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Oresundsbro Konsort (37OK)


Wednesday 12 September, 2001

Oresundsbro Konsort

Interim Report

Oresundsbro Konsortiet
10 September 2001


Interim Report
For the period January 1 - June 30, 2001

Besides the activities in the parent company A/S Oresund, the consolidated
accounts comprise the activities of Oresundsbro Konsortiet, which is owned by
A/S Oresund and the Swedish Svensk-Danska Broforbindelsen SVEDAB AB. The two
companies each hold 50 per cent of Oresundsbro Konsortiet.

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


Revenue - road                                  105,718           0     157,280
Revenue - rail                                  137,093      40,400     174,500
Other revenue                                   143,242       2,141     290,095
Value of own work                                     0      63,973    -138,026
Total net turnover                              386,053     106,514     483,849
Operating costs                                 -86,162     -79,005    -220,007
Result before depreciation                      299,891      27,509     263,842
Depreciation                                   -117,093     -39,910    -152,911
Result from ordinary operations                 182,798     -12,401     110,931
Financial items                                -326,585    -244,257    -602,523
Result before tax                              -143,787    -256,658    -491,592


Fixed assets:         
Road and rail link, total                    16,429,925  16,818,274  16,569,723
Other tangible fixed assets                      47,993     271,296      49,476
Total tangible fixed assets                  16,477,918  17,089,570  16,619,199
Financial fixed assets                          447,281     462,834     430,605
Total fixed assets                           16,925,199  17,552,404  17,049,804
Current assets:           
Receivables                                     596,142     647,414     666,242
Liquid funds and securities                   1,182,286   1,845,324   2,873,023
Total current assets                          1,778,428   2,492,738   3,539,265
Total assets                                 18,703,627  20,045,142  20,589,069

Equity capital:
Share capital                                     5,000      5,000       5,000  
Result carried forward, primo                -1,257,824   -766,901    -766,901  
Result for the period                          -143,787   -256,658    -490,922
Total equity capital                         -1,396,611 -1,018,559  -1,252,823
Debenture loans and bank loans               19,282,443 19,759,091  20,984,234
Other debt                                      817,795  1,304,610     857,658

Total debt                                   20,100,238 21,063,701  21,841,892
Total liabilities                            18,703,627 20,045,142  20,589,069
Profit ratio (ordinary operations)                17.6%     -30.7%       33.4%
Rate of return (ordinary operations)               0.5%      -0.1%        0.5%
Return on facility (ordinary operations)           0.5%      -0.1%        0.7 %


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

Consolidated accounts
The consolidated accounts comprise the accounts for the parent company, A/S
Oresund, and the company's share of Oresundsbro Konsortiet which, as laid down
in the consortium agreement between A/S Oresund and Svensk-Danska
Broforbindelsen SVEDAB AB, is operated jointly by the two companies.

Oresundsbro Konsortiet is included in the consolidated accounts by proportional
consolidation of the consortium's items by 50 per cent, corresponding to A/S
Oresund's participation in the consortium. The consortium's debt is
guaranteed jointly and severally by the Swedish and Danish states.

The consolidated accounts are prepared by consolidation of items of a uniform

The accounts on which the consolidation is based are submitted in accordance
with the Group's accounting principles.

On consolidation, elimination is made for internal revenue and expenses, capital
contribution in Oresundsbro Konsortiet and internal accounts.

Profit and Loss Account

Net turnover
Net turnover includes revenue from users of the facilities, including tolls for
road traffic and fixed fees for the rail links.

With regard to A/S Oresund, the fees have been determined by the Danish Ministry
of Transport. With regard to Oresundsbro Konsortiet, fees for use of the rail
section were determined by the 1991 inter-government agreement between Denmark
and Sweden. Fees for use of the road section are set in accordance with the 
Consortium Agreement.
The completed contract method is used for the calculation of net turnover.

