• No results found

Report 2015 ANNUAL REPORT

N/A
N/A
Protected

Academic year: 2021

Share "Report 2015 ANNUAL REPORT"

Copied!
21
0
0

Loading.... (view fulltext now)

Full text

(1)

ANNUAL

(2)

2 – ANNUAL REPORT 2015 ANNUAL REPORT 2015 – 3

FoR the past 80 yeaRs, Wallenius Shipping has been a frontrunner in the international shipping industry. With a strong focus on innovative tech-nical and environmental solutions, we form one of the world’s leading shipping and logistics groups within the car carrier segment. The shipping group consists of two core businesses; Wallenius Lines, the shareholder in several global shipping

compa-nies and owner of some 35 RoRo vessels and

Wallenius Marine, responsible for ship manage-ment, ship design and technical management for the Wallenius fleet. All commercial transportation and logistics services are performed by our various associated companies, well positioned under their own brand names with a broad customer base and comprehensive global coverage. ■

WALLENiUs shiPPiNg

pho to : V ik tor F r em li ng

In October, Peter Jodin accepted 11 awards from Robert Gilchrist, Chargé d’Affaires at the US Embassy in Stockholm, in the company of Jan Berglöw, Wallenius Marine and Mikael Layne, from the US Embassy. Amver is a computer-based voluntary global ship reporting system used to arrange assistance for people in distress at sea. The award is the US Coast Guard ‘thank you’ to all Wallenius’ Captains who contin-uously report their vessel’s position.

(3)

2015 2014 2013 2012 2011

turnover 2 800 2 623 2 649 2 148 1 692

Change % 7 -1 23 27 -20

operating profit 894 950 1 007 1 720 1 211

profit after financial items (before tax) 596 611 902 1 510 960

return on capital employed % 5.8 6.4 7.7 13.5 11.6

return on equity % 6.7 8.8 13.7 26.0 19.1

equity ratio % 55.3 50.2 44.9 41.3 36.0

liquidity ratio 0.5 0.5 0.4 1.0 1.0

Fixed capital expenditure 377 138 66 1 138 1 753

liquid funds 355 424 261 256 406 Employees on board ship - - - - -Shore-based 13 13 12 15 14 Available tonnage no. of ships 35 37 37 34 35 Car-carrying capacity (x 1 000) 224 235 235 228 222 Group tonnage no. of ships 29 30 30 28 29 Car-carrying capacity (x 1 000) 185 196 196 189 183 Acquisition value 19 170 18 853 17 101 16 487 15 490

hull insurance value 13 184 16 821 15 926 15 981 15 446

Return on capital employed

profit/loss after financial items, plus financial expenses, as a per centage of average capital employed.

Return on equity

profit/loss as a per centage of average adjusted equity. Equity/assets ratio

equity as a per centage of total assets.

Liquidity ratio

Current assets divided by current liabilities. Capital employed

total assets less non-interest-bearing liabilities including deferred tax liability. total assets has been adjusted for blocked liquid assets and the loan for which the assets were blocked as security, respectively.

Five yeaR

REviEW

sEK million (except where otherwise stated)

Vehicle process-ing is part of WWL services towards their customers. As well as inspecting cars for final delivery, a large range of accessories can also be added to custom a vehicle before delivery.

A

V

(4)

6 – ANNUAL REPORT 2015 ANNUAL REPORT 2015 – 7

the BoaRd and the President of Wallenius Lines AB, company registration number 556033-5928, hereby submit their Annual Report for the opera-tions of the Group and the Parent Company for the financial year of 2015. The figures in parentheses refer to the year 2014.

ThE GROUP’S OPERATIOnS

Wallenius Lines is the Parent Company in the Wallenius Group. In addition to owning shares in several shipping and logistics companies, the Parent Company owns and charters specially-built vessels for transporting vehicles.

Together with international partners, the Walle-nius Group forms the world’s leading shipping and logistics group within the Ro-Ro segment. Through a number of subsidiaries and associated companies, Wallenius Lines offers global ocean and integrated logistics solutions to the world’s manufacturers of cars and other kinds of rolling cargo. Together with global partners, Wallenius Lines controls a fleet of some 170 vessels, 35 of which are owned or long-term chartered by Wallenius Lines. All vessels are operated by our associated companies Wallenius Wilhelmsen Logistics (WWL), EUKOR Car Carriers (EUKOR), United European Car Carriers (UECC) and American Roll-on Roll-off Carrier Group Inc (ARC).

TURnOVER, RESULTS

And fInAnCIAL POSITIOn

Group turnover amounted to SEK 2,503 million compared with SEK 1,827 million in 2014. The share in profits in associated companies totalled SEK 266 million (761).

A large part of the Group’s operations is con-ducted in the associated companies. The associated companies are accounted for in the Group’s income statement using the equity method, which stipu-lates that the Group’s revenue does not include the Group’s share of the associated companies’ revenue. If the turnover in the associated companies would be included, total turnover for the Group would be some SEK 20 billion.

Operating expenses including depreciation ac-cording to the plan amounted to

SEK -1,906 million (-1,672). The operating result was SEK 894 million (950). Net financial items totalled SEK -297 million (-339). Interest expenses amounted to SEK -297 million (-348), of which the positive effects of the market evaluation of financial instru-ments totalled SEK +64 million (+18).

The result after financial items amounted to SEK 596 million (611).

Liquid assets, including short-term investments, totalled SEK 355 million (424). The Group’s invest-ments in vessels and newbuildings totalled SEK 377 million (138).

The equity amounted to SEK 10,012 (8,931), rep-resenting an equity ratio of 55.3 per cent based on book values.

SIGnIfICAnT EVEnTS dURInG ThE

fInAnCIAL yEAR And AfTER ITS End

The lower volumes during 2014 continued in 2015. Like the financial result, ocean-related revenue was affected by weak demand for High & Heavy equip-ment, such as mining and construction machinery. Vehicle volumes transported were at the same level as previous year. Our focus on operational efficiency as well as cost efficiencies along with increased syn-ergies between the operational associated compa-nies, remain important. The land based operations continued to show stable results.

In late 2015, Wallenius Lines AB acquired five vessels from some of its wholly-owned Swedish sub-sidiaries. The funding of vessels was carried over at book value and therefore the Group's balance sheet is not affected by the transaction. The acquisition is part of the efforts to streamline the group structure.

The Japanese, South African and Chinese com-petition authorities have completed their investiga-tions of the automobile transport industry and fined WWL for a non-competitive behaviour. EUKOR was fined in China. Both WWL and EUKOR continue to be included in other jurisdiction’s competition in-vestigations of which the EU and the US are among

the biggest. WWL have decided to make a provision in their 2015 accounts to cover potential expenses related to ongoing investigations. A total of USD 100 million was accrued based on a qualitative evalua-tion of risks and a quantitative valuaevalua-tion of conse-quences; this in line with the accounting principles established. Some of these processes have been classified as non-public by the responsible author-ity which is why Wallenius Lines cannot provide any further comments on them. The processes are expected to continue, but the clarification of some of the juris dictions are expected in 2016 or 2017.

hOLdInGS In ASSOCIATEd COMPAnIES

Wallenius Wilhelmsen Logistics AS

Wallenius Lines and Wilh. Wilhelmsen each own 50 per cent of Wallenius Wilhelmsen Logistics AS. The business is managed from Oslo, Norway.

Wallenius Wilhelmsen Logistics AS (WWL) offers advanced logistics solutions for the transport of cars, trucks and heavy machines from factory to retailer or customer. Typical logistics solutions combine ocean and land-based transportation, terminal han-dling and post-hanhan-dling and completion of products. WWL operated a fleet of 55 vessels during the year, largely owned by the company’s two shareholders. During the year WWL transported some 1.8 million vehicles over sea and some 2.8 million vehicles were transported over land. 13 terminals in various loca-tions around the world handled five million cars and other rolling equipment units and 49 technical pro-cessing centres handled 6.3 million units. Turnover was lower, but the results was on a par with 2014.

