COMMISSION DECISION
of 13 July 2009
on the restructuring aid for Combus A/S
(notified under document C(2009) 4538)
(Only the Danish text is authentic)
(Text with EEA relevance)
(2009/973/EC)
1. PROCEDURE
2. FACTS
2.1. THE DANISH BUS MARKET
2.1.1. GENERAL DESCRIPTION OF THE MARKET
(in %) |
||||||
|
Combus 1999 |
Combus 2004 |
Arriva 1999 |
Arriva 2004 |
Connex 1999 |
Connex 2004 |
Nordjylland |
64,85 |
0 |
0 |
18,64 |
7,17 |
24,72 |
Viborg |
17,27 |
0 |
0 |
17,40 |
0 |
0,33 |
Århus |
54,24 |
0 |
0 |
10,15 |
9,11 |
41,07 |
Ringkjøbing |
38,18 |
0 |
0 |
27,38 |
0 |
0 |
Vejle |
56,96 |
0 |
21,68 |
13,29 |
0 |
17,22 |
Ribe |
0 |
0 |
0 |
0 |
0 |
39,23 |
Sønderjylland |
32,41 |
0 |
0 |
0 |
0 |
0 |
Fyn |
97,80 |
0 |
0 |
100,00 |
0 |
0 |
Vestsjælland |
25,20 |
0 |
24,00 |
33,86 |
32,60 |
35,26 |
Storstrøm |
19,78 |
0 |
1,80 |
28,51 |
64,49 |
33,00 |
Bornholm |
28,00 |
0 |
0 |
0 |
50,67 |
81,02 |
Metropolitan Denmark |
22,26 |
0 |
50,47 |
46,73 |
8,60 |
27,95 |
Entire country |
33,98 |
0 |
26,59 |
34,46 |
10,99 |
25,14 |
Entire country excluding Metropolitan Denmark |
56,06 |
0 |
5,82 |
23,94 |
13,06 |
22,73 |
2.1.2. FINANCIAL DIFFICULTIES OF COMBUS
(absolute numbers) |
||||||
DKK 1 000 |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
Net turnover |
625 392 |
686 123 |
763 432 |
1 049 489 |
1 097 535 |
1 091 253 |
Gross result |
84 172 |
100 003 |
81 776 |
11 910 |
–17 230 |
68 206 |
Result before interest |
30 870 |
37 423 |
12 227 |
– 105 029 |
– 134 812 |
–50 035 |
Year's result |
31 184 |
28 546 |
7 684 |
– 139 128 |
– 168 267 |
–82 249 |
(in %) |
||||||
DKK 1 000 |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
Operating profit margin |
4,9 |
5,5 |
1,6 |
neg. |
neg. |
neg. |
Profit/capital ratio |
4,0 |
5,5 |
1,3 |
neg. |
neg. |
neg. |
Gross margin |
13,5 |
14,6 |
10,7 |
6,3 |
–1,6 |
1,1 |
Return on equity |
23,5 |
18,2 |
2,5 |
neg. |
neg. |
neg. |
|
Scenario |
|||
Worst case |
Neutral/negative |
Neutral/positive |
Best case |
|
Assumption: |
||||
Turnover |
Unchanged |
Unchanged |
Increasing |
Increasing |
Gross margin |
Unchanged |
Unchanged |
Unchanged |
Increasing |
Improvement measures |
No |
Yes |
Yes |
Yes |
Value in DKK millions of equity capital, July 2005 |
÷ 1 116,2 |
÷ 431,9 |
6,0 |
674,2 |
Value in DKK millions of equity capital current (10 % disc.) |
÷ 693,1 |
÷ 268,2 |
3,7 |
418,6 |
Source: Indicative valuation from the financial advisers. |
Scenario |
Liquidity at the end of the period in DKK million |
Comment |
Gradual winding up over 5 years |
– 331 |
Uncertain scenario |
Continuation with newer, better contracts for 6 years |
– 315 |
More uncertain scenario |
Continuation for 1 year without refinancing of due debt |
71 |
Would require, among other things, new bank debts of DKK 107 million. Would win time, but the sales situation thereafter would presumably be unchanged. |
Bankruptcy |
– 649 |
Total deficit, dividend 35-40 %. Lenders would lose DKK 280-300 million. |
Arriva's offer |
– 399 |
|
Source: The Ministry of Transport |
2.1.3. THE 1999 AND 2001 RESTRUCTURING MEASURES
(in DKK million) |
||||
|
Net turnover |
Result prior to offsetting provisions |
Provisions 1998 |
Result before tax |
Copenhagen Bus Area |
927,1 |
–90,0 |
60,0(22) |
–30,0 |
Sjælland Bus Area |
