AnnuAl report 2008 - Hurtigruten

Annual report 2008

HIGHLIGHTS 2008
contents
yy The Black Belt improvement programme
yields operational gains and increased
revenues
yy Divestment of activities contributes to
reduced debt and a more focused business
yy A new programme to cut costs by NOK 150
million, with full effect from 2010
yy Successful negotiations with the Ministry of
Transport and Communications yield an
amended public procurement contract for
the Hurtigruten service
yy Financial restructuring put in place, with new
equity and revised credit agreements
yy The restructuring yields one-off effects which
affect the accounts for 2008
4 Hurtigruten ASA in brief
6 Chief executive
8 Business areas
10 Hurtigruten Norwegian coast
16 Hurtigruten explorer products
20 Human resources
22 Health, safety and the environment
26 Social responsibility
28 Corporate governance
33 Share and shareholders
36 Presentation of the board
38 Presentation of the management
43 Directors’ report
55 Annual accounts and notes
119 Declaration from the board and
chief executive
120 Auditor’s report
121 Statement from the corporate
assembly
122 Fleet list
123 Addresses
financial calendar
23 Apr 2009: Annual general meeting
14 May 2009: First quarter 2009
20 Aug 2009: Second quarter 2009
18 Nov 2009: Third quarter 2009

4 hurtigruten in Brief
Hurtigruten
in brief
Hurtigruten ASA pursues travel and transport activities in Norway and
abroad. From 2009, its core business comprises the Hurtigruten shipping
service along the Norwegian coast and explorer products. In 2008, the
company initiated the divestment of activities which do not form part of
this core business. The ferries and fast ferry business has thereby been
sold, along with the hotels in Bergen and the travel agencies. Preparations
are also being made to dispose of other units outside the Hurtigruten
and explorer cruise business.
As a smaller and more focused company,
Hurtigruten has resolved to alter its organisational
structure and relinquished the
former group model with three business
areas from 1 January 2009. The corporate
management has been replaced by a
company management team organised to
a greater extent than before along functional
lines, and only one business area
remains – Hurtigruten Norwegian coast
and explorer products.
Hurtigruten
Dating right back to 1893, the Hurtigruten
service ranks today as a recognised international
cruise experience and an important
part of the infrastructure for a number
of communities along the Norwegian
coast. Hurtigruten had operating revenues
of NOK 2 139 million in 2008, representing
85 per cent of the company’s total
revenues after public transport was classified
as discontinued business.
The business area has a fleet of 13 vessels,
of which 11 sail daily in the licensed
Hurtigruten service. This calls at 34 ports
between Bergen and Kirkenes.
Explorer products
Hurtigruten has expanded its cruise business
in recent years to areas beyond the
Norwegian coast. The company operates
two vessels as well as hotels and special
tourist products in Svalbard through Spitsbergen
Travel AS. Ships dedicated to Svalbard
will increase to three from the 2009
season. Explorer cruises are also offered
to the Antarctic and around Greenland.
Operating revenues from this part of the
business totalled NOK 443 million in 2008.
Explorer products disposes of four
ships in all, including two on charter.
Other activities
Public transport
This business has embraced ferries and
fast ferries as well as buses. The ferry business
in Troms and Nordland as well as the
fast ferry operations in Nordland were sold
to Torghatten Nord AS with effect from 5
January 2009. Hurtigruten will continue to
operate five fast ferries on four services in
Troms until the contract with Troms county
council expires on 31 December 2009.
Hurtigruten has a 71.3 per cent holding
in AS TIRB, which owns Cominor AS, the
largest bus company in northern Norway.
Embracing 300 buses and more than 600
employees, this business is held-for-sale.
Other business
Hurtigruten owns 50 per cent of Nor Lines
AS, which operates 13 freighters on six
routes along the Norwegian coast, between
Norway and Denmark, Sweden, Poland and
Germany. In accordance with the compa-
Hurtigruten asa 2008

hurtigruten in Brief
5
Key figures
Income statement 2008 2007
Operating revenues* NOK mill 2 551 2 430
Operating profit before depreciation (EBITDA)* NOK mill 237 258
EBITDA-margin* % 9.3 10.6
Profit/(loss) for the year NOK mill (457) (174)
Cash flow 2008 2007
Cash flows from operating activities NOK mill 94 225
Cash flows from investing activities NOK mill (156) (482)
Cash flows from financing activities NOK mill (402) 425
Balance sheet 2008 2007
Interest-bearing debt NOK mill 3 420* 4 582
Equity ratio % 16.8 23.0
Hurtigruten ASA
Employees 2008 2007
Total work-years 3 039 3 017
HR NORWEGIAN COAST
HR Explorer PRODUCTS
Other business
HSE 2008 2007
Sickness absence* % 6.45 6.05
* Continued business
ny’s strategy to concentrate its business,
these shares are planned to be sold.
In addition, Hurtigruten owns a limited
portfolio of properties which primarily
relate to its operations.
Vision, values and customer
promises
Vision
Real experiences in unique waters.
Brand essence
Exceptionally real! Real experiences are
part of our nature. They will characterise
all our operations. Everything we do will
be genuine and perceived to be so – not
manufactured, not fake, but authentic
and true to the core, based on north
Norwegian tradition and culture.
Cultural values
Security. Safety is always a top priority
for us. We are responsible for people,
culture and the environment. Proud
Norwegian seafaring skills and local roots
keep our customers secure under tough
conditions. This will also be reflected in
our workplace – confidence in each other
through openness, courtesy and respect.
Security fosters courage – courage
fosters drive and motivation. Security,
responsibility and thought for others will
influence everything we do.
Entrepreneurial spirit. By entrepreneurial
spirit, we mean that the financial aspect
of everything we do forms a natural part
of our thinking about the activities we
pursue on land and at sea. Customers
will be offered commercial products at all
their natural points of contact with us.
Honesty. To be able to provide real
experiences, we must be honest with our
guests and fellow workers. We will not dress
up the experiences, simply strengthen
them. We will base all the experiences we
offer on local culture, whether they be food,
entertainment or service.
Enthusiasm. To create unforgettable
experiences, we must be enthusiastic about
what we do, we must radiate commitment
and drive. We accordingly do our utmost to
create pleasure and enthusiasm among our
guests and fellow workers.
Environmental responsibility. As a
shipping company, we operate in
some of the world’s most vulnerable
areas. We accordingly have a
particular responsibility to consider the
environment in everything we do.
Customer promises
Real experiences in spectacular scenery.
As close to nature as you can get. We
give you real and impressive scenic
experiences, whether you are working or
just there to enjoy. Either way, we bring
you fantastic scenery which you can only
experience on our vessels.
Closeness to local culture. We are part
of northern Norway's culture and have
given people for more than a century the
opportunity to cultivate and experience
the distinctive features and pride of local
communities. With us, you are part of the
culture and daily life of this proud society.
Security in tough conditions. Sailing in
unique waters in all kinds of weather
calls for knowledge and expertise. Based
on Norwegian seafaring skills, our long
traditions ensure that travelling with us
is always secure. Our guests will never
feel anything but safe, even under tough
conditions.
Hurtigruten asa 2008

6 Chief executive
Chief executive:
A slimmer, more focused company
Our accounts convey their clear message. The results for 2008 top
a number of years of substantial losses, and that cannot continue.
To reverse the trend, we had to take drastic but very necessary
measures in 2008. Our continued existence was at stake. In early
2009, we can say that important goals have been met, and that we
now appear as a stronger, slimmer and more focused company.
Our primary focus and most powerful driving force remain the
improvement efforts we are pursuing to achieve profitability.
High debt and low capacity
utilisation
The background for the negative trend
is that heavy spending on new ships has
failed to generate the necessary rise in revenues
because the capacity has not been
utilised. There have been too few passengers.
Since 2000 alone, NOK 3 billion have
been invested in four new vessels – and
this spending was largely financed by borrowing.
A bigger debt burden was supplemented
by higher interest rates. At the
same time, high oil prices contributed to a
sharp rise in bunker costs. These rose by
NOK 65 million from 2007 to 2008 for the
Hurtigruten vessels alone.
Negative results and weakened capital
adequacy have compelled us to make
important acknowledgements. Although
improvement efforts had begun at the
start of 2008, we saw that new and more
powerful tools were needed. We developed
a restructuring plan which was presented
to our annual general meeting on
15 May 2008. This four-point programme
was later expanded to five. The new board
has given a high priority to continuing
this work, and our employees are making
a positive contribution to reaching our
goals.
A purposeful restructuring
plan
Both individually and collectively, the programmes
embraced by the restructuring
plan are crucial to our success. Their order
is not arbitrary, and we are pleased to
have passed crucial stages in the schedule.
We have communicated clearly what
is required to reverse our negative trend.
We have given weight to showing responsibility
and openness about our position
and the measures we have defined as necessary
for achieving improvements. Much
of this is our responsibility to deal with,
but it was also important on certain points
to change official frame conditions.
Perhaps our most important acknowledgement
has been of the need to create
a slimmer and more focused company. We
could no longer make such a broad and
diverse commitment. The combination
of large debts and inadequate revenues
imposed a restructuring. We accordingly
implemented a process of selling activities
which are not part of our core business. In
this way, we will reduce our debt burden
and strengthen our focus. We will concentrate
the business and our resources
on the Hurtigruten service along the Norwegian
coast and explorer cruises in Polar
waters. This is where we have the best
prospects for success. We have accordingly
sold the ferries and fast ferry business,
the hotels in Bergen and the travel
agencies. The other activities outside our
core business, such as the bus operation,
will be divested when we achieve what we
regard as an acceptable price.
Unable to subsidise maritime
transport services
Negotiating an amended public procurement
contract for the Hurtigruten service
was crucial. We were unable to meet the
commitment to operate 11 ships in serving
34 ports along the coast. Remuneration
from the government from far from sufficient
to meet costs, and the position was
further worsened by high bunker prices
and the introduction of the nitrogen oxide
tax. We could not justify to our shareholders
the maintenance of a contract which
meant that we had to subsidise the government’s
purchase of maritime transport
services between Bergen and Kirkenes.
The public procurement contract
contains an adjustment clause, and we
requested talks with the government on
that basis. We warned that vessels would
have to be mothballed, with a number
of employees laid off. Such measures
would unfortunately have been unavoidable
unless we could improve the terms of
the public procurement contract. It would
have been irresponsible of us if we failed
to act to reduce capacity and costs.
I am pleased with the sympathy and
support we have received from Norway’s
coastal population and from leading local
politicians. Great understanding has been
shown for our efforts to improve the public
procurement contract. This attitude
also characterised the crucial phase in
negotiations with the Ministry of Transport
and Communications, and the terms of
the amended contract are acceptable for
us and positive for the many coastal communities
we will be serving. The criteria for
a new competitive tender for the Bergen-
Kirkenes service are due to be prepared
during the first half of 2009. No decision
has yet been taken on when bids will be
invited, but we have the expertise and
the specially built high-quality ships which
make us well prepared to continue the
coastal service subject to commercially
interesting frame conditions. We also own
the Hurtigruten brand.
Boosting revenues and cutting
costs
Ahead of and in parallel with the negotiations
on amending the public procurement
contract, it was crucial that we also
worked actively on other restructuring
measures. These include the Black Belt
programme, which aims to boost revenues.
We are particularly concerned in
this context to improve occupancy on the
Hurtigruten asa 2008

Chief executive
7
«Our aim is to create
a forward-looking travel
company with the focus
on safe and efficient
operation.»
Hurtigruten vessels outside the summer
months. We see that this work is having an
effect, and are inspired to further efforts
when we note that the number of roundtrip
passengers on the Hurtigruten service
rose by 60 per cent from the fourth quarter
of 2007 to the same period of 2008.
We must not only improve revenues
but also cut costs significantly. So a separate
programme has been developed to
help reduce annual expenses by NOK 150
million, with full effect from 2010. Much of
the work here involves establishing routines
and systems which allow our organisation
to work in a unified manner. We are
well under way, and I am particularly concerned
to ensure that we secure a considerably
more efficient organisation through
this programme – with less administration
and more modern and less costly sales
channels. As part of this work, we have initiated
a necessary downsizing. Our workforce
on land is due to be halved from 400
to 200 by the end of 2009, with the reduction
split between 80 in Norway and 120 in
other countries.
A strengthened financial
platform
To achieve a financial restructuring, it was
essential that we acquired the funding and
time needed to implement the improvement
process. After extensive negotiations
with our bankers and other creditors,
we secured new loan terms which include
repayment holidays and additional liquidity.
This also created the conditions for
raising just over NOK 313 million in extra
share capital. That was clarified when our
shareholders voted at an extraordinary
general meeting on 20 February 2009 for a
private placement with our largest owners.
Shares totalling roughly NOK 78 million
have also been subscribed in subsequent
issues aimed at shareholders, employees
and bondholders who were not invited to
participate in the private placement. That
put the finishing touches to the work of
giving us a new and more robust financial
platform. Our most important job now is
to keep our promise to lenders and shareholders
– namely, creating the basis for a
positive development in value by implementing
our current improvement programmes.
Challenges remain, but
each victory is a powerful
motivation
Major challenges await all of us who work
in and for Hurtigruten. Our aim is to create
a forward-looking travel company with
the focus on safe and efficient operation.
We know that the market is demanding,
and that the international financial crisis
creates uncertainty. But we also know that
Hurtigruten is a unique product.
When we go to work, it is to give people
the opportunity of living where they
want and to allow others to enjoy magnificent
scenery and real culture. Our guests
must feel at home in both Arctic and Ant-
arctic, and we will be there just as much
for locals as for tourists.
We quite simply go to work to create
real experiences in unique waters.
Within our organisation, I have occasionally
used a metaphor from the world
of sport to describe our current process.
We are now in the qualifying rounds, and
each game is crucial for our future fate. We
must win to get to the final. That depends
on a maximum commitment at every level,
and we must make each other good by
playing together. Then we will, and each
victory is a powerful motivation after a
difficult time. I look forward to leading a
slimmer and more focused team into a
new upturn.
Olav Fjell
Chief executive officer
Hurtigruten asa 2008

8 Operations 2008
operations 2008:
Real experiences
in unique waters
Hurtigruten Norwegian coast
and explorer products
Hurtigruten ASA implemented an extensive improvement programme
during 2008, and made substantial organisational changes. As part of
this process, it was resolved that the company would concentrate its
operations from 1 January 2009 in a single business area – Hurtigruten
Norwegian coast and explorer products. The vision for this business is
real experiences in unique waters.
With daily calls at 34 ports between Bergen and Kirkenes, the
Hurtigruten service is vitally important as a carrier of passengers and
freight to and from many local communities. It has also built up a position
which makes this voyage along the Norwegian coast a world-class cruise
experience.
The company has ships and expertise which make it particularly qualified
to operate in Polar waters. Svalbard, Greenland and the Antarctic
represent exciting destinations for its explorer products.
Hurtigruten asa 2008

Operations 2008
9
Hurtigruten asa 2008

10 hurtigruten – norwegian coast
Hurtigruten
norwegian
coast
Highlights
of 2008
yy Round trips increased by five
per cent, substantial growth in
first and fourth quarters
yy Increased revenues from
onboard spending
yy Breakthrough for improved
terms in the public
procurement contract
yy Sharp increase in bunker costs
Hurtigruten has a long history, dating originally right back to 1893.
From the start, it has been a faithful servant of Norway’s coastal
population and a number of local communities. Tourists have long
been fascinated by the unique coastal landscape along which Hurtigruten
operates, and not least by the opportunity to visit so many
communities – large and small – on one and the same voyage.
World-class cruise – spearhead
for Norwegian tourism
Hurtigruten is acclaimed as the world’s most
beautiful sea voyage, and has won many
international prizes as a cruise operator:
yy
World’s best sea voyage, Lonely
Planet Blue List 2006
yy Best specialist cruise company,
Travel Weekly Globe Awards 2007, UK
yy
Best niche cruise, British Travel
Awards, 2008 and 2009
After a substantial investment programme,
its fleet consists today of safe
and modern vessels with high standards
of comfort. A total of 423 880 passengers
were carried by Hurtigruten in 2008. Many
of these people represent an important
source of income for the rest of Norway’s
tourist industry through such elements as
visits to various destinations, hotel stays
and the purchase of various goods and
services.
Passengers fall into two principal categories:
round trip and distance. The
former take either half a round trip, which
lasts six or five days respectively for Bergen-Kirkenes
or Kirkenes-Bergen, or a
whole round trip lasting 11 days from Bergen
to Kirkenes and back. A distance voyage
is made over part of this route.
The modern Hurtigruten vessels offer
substantial capacity, and occupancy is best
in the three summer months of June, July
and August. Work on developing new offers
and products has been stepped up sharply.
So has the sales and marketing commitment.
The goal is to increase the number
of passengers in the “shoulder” months of
Hurtigruten asa 2008

hurtigruten – Nowegian coast
11
Key figures for hurtigruten norwegian coast
Amounts in NOK 1 000 2008 2007
Operating revenues 2 139 434 1 933 462
Operating expenses 1 776 717 1 659 935
Operating profit before depreciation (EBITDA) 362 796 296 256
Depreciation and impairment 357 880 281 028
Operating profit/(loss) (EBIT) 4 916 15 228
NUMBER OF GUEST NIGHTS
Guest nights, round trip
Guest nights, port to port passengers
1 200 000
1 000 000
800 000
600 000
400 000
200 000
0
2007
2008
NUMBER OF PASSENGERS
Round-trip passengers
Port to port passengers
500 000
400 000
300 000
200 000
100 000
0
2007
2008
OCCUPANCY BY MONTH 2008
0
20% 40% 60% 80% 100%
January
February
March
April
May
June
July
August
September
October
November
December
March, April, May and September as well
as in the winter season. One approach
involves offering experiences and activities
over selected shorter distances in order
to meet the needs of people who want a
unique product for two-four days.
Hurtigruten has sales offices in Norway
as well as its own sales and distribution
companies in Germany, France, the UK,
the USA and Sweden.
Owning such companies is partly
intended to ensure broad distribution of
the company’s tourism products, with a
particular focus on the Hurtigruten service
and other cruise activities. Almost 200
people are employed at the sales offices
outside Norway. As part of the current
improvement programme, Hurtigruten
will retain its representation in important
markets but reduce the number of offices.
That includes centralising activities in the
Nordic region, with the Oslo, Bergen,
Bodø and Karlstad offices due to close
during 2009. The number of call centres
will also be reduced from eight to two global
units.
In addition to direct marketing nationally
and internationally via the agency network,
a number of Norwegian and foreign
tour operators have included Hurtigruten
in their programmes. Its customer can also
book tickets via the internet, and continuous
efforts are being devoted to developing
Hurtigruten’s web-based marketing
and sales even further. This work resulted
in a new website in 2008 which is more
market-oriented and user-friendly. A better
online booking solution for both travel
agencies and direct customers will also be
launched.
The overall fleet in the business area
consisted at 31 December of 13 vessels,
including 11 which provide daily sailings
in Hurtigruten’s licensed service. While all
the ships are roughly the same in terms of
functionality, variations in colours, materials,
design and age nevertheless make
each of them distinctive. They have comfortable
lounges with fine views, and most
provide good conference facilities. The
vessels also offer various types of cabins
and suites, all to a high standard, as well
as cafes, bars and souvenir shops.
Hurtigruten’s operating revenues came
to NOK 2 139 million in 2008, up by 10.6
per cent from the year before. After the
public transport business area was classified
as discontinued business, Hurtigruten
provides 85 per cent of the company’s
annual operating revenues.
A unique voyage along a
magnificent coast
Hurtigruten conducts regular surveys of
passenger satisfaction, and the responses
are outstanding. A customer satisfaction
of well over 90 per cent creates both
a commitment and an inspiration for
employees.
Hurtigruten focuses on the following
market segments:
yy
yy
yy
yy
holidays and leisure: tourists from
Norway and abroad
courses and conferences: directed at
the business market, the public sector
and associations in Norway
distance traffic: primarily embraces
private individuals requiring transport
along the Norwegian coast
freight: primarily meets the need for
cargo transport along the Norwegian
coast.
Continuing to develop its distinctive
character is important for Hurtigruten
in order to differentiate its product from
those offered by competitors. Experience
of nature, close contact with Norway’s
coastal culture and ordinary life, and
unique travel experiences are important
Hurtigruten asa 2008

12 hurtigruten – NORWEGIAN COAST
«Hurtigruten is used by the locals along the coast, which
brings tourists more easily into contact with the people
who live in the places they visit.»
key words.
Hurtigruten has employees who know
the Norwegian coast, both on the ships
and in support functions ashore. Good
Norwegian seafaring skills combined with
experienced and service-minded personnel
in the hotel and restaurant departments
on the ships ensure extra quality for
travellers.
The Hurtigruten ships are specially
designed to work along the Norwegian
coast. They can call at ports and pass
through waters closed to other cruise vessels,
and also offer greater variety than
traditional cruise liners because they are
used by locals. That brings tourists more
easily into contact with the people who
live in the places they visit.
In the holiday and leisure segment,
Hurtigruten faces competition from other
Arctic destinations for tourists both in
Norway and abroad, such as Svalbard, Iceland,
Sweden, Finland, Russia and Alaska.
The cruise lines are its main competitor for
people who chose a holiday based on sea
travel. Foreign cruise operators have substantially
increased their activities along
the Norwegian coast in recent summers.
In 2008, one of them also introduced a
cruise in the winter season with the same
Northern Lights theme offered by Hurtigruten.
The company has just over 25 per
cent of the cruise market along the Norwegian
coast.
Competition in the meeting and experience
segment comes primarily from the
Norwegian market. All the Hurtigruten
vessels have the capacity to accommodate
meetings, and the newer ones also
offer conference facilities. This product
is directed mainly at the national market,
principally in competition with hotels
and international ferry operators. Hotels
are also partners, since a number of customers
opt for a combination of courses/
meetings on land with an experience on
Hurtigruten. A slight growth has been
experienced in course and conference
traffic.
In the distance traffic segment, Hurtigruten
faces competition from other
modes of transport which carry passengers
along the coast between Bergen and
Kirkenes. Its response is to offer a high
level of comfort, special offers directed
at distance passengers – such as free car
transport in the low season – onboard
entertainment, theme journeys, art exhibitions
and pre-Christmas parties.
Competition in the freight segment
comes from alternative operators, primarily
road hauliers and other cargo vessels
plying along the coast.
Public procurement contract
Hurtigruten and the Norwegian government
concluded a contract in December
2004 concerning the public procurement
of maritime transport services on
the Bergen-Kirkenes route for 2005-12.
This agreement covers activities related to
the Hurtigruten service, and commits the
company to serving the ports included in
the schedule with daily calls throughout
the year. The government also buys space
for freight north of Tromsø. A condition is
that the 11 vessels covered by the contract
must each be certified to carry at least 400
passengers, have berth capacity in cabins
for 150 people and the capacity to carry at
least 150 Europallets of freight. The government
was due to pay NOK 284 million
in 2008 for services under the public
procurement contract. However, the contract
contains an adjustment clause which
permits renegotiation should the business
be burdened by taxes or expenses
which could not be foreseen when the
agreement was concluded. Hurtigruten
requested renegotiations on that basis.
The Ministry of Transport and Communications
reached agreement with the
company on 27 October 2008 concerning
new and higher payment for public procurement
of maritime transport services on
the coastal route from Bergen to Kirkenes.
NOK 125 million was paid to the company
in December 2008. This sum includes NOK
59 million as 90 per cent compensation for
nitrogen oxide tax paid in 2007 and the first
half of 2008. The agreement involves a rise
of NOK 88 million in the total payment for
2009. The general annual increase of NOK
66 million and 90 per cent compensation
for the nitrogen oxide tax will continue for
the life of the contract. A further NOK 7
million was recognised in the fourth quarter
as compensation for nitrogen oxide tax
in the second half of 2008. The company is
also given the opportunity to take a Hurtigruten
ship out of service in the winter
season. Work is now under way on preparing
criteria before the ministry announces
a new competitive tender for the contract.
Politicians consulted along the coast have
given input on these criteria. The company
will give the highest priority to the tendering
process within a framework which is
commercially interesting.
Hurtigruten asa 2008

hurtigruten – NORWEGIAN COAST
13
Cruise liners with local roots
Round-trip passengers the most
profitable
A substantial proportion of Hurtigruten’s
revenues derive from round-trip passengers,
who are also the most profitable customer
group for the service.
The most important markets are Germany,
Norway, the UK, the USA and
France. These five countries account for
the bulk of Hurtigruten’s total passenger
sales, and the company has its own sales
offices in these markets. A commitment
is also being made to a centralised and
stronger sales unit for the Nordic region
in order to serve this market more effectively.
Making a commitment to international
distribution and sale will be an important
success factor for the future development
of Hurtigruten’s results. The international
market for experience travel has
been growing strongly in recent years.
Uncertainty prevails about the impact of
the problems created by the international
financial crisis on the travel industry. Hurtigruten
will maintain its active sales efforts
in important markets, with a particular
intensification in the Nordic region. This
is because experience suggests that more
people will choose holiday travel in their
home market during an economic downturn.
Most port to port passengers
Distance passengers still represent the
bulk of travellers with Hurtigruten. The
voyage functions primarily as a transport
stage for the traveller, and residents
along the coast of Norway represent the
clear majority of people taking advantage
of this travel opportunity. However, product
development and intensified marketing
mean that the share of holidaymakers
among distance passengers is rising.
Direct flights from London to Tromsø, for
instance, have contributed to an increase
in passenger numbers on the Tromsø-
Kirkenes-Tromsø stretch – which represents
a four-day cruise.
Public procurement of transport services
by the Norwegian government
totalled NOK 418 million in 2008, including
retrospective payments and additional
payments following the renegotiation of
the contract.
A commitment to onboard spending
on Hurtigruten vessels, including land
activities, yielded growth in 2008 and will
be further intensified in the time to come.
Environment-friendly freight
Hurtigruten also carries substantial
amounts of cargo along the Norwegian
coast, and operates as an agent for Nor
Lines. The latter is responsible for the marketing
and sale of freight capacity on Hurtigruten
vessels. After a period of decline,
freight revenues have begun to increase
again in recent years.
However, competition from road haulage
is very strong. Rising environmental
awareness in the community means that
growing numbers are choosing options
which protect the environment, and this
helps to strengthen Hurtigruten’s competitive
advantage as a freight carrier. A
number of large retailers are among those
who prefer to us the service as part of their
own environmental commitment, particularly
on the section north of Tromsø.
Hurtigruten carries freight over large
distances, and is often the only option
open to the coastal population for regular
transport of fresh produce and products.
The service carried 134 000 tonnes
of freight in 2007, representing 142 089
separate consignments. That corresponds
to an average weight of 945 kilograms per
consignment. The volume of goods converts
to 85 000 tonne-kilometres. Using
Hurtigruten asa 2008

14 hurtigruten – NORWEGIAN COAST
Ålesund Molde
Torvik
Måløy
Geirangerfjord
Florø
Bergen
Nesna
Sandnessjøen
Brønnøysund
Rørvik
Trondheim
Kristiansund
Sognefjord
NORWAY
Hardangerfjord
Oslo
Tromsø
Vesterålen
Islands
Risøyhamn
Finnsnes
Sortland
Stokmarknes
Harstad
Svolvær
Stamsund
Ørnes
Lofo
Bodø
f ten
d
Islands
articulated lorries to move that volume
would correspond to 600 vehicles running
between Drammen and Oslo every
day throughout the year. This assumes an
average load of 14 tonnes per lorry and
a transport distance of 50 kilometres for
such vehicles in Norway.
Operations in 2008
Hurtigruten enjoyed good and stable
operation in 2008, with a regularity of just
over 98 per cent. That was slightly better
than the company’s own requirement of
at least 97 per cent. Operating regularity
is calculated in relation to unplanned variances,
primarily caused by weather conditions
or technical faults. A total of 458
such variances were experienced in 2008,
including delays of more than two hours.
The 11 Hurtigruten ships make almost
24 000 port calls annually. The distance
sailed in 2008 was roughly 1.5 million kilometres,
in waters which can be difficult
and present challenging conditions at
times. Safety always has the highest priority
in Hurtigruten. The company places
great emphasis in its day-to-day operations
on showing responsibility to people,
culture and the environment.
Operating revenues for Hurtigruten,
North Cape
Kjøllefjord
Honningsvåg
Havøysund
Hammerfest
Skjervøy
Øksfjord
Mehamn
Berlevåg
Båtsfjord
Vardø
Vadsø
Kirkenes
including wholly-owned international distribution
companies, totalled NOK 2 139
million in 2008 as against NOK 1 933 million
the year before. This 10.6 per cent
growth primarily reflects increased payment
from the government after renegotiation
of the public procurement contract.
An additional payment of NOK 125 million
was made for 2008. NOK 7 million was
also recognised in compensation for nitrogen
oxide tax in the second half of 2008.
An increase in round-trip passengers and
chartering out m/v Nordnorge also contributed
to revenue growth.
The number of guest nights in the
round-trip passenger segment came to
617 621, compared with 588 932 in 2007.
This represents a growth of almost five per
cent. The average price per guest night
declined from NOK 1 312 in 2007 to NOK
1 269. A conscious choice has been made
to use the price mechanism in combination
with the offer of more active experiences
to attract additional cruise guests
during the winter season, and this paid off
handsomely in 2008. The number of guest
nights in the round-trip segment accordingly
increased by 26 per cent in the first
quarter and no less than 60 per cent in the
fourth quarter, compared with the same
periods of 2007. Occupancy declined
somewhat during the summer season, so
the commitment to achieving year-round
growth will now be intensified. Measured
by guest nights, port to port passenger
numbers declined by 1.6 per cent over
the same period, from 418 376 in 2007 to
411 611. However, the average price per
distance passenger rose from NOK 755
to NOK 790. Overall passenger numbers
declined by 3.8 per cent from 2007.
While the number of guest days in Norway
stagnated from 2007 to 2008, Hurtigruten
achieved a growth of five per cent.
Overall, the service now has 11 per cent of
the country’s foreign guest nights.
Crew costs represent a substantial proportion
of total operating expenses for
Hurtigruten, and accounted for almost
36 per cent in 2008 compared with 39 per
cent the year before. The decline was due
to the extension of the net pay scheme
to personnel who form the safety crew
on the vessels. Implemented from 1 July
2007, this yielded a saving of NOK 48.6
million in that year. A further reduction
of NOK 45 million was achieved in 2008
through the full-year effect of the scheme.
However, pay increases in 2008 and higher
pension costs limited the effect of the net
pay scheme.
High oil prices for much of 2008 also
helped to boost Hurtigruten’s costs. The
amount it spent on bunkers rose by NOK
65 million from 2007.
Expenses also increased as a result of
the introduction of the nitrogen oxide tax,
which boosted Hurtigruten’s costs by NOK
60 million in 2007 and NOK 16 million in
2008. The decline in 2008 reflects entry
to the nitrogen oxide fund. In connection
with the renegotiation of the public procurement
contract, Hurtigruten received
NOK 54 million in 2007 and NOK 14.4 million
in 2008 as compensation for 90 per
cent of these outgoings.
Hurtigruten strengthened its sales
and marketing activities during 2008. This
increased its expenses, but also made
a positive contribution to revenues. The
figures show that efforts made to market
Hurtigruten outside the high season are
starting to have an effect.
Operating profit before depreciation
and impairment (EBITDA) came to NOK
363 million, an increase of just over 22 per
cent from NOK 296 million in 2007.
Hurtigruten asa 2008

hurtigruten – NORWEGIAN COAST
15
Strategy for Hurtigruten
The main focus will continue to be on promoting
the product outside the summer
season, while simultaneously ensuring a
high level of summer occupancy. Experiences
to be gained along the coast are at
least as great in the autumn, winter and
spring. The product will be customised,
the marketing commitment intensified,
and more differentiated pricing applied.
This will be achieved through the development
of new markets and an increase
in the marketing commitment in existing
markets.
Product development means that
greater emphasis will be given to active
experiences both at sea and on land,
based on lessons learnt from explorer
cruises in Svalbard, Greenland and the
Antarctic. The exceptionally real brand
platform will express the distinctive character
of the products and concepts on
offer. Experience from winter cruises with
a focus on the Northern Lights has been
good, and the Hunting the Light concept
will be further developed and the marketing
commitment strengthened.
To continue developing Hurtigruten’s
potential, particular emphasis will be
given to:
y y market development - greater customer
knowledge, younger target
audiences, new markets, and new
sales and distribution channels
y y product development - active experiences,
shorter voyages, new winter
products and new destinations
yy modernisation of business proc-
esses, with the emphasis on on-line
solutions, the internet and in-house
efficiency gains
y y optimisation of the vessel portfolio
– selling surplus tonnage and developing
the fleet in line with market
requirements and expectations.
As one of Norway’s leading tourist
products, Hurtigruten will be the driving
force – in close collaboration with
the travel trade and government agencies
– for developing Norwegian tourism
and foreign marketing of the country. That
includes efforts to increase the number of
direct air routes from abroad to coastal
destinations in Norway in order to exploit
the growth in the short-break market and
to make all Hurtigruten’s products along
the Norwegian coast accessible.
Prospects
Capacity utilisation on the Hurtigruten ships
varies considerably during the year. While
occupancy is relatively high from May to
August, capacity is substantially greater than
demand in the rest of the year. A number
of measures have been adopted to change
this, and the effect was encouraging during
2008. Sales and marketing work was further
intensified, with the product being two-four
days on Hurtigruten combined with landbased
activities. This forms part of long-term
efforts to strengthen tourism along the Norwegian
coast outside the summer season.
Work on increasing Hurtigruten’s earnings
will be continued with great intensity
through the improvement programme
launched in 2008. This includes the identification
of specific measures to enhance
efficiency and cut costs. One of these is to
downsize the land-based workforce by 200
work-years during 2009. That will make an
important contribution to reducing costs
by NOK 150 million per annum, with partial
effect in 2009 and full impact in 2010.
Hurtigruten will also give the highest
priority to forthcoming work on a commercial
tendering process for the public
procurement contract, subject to commercially
interesting frame conditions.
Hurtigruten asa 2008

16 hurtigruten – explorer PRODUCTS
Hurtigruten
EXPLORER PRODUCTS
Highlights
of 2008
yy Positive effect of reducing from
two ships to one in the
Antarctic
yy Increased occupancy on
Greenland cruises
yy Almost full capacity utilisation
on Svalbard cruises
Hurtigruten has developed into an internationally-renowned operator
of explorer cruises, and ranks today as the market leader for cruising
around Svalbard and Greenland. Activity in the Antarctic has been
reduced from two to one vessels, but the company remains a substantial
player in the region. This business also embraces hotel and tour
operations in Svalbard.
Where reality outstrips
the imagination
Explorer products are a relatively new priority
area for Hurtigruten, and the company
has built up a leading position relatively
quickly in this segment. The business
is concentrated on three geographical
areas: Svalbard, Greenland and the Antarctic.
Cruises are also offered between
the Arctic and the Antarctic.
The Spitsbergen Travel subsidiary is
located at Longyearbyen in Svalbard, Hurtigruten
Greenland AS at Nuuk in Greenland,
and C&O Tours (Hurtigruten Latin
America) at Santiago de Chile.
Operating revenues for the explorer
business were NOK 443 million in 2008.
After the classification of public transport
operations as discontinued business,
explorer products account for 15 per cent of
Hurtigruten’s annual operating revenues.
Svalbard
The company’s operations in Svalbard
are run through Spitsbergen Travel AS in
Longyearbyen. This company’s core activities
are related to hotel and restaurant
operation, explorer cruise, and meetings
and experiences for the corporate sector.
The experience element embraces a
broad range of tour activities, from oneday
outings to longer summer and winter
excursions. They include boat trips, hiking,
crosscountry skiing, camper and snowscooter
trips, ice cave tours and dog sled
expeditions. The business also encompasses
Ing G Paulsen AS, a trading company
which supplies snowscooters, equipment
and outdoor clothes as well as hiring
out equipment.
Complete programmes are tailored by
Spitsbergen Travel for meetings, courses,
conferences and experience trips in Sval-
Hurtigruten asa 2008

hurtigruten – explorer PRODUCTS
17
KEY FIGURES for hurtigruten Explorer PRODUCTS
Amounts in NOK 1 000 2008 2007
Operating revenues 443 463 492 052
Operating expenses 409 547 432 616
Operating profit before depreciation (EBITDA) 33 916 59 438
Depreciation and impairment 131 453 27 398
Operating profit/(loss) (EBIT) (97 537) 32 040
NUMBER OF GUEST NIGHTS
Antarctic Greenland
Svalbard Other
SPITSBERGEN TRAVEL – GUEST NIGHTS
Number of guest nights (left-hand scale)
Occupancy (right-hand scale)
100 000
100 000
100%
80 000
80 000
80%
60 000
60 000
60%
40 000
40 000
40%
20 000
20 000
20%
0
2007
2008
0
2005
2006
2007
2008
0%
bard. A large proportion of these experience
products are developed in-house, but
local sub-contractors are also used. During
the summer, the company offers expedition
and adventure cruises with the m/v
Polar Star expedition ship and the former
Hurtigruten vessel m/v Nordstjernen. Both
vessels offer sailings which depart from
Longyearbyen. A third ship will be committed
to Svalbard in 2009 after the company
has chartered m/v Expedition to operate
on the same route as m/v Polar Star.
Spitsbergen Travel owns and operates
the Spitsbergen Hotel, which is Svalbard’s
Rica Partner establishment, the Radisson
SAS Polar Hotel Spitsbergen and Spitsbergen
Guesthouse. The hotels offer
catering as well as comfortable accommodation
and course/conference facilities.
The company also operates a base camp
at Bolterdalen near Longyearbyen.
Spitsbergen Travel accounted for 70
per cent of guest beds and 88 per cent of
occupancy in Longyearbyen during 2008.
Norwegians represent the bulk of tourist
travel to Svalbard, and totalled just over
68 per cent of guest nights in Longyearbyen
for 2008. Tours and accommodation
are distributed through a dedicated sales
organisation, affiliated hotel chains and
external channels such as travel agencies
and agents in Norway and abroad. Spitsbergen
Travel uses Hurtigruten’s distribution
network internationally. As a tourist
destination, Svalbard competes primarily
with northern Norway and Arctic destinations
such as Iceland, Greenland, and
northern Sweden and Finland.
Spitsbergen Travel is based in Longyearbyen
and employs some 105 workyears
in addition to seasonal workers. Its
operating revenues came to NOK 205 million
in 2008.
Greenland
Hurtigruten’s cruise activities around
Greenland originated in 1998, when OVDS
began explorer programmes there. These
continued in 2003 as a separate charter
business through Norden Tours, which
was then a subsidiary of Hurtigruten’s German
office. The company named its new
explorer ship m/v Fram in May 2007. This
vessel is purpose-built for cruising in Polar
waters, and won great praise after its first
two seasons from both passengers and
Greenlanders. Three different explorer
cruises are offered, with the focus on
southern Greenland, Disko Bay, and the
combination of Disko Bay and Thule.
Hurtigruten Greenland AS was established
in 2007 with its business office in
Nuuk to handle various jobs at the destination
relating to passenger services,
logistics and administration.
Antarctic
This business was established in 2002.
After operating for a time with two vessels,
it was resolved from the 2008 season
to concentrate exclusively on m/v Fram.
Three different cruises are now offered,
with magnificent experiences and exciting
activities. Starting from and finishing
at Ushuaia, these programmes run for 13,
17 and 22 days respectively.
The biggest markets for Antarctic
cruises have so far been Germany and the
USA, and the proportion of US guests has
shown the largest increase over the past
couple of years.
Hurtigruten owns 80 per cent of the
C&O Tours company in Santiago de Chile,
which provides cruise services such as
tour operation and ground handling and
also serves as the sales office for Hurtigruten
in Latin America. As a tour operator,
the company offers package trips for
cruises as well as special events in Chile,
Argentina, Peru and Brazil for passengers
Hurtigruten asa 2008

18 hurtigruten – explorer PRODUCTS
«While tourism in general has seen an annual growth of
roughly four per cent in recent years, theme travel has
increased by no less than 10 per cent.»
before and after cruises. Ground handling
involves such activities as organising charter
flights, transfers and hotels for arriving
and departing cruise passengers, and
land-based excursions.
From Arctic to Antarctic
A new product has been developed in
connection with the seasonal redeployment
of m/v Fram – a 67-day cruise from
the Arctic to the Antarctic. This sails from
Reykjavik in Iceland to Ushuaia in Argentina,
the world’s southernmost town.
Real experiences close
to nature
The travel trade has been expanding in
recent years, with certain segments growing
faster than others. Expansion is particularly
strong for theme-based experience
travel. While tourism in general has
seen an annual growth of roughly four
per cent in recent years, theme travel has
increased by no less than 10 per cent. Hurtigruten’s
explorer products have secured
their share of this expansion, and the company
has developed over a short period
into the market’s largest cruise operator in
Polar waters.
Tourists travelling to Svalbard or taking
explorer cruises are looking for real experiences
close to nature. They want to be
close to the elements and to witness the
“extremes” in order to experience something
unique. Their aim is to see for themselves
and learn something new. So they
seek theme-based programmes which offer
activities and participation. At the same
time, they want to enjoy all this in a secure
and comfortable atmosphere. That can be
found on Hurtigruten’s purpose-built ships,
where good service and Norwegian seafaring
skills are important elements.
Hurtigruten has developed a position
in the explorer market which provides a
good basis for further growth. The uncertainty
caused by the international financial
crisis also applies to this segment.
Demand for Svalbard cruises is high.
Serious about the environment
The debate on climate change and the
general increase in attention being paid
to the environmental challenges facing
the world are helping to enhance interest
in the Polar regions. On the one hand,
many people want to learn more about
these areas and to experience their spectacular
scenery up close. On the other,
constant reminders are being received
about the vulnerability of the environment
and the need to protect it from unnecessary
burdens.
As a leading operator in the Arctic and
Antarctic, Hurtigruten is extremely conscious
of its responsibility to apply the
strictest standards for safety and environmental
protection. The company will
accordingly not only comply with legislation
and regulations covering these vulnerable
areas, but also demonstrate that
it is in the forefront of both attitudes and
action. Concern for the environment is
also reflected in Hurtigruten’s core values,
which will contribute to creating further
commitment to and awareness of this
important area.
An important element in the company’s
environmental commitment is the
agreement concluded by Spitsbergen
Travel in January 2008 with the World
Wide Fund for Nature (WWF). This agreement
is part of the WWF’s Climate Savers
business scheme, whereby companies
commit to specific targets and implementation
plans for cutting their greenhouse
gas emissions.
Spitsbergen Travel was the first Norwegian
member of the Climate Savers
scheme, which requires it to reduce its
own emissions and to purchase allowances
for the carbon dioxide released
from its operations.
Hurtigruten itself has concluded binding
agreements related to the environment
through its membership of various
organisations. These are the Association
of Arctic Expedition Cruise Operators
(AECO) and the International Association
of Antarctica Tour Operators (IAATO).
Through these organisations, the industry
itself is developing regulations to protect
the environment which are stricter in many
areas than official legislation and regulations.
Operations in 2008
Operating revenues for explorer products
totalled NOK 443 million as against NOK
492 million in 2007. This decline partly
reflects the reduction in the number of ships
in the Antarctic from two in 2007 to one.
Explorer cruises around Svalbard had
an occupancy of 93.5 per cent, compared
with 95 per cent the year before when only
one vessel was in operation. Guest nights
increased from 6 353 in 2007 to 14 389.
This reflects the return of m/v Polar Star
to full operation in 2008, after being hit by
Hurtigruten asa 2008

hurtigruten – explorer PRODUCTS
19
an engine breakdown at the start of the
previous season which prevented it from
implementing any of its cruises during
2007. The average price per guest night
was NOK 3 493, compared with NOK
3 183 in 2007.
Antarctic explorer cruises achieved
87.6 per cent occupancy in 2008, compared
with 61.2 per cent the year before.
The number of guest nights declined
from 52 995 to 41 347. This reflected the
deployment of only one vessel, m/v Fram,
in the autumn season of 2008, compared
with two throughout the 2007 season. The
average price per guest night rose from
NOK 2 105 in 2007 to NOK 2 377.
Explorer cruises off Greenland with
m/v Fram achieved an occupancy of 81
per cent in the second season, compared
with 72.8 per cent the year before.
Guest nights rose from 23 471 in 2007 to
25 099. The average price per guest night
declined from NOK 3 249 to NOK 3 133.
Operating costs before depreciation
and impairment amounted to NOK 410
million, compared with NOK 433 million
in 2007. This decline is a consequence of
reducing the number of vessels in the Antarctic
from two to one, but increased bunker
prices and high costs for the Arctic-
Antarctic cruise boosted expenses.
Operating profit before depreciation
and impairment came to NOK 34 million,
compared with NOK 59 million in 2007.
The decline primarily reflects higher bunker
prices and the development of costs
for the Greenland business and the Arctic-
Antarctic cruise.
Strategy for explorer
products
The commitment to explorer cruises in
Polar waters has become an important
business, with potential for growth and
profitability. Hurtigruten is the clear market
leader in Svalbard, ranks among the
leaders in the Antarctic and, with the introduction
of the m/v Fram explorer ship in
May 2007, has established a new standard
for experience cruises to Greenland.
The company has the world’s largest fleet
of vessels specially tailored for cruising in
Polar waters. Explorer cruise operations
play an important part in an optimisation
of the company’s vessel portfolio.
Based on an extensive and varied
product range, the position as a leader
for experience cruises in Polar waters will
be further developed towards an active,
broad and affluent international public
with a generally wider spread of ages than
is typical for the traditional Hurtigruten
voyages.
The exceptionally real brand platform
will be further strengthened through:
yy further development of the existing
product portfolio as well as the creation
of new products and destinations
which complement the current
explorer cruise portfolio and the Hurtigruten
service
yy exploiting opportunities for cross sales
yy an increased marketing commitment,
brand-building and strengthened sales
organisation
yy a commitment throughout the value
chain through the development of
logistics, destinations and excursions.
Prospects
The explorer business is well positioned
in relation to one of the most expansive
segments in the international travel industry.
Some uncertainty prevails about the
impact of the international financial crisis.
Giving continued high priority in 2009 to
the extensive improvement programme
launched in 2008 is expected to help
boost results.
Hurtigruten asa 2008