In early 2016, WWL acquired a 50 per cent stake in Vehicle Services America (VSA), and the company is thus a wholly-owned subsidiary of the WWL Group. VSA has 3,400 employees and handles about 4.7 million vehicles per year. The acquisition strength-ens WWL's position as a leading provider of vehicle handling in North America. Meanwhile, WWL also acquired a 50 per cent stake in South Africa-based logistics company CAT-WWL, which makes it a wholly-owned subsidiary of the WWL Group. The

business was established in 2006 and currently employs 800 people in South Africa.

EUKOR Car Carriers Inc.

Wallenius Lines and Wilh. Wilhelmsen each own 40 per cent of EUKOR Car Carriers Inc. The remaining 20 per cent is owned by Hyundai Motor Company and Kia Motors Corporation. The head office is located in Seoul, Korea.

EUKOR Car Carriers Inc. (EUKOR) has renewed its contracts for car transportation with Hyundai and Kia Group and has secured transportation of half of Hyundai and Kia's export volumes for two years and then a further two years with at least 40 per cent of the volumes.

During the year, EUKOR has also continued its expansion through increased volumes from other car manufacturers. The company continued its good performance in 2015, partly thanks to good volumes and efficient utilisation of the fleet. The company's fleet, of about 87 vessels, transported approximately 4.2 million units during the year. In 2015, EUKOR ordered two vessels for delivery in 2017.

United European Car Carriers B.V.

Wallenius Lines and Nippon Yusen Kaisha (NYK) each own 50 per cent of United European Car Carriers. The head office is located in Oslo, Norway.

United European Car Carriers B.V. (UECC) conducts short-sea traffic and logistics services throughout the whole of Europe. The company operates a fleet of 20 specialised vessels, both UECC-owned as well as chartered from the com-pany's two shareholders and from external parties. UECC transported about 1.7 million vehicles in 2015, an increase of 7.7 per cent from 2014. UECC’s result was negative in 2015 due to weak volumes, espe-cially to Russia and North Africa, the weakening of the EURO and the sale of two vessels gave rise to capital losses.

UECC will get delivery of two LNG-powered PCTC vessels in the second half in 2016.

REPORT Of

(5)

American Roll-on Roll-off Carrier Group Inc.

Wallenius Lines and Wilh. Wilhelmsen each own 50 per cent of the companies in the American Roll-on Roll-off Carrier Group Inc (ARC). The head office is located in New Jersey, USA.

ARC owns seven US-flagged vessels, and pro-vides global logistics solutions. In early 2016, ARC acquired a vessel from Wallenius Lines, m/v AIDA, to replace a ship sold for recycling.

The units within the ARC Group, which previ-ously supplied global logistics services for private vehicles owned by US government personnel has, during 2015, not conducted any operations.

Tellus Shipping AS

Wallenius Lines and Wilh. Wilhelmsen each own 50 per cent of the company, which has its head office in Oslo, Norway.

Tellus Shipping AS charters vessels on medium- and long-term charter basis on behalf of the other companies in the Group.

GROUP STRUCTURE

Wallenius Lines in Sweden

Wallenius Lines owns 100 per cent of the Swedish subsidiaries and the head office is located in Stock-holm, Sweden. Wallenius Lines and its Swedish subsidiaries, own and/or long-term charter a total of 20 vessels, all of which are operated by WWL.

The shares in the associated companies are held by Wallenius Lines in Sweden.

Wallenius Lines Singapore

Wallenius Lines owns 100 per cent of the subsidiary companies in Singapore. The companies’ head office is located in Singapore.

Wallenius Lines owns several companies in Singa-pore, which between them own a fleet of 16 vessels. Eight of these vessels are operated by WWL, four by UECC and four by EUKOR.

ThE fLEET

In January 2014, Wallenius Lines ordered another two vessels of Post Panamax design for delivery during 2016. Wallenius Lines has a total of four Post Panamax vessels on order.

During 2015, one vessel, m/v TRISTAN built in 1983, was recycled in China at a shipyard certified for green recycling.

In early 2016, the vessel m/v AIDA was sold to ARC.

SIGnIfICAnT RISkS

And UnCERTAInTIES

Financial risk management is governed by a policy approved by the Board. The more significant finan-cial risks in the company are foreign exchange risk and interest rate risks.

ShIP MAnAGEMEnT

Wallenius Marine AB, a sister company of Walle-nius Lines, is overall responsible for ship manage-ment, ship design and newbuilding projects for the Wallenius fleet. For the Swedish-flagged vessels, ship management is handled from Stockholm. For the Singapore-flagged vessels, ship management is handled by the wholly owned subsidiary Wallenius Marine Singapore.

Wallenius Marine handles all Wallenius Lines’ newbuilding projects. They have also been con-tracted by EUKOR and UECC for project man-agement of their respective newbuilding projects, including UECC’s two LNG-fuelled PCTC vessels, to be delivered in 2016.

EnVIROnMEnT

Wallenius Lines became the first shipping company in Sweden and one of the first in the world to certify its Environmental Management System according to ISO 14001. The company realised at an early stage that the shipping industry needs to make an effort to reduce its environmental impact in five identified areas: carbon dioxide, sulphur dioxides, nitrogen oxides, toxic anti-fouling and ballast water. With a

clear vision to operate zero-emission vessels in the future, Wallenius Lines has developed and imple-mented a number of projects, new technologies and entered into new partnerships. The results of ongo-ing work are reported on Wallenius Lines’ web site.

fUTURE ASSESSMEnT

The vehicle cargo market is expected to be stable, or possibly slightly weaker, while the High & Heavy volumes are expected to recover from the very low levels of 2015. The market is predicted to remain challenging, with continued demand for increased profitability.

The Group’s focus on cost-efficiency and on iden-tifying and increasing synergies between the oper-ating companies will continue. We will continue our targeted work to develop the fleet’s fuel efficiency, combined with environmental consideration.

In the beginning of 2016 the Wallenius Group and its associated companies had a total of ten vessels on order, including long-term chartered vessels. The vessels will be delivered during 2016–2017.

PROPOSAL fOR APPROPRIATIOn

Of ThE COMPAny’S PROfIT OR LOSS

The Board of Directors propose that the non-re-stricted equity, SEK 1,878,103,411, be carried forward.

For further information on the Group’s and the Parent company's results and financial position, please refer to the following income statements with accompanying notes. ■

(6)

10 – ANNUAL REPORT 2015

note group parent Company

2015 2014 2015 2014

net sales 2 2 503 416 1 827 457 1 753 181 1 235 992

Share in results of associated companies 15 265 904 761 434 -

-other operating income 3 30 736 33 669 30 619 2 660

2 800 056 2 622 560 1 783 800 1 238 652

operating costs 4 -1 205 296 -1 069 915 -1 773 252 -1 652 533

personnel costs 4 -25 236 -32 818 -20 007 -28 252

Depreciation according to plan -675 581 -569 428 -7 972 -918

other operating costs - -128 -

-Operating profit 893 943 950 271 -17 431 -443 051

result from other securities and receivables reported as fixed assets 5 -215 1 707 -311 1 680 result from participations in group companies - - 51 056 27 result from participations in associated companies - - 35 462 388 952 other interest income and similar profit and loss items 6 -81 7 073 14 7 162 interest costs and similar profit and loss items 7 -297 220 -347 740 -245 435 -299 670

Profit before tax 596 427 611 311 -176 645 -344 900

Appropriations

group contributions, received - - 1 965 033 69 415

group contributions, paid - - - -19 846

other appropriations - - 6 585 918

tax on profit for the year 8 -34 125 85 702 -376 323 148 887

net profit for the year 562 302 697 013 1 418 650 -145 526

profit attributable to owners of the parent Company 562 302 697 013 -

-income

sTATEmENT

(sEK thousands)

TRISTAn was the tenth Wallenius-owned vessel to be recycled by Sea2Cradle. The recycling took place at Zhoushan Changhong International Ship Recycling in Zhoushan, China. As much as 95 per cent of a vessel can typi-cally be recycled or reused.

