1. COLOR GROUP ANNUAL REPORT 2007 COLOR GROUP ANNUAL REPORT 2007 // INTRODUCTION
Annual Report 2007

2. COLOR GROUP ANNUAL REPORT 2007 // INTRODUCTION
Principal figures and Key figures
COLOR GROUP ASA
ACCOUNTING STANDARD IFRS NAS
CONSOLIDATED 2007 2006 2005 2004 2003 2007
DEVELOPMENT OF TRAFFIC
Passengers 4 294 691 4 279 868 4 433 072 4 211 284 4 241 870
Cars 879 458 828 284 809 188 823 029 818 467
Freight units (12m-equivalents) 176 634 192 412 177 195 158 357 142 223
PROFIT/LOSS (in NOK mill.) 1) (in EUR mill.)
Revenues 4 762 4 585 4 682 3 944 3 816 598
Operating expenses -4 003 -3 726 -3 740 -3 151 -2 963 -503
EBITDA 2) 759 859 942 793 853 95
Depreciation -399 -397 -495 -367 -367 -50
Charter, leasing expenses -65 -66 -77 -74 -37 -8
Operating income before write-down/loss/gain 296 396 369 352 449 37
Gain and loss on sales, write-downs 1 8
EBIT 296 396 378 353 457 37
Net financial items -124 -31 -122 -89 -107 -16
Pre-tax income 171 365 256 263 349 21
Taxes -50 -104 -87 -94 -108 -6
Net income 121 261 169 169 241 15
BALANCE SHEET (in NOK mill.)
Current assets 1 879 1 534 615 769 549 236
Fixed assets 6 741 5 073 5 699 5 521 3 374 847
Total assets 8 620 6 608 6 314 6 290 3 923 1 083
Current liabilities 1 008 842 566 595 407 127
Long-term debt 4 863 2 928 3 216 3 270 1 361 611
Deferred taxes 574 599 557 512 432 72
Shareholders’ equity 2 005 2 074 1 973 1 912 1 720 252
Total liabilities and shareholders’ equity 8 620 6 608 6 314 6 290 3 923 1 083
LIQUIDITY (in NOK mill.) / SOLIDITY (%)
Cash and cash equivalents as at 31 Dec. 3) 1 307 1 463 1 508 1 465 631 164
Cash flow from operations 4) 694 793 865 714 816 87
Equity ratio % 23 31 31 31 44 // INTRODUCTION // HIGHLIGHTS // SOCIETY AND // DIRECTORS’ REPORT
Net interest-bearing debt 4 955 2 950 3 082 3 017 1 130 622 THE ENVIRONMENT AND ACCOUNTS
EMPLOYEES / SUNDRY EXPENSES
Number of employees 5) 3 967 3 821 3 827 3 268 3 065
Costs of wages 1 409 1 296 1 303 1 102 1 053 177
Port fees 152 143 138 121 114 19
Definitions:
1) Translated into EURO, exchange rate as at 31 Dec. 07.
2) Operating profit/loss before ordinary depreciation and charter expenses
3) Including non-utilised credit facilities
4) EBITDA less charter expenses
5) Including part-time employees in 2007, 2006 and 2005.

3. ’’
The introduction of “Color Magic” and “Color Fantasy”
marks a new era in quality cruises based on a regular
sailing schedule. The launching of the SuperSpeed concept
has revolutionised a 150-year old shipping tradition and
brought Norway closer to the European continent.
Industrial renewal on this scale requires innovation, and
’’
the will and ability to implement the plan at all levels in
the organisation.
Trond Kleivdal, Group President

4. COLOR GROUP ANNUAL REPORT 2007 // INTRODUCTION
Time to deliver the goods of quality cruises on the longer
voyages”, states Kleivdal.
motorways at sea,” says Trond
Kleivdal.
Color Line’s engagement is also
reason, we wish to establish good
platforms for further develop-
ment, competence enhancement
FUTURE-ORIENTED important for the shore-based and career plans.” Kleivdal empha-
During the course of 2008, Color Line will be in the final stages of the most ambitious
ENGAGEMENT tourist industry, bringing in large sizes that Color Line is dependent
investment programme in the history of the company. A new foundation has been laid, Norwegian industry is dependent volumes of tourists who arrive by on a competent and motivated
based on innovation and the ability to implement such a wide-reaching plan. Color Line is on efficient transport routes to sea with their cars onboard. staff to enable the company to
now ready to fulfil its ambitious vision: To be the best shipping company in Europe in the its markets. Both Norway and the “Our ships represent a consider- fulfil its ambitious vision.
