Annual report 2014
Die Alpinisten.
Impressum BLS Cargo AG Bollwerk 27 CH-3001 Bern Fon +41 58 327 28 44 Fax +41 58 327 28 60 freight@bls.ch www.blscargo.ch Production Stefanie Burri, Head of Management Section / Communication Photographs Röbi Bösch, Markus Seeger, NZZ-Events Printing raschle & partner Atelier für Gestaltung und Kommunikation GmbH, Bern www.raschlepartner.ch
Annual report 2014
Contents
Commentatory on 2014
4
Lean organisation
8
Key figures
9
Balance sheet
10
Profit and loss account
11
Appendix to annual account
12
Auditor’s report
13
3
Commentatary on 2014
A successful 2014 BLS Cargo made a profit of 2.5 mill. Swiss francs in 2014, a vindication of the successful new direction the company has taken. The encouraging result was made possible by focussing on profitable traffic flows and enhanced added value created by cross-border locomotive utilisation.
In 2014, BLS Cargo recorded earnings before interest and tax (EBIT) of 3.9 mill. CHF (2013: 2.6 mill. CHF) on a turnover of 166.9 mill. CHF (2013: 182.2 mill. CHF), resulting in a profit of 2.5 mill. CHF (2013: 1.5 mill. CHF). BLS Cargo succeeded in almost doubling both EBIT and profit despite a significant reduction in volume. The excellent result was achieved by focussing on profitable traffic flows, strict cost management and enhanced added value resulting from innovative, cross-border locomotive utilisation concepts. Two factors in particular affected traffic performance in 2014: on the one hand, the loss of DB Schenker Rail business and, on the other, major storms in northern Italy at the end of the year. The storms led to services being curtailed and even forced Melzo terminal, which is an impor tant destination for many BLS Cargo traffic flows, to be closed temporarily. This resulted in a 23% decrease in overall traffic volume compared with 2013, down to 16 486 trains (21524 in 2013).
Looking ahead In the short term, there are a number of external factors of concern, which have a negative impact on the railways’ ability to compete. The most serious is the Swiss National Bank’s abandonment of its Swiss franc/euro minimum exchange rate policy, which has negative repercussions for BLS Cargo’s results. If BLS Cargo has to accept the exchange rate remaining close to parity over an extended period, the company will have to closely scrutinise and re-evaluate its operating expenses in particular, 4
Commentatary on 2014
as these costs (train paths, drivers, locomotives, maintenance) are incurred in Swiss francs. BLS Cargo is currently taking steps to improve its competitiveness. 2014’s results demonstrate that, over the past years, BLS Cargo has already been able to adjust successfully to a currency collapse, when the rate fell from EUR/CHF 1.50 to 1.20. However, the euro’s latest slump is much more difficult to
compensate. For this reason, BLS Cargo calls on politicians and authorities to bolster the business environment for transporting freight by rail, so that modal shift targets can be achieved. In BLS Cargo’s opinion, it is imperative that financial relief is forthcoming within the context of current discussions on the 2017 train path pricing review.
5
Commentatary on 2014
Selected events 2014
Last-mile locomotive with convincing first commercial trip
BLS Cargo wins 2014 Swiss Logistics Award
As part of the commissioning process, BLS Cargo BLS Cargo entered the competition for the presused the last-mile locomotives for the first time on tigious Swiss Logistics Award with its innovative revenue-earning services. The first trip took the “one locomotive – four countries” concept and, as locomotive into a non-electrified freight terminal winner, was able to collect the award in November. in Visp. Further journeys followed in the course Locomotive changes at the border are a thing of of the year, to terminals in Rekingen and Frenken- the past, at least for trains run by BLS Cargo & ERS dorf. Each time the locomotive was in service, it Railways. Thanks to clever planning and the use of performed convincingly, bringing BLS Cargo and modern multi-system locomotives, trains can run through from Rotterdam to Melzo in 21 hours, six the client closer together. The last-mile locomotive is one of Bombardier’s days a week. BLS Cargo is the first railway comTRAXX family of locomotives with an alternating pany to turn the vision of end-to-end international current drive, which is also equipped with an auxi rail freight into reality. With “one locomotive – four liary diesel motor enabling it to run on non-elec- countries” BLS Cargo has reduced the previous trified sections of track. In order to access the requirement for six to eight locomotives to four. “last-mile”, BLS Cargo was previously obliged to In addition, the locomotives cover a much greater buy in the service from third parties. In future, it is distance than with previous utilisation concepts, possible to dispense with a change of locomotive more than 1000 kms per locomotive each day. In and BLS Cargo can offer customers without their this way, BLS Cargo is able to achieve maximal own shunting facilities a seamless service at any efficiency of resources, which in turn has had a time using the main line locomotive. A valuable trump card, particularly for national, import and export traffic flows, and one which will make BLS Cargo more competitive. BLS Cargo has decided to lease three locomotives so that it can be flexible on cost whilst taking advantage of a fixed-term lease contract to investigate in the first instance how the locomotives can be deployed.
