Annual Report 2006 (pdf) - EuroMaint Rail

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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 Note 11 Participations in Group companies No. of Percentage of Book value Book value Company name, SEK thousands Reg. no. Domicile participations equity and votes 2006-12-31 2005-12-31 EuroMaint AB 556084-8458 Stockholm – EuroMaint Rail AB 556032-2918 Stockholm 190,000 100 156,761 156,761 – EuroMaint Bemanning AB 556670-3095 Stockholm 1,000 100 – – – Underhållsbolaget Pendeln AB 556673-4363 Stockholm 1,000 100 – – – EuroMaint Industry AB* 556232-0134 Stockholm 100,000 100 96,197 – – EuroMaint GmbH HRB 103498 B Berlin 1 100 233 – – EuroMaint SIA – Riga 15,000 100 195 – TOTAL 253,386 156,761 *EuroMaint Industry AB was owned by EuroMaint Rail AB on 31 December 2005 and sold to EuroMaint AB in January 2006. Note 12 Long-term receivables SEK thousands Group Parent company 2006-12-31 2005-12-31 2006-12-31 2005-12-31 Pensions in accordance with IAS 19 21,086 23,183 0 0 Miscellaneous 129 129 129 129 Total 21,215 23,313 129 129 Note 13 Pension obligations In accordance with IAS 19, Employee Benefits, an actuary working on behalf of EuroMaint has calculated the Group’s pension provision and the amounts to be allocated for pensions for Group employees on an ongoing basis. Pension plans in EuroMaint comprise both defined benefit and premium-based plans. Premium-based pension promises comprise what are known as Alternative ITP plans, individual pension promises for senior personnel, as well as PA-03. Defined benefit pension obligations ITP and ITP-S pensions ITP and ITP-S are defined benefit pension plans containing retirement, family and disability/sickness pension. On full entitlement the employee receives a final retirement pension including a general pension of approximately 65% of the leaving salary. Salaried employees with ITP are insured with Alecta, while employees with ITP-S are insured with Skandia. According to a statement from the Swedish Financial Accounting Standards Council’s Emerging Issues Task Force, the ITP pension secured through an insurance policy with Alecta is a defined benefit plan encompassing several employers. The EuroMaint Group has not had access to such information for the 2006 financial year that would make it possible to enter this plan as a defined benefit plan, which is why it has been entered as a defined contribution plan. Pension in accordance with transition rules and occupational injury annuities Employees previously covered by the state pension plan PA-91, former employees of the SJ Group, have the opportunity to choose early retirement in accordance with the transitional rules. Pension is paid from 60 years at the earliest and the pension level depends on the salary and length of service. Occupational injury annuities are paid on a continuous basis until the death of the employee. EuroMaint has been responsible for costs for this life annuity since the beginning of 2001, before which the obligation was the responsibility of the Swedish State Railways public enterprise. KPA pension Defined benefit pensions and life annuities in accordance with state pension rules for former employees which were earned prior to 1992 have been redeemed in life assurance company KPA. A premium of SEK 125 million was paid for this in 1999. The National Government Employee Pensions Board is responsible for calculating benefits and also administering the paying-out of pensions whereby funds are continuously withdrawn from the insurance. The insurance terms specify how the cost is settled if pensions paid deviate from the benefit amount that formed the basis for the redeemed premium in 1999. This type of cost adjustment is usually handled by withdrawing funds from the surplus the Group has with KPA. The following defined benefit plans are recognised in the balance sheet: Pension provision/receivable (-/+) in balance sheet Plan 06-12-31 05-12-31 ITP-S pension plan insured with Skandia 10,094 12,800 Early retirement in accordance with transition rules, non-funded -24,306 -23,191 ITP in FPG/PRI, non-funded -5,522 -1,730 Occupational injury annuities, non-funded -12,226 -13,527 Redeemed pension obligations in KPA 10,992 10,383 -20,968 -15,265 59
