Color Group AS is the parent company of Color Line AS, Norway's largest short-sea cruise and freight company operating four international ferry services between Norway, Germany, Denmark and Sweden. In 2010, Color Line transported over 4 million passengers, nearly 1 million cars, and over 170,000 trailers. The company has invested over 7.5 billion since 2004 in new ships, ports, and infrastructure to modernize its fleet. Color Line had annual revenues of approximately 4.5 billion NOK in 2010 and employs around 2,446 people across four countries.

1. Color Group AS Annual Report 2010

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
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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.
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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. 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. 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. 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. 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. 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

10. Notes Color Group Annual Report 2010
time material risks and rights have passed over to the buyer, the Group no tax liabilities/tax assets is calculated on all differences between the value Intangible assets Translation differences arise in connection with currency differences
longer has ownership or control of the goods, the income amounts can be of assets and liabilities in the accounts and tax value, with the exception of: Intangible assets procured separately are entered in the balance sheet when consolidating foreign enterprises.
reliably measured, it is probable that the financial gain linked to the sale is at actual value at time of procurement. Intangible assets are depreciated
● Temporary differences connected with goodwill which is not tax
passed to the Group and that costs incurred in connection with the sale can according to the straight line method over the asset’s anticipated useful Pension liabilities and pension costs
deductible.
be reliably measured. live. If the useful live of the asset is not limited and economic use cannot be The companies in the Group have different pension schemes. In general,
● Temporary differences related to investments in subsidiary companies
estimated, the asset is not depreciated, but is tested annually with regard pension schemes are financed by payments of premium to life insurance
when the Group controls when the temporary differences will be
Income is calculated as follows: to fall-off in value. companies. During the course of 2008, the shore-based employees have for
reversed and this is not expected to take place in the foreseeable future.
Sale of services (travel) the most part been transferred from a defined benefit pension scheme to
Sale of services is calculated at the start of a voyage, that is to say the time Deferred tax assets is entered in the accounts when it is probable that the Goodwill a defined contribution pension scheme. In this scheme, expenses are equal
of transfer of risk. company will have sufficient taxable profit in subsequent periods in order The difference between procurement cost at takeover and actual value of to contributed premium.
to utilize the tax assets. Earlier deferred tax assets is entered in the ac- net identifiable assets at the time of takeover is classified as goodwill. The pension scheme for the seagoing employees is a defined
Sales of goods counts by the company to the extent that it is probable that the company Goodwill is entered in the balance sheet at procurement cost with the benefit scheme. Pension funds are evaluated at actual value. Net li-
Sales of goods in the Group are recorded when delivery of the goods is can make use of the deferred tax assets. Likewise, the company will reduce deduction of any accumulated write-downs. Goodwill is not depreciated but abilities linked to the defined benefit scheme are calculated separately in
made, this being the time of transfer of risk. Payment of retail sales is deferred tax assets to the extent the company no longer considers it prob- is tested annually in respect of any impairment losses. The impairment test each scheme by estimating the amount of future benefits earned by the
usually in the form of cash payment or by credit card. Such sales are taken able that it can utilize the deferred tax assets. in value is carried out by allocating goodwill to the Group’s cash generating individual employee through work performed during the year under
to income, including credit card fees that are incurred at the time of the Deferred tax liabilities and deferred tax assets is measured on the basis units that are expected to benefit from the merger. Assets and liabilities review and in earlier periods. These future benefits are discounted in
transaction. Fees are entered as sales costs. of anticipated future tax rates in the companies in the Group in which tem- taken over in connection with mergers are entered at actual value in the order to calculate the present day value, and actual value of the pen-
porary differences have arisen. Group’s opening balance sheet. sion funds is deducted in order to find net liabilities. The discount rate
Interest earned Deferred tax liabilities and deferred tax assets are entered at nominal is equal to the balance day interest on Government bonds with
Interest earned is taken to income in accordance with the true rate of value in the balance sheet. Leasing, plant and equipment particularly high creditworthiness and with approximately the same
interest method. Leases in which a large part of the risk and earnings linked to ownership maturity as the Group’s liabilities. The schemes are based on a linear
Tangible non-current assets continue to be in the hands of the lessor are classified as operational earning model. When the benefit in the schemes are changed, the share
Income from dividends Assets that are classified as long-term in nature or use are entered as leases. The company’s leases are mainly operational leases in which lease of the increase in the benefit that the employee has earned the right
Dividends from investments are recorded when the Group has an uncondi- non-current assets. Tangible non-current assets are mainly comprised payments are an operating expense distributed over the lease period. to is entered in the income statement in accordance with the linear
tional right to receive the dividend. of ships, port facilities, land, buildings and machines/equipment. Tangi- method over the remaining earning period. Costs are entered in the income
ble non-current assets are entered at procurement cost including costs Non-current assets retained for sale and winding-up of business statement if the employee has already received an unconditional right
Public subsidies linked to the procurement less deductions for depreciation and write-down Non-current assets and groups of non-current assets and liabilities to an increased benefit. Estimated deviations that are not entered in the
Public subsidies are entered when it is reasonably certain that the company in respect of reduced value. Subsequent major embellishment costs are are classified as held for sale if the book value is to be regained balance sheet at the time of changeover to IFRS are zeroed and entered
will fulfil the subsidy conditions and the subsidies will in fact be received. added to the value of the non-current assets in the balance sheet or are through a sales transaction, instead of continued use. This is only directly against shareholders’ equity. Estimated deviations arising after
Public subsidies that compensate the business for disbursements are taken entered separately when it is probable that future financial benefits linked considered to be fulfilled when a sale is highly probable and the non- 1 January 2006 are entered in the income statement and distributed
to income as and when the costs are incurred. Subsidies are deducted from to the expense will be measured reliably. Other repairs, classification and current assets are available for immediate sale in their present form. over the average remaining period to the extent that these exceed 10
the expense to be covered by the subsidy. maintenance costs, including costs for the docking of ships are entered in Management must have committed the company to a sale and it must be percent of the present value of the defined benefit pension liabilities and
the income statement in the period when the expense is incurred. Land expected that the sale will be implemented within one year from the date actual value of the pension funds.
Foreign currency is not depreciated. Other property plant and equipment is depreciated in of classification. In previous years a liability was calculated in respect of a number of
Foreign currency contracts in EURO, USD, DKK are to a great extent linked to accordance with the straight line method so that the procurement cost of Non-current assets and groups of non-current assets and liabilities re- employees who would probably retire under the early retirement scheme,
current income and expenses in the Group. Foreign exchange gain/foreign non-current assets is depreciated to residual value over anticipated useful tained for sale are valued at earlier book value for real value less sales cost, but this now applies to those employees who are included in the scheme.
exchange loss on reconciliation is from and including 2010 referred to the live, which is: whichever is the lowest. Depreciation on assets classified for sale ceases This change was made in 2008.
relevant income items in the accounts. See Note 7. The value of current Ships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-35 years from the date of classification. Pension cost is calculated in respect of those who have retired under
contracts is included in financial items in the accounts. Buildings/port facilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-30 years Operations which are to be discontinued are to be reported separately the early retirement scheme.