20 hr in hurtigruten
In a demanding restructuring:
Important to take care of employees
After a number of years of big losses, Hurtigruten had to take the necessary steps in 2008 to safeguard
its future. That has presented the organisation with major challenges. The substantial restructuring
now taking place is essential for creating a more focused business and a profitable company. For Hurtigruten
as an employer, it is important to demonstrate that the company remains able to look after its
people well during a critical phase.
Group model relinquished
As a consequence of the decision to concentrate
the company’s commitment on
Hurtigruten Norwegian coast and explorer
products, the former group model has been
relinquished. From 1 January 2009, the corporate
management has been replaced by
a company management team with half
the number of senior executives. The sales
organisation has been restructured to create
a more sales-oriented business and to
tailor sales and management costs to the
company’s competitive position.
The Black Belt improvement programme
pursued in 2008 has defined
shared modes of working and processes
throughout the organisation. These are
either already implemented or under way.
That will make it possible to eliminate
duplicated functions and facilitate a transition
from fixed to variable costs wherever
possible, including the outsourcing
of ICT services and booking. Implementing
the new Polar Global booking system
will be important for a successful transformation.
Shared system solutions for booking/invoicing
throughout the organisation
make it possible to cut costs by establishing
booking centres in low-cost countries.
However, specialised functions will
be retained in the organisation through
regional coordinators.
It has been decided to reduce annual
sales and administrative costs by NOK 150
million, with full effect from 2010. As part
of this cut, the land-based workforce is to
be downsized by some 200 people in all
during 2009, including 80 in Norway and
120 in the foreign organisation. This work
is well under way.
Expertise
Training and education to secure the right
expertise for the organisation represent
an important task for any employer. In
cooperation with the University of Tromsø,
Hurtigruten implemented a course on
accounting in 2008 which conferred 10 formal
study points. No less than 23 employees
completed this programme with good
results.
A tourism course is being planned by
the company. If realised as planned, this
will be provided jointly by Hurtigruten and
the university colleges in Narvik and Alta.
Updating executives must be a continuous
process. The Black Belt programme
and necessary training related to its various
projects had priority in 2008. Management
development during the year related
primarily to managing human resources,
executing good annual job reviews with
subordinates and following up people on
sick leave.
Organisational changes
In addition to the decision to halve the
workforce on land during 2009, Hurtigruten
is now building up a call centre in
Tallinn. This represents an interesting and
challenging project.
Great attention has been devoted to
work on organisational changes, and Hurtigruten’s
chief shop stewards – particularly
in the land organisation – have been
involved in the process as required by
law and union-management agreements.
The approved redundancies have now
been implemented in the Nordic region,
and the offices in the rest of the world are
next.
The big restructuring process was paralleled
by three business transfers during
2008. Kystopplevelser AS and Hurtigruten
AB were incorporated in Hurtigruten ASA,
while ICT activities have been outsourced
to an external contractor.
Downsizing has been a heavy burden
for the workforce, and the company has
– like everyone who undertakes major
organisational changes – experienced
unrest and demotivation among employees.
Equal opportunities
The company adopted guidelines in
March 2006 for in-house work on equal
opportunities. These include the following
provisions.
Women and men will be given equal
opportunities for employment, education,
work and professional development.
Increasing the number of women in
leading positions is considered desirable
through natural recruitment when jobs fall
vacant. If the company initiates special
training programmes, including trainee
schemes, taking the gender balance into
account will be important.
Through its arrangements on leave of
absence, the company will seek to give
both parents an equal opportunity to
share child care.
The company will show zero tolerance
of bullying and sexual harassment.
Through active use of instruments/
measures and a focus on thinking equal
opportunities in all appropriate circumstances,
Hurtigruten will be a company in
which employees thrive and feel that everyone
has the same opportunities for personal
growth and development.
Work on promoting equal opportunities
for men and women is based on
the main agreement with the unions, the
Norwegian Equal Opportunities Act and
human resources policy in Hurtigruten.
The gender division within parts of the
company is currently somewhat unbalanced.
Hurtigruten’s goal is to facilitate
a more equal division between men and
women in disciplines which have tradition-
Hurtigruten asa 2008

hr in hurtigruten
21
ally had an uneven gender distribution.
In line with the objects of the Equal
Opportunities Act and the main agreement,
women and men will be given equal
opportunities. Both sides are fully aware
that such equality of opportunity cannot
be achieved without differential treatment
of male and female employees and/or job
applicants during a transitional phase, so
that women are given some advantages
over men when all other factors are equal.
Measures to be adopted in 2009
yy Hurtigruten’s job ads will be framed to
encourage/urge women to apply.
yy Up the last round, before a final candi-
date for the post has been selected,
both genders must be represented.
yy When a job is advertised externally,
and qualified females apply, a woman
will be appointed when all other factors
are equal.
yy When a job is advertised in-house, all
female applications will be considered.
Where the appointments committee is
involved in recruitment cases, it has a
special responsibility for monitoring
that this is done.
yy However, the appointments commit-
tee must also take account of the fact
that the gender division has been very
unbalanced in certain disciplines.
yy A programme for continuous updating
of managers will be established. One
element will be a focus on equal
opportunities and the company’s attitude
to bullying and sexual harassment.
yy The company’s equal opportunities
goals will be applied when selecting
participants for special training measures,
including possible trainee programmesyy
statistics and pay data will be col-
lected to show the gender division in
all job categories and, when such
information is available, further measures
will be developed to reduce possible
inequalities.
yy when applications for leave relating to
the care of small children are received,
both genders will be treated equally in
approving such absences – whether
these are legal entitlements or not.
Inclusive workplace
Hurtigruten has been an inclusive workplace
(IA) company since 2006. The Norwegian
Employment and Welfare Service
(NAV) has placed two consultants at the
company’s disposal for training managers,
union officials and employees in the
rights and duties associated with this status.
Information has been provided about
the schemes available to Hurtigruten
employees for returning more quickly to
work after a sickness absence. Management
both on land and at sea has also
been trained in how they can best follow
up personnel on long-term sick leave.
The company made an IA place available
in 2008 for a young person with great
physical disability. In cooperation with
the NAV, the necessary equipment was
obtained and staff in the relevant department
made great efforts to create good
working conditions and well-being for the
person concerned.
Hurtigruten is very pleased about its collaboration
with the NAV, and will continue
this partnership to the benefit of the community,
the company and its employees.
Trainees
The company offers one of the largest
apprenticeship programmes in Norway,
and had 132 trainees on the Hurtigruten
vessels in 2008. These are young people
contemplating a maritime future, and it
is important for the company to safeguard
recruitment to Hurtigruten in particular
and the industry in general. Being
a seafarer in Norway has always been and
should remain a badge of honour.
Vision and values
Hurtigruten’s vision is real experiences in
unique waters. The company also has a
set of core values. See page 5.
Given the position it has been in, the
company could not assign a sufficiently
high priority to work on its vision and values.
These efforts are important for building
a common culture across the whole
company. A process has accordingly been
launched to assess whether the vision and
values are still appropriate guidelines.
This work will also embrace Hurtigruten’s
management principles.
Hurtigruten asa 2008

22 HSE in hurtigruten
Hurtigruten asa 2008

HSE in hurtigruten
23
Health, safety and the environment:
Highest priority
Hurtigruten gives priority to health, safety and the environment. The management has conducted
an extensive survey of conditions through the Black Belt programme, and the company is now
implementing a number of measures. Policies on safety and the environment have been evaluated
and updated. Hurtigruten believes that solid and binding goals in this area are essential for
continuing to develop the business in the desired direction.
HSE has been elevated to the first item on
the agenda at all management and board
meetings in Hurtigruten. This is not coincidental,
but a signal to identify the most
important issue which everyone should
and will have a relationship with. The result
is that a perception of what HSE involves
has been established at all management
meetings, along with the individual’s own
level of performance. Defined indicators
which are the subject of regular reporting
underpin the company’s ability to respond
if developments move in an undesirable
direction.
Hurtigruten had a challenging year in
2007, suffering several undesirable incidents,
but 2008 was an improvement in
this respect.
On the basis of its experience, the
company launched an extensive survey
and evaluation in order to implement systematic
improvements. A large number
of employees were involved in this work,
which identified a number of improvement
areas. Hurtigruten is now taking action
on the basis of the analysis. A number
of these measures focus on human and
cultural aspects of safety work as well as
improvements to reporting routines and
follow-up of incidents.
The company defined policies for
safety and the environment in 2008. Its
safety vision incorporates zero tolerance
of accidents, including personal injuries
and loss of human life. The company aims
to be perceived as a safe provider of travel
services by both customers and employees.
Its environmental vision embraces
a clear goal of minimising Hurtigruten’s
impact on the natural environment. It will
conduct its business at all times in accordance
with prevailing rules and regulations.
Health and the working
environment
Hurtigruten ASA is a hectic place to work,
both in its maritime business and in the
organisation on land. However, this pace
will not be maintained at the expense of
employee health or the working environment.
Hurtigruten will be a challenging
but good and secure place to work, with
room for customisation to suit individuals.
Safety and environmental service
Hurtigruten ASA has established a wellfunctioning
safety and environmental
service. With the wide geographic spread
of its organisation and operations on the
vessels, the company has given weight
to securing broad representation in this
service. The working environment committee
(AMU) and the central works council
(Samu) are the most important fora in
this respect. While the AMU has six fixed
meetings a year, the Samu holds four.
Additional meetings can be called if necessary.
Continuous efforts are being made
to reduce sickness absence in the company,
but the underlying trend is negative.
Such absences broke down as follows in
2008 compared with the year before:
Sickness absence
In per cent
2008 2007
Maritime personnel,
Hurtigruten 7.89% 6.66%
Employees on land 5.60% 3.69%
Hurtigruten is an IA company, and
thereby aims to reduce overall sickness
absence. The company’s target for 2008
was a reduction for both maritime and
land-based operations. That goal was not
met, and the company has accordingly
intensified work on overcoming the challenges
related to sickness absence.
Strict policy on intoxicants
Hurtigruten ASA has established a strict
drugs and alcohol policy, which includes
unannounced testing of employees. Drug
and alcohol abuse has a direct impact
on safety. Hurtigruten has accordingly
adopted very stringent routines to avoid
accidents, damage to property, morale
difficulties and other safety challenges
related to the use (abuse) of intoxicants.
The purpose of a clear and strict policy on
intoxicants is to give all employees knowledge
about and a sense of responsibility
over this challenge. Absolutely zero tolerance
is shown to the use of intoxicants by
crew on Hurtigruten ships, and testing is
conducted regularly.
Natural environment
Responsibility
Like all other transport and travel businesses,
the company’s operations have a
direct impact on the natural environment.
As a key player, Hurtigruten is conscious
of its responsibility for safe operation and
protection of the environment, and will
ensure that its operations and priorities
yield an improvement in environmental
performance.
Within the framework provided by
technological developments and financial
conditions, the company will continuously
tailor its business to eliminate or minimise
harm to health or the environment.
To keep professionally up to date with
environmental issues, Hurtigruten maintains
close contacts with relevant centres
of expertise.
The company complies with the
Hurtigruten asa 2008

24 HSE in hurtigruten
«As the first Norwegian partner, and the first travel
company to join, Svalbard Travel has committed to
reaching specific targets. These include becoming
greenhouse-gas neutral by 2010.»
requirements enshrined in national and
international regulations.
These build on the International Maritime
Organisation’s Marpol conventions of
1973/78 with subsequent supplements, and
a number of special national requirements.
Hurtigruten’s explorer cruise business
in Greenland, Svalbard and Antarctica
is associated with and subject to the
guidelines of the reputable International
Association of Antarctica Tour Operators
(IAATO) and Association of Arctic Expedition
Cruise Operators (AECO) member
organisations. The company has played
an active role in the IAATO in order to
contribute to a safe and environmentally
aware tourist business in these unique and
vulnerable areas. In the same way, its Spitsbergen
Travel subsidiary has been actively
involved in the foundation of the AECO,
which embraces the cruise industry’s operations
in Greenland and Svalbard. Hurtigruten
ASA also became a member of
the AECO in 2007 in order to exert further
influence on the industry’s awareness of
important environmental and safety issues
related to cruising in Polar waters. Both
300’
250’
200’
150’
100’
50’
0
the IAATO and the AECO are formal consultative
bodies for treaty issues in the relevant
areas.
Hurtigruten’s operation in Svalbard,
Spitsbergen Travel, became a member at
1 January 2008 of the WWF’s international
Climate Savers scheme. As the first Norwegian
partner, and the first travel company
to join, Svalbard Travel has committed
to reaching specific targets. These
include becoming greenhouse-gas neutral
by 2010.
Minimising impact
Hurtigruten ASA has a conscious attitude
about the impact which its business
could have on the natural environment.
It observes international rules and procedures
for handling waste, ballast water
and sewage (black water). Waste sorting,
collection and treatment are routinely pursued
to minimise impact.
The three largest Hurtigruten ships,
m/v Finnmarken, m/v Trollfjord and m/v
Midnatsol, also have the Clean Class notation
and have installed treatment systems
for grey water.
HURTIGRUTEN – EMISSIONS TO THE AIR (NOx)
In 1 000 tonnes 2007 2008
Jan
Feb
Mar
Apr
May
Jun
HURTIGRUTEN – DISTANCE SAILED
In 1 000 nautical miles 2007 2008
300’
250’
200’
150’
100’
50’
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Jul
Aug
Aug
Sep
Sep
Oct
Oct
Nov
Nov
Dec
Dec
Anti-fouling is used to prevent the
growth of marine organisms on a ship’s
hull below the waterline and represents
an important environmental measure
because such growth increases a vessel’s
fuel consumption. However, the downside
is that the anti-fouling adds toxins to the
sea. Hurtigruten complies with international
regulations and uses only approved
anti-foulings. It also works continuously to
develop methods which can prevent hull
growth and improve fuel consumption
without the use of toxins.
Greenhouse gases
Hurtigruten’s business involves a substantial
consumption of fuel and consequent
emissions of greenhouse gases such as
carbon dioxide, sulphur dioxide and nitrogen
oxides. On the other hand, its public
transport activities make a substantial
contribution to reducing other forms of
transport. Hurtigruten’s business makes a
positive contribution in a wider perspective.
Its most important job, therefore, is
to make it even more attractive to use the
company’s Hurtigruten ships and buses.
The company does not take the job
of minimising fuel consumption lightly.
Through high engine efficiency from
the use of efficient diesel engines, good
maintenance and a conscious attitude
to speed, it can go some way towards
achieving such reductions. However, performance
commitments under the public
procurement contracts for the Hurtigruten
service reduce opportunities in this area.
Hurtigruten works closely with Den Norske
Veritas and the Federation of Norwegian
Coastal Shipping (RLF) to find alternative
treatment methods for reducing
carbon dioxide and nitrogen oxide emissions.
The company is a member of Norway’s
nitrogen oxide fund, and is pursuing
a number of measures to reduce energy
and fuel consumption. Particular mention
can be made of replacing propellers and
energy savings related to lighting.
Accidental discharges
Unintentional and accidental discharges
to the sea represent a constant risk in
the company’s business. Its most important
job is to minimise this risk through
optimum management systems, good
reporting routines and a constant safety
consciousness. Routines have been established
for reducing the risk of overbunkering,
and the ships carry protective equip-
Hurtigruten asa 2008

hse in hurtigruten
25
ment and oil booms in order to minimise
the consequences of a possible discharge.
The company is prepared at all times to
take the action needed to limit the extent
of a possible accident, and it has a wellfunctioning
emergency response organisation.
Hurtigruten experienced no serious
incidents related to oil spills in 2008.
Safety
Hurtigruten ASA pursues a business which
is wholly dependent on trust and credibility
over issues relating to safety. Its vessels
sail in uniquely demanding waters, and
safety will be the first priority in the decisions
taken.
Hurtigruten had a better year for serious
incidents in 2008 than in 2007. However,
it will be important for the company
to maintain a sharp focus even though the
statistics are good. Hurtigruten’s attitude
is that one can never pay too much attention
to this issue. Safety and risk management
will be key tasks for the company in
the time to come.
Efficient safety system
The safety management system in Hurtigruten
is efficient and user friendly, and
ensures a common platform for document
management and distribution of governing
documentation – all to support a detailed
system for managing safety in the company.
The document management system
is web-based, and allows the company
to document and process all safety work
electronically. Shipboard routines and
procedures are standardised, while shipspecific
procedures have been created for
each vessel.
Substantial training in the use of the
system has also been provided, and these
skills will be maintained through regular
exercises.
Significant jobs remain to be done,
and the company’s performance with
reporting, analysis and risk management
must be continuously improved. Good
safety depends on positive interaction,
where human factors, technical systems
and departments jointly contribute to
achieving good overall safety. Campaigns
to change attitudes, checklists and active
use of the reporting system focus attention
on the individual’s responsibility for
thinking safety.
Hurtigruten ASA wants to increase the
degree of in-house reporting. This will
provide a better basis for adopting measures
to improve safety and ensure lead-
ing across the fleet. It recorded gratifying
progress in 2008.
The underlying statistics reveal a particularly
pleasing increase in reporting of improvement
proposals and near misses. Considerable
under-reporting is believed to exist in
these areas. The company will continue its
efforts to improve the level of reporting.
Hurtigruten asa 2008

26 social responsibility
Contributor to society
Hurtigruten has been a loyal servant along the Norwegian coast for more than 115 years. Twice a day
throughout the year, one of the 11 Hurtigruten ships berths in each of the 34 ports served between
Bergen and Kirkenes. As a reliable and efficient carrier of passengers and freight, the service is known
as “national coastal highway 1”. In addition to being an important part of Norway’s infrastructure, it
makes an important contribution to value creation along the Norwegian coast. Hurtigruten’s position
as both a transport company and an internationally recognised tourism player has spin-offs of great
economic significance for a number of coastal communities.
A social accounting for Hurtigruten was
presented in September 2008 by the Centre
for Innovation and Economics at the
Bodø Graduate School of Business. Commissioned
by a regional policy body covering
Finnmark, Troms, Nordland and
Nord-Trøndelag counties, this report
aimed to identify the economic and social
significance of Hurtigruten and its transport
service for local communities along
the coast. Extracts from the main points
in the report, which was written by Gisle
Solvoll, are presented below.
The ships and the Hurtigruten
product
Hurtigruten utilises 11 vessels with a total
capacity of 5 850 berths and calls at 34
ports along the coast between Bergen
and Kirkenes. The round trip from Bergen
to Kirkenes and back takes 11 days, and is
organised in such a way that ports visited
at night on the northbound voyage are
called at during the day when southbound
– and vice versa. Time in port varies from
place to place, and from the northbound
to the southbound route.
The Hurtigruten product can be split
into two principal products – round trips
and distance travel. Round-trip passengers
either take a whole round trip of 11
days, or half a trip of either five days southbound
or six days northbound. A distance
trip is taken over part of this route.
Production
Hurtigruten is a complex product, and
can be characterised as a combination
of coastal service for the carriage of passengers
and freight between Bergen and
Kirkenes, and an experience cruise along
the Norwegian coast with a range of
options for distance travelled and duration.
Apart from the two oldest, m/v Lofoten
and m/v Nordstjernan, the vessels carry
vehicles and function on certain stretches
as a car ferry. Hurtigruten also transports
substantial volumes of freight along the
coast, with Nor Lines as operator responsible
for marketing and sale. The calculated
weight of these consignments was
134 000 tonnes in 2007. Hurtigruten primarily
carries general cargo as well as bulk
consignments. Northbound freight primarily
comprises food and other consumer
goods, while southbound traffic is dominated
by fish. No other logistical system
can currently compare with Hurtigruten
for cargo quality, frequency and stable
sailing pattern.
The service carried 547 400 passengers
in its peak year of 2002. Since then, numbers
have shown a decline and flattening
out. The 2007 figure was just over 447 000,
including about 75 000 round-trip passengers.
Hurtigruten is a substantial tourism
player and accommodation provider.
It accounted in 2007 for 4.7 per cent of
guest nights at Norwegian hotels and just
over 11 per cent of foreign guest nights.
Emergency response function
Hurtigruten also has a role in the defence
of Norway related to the possible role of
its vessels as hospital/transport ships in
a crisis, in addition to the part they play
from the perspective of security policy and
exercise of sovereignty. The eight newest
Hurtigruten vessels are designed in such
a way that they can be used as transports
and hospital ships for the defence forces
in a crisis. They are outfitted for possible
use as floating hospitals, with cargo and
car decks convertible to operation theatres
and wards, and corridors and lifts
dimensioned for hospital beds.
In addition to the emergency response
role described in the report, Hurtigruten’s
around-the-clock sailings along the Norwegian
coast represent an important
resource for searches or other forms of
assistance in the event of accidents at sea.
Economics
More than 40 per cent of Hurtigruten’s
revenues come from round-trip passengers.
Totalling NOK 265 million in 2007,
public procurement by the government
accounted for a further 13.7 per cent of
revenues compared with 17.1 per cent
in 1998. Operating the Hurtigruten service
has shown a substantial loss in recent
years, which came to NOK 164 million in
2007.
Direct impact
yy Operating the service employs 1 615
people. These contribute 1 089 workyears,
including 1 010 in the maritime
part of the business.
yy Fifty-four per cent of employees live in
northern Norway, 25 per cent in Trøndelag,
14 per cent in western Norway
and seven per cent in southern and
eastern Norway. With 471 employees,
Nordland makes the largest contribution
of any county to the workforce.
yy Employees received about NOK 643
million* in pay (including social costs)
during 2007. The company paid NOK
25 million in payroll tax, and its personnel
paid NOK 128 million in taxes
Hurtigruten asa 2008

social responsibility
27
yy
to central, county and local government.
About 60 per cent of the taxes
paid to counties and local authorities
(35 per cent) go to northern Norway.
Hurtigruten ASA devotes some NOK
2 million a year to sponsoring organisations,
events and projects. It was a
sponsor and partner in 2007 of Tromsø
Sports Club, FK Mjølner, Narvik Slalom
Club, the Northern Lights festival in
Tromsø and the Winter Festival Week
in Narvik.
* The net pay scheme will reduce payroll costs
by about NOK 97 million in 2008.
Spin-offs from the operation
yy Direct procurement of goods and
services for Hurtigruten totalled NOK
1.4 billion in 2007. The three largest
items were fuel and lubricants (NOK
482 million), maritime operation –
tools, docking, service and so forth –
(NOK 290 million), and food and drink
(NOK 158 million).
yy Operations-related investment in soft-
ware, safety equipment and vessel
maintenance amounted to NOK 72.9
million in 2007, compared with NOK
59.9 million the year before and NOK
yy
yy
yy
78.8 million in 2005. Roughly 90 per
cent of deliveries come from Norwegian
suppliers.
Port and forwarding agent costs
amounted to NOK 76 million in 2007.
Hurtigruten accounts for over 60 per
cent of total port revenues for more
than half its destinations. That applies
particularly to those in northern Norway.
Calls by Hurtigruten employ
about 100 work-years in ports and terminals.
Turnover from land excursions, includ-
ing outings for passengers and
museum visits, represents a substantial
source of revenue for local attractions
and transport companies along
the coast. The report calculates that
the value of hotel, service and experience
sales along the coast as a direct
consequence of the Hurtigruten operation
was NOK 90 million in 2007. This
turnover generated about 180 workhours
in the accommodation and service
industry along the coast.
Round trips by Hurtigruten are com-
bined in many cases with air travel,
generating about 58 000 domestic
flights in 2007. These included roughly
15 000 to/from Kirkenes, and made a
big contribution to maintaining services
with large aircraft for that town. In
addition, round-trip passengers generated
about 50 000 flights between
Norway and foreign destinations.
Total consumption by Hurtigruten pas-
sengers in 2007 is estimated at more
than NOK 400 million over and above
the cost of the actual trip. These revenues
fall to companies along the
coast between Bergen and Kirkenes.
Hurtigruten ASA is an important player
in selling Norway in general as well as
its coast and northern Norway, particularly
to the domestic market but not
least abroad. The company devotes
about NOK 200 million per year to
such marketing. This advertisement for
Norway can also be expected to
attract tourists who do not necessarily
want to travel on Hurtigruten.
yy
yy
Hurtigruten asa 2008

28 Corporate governance
Corporate governance
The way the business is managed forms the basis for its financial
progress and development of the company’s branded products.
Good management and control mechanisms, open and honest
communication and equal treatment of all shareholders are important
cornerstones for public trust, positive value creation and a
good reputation.
Hurtigruten ASA has a responsibility to
conduct its business in a way which protects
the interests of its owners. At the
same time, it must take account of other
stakeholder groups. Employees as well
as customers, suppliers, lenders and the
authorities represent important target
groups for Hurtigruten ASA. Its overall
reputation and public trust in the company
are influenced by the governance of
its business and the way it communicates
with these stakeholders.
1. Reporting
On 26 February 2008, the board of directors
of Hurtigruten ASA adopted the
overarching management and control
mechanisms for governance of the business,
which will help to ensure that the
company observes its ethical and quality
obligations. These principles build on
the Norwegian code of practice for corporate
governance of 4 December 2007,
developed by the Norwegian Corporate
Governance Board (hereafter the code).
An overall account of the way Hurtigruten
ASA has complied with the code is provided
below. Any departures from the
code will be explained. The board and
executive management will jointly ensure
that the company’s attitudes and behaviour
are in conformity by enforcing compliance
with the principles in all parts of
the business.
In addition to being published every
year in the annual report, the company’s
principles for corporate governance will be
made available to external target groups
on its website at www.hurtigruten.com.
The following aspects are fundamental
to Hurtigruten ASA’s principles for corporate
governance.
Openness
The company’s external communication
will be based on openness about conditions
of significance for assessing its operations.
Independence
The board of directors will be independent
of the executive management. This
will ensure that decisions are taken on a
neutral basis and without conflicts of interest.
Equal treatment
All shareholders will be treated equally.
Management and control
Good management and control mechanisms
will contribute to predictability and
reduce risk for owners and other stakeholder
groups.
Hurtigruten ASA developed a values
base in 2008, and will revise this work in
2009. In that connection, management
principles which accord with the values
base will also be developed.
2. The business
The object of Hurtigruten ASA is defined
by its articles of association as the pursuit
of all forms of transport and tourism
activity, participation in businesses which
relate naturally to these, engagement in
shipping and offshore operations and participation
in other companies. The company
initiated an extensive restructuring
process in 2008, and has defined that its
operations will be concentrated in future
on the Hurtigruten service along the Norwegian
coast and explorer products. Further
details of the changes are provided in
this annual report.
3. Share capital and dividend
Equity
Consolidated equity at 31 December 2008
was NOK 1 163 million, or 16.8 per cent
of total capital. The company’s shareholders
resolved at an extraordinary general
meeting on 20 February 2009 to carry out
a private placement, and mandated the
board to implement a repair issue. Ahead
of these decisions, it was resolved to
reduce the share capital by lowering the
nominal value of each share from NOK
10 to NOK 1. A total of 313 850 000 new
shares with a nominal value of NOK 1 were
issued through the private placement. A
further 78 666 033 new shares with a nominal
value of NOK 1 will be issued through
the repair issue.
Dividend policy
Hurtigruten will seek to maintain a stable
level of dividend, although account will be
taken when determining the level of dividend
of the financial position of the company
and its need for financial freedom of
action in relation to its continued progress.
The company will focus on its ability to
generate growth in value-adjusted equity
per share. It does not wish to pay dividend
until an equity ratio has been achieved
which is regarded as necessary in relation
to the company’s risk profile, and which
gives the company sufficient financial
freedom of action to make the investment
required for its further development.
Board mandates
At the annual general meeting in 2008,
the board was mandated to buy the company’s
own shares. The overall holding of
own shares cannot exceed 10 per cent of
the company’s share capital. The purchase
price paid must be a minimum of NOK 10
and a maximum of NOK 150 per share with
a nominal value of NOK 10. In the event
of possible changes in the nominal value
of the shares, the maximum and minimum
prices to be paid must be adjusted
accordingly. The board is free to decide
how the purchase or sale of the company’s
own shares should be conducted. This
authority runs until the annual general
Hurtigruten asa 2008

Corporate governance
29
meeting in 2009, and replaces all existing
mandates on the purchase of the company’s
own shares. The board will request a
corresponding mandate from the annual
general meeting which runs until the
annual general meeting in 2010.
4. Equal treatment of
shareholders and
transactions with close
associates
Hurtigruten ASA has one share class, and
each share carries one vote at the general
meeting.
The board’s mandate to purchase the
company’s own shares leaves it free to
decide how possible purchase or sale of
such shares will be conducted. The board
will ensure that possible purchases or
sales are carried out in a way which takes
account of the need for equal treatment.
In the event of not immaterial transactions
between the company and shareholders,
directors, senior executives or
their close associates, the board will
ensure that an independent valuation is
made. This does not apply when the general
meeting is to consider matters pursuant
to the rules in the Norwegian Act on
Public Limited Companies. An independent
valuation will also be secured when
transactions are conducted between Hurtigruten
ASA and subsidiaries which have
minority interests.
The company has guidelines which
ensure that directors and senior executives
report to the board if they have significant
interests, directly or indirectly, in a
contract concluded by the company.
5. Free negotiability
Pursuant to the articles of association, the
company’s shares are freely negotiable.
6. General meeting
The financial calendar with the date of the
annual general meeting will be published
on Hurtigruten ASA’s website before the
end of the preceding calendar year.
Normally, the annual general meeting
will be held by the end of May at the latest.
Notice of the meeting with supporting
information is usually issued two weeks in
advance. This documentation will normally
be available at www.hurtigruten.com at
least 21 days before the date of the general
meeting. Weight is given to ensuring
that accompanying documents, including
the nomination committee’s recommendations
with reasons, contain all the
information required for shareholders to
form a view concerning every issue on the
agenda. According to the company’s articles
of association, the board can specify
in the notice that shareholders wishing to
attend the general meeting must notify
this to the company by a deadline which
cannot be earlier than five days before the
general meeting.
Notification of attendance can be
made in writing, by fax or over the internet.
The board wishes to facilitate the attendance
of as many shareholders as possible.
Shareholders unable to attend are
encouraged to appoint a proxy, and will
be able to specify a proxy for each item
on the agenda. The general meeting will
be attended by the directors, the members
of the nomination committee and the
auditor. The articles of association specify
that the general meeting is chaired by the
chair of the corporate assembly or, in this
person’s absence, by the deputy chair. No
routines have therefore been established
to ensure an independent chair of the
meeting.
The board and the chair of the general
meeting will make arrangements which
give the general meeting the opportunity
to vote on each individual candidate for
office on the company’s bodies.
7. Nomination committee
The articles of association specify that the
company will have a nomination committee
of three members, comprising the
chair of the corporate assembly and two
others chosen by the general meeting.
The chair of the corporate assembly chairs
the nomination committee. The articles
accordingly differ somewhat from the
code on this matter because the general
meeting does not directly elect all members
of the committee and its chair. Since
the company has a corporate assembly,
the most appropriate solution is felt to be
that the chair of the assembly also sits on
and chairs the nomination committee.
The nomination committee comprises
the following members:
Leif Teksum (chair), Sigve Stokland and
Elisabeth Aspaker. The committee’s composition
is intended to represent the interests
of shareholders in general. All its members
are independent of the board and the
executive management, and one is also
independent of the corporate assembly.
The nomination committee makes recommendations
on shareholder-elected
Hurtigruten asa 2008

30 Corporate governance
«The duties of the board are determined
by Norwegian law and embrace the overall
direction and control of the company.»
members and alternates of the corporate
assembly, on remuneration for members
of the corporate assembly, on shareholder-
elected directors and alternate
directors, and on remuneration for directors.
Reasons for these recommendations
must be provided to the general meeting
and corporate assembly, including relevant
information on the candidates and an
assessment of their independence.
Remuneration for members of the
nomination committee is determined by
the general meeting.
8. Corporate assembly and
board – composition and
independence
Hurtigruten ASA has a corporate assembly
of 12 members, eight of whom are
elected together with personal alternates
by the general meeting. Four members
with the number of alternates specified by
the regulations are elected by and from
among the employees. Broad representation
of the company’s shareholders will
be sought in the corporate assembly. The
board of directors comprises eight members,
including two with the number of
alternates specified by the regulations
selected from among the employees.
Directors, including the chair and
deputy chair, are elected by the corporate
assembly. Up to eight alternates are
chosen for those directors not selected
from among the employees. Directors
are elected for two-year terms, with the
exception specified below.
The following directors were elected by
the corporate assembly on 24 June 2008:
yy Per Arne Watle, chair
yy Marit Skog, deputy chair
yy Per Heidenreich, board member
yy Berit Kjøll, board member
yy Olaf Larsen, board member
yy Ingvild Myhre, board member
yy Anton Abrahamsen, worker board
member
yy Viviann Ekanger, worker board mem-
ber, replaced by Rigmor Sand on
5 January 2009 after the sale of the
ferries and fast ferry business.
In addition come two alternates:
yy Siv Sandvik (shareholder elected)
yy Ketil Danielsen (personal alternate for
Anton Abrahamsen)
Following consultations with the nomination
committees of the companies, the
six directors who represented the shareholders
until June 2008 were nominated
jointly by OVDS and TFDS to the board
of the company in connection with the
merger. In line with the merger plan, the
board was elected for an initial term of four
years. This variation from the code was justified
by the particular need for assurance
and continuity during the period immediately
after the merger.
On the motion of a shareholder, the
annual general meeting of 15 May 2008
unanimously voted to amend articles 5 and
7 of the company’s articles of association
so that the term of office for the shareholder-elected
directors, members of the
corporate assembly and members of the
nomination committee from the merger
date was reduced from four to two years.
All the shareholder-elected directors
regard themselves as independent of the
company’s executive management, significant
business partners and principal
shareholders. The board accordingly fulfils
the requirements for independence specified
in the code.
The expertise and capacity of the
directors is described in more detail in this
annual report. Shares owned by directors
are specified in a note to the accounts.
9. Work of the board
The duties of the board are determined
by Norwegian law and embrace the overall
direction and control of the company. At
regular intervals, the board discusses and
adapts the organisation and implementation
of its work. It also adopts a specific
meeting and work plan every year. This
plan covers strategy work, other development
issues and the exercise of control. The
board normally holds 11-13 meetings per
year. It appoints the president and CEO.
Rules of procedure for the board and
instructions for the chief executive have
been adopted, with particular emphasis on
the internal division of responsibilities and
duties. The board makes an annual assessment
of its work. Similarly, the executive
management will be assessed annually.
The board acts as a single body. It has
considered the use of sub-committees,
but has not found these to be appropriate.
This is primarily because all the directors
are regarded as independent of the
executive management and the principal
shareholders, and because the chief executive
is not a director.
10. Risk management and
internal control
The board is required to ensure that the
company has a good system of internal
control in relation to the provisions which
apply to the business. A review of the
company’s most important risk areas and
its internal control will be conducted annually
by the board. During 2009, the board
will compile a description of the principal
internal control elements related to financial
reporting, including the control environment,
risk assessment, control activities,
information and communication, and
follow-up.
11. Directors’ fees
The corporate assembly determines directors’
fees annually on the basis of a recommendation
from the nomination committee.
This remuneration will reflect the
responsibilities of directors, their expertise,
the resources they devote to the work
and the complexity of the business. Directors
do not receive performance-related
remuneration or options. Directors or
companies with which they have a relationship
will not normally undertake special
assignments for the company in addition
to their board appointment. Should
they nevertheless do so, the whole board
must be notified and must approve the
remuneration involved. All remuneration
to each director must be specified in the
annual report.
Fees paid to each director in 2009 are
specified in a note to the accounts.
12. Remuneration of senior
executives
The remuneration of the president and
CEO is determined by the board at a
meeting.
Guidelines for the remuneration of
other senior executives in the company
were approved by the annual general
meeting on 15 May 2008. No option programmes
or other schemes for allocating
shares to employees currently exist, other
than the opportunity they were given to
participate in the repair issue.
Remuneration of the chief executive
and other senior executives in 2008 is
specified in a note to the accounts.
13. Information and
communication
Guidelines for reporting financial and
other information from Hurtigruten ASA
Hurtigruten asa 2008

Corporate governance
31
are specified by the company’s information
policy. Hurtigruten ASA will have
an information policy which helps to
build and maintain trust among important
stakeholder groups. This policy will
be based on openness and equal treatment
of all shareholders. For the share
price to reflect the underlying value of
the company, all price-relevant information
must be made available to the market.
Hurtigruten ASA will accordingly
give weight to keeping shareholders
informed about the development of its
financial results, its prospects and other
conditions relevant to judging the company’s
position and to a correct market
pricing of the share. Weight is given to
providing information equally and simultaneously
to all players in the securities
market.
A continually updated financial calendar,
providing the dates of important
events such as the annual general meeting,
publication of interim reports, possible
dividend payment and so forth, will
be available to shareholders at www.oslobors.
no and on Hurtigruten’s website. The
financial calendar for 2009 is also included
in this annual report.
Open investor presentations are held in
connection with the publication of annual
and interim results for the company. These
presentations are available on the website.
An ongoing dialogue is also maintained
with analysts and investors, and
presentations are provided for them.
No special guidelines have been established
for the company’s contact with
shareholders outside the general meeting.
Efforts will be made to establish these.
14. Takeovers
In the event of a possible takeover bid for
the company, the guiding principle for the
board’s response will be equal treatment
of the shareholders.
The articles of association make no
provision for defence mechanisms against
share purchases, nor have other measures
been adopted which restrict the opportunity
to buy shares in the company. Nor will
the board seek, without particular grounds,
to prevent or hamper anyone who wishes
to present a bid for the company’s business
or shares. Possible use of share issue
mandates or the implementation of other
measures to prevent or hamper a bid must
be approved by the general meeting after
the bid has been announced.
In the event of a takeover bid, the
board will issue a recommendation with
reasons to the shareholders. The need to
obtain an independent valuation will also
be assessed.
Transactions which in reality involve the
disposal of the business will be submitted
to the corporate assembly for its decision.
15. Auditor
The auditor will present an annual audit
plan to the board.
The auditor always attends during
the board’s consideration of the annual
accounts, and briefs it on the accounts
and on any issues which particularly concern
the auditor, including possible disagreements
with the executive management.
The board meets annually with the
auditor to review a report from the latter
on the company’s accounting principles,
risk areas and internal control routines. At
least once a year, a meeting will be held
between the auditor and the board without
the presence of the chief executive or
other members of the executive management.
Written confirmation of his/her independence
and neutrality must be submitted
by the auditor to the board every year.
No special guidelines have been established
concerning the executive management’s
opportunities to use the auditor
for services other than legally-required
audit work. Nor has the board found it
necessary to ask the auditor to produce
an annual overview which specifies which
services have been delivered in addition
to legally-required auditing. An endeavour
will made to establish such guidelines.
The board will account to the general
meeting on the auditor’s remuneration,
broken down between legally-required
audit work and other specific assignments.
Remuneration for the auditor in 2008 is
specified in a note to the accounts.
Hurtigruten asa 2008

32 Shareholder information
Hurtigruten asa 2008

Shareholder information
33
Share capital and
shareholder information
Hurtigruten’s share capital at 31 December 2008 and 1 January 2009 was NOK 277 431 300, divided
between 27 743 130 shares with a nominal value of NOK 10 per share. The company’s extraordinary
general meeting on 20 February 2009 resolved to carry out a private placement with the largest shareholders
by issuing 313 850 000 new shares in the company. In addition, the board was mandated to
implement a repair issue of up to 170 million new shares.
The private placement in the company was
part of its financial restructuring plan. This
issue was offered to the company’s largest
shareholders and bondholders. A total of
313 850 000 new shares were offered and
subscribed at a subscription price of NOK 1.
In order to implement the issue, it was necessary
to reduce the nominal value of the
existing shares from NOK 10 to NOK 1. The
company’s general meeting resolved on 20
February 2009 that the share capital should
be reduced by NOK 249 688 170, from NOK
277 431 300 to NOK 27 743 130 by lowering
the nominal value of the share from NOK 10
to NOK 1. This reduction came into effect
with its registration in the Norwegian Register
of Business Enterprises on 2 March 2009,
and the amount of the reduction was transferred
to other equity for use as determined
by the general meeting.
Hurtigruten’s share capital before the
private placement was accordingly NOK
27 743 130, divided between 27 743 130
shares with a nominal value of NOK 1 each
fully paid and registered. The new shares
issued through the private placement
were registered in the Register of Business
Enterprises on 2 March 2009. After the private
placement, the company’s share capital
is NOK 341 593 130, divided between
341 593 130 shares with a nominal value of
NOK 1 each.
Pursuant to the mandate conferred by
the general meeting on 20 February 2009,
the board resolved to implement a repair
issue to raise the company’s share capital
by up to NOK 170 796 565 through the
issue of up to 170 796 565 new shares at a
subscription price of NOK 1, directed at
other shareholders and bondholders who
did not participate in the private placement.
In addition, the board resolved
to offer employees of the company the
opportunity to subscribe for shares on
equal terms. A total of 78 666 033 new
shares were subscribed and allocated.
After the registration of the repair
issue, the company’s share capital will
be NOK 420 259 163, divided between
420 259 163 shares with a nominal value of
NOK 1 each.
The shares are equal in every respect,
and no share carries a differential vote. All
the shares have been issued pursuant to
the Norwegian Public Limited Companies
Act. They are registered in the Norwegian
Central Securities Depository (VPS) with
the ISIN number NO 00 3325102. The registrar
is the securities service of DnB Nor
Bank ASA. The share is listed on the Oslo
Stock Exchange with the ticker HRG. The
company holds 293 372 of its own shares,
each with a nominal value of NOK 1. The
carrying amount at 31 December 2008 was
NOK 2 933 720.
Current mandates
Mandate to buy back shares
The annual general meeting of 15 May
2008 mandated the board to acquire the
company’s own shares. The following resolution
was adopted:
DEVELOPMENT OF HURTIGRUTEN SHARE PRICE AGAINST
OSLO STOCK EXCHANGE ALL-SHARE INDEX
OSE HRG
120
100
80
60
40
20
0
i. Pursuant to sections 9-4 and 9-5 of the
Public Limited Companies Act, the
board of Hurtigruten ASA is mandated
to acquire the company’s own shares
to a total nominal value of up to NOK
27 743 130, corresponding to 10 per
cent of the share capital. The overall
holding of own shares cannot exceed
10 per cent of the company’s share
capital. The shares can be purchased
in the market over or outside the stock
exchange.
ii. When acquiring shares in Hurtigruten
ASA, the purchase price paid must be
a minimum of NOK 10 and a maximum
of NOK 150 per share with a nominal
value of NOK 10. In the event of possible
changes to the nominal value of
the shares, the maximum and minimum
prices will be adjusted accordingly.
iii. The board is free to decide how the
purchase and sale of the company’s
own shares should be conducted.
iv. This mandate runs until the annual
general meeting in 2009.
March 2006 September 2007
December 2008
Hurtigruten asa 2008

34 Shareholder information
«Hurtigruten ASA seeks to have an information policy
which contributes to building up and maintaining
confidence among important stakeholder groups.»
Shareholder structure
According to the print-out from the VPS
on 31 December 2008, the company had
a total of 6 252 shareholders. Of these,
6 142 were Norwegians and 110 foreigners.
The 20 largest shareholders are listed
in the table on page 35.
Shareholder and dividend
policies
Hurtigruten ASA seeks to have an information
policy which contributes to building up
and maintaining confidence among important
stakeholder groups. This information
policy will be based on openness towards
and equal treatment of all shareholders.
Ensuring that the share price reflects the
underlying value in the company is conditional
on all price-relevant information
being made available to the market. Hurtigruten
will accordingly give emphasis
to keeping shareholders informed about
the development of results, prospects
and other relevant conditions for assessing
the company’s position and a correct
market pricing of the shares. Weight will
be given to ensuring that information is
the same and simultaneously available to
all players in the securities market. A continuously
updated financial calendar with
the dates of important events such as the
annual general meeting, the publication
of interim reports, the date for payment
of possible dividend and so forth will be
available to shareholders at www.oslobors.no
and the company’s own website.
Open investor presentations are held
in connection with the publication of the
company’s annual and interim results.
These presentations will also be available
on the company’s website. In addition,
continuous dialogue is maintained with
and presentations made to analysts and
investors.
The company wishes to manage shareholder
value in such a way that the return,
measured as the sum of dividend and the
rise in the share price, is as high as possible
over time. Pursuant to the requirement
of relevant legislation, the company
will treat all shareholders equally.
Dividend policy
Hurtigruten will seek to maintain a stable
level of dividend, although account will be
taken when determining the level of dividend
of the financial position of the company
and its need for financial freedom of
action in relation to its continued progress.
Share spread
At 31 December 2008
Interval, to-from No of shareholders Holding Percentage
1; 100 2 259 82 416 0.30%
101; 1 000 3 230 1 074 647 3.87%
1 001; 10 000 664 1 811 055 6.53%
10 001; 100 000 75 1 848 878 6.66%
100 001; 1 000 000 15 4 714 641 16.99%
1 000 001; 4 000 000 9 18 211 493 65.64%
Total 6 252 27 743 130 100.00%
20 largest shareholders
At 31 December 2008
Holding Percentage Name Nationality
3 778 967 13.6% Nordlandsbanken ASA NOR
2 869 413 10.3% Sparebanken Nord-Norge NOR
2 809 888 10.1% Sparebanken Narvik NOR
2 061 000 7.4% Skagen Vekst AS NOR
1 895 396 6.8% Heidenreich Enterprise L.P. USA
1 382 767 5.0% Narvik Kommune NOR
1 257 101 4.5% Troms Kraft Invest AS NOR
1 108 500 4.0% Verdipapirfondet Odin Norge NOR
1 048 461 3.8% Troms Fylkeskommune NOR
844 896 3.0% Narvik Energi AS NOR
660 307 2.4% Goldman Sachs Int. - Equity GBR
552 099 2.0% MP Pensjon NOR
525 800 1.9% Verdipapirfondet Odin Maritim NOR
315 979 1.1% BD Trading AS NOR
310 413 1.1% J.M.Hansen Invest AS NOR
293 372 1.0% Hurtigruten ASA NOR
249 197 0.9% Tromsø Kommune NOR
200 289 0.7% DnB NOR Bank ASA NOR
186 819 0.7% Norges Råfisklag NOR
169 932 0.6% Corrente AS NOR
The company will focus on its ability to
generate growth in value-adjusted equity
per share. It does not wish to pay dividend
until an equity ratio has been achieved
which is regarded as necessary in relation
to the company’s risk profile, and which
gives the company sufficient financial
freedom of action to make the investment
required for its further development.
The company has paid no dividend for
the past three years.
Shareholder agreement
The company is aware that a shareholder
agreement was concluded by Narvik local
authority, the Port Authority of Narvik,
Sparebanken Narvik, Ankenes Sparebank
(merged with Sparebanken Narvik in 2007),
Nordlandsbanken ASA and DnB Nor ASA
on 23 November 2005, and joined by Narvik
Energi AS in October 2007. This agreement
relates to the shares held by the parties
in Hurtigruten. These shareholders
owned 32.94 per cent of the company’s
shares at 31 December 2008. The agreement
commits its parties to:
yy cooperate on electing members of the
corporate assembly and board, so that
they retain their board and corporate
Hurtigruten asa 2008

