Report 1st interim period 2021 - Vy Group Key information Board of Director's Report Numbers and notes
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Report 1st interim period 2021 Vy Group Key information Board of Director’s Report Numbers and notes
Table of contents 1st interim period 2021 Key information 3 Board of Director’s report 4 Group income statement 8 Group balance sheet 9 Group cash flow statement 10 Development in equity 11 Operating segments 12 Notes – reporting information 14 Tax policy 17 The interim report is not subject to financial audit.
Key information
Financial key figures
Year to date 2021 Year to date 2020
All figures in MNOK
Group profit
Operating revenue 4 655 5 148
Operating profit -384 -77
Profit before income tax -411 -217
Group cash flow
Net cash flow from operations 347 111
Group balance sheet
Net interest bearing debt * 5 698 4 943
Equity
Return on equity (ROE) (last 12 months) -23,5 % 5,8 %
Equity ratio 22,5 % 30,9 %
* Net interest-bearing debt includes net pension liabilities
Key performance indicators
Year to date 2021 Year to date 2020
Vy Group
Sick leave ratio (last 12 months) 8,0 % 7,2 %
H1 (Lost Time Injury per million work hours) 6,9 6,0
Passenger train
Number of train journeys - Norway (mill.) 7,4 15,2
Produced seat kilometers - Norway (mill.) 2 578 3 165
Punctuality - passenger train - Norway 90 % 90 %
Bus transport
Number of bus journeys (mill.) 15,9 26,0
Produced carriage kilometres (mill.) 57,1 55,2
Customer satisfaction express bus (index 0-100) 86 77
Freight transport
Number of transported TEU - freight train (1.000) 108 97
Net tonn km. (mill.) 970 894
Punctuality - freight train 95 % 95%
3 Vy Group – Report for the 1st interim period 2021
Board of Director’s report
Summary for the first four tourists as customers, a big part of the customer
months of 2021 base has been temporarily lost.
(Last year’s figures in brackets)
Developments in key management
The Covid-19 pandemic had a significant impact parameters:
on the group’s operations in the first four months • Decline in number of journeys by passenger
of 2021. New highs in the levels of infection and trains in Norway of 51 per cent
tight restrictions kept the number of journeys • Decline in number of journeys by bus of
with Vy at a significantly lower level than normal. 39 per cent
The comparative figures with the same period • Punctuality for passenger train operations is
last year are affected by the fact that the first 90 percent (90 percent)
two months of 2020 were not impacted by the • Punctuality in freight operations improved
pandemic. to 95 per cent (95 per cent)
• Sick leave during the period is 8.7 per cent
The authorities have stated that public transport (8.7 per cent)
will be maintained at a high level, especially • H1 has increased to 6,9 (6,0)
to ensure that employees who work within
critical functions will be able to get to and from Financial development
work and at the same time be able to keep • Operating profit is -384 MNOK (-77 MNOK)
social distance. Public purchasers (county • Profit after tax is -322 MNOK (-168 MNOK)
municipalities and the Norwegian Railway • Return on book equity over the last 12
Directorate) have therefore largely maintained months is -23.5 percent (5.8 percent)
public transport during the pandemic. As a • Reduced earnings in the Passenger train
general rule, payment for the offer has been operation compared to the same period last
maintained, and additional agreements have year
been entered into to compensate for parts of • Reduced earnings in the Bus operation
the loss of income where Vy has full or partial compared to the same period last year
revenue responsibility in the form of revenue • Improved results for the Freight operation
from passengers. • Impairment of contracts of NOK 127 million,
mainly due to Covid-19 which leads to
For commercial lines, the loss of revenue has weaker market and profit development
been significant, even though support schemes
have compensated for parts of the loss. Vy has
continued to offer services at a reduced level Summary of Results and Trends for
within the express bus business, which in turn the Business Areas
has led to continued layoffs.
Passenger Train Operations
Demand for the transport of goods by rail is Vy operates traffic package West as well as train
positively affected by the pandemic. Demand traffic in Eastern Norway. The company is now
for the transport of aviation fuel and timber working to present a tender for traffic package 4
has fallen significantly, but the fall is more than for Eastern Norway, starting in December 2023.
offset by increased demand for the transport of Traffic package 5 has been postponed and
groceries and packages. start-up is planned for December 2025.
