FINANCIAL STATEMENTS 2010 - Finnlines
FINANCIAL STATEMENTS 2010 - Finnlines FINANCIAL STATEMENTS 2010 - Finnlines
LIQUIDITY RISK The Group continuously strives to evaluate and monitor the amount of financing required for its operations to ensure that it will have suf- ficient liquid assets to finance its business activities and investments and to repay loans. The Group seeks to finance vessel investments with credit agreements with the longest possible terms. The Group aims to guarantee the availability and flexibility of financing with unu- tilised credit facilities and by employing several banks and methods for funding. On 31 December 2010, the granted but unused credit facilities totalled EUR 141 (181) million. Loans include normal equity ratio related covenants. The cash-flows in the tables below include both repayments and expected interests. Contractual repayments of interest-bearing liabilities, including interest, 31 December 2010 EUR 1,000 2011 2012 2013 2014 2015 2016- Total Residual amount of interestbearing liabilities Loans from financial institutions -153,189 -89,269 -108,075 -128,019 -72,125 -347,231 -897,908 -797,419 Pension loans -6,614 -6,437 -6,268 -4,946 -4,816 -13,664 -42,744 -38,064 Financial lease liabilities -1,154 -1,123 -1,123 -1,123 -1,123 -5,697 -11,341 -8,976 Instalment plan debts -88 -15 -103 -100 Commercial paper programme -17,500 -17,500 -17,395 -178,545 -96,844 -115,465 -134,088 -78,063 -366,592 -969,597 -861,955 Contractual repayments of interest-bearing liabilities, including interest, 31 December 2009 EUR 1,000 2010 2011 2012 2013 2014 2015- Total Residual amount of interestbearing liabilities Loans from financial institutions -136,789 -84,849 -82,981 -81,913 -122,838 -387,294 -896,663 -796,271 Bank overdraft facilities -3,651 -3,651 -3,651 Pension loans -6,787 -6,613 -6,437 -6,261 -4,946 -18,480 -49,524 -43,540 Financial lease liabilities -1,147 -1,131 -1,131 -1,131 -1,131 -6,777 -12,447 -9,776 Instalment plan debts -135 -88 -15 -238 -229 -148,509 -92,681 -90,563 -89,304 -128,915 -412,551 -962,523 -853,468 Contractual cash flow of derivatives, 31 December 2010 EUR 1,000 2011 2012 2013 2014 2015 2016 Total Non-hedge accounting Currency forward contracts 293 40 333 Hedge accounting Currency forward contracts 315 10 324 608 49 657 Contractual cash flow of derivatives, 31 December 2009 EUR 1,000 2010 2011 2012 2013 2014 2015 Total Non-hedge accounting Interest rate swaps -4,103 -4,103 Currency forward contracts 124 292 416 Hedge accounting Currency forward contracts -368 -725 -1,093 -4,346 -434 -4,780 42 FINNLINES PLC Financial Statements 2010 (figures in EUR thousand, if not stated otherwise)
COMMODITY RISK The Group is exposed to commodity risk relating to availability and price fluctuations of fuel. It seeks to minimise this risk by making framework agreements with known counterparts and by including bunker price clauses in its contracts with customers. In the long- term, these clauses can hedge more than 50 per cent of this risk, but in the short- term the hedging level fluctuates considerably and also depends on the utilisation rate of the vessels. CAPITAL MANAGEMENT The Group’s objective in managing capital is to secure normal operating conditions in all circumstances and to enable optimal capital costs. The capital structure of the Group is regularly reviewed by the Board of Directors. The table below shows the interest-bearing net debt and total equity with the leverage ratio. EUR 1,000 2010 2009 Capital risk management Interest-bearing liabilities 859,079 850,219 Cash in hand and at bank 6,452 6,103 Interest-bearing net debt 852,627 844,115 Total equity 428,927 425,651 Leverage ratio (gearing) % 198.8% 198.3% 33. CONTINGENCIES AND COMMITMENTS Significant part of the leases made by the Group are time-charter hires of vessels. At year-end 2010, the Group had 6 (11) ro-ro freight vessels on charter. Minimum vessel lease payments based on fixed-term lease commitments: EUR 1,000 2010 2009 Vessel leases (Group as lessee): Within 12 months 28,410 39,200 1-5 years 14,785 42,571 43,195 81,771 The Group adjusts its vessel capacity by acting as a lessor when needed. At the end of reporting period 2010, future lease receivables based on lease contracts were divided as follows: EUR 1,000 2010 2009 Vessel leases (Group as lessor) Within 12 months 1,147 9,226 1,147 9,226 2010 Revenue includes EUR 12,154 (25,340) thousand lease revenues from leased vessels. EUR 1,000 2010 2009 Other leases (Group as lessee) Future minimum lease payments from other leases due: Within 12 months 6,658 7,057 1-5 years 18,596 21,511 After five years 15,904 19,869 41,158 48,437 (figures in EUR thousand, if not stated otherwise) FINNLINES PLC Financial Statements 2010 43