ph o to : r A ph A el o li V ie r

(7)

note group parent Company

2015 2014 2015 2014

fixed assets

tangible fixed assets

land and buildings 9 3 098 2 984 -

-Ships 10 10 494 015 10 469 000 2 092 316 16 584

equipment 11 359 430 -

-newbuildings 12 383 952 104 254 383 952 104 254

10 881 424 10 576 668 2 476 268 120 838 financial fixed assets

participations in group companies 13 - - 2 084 609 1 747 061 receivables from group companies 14 - 1 724 642 459 831 197 participations in associated companies 15 6 513 404 6 154 745 833 962 763 280 receivables from associated companies 16 69 136 47 297 69 136 47 297 other securities held as fixed assets 17, 18 20 922 22 776 20 923 22 776

Deferred tax receivable 19 81 161 446 064 58 492 442 963

other long-term receivables 20 3 937 3 790 -

-6 -688 5-60 6 676 396 3 709 581 3 854 574

Total fixed assets 17 569 984 17 253 064 6 185 849 3 975 412

Current assets

inventories etc

Consumables 21 10 151 10 482 748 819

Current receivables

Accounts receivable 573 109 356 103

receivables from group companies 25 971 10 902 44 951 34 832 receivables from associated companies 1 771 21 474 - 21 474

tax receivables 31 138 17 467 957 1 941

other current receivables 12 072 8 644 4 454 4 633

prepaid costs and accrued income 22 97 286 56 249 39 275 35 032

168 811 114 845 89 993 98 015

Cash and bank deposits 355 377 423 923 52 585 159 531

Total current assets 534 339 549 250 143 326 258 365

Total assets 18 104 323 17 802 314 6 329 175 4 233 777

note group parent Company

2015 2014 2015 2014

Equity and liabilities

equity 23

Share capital 40 000 40 000 40 000 40 000

revaluation reserve 1 684 201 1 167 962 -

-Statutory reserve - - 8 000 8 000

non restricted equity

profit brought forward 7 725 280 7 026 342 459 453 584 621 net profit for the year 562 302 697 013 1 418 650 -145 526

Total equity 10 011 783 8 931 317 1 926 103 487 095

Untaxed reserves

Accumulated depreciation in excess of plan 24 - - - 6 585

Provisions

pension provisions 5 962 6 296 -

-Deferred tax provisions 19 876 590 1 204 712 32 593 40 742

other provisions 25 36 062 39 334 36 063 39 333

918 614 1 250 342 68 656 80 075

non-current liabilities 26

liabilities to credit institutions 5 502 222 5 828 231 1 792 919 367 488 liabilities to group companies 100 000 100 000 2 046 844 2 684 839

Financial instruments 181 860 245 561 181 860 245 561

other liabilities 252 146 287 291 -

-6 036 228 6 461 083 4 021 623 3 297 888 Current liabilities

liabilities to credit institutions 947 413 838 640 293 091 161 781

Accounts payable 139 2 808 131 2 785

liabilities to group companies 34 829 191 992 30 235 187 746

tax liabilities 30 085 13 374 -

-other current liabilities 56 186 42 412 425 558

Accrued costs and deferred income 27 69 046 70 346 -11 089 9 264 1 137 698 1 159 572 312 793 362 134

Total equity and liabilities 18 104 323 17 802 314 6 329 175 4 233 777

Pledged assets for own liabilities

Ship mortgages 10 043 783 10 338 493 2 697 343 683 226

endowment insurance 17 789 19 642 17 789 19 642

Total pledged assets 10 061 572 10 358 135 2 715 132 702 868

Contingent liabilities

guarantees and contingent liabilities

on behalf of subsidiary companies - - 4 412 022 6 191 395 other guarantees and contingent liabilities 83 245 155 745 83 245 155 745

Total contingent liabilities 83 245 155 745 4 495 267 6 347 140

Balance

shEET

(8)

14 – ANNUAL REPORT 2015 ANNUAL REPORT 2015 – 15

note group parent Company

2015 2014 2015 2014

Cash flow from operating activities

profit after financial items 596 427 611 311 -176 645 -344 900 Adjustments for items not included in the cash flow 28, 30 584 848 429 912 -82 279 107 583 1 181 275 1 041 223 -258 925 -237 317

tax paid 16 518 - -

-Cash flow from operating activities before changes in working capital 1 197 793 1 041 223 258 925 -237 317 Cash flow from changes in working capital

increase(-) / Decrease(+) in inventories 331 -628 71 -194 increase(-) / Decrease(+) in current receivables -73 722 -3 499 172 730 189 996 increase(+) / Decrease(-) in current liabilities -11 734 -32 204 249 124 235 851

Cash flow from operating activities 1 112 668 1 004 892 163 000 188 336

Investment activities

Acquisitions of tangible fixed assets -376 640 -138 024 -291 284 -68 057

Sales of tangible fixed assets 23 259 26 759 23 259

-Acquisitions of group company, net liquid effect -379 910 - - -Acquisitions of financial assets -24 021 -18 988 -404 239 -18 738

Sales of financial assets 407 375 11 463 132 458 440 933

Cash flow from investment activities -349 937 -118 790 -539 806 354 138

financing activities

loans raised 343 802 880 777 704 891 332 140

Amortisation of debt -1 189 852 -1 620 859 -450 904 -781 242

Cash flow from financing activities -846 050 -740 082 253 987 -449 102

Cash flow for the year -83 319 146 020 -122 819 93 372

opening balance liquid funds 423 923 261 347 159 531 71 453 exchange rate differences, liquid funds 14 773 16 556 15 873 -5 294

Closing balance liquid funds 29 355 377 423 923 52 585 159 531

nOTE 1

ACCOUnTInG POLICIES

The Parent Company applies the same accounting policies as the Group except in the cases specified below in the section entitled “The Parent Company’s accounting policies”.

The Annual Report has been prepared in accordance with the Swedish Annual Accounts Act, and in accordance with the Swedish Account-ing Standards Board’s General Recommendations BFNAR 2012:1 Annual Accounts and Consolidated Accounts (K3).

Unless otherwise stated below, assets, provisions and liabilities have been valued at their cost of acquisition.

TAnGIBLE nOn-CURREnT ASSETS

Tangible non-current assets are recorded at cost of acquisition minus accumulated depreciation and impairment. The cost of acquisition includes not only the purchase price, but also expenses directly attributable to the acquisition.

Additional expenses

Additional expenses that satisfy the asset criterion are included in the asset’s carrying value.

Expenses for ongoing maintenance and repairs are recorded as expenses as they arise. For vessels, the difference in the consumption of significant components has been assessed to be key. These assets have therefore been divided into com ponents, which are depreciated separately.

Depreciation

Depreciation takes place on a straight-line basis over the asset’s expected useful life, as this reflects the expected consumption of the asset’s future financial benefits. Depreciation is recorded as an expense in the income statement.

Consideration has been given to the estimated residual value, confirmed at the point of acquisition at the prevailing price level.

Useful life

Vessels 25 years Dry docking 2.5–5 years Buildings Highest permitted tax depreciation Equipment 3–5 years

For vessels, the difference in the consumption of significant components has been assessed to be significant. The main breakdown is vessels and dry docking.

dEPRECIATIOn – TAnGIBLE And

InTAnGIBLE nOn-CURREnT ASSETS

And ShARES In GROUP COMPAnIES

On each balance sheet date an assessment is per-formed of whether there is any indication that an asset’s value is lower than its carrying amount. If there is any such indication, the asset’s recoverable amount is calculated.

The recoverable amount is the higher of the fair value less costs of sale and the value in use. When calculating the value in use, the current value of future cash flows that the asset is expected to generate in current operations is calculated, as well as the value when it is disposed of or retired. The discount rate used is before tax and reflects market assessments of the money’s time value and the risks relating to the asset. A previous impairment is only reversed if the reasons that formed the basis of the calculation of the recoverable amount in connection with the previous impairment have changed.

