\\Sv-data2-hals\transfer\Aarsrapport alle selskaber\kvd_2017_3.xlsx. A/S Storebælt. Interim report. for the period 1 January 30 September 2017

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1 A/S Storebælt Interim report for the period 1 January The interim report comprises: A/S Storebælt, CVR no \\Sv-data2-hals\transfer\Aarsrapport alle selskaber\kvd 3.XLSX Page 1/10

2 SUMMMARY Financial results (figures for the corresponding period in are given in parenthesis). Road revenue DKK 2,409 million (DKK 2,336 million). Compared to, road revenue from the Storebælt fixed link increased by 3.1 per cent. The increase can in part be explained by traffic growth of 3.0 per cent (not adjusted for the leap year day, traffic growth amounts to 2.6 per cent) and in part by a small increase in toll charges with effect from 1 January. Revenue from the railway: DKK 260 million (DKK 238 million). In accordance with the Finance Act, the fee that the rail companies pay the company is to be adjusted in relation to the number of trains that cross the Storebælt fixed link. The number of trains increased compared to, which means there is a slight increase in the railway fee. Operating expenses: DKK 288 million (DKK 297 million). Depreciation: DKK 398 million (DKK 724 million). The difference is primarily due to the write down of Sprogø Offshore Wind Farm by DKK 287 million in September. EBIT: DKK 2,017 million (DKK 1,593 million). Interest expenses: DKK 395 million (DKK 379 million). The increase is due to inflation. The result before value adjustments and tax is a profit of DKK 1,622 million (profit DKK 1,214 million). Value adjustments: income DKK 403 million (expense DKK 361 million). Fair value adjustments are an accounting item with no effect on the company s debt repayment because the debt is repaid at nominal value. Tax constitutes an expense of DKK 446 million (expense DKK 188 million). Changes in relation to the same period in are solely related to changes in the results. The result after tax is a profit of DKK 1,580 million (profit DKK 665 million). Cash flow Cash flow from operating and investing activities (free cash flow) has resulted in a net increase in liquidity of DKK 1,893 million. Cash flow from financing activities has resulted in a net decrease in liquidity of DKK 2,154 million whereby A/S Storebælt s cash at bank and in hand for the period saw a net decrease of DKK 261 million. Outlook for The outlook before financial value adjustments and tax remains unchanged at a profit of approximately DKK 2 billion. Page 2/10

3 COMPREHENSIVE INCOME STATEMENT 1 July - 1 July - (DKK million) Revenue - road 2, , ,069.4 Revenue - railway Other income Total income 2, , ,449.8 Operating expenses Depreciation EBIT 2, , ,203.7 Interest expenses Profit before value adjustment 1, , ,717.6 Value adjustments Profit before tax 2, ,671.1 Tax Profit after tax 1, ,303.4 ASSETS 31 December (DKK million) Non-current assets Fixed assets Road link 13, , ,087.3 Rail link 12, , ,614.3 Port facilities Wind turbine facilities Total road and rail links, port and wind turbine facilities 26, , ,914.6 Other property, plant and equipment/intangible fixed assets Total property, plant and equipment 26, , ,019.9 Other non-current assets Total non-current assets 26, , ,019.9 Current assets Receivables 3, , ,353.1 Cash at bank and in hand Total current assets 3, , ,353.1 Total assets 29, , ,373.0 EQUITY AND LIABILITIES Equity Share capital Retained earnings at the beginning of the period 2, , ,775.7 Profit for the period 1, Proposed dividend 0.0 1, Dividend -1, , ,200.0 Total equity 3, , ,595.9 Liabilities Non-current liabilities 19, , ,619.9 Current liabilities 6, , ,157.2 Total liabilities 26, , ,777.1 Total equity and liabilities 29, , ,373.0 Page 3/10

