ANNUAL REPORT 2009 FJELLINJEN

ANNUAL REPORT 2009
FJELLINJEN
1
TOLL ROAD FUNDS ARE CHANGING THE FACE
OF OSLO AND AKERSHUS
The story of Fjellinjen is inextricably linked to the urban and regional develop­ment
in Oslo and its neighbouring county Akershus. In this annual report we will take
a closer look at a few selected projects that would have been difficult to realize
without toll road funds, or at least would have taken a lot longer to complete.
The Festning Tunnel was completed in 1990, but
has now been equipped with new lighting, new road
signs and new lane signal lights. The ventilation
and safety systems have also been upgraded. This
total upgrade will make it easier to connect the
Festning Tunnel to the Bjørvika Tunnel, which is
currently under construction.
CONTENTS:
ABOUT FJELLINJEN AS p. 5
THE BOARD OF DIRECTORS
REPORT OF THE BOARD
OF DIRECTORS p. 9
OPERATIONS
OPERATIONS p. 19
TOLL ROAD FUNDS ARE
CHANGING THE FACE OF
OSLO AND AKERSHUS p. 20
ACCOUNTS
PROFIT AND LOSS
ACCOUNT p. 25
BALANCE SHEET p. 26
NOTES p. 28
STATEMENT OF
CASH FLOW p. 34
ACCOUNTING
PRINCIPLES p. 35
APPENDIX
AUDITOR’S ACCOUNT p. 41
CREDIT RATING p. 42
Many important road and public transport projects in Oslo and Akershus are
fully or partly financed by toll road funds from Fjellinjen. Without these funds,
many of our local areas would have looked quite different from what they do today.
The most ambitious road projects have involved the construction of tunnels,
revitalizing previously traffic-burdened areas to the delight of both motorists
and local residents alike. In addition, these efforts have created a far greater and more
20 years have passed since the first road tolls were
collected at the toll booths of Oslo and Akershus.
These funds have been crucial to the development
of our local areas, including the road network and
public transport system. The counties of Oslo and
Akershus are home to a quarter of Norway’s
population, and the number of residents in this
region is expected to increase by 230,000 over the
next 20 years. The continued reinforcement of
urban development, the road network and public
transport is therefore important to the residents of
Oslo and Akershus. Fjellinjen’s primary objective is
to channel as much as possible of its revenues into
the realization of projects adopted by the Norwegian Parliament. Thanks to the toll road funds,
many of our local areas are becoming increasingly
more pleasant to travel through.
2009 has been an eventful year for Fjellinjen – and
for our local areas. Many new road projects have
been initiated, further developed and completed.
Among other things, the E16 road stretch between
Vøyenenga and Bjørum has been upgraded, which
has created a better living environment in the area.
Also, commuters are now able travel faster to and
from Oslo, and not least holidaymakers escaping
the city on Friday afternoons for a quiet weekend in
the countryside. At Nesodden, the areas around
Tangen has been upgraded and become more
functional for the 10,000 motorists and commuters
who use these roads daily. Also the Akershus
Festning Tunnel was upgraded in 2009.
As an organization, Fjellinjen has also been
strengthened during the course of 2009. At the
beginning of the year we experienced an exceptionally large number of customer enquiries, and so
the efficiency of our customer relations centre was
put to the test. Throughout the year we have made a
number of improvements. In the fall of 2009 we
adopted an arrears invoicing system to replace our
previous advance invoicing system. This makes it
considerably easier for our customers to recognise
the relation between the number of toll station
passings and the size of payments. Our long
experience as a toll road company and the large
projects we are involved in at any given time, ensure
our continued development as a strong and
responsible competency-oriented organization. I
am proud to work in and be part of such a working
environment.
As the largest toll road company in Norway, we
possess a unique experience and competence
which we believe can contribute in a positive way to
the administration and further development of
Norwegian toll roads in 2010 and in the years to
come.
Sincerely,
Jacob Trondsen
Managing Director
comfortable accessibility for motorists, cyclists and public transport passengers.
2
3
ABOUT FJELLINJEN AS
ORGANIZATIONAL CHART
Fjellinjen AS is
located in Oslo.
The company’s main
task is to partly
finance the building
MANAGING
DIRECTOR
of the road network
and the public
transport system in
the counties of Oslo
Department
and Akershus.
Unit
IT
DEVELOP­
MENT
UNIT
FINANCIAL AND
ADMINISTRATIVE
DEPARTMENT
IT DEPARTMENT
IT
OPERA­
TIONS
UNIT
ROADSIDE /
OBU
LOGISTICS
FINANCIAL
UNIT
INTERNAL
SERVICES
UNIT
CNTR.
COM.
HR
EASYGO/
EPC UNIT
CUSTOMER
SERVICE
DEPARTMENT
CALL
CENTRE
SUPPORT
ADMINI­
STRATION
Fjellinjen is named after the first project the
company was involved in: the financing of the E18
through the city centre of Oslo. The E18 had
previously run right across Rådhusplassen, or City
Hall Square. In 1990, Rådhusplassen became
car-free, and all traffic was moved below ground,
into Fjellinjen, or the Festning Tunnel, as it is called
today.
Fjellinjen was founded on 13 February 1986 with
the above mentioned project as its main objective.
The municipality of Oslo was the sole shareholder.
In accordance with a resolution passed by the
Norwegian Parliament on June 8 1988 (Storting
Proposition No. 96 (1987-1988)), the company’s
area of responsibility was expanded to include the
part-financing of the construction of major roads in
Oslo and Akershus (Oslo Package 1). As part of this
proposition, the establishment of a toll ring to serve
as a basis for this part-financing was also passed.
The County of Akershus became a shareholder in
1990 and today owns 40 percent of the shares. The
City of Oslo owns the remaining 60 percent. Later
on, Fjellinjen became responsible for the financing
of Oslo Package 2, which is a joint plan of action for
the infrastructure in Oslo and Akershus in the
period 2002-2011.
Today, Fjellinjen is the largest toll road company in
Norway. We have more than 20 years of experience
with toll road projects, and our 70 employees
possess an invaluable competence. We provide
service for more than 600,000 customers and
register more 89 million toll booth passings a year.
The company’s primary objective is to channel as
much as possible of its revenues into the development of the major road network. Over the past few
years, the company has had operating revenues of
about NOK 1,300 million. Total operating costs
amount to about 10 percent of operating revenues.
The company’s financing strategy is to ensure
liquidity through long-term loans and to make use
of the interest market through short-term or
mid-term fixation of interest rates. The company is
not exposed to significant exchange rate risks.
Oslo Package 3
The financing of Oslo Package 3 was adopted by the
Norwegian Parliament on 13 March 2008. An
evaluation of the project portfolio was presented to
the Parliament on March 13 2009 along with the
National Transport Plan. The financial framework
for Oslo Package 3 has been estimated to NOK 58
billion (2009 price levels). Of these funds, NOK 42
billion will come from Fjellinjen, and an additional
NOK 16 billion will be posted in railroad investments. In connection with Oslo Package 3, Fjellinjen is responsible for the collection of road tolls and
the operation of the toll booths in Oslo and Akershus.
Key figures
Economy (Amounts in NOK mill.)
2009
2008
2007*
KEY FIGURES
Operating revenues
2 144
1 641
1 285
292
199
149
Result before financial items 1 852
1 441
411
–2
6
4
Contributions to road projects 1 850
1 447
415
Operating costs
Financial items
LIQUIDITY AND FINANCING
–186
–546
260898
260000
256779
255000
252604
254230
245000
242663
–51
Financing ratio
1,26
3,39
3,38
Liquidity ratio
0,80
0,36
0,17
Since the company’s main task is to collect road tolls for the
financing of the road network in Oslo and Akershus, stating
liability ratio and equity ratio key figures would be pointless.
4
265000
250000
* Excl. depreciation of collection right.
Working capital
Development in average traffic volume per day (Oslo excl. Bærum)
240000
235000
230000
2005
2006
2007
2008
2009
5
© Åsmund Lindal / Samfoto
Rådhusplassen
A little more than 20 years ago, Oslo’s main traffic
corridor went straight through Rådhusplassen
(City Hall Square). Heavy transport vehicles, private
cars and the railroad dominated this area, which
wasn’t very people-friendly.
6
7
RÅDHUSPLASSEN
In 2009, great
restruc­turing
efforts and changes
were made in order
to improve customer
service.