6
Commentatary on 2014
positive effect on the quality and reliability of the Shareholding resolved service. Mid-November in Rotterdam Waalhaven, In December, BLS AG and DB Schweiz Holding both companies celebrated the 1000th ERS train AG mutually agreed that BLS could buy back DB between Rotterdam and Melzo. Schweiz Holding shares in BLS Cargo. DB SchenIntroduction of the through service is an excellent ker Rail has held a 45% share in BLS Cargo AG example of the way in which sales/product man- via DB Schweiz Holding AG since 2002. The two agement, operational planning, traffic manage- companies agreed to keep the price confidential. ment and technology can work together in order This transaction does not affect existing operato guarantee a top-quality product. tional arrangements with DB Schenker Rail, who remains an important client and business partner of BLS Cargo. BLS Cargo runs locomotive tests In November, BLS Cargo tested two types of locomotive, with which it had previously had no In 2014, the way the two companies collaborated operating experience, the Siemens Vectron and changed and there was a large cutback in the number of services operated jointly by BLS Cargo and Alstom’s BB 437. These tests are connected with the possible acqui- DB Schenker Rail. This was the deciding factor for sition of new locomotives by BLS Cargo in order both companies to re-assess shareholding within to expand its fleet. Bombardier locomotives have BLS Cargo and ultimately led to the repurchase been in daily use on BLS Cargo services and the agreement. detailed operating experience gained means they did not require testing. In the long term, BLS Cargo BLS Cargo AG was created in 2001 to manage freight operations within the BLS group. Since needs to replace its ageing Re 425 fleet. then, the company has continued to grow, gaining market share and recording positive financial results. The repurchasing of shares is a sign of BLS’s commitment to international rail freight.
7
Lean organisation
Lean organisation as of 01. 01. 2015
BD
CEO Management / Communications
Product Management / Sales
Production / Procurement
Shareholders BLS AG IMT AG (Ambrogio-Gruppe)
Finance
Shareholdings 97 % 3 %
BLS Cargo Italia S.r.l BLS Cargo Deutschland GmbH
100 % 100 %
Board of Directors
Management
from left to right:
from left to right:
»» Bernard Guillelmon (CH, F), President Chairman of the Board of BLS AG »» Livio Ambrogio (I), Vice Precident CEO Ambrogio Trasporti Spa »» Reto Baumgartner (CH) Head of Finance BLS AG »» Josef Küttel (CH) Board Member ERMEWA HOLDING »» Andreas Hubertus Goer (D, CH) Entrepreneur
»» Dr. Dirk Stahl, CEO Member of Management BLS AG »» Dr. Dirk Pfister, Deputy CEO Head of Product Management/Sales »» Markus Zgraggen Head of Production/Procurement »» Marco Guntern Head of Finance »» Stefanie Burri Head of Management Section/Communication
8
Key figures 2014
Key figures at a glance No. of trains 2005 – 2015
30000
No. of Trains
7% 2%
5%
25000
-19%
No. of Trains excluding lost DBSR-Business
4%
6%
- 9%
2%
20000 -23%
14%
- 33%
15000
10000
5000
0 2005
2006
2007
2008
2009
2010
2011
2012
2013
2013
2014
2014
The discontinuation of DB Schenker Rail business affected volumes in 2014. Leaving DBSR traffic to one side, traffic increased by 14% compared with the previous year.
Market share in transalpine transport (percentages, based on gross tonnes)
80
Lötschberg-Simplon Gotthard Transit
66
60
60
58
63
62
59
56
43
43
41
40 28
28
43 39
39 31
29
27 23
23
20
7
0 2008
2009
2010
2011
2012
2013
2014
Employees
Total no. of employees:
2013
2014
% Change
123
114
- 7 %
BLS Cargo AG, Bern
79
75
- 5 %
BLS Cargo Italia
18
18
0 %
BLS Cargo Deutschland Service centres (Chiasso, Bern)
8
7
- 13 %
18
14
- 22 %
In addition, BLS Cargo buys in services such as drivers and workshop facilities from BLS AG.