cruise and transportation sectors, having a base in Norway. EU have stated clearly that the able growth potential. With the in- “We are to be the best in
increasing transport requirements troduction of SuperSpeed, popular Europe in the fields of cruise and
D
During the period will also be renewed through the transport”, says Trond Kleivdal, in Europe must be solved by trans- summer and winter destinations sea transport, and this is why we
2004 to 2008, introduction of the new transpor- Color Line’s Group President. ferring freight transport from the particularly in Norway and Den- must also have the most motivat-
Color Line has in- tation concept, SuperSpeed 1 and These strategic decisions were roads to sea and rail transport. mark will now be regarded as close ed employees.”
vested almost NOK SuperSpeed 2. followed up by firm action. New “This development is particularly to hand for large groups of the Kleivdal underlines that the
7.5 billion on four ships were contracted and the important for Norway as from a population,” points out Kleivdal. measures taken in 2007 and in
custom-built ships, AN INDUSTRIAL VOYAGE older tonnage was sold at prices geographic aspect, we are a the first six months of 2008 have
Trond Kleivdal, Group President
and on modern ports and termi- These new ships and port facili- that exceeded book values. In peninsular in relation to the rest WELL-SHOD FOR FURTHER created a solid foundation that will
nals in Kristiansand, Larvik, Oslo, ties mark the start of a new era for parallel with the development of of Europe. Color Line has already GROWTH secure lasting values for share-
Hirtshals and Kiel. The world’s two Color Line. tonnage, Color Line implemented registered a considerable increase Concurrently with the introduc- holders as well as fulfilling the
largest cruise ships with car decks, “Our industry is facing major essential organisational changes in freight. Based on our modern tion of new tonnage and a new expectations of employees, pas-
Color Magic and Color Fantasy, challenges both nationally and in 2007. ports and ships, industrial enter- organisation, Color Line will be sengers and society as a whole.
revitalised the cruise traffic be- internationally. Following compre- “There was a requirement for prises now have access to an focusing on the company’s human “We are now in a good position
tween Oslo and Kiel in the autumn hensive analyses, we decided some uniting energies. We now have a effective, intelligent and reliable resources. and we are well shod for further
of 2007. years ago to meet these challenges keenly focused and transparent transport system which has “We must be certain that we are growth. Our investments will start
In the spring of 2008, the trans- with bold initiatives. We decided to organisation that is well suited for efficiently reduced the distance professional in our operations and to give positive results towards the
port stages between Kristiansand, renew our tonnage and to special- efficient transport on the short between Norway and the conti- in the manner in which we take end of 2008. Now is the time to
Larvik and Hirtshals in Denmark ise in quality cruises and efficient services and for the organisation nent. We have established efficient care of our colleagues. For this deliver the goods!” ■
4 5

5. COLOR GROUP ANNUAL REPORT 2007 // INTRODUCTION
Reorganisation The business area Transport is
responsible for the Kristiansand –
Hirtshals service, the Larvik – Hirts-
operative management of Color
Line Transport is based in Sande-
fjord.
Boge Gulbrandsen, Strategy, Market
and Business Development, Helge
Otto Mathisen, Communications
hals service, the Sandefjord – Laila Valdal is Group Director and Public Relations, Mette Krab-
In 2007, Color Group improved its efficiency through the reorganisation of the subsidiary
Strømstad service in addition to for the Transport Division. The berød, Financial and Lasse Winge
company Color Line AS. The reason behind this process was to enable the company to Color Line Denmark, Color Line other group directors are Svein Kristensen, Human Resources. ■
operate successfully in an increasingly competitive market and at the same time be in a Cargo and Color Hotel Skagen. The Sørensen, Color Line Marine AS,
position to offer quality cruises and efficient transport.
I
In addition, the reorganisation areas, the Cruise Division which is the parent company Color Group
provides openings for invest- handled by Color Line Cruises AS ASA and the owner company
Boge Gulbrandsen Mette Krabberød Trond Kleivdal Svein Sørensen Laila Valdal Lasse Winge Knut Hals Helge Otto Mathisen
En bildetekst gjør seg altid godt,
ments in new projects, report- and subsidiaries, and the Trans- O.N. Sunde AS. Group Director Strategy, Group Director Group President Group Director Group Director Kristensen Group Director Group Director
og mener vi må ha det på slike
Market and Business Financial Color Line Color Line Marine Color Line Transport Group Director Color Line Cruises Communications and
ing lines are improved and port Division handled by Color Line Development Human Resources bilder. Public Relations
distribution of responsibility Transport AS and subsidiaries. All EXECUTIVE MANAGEMENT
is clearly defined. To sum up, employees on board the ships are Group management of Color Line
the new organisation has enabled employed by Color Line Crew AS. AS comprises seven units, head-
Color Line to consolidate its vision Color Group ASA holds all the ed by Trond Kleivdal, the Group
to be the best shipping company in shares in the sub-group Color Line President.