After a great fire in 1624, Oslo was moved westward, to the area surrounding Akershus Festning
(Fortress). The traffic corridors established during
this period stayed with the city for more than 350
years. These corridors worked well when the main
means of transportation was horse and carriage,
but in the wake of private cars and mass motoring,
terrible traffic chaos ensued around the city.
Up until the end of the 1980s the main traffic
corridor through Oslo went along Rådhusgaten,
across Rådhusplassen and further on to Filipstad,
where the highway began. It was obvious that this
arrangement would not work in the long run, since
car traffic was continuously growing.
There was only one solution, and that was to dig a
tunnel from Filipstad to Bjørvika. Not only would
this reduce traffic problems and pollution, but also
make the thoroughfare much quicker by linking
together the two highways on the east and west
side of the city.
The financing, however, represented a challenge –
and the solution was the toll ring. The Festning
Tunnel (called Fjellinjen at the time) was fully
financed by the new toll ring around Oslo. It is no
great secret that the toll ring wasn’t especially
popular at the time it was established, but today
most people recognise its significance.
Today, there are many people who don’t even
remember how Rådhusplassen looked before the
Festning Tunnel was built. For those who do,
however, the picture in the upper left corner might
invoke unpleasant memories. In Rådhusgaten,
conditions were even worse. Traffic was squeezed
in between preservation-worthy wooden buildings
that were slowly being devoured by pollution. Being
a pedestrian in this area was both unpleasant and
hazardous to one’s health. Today, the traffic in
Rådhusgaten is not gone, but it has been significantly reduced, and the old buildings from the time
when Oslo was called Christiania once again stand
out as the architectural pearls they are.
In others words, any pedestrian who enjoys a
pleasant stroll across Rådhusplassen today without
having to zig-zag between passing cars has toll
road funds to thank for that.
LOCATION AND NATURE OF BUSINESS
The company is located in Oslo, Norway. The main
objective of the company is to partially finance the
building of the major road network and public
transport measures in Oslo and Akershus within
the so-called Oslo Package 1 and Oslo Package 2.
Oslo Package 3 was adopted in 2008, replacing Oslo
Package 2 and providing a framework for company
operations until 2027. In addition to the financing of
road building and public transport infrastructure,
the scope for Oslo Package 3 also includes the
partial financing of the operation of public transport
in Oslo and Akershus.
The Norwegian Public Roads Administration,
Region East, is the owner of all measures covered
by the Administration’s area of responsibility within
Oslo Package 3. In the case of building activities
that the Public Roads Administration does not
perform itself, the Public Roads Administration will
requisition and disburse funds in accordance with
parliamentary resolutions and the annual budgets
for maintenance and building of national roads.
Main points
In 2009, the company recorded a net profit before
allocations to road projects and public transport of
NOK 1,850 million, compared to NOK 1,447 million
in 2008.
Allocations to Oslo in 2009 totalled NOK 892 million,
and allocations to Akershus totalled NOK 529
million. A further figure of NOK 540 million was
allocated to the operation of public transport in
Oslo and Akershus. In 2009, the Public Roads
Administration has received a total of NOK 1,676
million.
Allocations to road projects and public
transport in 2009
OSLO NOK 892 million
AKERSHUS NOK 529 million
PUBLIC TRANSPORT NOK 540 million
Oslo Package 3 is financed by collecting road tolls
from drivers passing through the Oslo toll ring and
the toll ring on the border between the Oslo and
Bærum municipalities.
The replacement of Oslo Package 2 was determined
by a parliamentary resolution passed on 13 March
2008, whereby approval was granted to collect road
tolls to partly finance Oslo Package 3, stage 1, cf.
Report (White Paper) No. 40 (2007-2008). The road
toll agreement between the Public Roads Administration and Fjellinjen is valid from 1 July 2008 and
replaces all previous agreements. The agreement is
based on the provision that a new road toll agreement between Fjellinjen and the Public Roads
Administration will be entered into once the
Parliament has adopted stage 2 of Oslo Package 3.
© Foto: Trond Solberg / VG / SCANPIX
© Espen Bratlie, Samfoto
REPORT OF THE BOARD OF DIRECTORS 2009
© Svein Grønvold, Samfoto
© Åsmund Lindal / Samfoto
FROM TRAFFIC WASTELAND TO
PEDESTRIAN-FRIENDLY SQUARE
The expansion of the underground finished in 2006 is funded
by Oslopakke 2.
The executive committee for Oslo Package 3 will
annually present a revised plan of action to serve as
a basis for the distribution of toll road funds.
8
9
The statistics shows a
decrease in traffic in
line with the intensions in Oslopakke 3.
At the same time we
observe an increase in
the number of signed
AutoPASS subscription
contracts.
Development and operations
In 2009, several restructuring efforts and improvements of company operations were made, but a few
challenges regarding operational stability still remain.
>> In order to improve the company’s customer
service, a separate Customer Relations Department was established, including a newly
established managerial position (Department
Head, Customer Relations Dept.), in July 2009.
>> Fjellinjen changed its payment system for
AutoPASS customers from advance invoicing to
arrears invoicing. Customers will be invoiced
every quarter for their toll booth passings. This
solution was adopted to make it easier for our
customers to see the relation between the size
of payments and the number of toll booth
passings.
>> An information campaign was carried out in
connection with the transition to the new
payment system. The campaign resulted in an
increased demand for AutoPASS subscription
contracts.
>> In the autumn of 2009 a new toll booth was
opened in Karenlyst Allé in Oslo due to restructuring of the road network.
>> Throughout all of 2009 we have worked continuously with the development and adjustment of a
new administrative system for Fjellinjen.
Implementation is now scheduled for the second
quarter of 2010.
>> Challenges regarding the operational stability of
the new equipment at the toll booths have been
continuously present.
Traffic passing the Oslo toll ring in 2009 saw a reduction
of 5.4%. The average number of passings through the
Oslo toll ring reduced from 256,779 per day in 2008 to
244,151 per day in 2009. For Bærum, 63,891 passings
per day were registered in 2009, compared to 64,786
per day in 2008 (the comparison is based only on the
last 12 weeks of the year, since the Bærum toll ring
opened in the autumn of 2008). The changes in the
traffic pattern in 2009 were divided between the three
traffic corridors from the west, north and south by
respectively -5.7%, -6.4% and -4.6%.
At year-end 2008, the total number of valid subscription
contracts was 569,869. By year-end 2009, this number
had increased to 605,049. The establishment of E6
Gardermoen-Moelv brought with it numerous new
customers who signed an AutoPASS subscription
contract with Fjellinjen and is as such one of the
reasons for the 6% increase in valid contracts.
A total of 75,765 new electronic tags were distributed in
2009, and of these, 40,265 were distributed through our
dealer network. The use of the AutoPASS system has
therefore continued to grow in 2009. This is a system
where customers who have signed a subscription
contract with a toll road company can pass through all
AutoPASS payment facilities in Norway and pay for the
passings via the company they have signed a contract
with. The system is valid throughout Scandinavia,
including a number of ferry crossings.
Board of Directors:
Top from left: Cathrine Foss Stene (Chairwoman of the Board), Anita Scheie (member),
Ivar Ueland (member) Astrid Løken Øyehaug (medlem). Bottom from left: Inger Hegemann
(member - Employee representative), Per Mauritz Hanssen (member), Rolf Lasse Lund
(member) was not present. Photo: Dag Spant
An information campaign carried out in connection with the transition to the new payment system resulted in an increased demand
for AutoPASS subscription contracts.
10
11
WORKING ENVIRONMENT
The working environment in Fjellinjen is good, while
2009 also has seen the implementation of several
change processes. In order to be able to face future
challenges, a section manager level was established in the autumn of 2009. The company recognises
the importance of having an operational middle
management that is well acquainted with company
operations and has employee follow-up as a main
task.
The Working Environment Committee has held four
meetings in 2009, and a plan of action has been
made to ensure systematic HSE work. Medical
check-ups have been carried out by the company
health service.
In 2009, absence due to illness was at 9%. Systematic efforts to lower absence due to illness have been
implemented in Fjellinjen. The mobilization of
section managers, tight follow-up of employees on
sick leave and close cooperation with the company
health service are three key elements in this
context.
Absence due to illness in %
Women
31.12.09
12 %
31.12.08 31.12.07
7 %
31.12.06
14 %
13 %
Men
4 %
3% 2 %
4%
Total
9 %
5,6 % 9 %
9%
There were no injuries or accidents in 2009.
At year-end 2009, Fjellinjen had 70 permanent
employees. 26 employees were hired and five
employees quit their jobs throughout the same
period.
Of the company’s 70 employees, 45 are women. The
ratio of women in managerial positions is 45%.
