Page 45 - Mantena Annual Report 2021

BOARD OF DIRECTORS’ REPORT FOR 2021
Apart from the operations in Norway, Mantena AS also comprises Mantena Sverige AB, Mantena Finland OY and Mantena Danmark A/S. Mantena’s head office is at Jernbanetorget 1 in Oslo.
Mantena is the largest provider of maintenance services to train operators in Norway. The core activity is maintenance of locomotives, rolling stock and motor units during breaks in service.
Mantena also provides workshop services for maintenance of components and parts, and has an extensive logistics function. Mantena also carries out maintenance and repairs on track maintenance machinery in Norway.
Mantena provides maintenance services in Sweden through its subsidiary Mantena Sverige AB. It also has start-ups 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 2021 in the Mantena Group is MNOK 1,633 (MNOK 1,536 in 2020). Of this, Mantena AS accounts for MNOK 1,247 (MNOK 1,340 in 2020). This represents roughly the same level of activity in 2021 as in 2020.
The operating profit for the Group was MNOK -241 (MNOK 40 in 2020) and for Mantena AS, MNOK -177 (MNOK 50 in 2020).
Profit after tax for the Group is NOK -223 million (MNOK 38 in 2020) and for Mantena AS MNOK -262 (MNOK 46 in 2020). The change in operating profit and profit after tax, is mainly due to provisions for future losses on some contracts in the portfolio, which underlines the need for restructuring.
Investments in property, plant and equipment totalled MNOK 22 in 2021.
The provision for restructuring in Mantena AS is MNOK 25 million at the end of 2021.
Cash flow from operational activities was minus MNOK 246, investment activities stood at minus MNOK 5, and financing activities at plus MNOK 250 in 2021. The difference between cash flow from operating activities and operating profit is partly
due to payments for accessories in the new contracts, receipts from customers, and write-offs and write-downs on capitalised operating equipment.
The Board proposes that the negative result for the year be transferred from other equity.
After year-end appropriations, the Group equity ratio is 17% (37% in 2020), while the equity ratio for Mantena AS is 20% (45%).
Going concern
The Group has equity of MNOK 204 at 31.12.2021. Mantena AS has equity of MNOK 205 at 31.12.2021. The year-end appropriation has been made on the assumption of a going concern.
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 has exposure from purchases of parts in euros. Exposure to the euro has gradually increased with the launch of Traffic Package 1 in 2019 and Traffic Package 2 in Norway in 2020, as well as the Øresundstog contract in Sweden in December 2020. These contracts include a proportionately larger share of parts purchases than earlier contracts.
Interest rate risk
The Group is exposed to changes in interest rates, as the company has interest-bearing debt in the form of utilised drawing rights with a fixed credit limit.
Liquidity risk
There was little risk related to liquidity in 2021.
Credit risk
Mantena’s principal customers are state-owned companies.
In Mantena’s judgment, these state-owned customers, even after restrictions on their business arising from the coronavirus pandemic, still have liquid funds available. The credit risk is therefore still considered low.
Market risk
We can expect to see stronger competition in the train maintenance market even though the Norwegian tendering procedure for passenger trains (Traffic Packages 4 and 5) has
Board of Directors’ report
Annual Report 2021 45