Europe in the fields of cruise and AS which is the parent company of The business area Cruise is re-
transport. the newly established companies sponsible for the Oslo – Kiel service
Color Line Cruises AS, Color Line and for Color Line Germany. The
CRUISE AND TRANSPORT Transport AS and Color Line Crew operative management for Color
As a result of the reorganisation, AS. Line Cruises is located in Oslo. The
the subsidiary company Color Line All financing and appurtenant Cruise Division is headed by Knut
was split into two main business financial activities take place in Hals, Group Director.
6 7

6. COLOR GROUP ANNUAL REPORT 2007 // INTRODUCTION
O.N. Sunde AS Ships in operation
O.N. Sunde AS is an investment company with Color Line is Norway’s largest and one of Europe’s leading cruise and ferry companies. The
ownership interests in businesses engaged in ship-
company has a workforce of approx. 3 500 in four countries and with effect from March 2008,
ping, tourism, clothing, sports and leisure, property,
operates seven ships on five international services between seven ports in Norway, Germany,
chemical industry and financial investments. These
companies employ more than 6 000 persons. Denmark and Sweden.
O.N. Sunde has a 100 percent stake in Color Group
ASA which owns and operates Color Line AS. Most
of the group’s business takes place in Color Line AS,
Sunpor Kunststoff GmbH and Gresvig Holding AS.
January February March April May June July August September October November December THE FLEET 2008
COLOR GROUP ASA
M/S COLOR FANTASY
Color Group ASA is engaged in the transport of pas- Year built: 2004, Draft: 6.8 metres
Aker Yards, Turku Finland Class: Det Norske Veritas
sengers and freight, hotel operation, restaurants, Oslo-Kiel Home port: Oslo Max. capacity: 2 700
Tonnage: 75 027 GRT Passenger cars: 750
trade, entertainment and tour production. The M/S COLOR FANTASY Length: 224 metres Trailers: lane metres: 1 270
Beam: 35 metres
company has its head office in Oslo and is an active
holding company for the wholly-owned subsidiary M/S COLOR MAGIC
Year built: 2007, Draft: 6.8 metres
company Color Line AS. Aker Yards, Turku Finland Class: Det Norske Veritas
Home port: Oslo Max. capacity: 2 700
Oslo-Kiel Oslo-Kiel
Tonnage: 75 100 GRT Passenger cars: 550
M/S KRONPRINS HARALD M/S COLOR MAGIC Length: 224 metres Trailers: lane metres: 1 270
Beam: 35 metres
SUNPOR KUNSTSTOFF GMBH
This company is based in Austria, manufacturing M/S PRINSESSE RAGNHILD
expanding polystyrene (EPS). This material is used Year built: 1981/1982
HDW Kiel/Astilleros,
Beam: 26.6 metres
Draft: 6.5 metres
Cadiz, Spain Class: Det Norske Veritas
for insulation in buildings and as shock-absorbing Oslo-Frederikshavn
Home port: Oslo Max. capacity: 1 515
M/S COLOR FESTIVAL Tonnage: 35 855 GRT Passenger cars: 600
material for use in packaging and bicycle helmets. Length: 202.25 metres Trailers: lane metres: 900
M/S SUPERSPEED 1
GRESVIG HOLDING AS Built: Aker Yards, Rauma, Draft: 6.5 metres
Finland Class: Det Norske Veritas
This group comprises the business areas sports and Kristiansand-Hirtshals Home port: Kristiansand Max. capacity: 1 929
Tonnage: 33 500 GRT Passenger cars: 764
textiles and is one of the leading players in Norway M/S CHRISTIAN IV Length: 211.3 metres Trailers: lane metres: 2 036
Beam: 26 metres
on the market for sports and leisure equipment
operating the chains G-Sport, Super G, Sportshuset
and Intersport. Voice Norge AS is also part of the
Kristiansand-Hirtshals
Gresvig Holding AS group. Voice Norge is mainly F/F SILVIA ANA
engaged in the distribution and marketing of
private brands and other branded goods for which M/S SUPERSPEED 2
the company has established exclusive distribution Year built Aker Yards,
Rauma, Finland
Draft: 6.5 metres
Class: Det Norske Veritas
in Norway through the four chain concepts VIC, Larvik-Hirtshals
Home port: Kristiansand
Tonnage: 33 500 BRT
Max. capacity: 1 929
Passenger cars: 764
M/S PETER WESSEL
Match, Voice of Europe and Boys of Europe. ■ Length: 211.3 metres
Beam: 26 metres
Trailers: lane metres: 2 036
M/S COLOR VIKING
Group structure: Year built 1985, Draft: 5.64 metres
Nakskov, Denmark Class: Det Norske Veritas
Home port: Sandefjord Max. capacity: 1 720
Color Group ASA Sandefjord-Strömstad
Tonnage: 19 736 BRT Passenger cars: 350
Tourism/Transport M/S COLOR VIKING Length: 137 metres Trailers: lane metres: 490
Beam: 24 metres
Gresvig Holding AS
Sport/Leisure M/S BOHUS
Year built 1971, Draft: 5.4 metres
Voice Norge AS Aalborg, Denmark Class: Det Norske Veritas
Clothing distribution/Fashion Home port: Sandefjord Max. capacity: 1 165
Sandefjord-Strömstad
Tonnage: 9 149 BRT Passenger cars: 230
M/S BOHUS Length: 123.4 metres Trailers: lane metres: 462
Beam: 19.2 metres
O.N. Sunde AS Sunpor Kunststoff GmbH
Chemical industry
Alcam AS
Shipowning
Bergen/Stavanger-Hirtshals
M/S PRINSESSE RAGNHILD
ONS Invest AS
O.N. Sunde Eiendom AS
8 9

7. COLOR GROUP ANNUAL REPORT 2007 // HIGHLIGHTS