Within this area, the company aims to provide a
workplace where there is full equality between
females and males. This is emphasized in issues
such as salary, promotion and recruitment.
The average annual salary for women is NOK
342,842, compared to NOK 397,644 for men. The
difference is due to the fact that the ratio of men in
managerial positions is higher than for women.
12
DISCRIMINATION
The company works actively to prevent discrimination due to disability, ethnicity, national origin, race
or religion. Among other things, the activities
include recruitment, salary and work conditions,
promotion, possibility of professional development
and protection against harassment. Fjellinjen aims
to reflect the population composition of its locality.
EFFECTS ON THE ENVIRONMENT
Due to the nature of the business to which the
company belongs, operations cause no pollution or
emissions that may be harmful to the environment.
ACCOUNTS FOR 2009
Operating revenues in 2009 totalled NOK 2,144
million. This is an increase of NOK 503 million
(30.6%) in comparison with 2008. The increase in
revenues is mainly attributable to the change in
rates and the establishment of the Bærum toll ring.
All stated changes were carried out during the
second half of 2008.
Administration expenses amounted to NOK 291
million, which is NOK 92 million higher than last
year. The main cause of this increase in expenses is
an extensive increase in the number of employees
during 2009, plus large expenses for the printing
and distribution of a volume of invoices that was
significantly larger than expected.
The company returned an operating profit for the
year of NOK 1,852 million. Net financial costs
totalled NOK 1.9 million, compared to net financial
revenues of NOK 5.5 million in 2008. The increase in
financial costs is due to the loan financing of the
restructuring of the customer payment system,
plus increased requisition by the Public Roads
Administration.
There have been no events after the end of the
financial year which are of significance for the
assessment of the company’s position and results.
FINANCIAL RISK
Credit risk
The risk of customers not having sufficient financial
strength to fulfil their commitments is regarded as
low, as our accounts receivable are distributed over
a vast number of customers. The transition to
arrears invoicing has required an amendment to the
company’s financial structure, implying that the
company now has higher receivables from customers in comparison with previous years. As of 31
December 2009, total receivables were recorded as
NOK 363 million, compared to NOK 286 million in
2008.
Liquidity risk
The company considers liquidity in the company to
be excellent and has a stable supply of liquidity. The
company has an AA rating from Standard & Poor’s.
The company expects a continued positive development in the liquidity of operations. In 2009, a loan of
NOK 850 million has been taken up, divided into a
short-term loan of NOK 350 million and a longterm (5-year) debenture loan of NOK 500 million.
At year-end 2009, the company has an available
liquidity of NOK 388 million due to a postponement
in the requisition of funds for road projects from the
Public Roads Administration.
Other risk
The Parliament has subsequently decided that Oslo
Package 1 and 2 shall be prolonged until 2012. A
new agreement regarding Oslo Package 1 and 2
(the Bjørvika development) was signed with the
Public Roads Administration for the period from 1
January 2008 to 31 December 2012. The resolution
regarding Oslo Package 3 only applies formally to
stage 1, while the framework for Oslo Package 3 is
valid until 2027.
The reduction in traffic seen in the last quarter of
2008 has continued steadily throughout 2009. The
main causes of the decline in traffic are the ripple
effects of the financial crisis, increased rates and
the establishment of new toll booths in Bærum.
Furthermore, Ruter AS (public transport provider)
has reported an increase in the use of public
transport. However, there would have to be an
extremely major reduction in traffic for the company
to run the risk of not being able to fulfil its obligations.
Potential measures related to road pricing, rush
hour fees or the like may also affect driving
patterns and earnings.
The company has a fully integrated organisation in
charge of operations, and does not experience
difficulties in recruiting qualified personnel when
required.
In 2009, the company recorded a net profit before
allocations to road projects and public transport of
NOK 1,850 million, compared to NOK 1,447 million
in 2008.
In the annual accounts for 2009, Fjellinjen has
reported the road toll collection right of NOK 1,961
million as an intangible asset on the balance sheet.
The depreciation of the collection right follows the
annual result, provided that 100% is allocated to
road projects.
13
© Rolf Øhman / Aftenposten / Scanpix
projects in Oslo and
© Espen Braata / VG / Scanpix
road construction
and public transport
© Øystein Skotte, Statens vegvesen
completion of large
© Bjørn Sigurdsøn / Scanpix
2009 has seen the
Akershus.
The Festning Tunnel is to be adjusted to the prefabricated sink
tunnel, which is positioned lower in the terrain.
The new four-lane road between Wøyen and Bjørum along the
E16 in Bærum.
The upgrading of Jernbanetorget was completed in the spring
of 2009.
Carl Berners plass as it was in October 2009.
SIGNIFICANT PROJECTS FINANCED BY
TOLL ROAD FUNDS IN 2009
Toll road funds constitute a significant contribution to
large road building and public transport projects in
Oslo and Akershus. Below, some of the largest
projects are listed and described. In addition, toll road
funds are spent on minor projects like footpaths and
bicycle lanes, measures for increased traffic safety,
improvement of public transport and environmental
efforts.
E16 Wøyen-Bjørum
E16 Wøyen-Bjørum was opened in May 2009. This is
a new four-lane road stretch of five kilometres, of
which half runs through tunnels. A proposition for a
regulatory plan for E16 Sandvika-Wøyen was sent to
Bærum municipality in the spring of 2010. The
four-lane expansion of this stretch of the E16 is
meant to provide a road network adapted to the
volume of traffic and to reduce the environmental
strain on the residential areas along the road. The
road stretch is accident-prone, but with separated
traffic directions the occurrence of head-on
collisions is likely to be completely eliminated.
Carl Berners plass
The reconstruction of Carl Berners plass is
scheduled for completion in the autumn of 2010,
after a period of comprehensive rebuilding. By
prioritising bicycle, bus and tram lanes, the
thoroughfare capacity at the junction will be
increased by 50%.
The implementation of a new administrative system
in the company is scheduled to take place during
the second quarter of 2010. The project will be
carried out by the Public Roads Administration and
Q-Free.
ROAD PROJECTS
The Festning Tunnel
The E18 Festning Tunnel was the first major toll road
project in Oslo. The tunnel was completed in 1990
and collection started the same year. In 2009, a
compre­hensive rehabilitation of all the technical
equipment was carried out.
E18 Bjørvika
E18 Bjørvika is the largest and most complex road
project in Oslo. The underwater tunnel will allow for
the development of a new city district right on the
water’s edge by the harbour area. In the autumn of
2010, the traffic of 100,000 passing cars per day will
be moved to the tunnel running below the Oslo
harbour basin, paving way for the development of the
areas surrounding the National Opera and the quays.
National Road 150 Ulven-Sinsen
National Road 150 Ulven-Sinsen is another large
project with a time frame spanning over several years.
Parts of the road between Ulven and Sinsen will be
moved underground into tunnels in order to reduce
the volume of traffic passing through residential areas.
A new municipal road network without tunnels is also
being built, as well as a new main route for pedestrians and cyclists between Ulven and Sinsen.
14
PUBLIC TRANSPORT PROJECTS
Jernbanetorget underground railway station
Among the public transport projects, the upgrading of
Jernbanetorget underground railway station was
completed in the spring of 2009. Jernbanetorget is
now more efficient and easy to use as a hub for public
transport, and being central and important part of the
face of downtown Oslo, it has also been given a more
functional design with high aesthetic qualities.
Nesodden ferry terminal
The ferries on the Oslo Fjord are also part of the
public transport system, and in the summer of 2009,
Nesodden ferry terminal was completed. Public
transport services have now greatly improved for
the 10,000 commuters who travel by ferry every day.
The Kolsås Line
The building of the Kolsås underground railway line
continues, now entering its third phase with the
construction of the stretch from Åsjordet via Bjørnesletta to Jar station in Bærum municipality. This
stretch of the underground railway line is scheduled
to open in 2011.
Based on this report, the Board finds that the conditions for continued operations have been met.
OUTLOOK
Rates in Oslo and Bærum will be subject to a price
index adjustment on 1 March 2010.
The planned replacement of AutoPASS tags due to
depletion of battery power will be carried out in the
first quarter of 2010 and will affect about 50,000
customers.
Cathrine Foss Stene
Chairwoman of the Board
Ivar Ueland
V ice-Chairman of the Board
Oslo, 26 March 2010
Board of Directors, Fjellinjen AS
Per Mauritz Hanssen
Rolf Lasse Lund
Astrid Løken Øyehaug Inger Hegemann
Jacob Trondsen
Managing Director
15
© Svein Erik Dahl / Samfoto
THE REAL-TIME SYSTEM
Timetables were available, but it was never
easy to tell whether the bus or the tram
actually was on schedule.
