Interim report T2 2015

Transcription

1 NSB Group Page 1 of 21 Interim report T / NSB GROUP /

2 Page 2 of 21 Table of contents INTERIM REPORT T Key information 3 4 Group income statement 11 Group balance sheet 12 Segment information 13 Group cash flow statement 15 Development in equity 16 Notes reporting information 17 20

3 Page 3 of 21 Key information OPERATIONAL KEY FIGURES Year to date 2015 Year to date 2014 Passenger train Number of train journeys Norway (mill.) Produced seat kilometers in Norway (mill.) 6,397 6,091 Punctuality passenger train in Norway 90 % 89 % Customer satisfaction pass. train (index 0-100) Bus transport Number of bus journeys (mill.) Produced kilometers (mill.) Customer satisfaction express bus (index 0-100) Freight transport Number of transported TEU freight train (1,000) Punctuality freight train 91 % 90 % FINANCIAL KEY FIGURES Year to date 2015 Year to date 2014 Group profit Operating revenue 9,819 9,715 Operating profit 1,675 1,023 Profit before income tax expense 1, Group cash flow Net cash flow from operations 2,246 1,185 Group balance sheet Net interest bearing debt nominal value 6,445 8,491 Equity Return on equity* (ROE) 25.1 % 17.9 % Equity ratio 33.7 % 29.7 % The numbers in the brackets in the report are comparative numbers from the same period the previous year. All accounting figures are in MNOK. Comments are based on accumulated numbers for the year, except when otherwise stated. * Rolling 12 months

4 Page 4 of 21 The Groups strong profit development continues. All areas show a positive operating profit at the end of the interim period. Expanded train service for the passenger train operations is a success, and more passengers than ever before travel by train. The NSB Group has made considerable investments in new trains to support this development. The bus operations continue the positive development after a period of restructuring. The number of journeys and activity are somewhat reduced due to the sale of operations in Denmark at the end of last year. The freight operations show a good development with a positive operating profit after many years being negative. The restructuring measures start to become noticeable and contribute strongly to positive profits. The real estate operations in the Group still have high activity and contribute with good results. The fair value development is positive for the interim period. All Group segments deliver positive profits and show progress compared to the previous year. Development in profit/loss Profit for the group The year to date profit for the NSB Group is characterized by stable revenue and considerably improved profit compared to the same period last year: // Operating revenue shows an increase in 2015 compared to the same period in Total for the Group, the operating revenue amounts to 9,819 (9,715) MNOK, an increase of 1.1 %. // The operating profit is 1,675 (1,023) MNOK, an increase of 63,7 %. // Profit after income tax expense is 1,197 (534) MNOK, an increase of %.

5 Page 5 of 21 Results for the operating segments Operating revenue All business segments show stable and increasing operating revenue. In 2014, revenue from the bus segment includes revenue from Denmark which was sold 1 st of October last year. This explains the reduction in revenue for this business segment. Figure; Year to date operating revenue for the business segments in 2015 and ,000 Year to date 2014 Year to date ,000 4,000 3,000 2,000 1,000 0 Passenger train Bus Freight Train maint. Real estate Operating profit The operating profit improved for all business segments compared to the same period last year and results in a large increase for the Groups operating profit. The development for passenger train (increase of 164 MNOK), bus (increase of 50 MNOK), freight (increase of 80 MNOK), train maintenance (increase of 29 MNOK) and real estate (increase of 321 MNOK) all contribute to this effect. Included in the profit is a positive element of 195 MNOK related to the plan change in disability retirement benefits as at 1 st of January. Figure; Year to date operating profit for the business segments in 2015 and Year to date 2014 Year to date 2015 Passenger train Bus Freight Train maint. Real estate