Highlights
2007
10 11

8. COLOR GROUP ANNUAL REPORT 2007 // HIGHLIGHTS
A Magical start for Color Magic have been specially designed for
short cruises and adapted to tack-
le the logistic challenges of turning
from the engine room and car deck
to cabins, suites, restaurants, shops,
spa and a broad range of entertain-
tage. The fact that colleagues on
board and on shore speak the same
language contributes towards ef-
The atmosphere in Kiel on Saturday, 15 September 2007 was charged with excitement around a ship in port and handling ment and leisure activities. ficient operation, but is also con-
several thousand passengers and “Color Line’s ships have always nected with a feeling of ownership.
when an armada of leisure craft escorted M/S Color Magic into port. More than 150 000
more than 500 vehicles in the been well-run, but when you start The crew feel a sense of ownership
spectators viewed the naming ceremony performed by the ship’s godmother Veronica shortest possible time. operating a completely new ship, to the ship and the company and
Ferres, either in the port itself or via big screens placed at different locations in the city. “Cooperating with efficient land everyone is on their toes. Magic want to show that they are the best
organisations, we can if necessary and Fantasy can be compared in the world in the field of short
J
Just two days after member knew exactly what they of completion, a number of officers turn the ship around in Oslo or Kiel with the very best cruise ships in cruises. Even the big international
the celebrations, the had to do”, says Erling B. Hansen, and crew from the sister ship were in just two and a half hours. This is the world. This creates anticipa- cruise companies have started to
ship left on its maiden Captain of Color Magic. selected to crew the new ship. impressively quick when you take tion and all crew members exert show interest in our activities to
voyage from Oslo to “When you have been on board into account that the new ships themselves to do their very best”, see how we manage”, says Captain Erling B. Hansen,
Captain, Color Magic
Kiel with both guests A HIGH LEVEL a ship for a time, you will always are two to three times larger than says Hansen. Erling B. Hansen. ■
and a well-prepared When Color Line signed the con- find details that can be improved the previous vessels and can take
crew looking forward to a unique tract for the building of Color in some way, particularly with re- almost twice as many passengers”, NORWEGIAN FLAG AND CREW
experience. Magic in May 2005, planning work gard to efficient operation”, says explains the Captain. As the ship’s master, Captain
“Running a cruise ship can be started up immediately, aimed at Hansen, who was previously Cap- Hansen frequently receives
compared with a giant jigsaw putting the ship into operation tain on board Color Fantasy and AMONG THE WORLD’S BEST positive feedback from Nor-
puzzle where all the pieces must quickly, maintaining the same high several other Color Line ships. As Color Magic and Color Fantasy are wegian and foreign guests
find their right place before every- service level as on the sister ship, a result of these adaptations, Color the world’s largest cruise ships with regard to the ship and
thing functions well. This has been Color Fantasy. Magic is equipped with a larger equipped with a car deck. From bow its crew who are mainly
the case on board this ship right During the building period, the logistics centre than on its sister to stern these ships are actually Norwegian or Scandina-
from the start. It is all a question Aker Yards’ shipyard in Rauma, Fin- ship and one of the decks is used twice the length of the Royal Palace vian.
of thorough planning and a real- land, was visited on many occasions for additional passenger cabins. in Oslo and from keel to the high- “To be able to operate a
ly competent crew. When we left in order to do everything possible to est point onboard, they are almost ship with a Norwegian crew and
port with a passenger complement make the ship even more efficient ADAPTED FOR SHORT CRUISES as high as the Oslo City Hall. The 15 to sail under the Norwegian flag is
for the very first time, every crew than its sister ship. Well in advance Color Fantasy and Color Magic decks onboard contain everything a considerable competitive advan-
12 13

9. COLOR GROUP ANNUAL REPORT 2007 // HIGHLIGHTS
Investing in the future
With the introduction of the SuperSpeed ships, Color Line has renewed ferry transport ration between Kristiansand and SuperSpeed’s combination of ef- grading work of the ports in both
across the Skagerrak radically. SuperSpeed is a revolutionary transport concept and a Hirtshals on 13 March. SuperSpeed ficient goods transport, comfort Kristiansand and Hirtshals. In our
2 will commence ferry operations and modern design”, emphasises view, these investments are abso-
necessary investment for the future.