Machines and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-10 years in the income statement. Figures for the preceding year are to be adjusted
Cost of loans for comparison purposes. Provisions
Cost of loans that can be directly related to the acquisition of qualified The useful live of tangible non-current assets and the residual value is re- A provision is entered when the Group has a commitment (legal or
assets are capitalised as part of the relevant asset’s expenses until the assessed every balance day and amended if necessary. In respect of the Inventories self-imposed) resulting from an earlier occurrence and it is probable that
non-current asset is ready for its intended use. Such loan expenses are Group’s ships, these are broken down into components having high wear Inventories comprise trade goods, consumables and bunkers and are evalu- a financial settlement will take place as a result of this commitment and
capitalised as part of the asset’s procurement cost when it is probable that and tear and components with low wear and tear. Components with high ated at cost price or net sales value less sales costs, whichever is lowest. the amount can be reliably measured. When a provision in the accounts is
this will result in future financial benefits for the Group and the expenses wear and tear are depreciated without residual value. Scrap value is es- The FIFO method is used in relation to procurement cost. measured by applying the cash flows necessary to pay for the commitment,
can be measured in a reliable manner. timated every year-end, and any changes in estimates of scrap value are the amount entered in the balance sheet is the present value of these cash
Loan expenses that can be referred to new loans are recorded under entered in the accounts as a change in estimate. Cash and cash equivalents flows.
liabilities in the balance sheet and amortized over the duration of the loan. Gain and loss upon disposal are entered in the income statement and Cash and cash equivalents comprise cash in hand and bank deposits. Restructuring provisions are entered when the Group has approved a
Other loan expenses are recorded in the income statement during the make up the difference between sales price and value in the balance sheet. detailed and formal restructuring plan and the restructuring has either
period when they are incurred. Property under construction is classified as a non-current asset and Equity started or been publicised. Provisions for restructuring comprise only di-
entered at cost price until production or development is completed. Prop- Ordinary shares are classified as share capital. Expenses directly connected rect costs resulting from and necessary for the restructuring, and are not
Taxes erty under construction is not depreciated until the non-current assets are with the issuing of new shares with the deduction of tax, are entered as a part of the normal operations of the unit.
Tax costs comprise tax payable and changes in deferred tax. Deferred taken into use. reduction of remuneration received in equity.
18 19

11. Notes Color Group Annual Report 2010
Conditional liabilities and assets Bunkers hedging appurtenant income. Goodwill in the parent company is depreciated ac- NOTE 3 SEGMENT REPORTING
Conditional liabilities are not entered in the financial statements. Informa- The Group makes use of financial derivates earmarked as hedging instru- cording to the linear method over the expected lifetime of goodwill. Segment information is presented for each business area. This structure
tion is provided on material conditional liabilities, but conditional liabilities ments in connection with cash flows that are extremely probable connected is based on a format for information to Group Management. Purchase and
where the probability of the liabilities arising is low are excepted. A with the procurement of bunkers for the ships. This hedging is documented NOTE 2 MAJOR INDIVIDUAL TRANSACTIONS sales of services within the Group are based on the arm length principle.
conditional asset is not entered in the annual accounts, but information as being highly effective when entering into agreements and in subsequent The purchase and sale of assets, investment liabilities The Group’s operations take place outside Norway. No internal result and
is provided if there is a probability that a benefit will be ascribed to the measurements as it sets off price changes in cash flows. Hedging account- Rebuilding of SuperSpeed1 balance based on geographical division is issued.
Group. ing is applied. Any inefficient part of a gain or loss will be immediately reg- In 2010, a contract was concluded for the rebuilding of SuperSpeed1 in order
istered in the income statement. to increase passenger capacity. The work will take place at a shipyard in The Group’s main business areas
Occurrences after the closing of the balance sheet Concluded hedging contracts are entered at actual value on balance Finland in January 2011. An advance of approx. NOK 72 million has been paid. The business area Cruise is legally organised in Color Line Cruises AS, which
New information after closing of the balance sheet concerning the com- date and changes in actual value are entered against other income and This amount has been entered in the accounts as a short-term receivable. markets and sells cruises, conference travel and hotel packages for indi-
pany’s financial position on balance day is taken into account in the annual expenses for the period. When hedging contracts are exercised, all earlier viduals and groups/organizations between Norway and Germany. Freight
financial statement. Occurrences taking place after balance sheet day that gains and losses are transferred from equity and included in the cost price A new booking and Internet platform operations are also included. The business area transport is legally organ-
do not affect the company’s financial position on balance sheet day but will of bunkers. In 2007, an agreement was concluded on the development/delivery of a new ized in Color Line Transport AS which markets and sells cost efficient trans-
effect the company’s financial position in the future are reported if they are booking system and a new Internet platform. Commissioning has been de- port services between Norway, Sweden and Denmark for individuals, groups
of material importance. Principles applicable to the parent company only layed. The system is due to become operative in 2011. and organizations. Freight business is also included in addition to the sale
Royalty of travel and hotel packages.
Financial instruments Operating revenues in the parent company refer for the most part to roy-
Financial assets and financial liabilities are entered in the Group alty income. Key figures from the business divisions Amounts in TNOK
Balance Sheet when the Group becomes a party to the contractual In connection with the reorganisation of Color Group, the ferry business Cruise Transport Group Cruise Transport Group
conditions in the instruments. The Group’s financial instruments are in Color Group ASA was transferred to Color Line AS with effect from 1998. 2010 2010 2010 2009 2009 2009
classified in the following three categories: At fair value through profit or The rights to the use of the name and trademarks and use of the developed Operating income 2 064 850 2 444 062 4 508 912 1 967 684 2 632 025 4 599 709
loss, loans and receivables, and other financial liabilities at amortised cost. shipping lines, quay rights etc. were not subject to takeover. Royalty agree-
ments have been concluded between the companies regulating Color Line’s Operating expenses -1 629 496 -1 910 304 -3 539 800 -1 571 219 -1 966 453 -3 537 672
Financial instruments that are of a long term nature are included in
Sale of non-current assets/restructuring 0 0
financial non-current assets and long term liabilities. use of rights connected with the ferry business and remuneration for such
Ordinary depreciation -212 438 -86 899 -299 337 -197 941 -104 353 -302 294
use.
Charter hire, leasing expenses -7 016 -115 552 -122 568 -8 584 -124 037 -132 621
Financial assets
Operating profit/segment profit 215 900 331 307 547 207 189 940 437 182 627 122
Financial assets at fair value in the income statement are first entered Shares in subsidiary companies
on the balance sheet at fair value on the day the contract is concluded Investments in subsidiary companies are evaluated according to the cost Net financial expenses -81 279 256 173
and thereafter measured at actual value on each balance sheet day. method. Group contributions from the parent company to subsidiary com- Pre-tax result 465 928 883 295
Any transaction expenses are entered in the income statement panies after tax are entered in the accounts as income on the investment
immediately. Trade receivables and other short term receivables are first in the subsidiary company. Dividend received and Group contribution from Tax costs -128 724 -241 517
registered in the accounts at actual value and thereafter at amortised the subsidiary company is entered in the accounts as increase in the invest-
cost corrected in respect of any written-down amount. Current receivables ments in the subsidiary company. Dividend received and paid out and Group Profit for the year 337 204 641 778
having a maturity of less than 3 months or receivables evaluated as contributions and other contributions are taken to income in the same year
insignificant are not normally discounted. Earned services that have as they are allocated in the subsidiary company. Segment assets 4 757 418 1 975 653 6 733 071 4 901 776 1 908 738 6 810 514
Non-allocated assets 2 916 221 1 995 860
not been invoiced are taken to income on balance day and entered as
Total consolidated assets 9 649 292 8 806 374
receivables. The main rule for evaluation and classification of assets
and liabilities in the parent company
Segment liabilities 3 219 995 1 152 535 4 372 530 3 567 501 1 036 989 4 604 490
Financial liabilities Assets for permanent ownership or use are classified as non-current as- Non-allocated liabilities 2 878 267 1 967 830
Financial liabilities at actual value in the income statement are entered on sets. Other assets are classified as current assets. Receivables for repay- Total consolidated liabilities 7 250 797 6 572 320
the balance sheet for the first time at the actual value on the date the ment within one year are classified as current assets. Equivalent criteria
contract is concluded and measured thereafter at actual value on each bal- are applied in the classification of current and non-current liabilities. Non- Investments during the period (gross) 15 269 27 991 43 260 3 670 20 809 24 479
ance day. Any transaction expenses are entered on the income statement current assets are evaluated at procurement cost and written down to ac- Non-allocated investments 112 432 144 629
immediately. tual value when the drop in value is not considered to be of a short-term Total consolidated investments 155 692 169 108
Interest bearing loans are first entered on the balance sheet at actual nature. Non-current assets having a limited financial lifetime are subject to
value with the deduction of transaction expenses. Subsequent accounting a depreciation plan. Long-term loans are entered in the balance sheet at
is at amortised cost, any difference between cost and redemption amount the nominal amount received at time of establishment. Current assets are NOTE 4 UNCERTAIN ESTIMATES period in which the estimates are changed. Actual values can be shown to
is calculated over the period of maturity as part of the effective interest valued at procurement cost or actual value, whichever is the lowest. Shares The estimates that form the basis for items in the income statement and deviate from these estimates. Both estimates and presumptions are based
rate. in a trade portfolio are appraised at actual value on balance day. Changes balance sheet have been subject to appraisal. The estimates are based on on continued operation as a going concern.