6 Page 6 of 21 Passenger train The number of journeys continues to increase compared to the same period last year. Last year s restructure of the timetable and the high investment rate in more and new train sets have contributed to an even better offer to our customers. Most of the operating deviations for the interim period are due to faulty signal system as well as executing planned maintenance on the infrastructure, which are the responsibility of the Jernbaneverket (National Rail Administration). Passenger train operations produced 6,397 (6,091) million seat kilometers in Norway. The customers have made 44.1 (41.7) million journeys, a growth of 5.7 %. The operating profit for the Group s passenger train is 784 (620) MNOK, an increase of 26 %. The improvement is mainly due to more people travelling due to the increase in service provided and comes in addition to the previous year that were a record year in itself. In connection with the upgrade of capacity to strengthen the service offered to the passengers, NSB Passenger train has invested in a total of 81 new train sets with delivery completed by At the end of August 2015, 68 of these have been received and put into operation. The total amount used for investments so far this year is 842 MNOK. Bus After implementing restructuring measures Nettbuss shows a good and positive development. Several large tenders have been submitted this year. Nettbuss has given a good impression in several of these processes and has among other won contracts in Grenland, in Møre and in Kongsvinger in Norway and in Østersund and Lerum in Sweden. The number of journeys is 68 (90) million, a reduction of 22 million compared to last year. In 2014, the numbers include the operations in Denmark which were sold 1 st of October The operating profit for bus is 144 MNOK (94 MNOK), an increase of 53 %. The improvement is due to both market conditions like reduced diesel prices and improvements in underlying operations due to carried out restructuring measures among other things. Investments of 226 MNOK has been made during the interim period. Freight Volume in the form of transported TEU is reduced to 238 (243) thousand so far in The number of TEU kilometers is 182 (180) million. Operation in CargoNet is improved after a period of restructuring. The company s management is working on completion and follow-up of the improvement measures of the adopted efficiency plan. Revenue is stable. Operating profit is 12 (-68) MNOK, an improvement of 80 MNOK. The profit improvements are mainly due to carried out cost reductions.

7 Page 7 of 21 Train maintenance Mantena performs maintenance on trains both in Norway and in Sweden. The main customers are companies within the NSB Group. The operating profit for train maintenance is 67 (38) MNOK, an increase of 76 % compared to last year. The distance between each full-stop due to technical faults for the trains Mean Distance Between Failure (MDBF) which are measured in thousand km (TKM) is an important measurement parameter for the maintenance processes in train operations. The mean distance between full-stop due to technical failures has shown a strong positive development for the passenger train operations by 145 %; from about 27 TKM as at August 2014 to about 66TKM as at August Mantena contributes considerably to less stops due to technical faults through well performed maintenance and reduced recurring faults coming out of the workshop. In the future it s expected that train maintenance in Norway will be put out for tender. Mantena continue to work to improve and streamline the maintenance to be best positioned for such a situation as possible. Real estate The operating revenue has increased by 137 MNOK as at the second interim period in 2015, compared to The main reason for the improved profit is proceeds from selling a newly constructed commercial property in Oslo as well as slightly increased lease revenue. In addition there are unrealized value changes on investment property, which are positive with an effect of 264 (116) MNOK for the interim period. This is mainly due to the positive value development on central properties in Oslo as well as effects from progression and increased amount of leased property in development projects. There is high activity in the real estate operations with several on-going development projects. The largest of these projects are in close proximity to Oslo S, Grefsen, Bergen and Jessheim stations. Investments so far this year are 443 MNOK. Financial areas Financial items Financial items show a loss of -127 (-299) MNOK for the interim period, an improvement of 172 MNOK. The change is mainly due to a positive effect from unrealized value changes in financial items valued when measured at fair value and increased financial revenue. Unrealized value changes amount to 53 (-6) MNOK, an increase of 59 MNOK. Changes in agio amount to 7 (-50) MNOK, an increase of 57 MNOK, which is a consequence of NOK weakening over the last year. Liquidity The Group s holdings in cash and bank deposits in Norwegian banks as at the end of the 2 nd interim period is 2,714 (1,508) MNOK. Restricted tax withholdings is included with 207 (197) MNOK. In addition, 237 (255) MNOK are placed in short term commercial papers and bonds with short maturities, and 64 (59) MNOK in equity funds. A financial reserve of MNOK has been established through a syndicated revolving loan facility which expires in April 2017, as well as an overdraft facility of 50 MNOK.

8 Page 8 of 21 Interest bearing debt There are two short term commercial papers outstanding with a total nominal value of MNOK 1,000. Total interest bearing debt for the Group, except retirement benefit obligations, is 12,203 (12,120) MNOK as at the 2 nd interim period. The nominal value of the debt is 9,460 (10,313) MNOK. The difference between total and nominal value on the debt is related to value changes and accrued interest. Net interest bearing debt is 6,445 (8,491) MNOK. The Group s long-term financing is obtained through a 1,750 (1,750) MEUR Euro Medium Term Note Program (EMTN). Cash flow for the period The Group has net increases in cash and cash deposits from operations, financing, investments and currency effects accounted for, of 430 MNOK for the interim period. Cash and cash deposits at hand as at the 31 st of August is 2,714 MNOK. Figure; Effects on cash and bank deposits during this period s cash flows 5,000 4,500 4,000 3,500 2,246 1,257 3,000 2,500 2, ,500 1,000 2,284 2, Beginning balance 1.1 Operations Investment Financial Currency effects Ending balance 31.8 Dividends for last year At the general Assembly meeting on the 27 th of May 2015, it was decided that a dividend payment of 753 MNOK will be made for the accounting year The dividend will be paid during the third interim period.