LEASInG

All lease agreements have been classified as either financial or operational lease agreements. A finan-cial lease agreement is a lease agreement according to which the risks and benefits associated with owner ship of an asset are, to all intents and pur-poses, transferred from the lessor to the lessee. An operational lease agreement is a lease agreement that is not a financial lease agreement.

notes

TO ThE

fiNANciAL sTATEmENTs

cash Flow

ANALysis

(9)

nised from the balance sheet when the contractual obligation has been fulfilled or expired. On demand purchases and on demand sales of financial assets are accounted for on the trade day.

Classification and valuation

Financial assets and liabilities have been classified in different valuation categories in accordance with chapter 12 in BFNAR 2012:1. The classification in different valuation categories is the base for how the financial instruments should be valued and how the value changes would be accounted for.

(i) Loan receivables and accounts receivables

Loan receivables and trade accounts receivables are financial assets that have determined or determin-able payments, which are not derivatives. These assets are valued according to amortised cost. The amortised cost is determined based on the effective rate that is calculated at the acquisition date. Ac-counts receivables are recognised according to the amount expected to be received, i.e. after deductions for doubtful receivables.

(ii) Financial liabilities held for trade Financial liabilities in this category are valued according to fair value and value changes are recognised in the income statement. The category includes derivatives with a negative fair value with the exception for derivatives that are an identified and efficient hedge instrument.

(iii) Other financial liabilities

Loans and other financial liabilities, e.g. accounts payable, are included in this category. The liabilities are valued according to accumulated cost.

Hedge accounting

Hedge accounting is only applied when a financial relation exists between the hedging instrument and the secured item that corresponds with the compa-ny’s goals for risk management. Additionally, it is required that the hedging relationship is expected to

be very efficient during the period for which it has been identified and that the hedging relationship and the company’s goal for risk management and risk management strategy regarding the hedge is documented, at the latest, when the hedge is started. (i) Currency hedging of vessels

Liabilities in USD have been designated as hedging instruments in fair value hedges of the Group’s vessels. Transactions in the ship market are made in USD and the Group’s loans in USD have therefore been deemed effective off-setting changes in the fair value of the vessels which are attributable to changes in the USD/SEK exchange rate. The loans which are designated as hedging instruments are translated at the exchange rate at the close of the financial period and the changes in value are recog-nised in the Income Statement. Simultaneously, the vessels’ carrying value is translated at the exchange rate at the close of the financial period to the extent the carrying values of the vessels are designated as hedged items. The restatement of the vessels meets the Income Statement restatement of the loans.

REMUnERATIOn TO EMPLOyEES AfTER TERMInATEd EMPLOyMEnT Classification

Plans for remunerations after terminated employ-ment are classified either as defined contribution plans or defined benefit plans.

For defined contribution plans, determined fees are paid to another company, normally an insurance company, and there is no obligation to the employee when the fee is paid. The size of the employee’s remunerations after terminated employment is dependent on the fees that have been paid and the return on capital on those fees.

For defined benefit plans, the company has an obligation to provide the remunerations agreed upon to current and earlier employees. The com-pany carries, in all material aspects, the risk for the remunerations to be higher than expected (actuarial risk) and the risk for the return on the assets to

devi-Financial lease agreements

Rights and obligations under financial lease agreements are recorded as assets and liabilities in the balance sheet. When first recorded, the asset or liability is valued at the lower of the asset’s fair value and the current value of the minimum lease charges. Expenses that are directly attributable to concluding and setting up the lease agreement are added to the amount recorded as an asset. After being recorded for the first time, the minimum lease charges are distributed to interest and repayment of the liability in accordance with the effective interest method. Variable charges are recorded as expenses in the financial year during which they arose. The leased asset is depreciated over the lease period.

Operational lease agreements

Lease charges under operational lease agreements, including first-time rent but excluding charges for services such as insurance and maintenance, are recorded as an expense on a straight-line basis over the lease period.

fOREIGn CURREnCy

See under the heading “Hedge accounting” for items included in a hedging relationship.

Items in foreign currency

Monetary items in foreign currency are translated at the exchange rate on the balance sheet date. Non-monetary items are not translated, but are recorded at the exchange rate when the acquisition was made, except for vessels, see under the heading “Hedge accounting”. Exchange rate differences that arise when settling or translating monetary items are recorded in the income statement in the financial year during which they arise.

Net investments in foreign business

An exchange rate difference that relates to a mon-etary item that constitutes part of a net investment in a foreign business and that has been valued on the basis of the cost of acquisition is recorded in

the consolidated accounts as a separate component directly in equity.

Translation of foreign businesses

Assets and liabilities, including goodwill and other group-related surplus and deficit values, are trans-lated into the recording currency at the exchange rate on the balance sheet date. Income and expenses are translated at the spot rate on each day for business transactions, unless an exchange rate that represents an approximation of the actual exchange rate is used (e.g. average exchange rate). Exchange rate differences that arise in connection with trans-lation are recorded directly to equity.

InVEnTORIES

Inventories are valued at the lower of the cost of acquisition and the net realisable value. The risk of obsolescence has been taken into account. The cost of acquisition is calculated in accordance with the first-in first-out principle. The cost of acquisition included not only purchasing expenses, but also charges for transporting the goods to their current location and state.

fInAnCIAL ASSETS And LIABILITIES

Financial assets and liabilities are accounted for in accordance with chapter 12 (Financial instruments valued according to chapter 4, 14 a – 14 e §§ the Annual Accounts Act) in BFNAR 2012:1.

Recognition and derecognition in the balance sheet

A financial asset or financial liability is recognised in the balance sheet when the company becomes a part of the instrument’s contractual terms.

A financial asset is derecognised when the contractual right to cash flows from the asset has expired or been settled. The same goes for when the risks and benefits associated with the holding has been substantially transferred to another party and the company does not possess control over the financial asset. A financial liability is

(10)

derecog-18 – ANNUAL REPORT 2015 ANNUAL REPORT 2015 – 19

ate from the expectations (investment risk). Invest-ment risk also exists if the assets are transferred to another company.

Defined contribution plans

The fees for defined contribution plans are recog-nised as expenses. Unpaid fees are accounted for as a liability.

Defined benefit plans

The company has chosen to apply the simplifying rules presented in BFNAR 2012:1.

TAx

Tax on the profit for the year in the income state-ment consists of current tax and deferred tax. Current tax is income tax for the current financial year that relates to the taxable profit for the year and the element of income tax for previous financial years that has not yet been recorded. Deferred tax is income tax on taxable profit in respect of future financial years as a consequence of previous trans-actions or events.

A deferred tax liability is recorded for all taxable temporary differences, although not for temporary differences that originate from the first recording of goodwill. A deferred tax asset is recorded for deductible temporary differences and for the possi-bility in future of using tax loss carryforwards. The valuation is based on how the carrying amount of the corresponding asset or liability is expected to be recovered or settled. The amounts are based on tax rates and tax rules that have been adopted before the balance sheet date and have not been calculated at the current value.

In the consolidated balance sheet, untaxed re-serves are divided into deferred tax and equity.

PROVISIOnS

A provision is recorded in the balance sheet when the company has a legal or informal obligation as a consequence of an event, and it is probable that an outflow of resources will be required to settle the

obligation and a reliable estimate of the amount can be produced.

When recorded for the first time, provisions are valued at the best estimate of the amount that will be demanded to settle the obligation on the balance sheet date. Provisions are reassessed on each bal-ance sheet date.

COnTInGEnT LIABILITIES

A contingent liability is recorded as a memorandum item when there is:

– A possible obligation originating as a conse-quence of events and the existence of which will only be confirmed by one or more uncertain future events that are not entirely within the company’s control, occur or do not occur, or

– An existing obligation as a consequence of events, but that is not recorded as a liability or a provision because it is unlikely that an outflow of resources will be required in order to settle the obligation or the size of the obligation cannot be calculated with sufficient reliability.

InCOME

The inflow of financial benefits that the company has received or will receive on its own account is recorded as income. Income is recorded at the fair value received or due to be received with deductions for any discounts given.

