRIMINATION have been favourable. to reflect increases in prices and pay, which has made the scheme less It is Color Line’s objective that there shall be full equality in the workplace In 2011, M/S Color Magic was the first large ship in Norway to be competitive over time. Color Line is working to secure conditions for Cash flow between female and male employees. Moreover, the company makes fitted with a shore-based electricity system for use in the port of Oslo. In Norwegian seafarers that are comparable to those offered by the com- In 2011, the Group’s cash flow from operational activities totalled NOK 638 every effort to satisfy the requirements of the Anti-discrimination and June 2012, her sister ship the M/S Color Fantasy will introduce equivalent pany’s competitors in the Nordic region and the European Union. This million. Net cash flow from financing activities totalled NOK -528 million, Accessibility Act, both in terms of its treatment of existing employees and equipment. Shore-based electrical power eliminates virtually all emis- work is being conducted in collaboration with Color Line’s shipboard and net cash flow from investments amounted to NOK -197 million, of in the recruitment of new personnel. sions of CO2, NOx and SOx as well as PM (particulate matter) while the personnel and their trade unions, as well as with the Norwegian Ship- which part is related to development costs in connection with the new Of the Group’s shipboard employees, 946 are women. 26 out of a vessels are docked in Oslo. owners’ Association and the Maritime Forum of Norway. booking and Internet platform. The Group’s total liquidity reserve as at total of 228 management positions are held by women. The percentage Color Line is involved as a partner in Oslo Municipality’s work on im- 31 December 2011, including granted drawing rights and liquid securities of women in shipboard management positions is relatively low since proving the quality of the air in the capital through the “Business for From road to sea and rail stood at approximately NOK 1 631 million. Ordinary planned instalments technical/maritime jobs have traditionally been dominated by men and to Climate” agreement, and the company is also involved in the WWF Baltic Color Line’s services represent cost-effective and environmentally on the Group’s interest-bearing debt to credit institutions and bond loans date fewer women hold the necessary certificates. Sea Initiative, as well as being a sponsor of BELLONA’s Partnership for the efficient transport corridors for goods carried by sea to and from in 2012 will amount to approximately NOK 643 million. Of the 705 man-years worked on shore, 420 are worked by women. Environment. Norway, with long term port agreements in Kiel, Hirtshals, Strømstad, There is one woman in the Group management. Of shore-based manage- Kristiansand, Larvik, Sandefjord and Oslo. The authorities have stated Financial risk ment positions women hold equals approximately 40 per cent. THE BOARD OF DIRECTORS, CORPORATE GOVERNANCE that their aim is to contribute to bringing about a transfer of freight and The Group is exposed to foreign exchange risk related to fluctuations AND SHAREHOLDERS goods traffic from roads to sea and rail services. in the value of the NOK against other currencies, particularly the USD, SAFETY O.N. Sunde AS indirectly owns 100 per cent of the company’s 71 800 000 Color Line’s ports serve as important hubs on vital transport routes EUR and DKK. The Group is also exposed to interest rate risk, and fluc- Color Line works continuously to prevent situations which might have shares. O.N. Sunde AS is wholly owned by Director and Group President between national and international transport corridors. In addition to tuations in the price of bunker fuel products. The Group makes use of negative consequences for human life and health and the environment. In Olav Nils Sunde and his family. economical loading and unloading operations, efficient terminals are es- financial instruments to curb the risk of fluctuations in cash flow. As at 2011, the company continued to develop its electronic systems for safety The company’s corporate governance policy is based on the Norwe- sential if more goods traffic is to transfer to sea and rail. The Norwegian the balance sheet date, approximately 67 per cent of the Group’s interest- management, incident management and risk assessment. The company gian Code of Practice for Corporate Governance. Further information on National Transport Plan stresses that integrated intermodal terminals will bearing debt was hedged by means of fixed interest rate agreements and also conducted extensive safety training and safety courses for ship- corporate governance can be found in the section headed “Corporate strengthen sea and rail transport services. With effect from 1 June 2011, approximately 40 per cent of the company’s estimated cost of bunker board and shore personnel throughout the year. Governance 2011”. several sections of road leading to and from ports served by Color Line fuel for 2012 was hedged by means of derivative contracts for bunker. The