Accounts payable and other current liabilities are first measured at in value are entered in the income statement. Current liabilities are entered presumptions obtained from external sources such as the Norwegian Ac- Leasing expenses are presented on a separate line in the income state-
actual value and thereafter at amortized cost. Current liabilities that fall in the balance sheet at the nominal amount received at time of transaction. counting Foundation and the capital market. Estimates are also based on ment and are evaluated as operational in accordance with the IAS guide-
due within three months or liabilities considered as insignificant are not the company’s long term forecast submitted in connection with the annual lines. Management has evaluated the lease situation in relation to the
normally discounted. Income paid in advance on balance sheet day is Operating expenses budget process in addition to historical experience in the company. Chang- SuperSpeed2 ferry and has determined that the relevant criteria linked to
entered as a liability. Expenses in the parent company are expensed in the same period as the es in accounting estimates are entered in the income statement during the operational leases are fulfilled.
20 21

12. Notes Color Group Annual Report 2010
Depreciation of property, plant and equipment is based upon the future cash flows will change the present day value of the cash flows. Such The situation with regard to related parties: Amounts in TNOK
anticipated lifetime of the acquisition. The ships represent the highest changes could bring about a requirement for the writing-down of goodwill. Current receivable Long term receivable Liabilities
value of capital acquisitions. Ships are divided into component parts and The annual cash flows on which calculations are based are also founded on Balance sheet 2010 2009 2010 2009 2010 2009
depreciated at different rates as the useful live of the individual compo- the company’s long term forecast presented in connection with the annual O.N. Sunde AS 319 343 249 044 265 000 265 000
nents in the ships will vary. Changes in investment decisions, the market budget process. Estimated interest levels in the calculation are based on Companies controlled by O.N. Sunde AS 59 369 262 153 262 153
Total 319 343 308 413 265 262 265 153 262 153
situation and technological development may affect the depreciation those available on the market. See also Note 9.
period. This appraisal is made at the end of each year. In the opinion of The Group has outstanding vendor’s credit from the sale of ships in Amounts in TNOK
management, there is no basis for changing depreciation periods. 2008. The remaining amounts are assessed annually in relation to possi- Cost of leasing ships Interest earned Cost of sales
Profit 2010 2009 2010 2009 2010 2009
The calculation of pension liabilities is based on several financial condi- ble loss. Evaluations have not revealed any requirement for write-downs in
O.N. Sunde AS 36 845 20 566
tions as shown in the note concerning calculation. The calculations have 2010.
Companies controlled by O.N. Sunde AS 108 536 115 454 631 1 311 23 531 22 243
been carried out by an external actuary based on conditions applying in ESA, EFTA’s supervisory body decided in December 2009 to commence
Total 108 536 115 454 37 476 21 877 23 531 22 243
the market, including future growth in wages. These presumptions are ap- competition-related investigations into Color Line and the company’s port
praised by management and in their best estimate are considered to be agreements in connection with the Sandefjord – Strømstad service. Com-
Intercompany accounts between the current company and companies in the Group Amounts in TNOK
reasonable. Any change in these estimates will have an effect on future petitors of Color Line brought the case before the Norwegian Competition
Receivables 2010 Receivables 2009 Liabilities 2010 Liabilities 2009
results. Authorities in 2006. As the case also relates to Sweden it was transferred
Color Hotels AS -1 403 -978
Goodwill is based on the assumption that discounted future cash flows to ESA. The company considers that Color Line has at all times acted in line
Color Line AS 3 342 422 3 799 453
are sufficient to cover the present day value of goodwill. There is uncer- with competition law and regulations.
Color Line Danmark AS 40 040
tainty related to these cash flows. A change of presumptions and estimated
Color Hotel Skagen AS 26 086 26 627
Total 3 408 548 3 826 080 0 0
NOTE 5 SUBSIDIARY COMPANIES
The Group comprises the parent company, Color Group AS. The following subsidiaries are owned directly and indirectly Amounts in TNOK
Registered Profit Equity Stake Book value in NOTE 7 INCOME AND EXPENSES
office 2010 31.12.2010 balance sheet Total operating income comprises the following items: Amounts in MNOK
Owned by Color Group AS (parent company) 2010 2009
Color Line AS Oslo 173 091 3 206 325 100 2 792 411
Passenger revenues 3 883 3 996
Color Hotels AS Oslo 22 1 446 100 100
Freight revenues 414 400
Total direct ownership 2 792 511
Other 186 203
Companies owned indirectly Share capital
Effect of foreign currency trading 26
Owned by Color Line AS
Total 4 509 4 599
Color Line Cruises AS Oslo 430 520 100
Color Line Transport AS Oslo 414 142 100
Color Line Crew AS Oslo 3 033 100 Total other operating expenses comprising the following items: Amounts in MNOK
Color Line Marine AS Sandefjord 2 250 100 2010 2009
Color Line Verksted AS Sandefjord 4 000 100
Cost of technical operation 241 221
Bergen Line AS Oslo 100 100
Other operating expenses on board 191 193
Norway Line AS Oslo 100 100
Other operating expenses ashore etc. 362 386
Color Scandi Line AS Oslo 100 100
Effect on foreign currency trading -25
Owned by Color Line Cruises AS
Total 769 800
Color Line GmbH Kiel 26 (EUR) 100
Terminalbygget AS Oslo 100 100 The Group buys and sells foreign currency based on anticipated income and expenses in the respective currency. From and including 2010, the result of this trading is recognised in the
I/S Jahre Line Oslo 100 relevant income statement in the accounts as shown above. The effect linked to cost of sales in the amount of +NOK 2 million is additional. Unrealized changes in value are presented
under financial items. Previously both realized and unrealized effects were presented as financial items. In 2010 realized effects entered under operations amount to NOK +53 million while
Owned by Color Line Transport AS unrealized effects entered under financial items amount to +NOK 6 million, total NOK 59 million.