Depreciation of the fixed facilities 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 links and the rail link under Oresundsbro Konsortiet, the
facilities have been divided into sections with uniform lifetimes.  This
has been done in accordance with the following principles:

-    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 between 10 and 20 years.

A/S Oresund's 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 made.

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
Rights                                                    30 years

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

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 Great Belt A/S. The company is jointly and severally
liable with Sund & Baelt Holding A/S and Great Belt A/S 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 Oresund lay down specific
rules regarding tax loss carry-forward for A/S Oresund 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 facilities 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 A/S Oresund's       
road link and Oresundsbro Konsortiet's total facility will be capitalised and 
depreciated over the expected economic lifetime. Ongoing maintenance works will 
be expensed as incurred.

Participating interests
Participating interests in Oresundsbro Konsortiet are valued according to
the equity method.

Oresundsbro Konsortiet's debt is guaranteed jointly and severally by the
Danish and Swedish states. In addition, the company's commitments are
guaranteed jointly by A/S Oresund and SVEDAB AB.  As a result, provision
has been made in the company's accounts for the company's share of the
negative equity capital in Oresundsbro Konsortiet. The parent company's
result and equity capital are, therefore, identical with the group's
result and equity capital.

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.

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 & 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 method.

Derivatives used for hedging are treated in the same way as the items,
which 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.

If financial instruments are settled before the end of the maturity of the
bond loans, gains or losses are taken into the Profit and Loss Account
over the remaining maturity of the bond loan using the straight-line

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

Income, railway                                   41,200    40,400     80,800
Other income                                     140,000         0      2,855
Total net turnover                               181,200    40,400     83,655
Operating costs                                   -9,838   -13,738    -25,051
Result before depreciation                       171,362    26,662     58,604
Depreciation                                     -37,415   -39,063    -74,652
Result of ordinary operations                    133,947   -12,401    -16,048
Financial items                                 -175,961  -244,257   -420,337
Result before share of result for affiliated
company                                          -42,014  -256,658   -436,385
Result for affiliated company                   -101,774         0    -55,207
Result before tax                               -143,788  -256,658   -491,592

Fixed assets:         
Road and rail links                            6,802,154 6,869,387  6,863,860
Other tangible fixed assets                          579     1,186        370
Total tangible fixed assets                    6,802,733 6,870,573  6,864,230
Financial fixed assets                           153,805   177,442    153,805
Total fixed assets                             6,956,538 7,048,015  7,018,035
Current assets:         
Receivables                                        6,064   139,852     18,440
Liquid funds and securities                      251,287   774,159  1,004,333
Total current assets                             257,351   914,011  1,022,778
Total assets                                   7,213,889 7,962,026  8,040,813


Equity capital:
Share capital                                      5,000     5,000      5,000
Result carried forward, primo                 -1,257,823  -766,901   -766,901
Result for the period                           -143,788  -256,658   -490,922
Total equity capital                          -1,396,611-1,018,559 -1,252,823
Provisions                                       131,981         0     30,207
Debenture loans and bank loans                 8,386,516 8,840,353  9,083,499
Other debt                                        92,003   140,232    179,930
Total debt                                     8,478,519 8,980,585  9,263,429
Total Liabilities                              7,213,889 7,962,026  8,040,813

Profit ratio (ordinary operations)                -14.7%    -30.7%     -19.8%
Rate of return (ordinary operations)               -0.2%     -0.3%      -0.2%
Return on facility (ordinary operations)           -0.2%     -0.4%      -0.2%

The Interim Report is presented in accordance with the accounting policies
applied for the preparation of the annual accounts for 2000. See the notes
to the main figures for the Group.


The Group
The result for the period shows a loss of DKK 144 million compared to a budgeted
loss of approx. DKK 480 million.  The positive net difference is attributable to
lower earnings from the road link across Oresund, lower financing expenses than 
expected and a non-budgeted profit from the sale of land.

