Finnlines Plc Annual General Meeting 12.4.2016 Tom Pippingsköld, CFO 1
Global Shipping Segments 1 Jan 2015 Source: http://www.statista.com/statistics/264024/number-of-merchant-ships-worldwide-by-type/ 2
General trends in shipping are also in the core of Finnlines Safety • Safety at sea • Crime prevention • Training of personnel Environment • Development of vessel technology • Questioning traditional transport chain models • Environmental factors also influence customers’ choices Customers • Tailor-made solutions • From industry-specific to locally arranged transportation solutions • Development of information systems and data transfer • Ever growing importance of reliability and accuracy 3
Breaking records against all odds 4
Finnlines Group Result in 2015 – by Quarter In 2015 the best ever operative result in the company history and record breaking quarters throughout the year Finnlines Group Result for the Reporting Period, Quarterly MEUR 30 24.7 18.1 20 15.8 15.7 14.7 9.9 8.5 10 5.7 6.1 5.3 4.0 1.2 0.9 0.3 0.6 0 -3.1 -4.6 -5.3 -5.8 -10 -10.9 -20 2011 2012 2013 2014 2015 Q1 Q2 Q3 Q4 5
Finnlines Group Consolidated Income Statement, IFRS, 1.1. – 31.12.2015 EUR 1,000 10 – 12 2015 10 – 12 2014 1 – 12 2015 1 – 12 2014 Revenue 120,894 119,077 511,167 532,889 Other income from operations 558 3,719 1,810 6,776 Materials and services -34,803 -42,150 -161,264 -191,445 Personnel expenses -21,517 -21,268 -84,186 -88,418 Depreciation, amortisation and impairment losses -14,835 -13,459 -56,590 -56,843 Other operating expenses -33,000 -35,469 -140,654 -144,396 Total operating expenses -104,155 -112,345 -442,694 -481,102 Result before interest and taxes (EBIT) 17,298 10,451 70,284 58,563 Financial income 387 141 934 483 Financial expenses -4,099 -5,231 -18,064 -22,412 Result before taxes (EBT) 13,586 5,361 53,153 36,634 Income taxes 2,146 3,169 3,675 5,079 Result for the reporting period 15,732 8,530 56,829 41,713 6
Finnlines Group Balance Sheet, IFRS 31 Dec 2015 EUR 1,000 31 Dec 2015 31 Dec 2014 ASSETS Non-current assets Property, plant and equipment 997,619 983,183 Goodwill 105,644 105,644 Intangible assets 3,758 5,500 Other financial assets 4,576 4,576 Receivables 1,258 1,434 Deferred tax assets 5,792 5,353 1,118,645 1,105,688 Current assets Inventories 4,333 5,926 Accounts receivable and other receivables 86,019 75,884 Income tax receivables 539 1 Cash and cash equivalents 6,468 2,680 97,359 84,490 Non current assets held for sale 15,121 20,297 Total assets 1,231,125 1,210,475 7
Finnlines Group Balance Sheet 31 Dec 2015 EQUITY Equity attributable to parent company shareholders Share capital 103,006 103,006 Share premium account 24,525 24,525 Translation differences 209 178 Fund for invested unrestricted equity 40,016 40,016 Retained earnings 393,313 335,876 561,070 503,601 Non-controlling interests 294 306 Total equity 561,363 503,907 LIABILITIES Long-term liabilities Deferred tax liabilities 52,712 56,102 Other long-term liabilities 113 163 Pension liabilities 3,919 4,705 Provisions 1,810 1,844 Loans from financial institutions 367,445 420,722 425,999 483,536 Current liabilities Accounts payable and other liabilities 59,191 71,565 Current tax liabilities 14 72 Provisions 345 81 Loans from financial institutions 176,736 142,967 236,287 214,685 Total liabilities 662,286 698,220 Liabilities related to long-term assets held for sale 7,476 8,348 Total equity and liabilities 1,231,125 1,210,475 8
Finnlines Group: Facts and Figures 2015 2014 2013 2012 Group Revenue (EUR million) 511.2 532.9 563.6 609.3 Average number of employees 1,597 1,701 1,861 2,023 • Average number of employees on shore 698 759 918 957 • Average number of employees at sea 899 942 943 1,066 Fleet • Average number of vessels operated 22 24 24 24 • Number of Finnlines’ owned vessels 21 21 22 25 • Average age of Finnlines’ own fleet (years) 12 11 10 10 • Total capacity of the fleet in lane meters 73,200* 75,400 75,400 80,000 Cargo volumes transported • Units 624,000 638,000 632,000 628,000 • Cars (not including cars of passengers) 156,000 99,000 66,000 72,000 • Tons of freight not possible 2,032,000 2,319,000 2,248,000 2,102,000 to measure in units Passengers transported 575,000 561,000 556,000 598,000 * Including the lane meters of Finncarrier and Finnmaster as of 2.1.2016 9
Finnlines Group Result Before Interest and Taxes (EBIT) Total and Per Segment MEUR 80 70.3 70 58.6 72.2 60 61.6 50 25.6 23.7 40 21.0 18.1 39.3 30 34.0 30.8 27.9 20 10 0 -1.9 -3.1 -10 -10.4 -9.8 -9.8 -13.7 -20 2010 2011 2012 2013 2014 2015 Shipping and Sea Transport Services Port Operations 10