Color Hotel Skagen AS Skagen 5 700 (DKK) 100
Color Line Danmark AS Hirtshals 5 000 (DKK) 100 Parts of the bunker’s consumption onboard the ships are hedged. The contracts are hedged in the accounts in that unrealized effects are temporarily entered against other income and
expenses are entered in the income statement in the same period as the hedged volume is included in cost of sales. In 2010, hedging had an effect of + NOK 17 million. This effect is entered
Hirtshals Skipsproviantering AS Hirtshals 500 (DKK) 100
as a reduction in bunker’s expenses. – NOK 1 million was entered against other income and expenses in 2010. The equivalent figure in 2009 was + NOK 13 million.
Larvikterminalen AS Oslo 100 100
NOTE 6 RELATED PARTIES company accounts is calculated at the equivalent rate Color Group AS pays
Color Group AS is owned by ONS Invest II, a company owned by Olav Nils for external loans.
Sunde and his family. All the companies included in the O.N. Sunde Group SuperSpeed2 is owned by Oslo Line AS, which is owned by O.N. Sunde AS.
and its owners are related parties. Related parties also include Directors, the The company charters the ship from Oslo Line AS at an annual rate based on
Group President and the CEO in the different business areas. Transactions commercial principles equivalent to the level that could be achieved on an
between related parties are entered on specific accounts. The external fi- equivalent market.
nancing of all companies in the Group is mainly handled by Color Group AS. The company purchases clothing for retail sales from Voice Norge AS at
The company then lends to other companies in the Group. Interest on inter- market prices. This company is part of the O.N. Sunde Group.
22 23

13. Notes Color Group Annual Report 2010
NOTE 8 TANGIBLE NON-CURRENT ASSETS, ASSETS HELD FOR SALE Amounts in TNOK NOTE 10 TANGIBLE NON-CURRENT ASSETS, COLOR GROUP AS Amounts in TNOK
Ships Investments in Equipment Land, buildings and Property under Total Goodwill/
leased ships other real- estate construction Intangible assets
Procurement cost Cost price 1 Jan. 444 677
Procurement cost as at 1 Jan. 2009 6 815 909 200 484 640 1 152 617 130 531 8 583 897 Additions in the year
Additions 12 854 5 976 5 736 5 127 142 923 172 616 Disposals in the year
Disposals -3 508 -153 178 -156 686 Cost price 31 Dec. 444 677
Translation difference -9 104 -52 147 -61 251 Acc. depreciation 1 Jan. 291 882
Procurement cost as at 31 Dec. 2009 6 825 255 6 176 328 094 1 105 597 273 454 8 538 576 Ordinary depreciation in the year 22 034
Disposals in the year
Procurement cost as at 1 Jan. 2010 6 825 255 6 176 328 094 1 105 597 273 454 8 538 576
Acc. depreciation 31 Dec. 313 916
Additions 25 782 8 384 7 531 9 490 104 658 155 845
Book value 31 Dec. 130 761
Disposals -153 -6 408 -432 -6 993
Depreciation rate 5%
Translation costs -3 179 -18 256 -21 435
Procurement cost as at 31 Dec. 2010 6 850 884 14 560 326 038 1 096 399 378 112 8 665 993 Goodwill is related to the acquisition of ferry business. Goodwill is depreciated over the estimated financial lifetime. A depreciation period of 20 years is in line with the conditions that formed the
basis for evaluation upon acquisition of the business.
Accumulated depreciation and write-downs
Depreciations and write-downs as at 1 Jan 2009 855 128 0 405 028 383 436 0 1 643 592
Depreciations for the year 242 328 263 18 377 41 326 302 294 NOTE 11 ACCOUNTS RECEIVABLE AND INVESTMENTS
Amounts in TNOK
Disposals -150 480 -150 480
2010 2009
Translation difference -3 956 -17 674 -21 630
Depreciation and write-downs as at 31 Dec. 2009 1 097 456 263 268 969 407 088 0 1 773 776 Vendor’s credit, sale of ships 86 926 96 475
Accounts receivable from Group companies 265 000 265 000
Depreciations and write-downs as at 1 Jan. 2010 1 097 456 263 268 969 407 088 0 1 773 776 CIRR fixed interest contract 51 042 78 675
Depreciations for the year 239 423 1 839 15 794 42 281 299 337 Pension funds -1 713 10 844
Disposals -6 408 -432 -6 840 Ålesund stadium 25 430 25 430
Translation difference -1 680 -6 076 -7 756 Other accounts receivable 449 444
Depreciation and write-downs as at 31 Dec. 2010 1 336 879 2 102 276 675 442 861 0 2 058 517 Total 427 134 476 868
Balance sheet values
As at December 2009 5 727 799 5 913 59 125 698 509 273 454 6 764 800
As at December 2010 5 514 005 12 458 49 363 653 538 378 112 6 607 476
NOTE 12 INVENTORIES
Depreciation method All capital acquisitions are depreciated according to the linear method over the estimated lifetime. Inventories comprise the following types of goods: Amounts in TNOK
Depreciation rates 2,85-20% 10-20% 10-20% 5-20% 2010 2009
Borrowing expenses are capitalized against the appurtenant item and depreciated over the estimated lifetime of the equipment. Inventories for onward sale 120 228 124 864
Property under construction is mainly related to the new booking and Internet platform. Consumables 17 656 20 814
Property on leased land is depreciated over the lease period.
Certain minor adjustments have been made in cost price and accumulated depreciation as at 1 Jan. 2009. Bunkers 12 237 9 715
These adjustments have no effect on book values. Total 150 121 155 393
Amendments to cost price and accumulated depreciation as at 1 Jan. 2009 are in line with original values and do not effect book values.
NOTE 13 LONG TERM INTEREST BEARING DEBTS, MORTGAGES AND GUARANTEES Amounts in TNOK
NOTE 9 GOODWILL/INTANGIBLE ASSETS Parent Company Group
The book value of goodwill as at 31 December 2010 is TNOK 671 301. The The net present value of future earnings is based on a discounting rate 2010 2009 2010 2009
equivalent value as at 31 December 2009 was also TNOK 671 301. after tax of 7.35%. This discounting rate is based on 10 year government Long term loans
All goodwill is acquired by takeovers and has been of strategic impor- bonds and the official market premium. Return on equity is equivalent to Mortgages 3 610 553 3 970 791 3 360 544 3 757 516
tance in retaining and strengthening the market positions of the Group. the Group’s required rate of return. Bond loans (registered on Oslo Stock Exchange) 1 927 733 1 062 500 1 851 233 994 500
Goodwill is recorded in the transport segment which includes the Sande- The Group is exposed to changes in the tourist industry, including com- Total interest bearing long term liabilities 5 538 286 5 033 291 5 211 777 4 752 016
fjord – Strømstad service, the Larvik – Hirtshals service and the Kristian- petition from other players in the market. There is nothing to indicate that
Current liabilities
sand – Hirtshals service. developments should be anything but stable in the years ahead, although
Short-term part of mortgage 0 0 389 500 375 000
Goodwill has been tested for any possible drop in value below book va- there is uncertainty with regard to estimated future earnings.
Redeemed bond loans 0 0 76 500 68 000
lue. The test is based on future cash flows after tax for the next 5 years, with A test of the value of goodwill does not show any requirement for wri-
Total interest bearing current liabilities 0 0 466 000 443 000
a terminal value based on a growth of 2% which is considered to be rea- ting down goodwill. Sensitivity calculations show that reasonable fluctua-
sonable in relation to the anticipated future growth in the tourist industry. tions in the conditions on which the test is based, do not provide any basis Total interest bearing liabilities 5 538 286 5 033 291 5 677 777 5 195 016
Future cash flows are based on the Group’s long term forecast presented in for changing the conclusion.