The company expects that the result for the whole year will be a loss in the 
region of DKK 610 million, which is an improvement of approx.  DKK 280 million 
compared to the previously forecast loss of DKK 890 million. The improvement is 
solely attributable to A/S Oresund and comprises the non-budgeted gains from the
sale of land of DKK 140 million coupled with an improved financing result. The 
budgeted result for the year for Oresundsbro Konsortiet is expected to be 
maintained as the forecast lower earnings from the road link are expected to be 
counterbalanced by correspondingly low financing expenses. However, considerable
uncertainty remains with regard to the development of exchange rates and,
to a lesser extent, earnings from the road link.

As at end June, equity capital was negative, i.e. DKK 1.4 billion. Equity
capital movements for the period solely relate to the result for the 1st half
of 2001.

Repayment of the investment in the Oresund fixed link's landworks is generated 
as follows: payment from the, Danish National Railways Agency for use of the
railway and dividend payments from Oresundsbro Konsortiet which is 50 per cent 
owned by A/S Oresund.

In 2001 the fee from the Danish National Railways Agency, as determined by
the Danish Minister of Transport, totals DKK 82.4 million.

Dividend from Oresundsbro Konsortiet is regulated in accordance, with the
Consortium Agreement between A/S Oresund and SVEDAB AB, the owner of the
remaining 50% of Oresundsbro Konsortiet. In general, the regulations set out
in the agreement follow the guidelines for limited companies' dividends paid
in Denmark and Sweden. With regard to the current pre-conditions for road
traffic, financing expenses, etc., which are unchanged compared to the
pre-conditions in the autumn of 2000, it is assessed that a decision on dividend
allocation will be made around 2018.

Oresundsbro Konsortiet's economy is primarily dependent on traffic revenue from 
the fixed link together with the financing costs for which there continues to be
considerable uncertainty. It should be noted that Oresundsbro Konsortiet will 
carry out a review of the pre-conditions governing the long-term economy during 
the autumn of 2001.

The pre-conditions regarding the project's profitability remain unchanged.
As stated in the Annual Report for 2000, it is calculated that the repayment 
period for A/S Oresund will amount to 80 years. As a result of the long 
repayment period the prognosis is highly sensitive to even small changes in the 
basic pre-conditions.

In conjunction with the company's owner and based on the prospects for the
parent company's economy, a report is being prepared which, through a
careful evaluation of the pre-conditions relating to the assessment of the
economy - and thus the repayment period for the company's debt - will
determine if any special initiatives are required.

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 state.

A/S Oresund
Revenue from the rail link corresponds to the fees determined by the Danish 
Minister of Transport.

The company received a non-budgeted income of DKK 140 million in
connection with the sale of an area of land adjacent to Kastrup Airport. The
area is part of the artificial peninsula, which was constructed in connection 
with the fixed link's abutment.

Financing expenses total DKK 176 million, which is approx. DKK 100 million
lower than budgeted. Thus for the half year, financing interest totalled
4.61% per annum including exchange rate adjustments. The difference can
be attributed to exchange rate adjustments where a gain of 0.25% per annum has 
been realised. The budget contains a risk buffer to counter against 
uncertainties concerning exchange rate developments.

Loans totalling DKK 673 million were taken up during the period.

With regard to the result for the period, the amount of equity capital and
the expectations for the result for 2001, reference should be made to the
paragraph above.

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

Oresundsbro Konsortiet
Despite intense competition from ferry services between Elsinore and 
Halsingborg, the Oresund Bridge, after its first operating year, achieved a 
market share of more than 50 per cent of the car traffic across Oresund.

Car traffic on the Oresund Bridge during the past six months has run           
approximately 20% below expectations. Despite an upsurge in traffic following
the opening of the Oresund Bridge, regional traffic across Oresund remains
too low. This is mainly due to the fact that the downturn in consumption in
Denmark and Sweden has been more pronounced than expected, resulting in smaller 
traffic volume. The fact that the integration of the Oresund Region is 
developing more slowly than predicted has also played a role.