between Larvik and Hirtshals in Laila Valdal. lutely necessary in order to secure
June. She underlines that SuperSpeed Color Line’s position on the market. Facts SuperSpeed
S
“SuperSpeed is the ever, the requirement for fast and “Transferring freight from the ● Length: 211 metres
represents a large-scale long term SuperSpeed is the cornerstone in
● Kristiansand-Hirtshals: 3h 15min.
ship of the future. efficient transport between Nor- roads to seaborne and rail trans- DYNAMIC AND ELEGANT investment for Color Line both at our transport sector and in com- ● Larvik-Hirtshals: 3h 45min
It carries a large way and the continent has shown port will be an efficient contri- The SuperSpeed ships are of mo- sea and ashore. bination with the ferries in Sande- ● Passenger cars: 764
● Max capacity: 1929
number of passen- a steady increase. The introduction bution towards solving Europe’s dern design and have completely “We are building a new terminal fjord will ensure modern and ef- ● Hazardous cargo allowed
gers, cars and cargo of the SuperSpeed ferries shows transport challenges”, says Laila new technological solutions. Com- in Larvik and have invested in up- ficient operation for the future”.■ ● Trucker cabins: 54
● Effectly roll-on and roll-off
quickly and efficient- that Color Line takes guests’ re- Valdal. fort, capacity and efficiency were
Laila Valdal, Group Director
ly to the continent in an extremely quirements seriously. SuperSpeed She points out that SuperSpeed important themes when these ships For efficient handling of the increased traffic, Color Line has invested in a
Color Line Transport
comfortable manner”, says Laila is an innovative transport concept also represents an appreciable were planned. In addition, high im- completely new terminal in Larvik. The ports of Hirtshals and Kristiansand
have been upgraded, including an extension of the vehicle parking area.
Valdal, Group Director, responsible which is efficient, fast, smart and growth potential for the land- portance is attached to efficiency
for Color Line Transport AS and comfortable”, says Valdal proudly. based tourist industry in Norway in the ports of Kristiansand, Larvik
godmother for SuperSpeed 1. and Denmark. and Hirtshals. These ships have a
She goes on to explain that the IMPORTANT FOR “For example, winter destina- fast turnaround time in port.
preferences of the travelling pub- TRANSPORT AND THE tions in Norway and the popular “SuperSpeed was created
lic have changed in recent years, TOURIST INDUSTRY tourist attractions on Jutland will through close cooperation be-
particularly on the routes between The new SuperSpeed ships have now be close at hand for Norwe- tween Color Line, the architect
Larvik/Kristiansand and Hirtshals. trebled Color Line’s freight capa- gian and Danish tourists”, says and Aker Yards. These ships rep-
“Previously, we had a mixture of city and the company expects a Valdal. resent a high level of custom
transport and cruise guests. How- major increase in freight volumes. SuperSpeed 1 was put into ope- building. No other ships can match
14 15

10. COLOR GROUP ANNUAL REPORT 2007 // HIGHLIGHTS
Continental pleasures
With the introduction of SuperSpeed, Europe is just a short drive away. For DHL Freight CONTINUITY AND driving times and rest periods in “These ships are constructed for
Norway the result is a distinct advantage – the SuperSpeed concept means that transport PREDICTABILITY conjunction with the departures”, all year round service and we must
Eirik Borge explains that the com- says Borge. He emphasises that assume they will take Skagerrak
times to and from the continent are shortened appreciably, says CEO Eirik Borge.
pany was faced with a major chal- DHL is dependant on the regular winters in their stride”, says Eirik
lenge in the spring of 2007 when service of the SuperSpeed ferries, Borge with a smile. ■
F
“For DHL Freight that we know there will always conducted from its base in Lar- Color Line withdrew Color Travel- even in inclement weather.