In its loan agreements the Group has liabilities linked to liquidity, equity and degree of debt servicing. All liabilities are fulfilled as at 31 December 2010.
connection with the annual budget process. These are based on moderate
growth in sales and contribution margin.
24 25

14. Notes Color Group Annual Report 2010
Mortgage loans are secured by mortgages in ships and other assets. Leases for terminal areas are also mortgaged as well as negative mortgage in ships. NOTE 16 NET FINANCIAL EXPENSES Amounts in TNOK
Color Group AS has concluded a framework agreement for guarantee of the Group’s tax withholdings of NOK 60 million. In addition the Group has pledged Group Parent Company
approx. NOK 80 million to the travel guarantee fund in addition to other pledges for subsidiary companies totalling approx. 52 million. 2010 2009 2010 2009
Amounts in TNOK
Interest costs, bank loans -108 707 -151 383 -113 755 -148 335
2010 2009
Interest costs, bond loans -74 959 -60 101 -74 959 -60 101
Book value (Group) of assets pledged as security (ships, buildings, etc.) 6 607 476 6 764 800
Other interest costs -28 942 -17 839
Interest conditions on all loans and credits are fixed in accordance with NIBOR with the addition of an agreed margin. At yearend 2010, interest rates were on average: Total interest costs -212 608 -229 323 -188 714 -208 436
Mortgage loans: 2.84 percent. Bond debt: 6.39 percent. Loss financial instruments at actual value in income statement -2 996 -72 326 -2 996 -72 326
A 12 year operational leasing contract has been concluded between Oslo Line AS and Color Line Transport AS, guaranteed by Color Group AS.
Unrealized foreign exchange loss -1 026 -2 362 0 0
Loss on shares -14 830 -4 016 -14 830 -4 016
Loan expenses -13 183 -6 666 -13 183 -4 041
NOTE 14 TRADE CREDITORS AND OTHER CURRENT LIABILITIES Amounts in TNOK
Depreciation, loans -12 450
2010 2009 Foreign exchange loss -99 348 -131 088 -47 577 -70 424
Total financial expenses -343 991 -458 231 -267 300 -359 243
Trade creditors 191 804 182 980
Unpaid government charges and special taxes 75 937 74 334 Interest earned, liquidity 4 960 3 169 528 9 595
Pre-paid income 120 992 120 490 Interest earned, accounts receivable 44 648 30 483 202 083 141 440
Accrued interest 31 984 22 273 Total interest earned 49 608 33 652 202 611 151 035
Accrued wage costs 62 804 59 468 Gain financial instruments at actual value in income statement 7 578 259 368 1 828 230 606
Sundry current liabilities 142 529 122 787 Unrealized foreign exchange gain 57 622 182 488 57 171 182 488
Total 626 050 582 332 Gain on shares 34 780 63 790 34 780 63 790
Foreign exchange gain 113 124 175 106 53 835 30 637
Other financial liabilities Total financial income 262 712 714 404 350 225 658 556
Market value currency contracts 1 827
Total financial items -81 279 256 173 82 925 299 313
Bunkers’ hedging
Total 1 827 The Group buys and sells foreign currency based on anticipated income and expenses in the respective currencies. From and including 2010 the realized effect of this trading is entered under
operations together with the relevant income statement items in the accounts while the non-realized effects are presented as a financial item. All changes in value connected with these derivates
were previously presented as financial items. See Note 7.
NOTE 15 LEASES Amounts in TNOK NOTE 17 FINANCIAL RISK loans. In a normal situation it is the Group’s policy to cover a large part
2010 2009 AND USE OF FINANCIAL INSTRUMENTS of the current currency risk 6 to 12 months ahead by means of hedging
Charter hire 108 536 115 454 The Group’s risk management policy contracts, options, swaps and structured products. Taking into account
Hire of internal communications equipment 11 634 14 662 The main financial risks in the Group concern bunkers, foreign currency, concluded hedging contracts and currency on hand as at 31 December 2010,
Other 2 398 2 505 and liquidity/refinancing risk. The Group’s finance division follows up the the Group is in a fairly neutral position with regard to operating income and
Total charter hire, leasing liabilities 122 568 132 621 individual areas on an ongoing basis in order to uncover any impending expenses in EUR and DKK, but a change in the exchange rate between EUR
Lease of terminals and queuing areas 17 397 18 842
risks. The division also has a supporting role for the operating organiza- and NOK of +/- 10 % in relation to the Group’s currency loan will affect the
Total lease liabilities 139 965 151 463
tion in order to prevent any risks arising. It is the Group’s policy to refrain result (foreign exchange gain/loss) by approx. +/- NOK 90 million before tax.
The company has concluded a lease for the hire of MS SuperSpeed2 for a period of 12 years commencing in 2008. The annual lease amount totals NOK 82.3 million plus EUR 3,2 million. The lease from active speculation in financial risks, but to use financial derivates as A change in the exchange rate between USD and NOK of +/- 10 %, taking
amount is reduced every 6 months by 3.92 percent of NOK 25 million and of EUR 1.3 million. After 6 years the lease amount is increased by NOK 11.6 million and by EUR 0.6 million p.a. while the a buffer against risks connected with financial exposure in the operation into account concluded currency derivate contracts will affect the result by
reduction of the lease amount every 6 months is increased to 4.17 percent. Other leases mainly comprise internal communications equipment and other equipment on lease periods of 3 to 5 years.
and financing of the Group’s business. Each month a return is prepared approx. +/- NOK 40 million before tax. The result will also be affected by the
Future minimum hire liabilities providing an overview of hedging instruments in force. The Board is also change in value of hedging contracts.
Amounts in TNOK
updated currently with overviews of hedging instruments and estimated In 2010 hedging contracts have been realized in EUR, USD and DKK linked
Currency 1 year 2-5 years over 5 years Total
future risks. to current income and costs in the Group. These contracts are to a great
Ships NOK 78 233 301 543 470 624 850 400 extent connected with daily operations and foreign exchange gain/loss is
Ships EUR 2 940 11 189 17 976 32 105
Market risk entered in the respective items on the income statement.
Internal Communications Equipment NOK 6 315 4 094 0 10 409
The Group’s market risk is mainly connected with changes in foreign ex- At yearend the concluded hedging contracts cover parts of total expo-
Other NOK 1 827 1 039 0 2 866
change rates, Income in foreign exchange and cost of sales and services is sure for the coming year, and are primarily option and hedging contracts
not always neutral in the individual currency. This risk is reduced as far as maturing in 2011.
The Group has current leases with the local port authorities in regular terminal buildings in Oslo, Larvik, Hirtshals and Strømstad. Operational
ports of call. These contracts comprise lease of land, buildings, areas and framework agreements have been concluded for the lease of IC equipment, possible. See currency risk.
Interest risk
berths for the ships. Terms of the leases are partially fixed or are variable, vehicles and other equipment.