Vys’ tourism offer has been hit hard by the Operating revenues for the passenger train
corona pandemic. For Fjord Tours Group and business as of the first four months of 2021
Flåm Utvikling, which largely have foreign are NOK 2,169 million (NOK 2,673 million), a
4 Vy Group – Report for the 1st interim period 2021reduction of 19 per cent from the previous year. aviation fuel has been reduced compared to a
The total number of journeys in the passenger normal year.
train business in Norway is 7.4 million. This is
a reduction of 51 per cent compared with the The average punctuality of freight trains was
same period last year. The main reason for maintained at 95 per cent (95 per cent) within
the decline is the strict measures that were 15 minutes, significantly better than the target
introduced as a result of the pandemic. of 92 per cent.
The operating profit for the passenger train Operating revenues are NOK 356 million (NOK
business is -266 MNOK (70 MNOK) as of the 318 million), and operating profit is NOK 12
first four months of 2021. The main reason for million (NOK 3 million). The main reason for the
the decline is a reduction in passenger revenues improvement in profits is increased demand,
due to the reduced number of journeys, which effects of an internal efficiency program and
is partly offset by production adjustments environmental support from the authorities.
and other cost reductions, as well as the
supplementary agreement with the Norwegian Customer experience and innovation
Railway Directorate to compensate for parts of The Customer experience and innovation
the loss. In addition, contracts have been written business aims to develop and offer good user
down by NOK 127 million. experiences and customer information, as well
as contribute to sustainable tourism. A good
In Norway, Vy achieved a punctuality of 90 per travel planning platform and mobility services
cent, similar to the corresponding period last strengthen the bus and train services, and make
year. it easier to travel by public transport.
Bus Operations Vys’ investment in 250 free-flow electric city
Vy Bus carries out regular services on tenders or cars in Oslo developed largely according to the
contracts with county municipalities in Norway plan before the pandemic. After the authorities’
and Sweden, as well as express bus services introduction of measures to reduce the risk of
and tour services. The number of bus journeys infection, however, the volume has been 71 per
for scheduled buses in Norway and Sweden cent of the corresponding period before the
has been significantly reduced as a result pandemic.
of the pandemic, but the service has largely
been maintained in agreement with the county Within tourism, fjord, mountain and cultural
authorities. The number of express bus journeys experiences are sold to Norwegian customers,
in Norway was reduced to 26 per cent of the tourists and international tour operators. The
normal level during the period. main part of the investment is made through
our part ownership in Fjord Tours Group and
Total operating revenues per the first four- Flåm Utvikling. We are working to develop more
month period are NOK 1,868 million (NOK attractive tourism packages by train, bus and
1,941 million). Operating profit is -69 MNOK boat together with local tourism players.
(-28 MNOK). The main reason for the loss of
profit is a decrease in the number of journeys The travel industry has been severely hit by
and passenger revenues as a result of Covid-19 the pandemic, and there has been a 91 percent
measures, which is partly offset by cost decrease in travel with Flåmsbana compared to
reductions related to reduced route offers and a normal year, and cancellations and reductions
lay offs. in future bookings for Fjord Tours Group. The
increase in domestic travellers has only partially
Freight Operations compensated for the shortfall in foreign tourism.
The freight operations are less affected by
the pandemic than other business segments. Management
Demand for combined transport has been rising Vy is one of the largest mobility operators in
the last few months, while demand for industrial the Nordic region with operations in passenger
trains for timber transport and transport of trains, bus, freight and tourism in Norway and
5 Vy Group – Report for the 1st interim period 2021Sweden. The parent company Vygruppen AS is are expected to be vaccinated by July-August.
owned by the Norwegian state represented by It is uncertain when the travel pattern will
the Ministry of Transport and Communications. be normalized and what will be the new
Vy’s most important sustainability contribution normal level of mobility. Vy therefore prepares
is to make traveling by public transport easier, several scenarios for future development and
which reduces greenhouse gas emissions, associated measures to minimize potentially
relieves congestion, reduces the number of adverse financial effects. The financial
accidents, leads to fewer local emissions and development in 2021 is also dependent on
less noise. the support measures from the authorities
to compensate for loss of revenue due to the
For a detailed account of: pandemic. In the revised national budget, the
• Corporate governance government proposed to allocate funds for such
• Ownership support until the end of October.