Norway it is essential be space for our vehicles, even in vik, due to the concentration of ler from the service between
that there is a well the busy seasons. Frequent depar- industry in the region. Eirik Borge Larvik and Frederikshavn.
functioning seaborne tures will probably also contribute believes that SuperSpeed will “We were left with one daily de-
’’
transport system. towards better balance in the dis- provide the region with a trading parture by Peter Wessel which was
SuperSpeed gives tribution of freight, which will have advantage. also laid up for periods. At the same
us greater flexibility and stabili- a positive impact on our working “We have already received in- time, due to the work of extending
SuperSpeed – more than a ship. The SuperSpeed ferries
ty”, says Eirik Borge, CEO of DHL schedule. Moreover, the new ter- quiries from clients on the conti- the ports, Color Line was obliged will have two daily departures in each direction. Each
Freight Norway. minals in Larvik, Kristiansand and nent who now see the opportunity to switch between Frederiks- departure is equivalent to the capacity of 14 Boeing 737
He mentions several factors Hirtshals will contribute towards of becoming established on new havn and Hirtshals. We handled aircraft. On board the ferries there is a good selection of
which contribute towards simpli- even more rational and efficient markets”. this by increasing road transport shops, restaurants, and lounges – everything to make a
’’
fying DHL’s everyday routines. freight transport on our part”, says Borge is convinced that Super- and we are now looking forward to voyage across the Skagerrak a pleasant experience.
“SuperSpeed gives us four daily Borge. Speed will provide positive spin-off the establishment of SuperSpeed Rolf Kjær, Director of newbuildings
departures and shorter transport effects for business, industry and in Larvik. Two daily departures will
times between Norway and Den- AN IMPORTANT ADVANTAGE tourism in the region. give us a high degree of continu-
mark. This provides a considerable The largest part of DHL Freight “SuperSpeed has brought us even ity and predictability and will make
increase in capacity and means Norway’s continental business is closer to the continent”. it easier for drivers to plan their
16 17

11. COLOR GROUP ANNUAL REPORT 2007 // HIGHLIGHTS
There will still be
gaming machines
onboard ships
In October 2007 the Ministry of Culture
Cultivating Concepts and Ecclesiastica issued new regula-
tions governing gaming machines on-
board ships. The new regulations re-
quire that ships that have gaming
From December 2004 until May 2008, Color Line will have invested NOK 7.5 billion in
machines onboard must operate regular
new ships, ports and concepts. This initiative implies specialization in efficient transport
all-year round services between Norwe-
systems on the short routes and high quality cruise entertainment on the long routes.
gian and foreign ports. The ships must
also have freight capacity for the large
I
In order to be in a position gal side, the group structure was – Hirtshals, Larvik – Hirtshals and cost air travel, other cruise com- opportunities that lie ahead, Color
scale transport of goods and vehicles.
to implement the renewal changed by means of a de-merger Sandefjord – Strømstad services. panies, ferry companies and other Line has invested in new ships and
of the company and to ope- of Color Line AS which, following Cruise and transport take care of operators in the fields of holiday concepts. New trends in holiday, The new regulations represent a tightening up
rate two concepts as profes- the restructuring process became the operative management in Oslo and leisure. leisure and freight transport have of the rules and lay down specific requirements
sionally and cost efficiently the parent company of Color Line and Sandefjord respectively. At the same time the company formed a basis for these invest- for ships offering gaming machines. The aim
as possible, a reorganisation Cruises AS, Color Line Transport must relate to changed framework ments. The new ships have a much of the new act is to secure satisfactory public
programme of Color Group was AS and Color Line Crew AS. All sea- A CHANGE IN THE conditions outside the control of higher capacity and a higher level control in order to prevent social problems, at
implemented during the first six going personnel in the group are COMPETITION PATTERN the group such as the continuing of comfort than the ships they have the same time avoiding foreign registration of
months of 2007. employed in the latter company. The background for the decision high prices for oil and energy and replaced. In order to utilize this ca- Norwegian ships. The new regulations are also
In practice, the reorganisa- to restructure the group is the fact new tax legislation introduced in pacity in a profitable manner, the intended to prevent ship traffic, established
TWO BUSINESS DIVISIONS tion means that the business that competition and customers order to meet global climate chal- customer base must be extended, mainly for gambling purposes.
In the reorganisation process, the area cruise is responsible for the requirements and anticipations lenges. new technology must be applied The Inspectorate of Lotteries and Founda-
subsidiary company Color Line Oslo-Kiel cruise service while the have changed dramatically in just and operations optimized. ■ tions has prepared draft regulations covering
was divided into two divisions: business segment transport is a few years. In the tourist market, A NEW ERA the type of gaming that would be allowed on
transport and cruise. On the le- responsible for the Kristiansand Color Line is competing with low In order to make the most of the board ships- The draft has been distributed
for consultation by the Ministry of Culture and
Ecclesiastica. The new regulations may come
into force from 1. July 2008.