Currency risk The Group is primarily exposed to interest risk through its loan portfolio.
based on number of calls, passengers and vehicles. The company owns the
Currency risk arises when there are differences between income and The object of interest risk management is that changes in the interest level
expenses in each type of currency, particularly USD, EUR and DKK and in over a period of time can have a negative effect on the result. The Group
relation to investments/purchase of non-current assets and repayment of has concluded interest swap agreements in order to achieve the desired
loans in foreign currency. The Group has an active policy for reducing cur- ratio between fixed and floating rates of interest. At yearend 2010, the Com-
rency risk through the hedging of currencies and the use of multi-currency pany had three swap agreements at a nominal value of NOK 1 290 million
26 27

15. Notes Color Group Annual Report 2010
with a remaining term of approx. 4.1 years at an average interest rate of 12 years. Total interest bearing debt is NOK 5 696 million. Fixed inter- Credit risk tions for potential loss, based on previous experience and evaluation of the
4.4 %. Furthermore a CIRR-fixed interest agreement has been concluded est derivates are concluded for a total net amount of NOK 1 290 million The Group’s financial assets are mainly comprised of receivables from present day situation. The largest part of the company’s trade debtors fall
with Finnish Export Credit in connection with the delivery of M/S Color representing approx. 20 % of total interest bearing debt as at 31 Dec. 2010. sales, other receivables, liquid resources and financial instruments. These due for payment within 3 months. The credit risk for financial derivates is
Magic in 2007 in the amount of NOK 1 580 million (adjusted in accordance A change in the interest level of +/- 1 % taking into account concluded receivables represent the Group’s maximum exposure and credit risk considered to be low as agreements on these assets have been concluded
with contractual instalments) of which 50 % is fixed at 4.2 % + margin hedging contracts will affect the result by approx. +/- NOK 30 million before related to financial assets. with banks of high creditworthiness, thereby reducing the risk that the
and 50 % is swapped to a floating rate of interest, six months NIBOR less tax. In addition the result will be affected by the change in value of hedging The figure for trade debtors in the balance sheet is net after alloca- other party will be unable to fulfil its liabilities.
1.315 % p.a. for 11 years. A further CIRR-fixed interest contract has also been contracts, and interest earned on retained cash.
concluded with Finnish Export Credit in connection with the delivery of The table below quantifies the future interest risk taking into account
Exposure to credit risk: trade receivables/other current assets
M/S SuperSpeed1 in 2008, of NOK 460 million at 3.91 % and EUR 26 million cash in hand/bank deposits, structure of maturity for mortgages, bond Amounts in TNOK
at 3.55 %. These have been swapped in their entirety to a floating rate of loans and interest swaps. The figures are based on existing balance sheet 2010 2009
interest, 6 months NIBOR less 1.115 % and EURIBOR less 0.49 % p.a. for liabilities as at 31 December 2010. Trade debtors 104 187 100 699
Write-downs for anticipated loss -4 631 -5 821
Interest sensitivity, Group Net trade debtors 99 556 94 878
Amounts in TNOK
Less than 1 year 1-2 years 3-4 years 5 years and over Pre-paid tangible non-current assets 72 862 0
Mortgage loans 3 360 527 3 001 027 2 610 893 2 243 259 Inter-company receivables 319 343 308 414
Unsecured bond loans 1 871 000 1 400 000 1 400 000 900 000 Other current receivables 104 703 119 812
Total debt to credit institutions 5 231 527 4 401 027 4 010 893 3 143 259
Trade debtors and other accounts receivable 596 464 523 104
Cash in hand/bank deposits 1 063 000 1 063 000 1 063 000 1 063 000
Bunkers contracts 17 141 18 519
Net interest swaps 1 202 370 864 555 526 740 351 110
Currency derivates 5 750 0
Net interest bearing debt after interest swaps 2 966 157 2 473 472 2 421 153 1 729 149
Other financial receivables 22 891 18 519
Interest sensitivity at +/- 1% 29 662 24 735 24 212 17 291
Bunkers risk financial liabilities as and when they fall due. The Group focuses on maintai- Determining actual value of financial assets and liabilities and credit lines is equal to the actual value. Similarly, balance sheet value
Bunkers represented approx 12 % of the Group’s operating expenses in 2010, ning a level of liquidity preparedness which, as a minimum will cover a peak The actual value of hedging contracts is determined by applying the futures of trade receivables and accounts payable is practically equal to the actual
and represent an operational risk resulting from fluctuations in the prices charge period. Liquidity preparedness is managed at Group level and 12 rate on balance sheet date. Actual value of currency swap agreements is value as these are concluded on normal terms at short maturity. Bond loans
of oil. As at 31 December 2010, the Group had bunkers hedging contracts for month budgets are prepared and monitored on a weekly basis. Liquidity calculated by determining the present day value of future cash flows. Ac- are registered on the stock exchange and are subject to a floating rate
approx. 45 % of estimated consumption in 2011, more or less equally distri- available as at 31 December 2010 is NOK 1 743 million (including undrawn tual value of interest swap contracts is calculated by discounting the cash of interest falling due quarterly. Actual value of bond loans is the stock
buted throughout the year. The contracts are based on the actual physical credit lines). Surplus liquidity is placed primarily on the short term money flows in the contracts at nil coupon rates in the yield curve in the relevant exchange list price at yearend. Actual value of long term bank loans is the
product consumed by the ships reflecting an oil price (Brent per barrel) market. Reference is also made to the table under “Fixing of actual value currency. Actual value of the above mentioned instruments is calculated by company’s evaluation of any added costs for refinancing at yearend, dis-
of approx. USD 70-75. The bunkers hedging contracts in force have had no of financial assets and liabilities” in respect of maturity analysis showing the company’s external bankers. The balance sheet value of cash in hand counted at 5% p.a. and taking due regard to average maturity.
impact on the results at yearend. Actual value of hedging contracts as at instalments and interest in respect of interest bearing debt in the future.
31 December 2010 is TNOK 17 141. All hedging contracts for bunkers expire
in 2011, and will affect the result in the coming year. Changes in the market Shares The following table shows the total liquidity flows in the years ahead for coverage of instalments and interest on current
value of the remaining bunkers contracts will have an affect on equity, but Shares entered in the balance sheet are listed shares that are readily tra- long term financing contracts in the form of long term bank loans and bond loans. Amounts in TNOK
not on profit. ded, acquired in order to earn on short-term variations in price. The value Parent Company Group
A change in the price of bunkers of +/- 10 % the hedging contracts Mortgages Bond loans Mortgages Bond loans
of shares on balance sheet day is not considered to represent a critical risk.
concluded will reduce profit by +/- NOK 20 million before tax. The effect Less than 1 year 482 510 200 213 496 011 200 213
connected with future hedging contracts will be entered in the accounts 1 - 2 years 441 788 590 507 454 948 590 507
Capital management
2 - 3 years 462 552 89 423 475 372 89 423
in accordance with hedging principles and will amount to a total of TNOK An important objective is to secure financial freedom of action both in the
3 - 4 years 429 243 589 423 441 791 589 423
16 995 for 2010. Hedging activities have not shown inefficiency in 2009 and short and long terms and to maintain a good credit rating thereby achieving
5 years and longer 2 306 487 957 486 2 406 269 957 486
2010. favourable loan terms that bear a reasonable relationship to our business.
Total 4 122 580 2 427 052 4 274 391 2 427 052
The company manages its capital structure, making whatever changes are
Liquidity risk required on the basis of ongoing evaluation of the financial conditions for
Liquidity risk is linked to the risk of the Group being unable to fulfil its the business. The company’s capital structure is followed up by calculating
Balance sheet value and actual value of long term loans
debt equity ratio. Amounts in TNOK
Debt equity ratio Balance sheet value Actual value*
Amounts in TNOK
2010 2009 2010 2009
2010 2009
Debt 5 677 777 5 195 016 Mortgages 3 360 544 3 757 516 3 194 162 3 562 396
Liquid assets 1 138 648 101 150 Bond loans 1 851 233 994 500 1 848 233 931 218
Net debt 4 539 129 5 093 866 Total 5 211 577 4 752 016 5 042 395 4 493 614
Equity 2 398 495 2 234 054 * The basis for actual value of bond loans is the market price at yearend and actual value for mortgages is the company’s evaluation of any additional expenses for re-financing at yearend
discounted at 5% p.a. with due regard to average maturity.