4 CASH FLOW STATEMENT (DKK million) Cash flow from operating activities Profit before net financials 2, , ,203.7 Adjustment for non-cash items Amortisation, depreciation and impairment Joint taxation contribution Adjustment for other non-cash items Cash flow from operations (operating activity) before change in working capital 2, , ,806.8 Change in working capital Receivables, prepayments and accrued income 1, Creditors and other liabilities -1, Total cash flow from operating activities 1, , ,453.7 Cash flow from investing activities Purchase of facility Total cash flow from investing activities Free cash flow 1, , ,325.6 Cash flow from financing activities Raising of loans 4, , ,729.5 Reduction of liabilities net -4, , ,823.3 Interest paid Interest received Paid dividend to shareholder -1, , ,200.0 Total cash flow from financing activities -2, , ,841.5 Change for the period in cash at bank and in hand Cash at bank and in hand at the beginning of the period Cash at bank and in hand at the end of the period Cash at bank and in hand at the end of the period is composed as follows: Cash at bank and in hand Total cash at bank and in hand at the end of the period Page 4/10

5 MAIN FIGURES Q3 Q3 (DKK million) Net turnover 2, , ,449.8 EBIT 2, , ,203.7 Net financials before value adjustment 1, , Value adjustments net Profit before tax 2, ,671.1 Total assets 29, , , , ,114.3 Equity 3, , , , ,234.1 FINANCIAL RATIOS Q3 Q3 Per cent Profit ratio (EBIT) 74.6% 60.9% 76.7% 41.3% 63.9% Rate of return (EBIT) 9.1% 6.8% 10.1% 4.9% 7.3% Return on facility (EBIT) 10.2% 7.9% 11.3% 5.7% 8.2% Page 5/10

6 Developments over the period EBIT for the period shows a profit of DKK 2,017 million, which is DKK 424 million higher than the same period in. Revenue from the road link across Storebælt totals DKK 2,409 million and is DKK 73 million higher compared to the revenue for the same period in. The increase can primarily be attributed to a rise in traffic of 3.0 per cent (not adjusted for the leap year day, traffic growth amounts to 2.6 per cent). Passenger car traffic increased by 2.8 per cent and lorry traffic by 5.0 per cent. Coach traffic declined by 3.5 per cent compared to the same period in. A small proportion of the revenue increase can be attributed to the increase in toll charges for HGVs and coaches as from 1 January. Revenue from the rail link increased by DKK 22 million from DKK 238 million for the same period in to DKK 260 million, which is due to a higher number of trains crossing Storebælt in. Operating expenses decreased by DKK 8 million compared to the same period in. Depreciation decreased by DKK 327 million. The significant difference in depreciation is attributable to the write down of Sprogø Offshore Wind Farm by DKK 287 million in September. Interest expenses total DKK 395 million, which is a rise of DKK 16 million compared to. The rise is related to inflation during the period and is in line with the company s expectations. The result before value adjustments and tax for the period shows a profit of DKK 1,622 million against a profit in of DKK 1,214 million. The value adjustments of net financials amount to an income of DKK 403 million. For the same period in, value adjustments amounted to an expense of DKK 361 million. Fair value adjustments are an accounting item with no effect on the company's repayment ability because the debt is repaid at nominal value. Tax for the period represents a net expense of DKK 446 million against an expense of DKK 188 million in. The result after tax is a profit of DKK 1,580 million. The result for the corresponding period in showed a profit of DKK 665 million. Compared to the same period in, the result after tax is positively affected by accounting adjustments of approx. DKK 600 million in the form of value adjustments of net financials. Financing expenses excluding value adjustments total 2.32 per cent per annum against 2.14 per cent per annum for the same period last year. Including value adjustments, financing expenses total 0.44 per cent per annum compared to 3.78 per cent per annum for the same period in. A/S Storebælt s financial risks are, in the main, unchanged as compared to the note to the Annual Report for, which deals with financial risk management. Developments in financial markets continue to make it necessary that particular attention is paid to the credit risks associated with liquidity positions as well as financial transactions in general. At the end of September, A/S Storebælt s floating rate debt was 33.7 per cent of the net debt. On 21 September, the Danish Government and the Danish People s Party entered into a political agreement on a change to vehicle tariffs and have agreed a 25 per cent fee reduction for Page 6/10

