4 Annual report A/S Femern Landanlæg 516 million. The contract includes approx. 60 km new track, the establishment or replacement of 52 sets of points as well as the renewal of large parts of the existing track. Thus, all major contracts for completing the work between Ringsted and Nykøbing Falster have either been agreed or, in the case of the Signalling programme, covered by an option. On 12 December 2017, the CEF Committee voted in favour of the European Commission's proposal that the Danish railway landworks for the forthcoming Fehmarnbelt link should be allocated up to EUR 123.5 million (DKK 920.3 million) from the EU "Connecting Europe Facility" programme. The subsidy amounts to approximately 20 per cent of the total construction costs for the period 2017-2023. The subsidy will be finally awarded when the subsidy agreement is entered into – presumably in April 2018. On 19 December 2017, the Road Directorate held a handover ceremony with the contractor MT Højgaard for the construction of a new bridge over the South Motorway at Lundegårdsvej, and subsequently the Lundegårdsvej bridge was opened to traffic. The new bridge replaces the demolished bridge following a lorry accident last year and forms part of the upgrading of the road network on the Danish side of the Fehmarnbelt link. Whereas the old bridge was narrow and had a weight limit, the new bridge has been built both longer and wider so that it can handle the increased traffic between the upcoming new Holeby Station and Rødby. The company’s capitalised construction costs amount to DKK 1,609 million. This sum comprises project costs of DKK 1,866 million, offset by EU subsidies of DKK 257 million. The result before tax is a loss of DKK 306 million. After tax, the result is a loss of 307 million. Equity amounted to DKK 826 million at the end of 2017. It should be noted that under the terms of the Planning Act for the fixed link across the Fehmarnbelt with associated landworks in Denmark and the Act on Construction and Operation of a Fixed Link across the Fehmarnbelt with associated landworks in Denmark for A/S Femern Landanlæg, the Danish state has extended separate guarantees for interest and repayments and other ongoing liabilities relating to the company’s borrowings against payment of a guarantee commission of 0.15 per cent. In addition, and without further notification of each individual case, the Danish state guarantees the company’s other financial liabilities. Board of Directors Vice-Chairmen Carsten Koch and David P. Meyer, as well as board members Pernille Sams and Mette Boye, stepped down from the Board of Directors at the Annual General Meeting in April and Jørn Tolstrup Rohde joined the board as the new ViceChairman. Cash flow statement Cash flow from operating activities is positive and amounts to DKK 454 million, which comprises differences in current assets and short-term debt. Cash flow from investing activities is negative at DKK 471 million, i.e. the purchase of fixed assets. The free cash flow is negative at DKK 17 million. At the end of 2017, the company’s cash at bank and in hand was positive at DKK 20 million. Events after the balance sheet date No events that are of significance to the Annual Report for 2017 occurred after the balance sheet date. Outlook for 2018 The economic and financial development in 2018 and thus the Group’s projections for the financial result for the year are subject to some uncertainty. In accordance with the budget for 2018 drawn up at the end of 2017, the result before tax is expected to amount to a loss of approximately DKK 4 million.
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