Annual Report and Financial Statements 2007 - Finnlines

CHIEF EXECUTIVE OFFICER’S REVIEW
Finnlines has undergone big changes in the last year, both operationally
and in its top management. With the new majority
shareholder, the whole Board of Directors changed, save for one
member. The new Board has a strong representation of the majority
shareholder, as well as solid competence in and visions of
the shipping sector.
The handover of the President and CEO’s position took place
gradually over the spring and summer. The appointment of the
new President and CEO from within the company was a vote of
confi dence and continuity in the organisation and its operations.
During the period under review, the company completed its
ro-pax newbuilding project and its efforts to convert older vessels.
The fi nancial results for 2007 show the impact of these
projects and of the cost of bringing new vessels into operation
stagewise.
Our ro-pax concept is based on an owned fl eet. On the other
hand, our pure cargo fl eet has for a long time been entirely dependent
on time-chartered vessels. During the year under review,
the company initiated a programme to build six new ro-ro
vessels. The new vessels will have more versatile characteristics
than the existing tonnage, and thanks to their hostable car decks,
they will be better suited to transporting new cars. In approximately
three years, these vessels will replace a part of the company’s
current time-chartered fl eet; or, depending on the market,
they may be used to increase our ro-ro capacity.
One of the company’s fi nancial targets has been to maintain
a strong balance sheet structure. In addition to already realised
investments of EUR 700 million, an investment of approximately
EUR 240 million is under way into vessels and, on land, into the
new Port of Vuosaari. These investments are highly strategic in
terms of the company’s competitiveness, but naturally they will affect
our solvency in the short term.
Maritime traffi c is expected to continue growing rapidly in
northern Europe, due particularly to the growth and increased
FINNLINES 2007
transport needs of the Russian market. Russia’s importance in
terms of the group’s business will grow further, and traffi c to Russia,
both directly and via Finland, is one of the areas on which we
will focus particularly.
Finnlines’ business is built around scheduled liner services.
Effective use of Finnlines’ comprehensive liner network can provide
Finland’s export industry with a regular and reliable channel
to the central European market.
The new ro-pax vessels increased the group’s passenger capacity
considerably. All of the group’s ro-pax routes will in future
be marketed under the Finnlines brand. Our aim is to increase
our share of Baltic Sea passenger traffi c signifi cantly.
We have been carrying out some reorganisations to respond
to these new challenges. Since the beginning of 2008, the company
has also had a larger Board of Management, with representatives
from all of the main business units. We have also
initiated a development programme to increase effi ciency and
channel resources more effectively to where they are needed the
most.
Competent, committed staff forms one of Finnlines’ main
resources. I would like to thank all employees for their efforts in
the past year, and motivate them to tackle future challenges with
enthusiasm.
Many changes during the year under review were disruptive
for our customers. I would like to take this opportunity to thank all
our customers for their patience, and emphasise that I strongly
believe that the new vessel concept and organisation will bring
great opportunities for long-term development.
Helsinki, 20 February 2008
Christer Antson
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