9
Balance sheet 2014
Balance sheet Balance sheet 2014 Assets Liquid assets
31.12. 2014 in kCHF
31.12. 2013 in kCHF
31 956
22 424
14 682
13 146
9 947
13 849
803
756
Accounts receivable for supplies and services vis-à-vis third parties vis-à-vis associates Other outstanding debits vis-à-vis third parties
0
83
869
2 265
Total current assets
58 257
52 522
Fixed assets
96 625
103 804
Shares
159
159
Loans affiliated companies
120
123
0
2
vis-à-vis associates Accrued income
Financial assets
Other financial assets Total investments Total assets
Liabilities Short-term financial liabilities
96 904
104 087
155 161
156 609
31.12. 2014 in kCHF
31.12. 2013 in kCHF
6 000
0
Accounts payable for supplies and services vis-à-vis third parties vis-à-vis associates
8 722
12 655
13 872
14 824
2150
2 364
Other short-term liabilities vis-à-vis third parties vis-à-vis associates Deferred income Short-term reserves Total short-term borrowed capital
49
41
16 709
17 241
340
1 077
47 842
48 201
4 000
10 000
Long-term reserves
10 365
7 991
Total long-term borrowed capital
14 365
17 991
Total borrowed capital
62 207
66 192
Share capital
60 000
60 000
Long-term financial liabilities
Statutory reserves
2 563
2 563
Voluntary reserves
34 800
34 800
– 6 946
– 8 437
Net profit/loss: Brought forward Profit/loss for the financial year Total equity Total liabilities
10
2538
1 491
92 954
90 417
155 161
156 609
Balance sheet 2014
Profit and loss account Profit and loss account 2014
Revenue from supplies and services
31.12. 2014 in kCHF
31.12. 2013 in kCHF
149 480
167 086
Other operating income
17 415
15 185
Total operating income
166 895
182 271
Personnel costs
–10 423
–10 506
Costs for use of infrastructure
– 34 944
– 49 825
Third-party services
– 48 604
– 47 280
Production costs
– 32 711
– 40 352
Other operating costs
– 28 727
– 23 493
–155 409
–171 455
Operating profit before interest + depreciation (EBITDA)
11 486
10 816
Depreciation
– 7 533
– 8 167
3 953
2 649
Total operating costs
Operating profit before interest + tax (EBIT)
189
68
–115
– 726
73
– 658
0
610
242
417
–1 596
– 1 395
2 673
1 623
Taxes
–135
– 132
Profit/loss for the financial year
2 538
1 491
Financial income Financial expenditure Financial result Profit on asset disposal Extraordinary income Extraordinary expenditure Operating profit before tax (EBT)
11
Appendix to annual account 2014
Appendix to annual account as per 31st December 2014
Fire insurance for fixed assets All fixed assets are comprehensively insured agains third-party damage plus damage to property and machines. Insurance covers all companies within the BLS group. The amount of cover is fixed at maximum 100 mill. CHF per incident, no matter what the cause of damage is (third-party, interruption of services, accident, etc.). Also included in this are claims arising from fire damage. Rolling stock is indemnified based on its current value (cost of buying new less depreciation to date). In the absence of any insurable values for fire damage in the policy, the cost of replacement is shown below and can act as a reference for new acquisitions for the relevant asset group.
31.12. 2014 in kCHF
31.12. 2013 in kCHF
181 227
181 227
percentage
31.12. 2014 in kCHF
31.12. 2013 in kCHF
Locomotives incl. spare parts Shareholdings
97,0%
58 200
31 200
DB Schweiz Holding AG
0,0%
0
27 000
IMT AG
3,0%
BLS AG
Share capital
1 800
1 800
60 000
60 000
Joint liability Joint liablity arising from group taxation of VAT
p.m.
Explanation of financial expenditure Exchange rate differences totalling CHF 103 000 are included in the results. Shareholding in subsidiary companies
nominal share capital in euros
percentage
BLS Cargo Italia S.r.l.
50 000
100%
BLS Cargo Deutschland GmbH
50 000
100%
Assessment of risk by the board of directors At its meeting on 10. 06. 2014 the Board discussed the company’s risk profile and agreed appropriate measures to deal with significant risks.
12
p.m.
Auditor‘s report
Auditor´s report
13
Auditor‘s report
14