Sund & Bælt Partner A/S Annual report 3 Company objective Sund & Bælt Partner A/S, Sund & Bælt Holding A/S’ consulting company, offers consultancy services to developers and operators in Denmark and abroad. The consultancy services are based on the bridge companies’ significant experience and knowledge from the construction, operation and financing of the major infrastructure projects that have been undertaken over the past decades. The company operates under the tagline “We assist in the development, improvement and maintenance of infrastructure.” Through the contacts that Sund & Bælt Partner A/S establishes through its consultancy services for foreign companies, the company acts as a bridgehead between foreign clients and Danish companies for the benefit of Danish industry. Similarly, Danish consulting companies’ involvement in foreign projects can be enhanced by the special know-how that Sund & Bælt Partner A/S possesses as client and operator, which thereby strengthens the competitiveness of these consulting companies. This may be projects connected with the planning, preparation and implementation of client assignments in close dialogue with the authorities as well as projects relating to the operation and maintenance of infrastructure facilities. Highlights of the year In 2018, Sund & Bælt Partner A/S retained the financial advisory work for Metroselskabet I/S, By & Havn I/S, Letbane/Ring 3 and the Frederikssund Fjord link. Support was also extended to Banedanmark’s CopenhagenRingsted project and to the Signalling Programme. Lectures were delivered both in Denmark and abroad on major Danish infrastructure projects’ design, planning, execution and management. In 2016, Sund & Bælt Holding A/S adopted a new business strategy that entails increased use of new technology where the likes of drones, robots, sensors, etc., are used in the operation and maintenance of the Group's facilities. The implementation of the new strategy has resulted in a number of leading technology companies having consulted about the opportunities for entering into various types of partnerships, including proposals for specific development projects. The project with the City of Copenhagen to set up a data-driven demo model for the ITS World Congress in September 2018 was implemented. The project resulted in collaboration with KPMG, IBM and CN3. At the ITS World Congress 2018, the Sund & Bælt Holding A/S companies held a joint event that was very well received. A sales model has been developed, which can comprise various product modules, where the necessary collaborations are formalised as the product sales are launched. Sund & Bælt Partner A/S aims to have a share of the licence and to provide consultancy. In doing so, the company's earnings become less sensitive to access to sales of the limited resources available in the companies for project sales. Sund & Bælt Partner A/S will, in future, strengthen the part of the consultancy that is based on technology while also looking to enter into collaborations with companies that can assist in communicating Sund & Bælt Holding A/S' technological expertise. In connection with future infrastructure project investments, the OECD has set up an infrastructure group in which Sund & Bælt Partner A/S has participated. This forum has a strong interest in the State Guarantee model and the projects that Sund & Bælt Holding A/S has developed, built and operates. The company provided important input on risk allocation when entering into contracts and project financing for the Group’s work. The OECD report was published in June 2018 and attracted substantial media attention. It was made available on 6 November under the titles: The Danish State Guarantee Model for Infrastructure Investment Risk Allocation in Mega-Projects in Denmark Following positive feedback, the OECD has requested continued collaboration, which is being considered. Key figures, DKK million. Partner Operating income Operating expenses Depreciation Operating profit/loss (EBIT) Net financials Profit/loss before financial value adjustments 2018 4.9 -5.0 0.0 -0.1 0.0 -0.1 2017 4.9 -4.8 0.0 0.1 0.0 0.1 Cash flow Cash flow from operating activities is negative and totals DKK 31 thousand, which comprises changes in current assets and shortterm debt. Cash flow from investing activities is positive at DKK 0 thousand, which is related to the redemption of the bond portfolio. The free cash flow is negative at DKK 31 thousand. Cash flow from financing activities is negative at DKK 56 thousand and comprises interest expenses. The company’s cash funds amounted to DKK 11,062 thousand at the end of 2018.
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