Page 25 - Mantena Annual report 2019

Board of Directors’ report for 2019
Mantena AS is the parent company of the Mantena Group; along with the business in Norway, this comprises Mantena Sverige AB, Mantena Finland OY and Mantena Danmark A/S. Mantena’s head office is at Jernbanetorget 1 in Oslo, Norway.
Mantena is the largest provider of maintenance services to
train operators in Norway. The main activity is maintenance of locomotives, rolling stock and motor units during breaks in service.
Mantena has workshops for maintaining components and
parts, and an extensive logistics function. It also undertakes maintenance and repairs to railway machinery, as well as necessary functions such as planning, technical development and replacement.
Mantena handles maintenance activities in Sweden through its subsidiary Mantena Sverige AB. It also has start-up companies in Finland and Denmark.
Presentation of the financial statements
Mantena AS, Mantena Sverige AB, Mantena Finland OY and Mantena Danmark A/S are consolidated into the Group financial statements for Mantena.
Revenue for 2019 in the Group is MNOK 1,570 (MNOK 1,502 in 2018) and for Mantena AS MNOK 1,358 (MNOK 1,221 in 2018). There was roughly the same level of activity and contracts in 2019 as in 2018.
The operating profit for the Group was MNOK 92 (MNOK -8 in 2018) and for Mantena AS MNOK 137 (MNOK -16 in 2018). The change in operating profit is related to lower pension costs in 2019 compared to 2018, and higher volumes delivered in Norway.
The provision for restructuring in Mantena AS is MNOK 31 million at the end of 2019.
Profit after tax for the Group is NOK 75 million (MNOK -24 in 2018) and for Mantena AS MNOK 112 (MNOK -28 in 2018). The change in profit after tax is mainly attributable to lower pension costs and increased net financial costs.
Investments in property, plant and equipment totalled MNOK 20 in 2019.
Cash flow from operating activities is negative and investment activities are positive. Financing activities have a positive cash flow in 2019. The difference between the cash flow from operating activities and the operating profit is explained by the payment of the final invoice to the Norwegian Public Service Pension Fund.
The company’s owner injected MNOK 170 in increased share capital into Mantena AS in 2019.
The Board proposes that the positive result for the year be transferred to other equity.
After year-end appropriations, the Group equity ratio is 38% (13% in 2018), while the equity ratio for Mantena AS is 42% (13% in 2018).
Going concern
The Group has equity of MNOK 390 at 31.12.2019. Mantena AS has equity of MNOK 421 at 31.12.2019. The year-end appropriation has been made on the assumption of a going concern. As of
1 January 2020, the State ownership of Mantena is administered by the Ministry of Trade, Industry and Fisheries.
Financial market risk
Foreign exchange risk
Mantena buys and sells mainly in Norwegian kroner. There is some currency exposure related to Swedish kroner through operations in Mantena Sverige AB. Mantena also has exposure from purchases of goods in euros. Exposure to the euro has gradually increased with the launch of Traffic Package 1 in 2019 and Traffic Package
2 in 2020 in Norway, and the Øresundstog contract in Sweden
in 2021, because these include more purchases of goods than previous contracts.
Board of Directors’ report
Annual report 2019 25