Debt equity ratio 1,89 2,28
28 29

16. Notes Color Group Annual Report 2010
Balance sheet value of the Group’s interest bearing debt to credit institutions in different currencies NOTE 18 COST OF WAGES
Amounts in TNOK
Parent Company Group Group Amounts in TNOK
2010 2009 2010 2009 2010 2009
NOK 4 627 053 4 011 104 4 652 610 4 042 181 Cost of wages
EUR 911 233 1 022 369 911 232 1 022 369 Wages 866 746 839 436
DKK 113 935 130 466 Employers’ tax 159 996 159 357
Total 5 538 286 5 033 473 5 677 777 5 195 016 Pension costs 66 152 70 433
Other benefits 137 856 143 563
Total 1 230 750 1 212 789
Overview of financial assets and liabilities classified according to measurement categories Amounts in TNOK Man-years 2 446 2 445
2010 2009 The princibles of defining man-year has been slightly changed for 2010. The figures for 2009 has been changed accordingly.
Financial assets In 2010 refund of income tax, national insurance contribution and employer’s tax for seamen was taken to income in the amount of NOK 204 million (NOK 203 million in 2009).
Loans and accounts receivable The amount was entered as a reduction in wages in the consolidated accounts. From this amount the Group has contributed NOK 9 million to the Foundation Norwegian Maritime
Competence (NOK 9 million in 2009).
Bank deposits/cash 1 138 648 101 150
Trade debtors 99 556 94 878 Parent company (Color Group) Amounts in TNOK
Other current receivables 496 908 428 226 2010 2009
Total loans and receivables 1 735 112 624 254
Cost of wages
Hedge accounting Wages 6 060 8 647
Bunkers swaps 17 141 18 519 Employers’ tax 1 646 1 340
Total hedge accounting 17 141 18 519 Pension costs 69 190
Other benefits -58 592
Financial assets at actual value in income statement
Total 7 717 10 769
Short-term share investments 35 257 95 239
Interest swaps 51 042 78 675 Man-years 6 6
Currency derivates 5 750
Total financial assets at actual value in income statement 92 049 173 914
NOTE 19 REMUNERATION TO SENIOR EXECUTIVES Amounts in TNOK
Financial liabilities Other
Trade creditors and other current liabilities 626 050 582 332 Salary Bonus Pensioncosts remuneration Total
Bank loans 3 750 044 4 132 516 Olav Nils Sunde, President Color Group AS 0 0 0 0 0
Bond loans 1 927 733 1 062 500 Trond Kleivdal, Group President Color Line AS 3 155 1 742 76 301 5 274
Total financial liabilities 6 303 827 5 777 348
Total senior executives 3 155 1 742 76 301 5 274
Financial liabilities at actual value in income statement
Interest swaps 18 478 15 482 Director’s fees
Contracts, currency derivates 1 827 Total Directors fees* 200 200
Total financial liabilities at actual value in income statement 18 478 17 309 *Fee to Chairman of the Board, Morten Garman
Auditors’ fees – Deloitte Amounts in TNOK
Parent Company Group
Balance sheet items evaluated at actual value Statutory auditing services 260 1 460
Level 1 values taken from the figures in the market with similar activity Fees for tax advice etc. 42 334
Level 2 values from others that are not included in an active market with appurtenant rates Fees for other services unrelated to the audit 145 598
Level 3 values calculated following evaluation of assets and liabilities that are not based on known market data. Amounts in TNOK
Total audit and advisory fees 447 2 392
Level 1 Level 2 Level 3 Total
Financial assets at actual value Guidelines for remuneration to senior executives 2010 The principle of non-cash benefits
Short-term share investments 35 257 35 257 Remuneration to senior executives in the Group is to be based on the fol- Executives may be offered different schemes, such as company car
Currency swaps 5 750 5 750 lowing main principles: schemes, insurance, pensions and similar. Benefits in kind shall primarily
Bunkers derivates 17 141 17 141 be in the form of home telephone, mobile phone and newspaper – items
The principle of basic salary
Total 52 398 5 750 0 58 148 that can improve the availability of the executive for the company.
Persons in executive positions shall receive a competitive basic salary
Financial liabilities at actual value based on position, responsibility, competence and the performance of the Post termination salary scheme
Interest swaps 18 478 18 478 individual executive. The Group president of Color Line, Trond Kleivdal will, in the case of a pos-
Total 0 18 478 0 18 478 sible termination that is not covered by the provisions of the Working Envi-
The principle of variable benefits, incentive schemes etc
ronment Act, receive three years salary equivalent to NOK 9.4 million.
Executives may receive a variable salary. This shall be an incentive, aimed
at profit orientation. A variable salary is based on achievement of targets Information on the preparation and decision-making process
for the Group, division or company in which the executive is employed. Salary terms for the Chief Executive Officer are dealt with by the Board on
30 31

17. Notes Color Group Annual Report 2010
an annual basis. The Board prepares annual guidelines and a statement is fined contribution scheme is expensed in the amount of TNOK 12 745 in 2010 NOTE 22 EQUITY, PARENT COMPANY Amounts in TNOK
submitted to the General Meeting for discussion pursuant to the provisions and TNOK 15 073 in 2009. Share Premium Other
capital fund equity Total
of Section 5-6 of the Public Limited Company’s Act (Norway).
The defined benefit pension scheme Equity 1 Jan. 2009 143 600 1 478 436 482 158 2 104 194
Report concerning the policy for remuneration to executives in 2010 A number of shore based employees are covered by the early retirement Profit for the year 290 109 290 109
Guidelines for executive salaries were in accordance with the above policy scheme (AFP). In addition, there are some employees entitled to a pension Group contribution -120 259 -120 259
during the previous financial year. Remuneration to senior executives is directly from the company. These employees are encompassed by the an-
Equity 31 Dec. 2009 143 600 1 478 436 652 008 2 274 044
charged to the company as an expense and has otherwise no direct conse- nual calculation of pension costs and liabilities.
quence for the company’s shareholders. As at 31 December the Group Pension liabilities for seagoing employees
Equity 1 Jan. 2010 143 600 1 478 436 652 008 2 274 044
covered 1 484 members. In addition the Group pays the shipowners’ share
Result for the year 134 036 134 036
NOTE 20 PENSIONS of the pension scheme for seamen which in 2010 totalled NOK 25.7 million Group contribution:
As at 1 July 2008 the Group pension scheme was changed from a defined and in 2009 NOK 25.45 million. – 2010 -240 000 -240 000
benefit scheme to a defined contribution scheme for all shore-based em- Liabilities with regard to the early retirement scheme (AFP) and un- – Ordinary -31 019 -31 019
ployees. funded liabilities comprise 32 members and are included in net pension
liabilities in the amount of TNOK 2 486. Estimated values are applied in the Equity 31 Dec. 2010 143 600 1 478 436 515 025 2 137 061
The defined contribution scheme evaluation of pension funds and liabilities incurred. These estimates are
In this scheme the company pays an annual premium to a life insurance adjusted annually in accordance with a statement of the transfer value of
company which invests the contributions on behalf of the employees. The the pension funds and an actuarial calculation of the liabilities.