18 19

12. COLOR GROUP ANNUAL REPORT 2007 // HIGHLIGHTS
A short journey to the Five million guest days “A motorway” to Lom
ski slopes for 25 million
In 2007, Color Line brought in about At the food and tourist fair Grüne Woche in Berlin, the mayor of Lom, Simen
Danes and Germans 5 million guest days to the land-based Bjørgen said that SuperSpeed is important and that the region will work
tourist industry in Norway. There is actively to attract round trip passengers to plan their route to include Lom
In 2007, Color Line brought in also additional spending by foreign and Gudbrandsdalen when travelling from east to west.
several hundred thousand guests tourists travelling by Color Line ships “We have scenery, we have history and we can offer a wide range of
heading for the major ski resorts who go ashore in Norway. 2008 will attractions. It is now up to the food and tourist industry in the region to take
in south Norway. in 2008 the new be the first complete year in which an initiative”, said the mayor to Aftenposten. Bjørgen is of the opinion that the
SuperSpeed ships will represent a both Color Fantasy and Color Magic tourist industry and other industries in Gudbrandsdalen will certainly benefit
considerable growth potential for the are in operation and it is expected that if passengers are encouraged to visit inland Norway after they arrive at the
important winter destinations which German tourists travelling by these ports of Larvik and Kristiansand.
will now be considered close to hand ships will spend about NOK 750 mil-
’’
for large groups of the population in lion in Norway. This is an increase of
Denmark and Germany. more than 75 percent compared with We can now offer a choice selection
2004 which was the last complete of popular mountain destinations to a
’’
year of operation without the new large market.
ships. Simen Bjørgen, The mayor of Lom
Spin-off effects
The important
in Larvik
round trip market
The establishment of a new port in
Larvik for SuperSpeed 2 will have The Norwegian round trip market
major spin-off effects both in the port represents approx. 2 million arrivals
and for the tourist industry in the each year and total holiday spending
region. The SuperSpeed ferries have of approx. NOK 15 billion. The intro-
no cabins and all overnight stays duction of SuperSpeed will open up
will therefore be ashore. Moreover, one of the most important routes to
the concept represents efficient and Hordaland and inner Rogaland from
regular logistics solutions to and Kristiansand through Setesdalen.
from the continent which will benefit In this way Kristiansand will be the
business and industry in the entire gateway to west Norway.
region. Edmund H. Utne,
Director of Hotel Ullensvang, Hardanger
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13. COLOR GROUP ANNUAL REPORT 2007 // SOCIETY AND THE ENVIRONMENT
Society and
the environment
“Color Line has developed into one of Europe’s leading cruise
ferry companies. The company operates at the intersection of
transport and tourism and plays an important part in bringing
’’
foreign tourists into Norway”
Extract from the Government’s strategy for environmentally friendly growth of the maritime industries.
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14. COLOR GROUP ANNUAL REPORT 2007 // SOCIETY AND THE ENVIRONMENT
A popular workplace
During the course of the next three years, Norwegian shipowning companies will require The show with the
almost 4 000 new seamen. In order to meet this requirement, Maritime Forum started
An efficient junction largest audience
up a major recruiting campaign aimed at encouraging more young people to choose a Every evening at 7 pm and 9 pm
career at sea. One of the campaign measures is the website www.ikkeforalle.no which Hirtshals is a junction for traffic be-
shows are performed in the show
presents different professions at sea and the different shipowning companies. tween the Continent and Norway,
lounge on board Color Magic and
Despite the keen competition for employees in the maritime sector, Color Line receives served by a four lane motorway and
Color Fantasy. The show programme
considerably more applications then there are vacancies. On Maritime Forum’s rail connection leading right into the
is changed in each direction, south-
recruiting pages, the presentation of Color Fantasy is the most visited feature of all and port. In 2008 this port will be able to
bound and northbound. The lounge
when the sister ship Color Magic was to be manned, 1 500 to 2 000 applications were handle more than 23 000 passengers
has more than 500 seats and dur-
received despite the fact that very few jobs were advertised externally. daily – equivalent to more than 156
ing the course of the year, each of
Color Line is a popular employer onshore as well. When Color Line advertised the full Boeing 737 aircraft.
the two shows are seen by approx.
first 20 jobs at the new customer centre in Larvik, more than 200 applications were 200 000 guests – the largest audi-
received. ence of any performance in Norway.
A new turn-around proce-
dure gave a cleaner port
In 2005, an investigation showed that
Engagements Color Viking’s propellers raised up sludge
The employees on board Color Line’s
from the sea bed in Sandefjord port. As a
new ships have attended either the
result of this investigation, Color Line re-
cruise school or the SuperSpeed
vised the turn-around procedure by using
school. In addition to providing
less engine power and by turning the ship
basic knowledge on Color Line and
around further out in the port where the
its fleet, the curriculum includes
water is deeper. A new investigation im-
“engagement” which is Color Line’s
plemented by Den Norske Veritas in 2007
core value. The objective is that
shows that this has had a positive effect:
engaged employees are to contribute
“No connection is shown between
towards the guests’ enjoyment so that
the departures of Color Viking and an
they want to repeat the experience.
increase in particle volume in waters in
port. It can therefore be concluded that
the implemented measure has had a
positive effect”.