company is now beginning to see the results of this work in the operates were incorporated in a new trial scheme for road trains. Road The company also had various currency derivative contracts in place for form of a reduction in the number of routine deviations. OUTLOOK/EVENTS AFTER THE BALANCE SHEET DATE trains are large heavy goods vehicles which play a part in making goods operations budgeted for 2012. The Group has limited market risk expo- Large parts of the company took part in the SkagEX11 exercise (in Sep- Equal market conditions traffic more efficient and environmentally friendly. sure as its business is directed at a market comprising a large number tember 2011). Since this exercise the contingency planning procedures Color Line is now the only large shipowner under Norwegian ownership of customers. have been audited. A project aimed at reducing the quantity and number and headquartered in Norway with a fleet flying the Norwegian flag that Outlook for 2012 of products harmful to health was conducted during the course of the operates regular scheduled freight and passenger services throughout The Group’s main objective is to improve profitability and to continue Continued operation as a going concern year and has resulted in positive environmental and safety gains. There the year between Norway and the Continent. Stable and internationally to maintain cost-effective operations. The Group is expecting to record On the basis of the above report on the Group’s results and financial were no major accidents in 2011 involving serious injury or environmental competitive framework conditions have been and continue to be a pre- a satisfactory profit in 2012. The Directors are of the opinion that the position, the Directors confirm that the annual financial statements have pollution. requisite for the Group’s substantial investments, seen from a Norwegian company is well equipped to meet the challenges that 2012 will bring. been prepared on the assumption that operations will continue as a perspective. The refund scheme for seafarers was introduced in 2002, going concern, and that the Report provides a correct picture of the THE ENVIRONMENT assets, liabilities, financial position and profits or losses of the parent During 2011, Color Line maintained a particular focus on reducing company and the Group. discharges to the sea and air and reducing energy consumption. Oslo, 26 April 2012 Discharges to the sea continue to be minimal. 2011 was the first full WORKING ENVIRONMENT AND PERSONNEL year in which all use and exchanges of ballast water were regulated In 2011, Color Line recorded a total of approximately 2 490 man-years. under the company’s plan for processing ballast water (Ballast Water Average absence due to illness in the Group in 2011 was approximately 4.1 Management Plan) in compliance with the Norwegian Ballast Water Man- Morten Garman Olav Nils Sunde Alexander Sunde Bjørn Paulsen per cent for shore-based personnel (5.2 per cent in 2010), and approxi- agement Regulation of 2010. The company’s ships use a minimum of ballast Chairman of the Board Director/Group President Director Director mately 8.3 per cent for seagoing personnel (9.8 per cent in 2010). water and this, in combination with our own stringent procedures, means 10 11
  7. 7. Director’s Report and Financial Statement Color Group Annual Report 2011 Income statement Color Group AS PARENT COMPANY (NAS) Amounts in TNOK Group (IFRS) 2011 2010 Note 2011 2010 135 457 133 761 Sales revenues 3, 7 4 585 546 4 508 912 135 457 133 761 Total operating revenues 4 585 546 4 508 912 0 0 Cost of sales -1 549 536 -1 539 917 -7 955 -7 717 Cost of wages 4, 18, 19, 20 -1 285 836 -1 230 750 -5 154 -4 952 Other operating expenses 7, 15, 19 -830 148 -769 133 -13 109 -12 669 Total operating expenses -3 665 520 -3 539 800 122 348 121 092 Operating profit before depreciation, amortisation, charter hire and leasing expenses 920 026 969 112 -22 034 -22 034 Depreciation, amortisation and write-downs 4, 8, 9, 10 -343 169 -299 337 0 0 Other exceptional items 2 -150 222 0 0 0 Charter and leasing expenses 15 -118 276 -122 568 100 314 99 058 Earnings before interest and taxes 308 359 547 207 -75 623 82 925 Net financial income/costs 16, 17 -229 925 -81 279 24 691 181 983 Pre-tax income 78 434 465 928 -7 075 -47 947 Tax expense 24 -23 066 -128 724 17 616 134 036 Profit for the year 55 368 337 204 Comprehensive income statement Profit for the year 55 368 337 204 Other income and expenses Currency translation differences 403 -1 359 Net gain/loss bunker hedging -13 122 -992 Total other income and expenses net after tax -12 719 -2 351 Total profit for the year 42 649 334 853 Majority shareholders’ share of total profit for the year 42 649 334 853 12 13