The revenue in both the Parent Company and the Group consists predominantly of operational lease income. The revenue varies over time basis the result in the company which operates the vessels.

Interest and dividend

Income is recorded when the financial benefits associated with the transaction will probably accrue to the company and when the income can be calcu-lated in a reliable way. Interest is recorded as income in accordance with the effective interest method. A dividend is recorded when an authorised body has made a decision that a dividend is to be paid.

COnSOLIdATEd fInAnCIAL STATEMEnTS Subsidiaries

A subsidiary is a company in which the Parent Company possesses, either directly or indirectly, more than 50 per cent of the votes or in some other way has a controlling influence. A controlling influ-ence means a right to define a company’s financial and operational strategies with the aim of achieving financial benefits. The recording of business acqui-sitions is based on the unit view. This means that the acquisition analysis is produced as of the date on which the acquiring party achieves a controlling influence. As of this date, the acquiring party and the acquired unit are viewed as one accounting unit. Application of the unit view also means that all assets (including goodwill) and liabilities, as well as income and expenses, are included in full, even for part-owned subsidiaries.

The cost of acquisition of subsidiaries is calculated as the sum of the fair value on the acquisition date for assets paid plus debts arising and taken over, as well as any own equity instruments issued, ex-penses that are directly attributable to the business acquisition and any purchase price. The acquisition analysis confirms the fair value, with some excep-tions, on the acquisition date of acquired, identifi-able assets and liabilities taken over, as well as mi-nority interests. Mimi-nority interests are valued at fair value on the acquisition date. As of the acquisition date, the acquired company’s income and expenses, identifiable assets and liabilities, and any goodwill or negative goodwill generated are included in the consolidated financial statements.

Associated companies

Shareholding in associated companies, in which the company has at least 20 per cent and no more than 50 per cent of the votes or in some other way has a significant influence over operational and financial control, is recorded in accordance with the equity method. The equity method means that the value of shares in associated companies recorded in the Group corresponds to the Group’s share in the

as-sociated companies’ equity, any residual value from Group surplus or deficit values, including goodwill and negative goodwill, minus any internal profits. In the consolidated income statement, the “Share in associated companies’ profit/loss” is recorded as the Group’s share in the associated companies’ profit/ loss after tax, adjusted for any depreciation or disso-lution of acquired surplus/deficit values, including depreciation of goodwill/dissolution of negative goodwill. Dividends received from associated companies are deducted from the carrying amount. Profit shares accrued after acquisitions of associated companies that have not yet been realised through dividends are set aside in the equity fund.

Elimination of transactions between Group Companies, associated companies and jointly controlled companies

Internal Group receivables and liabilities, income and expenses and unrealised profits or losses aris-ing from transactions between Group Companies are eliminated in full. Unrealised profits resulting from transactions with associated companies are eliminated to the extent that they correspond to the Group’s shareholding in the company. Unrealised losses are eliminated in the same way as unrealised profits, but only to the extent that there is no indica-tion of any need for impairment.

ACCOUnTInG POLICIES In ThE PAREnT COMPAny

The accounting policies in the Parent Company correspond with the accounting policies described above for consolidated accounting, with the excep-tion of the following cases.

Leasing

Financial lease agreements are recorded as opera-tional lease agreements in the Parent Company.

Foreign currency

A foreign currency exchange gain/loss relating to a monetary item that forms part of the Parent

(11)

Com-nOTE 2

net sales by business group parent Company

2015 2014 2015 2014

net sales by business segments

Sea transport 2 503 416 1 827 457 1 753 181 1 235 992

2 503 416 1 827 457 1 753 181 1 235 992

nOTE 3

other operating income group parent Company

2015 2014 2015 2014

Capital gains 23 259 26 758 -

-other 7 477 6 911 30 619 2 660

30 736 33 669 30 619 2 660

nOTE 4

Average number of employees

2015 Men 2014 Men

parent company, Sweden 5 80% 5 80%

Subsidiaries

Singapore 8 0% 8 0%

Distribution by gender Women

2015 2014 Parent company Board of Directors 33% 25% management 0% 0% Group Board of Directors 38% 33% management 33% 33%

Wages, salaries, other remunerations and social security costs

Wages, salaries and other remu-nerations Social security costs Wages, salaries and other remu-nerations Social security costs 2015 2015 2014 2014 parent company 15 306 5 815 14 244 5 010

Of which pension costs 1) - 1 970 - 1 408

Subsidiary companies 4 850 - 3 155

-Of which pension costs - - -

-Group total 20 156 5 815 17 399 5 010

Of which pension costs - 1 970 - 1 408

1) Of the parent company’s pension costs 1 066 SEK thousand (1 132) relate to the category Board and President. The company’s outstanding pension commitments to these amounted tot 9 627 SEK thousand (11 270).

Wages, salaries, other remunerations by member of the board, etc. and other employees

Board of directors

and Ceo employeesother

Board of directors

and Ceo employeesother

2015 2015 2014 2014 parent company 6 892 8 414 7 448 6 796 of which bonuses - - - -Subsidiary companies 1 451 3 399 995 2 160 of which bonuses - - - -Group total 8 343 11 813 8 443 8 956 Of which bonuses - - - -Severance pay

The parent company has reached an agreement with the president and a few members of Group Management concerning severance pay. In the event of notice being given by the company the President and others will receive a compensation comprising one years' salary. In the event of notice given by the President himself the President will receive six months salary.

pany’s net investment in a foreign operation and which is valued on the basis of the acquisition cost is recognised in the Income Statement if the gain/loss occurred in the Parent Company.

Financial assets and liabilities

Financial assets and liabilities are recognised in accordance with Chapter 11 (Financial instruments valued based on acquisition cost) in BFNAR 2012:1.

Valuation of financial assets

At the initial recognition, financial assets are measured at the acquisition cost, including any transaction costs that are directly attributable to the acquisition of the asset.

Subsequent to the initial recognition, current fi-nancial assets are valued at the lower of the acquisi-tion cost or the net realisable value at the close of the reporting period.

Trade accounts receivable and other receivables that are current assets are valued individually at the amount expected to be received.

Financial fixed assets are valued after initial recognition at acquisition cost less any impairment losses and increased by any revaluation.

Interest-bearing financial assets are measured at amortised cost using the effective interest method.

Valuation of financial liabilities

Financial liabilities are valued at amortised acqui-sition cost. Expenses that are directly attributable to the raising of loans modify the loan’s acquisition cost and are amortised using the effective interest method. Short-term liabilities are recognised at cost.

Derivative instruments with a negative value and for which hedge accounting is not applied are rec-ognised as financial liabilities and are valued at the amount which is more favourable for the company if the obligation would be unwound or transferred at the close of the reporting period. Changes in value are recognised in the Income Statement

Ownership interests in subsidiaries, parti ci pations in associated companies and jointly controlled entities

Shares and other ownership interests in subsid-iaries, participations in associated companies and jointly controlled entities are carried at acquisition cost less accumulated impairment losses. In addition to the purchase price, acquisition cost includes ex-penses directly attributable to the acquisition.

Salaries and other compensation to employees

In the Parent Company, the defined benefit plans are reported according to the simplification rules in BFNAR 2012:1.

Taxes

Deferred tax attributable to untaxed reserves is not reported separately in the Parent Company.

Group contributions and other shareholders’ contributions

Group contributions received/provided are reported as a balance-sheet allocation in the Income State-ment. The received/provided group contribution has affected the company’s current tax.