EUR 100 million Environmental Technology Investment Programme 11
New era of environmental investments By the end of 2013, new ambitious challenges appeared on the horizon for marine operators. Sulphur Emission Control Areas (SECA) were established by international authorities in the North Sea and the Baltic, obliging all shipping operators to reduce sulphur emissions down to 0.10% from the beginning of 2015. All options for emission reductions came with a risk of failure. Despite poor data regarding both fuel price trends and technology, the decision had to be taken by the beginning of 2014 in order not to miss the supply windows dictated by the marine technology market. In order to reduce the risks of opting for an unproven technology, the CEO teamed up with the world’s three biggest scrubber manufacturers, diversifying the supply risk and shortening the leadtime for the delivery of equipment. All in all, the green plan amounted to a EUR 100 million investment. This was unprecedented in Finnlines and was a clear signal within the competitive Baltic shipping market. The green campaign was achieved without neglecting the company turnaround initiated in 2009. 12
EUR 100 million Environmental Technology Investment Programme 2014 – 2016 In 2014: order for exhaust gas cleaning systems (scrubbers) for 10 ro-ro vessels and 4 ro-pax vessels plus propulsion upgrading to 6 vessels Retrofits were finalised during winter/spring 2015 In March 2015: order for one additional scrubber for MS Finnmerchant The installation was finalised in September 2015 In July 2015: additional orders for exhaust gas cleaning systems for 2 more ro-ro vessels and 3 more ro-pax vessels Installations are expected to be finalised in beginning of May 2016 In August 2015: order for new propeller blades for 3 ro-pax vessels and special foul release coating (silicon paint) for 2 ro-pax vessels deployed on Sweden-Germany route The hull treatment of the ro-pax vessels was finalised in beginning of October 2015 13
EUR 100 million Environmental Technology Investment Programme – 22 Scrubber Installations 14
EUR 100 million Environmental Technology Investment Programme – 9 Ships re-bladed & 2 re-painted 15
Major investments – yet excellent results 16
Finnlines Group Total Capital Expenditure MEUR 90 80 82.2 70 67.1 60 64.4 64.1 50 40 36.6 30 20 10 10.1 0 2010 2011 2012 2013 2014 2015 17
Going Against the Grain At the end of 2008 the health of the world economy took a nasty turn for the worse. The worst came to the worst in the winter of 2008/2009. By the end of March 2009, the value of Finnlines shares on the Helsinki stock exchange had plunged from EUR 17 to just above EUR 4, a record low. Stormy conditions compelled the company management to take action. The company was turned upside down: every stone was turned to find new ways to cut costs, gain volume and simplify corporate structures Plans laid down by the CEO were implemented, thereby consolidating the breakeven results and simplifying the Finnlines structure. This did not occur without friction. If doing the right thing sometimes means going against the grain, then managing Finnlines in those years was a case in point. 18
Turnaround Programme The prudent actions taken to reduce costs and increase efficiency: Every line, every vessel, every function and every cost item have been analysed whether there is room for further lowering of costs and therefore room for further improvement in efficiency. Certain vessels have been sold to cut overcapacity and changes in fleet/routes have increased capacity utilisation. Since 2008, the Finnlines fleet’s fuel consumption has decreased by almost 35 per cent. Personnel in 2009 an average of 2,234 persons / in 2015 an average of 1,597 persons / end of the year 2015 1,588 persons. Higher cash-flow generation has enabled the reduction of interest- bearing debt from 2012’s EUR 879 million to EUR 533.7 million at the end of 2015. 19
Optimisation – Key to Operational Cost Reduction Targeted optimisation of the existing tonnage Cutting of the vessel overcapacity Optimising the speed of the ships and technological improvements Route and trade flows planning, thereby ensuring that the ships are completely full on both legs (NB-SB, EB-WB) Personnel adjustments Use of annual profit/cash flow for capex and for reduction of interest-bearing debt Cost controlling and cost cutting 20
Finnlines fuel consumption 2008 – 2015 500 000 450 000 -15.2% ton fuel consumed 400 000 -16.1% 350 000 -8.3% 300 000 250 000 200 000 2008 2009 2010 2011 2012 2013 2014 2015 21
Recommend
More recommend