Shareholder information
35
Historical development of share capital and number of shares
The table shows the development of share capital in Hurtigruten since 1 January 2004.
Date
Type of issue
No of shares
issued
Issue price
(NOK)
Nominal value
(NOK)
Change in
capital (NOK)
Total share
capital (NOK)
1 Jan 2004 11 673 853 10 116 738 530
1 Mar 2006 Merger 8 174 541 106 10 81 745 410 198 483 940
29 Nov 2007 Rights issue 7 894 736 38 10 78 947 360 277 431 300
20 Feb 2009 Capital reduction - - 1 249 688 170 27 743 130
2 Mar 2009 Private placement 313 850 000 1 1 313 850 000 341 593 130
Being reg Subsequent issues 78 666 033 1 1 78 666 033 420 259 163
assembly representation
yy attend each general meeting where
possible amendments are proposed to
article two of the articles of association
concerning the location of the company’s
business office and main administration,
etc, and to vote against any
such proposal
yy contribute to ensuring that the com-
pany does not create or acquire any
subsidiary conducting activities which
would conflict with the intentions of
the parties to the agreement with
regard to article two
yy participate, with the exception of Nar-
vik local authority and the Port Authority
of Narvik, with the proportionate
share (at the date of the merger in
2006) in possible share issues Hurtigruten
up to a maximum overall issue
amount of NOK 300 million.
This agreement runs until 31 December
2010. Its parties cannot transfer their shares
in Hurtigruten ASA unless the buyer subscribes
to the agreement if such a transfer
means that the share of the voting stock
held by the parties would fall below the
proportion held when the merger came
into effect. The agreement could influence
decisions taken by the general meeting
of Hurtigruten ASA during the period
it remains in force, and could also affect
the liquidity of the company’s shares.
Hurtigruten asa 2008

36 Board of directors of Hurtigruten ASA
Board of directors
Per Arne Watle
Chair
Marit Skog
Deputy chair
Per Heidenreich
Board member
Berit Kjøll
Board member
Watle (b. 1948) trained as
a teacher, has an MA from the
University of Trondheim and a
degree in business economics
from the Norwegian School
of Management. Now an advisor,
he was chief executive of
Widerøe Flyveselskap AS for 11
years until his retirement in the
summer of 2008. He was earlier
a vice president of Gilde Norge,
Tine Norske Meierier and head
of strategy at SAS. He began
his career as a teacher in Trondheim
before becoming head of
information at Sintef in 1977. He
was personal secretary to the
minister of transport in 1983-85.
Watle has been chair of Norsk
Rikstoto for four years and
Nationen for six. He has also
been chair of the Confederation
of Norwegian Enterprise (NHO).
He is the author of Oppdrift i
motvind – en personlig beretning
av ledelse (2004) and Den
rause lederen – på jakt etter
mening i arbeidslivet (2006) as
well as a large number of articles
and speeches, particularly
on value creation and management.
Watle is a Norwegian
citizen and resident at Lommedalen
in Bærum local authority,
Norway. He has no assignments
for Hurtigruten ASA other
than his board appointment.
Skog (b. 1964) received a
Master in Business Economics
from the business economics
school in Bodø in 1990, and
has additional education in
management, change processes,
operations and export
marketing. She is now vice
president finance for Harstad
Tidende Gruppen AS,
a north Norwegian media
group based in Harstad.
Skog worked as vice president
finance at Barlindhaug
AS for nine years, spent seven
years in various positions with
Sparebanken Nord-Norge,
and was a senior executive
officer with Nordland
county council for just over
two years. She has previously
served on various boards for
organisations, development
companies and companies.
At present, she holds some
directorships in small companies
and is becoming a director
of a number of Harstad
Tidende Gruppen’s subsidiaries.
Skog was elected to the
board of TFDS ASA in April
2005. She is a Norwegian citizen
and resident in Tromsø,
Norway. She has no assignments
for Hurtigruten ASA
other than her board appointment.
Heidenreich (b. 1944) is
head of Heidenreich Enterprise
LP, Connecticut, USA.
He has long experience from
shipping and oil, and is the
founder and former chair of
Heidmar Inc, a group which
currently controls more than
100 oil tankers. He was chair
of the Norwegian-American
Chamber of Commerce until
2007 and is a former member
of the board of the Norwegian
Seamen’s Church in New York.
Heidenreich is a US citizen
and resident in Connecticut,
USA. He has no assignments
for Hurtigruten ASA other
than his board appointment.
Kjøll (b. 1955) has degrees
in market economics and tourism,
and has taken advanced
management programmes
(AMP) at Insead and the Harvard
Business School. She
has broad experience from
management of companies
in change, with a strong focus
on customer/market orientation
and profitability. Kjøll has
previously been president
of Kilroy Travels AS, Tusen-
Fryd AS, Flytoget AS, Steen
og Strøm ASA, and was most
recently divisional vice president
of Telenor ASA. She has
broad boardroom experience,
and is currently a director of
SAS AB, Aker Holding AS and
Interoil Exploration & Production
ASA. Kjøll is a Norwegian
citizen and resident in Oslo,
Norway. She has no assignments
for Hurtigruten ASA
other than her board appointment.
Hurtigruten asa 2008

Board of directors of Hurtigruten ASA
37
Olaf Larsen
Board member
Ingvild Myhre
Board member
Anton Abrahamsen
Worker board member
Rigmor Sand
Worker board member
Larsen (b. 1947) is educated
as an engineer and
business economist. He has
been president and CEO of
Narvik Energi AS for the past
14 years, and has earlier experience
from ABB and from
various appointments with the
Troms and Nordland county
councils. He holds a number
of directorships, including
Kraftinor AS, Nordnorsk
Havkraft AS and Naturgass
Nord AS. Larsen is a Norwegian
citizen and resident
in Narvik. He has no assignments
for Hurtigruten ASA
other than his board appointment.
Myhre (b. 1957) has been
chief executive of Network
Noras AS/ID Gruppen, and
has earlier experience as a
director of the Norwegian
Red Cross and as president of
Telenor Mobil AS. She has an
electrical engineering degree
from the Norwegian Institute
of Technology (NTH). Mhyre
is a Norwegian citizen and
resident in Oslo, Norway. She
has no assignments for Hurtigruten
ASA other than her
board appointment.
Abrahamsen (b. 1969) is
a graduate of the Bergen
School for Cooks and Stewards.
He has also taken a
number of safety-related
courses. Since joining m/v
Kong Olav in 1985, he has
worked on most of the Hurtigruten
vessels belonging to
OVDS and has been chief
cook since March 2002. He is
currently hotel manager on
m/v Nordlys. He is a member
of the national council of the
Norwegian Seamen's Union.
Abrahamsen is a Norwegian
citizen and resident in Askøy
local authority, Norway. He
has no assignments for
Hurtig ruten ASA other than
his board appointment.
Sand (b. 1960) currently
works as a technical inspector
for Hurtigruten, a job she has
held with the company and
previously with TFDS since
1998. She graduated as a
ship’s engineer from the Tønsberg
Maritime College. Sand
is a Norwegian citizen and
resident in Tromsø, Norway.
She has no assignments for
Hurtigruten ASA other than
her board appointment.
Hurtigruten asa 2008

38 Management of Hurtigruten ASA
Management team
OLAV FJELL
Chief executive officer
Jens Kristian Johnsen
Deputy CEO/CFO
Leif Øverland
Product director
Trond Øverås
Marketing and PR director
Fjell (b. 1951) took up the
post of chief executive officer
of Hurtigruten ASA on 10
September 2007. He has previously
been chief executive
of Lindorff Group AB, Statoil
and Postbanken, executive
vice president in DnB and vice
president finance for Kongsberg
Våpenfabrikk. Mr Fjell
has held a number of directorships,
and took an MSc in
business economics at the
Norwegian School of Economics
and Business Administration
in 1975. He is a Norwegian
citizen and resident in
Aker local authority, Norway.
Johnsen (b. 1961) joined
TFDS in July 2003, and held
various positions in operations,
finance and accounting
before becoming chief
financial officer of Hurtigruten
Group in May 2006. Johnson
received a Master of Business
Economics from the Norwegian
School of Management
in 1987 and an MBA from the
University of Wisconsin in
1988. He worked for Sparebanken
Nord-Norge AS in
1988-95, primarily in the commercial
market and most
recently as head of the private
market in Tromsø. He was
president of the Bjørn AS construction
company in 1995-99
and spent three years in the
fishing industry, most recently
as CEO for Nordic Sea Holding
in 2001-03. Johnsen is a
Norwegian citizen and resident
in Tromsø, Norway.
Øverland (b. 1958) holds
the post of product director
after the restructuring of the
management team from 1
January 2009. He joined Hurtigruten
in 2006, and had overall
responsibility for the Hurtigruten
business area until 1
January 2009. He has broad
experience of tourism and
transport. After graduating
from the Academy of Commerce
in 1980, he spent nine
years in the hotel business,
including SAS International
Hotels. He also held leading
posts with Esselte, NSB
and Camera, and was most
recently president of Oslo
Sporvognsdrift AS. Øverland
also holds various directorships
related to tourism. He is
a Norwegian citizen and resident
in Oslo, Norway.
Øverås (b. 1963) holds
the post of marketing and
PR director after the restructuring
of the management
team from 1 January 2009.
He joined Hurtigruten in 2006
in 2006 as vice president for
travel. Until 1 January 2009, he
had overall responsibility for
the company’s explorer cruise
business in Greenland and
the Antarctic as well as the
cruise and accommodation
activities in Svalbard. Øverås
came from the post of president
of Spitsbergen Travel
AS, and has broad experience
from the travel trade and the
defence forces. He was educated
in the defence forces, in
addition to university college
studies of tourism. Øverås is
a Norwegian citizen and resident
in Tromsø, Norway.
Hurtigruten asa 2008

Management of Hurtigruten ASA
39
Hans Rood
Sales director
Glen Peter Hartridge
Head of pricing and
revenue management
Torkild Torkildsen
Director maritime techincal
operations
Ole Fredrik Hienn
Director legal affairs
Rood (b. 1956) has more
than 20 years of experience
from the international travel
trade, and was previously
president of Hurtigruten’s
US arm. He has experience
from KLM Royal Dutch Airlines,
Royal Caribbean Cruise
Lines, Cunard/Seaborn, Holland
American and Windstar
Cruises. Rood has been
an active participant in the
development of sales strategies,
brand building and
international sales methods,
and has gained recognition
in the tourist industry. He has
a master’s degree in international
relations from the University
of Amsterdam and an
MBA in tourist marketing from
New York University. Rood is a
Dutch citizen and resident in
Oslo, Norway.
Hartridge (b. 1972) joined
Hurtigruten in 2007 and has
previously been a department
manager and senior network
analyst with Air New Zealand
and a stockbroker on the
London Stock Exchange for
J P Morgan, a global investment
bank. He has a Bachelor
of Commerce in economics
from Otago University and a
diploma of tourism (advanced
business programme) from the
same university. Hartridge is a
New Zealand citizen and resident
in Tromsø, Norway.
Torkildsen (b. 1953) joined
the company in 1977. He has
been traffic manager, human
resources head, operations
management, vice president
local transport, vice president
shipping operations
and executive vice president
operations. As director maritime
technical operations, he
has overall responsibility for
Hurtigruten’s maritime activities
and technical operation.
Torkildsen has experience
from I M Skaugen/RCCL and
NNDC. He has also held a
number of directorships and
has been a member of the
central negotiating committee
for inland shipping since 1988.
Torkildsen is a Norwegian citizen
and resident in Tromsø,
Norway.
Hienn (b. 1952) was
appointed corporate lawyer
and vice president legal affairs
for the company in 2006, and
is now responsible as director
legal affairs for coordinating
support functions in human
resources, HSE, ICT, in-house
services and communication.
Hienn received a law degree
from the University of Bergen
in 1980 and has long experience
as a commercial lawyer.
He has been president
of Nikkel and Olivin AS, general
manager of Dagbladet
Fremover and administration
manager at LKAB. He has
held a number of directorships.
Hienn is a Norwegian
citizen and resident in Narvik,
Norway.
Hurtigruten asa 2008

40
Annual accounts
Hurtigruten asa 2008

annual accounts – CONTENTS
41
Directors’ report and financial statements 2008
Hurtigruten – group
43 Directors’ report
55 Income statement
56 Balance sheet
57 Cash flow statement
59 Notes to the accounts
Hurtigruten ASA – parent company
102 Income statement
103 Balance sheet
104 Cash flow statement
106 Notes to the accounts
119 Declaration by the board and the chief executive
120 Auditor’s report
121 Statement from the corporate assembly
Hurtigruten asa 2008

42 Directors’ report
Hurtigruten asa 2008

Directors’ report
43
Directors’ report 2008
Extensive restructuring
Hurtigruten ASA underwent an extensive restructuring in 2008. Persistent losses in recent years had
eaten into the company’s liquidity and capital adequacy, and it was impossible to continue the
business without making substantial changes. The improvement programme presented to the
company’s annual general meeting in May 2008 embraced four measures, to which a fifth was added
later. Several of these have now been implemented, while others are under way. Business operations
have been sold, the public procurement contract for the Hurtigruten service has been renegotiated
and new capital has been secured. Programmes to boost revenues and reduce costs are well under
way, and they are having a positive effect on operations. The extraordinary conditions which have
affected the company are reflected in the accounts for 2008. After substantial losses and impairments,
the outcome was a pre-tax loss of NOK 686 million.
The principal reasons for the big loss in
2008 were:
yy loss on the sale of the ferries and fast
ferry business, NOK 103 million
yy impairment of ships and goodwill,
NOK 281 million
yy provision for the restructuring pro-
gramme, NOK 30 million
yy rise in bunker costs from 2007, NOK
111 million
yy rise in finance costs, NOK 78 million.
Business and location
Hurtigruten conducts travel and transport
activities in Norway and abroad. Its head
office is located in Narvik, and the company
also has offices in Tromsø, Svalbard
and Finnsnes. In addition come sales offices
both in Norway and abroad. It was resolved
at the end of 2008 to dispose of the sales
offices in Oslo, Bergen, Bodø and Karlstad.
The principal business in 2008 was
the operation of the Hurtigruten service
along the Norwegian coast from Bergen
to Kirkenes and cruise operations in Svalbard,
Greenland and the Antarctic. Public
transport services were also provided in
Nordland, Troms and Finnmark counties,
both by sea (ferries and fast ferries) and on
land (buses). In addition, travel-oriented
activities such as travel agencies, tour
operations and hotel management were
pursued.
These activities were organised in three
business areas during 2008:
y y Hurtigruten is the company’s largest
business. With daily calls throughout
the year at 34 ports between Bergen
and Kirkenes, this service has a vital
significance for many local communities
as a carrier of passengers and
freight. It also ranks as one of Norway’s
most renowned tourist products, and
is positioned internationally as a
world-class cruise.
y y Explorer cruise embraces the company’s
involvement in explorer cruises as
well as year-round accommodation
activities and experience products in
Svalbard. This business concentrates
its experience cruises in Polar waters,
with the focus on three geographical
areas: Svalbard, Greenland and the
Antarctic. The company also offers
cruises from the Arctic and Antarctic
between seasons.
y y Public transport has comprised ferry
and fast ferry operations as well as the
bus business in Finnmark, Troms and
Nordland.
Operations not included in the three
business areas are grouped in other business.
These include the involvement in maritime
freight through a 50 per cent holding
in Nor Lines AS. In addition, the company
owns a limited portfolio of properties and is
involved in other operations associated primarily
with company-related activities. This
area also embraces the corporate management
as well as the travel agencies and the
hotel business in Bergen.
From January 2009, the company has
been reorganised. Its operations are concentrated
in one business area: Hurtigruten
Norwegian coast and explorer products.
The former group model has been terminated
and, as a smaller and more focused
company, Hurtigruten has organised its
operations on a functional basis.
This directors’ report will reflect the
restructuring which came into effect at 1
January 2009, in that activities which no
longer form part of the company’s core
business from that date have been classified
as discontinued business. In accordance
with IFRS 5, the whole public transport
business area, Bergenske Reisebyrå
AS, KS Offshore Tjeld and Nor Lines AS
have accordingly been classified as discontinued
business at 31 December 2008.
Strategic priority areas
Hurtigruten and explorer products
Hurtigruten’s vision is to offer real experiences
in unique waters. To realise that
vision, the company will continue its
highly regarded Hurtigruten service along
the Norwegian coast. This will be done in
a way which combines a world-class cruise
experience with a secure and reliable
transport service for the coastal population.
Based on the expertise built up by
the organisation and the vessels it controls,
Hurtigruten will also offer explorer
cruises in Polar waters.
By divesting its involvement in other
areas to concentrate operations on a single
business area, Hurtigruten has defined
Hurtigruten asa 2008

44 Directors’ report
the travel trade as its core business. Geographically,
it will concentrate on the Norwegian
coast, Svalbard, Greenland and
the Antarctic.
An important goal is to realise the
potential represented by the historic Hurtigruten
business, but tailored more to the
desire of modern people for experience
and participation. Outside the short summer
season, new and exciting experiences
have been developed along the Hurtigruten
route and combined with attractive
offers on land. This will contribute to a significantly
better utilisation of capacity on
the Hurtigruten vessels.
The principal focus will continue to
be on promoting the product outside
the summer season while simultaneously
maintaining continued high occupancy
rates during the summer months. Experiences
along the coast are at least as
great in the autumn, winter and spring.
The product will be customised, marketing
efforts intensified and more differentiated
pricing applied. This is being done
through the development of new markets
and by stepping up the marketing commitment
in existing market areas.
Product development means that
greater emphasis will be given to active
experiences both on board and on land,
based on lessons learnt from explorer
cruises in Svalbard, Greenland and the
Antarctic. The “exceptionally real” brand
platform will express the distinctive character
of the products and concepts on
offer. Experience from winter cruises with
a focus on the Northern Lights has been
good, and the “Hunting the Light” concept
will be further developed and the
marketing commitment strengthened.
To continue developing Hurtigruten’s
potential, particular emphasis will be given to:
y y market development - greater customer
knowledge, younger target
audiences, new markets, and new
sales and distribution channels
y y product development - active experiences,
shorter voyages, new winter
products and new destinations
y y modernisation of business processes,
with the emphasis on on-line solutions,
the internet and in-house efficiency
gains
y y optimisation of the vessel portfolio –
selling surplus tonnage and developing
the fleet in line with market
requirements and expectations.
As one of Norway’s leading tourist
products, Hurtigruten will be the driving
force – in close collaboration with
the travel trade and government agencies
– for developing Norwegian tourism
and foreign marketing of the country. That
includes efforts to increase the number of
direct air routes from abroad to coastal
destinations in Norway in order to exploit
the growth in the short-break market and
to make all Hurtigruten’s products along
the Norwegian coast accessible.
The commitment to explorer cruises
in Polar waters has become an important
business, with the potential for growth and
profitability. Hurtigruten is a clear market
leader in Svalbard and among the leaders
in the Antarctic. With the introduction of
the m/v Fram explorer ship in May 2007, it
has also established a new scale for experience
cruises around Greenland. The company
has the world’s largest fleet of vessels
specially tailored for cruising in Polar
waters. The explorer cruise business is an
important element in its vessel portfolio.
Based on an extensive and varied product
range, the position as a leader in experience
cruises in Polar waters will continue
to be developed towards an active, broad
and affluent international public with a generally
wider age range than has been typical
for the traditional Hurtigruten service.
The “exceptionally real” brand
platform will be further strengthened
through:
yy further development of the existing
product portfolio, and the development
of new products and destinations
which complement the existing
explorer cruise portfolio and the Hurtigruten
service
yy exploiting cross-sale opportunities
yy a stronger commitment to marketing
and brand-building, and a strengthening
of the sales organisation
yy a presence along the whole value
chain through the development of
logistics, destinations and excursions.
Health, safety and environmental considerations
will always be the top priority
for Hurtigruten. Its vessels operate in
demanding waters, and strict standards
are set for their quality and performance.
Qualified crew are also crucial for the ability
to offer passengers the necessary level
of safety. Precisely because Hurtigruten
operates in some of the world’s most
vulnerable areas, the company and its
employees accept a particular responsibility
for protecting the environment.
Restructuring plan
A four-point improvement programme
was introduced at the annual general
meeting on 15 May 2008 to make Hurtigruten
ASA a profitable company. This has
subsequently been expanded by adding
the financial restructuring plan as a fifth
point. Work is well under way, and continuing
with undiminished vigour.
1. Boost revenues – Black Belt improvement
programme: This yielded substantial
operating improvements during
2008. Hurtigruten Norwegian coast
has increased its revenues, with the
biggest growth achieved in onboard
spending and round-trip sales outside
the summer season.
2. Reduce debt: Disposal of non-core
operations.
The sale of such operations is intended to
reduce debt and focus greater attention
on the core business. The following disposals
have so far been implemented:
yy the hotels in Bergen
yy the ferry and fast ferry business
yy the travel agencies
yy the shares in Nor-Cargo Ltd, UK.
The shares in Hurtigruten Hotels
AS were sold in June 2008, yielding an
accounting gain of NOK 17 million.
The company’s ferry and fast ferry
business was sold in October 2008 to
Torghatten Nord AS, a wholly owned subsidiary
of Torghatten Trafikkselskap ASA.
This disposal did not include five fast ferries
with four associated service contracts
in Troms county, which will continue to be
operated by Hurtigruten until the contract
with Troms county council expires
on 31 December 2009. The sale price was
NOK 488 million, giving an accounting
loss of NOK 103 million which was recognised
in 2008. Closure took place on
5 January 2009, so that the balance sheet
effect will first appear in the first quarter
of 2009.
Hurtigruten contracted with VIA Travel
Norge AS in December 2008 to sell
the shares in Bergenske Reisebyrå AS,
which provides business and holiday/leisure
travel services in Bergen, Bodø and
Hurtigruten asa 2008

Directors’ report
45
Tromsø. The buyer is the franchiser for
the VIA chain, and owns and operates
a number of travel agencies. This contract
was conditional on approval by the
respective boards, buyer financing and
acceptance by the Norwegian competition
authorities. After the necessary conditions
had been fulfilled, the transaction
was closed on 23 February 2009. The
price paid for the shares was NOK 52 million,
with a corresponding liquidity effect
for Hurtigruten. An accounting gain in
the order of NOK 26 million will be recognised
in the first quarter of 2009.
Bring Logistics took over Nor-Cargo
Ltd from Det Stavangerske Dampskibsselskap
and Hurtigruten in October 2008.
This UK freight company has 60 employees
and offices in six British towns. This
disposal yielded a liquidity effect of NOK
12 million and a small accounting loss for
Hurtigruten.
3. Reduce costs – new cost-saving
programme
A detailed plan was drawn up in the fourth
quarter of 2008 to cut administrative and
sales costs in Hurtigruten ASA. An annual
reduction of NOK 150 million will take full
effect from 2010. The main elements are:
yy concentrating on Hurtigruten Norwe-
gian coast and explorer products
yy centralising functions and services
(marketing, administration, accounting
and invoicing)
yy a new booking system
yy restructuring the sales organisation to
achieve more sales and less administration
yy reducing the number of call centres
from eight to two global units, both
outsourced to low-cost countries.
These plans are intended to cut costs
in the following areas: payroll, marketing
and other administration.
The cost-saving programme is conditional
on all non-core activities being
divested and on the Black Belt improvement
programme being implemented
and successful as planned and forecasted.
It also assumes a successful introduction
of the company’s new Polar Global booking
system.
4. Public procurement contract –
amended deal in place
The Ministry of Transport and Communications
reached agreement with the company
on 27 October on new and higher
payments for public procurement of
maritime transport services on the Bergen-Kirkenes
coastal route. Hurtigruten
received NOK 125 million in December,
including NOK 59 million as 90 per cent
compensation for nitrogen oxide tax
paid in 2007 and the first half of 2008. In
addition, the annual payment has been
increased by NOK 66 million from 2008.
Under the revised agreement, payments
will be increased by NOK 88 million in all
for 2009. The general increase of NOK
66 million per year and 90 per cent compensation
for the nitrogen oxide cost will
persist as long as the contract remains in
force. NOK 7 million was recognised in
the fourth quarter of 2008 as compensation
for nitrogen oxide tax in the second
half. The company has also been given
the opportunity to take a Hurtigruten
vessel out of the service during the winter
season. These amendments are conditional
on approval by the Efta Surveillance
Authority (ESA). The ministry takes
the view that the changes do not conflict
with the rules on state aid. Should the ESA
nevertheless refuse to accept them, Hurtigruten
ASA will be required to repay such
sums as might be regarded as illegal support.
The ministry has begun the work of
defining criteria as the basis for issuing a
new invitation to tender for the public procurement
contract.
5. Financial restructuring
The banks accepted the company’s
restructuring plan on 3 February 2009, and
the plan was also approved by an extraordinary
general meeting on 20 February
2009. This scheme involves the following.
yy Provision of additional equity through
a private placement where the company’s
largest shareholders/bondholders
subscribed for NOK 314 million. A further
NOK 170 million will be sought
through a repair issue, when shareholders
and bondholders who were
not given the opportunity to participate
in the private placement as well
as the company’s employees will be
able to subscribe to new shares at the
same price as in the private placement.
yy Bridging finance of NOK 300 million
until the end of 2009.
yy A three-year instalment holiday for the
NOK 3.3 billion syndicated loan,
though with possible payments
through a cash sweep solution.
yy A three-year instalment holiday for the
bareboat charters with Kystruten KS/
KirBerg Shipping KS, though both
partnerships will also participate in the
cash sweep solution.
yy A three-year postponement in repay-
ing the NOK 150 million convertible
bond loan which matures in June 2009.
One year will be interest-free, and
interest is accumulated in the remaining
period. Bondholders will also be
given the opportunity to participate in
the share issues on the same terms as
shareholders by subscribing for half
the loan as equity and the other half as
a new bond loan with a term of 36
months in exchange for Hurtigruten
repurchasing the proportion of the
convertible bond loan held by those
who subscribe.
Financial risk
Risk management for the company is conducted
in accordance with guidelines
approved by the board. Overall principles
have been drawn up for such management,
covering guidelines for specific
areas such as currency, interest rate and
credit risk, the use of financial derivatives
and investment of surplus liquidity.
Market risk
The company has sales revenues and
liabilities in foreign currencies and is
exposed to currency risk with a number
of these. This risk is particularly relevant
for the euro, the US dollar and the pound
sterling. The company enters into forward
currency contracts to reduce the risk.
Changes in value are recognised on a continuous
basis against equity. The company’s
risk management policy is to hedge up
to 100 per cent of expected transactions
in euros and pounds sterling for 2009, and
65 per cent of the volume for 2010. Since
bunker prices are denominated in US dollars,
the company has a net outflow of this
currency. At 31 December 2008, forward
currency contracts had been concluded
to hedge 43 per cent of expected future
sales revenues in euros for 2009.
The company is also exposed to
changes in interest rates, since the bulk
Hurtigruten asa 2008

46 Directors’ report
of its debt has floating rates. Forty-four
per cent of its net interest-bearing debt is
hedged through interest swap and hedge
contracts. These contracts satisfy the
requirements for hedge accounting under
the IFRS, and value changes are corrected
against equity on a continuous basis.
In addition, the company is exposed to
risk relating to the development of bunker
prices. Its risk management policy is to
hedge 50 per cent of the bunker volume
for Hurtigruten Norwegian coast for the
second to fourth quarters of 2009 if the
forward price for IF40 falls below NOK 4
per litre. Should the forward price decline
below NOK 3.50 per litre, the remaining
volume will be hedged. At 31 December
2008, 50 per cent of the Hurtigruten service’s
bunker volume for the first quarter
was hedged at a price of NOK 5.63 per
litre for IF40. Hedge contracts were concluded
in March 2009 for 50 per cent of
Hurtigruten’s fuel volume for the second
and third quarters of 2009. Bunkers hedging
is assessed on a continuous basis.
Credit risk
The risk that business counterparts are
unable to meet their financial commitments
is regarded as small. Historically,
Hurtigruten has had a low level of bad
debts.
Liquidity risk
Liquidity in Hurtigruten at 31 December
2008 was unsatisfactory. Liquid assets
at that date totalled NOK 528 million
(NOK 363 million excluding restricted
funds) compared with NOK 1 014 million
a year earlier (NOK 827 million excluding
restricted funds). The change primarily
reflects the NOK 300 million share issue in
the fourth quarter of 2007, increased interest
rates and the loss on operations.
Since 31 December 2008, the company
has been provided with liquidity through
the sale of the ferries and fast ferry business
and the shares in Bergenske Reisebyrå
AS. It has also put in place the financial
restructuring detailed above as item
five in the restructuring plan, which will
secure the company’s liquidity requirements
during the current reorganisation
process.
Annual accounts
Hurtigruten ASA reports in accordance
with the International Financial Reporting
Standards (IFRS) approved for use in the
European Union.
On the basis of planned and implemented
divestments of activities in the
company, the whole public transport business
area, Bergenske Reisebyrå AS, KS
Offshore Tjeld and Nor Lines AS were
classified at 31 December 2008 as discontinued
business in accordance with IFRS 5.
Comparative figures in the income statement
for corresponding periods in 2007
have been restated in accordance with
the same principle. Assets and liabilities
related to these activities, as well as
the carrying amount and associated noncurrent
debt of the m/v Nordnorge Hurtigruten
vessel, are presented in accordance
with IFRS as assets held-for-sale at
the end of 2008. The disposal group classified
as held-for-sale includes both fixed
and current assets related to these activities.
Similarly, both non-current and current
liabilities are included within liabilities
of the disposal group classified as heldfor-sale.
Income statement
Operating revenues for the company’s
continued business totalled NOK 2 551
million in 2008, up by five per cent from
NOK 2 430 million the year before. This
increase primarily reflects increased pay-
Hurtigruten asa 2008

Directors’ report
47
ments from the government following the
renegotiation of the public procurement
contract for the Hurtigruten service. The
additional compensation recognised as
income in 2008 totalled NOK 132 million.
Own revenues for the Hurtigruten business
area rose by 3.2 per cent from 2007,
reflecting more round-trip passengers
– particularly in the first and fourth quarters
- and a higher average price per guest
night for distance passengers. Onboard
spending rose by nine per cent from 2007.
Operating revenues from the explorer
cruise business declined by almost 10
per cent from the year before, primarily
because the number of vessels in the Antarctic
was reduced from two to one in the
2008 autumn season.
Contract income accounted for NOK
418 million of overall operating revenues
in 2008, up by 57 per cent from the year
before. That relates to the government’s
purchase of transport services on the Bergen-Kirkenes
route. The rise also includes
NOK 52 million in compensation for 90 per
cent of the nitrogen oxide tax for 2007 as
part of a total additional payment of NOK
125 million following the renegotiation of
the public procurement contract.
Payroll and other operating costs for
the company were NOK 2 332 million as
against NOK 2 195 million in 2007, an
increase of 6.2 per cent. Viewed in isolation,
payroll costs showed a decline from
2007 because Hurtigruten was included
in the net pay scheme from 1 July 2007
and obtained the full-year effect in 2008.
Membership of this scheme yielded a saving
of NOK 48.6 million for Hurtigruten
in 2007 and a further NOK 45 million in
2008. Other operating costs rose, particularly
because of higher bunker costs. High
fuel prices for much of the year boosted
spending on bunkers by NOK 111 million
from 2007 for the Hurtigruten vessels
alone. However, inclusion of these ships in
the nitrogen oxide fund helped to reduce
the tax paid from NOK 60 million in 2007
to NOK 14 million, so that the net rise in
bunker costs was NOK 65 million. A provision
of NOK 30 million was also made
in 2008 for downsizing and restructuring,
while NOK 50 million was charged for the
Black Belt improvement programme.
Net other losses/gains/revenues were
positive at NOK 18 million related to the
sale of the hotel business in Bergen. The
net gain of NOK 23 million in 2007 related
primarily to the disposal of the m/v Narvik
and m/v Lyngen Hurtigruten vessels.
Operating profit before depreciation
and impairment (EBITDA) came to NOK
237 million as against NOK 258 million
in 2007, a decline of NOK 21 million. The
reasons for this reduction are complex,
and must be seen in relation to the comments
made above.
Depreciation and impairment charges
for the company came to NOK 528 million,
up by NOK 200 million from NOK
328 million in 2007. This increase reflects
impairment losses of NOK 231 million on
ships and goodwill in 2008.
The operating loss (EBIT) was NOK 291
million, compared with NOK 71 million in
2007.
Net finance costs were NOK 269 million,
compared with NOK 192 million the
year before. The increase of NOK 78 million
reflects a substantial rise in interest
rates.
The 2008 accounts show a pre-tax loss
for the continued business of NOK 550
million, as against NOK 254 million the
year before.
Tax expense for the continued business
was negative (tax income) at NOK
112 million, compared with NOK 61 million
in 2007.
The net loss for the continued business
was NOK 437 million as against NOK 193
million in 2007.
The pre-tax loss for discontinued business
was NOK 136 million, compared with
a profit of NOK 26 million in 2007. This
accounting item embraces the public
transport business, including ferries and
fast ferries and buses, as well as Bergenske
Reisebyrå AS, KS Offshore Tjeld and
Nor Lines AS. The 2008 figure includes
a provision for a loss of NOK 103 million
on the sale of the ferry and fast ferry business
and NOK 50 million in impairment
loss on fast ferry. The 2007 figure includes
a provision for a loss of NOK 59 million
on the public transport contract with
Troms county council. This provision was
increased by NOK 30 million in the second
quarter of 2008 because of a substantial
increase in bunker prices during the first
half of 2008. During the third quarter, NOK
20 million of the provision was reversed
because Troms county council resolved
not to exercise its option for 2010 as the
third and final option year.
Tax expense for the discontinued business
shows a tax income of NOK 117 million.
NOK 79 million of this income relates
to a reversal of tax expense recognised
earlier in connection with the sale of the
shares in Nor-Cargo Holding AS. The
shares were sold in 2004, and the sale was
considered to comply with the Norwegian
tax exemption model, which meant that
capital gain on the shares would be free
of tax. The Ofoten tax assessment office
decided in 2006 that the gain did not fall
within the exemption model, and was
thereby taxable. Hurtigruten accordingly
made a provision of NOK 79 million in
its 2006 accounts for tax on the gain. The
case went to the district court, where the
tax assessment office won. In November
2008, however, the court of appeal upheld
Hurtigruten’s claim that the gain was covered
by the exemption model. The tax
expense related to the gain has accordingly
been reversed in the 2008 accounts.
The government appealed the decision to
the Supreme Court’s appeals committee,
which resolved on 17 March 2009 that the
case will be considered by the court. The
tax expense for discontinued business was
NOK 7 million in 2007.
The net loss was NOK 457 million, compared
with NOK 174 million in 2007.
Cash flow
Cash flow from operations was NOK 94
million, compared with NOK 225 million
for 2007. The decline from the year before
primarily reflected higher interest charges,
the operating loss and changes in working
capital.
Cash flow from investment activities
was negative at NOK 156 million as against
a negative NOK 482 million in 2007. The
improvement from the year before relates
to an investment of NOK 500 million in
m/v Fram in 2007. Net cash flow from
investment activities in 2007 also included
the effect of selling the m/v Narvik and
m/v Lyngen ships in that year.
Cash flow from financing activities was
negative at NOK 402 million, compared
with a positive NOK 425 million in 2007.
The change from the year before reflects
higher net redemption of debt than in
2007 and the NOK 300 million share issue
in the fourth quarter of 2007.
Balance sheet and liquidity
The company’s fixed assets came to NOK
4 304 million at 31 December, compared
with NOK 6 146 million a year earlier. The
change relates to the reclassification of
operations to assets of the disposal group
Hurtigruten asa 2008

48 Directors’ report
classified as held-for-sale as well as impairment
of ships and goodwill.
Current assets at 31 December totalled
NOK 1 037 million, compared with NOK
1 568 million in 2007, largely because of
a reduction in liquid assets. Working capital
was reduced by NOK 3 283 million to a
negative NOK 2 987 million at 31 December.
This decline primarily reflects financial
covenants in the company’s credit agreements
related to liquidity, capital adequacy
and cash flow, which must be met at the
end of each quarter. At the date when the
accounts were presented, the company
did not have all the terms of the financial
restructuring in place. It was accordingly
unable to document at 31 December that
it would not be in breach of the covenants
during the next 12 months, and loans
related to these covenants have thereby
been reclassified from non-current to current
liabilities at 31 December 2008.
Liquid assets (including discontinued
business) totalled NOK 528 million at 31
December (NOK 363 million excluding
restricted funds), compared with NOK
1 014 million a year earlier (NOK 827 million
excluding restricted funds). The change
largely reflects the NOK 300 million share
issue in the fourth quarter of 2007.
Assets of the disposal group classified
as held-for-sale totalled NOK 1 592 million
at 31 December 2008.
The company had total non-current liabilities
of NOK 279 million at 31 December,
compared with NOK 4 666 million
a year earlier. This change relates to
redemption of debt and the reclassification
of that proportion of the company’s
non-current debt which will be in breach
of its financial covenants as current liabilities
at 31 December 2008.
Current liabilities totalled NOK 4 023
million, compared with NOK 1 273 million
a year earlier. The change primarily
reflects the reclassification of part of the
non-current debt as current liabilities.
The company had liabilities related to
assets of the disposal group classified as
held-for-sale of NOK 1 468 million at 31
December 2008.
The company’s equity at 31 December
2008 was NOK 1 163 million, compared
with NOK 1 775 million a year earlier. Its
equity ratio at the same date was 16.8
per cent as against 23 per cent at the end
of 2007. The company has a convertible
bond loan totalling NOK 150 million which
is treated as equity in relation to the company’s
loan covenants. When that figure is
included, the equity ratio at 31 December
was 18.9 per cent.
Events after the balance sheet date
Divestment of operations
The company reached agreement on 24
October 2008 on the sale of its ferry and
fast ferry business to Torghatten Nord AS,
with closure on 5 January 2009. The purchase
price was NOK 488 million. After
deducting mortgage debt partly taken
over by the buyer and partly redeemed
at closure, Hurtigruten received NOK 115
million in cash. The sale represented an
accounting loss for the company of about
NOK 103 million, which was recognised
in the accounts for the fourth quarter of
2008.
The company entered into a sales
agreement with VIA Travel Norge AS for
the shares in Bergenske Reisebyrå AS on
18 December 2008, with closure on 23
February 2009. The purchase price for the
shares was NOK 52 million, with is also the
liquidity effect for Hurtigruten ASA. The
sale will have an accounting effect in the
order of NOK 26 million, which will be recognised
in the accounts for the first quarter
of 2009.
Share issue
An extraordinary general meeting held
on 20 February 2009 approved a reduction
of NOK 250 million in the share capital
by reducing the nominal value of each
share from NOK 10 to NOK 1. The same
meeting approved a NOK 314 million private
placement through the issue of 314
million new shares. After registration of
the increase, the share capital is NOK
342 million divided between 342 million
shares. The board was also mandated by
the same meeting to decide on subsequent
share issues of up to NOK 170 million.
At its meeting of 2 March 2009, the
board resolved to implement subsequent
share issues directed at i) existing shareholders
at 22 December 2008 and ii) existing
holders of the company’s convertible
bond loan who did not participate in the
private placement, as well as iii) employees
of the company. The offer for the subsequent
issues ran from 9 March to 17.30
on 20 March 2009.
Financial restructuring
A supplement was agreed in February
2009 to the credit agreement of 22 September
2006 for the original amount of
NOK 3.3 billion to finance Hurtigruten
vessels. Under its terms, no instalments
will be paid on the loan from March 2009
to December 2011. The postponed instalments
will be repaid on a pro rata basis
together with the remaining instalments
which fall due for payment from March
2011. A cash sweep provision in the
revised agreement means that the company
undertakes from the first quarter of
2010 to apply all cash holdings in excess
of NOK 500 million at 31 March each year
to repaying the loan. A repayment made
pursuant to the cash sweep arrangement
can only be drawn down again under
the loan agreement by an amount corresponding
to 50 per cent of the repayment
made in the first quarter of 2010. A similar
right to draw down is not available for a
cash sweep repayment in the first quarter
of 2011.
An agreement has also been entered
into with Kystruten KS and KirBerg Shipping
AS which means that the repayment
element in the charterparties with these
two limited partnerships will not be paid
in the period to 31 December 2011, but
will be added to the instalments due to be
paid in 2012 and 2013, so that the original
payment plan will have been restored
by August 2013. The limited partnerships
will receive a share of possible payments
made under the cash sweep arrangements
with the banks described above,
proportionate to their share of the outstanding
debt. It has also been agreed
that the charter rates will be increased to
compensate for higher costs incurred by
the limited partnerships as a result of the
changes to the repayment structure. In
addition, Hurtigruten’s option to buy back
m/v Nordlys and m/v Richard With has
been terminated.
As part of the financial restructuring
plan, DnB Nor Bank ASA and Nordea Bank
Norge ASA have provided a drawing facility
with a credit limit of NOK 300 million.
This will function as a bridging loan in connection
with the current divestment processes
in the company, and will be repaid
when such sales are made. The loan drawn
down under the credit facility falls due in
its entirety on 15 January 2010.
The company has concluded an agreement
with the holders of the NOK 150 million
convertible bond loan to postpone
the redemption of the latter by at least 36
months, and to adjust the conversion rate
Hurtigruten asa 2008

Directors’ report
49
to accord with the mechanisms provided
for in the credit agreement. The convertible
loan will be interest-free from 1 January
2009 to 31 December 2009, and a
rate of seven per cent per annum will then
become payable when the convertible loan
is redeemed. As a alternative to retaining
their bonds on the revised terms described
above, the holders have been given the
right to require that these be redeemed/
repurchased. Redemption/re pur chase will
be accomplished by subscribing for new
shares at the subscription price for the private
placement to an amount corresponding
to 50 per cent of the nominal value of
the bonds held by the relevant holder, and
by allocating the remaining 50 per cent to
a new bond loan which will be issued by
the company in return for cash. The new
bond loan will run for 36 months from the
payment date, and will mature as a single
amount without instalments during its
term. This bond carries a coupon of 10 per
cent per annum, paid annually in arrears,
confers no conversion right, and will be
otherwise based on the standard terms set
by the Norwegian Trustee service. Bondholders
who opt for this alternative will be
given the right to claim the redemption or
repurchase of their bonds in the convertible
loan immediately, and at the latest
within 30 days after the new shares and
bond loan have been issued.
Other conditions
Hurtigruten ASA secured a credit facility
of NOK 100 million on 1 February 2009
from DNB Nor Bank. This was repaid on
26 February 2009 when, as part of the
financial restructuring, Hurtigruten ASA
reached agreement with DNB Nor Bank
and Nordea Bank Norge on a new drawing
facility of up to NOK 300 million as
described above.
Going concern assumption
The company was obliged to reclassify
non-current liabilities as current liabilities
on 31 December 2008 as a consequence
of its inability to affirm that it would not
breach its financial covenants during the
next 12 months because the refinancing
had not been finalised at that time.
Through the refinancing which has now
taken place, and which was approved by
the extraordinary general meeting of 20
February 2009, the company has built a
solid financial platform for further restructuring
work over the next three years. With
reference to this, it is confirmed that the
going concern assumption is realistic and
the accounts for 2008 have been prepared
on that basis.
Covering the net loss
The net loss for Hurtigruten ASA was NOK
403 464 000, which it is proposed to cover
with NOK 212 169 000 from other equity
and NOK 191 295 000 from the share premium
reserve. The company had no distributable
equity at 31 December 2008.
Hurtigruten Norwegian
coast and explorer products
business area
From 1 January, Hurtigruten Norwegian
coast and explorer products are the company’s
core activity and only business area.
Comments on fiscal 2008 are accordingly
presented on the basis of this division.
Hurtigruten Norwegian coast
Operating revenues for Hurtigruten Norwegian
coast, including wholly-owned
international distribution companies,
totalled NOK 2 139 million in 2008, compared
with NOK 1 933 million the year
before. This growth of almost 11 per cent
primarily reflected increased revenues
from the Norwegian government after the
Hurtigruten asa 2008