NOTE 23 DEFERRED TAX LIABILITIES
annual premium is charged to expenses. Company contribution to the de-
Specification of the taxation effect of temporary differences and carry-forward loss
Pension costs for the defined benefit scheme (yield) for the year are as follows Amounts in TNOK Group Amounts in TNOK
2010 2009 Benefit/Liabilities 2010 2009
Financial assumptions Operating equipment 2 480 142 2 225 893
Discount rate 4,00 % 4,40 % Intangible assets 187 429 159 030
Expected annual wage adjustment 4,00 % 4,25 % Financial assets 12 258 21 221
Expected annual adjustment of pensions 1,30 % 1,30 % Income statement 500 450 625 563
Expected annual G-adjustment 3,75 % 4,00 % Current assets -42 009 -37 259
Estimated yield 5,40 % 5,60 % Liabilities 196 660 24 682
Pension costs for the year are as follows Carry-forward loss -18 886 -241 765
Pension yield for the year 16 141 23 849 Total 3 316 044 2 777 365
Interest cost on pension liabilities 7 371 7 078
Anticipated yield pension funds - 7 224 - 7 421 Deferred tax liabilities as at 31 Dec. 928 492 777 663
Administration 856 812
Employers’ tax 2 418 3 428 Parent company (Color Group)
Amounts in TNOK
Changes in estimates and estimate deviation in income statement 4 124 5 455
Benefit/Liabilities 2010 2009
Cost of pensions 23 686 33 201
Operating equipment 117 527 138 068
Reconciling of pension liabilities and pension funds against balance sheet Financial assets -55
Present value of pension liabilities 195 590 170 333 Income statement 13 764 17 205
Value of pension funds - 132 447 -127 614 Current assets -3 281
Employers’ tax 8 901 6 023 Liabilities 73 911
Unrecognized deviation in estimate - 70 331 -59 719 Total 205 147 151 992
Pension liabilities in balance sheet 1 713 -10 977
Deferred tax liabilities as at 31 Dec. 57 441 42 558
A premium of TNOK 7 450 with the addition of employers’ tax was paid in 2010. Next year’s premium is expected to total TNOK 7 748.
The scheme is managed by an insurance company and the composition of funds is based on the statutory management performed by this company.
In the calculation disability table IR 02 and mortality table K05 are applied.
The parent company, Color Group AS has a defined contribution pension NOTE 21 SHARE CAPITAL
scheme. TNOK 69 has been paid in to this scheme in 2010. The pension The share capital comprises 71 800 000 shares of NOK 2.00 each, total TNOK
schemes fulfil the statutory requirements with regard to service pension 143 600. All shares carry equal rights. ONS Invest II AS owns all the shares
schemes. in Color Group AS. All shares in ONS Invest II AS are owned indirectly by
Director and Group President Olav Nils Sunde and his family.
32 33

18. Color Group Annual Report 2010
NOTE 24 COST OF TAXES
Group Amounts in TNOK
Benefit/Liabilities 2010 2009
Tax costs for the year
Tax, Group contribution 67 714 69 044
Tax payable 4 406
Changes in deferred tax 56 604 172 473
Cost of taxes, ordinary result 128 724 241 517
Reconciling from nominal to actual tax rate
Pre-tax result including extraordinary result
Ordinary result 465 928 883 295
Estimated income tax at nominal tax rate 130 460 247 323
Tax effect of following items
Non-deductable expenses -2 585 -7 063
Translation differences 399 -165
Corrections previous years 450 1 422
Cost of taxes, ordinary result 128 724 241 517
Effective tax rate 27,6 % 27,3 %
Parent Company (Color Group)
Amounts in TNOK
Benefit/Liabilities 2010 2009
Tax costs for the year
Tax, Group contribution 32 784 47 834
Changes previous years 281
Changes in deferred tax 14 882 53 324
Cost of taxes, ordinary result 47 947 101 158
Reconciling from nominal to actual tax rate
Pre-tax result including extraordinary result
Ordinary result 181 984 391 268
Estimated income tax at nominal tax rate 50 956 109 555
Taxation effect of following items
Non-deductable expenses -3 459 -8 397
Corrections, previous years 450
Cost of taxes, ordinary result 47 947 101 158
Effective tax rate 26,3 % 25,9 %
NOTE 25 BANK This represents a net receivable of NOK 277 million in the parent company.
Color Group AS is a group account holder. The Group companies’ bank All represented companies stand surety for intercompany balances in re-
accounts that are included therefore represent intercompany accounts. spect of the legal Group account.
NOTE 26 RESULT PER SHARE
The result per share is calculated as an annual result providing an average of the number of outstanding shares throughout
Amounts in TNOK
2010 2009
Result for the year after tax 337 204 641 778
Weighted average, number of shares 71 800 000 71 800 000
Result per share NOK 4,70 8,94
34 35

19. Color Group Annual Report 2010
36 37

20. Color Group Annual Report 2010
38

21. KRISTIANSAND – HIRTSHALS LARVIK – HIRTSHALS SANDEFJORD – STRØMSTAD OSLO – KIEL
M/S SuperSpeed 1 M/S SuperSpeed 2 M/S Color Viking M/S Color Fantasy
Built: Aker Yards, Rauma, Finland Built: Aker Yards, Rauma, Finland Year built 1985, Nakskov, Denmark Year built: 2004, Aker Yards, Turku Finland
Home port: Kristiansand Home port: Kristiansand Home port: Sandefjord Home port: Oslo
Tonnage: 36 822 GRT Tonnage: 33 500 BRT Tonnage: 19 763 GRT Tonnage: 75 027 GRT
Length: 211.3 metres Length: 211.3 metres Length: 137 metres Length: 224 metres
Beam: 26 metres Beam: 26 metres Beam: 24 metres Beam: 35 metres
Draft: 6.5 metres Draft: 6.5 metres Draft: 5.64 metres Draft: 6.8 metres
Class: Det Norske Veritas Class: Det Norske Veritas Class: Det Norske Veritas Class: Det Norske Veritas
Max. capacity: 2 315 persons Max. capacity: 1 929 persons Max. capacity: 1 720 persons Max. capacity: 2 700 persons
Passenger cars: 764 Passenger cars: 764 Passenger cars: 350 Passenger cars: 750
Trailers: lane metres: 2 036 Trailers: lane metres: 2 036 Trailers: lane metres: 490 Trailers: lane metres: 1 270
M/S Bohus M/S Color Magic
Year built 1971, Aalborg, Denmark Year built: 2007, Aker Yards, Turku Finland
Home port: Sandefjord Home port: Oslo
Tonnage: 9 149 GRT Tonnage: 75 100 GRT
Length: 123.4 metres Length: 224 metres
Beam: 19.2 metres Beam: 35 metres
Draft: 5.4 metres Draft: 6.8 metres
Class: Det Norske Veritas Class: Det Norske Veritas
Max. capacity: 1 165 persons Max. capacity: 2 700 persons
Passenger cars: 230 Passenger cars: 550
Trailers: lane metres: 462 Trailers: lane metres: 1 270
Trykk: Prinfo Unique
Foto: Color Line – Dag G. Nordsveen/nordsveen.net
Grafisk form: CL Inhouse CG-CA11-02
Booking: (+47) 810 00 811 • www.colorline.no • kundeservice@colorline.no
Ansvarlig utgiver: Color Line
Color Group AS Bryggegata 3 • 0250 Oslo • Tel.: (+47) 23 11 86 00 • Telefax: (+47) 23 11 86 01
Color Line AS Hjortnes • 0250 Oslo • Tel.: (+47) 23 11 80 00 • Telefax: (+47) 23 11 80 01