FINANCIAL STATEMENTS 2010 - Finnlines

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