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 Notes Note 13 Pension obligations Contd. Specification of posted net provision in balance sheet Group, SEK thousands 2006-12-31 2005-12-31 Present value of funded obligations -257,474 -245,313 Fair value of plan assets 263,389 248,024 Receivable 5,915 2,711 Present value of non-funded obligations -42,321 -39,590 Non-reported actuarial gain/loss (-/+) 15,438 21,614 Pension provision to report in balance sheet -20,968 -15,265 Reconciliation of change in plan assets Group, SEK thousands 2006 2005 Fair value of plan assets at beginning of year 248,024 242,038 Expected return during the year 9,937 9,626 Premiums paid 10,464 9,466 Remuneration paid -10,507 -12,531 Actuarial gains during the year 5,471 -575 Fair,value of plan assets at year-end 263,389 248,024 Plan assets are invested in pension insurance policies with Skandia or KPA. The insurances contain a mixture of shares and bonds. On 31 December 2006, 65% was invested in bonds and 35% in shares. The return in 2006 amounted to 6.0% on average (SEK 15,400,000). Specification of posted net provision in balance sheet Group, SEK thousands 2006 2005 Net provision at beginning of year -15,265 -15,963 Net cost for defined benefit pensions in 2006 -16,138 -10,183 Cost for pensions earned in an earlier period -4,818 – Remuneration paid 15,297 13,735 Premiums 10,463 11,572 Reimbursement -10,507 -14,426 Net provision at year-end -20,968 -15,265 Actuarial gains and losses Group, SEK thousands 2006 2005 Actuarial loss at beginning of year not amortised -20,471 0 Actuarial loss subject to amortisation during the average remaining period of service. -3,363 0 Average remaining period of service 14 14 Amortisation of actuarial loss during the year 169 0 Actuarial loss on present value of obligations which arose during the year -606 -19,896 Actuarial gain on plan assets which arose during the year 5,471 -575 Actuarial loss at year-end not amortised -15,437 -20,471 Cost for defined benefit pensions Group, SEK thousands 2006 2005 Cost for earned benefits -15,147 -10,862 Interest expense -10,759 -8,947 Expected return on plan assets 9,937 9,626 Amortisation of actuarial losses -169 0 Cost for pensions earned in an earlier period -4,818 0 Cost for defined benefit pensions -20,956 -10,183 Calculation assumptions Group, SEK thousands 31 Dec 2006 31 Dec 2005 Discount rate, % 3.80 3.80 Return on plan assets, % 4.00 4.00 Expected pay increase, % 2.50 2.50 Calculation of maturing pensions, % 1.80 1.80 Personnel turnover, % 3.00 3.00 Calculation of income base amounts, % 2.80 2.80 Expected average remaining period of service for employees, years 14 14 The discount rate is based on market expectations on the balance sheet date of bonds with the same term as the Group’s pension commitments. This has been based on an interest rate curve estimated according to Swedish state real interest rate bonds. The expected return on plan assets is based on the portfolio allocation reported by the insurance companies. Long-term inflation measurements are based on market expectations which can be discerned between real and nominal bonds. Note 14 Deferred tax assets Group, SEK thousands 31 Dec 2006 31 Dec 2005 Deferred tax for tax deficit 0 9,823 Deferred tax on temporary differences 11,719 11,724 Total 11,719 21,548 Deferred tax assets are based on non-revokable pensions and non tax-deductible reserves. Note 15 Inventories Group, SEK thousands 2006-01-01 2005-01-01 2006-12-31 2005-12-31 Gross stock 366,157 347,739 Obsolescence reserve -97,387 -88,396 Net stock 268,770 259,343 Distributed as follows Replacement items 67,970 51,293 Spare parts 141,864 138,491 Miscellaneous 58,936 69,559 Total 268,770 259,343 All companies use an obsolescence scale in line with their particular circumstances. 60
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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 and 42: Five-year summary PRO FORMA PRO FOR
Page 43 and 44: E u r o M a i n t A n n u a l R e p
Page 59: 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
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Annual Report 2006 (pdf) - EuroMaint Rail

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