7 road traffic and passenger trains across Storebælt. The final structure of the reduction is yet to be determined, but the isolated effect of the fee reduction means an extended repayment period for A/S Storebælt of approximately three years and amounts to approximately 33 years (approx. 2031). Outlook for The result before financial value adjustments and tax is expected to be a profit of approximately DKK 2 billion. Equity development (DKK million) 31 December Share capital Equity at the beginning of the period 3, , ,130.7 Profit for the period 1, Proposed dividend 0.0 1, Paid dividend -1, , ,200.0 Equity at the end of the period 3, , ,595.9 Equity is positive at DKK 3.6 billion. Equity movements for the period relate in part to the result for the period 1 January to and in part to the dividend distribution of DKK 1,250 million, which was adopted at the company s Annual General Meeting on 18 April. At the end of September, A/S Storebælt s interest-bearing net debt amounts to DKK 21.1 billion. Future operating results are estimated on the basis of the fixed fee from Banedanmark for use of the rail link as determined by the Minister for Transport, Building and Housing and on the basis of road traffic forecasts for the company. It should be noted that under the terms of the Act on Sund & Bælt Holding A/S for the parent company and for A/S Storebælt and the other subsidiaries, the Danish State has extended separate guarantees for interest and repayments and other ongoing liabilities relating to the company s loans against payment of a guarantee commission of 0.15 per cent. Moreover, and without further notification of each individual case, the Danish State guarantees the company s other financial liabilities. ACCOUNTING POLICIES The interim report is presented in accordance with IAS 34 provisions. The accounting policies are in accordance with those used in the Annual Report. EVENTS AFTER THE BALANCE SHEET DATE No events have occurred after the balance sheet date that could affect these accounts. Page 7/10

8 OWNERSHIP The entire share capital of A/S Storebælt is owned by Sund & Bælt Holding, which is owned by the Danish State. AUDITOR S STATEMENT No audit or review of the interim report has been carried out Page 8/10

9 STATEMENT BY THE BOARD OF DIRECTORS AND MANAGEMENT BOARD The Board of Directors and Management Board of A/S Storebælt have today discussed and approved the interim report for the period 1 January to. The interim report, which has not been audited by the company s auditors, has been prepared in accordance with IAS 34 Presentation of Interim Reports as approved by the EU and additional Danish disclosure requirements for interim reports for companies with publicly traded debt instruments. We are of the opinion that the interim report gives a true and fair view of the company s assets, liabilities and financial position as at and the results of the company s activities and cash flow for the period 1 January. It is our view that the Management Report contains a true and fair view of developments in the company s activities and financial position, the results for the period and the company s financial position as a whole and a description of the key risks and uncertainties facing the company. Copenhagen, Management Board Mikkel Hemmingsen, CEO Board of Directors Peter Frederiksen Chairman Jørn Tolstrup Rohde Vice-Chairman Walter Christophersen Claus Jensen Ruth Schade Lene Lange Page 9/10

10 APPENDIX 1 FINANCIAL RATIOS The financial ratios have been prepared in accordance with the Danish Society of Financial Analysts Recommendations and Key Figures The financial ratios given in the main figures and financial ratios summary have been calculated as follows: Profit ratio: Rate of return: Return on facilities: EBIT less other income in percentage of turnover. EBIT less other income in percentage of total assets. EBIT less other income in percentage of investment in road and rail links. Page 10/10

\\Sv-data2-hals\transfer\Aarsrapport alle selskaber\kvd_2018_1.xlsx. Sund & Bælt Holding A/S. Interim report. For the period 1 January 31 March 2018

$\\Sv-data2-hals\transfer\Aarsrapport alle selskaber\kvd_2018_1.xlsx. Sund & Bælt Holding A/S. Interim report. For the period 1 January 31 March 2018$ Sund & Bælt Holding A/S Interim report For the period 1 January The interim report comprises the Group and the Group s companies: Sund & Bælt Holding A/S (parent company), CVR no. 15694688 A/S Storebælt,