16
17
© Dag Spant
© Shutterstock
© Shutterstock
THE REAL-TIME SYSTEM
WHEN IS THE BUS COMING?
OPERATIONS
The population is
far more positive to
the toll ring when
they have knowledge
of the projects
financed by toll
road funds.
The real-time system – accurate and updated
information for public transport passengers
“Oh, when is the bus coming?” is a question many
have asked themselves while waiting impatiently at
a bus stop. Waiting can be downright boring, and it
doesn’t help if information is poor or even lacking
completely.
But something has happened. The real-time
system for buses and trams, financed by toll road
funds, was developed during the period 2005-2008
and is now found at 300 of Ruter’s (public transport
provider) stops. Passengers can also download
traffic information via mobile phone and the
Internet. The calling system within the tram cars is
also part of the real-time system.
The system provides passengers with accurate and
updated information on the arrival of buses or
trams, and it also makes it far easier to find
alternative travel routes, should that become
necessary.
A system for displaying real-time information on
big screens in reception areas, shops and other
similar places has also been developed. All that is
required is a browser which can display a web page
that is updated once a minute. Commissioned by
OBOS, the first real-time screens have already
been put up at Tveita shopping mall.
Trafikanten sanntid 1.5 for iPhone and iPod is
currently delivered to Apple.
Adoption of new payment system
In the autumn of 2009, Fjellinjen changed its
payment system from advance to arrears invoicing.
Our customers are now invoiced in arrears each
quarter for their toll booth passings. Fjellinjen
implemented this change in order to make it easier
for our customers to recognise the relation between
the size of their payments and the number of
passings.
The changes in invoicing procedures were based on
the customers’ dissatisfaction with the system that
was implemented in the summer of 2008. The
system was based on advance payments and
prepaid value cards, and many of Fjellinjen’s
customers regarded it as needlessly complicated
and complex. This led to a great number of customer enquiries at our Customer Relations Centre
throughout 2009. The adoption of arrears invoicing
has already yielded results, as customer feedback
on the new invoicing system has been positive.
Attitudes towards the toll ring
The most recent attitude survey on toll collection,
toll roads and public transport shows an increase
among the number of people positive towards road
tolls. To the question of whether the implementation of the toll ring in the Oslo area is a negative or
positive measure, answers were distributed
between 54 percent on the negative side and 43
percent on the positive side.
This is a development in a positive direction from
2008, when 38 percent of the survey subjects
thought that the toll ring was a positive measure,
while 56 percent thought it was negative.
Attitudes towards toll collection in the Oslo area
Positive
The survey also reveals that the share of positive
responses increases significantly when the survey
subjects are presented with concrete projects
financed by toll road funds. Then, 74 percent are
positive and only 24 percent are negative!
There is reason to believe that the understanding of
the necessity of the toll ring generally is good.
Three out of four survey subjects from Oslo and
Akershus are willing to accept further toll collection,
though on certain conditions, e.g. that the money is
spent on road building and improvements to public
transport, and that these projects help reduce the
strain on the environment. Conditional support for
the toll ring may then be interpreted as an acceptance of toll collection as a necessary evil in order
to afford better roads, better public transport and
traffic solutions that cause less strain on the
environment.
In this annual report we have taken a closer look at
a few selected projects that would have been
difficult to realize without toll road funds, or at least
would have taken a lot longer to complete.
Attitude surveys have been carried out every year
since 1990. The surveys address people’s attitudes
towards toll collection, toll roads, public transport
and travel habits. 1,000 people above the age of 18
from Oslo and Akershus were interviewed in
November 2009. The survey was carried out for
PROSAM, a cooperation between state transport
departments, the City of Oslo and the County of
Akershus, as well as Ruter (public transport
provider) and NSB (national railway company).
Attitudes towards concrete projects financed by
toll road funds
2009 43 % 2009
2008 38 %
Positive
74 %
Negative 24 %
Negative
2009 54 %
2008 56 %
18
19
34
35
6
SELECTED PROJECTS 1990-2010
9
39
27
26
40
18
29
11
30
44
54
16
23
33
24
21
32
28
13
1990
1 The Festning Tunnel
2 Parts of the Henrik
Ibsen ring
55
53
46
7
17
36
1 15
37
5
2
38
51
3
42 43
20
52 47
45
This overview provides a clear picture of how much that has actually been achieved over the past 20 years,
and of how much that is planned. Many important road construction and public transport projects in Oslo and
Akershus are fully or partly financed by toll road funds. Regarding car traffic, our city and local areas would
have looked quite different without toll road funds. The most ambitious road projects have involved the construction of tunnels, revitalizing previously traffic-burdened areas to the delight of both motorists and local
residents alike. In addition, these efforts have created a far greater and more comfortable accessibility for
motorists, cyclists and public transport passengers.
3
4
8
31
22
19
14
5
48
25
6
49
43
12
7
50
8
43
9
41
4
16
17
18
Fjellinjen was founded on 13 February 1986, and the collection of road tolls started in 1990.
Fjellinjen has been responsible for the part-financing of Oslo Packages 1 and 2. In March 2008 the
Norwegian Parliament adopted Oslo Package 3, a plan for road construction and the development
and operating of public transport in Oslo and Akershus. The time frame spans from 2008 to 2027.
20 years of collecting road tolls for road construction and public transport in Oslo and Akershus
has yielded results. Here follows an overview of some of the projects:
20
1992
The Granfoss Tunnel
Public transport
projects
Oslo, National Road
190 Teisen-Caspar
Storms vei
New bus terminal at
Olavsgård
1993
10
E6 Vinterbro-Vassum
11
National Road 150, new
intersection by the
University of Oslo,
Blindern
E16 Kjørbo-Brynsveien
12
13
E18 Lysaker
Intersection, east
14
Lysaker public
transport hub
15
10
1991
New tram lane in
Schweigaardsgate
New E6 road stretch
between Vinterbro and
Vassum
Expansion of E18
between Skøyen and
Asker
New R4 in Nittedal
19
1994
The Vestbanen
Intersection
Sinsen–Storo
The Bekkestua Tunnel
Public transport
projects
Trondheimsveien
between Grorud and the
Fossum Intersection
Ring 3 between
Plog­veien and
Traktorveien
20
21
1995
The Ekeberg Tunnel
Public transport
terminal at Helsfyr
34 New bus terminal in
Nannestad
35 New bus terminal in
Vormsund
1996
22
Reconstruction of the
Ryen Intersection
New intersection on
23
Store Ringvei by the
Radium Hospital
24 Reconstruction of
Trondheimsveien
between Nybrua and
Carl Berners plass
Public transport
25
terminal at Bekkestua
2002
36 The Ring Line Nydalen
opens, with new
stations at Storo and
Sinsen
37 New passenger waiting
facility at Nesodden
ferry quay
38
Improvements for bus
traffic along the Ring 1
road
39
26
27
28
29
30
31
32
33
1997
26 out of 50 projects in
Oslo Package 1 and 2
have been completed,
and Fjellinjen has
contributed NOK 3.33
billion for operations
and about NOK 1,850
billion in loans
1998
New National Road 159
past Strømmen and
Lillestrøm
Part-financing of new
public transport
terminal in Lillestrøm
Nationaltheateret
underground railway
station
1999
The Tåsen Tunnel
Completion and
opening of new Ring 3
road
2000
The Svartdal Tunnel
2001
The Galgeberg
Connection
Reconstruction of
Thereses gate
40
41
42
2003
New National Road 4,
Slattum-Gjelleråsen
New road between
Lørdagsrud and
Strømmen Church
2004
Expansion of the E6
European route from 2
to 4 lanes between
Klementsrud and
Assurtjern
2005
Construction starts in
Bjørvika
2006
Road projects:
the E18 Bjørvika
project, expansion of
the E6 European route,
Store Ringvei and
development of E16
Wøyen-Bjørum
Completion of the Ring
44
Line with i.a. active
signal prioritization and
real-time information
system
45
First construction
phase of the public
transport terminal at
Strømmen
46
Upgrading of the
Kolsås Line initiated
43
2007
47 The Bjørvika project
continues
Total contributions
from Fjellinjen to Oslo
Package 1 amount to
NOK 11.8 billion, in
addition to NOK 1.2
billion to Oslo Package
2 from 2001
2008
48 Restoration of the
Festning Tunnel
Implementation of
real-time information
system for buses and
trams
2009
Ruter receives NOK 540
million from Fjellinjen
through Oslo Package 3
49 The first part of E16
Wøyen-Bjørum is
completed
50 Nesoddtangen ferry
terminal
51
Upgrading
of Jernbanetorget underground
railway station
Some on-going
projects in 2010
52 The opening of the
Bjørvika Tunnel
53 The reconstruction of
Carl Berners plass
54 The Kolsås Line with
metro standard,
direction west, due for
completion in 2011
55 Sinsen-Ulven
21
© Åsmund Lindal / Samfoto
THE EKEBERG TUNNEL,
THE OLD TOWN AND
VÅLERENGA
Earlier, the E6 went straight through the city.