The overall cross-Oresund market via the Oresund Bridge and the ferry
services, has expanded by 61% since the inauguration of the bridge. Between
July 1, 2000 and July 1 2001, the Oresund Bridge carried approximately 8
million people on the motorway and approximately 5 million people on the

More than 50% of all travellers across Oresund use the Oresund Bridge, with
two thirds travelling on the motorway and one third on the railway.

In the opinion of Oresundsbro Konsortiet the regional market on both sides
of Oresund is not functioning properly because of the differing national
legislations in the two countries. This, for instance, applies to housing
and work as well as to the formation of companies and subsidiaries. The
retail sector, suppliers of services and the entertainment industry also
lack 'normal' communication and marketing strategies for the near market
around Oresund. A normalisation of this is an important pre-requsite for
the region's further development and thus for the Oresund Bridge's prices,
products and long-term revenue.

To meet the market's need for more flexible products, Oresundsbro             
Konsortiet revised a number of existing prices with effect from February 1,
2001. At the same time, a range of new products was launched.

Revenue from road traffic totalled DKK 211.4 million which is 101.5
million lower than budgeted. This is primarily due to weaker than expected
traffic growth. A total of 1,267,155 vehicles crossed the fixed link
during the first half year against the expected 1,572,000 vehicles.

Financing costs totalled DKK 301.2 million against the budgeted DKK 603.0
million. The improvement is primarily due to foreign exchange gains that
amount to DKK 104.0 million out of the total gains for the period of DKK
131.5 million.  For reasons of prudence, the budget contains a risk
buffer of DKK 144.9 million to counter potential unfavourable exchange rate
development, including uncertainties concerning the Euro. Excluding
foreign exchange adjustments, financing costs amounted to DKK 405.2 million, 
which is DKK 52.9 below the budget.

Other items in the profit and loss account including rail revenue and
regular operating costs, were largely in line with the budget.

The operating result for the first six months of 2001 was a loss of DKK
203.5 million against a budgeted loss of DKK 393.7 million.

At the beginning of the year, Oresundsbro Konsortiet's expectation for the
year's result was a loss of DKK 664 million. Currently, the budgeted result for 
the year is expected to be maintained although the revenue for road traffic 
(based on the experiences up to and including July) is expected to be up to    
DKK 250 million lower than budgeted. Financing costs are expected to be 
correspondingly lower while other items are expected to be in line with the 

As at end June equity capital was negative, i.e. DKK 264 million. Equity
capital movements for the period solely relate to the result for the 1st half 
year 2001.

The consortiums debt will be repaid from the revenue from road and rail
traffic. As described in greater detail in the Annual Report for 2000,          
repayment will be executed within a time frame of approximately 30 years
under the given pre-conditions. The calculation comprises payment of
dividend to the parent companies. As expected, Oresundsbro Konsortiet is
not expected to show an accounting profit for several years.

The repayment period is particularly sensitive to changes to the revenue
from road traffic and to financing costs. As for financing costs, it is
estimated that a real rate of return of 4% remains realistic. In the light
of the experience from the first operating year and the autumn of 2001,
the consortium will review the long-term traffic forecast. The revised
forecast will form the basis for a recalculation of the repayment period
for Oresundsbro Konsortiet's debt, including any dividend payments to the
parent companies.

Oresundsbro Konsortiet's debt is guaranteed jointly and severally by the
Danish and Swedish states. In addition, A/S Oresund and SVEDAB AB guarantee
the company's commitments jointly and severally.


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 Great Belt 

The Board of Directors comprises Jens Kampmann (Chairman), Michael
Pram Rasmussen (Deputy Chairman), Hans Skov Christensen, 0le Preben
Kristensen, Georg Poulsen and Inge Thygesen.

Copenhagen 24 August 2001

Jens Kampmann        Mogens Bundgaard-Nielsen
Chairman             CEO


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