9 Page 9 of 21 Events after the interim period New railway reform On the 12 th of May 2015 the Norwegian Ministry of Transportation and Communications (the Ministry of Transport) submitted a white paper on a proposed reform of the Norwegian railway sector to Stortinget (the Norwegian parliament), with a proposal of a reform of the railway sector which would affect the NSB Group significantly. The aim for the government with the reform is to achieve a clearer division of roles in the sector and facilitating tenders in the passenger rail service. The Parliament processed the reform before the summer and approved it. For the NSB Group the reform, if it is implemented as described, will among other things have the following implications: The real estate company of the NSB Group will be transferred to a new infrastructure company The ownership of the train maintenance company of the NSB Group, Mantena, will be transferred to the Ministry of Transport The ownership of the NSB Groups trains will be transferred to the government Competition will gradually be introduced to the passenger train operations The NSB Group will continue to be a 100 % state owned company The white paper emphasizes the importance of that the structural changes to the NSB Group will be implemented in such a way so that they do not create unnecessary challenges to the operational business. Furthermore, that the future NSB Group must have a capital structure that is sufficient to support its activities both in the transition period and in the future organisational structure. Possible claims against Nettbuss ESA has announced in a case against Aust Agder County regarding wrongfully paid subsidies, that the county has paid too much in subsidies to Nettbuss during the period According to the verdict, the Aust Agder County will prepare a claim towards Nettbuss regarding a repayment of wrongfully paid subsidies. There are ongoing discussions between Nettbuss and Aust-Agder County Council about what is the correct understanding of the ESA s decision, as well as the calculation method to be applied. Nettbuss assumes that a possible refund will not be material to the business. There are no material events after the date of the interim period report other than those mentioned in this report.

10 Page 10 of 21 Closing statement The interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. The Board of Directors and CEO confirm, to the best of our knowledge, that the interim management report expresses the most central risk factors the Group faces in the next reporting period, as well as transactions with related parties in the current interim period. The Board of Directors and CEO confirm, to the best of our knowledge, that the condensed set of financial statements for the 2 nd interim period in 2015 have been prepared in accordance with current accounting standards and give a true and fair view of the Group s assets, liabilities, financial position and profit or loss as a whole as at the end of the interim period as well as an overview over important events in the accounting period and their influence on the accounts. Oslo, 7 th of October 2015 Board of Director s NSB Kai Henriksen / Chairman of the Board Bjarne Borgersen Wenche Teigland Åsne Havnelid Tore Heldrup Rasmussen Audun Sør-Reime Rolf Jørgensen Jan Audun Strand Geir Isaksen / CEO

11 Page 11 of 21 Income statement Year to date 2 nd interim period Year Last months Operating revenue 9,819 9,715 4,884 4,975 15,336 15,440 Payroll and related expenses 4,350 4,637 2,109 2,242 6,975 6,688 Depreciation and impairment 962 1, ,624 1,562 Other operating expenses 3,201 3,199 1,626 1,631 5,064 5,066 Total operating expenses 8,513 8,860 4,196 4,384 13,663 13,316 Share of loss(-)/profit of joint ventures Share of loss(-)/profit in associates Unrealised value change investment property Operating profit 1,675 1, ,001 2,653 Financial income Financial expenses Net financial expenses - pensions Unrealised fair value changes Net financial items Profit before income tax 1, ,597 2,421 Income tax expense PROFIT FOR THE PERIOD 1, ,509 2,172 Attributable to Non-controlling interest Equity holders 1, ,505 2,164 TOTAL 1, ,509 2,172 OTHER COMPREHENSIVE INCOME Profit for the year 1, ,509 2,172 Items that will not be reclassified to profit or loss Deviation retirement benefit obligations Tax related to items that will not be reclassified Items that can be reclassified in net income in later items Change in value of reclassification of investment property Currency translation differences Tax related to items that may be reclassified Total comprehensive income for the period 1, ,672 Attributable to Non-controlling interest Equity holders 1, ,664 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 1, ,672