Housing and living conditions in the affected
areas became very poor.
22
23
THE EKEBERG TUNNEL, THE
OLD TOWN AND VÅLERENGA
PROFIT AND LOSS ACCOUNT
The Old Town – or Gamlebyen, as it is called in
Norwegian – is the oldest city district in the
Norwegian capital. The settlement grew into a city
around year 1000 and became Norway’s capital in
1314. The Old Town is located between Kongshavn,
Bjørvika, Grønland, Galgeberg and Kværner, and
stretches a bit up towards Ekeberg. At Galgeberg,
St. Halvardsgate ends, which in medieval times was
known as Gaten (the Street) and today constitutes
the beginning of Pilegrimsleden (the Pilgrim Path)
to Trondheim. Enebakkveien and Strømsveien,
which both start at Galgeberg, were the first major
traffic arteries towards Enebakk and Strømmen/
Romerike.
The area’s role as a major traffic junction was very
noticeable in the 1970s. E6 went straight through
the area and then on along Strømsveien through
Vålerenga. During rush hour, queues would stand
completely still, and throughout the rest of the day
traffic would continue to be dense. Local residents
at Vålerenga started campaigns to have the traffic
moved out of their neighbourhood, and also fought
to preserve the remaining wooden houses in the
area. Among other things, this led to the construction and opening of the Vålerenga Tunnel in
1989.
© Dag Spant
© Bjørn E Melbye Samfoto
SMALL-TOWN IDYLL IN THE BIG CITY
Amounts in NOK 1,000
Note
1/1–31/12 2009
1/1–31/12 2008
OPERATING REVENUES AND OPERATING COSTS
Operating revenues
The objective was to ensure a more efficient flow of
traffic and improve the environmental state of this
traffic-burdened area. In addition to the tunnel
system, several local streets have been closed.
So-called “environmental streets” and other efforts
to upgrade the local road network have also been
implemented. The tunnels, along with supplementary measures concerning the local road network,
have improved the traffic layout, reduced noise and
pollution levels, and also reduced the impact of
noise and pollution on the local residents.
Today, the Old Town is a vibrant and exciting
neighbourhood with limited traffic. Admittedly, the
Vålerenga Tunnel was financed independently of
road tolls, but the closure of Strømsveien and the
re-routing of traffic belong among the projects
financed by toll road funds. Regardless, the end
result is that today the area is not dominated by
heavy traffic, but by old wooden houses with
renovated exteriors, giving the neighbourhood an
idyllic small-town touch – right in the middle of the
big city.
Subscription revenues
1 598 315 1 176 208
Video invoicing
454 699 403 633
Manual payment
–
23 112
Surcharges
84 260 31 747
Remuneration to issuer
6 604 5 843
2 143 878 1 640 543
Total operating revenues
1
Operating costs
Payroll costs
4, 5
35 012 19 918
Deprecation of fixed assets
8
1 442 175
Depreciation of intangible assets
6
25 503 15 006
Other operating costs
9
229 594 164 455
Total operating costs
291 551 199 554
OPERATING RESULT
1 852 327 1 440 989
FINANCIAL INCOME AND FINANCIAL COSTS
Other financial income
1 878 5 919
Other financial costs
3 828 374
Result of financial items
–1 951
5 545
Result before depreciation of collection right
1 850 377 1 446 533
Depreciated on prepaid funds - collection right
7
1 850 377 1 446 533
ANNUAL RESULT
0
0
Conditions improved, but it was far from enough.
With funds from Oslo Package 1 and 2 (state grants
and toll road funds), the traffic layout in the area is
now completely changed. The next step after the
opening of the Vålerenga tunnel was the closure of
Strømsveien in 1992 to all traffic except buses.
Then the Ekeberg Tunnel was opened in 1995, and
finally the Svartdal Tunnel in 2000.
24
25
BALANCE SHEET
Amounts in NOK 1,000
Note
1/1–31/12 2009
1/1–31/12 2008
ASSETS
Amounts in NOK 1,000
Note
1/1–31/12 2009
1/1–31/12 2008
LIABILITIES Capital assets
Provision for commitments
Intangible assets
Pension commitments
5
66 1 744
Capitalised collection right
7
803 225 692 302
Other provisions and commitments
301 60
Intangible assets
6
108 672 82 718
Total provision for commitments
367 1 804
Total intangible assets
911 897 775 020
Long-term liabilities
Fixed assets
Deposits received
13
126 717 122 257
Oper. equipment, inventory and office machinery
8 985 1 929
Bank debt
15
500 000 –
Total fixed assets
8 985 1 929
Total long-term liabilities
626 717 122 257
8
TOTAL CAPITAL ASSETS
920 883 776 948
Short-term liabilities
14
350 000 230 629
Current assets
Overdraft facility
Suppliers
131 644 39 829
Receivables
Public fees payable
3 034 1 830
Accounts receivable
2
159 616 71 188
Accrued non-invoiced revenues
2
201 959 214 058
Other receivables
3
1 748 586
Other short-term liabilities
49 479 29 644
Total receivables
363 323 285 831
Total short-term liabilities
938 103 850 751
Bank deposits, cash etc.
387 980 Advance payment from subscribers
Accrued road tolls, allocated, not paid
10
–
344 301
403 947 204 517
19 030
SUM EQUITY AND LIABILITIES 1 672 186 1 081 810
Total current assets
751 303 304 862
TOTAL ASSETS
1 672 186 1 081 810
Oslo, 10 March 2010
Board of Directors, Fjellinjen AS
EQUITY AND LIABILITIES
Equity
Paid-in equity
Share capital
1 100 1 100
Total paid-in equity
1 100 1 100
11
Cathrine Foss Stene
Chairwoman of the Board
Ivar Ueland
Vice-chairman of the Board Retained earnings
12
105 898 105 898
Total retained earnings
Other equity
105 898 105 898
Total equity
106 998 Per Mauritz Hansen
Astrid Løken Øyehaug
Rolf Lasse Lund
106 998
Inger Hegemann
26
Jacob Trondsen
Managing Director
27
NOTES
NOTE 1 OPERATING REVENUES
The company’s revenues for 2009 include collection of road tolls in accordance with the agreement with the Norwegian Public Roads Administration.
Operating revenues for the company in 2009 totalled NOK 2,143.9 million. The accounting and assessment of accrued non-invoiced revenues follow the
same principles as stated in connection with the compilation of annual accounts per 31 December 2008.
Salary/board fee
Managing Director
The Board of Directors
Remuneration to senior employees
Per 31 December 2009, accrued non-invoiced revenues amount to NOK 418.9 million. The uncertainty margin for each type of revenue has been assessed
and fluctuates between 0.0% and 18.2%. The largest degree of uncertainty is attached to revenues from manual image processing.
The company collects fees via the AutoPASS system for toll booth passings by the company’s subscribers of toll rings operated by other companies. The
company receives payment for this service. Remuneration for the year totalled NOK 6,604 million. Among other things, this amount will be utilised to cover
the company’s credit risk connected with arrears invoicing of passings. Comparison figures in the annual accounts have been amended accordingly.
879 048
321 400
Pension expenses
94 980
0
Other remuneration
46 075
0
Gross salary and holiday money (excluding board fee) to the employee representative on the Board of Directors was NOK 395,623.
The company’s Managing Director and Board of Directors do not have a bonus scheme. A mutual term of notice of 6 months has been agreed upon for the
Managing Director, with full pay during the term of notice. Remuneration to the Managing Director comprises both payments to the company’s previous
Managing Director and the company’s new Managing Director. No loans/guarantees have been provided to the Managing Director, Chairwoman of the
Board or other closely related parties. There are no individual loans/guarantees which represent more than 5% of the company’s equity.
NOTE 2 ACCOUNTS RECEIVABLE
The company’s receivables mainly comprise passings invoiced in arrears without a valid subscription, surcharges and invoices from AutoPASS passings ­
(the company’s subscribers passing through toll rings operated by other toll companies).