Sold ships for more Innovative and environ-
than NOK 1 billion in mentally friendly
2007 Thank you for the gift! “SuperSpeed is an innovative and en-
In connection with the fleet renewal “Thank you for the gift Color Line! vironmentally friendly concept. It is
programme, Color Line sold four We will do our utmost to utilize the particularly gratifying that Color Line
of it’s ships in 2007. The market for potential that SuperSpeed repre- has taken this wide-reaching initiative
older tonnage was good in 2007 and sents for industry and tourism in our in Norway. This is where we can be
these sales brought in a total of more region”. This quotation is from a best in competition with other coun-
than NOK 1 billion. All the ships were speech by Erik Haatvedt, mayor of tries”.
sold above book value. Tinn municipality at the laying of the This is a quotation from a speech
Kronprins Harald was sold to Irish foundation stone for the new termi- by Dag Terje Andersen, the Minister
Ferries, Peter Wessel to MSC (Medi- nal at Revet in Larvik. of Trade and Industry during the
terranean Shipping Company) and foundation stone ceremony for the
Silvia Ana was sold to Buquebus. new terminal at Revet in Larvik.
Finally, Color Festival was sold to
Corsica Ferries.
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15. COLOR GROUP ANNUAL REPORT 2007 // SOCIETY AND THE ENVIRONMENT
Political aims
Moving more goods traffic from the roads to
Spin-off effects for tourism in Norway seaborne transport is a political objective both
in Norway and in the EU. In 2007, Color Line
increased its total capacity for the transport of
passengers and goods. Both the SuperSpeed fer-
The naming ceremony for M/S Color Magic in Kiel on 15 September 2007, attended by “In recent years the Norwe- build up and spread knowledge ries which take large quantities of freight from
almost 150 000 people did not just mark the start-up of the operation of a brand new ship gian Tourist Industry has become of Norway in Germany and apply the roads and the company’s cruise ships which
much more proficient in working efficient marketing measures on are equipped with spacious trailer and container
between Norway and Germany. It also represented the most comprehensive Norwegian
together and in combining travel, the market emphasises Tuftin. decks contribute towards this political aim.
marketing campaign in Germany in 2007.
overnight stays and attractions”, A systematic charting of Color Line’s dis-
says Tuftin. MAKING NORWAY EASILY charge to sea and air took place last year. The
T
The event was co- as a new tool for product develop- of the most important tourist AVAILABLE company is now well prepared to introduce fur-
vered by no less than ment and host development in the markets for Norway. Despite this, PRECISE MARKET When it comes to focusing on Nor- ther environmental protection measures in the
7 German TV chan- tourist industry in Norway. Norway’s market share of foreign INFORMATION way, Tuftin believes that Color Line years ahead. The company works to ensure that
nels and 160 accredi- Innovation Norway, Color Line travel from Germany is less than The Color Magic naming cere- plays a very important part. all its activities have the least possible impact
ted journalists. A total and other players in the tourist in- 1 percent. mony was the initial step in the “There is no doubt that Co- on the environment on land, at sea and in the
of NOK 15 million was dustry have agreed on the objec- Optima Germany project. However, lor Line’s engagement in both air. This work takes place in close co-operation
invested in this event which was tive of increasing the number of AN ENORMOUS POTENTIAL the project itself started in 2006. the new cruise ships to Germany or understanding with the authorities, the clas-
attended by, among others, Oslo guest days for German tourists “This is not nearly enough in re- One of the most important aims and the SuperSpeed concept be- sification company, research environments and
City, Fjord Norway, The Export in Norway by 100 000 each year lation to the enormous potential of the pilot project was to obtain tween Norway and Denmark is an environmental organisations.
Council for Fish and numerous in the years ahead. From the time represented by this market”, says precise factual information on the extremely important factor for the
other Norwegian organisations Color Magic’s sister ship, Color Per-Arne Tuftin, director of tou- German tourist market so that the flow of tourists. These ships con- TRIPLED
and companies. The campaign is Fantasy was put into operation rism in Innovation Norway. One marketing of Norway could be as tribute towards making Norway The SuperSpeed ferry can accept three times
part of the co-operation program- on the Oslo – Kiel service in 2004, of the most important criteria for efficient as possible. easily accessible and this is one as many trailers as the ships they are replacing.
me Optima Germany. The aim of the number of German passen- success in attracting more tourists “With regard to what the Ger- of the most important factors Based on a fully loaded ship, the CO2 discharge
the project is to optimize market gers has increased by about 50 to Norway is a co-operation man market wants, we have now for increasing tourism”, says per vehicle will be halved on the voyage from
communications based on Norway percent. The potential is much constellation between tourist en- progressed from guesswork to Tuftin. ■ Kristiansand to Hirtshals. Discharge from the
as a branded product and to serve greater however. Germany is one terprises. knowledge so that jointly we can shopping centre, restaurants, entertainment
events and cabins is included. ■
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