• Strategies and goals
• Efforts to promote sustainability The passenger train market is exposed to
• Internal control and competition. Vy operates the traffic in Eastern
• Risk Norway, the Bergen line and local traffic around
Bergen, and works with the tender in the
reference is made to the description in the competition for traffic package 4 for Eastern
Group’s annual and sustainability report for Norway, which is scheduled to start in December
2020. 2023. Vy maintains the route offer according
to the agreement with the Norwegian Railway
Financial Development Directorate.
Profit after tax per the 1st four-month period
of 2021 for Vygruppen is -322 MNOK (-168 In the bus business, the route offer is maintained
MNOK), a reduction of 154 MNOK compared to in accordance with agreements with the public
last year. Operating profit is -384 MNOK (-77 transport companies. For the commercial bus
MNOK). routes and airport buses, the supply is adapted
in line with the development in demand. Vy
The group’s net cash flow from operating Buss will start up new contracts, for example in
activities is 347 MNOK (111 MNOK). Net Trøndelag and in Sweden, and will participate in
investments excluding leasing are -82 MNOK several large new bus offers in both Norway and
(308 MNOK). The investments are mainly used Sweden.
to increase capacity and profitability within the
passenger train and bus business. The situation for freight transport by rail is
challenging. Demand for freight transport is
For the group, equity per the first four-month positively affected by the pandemic, with growth
period of 2021 is NOK 3,807 million, which gives in transport needs for groceries and packages,
an equity ratio of 22.5 per cent. but reduced demand for transport of jet fuel and
timber. The company will adapt production to
The group’s return on book equity over the last demand. The focus on new customer solutions
12 months. is -23.5 percent (5.8 percent). and improvement measures is continued to
improve profitability. At the same time, better
The accounts have been prepared on the and predictable framework conditions, including
assumption of continued operations, and the the continuation of the environmental support
board confirms that the assumption is present. scheme, are very important to ensure long-term
profitability and future transport of goods by rail.
Outlook
Waves of infection after the New Year led In tourism, we adapt the offer and marketing
to continuing strict restrictions from the to Norwegian tourists, and prepare for growth
authorities, and the number of journeys with Vy when international air traffic reopens.
remained at a low level as a result. Vaccination
is underway, and large parts of the population Our main goal for 2021 is to work to re-establish
profitability and ensure future competitiveness.
6 Vy Group – Report for the 1st interim period 2021We will re-establish our commercial offers in line We believe that public transport will play a
with the development in demand. key role in the years ahead and that it will be
absolutely essential for Norway to achieve its
We will continue our focus on digital solutions, climate goals.
explore the possibilities inherent in new
technology and develop offers and new services The Board would like to express deep gratitude
that make it easy to travel in an environmentally to our employees, who each day carry out a
friendly way. socially critical effort to maintain the offer during
the demanding pandemic.