Accounts receivable which are not paid by the date of obsolescence of 3 years are regarded as a confirmed loss and are depreciated. The provisions for bad
debts are based on an individual assessment of each receivable. An additional provision is also made to cover other anticipated loss.
Advance payment from customers, NOK 216,984 million, has been entered under accrued non-invoiced revenues. This is a retained item from the prepaid
punch card system.
Receivables from other toll road companies in connection with passings using the AutoPASS system total NOK 10,909.8 million. The company does not
expect to suffer bad debts from other toll road companies.
Amounts in NOK 1,000
31/12 2009
Registered receivables
238 739
31/12 2008
104 288
201 959
214 058
Provision for loss on passings invoiced in arrears and surcharges
–39 673
–10 318
Provision for loss on invoiced AutoPASS passings
–8 019
–7 203
Provision for loss on receivables from abroad
–31 430
–15 579
Accounts receivable as of 31 December
361 575
285 246
Statutory audit (incl. technical assistance with annual accounts)
Other attestation services
Tax advice (incl. technical assistance with tax documents)
Other receivables totalled NOK 1.7 million as of 31 December 2009, compared to NOK 0.6 million as of 31 December 2008. The amount consists of a
settlement of foreign receivables not yet received, NOK 385,161, prepaid costs, NOK 1,156,305, and an amount due of sickness benefits from the Norwegian
Labour and Welfare Administration, NOK 206,596.
2007
317
464
344
0
0
0
0
0
0
122
93
31
Total remuneration to independent auditor
439
557
375
NOTE 5 PENSIONS
The pension note was updated per 31 December 2009 in accordance with actuary estimates. The company decided to change its current pension scheme to a
defined benefit pension scheme for employees up to the age of 52. The transition to the new pension scheme was carried out on 1 September 2009.
Per 31 December 2009, the company has pension schemes which cover a total of 89 persons, of which 13 belong within the contribution-based scheme. The
schemes provide the right to defined future payments. These mainly rely on the number of contribution years, salary level at retirement age and the size of
National Insurance payments. The pension commitments are covered via an insurance company. The company also has a negotiated, contractual early
retirement pension scheme. The company is obliged to provide an occu¬pational pension scheme pursuant to the Act relating to obligatory occupational
pensions. The company’s pension schemes comply with the provisions of this legislation..
31/12 2009
Salary
28 121
19 306
Employer’s contribution
4 480
2 956
Pension costs
1 337
2 260
Other payments
1 006
396
Reversal of provision for severance pay
67
–5 000
Total
35 012
31/12 2008
19 918
2009
SecuredUnsecured
NET PENSION COST
Current value of pension contribution for the year
Interest cost on pension commitment
Note 4 SALARY, NUMBER OF EMPLOYES, BENEFITS, LOANS TO EMPOYES ETC.
The company has 76.2 man-labour-years for the financial year 2009. Of these, 56.5 are permanent employees. In 2008, the company had 49.1
man-labour-years. Of these, 41.5 were permanent employees.
2008 Other assistance
Amounts in NOK 1,000
NOTE 3 OTHER RECEIVABLES
28
2009 Independent auditor (including VAT)
Accrued non-invoiced revenues
Amounts in NOK 1,000
Amounts in NOK 1,000
Return on pension funds
Administrative costs
Plan/estimate changes recognised
Significant changes in pension commitment
Significant changes in pension funds
Total
Contribution
Deposit
1 360
422
198
128
0
22
150
–169
0
0
–169
1 981
36
23
0
59
–192
–857
21
–1 028
–1 908
0
0
–1 908
2 043
0
0
2 043
–1 727
0
0
–1 727
0
31
179
0
1 758
Significant changes in differences from plan/estimate
change not recognised, acc. to actuary assessment
Employer’s contribution
148
Changes in connection with transition to new pension scheme
1 758
Net pension cost
1 477
–412
272
1 337
29
Amounts in NOK 1,000
2009 2008
SecuredUnsecured
Net pension commitment
Accrued pension commitments 31.12
Contribution
Total
IB
SecuredUnsecured
Deposit
2 002
422
575
2 999
2 517
204
Estimated effect of future salary regulation
0
0
0
0
0
0
Estimated accrued pension commitments 31.12
2 002
422
575
2 999
2 517
204
Pension funds (at market value) 31.12
2 017
834
0
2 852
2 110
0
49
–212
–163
1 045
2
0
81
81
57
29
444
66
1 510
235
Differences from plan/
estimate change not recognised
Employer’s contribution
Net pension commitment
34
–412
NOTE 7 INTANGIBLE ASSETS / CAPITALISED COLLECTION RIGHT
Oslo Package 3 replaces Oslo Package 1 and 2. For the collection right connected to Oslo Package 3, including the E18 Bjørvika project, the total figure
capitalised as of 31 December 2009 is NOK 1,961.3 million. The amount corresponds to the licence granted for all of 2009 and is distributed between the
following areas: Oslo
NOK 892.0 million
Akershus
NOK 529.3 million
Public transport
NOK 540.0 million
The acquisition cost for the collection right has been valued at actual allocations requisitioned by the Public Roads Administration related to Oslo Package
3. Depreciation of the collection right follows the annual result, provided that 100% is allocated to road projects. If earnings exceed the total requisitions
from the Public Roads Administration, the capitalised collection right will be depreciated to NOK 0 and the remaining figure will be recognised as a liability
to the Public Roads Administration.
ECONOMICAL ASSUMPTIONS
Discount rate
‘ Amounts in NOK 1,000
Oslo Package 3
01.01.2009
31.12.2009
5,80 %
5,40 %
CAPITALISED COLLECTION RIGHT
2 138 835
1 961 300
Estimated salary regulation
4,50 %
4,50 %
Acquisition cost 01.01
Estimated pension increase
2,00 %
2,40 %
Allocated to projects
Estimated increase in National Insurance base amount
4,25 %
4,25 %
Disposals
Estimated return on funds
6,30 %
5,70 %
Acquisition cost 31.12
4 100 135
20,00 %
20,00 %
Accumulated depreciation 31.12
3 296 910
8,00 %
8,00 %
Balance sheet value 31.12
803 225
Estimated utilisation ratio for early retirement scheme
Estimated turnover
The actuarial assumptions are based on commonly applied assumptions for insurance in terms of demographics.
Amounts in NOK 1,000
Amounts in NOK 1,000
NOTE 6 INTANGIBLE ASSETS
Electronic tags
New
Right of use to
central system electronic equipment
NOTE 8 FIXED ASSETS
Web page/
Internet
TOTAL
66 395
556
32 471
2 561
101 983
7 015
1 317
43 124
0
51 457
–29 427
0
0
0
0
0
0
0
0
0
Acquisition cost 31.12
73 382
1 873
75 595
2 561
153 411
Accumulated depreciation 31.12
29 427
12 780
2 561
44 768
Balance sheet value 31.12
43 954
62 815
108 642
Acquisition cost 01.01
Additions
Accumulated write-downs 31.12
Disposals
1 873
Depreciation for the year
13 303
11 238
961
Write-downs for the year
0
0
0
25 503
Expected economic life span
Depreciation schedule
Depreciation for the year
1 850 377
5 years
5 years
2 years
Straight line
Straight line
Straight line
Fixed assets
Expenditure on
leased premises
Inventory Office
machinery
Total fixed assets
627
680
797
2 104
Additions
1 135
1 298
6 066
8 499
Disposals
0
0
0
0
1 763
1 977
6 862
10 602
328
330
959
1 617
1 435
1 647
5 903
8 985
Acquisition cost 01.01
Acquisition cost 31.12
Accumulated depreciation 31.12
Balance sheet value 31.12
Depreciation for the year
285
272
884
1 442
Expected economic life span
Depreciation schedule
5 years 5 years
3 years Straight line
Straight line
Straight line
Assessment of expected economic life span
The company has per 31 December 2009 not conducted a new assessment of the expected economic life span of assets. The assessment per 31 December
2008 is therefore still valid. There have been no changes in the company’s financial relations per 31 December 2009 to suggest that a re-assessment of the
expected economic life span is required.
