Annual Report 2006 (pdf) - EuroMaint Rail

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The business in figures • Report of the Directors Read more on page 42 • Income Statements Read more on page 44 • Balance Sheets Read more on page 45 • Changes in Equity Read more on page 47 • Cash Flow Analyses Read more on page 48 • Notes Read more on page 49 • Audit Report Read more on page 64 41
E u r o M a i n t A n n u a l R e p o r t 2 0 0 6 Report of the Directors The Board of Directors and President of EuroMaint AB hereby submit the Annual Report for the 2006 financial year. EuroMaint AB is a wholly-owned subsidiary of AB Swedcarrier, with registered number 553036-3409 domiciled in Stockholm, Sweden, and is wholly-owned by the Swedish state. Continued consolidation, streamlining and internationalisation The Group’s aim is to be actively involved in the consolidation of the maintenance industry. The acquisition of Euromation AB and maintenance contracts for commuter trains in Stockholm and the Arlanda Express are some examples of operational decisions aimed at realising the Group’s aim of becoming an important player in the maintenance industry, not only in Sweden but also internationally. New maintenance concepts with total undertakings in partnershipstyle agreements, of the type used in EuroMaint Rail, are being developed for EuroMaint Industry. The aim of this strategy is to make it possible for the companies to advance up the value chain. EuroMaint wants to develop partnerships with its customers and thereby establish long-term incentive-led servicing contracts. Strategic collaborations with companies that develop different technical solutions and systems enable EuroMaint to swiftly bring new technology to its customers. We have taken crucial steps during the year to realise our ambition of becoming a player on the international market. Since 2003 EuroMaint has carried out a number of structural measures to achieve increased cost-effectiveness and has implemented an efficient financial control model. These development initiatives will continue in 2007 and create further competitive advantages for the Group. Operations A decision has been taken to start up an operation in the Baltic region and this establishment has begun. In stiff competition, EuroMaint Rail has won its first major international order, a refurbishment contract for the Norwegian State Railways, NSB. In addition to several new contracts and contract extensions among existing customers, the company has also won a number of brand new orders during the year. In June EuroMaint Rail took over responsibility for technical maintenance of the commuter trains in Stockholm. A new operator on the Swedish rail market, Arriva, awarded EuroMaint Rail the maintenance contract for the Pågatågen commuter trains. Additional orders for EuroMaint Industry’s unique Automated Guided Vehicles (AGVs) have been received both within and outside of Sweden. Alongside the established services the company is also investing in new concepts. The Total Service Concept (TSC) is an important element in the aim of strengthening market position and bringing about volume growth. The concept entails EuroMaint Industry offering a full service undertaking in maintenance, spare parts management and component servicing. Personnel In taking over maintenance of the commuter trains in Stockholm, EuroMaint increased its workforce by around 100. EuroMaint Industry has adapted its organisation partly in line with the altered product mix, and partly to create conditions for growth. The company has also begun a major recruitment process for specialist expertise. ‘Dialogue for Participation’ is the name of the long-term project initiated by EuroMaint Rail in the spring with the aim of increasing employees’ knowledge and understanding of the business plan. The dialogue will help increase personnel’s opportunities for realising the business plan. Market Demand for both consultancy and servicing in the engineering industry has increased during the year. In response to the increased and altered nature of this demand, EuroMaint Industry is now strengthening certain areas of specialist expertise such as maintenance engineering, production engineering and service engineering. The Swedish market for train maintenance is one of the most open to competition in Europe. This trend has been positively affected by deregulation and EU harmonisation, which are gradually opening the market up to service exports. Several of the contracts signed so far during the year are clear proof of major customers’ continued trust in EuroMaint’s quality and ability to deliver. EuroMaint Rail has submitted several major tenders to its customers for rolling stock refurbishment and is processing requests for tender regarding maintenance for the Öresund Rail Services. EuroMaint Industry is in dialogue with both existing and new customers with regard to extended, partnership-style collaborations in production streamlining and maintenance development. Impact on the environment At all EuroMaint Rail workshops, the main effect on the environment is to the air and water. The operation is classified as harmful to the environment and an application must be made to the environmental authorities. The environmental authorities decide whether a permit or notification is required depending on the degree of risk to the environment. If EuroMaint Rail were not to receive the environmental permits required for production, this could harm its opportunities to fulfil customer commitments. If permits were not granted there is, however, the ability to restructure activities at the workshops for a limited period to restrict the adverse financial impact. Eleven of the EuroMaint Rail workshops require official notification in accordance with the Ordinance (1998:899) concerning Environmentally Hazardous Activities and The Protection of Public Health. The relevant inspection authorities for the workshops in Luleå/Svartön and Sundsvall have judged that no notification is required. The activities carried out by EuroMaint Rail which require notification include vehicle washing, painting, deicing and handling diesel fuel. In June 2006, EuroMaint Rail took over the maintenance work at SL’s workshops in Älvsjö and Bro. Both workshops require official notification in accordance with the Ordinance concerning Environmentally Hazardous Activities and The Protection of Public Health. 42
Page 1 and 2: euromaint ANNUAL REPORT EuroMaint u
Page 3 and 4: Contents EuroMaint in brief EuroMai
Page 5 and 6: The past year • Maintenance of St
Page 7 and 8: The CEO’s comments During the pas
Page 9 and 10: EuroMaint Rail • Maintenance of S
Page 11 and 12: EuroMaint Rail During 2006, EuroMai
Page 13 and 14: EuroMaint Rail Maintenance of Stock
Page 15 and 16: EuroMaint Rail New interior for Arl
Page 17 and 18: Sweden Baltic sea Estonia Latvia Je
Page 19 and 20: EuroMaint Rail Refurbishment contra
Page 21 and 22: EuroMaint Rail Creative development
Page 23 and 24: EuroMaint Industry • Production s
Page 25 and 26: EuroMaint Industry The past year ha
Page 27 and 28: EuroMaint Industry Production strea
Page 29 and 30: EuroMaint Industry Establishment in
Page 31 and 32: EuroMaint Industry Specially adapte
Page 33 and 34: EuroMaint • The role of the Group
Page 35 and 36: EuroMaint The role of the Group man
Page 37 and 38: EuroMaint Operational development M
Page 39 and 40: EuroMaint Personnel development Eur
Page 41: Five-year summary PRO FORMA PRO FOR
Page 45 and 46: E u r o M a i n t A n n u a l R e p
Page 67 and 68: Corporate Governance Report 2006 Eu
Page 69 and 70: Board report into internal control
Page 71 and 72: The Chairman’s comments In 2006 E
Page 73 and 74: The EuroMaint Board of Directors St
Page 75 and 76: EuroMaint Rail management Back row:
Page 77 and 78: EuroMaint Group management INGELA C
Page 79: EuroMaint unites innovative thinkin

Annual Report 2006 (pdf) - EuroMaint Rail

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