50 Directors’ report
renegotiation of the public procurement
contract. The additional payment for 2008
totalled NOK 125 million. NOK 7 million
was also recognised in the second half as
compensation for the nitrogen oxide tax.
Other contributions to the improvement
came from an increase in round-trip passengers,
higher average prices per guest
night for distance passengers, greater
onboard spending and chartering out m/v
Nordnorge.
Guest nights in the round-trip segment
totalled 626 513 as against 588
932 in 2007, an increase of almost five
per cent. The average price per guest
night declined from NOK 1 312 in 2007
to NOK 1 269. A conscious choice has
been made to use the price mechanism,
combined with a wider range of active
experiences, to attract a greater number
of cruise passengers in the winter season,
and this paid off well in 2008. The
number of guest nights in the round-trip
segment accordingly increased by 26 per
cent from the same period of the year
before in the first quarter and no less
than 60 per cent in the fourth quarter.
Occupancy declined somewhat in the
summer season. Efforts are now being
intensified to achieve year-round growth.
The number of guest nights in the distance
passenger segment declined by
1.6 per cent, from 418 376 in 2007 to
410 827. However, the average price per
distance passenger rose from NOK 755
to NOK 790.
While the number of guest nights in
Norway stagnated from 2007 to 2008,
Hurtigruten achieved a growth of five per
cent. Overall, the company now has an 11
per cent share of foreign guest days in the
country.
Operating costs before depreciation
and impairment totalled NOK 1 777 million,
compared with NOK 1 660 million in
2007. Crew represent a substantial proportion
of total operating costs for Hurtigruten.
They accounted for almost 36 per
cent of the total in 2008, compared with 39
per cent year before. This decline reflects
the net pay scheme for the safety crew element
on the vessels, which was extended
to Hurtigruten on 1 July 2007 and yielded
a reduction of NOK 48.6 million in that
year. A further reduction of NOK 45 million
was achieved in 2008 because of the
full-year effect. However, pay increases in
2008 and higher pension costs limited the
effect of net pay.
The high price of oil for much of 2008
also added to costs. For the Hurtigruten
service alone, this boosted spending on
bunkers by NOK 65 million compared with
the year before.
Expenses also increased as a result
of the introduction of the nitrogen oxide
tax, which added NOK 60 million to Hurtigruten’s
costs in 2007 and NOK 14 million
in 2008. The decline in 2008 reflected the
company’s inclusion in the nitrogen oxide
fund. In connection with the renegotiation
of the public procurement contract, Hurtigruten
has received compensation for 90
per cent of these costs. That represented
NOK 52 million in 2007 and NOK 14 million
in 2008.
Hurtigruten strengthened its sales and
marketing activities during 2008. That
boosted costs but made a positive contribution
to revenues. The figures show that
efforts made to market the service outside
the summer season are starting to pay off.
Operating profit before depreciation
and impairment (EBITDA) came to NOK
363 million, an improvement of just over
22 per cent from NOK 296 million from
2007.
Explorer products
Operating revenues for explorer products
totalled NOK 443 million as against
NOK 492 million in 2007. The decline is
partly attributable to the reduction in the
number of vessels in the Antarctic from
two in 2007 to one in the autumn of 2008.
Explorer cruises around Svalbard had
an occupancy of 96 per cent in 2008, compared
with 95 per cent the year before
when only one vessel was in operation. The
number of guest nights rose from 6 353 in
2007 to 13 237. This increase reflects the
return of m/v Polar Star to full operation
in 2008 after suffering an engine breakdown
at the start of the previous season,
which meant that it provided no cruises in
2007. The average price per guest night
was NOK 3 511 compared with NOK 3 176
the year before.
Occupancy for explorer cruises in the
Antarctic was 88.2 per cent as against 73.4
per cent in 2007. Guest nights declined
from 52 995 to 41 347 because only one
vessel – m/v Fram – was deployed in these
waters during the 2008 autumn season,
while two ships were used throughout
2007. The average price per guest night
rose from NOK 2 027 in 2007 to NOK
2 377.
M/v Fram had an occupancy of 81 per
cent for its second season of explorer
cruises around Greenland in 2008, compared
with 72.8 per cent the year before.
Guest nights rose from 24 364 in 2007 to
24 893, while the average price per guest
night declined from NOK 3 249 to NOK
3 133.
Operating costs before depreciation
and impairment totalled NOK 410 million,
compared with NOK 433 million in
2007. This decline reflects the reduction
in the number of vessels in the Antarctic
from two to one, but increased bunker
prices and higher expenses for the cruise
from the Arctic to the Antarctic pushed up
costs.
Operating profit before depreciation
and impairment came to NOK 34 million,
compared with NOK 59 million in 2007.
This decline largely reflects increased bunker
prices and cost developments related
to the Greenland operation and the Arctic-to-Antarctic
cruise.
Public transport
Classified in its entirety as “discontinued
business”
The whole public transport business has
been classified as held-for-sale. Ferry traffic
in Troms and Nordland as well as fast
ferry operations in Nordland were sold
to Torghatten Nord AS with effect from
5 January 2009. Four fast ferry services in
Troms, with the five associated vessels,
were excluded from the sale and will be
continued by Hurtigruten ASA until the
contract with Troms county council expires
on 31 December 2009.
Hurtigruten owns 71.3 per cent of AS
TIRB. The TIRB group was restructured in
2008 to merge its wholly owned Tromsbuss
AS, Ofotens Bilruter AS and AS
TIRB-Rutene bus companies into a single
company under the name Cominor AS.
Embracing 293 buses, 17 lorries and vans,
and 518 full-time employees at 31 December,
the bus business is held-for-sale.
The pre-tax loss for discontinued business
was NOK 152 million in 2008, compared
with a loss of NOK 15 million the
year before. Included in the 2008 figure
are a provision of NOK 103 million for
loss on the sale of the ferries and fast ferries
and NOK 50 million in impairment
loss on fast ferries. The 2007 accounts
included a provision of NOK 59 million
for loss on the public transport contract
with Troms county council related to the
Hurtigruten asa 2008

Directors’ report
51
operation of fast and county highway ferries.
NOK 20 million of this provision was
reversed in the third quarter of 2008 after
Troms county council resolved not to exercise
its option for 2010, the third and final
option year under the contract. A further
provision of NOK 30 million was made in
the second quarter of 2008 as a result of
increased bunker prices.
Operation of ferries and fast ferries
showed some decline in 2008 compared
with the year before. This reflected lower
activity as well high bunker and maintenance
costs. The pre-tax result for the
bus business improved from 2007, primarily
because of conversion to a defined
contribution pension plan which cut payroll
costs by NOK 15 million. Operations
were affected by adjusting the level of
activity to the staffing position, improved
cost control and increased revenues from
coach tours. The level of the public transport
contract with Troms county council
for fiscal 2008 remains to be finally clarified.
Other business
Hurtigruten is engaged in maritime freight
transport through its 50 per cent holding in
Nor Lines AS. The equity method is used to
incorporate this company in the accounts,
where it is classified as discontinued business.
Hurtigruten also owns a limited portfolio
of properties and is involved in other
operations related largely to its activities.
This business area also embraces the corporate
management, the hotel business in
Bergen sold in the second quarter of 2008,
and the travel agency business classified
under discontinued business.
Operating revenues for other business
came to NOK 32 million, compared
with NOK 63 million in 2007. This decline
relates to the divestment of the Hurtigruten
Hotels AS subsidiary in the second
quarter of 2008.
Operating costs were NOK 209 million
as against NOK 162 million the year
before. The increase reflects a provision of
NOK 30 million related to downsizing and
organisational changes as well as NOK
50 million for the Black Belt improvement
programme.
The operating loss before depreciation
and impairment (EBITDA) came to NOK
159 million, compared with NOK 98 million
in 2007.
Research and development activities
The company does not conduct any substantial
research and development activities.
Development work relates to ongoing
operational improvements, and is
organised under the extensive improvement
programme launched in 2008. This
includes information and communication
technology and product development.
Health, safety and the
environment
Hurtigruten places the greatest possible
emphasis on safety, and has the most
stringent procedures and routines to meet
the requirement for safety in day-to-day
operations.
The management’s focus on this area
is strong, and resulted during 2008 in
clear and binding targets for the company.
The company’s policy on safety and
the environment has been evaluated and
updated. HSE has been elevated to the
first item on the agenda at all management
meetings in the company. Everyone
must have defined relationship to HSE,
and to their personal performance level.
Regular reports are presented on defined
indicators to ensure that the company
can respond if developments move in an
undesirable direction.
The company complies with all requirements
for safe operation at sea, both
national and international, and seeks to
pay the same strong attention to safety
work in its land-based operations as it
does in the maritime business. Safety has
a natural place in the company’s Black
Belt improvement programme. Extensive
surveys conducted in 2008 have formed
the basis for a number of safety projects.
Measures identified through the various
projects are implemented on a continuous
basis. Particular attention is paid to safety
culture and attitudes.
Work on improving safety management
systems continued during 2008. The
goal is the most efficient and user-friendly
system possible to ensure a common platform
for document management and distribution
of governing documentation.
The document management system
is web-based, and allows the company
to document and process all safety work
electronically. Routines and procedures
have been standardised, but also made
vessel-specific.
An extensive and well-functioning
safety representative service has been
established by the company, with broad
representation from the organisation at
sea and on land. The working environment
and the safety representative scheme are
monitored in accordance with statutory
and regulatory requirements.
Sickness absence for seagoing personnel
was 9.5 per cent in the ferry and fast
ferry business and 7.8 per cent in Hurtigruten.
It averaged about 4.5 per cent
across the various departments of the
land-based organisation.
The key objectives in 2008 related
to reducing sickness absence, training
on and following up the inclusive workplace
(IA) agreement, following up individual
employees in line with new regulations,
and general prevention of sickness
absence. A number of Black Belt measures
have focused on reducing sickness
absence. Although purposeful efforts
have been devoted to this challenge in
2008, continuity is needed in future work.
Like all other transport and travel businesses,
Hurtigruten’s operations have a
direct impact on the natural environment.
The company is conscious of its responsibility
for safe operation and protection of
the environment, and will ensure that its
priorities yield an improvement in environmental
performance.
Hurtigruten’s business involves a substantial
consumption of fuel and consequent
emissions of greenhouse gases
such as carbon dioxide and nitrogen
oxides. On the other hand, its activities
make a substantial contribution to reducing
the number of vehicles on the roads.
The company continually pursues
improvement processes in order to reduce
its environmental impact, and is concerned
to identify measures which yield
real environmental gains. New methods
for reducing emissions of nitrous gases,
for instance, have been tried out in the
maritime business. All waste from company
operations is sorted and delivered
to a disposal company. Measures were
also adopted in 2008 to reduce energy
consumption on a number of the vessels.
Energy-saving propellers has also been
installed and are undergoing testing.
In consequence of its activities in Arctic
and Antarctic waters, the company is
a member of the International Association
of Antarctica Tour Operators (IAATO)
and the Association of Arctic Expedition
Cruise Operators (AECO). These membership
organisations work actively to con-
Hurtigruten asa 2008

52 Directors’ report
tribute to a safe and environmentally conscious
tourist industry in these unique and
vulnerable areas.
Hurtigruten’s operations in Svalbard,
through the Spitsbergen Travel subsidiary,
joined the WWF’s international Climate
Saver scheme at the start of 2008. As the
first Norwegian partner, and the first travel
company to join, Spitsbergen Travel has
committed to reaching specific targets.
These include becoming carbon neutral
by 2010.
Organisation
The company employed an average of 3
039 work-years in 2008, including 1 992
performed by permanent employees in
Norway – including subsidiaries. In addition,
839 work-years were performed during
the year by seasonal and temporary
personnel. The company’s foreign operations
employed 208 work-years in 2008,
with the German sales office as the largest
with 99 work-years.
Three business transfers were implemented
in 2008. Kystopplevelser AS and
Hurtigruten AB are now part of Hurtigruten
ASA, while the ICT business has
been outsourced to an external supplier.
That was paralleled by a downsizing process
which reduced employment in the
Norwegian land-based organisation by
80 work-years during January 2009. This
will have a gradual effect during the year.
These processes have been conducted
in accordance with applicable legislation
and agreements, and in close cooperation
with the unions.
Equal opportunities
Guidelines adopted by the company in
March 2006 for in-house work on equal
opportunities include the following provisions.
yy Women and men will be given equal
opportunities for employment, education,
work and professional development.
yy Increasing the number of women in
leading positions is considered desirable
through natural recruitment when
jobs fall vacant. If the company initiates
special training programmes,
including trainee schemes, taking the
gender balance into account will be
important.
yy Through its arrangements on leave of
absence, the company will seek to
give both parents an equal opportunity
to share child care.
yy The company will show zero tolerance
of bullying and sexual harassment.
yy Through active use of instruments/
measures and a focus on thinking
equal opportunities in all appropriate
circumstances, Hurtigruten will be a
company in which employees thrive
and feel that they all have the same
opportunities for personal growth and
development.
Work on promoting equal opportunities
for men and women is based on
the main agreement with the unions, the
Norwegian Equal Opportunities Act and
human resources policy in Hurtigruten.
Three of the six shareholder-elected
directors of Hurtigruten ASA are women,
corresponding to a female share of 50 per
cent.
In the Norwegian land-based organisation,
the executive management team
comprised eight men at 31 December
2008. The middle management level comprised
15 women and 16 men. The Hurtigruten
business area employed 252
women – including 84 managers – and 539
men, while the ferry and fast ferry business
had 73 female employees – including 13
managers – and 402 male.
Share capital and
shareholders
Hurtigruten ASA had 6 252 shareholders
at 31 December 2008. Of these, 109 were
foreigners. Shareholders owning more
than one per cent of the total number of
shares in Hurtigruten ASA owned a total
of 77.21 per cent of the shares.
The company’s share capital at 31
December 2008 and 1 January 2009 comprised
NOK 277 431 300 spread over
27 743 130 shares with a nominal value
of NOK 10. At the extraordinary general
meeting of the company on 20 February
2009, it was resolved to implement a private
placement with the largest shareholders
by issuing 313 850 000 new shares. The
board was also mandated to implement
subsequent issues totalling up to 170 million
shares and directed at existing shareholders
who did not participate in the private
placement, holders of the convertible
bond loan and the company’s employees.
In order to implement the private
placement, it was necessary to reduce
the nominal value of the share from NOK
10 to NOK 1. As part of the implementation
of the issue, the general meeting of
20 February 2009 resolved to reduce the
share capital by NOK 249 688 170, from
NOK 277 431 300 to NOK 27 743 130 by
reducing the nominal value of the share
from NOK 10 to NOK 1. The amount of
the reduction was transferred to a fund
which is to be applied as directed by
the general meeting pursuant to section
12, sub-section 1, paragraph 1, item 3 of
the Norwegian Public Limited Companies
Act. The capital reduction came into
effect on 2 March 2009 with its registration
in the Norwegian Register of Business
Enterprises, without preceding notification
of creditors. This was because the
company reported at the same time as the
announcement of the capital reduction
that the share capital had been increased
by a new issue of shares in return for payment,
so that the company’s undistributable
equity was at least as high as it had
been before the capital reduction.
Hurtigruten’s share capital before the
private placement was accordingly NOK
27 743 130 divided between 27 743 130
shares with a nominal value of NOK 1, fully
paid in and registered. Following the private
placement, it was NOK 341 593 130
divided between 341 593 130 shares with a
nominal value of NOK 1.
Subsequent issues to raise the share
capital further by up to NOK 170 million
are being implemented to be able to offer
shareholders, bondholders and employees
who were not invited to subscribe to
the private placement an opportunity to
subscribe to shares at the same subscription
price. The offer ran from 9 March 2009
to 17.30 on 20 March 2009.
The shares carry equal rights in every
respect, and no share confers an unequal
voting right. All the shares are issued pursuant
to the Norwegian Public Limited
Companies Act.
Corporate governance
Hurtigruten ASA has a duty to run its business
in a way which safeguards the interests
of its shareholders. At the same time,
it must take account of other stakeholders.
Hurtigruten ASA’s reputation and the
trust it enjoys in the wider community are
influenced by the way the business is managed
and how the company communicates
with stakeholders.
The board of Hurtigruten ASA
approved new overall management and
Hurtigruten asa 2008

Directors’ report
53
control mechanisms on 26 February 2008,
which will determine how the company
is managed and help it to fulfil its ethical
and quality obligations. These principles
build on the revised Norwegian code
of practice for corporate governance of 4
December 2007. See the detailed presentation
in this annual report.
Governing bodies
The company has a corporate assembly
with 12 members. They were elected at the
annual general meeting on 15 May 2008,
and will come up for re-election in 2010.
Through a resolution of the corporate
assembly on 24 June 2008, the following
were elected as directors:
yy Per Arne Watle, chair
yy Marit Skog, deputy chair
yy Per Heidenreich, director
yy Berit Kjøll, director
yy Olaf Larsen, director
yy Ingvild Myhre, director
yy Anton Abrahamsen, director (elected
by the employees)
yy Viviann Ekanger, director (elected by
the employees). Replaced by Rigmor
Sand on 5 January 2009 following the
divestment of the ferries and fast ferry
business
In addition come two alternates:
yy Siv Sandvik (shareholder-elected)
yy Ketil Danielsen (personal alternate for
Anton Abrahamsen)
Following consultations with the company’s
nomination committee, the six directors
who represented the shareholders
until June 2008 were selected jointly by
OVDS and TFDS to serve on the company’s
board in connection with the merger.
Pursuant to the merger plan, the board
was elected for an initial term of four
years.
Following a motion from a shareholder,
the annual general meeting of 15 May
2008 voted unanimously to amend articles
5 and 7 of the articles of association
so that the term of office for the shareholder-elected
directors, members of the
corporate assembly and members of the
nomination committee from the date of
the merger was reduced from four to two
years.
Outlook
Hurtigruten ASA is well under way with an
extensive restructuring to create a profitable
and sustainable business. This will be
concentrated on the Hurtigruten service
along the Norwegian coast and activities
which naturally relate to it.
Hurtigruten is a very strong brand
for tourists, which stands for real experiences
in magnificent natural settings. The
coastal population will find Hurtigruten
a good solution for local transport and a
freight carrier they can rely on.
The combination of a cruise-like tourist
product and an everyday workhorse
makes Hurtigruten special. It is this distinctive
product which the company wishes to
continue developing.
It is accordingly important to win
the public procurement contract for the
coastal service from Bergen to Kirkenes
when this is offered by competitive tender,
providing the terms are satisfactory
and provide scope for acceptable profitability.
The criteria for a new tender are
under preparation. No decision has been
taken on when the tendering process will
take place.
The contract with the government creates
a framework for the business but,
within this structure, provides space for
developing additional tourist products.
The company is committed both to giving
passengers more experiences on board
and to greater collaboration with tourism
activities on land. The winter product
“Hunting the Light” is a good example
of successful cooperation. Hurtigruten is
important for a number of tourism companies
along the Norwegian coast, which do
not have sales and marketing resources of
their own to attract long-distance guests.
It is desirable for Hurtigruten that the
new tender criteria for the public procurement
contract also take account of the
tourism industry by opening up for longer
stays in certain ports which have good
facilities for tourists.
The board is of the opinion that it will
take some time to achieve satisfactory
profitability for Hurtigruten. Substantial
structural changes remain to be made,
and the financial crisis increases uncertainty
concerning future occupancy and
revenues.
However, the financial platform which
has now been constructed provides a
good foundation for implementing the
rest of the programme which will create a
focused and profitable Hurtigruten company.
Restructuring will characterise the
whole of 2009 and part of 2010.
Narvik 17 March 2009
The board of directors of Hurtigruten ASA
Per Arne Watle Marit Skog Per Heidenreich Berit Kjøll
Chair Deputy chair Board member Board member
Olaf Larsen Ingvild Myhre Anton Abrahamsen Rigmor Sand Olav Fjell
Board member Board member Board member Board member Chief executive officer
Hurtigruten asa 2008

54 Annual accounts – group
Hurtigruten asa 2008

annual accounts – group
55
Hurtigruten – group
Consolidated income statement
(NOK 1 000) Note 2008 2007
Operating revenues 6, 24, 30, 36 2 551 440 2 429 830
Payroll cost 22, 26, 27, 34, 36 (788 959) (840 503)
Depreciation and impairment 7, 8, 9 (528 144) (328 465)
Other operating costs 8, 13, 27, 30, 34, 36 (1 543 138) (1 354 508)
Other (losses)/ gains - net 25 17 874 22 988
Operating profit/(loss) (290 927) (70 658)
Finance income 28, 30 140 941 134 970
Finance costs 8, 28, 30, 33 (410 434) (326 633)
Finance costs - net (269 493) (191 663)
Share of profit/(loss) of associates 10 10 670 8 053
Profit/(loss) before income tax on continued business (549 750) (254 268)
Income tax expense on continued business 29 112 491 61 024
Profit/(loss) for the year on continued business (437 259) (193 244)
Profit/(loss) before income tax on discontinued business 7 (136 443) 25 789
Income tax expense on discontinued business 7, 29, 34, 38 116 799 (6 532)
Profit/(loss) for the year (456 903) (173 987)
Attributable to:
Equity holders of the company (484 559) (210 673)
Minority interest 27 656 36 687
Earnings per share for profit attributable to the equity holders of the company during
the year (expressed in NOK per share)
- basic 31 (17.65) (9.79)
- diluted 31 (17.65) (9.79)
- continued business 31 (15.52) (12.12)
The notes on pages 59 to 100 are an integral part of these consolidated financial statements.
Hurtigruten asa 2008

56 Annual accounts – group
Hurtigruten – Group
Consolidated balance sheet as of 31 december
(NOK 1 000) Note 2008 2007
ASSETS
Fixed assets
Property, plant and equipment 8, 20 3 942 462 5 646 381
Intangible assets 9 196 396 339 681
Investments in associates 10 28 466 111 235
Deferred income tax assets 21 101 548 -
Derivative financial instruments 11, 12 - 6 715
Trade and other receivables 13, 22, 36 34 785 42 183
Total fixed assets 4 303 657 6 146 195
Current assets
Inventories 14 67 784 80 774
Trade and other receivables 11, 13, 36 482 415 432 040
Derivative financial instruments 11, 12 72 230 41 371
Cash and cash equivalents 11, 15 414 237 1 013 749
Total current assets 1 036 666 1 567 934
Assets of disposal group classified as held-for-sale 7 1 592 353 -
Total assets 6 932 676 7 714 129
EQUITY
Capital and reserves attributable to equity holders of the company
Paid-in equity 16 1 024 594 1 324 033
Other paid-in equity 18 11 628 11 665
Retained earnings/(uncovered loss) 17, 18 (89 414) 213 246
Sum of capital and reserves attributable to equity holders of the company 946 808 1 548 944
Minority interest in equity 216 245 226 479
Total equity 1 163 053 1 775 423
LIABILITIES
Non-current liabilities
Borrowings 11, 20 48 794 4 231 581
Derivative financial instruments 11, 12 58 007 -
Deferred income tax liabilities 21 39 783 248 397
Retirement benefit obligations 22 126 270 179 914
Provisions for other liabilities and charges 23 5 950 6 116
Total non-current liabilities 278 804 4 666 008
Current liabilities
Trade and payables 11, 19, 20, 36 505 074 824 344
Current income tax liabilities 29 16 023 14 298
Borrowings 20 3 371 188 350 045
Derivative financial instruments 11, 12 100 952 23 971
Provisions for other liabilities and charges 23 30 000 60 041
Total current liabilities 4 023 237 1 272 699
Liabilities of disposal group classified as held-for-sale 7 1 467 582 -
Total liabilities 5 769 623 5 938 707
Total equity and liabilities 6 932 676 7 714 129
The notes on pages 59 to 100 are an
integral part of these consolidated
financial statements.
Narvik 17 March 2009
The board of directors of Hurtigruten ASA
Per Arne Watle Marit Skog Per Heidenreich Berit Kjøll Olaf Larsen Ingvild Myhre Anton Abrahamsen Rigmor Sand Olav Fjell
Chair Deputy chair Board member Board member Board member Board member Board member Board member Chief executive
officer
Hurtigruten asa 2008

annual accounts – group
57
Hurtigruten – group
Consolidated statement of recognised income,
expense and adjustments
1 January to 31 December
(NOK 1 000) Note 2008 2007
Currency translation differences 17 (3 411) (4 630)
Cash flow hedges, net after tax 18 (118 184) 3 835
Actuarial gain/ loss on retirement benefit obligations (after tax) 17, 18, 22 4 331 9 412
Net income recognised directly in equity (117 264) 8 617
Profit/(loss) for the year (456 903) (173 987)
Total recognised income, expenses and adjustments (574 167) (165 370)
Attributable to:
Equity holders of the company (604 365) (195 758)
Minority interest 30 198 30 388
Total (574 167) (165 370)
The notes on pages 59 to 100 are an integral part of these consolidated financial statements.
Hurtigruten asa 2008

58 Annual accounts – group
Hurtigruten – GROUP
Consolidated cash flow statement
(NOK 1 000) Note 2008 2007
Cash flows from operating activities
Profit/(loss) for the year (456 903) (173 987)
Adjusted for:
Tax expense on continued and discontinued business 29 (229 290) (54 492)
Depreciation and impairment 7, 8, 9 738 997 454 112
Other losses/gains – net 25 53 533 30 167
Net adjustments on financial assets through income statement 19 769 (28 903)
Interest expenses 28 340 927 349 311
Share profit/loss associates 7, 10 (13 645) (29 580)
Difference between expensed pension and payments 5 042 11 155
Change in working capital:
Trade debtors (156 562) 59 619
Trade creditors (147 434) 118 264
Other accounts receivable and other current liabilities 305 997 (155 679)
Cash flow from operations 460 432 579 987
Interest paid (352 167) (340 917)
Income tax paid (14 298) (13 831)
Net cash flow from operating activities 93 966 225 239
Cash flows from investing activities
Purchases of property, plant and equipment (PPE) 8, 9 (227 037) (763 304)
Proceeds from sale of PPE 8, 9 28 506 211 877
Proceeds from sale of shares 29 000 6 669
Net liquid assets from purchase and sale of businesses (4 780) (4 058)
Net change in other investments and debtors (3 402) 49 504
Change in restricted funds 21 262 17 647
Net cash used in investing activities (156 451) (481 665)
Cash flows from financing activities
Proceeds from issuance of ordinary shares 16 - 278 419
Proceeds from borrowings 20 132 000 568 000
Repayments of borrowings 20 (502 396) (417 881)
Dividend paid to minority interests (31 600) (3 110)
Net cash used in financing activities (401 996) 425 428
Net (decrease)/ increase in cash, cash equivalents and bank overdrafts (464 481) 169 001
Cash, cash equivalents and bank overdrafts at 1 January 15 827 039 658 038
Cash, cash equivalents and bank overdrafts at 31 December 15 362 558 827 039
The notes on pages 59 to 100 are an integral part of these consolidated financial statements.
Hurtigruten asa 2008

annual accounts – group
59
Hurtigruten asa – group
Notes to the accounts
Note 1
General information
The Ofotens og Vesteraalens Dampskibsselskab
ASA and Troms Fylkes Dampskibs selskap
ASA companies merged with effect from
1 March 2006, with Ofotens og Vesteraalens
Dampskibsselskap ASA as the acquiring
company. The merged company was named
Hurtigruten Group ASA, later changed to
Hurtigruten ASA.
Hurtigruten ASA (‘the company’) and
its subsidiaries (together ‘the group’) were
organised in three business segments in 2008.
These segments were Hurtigruten Norwegian
coast, explorer cruise and public transport.
This model has now been phased out as a
result of the group restructuring, with public
transport divested. Profit and loss from the latter
segment has therefore been presented as
discontinued business in these consolidated
accounts. The group is set to focus on the
Hurtigruten and explorer cruise segments in
the future. This reorganisation aims to improve
the operational and strategic alignment of
Hurtigruten along the Norwegian coast and
the explorer cruise segment. The company
is a public limited company domiciled in
Norway, with its registered office in Narvik. Its
primary listing is on the Oslo Stock Exchange.
These consolidated financial statements were
authorised for issue by the board of directors
on 17 March 2009.
Note 2
Summary of significant
accounting policies
The principal accounting policies applied in
the preparation of these consolidated financial
statements are set out below. Unless otherwise
stated, these policies have been consistently
applied to all the years presented.
2.1 Basis of preparation
The consolidated financial statements of
Hurtigruten ASA have been prepared in
accordance with the International Financial
Reporting Standards (IFRS), which have been
adopted by the EU.
They have been prepared under the historical
cost convention, as modified by the revaluation
of land and buildings, available-for-sale
financial assets, and financial assets and financial
liabilities (including derivative instruments)
at fair value through profit or loss.
Preparation of financial statements in
conformity with the IFRS requires the use of
certain critical accounting estimates. It also
requires management to exercise its judgement
in the process of applying the group’s
accounting policies. The areas involving a
higher degree of judgement or complexity,
or areas where assumptions and estimates are
significant to the consolidated financial statements,
are disclosed in note 4.
(a) Interpretations effective in 2008
IFRIC 14, IAS 19 – The limit on a defined benefit
asset, minimum funding requirements
and their interaction – provides guidance on
assessing the limits in IAS 19 on the amount
of the surplus which can be recognised as an
asset. It also explains how the pension asset
or liability may be affected by a statutory or
contractual minimum funding requirement.
This interpretation has no impact on the
group’s financial statements, since the group
has a pension deficit and is not subject to any
minimum funding requirements.
IFRIC 11, IFRS 2 – Group and treasury share
transactions – provides guidance on whether
share-based transactions involving treasury
shares or group entities should be accounted
for as equity-settled or cash-settled sharebased
payment transactions in the standalone
accounts of parent company and group
companies. This interpretation has no impact
on the consolidated financial statements.
(b) Standards and amendments adopted
early by the group
The following standards, amendments and
interpretations to published standards are
mandatory for accounting periods beginning
on or after 1 January 2009, but the group has
decided not to adopt them early:
y y IFRS 8 Operating segments, replaces IAS
14, segment reporting, and aligns segment
reporting with the requirements of the
FASB standard SFAS 131, disclosures about
segments of an enterprise and related
information. The new standard requires a
“management approach”, whereby segment
information is presented on the same
basis as that used for internal reporting purposes.
This has resulted in an increase in the
number of reportable segments presented.
In addition, the segments are reported in a
manner which is more consistent with the
internal reporting provided to the chief
operating decision-maker. Hurtigruten will
adjust its reporting to the organisation in
2009. The new reporting format has not
been finally resolved at present, but will be
agreed and implemented by the time the
interim report for the first quarter of 2009
is presented.
yy IAS 1 (revised), Presentation of financial
statements (effective from 1 January 2009).
The revised standard will prohibit the presentation
of income and expense items
(non-owner changes in equity) in the statement
of changes in equity, requiring nonowner
changes in equity to be presented
separately from owner changes in equity.
All non-owner changes in equity will have
to be shown in a performance statement,
but entities can choose whether to present
one performance statement (the statement
of comprehensive income) or two
(the income statement and the statement
of comprehensive income). Where entities
restate or reclassify comparative information,
they will be required to present a
restated balance sheet as at the beginning
of the comparative period in addition to
the current requirement to present balance
sheets at the end of the current and comparative
periods. The group will apply IAS
1 (revised) from 1 January 2009. It is likely
that both the income statement and the
statement of comprehensive income will
be presented as performance statements.
yy IFRS 2 (amendment), Share-based pay-
ment (effective from 1 January 2009). The
amended standard deals with vesting conditions
and cancellations. It clarifies that
vesting conditions are service and performance
conditions only. Other features
of a share-based payment are not vesting
conditions. As such, these features would
need to be included in the grant date at
fair value for transactions with employees
and others providing similar services.
In other words, these features would not
affect the number of awards expected
to vest or the valuation thereof subsequent
to the grant date. All cancellations,
whether by the entity or by other parties,
should receive the same accounting treatment.
The group will apply IFRS 2 (amendment)
from 1 January 2009, but this is not
expected to have a material impact on the
consolidated financial statements.
yy IFRS 1 (amendment), First time adoption of
IFRS og IAS 27 (amendment), Consolidated
and separate financial statements (effective
from 1 January 2009). The amended standards
require entities to classify puttable
financial instruments and instruments, or
components of instruments, which impose
an obligation on the entity to deliver to
another party a pro rata share of the net
assets of the entity only on liquidation as
equity, provided the financial instruments
have particular features and meet specific
conditions. The group will apply IAS
32 and IAS 1 (amendment) from 1 January
2009, but this is not expected to have any
significant impact on the consolidated
financial statements.
yy IAS 27 (revised), Consolidated and sepa-
rate financial statements, (effective from 1
July 2009). The revised standard requires
the effects of all transactions with noncontrolling
interests to be recorded in
equity if there is no change in control and
these transactions will no longer result in
goodwill or gains and losses. The standard
also specifies the accounting when control
is lost. Any remaining interest in the entity
is re-measured to fair value and a gain or
loss recognised in profit or loss. The group
will apply IAS 27 (revised) prospectively to
transactions with non-controlling interests
from 1 January 2010.
Hurtigruten asa 2008

60 Annual accounts – group
yy IFRS 3 (revised), Business combinations
(effective from 1 July 2009). The revised
standard continues to apply the acquisition
method to business combinations,
with some significant changes. For example,
all payments to purchase a business
are to be recorded at fair value at the
acquisition date, with contingent payments
classified as debt subsequently remeasured
through the income statement.
A choice can be made on an acquisitionby-acquisition
basis to measure the noncontrolling
interest in the acquiree either
at fair vale or at the non-controlling interest’s
proportionate share of the acquiree’s
net assets. All acquisition-related costs
should be expensed. The group will apply
IFRS 3 (revised) prospectively to all business
combinations from 1 January 2010.
yy IFRS 5 (amendment), Non-current assets
held-for-sale and discontinued operations
(and consequential amendment to IFRS 1,
first-time adoption) (effective from 1 July
2009). The amendment is part of the IASB’s
annual improvement project published in
May 2008. It clarifies that all of a subsidiary's
assets and liabilities are classified as
held for sale if a partial disposal sale plan
results in loss of control, and relevant disclosure
should be made for this subsidiary
if the definition of a discontinued operation
is met. A consequential amendment
to IFRS 1 states that these amendments
are applied prospectively from the date
of transition to the IFRS. The group will
apply IFRS 5 (amendment) prospectively
to all partial disposals of subsidiaries from
1 January 2010.
yy IAS 23 (amendment), borrowing costs
(effective from 1 January 2009). The
amendment is part of the IASB’s annual
improvement project published in May
2008. The definition of borrowing costs has
been amended so that interest expense
is calculated using the effective interest
method defined in IAS 39, financial instruments:
recognition and measurement.
This eliminates the inconsistency in terms
between IAS 39 and IAS 23. The group will
apply IAS 23 (amendment) prospectively
to the capitalisation of borrowing costs on
qualifying assets from 1 January 2009.
yy IAS 28 (amendment), investments in asso-
ciates (and consequential amendments to
IAS 32, financial instruments: presentation,
and IFRS 7, financial instruments: disclosures)
(effective from 1 January 2009). The
amendment is part of the IASB’s annual
improvement project published in May
2008. An investment in an associate is
treated as a single asset for the purposes
of impairment testing, and any impairment
loss is not allocated to specific assets
included within the investment, for example,
goodwill. Reversals of impairment are
recorded as an adjustment to the investment
balance to the extent that the recoverable
amount of the associate increases.
The group will apply IAS 28 (amendment)
to impairment tests related to investment
in subsidiaries and any related impairment
losses from 1 January 2009.
yy IAS 36 (amendment), impairment of
assets (effective from 1 January 2009). The
amendment is part of the IASB’s annual
improvement project published in May
2008. Where fair value less costs to sell is
calculated on the basis of discounted cash
flows, disclosures equivalent to those for
value-in-use calculation should be made.
The group will apply IAS 28 (amendment)
and provide the required disclosure where
applicable for impairment tests from
1 January 2009.
yy IAS 38 (amendment), intangible assets
(effective from 1 January 2009). The
amendment is part of the IASB’s annual
improvement project published in May
2008. A prepayment may only be recognised
in the event that payment has been
made in advance of obtaining right of
access to goods or receipt of services. The
group will apply IAS 38 (amendment) from
1 January 2009.
yy IAS 19 (endret), Employee benefits (ikraft-
tredelse fra 1 January 2009). IAS 19
(amendment), employee benefits (effective
from 1 January 2009). The amendment
is part of the IASB’s annual improvement
project published in May 2008.
• It clarifies that a plan amendment which
results in a change in the extent to which
benefit promises are affected by future
salary increases is a curtailment, while
an amendment which changes benefits
attributable to past service gives
rise to a negative past service cost if
it results in a reduction in the present
value of the defined benefit obligation.
• The definition of return on plan assets
has been amended to state that plan
administration costs are deducted in
the calculation of return on plan assets
only to the extent that such costs have
been excluded from the measurement
of the defined benefit obligation.
• The distinction between short-term
and long-term employee benefits will
be based on whether benefits are due
to be settled within or after 12 months
of employee service being rendered.
• IAS 37, provisions, contingent liabilities
and contingent assets, requires contingent
liabilities to be disclosed, not recognised.
IAS 19 has been amended to be consistent.
The group will apply IAS 19 (amendment) from
1 January 2009.
yy IAS 39 (amendment), financial instruments:
recognition and measurement (effective
from 1 January 2009). The amendment
is part of the IASB’s annual improvement
project published in May 2008.
• It clarifies that movements into and out of
the fair value through profit or loss category
is possible where a derivative commences
or ceases to qualify as a hedging instrument
in cash flow or net investment hedge.
• The definition of financial asset or financial
liability at fair value through profit or
loss as it relates to items held for trading is
also amended. This clarifies that a financial
asset or liability which is part of a portfolio
of financial instruments managed together
with evidence of an actual recent pattern
of short-term profit-taking is included
in such a portfolio on initial recognition.
• The current guidance on designating and
documenting hedges states that a hedging
instrument needs to involve a party
external to the reporting entity, and cites
a segment as an example of a reporting
entity. This means that, in order for hedge
accounting to be applied at segment level,
the requirements for hedge accounting
must currently be met by the applicable
segment. The amendment removes this
requirement, so that the guidelines are
consistent with IFRS 8, operating segments,
which requires disclosure for segments to
be based on information reported to the
chief operating decision-maker. For segment
reporting purposes at present, each
subsidiary designates and documents
contracts with group treasury as fair value
or cash flow hedges, so that the hedges
are reflected in the segment to which the
hedged items relate. This is consistent with
the information viewed by the chief operating
decision-maker. After the amendment
is effective, the hedge will continue
to be reflected in the segment to which
the hedged items relate (and information
provided to the chief operating decisionmaker)
but the group will not formally document
and test this hedging relationship.
• When re-measuring the carrying amount
of a debt instrument on cessation of fair
value hedge accounting, the amendment
clarifies that a revised effective
interest rate (calculated at the date fair
value hedge accounting ceases) is used.
The group will apply IAS 39 (amendment) from
1 January 2009. It is not expected to have an
impact on the consolidated income statement.
yy IAS 1 (amendment), presentation of finan-
cial statements (effective from 1 January
2009). The amendment is part of the IASB’s
annual improvement project published in
May 2008. The amendment clarifies that
some rather than all financial assets and
liabilities classified as held for trading in
accordance with IAS 39, financial instruments:
recognition and measurement, are
examples of current assets and liabilities
respectively. The group will apply IAS 39
(amendment) from 1 January 2009. It is not
expected to have an impact on the consolidated
financial statements.
yy A number of minor amendments have
been made to IFRS 7, financial instruments:
disclosures, IAS 8, accounting
policies, changes in accounting estimates
and errors, IAS 10, events after the reporting
period, IAS 18, revenue, and IAS 34,
interim financial reporting. These are part
of the IASB’s annual improvement project
published in May 2008. They are unlikely
to have an impact on the consolidated
accounts and have therefore not been analysed
in detail.
yy IFRIC 16, hedges of a net investment in a
foreign operation (effective from 1 October
2008). This clarifies the accounting treatment
in respect of net investment hedging,
including the fact that net investment
hedging relates to differences in functional
currency, not presentation currency, and
that hedging instruments may be held
anywhere in the group. The requirements
of IAS 21, effects of changes in foreign
exchange rates, do apply to the hedged
item. The group will apply IFRIC 16 from 1
January 2009. It is not expected to have a
Hurtigruten asa 2008