30
31
Amounts in NOK 1,000
31/12 2009
31/12 2008
Amounts in NOK 1,000
31/12 2009
31/12 2008
NOTE 14 NON-DISTRIBUTABLE BANK DEPOSITS, OVERDRAFT FACILITIES AND BANK LOANS
NOTE 9 OTHER OPERATING COSTS
Loss on receivables and provision for loss on receivables
76 511
30 989
Non-distributable bank deposits
Invoice forms and postage
44 849
26 459
Tax deduction funds
1 312
1 103
Maintenance and operation of IT systems used for toll collection
16 652
25 798
Overdraft facilities granted
Removal costs for old toll booths
10 241
23 934
Overdraft facility
100 000
290 000
Other operating costs
42 598
22 088
Of which utilised as of 31.12
0
8 337
15 073
Hired-in extra assistance
13 237
12 757
Fees paid to the vehicle register etc
17 169
7 356
229 594
164 455
Operation of toll booths
Total
NOTE 15 DEBT TO FINANCIAL INSTITUTIONS
NOTE 10 PAYABLE TO THE PUBLIC ROADS ADMINISTRATION
Allocated to projects pursuant to fiscal budget
In addition, the company has taken up a short-term (6-month) certificate loan of NOK 350 million.
The loan has an interest rate of 2.45% per year and will be repaid in its entirety after 6 months.
1 961 300
1 280 000
Supplementary allocations throughout the year
176 966
The amount of NOK 500 million remains of a long-term (5-year) debenture loan. The interest rate is set in accordance with NOK NIBOR
(3-month Norwegian Inter Bank Offered Rate). The loan will be repaid in its entirety after 5 years.
- provision not allocated the previous year
Contribution to projects pursuant to requisition plan
Allocations payable and provisions for allocations as of 01.01
Paid to date
Total allocations payable and provisions as of 31.12
1 961 300
1 456 966
204 517
66 766
–1 761 870
–1 319 215
403 947
204 517
NOTE 11 SHARE CAPITAL AND SHAREHOLDER INFORMATION
The share capital of NOK 1,100,000 comprises 66 class A shares each with a nominal value of NOK 10,000 and 44 class B shares each with a nominal value
of NOK 10,000. The City of Oslo owns the class A shares and County of Akershus owns the class B shares. All shares carry equal rights. Pursuant to the
company’s articles of association, the company does not have the right to pay dividends.
NOTE 12 OTHER EQUITY
When winding down the company, the paid-in share capital, adjusted with 80% of the change in the consumer price index, calculated from the payment
date for the share capital (value increase), shall be paid back to the shareholders.
As of 31 December 2009, the value increase has been calculated as NOK 634,148 and is presented on the accounts as a part of the company’s other equity.
Other equity not included in the value increase for the share capital (NOK 105,263,673) is allocated to road funds.
NOTE 13 DEPOSIT RECEIVED
The amount of NOK 126,717 million has been received as deposit for electronic tags delivered to motorists. When motorists hand back the tags at the end of
the subscription period, the deposit shall be paid back.
32
33
STATEMENT OF CASH FLOW
Amounts in NOK 1,000
ACCOUNTING PRINCIPLES
2008
2009
Cash flow from operating activities
Ordinary depreciations
Write-down of intangible assets
Depreciation of capitalised collection right
Capitalised collection right
Difference between pension charged to income and payments to/from pension scheme
Changes in receivables and advance payments from subscribers
Changes in supplier debt
26 945 14 611
– 573
1850 377 1446 533
(1961 300)
(1456 966)
(1 678)
834
(421 793)
(365 552)
111 649 5 570
1 445 (4 831)
(394 355)
(359 228)
(8 499)
(2 104)
Costs, purchase of intangible assets
(51 457)
(46 073)
Net cash flow from investment activities
(59 956)
(48 177)
Changes in other records for current assets and liabilities
Net cash flow from operating activities
Cash flow from investment activities
Costs, purchase of fixed assets
Cash flow from financing activities
Net deposits, overdraft facility
Net withdrawals, overdraft facility
– (230 629)
230 629
–
Costs, take-up of other debt (short-term/long-term)
854 460 12 049
Changes in accrued road tolls, allocated, not paid
199 430 137 751
Net cash flow from financing activities
823 261 380 429
Net cash flow for the year
368 950 (26 976)
Cash and cash equivalents at the start of the year
19 030 46 007
Cash and cash equivalents at the end of the year
387 980 19 030
This consists of:
Bank deposits etc.
387 980 19 030
Unused operating overdraft facility in addition amounts to 100 000 59 371
34
Oslo Package 3
The Norwegian parliament adopted Oslo Package 3
on 13 March 2008. Oslo Package 3 replaces the toll
road schemes Oslo Package 1 and Oslo Package 2,
which were continued via the Parliament’s debating
of Report (White Paper) No. 50 (2004-2005). The
current collection period expires in 2027.
Oslo Package 3 is a financing plan established to
finance a forced development of the main road
network and public transport network. In addition
to measures for infrastructure and rolling stock,
Oslo Package 3 also includes funds to finance
operating measures for public transport. Fjellinjen
is responsible for the collection of these funds.
Use of estimates
The company management has made use of
estima¬tes and assumptions on balance sheet date
during the preparation of the annual accounts, in
accordance with generally accepted accounting
practices. These estimates and assumptions have
an impact on the profit and loss account and the
valuation of assets and liabilities, uncovered assets
and commitments.
Revenues
Toll booth passings are valued at fair value and
recognised at the time of the passing. Prepaid
revenues are accrued in line with customer
consumption. Surcharges are recognised net,
minus matured surcharges, during the period in
which the surcharge accrues.
Intangible assets
The Norwegian Public Roads Administration is the
owner of the toll booths and all related collection
equipment. The company pays for collection
equipment procured and owned by the Public Roads
Administration. Collection equipment includes
electronic tags, IT systems for collection and
facilities attached to the automatic toll booths. As
mutual consideration for the payment for collection
equipment, the company is awarded the right of use
to the collection equipment. The right of use to the
collection equipment is depreciated on a straight
line for the effective life span of the equipment.
Classification of balance sheet items
Assets held for permanent ownership or use are
classified as fixed assets. Assets not held for
permanent ownership or use are classified as
current assets. Receivables are classified as
current assets if they are due for repayment within
one year. Liabilities which are due for repayment in
less than one year are classified as short-term
liabilities. All other liabilities are classified as
long-term liabilities.
Expenses for other intangible assets are recog­nised
on the balance sheet to the extent that they meet
the criteria for recognition on the balance sheet.
This implies that expenses for other intangible
assets are recognised on the balance sheet when it
is thought probable that the future economic
benefits related to the asset will accrue to the
company and when the company has identified a
reliable measurement of the acquisition cost for the
asset.
Acquisition cost
Acquisition cost for assets comprises the purchase
amount for the asset minus bonuses, discount and
the like, and with additions for purchase costs
(freight, customs clearance, public fees which are
not refundable and any other direct purchase costs).
For purchases made in foreign currency, the asset
is recognised on the balance sheet using the
foreign exchange rate at the time of the actual
transaction.
Interest related to the manufacture of assets is
charged to income. For fixed assets and intangible
assets, acquisition cost also covers the direct costs
of preparing the asset for use, such as the cost of
testing the asset.
Capitalised collection right
Capitalised collection right II represents a bridging
finance of the E18 Bjørvika project and other
measures which are now connected to Oslo
Package 3, pursuant to the processing of Report
(White Paper) No. 40 (2007-2008).
The allocations will be presented as a liability until
payment has been made. Capitalised collection
right II will have a maximum upper limit equal to
Fjellinjen’s share of the financing of the E18
Bjørvika project and other measures related to Oslo
Package 3.
35
The acquisition cost for the collection right has
been valued at actual allocations requisitioned by
the Public Roads Administration related to Oslo
Package 3. Depreciation of the collection right
follows the annual result, provided that 100% is
allocated to projects related to Oslo Package 3.
If earnings exceed the total requisitions from the
Public Roads Administration, the capitalised
collection right will be depreciated to NOK 0 and the
remaining figure will be recognised as a liability to
the Public Roads Administration.
In previous years, the depreciation of the collection
right was presented as a part of the operating
expenses and total allocations were distributed
bet¬ween depreciation of previous capitalisations
and allocations for the year. The Board of Directors
is of the opinion that the current method of
presentation provides a clearer illustration of the
company’s business.
Fixed assets
Fixed assets are recognised on the balance sheet
and depreciated on a straight line over the estimated effective life span of the asset if it has a cost
price in excess of NOK 15,000. The effective life
span of an asset plus its residual value are valued
on every balance sheet date and amended if
necessary. The maintenance of fixed assets is
charged to income on a continuous basis, under
operating costs. Expenditure on or improvements to
an asset are added to the asset’s cost price and
depreciated at the same rate as the asset in
question. The difference between maintenance and
expenditures/improvements is calculated in relation
to the condition of the asset upon acquisition.
