Great Belt A/S

Interim Report

Great Belt A/S
10 September 2001

                                                           24 August 2001
Interim Report
For the period 1 January - 30 June 2001

(DKK 1,000)                   1st half-year   1st half-year 
                                 2001              2000             2000


Revenue, road                   877,680          826,782          1,771,792

Revenue, rail                   288,350          282,700            565,400

Other revenue                     3,100              726              3,889

Total net turnover            1,169,130        1,110,208          2,341,081

Operating costs                -118,290         -147,115           -292,499

Result before depreciation    1,050,840          963,093          2,048,582

Depreciation                   -221,116         -211,280           -463,433

Result from ordinary 
  operations                    829,724          751,813          1,585,149

Financial items                -794,489       -1,172,654         -2,091,776

Result before tax                35,235         -420,841           -506,627


Fixed assets: 

Road link                    17,225,187       17,495,793         17,352,413

Rail link                    17,215,972       17,389,458         17,305,717

Road and rail links, 
  total                      34,441,159       34,885,251         34,658,130

Other tangible fixed assets      85,860           80,318             76,664

Total tangible fixed 
  assets                     34,527,019       34,965,569         34,734,794

Financial fixed assets        1,573,398        2,059,676          1,879,365    
Total fixed assets           36,100,417       37,025,245         36,614,159

Current assets:

Receivables                     257,680          250,450            252,306

Liquid funds and              3,772,810        2,116,606          3,659,348

Total current assets          4,030,490        2,367,056          3,911,654

Total assets                 40,130,907       39,392,301         40,525,813


Equity capital:

Share capital                   355,000          355,000            355,000

Result carried forward       -3,524,811       -3,021,655         -3,021,655
as primo 

Result for the period            35,235         -420,841           -503,155

Total equity capital         -3,134,576       -3,087,496         -3,169,810


Debenture loans and          42,564,619       41,653,913         43,027,195
bank loans 

Other debt                      700,864          825,884            668,428
Total debt                   43,265,483       42,479,797         43,695,623

Total liabilities            40,130,907       39,392,301         40,525,813


Profit ratio                      71.1%            67.8%              67.8%
(ordinary operations) 

Rate of return                     4.1%             3.8%               3.9%
(ordinary operations) 

Return on facility                 4.8%             4.3%               4.6%
(ordinary operations)


The Interim Report is presented in accordance with the accounting policies 
applied for the preparation of the annual accounts for 2000.

Profit and Loss Account

Net turnover
Net turnover includes revenue from the facilities, including tolls for road 
traffic and fixed fees for the rail link. The tolls and fees have been deter-
mined by the Danish Ministry of Transport.

The completed contract method is used for the calculation of net turnover.

Depreciation of the road and rail links began from the completion of the 
construction works and the commissioning of the facilities. The facilities are 
depreciated over the expected lifetime using the straight-line method. As 
regards the road link, the facilities have been divided into sections with 
uniform lifetimes.

*   The main part of the facilities comprises the constructions, which are      
    designed for a minimum lifetime of 100 years. Here the period of            
    depreciation amounts to 100 years.

*   Mechanical installations, crash barriers and road surfaces are depreciated  
    over 20-50 years.

*   Software and electrical installations are depreciated over life-times of 
    10-20 years.

The rail link is depreciated over a lifetime of 100 years. As the Danish 
National Railways Agency is financially responsible for maintenance and for 
normal reinvestments, no differentiation of the depreciation period has been 

Other assets are included at cost and depreciated on the following basis:

Leasehold improvements, the lease period, but max.           5 years 
Machinery, fixtures & fittings                               5 years 
Administrative computer systems and programmes               0-5 years 
Buildings for operational use                                25 years

Assets at an original cost of less than DKK 100,000 are expensed in the year of 

Financial items
Financial items comprise interest expenses and income from loans and placements.
Interest payments and income are entered in accordance with the amounts relating
to the accounting period.

Financial items also include realised and unrealised foreign currency 
adjustments and gains/losses on derivatives.

The company is taxed jointly with the parent company, Sund & Baelt Holding A/S, 
and A/S 0resund. The company is jointly and severally liable with Sund & Baelt 
Holding A/S and A/S 0resund for tax on consolidated taxable income.

Net taxation for the jointly taxed companies is duly apportioned between the 
profit-making companies. Companies, which have obtained tax savings through tax 
losses in other companies, pay a joint tax contribution to these, corresponding 
to the applied loss multiplied by the corporation tax rate.

The Public Works Act for the Fixed Link across Great Belt lays down specific 
rules regarding tax loss carry-forward due to the long construction periods. The
carry forward regulations mean that the company is not liable for tax for 
several years.

Balance sheet

Road and rail links
During the construction period, the value of the facilities was calculated in 
accordance with the following principles:

-   Expenses for the facility based on signed agreements and contracts are      
    capitalised directly.

-   Other direct or indirect costs are capitalised as value of own work.

-   Net financing costs are capitalised as construction interest.

Significant future repair and maintenance works concerning the completed road 
structure will be capitalised and depreciated over the expected economic 
lifetime. Ongoing maintenance works will be expensed as incurred.

Receivables from sales
Receivables from sales include claims on customers and outstanding accounts with
payment card companies. Receivables are valued individually and necessary 
provision has been made for potential loss.

Assets and liabilities in foreign currencies
Assets and liabilities in foreign currencies are included in the Balance Sheet 
after conversion at the exchange rate prevailing on the balance sheet date.

Loans converted by using currency swaps or other derivatives are included at the
exchange rate prevailing on the balance sheet date in the currency to which the 
debt has been converted.

Current assets and current liabilities, secured by foreign exchange contracts, 
are entered at the forward exchange rate.