annual accounts – group
61
material impact on the consolidated financial
statements.
(c) Interpretations and amendments
to existing standards which are not
yet effective and not relevant to the
group’s operations.
The following interpretations and amendments
to existing standards have been published
and are mandatory for the group’s
accounting periods beginning on or after 1
January 2009 or later periods, but the management
has considered that they are not relevant
for the group’s operations:
yy IFRIC 13, customer loyalty programmes
(effective from 1 July 2008). This clarifies
where goods or services are sold together
with a customer loyalty incentive. It is not
relevant to the group’s operations because
none of its companies operate any loyalty
programmes.
yy IAS 16 (amendment), property, plant and
equipment (and consequential amendment
to IAS 7, statement of cash flows) (effective
from 1 January 2009). Entities whose ordinary
activities comprise renting and subsequently
selling assets present proceeds
from the sale of these assets as revenue,
and should transfer the carrying amount
of the asset to inventories when the asset
becomes held-for-sale. A consequential
amendment to IAS 7 states that cash flows
arising from purchase, rental and sale of
these assets are classified as cash flows from
operating activities. The amendment will
not have an impact on the group’s operations
because none of the ordinary activities
of the group’s companies comprise renting
and subsequently selling assets.
yy IAS 27 (amendment), consolidated and
separate financial statements (effective
from 1 January 2009). Where an investment
in a subsidiary which is accounted
for under IAS 39, financial instruments:
recognition and measurement, is classified
as held for sale under IFRS 5, non-current
assets held for sale and discontinued
operations, IAS 39 would continue to be
applied. The amendment will not have an
impact on the group’s operations because
it is the group’s policy for an investment in
a subsidiary to be recorded at cost in the
stand-alone accounts of each entity.
yy IAS 28 (amendment), investments in asso-
ciates (and consequential amendments
to IAS 32, financial instruments: presentation,
and IFRS 7, financial instruments:
disclosures) (effective from 1 January
2009). Where an investment in an associate
is accounted for in accordance with IAS
39, only certain rather than all disclosure
requirements in IAS 28 37 (f) need to be
made in addition to disclosures required
by IFRS 7. The amendment will not have an
impact on the group’s operations because
it is the group’s policy for an investment in
an associate to be equity accounted in the
group’s consolidated accounts.
yy IAS 29 (amendment), financial reporting
in hyperinflationary economies (effective
from 1 January 2009). The guidance has
been amended to reflect the fact that a
number of assets and liabilities are measured
at fair value rather than historical cost.
The amendment will not have an impact
on the group’s operations, since none of
its subsidiaries or associates operate in
hyperinflationary economies.
yy IAS 31 (amendment), interests in joint ven-
tures (and consequential amendments to
IAS 32 and IFRS 7) (effective from 1 January
2009). Where an investment in a joint venture
is accounted for in accordance with
IAS 39, only certain rather than all disclosure
requirements in IAS 31 55-56 need to
be made in addition to disclosures required
by IFRS 7. The amendment will not have an
impact on the group’s operations since no
interests are held in joint ventures.
yy IAS 38 (amendment), intangible assets
(effective from 1 January 2009). The amendment
deletes the wording which states that
there is “rarely, if ever” support for the use
of a method which results in a lower rate of
amortisation than the straight-line method.
The amendment will not currently have an
impact on the group’s operations since all
intangible assets are amortised using the
straight-line method.
yy IAS 40 (amendment), investment property
(and consequential amendments to IAS 16)
(effective from 1 January 2009). Property
under construction or development for
future use as investment property is within
the scope of IAS 40. Where the fair value
model is applied, such property is therefore
measured at fair value. However,
where the fair value of investment property
under construction is not reliably measurable,
the property is measured at cost until
the earlier of the date at which construction
is completed and the date at which
fair value becomes reliably measurable.
The amendment will not have an impact
on the group’s operations since no investment
properties are held.
yy IAS 41 (amendment), agriculture (effective
from 1 January 2009). This requires the use
of a market-based discount rate where fair
value calculations are based on discounted
cash flows and the removal of the prohibition
on taking account of biological transformation
when calculating fair value. The
amendment will not have an impact on the
group’s operations since no agricultural
activities are undertaken.
yy IAS 20 (amendment), accounting for govern-
ment grants and disclosure of government
assistance (effective from 1 January 2009).
The benefit of a below-market-rate government
loan is measured as the difference
between the carrying amount in accordance
with IAS 39, financial instruments: recognition
and measurement, and the proceeds
received with the benefit accounted for in
accordance with IAS 20. The amendment
will not have an impact on the group’s operations
since no loans or other grants are
received from the government.
yy
The minor amendments to IAS 20, accounting
for government grants and disclosure
of government assistance, IAS 29, financial
reporting in hyperinflationary economies,
IAS 40, investment property, and IAS 41,
agriculture, which are part of the IASB’s
annual improvement project published in
May 2008 (not addressed above). These
amendments will not have an impact
on the group’s operations as described
above.
yy IFRIC 15, agreements for construction of
real estate (effective from 1 January 2009).
The interpretation clarifies whether IAS 18,
revenue, or IAS 11, construction contracts
should be applied to particular transactions.
It is likely to result in IAS 18 being
applied to a wider range of transactions.
IFRIC 15 is not relevant to the group’s
operations because all revenue transactions
are accounted for under IAS 18 and
not IAS 11.
2.2 Consolidation
(a) Subsidiaries
Subsidiaries are all entities (including special
purpose entities) over which the group has
the power to govern the financial and operating
policies generally accompanying a shareholding
of more than one half of the voting
rights. The existence and effect of potential
voting rights currently exercisable or convertible
are considered when assessing whether
the group controls another entity. Subsidiaries
are fully consolidated from the date at which
control is transferred to the group. They are
deconsolidated from the date at which that
control ceases.
The purchase method of accounting is
used to account for the acquisition of subsidiaries
by the group. The cost of an acquisition
is measured as the fair value of the assets
given, equity instruments issued and liabilities
incurred or assumed at the date of exchange,
plus costs directly attributable to the acquisition.
Identifiable assets acquired and liabilities
and contingent liabilities assumed in a
business combination are measured initially
at their fair value at the acquisition date, irrespective
of the extent of any minority interest.
The excess of the cost of acquisition over the
fair value of the group’s share of the identifiable
net assets acquired is recorded as goodwill.
If the cost of acquisition is less than the
fair value of the net assets of the subsidiary
acquired, the difference is recognised directly
in the income statement (note 2.6).
Inter-company transactions, balances and
unrealised gains on transactions between
group companies are eliminated. Unrealised
losses are also eliminated, but are considered
as an indicator of reduction in value in relation
to impairment of the transferred asset.
Accounting policies of subsidiaries have been
changed where necessary to ensure consistency
with the policies adopted by the group.
(b) Transactions and minority interests
The group applies a policy of treating transactions
with minority interests as transactions
with parties external to the group. Disposals
to minority interests result in gains and losses
for the group and are recorded in the income
statement. Purchases from minority interests
result in goodwill, being the difference
between any consideration paid and the relevant
share acquired of the carrying value of
net assets of the subsidiary.
(c) Associates
Associates are all entities over which the
group has significant influence but not control,
generally accompanying a shareholding
of between 20 and 50 per cent of the
voting rights. Investments in associates are
accounted for using the equity method of
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62 Annual accounts – group
accounting and are initially recognised at cost.
The group’s investment in associates includes
goodwill identified on acquisition, net of any
accumulated impairment loss. See note 2.6 for
the impairment of non-financial assets including
goodwill.
The group’s share of its associates’ postacquisition
profits or losses is recognised
in the income statement, and its share of
post-acquisition movements in reserves is
recognised in reserves. The cumulative postacquisition
movements are adjusted against
the carrying amount of the investment. When
the group’s share of losses in an associate
equals or exceeds its interest in the associate,
including any other unsecured receivables,
the group does not recognise further losses,
unless it has incurred obligations or made
payments on behalf of the associate.
Unrealised gains on transactions between
the group and its associates are eliminated to
the extent of the group’s interest in the associates.
Unrealised losses are also eliminated
unless the transaction provides evidence
of an impairment of the asset transferred.
Accounting policies of associates have been
changed where necessary to ensure consistency
with the policies adopted by the group.
Dilution gains and losses arising in investments
in associates are recognised in the
income statement.
(d) SPE
A sale-leaseback solution was implemented in
2002 with the Hurtigruten vessel m/v Richard
With, whereby Kystruten KS acquired the vessel
and leased it back for a 15-year period.
Correspondingly, a sale-leaseback solution
was implemented with the Hurtigruten vessel
m/v Nordlys, whereby Kirberg Shipping
KS acquired the vessel and leased it back for
a 15-year period. On the basis of established
contracts, Kystruten KS and Kirberg Shipping
KS are considered to be special purpose entities
(SPEs) which are to be consolidated in
Hurtigruten. This has been done by recognising
the ships and the external debts in the
consolidated balance sheet. Gain recognised
earlier in the income statement has been corrected
against equity. The accounts of the limited
partnerships have been restated so that
the applied accounting principles reconcile
with those applied by Hurtigruten.
2.3 Segment reporting
A business segment is a group of assets and
operations engaged in providing products
or services which are subject to risks and
returns which differ from those of other business
segments. The group had three different
business segments: Hurtigruten Norwegian
coast, explorer cruise and public transport.
The decision has been taken to dispose of the
public transport segment, and it is presented
as discontinued business in the consolidated
accounts.
A geographical segment is engaged in
providing products or services within a particular
economic environment which are subject
to risks and return which differ from those of
segments operating in other economic environments.
Based on the composition of the group’s
customer base, including an allocation of
the different products within Hurtigruten
Norwegian coast and explorer cruise, the
group finds it appropriate to consider the global
market within the following geographical
segments.
1. Norway – a considerable market which is
partly protected from global trends and
economic development. This segment
also has a very high share of distance travellers
compared with other markets.
2. Eurozone – similarities with respect to
economic development and to demand in
relation to the product range.
3. USA – economic development in
an exceptional position in the world
economy. Considerably larger share in
the explorer cruise segment than other
markets.
4. Other countries are concentrated in one
segment based on the scope of these
countries.
2.4 Foreign currency translation
(a) Functional and presentation currency
Items included in the financial statements
of each of the group’s entities are measured
using the currency of the primary economic
environment in which the entity operates (“the
functional currency”). The consolidated financial
statements are presented in NOK, which is
the parent company’s functional and presentation
currency.
(b) Transactions and balances
Foreign currency transactions are translated
into the functional currency using the
exchange rates prevailing at the dates of
the transactions. Foreign exchange gains
and losses resulting from the settlement of
such transactions and from the translation at
year-end exchange rates of monetary assets
and liabilities denominated in foreign currencies
are recognised in the income statement,
except when deferred in equity as qualifying
cash flow hedges and qualifying net investment
hedges.
Translation differences on non-monetary
financial assets and liabilities such as equities
held at fair value through profit or loss are
recognised in profit or loss as part of the fair
value gain or loss. Translation differences on
non-monetary financial assets, such as equities
classified as available-for-sale, are included in
the available-for-sale reserve in equity.
(c) Group companies
The results and financial position of all the
group entities (none of which has the currency
of a hyperinflationary economy) which have a
functional currency different from the presentation
currency are translated into the presentation
currency as follows:
i. assets and liabilities for each balance
sheet presented are translated at the closing
rate at the date of that balance sheet
ii. income and expenses for each income
statement are translated at average
exchange rates (unless this average is not
a reasonable approximation of the cumulative
effect of the rates prevailing on the
transaction dates, in which case income
and expenses are translated at the rate on
the dates of the transactions)
iii. all resulting exchange differences are recognised
as a separate component of equity.
On consolidation, exchange differences
arising from the translation of the net investment
in foreign operations, and of borrowings
and other currency instruments designated
as hedges of such investments, are taken to
shareholders’ equity. When a foreign operation
is partially disposed of or sold, exchange
differences which were recorded in equity are
recognised in the income statement as part of
the gain or loss on sale.
Goodwill and fair value adjustments arising
on the acquisition of a foreign entity are
treated as assets and liabilities of the foreign
entity and translated at the closing rate.
2.5 Property, plant and equipment
Tangible fixed assets mainly comprise ships
(Hurtigruten vessels, ferries and fast ferries),
land and buildings (hotels, offices and workshops)
and buses. Tangible fixed assets are
shown at fair value, based on periodic, but
at least triennial, valuations by external independent
valuers, less subsequent depreciation.
All other property, plant and equipment
is stated at historical cost less depreciation.
Historical cost includes expenditure directly
attributable to the acquisition of the fixed
assets. Cost may also include transfers from
equity of any gains/losses on qualifying cash
flow hedges of foreign currency purchases of
fixed assets.
Subsequent costs are included in the asset’s
carrying amount or recognised as a separate
asset, as appropriate, only when it is probable
that future economic benefits associated with
the item will flow to the group and the cost of
the item can be measured reliably. The carrying
amount of the replaced part is derecognised.
All other repairs and maintenance are charged
to the income statement during the financial
period in which they are incurred.
Land is not depreciated. Depreciation on
other assets is calculated using the straightline
method to allocate their cost to their
residual values over their estimated useful
lives, as follows:
Ships
12 – 30 years
Buildings
25 – 100 years
Vehicles 5 – 12 years
Other 3 – 10 years
The useful life of fixed assets and their residual
value are reassessed at every balance
sheet date and amended if necessary. When
components of the fixed assets have different
useful lives, the assets are recognised as the
various components and depreciated over the
useful life of the component. An asset’s carrying
amount is written down immediately to
its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable
amount (note 2.7).
Gain and losses on disposals are recognised in
the income statement as the difference between
the sales price and the carrying amount.
Contract-related operating aid received in
connection with newbuilding contracts is recognised
as a reduction in the historical cost of
the relevant vessel.
2.6 Intangible assets
(a) Goodwill
Goodwill represents the excess of the cost
of an acquisition over the fair value of the
Hurtigruten asa 2008

annual accounts – group
63
group’s share of the net identifiable assets of
the acquired subsidiary at the date of acquisition.
Goodwill on acquisitions of subsidiaries
is included in intangible assets. Goodwill
is tested annually for impairment and carried
at cost less accumulated impairment
losses. Impairment losses on goodwill are not
reversed. Gains and losses on the disposal
of an entity include the carrying amount of
goodwill relating to the entity sold.
Goodwill is allocated to cash-generating
units for the purpose of impairment testing.
The allocation is made to those cash-generating
units or groups of cash-generating units
which are expected to benefit from the business
combination in which the goodwill arose,
identified by operating segment (note 2.7).
(b) Other intangible fixed assets
Acquired intangible fixed assets are recognised
in the balance sheet at historical cost
less accumulated depreciation and impairment
losses.
Subsequent costs relating to the intangible
fixed assets carried on the balance sheet
are only recognised when they increase the
future financial benefit related to this asset. All
other costs are expensed during the period in
which they are incurred.
2.7 Impairment of non-financial
assets
Assets which have an indefinite useful life are not
subject to amortisation and are tested annually
for impairment. Assets subject to amortisation
are reviewed for impairment whenever events
or changes in circumstances indicate that the
carrying amount may not be recoverable.
An impairment loss is recognised for the
amount by which the asset’s carrying amount
exceeds its recoverable amount. The recoverable
amount is the higher of an asset’s fair
value less costs to sell and its value in use. For
the purposes of assessing impairment, assets
are grouped at the lowest levels for which
there are separately identifiable cash flows
(cash-generating units). Non-financial assets
other than goodwill which suffer an impairment
are reviewed for possible reversal of the
impairment at each reporting date.
2.8 Financial assets
The group classifies its financial assets in the
following categories: at fair value through profit
or loss, loans and receivables, and available for
sale. The classification depends on the purpose
for which the financial assets were acquired.
Management determines the classification of
its financial assets at initial recognition.
(a) Financial assets at fair value through
profit or loss
Financial assets at fair value through profit
or loss are financial assets held for trading. A
financial asset is classified in this category if
it was acquired principally for the purpose of
selling in the short term. Derivatives are also
categorised as held for trading unless they are
designated as hedges. Assets in this category
are classified as current assets.
(b) Loans and receivables
Loans and receivables are non-derivative
financial assets with fixed or determinable
payments which are not quoted in an active
market. They are included in current assets,
except for maturities greater than 12 months
after the balance sheet date. These are classified
as non-current assets. The group’s loans
and receivables comprise ‘trade and other
receivables’ and cash and cash equivalents in
the balance sheet (note 2.11).
(c) Available-for-sale financial assets
Available-for-sale financial assets are nonderivatives
which are either designated in this
category or not classified in any of the other
categories. They are included in non-current
assets unless management intends to dispose
of the investment within 12 months of the balance
sheet date, in which case they are presented
as fixed assets. Lending and accounts
receivable are presented as accounts receivables
and other receivables in the balance
sheet (note 2.11)
Regular purchases and sales of financial
assets are recognised on the trade date – the
date on which the group commits to purchase
or sell the asset. Investments are initially recognised
at fair value plus transaction costs
for all financial assets not carried at fair value
through profit or loss. Financial assets carried
at fair value through profit or loss are initially
recognised at fair value and transaction
costs are expensed in the income statement.
Financial assets are derecognised when the
rights to receive cash flows from the investments
have expired or have been transferred,
and the group has transferred substantially all
risks and rewards of ownership. Available-forsale
financial assets and financial assets at fair
value through profit or loss are subsequently
carried at fair value. Loans and receivables are
carried at amortised cost using the effective
interest method.
Gains or losses arising from changes in the
fair value of the financial assets at fair value
through profit or loss category are presented in
the income statement within other (losses)/gains
– net in the period in which they arise. Dividend
income from financial assets at fair value through
profit or loss is recognised in the income statement
as part of other income when the group’s
right to receive payments is established.
When securities classified as available for
sale are sold or impaired, the accumulated
fair value adjustments recognised in equity
are included in the income statement as gains
and losses from investment securities.
Interest on available-for-sale securities calculated
using the effective interest method is
recognised in the income statement as part
of other income. Dividends on available-forsale
equity instruments are recognised in the
income statement as part of other income
when the group’s right to receive payments is
established.
The fair value of quoted investments is
based on current bid prices. If the market for
a financial asset is not active (and for unlisted
securities), the group establishes fair value by
using valuation techniques. These include the
use of recent arm’s length transactions, reference
to other instruments which are substantially
the same, discounted cash flow analysis,
and option pricing models which make maximum
use of market inputs and rely as little as
possible on entity-specific inputs.
At each balance sheet date, the group
assesses whether objective evidence exists
that a financial asset or a group of financial
assets is impaired. In the case of equity securities
classified as available-for-sale, a significant
or prolonged decline in the fair value of
the security below its cost is considered to be
an indicator that the securities are impaired. If
any such evidence exists for available-for-sale
financial assets, the cumulative loss – measured
as the difference between the acquisition
cost and the current fair value, less any
impairment loss on that financial asset previously
recognised in profit or loss – is removed
from equity and recognised in the income
statement. Impairment losses recognised in
the income statement on equity instruments
are not reversed through the income statement.
Impairment testing of trade receivables
is described in note 2.11.
2.9 Derivative financial
instruments and hedging
activities
Derivatives are initially recognised at fair value
on the date a derivative contract is entered
into, and are subsequently remeasured at
their fair value. The method of recognising the
resulting gain or loss depends on whether the
derivative is designated as a hedging instrument,
and, if so, the nature of the item being
hedged. The group designates certain derivatives
as either (1) hedges of the fair value of
recognised assets or liabilities or a firm commitment
(fair value hedge) or (2) hedges of
a particular risk associated with a recognised
asset or liability or a highly probable forecast
transaction (cash flow hedge).
At the inception of the transaction, the
group documents the relationship between
hedging instruments and hedged items, as
well as its risk management objectives and
its strategy for undertaking various hedging
transactions. The group also documents its
assessment, both at hedge inception and on
an ongoing basis, of whether the derivatives
used in hedging transactions are highly effective
in offsetting changes in fair value or cash
flows of hedged items.
The fair value of various derivative instruments
used for hedging purposes is disclosed
in note 12. Movements of the hedging reserve
in shareholders’ equity are shown in note 18.
The full fair value of a hedging derivative is
classified as a non-current asset or liability
when the remaining maturity of the hedged
item is more than 12 months, and as a current
asset or liability when the remaining maturity
of the hedged item is less than 12 months.
Trading derivatives are classified as a current
asset or liability.
(a) Fair value hedge
Changes in the fair value of derivatives which
are designated and qualify as fair value
hedges are recorded in the income statement,
together with any changes in the fair value of
the hedged asset or liability attributable to the
hedged risk. The group only applies fair value
hedge accounting for hedging fixed interest
risk on borrowings. The gain or loss relating to
the effective portion of interest rate swaps for
hedging fixed rate borrowings is recognised
in the income statement within finance costs.
The gain or loss relating to the ineffective portion
is recognised in the income statement
within other gains/(losses) – net. Changes in
Hurtigruten asa 2008

64 Annual accounts – group
the fair value of the hedge for fixed rate borrowings
attributable to interest rate risk are
recognised in the income statement within
finance costs.
If the hedge no longer meets the criteria
for hedge accounting, the adjustment to the
carrying amount of a hedged item for which
the effective interest method has been used
is amortised to profit or loss over the period
to maturity.
(b) Cash flow hedge
The effective portion of changes in the fair value
of derivatives which are designated and qualify
as cash flow hedges is recognised in equity.
The gain or loss relating to the ineffective portion
is recognised immediately in the income
statement within other gains/(losses) – net.
Amounts accumulated in equity are recycled
in the income statement in the periods
when the hedged item affects profit or loss
(for example, when the forecast sale which is
hedged takes place). The gain or loss relating
to the effective portion of interest rate
swaps for hedging variable rate borrowings
is recognised in the income statement within
finance costs. The gain or loss relating to
the ineffective portion is recognised in the
income statement within other gains/(losses)
– net. When the forecast transaction which is
hedged results in the recognition of a nonfinancial
asset (for example, inventory or fixed
assets), however, the gains and losses previously
deferred in equity are transferred from
equity and included in the initial measurement
of the cost of the asset. The deferred amounts
are ultimately recognised in the cost of goods
sold in the case of inventory or in depreciation
in the case of fixed assets.
When a hedging instrument expires or is
sold, or when a hedge no longer meets the
criteria for hedge accounting, any cumulative
gain or loss existing in equity at that time
remains in equity and is recognised when the
forecast transaction is ultimately recognised in
the income statement. When a forecast transaction
is no longer expected to occur, the
cumulative gain or loss reported in equity is
immediately transferred to the income statement
within other gains/(losses) – net.
(c) Derivatives not qualified for hedge
accounting
Certain derivatives do not qualify for hedge
accounting. Changes in the fair value of derivatives
which do not qualify for hedge accounting
are recognised in the income statement
within other (losses)/gains – net.
2.10 Inventories
Inventories are stated at the lower of cost
and net realisable value. Cost is determined
using the first-in, first-out (Fifo) method. Net
realisable value is the estimated selling price
in the ordinary course of business, less applicable
variable selling expenses.
2.11 Trade receivables
Trade receivables are recognised initially at fair
value and subsequently measured at amortised
cost using the effective interest method,
less provision for impairment. A provision for
impairment of trade receivables is established
when objective evidence exists that the group
will not be able to collect all the amounts due
in accordance with the original terms of the
receivables. Significant financial difficulties of
the debtor, the probability that the debtor will
enter bankruptcy or financial reorganisation,
and default or delinquency in payments (more
than 30 days overdue) are considered indicators
that the trade receivable is impaired.
The amount of the provision is the difference
between the asset’s carrying amount and the
present value of estimated future cash flows,
discounted at the original effective interest
rate. The carrying amount of the asset
is reduced through the use of an allowance
account, and the amount of the loss is recognised
in the income statement within selling
and marketing costs. When a trade receivable
is uncollectible, it is written off against
the allowance account for trade receivables.
Subsequent recoveries of amounts previously
written off are credited against selling and
marketing costs in the income statement.
2.12 Cash and cash equivalents
Cash and cash equivalents include cash in
hand, deposits held at call with banks, other
short-term highly liquid investments with original
maturities of three months or less, and
bank overdrafts. Bank overdrafts are shown
within borrowings in current liabilities on the
balance sheet, but are not included in the
cash flow note.
2.13 Share capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to
the issue of new shares or options are shown
in equity as a deduction, net of tax, from the
proceeds.
Where any group company purchases
the company’s equity share capital (treasury
shares), the consideration paid, including any
directly attributable incremental costs (net of
income taxes), is deducted from equity attributable
to the company’s equity holders until
the shares are cancelled or reissued. Where
such shares are subsequently reissued, any
consideration received, net of any directly
attributable incremental transaction costs and
the related income tax effects, is included in
equity attributable to the company’s equity
holders.
2.14 Borrowings
Borrowings are recognised initially at fair value,
net of transaction costs incurred. Borrowings
are subsequently stated at amortised cost;
any difference between the proceeds (net of
transaction costs) and the redemption value is
recognised in the income statement over the
period of the borrowings using the effective
interest method.
The fair value of the liability portion of
a convertible bond is determined using a
market interest rate for an equivalent nonconvertible
bond. This amount is recorded
as a liability on an amortised cost basis until
extinguished on the conversion or maturity of
the bonds. The remainder of the proceeds is
allocated to the conversion option. This is recognised
and included in shareholders’ equity,
net of income tax effects.
Borrowings are classified as current liabilities
unless the group has an unconditional
right to defer settlement of the liability for at
least 12 months after the balance sheet date.
2.15 Current and deferred income
tax
The tax expense for the period comprises
current and deferred tax. Tax is recognised in
the income statement, except to the extent
that it relates to items recognised directly in
equity. In this case, the tax is also recognised
in equity.
The current income tax charge is calculated
on the basis of the tax laws enacted or
substantively enacted at the balance sheet
date in the countries where the company’s
subsidiaries and associates operate and generate
taxable income. Management periodically
evaluates positions taken in tax returns
with respect to situations in which applicable
tax regulation is subject to interpretation. It
establishes provisions where appropriate on
the basis of amounts expected to be paid to
the tax authorities.
Deferred income tax is recognised, using
the liability method, on temporary differences
arising between the tax bases of assets and
liabilities and their carrying amounts in the
consolidated financial statements. However,
the deferred income tax is not accounted for if
it arises from initial recognition of an asset or
liability in a transaction other than a business
combination which at the time of the transaction
affects neither accounting nor taxable
profit or loss. Deferred income tax is determined
using tax rates (and laws) which have
been enacted or substantially enacted by the
balance sheet date and are expected to apply
when the related deferred income tax asset is
realised or the deferred income tax liability is
settled.
Deferred income tax assets are recognised
only to the extent that it is probable that future
taxable profit will be available against which
the temporary differences can be utilised.
Deferred income tax is provided on temporary
differences arising on investments in
subsidiaries and associates, except where the
timing of the reversal of the temporary difference
is controlled by the group and it is probable
that the temporary difference will not
reverse in the foreseeable future.
2.16 Employee benefits
(a) Pension obligations
Group companies operate various pension
schemes. These are generally funded through
payments to insurance companies or trusteeadministered
funds, determined by periodic
actuarial calculations. The group has both
defined benefit and defined contribution
plans. A defined contribution plan is a pension
plan under which the group pays fixed
contributions into a separate entity. The group
has no legal or constructive obligations to pay
further contributions if the fund does not hold
sufficient assets to pay all employees the benefits
relating to employee service in the current
and prior periods.
A defined benefit plan is a pension plan
which is not a defined contribution plan.
Typically, defined benefit plans define an
amount of pension benefit which an employee
will receive on retirement, usually dependent
on one or more factors such as age, years of
service and compensation.
The liability recognised in the balance
sheet in respect of defined benefit pension
plans is the present value of the defined
Hurtigruten asa 2008

annual accounts – group
65
benefit obligation at the balance sheet date
less the fair value of plan assets. The defined
benefit obligation is calculated annually by
independent actuaries using the projected
unit credit method. The present value of the
defined benefit obligation is determined by
discounting the estimated future cash outflows
using interest rates of high-quality corporate
bonds which are denominated in the
currency in which the benefits will be paid and
which have terms to maturity approximating
to the terms of the related pension liability.
Variance from estimates arising from experience
adjustments, and changes in actuarial
assumptions, are charged or credited to equity
through recognised income, expense and
adjustment for the period in which they arise.
Changes in pension plan benefits are recognised
immediately as expenses or income
in the income statement unless rights in the
new pension plan are conditional on the
employee remaining in service for a specific
period of time (the vesting period). In that
case, the costs associated with the change in
benefit are amortised on a straight-line basis
over the vesting period.
For defined contribution plans, the group
pays contributions to publicly or privately
administered pension insurance plans on a
mandatory, contractual or voluntary basis.
The group has no further payment obligations
once the contributions have been paid. The
contributions are recognised as employee
benefit expense when they are due. Prepaid
contributions are recognised as an asset to
the extent that a cash refund or a reduction in
the future payments is available.
(b) Termination benefits
Termination benefits are payable when
employment is terminated by the group
before the normal retirement date, or whenever
an employee accepts voluntary redundancy
in exchange for these benefits. The
group recognises termination benefits when it
is demonstrably committed either to terminating
the employment of current employees in
accordance with a detailed formal plan without
the possibility of withdrawal or to providing
termination benefits as a result of an offer
made to encourage voluntary redundancy.
Benefits falling due more than 12 months after
the balance sheet date are discounted to their
present value.
(c) Profit-sharing and bonus plans
The group recognises a liability and an
expense for bonuses and profit-sharing, based
on a formula which takes into consideration
the profit attributable to the company’s shareholders
after certain adjustments. The group
recognises a provision where contractually
obliged or where a past practice has created a
constructive obligation.
2.17 Provisions
Provisions for environmental restoration,
restructuring costs and legal claims are recognised
when the group has a present legal
or constructive obligation as a result of past
events, it is probable that an outflow of
resources will be required to settle the obligation,
and the amount has been reliably
estimated. Restructuring provisions comprise
lease termination penalties and employee termination
payments. Provisions are not recognised
for future operating losses.
Where a number of similar obligations
exist, the likelihood that an outflow will be
required in settlement is determined by considering
the class of obligations as a whole. A
provision is recognised even if the likelihood
of an outflow with respect to any one item
included in the same class of obligations may
be small.
Provisions are measured at the present
value of the expenditures expected to be
required to settle the obligation, using a pretax
rate which reflects current market assessments
of the time value of money and the risks
specific to the obligation. The increase in the
provision owing to the passage of time is recognised
as interest expense.
2.18 Trade creditors and other
current liabilities
Trade creditors and other payment obligations
are recognised initially at fair value and subsequently
measured at amortised cost using the
effective interest method.
2.19 Revenue recognition
Revenue from the sale of goods and services
is recognised at fair value, net of VAT, returns,
discounts and rejects. Inter-company sales are
eliminated. Revenues are recognised in the
income statement as follows.
(a) Sales of services and travel
Sales of services are recognised in the accounting
period when the service is rendered and/
or delivered. Revenues relating to vessel voyages
are accrued on the basis of the number
of days which the voyage lasts before and after
the end of the accounting period. Prepaid revenues
on the balance sheet date are recognised
as debt. Earned but not invoiced services
are recognised in the income statement
on the balance sheet date as a debtor.
(b) Sales of goods
Sales of goods are recognised when a unit
within the group has sold the product to the
customer. Payment for retail transactions is
usually made in cash or by credit card. The
revenue is recognised in the income statement,
including the credit card fee incurred
for the transaction. Fees are recorded as sales
expenses.
(c) Public procurement
Revenues received from public procurement
are recognised in the income statement on
a continuous basis over the year on the basis
of existing contracts and the earnings criteria
permitted by the contracts.
(d) Interest income
Interest income is recognised in the income
statement proportionally over time in accordance
with the effective interest method.
Should an impairment of debtors be required,
the carrying amount of the debtor is reduced
to the recoverable amount. The recoverable
amount is the estimated future cash flow discounted
by the original effective interest rate.
After impairment, the interest income recognised
in the income statement is based on the
original effective interest rate.
(e) Dividend income
Dividend income is recognised when the right
to receive payment is established.
2.20 Government contribution
Government contributions are recognised at
fair value on condition that the contributions
will be received and that the group can meet
the conditions agreed upon.
Future expenses relating to government
contribution are matched with, and expensed,
at the same time as the revenues to which the
expenses can be attributed
2.21 Classification and
maintenance expenses
In connection with the docking of vessels,
expenditures and improvements required by
the classification society will be capitalised
and depreciated over the period until the next
class survey/docking. The same applies to
costs for class certification. Periodic maintenance
is capitalised and charged to expenses
over the period until the next periodic maintenance.
The acquisition cost of newbuildings
and second-hand tonnage is decomposed,
with a portion corresponding to the first
periodic maintenance cost recognised in the
balance sheet and expensed over the period
until periodic maintenance is due to be carried
out. When ships are sold, capitalised
costs charged to expenses will be classified as
part of the gain/loss.
Ferries and fast ferries in the public transport
business area, with the exception of vessels
on routes awarded by competitive tender,
are subject to regular annual classification with
costs expensed on a continuous basis.
On-going maintenance for all ship types is
charged to expenses continuously during the
period in which the work is done.
2.22 Estimates
Preparing financial statements in conformity
with the IFRS requires the management to make
use of estimates and assumptions which affect
the application of the accounting principles and
the reported amounts of assets and liabilities,
revenues and expenses. Estimates and associated
assumptions are based on historical experience
and other factors regarded as reasonable
in the circumstances. These calculations form
the basis for assessing the capitalised value
of assets and liabilities which do not find clear
expression from other sources. The actual result
can vary from these estimates.
Estimates and the underlying assumptions
are assessed on a continuous basis. Changes
in accounting estimates are recognised in the
period when the changes arise, providing they
apply only to that period. Should the changes
also apply to future periods, the effect will be
allocated over the present and future periods.
2.23 Leases
Leases in which a significant portion of the
risks and rewards of ownership are retained by
the lessor are classified as operating leases.
Payments made under operating leases (net
of any incentives received from the lessor) are
charged to the income statement on a straightline
basis over the period of the lease.
Where substantially all the financial risks
and control related to the underlying leased
object have been transferred to the lessee, the
Hurtigruten asa 2008

66 Annual accounts – group
lease is classified as a financial lease. Assets
secured through financial leasing are recognised
in the income statement at the inception
of the lease at the lower of the market
value of the asset and the present value of the
minimum lease payment. Each lease payment
is allocated between an instalment element
and an interest element in such a way that a
constant interest expense is achieved on the
outstanding carrying amount of the liability.
The interest cost is recognised as an interest
expense. The lease liability, less interest costs,
is classified within other long-term liabilities.
Fixed assets acquired through a financial lease
are depreciated over the shorter of expected
useful life or the lease term.
2.24 Discontinued business and noncurrent
assets held for sale
A discontinued operation is a part of the
group’s business which represents a separate
and substantial business, or a subsidiary
acquired exclusively for onward sale.
Classification as a discontinued operation
occurs at the date of the disposal, or earlier if
the business fulfils the criteria for classification
as a discontinued operation.
Non-current assets held for sale are classified
as assets held for sale. These assets
are recognised as the lower of cost and net
realisable value less selling expenses if their
carrying amount will be recovered principally
through a sale transaction, not through continuing
use.
2.25 Loan expenses
Accrued loan expense in the period of construction
of the non-current asset is recognised
in the balance sheet until the asset is
completed for its intended use. Other loan
expenses are charged against income.
2.26 Dividend
Dividend distribution to the company’s shareholders
is recognised as a liability in the
group’s financial statements in the period in
which the dividends are approved by the general
meeting.
Note 3
Financial risk
management
3.1 Financial risk factors
The group’s overall risk is subject to review in
all areas. This applies to relations in connection
with business strategy and management,
the group’s financial position and its reputation.
The board of directors monitors overall
developments and becomes engaged in special
circumstances when appropriate.
Hurtigruten utilises the principal that an
evaluation of risk is an integrated element of
the overall business. Responsibility rests with
the individual business area. However, the
overall risk is monitored and coordinated by
group management.
The group’s activities expose it to a variety
of financial risks: market (including currency,
fair value, interest rate and price risk),
credit, liquidity and refinancing, and floating
rate risk. The group’s overall risk management
programme focuses on the unpredictability of
financial markets and seeks to minimise potential adverse effects on the group’s financial performance.
The group uses derivative financial instruments to hedge certain risk exposures.
Risk management is pursued under policies approved by the board of directors. Principles for
overall risk management have been prepared, covering specific areas such as foreign exchange,
interest rate and credit risk, use of derivative financial instruments and investment of excess
liquidity.
(a) Market risk
(i) Foreign exchange risk
The group operates internationally and is exposed to foreign exchange risk arising from various
currency exposures, primarily with respect to the euro, the US dollar and the pound sterling.
Foreign exchange risk arises from future commercial transactions such as ticket sales, recognised
assets and liabilities, and the purchase of bunkers.
To manage their foreign exchange risk arising from future commercial transactions, entities in
the group use forward contracts. Foreign exchange risk arises when future commercial transactions
or recognised assets or liabilities are denominated in a currency which is not the entity’s
functional currency. The group’s risk management policy is aimed at securing up to 100 per cent
of the expected transactions in EUR and GBP for the next 12 months, and up to 65 per cent of
transactions in EUR and GBP for 2010. The group’s currency swaps at 31 December secured 43
per cent of the expected future operating revenue in EUR for 2009.
The group holds minor investments in foreign subsidiaries where net assets are exposed to
credit risk when converted. No specific transactions have been entered into to reduce this risk,
but it is coordinated with the group’s remaining hedges.
The table below shows how net profit and equity would have been adjusted in the event of
changes to the above currencies against the recorded currency at 31 December 2008. Changes
relate mainly to financial derivatives, cash in the bank and other placements.
Effect on net profit in NOK
Effect on equity in NOK
(Amounts in 1 000) 2008 2007 2008 2007
Change USD 5% 827 (1 364) (2 132) (1 364)
Change EURO 5% 1 162 (15 685) (16 595) (15 685)
Change GBP 5% 966 40 966 40
The calculations assume that the NOK weakens by five per cent against the above currencies.
With an equivalent strengthening of the NOK, the amounts would have the opposite value. The
effect on equity exceeds the effect on net profit since the financial derivatives are recognised as
hedging, and adjustments are therefore recognised directly in equity.
(ii) Price risk
The group is exposed to bunker price risk. Assessments are performed on a continuous basis
in relation to hedging of bunkers. It has been resolved to hedge 50 per cent of the total bunker
volume for the Hurtigruten business area from the second to the fourth quarters if the forward
price for IF 40 is below NOK 4 per litre. Should the forward price fall below NOK 3.50 per litre, the
remaining bunkers volume will be hedged.
At 31 December 2008, Hurtigruten had hedged 50 per cent of the total bunker volume for the
first quarter of 2009 at NOK 5.63 per litre for IF 40.
Bunkers is denominated in NOK, but depends on the development in crude and refined oil
prices and the value of the NOK against the USD.
The table below shows the effect on net profit and on equity in the event of a shift in the
bunker price. The changes relate to the purchase of bunkers.
Effect on net profit in NOK
Effect on equity in NOK
(Amounts in 1 000) 2008 2007 2008 2007
Change in bunker price 20% (74.3) (45.3) (62.5) (34.5)
The hedging positions are classified in accounting terms as held for trading, and unrealised gain/
loss is recognised directly in equity.
The calculation above is based on an average unsecured bunker volume, and shows the effect
of a 20 per cent increase in the price of bunkers in 2007 or 2008.
(b) Credit risk
The group has no significant concentration of credit risk. Sales to end users are settled in cash or
with recognised credit cards. Sales to external agents occur either through prepayments/credit
cards or by invoicing. The group is working on routines aimed at reducing the risk by allowing
credit only to agents with a satisfactory credit rating. Individual limits for risk exposure are based
on in-house and external assessments of credit ratings, in addition to guidelines from the board
of directors. The counterparties to the derivative financial instruments and cash deposits are
highly rated banks and financial institutions. The group has established routines which reduce
the exposure to credit risk in relation to the individual financial institution.
Hurtigruten asa 2008

annual accounts – group
67
(c) Liquidity risk
Prudent liquidity risk management includes maintaining sufficient cash and marketable securities, ensuring the availability of funding from adequate
committed credit facilities and possessing the ability to close out market positions. The group works on a continuous basis to sustain the
financial flexibility which ensures that close-out market positions are available. To reduce the risk of refinancing, the group has specified instructions
on liquidity reserves and the repayment profile. Together with the group’s main banks, a set of guidelines has been introduced to ensure that part
of the group’s free liquidity is available to the parent company, and thereby minimise the risk that internal factors could effect the group’s liquidity
problems.
Management monitors the group’s liquidity reserve, which consists of borrowing facilities (note 20) and cash equivalents (note 15), through a revolving
five-year forecast based on expected cash flow.
The table below specifies the maturities of the group’s financial liabilities.
(NOK 1 000) Within 1 year 1-2 years 2-5 years Over 5 years
31 December 2008
Bank loans 4 024 332 5 349 16 047 27 398
Financial derivatives - - - -
Accounts payable (creditors) and other current debt 505 074 - - -
31 December 2007
Bank loans 350 045 514 488 1 195 553 2 521 540
Financial derivatives - - - -
Accounts payable (creditors) and other current debt 883 744 - - -
Hurtigruten has financial covenants attached to its borrowing (note 20). These had not been fulfilled at 31 December. The bank syndicate temporarily
withdrew the covenants at 31 December 2008 to the end of January 2009. Since the covenants were not withdrawn for one year ahead,
all borrowings subject to such covenants are presented as current borrowings. A new agreement was prepared in February 2009, including a new
instalment profile and new conditions. See note 37, events after the balance sheet date, in the group accounts for further information.
The table below analyses the group’s financial liabilities and net-settled derivative financial liabilities into relevant maturity groupings based on
the remaining period from the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted
cash flows.
(NOK 1 000) Within 1 year 1-2 years 2-5 years Over 5 years
31 December 2008
Forward contracts bunker - hedging
- outflow (21 526) - - -
- inflow - - - -
Interest rate swaps – hedging
- outflow 64 328 71 196 32 347 -
- inflow 57 654 65 135 35 332 -
Interest rate options – hedging
- outflow 1 244 617 - -
- inflow 1 937 961 - -
Forward exchange contracts - held for trading
- outflow 492 000 - - -
- inflow 411 285 - - -
31 December 2007
Forward contracts bunker - held for trading
- outflow - - - -
- inflow 9 831 - 4 555 1 202
Interest rate swaps – hedging
- outflow 69 272 66 338 87 391 16 151
- inflow 77 013 73 738 97 220 18 007
Interest rate options – hedging
- outflow 1 234 1 244 617 -
- inflow 2 373 2 386 1 183 -
Forward exchange contracts - held for trading
- outflow 238 830 159 220 - -
- inflow 254 765 170 511 - -
The group has also conducted derivative trading in the KirBerg Shipping KS and Kystruten KS limited partnerships. The traded derivatives are
interest rate and currency swaps, with the objective of hedging a fixed return in NOK for the investors in these limited partnership.
Hurtigruten asa 2008

68 Annual accounts – group
(d) Floating and fixed interest risks
Since the group has no substantial interestbearing
assets, its profit/loss and cash flow
from operations are largely independent of
changes in market interest rates.
The group’s interest rate risk relates to
long-term loans. Floating-rate loans present
an interest rate risk to the group’s cash flow.
Fixed-rate loans expose the group to fair
value interest rate risk.
The group manages its floating interest
rate risk by using floating-to-fixed interest
rate swaps. Such swaps involve a conversion
of floating-rate to fixed-rate loans. The group
normally takes up long-term loans at a floating
rate of interest, and swaps these to fixed
rates which are lower than the group could
have secured by borrowing directly at a fixed
rate. Through the swaps, the group concludes
agreements with other parties on swapping
the difference between the contract’s fixed
and floating interest rate amounts, calculated
on the basis of the agreed principal.
If the floating interest rates increased by
0.5 per centage points, interest costs for the
group after tax would rise by about NOK 5.8
million (2007: NOK 9.8 million).
3.2 Capital risk management
The group’s objectives when managing capital
are to safeguard its ability to continue as a
going concern in order to provide returns for
shareholders and benefits for other stakeholders,
and to maintain an optimum capital structure
in order to reduce the cost of capital.
To maintain or adjust its capital structure,
the group may adjust the dividend paid to
shareholders, return capital to shareholders,
issue new shares or sell assets to reduce debt.
The group monitors capital on the basis
of the gearing ratio. This ratio is calculated as
net debt divided by total capital.
At 31 December 2008, the group had a
gearing ratio of 16.8 per cent (2007: 23 per
cent).
Changes in the gearing ratio since 2007 are
attributed to the issue of new shares, accounting
losses and the increase in total capital.
3.3 Assessment of fair value
The fair value of financial instruments traded
in active markets (such as securities available
for sale or held for trading purposes) is based
on the market price at the balance sheet date.
Market prices are the quoted buying price for
financial assets and the quoted sales price for
financial liabilities.
The fair value of financial instruments not
traded in an active market (such as certain
over-the-counter derivatives) is determined
with the aid of valuation techniques. The
group applies various methods and makes
assumption based on the market conditions
which prevail at each balance sheet date.
The fair value of interest rate swaps is calculated
as the present value of estimated future
cash flows. The fair value of forward contracts
in foreign currencies is calculated using the
exchange rates prevailing in the forward market
at the balance sheet date.
The nominal value less depreciation of
losses incurred on trade debtors and the nominal
value of trade creditors is assumed to be
approximately equal to the fair value of these
items.
Note 4
Critical accounting
estimates and
judgements
Estimates and judgements are continually
evaluated, and are based on historical experience
and other factors, including expectations
of future events which are believed to be
reasonable under the circumstances.
4.1 Critical accounting estimates
and assumptions, including
approximate assessments of
the utilisation of the entity’s
accounting principles
The group makes estimates and assumptions
concerning the future. The resulting accounting
estimates will, by definition, rarely equal
the related actual results. The estimates and
assumptions which have a significant risk of
causing a material adjustment to the carrying
amounts of assets and liabilities within the
next financial year are outlined below.
(a) Estimated impairment of goodwill
The group tests annually whether goodwill has
suffered any impairment. See note 2.6. The
recoverable amounts of cash-generating units
have been determined on the basis of valuein-use
calculations. These calculations require
the use of estimates (note 9). An important
assumption in making such estimates is the
required rate of return employed when discounting
cash flows. The required rate of
return utilised is the weighed average return
on equity and the required rate of return on
interest-bearing debt.
(b) Estimated impairment of ships
The group tests annually whether ships have
suffered any impairment. See note 2.6. The
recoverable amounts of cash-generating units
have been determined on the basis of valuein-use
calculations. Ships are considered
within their segment to be a collective cashgenerating
unit. These calculations require
the use of estimates (note 8).
An important assumption in making
such estimates is the required rate of return
employed when discounting cash flows. The
required rate of return utilised is the weighted
average return on equity and the required rate
of return on interest-bearing debt.
(c) Fair value of derivatives and other
financial instruments
The fair value of financial instruments not
traded in an active market (for example, overthe
counter derivatives) is determined by
using valuation techniques. The group uses
its judgment to select a variety of methods
and to make assumptions based mainly on
market conditions which exist at each balance
sheet date. The group uses discounted future
cash flow analysis for various available-for-sale
financial assets not traded in active markets.
(d) Pension assumptions
The present value of pension liabilities
depends on the determination of economic
and demographic assumptions. An important
assumption when estimating the liability is
the discount rate. The discount rate is determined
by the 10-year government bond at the
balance sheet date, with an addition for the
relevant length of the liability. The expected
return on pension funds is determined by the
markets in which the funds are invested and
based on historical return. The average return
on pension funds has historically been higher
than the risk-free rate, since a share of the
pension fund is placed in investment areas
with higher risk. The additional return has historically
been one per centage point, and the
expected additional return is therefore determined
on the basis of the discount rate plus
the historical additional return. If the return
is lower, the unrealised actuarial gains would
increase and the residual value would be recognised
in the income statement for 2008.
Other basic assumptions for calculating
the pension liability are annual pay increases,
annual regulation of pensions, expected
adjustments to the NI base rate, and payment
of early retirement (AFP) pensions. See note
22 for further information.
(e) Income tax
The group is liable to income tax in several
countries. The use of approximation is necessary
to estimate income tax liability for all the
countries as a whole in the group accounts.
Uncertainty prevails in connection with the
final tax liability for many of the transactions.
(f) Approximate assessments in terms of
income recognition
Income relates to a ship’s journey and is
accrued on the basis of the number of days
before and after the period end. Hence,
income recognition is an approximate assessment
in terms of the period in which the
income is to be recognised.
Hurtigruten asa 2008

annual accounts – group
69
Note 5
Companies included in the consolidation
(Amounts in NOK 1 000 unless otherwise stated)
Business
office
Share
capital
Shareholding/
voting share
Total
nominal value
Owned by Hurtigruten ASA (parent company)
Bergenske Reisebyrå AS* Bergen 9 000 100.0% 9 000
AS TIRB* Finnsnes 66 695 71.3% 47 554
Spitsbergen Travel AS Longyearbyen 17 600 100.0% 17 600
Kystopplevelser AS Bodø 2 000 100.0% 2 000
Hurtigruten GmbH Hamburg EUR 25 100.0% EUR 25
Hurtigruten Ltd London GBP 1 000 100.0% GBP 1 000
Hurtigruten Inc New York USD 130 100.0% USD 130
Hurtigruten SAS Paris EUR 40 100.0% EUR 40
Hurtigruten AB Karlstad SEK 500 100.0% SEK 500
Hurtigruten Verdens Vakreste Sjøreise AS Tromsø 100 100.0% 100
Malangsforbindelsen AS Tromsø 1 423 51.0% 725
HRG Eiendom AS Narvik 385 100.0% 385
Salten Dampskibsselskap AS Narvik 200 100.0% 200
Hurtigruten Greenland AS Nuuk DKK 500 100.0% DKK 500
C&O SA Santiago USD 111 80.0% USD 89
Kirberg Shipping KS** Bergen 43 000 1.0% 430
Kystruten KS** Oslo 26 000 0.0% -
Owned by AS TIRB
Cominor AS* Finnsnes 100 100.0% 100
TIRB Eiendom AS* Finnsnes 500 100.0% 500
Owned by Cominor AS
Cominor Bilservice AS* Finnsnes 2 800 100.0% 2 800
Owned by TIRB Eiendom AS
TIRB Eiendom II AS* Tromsø 5 280 100.0% 5 280
Owned by Spitsbergen Travel AS
Spitsbergen Travel Hotel AS Longyearbyen 12 000 100.0% 12 000
Ingeniør G Paulsen AS Longyearbyen 5 000 100.0% 5 000
Svalbard Polar Hotel AS Longyearbyen 9 616 100.0% 9 616
* The company has been sold and is presented as discontinued business in the accounts.
Share capital
Uncalled capital
** Limited partnerships
Kirberg Shipping KS 1 075 645
Kystruten KS - -
Hurtigruten asa 2008