Oslo, 31st of May 2021
Board of directors in the Vy Group
Berit Svendsen/ Chairman of the board Åsne Havnelid Geir Inge Stokke
Wenche Teigland Semming Semmingsen Ove Sindre Lund
Jan Audun Strand Grethe Therese Thorsen Gro Bakstad/ CEO
7 Vy Group – Report for the 1st interim period 2021Group income statement
Income statement Year to date Year
Last
12 months
Notes 2021 2020 2020
Operating revenue 1 4 655 5 148 14 506 14 013
Payroll and related expenses 2 188 2 217 6 266 6 237
Depreciation and impairment 695 724 2 389 2 360
Other operating expenses 2 2 142 2 273 6 613 6 482
Total operating expenses 5 025 5 214 15 268 15 079
Share of profit of joint ventures -14 -12 -24 -26
Share of profit in associates - 1 5 4
Operating profit -384 -77 -781 -1 088
Financial items
Financial income 19 33 58 45
Financial expenses -43 -145 -236 -133
Net financial expenses - pensions -6 -9 -25 -22
Unrealised fair value changes 3 -19 9 30
Net financial items -27 -141 -194 -80
Profit before income tax -411 -217 -975 -1 169
Income tax expense 89 49 117 156
Profit for the year -322 -168 -858 -1 012
Attributable to
Non-controlling interest - - - -
Equity holders -322 -168 -858 -1 012
TOTAL -322 -168 -858 -1 012
OTHER COMPREHENSIVE INCOME
Profit for the year -322 -168 -858 -1 012
Items that will not be reclassified to profit or loss
Deviation retirement benefit obligations - - 95 95
Tax related to items that will not be reclassified - - -21 -21
Items that can be reclassified in net income in later
periods
Currency translation differences -67 129 106 -90
Total comprehensive income for the period -389 -39 -678 -1 029
Attributable to
Non-controlling interest - - - -
Equity holders -389 -39 -678 -1 029
Total comprehensive income for the period -389 -39 -678 -1 029
8 Vy Group – Report for the 1st interim period 2021Group balance sheet
Overview financial position Notes 30.04.2021 31.12.2020 30.04.2020
ASSETS
Intangible assets 1 126 1 202 1 418
Deferred tax assets 306 221 109
Property, plant and equipment 10 077 9 974 8 446
Investments in associates 36 35 32
Financial fixed assets 105 81 82
Total non-current assets 11 650 11 513 10 087
Investment in joint ventures 145 133 145
Inventories 543 589 748
Trade and other receivables 1 814 1 635 1 592
Financial assets 1 866 1 861 1 810
Cash and bank deposits 868 1 177 1 265
Total current assets 5 236 5 395 5 560
TOTAL ASSETS 16 886 16 908 15 646
EQUITY AND LIABILITIES
Ordinary shares and share premium 3 686 3 686 3 686
Retained earnings 121 510 1 149
Total equity 3 807 4 196 4 834
Debt 6 708 6 529 5 062
Deferred income tax liabilities 112 118 -
Retirement benefit obligations 1 284 1 293 1 486
Provisions for other liabilities and charges 320 262 224
Total long term liabilities 8 424 8 202 6 772
Trade and other payables 2 919 2 752 2 502
Tax payable 11 23 43
Debt 1 725 1 735 1 495
Total short term liabilities 4 655 4 510 4 040
TOTAL EQUITY AND LIABILITIES 16 886 16 908 15 646
Oslo, 31st of May 2021
Board of directors in the Vy Group
Berit Svendsen/ Chairman of the board Åsne Havnelid Geir Inge Stokke
Wenche Teigland Semming Semmingsen Ove Sindre Lund
Jan Audun Strand Grethe Therese Thorsen Gro Bakstad/ CEO
9 Vy Group – Report for the 1st interim period 2021Group cash flow statement
Cash flow statement Year to date Year
Notes 2021 2020 2020
Profit (+)/ Loss (-) for the period before income tax expense -411 -217 -975
Depreciation and impairment 695 724 2 389
Gain on sale of property, plant and equipment (PPE) -4 -5 -19
Difference between exp. and paym. made/receiv. for pensions -9 -31 -128
Changes in provisions for other liabilities and charges 86 -5 149
Change in unrealised fair value -3 19 -9
Interest items 1 47 5
Shares of profit from associated and joint ventures 14 11 19
Changes in working capital -18 -430 -211
Taxes paid -4 -2 -4
Net cash flow from operating activities 347 111 1 216
Acquisition of subsidiaries less cash acquired 4 -19 -1 174 -1 174
Changes in financial non-current assets -24 1 604 1 617
Purchase of property, plant and equipment -48 -130 -397
Proceeds from sale of assets 9 8 79
Net cash flow from investment activities -82 308 125
Repayment of debt -1 -1 -2
Repayment on leases debt 3 -572 -565 -1 577
Net cash flow used in financial activities -573 -566 -1 579
Net change in cash and bank deposits for the period -308 -147 -238
Cash and bank deposits as at the beginning of the period 1 177 1 395 1 395
Foreign exchange gain/loss on cash and bank deposits -1 17 20
Cash and bank deposits as at the end of the period 868 1 265 1 177
10 Vy Group – Report for the 1st interim period 2021Development in equity
Development in equity
Restricted Acc.