(12)

22 – ANNUAL REPORT 2015 ANNUAL REPORT 2015 – 23

Fees and expense allowances for auditors group parent Company

2015 2014 2015 2014

Audit assignments to kpmg 1 738 1 668 1 140 1 140

other assignments to kpmg 152 178 -

-Audit services refer to the legally required examination of the annual report and the book-keeping, the Board of Director's and the managing Director's management and other audit and examinations agreed-upon or determined by contract.

this includes other work assignments which rest upon the Company's auditor to conduct, and advising or other support justified by observations in the course of examination or execution of such other work assignments.

operating lease group parent Company

2015 2014 2015 2014

lease contracts where the Company is the lessee

Future minimum lease payments regarding non-cancellable operating lease contracts

Within one year 1 306 1 297 1 306 1 297

Between one and five years 2 612 2 594 2 612 2 594

later than five years - - -

-the financial year's recognised lease expenses 1 306 1 297 1 306 1 297 lease contracts refer to lease of property within the group. the contract is for three years with a notice of termination of 9 months.

nOTE 5

result from other securities and receivables reported as fixed assets group parent Company

2015 2014 2015 2014

other interest income 1 767 1 677 1 767 1 677

Foreign exchange differences -2 078 3 -2 078 3

Capital gains/losses 96 27 -

--215 1 707 -311 1 680

nOTE 6

other interest income and similar profit and loss items group parent Company

2015 2014 2015 2014

other interest income 201 1 868 229 1 868

Foreign exchange differences, realised -173 977 -215 963

Foreign exchange differences, unrealised -109 4 228 - 4 331

-81 7 073 14 7 162

nOTE 7

interest costs and similar profit and loss items group parent Company

2015 2014 2015 2014

interest costs, group companies -15 547 -16 705 -15 547 -16 705 other interest costs -290 906 -269 033 -155 773 -157 739 Foreign exchange differences, realised -38 381 -63 953 -17 824 -53 273 Foreign exchange differences, unrealised 1 733 -2 673 -112 677 -66 850

revaluation derivatives 63 701 17 686 63 701 17 686

other financial expenses -17 820 -13 062 -7 315 -22 789

-297 220 -347 740 -245 435 -299 670

nOTE 8

tax on profit for the year group parent Company

2015 2014 2015 2014

Current tax 13 277 -6 -

-Deferred tax -47 402 85 708 -376 323 148 887

-34 125 85 702 -376 323 148 887

reconciliation of effective tax rate

2014

group percent Amount percent Amount

profit/loss before tax 596 427 611 311

tax according to current tax rate for the parent company 22,0% -131 214 22,0% -134 488 effect due to other tax rates for foreign subsidiaries -6,5% 39 003 -2,0% 12 118

non-deductible expenses 0,2% -1 353 0,8% -4 804

non-taxable income -10,0% 59 439 -34,8% 212 875

Reported effective tax 5,7% -34 125 -14,0% 85 702

parent Company percent Amount percent Amount

profit/loss before tax 1 794 973 -294 413

tax according to current tax rate for the parent company 22,0% -394 894 22,0% 64 770

non-deductible expenses 0,1% -1 133 -1,6% -4 584

non-taxable income -1,1% 19 704 30,1% 88 701

Reported effective tax 21,0% -376 323 50,6% 148 887

nOTE 9

land and buildings group parent Company

2015-12-31 2014-12-31 2015-12-31 2014-12-31 Accumulated acquisition value

opening balance 6 937 5 780 -

-investments 127 - -

-translation differences during the year 477 1 157 -

-7 541 6 937 -

-Accumulated depreciation according to plan

opening balance -3 953 -3 131 -

-Depreciation during the year -219 -171 -

-translation differences during the year -271 -651

-4 443 -3 953 -

-Closing residual value 3 098 2 984 -

-land (included in -land and buildings) group parent Company

2015-12-31 2014-12-31 2015-12-31 2014-12-31

Accumulated acquisition value 351 328 -

-Closing residual value 351 328 -

-nOTE 10

Ships group parent Company

2015-12-31 2014-12-31 2015-12-31 2014-12-31 Accumulated acquisition value

opening balance 18 852 526 17 073 929 702 611 693 707

investments 96 818 78 802 11 586 8 904

Sales and retirements -422 395 -186 238 -422 395

-reclassifications 1 328 57 487 -

-investments from subsidiaries - - 3 066 242

-translation differences during the year 424 389 1 221 091 -

-Currency hedging of ships 217 414 607 455 -

-19 170 080 18 852 526 3 358 044 702 611 Accumulated depreciation according to plan

opening balance -8 383 526 -7 693 548 -686 027 -685 110

Sales and retirements 422 395 157 501 422 395

-Depreciation during the year -675 261 -569 175 -7 973 -917

investments from subsidiaries - - -994 123

-translation differences during the year -39 673 -278 304 - --8 676 065 -8 383 526 -1 265 728 -686 027

Closing residual value 10 494 015 10 469 000 2 092 316 16 584

Leasing

group

Ships held under financial lease contracts are included with carrying amount of 271 845 308 398

Under other current and non-current liabilities the present values of future payments regarding financial lease obligations, that are entered as liabilities, are recorded.

(13)

nOTE 14

receivables from group Companies group parent Company

2015-12-31 2014-12-31 2015-12-31 2014-12-31

opening balance 1 724 - 831 197 970 734

new loans - 1 724 - 1 724

payments during the year -1 724 - -187 017 -141 264

translation differences for the year - - -1 721 3

Closing book value - 1 724 642 459 831 197

nOTE 15

participations in associated companies group parent Company

2015-12-31 2014-12-31 2015-12-31 2014-12-31

opening balance 6 154 745 5 023 621 763 280 764 939

Shares in profit after tax for the year 265 904 761 434 94 244 27 691

group adjustments - -11 144 -

-Sales -22 997 - -

-Write-downs - - -297 -9 850

Withdrawal from associated partnership companies -43 622 -74 900 -43 623 -74 900

Dividends from associated companies -199 775 -540 066 -

-translation differences for the year 357 428 995 003 20 358 55 400

other 1 721 797 -

-Closing book value 6 513 404 6 154 745 833 962 763 280

Specification of Parent Company and Group holdings of shares and participations in associated companies

name, company registration no. and registered office

Adjusted equity/

net profit shares/%no of

Share of equity

in the group Book value

2015-12-31 directly owned

eUkor Car Carriers (Singapore) pte ltd.

-200207847D, Singapore -610 40% -

-eUkor Shipowning (Singapore) pte ltd.

-200300674h, Singapore -101 40% -

-American roll-on roll-off Carrier holdings, llC 352 654

52-2189266, new Jersey, USA 94 244 50% 352 654 352 654

American Shipping & logistics group, inc. 304 489

22-3518592, new York, USA -5 367 50% 304 489 128 531

American logistics network, llC 19 884

22-3735893, new Jersey, USA -647 50% 19 884 41 314

United european Car Carriers B.V. 334 137

33221133, Amsterdam, netherlands -41 206 50% 334 137 311 400

tellus Shipping AS 15 696

992255943, lysaker, norway 7 596 50% 15 696 63

Indirectly owned

Wallenius Wilhelmsen logistics AS 644 816

980651673, oslo, norway -225 375 50% 644 816 856 119

eUkor Car Carriers inc. 4 627 661

101-81-88064, Seoul, korea 525 410 40% 4 627 661 1 202 523

Fidelio ltd. partnership, USA 214 067 50% 214 067 232 414

Total share of equity in the Group nOTE 11

equipment group parent Company

2015-12-31 2014-12-31 2015-12-31 2014-12-31 Accumulated acquisition value

opening balance 13 681 13 459 -

-investments - 69 -

-translation differences during the year 41 153 -

-13 722 13 681 -

-Accumulated depreciation according to plan

opening balance -13 251 -13 088 -

-Depreciation during the year -101 -82 -

-translation differences during the year -11 -81 -

--13 363 -13 251 -

-Closing residual value 359 430 -

-nOTE 12

newbuildings group parent Company

2015-12-31 2014-12-31 2015-12-31 2014-12-31

opening balance 104 254 45 101 104 254 45 101

investments 279 698 59 153 279 698 59 153

Closing residual value 383 952 104 254 383 952 104 254

nOTE 13

participations in group Companies parent Company

2015-12-31 2014-12-31

opening balance 1 747 061 2 096 791

investments 380 218 15 187

Sale of group company -42 670 -364 917

Closing book value 2 084 609 1 747 061

Specification of Parent Company and Group holdings of shares and participations in Group Companies