The securities portfolio is valued at the closing rate. Holdings of own debt 
securities in issue are valued at nominal value, so that the valuation of the 
holding is symmetrical with the value of the liability item.

Debenture loans and bank loans
Debenture loans and bank loans are entered at nominal value in the Balance Sheet
under Liabilities. Differences between the received net revenue and the loan's 
nominal value are capitalised under Financial Fixed Assets. The difference is 
taken into the Profit and Loss Account over the maturity of the loan.

Zero coupon bonds are entered in the Balance Sheet under Liabilities at the 
received net revenue and revalued over the maturity using the straight-line 

Derivatives used for hedging are treated in the same way as the items that are 
hedged, allowing for symmetrical recording of gains and losses of the hedged 
amounts and the hedging instrument.

Instruments used for conversion of interest or for covering interest risks on 
bonds, etc. are not regulated at market value, but are treated as part of the 
hedged bond loans. Interest from such derivatives is accrued and recorded 
together with interest from the bond loans.

Financial instruments that are settled before the end of the maturity of the 
bond loans are recorded gains or losses over the remaining maturity of the bond 
loan using the straight-line method.


The positive trend from the financial year 2000 has been maintained in 2001.

During the 1st half of 2001, traffic on Great Belt increased 4.1% compared to 
the first half of 2000. The breakdown for traffic growth is 3.7% for private 
motorists and 6.8% for trucks. A slight fall for coach traffic has, however, 
been recorded.  For the same period, car traffic fell by 0.9% on a national 

Compared to the budget, increased turnover of almost DKK 15 million, i.e. 
approx. 2%, was recorded for the road link.

For the 1st half of 2001, Great Belt's market share for East-West traffic saw a 
1% increase for private motorists to 86%, while the market share for trucks - 
despite a significant volume increase - fell by 1% to 83%. The cause of the 
decline is thought to be the operational problems experienced by the Mols ferry 
line in the spring 2000. These have now been resolved.

The use of the BroBizz as a method of payment continues to rise. By end June, 
approx. 112,000 BroBizzes were in circulation. The proportion of crossings 
involving BroBizz currently amounts to an average of 40%. On weekdays, the 
proportion is 50%. The widespread use meant that the number of BroBizz lanes was
increased from two to three in each direction from the end of May.

In 2001, the company has continued its endeavours to extend the use of the 
BroBizz to other vehicle-related services. The beginning of August saw the start
of a partnership agreement with Scandlines for the use of the BroBizz system on 
the company's ferry routes. The system can now be used on the Elsinore-
Halsingborg route and, later this year, will be available on the Rodby-
Puttgarden service. Negotiations are also taking place with other potential 

Revenue from the rail link is in line with the budget and the fees determined by
the Danish Minister of Transport.

Financing expenses totalled DKK 794.5 million, i.e. approx. DKK 450 million 
lower than budgeted. For the half year, financing interest, therefore, totalled 
4.62% per annum including exchange rate adjustments. The difference can be 
attributed to exchange rate adjustments, with gains of 0.30% per annum. The 
budget contains a risk buffer to counter against uncertainties relating to 
exchange rate developments.

Loans totalling DKK 5.3 billion were taken up during the period.

The result for the period shows a profit of DKK 35.2 million compared to a 
budgeted loss of approx. DKK 480 million. As mentioned above, the difference is 
largely attributable to the financial result.

Based on the realised result for the 1st half of 2001 and the expectation that 
the financial result for the 2nd half year will be on a par with the realised 
result for the 1st half year, the result for 2001 is expected to amount to a 
loss in the region of DKK 170 million against a previously expected loss of 
approx. DKK 840 million. However, there continues to be considerable uncertainty
with regard to exchange rate developments.

As at end June, equity capital was negative, i.e. DKK 3.1 billion. Equity 
capital movements for the period solely relate to the result for the 1st half of

Based on the estimated operating result, equity capital is expected to be re-
established within a time frame of 21 years. Future operating results have been 
calculated on the basis of the fees paid by the Danish National Railways Agency 
for use of the rail link as determined by the Danish Minister of Transport and 
on the traffic forecasts for road traffic.

Under the terms of the Public Works Act, the Danish state has extended separate 
guarantees for interest and repayments and other ongoing commitments relating to
the company's loans. Moreover and without further notification of each 
particular case, the Danish State guarantees the company's other financial 
commitments. The company pays a guarantee commission of 0.15% to the Danish 

The pre-conditions regarding the project's profitability have not changed. As 
stated in the Annual Report for 2000, it is calculated that Great Belt A/S will 
be debt-free approx. 30 years calculated from the bridge's opening in 1998. 
However, some uncertainty remains with regard to the debt repayment period, 
especially with regard to financing costs and traffic revenue. If financing 
expenses rise by 1% the repayment period will be extended to 36 years. If, 
however, revenue from car traffic falls by 20%, the repayment period will be 
prolonged to 41 years.

Operations are managed by the parent company Sund & Baelt Holding A/S. A share 
of Sund & Baelt Holding's costs is reimbursed by the company.


The entire share capital is owned by Sund & Baelt Holding A/S, Copenhagen, which
is wholly owned by the Danish State.


The Board of Management comprises CEO Mogens Bundgaard-Nielsen, who also 
constitutes the Board of Management of Sund & Baelt Holding A/S and A/S Oresund.

The Board of Directors comprises Jens Kampmann (Chairman), Michael Pram 
Rasmussen (Deputy Chairman), Hans Skov Christensen, Ole Preben Kristensen, Georg
Poulsen and Inge Thygesen.

Copenhagen, August 24, 2001.

Jens Kampmann           Mogens Bundgaard-Nielsen 
Chairman                CEO