Ord. shares and equity, hedging currency Retained
1st interim period 2021 share premium reserve translation earnings TOTAL
Equity 1st of January 2021 3 686 1 102 408 4 196
Profit for the interim period - - - -322 -322
From other comprehensive income - - -67 - -67
Equity 30th of April 2021 3 686 1 35 86 3 807
Restricted Acc.
Ord. shares and equity, hedging currency Retained
1st interim period 2020 share premium reserve translation earnings TOTAL
Equity 1st of January 2020 3 686 1 -6 1 192 4 873
Profit for the interim period - - - -168 -168
From other comprehensive income - - 129 - 129
Equity 30th of April 2020 3 686 1 124 1 024 4 834
Ord. shares and Restricted equity, Acc. currency Retained
2020 share premium hedging reserve translation earnings TOTAL
Equity 1st of January 2020 3 686 1 -6 1 192 4 873
Profit for the interim period - - - -858 -858
From other comprehensive income - - 106 74 180
Equity 31st of December 2020 3 686 1 102 408 4 196
11 Vy Group – Report for the 1st interim period 2021Operating segments
Segment information
Business segments
As of 30 April 2021, the Group has its main activities in the following segments:
(1) Train: passenger train operations
(2) Bus: passenger bus operations
(3) Freight: freight train operations
(4) Customer experiences and innovation
(5) Other: Other entities and Group functions
In line with changes in the management reporting structure the Group has adjusted the segment
reporting as of 1 January 2021 so that Mobility and Travel has changed name to Customer experience
and Innovation. At the same time some Group functions have been transferred to the Other segment.
Comparative figures for 2020 are adjusted accordingly.
Segment assets in the tables below consist mainly of property, plant and equipment, intangible
assets, inventories and other assets and cash, while deferred tax asset and derivative instruments are
not included.
Customer ex-
Year to date 2021 Passenger periences and
train Bus Freight innovation Other/elim Group
Sales reveneue 689 1 824 338 - 210 3 061
Public purchases 1 391 - - - - 1 391
Other revenue 89 44 18 42 10 203
Operating revenue 2 169 1 868 356 42 220 4 655
Operating expenses 2 071 1 673 303 72 212 4 330
Depreciation, impairment 364 264 41 5 21 695
Total operating cost 2 435 1 937 344 77 233 5 025
Share of profit/loss in joint ventures and
associated companies - - - -14 - -14
Operating profit -266 -69 12 -49 -13 -384
Segment assets 6 098 6 249 1 071 275 2 873 16 566
Investments 508 291 25 5 20 849
12 Vy Group – Report for the 1st interim period 2021Customer ex-
Passenger periences and
Year to date 2020 train Bus Freight innovation Other/elim Group
Sales reveneue 1 030 1 891 306 1 192 3 420
Public purchases 1 509 - - - - 1 509
Other revenue 134 50 12 46 -23 219
Operating revenue 2 673 1 941 318 47 169 5 148
Operating expenses 2 195 1 719 277 97 202 4 490
Depreciation, impairment 408 251 38 6 21 724
Total operating cost 2 603 1 970 315 103 223 5 214
Share of profit/loss in joint ventures and
associated companies - 1 - -12 - -11
Operating profit 70 -28 3 -68 -54 -77
Segment assets 5 345 5 862 1 159 337 2 906 15 609
Investments 9 109 12 - - 130
Customer ex-
Passenger periences and
2020 train Bus Freight innovation Other/elim Group
Sales reveneue 2 627 5 461 938 1 565 9 592
Public purchases 4 141 - - - - 4 141
Other revenue 501 166 37 139 -70 773
Operating revenue 7 269 5 627 975 140 495 14 506
Operating expenses 6 422 4 947 877 290 343 12 879
Depreciation, impairment 1 152 1 016 118 38 65 2 389
Total operating cost 7 574 5 963 995 328 408 15 268
Share of profit/loss in joint ventures and
associated companies - 5 - -24 - -19
Operating profit -305 -331 -20 -212 87 -781
Segment assets 6 027 6 286 1 111 170 3 091 16 685
Investments 1 535 1 678 65 7 2 3 287
13 Vy Group – Report for the 1st interim period 2021Notes – reporting information
Framework and accounting principles Segment Reporting
The Group reports its operating segments
The Vy Group’s financial statements have been according to how Group management, which
prepared in accordance with International is the chief operating decision-maker, adopts,
Financial Reporting Standards (IFRS) and follow-ups and evaluates decisions which
interpretations from the IFRS interpretations is in line with the internal reporting which is
committee (IFRIC) as determined by EU. regularly evaluated by the management and
which is the basis for allocation of resources and
The consolidated financial statements for the achievement of objectives.