- Page 1 and 2: FINANCIAL STATEMENTS 2010
- Page 3 and 4: BOARD OF DIRECTORS’ REPORT THE CO
- Page 5 and 6: elated to this. Other significant r
- Page 7 and 8: CONSOLIDATED STATEMENT OF COMPREHEN
- Page 9 and 10: CONSOLIDATED STATEMENT OF CHANGES I
- Page 11 and 12: NOTES TO THE CONSOLIDATED FINANCIAL
- Page 13 and 14: ated companies are consolidated usi
- Page 15 and 16: egory includes assets held for trad
- Page 17 and 18: In defined benefit plans, the emplo
- Page 19 and 20: Segment assets, liabilities and inv
- Page 21 and 22: 8. PERSONNEL EXPENSES EUR 1,000 201
- Page 23 and 24: 13. EARNINGS PER SHARE UNDILUTED Un
- Page 25 and 26: Assets leased through finance lease
- Page 27 and 28: Main factors used in calculating va
- Page 29 and 30: 21. DEFERRED TAX ASSETS AND LIABILI
- Page 31 and 32: EUR 1,000 2010 2009 Significant ite
- Page 33 and 34: 26. PROVISIONS EUR 1,000 2010 2009
- Page 35 and 36: Finance lease liabilities Finance l
- Page 37 and 38: 31. PENSION LIABILITIES The Group
- Page 39 and 40: Hedge Accounting The Group has orde
- Page 41: The Group had an interest rate swap
- Page 45 and 46: with the Helsinki Court of Appeal a
- Page 47 and 48: In April 2009, Finnlines Plc's subs
- Page 49 and 50: Shares outstanding 31 December 2005
- Page 51 and 52: CALCULATION OF KEY RATIOS, IFRS Ear
- Page 53 and 54: PROFIT AND LOSS ACCOUNT, PARENT COM
- Page 55 and 56: CASH FLOW STATEMENT, PARENT COMPANY
- Page 57 and 58: NOTES TO THE FINANCIAL STATEMENTS,
- Page 59 and 60: 8. EXTRAORDINARY ITEMS EUR 2010 200
- Page 61 and 62: 14. INVENTORIES EUR 2010 2009 Bunke
- Page 63 and 64: 18. ACCUMULATED APPROPRIATIONS EUR
- Page 65 and 66: CONTINGENCIES AND COMMITMENTS EUR 1
- Page 67 and 68: BOARD'S PROPOSAL FOR THE USE OF THE
- Page 69 and 70: AUDITOR'S REPORT TO THE ANNUAL GENE
LIQUIDITY RISK<br />
The Group continuously strives to evaluate and monitor the amount of financing required for its operations to ensure that it will have suf-<br />
ficient liquid assets to finance its business activities and investments and to repay loans. The Group seeks to finance vessel investments<br />
with credit agreements with the longest possible terms. The Group aims to guarantee the availability and flexibility of financing with unu-<br />
tilised credit facilities and by employing several banks and methods for funding. On 31 December <strong>2010</strong>, the granted but unused credit<br />
facilities totalled EUR 141 (181) million. Loans include normal equity ratio related covenants. The cash-flows in the tables below include<br />
both repayments and expected interests.<br />
Contractual repayments of interest-bearing liabilities, including interest, 31 December <strong>2010</strong><br />
EUR 1,000 2011 2012 2013 2014 2015 2016- Total<br />
Residual<br />
amount of<br />
interestbearing<br />
liabilities<br />
Loans from financial institutions -153,189 -89,269 -108,075 -128,019 -72,125 -347,231 -897,908 -797,419<br />
Pension loans -6,614 -6,437 -6,268 -4,946 -4,816 -13,664 -42,744 -38,064<br />
Financial lease liabilities -1,154 -1,123 -1,123 -1,123 -1,123 -5,697 -11,341 -8,976<br />
Instalment plan debts -88 -15 -103 -100<br />
Commercial paper programme -17,500 -17,500 -17,395<br />
-178,545 -96,844 -115,465 -134,088 -78,063 -366,592 -969,597 -861,955<br />
Contractual repayments of interest-bearing liabilities, including interest, 31 December 2009<br />
EUR 1,000 <strong>2010</strong> 2011 2012 2013 2014 2015- Total<br />
Residual<br />
amount of<br />
interestbearing<br />
liabilities<br />
Loans from financial institutions -136,789 -84,849 -82,981 -81,913 -122,838 -387,294 -896,663 -796,271<br />
Bank overdraft facilities -3,651 -3,651 -3,651<br />
Pension loans -6,787 -6,613 -6,437 -6,261 -4,946 -18,480 -49,524 -43,540<br />
Financial lease liabilities -1,147 -1,131 -1,131 -1,131 -1,131 -6,777 -12,447 -9,776<br />
Instalment plan debts -135 -88 -15 -238 -229<br />
-148,509 -92,681 -90,563 -89,304 -128,915 -412,551 -962,523 -853,468<br />
Contractual cash flow of derivatives, 31 December <strong>2010</strong><br />
EUR 1,000 2011 2012 2013 2014 2015 2016 Total<br />
Non-hedge accounting<br />
Currency forward contracts 293 40 333<br />
Hedge accounting<br />
Currency forward contracts 315 10 324<br />
608 49 657<br />
Contractual cash flow of derivatives, 31 December 2009<br />
EUR 1,000 <strong>2010</strong> 2011 2012 2013 2014 2015 Total<br />
Non-hedge accounting<br />
Interest rate swaps -4,103 -4,103<br />
Currency forward contracts 124 292 416<br />
Hedge accounting<br />
Currency forward contracts -368 -725 -1,093<br />
-4,346 -434 -4,780<br />
42 FINNLINES PLC Financial Statements <strong>2010</strong> (figures in EUR thousand, if not stated otherwise)
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