NSB Financial results 2005
Highlights Pre-tax profit of MNOK 502 an increase of MNOK 332 from 2004. Operating profit of MNOK 589 an increase of MNOK 323 from 2004. Positive development of operations within the core business areas of passenger trains, bus and rail freight. Return on equity after tax of 5,5 percent (1,5 percent). The Board of Directors propose a dividend of MNOK 246. 2
Profit and loss account Parent company Group MNOK 2005 2004 2005 2004 Transport revenue 3 731 3 576 8 629 8 242 Payroll and related costs 1 201 1 184 3 621 3 576 Other operating expenses 1 877 2 054 3 511 3 491 Depreciation, amortization 404 372 908 909 Operating expenses 3 483 3 610 8 040 7 976 Operating profit/loss 249-34 589 266 Net financial items 352 263-87 -96 Pre-tax profit/loss 600 229 502 170 Taxes 186 91 174 80 Net profit/loss for the year 414 137 328 90 3
The operating profit/loss of the NSB Group shows a very positive development 800 600 400 MNOK 200 0-200 -400-600 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Operating profit excluding gains from sale of assets 4
Balance sheet Parent company Group MNOK 2005 2004 2005 2004 Tangible fixed assets 4 554 4 775 8 600 8 772 Fixed assets investments 5 194 5 016 302 424 Total fixed assets 9 748 9 791 8 902 9 196 Investments in financial instruments 181 1 030 1 244 2 111 Other short term receivables 883 1 000 1 514 1 591 Total current assets 1 063 2 030 2 758 3 702 Total assets 10 811 11 821 11 660 12 898 Equity 6 694 6 525 5 881 5 816 Minority interests 0 0 202 203 Loans from financial institutions 1 880 3 565 1 956 3 624 Other long-term liabilities 702 609 659 644 Total long-term liabilities 2 582 4 174 2 615 4 268 Short term debt 1 535 1 122 2 962 2 611 Total equity and liabilities 10 811 11 821 11 660 12 898 5
The return on equity for the NSB Group is approaching the goal set by the owner Return on equity (after tax) -0,6 % 0,1 % 7,2 % 5,5 % 2,4 % 1,5 % Return om capital employed 2,7 % 2,1 % 3,3 % 3,8 % 7,3 % 8,5 % 2000 2001 2002 2003 2004 2005 Goal 2000 2001 2002 2003 2004 2005 Goal -1,0 % -8,5 % 6
Positive development for interest bearing debt (MNOK) and equity ratio (percent of total assets) for the NSB Group 60 % 40 % 20 % 4189 4440 3641 3624 46,1 % 43,9 % 45,1 % 45,2 % 1956 50,4 % 5000 4000 3000 2000 1000 0 % 2000 2001 2002 2003 2004 2005 0 Interest bearing debt Equity ratio 7
Development of man-labour years 10 000 9 000 8 783 8 798 8 855 8 000 7 813 7 000 6 000 5 000 4 000 4 320 4 032 3 793 3 000 2 866 2 640 2 571 2 489 2 589 2 000 1 000 963 1 0 4 3 946 905 1 3 78 1 2 9 2 1 2 3 0 1 12 1 0 Total Passenger trains Bus operations Freight operations Support functions 2 002 2 003 2 004 2 005 8
Considerable improvement within the Passenger train operations NSB AS conducts various group functions, and is, together with NSB Anbud AS, responsible for the passenger train activities. Operating profit increased to MNOK 249 (-34 MNOK), as a result of reduced costs and increased revenues. Punctuality is 92 %. The best punctuality ever. Customer satisfaction has improved compared to last year. The number of travels increased by 1,7 % compared to 2005. The number of passenger kilometers increased by 2,1 %. 9
Passenger trains (NSB AS) financial development MNOK 2002 2003 2004 2005 Operating income 3 949 3 503 3 534 3 665 Operating profit -231-153 -34 249 Margin -5,8 % -4,4 % -1,0 % 6,8 % Total assets 7 753 6 338 6 413 5 203 Non-interest bearing s/t debt 878 821 1 032 1 239 Investments 611 231 1 131 685 4 000 3 800 3 600 3 400 3 200 3 949 6,8 % 3 665 3 534 3 503-1,0 % -4,4 % -5,8 % 2002 2003 2004 2005 10,0 % 5,0 % 0,0 % -5,0 % -10,0 % Operating income in MNOK and operating margin as a percentage. 10
Profitable bus operations The bus operations include passenger transport and special transports. Operating profit increased to MNOK 90 (MNOK 74). A substantial part of the improvement comes from the express bus activities. Operating income for the Group is MNOK 2 921 (MNOK 2 730 ), an increase of 7 % from the year before. After the acquisition of Orusttrafikken AB the Nettbuss Group has become a substantial operator in the Swedish market for public transport. 11
Bus financial development MNOK 2002 2003 2004 2005 Operating income 1 706 2 502 2 730 2 921 Operating profit 72 71 74 90 Margin 4,2 % 2,8 % 2,7 % 3,1 % Total assets 1 805 1 910 1 985 1 999 Non-interest bearing s/t debt 343 393 414 434 Investments 828 505 416 414 4 000 3 000 2 000 1 000 4,2 % 1 706 2 502 2,8 % 2 730 2,7 % 2 921 3,1 % 5,0 % 4,0 % 3,0 % 2,0 % 1,0 % Operating income in MNOK and operating margin as a percentage 0 2002 2003 2004 2005 0,0 % 12
Continuous restructuring of Freight train operations Freight train operations include NSBs share of the CargoNet Group with the subsidiary CargoNet AB. Operating profit is MNOK16 (- MNOK 38). A 10 % growth in transported units in Norway. Punctuality in Norway was 88 %. Financial results in Sweden are not satisfactory. Throughout 2005 Swedish operations has been restructured to secure profitable operations in the future. 13
Freight operations financial development MNOK 2002 2003 2004 2005 Operating income 1 408 1 412 1 381 1 421 Operating profit -67-40 -38 16 Margin -4,8 % -2,8 % -2,8 % 1,1 % Total assets 750 709 715 726 Non-interest bearing s/t debt 224 264 240 231 Investments 443 38 24 75 1 440 1 420 1 400 1 380 1 360 1 421 1,1 % 1 408 1 412 1 381-2,8 % -2,8 % -4,8 % 2002 2003 2004 2005 2,0 % 0,0 % -2,0 % -4,0 % -6,0 % Operating income in MNOK and operating margin as a percentage. 14
The Real Estate operations develop values The Real Estate operations consist of the operations within the ROM Group and NSB Eiendom AS Operating profit is MNOK 210 (MNOK 232). Included in the operating profit is a gain from sale of assets of MNOK 172 MNOK (MNOK131) The Real Estate operations are responsible for a total rental space of approx 735.000 square meters. 15
Real Estate financial development MNOK 2002 2003 2004 2005 Operating income 449 248 372 428 Operating profit 312 71 232 210 Gains from sale of assets 270 31 131 172 Total assets 2 561 2 678 2 681 2 635 Non-interest bearing s/t debt 151 64 501 354 Investments 1 844 458 280 215 500 400 300 200 100 0 449 428 372 248 270 31 131 2002 2003 2004 2005 172 Operating income in MNOK and gains from sale of assets (blue line) in MNOK. 16
Restructuring of support functions Included in support functions are workshops and maintenance of trains, NSB Trafikkservice AS, and the administrative support functions of Finse Forsikring AS and Arrive AS The operating profit for the support functions is MNOK 24 (MNOK 33). 17
18 NSB shall be the customers favorite and the most innovative Nordic transportation group.