Group have been prepared on a historical cost
basis except for derivative financial instruments, The Group has the following operating
certain financial assets and liabilities which are segments:
carried at fair value.
Passenger train: passenger train operations
The interim financial statements have been Bus: passenger bus operations
prepared in accordance with IAS 34 Interim Freight: freight train operations
Financial Reporting. The interim financial Customer experiences and innovation
statements should be viewed in conjunction with
the last published annual report containing a full The Other segment consists of other activities in
description of the Group’s accounting principles. the Group such as cleaning of trains, a captive,
Team Verksted and Group functions.
Accounting principles applied in 2021 are
consistent with the accounting principles that
were used for the financial statements in 2020.
The consolidated financial statements have
been prepared on a going concern basis.
14 Vy Group – Report for the 1st interim period 20211. Revenues
Analysis of Operating income by category
Year to date Year to date Year
2021 2020 2020
Transport revenue 4 243 4 803 13 218
Other revenue 412 345 1 288
Total 4 655 5 148 14 506
The Group mainly operates in Norway. The Group also has some operations in Sweden.
Information of important customers
The Group has one customer that constitutes more than 10 % of operating income. The Government’s public purchase from the
Vy Group is 1 266 MNOK (1 395 MNOK) as of 30th of April 2021.
In connection with the Covid-19 pandemic, the Government has adopted a support scheme by allowing the Norwegian Railway
Directorate to enter into temporary additional agreements regarding the state purchase of passenger train services. Income
from this support scheme is included in the government’s purchase of services from the Vy Group.
Type Segment IFRS 15 behandling
Personnel transport Passenger train and bus Revenue recognition at the transport date
Food and on board services Passenger train and bus Revenue recognition at the date of sale
Agreements with counties and municipalities Bus Revenue recognition at the transport date
Workshop services Bus Revenue recognition when the service is delivered
Agreements with counties and municipalities Passenger train and bus Revenue recognition at the transport date
Traffic agreement with the state of Norway and Passenger train and bus Revenue recognition at the transport date
public purchaser abroad
Fees Passenger train and bus Revenue recognition at the date of issuance
Freight and terminal services Freight Revenue recognition when the service is delivered
Other services - sale of ad hoc services, renting premises etc. All Revenue recognition when the service is delivered
2. Other expenses
Other expenses
Year to date Year to date Year
2021 2020 2020
Sales- and overhead expenses 419 479 1 350
Energy used in operations 377 361 970
Property expenses, repair and maintenance 699 788 2 171
Other operating expenses 647 644 2 122
Total 2 142 2 273 6 613
15 Vy Group – Report for the 1st interim period 20213. Leases
Year to date Year to date Year
Specification of the changes in right of use assets 2021 2020 2020
Opening balance right of use assets 8 028 6 763 6 763
Depreciations -555 -553 -1 636
Addition and changes in agreements 798 116 2 873
Other -35 26 28
Total closing balance 8 236 6 352 8 028
Specification of the changes in liabilities Year to date Year to date Year
2021 2020 2020
Opening balance leasing obligation 8 251 6 903 6 903
Lease payments -580 -565 -1 581
Addition and changes in agreements 811 107 2 865
Other/currency effects -62 86 64
Total closing balance 8 420 6 531 8 251
Further, there is a future lease liability of approximately NOK 1 606 million (nominal) for lease of passenger trains and buses,
which are ordered, but not delivered. Lease liabilities and right of use assets will be recognized when the trains and buses are
delivered and made available for use by the Group.
