During the first half of the 2006/2007 financial year the revenues of
AS Tallink Grupp increased by 205% compared to the same period of
previous financial year. The Group's EBITDA increased nearly 209% and
reached 789 million EEK (50 million EUR).
Mr. Enn Pant, CEO of AS Tallink Grupp said: “We are pleased that the
weakest season which is typical to our business is over and that the
company has retained the profitability in the first half of the
financial year. The Silja integration has been sucessful giving us
confidence in meeting our targets on the coming high season.”
Despite the additional restructuring costs and the fact that many of
the operational changes and vessels' dockings were done during the
second quarter we have maintained the operational profitability for the
first half-year. The EBITDA margin for the first half-year period is
holding at 14.5%, a percentage point higher than last year. Excluding
the integration related 77 millon EEK (5 million EUR) non recurring
costs the EBITDA margin would be 15.9% indicating that the performance
of the Group during the first half-year has improved.
Similarly to the first quarter the primary focus has also in second
quarter been on the integration of Silja and Tallink, on the related
changes in the organisation and launching of actions generating
positive synergies. The improvements of the acquired Silja operations
have been noticeable and the integration process has been successful.
The Silja EBITDA has improved approximately by 140 million EEK (9
million EUR) during the first half-year of 2006/2007 financial year
compared to the 2005/2006 pro-forma results.
1st HALF-YEAR KEY FIGURES
01.09.2006- 01.09.2005- change %
28.02.2007 28.02.2006
EEK EUR EEK EUR
Net sales (million) 5,448.8 348.2 1,786.0 114.1 205.1
EBITDA (million) 789.1 50.4 255.7 16.3 208.6
EBITDA margin (%) 14.5 14.3 14.3
Net profit for the 2.6 0.2 55.2 3.5 -95.3
period (million)
Net profit margin (%) 0.0 0.0 3.1 3.1
Depreciation (million) 509.1 32.5 138.5 8.9 267.6
Investments (million) 413.6 26.4 237.8 15.2 74.0
Weighted average number 673,817,040 488,607,736 37.9
of ordinary shares
outstanding during 1st
half-year*
Earnings per share 0.00 0.00 0.11 0.01 -96.5
Number of passengers 2,978,815 1,336,872 122.8
Cargo units 175,935 70,044 151.2
Average number of 5,970 2,632 126.8
employees
28.02.2007 31.08.2006 change %
EEK EUR EEK EUR
Total assets (million) 25,230.0 1,612.5 25,931.6 1,657.3 -2.7
Total liabilities 15,808.0 1,010.3 16,856.3 1,077.3 -6.2
(million)
Interest-bearing 14,366.9 918.2 14,955.6 955.8 -3.9
liabilities (million)
Total equity (million) 9,082.9 580.5 9,075.3 580.0 0.1
Equity ratio (%) 36.0 35.0
Number of ordinary 673,817,040 546,000,000 23.4
shares outstanding*
Shareholders equity per 13.48 0.86 16.62 1.06 -18.9
share
Net profit margin - Net profit / Net sales;
EBITDA - Earnings before net financial items, share of profit of
associates, taxes, depreciation and amortization, income from negative
goodwill;
EBITDA margin - EBITDA / Net sales;
Equity ratio - Total Equity / Total Assets;
Earnings per share - Net Profit / Weighted average number of shares
outstanding;
Shareholder's equity per share - Shareholder's equity / Number of
shares outstanding.
* share numbers adjusted in connection with the bonus issue in January
2007.
SALES AND EARNINGS
Net sales of AS Tallink Grupp and its subsidiaries amounted to 5,448.8
million EEK (348.2 million EUR) in the first half of 2006/2007
financial year (September 01, 2006 - February 28, 2007) compared to
1,786.0 million EEK (114.1 million EUR) with the first half of
2005/2006 financial year (September 01, 2005 - February 28, 2006). The
3,662.8 million EEK (234.1 million EUR) or 205.1% increase in sales in
the first half resulted largely from the investments made during the
previous financial year, but also from the increased number of
passengers on Estonia-Finland and Estonia-Sweden routes and increased
revenues per passenger.
During the first half of 2006/2007 financial year the Group's EBITDA
increased by 208.6% to 789.1 million EEK (50.4 million EUR). The net
profit decreased by 95.3% from 55.2 million EEK (3.5 million EUR) to
2.6 million EEK (0.2 million EUR). The second quarter performance was
largely influenced from many of the operational factors such as
vessels' dry-dockings and fleet changes on the routes.
During the first half the Group's earnings were negatively affected by
several non-recurring integration costs in the total amount of 78
million EEK (5 million EUR) which are mainly related to the
redundancies at our Finnish and Swedish shore organisation. It is
estimated that these non-recurring redundancy costs will lead to
approximately 147 million EEK (9.4 million EUR) yearly savings on
overhead costs. In addition to the identified integration costs
approximately 15.6 million EEK (1 million EUR) of indirect non-
recurring costs are related to the restructuring and integration of our
Finnish and Swedish shore operations.
The outlook for Q3 and Q4 is promising. The fleet changes that were
made during the Q2 and the delivery of new vessel Star are showing
positive operational performance.