12 Page 12 of 21 Balance sheet ASSETS Intangible assets Property, plant and equipment 14,406 14,269 14,415 14,838 Investment property 4,880 4,526 4,206 3,895 Investments in associates Financial assets Total non-current assets 19,770 19,223 18,968 18,939 Investment in joint ventures Inventories and development properties 1,361 1,312 1,437 1,330 Assets held for sale ,204 Trade and other receivables 1,274 1,374 1,800 1,351 Derivative financial assets 2,388 2,766 2,252 1,446 Financial assets Cash and bank deposits 2,714 3,684 2,284 1,508 Total current assets 8,775 10,181 8,883 7,797 TOTAL ASSETS 28,545 29,404 27,851 26,736 EQUITY AND LIABILITIES Ordinary shares and share premium 5,144 5,144 5,144 5,536 Restricted equity - revalued investment property 1,966 1,796 1,976 1,893 Retained earnings 2,505 1,924 1, Non-controlling interest Total equity 9,618 8,862 8,400 7,943 Borrowings 10,231 9,759 9,926 9,326 Deferred income tax liabilities 1, ,084 Retirement benefit obligations 2,524 2,536 2,552 2,072 Provisions for other liabilities and charges Total long term liabilities 13,917 13,244 13,308 12,625 Trade and other payables 3,033 3,212 3,302 3,360 Tax payable Borrowings 1,702 3,797 2,495 2,528 Derivative financial instruments Total short term liabilities 5,010 7,298 6,143 6,168 TOTAL EQUITY AND LIABILITIES 28,545 29,404 27,851 26,736

13 Page 13 of 21 Business segments The Group has operations within the following main activities: Passenger train: passenger transport by rail including Group functions Bus: passenger transport by bus Freight: freight transport by rail Train maintenance: workshop and maintenance of freight- and passenger trains Real estate: rental and development of property As at 2 nd interim period as of 2015 Passenger train Bus Freight Train maintenance Real estate Group External operating revenue 4,836 3, ,819 Internal operating revenue Operating revenue 4,915 3, ,819 Operating expenses 3,691 3, ,551 Depreciation, impairment Total operating cost 4,162 3, ,513 Share of profit/loss in joint ventures Share of profit/loss in associates Urealized value changes, investment property Operating profit ,675 Segment assets 13,160 4, ,627 26,157 Investments ,534 As at 2 nd interim period as of 2014 Passenger train Bus Freight Train maintenance Real estate Group External operating revenue 4,612 3, ,715 Internal operating revenue Operating revenue 4,713 3, ,715 Operating expenses 3,649 3, ,836 Depreciation, impairment ,024 Total operating cost 4,118 3, ,860 Share of profit/loss in joint ventures Share of profit/loss in associates Urealized value changes, investment property Operating profit ,023 Segment assets 11,359 4, ,474 25,290 Investments ,556

14 Page 14 of 21 Business segments 2014 Passenger train Bus Freight Train maintenance Real estate Group External operating revenue 6,934 5,883 1, ,207 15,336 Internal operating revenue , Operating revenue 7,087 5,907 1,032 1,367 1,461 15,336 Operating expenses 5,673 5,148 1,077 1, ,039 Depreciation, impairment Total operating cost 6,466 5,807 1,123 1, ,663 Share of profit/loss in joint ventures Share of profit/loss in associates Urealized value changes, investment property Operating profit ,246 2,001 Segment assets 12,688 4, ,397 25,599 Investments 1, ,302 Last 12 months Passenger train Bus Freight Train maintenance Real estate Group External operating revenue 7,158 5,557 1, ,369 15,440 Internal operating revenue , Operating revenue 7,289 5,574 1,042 1,349 1,598 15,440 Operating expenses 5,715 4,804 1,010 1, ,754 Depreciation, impairment ,562 Total operating cost 6,510 5,409 1,053 1, ,316 Share of profit/loss in joint ventures Share of profit/loss in associates Unrealized value changes, investment property Operating profit ,577 2,653 Segment assets 14,489 4, , Investments 1, ,339 Segment assets in the tables above consist mainly of property, plant and equipment, intangible assets, inventories, derivatives that are mainly used for hedging towards future transactions, trade assets and other assets and cash, while deferred tax asset, investments and derivatives held for sale or used for hedging for borrowings are not included.

