BroBizz A/S Annual report 3 Company objective BroBizz A/S’ main task is to be the issuer of BroBizz®, which can be used as a means of identification for a number of transportrelated payment services, such as toll roads, bridges, ferries, parking, etc. BroBizz A/S is responsible for overall customer relations, including contract administration, collection of fees between operators and the customer, etc. Highlights of the year BroBizz A/S develops and manages the BroBizz® concept that delivers automatic payment at bridges, ferries, toll roads, parking facilities, etc. With the most recent amendment to the Act on Sund & Bælt Holding A/S, the framework for BroBizz A/S’ operations was clarified with the purpose of ensuring that BroBizz A/S can act on equal footing with other issuing companies, including developing the company for new business areas within ferries, parking, access control and possibly new added value additional services not only in Denmark but also in Europe. In 2017, the company worked to simplify and improve services towards its customers and to raise awareness of the many benefits of a BroBizz contract. The first step was the launch of a new BroBizz app at the end of the year. In 2018, BroBizz expects to be able to offer a range of new applications, which will offer customers new payment options and new geographical coverage. In 2017, the company posted an excellent 23 per cent development in revenue. There was also an increase in the number of BroBizz devices, which totalled around 950,000 by the end of the year, corresponding to growth of approximately 7% in 2017. The company's expenses rose sharply in 2017 which, in addition to the effect of the increase in revenue, is due to the special efforts implemented to transform the strategy into actual action plans and activities, including a new app and improved customer service. The result before tax is a profit of DKK 3 million. The result after tax is a profit of DKK 2 million. This is satisfactory and is in line with the forecast. Equity totalled DKK 119 million at the end of 2017. Moreover, the framework for BroBizz A/S' use of new technology was expanded as a consequence of the amendment so that the company can remain competitive in an increasingly competitive market. The legislator's intention and expectation is that BroBizz A/S develops and expands its market shares, business areas and new technology solutions. BroBizz A/S is a 100% owned subsidiary of Sund & Bælt Holding A/S. BroBizz A/S is not covered by the state guarantee as is the case with the parent company and the Group’s infrastructure companies. BroBizz A/S has substantial experience with payment solutions across national borders. BroBizz® currently functions on toll roads, bridges and ferries in Denmark, the rest of Scandinavia and Austria. In addition, the BroBizz solution is used in certain parking areas and for access control. Although the BroBizz A/S business concept is unique and is widespread in the Danish market, the company expects to encounter growing competition from foreign companies and new technologies. Cash flow Cash flow from operating activities is positive and totals DKK 24 million which comprises changes in current assets and current debt. Cash flow from investing activities is negative and totals DKK 36 million. The free cash flow is thus negative at DKK 11 million. At the end of 2017, the company’s cash funds totalled DKK 83 million. At the end of 2016, therefore, Sund & Bælt adopted on this basis a new business strategy that has intensified the company's focus. BroBizz will be a competitive, digital mobility platform based on business excellence and which, through strong partnerships, delivers exemplary services to customers in Scandinavia and during their journeys through Europe. This means an intensification of the company’s business development, including digitalisation, in order to provide efficient payment solutions and good services to customers, making BroBizz attractive at even more places of use. Events after the balance sheet date There are no events after the balance sheet date that are of significance to the Annual Report for 2017. Outlook for 2018 As part of the strategy, BroBizz A/S established the subsidiary BroBizz Operator A/S at the end of the year. The objective is to provide systems and services for operators of toll stations, etc. BroBizz will thus be in a position to offer end-to-end solutions for handling user-paid infrastructure, etc. Economic and financial developments in 2018 and thus the company's expectations for the year’s financial performance are subject to some uncertainty. \\Sv-data2-hals\transfer\Aarsrapport alle selskaber\ÅR_2017_UK.xlsx
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