Segment

Net debt decreased by USD 205 million from previous year

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Segment

Landsvirkjun’s total assets amounted to USD 4,285 million at year-end 2015. Cash and cash equivalents at year-end 2015 amounted to USD 142 million. The Company has access to revolving credit facilities where the undrawn amount is USD 361 million. Unrestricted cash and undrawn credit facilities therefore amount to USD 503 million.

Interest bearing liabilities amounted to USD 2,128 million at year-end 2015 and have decreased by USD 270 million from year- end 2014. Landsvirkjun’s net debt amounted to USD 1,985 million at year-end and have decreased by USD 205 million from year-end 2014 taking cash and cash equivalents into account.

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Segment

Cash flow from operating activities net investing activities was positive by USD 171 million and is one of the reasons net debt is decreasing. Landsvirkjun’s focus in the last years has been on decreasing debt and net debt has decreased by USD 689 million from year-end 2011. If we assess a longer period then, net debt has decreased by USD 838 million from year-end 2009.

The Company’s equity increased during the year and was USD 1,917 million at year-end. The equity ratio is the highest in Company history: 44.7% andincreased by 4.8% from year-end 2014.

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Key figures

Landsvirkjun´s leverage continues to be relatively high, but the Company has for the last few years consistently worked on reducing debt and improving key ratios which affect the Company’s credit rating.

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Segment

The Group's leverage measured against operating profit before depreciation and amortisation (net debt / EBITDA) decreased from 6.6x at year-end 2014 to 6.2x at year-end 2015. The ratio of funds from operations (FFO) to net debt went from 11.8% at year-end 2014 to 12.1% at year-end 2015.

Interest coverage (EBITDA / net interest expense) increased to 4.6x compared to 3.8x at year-end 2014. The ratio of funds from operations (FFO) to interest expense increased from 2.8x at year-end 2014 to 3.3x at year-end 2015.

As return on equity is calculated on results, changes of embedded derivatives and unrealised foreign exchange differences can have a considerable effect on the results. Return on equity was positive by 4.7% in the year 2014 and positive by 4.9% in the year 2015.

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Appendix

Here you can download Landsvirkjun’s financial statements for the year 2015. This includes Landsvirkjun’s entire Financial Statement in Acrobat (pdf) and key figures in Excel (xls).