Company reg nr reg. office no of shares equity in % i)Share of Book value Book value 2015-12-31 2014-12-31

rederi AB Wallship 556048-4148 Stockholm 150 100 198 198

Wallocean AB 556525-2227 Stockholm - - - 120

Wallauto AB 556522-7542 Stockholm 1 000 100 120 120

Wallcargo AB 556331-3468 Stockholm 100 100 120 120

Wallfreight AB 556521-8483 Stockholm 100 100 120 120

Wallroll AB 556668-5987 Stockholm 1 000 100 100 100

Wall ro/ro AB 556668-5961 Stockholm 1 000 100 100 100

Walltime AB 556253-9840 Stockholm 100 100 120 120

Wallsun AB 556664-2335 Stockholm 1 000 100 100 100

Walltrade AB 556674-5575 Stockholm 1 000 100 15 287 15 287 Wallstraits Shipping pte ltd 201119201m Singapore 50 000 100 320 320 Wallenius logistics AB 556253-9873 Stockholm 100 100 600 110 600 110 mpS Broadband AB 556576-9055 Stockholm 7 221 649 100 380 089 -Wallenius lines Singapore holding pte ltd 1999-07275-D Singapore 152 794 836 100 589 161 631 711 - Wallenius lines Singapore pte ltd 1982-03904-h Singapore - 100 - -- parsifal Shipping pte ltd 1987-02579-r Singapore - 100 - -mark V Shipping pte. ltd. 2010-17593-r Singapore 60 050 000 100 414 596 414 596 oW Shipping pte ltd 200415103Z Singapore 14 750 000 100 43 319 43 319

Wallenius lines malta ltd C72083 malta 15 000 100 129

-Wallenius lines holding inc 13-3498024 new Jersey 1 000 100 39 365 39 365 - American Auto Carriers inc 13-3498025 new Jersey - 100 -

-Dormant companies 100 1 255 1 255

2 084 609 1 747 061

(14)

26 – ANNUAL REPORT 2015 ANNUAL REPORT 2015 – 27 nOTE 18

Financial instruments and risk management Financial instruments that are valued according

to fair value in the income statement Carrying amount

Change in value recognised in the income

Statement Carrying amount

Change in value recognised in the income Statement Group 2015-12-31 2015-12-31 2014-12-31 2014-12-31 Liabilities

derivatives for which hedge accounting do not apply

interest swaps 181 860 63 701 245 561 17 686

181 860 63 701 245 561 17 686

Financial instruments that are valued at the lower

of the cost of aqcuisition and the net realisable value Fair value Carrying amount

Change in value recognised in the income Statement Parent Company 2015-12-31 2015-12-31 2015-12-31 Liabilities

derivatives for which hedge accounting do not apply

interest swaps 181 860 181 860 63 701

181 860 181 860 63 701

Fair value Carrying amount

Change in value recognised in the income Statement Parent Company 2014-12-31 2014-12-31 2014-12-31 Liabilities

derivatives for which hedge accounting do not apply

interest swaps 245 561 245 561 17 686

245 561 245 561 17 686

Disclosure about derivatives

interest rate swaps (irS) are used to convert floating interest rate to fixed. the irS hedge a nominal amount of 2 880 957 tkr (3 085 621).

Measurement of fair value

Derivatives

the fair value of interest rate swaps is based on the brokering credit institution's valuation, who's fairness is tested via discounting the estimated future cash flows under the contract terms and maturities against the market interest rates for similar instruments at the close of the reporting period.

Hedging transactions

Hedging of foreign exchange risk

Because the vessels are bought and sold in USD, value of the vessels are hedged against changes in the USD exchange rate via that loans are raised in USD. Changes in value of the USD loans included in hedge accounting for changes in the USD exchange rate are recognised in the income Statement; where the income effects is met by the corre-sponding changes in value, it is recognised on the vessel's value. loans included in such hedge accounting have a carrying value of 6 441 119 tkr (6 682 077). the translation amounts for the year appear in the oB–CB reconciliation of ships in note 10.

nOTE 19

Deferred taxes Carrying value tax base temporary difference

Group 2015-12-31 2015-12-31 2015-12-31

Significant temporary differences

pensions -22 884 - -22 884

taxable loss carry-forward - 61 129 -61 129

Ships 3 190 218 - 3 190 218

Financial instruments -181 860 - -181 860

other temporary differences 399 297 - 397 874

3 384 771 61 129 3 322 219 taxable loss carry-forward amounts to 61 129 tkr and other unused tax deductions amounts to 0 tkr.

name, company registration no. and registered office

Adjusted equity/

net profit shares/%no of

Share of equity

in the group Book value

2014-12-31 directly owned

eUkor Car Carriers (Singapore) pte ltd. 12 338

200207847D, Singapore 18 969 40% 12 338 201

eUkor Shipowning (Singapore) pte ltd. 9 084

200300674h, Singapore 82 469 40% 9 084 97

American roll-on roll-off Carrier holdings, llC 281 674

52-2189266, new Jersey, USA 27 691 50% 281 674 281 674

American Shipping & logistics group, inc. 281 375

22-3518592, new York, USA 24 594 50% 281 375 128 531

American logistics network, llC 18 113

22-3735893, new Jersey, USA -5 948 50% 18 113 41 314

mark 1 Shipping pte ltd 4 170

200400928r, Singapore -89 50% 4 170

-United european Car Carriers B.V. 338 129

33221133, Amsterdam, netherlands -1 260 50% 338 129 311 400

tellus Shipping AS 15 460

992255943, lysaker, norway 2 846 50% 15 460 64

Indirectly owned

Wallenius Wilhelmsen logistics AS 932 615

980651673, oslo, norway 92 024 50% 932 615 856 119

eUkor Car Carriers inc. 4 087 834

101-81-88064, Seoul, korea 493 241 40% 4 087 834 1 202 523

Fidelio ltd. partnership, USA 173 953 50% 173 953 162 244

Total share of equity in the Group

nOTE 16

receivables from associated companies group parent Company

2015-12-31 2014-12-31 2015-12-31 2014-12-31

opening balance 47 297 - 47 297

-new loans 23 920 47 297 23 920 47 297

reclassifications -2 081 - -2 081

-Closing book value 69 136 47 297 69 136 47 297

nOTE 17

other securities held as fixed assets group parent Company

2015-12-31 2014-12-31 2015-12-31 2014-12-31 Accumulated acquisiton costs

opening balance 31 552 31 552 31 552 31 552

Closing book value 31 552 31 552 31 552 31 552

Accumulated revaluation

opening balance -8 776 -7 686 -8 776 -7 686

revaluations during the year -1 854 -1 090 -1 853 -1 090

Closing book value -10 630 -8 776 -10 628 -8 776

(15)

Deferred

tax asset tax liabilityDeferred net

Group 2015-12-31 2015-12-31 2015-12-31

Significant temporary differences

pensions 5 034 - 5 034

taxable loss carry-forward 13 449 - 13 449

Ships - -701 848 -701 848

Financial instruments 40 009 - 40 009

other temporary differences 22 669 -174 742 -152 073

deferred tax asset/liability 81 161 -876 590 -795 429

deferred tax asset/liability (net) 81 161 -876 590 -795 429

Carrying

value tax base temporary difference

Group 2014-12-31 2014-12-31 2014-12-31

Significant temporary differences

pensions -24 859 - -24 859

taxable loss carry-forward -1 743 045 - -1 743 045

Ships 4 118 872 - 4 118 872

Financial instruments -245 563 - -245 563

other temporary differences 1 082 925 - 1 082 925

3 188 330 - 3 188 330

taxable loss carry-forward amounts to 1 743 045 tkr and other unused tax deductions amounts to 0 tkr.