70 Annual accounts – group
Note 6
SEGMENT Information
Hurtigruten
Explorer
(NOK 1 000) 2008 2007 2008 2007
(a) Primary reporting format – business segments
Operating revenues 1 721 378 1 667 976 443 463 492 052
Contractual revenues 418 056 265 486 - -
Total revenue 2 139 434 1 933 462 443 463 492 052
Staff costs (634 521) (652 829) (104 273) (122 154)
Depreciation and impairment (357 880) (281 028) (131 453) (27 398)
Other operating costs (1 142 196) (1 007 106) (305 274) (310 462)
Other (losses)/ gains - net 79 22 729 - 2
Operating profit/ (loss) 4 916 15 228 (97 537) 32 040
Net financial items (256 684) (178 986) (29 366) (17 955)
Profit/(loss) before tax for continued business (251 768) (163 758) (126 903) 14 085
Profit/(loss) before tax for discontinued business - - - -
Profit/(loss) before tax (251 768) (163 758) (126 903) 14 085
Operating profit before depreciation 362 796 296 256 33 916 59 438
Other information
Assets 3 947 593 4 661 879 882 720 1 133 052
Assets held for sale 314 206 - - -
Liabilities 3 950 046 4 012 165 543 860 622 610
Liabilities on assets held for sale 303 367 - - -
Investments during the period 87 927 97 658 29 789 538 827
b) Secondary reporting format – geographical segments
Operating revenues
Norway 1 171 469 995 336 219 158 216 195
Eurozone 844 171 798 053 150 380 153 768
USA 76 306 93 186 62 123 94 095
Other countries 47 487 46 887 11 802 27 994
Profit/(loss) recognised as discontinued business (note 7) - - - -
Total 2 139 434 1 933 462 443 463 492 052
Revenue is allocated on basis of the passenger's home country.
Revenue for public transport comes mainly from cash sales (tickets). Allocation on the basis of the passenger's home country cannot be obtained.
Assets
Norway 3 913 415 4 274 649 882 720 1 133 052
Other countries 348 384 387 230 - -
Total 4 261 799 4 661 879 882 720 1 133 052
Associates - - - -
Assets recognised as held for sale (314 206) - - -
Total 3 947 593 4 661 879 882 720 1 133 052
Total assets are allocated on the basis of where the assets are located.
There are no geographical area outside Norway where associates have > 10 per cent of the company's assets.
Capital expenditure
Norway 84 093 91 710 29 789 538 827
Other countries 3 834 5 948 - -
Total 87 927 97 658 29 789 238 827
Capital expenditure is allocated onthe basis of where the assets are located.
There are no geographical area outside Norway where associates have >10 per cent of the company's assets/investments.
Hurtigruten asa 2008

annual accounts – group
71
Public transport Other businesses Elimination Hurtigruten group
2008 2007 2008 2007 2008 2007 2008 2007
- - 31 690 63 433 (63 147) (59 117) 2 133 384 2 164 344
- - - - - - 418 056 265 486
- - 31 690 63 433 (63 147) (59 117) 2 551 440 2 429 830
- - (50 165) (65 520) - - (788 959) (840 502)
- - (38 810) (20 040) - - (528 143) (328 465)
- - (158 815) (96 058) (63 147) (59 117) (1 543 138) (1 354 509)
- - 17 796 457 - 199 17 875 22 988
- - (198 304) (117 728) - (199) (290 925) (70 659)
- - 27 228 13 134 - 199 (258 822) (183 609)
- - (171 076) (104 594) - - (549 747) (254 268)
(151 853) (15 370) 15 411 41 159 - - (136 442) 25 789
(151 853) (15 370) (155 665) (63 435) - - (686 189) (228 479)
- - (159 494) (97 688) - (199) 237 218 257 806
- 1 521 887 551 353 464 101 (41 341) (66 790) 5 340 323 7 714 129
1 161 853 - 158 943 - (42 651) - 1 592 351 -
- 979 748 215 049 390 976 (406 951) (66 790) 4 302 040 5 938 707
793 435 - 47 857 - 322 923 - 1 467 582 -
97 743 103 865 11 578 22 955 - - 227 037 763 304
1 298 303 1 322 653 98 852 134 943 (63 147) (59 117) 2 724 635 2 610 010
- - - - - - 994 551 951 821
- - - - - - 138 429 187 281
- - - - - - 59 290 74 882
(1 298 303) (1 322 653) (67 162) (71 510) - - (1 365 465) (1 394 163)
- - 31 690 63 433 (63 147) (59 117) 2 551 440 2 429 830
1 155 835 1 516 241 603 006 358 512 (83 992) (66 790) 6 470 982 7 215 664
- - - - - - 348 384 387 230
1 155 835 1 516 241 603 006 358 512 (83 992) (66 790) 6 819 366 7 602 894
6 018 5 646 107 290 105 589 - - 113 308 111 235
(1 161 853) - (158 943) - 42 651 - (1 592 351) -
- 1 521 887 551 353 464 101 (41 341) (66 790) 5 340 323 7 714 129
97 743 103 865 11 578 22 955 - - 223 202 757 356
- - - - - - 3 834 5 948
97 743 103 865 11 578 22 955 - - 227 037 763 304
Hurtigruten asa 2008

72 Annual accounts – group
Note 7
Assets of disposal group classified as held-for-sale and discontinued operations
Based on the planned and implemented sale of businesses in the company the public transport segment, Bergenske Reisebyrå AS, KS Offshore
Tjeld and Nor Lines AS have been presented as discontinued business at 31 December in accordance with IFRS 5. Comparative figures in the
income statement for the equivalent periods in 2007 have been restated in accordance with the same principle. Assets and liabilities connected
to these businesses and carried amounts wth the attached secured debt on the Hurtigruten vessel m/v Nordnorge are presented in accordance
with IFRS 5 as assets of disposal group classified as held-for-sale and liabilities of disposal group classified as held-for-sale at 31 December.
The ferries and fast ferries business was sold to Torghatten Nord AS on 5 January 2009, and Bergenske Reisebyrå AS was sold to VIA Travel
Norge AS on 23 February 2009.
Cash flow from disposal group classified as A58
(NOK 1 000) 2008 2007
Operating cash flows 131 065 167 652
Investing cash flows (91 000) (83 300)
Financing cash flows (36 657) (87 517)
Total cash flows 3 408 (3 165)
Assets of disposal group classified as held-for-sale
(NOK 1 000) 2008 2007
Property, plant and equipment (note 8) 1 266 732 -
Intangible assets (note 9) 40 808 -
Investments in associates (note 10) 84 852 -
Long-term debtors and investments (note 13) 3 714 -
Total 1 396 865 -
Inventory (note 14) 14 167 -
Trade debtors and other debtors (note 13) 67 552 -
Cash and cash equivalents (note 15) 113 768 -
Total 195 488 -
Assets held for sale 1 592 353 -
Liabilities of disposal group classified as held-for-sale
(NOK 1 000) 2008 2007
Borrowings (note 20) 99 213 -
Deferred tax (note 21) 9 152 -
Pension obligations (note 22) 44 416 -
Total 152 781 -
Trade and other payables (note 19) 511 996 -
Tax payable (note 29) 2 841 -
Borrowings (note 20) 799 964 -
Total 1 314 801 -
Total liabilities 1 467 582 -
Cumulative income or expense recognised directly in equity relating to disposal group classified as held-for-sale
(NOK 1 000) 2008 2007
Foreign exchange translation adjustments - -
Cash flow hedge, net of tax - -
Actuarial loss on post employment benefit obligations net of tax 9 780 -
Net income recognised directly in equity 9 780 -
Hurtigruten asa 2008

annual accounts – group
73
Profit from discontinued business:
(NOK 1 000) 2008 2007
Operating revenues (note 6) 1 365 463 1 394 163
Payroll cost (note 26) (613 989) (522 087)
Depreciation and impairment (note 8, 9) (210 854) (127 169)
Other operating costs (577 227) (661 134)
Other (losses)/gains - net (note 25) (71 407) (53 155)
Operating profit/(loss) (108 014) 30 618
Finance income 18 774 18 261
Finance costs 50 883 44 617
Finance costs - net (note 28) (32 109) (26 356)
Share of profit from associates (note 10) 3 680 21 527
Profit/(loss) before income tax (136 443) 25 789
Income tax expense (note 29) 116 799 (6 532)
Profit/(loss) for the year (19 644) 19 257
Note 8
Tangible fixed assets
(NOK 1 000)
Land and
buildings
Ships
Other tangible
assets
Total
Fiscal 2007
Carrying amount 1 January 2007 288 798 5 043 573 232 182 5 564 552
Additions 7 617 612 503 99 792 719 912
Disposals - (146 059) (53 346) (199 405)
Depreciation for the year (8 985) (380 276) (43 444) (432 705)
Impairment losses for the year - (5 636) (336) (5 972)
Carrying amount 31 December 2007 287 430 5 124 105 234 847 5 646 381
At 31 December 2007
Acquisition cost 324 321 7 031 508 473 060 7 828 889
Accumulated depreciation and impairment (36 891) (1 907 403) (238 213) (2 182 507)
Carrying amount 31 December 2007 287 430 5 124 105 234 847 5 646 381
Fiscal 2008
Carrying amount 1 January 2008 287 430 5 124 105 234 847 5 646 382
Additions 17 149 90 074 82 516 189 739
Disposals (22 255) - (5 448) (27 703)
Depreciation for the year (9 027) (334 167) (48 415) (391 609)
Impairment losses for the year - (207 230) (384) (207 614)
Of this assets held-for-sale (note 7) (98 262) (942 638) (225 832) (1 266 732)
Carrying amount 31 December 2008 175 035 3 730 144 37 284 3 942 462
At 31 December 2008
Acquisition cost 309 080 7 121 582 472 529 7 903 191
Accumulated depreciation and impairment (35 783) (2 448 800) (209 413) (2 693 996)
Of this assets held-for-sale (note 7) (98 262) (942 638) (225 832) (1 266 732)
Carrying amount 31 December 2008 175 035 3 730 144 37 284 3 942 462
Impairment test on ships:
Ships which can be utilised in the same operation are considered part of the same cash-generating unit. The following units have been tested
for impairment:
Budget/forecast Growth rate after 2010 Discount rate post tax
Hurtigruten ships 2009-2010 2.50% 8.85%
The discount rate is based on the company's internal required rate of return in addition to the observable required rate of return in similar companies. The
growth rate in the terminal (after 2010) is based on the nominal growth rate. The impairment test did not identify a need for an impairment charge on the
Hurtigruten ships. M/v Fram was assessed on the basis of appraised value, and is therefore impaired by NOK 100 million to its assumed fair value. Ferries and
fast ferries were sold with effect from 5 January 2009, and are considered at fair value in accordance with the sales agreement with Torghatten Nord AS.
Hurtigruten asa 2008

74 Annual accounts – group
Leases
The company rents premises from the associated ANS Havnebygningen company. In addition, a subsidiary has rental costs for premises.
The parent company has chartered vessels. Furthermore, a subsidiary has leased other transport equipment.
Total rental costs related to the above-mentioned conditions comprise:
(NOK 1 000) 2008 2007
Rent premises 31 783 36 766
Charter rates vessels 7 229 7 642
Leasing charges other fixed assets 6 575 3 744
Of this recognised as discontinued business (note 7) (12 153) (11 031)
Total rental costs 33 434 37 121
Financial leases
Vehicles secured through financial leases:
(NOK 1 000) 2008 2007
Carrying amount acquisition costs related to financial leases - 7 380
Accumulated depreciation - (2 360)
Carrying amount 31 December - 5 020
Rights to the leased assets revert to the lessor in the event of a failure to meet future payment obligations.
The leasing agreement expire at 31 December 2008
(NOK 1 000) 2008 2007
Of the lease payments under financial leases, the following amount is recognised as a financial cost - 321
Future aggregate minimum lease payments
Carrying amount 31 December - 4 937
Total - (4 937)
Future minimum lease payments remaining - no later than one year - 4 937
Total - 4 937
A lease for buses in the Cominor AS subsidiary has been terminated. This lease expired in 2008.
Note 9
Intangible fixed assets
(NOK 1 000)
Goodwill
Other
ingangible
assets
Total
Fiscal 2007
Carrying amount 1 January 2007 308 488 4 759 313 247
Additions - 43 392 43 392
Disposals - - -
Impairment losses for the year - (6 820) (6 820)
Depreciation for the year - (10 138) (10 138)
Carrying amount 31 December 2006 308 488 31 193 339 681
At 31 December 2007
Acquisition cost 322 471 51 391 373 862
Accumulated depreciation and impairment (13 983) (20 198) (34 181)
Carrying amount 31 December 2007 308 488 31 193 339 681
Hurtigruten asa 2008

annual accounts – group
75
Fiscal 2008
Carrying amount 1 January 2008 308 488 31 193 339 681
Additions 5 145 32 153 37 298
Disposals - - -
Impairment losses for the year (126 345) (4 156) (130 501)
Depreciation for the year - (9 273) (9 273)
Of this assets held for sale (note 7) (40 808) - (40 808)
Carrying amount 31 December 2007 146 480 49 916 196 396
At 31 December 2008
Acquisition cost 327 616 85 543 411 159
Accumulated depreciation and impairment (140 328) (33 627) (173 955)
Of this assets held for sale (note 7) (40 808) - (40 808)
Carrying amount 31 December 2008 146 480 49 916 196 396
Goodwill and other intangible assets are recognised as a result of business acquisitions. Additions of NOK 5.145 million in fiscal 2008 reflect
the effects of currency movements on EUR/NOK (goodwill in Hurtigruten GmbH). This increase is included in the gross impairment for 2008.
Other intangible assets are added through contracts and software. Intangible assets are depreciated on a straight-line basis over 3-10 years.
Accumulated depreciation is presented within depreciation in the accounts.
Impairment tests for goodwill
Goodwill is generated to the g+A120roup’s cash-generating units identified for the relevant segments.
Allocation of goodwill at segment level is summarised below:
(NOK 1 000) 2008 2007
Hurtigruten segment 1 518 106 415
Explorer cruise segment 149 172 149 172
Public transport segment 36 598 52 901
Of this assets held-for-sale (note 7) (40 808) -
Total 146 480 308 488
The recoverable amount of a cash-generating unit is calculated on the basis of the unit budget. Liquidity forecasts based on budgets approved
by management are used.
Assumptions applied when calculating recoverable amount:
(NOK 1 000)
Explorer
Public
transport (NOK 1 000) Hurtigruten
Budget/forecast EBITDA 2009 Budget/forecast EBITDA 2009-2010
Growth rate from 2010 2.50% 2.50% Growth rate from 2011 2.50%
Discount rate post tax 8.85% 8.32% Discount rate post tax 8.85%
The assumptions utilised for the company’s budget and forecasts are based on its business plan and historical revenue, in addition to the management’s
cost and revenue expectations. The discount rate is based on the company's internal required rate of return in addition to the observable
required rate of return for similar companies. The growth rate in the terminal (after 2010) is based on the nominal growth rate.
Impairment and other intangible assets:
This year's impairment charge relates to software not included in the group's planned continued business, and partly comprises booking
solutions in Norway and USA.
Hurtigruten asa 2008

76 Annual accounts – group
Note 10 Investment in associates
(NOK 1 000) 2008 2007
Carrying amount 1 January 111 235 86 762
Disposals in associates (11 562) (7 018)
Share of profit/(loss) after tax 13 645 29 580
Other equity movements - 1 911
Carrying amount 31 December 113 318 111 235
Investments in associates recognised as held-for-sale (note 7) (84 852) -
Carrying amount 31 December on continued business 28 466 111 235
The company's share of profit/loss, assets and liabilities in the most important associates, none of which are listed, is as follows:
Company
Registrered
office Assets Liabilities Revenues
Share of
profit/loss
Shareholding/
voting share
2007
Kyl- och Frysexpressen Mälardalen AB* Stockholm - - - (4 530) 40.9%
Nor Lines AS Stavanger 143 229 79 494 454 781 21 535 50.0%
Nor-Cargo Ltd. Grimsby, UK 45 705 41 494 125 498 9 179 50.0%
Funn IT AS Narvik 8 431 2 668 16 230 3 036 50.0%
Senja Rutebil AS Vangsvik 6 586 2 837 12 559 (8) 49.3%
ANS Havnebygningen Tromsø 3 614 2 459 1 806 369 50.0%
Of this recognised as discontinued business (note 7) - - - (21 527)
Total 207 565 128 952 610 873 8 053
* Hurtigruten ASA sold its share in the company in November 2007.
2008
Nor Lines AS Stavanger 160 132 93 032 500 575 2 975 50.0%
Nor-Cargo Ltd.* Grimsby, UK - - - 5 676 50.0%
Funn IT AS Narvik 16 165 6 453 25 649 4 609 50.0%
Senja Rutebil AS Vangsvik - - - 705 49.3%
ANS Havnebygningen Tromsø 3 739 1 551 1 806 384 50.0%
Of this recognised as discontinued business (note 7) - - - (3 680)
Total 180 036 101 036 528 030 10 670
* Hurtigruten ASA has sold its share of the company in October 2008.
Hurtigruten asa 2008

annual accounts – group
77
Note 11a Financial instruments by category
The following principles and subsequent estimates of financial instruments are applied in the balance sheet:
(NOK 1 000)
Loans and
reveivables
Assets at fair
value through
profit and loss
Derivates used
for hedging
Total
31 December 2008:
Assets as per balance sheet
Derivative financial instruments - 72 230 - 72 230
Trade and other receivables 549 967 - - 549 967
Cash and cash equivalents 528 006 - - 528 006
Of this recognised as discontinued business (note 7) (181 321) - - (181 321)
Total 896 652 72 230 - 968 882
(NOK 1 000)
Liabilities at
fair value through
profit and loss
Derivates used
for hedging
Other financial
liabilities
Total
Liabilities as per balance sheet
Borrowings - - 4 219 946 4 219 946
Derivative financial instruments (note 12) - 158 959 - 158 959
Trade and other payables - - 965 607 965 607
Of this recognised as discontinued business (note 7) - - (1 300 761) (1 300 761)
Total - 158 959 3 884 792 4 043 751
(NOK 1 000)
Loans and
receivables
Assets at fair
value through
profit and loss
Derivates used
for hedging
Total
31 December 2007:
Assets as per balance sheet
Derivative financial instruments - 41 371 6 715 48 086
Trade and other receivables 432 040 - - 432 040
Cash and cash equivalents 1 013 749 - - 1 013 749
Total 1 445 789 41 371 6 715 1 493 875
(NOK 1 000)
Liabilities at
fair value through
profit and loss
Derivates used
for hedging
Other financial
liabilities
Total
Liabilities as per balance sheet
Borrowings - - 4 581 626 4 581 626
Derivative financial instruments 23 971 - - 23 971
Trade and other payables - - 819 261 819 261
Total 23 971 - 5 400 887 5 424 858
Hurtigruten asa 2008

78 Annual accounts – group
Note 11B Credit quality of financial assets
Hurtigruten does not have a system which separates trade and other receivables in accordance with the counterparty’s credit rating. The company
is working on an overall strategy aimed at providing the necessary information and follow up in 2009. Hurtigruten has partners over a number
of years, and follows up their creditworthiness through periodic reconciliation of the sales ledger and through credit monitoring
(NOK 1 000) 2008 2007
Trade and other receivables
Counterparties with external credit rating - -
Counterparties without external credit rating 482 415 432 040
Total trade and other receivables 482 415 432 040
(NOK 1 000) 2008 2007
Cash at bank
Counterparties without external credit rating 15 771 57 620
A 60 722 235 439
AA 307 356 618 143
Total cash at bank 383 849 911 202
Of the groups cash at bank the following are provided as security for debt
(NOK 1 000) 2008 2007
Financial assets at fair value through profit and loss
Storebrand Livrente - 80 550
Other securities 30 387 21 999
Total 30 387 102 549
Derivative financial assets
Counterparties without external credit rating - 4 920
A - 40 880
AA 72 230 2 286
Total 72 230 48 086
None of the fully performing financial assets have been renegotiated over the past year.
Note 12 DERIVATEs
2008 2007
(NOK 1 000) Assets Liabilities Assets Liabilities
Forward contracts currency – classified as held for trading - - 20 276 -
Forward contracts currency – hedging - 75 962 - -
Interest rate swaps – classified as cash flow hedging - 60 129 2 723 -
Interest rate and currency swaps – classified as held for trading 72 230 - - 23 971
Forward contracts bunkers – classified as held for trading - - 21 095 -
Forward contracts – bunker hedging - 21 526 - -
Interest rate options – hedging - 1 341 3 992 -
Total 72 230 158 959 48 086 23 971
Of which non-current (fixed assets)
Forward contracts currency – classified as held for trading - - - -
Forward contracts currency – hedging - - - -
Interest rate swaps – classified as cash flow hedging - 56 666 2 723 -
Interest rate and currency swaps – classified as held for trading - - - -
Forward contracts bunkers – classified as held for trading - - - -
Forward contracts – bunker hedging - - - -
Interest rate options – hedging - 1 341 3 992 -
Total - 58 007 6 715 -
Of which short-term (current assets) 72 230 100 952 41 371 23 971
Hurtigruten asa 2008

annual accounts – group
79
All financial derivatives with which Hurtigruten is involved are held for hedging purposes. Their accounting classification as hedging instruments
may not necessarily coincide with the actual purpose, but depends on documentation requirements and other requirements as to the form of
the hedging instrument's configuration. Some of the instruments are therefore classified as held for trading. Trading derivatives are classified as
a current asset or liability. The full fair value of a hedging derivative is classified as a non-current asset or liability if the remaining maturity of the
hedged item is more than 12 months, and as a current asset or liability if the maturity of the hedged item is less than 12 months. Changes in the
fair value of the hedged instrument are recognised in equity, while changes in the fair value of trading derivatives are recognised within finance
income/cost.
For derivative trades at 31 December 2008 which did not meet the hedging criteria, the full fair value is recognised as finance income/cost. The
residual is recognised in equity and will be continuously released to the income statement until the instrument reaches the final expiry date.
Forward foreign exchange contracts - currency hedge:
Currency bought Currency sold Sold amount Forward rate Date of payment
NOK EUR 5 000 000 8.214 04.05.09
NOK EUR 5 000 000 8.215 15.05.09
NOK EUR 10 000 000 8.223 02.06.09
NOK EUR 5 000 000 8.222 15.06.09
NOK EUR 10 000 000 8.234 01.07.09
NOK EUR 10 000 000 8.226 01.07.09
NOK EUR 5 000 000 8.237 03.08.09
Interest rate derivatives
Currency Nominal amount Start date End date Fixed interest
Interest rate swaps
NOK 700 000 000 28.06.07 28.12.10 5.310%
NOK 150 000 000 29.05.07 26.02.10 5.300%
NOK 300 000 000 29.05.07 28.11.13 5.310%
NOK 100 000 000 29.05.07 30.11.09 5.330%
Interest rate options:
NOK 400 000 29.05.07 31.05.10 5.325%
Forward contracts – bunker hedging
Product Monthly tonnage Start date End date Tonnage price Currency
Fuel Oil 1738 01.01.09 31.03.09 3 566 NOK
Gasoil 930 01.01.09 31.03.09 5 775 NOK
IPE Gasoil* 155 01.01.08 31.12.12 3 621 NOK
IPE Gasoil* 106 01.01.13 31.12.15 3 621 NOK
* Oil derivative on discontinued business.
In addition the Group has conducted derivative trading in the partnership companies KirBerg Shipping KS and Kystruten KS. The traded derivatives
are interest rate and currency swaps, with the objective to hedge a fixed return in NOK for the investors in the partnership companies.
Hurtigruten asa 2008

80 Annual accounts – group
The following derivative contracts are recognised in the balance sheet at 31 December 2008:
(NOK 1 000) Fair value Acquisition cost
Recognised
period change in the
income statement
Forward foreign exchange contracts* (75 962) - 7 650
Interest rate swaps (60 129) - -
Interest rate ceiling contracts (1 341) 3 416 -
Oil derivatives** (21 526) - (172)
Interest rate and currency swaps 72 230 - 81 041
The fair value is calculated through observed forward prices in the period before 31 December 2008.
* In March 2008 the existing contract terminated and a new contract was entered. The new interest rate swap- and hedging contract meet the requirements
after IFRS whereby adjustments are continuously recognised in equity.
** In October 2008 new forward contracts on oil was entered on the coastal voyage ships. The contracts meet the requirements after IFRS
whereby adjustments are continuously recognised in equity.
(a) Forward foreign exchange contracts
The notional principal amounts of the outstanding forward currency contracts at 31 December 2008 were NOK 493 millions (2007: NOK 425 millions).
The hedged highly probable forecast transactions denominated in foreign currency are expected to occur at various dates during the next
12 months. Gains and losses are recognised in the income statement and allocated sales revenue including February 2008. In March the existing
contract terminated and a new contract was entered. The new interest rate swap- and hedging contract meet the requirements after IFRS whereby
adjustments are continuously recognised in equity. Gains and losses on forward currency contracts recognised in equity (note 18) at 31 December
2008, will reverse in the profit and loss accounts on contract maturity.
(b) Interest rate swaps
The notional principal amounts of the outstanding interest rate swap contracts at 31 December 2008 were NOK 1.65 millions (2007: NOK 1.7 million).
At 31 December 2008, the fixed interest rates were approximately 5.3 per cent (2007: 5.3 per cent), and the main floating rates were NIBOR. Gains and
losses on interest rate swap contracts (note 18) recognised directly in equity at 31 December 2008, will continuously be released to the income statement
upon maturity date of the bank borrowings (note 20).
(c) Oil derivatives
The notional principal amounts of the outstanding oil derivative contract at 31 December 2008 were NOK 82.2 millions (2007: NOK 74.7 millions).
Actual and unrealised gains and losses are recognised and allocated in the income statement as bunker costs. In October 2008 new forward
contracts on oil was entered. The contracts meet the requirements after IFRS whereby adjustments are continuously recognised in equity.
Gains and losses on oil derivatives that are recognised in equity (note 18) at 31 December 2008, will reverse in the profit and loss accounts on
contract maturity
Note 13 Trade debtors and other debtors
(NOK 1 000) 2008 2007
Trade debtors 348 376 191 911
Less: provision for impairment of trade receivables (18 848) (18 945)
Trade debtors - net 329 528 172 966
Pre-payments 52 728 53 539
Other current debtors 167 711 205 535
Trade and other debtors recognised as held-for-sale (note 7) (67 552) -
Total current debtors 482 415 432 040
Pension funds 11 161 7 732
Pre-payments 12 093 13 442
Other non-current debtors and investments 15 245 21 009
Non-current debtors and investments recognised as held-for-sale (note 7) (3 714) -
Total non-current debtors and investments 34 785 42 183
See note 36 on loans to related parties.
Fair value is estimated to be equal to the carrying amount. No concentrations of credit risk exist among trade debtors, since the company has
trade debtors in several segments. At 31 December 2008, trade receivables equivalent to NOK 179,798 million were past their due date but not
impaired. These related to a number of independent customers for whom there is no recent history of default.
Hurtigruten asa 2008

annual accounts – group
81
The ageing analysis of these trade receivables is as follows:
(NOK 1 000) 2008 2007
Up to 3 months 152 108 55 824
3-6 months 23 116 20 175
Over 6 months 4 574 31 443
Total 179 798 107 442
The carrying amounts of the company's+A38 trade and other receivables are denominated in the following currencies:
(NOK 1 000) 2008 2007
NOK 396 010 429 632
EUR 93 159 37 942
USD 7 854 3 550
GBP 17 327 886
Other currencies 2 851 2 213
Total 517 201 474 223
Movements in the provision for impairment of trade receivables are as follows:
(NOK 1 000) 2008 2007
Provision for receivable impairment at 1 January 18 945 13 082
Provision for receivable impairment 2 533 7 656
Receivables written off during the year as uncollectible (2 607) (1 788)
Unused amounts reversed (23) (5)
Total 18 848 18 945
The other classes within trade and other receivables do not contain impaired assets. The maximum exposure to credit risk at the reporting date
is the fair value of each class of receivable mentioned above.
Note 14 Inventory
The inventory of goods comprises the following categories:
(NOK 1 000) 2008 2007
Goods for sale 52 224 48 025
Spare parts 8 196 7 205
Bunker 21 531 25 544
Inventory recognised as held-for-sale (note 7) (14 167) -
Total 67 784 80 774
Goods are recognised at historical cost. An impairment charge is made if the fair value is considered to be lower than the historical cost.
Note 15 Cash and cash equivalents
(NOK 1 000) 2008 2007
Cash at bank and on hand 497 619 911 202
Market-based placements 30 387 102 547
Cash and cash equivalents recognised as held-for-sale (note 7) (113 768) -
Cash and cash equivalents in balance sheet 414 237 1 013 749
Hurtigruten asa 2008

82 Annual accounts – group
Cash and cash equivalents in the cash flow statement consist of the following:
(NOK 1 000) 2008 2007
Cash at bank and on hand 497 619 911 202
Market-based placements 30 387 102 547
Restricted bank deposits (165 448) (186 710)
Cash and cash equivalents in the cash flow statement 362 558 827 039
Market-based placements consists of the following
(NOK 1 000) 2008 2007
Securities held for trading:
Storebrand Livsforsikring - 80 550
Other securities 30 387 21 997
Total 30 387 102 547
Fair value is based on bid prices in an active market.
Note 16 Share capital and premium
(NOK 1 000)
Number
of shares
Total share
capital
Share
premium
Own
shares
Total
At 31 December 2006 19 848 394 198 484 850 095 (3 067) 1 045 513
Proceeds from shares issued 7 894 736 78 947 199 440 - 278 387
Employee share option scheme - - - 133 133
At 31 December 2007 27 743 130 277 431 1 049 535 (2 934) 1 324 033
Tax on share issue 2007 - - 6 207 - 6 207
Derivatives at fair value (note 18) - - (114 349) - (114 349)
Coverage of net loss for the year - - (191 295) - (191 295)
At 31 December 2008 27 743 130 277 431 750 098 (2 934) 1 024 594
The company issued 7 894 736 new shares, each with a nominal value of NOK 10, to existing shareholders in 2007.
A shareholder agreement dated 23 November 2005 has been concluded by Narvik local authority, the Port Authority of Narvik, Sparebanken Narvik,
Ankenes Sparebank (merged with Sparebanken Narvik in 2007), Nordlandsbanken ASA and DnB Nor ASA. This agreement relates to the shares held
by the parties in Hurtigruten ASA. In addition, Narvik Energi AS has notified that it would affiliate to the shareholder agreement. These shareholders
owned 32.94 per cent of the company’s shares at 31 December 2008. The agreement commits its parties to (i) cooperate on electing members of
the corporate assembly and directors, so that they retain their board and corporate assembly representation, (ii) attend each general meeting where
possible amendments are proposed to article two of Hurtigruten ASA's articles of association concerning the location of the company’s business
office and main administration, etc, and to vote against any such proposal, (iii) contribute to ensuring that the company does not create or acquire
any subsidiary conducting activities which would conflict with the intentions of the parties to the agreement with regard to article two, (iv) participate
in possible share issues (with the exception of Narvik local authority and the Port Authority of Narvik) limited for the individual contracting party to
a proportionate share of capital in the company at the effective merger date (1 March 2006) and limited to an overall issue of NOK 300 million. This
agreement runs until 31 December 2010. The above parties cannot transfer their shares in the company unless the buyer subscribes to this agreement,
ensuring that the share of the voting stock held by the contracting parties will not fall below the proportion held when the merger came into effect.
The board of directors has not been mandated to issue additional shares. For further information on the convertible loan, see note 33 to the consolidated
accounts.
An extraordinary general meeting held on 20 February 2009 resolved to increase the share capital by NOK 314 million. The same meeting resolved
to mandate the board to issue new shares for an amount up to NOK 170 million. For further discussion on these terms, see note 37, events after the
balance sheet date, in the consolidated accounts
Hurtigruten asa 2008

annual accounts – group
83
Shareholders owning more than 1% Domicile No of shares
Percentage
holding
NordlandsBanken ASA Bodø 3 778 967 13.62
Sparebanken Nord-Norge Tromsø 2 869 413 10.34
Sparebanken Narvik Narvik 2 809 888 10.13
Skagen Vekst AS Oslo 2 061 000 7.43
Heidenreich Entreprise L.P. USA 1 895 396 6.83
Narvik Kommune Narvik 1 382 767 4.98
Troms Kraft Invest AS Tromsø 1 257 101 4.53
Verdipapirfond Odin Oslo 1 108 500 4.00
Troms Fylkeskommune Tromsø 1 048 461 3.78
Narvik Energi AS Narvik 844 896 3.05
Goldman Sachs Int. UK 660 307 2.38
MP Pensjon Oslo 552 099 1.99
Verdipapirfond Odin Oslo 525 800 1.90
BD Trading AS Stavanger 315 979 1.14
J.M. Hansen Invest AS Tromsø 310 413 1.12
Shareholders owning more than 1% 21 420 987 77.21
Other shareholders 6 322 143 22.79
Total number of shares 27 743 130 100.00
Shares held by elected officers and senior executives in Hurtigruten ASA
Corporate assembly
No of shares
Leif Teksum, chair -
Oddmund Åsen, deputy chair -
Elisabeth Aspaker -
Bjørn Dahle -
Karen M Kuvaas 699
Ingolf Marifjæren 21 000
Hans Larsen -
Nina Hjort -
Marlen Hauge, employee representative -
Alf Petter Martinsen, employee representative -
Asbjørn L Larsen, employee representative 550
Sissel Kinn Berg, employee representative -
Board of directors
No of shares
Per Arne Watle, chair -
Marit Skog, deputy chair -
Per Heidenreich* 1 895 396
Berit Kjøll -
Olaf Larsen -
Ingvild Myhre 359
Anton Abrahamsen, worker director 620
Rigmor Sand, worker director from 5 January 2009 -
Viviann Ekanger, worker director until 5 January 2009 -
Management
No of shares
Olav Fjell, CEO** 24 040
Jens Kristian Johnsen, Deputy CEO/CFO 2 376
Leif Øverland, Product director 2 246
Trond Øverås, Marketing and PR director -
Hans Rood, Sales director -
Glen P Hartridge, Head of pricing and revenue management -
Torkild Torkildsen, Director maritime technical operations 2 225
Ole . Hienn, Director legal affairs 950
* The shares are owned through the Heidenreich Enterprise L.P. company.
** Including 23 890 shares owned through his Fjellvit AS company.
The company’s auditor holds no shares in Hurtigruten ASA.
Hurtigruten asa 2008

84 Annual accounts – group
Note 17 Retained earnings
(NOK 1 000)
At 1 January 2007 400 865
Profit/(loss) for the year (207 181)
Exchange differences (4 630)
Estimated differences on pensions 9 411
Equity adjustments in associates 14 781
Carrying amount at 1 January 2008 213 246
Profit/(loss) for the year against other equity (293 264)
Exchange differences (3 411)
Estimated differences on pensions 4 331
Changes in minority interests (3 798)
Other equity adjustments (6 518)
Carrying amount at 31 December 2008 (89 414)
Note 18 Other equity not recognised in the income statement
(NOK 1 000)
Convertible
bond
Hedging
reserve
Total
Carrying amount 1 January 2007 5 023 - 5 023
Derivative financial instruments at fair value - 3 835 3 835
Sale part of convertible loan 6 605 - 6 605
Change in convertible loan – equity component (3 798) - (3 798)
Carrying amount 1 January 2008 7 830 3 835 11 665
Derivative financial instruments at fair value - (118 184) (118 184)
Change in convertible loan – equity component (note 17) 3 798 - 3 798
Covered by the share premium account (note 16) - 114 349 114 349
Carrying amount 31 December 2008 11 628 - 11 628
For further information on the convertible loan, see note 33
Note 19 Trade creditors and other current liabilities
(NOK 1 000) 2008 2007
Trade creditors 249 565 396 999
Public duties payable 51 463 64 282
Other current liabilities 716 042 363 062
Trade creditors and other current liabilities recognised as held-for-sale (note 7) (511 996) -
Total 505 074 824 344
Hurtigruten asa 2008

annual accounts – group
85
Note 20 Borrowings
(NOK 1 000) 2008 2007
Non-current borrowings
Bank borrowings 148 007 4 091 536
Convertible bond (note 33) - 140 045
Non-current borrowings classified as held-for-sale (note 7) (99 213) -
Total non-current borrowings 48 794 4 231 581
Current borrowings
Current bank borrowings, including first year's instalment on non-current borrowings 4 024 332 350 045
Convertible bond (note 33) 146 820 -
Current borrowings classified as held-for-sale (note 7) (799 964) -
Total current borrowings 3 371 188 350 045
Total borrowings 3 419 982 4 581 626
Borrowings including hedged liabilities 3 419 982 4 581 626
Bank borrowings are secured on the company's buildings, ships, operating equipment, inventory, goods and debtors.
Carrying amount of assets provided as security 5 841 112 6 159 195
Assets pledged as security classified as held-for-sale (note 7) (1 348 451) -
Carrying amount of assets pledged as security on continued business 4 492 661 6 159 195
2008 2007
The company is exposed to interest rate changes on its borrowings based on the following repricing structure:
6 months or less 3 419 982 4 441 581
6-12 months - -
1-5 years - 140 045
More than 5 years - -
Total 3 419 982 4 581 626
2008 2007
Non-current loans mature as follows:
1-2 years 5 349 514 488
2-5 years 16 047 1 195 553
More than 5 years 27 398 2 521 540
Total 48 794 4 231 581
Carrying amount and fair value of non-current loans:
Carrying amount
Fair value
2008 2007 2008 2007
Current borrowings 3 224 368 350 045 3 192 658 350 045
Short-term convertible loan 146 820 - 150 000 -
Bank borrowings 48 794 4 091 536 48 794 4 091 536
Convertible loan - 140 045 - 144 037
Total 3 273 162 4 231 581 3 241 452 4 235 573
Hurtigruten ASA mainly borrows on floating interest rate conditions, and concludes interest rate swap agreements on the component which
policy requires should have a fixed interest rate. No substantial difference accordingly exists between the carrying amount and fair value. For further
information on the hedging instruments, see note 12 (financial derivatives). Because financial covenants have been breached, the required
return on loans is estimated to have increased by one per centage point. This means that the fair value of the loans varies from their carrying
amount. Since the loans are classified as current, the calculation of fair value has been based on a remaining term of one year. The fair value of
the loans is calculated by taking the fair value of a one per centage point increase in the interest rate discounted by a market interest rate estimated
to be six per cent nominal. The fair value of the convertible bond is estimated by adding the carrying amount to the equity component
which has been separated in the accounts in accordace with the embedded options regulation.
Hurtigruten asa 2008

86 Annual accounts – group
Carrying amounts of company borrowings contiued business in the different currencies are as follows
2008 2007
NOK 3 016 342 4 232 082
EUR 302 856 263 509
GBP - -
USD 100 784 86 035
SEK - -
Total 3 419 982 4 581 626
The company has clauses on financial covenants related to parts its loan portfolio. According to these clauses, the following conditions must be
met:
yy The group’s working capital and unused credit facilities must be positive.
yy The group must maintain a free liquidity of at least NOK 200 million over the lifetime of the loan.
yy EBITDA must be greater than the group’s annual debt obligation or the group’s free liquidity (with credit facilities included) must be a minimum
of NOK 350 million.
yy An equity ratio of 22.5 per cent up to and including 30 June 2009, where the convertible bond issued by Hurtigruten ASA is treated as
equity under the loan agreement. From 30 September 2009 up to and including 30 June 2010 the equity ratio must be 25 per cent, and from
30 September 2010 onwards the equity ratio must be 27.5 per cent.
These financial covenants were not met at 31 December. The syndicate banks temporarily waived their conditions on the financial covenants at
31 December 2008 to the end of January 2009. Since these conditions had not been waived for one year ahead, all borrowings with financial
covenants are presented as current borrowings, implying that the company's non-current borrowings consist only of debt with ordinary terms.
A new agreement was entered into in February 2009 which includes a new instalment profile and new conditions. See note 37, events after the
balance sheet date, in the consolidated accounts for further information
Note 21 Deferred income tax
Deferred income tax assets and liabilities are offset when a legally enforceable right exists to offset current tax assets against current tax liabilities
and when the deferred income taxes relate to the same fiscal authority. All differences have been reversed over 12 months as a result of different
tax assessments for all companies. The offset amounts are as follows:
(NOK 1 000) 2008 2007
Deferred tax assets:
Deferred tax asset to be recovered after more than 12 months (658 761) (439 684)
Deferred tax asset to be recovered within 12 months - -
Total deferred tax assets (658 761) (439 684)
Deferred tax:
Deferred tax to be recovered after more than 12 months 606 148 688 081
Deferred tax to be recovered within 12 months - -
Total deferred tax 606 148 688 081
Net deferred tax/tax asset (52 613) 249 164
Deferred tax on discontinued business (note 7) (9 152) -
Deferred tax - net/deferred tax asset on continued business (61 765) 249 164
Change in carrying amount of deferred tax:
Carrying amount at 1 January 248 397 329 786
Recognised in the income statement during the period (note 29) (146 606) (68 790)
Tax recognised directly in equity (47 952) (6 306)
Corrections owing to previous year's error (1) (6 293)
Deferred tax on discontinued business (note 7) (9 152) -
Deferred tax asset not recognised in the balance sheet (4 903) -
Carrying amount at 31 December 39 783 248 397
Change in carrying amount of deferred tax asset - net
Carrying amount at 1 January - -
Income statement charge (note 29) (101 548) -
Deferred tax related to change in SPE ownership - -
Tax charged directly to equity - -
Carrying amount at 31 December (101 548) -
Hurtigruten asa 2008

annual accounts – group
87
Change in deferred tax assets and deferred tax:
Deferred tax:
(NOK 1 000)
Fixed
assets
Other
differences
Total
1 January 2007 575 728 37 129 612 857
Charged/(credited) to the income statement 33 209 42 015 75 224
Equity adjustments - - -
31 December 2007 608 937 79 144 688 081
Charged/(credited) to the income statement (3 058) (32 915) (35 973)
Equity adjustments - (45 960) (45 960)
31 December 2008 605 879 269 606 148
Deferred tax assets:
(NOK 1 000)
Provisions for
liabilities
Loss carried
forward
Current
assets
Total
1 January 2007 (4 189) (274 974) (3 908) (283 071)
Charged/(credited) to the income statement (37 828) (103 936) (2 250) (144 014)
Equity adjustments 1 034 (13 633) - (12 599)
31 December 2007 (40 983) (391 776) (6 158) (439 684)
Charged/(credited) to the income statement (2 042) (199 102) (11 038) (212 182)
Not recognised deferred tax asset in balance sheet - (4 903) - (4 903)
Equity adjustments 916 (2 908) - (1 992)
31 December 2008 (42 109) (599 456) (17 196) (658 761)
Deferred tax assets are recognised for tax loss carry-forwards to the extent that realisation of the related tax benefit through future taxable profits
is probable. The tax loss carry-forwards at 31 December 2008 amounted to NOK 2 138 million.
Deferred tax recognised (charged) directly to equity in 2008 is as follows:
2008 2007
Tax on estimate differences on pension benefits 916 (2 908)
Tax on issue costs - (6 044)
Tax on financial assets recognised in equity (45 960) -
Other adjustments to equity (2 908) (1 296)
Total (47 952) (10 248)
Hurtigruten asa 2008