15 Page 15 of 21 Cash flow statement 2 nd interim period Year Last months Profit for the period before income tax expense 1, ,597 2,421 Depreciation and impairment in the income statement 962 1,031 1,642 1,573 Gain/loss on sale of property, plant and equipment (PPE) Difference between expensed and payments made/received for pensions Net changes to provisions for other liabilities and charges Net unrealised fair value changes Interest items Shares of profit/loss (-) from associated and joint ventures Changes to working capital Net cash flow from operating activities 2,246 1,185 1,338 2,399 Acquisition of subsidiaries less cash acquired Proceeds from sale of property 183-1,671 1,854 Loans paid to/from single purpose/joint ventures Purchase of PPE and investment property -1,494-1,555-2,302-2,241 Proceeds from sale of assets Dividends received Net cash flow from investment activities -1,257-1, Proceeds from borrowings 1,000 1,997 2,289 1,292 Repayment of borrowings -1, ,451-2,122 Dividends paid to company's shareholders Dividends paid to non-controlling interest Net cash flow from financial activities NET CHANGE IN CASH AND BANK DEPOSITS FOR THE PERIOD ,021 1,130 Cash and bank deposits as at the beginning of the period 2,284 1,248 1,248 1,508 Foreign exchange gain/loss on cash and bank deposits CASH AND BANK DEPOSITS AS AT THE END OF THE PERIOD 2,714 1,508 2,284 2,714

16 Page 16 of 21 Development in equity 2 nd interim period 2015 Ord. shares and share premium Restricted equity, value changes Retained earnings Accumulated currency translation Noncontrolling interest Total Equity 1 st of January ,144 1, , ,400 Profit for the interim period ,197 Changes to non-controlling interest Changes to fund due to value changes From other comprehensive income Dividends paid EQUITY 31 ST OF AUGUST ,144 1, , ,618 2 nd interim period 2014 Ord. shares and share premium Restricted equity, value changes Retained earnings Accumulated currency translation Noncontrolling interest Total Equity 1 st of January ,536 1, ,941 Profit for the interim period Changes to non-controlling interest Changes to fund due to value changes From other comprehensive income Dividends paid EQUITY 31 ST OF AUGUST ,536 1, , Ord. shares and share premium Restricted equity, value changes Retained earnings Accumulated currency translation Noncontrolling interest Total Equity 1 st of January ,536 1, ,941 Profit for the interim period , ,509 Changes to non-controlling interest Changes to fund due to value changes From other comprehensive income Dividends paid EQUITY 31 ST OF DECEMBER ,144 1, , ,400

17 Page 17 of 21 Notes Framework and accounting principles The NSB Group s financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and interpretations from the IFRS interpretations committee (IFRIC) as determined by EU. The consolidated financial statements for the Group have been prepared on a historical cost basis except for derivative financial instruments, certain financial assets and liabilities and investment properties which are carried at fair value. The interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting. The interim financial statements should be viewed in conjunction with the last published annual report containing a full description of the Group s accounting principles. Income tax expense is calculated using nominal tax rate for each separate country. For items where one cannot assume positive results in the future, deferred tax asset has not been calculated. Accounting principles applied in 2015 are consistent with the accounting principles that were used for the financial statements in The comparative numbers for the 2 nd interim period are restated as a result of the effect from the life expectancy adjustment for the Group s public defined benefit pension plan at This is further described in the Group s annual accounts for Investment property Overview of value changes to investment property Year to date Year Balance sheet value 1 st of January 4,206 4,238 4,238 Reclassification from property, plant and equipment Disposals Additions /investments Value changes due to change in market value Value changes when reclassifying 18-1 Balance sheet value at the end of the period 4,880 3,895 4,206

18 Page 18 of 21 Notes Estimation of fair value Estimation of fair value is calculated as present value of future cash flows during and after the end of the contract period using the same principles and methodology as was the basis for the last annual accounts. According to the Group s methodology for estimating fair value, an update of the valuation of the portfolio with the assistance of external appraiser for the material properties has been performed. In addition, the external market valuation is made on a rolling basis from a representative selection of the portfolio. During the 2 nd interim period in 2015, a secondary valuation of a sample was made, representing 46 % of the portfolio value. Sensitivity analysis Estimated fair value is particularly sensitive to changes in return/yield and assumptions about development in lease contracts. The following sensitivity analysis has been performed for the 2 nd interim period: Changes in assumptions Changes in fair value Percentage change Reduction of 25 basis points on 1. yrs direct yield % Increase of 25 basis points on 1. yrs direct yield % Increase of future rental agreements under contract by 5% % Unrealized value changes Below is a specification over unrealized value changes of assets, liabilities and derivatives that are measured at fair value. Development in the period Per 2 nd interim period Year Unrealized value changes investment property Unrealized value changes reclass. Investment Property Unrealized value changes reclass. Investment Property-other compr. Income 18-1 Total unrealized value changes investment property Unrealized value changes derivatives used for hedging Unrealized value changes bonds Unrealized value changes market placements Total unrealized value changes financial items Total unrealized value changes income statement Total unrealized value changes other comprehensive income 18-1 Total unrealized value changes other comprehensive income