Liabilities Year to date Year to date Year
2021 2020 2020
Short-term liabilities 1 714 1 481 1 733
Long-term liabilities 6 706 5 050 6 518
Total 8 420 6 531 8 251
Finance costs Year to date Year to date Year
2021 2020 2020
Finance costs leasing liabilities 62 62 168
Year to date Year to date Year
Cash-Flow 2021 2020 2020
Total cash-flow lease payments
642 627 1 795
4. Acquisition of shares in Minibuss 24-7 AS
On 9 April 2021, the Group paid 19 MNOK in cash for 50.67% of the shares in Minibuss 24-7 AS. Prior to the acquisition, the
Group owned 49.33% of the shares and the company has been recognised as an associated company within the Bus segment.
The acquisition was formally approved by the Norwegian Competition Authority in the beginning of May. The company is
therefore still recognised as an associated company as per 30th April and the cash consideration is recognised within “Financial
fixed assets” in the balance sheet. The company will be recognised as a fully owned subsidiary in the group accounts after the
approval by the Norwegian Competition Authority.
5. Contract losses
Passenger train contract loss in Norway
Operating revenue in the bus and passenger train segments is mainly related to long term tender contracts. At each interim
reporting period, the contracts are evaluated for any provisions according to IAS 37. In these evaluations the Group measures
present value of future expected cash flows from operational activities in each separate contract, where estimated payments
include all future unavoidable operating expenses. The provision is limited to the lower amount of continuing or exiting the
contract. The provision is released over the remaining contract period. As per the first interim period, a contract loss of 127
MNOK has been recognized in the passenger train segment.
16 Vy Group – Report for the 1st interim period 2021Tax policy
Background towards each host country’s tax authorities, including
providing timely and correct information to form the basis
for taxation of the company. Our companies are expected
In line with expectations from the owner enshrined in
to follow the tax laws of the countries in which they operate,
Eierskapsmeldingen (Meld.St.8 2019–2020), Vygruppen
both in terms of the letter and intent of the law.
AS has prepared a policy for the group’s tax behaviour. The
policy has been communicated to all our subsidiaries.
Through active follow-up, Vygruppen will ensure that our
companies are operated responsibly and professionally. This
About Vygruppen and our tax policy also means that we will contribute to increased awareness
of tax legislation and compliance with the rules that apply to
Vygruppen is a transport and tourism group owned by the the individual company.
Norwegian state via the Ministry of Transport. We will ensure
customers the best journey by providing environmentally
friendly, smart, cost-effective and safe transport. In addition, 3. Integrity and fairness
the Group provides freight of goods on track.
We are not participating in artificial schemes to reduce
All our activities are carried out with a focus on safety and taxes.
are based on environmental solutions. Vygruppen should not knowingly contribute to harmful tax
practices. We will to the best of our ability ensure that our
Our tax policy rests on three fundamentals: companies do not engage in harmful or potentially harmful
tax behavior. At the same time, we consider it appropriate
1. Sustainability that the companies within the group are taking advantage of
the tax incentives that exist for its businesses.
Tax revenues are a prerequisite for sustainable
development. Our companies are further encouraged to:
Profitable companies contribute to increased tax revenues,
which in turn contributes to the financing of the individual a) Comply with tax legislation
state’s development. Through success in our work, we will Companies must comply with all applicable laws and
indirectly contribute to the funding of key institutions such regulations in the countries in which they operate.
as health, welfare and education, as well as fixed assets and
infrastructure. b) Do not participate in undermining the country’s tax
base or encourage to transfer of profits
Companies must not adopt artificial schemes, such as the
use of internal pricing to move taxable profits from where
2. Origin and transparency they have their business.
Our companies must pay taxes to the country where the c) Do not take part in aggressive tax planning
values are created. Companies should not take part in any kind of aggressive tax
Vygruppen operates in Norway and Sweden. Regardless of planning that drains the local tax base.
where the business is located, all our companies shall pay
tax to the host country where the values are generated. In
addition, all our companies are expected to act transparently
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