88 Annual accounts – group
Note 22 Pensions
The company has pension plans which give the right to defined future benefits. These benefits depend primarily on the number of contribution
years, the level of pay at retirement and the size of National Insurance payments. The obligations are covered though insurance companies, and
cover 2 764 employees in the company. In addition to the pension obligations met by the funded plans, the company has unfunded pension
obligations. These relate to the AFP early retirement scheme and plans financed from operations.
Economic assumptions:
2008 2007
Discount rate 3.80% 4.70%
Expected return on pension fund assets 5.80% 5.75%
Expected annual pay regulation 4.00% 4.50%
Expected annual adjustment in NI base rate 1.50% 2.00%
Expected annual adjustment of pension benefits 3.85% 4.25%
Table book used when estimating liabilities K2005 K2005
Table book used as assumption for disablement IR02 IR02
Average remaining period of service until retirement 16 years 16 years
The average life expectancy of a pensioner retiring at age 67 is as follows:
2008 2007
Female 17.7 years 19.0 years
Male 14.1 years 15.8 years
The average life expectancy of a pensioner retiring at age 67 20 years after the balance sheet date is as follows:
2008 2007
Female 18.6 years 19.4 years
Male 15.6 years 16.5 years
The amounts recognised in the income statement are as follows:
(NOK 1 000) 2008 2007
Present value of pension earnings for the year 41 529 47 441
Contributory scheme for maritime employees 41 911 36 325
Interest expenses on accrued pension obligations 21 970 20 803
Expected return on pension fund assets (18 073) (17 372)
Plan changes (17 268) (4 546)
Net pension expense funded from operations 1 943 267
Payroll tax 4 361 2 227
Pension expense included in staff costs 76 373 85 145
Specification of net pension assets/liabilities:
(NOK 1 000) 2008 2007
Present value of accrued funded obligations at 31 December 341 572 469 713
Estimated fair value of pension assets at 31 December 252 134 363 168
Total 89 438 106 545
Present value of unfunded obligations 43 188 8 003
Present value of pension obligations met from operations 26 899 57 634
Net pension obligation 159 525 172 182
Of this recognised as discontinued business (note 7) (44 416) -
Net carrying amount of pension obligations on continued business 203 941 172 182
Hurtigruten asa 2008

annual accounts – group
89
Net pension assets/liabilities are classified in the balance sheet as follows:
(NOK 1 000) 2008 2007
Other non-current receivables (note 13) 11 161 7 732
Pension obligations 126 270 179 914
Of this recognised as discontinued business (note 7) (44 416) -
Net pension obligations 159 525 172 182
Movement in the carrying amount of pension obligations:
(NOK 1 000) 2008 2007
Pension obligation 1 January 535 351 539 963
Net present value of pension earnings for the year 41 529 47 441
Interest cost 21 970 20 803
Actuarial gains/(losses) (22 923) (30 629)
Estimate differences 31 December 2005 7 583 9 280
Discontinuance of pension plans (plan changes) (150 803) (17 519)
Disposal of subsidiaries - (13 610)
Pensions paid (21 047) (20 378)
Pension obligation 31 December 411 660 535 351
The movement in the fair value of plan assets for the year is as follows:
(NOK 1 000) 2008 2007
Fair value 1 January 363 168 353 310
Expected return on plan assets 18 073 17 372
Actuarial gains/(losses) (16 908) (8 278)
Paid-up policy and disbursement, discontinuance of plan (change) (134 249) (10 695)
Employer contributions 39 504 36 391
Employee contributions - 1 273
Disposal of assets through sale of subsidiaries - (9 881)
Pensions paid (17 453) (16 324)
Fair value 31 December 252 135 363 168
Plan assets are structured as follows:
2008 2007
Equities 8.9% 24.8%
Current bonds 32.0% 21.5%
Money market 6.1% 7.5%
Non-current bonds 30.0% 27.7%
Real property 17.0% 15.6%
Other 6.0% 2.9%
Total 100.0% 100.0%
The actual return on plan assets was 3.91% 9.50%
(NOK 1 000) 2008 2007
The company's expected contribution to funded plans next year 42 593 36 451
The group has established mandatory occupational pension schemes for the required companies. These schemes comply with the Norwegian
Act on Mandatory Occupational Pensions.
Hurtigruten asa 2008

90 Annual accounts – group
Note 23 Provisions for other liabilities and charges
(NOK 1 000)
Deferred revenue
recognition
Restructuring
Other
liabilities
Total
Carrying amount 1 January 2007 12 690 13 142 - 25 832
Provisions for the year - - 59 400 59 400
Reversal of provisions from previous year (5 933) (13 142) - (19 075)
Carrying amount 31 December 2007 6 757 - 59 400 66 157
Provisions for the year - 30 000 42 714 72 714
Reversal of provisions from previous year (808) - (31 199) (32 006)
Carrying amount 31 December 2008 5 950 30 000 70 915 106 864
Of this recognised as discontinued business (note 7) - - (70 915) (70 915)
Carrying amount 31 December 2008 on continued business 5 950 30 000 - 35 950
Recognition in the balance sheet:
Non-current liabilities (deferred revenue recognition) 5 950
Of this recognised as discontinued business -
Non-current liabilities on continued business 5 950
Current liabilities 100 915
Of this recognised as discontinued business (note 7) (70 915)
Current liabilities on continued business 30 000
Deferred revenue recognition:
The company received a contribution amounting to NOK 6.4 million in 2006 from an associate. The contribution was recognised as deferred revenue
since the associate had not built up a sufficient surplus during the ownership period. In 2007, the company recognised NOK 5.8 million as
revenue since the associate had built up a sufficient surplus. The residual of the dividend, NOK 641 000, has been recognised in 2008 since the
associated company had built up a sufficient surplus.
A line-by-line recognition has also been carried out with respect to the received investment contribution, including a possible repayment obligation.
Revenue recognition of the investment contribution will occur in conjunction with depreciation of the associated asset. The remainder of the
investment contribution at 31 December 2008 amounted to NOK 5.95 million.
Restructuring:
In connection with the cost-saving programme, a provision has been made in respect of double functions in downsizing processes as well as costs
relating to the divestment of offices, companies and other functions.
Provision for bad debts
Loss on contracts is related to the agreement with Troms county council on the operation of fast and county road ferries. This contract yields a
substantial loss because the sharp rise in bunker costs and the actua development inl passenger number do not give a right to regulate contractual
revenues. The contract expired on 31 December 2007, but Troms county council has a unilateral right to extend the contract for three one-year
periods. Two of these options have been exercised. Pursuant to IAS 37, a provision of NOK 59.4 million related to the contract was accordingly
made at 31 December 2007. Troms county council has refrained from exercising its final one-year extension, and the contract will therefore terminate
at 31 December 2009. NOK 31.2 million of the provision was accordingly reversed in 2008. The remaining NOK 28.2 million of the provision
will be charged to income as the contract progresses in 2009.
A contract was concluded with Torghatten Nord AS in late 2008 on the sale of a substantial part of the ferries and fast ferry business. This sale
excludes five fast ferries with four associated servicesin Troms county, which will be continued by Hurtigruten ASA until the contract with Troms
county council expires at 31 December 2009. The sale was closed on 5 January 2009. It represented an accounting loss of NOK 103 million for the
company, which was recognised in the fourth quarter of 2008.
For further information, see note 37, events after the balance sheet date.
Hurtigruten asa 2008

annual accounts – group
91
Note 24 Public procurement of services
The company's revenues related to public procurement of services are as follows:
(NOK 1 000) 2008 2007
Revenues relating to public transport from Nordland county council 140 982 73 475
Revenues relating to public transport from Troms county council 249 489 203 646
Revenues relating to public transport from Møre og Romsdal county council - 53 822
Revenues relating to public transport from the Norwegian Public Roads Administration 332 463 382 607
Revenues relating to Hurtigruten from the Ministry of Transport and Communications 418 056 265 486
Of this recognised as discontinued business (note 7) (722 934) (713 550)
Total 418 056 265 486
Public procurement of services is related to the procurement of services for Hurtigruten, ferries and fast ferries, and the bus business. Following
an open competitive tender in 2004, Hurtigruten will operate the coastal service from Bergen to Kirkenes until the end of 2012. However, the
government, represented by the Ministry of Transport and Communication, has begun work on the basis for a competitive tendering process for
operation of Bergen-Kirkenes coastal service with the aim of agreeing a new contract for this procurement. The ministry has signalled that a new
agreement could be effective from 1 January 2010. The existing contract with Hurtigruten ASA will be terminated when a new agreement is initiated
with the chosen operator.
Contracts for ferries and fast ferry services in Troms county run until 31 December 2007 through an area licence, with the county council holding
three options for one-year extensions. The county has confirmed in writing that it will not exercise the final option, which means that 2009 is the
last year for this contract. Contracts for fast ferry operations in Nordland run until 31 December 2011, while contracts for the operation of ferries
expire on 31 December 2008. The contracts apply for calendar years, but are extended annually in accordance with the licence terms. The contract
for the ferry service in Møre og Romsdal runs until 31 December 2007.
Hurtigruten ASA sold its ferry and fast ferry business at 5 January 2009. Five fast ferries currently operating four services in Troms county were
excluded from this sale.
Revenue from public procurement is included within profit/(loss) before tax on discontinued business.
Note 25 Other (losses)/ gains - net
Other (losses)/gains – net comprise the following items:
(NOK 1 000) 2008 2007
Gain on sale of shares 16 940 (199)
Gain on sale of tangible fixed assets 1 042 29 432
Loss on sale of tangible fixed assets (71 515) -
Loss on contracts - (59 400)
Of this recognised as discontinued business (note 7) (71 407) (53 155)
Total 17 874 22 988
Loss on the sale of tangible fixed assets arises from the disposal of the ferries and fast ferry business in Troms county. This sale was closed at 5
January and yielded an accounting loss of NOK 103 million. NOK 32 million has been recognised in the accounts as an impairment charge on
ships, while NOK 71 million is recognised as loss on the sale.
Loss on contracts relates to the contract with Troms county council for the operation of fast ferries and county road ferries. This contract yields
a substantial deficit because the sharp rise in bunker costs and the actual development in passenger numbers do not confer a right to regulate
contract revenues. The contract expired on 31 December 2007, but Troms county council has had a unilateral right to extend it for three periods
of one year. Troms county council has decided not to exercise its final option, which means that 2009 will the last year of the contract.
Hurtigruten asa 2008

92 Annual accounts – group
Note 26 Payroll expenses
(NOK 1 000) 2008 2007
Pay 1 172 239 1 150 082
Payroll tax 81 437 66 011
Pension expense (note 22) 76 373 85 145
Other benefits 72 899 61 353
Of this recognised as discontinued business (note 7) (613 989) (522 087)
Total 788 959 840 503
Average number of employees 3 039 3 017
Note 27 Remuneration, etc
Figures for 2008:
(NOK 1 000) Position Salary Pension
Other
remuneration Borrowings Fee
Olav Fjell CEO 3 763 - 194 - -
Jens Kristian Johnsen Deputy CEO/CFO 2 007 440 144 - 85
Leif Øverland Product director 1 759 457 196 100 -
Trond Øverås Marketing and PR director 1 119 - 138 - -
Torkild Torkildsen Director maritime technical operations 988 - 169 - -
Glen Hartridge Head of pricing and revenue management 707 - 31 - -
Ole Fredrik Hienn 1) Director legal affairs 1 481 - 133 - 100
Hans Rood 2) Sales director 1 846 - - - -
Bjørn Laksforsmo Group director ferries and fast ferries 942 - 134 - -
Per Arne Watle Chair of the board - - - - 138
Marit Skog Deputy chair - - - - 124
Per Heidenreich Board member - - - - 55
Berit Kjøll Board member - - - - 55
Olaf Larsen Board member - - - 55
Ingvild Myhre Board member - - - 55
Viviann Ekanger
Board member, staff representative up to
- - - - 48
5 January 2009
Anton Abrahamsen Board member, staff representative - - - - 113
Rigmor Sand
Board member, staff representative from
- - - - -
5 January
Siv Sandvik Alternate director, shareholder-elected - - - 55
Rolf Andersen Observer board - - - - 25
Herodd Widding Observer board - - - - 25
Alternates - - - - 66
Previous directors and observers - - - - 410
Corporate assembly - - - - 308
Auditor’s fees - statutory audit 3 - - - - 5 177
Auditor’s fees – assistance IFRS, accounts and tax documents - - - - 1 501
Auditor’s fees – assistance issue/merger - - - 251
Auditor’s fees – other assistance - - - - 557
1) Fees from directorships in associates
2) Hans Rood's salary was paid by Hurtigruten Inc and converted from USD
3) Includes extended quarterly audits
Olav Fjell, the company’s chief executive, who was employed on 10 September 2007, has a contract with the company stipulating an annual salary of
NOK 4 million. Other benefits include free car and ordinary remuneration to cover telephone, internet, newspapers and home PC. He is also entitled
to a bonus determined by the board of directors. This bonus can amount to one-third of his salary. His terms of employment do not include pension
obligations. Should his appointment be terminated by the board of directors, Hurtigruten ASA is required to continuing paying his salary for 12
months. Possible remuneration received from another permanent appointment during this period would be deducted from the salary entitlement with
Hurtigruten ASA. If the chief executive resigns at his own wish after a minimum of three year’s employment, Hurtigruten ASA is required to continue
paying his salary for 18 months. Possible remuneration received from another permanent appointment during this period would not be deducted
from the salary entitlement with Hurtigruten ASA. The company’s deputy chief executive/CFO is entitled to termination pay for 12 months without deduction
if he resigns at his own wish. The company has an early retirement scheme for the deputy chief executive/CFO and the product director which
applies from the age of 62 until the normal age of retirement at 67 and which provides a pension of 65 per cent of salary at retirement.
Hurtigruten asa 2008

annual accounts – group
93
The board of directors resolved at a meeting on 26 February 2008 to introduce a performance-based bonus scheme for the executive management
with effect from 1 January 2008. Bonus payments will be limited to one-third of the executive's annual salary, with 25 per cent of the bonus determined
on the basis of the company's result and the remaining 75 per cent on the basis of results forthe executive's own area of responsibility. The
result in the executive's own area of responsibility will be assessed in relation to predefined objectives/parameters. The bonus scheme applies to the
executive managemen with the exception of the chief executive. The bonus scheme for the chief executive is outlined above. No bonius payments
will be made for 2008.
Figures for 2007:
(NOK 1 000) Position Salary Pension
Other
remuneration Borrowings Fee
Olav Fjell CEO 1 236 - 32 - -
Henrik Andenæs Former CEO 2 232 1 385 3 117 - -
Jens Kristian Johnsen Deputy chief executive/ CFO 1 698 334 130 - 85
Leif Øverland Executive VP Hurtigruten 1 602 311 195 100 -
Trond Øverås Executive VP explorer cruise 947 - 76 - -
Torkild Torkildsen Executive VP tech/mar operations 943 - 159 - -
Bjørn Laksforsmo Executive VP ferries and fast ferries 769 - 126 - -
Ole Fredrik Hienn Executive VP staff functions 1 225 - 125 - 100
Hans Rood 1) Executive VP sales 1 283 - 525 - -
Ole Lund Chair of the board - - - - 475
Gry Mølleskog Deputy chair - - - - 138
Torvall Lind Board member - - - - 110
Oddmund Helgesen Board member - - - - 110
Marit Skog Board member - - - - 110
Tor Bjerkan Board member - - - - 110
Edel Storelvmo Board member - - - - 110
Anton Abrahamsen Board member - - - - 110
Jan Egil Sletteng Observer board - - - - 43
Randi Heggelund Observer board - - - - 43
Corporate assembly - - - - 174
Auditor’s fees - statutory audit 2 - - - - 3 944
Auditor’s fees – assistance IFRS, accounts and tax documents - - - - 1 592
Auditor’s fees – assistance issue - - - - 2 320
Auditor’s fees – assistance merger - - - - 177
Auditor’s fees – other assistance - - - - 1 288
1) Hans Rood's salary was paid by Hurtigruten Inc and converted from USD
2) Includes extended quarterly audits
In connection to the departure of Henrik Andenæs, the former chief executive, an agreement was reached on pay after termination of employment
amounting to NOK 3 million, equivalent to 18 months salary. NOK 1 385 000 was also paid to an insurance company to terminate the pension
agreement. After this payment, the company has no further pension obligations to the previous chief executive.
Jens Kristian Johnsen, the company’s deputy chief executive/CFO, is entitled to termination pay for 12 months without deduction if he resigns
at his own wish after serving until 1 July 2007. This entitlement applies until 31 December 2008. After that date, the entitlement is conditional on
major changes to the company structure or the like.
STATEMENT ON THE DETERMINATION OF
PAY AND OTHER REMUNERATION FOR
SENIOR EXECUTIVES OF HURTIGRUTEN ASA
Guidelines for determining remuneration
for senior executives of Hurtigruten ASA
The following guidelines were adopted with
effect from 17 March 2009.
1. Definitions
1.1 Senior executives include the company’s
chief executive and other senior executives,
confer Proposition no 55 to the Odelsting
(2005-2006), which refers to provisions of the
Norwegian Accounting Act and the Norwegiaqn
Public Limited Companies Act with respect to
“senior executives”.
1.2 In these guidelines, a compensation scheme
refers to a pay package comprising one or more
of the following components: fixed pay, variable
pay (bonus , share programme, options,
etc) and other benefits (pension provision, termination
payments, fringe benefits, etc).
1.3 Termination pay involves compensation
associated with termination of employment,
and may involve termination pay, other financial
benefits and payments in kind.
2. Fundamental principles for determining
compensation schemes
2.1 Remuneration for senior executives of
Hurtigruten ASA should be competitive, but
not market-leading by comparison with similar
companies.
2.2 The main element in a compensation
scheme should consist of fixed pay.
2.3 Compensation schemes must be formulated
to avoid unreasonable benefits arising as
a result of external circumstances which management
cannot influence.
2.4 The individual elements in a pay package
must be viewed as a whole, with fixed pay, possible
variable pay and other benefits such as
pension schemes and termination benefits. The
board of directors must have an overview of the
aggregate value of the each senior executive's
agreed compensation.
2.5 The whole board of directors is responsible
for determining guidelines on the remuneration
of senior executives. Remuneration for the
company’s chief executive is determined by the
board of directors.
2.6 The board of directors must ensure that
remuneration schemes do not have unfortunate
effects for the company or weaken its
reputation.
2.7 Senior executives must not receive special
remuneration for directorships in wholly owned
subsidiaries within the same group.
2.8 Agreements reached before these guide-
Hurtigruten asa 2008

94 Annual accounts – group
lines came into effect can be maintained.
3. Variable pay
Possible variable pay must be based on the
following principles:
3.1 A clear connection must exist between the
underlying goals of the variable pay and the
goals of the business.
3.2 Variable salary must be based on criteria
which are objective, definable and measurable.
3.3 These criteria must be based on conditions
which the senior executive is able to influence.
3.4 Several relevant performance criteria should
be applied.
3.5 A variable pay scheme must be transparent
and comprehensible. When explaining the
scheme, it is important to identify the expected
and maximum payments for each participant in
the programme.
3.6 The scheme must be run for a defined
period of time.
3.7 Total variable pay in each year should not
exceed six month's fixed pay unless this is justified
by exceptional circumstances.
4. Pension schemes
4.1 Pension terms must be in time with the
terms enjoyed by other employees pf the company.
4.2 Should a retirement age lower than the
National Insurance age of 67 be agreed, this
should general not be lower than the age of
65.
4.3 An agreement on pension provision must
be based on the period of pension earning
which applies to other similar employees of the
company.
4.4 Accrued entitlements from other jobs must
be taken into account.
4.5 The overall entitlement should not exceed
66 per cent of the salary. Pension entitlement
must be reduced for persons retiring before
the age of 65.
4.6 The board of directors must have an overview
of the total cost of a pension agreement
before it is entered into.
5. Termination pay
5.1 In an agreement concluded in advance
whereby the chief executive waives his
employment protection rights pursuant to the
Norwegian Working Environment Act, agreement
may be reached on termination pay. This
should not apply in the event of voluntary resignation
unless justified by special reasons.
5.2 Termination pay should not exceed 12
months of fixed pay in addition to possible salary
paid during the period of notice.
5.3 When the person concerned is appointed
to a new position or receives income from a
business activity of which they are an active
owner, termination pay should be reduced
by a proportionate amount calculated on the
basis of the new annual income. This reduction
should first occur after the end of the normal
period of notice.
5.4 Termination pay must not be paid if the
conditions exist for dismissal, or if irregularities
or negligent acts are discovered during the
period when the termination pay is paid which
could give rise to a compensation liability or to
charges against the person concerned for illegal
behaviour.
Determination of remuneration for senior executives
of Hurtigruten ASA in 2008 is presented
in note 26 to the consoludated accounts and in
note 5 to the parent company accounts.
Note 28 Financial items
(NOK 1 000) 2008 2007
Interest expenses:
- bank loans 320 009 334 638
- convertible loan (note 33) 17 275 14 673
- currency loss 116 411 10 439
- other interest costs 3 643 11 420
Finance costs 457 338 371 170
Interest income on short-term bank deposits (34 737) (106 101)
Currency gain (20 431) (27 942)
Other finance income (19 010) (11 151)
Financial assets – fair value (81 559) (7 958)
Of this recognised as discontinued business (note 7) (32 109) (26 355)
Net finance costs 269 492 191 663
Note 29 Tax expense
Tax expense for the year breaks down as follows:
(NOK 1 000) 2008 2007
Tax payable (18 864) (14 298)
Change in deferred tax/deferred tax asset (note 21) 248 154 68 790
Total tax expense 229 290 54 492
Of this tax on discontinued business (note 7) 116 799 (6 532)
Total tax expense on continued business 112 491 61 024
Discontinued business
Tax payable (2 841) -
Change deferred tax 119 640 (6 532)
Total tax expense on discontinued business (note 7) 116 799 (6 532)
Hurtigruten asa 2008

annual accounts – group
95
Tax on the company's profit before tax differs from the theoretical liability which would arise using the weighted average tax rate applicable to
profits of the consolidated entities as follows:
(NOK 1 000) 2008 2007
Profit/(loss) before tax (686 193) (228 479)
Tax calculated at domestic tax rates applicable to profits in the respective countries 203 937 58 515
Change in tax expense owing to:
- income not subject to tax 17 006 5 768
- expenses not deductible for tax purposes (50 165) (3 886)
- tax on entries to equity - (4 239)
- tax on revenue from limited companies (DA) (4 396) (1 666)
- utilisation of previously unrecognised tax losses 76 -
- reversal of deferred tax after winning tax case 78 764 -
- not recognised deferred tax assets (4 903) -
- various entries (currency differences, corrections) (11 029) -
Tax expense on continued and discontinued business 229 290 54 492
Weighted average tax rate (32.01%) (23.85%)
The increase in the weighted average tax rate reflects changes to profits for subsidiaries abroad and change in deferred tax/deferred tax assets
following the tax case (see note 34).
Note 30 Net currency gain/ (loss)
Currency differences are (expensed)/recognised as revenue in the income statement as follows:
(NOK 1 000) 2008 2007
Other operating revenue (13 287) (5 789)
Other operating expenses (1 897) (244)
Net finance revenue/(expense) (95 980) 17 503
Total (111 164) 11 470
Note 31 Earnings per share
Basic earnings per share are calculated by dividing the profit attributable to equity holders of the company by the weighted average number of
ordinary shares in issue during the year, excluding ordinary shares purchased by the company and held as treasury shares (note 16).
(NOK 1 000) 2008 2007
Profit/(loss) attributable to equity holders of the company (484 559) (210 673)
Weighted average number of ordinary shares in issue 27 449 758 21 528 706
Basic earnings per share (NOK per share) (17.65) (9.79)
Basic earnings per share (NOK per share) - continued business (15.52) (12.12)
Diluted earnings per share
Diluted earnings per share are calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of
all potential ordinary shares which could give rise to dilution. The company has one category of potential ordinary shares which could give rise
to dilution - a convertible loan. This convertible loan is not expected to be converted to ordinary shares on the basis of today’s share price. As a
result, no adjustment of the convertible loan has been made in this connection.
Diluted earnings per share will accordingly be identical with earnings per share for 2007 and 2008.
Note 32 Dividend per share
No dividend was paid in 2007. Nor has a dividend been proposed for fiscal 2008. The minority’s share of dividend from subsidiaries is classified
as a liability from the date that the dividend is approved by the general meeting.
Hurtigruten asa 2008

96 Annual accounts – group
Note 33 Convertible loan
The merged company TFDS ASA issued 150 000 convertible bonds with an interest rate of seven per cent at a nominal value of NOK 150 million
on 15 June 2004.
The term to maturity is five years from the issue date. The loan is irredeemable and should be paid back in full on 8 June 2009. The bondholder
has the right to convert the bonds to shares in Hurtigruten ASA at any time in the period from 15 June 2004 to 8 June 2009 (final conversion
date), as long as the legal requirements are met. This must be done 10 banking days before the conversion date. The conversion right can not
be separated from the bonds.
The initial conversion rate was set at NOK 110 per share in TFDS. The conversion rate is to be adjusted on the basis of a predetermined rule
that existing shareholders are given the right to subscribe to new shares in the company. This means that the conversion rate was adjusted to
NOK 97.05 after the merger of OVDS and TFDS and the share issue of November 2007. The conversion rate is expected to be adjusted after the
implementation of the subsequent share issues and the issue to employees. This change is expected to be made at the beginning of April 2009.
The conversion rate can never be increased as a result of an adjustment.
The fair values of the debt component and the component related to equity conversion element were determined when the loan was raised.
The equity component was separated out at 1 March 2005, when IAS 39 was implemented, and subsequently adjusted at the merger on 1 March
2006 since OVDS owned one-third of the convertible loan in TFDS.
The fair value of the debt component, included in non-current liabilities, is calculated using a market interest rate for an equivalent non-convertible
loan. The residual amount, representing the value of the equity component, is recognised in equity within other equity not recognised in the
income statement.
The convertible loan recognised in the balance sheet is calculated as follows:
(NOK 1 000)
Konvertibelt lån
Debt component 1 January 2007 88 727
Interest expense (note 28) 14 673
Interest paid (10 500)
Sold shares in 2007 47 145
Debt component 1 January 2008 140 045
Interest expense (note 28) 17 275
Interest paid (10 500)
Debt component 31 December 2008 146 820
The interest expense on the loan is calculated using the effective interest method by applying the effective interest rate of 11 per cent to the
debt component.
Note 34 Contingent outcomes
Contingent liabilities
At 31 December 2008, the company had contingent liabilities relating to bank guarantees and other guarantees, in addition to other contingent
outcomes in the course of regular operations. Significant liabilities are not expected to arise with respect to contingent outcomes, with the exception
of the provisions already made in the accounts (note 23).
In connection to the sale of the shares in Nor-Cargo Holding AS in 2004, the company takes the view that the capital gain should be recognised
under the Norwegian tax exemption model, which involves a tax exemption for such gains.The Ofoten tax assessment office resolved in 2006
that the capital gain would not be recognised under this model, so that the gain became liable to tax. Hurtigruten included a provision of NOK
79 million for the possible tax liability in its 2006 accounts. The tax case was taken to court, where the view taken by the Ofoten tax assessment
office was upheld. This judgement was appealed to the appeal court in November 2008. The court found in favour of the Hurtigruten ASA case
that the capital gain should fall within the tax exemption model. The provision made for capital gains tax in the 2006 accounts has therefore
been reversed in the annual accounts for 2008. The entry is recognised as a tax charge on discontinued business. The government appealed the
decision to the Supreme Court’s appeals committee, which resolved on 17 March 2009 that the case will be considered by the court.
NOK 60.5 million in nitrogen oxide tax was charged to the annual accounts for 2007. NOK 21.3 million has been charged for this tax in the 2008
accounts, following a reduction after the company joined the nitrogen oxide fund. Members of this fund have collectively undertaken to reduce
emissions of these gases by 30 000 tonnes in total, broken down into 2 000 tonnes in 2008, 4 000 in 2009 and 24 000 in 2010. The Norwegian
Pollution Control Authority will monitor that the fund reaches its collective goals. If these are not met, the members can be required to pay the
full amount of the tax on their respective share of the emissions. This requirement will be calculated on the basis of the per centage share of the
collective goals which fail to be achieved.
Hurtigruten asa 2008

annual accounts – group
97
The Norwegian Storting (parliament) resolved in December 2008 to appropriate an additional NOK 125 million for the public procurement
contract in 2008. This extra appropriation includes a calculated NOK 52 million in compensation for nitrogen oxide tax paid in 2008, a calculatedNOK
7 million as 90 per cent of payments to the nitrogen oxide fund for the first half of 2008, and a calculated NOK 6 million as general
compensation for 2008. The Ministry of Transport and Communications is due to submit a new proposal to the Storting on compensation for
payments to the nitrogen oxide fund for the second half of 2008 and for 2009, in addition to continuing the general compensation.The general
compensation is due to be maintained throughout the term of the existing contract unless the company’s earnings from the contract substantially
improves. The Ministry of Transport and Communications has assumed that the additional appropriation accords with the regulations on state
aid. Should the Efta Surveillance Authority (ESA) consider that the payment conflicts with the European Union's rules on government subsidies,
however, all or part of the compensation could be clawed back.
Note 35 Liabilities
Investment liabilities
The company has not entered into any contractural investment at the balance sheet date.
Operating lease commitments – group company as lessee
The company leases an office in Tromsø in addition to some other offices. These leases have varying terms, escalation clauses and renewal rights
The company also leases machinery and transport equipment. Leasing costs for the year recognised in the income statement are shown in note 8.
The parent company contracted in December 2002 and June 2003 to sell and charter back Hurtigruten vessels m/v Nordlys and m/v Richard
With. These ships were sold to KirBerg Shipping KS and Kystruten KS respectively, and chartered back for 15 years with options for an additional
five years on market terms. The parent company has an option to buy the vessels back after 15 and 10 years. Charter fees for the first 15 years
comprise three components – a fixed fee in NOK, a fixed fee in USD/EUR and a variable element in USD/EUR.
In the consolidated accounts, Kystruten KS and KirBerg Shipping KS have been consolidated in accordance with IFRS SIC-12 as special purpose
entities. Recognised bareboat charges in the income statement have been eliminated as internal transactions on consolidation.
A bank guarantee of NOK 104 million has been provided for fulfilment of the charters, which is reduced annually by NOK 4.2 million. Hurtigruten
ASA will undertake and pay for operation, insurance and all necessary on-going maintenance of the vessels. The charterparties between the
limited partnerships and Hurtigruten ASA impose identical financial covenants on Hurtigruten ASA for the duration of the contracts as with the
company’s syndicated loan. These covenants specify as follows:
yy The group's working capital and unused credit facilities must be positive.
yy The group must maintain a free liquidity of at least NOK 200 million over the lifetime of the loan.
yy EBITDA must be greater than the group’s annual debt obligation, or the group’s free liquidity (with credit facilities included) must be a
minimum of NOK 350 million.
yy An equity ratio of 22.5 per cent up to and including 30 June 2009, where the convertible bond issued by Hurtigruten ASA is treated as equity
under the loan agreement. From 30 September 2009 up to and including 30 June 2010 the equity ratio must be 25 per cent, and from 30.
September 2010 onwards the equity ratio must be 27.5 per cent.
In February 2009, new agreements were concluded with the lenders and with Kystruten KS and Kirberg Shipping KS. These entail changes to
the financial covenants and annual charter rates for m/v Nordlys and m/v Richard With. In addition, it has been agreed that Hurtigruten's option
to repurchase m/v Nordlys and m/v Richard With be terminated. See note 37, events after the balance sheet date, for further information.
Guarantees
(NOK 1 000) 2008 2007
Associated companies 4 643 -
Guarantees to others - 500
Total guarantees 4 643 500
Hurtigruten asa 2008

98 Annual accounts – group
Note 36 Transactions with related parties
Transactions with related parties are conducted on market terms. Related parties in this context are key personnel in the company and in associates.
Associates in 2008 relate mainly to Nor Lines AS, Funn IT AS and ANS Havnebygningen. All these companies are owned 50 per cent. The
last of them owns and lease out the parent company's office in Tromsø.
The following transactions were carried out with related parties.
(NOK 1 000) 2008 2007
Sale of services to associates
Revenues 57 801 50 222
Total sale of services to associates 57 801 50 222
Purchase of services from associates
Rent premises 3 865 3 975
IT and other services 14 077 8 562
Total purchase of services from associates 17 942 12 537
Remuneration of senior executives
Salaries and other short-term employee benefits 16 562 14 962
Termination benefits - 3 000
Pension benefits (including former senior executives) 897 5 081
Total remuneration of senior executives 17 459 23 043
Balances with associates at 31 December
Non-current debtors - 2 871
Trade debtors 5 221 6 097
Other current liabilities 2 260 108
Trade creditors 5 810 2 679
Total balances with associates at 31 December - net (2 849) 6 181
Loans to related parties
The company has provided a loan of NOK 100 000 to product director Leif Øverland. This is free of repayment until further notice and will be be
repaid through deductions from pay subject to agreement. The loan has an interest rate equivalent to the three-month Nibor plus a mark-up of
1.15 per cent
Transactions with shareholders
Transactions with the company’s largest shareholders are conducted on market terms and are as follows:
yy Part of the company’s investments is financed by loans from Sparebanken1 Nord-Norge and DnB NOR Bank ASA/ Nordlandsbanken ASA
yy Nordland and Troms county councils buy public transport services from the company.
Hurtigruten asa 2008

annual accounts – group
99
Note 37 Events after the balance sheet date
Sale of business
On 24 October 2008, Hurtigruten ASA entered
into an agreement with Torghatten Nord AS on
sale of the ferries and fast ferry business. The
closure date was set at 5 January 2009, and
the agreed purchase price amounted to NOK
488 million. After deductions for the secured
debt partly taken over by the buyer and party
redeemed at the transfer, Hurtigruten received
NOK 115 million in cash. The sale meant an
accounting loss for the company of about
NOK 103 million which was recognised in the
fourth quarter of 2008. The transferred business
includes 606 employees and 45 vessels.
On 18 December, Hurtigruten ASA agreed
with VIA Travel Norge AS on the sale of the
shares in Bergenske Reisebyrå AS. The closure
date was 23 February 2009. The purchase
price was NOK 52 million, which represented
Hurtigruten's liquidity effect. The sale means
an accounting gain of NOK 26 million which is
recognised in the accounts for the first quarter
of 2009.
Share issues
On 20 February, the extraordinary general
meeting resolved to reduce the share capital
by NOK 250 million through a reduction in the
nominal value of each share from NOK 10 to
NOK 1. The same meeting approved the raising
of NOK 314 million through the issue of
314 million shares to existing shareholders.
The new share capital after registration of the
capital increase is NOK 342 million, divided
between 342 million shares. The same meeting
mandated the board to decide on a subsequent
share issue pf up to NOK 170 million.
At a meeting on 2 March. the board resolved
to implement subsequent issues towards i)
existing shareholders at 22 December 2008,
ii) existing holders of the company's convertible
bond loan who did not participate in the
private placement, and iii) employees in the
group. The subscription period for the subsequent
issues was from 9 March to 17.30 on 20
March 2009.
Financial restructuring
In February 2009, an addition to the loan
agreement dated on 22 September 2006 with
the syndicate banks was entered. The loan to
the bank syndicate is connected to the financing
of the costal voyage vessels. The addition
means that no instalments will be paid on the
loan for the period March 2009 to December
2011. The deferred instalments are being
repaid on a pro rata basis in conjunction with
the remaining instalments falling due from
March 2012 onwards. The revised loan agreement
contain a “cash sweep” clause which
commits Hurtigruten from the first quarter of
2010 to apply all its cash holdings exceeding
NOK 500 million by 31 March every year
to repayment of the loan. A payment made in
accordance to the “cash sweep” agreement
can only be drawn down again within the loan
agreement to an amount equivalent to 50 per
cent of the payment made in the first quarter
of 2010.
An agreement was entered with the
Kystruten KS and KirBerg Shipping KS limited
partnerships which means that the instalment
part of the rent under the charterparties over
the period to 31 December 2011 should not
be paid in this period, but added to the instalments
to be paid in 2012 and 2013 so that
the original payback schedule is resumed by
August 2013. The limited partnerships will
receive a proportional share of the outstanding
debt and possible payments in accordance
with the “cash sweep” agreements with the
banks, as described above. It is also agreed
that the rent payments in accordance with the
charterparties are increased to compensate
for increased costs which the limited partnerships
will incur on their loan agreements
owing to the agreed change in the instalment
structure. In addition, it has been agreed that
Hurtigruten’s option to buy back m/v Nordlys
and m/v Richard With is terminated.
As a part of the refinancing plan, DnB NOR
Bank ASA and Nordea Bank Norge ASA has
contributed to a credit facility amounting to
NOK 300 millions to Hurtigruten. The facilities
function as “bridge financing” during the company’s
sales period, and will be repaid upon
such sales. Loan used under the credit facility
is due in its entirety on 15 January 2010.
The company has reached an agreement
with the owners of the NOK 150 million convertible
bond loan with respect to the redemption
date,which has been postponed by a minimum
of 36 months and with an adjustment to
the conversion rate in accordance with the
loan agreement. The convertible loan is free
of interest from 1 January until 31 December
2009. Thereafter, an interest rate of seven per
cent per annum will accrue, which will fall due
on the repayment date for the convertible
loan. As an alternative to retaining their share
of the convertible bond loan on the revised
terms described above, the bondholders are
given the right to demand redemption/repurchase
of their bonds in return for subscribing
to new shares at the proposed subscription
price for the private placement to an amount
equivalent to 50 per cent of the nominal
amount of the bonds owned by the current
holder and the remaining 50 per cent in a new
bond to be issued by the company against
cash payment. The new bond loan would run
for 36 months from the disbursement and fall
due in one amount without instalments within
the duration of the loan. The loan would yield
an interest rate of 10 per cent per annum to
be paid in arrears, would not confer a conversion
right and would otherwise be based on
the standard agreement of the Norwegian
Trustee service. Bondholders who chose the
latter alternative would be given a right to
redemption or repurchase by the company of
its obligations in the convertible loan as soon
as possible and at the latest within 30 days
from the issue of the new shares and the new
bond loan.
Other conditions
Hurtigruten ASA was granted a credit facility
of NOK 100 million by DnB Nor Bank ASA on
1 February 2009. The credit facility was paid
off on 26 February 2009 as part of Hurtigruten
ASA’s financial restructuring plan with DnB
Nor Bank ASA and Nordea Bank Norge ASA
on new credit facilities with a credit limit of
NOK 300 million, as described above.
Hurtigruten asa 2008

100 Annual accounts – group
Note 38 Adaptation of corresponding figures
Corrections of previous year's errors are recognised in equity in 2007. According to IAS 8 the corresponding figures for 2007 have been reworked
as a result of this correction.
Hurtigruten ASA received a claim from Skatt Nord regarding reimbursement of value added tax (VAT) for the period 2005-2007. The claim is in
connection to alleged misuse of the VAT rate on food serving onboard the companies ferries and fast ferries. Hurtigruten ASA has denied the
claim.
The chief executive officer in AS TIRB’s pension scheme was not included in the annual accounts for 2007. This is corrected in the company- and
group accounts for 2007.
Errors from before 2007:
(NOK 1 000)
Error connected to misuse of VAT 9 893
Corrections to the balance sheet 31 December 2007:
Trade creditors and other short term liabilities, increase 9 893
Retained earnings, reduction (7 123)
Deferred tax, reduction (2 770)
Errors from 2007:
Error connected to misuse of VAT 4 923
Error connected to wrong treatment of pension scheme 2 742
Corrections done in the income statement 2007 and the balance sheet 31 December 2007:
Balance sheet
Trade creditors and other short term liabilities, increase 4 923
Retained earnings, reduction (3 544)
Deferred tax, reduction (1 378)
Income statement
Profit before tax on discontinued business, reduction (4 923)
Tax on discontinued business, reduction 1 378
Balance sheet
Pension obligation, increase 2 742
Retained earnings, reduction (1 975)
Deferred tax, reduction (767)
The adjustments in 2007 have led to changes in earnings per share, see note 31.
Earnings per share is changed to NOK -9.79 and NOK -12.12 for continued business.
Hurtigruten asa 2008

101
Hurtigruten asa 2008

102
Annual accounts – parent company
Hurtigruten ASA
Income statement
(NOK 1 000) Note 2008 2007
Operating revenues
Operating revenues 2 3 026 484 2 928 335
Total operating revenues 3 026 484 2 928 335
Operating costs
Payroll costs 3, 4, 5 995 398 1 039 918
Ordinary depreciation and impairment 6 497 107 339 028
Other operating costs 5 1 930 781 1 684 566
Total operating costs 3 423 286 3 063 512
Operating profit/(loss) (396 802) (135 177)
Income from investments in subsidiaries 32 371 7 728
Financial income 238 706 123 419
Financial expenses 554 410 320 301
Net financial items (283 333) (189 154)
Ordinary profit/(loss) before tax (680 135) (324 331)
Income tax expense 13 (276 671) (95 734)
Profit/(loss) for the year (403 464) (228 596)
Transfers
Transferred from other equity (212 169) (228 596)
Transferred from share premium (191 295) -
Total (403 464) (228 596)
Hurtigruten asa 2008

Annual accounts – parent company
103
Hurtigruten ASA
Balance sheet at 31 December
(NOK 1 000) Note 2008 2007
Assets
Fixed assets
Intangible assets 6 50 315 28 102
Deferred tax assets 13 92 757 -
Land and buildings 6 570 570
Ships 6, 11 4 203 803 4 596 838
Other tangible fixed assets 6 11 764 13 465
Total intangible fixed assets 4 359 209 4 638 975
Investments in subsidiaries 7 509 926 624 281
Investments in associates 8 66 071 67 071
Investments in other companies 14 953 15 590
Long-term debtors 4, 10, 15 33 697 121 750
Total financial fixed assets 624 647 828 691
Total fixed assets 4 983 856 5 467 666
Current assets
Inventory 9 47 029 49 907
Current debtors 10 438 444 326 060
Cash and cash equivalents 14 136 776 487 877
Total current assets 622 249 863 844
Total assets 5 606 105 6 331 510
Equity and liability
Paid-in equity 18 1 024 594 1 324 033
Other reserves 1 - 225 522
Total equity 1 024 594 1 549 555
Pension liabilities 4 108 507 89 925
Deferred tax 13 - 246 692
Total provisions 108 507 333 617
Secured debt 11, 15 - 3 619 803
Other long-term liabilities 20 164 20 121
Derivative financial instruments 16 58 007 -
Total long-term liabilities 78 171 3 639 924
Current liabilities 10, 11 4 293 881 805 414
Derivative financial instruments 16 100 952 -
Total current liabilities 4 394 833 805 414
Total liabilities 4 581 511 4 781 955
Total equity and liabilities 5 606 105 6 331 510
Narvik 17 March 2009
The board of directors of Hurtigruten ASA
Per Arne Watle Marit Skog Per Heidenreich Berit Kjøll Olaf Larsen Ingvild Myhre Anton Abrahamsen Rigmor Sand Olav Fjell
Chair Deputy chair Board member Board member Board member Board member Board member Board member Chief executive
officer
Hurtigruten asa 2008

104
Annual accounts – parent company
Hurtigruten ASA
Consolidated statement of recognised income,
expense and adjustments
(NOK 1 000) Note 2008 2007
Cash flow hedging, net after tax (118 184) 3 835
Actuarial gain/ loss on pensions (after tax) 4 (9 487) 6 937
Net expense recognised directly in equity (127 671) 10 772
Profit/(loss) for the year (403 464) (228 596)
Total recognised income, expense and adjustments (531 135) (217 824)
Hurtigruten ASA
Consolidated cash flow statement
(NOK 1 000) Note 2008 2007
Cash flows from operating activities
Profit/(loss) before income tax (680 135) (324 331)
Income tax paid 13 - -
Gain/loss on sale of tangible fixed assets and shares 44 891 (20 165)
Depreciation and impairment 6 497 107 339 028
Change in accounts classified as investing or financing activities (22 873) 3 991
Difference between pension cost and payments 4 7 830 6 260
Change in trade debtors (121 206) 112 963
Change in trade creditors (37 243) 42 776
Change in other accruals 251 178 (61 553)
Net cash generated from operating activities (60 452) 98 969
Cash flows from investing activities
Proceeds from sale of property, plant and equipment (PPE) 6 877 112 767
Purchases of fixed assets 6 (125 287) (673 876)
Disposal of shares 28 732 2 293
Dividends received 78 430 -
Change in other investments and debtors (1 098) 16 635
Change in restricted funds 14 40 127 22 137
Net cash used in investing activities 21 781 (520 044)
Cash flows from financing activities
Proceeds from issuance of ordinary shares 18 - 278 419
Proceeds from borrowings 200 000 450 000
Repayments of borrowings (472 305) (141 080)
Net cash used in financing activities (272 305) 587 339
Net change in cash and cash equivalents (310 976) 166 264
Cash and cash equivalents at beginning of the year 1 January 310 976 144 712
Cash and cash equivalents at end of the year 31 December - 310 976
Hurtigruten asa 2008

Annual accounts – parent company
105
Hurtigruten ASA
ACCOUNTING PRINCIPLES
Hurtigruten ASA has opted to take advantage of the opportunity to adopt a simplified form of the
International Financial Reporting Standards (IFRS) in its parent company accounts, pursuant to section
3-9, 5 paragraph of the Norwegian Accounting Act, cf. article of 21 Januar 2008.
Applying the simplified version of the IFRS in the parent company accounts means that valuation rules
and accounting principles applied in the consolidated accounts also apply for the parent company,
Hurtigruten ASA. See the group accounting principles for further information. When it comes to the accounting
set-up and note information, a simplified application of IFRS allows these to accord with the
Norwegian Accounting Act (NGAAP). The set-up and notes for the parent company are accordingly organised
in accordance with the NGAAP.
Shares in subsidiaries and associated companies are recorded in accordance with the cost method in the
parent company accounts.
Hurtigruten asa 2008

106
Annual accounts – parent company
Hurtigruten ASA
Notes to the annual accounts
Note 1
Previous year's errors
The company has done the following corrections recognised directly to equity as a result of
previous year’s errors.
(NOK 1 000)
Claim on VAT 10 666
Corrections equity 10 666
Claim on VAT
Hurtigruten ASA received a claim from Skatt Nord regarding reimbursement of value added tax (VAT) for the period 2005-2007. The claim is in connection
to alleged misuse of the VAT rate on food serving onboard the companies ferries and fast ferries. Hurtigruten ASA has denied the claim.
Note 2
OPERATING REVENUES
The core business areas for Hurtigruten ASA were in 2008 Hurtigruten, Explorer and public transport. For further segment information, see note
6 in the group consolidated accounts.
(NOK 1 000) 2008 2007
By business unit
Hurtigruten/ Explorer 2 163 049 2 026 861
Public transport 853 929 900 676
Other business 9 505 798
Total 3 026 484 2 928 335
Note 3
PAYROLL EXPENSES
(NOK 1 000) 2008 2007
Wage costs
Salaries 825 466 854 752
Payroll tax 49 501 55 275
Pension costs 72 272 67 997
Other payments 48 159 61 895
Total 995 398 1 039 918
Average number of employees 1 952 2 014
Employee loans amount to a total of NOK 200 000 These loans have different payment periods and interest rate terms.
Hurtigruten asa 2008