230,4 |
4,8 |
|
4,8 |
Århus Bus Area |
353,3 |
19,8 |
|
19,8 |
Vejle Bus Area |
351,0 |
0,5 |
|
0,5 |
Fyn Bus Area |
371,6 |
4,7 |
|
4,7 |
Total selected bus areas |
2 233,4 |
–60,2 |
|
–0,2 |
Other bus areas in total |
725,2 |
34,4 |
|
34,4 |
Overheads |
|
–77,4 |
|
–77,4 |
Bus areas + overheads in total |
2 958,6 |
– 103,2 |
60 |
43,2 |
Streamlining and rationalisation |
|
105,9 |
|
105,9 |
Anticipated subsequent result |
2 958,6 |
2,7 |
60 |
62,7 |
Source: Memo on the profitability of selected bus service contracts in the period 1999-2001. |
(DKK million) |
|
Cost increases |
|
Increase in maintenance costs |
–28,0 |
Increased fuel prices |
–3,0 |
|
–31,0 |
Cost reductions |
|
Reduction in sickness |
3,5 |
Reduction in the costs of repairs |
7,0 |
Reduction in insurance costs |
2,0 |
Closing and disposal of business premises |
3,0 |
Merger of headquarters |
39,0 |
|
+54,5 |
Annual net effect |
+23,5 |
Source: Arriva |
(in DKK million) |
||||||||
Year |
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
Turnover |
1 089 |
1 055 |
934 |
824 |
696 |
440 |
206 |
60 |
Profit/Loss |
– 118 |
–66 |
–59 |
–53 |
–43 |
–21 |
+6 |
+2 |
2.1.4. SUMMARY OF THE FINANCIAL SUPPORT OF THE DANISH STATE TO COMBUS
Type of support |
Year |
Amount (in DKK million) |
Provision in the opening accounts for civil servants (this payment has been authorised through the part of the initial decision that the CFI upheld) |
1995 |
140 |
One time payment to civil servants for statute change (this payment has been authorised through the part of the initial decision that the CFI upheld) |
1999 |
100 |
Capital increase |
1999 |
200 |
Subordinated loan (This subordinated loan has been written off in 2001) |
1999 |
100 |
Capital increase |
2001 |
140 |
Guarantees (see detailed description below table 9) |
2001 and following |
37,1 |
Total |
1995 to 2001 |
717,1 |
Guarantee |
Maximum cover |
Amount paid |
Environmental costs |
DKK 22,5 million |
No payments |
Reduction in equity capital |
DKK 35,5 million |
DKK 20,5 million |
Further commitments in relation to the equity capital guarantee |
DKK 0,9 million |
DKK 0,9 million |
Tax demand from the period prior to the transfer of Combus |
Unlimited |
Claims for payment of DKK 6,2 million have been submitted (current case at the National Tax Tribunal) |
Losses as a result of civil servants previously employed |
Unlimited |
No claims or payments |
Losses in connection with the sale of Combus International (Comfort Bus Danmark A/S) |
Unlimited |
DKK 9,5 million (partial repayment of the payment of dividends from Comfort Bus Denmark A/S u/k) |
Any losses related to the audit investigation into Combus A/S |
Unlimited |
No claims or payments |
Total |
|
DKK 37,1 million |
Measure and year |
Amount (in DKK million) |
Comment |
Capital increase, 1999 |
200 |
|
Subordinated loan, 1999 |
100 |
Written off in 2001 |
Capital increase, 2001 |
140 |
|
Total amount paid under guarantees, 2001 |
37,1 |
The cap of limited guarantees was DKK 58,9 million, out of which DKK 21,4 million have been drawn upon; for the unlimited guarantees, a total of DKK 15,7 million has been drawn |
Total 1999 |
300 |
Expressed in real 1999 terms |
Total 2001 |
177,1 |
Expressed in real 2001 terms |