CONSOLIDATED CONDENSED INCOME STATEMENT
(unaudited, in 01.12.2006- 01.12.2005- 01.09.2006- 01.09.2005-
thousands of EEK)
28.02.2007 28.02.2006 28.02.2007 28.02.2006
Net sales 2,471,915 793,969 5,448,778 1,786,023
Cost of sales -2,041,164 -690,905 -4,294,028 -1,440,492
Gross profit 430,751 103,064 1,154,750 345,531
Marketing expenses -167,747 -56,940 -403,688 -160,433
Administrative and -249,683 -30,123 -479,239 -68,336
general expenses
Other operating items 823 555 8,250 441
Income from negative 0 0 689 0
goodwill
Financial income 66,409 9,878 91,045 10,747
Financial expenses -190,841 -34,136 -367,549 -72,145
Profit from normal -110,288 -7,702 4,258 55,805
operation before income
tax
Income tax -1,708 299 -1,653 -588
Net profit for the -111,996 -7,403 2,605 55,217
period
Attributable to:
Equity holders of the -111,996 -7,601 2,605 54,598
parent
Minority interests 0 198 0 619
Earnings per share (in
EEK per share)
- basic 0.00 0.11
- diluted 0.00 0.11
(unaudited, in thousands 01.12.2006- 01.12.2005- 01.09.2006- 01.09.2005-
of EUR)
28.02.2007 28.02.2006 28.02.2007 28.02.2006
Net sales 157,984 50,744 348,240 114,148
Cost of sales -130,454 -44,157 -274,438 -92,064
Gross profit 27,530 6,587 73,802 22,084
Marketing expenses -10,721 -3,640 -25,800 -10,254
Administrative and general -15,958 -1,925 -30,629 -4,367
expenses
Other operating items 53 36 527 28
Income from negative 0 0 44 0
goodwill
Financial income 4,244 632 5,819 687
Financial expenses -12,197 -2,182 -23,491 -4,611
Profit from normal -7,049 -492 272 3,567
operation before income
tax
Income tax -109 19 -106 -38
Net profit for the period -7,158 -473 166 3,529
Attributable to:
Equity holders of the -7,158 -485 166 3,490
parent
Minority interests 0 12 0 39
Earnings per share (in EUR
per share)
- basic 0.00 0.01
- diluted 0.00 0.01
CONSOLIDATED CONDENSED BALANCE SHEET
(unaudited, in thousands of EEK)
ASSETS 28.02.2007 31.08.2006
Current assets
Cash and cash equivalents 579,919 1,407,608
Receivables 732,867 843,456
Prepayments 210,134 235,890
Derivatives 51,468 11,633
Tax assets 11,138 17,644
Inventories 226,198 237,228
Total current assets 1,811,724 2,753,459
Non-current assets
Investments in associates 9,044 9,044
Other financial assets and 8,313 8,240
prepayments
Pension assets 45,234 45,234
Property, plant and equipment 21,746,360 21,857,153
Intangible assets 1,270,261 1,258,432
Total non-current assets 23,079,212 23,178,103
TOTAL ASSETS 24,890,936 25,931,562
LIABILITIES AND EQUITY
Current liabilities
Current portion of interest-bearing 1,865,026 1,228,098
liabilities
Payables 1,183,921 1,593,026
Deferred income 110,672 146,042
Derivatives 12,954 24,159
Tax liabilities 104,209 112,061
Total current liabilities 3,276,782 3,103,386
Non-current liabilities
Interest bearing loans and borrowings 12,501,878 13,727,497
Deferred income tax liability 1,595 69
Pension liability 27,773 25,332
Total non-current liabilities 12,531,246 13,752,898
TOTAL LIABILITIES 15,808,028 16,856,284
EQUITY
Minority interests 0 1,189
Equity attributable to equity holders
of the parent
Share capital 6,738,170 1,415,000
Share premium 9,999 2,012,394
Unregistered share capital with share 0 1,475,727
premium
Reserves 1,239,139 1,158,714
Retained earnings 1,095,600 3,012,254
Total equity attributable to equity 9,082,908 9,074,089
holders of the parent
TOTAL EQUITY 9,082,908 9,075,278
TOTAL LIABILITIES AND EQUITY 24,890,936 25,931,562
CONSOLIDATED CONDENSED BALANCE SHEET
(unaudited, in thousands of EUR)
ASSETS 28.02.2007 31.08.2006
Current assets
Cash and cash equivalents 37,064 89,963
Receivables 46,839 53,906
Prepayments 13,430 15,076
Derivatives 3,289 743
Tax assets 712 1,128
Inventories 14,457 15,162
Total current assets 115,791 175,978
Non-current assets
Investments in associates 578 578
Other financial assets and 531 527
prepayments
Pension assets 2,891 2,891
Property, plant and equipment 1,389,846 1,396,927
Intangible assets 81,184 80,428
Total non-current assets 1,475,030 1,481,351
TOTAL ASSETS 1,590,821 1,657,329
LIABILITIES AND EQUITY
Current liabilities
Current portion of interest-bearing 119,197 78,490
liabilities
Payables 75,666 101,813
Deferred income 7,073 9,334
Derivatives 828 1,544
Tax liabilities 6,660 7,162
Total current liabilities 209,424 198,343
Non-current liabilities
Interest bearing loans and borrowings 799,016 877,347
Deferred income tax 102 4
Pension liability 1,775 1,619
Total non-current liabilities 800,893 878,970
TOTAL LIABILITIES 1,010,317 1,077,313
EQUITY
Minority interests 0 76
Equity attributable to equity holders
of the parent
Share capital 430,648 90,435
Share premium 639 128,615
Unregistered share capital with share 0 94,316
premium
Reserves 79,195 74,056
Retained earnings 70,022 192,518
Total equity attributable to equity 580,504 579,940
holders of the parent
TOTAL EQUITY 580,504 580,016
TOTAL LIABILITIES AND EQUITY 1,590,821 1,657,329
Janek Stalmeister
Financial Director
AS Tallink Grupp
Tel. +372 6409 800
Email: janek.stalmeister@tallink.ee