Annual accounts – parent company
107
Note 4
PENSIONS
The company has pension plans which give the right to defined future benefits. These benefits depend primarily on the number of years of
pensionable service, the level of pay at retirement and the size of national insurance payments. The obligations are funded though insurance
companies. The obligation cover 1 778 employees in the parent company. In addition to the pension obligations met by the funded plans, the
company has unfunded pension obligations which include 1 618 sailors. These relate to the AFP early retirement scheme and plans funded from
operations.
Financial assumptions:
2008 2007
Discount rate 3.80% 4.70%
Expected return on pension fund assets 5.80% 5.75%
Expected regulation of pay 4.00% 4.50%
Expected regulation of pensions 1.50% 2.00%
Expected regulation of NI base rate 3.85% 4.25%
Table book used when estimating liabilities K2005 K2005
Actuarial assumptions are based on commonly appleid assumptions by the insurance sector for demographic factors and attrition.
2008 2007
Average expected length of service before retirement 16 år 15 år
Specification of pension costs for the year:
(NOK 1 000) 2008 2007
Net present value of current year’s pension earnings 24 972 24 025
Contributory plan for maritime personnel 41 911 36 325
Interest expenses on accrued pension obligations 8 942 8 225
Expected return on pension fund assets (8 146) (6 351)
Plan changes 76 3 758
Net unfunded pension costs 491 267
Payroll tax 4 026 1 748
Pension expense 72 272 67 997
Specification of net pension assets/liabilities
(NOK 1 000) 2008 2007
Present value of accrued pension obligations at 31 December for funded defined benefit plans 216 027 189 651
Estimated value of pension fund assets at 31 December (144 366) (137 791)
Total 71 661 51 860
Present value of obligation for unfunded plans 348 508
Present value of pension obligations met from operations 26 899 29 825
Net pension funds 98 908 82 193
Net pension assets /liabilities are classified as follows in the balance sheet
(NOK 1 000) 2008 2007
Other long-term liabilities (note 10) 9 599 7 732
Pension obligations 108 507 89 925
Net pension liabilities/assets 98 908 82 193
Hurtigruten asa 2008

108
Annual accounts – parent company
The movement in the defined benefit obligation over the year is as follows:
(NOK 1 000) 2008 2007
Book value 1 January 219 984 212 330
Net present value of current year’s pension earnings 25 684 25 763
Interest costs 9 937 8 225
Costs plan changes - 3 758
Actuarial gain/ loss (1 017) (6 925)
Discontinuance of pension plans (plan changes) - (13 479)
Unpaid pensions (11 314) (9 688)
Book value 31 December 243 274 219 984
The movement in the fair value of plan assets of the year is as follows:
(NOK 1 000) 2008 2007
Book value 1 January 137 791 124 406
Expected return on plan assets 8 131 6 351
Employer contributions 22 040 22 641
Actuarial gain/ loss (14 194) 2 711
Paid-up policy and disbursement, discontinuance of plan (changes) - (10 695)
Pension premium paid (9 402) (7 623)
Assets acquired through business combination - -
Book value 31 December 144 366 137 791
Plan assets are comprised as follows:
2008 2007
Shares 10.1% 24.8%
Short term obligations 31.7% 21.5%
Money market 9.1% 7.5%
Long term obligations 28.2% 27.7%
Property 16.9% 15.6%
Other 4.0% 2.9%
Total 100.0% 100.0%
The actual return on plan assets was 4.39% 9.50%
(NOK 1 000) 2009 2008
The company's expected contribution to funded plans next year 35 727 21 319
The company has established mandatory occupational pension schemes for the required companies. These schemes are in compliance with the
Act on Occupational Pensions.
Hurtigruten asa 2008

Annual accounts – parent company
109
Note 5
REMUNERATION ETC.
Figures for 2008:
(NOK 1 000) Position Salary Pension
Other
remuneration Borrowings Fee
Olav Fjell CEO 3 763 - 194 - -
Jens Kristian Johnsen Deputy CEO/CFO 2 007 440 144 - -
Leif Øverland Product director 1 759 457 196 100 -
Trond Øverås Marketing and PR director 1 119 - 138 - -
Torkild Torkildsen Director maritime technical operations 988 - 169 - -
Glen Hartridge Head of pricing and revenue management 707 - 31 - -
Ole Fredrik Hienn Director legal affairs 1 481 - 133 - -
Hans Rood 1 Sales director 1 846 - - - -
Bjørn Laksforsmo Group director ferries and fast ferries 942 - 134 - -
Per Arne Watle Chairman of the board - - - - 138
Marit Skog Deputy chair - - - - 124
Per Heidenreich Board member - - - - 55
Berit Kjøll Board member - - - - 55
Olaf Larsen Board member - - - - 55
Ingvild Myhre Board member - - - - 55
Viviann Ekanger
Board member, staff representative up to
- - - - 48
5 January 2009
Anton Abrahamsen
Board member, staff representative from
- - - - 113
5 January 2009
Rigmor Sand Board member, staff representative - - - - -
Siv Sandvik Deputy board member - - - - 55
Rolf Andersen Observer board - - - - 25
Herodd Widding Observer board - - - - 25
Alternates - - - - 66
Previous boardmembers and observers - - - - 410
Corporate assembly - - - - 308
Auditor’s fees - statutory audit 2 - - - - 2 957
Auditor’s fees – assistance IFRS, accounts and tax documents - - - - 1 013
Auditor’s fees – other attestation - - - - 236
Auditor’s fees – other assistance - - - - 12
1) Hans Rood’s salary was paid by Hurtigruten Inc and converted from USD
2) Includes extended quarterly audits
The company’s chief executive Olav Fjell, who was employed on 10 September 2007, has a contract with the company stipulating a yearly salary
of NOK 4 millions. Other benefits include free car, and ordinary remuneration to cover telephone, internet, newspaper and home PC. In addition
to the above benefits he is entitled to a bonus scheme set by the board of directors. The bonus scheme can amount to 1/3 of the agreed upon
salary. The conditions of employment do not include pension obligations.
Upon resignation, if required by the board of directors, Hurtigruten ASA is obligated to contribute a terminal pay for 12 months. Any other salary
received during the termination period would be deducted from the terminal pay provided by Hurtigruten ASA.
If the chief executive resigns on his own terms after a minimum of tree year’s employment, Hurtigruten ASA is obligated to contribute a terminal
pay for 18 months. Any other salary received during the termination period would not be deducted from the terminal pay provided by
Hurtigruten ASA.
The company’s deputy chief executive/CFO is entitled to a terminal pay for 12 months if he resigns on own terms, without deduction. The company
has an early retirement scheme for the deputy chief executive/CFO and product director. The scheme applies from 62 years to the odrinary
pension age at 67 years, with the entitlement to a pension pay of 65 per cent of the salary on pension age.
The board of directors agreed in a board meeting on 26 February 2008 to introduce a performance based bonus scheme for the company’s
management with effect from 1 January 2008. The bonus payments are limited to 1/3 of the manager's yearly salary, where 25 per cent of the
bonus is determined based on the group result, whereas the remaining 75 per cent is determined based on the result from the managers area of
responsibility. Within the managers area of responsibility the result is considered against predefined objectives/ parameters. The bonus scheme
includes top management, except the chief executive officer. The bonus scheme for the chief executive officer is discussed above. There will be
no payments based on 2008 in relation to the bonus schemes.
Hurtigruten asa 2008

110
Annual accounts – parent company
FIGURES FOR 2007:
(NOK 1 000) Position Salary Pension
Other
remuneration Borrowings Fee
Olav Fjell CEO 1 236 - 32 - -
Henrik Andenæs Former CEO 2 232 1 385 3 117 - -
Jens Krsitian Johnsen Deputy CEO/CFO 1 698 334 130 - -
Leif Øverland Group director Hurtigruten 1 602 311 195 100 -
Trond Øverås Group director Explorer 947 - 76 - -
Torkild Torkildsen Director maritime technical operations 943 - 159 - -
Bjørn Laksforsmo Group director ferries and fast ferries 769 - 126 - -
Ole Fredrik Hienn Group director staff 1 225 - 125 - -
Ole Lund Chairman of the board - - - - 475
Gry Mølleskog Board member - - - - 138
Torvall Lind Board member - - - - 110
Oddmund Helgesen Board member - - - - 110
Marit Skog Board member - - - - 110
Tor Bjerkan Board member - - - - 110
Edel Storelvmo Board member - - - - 110
Anton Abrahamsen Board member - - - - 110
Jan Egil Sletteng Observer board - - - - 43
Randi Heggelund Observer board - - - - 43
Corporate assembly - - - - 174
Auditor’s fees - statutory audit 1 - - - - 1 643
Auditor’s fees – assistance IFRS, accounts and tax documents - - - - 1 119
Auditor’s fees – assistance issue - - - - 2 320
Auditor’s fees – assistance merger - - - - 118
Auditor’s fees – other assistance - - - - 714
1) Includes extended quarterly audits
In connection to the departure of the former chief executive an agreement was reached on pay after termination of employment amounting to
NOK 3 million, equivalent to 18 months salary. It was also paid NOK 1,385 millions to an insurance company covering the relief of the pension
agreement. After this payment the company does not hold any pension obligations to the previous chief executive officer Henrik Andenæs.
The company’s deputy chief executive/ CFO Jens Kristian Johnsen is entitled to a terminal pay for 12 months if he resigns on own terms, without
deduction if he filled his position until 1 July 2007. This entitlement applies until 31 December 2008. After this period the entitlement is conditional
to larger changes to the company structure or similar.
Hurtigruten asa 2008

Annual accounts – parent company
111
STATEMENT ON THE STIPULATION OF
SALARIES AND OTHER REMUNERATIONS
TO SENIOR EXECUTIVES IN
HURTIGRUTEN ASA
Guidelines for stipulation of remuneration
to senior executives in Hurtigruten ASA
The following guidelines were adopted with
effect from 17 March 2009.
1. Definitions
1.1 Senior executives include the company’s
chief executive and other senior executives,
cf. Ot.prp. no. 55 (2005-2006), which is referring
to the Accounting Act and the Joint Stock
Public Companies Act with respect to “senior
executives”.
1.2 Within these guidelines a compensation
scheme on salary consists of either of the following:
a fixed salary, a variable salary (bonus
pay, share option program, options etc.) and
other benefits (pension schemes, termination
payment agreement, fringe benefits etc.).
1.3 Termination pay agreements involve compensations
associated with resignation and
may involve termination pay, other financial
benefits and payment in kind.
2. Fundamental principles for stipulation
of compensatory schemes
2.1 Remuneration to senior executives in
Hurtigruten ASA should be competitive, however
not market-leading in comparison to
similar companies.
2.2 The main elements in compensatory
schemes should consist of a fixed salary.
2.3 Compensatory schemes must be formulated
to avoid that unreasonable benefits
arise on the basis of external circumstances in
which management can not influence.
2.4 The individual elements in a salary agreement
must be considered in general, with
the fixed salary, possible variable salary, in
addition to other benefits such as pension
schemes and total termination benefits. The
Board of Directors must have an overview of
the aggregate value of the individual senior
officers agreed compensation.
2.5 It is the entire Board of Directors responsibility
to stipulate guidelines of remuneration
to senior executives. Remuneration to the
company’s chief executive is determined by
the Board of Directors.
2.6 The Board of Directors must ensure that
remuneration schemes do not affect the company
unfortunately or pose a threat the company’s
reputation.
2.7 Senior officials must not contain separate
remuneration for board positions in fully
owned subsidiaries in the same group.
2.8 Agreements reached before these guidelines
were effective can be maintained.
3. Variable salary
Potential variable salary must be based on the
following principles:
3.1 There must be a clear connection between
the underlying goals for the variable salary
and the business’ goal.
3.2 Variable salary must be based on criteria’s
that are objective, definable and measurable.
3.3 The criteria must be based upon conditions
in which the senior officer can influence.
3.4 Additional relevant measurable criteria’s
should also be included
3.5 A scheme with a variable salary must be
transparent and comprehensible. Upon the
statement of the scheme the expected and
the maximum disbursement for each participant
in the program should be illustrated.
3.6 The scheme must be time-limited.
3.7 Aggregate variable salary each year should
not exceed a 6 month fixed salary, unless it is
required based on exceptional considerations.
4. Pension schemes
4.1 Pension conditions must be equal to that
of other employee’s in the company.
4.2 To the extent that an agreement is met on
a lower retirement age than the national insurance
retirement age of 67 years, the retirement
age in general should not be set lower
than 65 years.
4.3 On agreement of pension the basis must
be the contribution time applicable, equivalent
to other employees in the company.
4.4 Accrued entitlements from other positions
must be considered.
4.5 Pension entitlements should not exceed
66 per cent of the salary. Lower retirement age
than 65 years must lead to lower pension entitlements.
4.6 The Board of Directors must have an
overview of the total expense of the pension
scheme before it is entered.
5. Termination pay
5.1 Based on an agreement concluded in
advance where the group chief executive
waives his decision on employment protection
rights according to the Employment
Protection Act, an agreement on termination
pay may be settled. The termination pay
should not be utilised on optional resignation
unless special underlying reasons.
5.2 Termination pay should not exceed the 12
month salary in addition to possible salary in
the term of notice.
5.3 If employed in a new position or receives
salary from business activity in which the
person concerned is an active owner, the
termination pay should be reduced with a
proportional amount estimated on the basis
of the new annual salary. The reduction may
first occur after the regular term of notice has
ended.
5.4 Termination pay may be retained if circumstances
for a resignation exist, or if irregularities
or acts of negligence are discovered which
may cause a liability of compensation, or that
the person concerned is accused of being in
violation of the law.
The stipulation of salaries to senior executives
in Hurtigruten ASA for 2008 is presented in
note 26 in the group accounts and in note 5 in
the parent company accounts.
Hurtigruten asa 2008

112
Annual accounts – parent company
Note 6
TANGIBLE FIXED ASSETS
(NOK 1 000)
Land and
buildings
Ships
Other tangible
assets
Intangible
assets
Total
Book value 1 January 2008 570 4 596 838 13 465 28 102 4 638 975
Acquisition cost - 91 424 2 056 31 807 125 287
Disposal - - (702) - (702)
Yearly depreciation - (277 230) (3 056) (7 230) (287 516)
Yearly impairment - (207 229) - (2 363) (209 592)
Carrying amount 31 December 2008 570 4 203 803 11 764 50 315 4 266 452
Accumulated depreciation at 31 December.2008 - (1 842 811) (40 770) (13 885) (1 897 466)
Accumulated impairment 31 December 2008 - (240 090) - (9 183) (249 273)
Economic life 25 - 100 years 12 - 30 years 5 - 10 years 3 - 7 years
Intangible assets consists of internal/ external development/adaptation of ICT systems and software. This year's impairment relates to previously
recognised software (booking system), which is no longer in use.
Note 7
INVESTMENT IN SUBSIDIARIES
(NOK 1 000, unless otherwise
mentioned)
Business
office
Company's
equity
Ownership/
voting share
No. Shares
(round no)
Nominal
value
Result
2008
Book
value
Malangsforbindelsen AS Tromsø 1 423 51.0% 725 725 213 -
AS TIRB Finnsnes 90 135 71.3% 594 421 47 554 23 488 142 755
Spitsbergen Travel AS Longyearbyen 45 461 100.0% 17 600 17 600 32 066 283 719
Hurtigruten SAS Paris 359 100.0% 4 000 90 2 758 315
Hurtigruten Verdens Vakreste Sjøreise AS Tromsø 105 100.0% 100 100 4 110
Bergenske Reisebyrå AS Bergen 9 005 100.0% 90 000 90 000 8 814 13 510
Hurtigruten Inc. New York 703 100.0% 50 130 (28 949) 1
Hurtigruten Limited London 10 810 100.0% 1 000 000 10 810 216 11 920
Hurtigruten Gmbh Hamburg 876 100.0% 2 876 (90 939) 48 832
Hurtigruten AB Karlstad 423 100.0% 500 423 (6 793) 422
Saltens Dampskibsselskap AS Narvik 200 100.0% 200 200 455 6 220
Kystopplevelser AS Bodø 2 000 100.0% 2 000 2 000 (11 500) 1
HRG Eiendom AS Narvik 385 100.0% 385 385 1 747 385
Hurtigruten Greenland AS Nuuk 534 100.0% 1 000 552 - 545
C&O S.A. Santiago 6 80.0% - - 605 1 193
Total 509 926
Note 8
INVESTMENT IN ASSOCIATED COMPANIES
(NOK 1 000, unless otherwise
mentioned)
Business
office
Company's
equity
Result
Ownership/
voting share
No. Shares
(round no)
Nominal
value
Book
value
Nor Lines AS Stavanger 44 383 1 526 50.0% 18 629 20 492 46 461
Funn IT AS Narvik 462 9 218 50.0% 231 231 5 506
ANS Havnebygningen Tromsø 1 572 768 50.0% - - 14 103
Total associated companies 66 071
Hurtigruten asa 2008

Annual accounts – parent company
113
Note 9
INVENTORY
The inventory of goods comprises the following categories:
(NOK 1 000) 2008 2007
Goods for sale 25 490 24 176
Spare parts 820 1 078
Bunkers 20 719 24 653
Total 47 029 49 907
Goods are recognised at historical cost. An impairment charge is made if the fair value is considered to be lower than the historical cost.
Note 10 COMBINED ITEMS
(NOK 1 000) 2008 2007
Other long-term debtors
Loans to others 9 2 871
Long-term inter-company debtors 24 089 49 237
Other long-term debtors - 61 911
Pension assets (note 4) 9 599 7 732
Total long-term debtors 33 697 121 750
Current debtors
Trade debtors 173 810 74 920
Current inter-company debtors 105 205 94 051
Other current debtors 159 429 157 089
Total current debtors 438 444 326 060
Other current liabilities
Trade creditors 167 528 200 966
Unpaid government charges and special taxes 36 486 44 752
1st year's instalment on long-term debt (note 15) 3 633 585 286 087
Current inter-company liabilities 22 865 21 569
Other current liabilities 433 417 252 040
Total other current liabilities 4 293 881 805 414
Note 11 LIABILITIES AND SECURED DEBT
(NOK 1 000) 2008 2007
Secured debt 3 486 765 3 574 509
Assets pledged as security:
Ships 4 184 365 4 588 205
Trade debtors 191 738 64 923
Total 4 376 103 4 653 128
Hurtigruten asa 2008

114
Annual accounts – parent company
Note 12 GUARANTEES ETC
(NOK 1 000) 2008 2007
Subsidiaries 29 412 48 018
Total guarantees 29 412 48 018
The parent company Hurtigruten ASA has given a limited liability for guarantees issued directly for, or on behalf of its subsidiaries/ associated
companies. The amounts in the table above comprise of the maximum potential amount of future responsibilities the company can be obligated
to disburse under the guarantees. These amounts have not been recognised in the balance sheet at 31 December 2008.
The parent company has further provided an unlimited declaration of liability on behalf of Hurtigruten Limited, United Kingdom, to Nordea Bank,
Finland, as security for the associated company’s loan.
Note 13 TAX EXPENSE
(NOK 1 000) 2008 2007
Tax expense for the year breaks down as follows:
Change deferred tax (243 705) (93 929)
Change in deferred tax assets (13 993) -
Deferred tax on discontinued business (78 764) -
Tax on issue cost - 6 044
Deferred tax on entries through equity 53 747 (7 849)
Correction for earlier years 6 044 -
Total tax expense for continued business* (276 671) (95 734)
*) Of this NOK 78 millions constitute of a reset tax related to the gain from sale of shares in Nor-Cargo ASA. See note 34, contingent liabilities, in the group
accounts for further information.
(NOK 1 000) 2008 2007
Tax base estimation
Profit/(loss) before tax (680 135) (324 331)
Permanent differences (222 693) (17 780)
Change in temporary differences effecting tax payable 444 817 (31 150)
Tax base (458 011) (373 261)
Temporary differences outlined
Current assets (52 576) (17 928)
Fixed assets 1 971 375 2 065 182
Other differences (126 157) 202 425
Unrecognised losses (2 123 918) (1 368 627)
Total (331 276) 881 052
Deferred income tax liability (asset) (92 757) 246 692
Tax rate in % 28% 28%
Hurtigruten asa 2008

Annual accounts – parent company
115
Note 14 RESTRICTED FUNDS AND MARKET-BASED FINANCIAL CURRENT ASSETS
(NOK 1 000) 2008 2007
Specification of restricted funds
Bank deposits 136 776 176 903
Total 136 776 176 903
Note 15 DEBTORS AND LIABILITIES
(NOK 1 000) 2008 2007
Debtors falling due later than one year
Other long-term debtors 33 697 121 750
Total 33 697 121 750
Long-term liabilities falling due later than five years
- 2 273 101
(NOK million) 2008 2007
Repayment schedule interest-bearing debt
2008 - 286 087
2009 3 633 584 390 901
2010 - 323 078
2011 - 317 758
2012 - 314 966
2013 > - 2 273 101
Total 3 633 584 3 905 890
The convertible bond loan of NOK 147 million (debt element at 31 December 2008) is included in the table. Deferred tax and pension obligations
are not included. Hurtigruten ASA concluded a new loan agreement in September 2006 with a bank syndicate headed by Nordea on a
revolving credit facility of up to NOK 3 300 million, which permitted the repayment of current loans for financing Hurtigruten and for external
financing of m/v Fram. In the new agreement financial covenants with respect to liquidity, equity and cash flow are specified. In general the new
covenants are better adjusted to the balance sheet after the merger with TFDS, and beneficiary in terms of the repayment schedule over next
few years.
According to the covenant clauses the following conditions must be met:
yy The group's working capital and unused credit facilities must be positive.
yy The group must maintain a free liquidity of at least NOK 200 million over the lifetime of the loan.
yy EBITDA must be greater than the group’s yearly debt obligation and dividend payments, or the group’s free liquidity (including credit facilities)
must be a minimum of NOK 350 million.
yy An equity ratio of 22.5 per cent up to and including 30 June 2009, where the convertible bond issued by Hurtigruten ASA is treated as
equity under the loan agreement. From 30 September 2009 up to and including 30 June 2010 the equity ratio must be 25 per cent, and from
30 September 2010 onwards the equity ratio must be 27.5 per cent.
By year end these financial covenants were not met. The banks in syndicate had at 31 December 2008 temporarily withdrawn its conditions on
the financial covenants out January 2009. Since the conditions are not withdrew one year ahead, all borrowings with financial covenants are presented
as current borrowings.
In February 2009 a new agreement has been prepared including new instalment profile and new conditions. See note 37, events after the balance
sheet dates, in the group accounts for further information.
Hurtigruten asa 2008

116
Annual accounts – parent company
Note 16 FINANCIAL MARKET RISK
As a result of its regular operations the company is exposed to risks relating to fluctuations in exchange rates, interest rates and bunker costs.
The company has determined that up to 60 - 70 per cent of foreign exchange earnings should be secured. The group’s overall risk management
programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects this may have on financial performance.
The company utilise derivative financial instruments to hedge certain risk exposures.
Currency risk
The most important currencies for Hurtigruten ASA, except for NOK, are USD, GPB and EUR. Since income is generated in foreign currencies,
and operational costs are mainly in NOK, risk management is of key importance. Hurtigruten ASAs competitive position is in part dependent
on the development of the NOK exchange rate against the above currencies. On a short-term basis the currency exposure will be reduced and
managed by forward currency contracts. On a long-term basis the Hurtigruten ASA aim to adapt the company's balance sheet and cost structure
to obtain risk-neutrality with respect to the price development of the NOK.
The company's risk management policy is aimed at securing up to 100 per cent of the expected transactions in EURO and GBP the next 12
months, and up to 65 per cent of transactions in EURO and GBP for 2010. The group’s currency swaps at 31 December secures 43 per cent of the
expected future operating revenue in EURO for 2009.
The company is also exposed to currency risk through purchase of bunkers. The currency risk in the public transport business (where most of the
business is discontinued in 2009) is mainly related to bunker costs on certain routes. On these routes the company has entered into fixed price
agreements through open tendering. The remainder of the production is secured through agreements with the national transport authorities
and the company’s profitability is hence independent of any increase in bunkers costs arising from fluctuations in the NOK currency.
As of 31 December 2008, the company held the following forward exchange contracts:
Currency bought Currency sold Sold amount Forward rate Date of payment
NOK EUR 5 000 000 8.214 04.05.09
NOK EUR 5 000 000 8.215 15.05.09
NOK EUR 10 000 000 8.223 02.06.09
NOK EUR 5 000 000 8.225 15.06.09
NOK EUR 10 000 000 8.234 01.07.09
NOK EUR 10 000 000 8.226 01.07.09
NOK EUR 5 000 000 8.237 03.08.09
Interest-rate risk
The parent company is mainly exposed to interest rate fluctuations on loan and investment activities acquired to strengthen liquidity and to finance
operations. Most of company debt pays floating NOK interest rates. Interest rate risk can be defined as the risk that costs associated with
higher interest rates are not offset by increased income in other areas of the company. The company has conducted an analysis of profitability
sensitivity to interest rate fluctuations. On the basis of this assessment the company has entered into contracts in the interest rate derivative
market in order to manage its exposure.
As of 31 December 2008, the company held the following interest rate swap and interest rate ceiling contracts:
Currency Nominal amount Start date End date Fixed interest
Interest rate swaps:
NOK 700 000 000 28.06.07 28.12.10 5.310%
NOK 300 000 000 29.05.07 28.11.13 5.310%
NOK 150 000 000 29.05.07 26.02.10 5.300%
NOK 100 000 000 29.05.07 30.11.09 5.330%
Interest rate ceiling agreements
NOK 400 000 000 29.05.07 31.05.10 5.325%
Hurtigruten asa 2008

Annual accounts – parent company
117
Credit risk and liquidity risk
The company is exposed to credit and liquidity risks. Risks in connection to credit are not regarded substantial. The company's strategy regarding
liquidity is to have sufficient cash, cash equivalents on hand, or credit opportunities in order to finance its operations and investments.
Bunkers
The company is exposed to fluctuations in bunker costs. The oil price, and thus the bunker price, is internationally traded in USD, whereas for
the parent company bunker is traded in the NOK currency. The risk can therefore be divided into one currency element and on product element.
The company has in its strategy for managing risk emphasised the need for risk coordination, and has therefore chosen to reduce the bunker
risk while the currency risk is coordinated with the company's other currency exposures
As of 31 December 2008, the company has entered the following contracts:
Product Monthly tonnage Start date End date Tonnage price Currency
Fuel Oil 1 739 01.01.09 31.03.09 3 566 NOK
Gasoil 930 01.01.09 31.03.09 5 775 NOK
IPE Gasoil 155 01.01.08 31.12.12 3 621 NOK
IPE Gasoil 106 01.01.13 31.12.15 3 621 NOK
The following derivative contracts is recognised in the balance sheet at 31 December 2008:
Fair value
Acquisition cost
Recognised
period change in the
income statement
Forward exchange contracts (75 972) - 7 650
Interest rate swaps (60 129) - -
Interest rate ceiling contracts (1 314) 3 416 -
Oil derivatives (21 526) - (172)
The fair value is calculated through observed forward prices in the period prior to 31 December 2008.
Note 17 LEASES
Annual rent for non-capitalised fixed assets (operational leases)
(NOK 1 000)
Lease -duration
Estimated
annual rent
Fixed asset
Rent lokaler - 10 101
Rent m/v Nordlys 2018 46 778
Rent m/v Richard With 2018 41 965
The parent company contracted in December 2002 and June 2003 to sell and charter back Hurtigruten vessels m/v Nordlys and m/v Richard
With. These ships were sold to KirBerg Shipping KS and Kystruten KS, respectively, and chartered back for 15 years with option for additional
five years on market terms. The parent company has an option to buy the vessels back after 15 and 10 years. Charter fees for the first 15 years
comprise three components; a fixed fee in NOK, a fixed fee in USD/EUR and a variable element in USD/EUR.
A bank guarantee of NOK 104 million has been provided for fulfilment of the lease, which is reduced annually by NOK 4,2 million. Hurtigruten
ASA will undertake and pay for operation, insurance and all necessary on-going maintenance on the vessels. The charter agreement between
the partnership companies and Hurtigruten ASA has secured financial covenants for the lifetime of the loan. According to the covenants the
following conditions must be met:
yy The group’s working capital and unused credit facilities must be positive.
yy The group must maintain a free liquidity of at least NOK 200 million over the lifetime of the loan.
yy EBITDA must be greater than the group’s yearly debt obligation and dividend payments, or the group’s free liquidity (with credit facilities
included) must be a minimum of NOK 350 million.
yy An equity ratio of 22.5 per cent up to and including 30 June 2009, where the convertible bond issued by Hurtigruten ASA is treated as
equity under the loan agreement. From 30 September 2009 up to and including 30 June 2010 the equity ratio must be 25 per cent, and from
30 September 2010 onwards the equity ratio must be 27.5 per cent.
In February 2009 an agreement was entered with the limited partnership companies Kystruten KS and KirBerg Shipping KS, and the bank. The
agreements includes changes to the instalment profile in addition to changes to the yearly rent on m/v Nordlys and m/v Richard With. An additional
agreement is connected to Hurtigrutens option to repurchase m/v Nordlys and m/v Richard With. This agreement has been terminated.
See note 37, events after the balance sheet dates, in the consolidated group accounts for furher information.
Hurtigruten asa 2008

118
Annual accounts – parent company
Note 18 SHARE CAPITAL AND PREMIUM
(NOK 1 000)
Number of
shares
Total share
capitall
Share premium
Own shares Total
At 1 January 2007 19 848 394 198 484 850 095 (3 067) 1 045 513
Proceeds from shares issued 7 894 736 78 947 199 440 - 278 387
Employee share option scheme - - - 133 133
At 31 December 2007 27 743 130 277 431 1 049 535 (2 934) 1 324 033
Tax on share issue 2007 - - 6 207 - 6 207
Coverage of this year's loss - - (114 349) - (114 349)
At 31 December 2008 - - (191 295) - (191 295)
Per 31 December 2008 27 743 130 277 431 750 098 (2 934) 1 024 594
The company issued 7 894 736 new shares, each with a nominal value of NOK 10, to existing shareholders in 2007.
A shareholder agreement has been concluded by Narvik municipal council, the Narvik Port Authority, Sparebanken Narvik, Ankenes Sparebank
(merged with Sparebanken Narvik in 2007), Nordlandsbanken ASA and DnB Nor ASA, dated 23 November 2005. This agreement relates to the
shares held by the parties in Hurtigruten ASA. In addition Narvik Energi AS informed that they would affiliate with the shareholder agreement. These
shareholders owned 32.94 per cent of the company’s shares at 31 December 2008.
The agreement commits its parties to (i) cooperate on electing members of the corporate assembly and board, so that they retain their board and
corporate assembly representation (ii) attend each general meeting where possible amendments are proposed to article two of Hurtigruten ASAs
articles of association concerning the location of the company’s business office and main administration, etc, and to vote against any such proposal
(iii) contribute to ensuring that the company does not create or acquire any subsidiary conducting activities which would conflict with the intentions
of the parties to the agreement with regard to article two (iv) participate in possible share issues (with exception of Narvik municipal council and
Narvik Port Authority) limited to the individual contracting party of a proportional share of capital in the company at effective merger date (1 March
2006) and limited to an overall issue of NOK 300 million. This agreement runs until 31 December 2010. The above parties cannot transfer their
shares in the company unless the buyer subscribes to this agreement ensuring that the share of the voting stock held by the concerned parties will
not fall below the proportion held when the merger came into effect.
The board of directors have not been given authority to issue additional shares. For further information on the convertible loan, see note 33 in the
group accounts.
On the 20 February 2009 an extraordinary general meeting was held where it was resolved to increase the share capital by MNOK 314. During the
same general meeting it was resolved to provide the board with a proxy to issue up to NOK 170 million. For further discussion on these terms see
note 37, events after the balance sheet dates, in the group accounts
Shareholders owning more than 1% Domicile No of shares
Percentage
holding
NordlandsBanken ASA Bodø 3 778 967 13.62
Sparebanken Nord-Norge Tromsø 2 869 413 10.34
Sparebanken Narvik Narvik 2 809 888 10.13
Skagen Vekst AS Oslo 2 061 000 7.43
Heidenreich Entreprise L.P. USA 1 895 396 6.83
Narvik Kommune Narvik 1 382 767 4.98
Troms Kraft Invest AS Tromsø 1 257 101 4.53
Verdipapirfond Odin Oslo 1 108 500 4.00
Troms Fylkeskommune Tromsø 1 048 461 3.78
Narvik Energi AS Narvik 844 896 3.05
Goldman Sachs Int. UK 660 307 2.38
MP Pensjon Oslo 552 099 1.99
Verdipapirfond Odin Oslo 525 800 1.90
BD Trading AS Stavanger 315 979 1.14
J.M. Hansen Invest AS Tromsø 310 413 1.12
Shareholders owning more than 1% 21 420 987 77.21
Other shareholders 6 322 143 22.79
Total number of shares 27 743 130 100.00
Hurtigruten asa 2008

Annual accounts – parent company
119
Shares held by elected officers and senior executives in Hurtigruten ASA (directly and indirectly)
Corporate assembly
No of shares
Leif Teksum, chair -
Oddmund Åsen, deputy chair -
Elisabeth Aspaker -
Bjørn Dahle -
Karen M. Kuvaas 699
Ingolf Marifjæren 21 000
Hans Larsen -
Nina Hjort -
Marlen Hauge, staff representative -
Alf Petter Martinsen, staff representative -
Asbjørn L. Larsen, staff representative 550
Sissel Kinn Berg, staff representative -
Board of directors No of shares
Per Arne Watle, chair -
Marit Skog, deputy chair -
Per Heidenreich* 1 895 396
Berit Kjøll -
Olaf Larsen -
Ingvild Myhre 359
Anton Abrahamsen, staff representative 620
Rigmor Sand, staff representative from 5 January 2009 -
Viviann Ekanger, staff representative up to 5 January 2009 -
Management No of shares
Olav Fjell, CEO** 24 040
Jens Kristian Johnsen, Deputy CEO/CFO 2 376
Leif Øverland, Product director 2 246
Trond Øverås, Marketing and PR director -
Hans Rood, Sales director -
Glen P. Hartridge, Head of pricing and revenue management -
Torkild Torkildsen, Director maritime technical operations 2 225
Ole F. Hienn, Director legal affairs 950
*) The shares are owned through the company Heidenreich Enterprise L.P.
**) Of this 23 890 shares is owned through his company Fjellvit AS.
The company’s auditor does not hold shares in Hurtigruten ASA.
Declaration by the board and the chief executive
We hereby declare, to best of our knowledge, that the annual accounts for the period 1 January to 31 December have been prepared
in accordance with existing accounting policies, and that the information given in the accounts provides a true and fair view of
the company’s and the group’s assets, liabilities and financial position and result in its entirety. We also declare, to the best of our
knowledge, that the annual report gives a true and fair view of the most important events during the accounting period and their
influence on the annual accounts, revenues and the position of the company and the group as well as a description of the most
relevant risks and uncertainties faced by the company and the group.
Narvik 17 March 2009
Board of directors of Hurtigruten ASA
Per Arne Watle Marit Skog Per Heidenreich Berit Kjøll Olaf Larsen Ingvild Myhre Anton Abrahamsen Rigmor Sand Olav Fjell
Chair Deputy chair Board member Board member Board member Board member Board member Board member Chief executive
officer
Hurtigruten asa 2008

120
Auditor’s report
PricewaterhouseCoopers AS
Postboks 6128
NO-9291 Tromsø
Telephone +47 02316
Telefax +47 23 16 10 00
To the Annual Shareholders' Meeting of Hurtigruten ASA
Auditor’s report for 2008
We have audited the annual financial statements of Hurtigruten ASA as of December 31, 2008, showing a
loss of NOK 403 464 000 for the parent company and a loss of NOK 456 903 000 for the group. We have
also audited the information in the directors' report concerning the financial statements, the going concern
assumption, and the proposal for the coverage of the loss. The annual financial statements comprise the
financial statements of the parent company and the group. The financial statements of the parent
company comprise the balance sheet, the statements of income and cash flows, the statement of
changes in equity and the accompanying notes. The financial statements of the group comprise the
balance sheet, the statements of income and cash flows, the statement of changes in equity and the
accompanying notes. Simplified IFRS according to the Norwegian accounting act § 3-9 have been
applied in the preparation of the financial statements of the parent company. International Financial
Reporting Standards as adopted by the EU have been applied in the preparation of the financial
statements of the group. These financial statements are the responsibility of the Company’s Board of
Directors and Managing Director. Our responsibility is to express an opinion on these financial statements
and on other information according to the requirements of the Norwegian Act on Auditing and Auditors.
We conducted our audit in accordance with the laws, regulations and auditing standards and practices
generally accepted in Norway, including standards on auditing adopted by The Norwegian Institute of
Public Accountants. These auditing standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. To the extent
required by law and auditing standards an audit also comprises a review of the management of the
Company's financial affairs and its accounting and internal control systems. We believe that our audit
provides a reasonable basis for our opinion.
In our opinion,
• the financial statements of the parent company have been prepared in accordance with the law and
regulations and give a true and fair view of the financial position of the Company as of December 31,
2008, and the results of its operations and its cash flows and the changes in equity for the year then
ended, in accordance with simplified IFRS according to the Norwegian accounting act § 3-9
• the financial statements of the group have been prepared in accordance with the law and regulations
and give a true and fair view of the financial position of the Group as of December 31, 2008,and the
results of its operations and its cash flows and the changes in equity for the year then ended, in
accordance with International Financial Reporting Standards as adopted by the EU
• the company's management has fulfilled its duty to produce a proper and clearly set out registration
and documentation of accounting information in accordance with the law and good bookkeeping
practice in Norway
• the information in the directors' report concerning the financial statements, the going concern
assumption, and the proposal for the coverage of the loss are consistent with the financial statements
and comply with the law and regulations
Tromsø, March 17, 2009
PricewaterhouseCoopers AS
Kent-Helge Holst
State Authorised Public Accountant (Norway)
Note: This translation from Norwegian has been prepared for information purposes only.
Alta Arendal Bergen Bodø Drammen Egersund Florø Fredrikstad Førde Gardermoen Gol Hamar Hammerfest Hardanger Harstad Haugesund Kongsberg Kongsvinger
Kristiansand Lyngseidet Mandal Mo i Rana Molde Mosjøen Måløy Namsos Oslo Sandefjord Sogndal Stavanger Stryn Tromsø Trondheim Tønsberg Ulsteinvik Ålesund
PricewaterhouseCoopers navnet refererer til individuelle medlemsfirmaer tilknyttet den verdensomspennende PricewaterhouseCoopers organisasjonen
Medlemmer av Den norske Revisorforening • Foretaksregisteret: NO 987 009 713 • www.pwc.no
Hurtigruten asa 2008

STATEMENT FROM THE CORPORATE ASSEMBLY
121
STATEMENT FROM THE CORPORATE ASSEMBLY
FROM THE CORPORATE ASSEMBLY
TO THE GENERAL MEETING OF HURTIGRUTEN ASA
The directors’ report and financial statements for 2008 for the Hurtigruten ASA group and Hurtigruten ASA
have been presented to the corporate assembly today.
The corporate assembly recommends that the annual general meeting approve the directors’ report and
the financial statements as well as the proposal from the board of directors for covering the net loss.
Narvik, 26 march 2009
Leif Teksum
Chair of the corporate assembly
Hurtigruten asa 2008

RICHARD WITH
RICHARD WITH
VESTERÅLEN
122 Fleet list
fleet list
HURTIGRUTEN SHIPs
Name of vessel Built/converted Gross tonnage Passenger capacity Car capacity
M/v Kong Harald 1993 11 204 691 45
M/v Lofoten 1964/1985/2004 2 621 400 0
M/v Midnatsol 2004 16 151 1 000 45
M/v Nordkapp 1996 11 386 691 45
M/v Nordlys 1994 11 204 691 45
M/v Nordnorge 1997 11 386 691 45
M/v Nordstjernen 1956 2 191 400 0
M/v Polarlys 1996 11 341 737 35
M/v Richard With 1993 11 205 691 45
M/v Trollfjord 2003 16 140 822 45
M/v Vesterålen 1983/1988/1995 6 261 560 35
M/v Finnmarken 2003 15 000 1 000 45
M/v Fram 2008 12 700 500 25
Fast ferries
Name of vessel Built/converted Gross tonnage Passenger capacity Car capacity
M/v Fjorddronningen 2006 787 350
M/v Fjorddronningen II 1995 571 226
M/v Fjordkongen 2006 787 350
M/v Fjordprinsessen 1999 340 198
M/v Vågsfjord 1999 177 146
A selection of Hurtigruten’s vessels
M/v Midnatsol
M/v Vesterålen
M/v Nordstjernen
M/v Finnmarken
M/v Fram
M/v Fjordkongen
M/v Richard With
M/v Nordnorge
Hurtigruten asa 2008

AdDresses
123
Hurtigruten ASA
Head office
Visiting address:
Havnegata 2
NO-8500 Narvik
Postal address:
P O Box 43,
NO-8501 Narvik
Tel: 76 96 76 00
Fax: 76 96 76 01
E-mail: firmapost@hurtigruten.com
Internet: www.hurtigruten.com
Hurtigruten ASA
Visiting address:
Kirkegt. 1
NO-9008 Tromsø
Postal address: P O Box 6144,
NO-9291 Tromsø
Tel: 76 96 76 00
Fax: 77 64 81 80
E-mail: firmapost@hurtigruten.com
Internet: www.hurtigruten.com
Salgs- og markedsavdelingen
Hurtigruten
Adresse: se hovedkontor
Tel: 810 30 000
E-mail: booking@hurtigruten.com
Internet: www.hurtigruten.com
Hurtigruten GmbH
Kleine Johannisstrasse 10
DE-20457 Hamburg, Tyskland
Tel: (00) 49 4037 6930
Fax: (00) 49 4036 4177
E-mail: info@hurtigruten.de
Internet: www.hurtigruten.de
Hurtigruten Inc.
405 Park Avenue, Suite 904
New York NY 10022, USA
Tel: (00) 1 212 319 1300
Fax: (00) 1 212 319 1390
E-mail: info@coastalvoyage.com
Internet: www.coastalvoyage.com
Hurtigruten Ltd.
3 Shortlands
London W6 8NE, UK
Tel: (00) 44 20 88 46 2666
Fax: (00) 44 20 88 46 2678
E-mail:
sales@norwegian-coastal.com
Internet: www.hurtigruten.co.uk
Hurtigruten sas
2 rue de la Roquette
Passage du Cheval blanc
– Cour de Mai
FR-75011 Paris, Frankrike
Tel: (00) 33 1 58 30 86 86
Spitsbergen Travel AS
P O Box 548
NO-9171 Longyearbyen
Tel: 79 02 61 00
Fax: 79 02 61 01
E-mail: info@spitsbergentravel.no
Internet: www.spitsbergentravel.no
Spitsbergen Hotel
P O Box 500
NO-9171 Longyearbyen
Tel: 79 02 62 00
Fax: 79 02 62 01
E-mail: hotel@spitsbergentravel.no
Internet: www.spitsbergentravel.no
Radisson SAS Polar Hotel
Spitsbergen
P O Box 554
NO-9171 Longyearbyen
Tel: 79 02 34 50
Fax: 79 02 34 51
E-mail:
sales.longyearbyen@radissonsas.com
Internet: www.radissonsas.com
www.spitsbergentravel.no
Ing. G. Paulsen AS
P O Box 490
NO-9171 Longyearbyen
Tel: 79 02 32 00
Fax: 79 02 18 10
E-mail: igp@spitsbergentravel.no
Internet: www.igp.no
AS TIRB (morselskap)
Ringveien 2
NO-9300 Finnsnes
Tel: 77 85 21 00
Fax: 77 85 21 01
E-mail: post@cominor.no
Internet: www.cominor.no
Cominor as
Avd. Finnsnes
Som morselskap
Cominor Bilservice as
Finnfjord Hovedverksted
NO-9300 Finnsnes
P O Box 33, 9305 Finnsnes
Tel: 77 85 11 00
Fax: 77 85 11 15
E-mail: Som morselskap
Internet: Som morselskap
Cominor as
Avd. Narvik
Visiting address:
Fagernesveien 145
NO-8514 Narvik
P O Box 223
Postal address:
NO-8501 Narvik
Tel: 76 92 35 00
Fax: 76 92 35 30
E-mail: post@cominor.no
Internet: www.cominor.no
Cominor as
Avd. Tromsø
Gimleveien 12
NO-9019 Tromsø
Tel: +47 776 77 500
Fax: +47 776 77 590
E-mail: post@cominor.no
Internet: www.cominor.no
Fax: (00) 331 58 30 61 00
E-mail: contact@hurtigruten.fr
Internet: www.hurtigruten.fr

Editorial support and project management: MonsenHejna AS
Design and production: Haugvar Kommunikasjon & Design
Photos: Jørn Henriksen, Ernst Furuhatt, Gian-Rico Willy, Nina Helland, Nancy Bundt, Per Eide, Simen G. Fangel,
Camille Seaman, Wagn Bruun Olsen, Franz Gingele, Håvard Jensen, Hurtigruten/NSA, Rinie van Meurs,
Alain Bidart, Tomas Mauch, Jesper Nielsen, Trym Ivar Bergsmo, Frank Barth, Lutz Stickeln, Göran Freiholtz.
English translation: R E Gooderham and xxxx (?)
Visiting address:
Havnegata 2
Narvik
Postal address:
P O Box 43
NO-8501 Narvik
Switchboard: +47 76 96 76 00
Telefax: +47 76 96 76 01
E-mail: firmapost@hurtigruten.com
Internet: www.hurtigruten.com
Booking:
E-mail: booking@hurtigruten.com
Telephone: +47 810 30 000
Org no: NO 914 904 633 MVA