19 Page 19 of 21 Notes Analysis of operating income per category The Group has one customer that constitutes more than 10 % of operating revenue. As at 31 st of August the public purchase of services for the NSB Group is 2,066 (1,962) MNOK. Income Year to date 2 nd interim period Year Last months Transport revenue 8,800 8,895 4,449 4,551 13,442 13,347 Sales revenue Other revenue ,291 1,328 Total 9,819 9,715 4,885 4,975 15,336 15,440

20 Page 20 of 21 NSB Group Changes to the railway sector The Parliament has approved the government s plan for significant changes to the railway sector in Norway. Passenger train operations New contract for Tågkompaniet Tågkompaniet, NSB s subsidiary in Sweden, will run the regional traffic in northern Sweden for the coming 9 years, and has an expected turnover of around 220 MSEK per year. Start-up is the 20 th of August The assignment also includes maintenance of the trains. Tågkompaniet has chosen Euromaint as their partner. One of the most beautiful A circular journey called «Norway in a Nutshell» by Fjord Tours is crowned as one of Europe s five most beautiful scenic routes. The combination of Bergensbanen, Flåmsbana, and a boat trip on Aurlands fjord and Nærøy fjord and a bus trip down the steep Stalheimskleiva is difficult to compete with whatever the season; it is said in the description by Railbookers. The company Fjord Tours is partly owned by the NSB Group. Bus Important contracts for Nettbuss Nettbuss has secured two major contracts in Sweden and Norway. Länstrafiken in Östersund has awarded Nettbuss Stadsbussarna AB the contract to operate the bus traffic in Östersund. The contract runs from the 13 th of June 2016 for five years with an option for a further three years. Nettbuss Stadsbussarna has run the city traffic in Östersund since 2001, and has over a 100 employees. Hedmark Trafikk has awarded the contract in Glåmdalen to Nettbuss Øst AS. The contract is valid for ten years from the 1 st of June 2016, and includes 80 drivers, 80 buses and an annual production route of just over three million route kilometers. Streamlining The operations have over a period been through major restructuring measures to improve the economy and operations. So far this has provided several good results. The efficiency measures continue.

21 Page 21 of 21 Freight New freight terminal south of Trondheim There are only two relevant locations for placing a new freight terminal in Trondheim. Both are south of the city. Jernbaneverket (National Rail Administration) have made a strong recommendation of Torgård, and have placed Søberg in second position. The government has been keen to get a quick decision about where the new freight terminal will be located, and hope for a decision during the autumn. Restructuring measures The operations have in the course of a period gone through major restructuring measures to improve the financial position and operations. This has so far given several good results. The efficiency measures continue. Train maintenance Reorganisation and restructuring Mantena has reorganised their operations and compiled a new management team. This is because the increased demands to deliver cost-effective services in a competitive market. Property Oslo central station: the descent from the Akrobaten Bridge was completed and opened Rom Eiendom has completed the new descent from the Akrobaten Bridge to platform 2 between track 3 and 4 at Oslo S. After the opening this has considerably improved availability and accessibility for train passengers to Oslo S. Agreement on urban development in Drammen Drammen municipality, Rom Eiendom and Jernbaneverket (National Rail Administration) will together ensure good urban development of railway properties in Drammen, and have signed a new cooperation agreement for development of the properties. This specifically means that Rom Eiendom now may go ahead with the hotel plans at Drammen station. More bicycle parking Rom Eiendom has their plans ready for new bicycle parking at Oslo S. This is an important contribution to the increased emphasis on cycling from Oslo Council. Initially, they can build up to 250 new bicycle parking spaces in the existing buildings at Oslo S. These can be finished this fall. Later there may be room for a further 2,000 bicycle parking places.