  8. 8. Director’s Report and Financial Statement Color Group Annual Report 2011 Balance sheet Cash flow statement Color Group AS Color Group AS PARENT COMPANY (NAS) Amounts in TNOK GROUP (IFRS) PARENT COMPANY (NAS) Amounts in TNOK GROUP (IFRS) 2011 2010 ASSETS Note 2011 2010 2011 2010 FOR THE PERIOD 1 JANUARY TO 31 DECEMBER Note 2011 2010 Non-current assets 24 691 181 983 Pre-tax profit 78 434 465 928 Intangible assets 22 034 22 034 Depreciation,amortisation and write-downs 8, 9 343 169 299 337 0 0 Software and licences 2, 9 466 679 0 Loss/gain on disposals of non-current assets -963 153 108 727 130 761 Goodwill and other intangible assets 4, 9, 10 671 301 671 301 9 921 -22 891 Changes in value financial assets -2 575 -4 372 108 727 130 761 Total intangible assets 1 137 980 671 301 -1 346 2 996 Changes in value non-current financial liabilities -1 346 2 996 Property, plant and equipment 0 -1 827 Changes currency financial liabilities 0 -1 827 0 0 Construction work in progress 2, 4, 8 0 378 112 0 0 Pension costs in excess of premium paid 20 14 868 12 690 0 0 Land, buildings and other real estate 4, 8, 13 623 265 653 538 -4 630 -57 955 Unrealised foreign exchange gain/loss, currency loans 16 -2 439 -58 406 0 0 Fixtures and equipment 4, 8, 13 59 002 49 363 0 0 Ships 2, 4, 8, 13 5 398 121 5 526 463 0 0 Unrealised foreign exchange gain/loss, non-current receivables 16 399 1 026 0 0 Total property, plant and equipment 6 080 388 6 607 476 0 0 Translation differences non-current assets 8 -178 13 679 Financial fixed assets 0 0 Change in interest rate contracts CIRR 24 362 27 633 2 814 345 2 792 511 Investments in subsidiaries 5, 6 0 0 0 0 Translation differences foreign subsidiaries 403 -1 359 3 118 322 3 698 977 Non-current receivables and investments 6, 11, 17, 20 394 982 427 134 0 0 Changes in bunker contracts, equity -13 122 -992 5 932 667 6 491 488 Total financial fixed assets 394 982 427 134 6 041 394 6 622 249 Total non-current assets 7 613 350 7 705 911 Changes in working capital Current assets 0 0 Changes in inventories 2 782 5 272 0 0 Inventories 12 147 339 150 121 34 343 132 442 Changes in accounts receivable and other receivables 34 897 10 252 242 410 276 753 Accounts receivable and other receivables 17 460 967 596 464 -37 332 -128 798 Of which, change in outstanding account with owner 0 0 12 970 22 891 Other financial assets 17 12 970 22 891 35 257 59 982 Changes in marketable shares 35 257 59 982 0 35 257 Marketable shares 0 35 257 996 033 1 113 524 Bank deposits and cash 17, 25 1 052 389 1 138 648 -274 017 283 432 Changes in accounts payable and other current liabilities 124 384 38 761 1 251 413 1 448 425 Total current assets 1 673 665 1 943 381 7 292 807 8 070 674 TOTAL ASSETS 9 287 015 9 649 292 Total 197 320 114 267 -191 268 471 398 Net cash flow from operations 638 332 870 753 2011 2010 EQUITY AND LIABILITIES Note 2011 2010 Contributed capital 0 0 Payments, purchases of investments, ships 8 -152 034 -34 166 143 600 143 600 Share capital (71 800 000 shares, nominal value NOK 2.- per share) 6, 21, 22 143 600 143 600 0 0 Pre-paid investments in ships 72 682 -72 682 1 478 436 1 478 436 Premium fund 22 1 478 436 1 478 436 0 0 Payments, purchase of equipment 8 -21 523 -7 531 1 622 036 1 622 036 Total contributed capital 1 622 036 1 622 036 0 0 Payments. purchase of land, buildings and other real estate 8 -11 071 -9 490 172 188 515 025 Other equity 22 438 091 776 459 0 0 Payments, purchase of construction work in progress 8 -86 170 -104 658 1 794 224 2 137 061 Total equity 2 060 127 2 398 495 LIABILITIES 0 0 Liabilities 20 15 298 0 0 0 Proceeds of sale of equipment 8 1 497 0 51 771 57 441 Deferred tax 23 934 216 928 492 0 -53 286 Payments, purchases of other investments 0 0 51 771 57 441 Total liabilities 949 514 928 492 Non-current liabilities 0 -53 286 Net cash flow from investments -196 619 -228 527 3 282 330 3 610 553 Debt to credit institutions 13, 17 2 765 215 3 360 544 2 101 959 1 927 733 Bond loans 13, 17 2 101 959 1 851 233 49 047 49 048 Proceeds of raising new debt to credit institutions 49 047 49 048 17 132 18 478 Other non-current liabilities 17 17 132 18 478 477 578 1 380 233 Proceeds of raising new bond debt 477 578 1 380 233 5 401 421 5 556 764 Total non-current liabilities 4 884 306 5 230 255 -372 640 -351 331 Repayment of debt to credit institutions -388 803 -373 114 Current liabilities -303 352 -515 000 Instalments on bond loans -303 352 -515 000 45 391 319 408 Trade payables and other current liabilities 14, 17 750 434 626 050 580 655 290 825 Payments, interest-bearing receivables 7 821 8 385 0 0 Current share of non-current liabilities 13, 17 642 634 466 000 -394 843 -356 976 Proceeds, non-current receivables -393 078 -143 350 0 0 Other financial liabilities 0 0 37 332 128 798 Change in outstanding account/owner 22 815 -10 930 45 391 319 408 Total current liabilities 1 393 068 1 092 050 7 292 807 8 070 674 TOTAL EQUITY AND LIABILITIES 9 287 015 9 649 292 73 777 625 597 Net cash flow from financing -527 972 395 272 Oslo, 26 April 2012 -117 491 1 043 709 Net change in cash and cash equivalents resources -86 259 1 037 498 1 113 524 69 815 Closing balance cash and cash equivalents resources 1 Jan. 1 138 648 101 150 Morten Garman Olav Nils Sunde Alexander Sunde Bjørn Paulsen Chairman of the Board Director/Group President Director Director 996 033 1 113 524 Closing balance cash and cash equivalents resources 31 Dec. 1 052 389 1 138 648 14 15

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