Deferred

tax asset tax liabilityDeferred net

Group 2014-12-31 2014-12-31 2014-12-31

Significant temporary differences

pensions 5 469 - 5 469

taxable loss carry-forward 383 470 - 383 470

Ships - -906 152 -906 152

Financial instruments 54 024 - 54 024

other temporary differences 3 101 -298 560 -295 459

deferred tax asset/liability 446 064 -1 204 712 -758 648

deferred tax asset/liability (net) 446 064 -1 204 712 -758 648

Carrying

value tax base temporary difference

Parent Company 2015-12-31 2015-12-31 2015-12-31

Significant temporary differences

pensions -22 884 - -22 884

taxable loss carry-forward - 61 129 -61 129

Financial instruments -181 860 - -181 860

other temporary differences 148 150 - 148 150

-56 594 61 129 -117 723 taxable loss carry-forward amounts to 61 129 tkr and other unused tax deductions amounts to 0 tkr.

Deferred

tax asset tax liabilityDeferred net

Parent Company 2015-12-31 2015-12-31 2015-12-31

Significant temporary differences

pensions 5 034 - 5 034

taxable loss carry-forward 13 449 - 13 449

Financial instruments 40 009 - 40 009

other temporary differences - -32 593 -32 593

deferred tax asset/liability 58 492 -32 593 25 899

deferred tax asset/liability (net) 58 492 -32 593 25 899

Carrying

value tax base temporary difference

Parent Company 2014-12-31 2014-12-31 2014-12-31

Significant temporary differences

pensions -24 859 - -24 859

taxable loss carry-forward -1 743 045 - -1 743 045

Financial instruments -245 563 - -245 563

other temporary differences 185 191 - 185 191

-1 828 276 - -1 828 276

taxable loss carry-forward amounts to 1 743 045 tkr and other unused tax deductions amounts to 0 tkr.

Deferred

tax asset tax liabilityDeferred net

Parent Company 2014-12-31 2014-12-31 2014-12-31

Significant temporary differences

pensions 5 469 - 5 469

taxable loss carry-forward 383 470 - 383 470

Financial instruments 54 024 - 54 024

other temporary differences - -40 742 -40 742

deferred tax asset/liability 442 963 -40 742 402 221

deferred tax asset/liability (net) 442 963 -40 742 402 221

nOTE 20

other long-term receivables group parent Company

2015-12-31 2014-12-31 2015-12-31 2014-12-31

opening balance 3 790 2 906 -

-payments during the year -329 -262 -

-reclassifications - - -

-translation differences for the year 476 1 146 -

-Closing book value 3 937 3 790 -

-nOTE 21

inventories group parent Company

2015-12-31 2014-12-31 2015-12-31 2014-12-31

Consumables 10 151 10 482 748 819

10 151 10 482 748 819

nOTE 22

prepaid costs and accrued income group parent Company

2015-12-31 2014-12-31 2015-12-31 2014-12-31 operations related 45 366 44 571 39 113 34 884 Financially related 51 733 867 - -personnel related 162 148 162 148 other 25 10 663 - -97 286 56 249 39 275 35 032

(16)

30 – ANNUAL REPORT 2015 ANNUAL REPORT 2015 – 31 nOTE 23

equity – group capitalShare restricted reserves

opening balance 2015-01-01 40 000 1 167 962

Changes in carrying amounts that are accounted for directly in equity

translation difference 516 239

Equity 2015-12-31 1 684 201

profit brought forward including net profit for the year

Group

opening balance 2015-01-01 7 723 355

net profit for the year 562 302

Changes in carrying amounts that are accounted for directly in equity

translation difference

equity from associated companies 1 925

Equity 2015-12-31 8 287 582

restricted equity capitalShare restricted reserves

Parent Company

opening balance 2015-01-01 40 000 8 000

equity 40 000 8 000

non-restricted equity profit brought forward including net profit for the year

Parent Company

opening balance 2015-01-01 439 095

net loss for the year 1 418 650

Changes in carrying amounts that are accounted for directly in equity

translation difference 20 358

Equity 2015-12-31 1 878 103

nOTE 24

Appropriations parent Company

2015 2014

Accumulated depreciation in excess of plan on ships - 6 585

nOTE 25

other provisions group parent Company

2015 2014 2015 2014

other 36 063 39 334 36 062 39 333

36 063 39 334 36 062 39 333

nOTE 26

non-current liabilities group parent Company

2015-12-31 2014-12-31 2015-12-31 2014-12-31 Liabilities that mature later than one year from balance sheet date

other liabilities to credit institutions 3 790 042 3 591 879 874 314 321 814

other liabilities 252 146 252 652 -

-Liabilities that mature later than five years from balance sheet date

other liabilities to credit institutions 1 712 180 2 283 950 918 605 45 674 liabilities to group companies 100 000 100 000 2 046 844 2 684 839

other liabilities 181 860 232 602 181 860 245 561

Pledged assets for liabilities to credit institutions

Ship mortgages 10 043 783 10 338 493 2 697 343 683 226

nOTE 27

Accrued expenses and deferred income group parent Company

2015-12-31 2014-12-31 2015-12-31 2014-12-31 operations related 20 105 8 325 -27 992 -9 221 personnel related 2 814 2 942 2 814 2 942 Financially related 43 708 44 801 12 949 13 320 others 2 419 14 278 1 140 2 223 69 046 70 346 -11 089 9 264 nOTE 28

paid interest and received dividend group parent Company

2015-12-31 2014-12-31 2015-12-31 2014-12-31

received dividend 199 775 540 066 63 818 398 802

received interest 236 10 538 236 1 119

paid interest -307 546 -276 782 -171 691 -173 349

nOTE 29

Cash equivalents group parent Company

2015-12-31 2014-12-31 2015-12-31 2014-12-31 The following sub-components are included in cash equivalents:

Bank balance 355 377 423 923 52 585 159 531

the above items have been classified as cash equivalents with the basis that: - they have an immaterial risk for value fluctuations.

- they can easily be converted into cash.

- they have a maximum duration of 3 months from the acquisition date.

nOTE 30

other disclosures to the cash flow statement group parent Company

2015 2014 2015 2014

Depreciation and amortisation 675 581 569 428 7 973 10 768

exchange rate differences 22 436 44 862 116 924 137 614

Dividend received from associated companies 243 397 614 966 - -Capital gain on sale of non-current asset -23 355 -26 657 -45 959 -27 result from participations in associated companies -265 904 -761 434 -94 244 -27 691

pension provision -334 1 831 -

-other provision -3 272 4 602 -3 272 4 602

other non-cash flow affecting items -63 701 -17 686 -63 701 -17 686

584 848 429 912 -82 279 107 580

nOTE 31

group information

the company is a wholly-owned subsidiary to rederi AB Soya, Corp. id. no. 556297-7412 with domicile in Stockholm. Walleniusrederierna AB is a part of a group where rederi AB Soya, establishes consolidated accounts for the biggest group.

Purchases and sales within the group

of the group's total purchases and sales in Sek, 41 per cent of the purchases and 0 per cent of the sales refer to other companies within the group that the company belongs to.

of the company's total purchases and sales in Sek, 6

References

Related documents

For the parent company the interim report was prepared in accordance with RFR 2 “Accounting for legal entity” and the Swedish Annual Accounts Act. The interim

It is our opinion that the annual report was prepared in accordance with the Annual Accounts Act for Credit Insti- tutions and Securities Companies and presents a true and fair

We used a hypothesis-based approach to select certain measures that are known to be affected by MS or NMO, which are shown in Table 1. Ac- cordingly, we calculated the

Jointly issued by Fidelity Investments International, Fidelity Investment Services Limited and Financial Administration Services Limited (a Fidelity

1.1 This test method specifies a procedure for the determi- nation of the kinematic viscosity, n, of liquid petroleum products, both transparent and opaque, by measuring the time for

outside its purview.” National Park System Advisory Board Committee on the Federal Historic Rehabilitation Tax Credit Program, “Federal Historic Rehabilitation Tax Credit

As mentioned before, previous research has identified political and institutional decisions on the overall cap stringency, energy prices, temperature events and economic activity as

R – yeah, ok. Erm, the last few questions now, just mindful of time, erm, is going on to think a little bit more around mental health difficulties because, erm, schools are