Receivables
Accounts receivable are recorded on the balance
sheet after deductions for provision for bad debts.
The provision for bad debts is based on an individual
assessment of each receivable. An additional
provision is also made to cover other anticipated
loss.
Pensions
The company has a defined benefit-based pension
scheme for employees who by 1 September 2009
were 52 years or older. The scheme is financed via
payments to an insurance company based on
periodic actuarial calculations. The company also
has an early retirement pension scheme. All other
employees have from 1 September 2009 been
transferred to a contribution-based pension
scheme.
A defined benefit scheme is a pension scheme
which is not a defined contribution scheme.
Typically, a defined benefit scheme is a pension
scheme which defines a pension payment to
employees upon retirement. Payment of the
pension normally relies on one or more factors,
such as age, number of years in the company and
salary.
The commitment related to the defined benefit
schemes reported on the balance sheet is the
current value of the defined benefits on balance
sheet date minus the fair value of the pension funds,
adjusted for estimate changes and costs not
recognised and related to pension benefits from
previous periods. The pension commitment is
calculated on an annual basis by an independent
actuary, utilising a straight line contribution
method. The current value of the defined benefits is
determined by discounting estimated future
payments by the interest rate on a bond issued by a
company with high credit rating and with a duration
which is approximately the same as the duration for
the related pension commitment.
Changes in the pension benefits are charged to
income or entered as income on a continuous basis
in the profit and loss account, unless the rights to
the new pension scheme are contingent upon the
employee remaining in service for a specified period
of time (contribution time). In such an event, the
cost related to the changed benefit is amortised on
a straight line over the contribution period.
The current value of pension commitments relies
on a number of factors which are to be established
by applying several estimated assumptions. The
assumptions utilised to calculate net pension cost/
(income) include the discount rate. Any changes in
these assumptions have an effect on the amount
recognised on the balance sheet for the pension
commitment. The discount factor is established by
the company at year-end. This is the interest rate
applied to calculate the current value of future
payments required to cover the pension commitment. The discount rate is established by the
company, based on governmental/company bonds
issued in the same currency as that for payment of
the pension benefit, and which has approximately
the same maturity as the pension commitment.
Removal costs
Pursuant to the supplementary agreement dated
3 July 2006 and the resolution regarding Oslo
Package 3, the company is to finance all expenses
related to the removal of collection equipment and
the renovation of the roadway when the toll
collection period expires. Expenses connected with
the removal of the old toll booths and the renovation of the roadway have been charged in 2008 and
2009. Provisions are continuously being made to
cover removal costs at the conclusion of the
collection period in 2027.
Tax
The company is granted tax exemption.
Statement of cash flow
The statement of cash flow is prepared according to
the indirect method. Cash and cash equivalents
comprise cash, bank deposits and other short-term,
liquid assets which immediately and without
significant exchange rate risk can be converted to
known cash amounts with maturity shorter than
three months from date of acquisition.
Other fundamental assumptions for the pension
commitments are partly based on actual market
conditions. For additional information, see the notes
to the accounts.
Estimate differences attributable to new information or changes in the actuarial premises in excess
of the highest of 10% of the value of the pension
funds or 10% of the pension commitments are
recognised in the profit and loss account over a
period which equals the employees’ estimated
average remaining time until retirement.
Foreign currency
Receivables and liabilities in foreign currency are
valued according to the exchange rate at the
financial year end.
36
37
© Dag W. Grundseth / Aftenposten / SCANPIX
E16 SANDVIKASOLLIHØGDA–SKARET
In between private homes and industrial facilities,
the E16 wound its way up towards Sollihøgda.
At the start of weekends and holidays, with a
great number of people leaving the city by car,
traffic through the area would be massive.
38
39
E16 SANDVIKA–
SOLLIHØGDA–SKARET
AUDITOR’S ACCOUNT
© Øystein Skotte, Statens vegvesen
© Dag W. Grundseth / Aftenposten / Scanpix
STEP-BY-STEP PROBLEM-SOLVING
The European route 16 (E16) runs between Londonderry in Northern Ireland and Sandvika just outside
of Oslo. The road is about 710 kilometres long, of
which 500 are in Norway. The E16 is also the main
road connection between the cities of Oslo and
Bergen. In addition, it is the main traffic artery
between Oslo and Ringerike, Valdres and Hallingdal, as well as a main road in Bærum.
From Sandvika up past Sollihøgda and then down
towards Tyrifjorden and Steinsfjorden, the E16
winds along a steep hillside. For many years, this
road stretch has been quite unfavourable for all
types of road users. The route was established long
before the arrival of cars and therefore doesn’t
meet modern needs.
The first phase of the road improvement work has
transformed the road stretch along Ringeriksveien
from Vøyenenga to Bjørum from a traffic nightmare
into a peaceful country road. Both local residents
and the businesses located along the road are now
spared from the perpetual noise of heavy transport
vehicles passing by, and motorists no longer have
to fear dense traffic on this previously accidentprone road stretch.
The road improvement work in Akershus is
financed by toll road funds. Also the further
improvement work on the E16 will be partly
financed by toll road funds.
Road improvements will be carried out in different
phases, and the work has begun. E16 WøyenBjørum was opened in May 2009. This is a new
four-lane road stretch of five kilometres, of which
half runs through tunnels. A proposition for a
regulatory plan for E16 Sandvika-Wøyen was sent
to Bærum municipality in the spring of 2010. The
four-lane expansion of this stretch of the E16 is
meant to provide a road network adapted to the
volume of traffic and to reduce the environmental
strain on residents in the area. The road stretch is
accident-prone, but with separated traffic directions the occurrence of head-on collisions is likely
to be significantly reduced.
40
41
CREDIT RATING
Summary: Fjellinjen AS
Credit rating: AA/Developing/A–1+
Rationale
The ratings on Norway–based Fjellinjen AS are
based on the company’s stand–alone credit profile,
which we assess at ‘AA’, as well as on our opinion
that there is a “moderately high” likelihood that the
Kingdom of Norway (AAA/Stable/A–1+) would
provide timely and sufficient extraordinary support
to Fjellinjen in the event of financial distress.
In accordance with our criteria for GREs, our view of
a “moderately high” likelihood of extra­ordinary
government support is based on our assessment of
Fjellinjen’s:
>“Strong”
>
link with the Norwegian government due
to the government’s strong influence on
Fjellinjen’s strategy and business plans. The
government is not contemplating privatization in
the medium term.
>“Important”
>
role in the providing financing for the
construction and improvement of transport
infrastructure in the city of Oslo.
Fjellinjen is the operator of the central toll–road
and tunnel complex, through which all traffic
entering or traveling through the City of Oslo (AAA/
Stable/––) must pass.
We view Fjellinjen’s financial risk profile as “minimal”, due to its strong adjusted funds from operations and zero indebtedness. The government
determines Fjellinjen’s financial policy, and we
consider it to be conservative. All strategic decisions, such as network extensions, toll rates, and
bond issues, etc. are made by the government.
Oslo owns 60 % of Fjellinjen, and the County of
Akershus (not rated) owns the remaining 40 % .
Fjellinjen enjoys a monopoly on the city’s tolls,
which it has been collecting since 1990. All profits
are passed on to the National Public Road Administration and have been used to finance various
infrastructure projects (Oslo Package
I and II). Currently, the proceeds are being used to
support public transport and highway projects in
the region (Oslo Package III).
Liquidity
We consider Fjellinjen’s liquidity to be adequate. On
June 30, 2009, the company had Norwegian krone
(NOK) 76 million (€ 8.4 million) in cash and equivalents and another NOK100.0 in committed unused
credit lines, which mature at the end of 2011. On
the same date, Fjellinjen had NOK38 million of
short–term debt outstanding.
The ‘AA’ stand–alone credit profile reflects our view
of the company’s “excellent” business risk profile,
based on its monopoly on Oslo’s tolls and its
growing traffic volumes. Its limited scope of duties,
with no responsibility for riskier and more capital–
intensive road–maintenance and lifecycle activities,
underpins our view of its “excellent” business risk
profile.
42
43
Design and concept: Agendum AS
Cover photo: Dag Spant
Photo page 2, 3, 7, 17, 23, 39 og 43 Dag Spant
Photo page 20: Fjellanger Widererøe Foto AS
Print: Rolf Ottesen AS
FJELLINJEN AS
St. Olavsgt. 28 N-0166 Oslo
Tel: +47 815 00 101 www.fjellinjen.no
44