AS Tallink Grupp and its subsidiaries (hereinafter also referred to as “the
Group”) first full financial year with the previous financial year's big
investments on board has ended with the strong and healthy result which
assures that the business of the significantly grown company is sound and
effective. During the last twelve month period the Group revenues increased by
88% to 11,903 million EEK (761 million EUR). Excluding the non-recurring costs
the Group's EBITDA increased by 87% to 2,738 million EEK (175 million EUR).
The Group transported 6.9 million passengers, 63.5% more than in the year
before.
In the fourth quarter the Group's EBITDA increased by 33% to 1,302 million EEK
(83 million EUR). The EBITDA margin increased from 29.8% to 36.7% in the
fourth quarter of 2006/2007 financial year.
AS Tallink Grupp CEO Mr. Enn Pant is pleased with the result: “I am very
satisfied that finally in October 2007 we have launched probably world's most
sophisticated booking and check-in system on the modern IT platform. The new
system connects all our offices in six countries, hundreds of travel agencies
across the Scandinavia and Europe and includes the advanced internet booking
module. This new system was developed by Silja already for many years and was
originally due for launch in autumn 2006, but since it didn't meet our needs
the system's further development continued during the past year.
I believe that together with the transition and unification of the many
supporting IT systems we can report the end of Silja integration process by
the end of 2007.
During the new 2007/2008 financial year we will continue with the
restructuring of the operations to maximize the company's profitability. First
steps have already been made towards the change of vessels on the Turku-
Stockholm route. Given the fact that during the first full year after the
acquisition of Silja the positive impact of synergies is hardly seen yet and
expecting the positive result from the operations restructuring the following
years will have great upside potential.”
12 MONTHS KEY FIGURES
01.09.2006- 01.09.2005- change %
31.08.2007 31.08.2006
EEK EUR EEK EUR
Net sales (million) 11,903.3 760.8 6,330.9 404.6 88.0%
EBITDA excluding non-recurring 2,737.7 175,0 1,466.2 93.7 86.7%
costs (million)
Net Profit excluding non- 1,299.6 83.1 774.8 49.5 91.7%
recurring costs & negative
goodwill (million)
Non-recurring integration 250.3 16.0
costs (million)
EBITDA (million) 2,487.3 159.0 1,466.2 93.7 69.6%
Net profit for the period 1,049.3 67.1 1,485.3 94.9 -29.4%
(million)
EBITDA margin (%) 20.9% 23.2%
Net profit margin (%) 8.8% 23.5%
Depreciation (million) 925.5 59.1 419.7 26.8 120.5%
Investments (million) 2,203.5 140.8 16,259.0 1,039.1 -86.4%
Weighted average number of 673,817,040 521,527,764 29.2
ordinary shares outstanding
during 12 months*
Earnings per share 1.56 0.100 2.85 0.182 -45.3%
Number of passengers 6,873,339 4,203,163 63.5%
Cargo units 359,781 188,330 91.0%
Average number of employees 6,227 3,463 79.8%
31.08.2007 31.08.2006 change%
Total assets (million) 26,570.9 1,698.2 25,931.6 1,657.3 2.5%
Total liabilities (million) 16,436.0 1,050.4 16,856.3 1,077.3 -2.5%
Interest-bearing liabilities 14,831.7 947.9 14,955.6 955.8 -0.8%
(million)
Total equity (million) 10,134.9 647.7 9,075.3 580.0 11.7%
Equity ratio (%) 38.1% 35.0%
Number of ordinary shares 673,817,040 673,817,040 0.0
outstanding*
Shareholders' equity per 15.04 0.96 13.47 0.86 11.7%
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;
Shareholders' equity per share - Shareholder's equity / Number of shares
outstanding;
* share numbers have been adjusted in connection with the share bonus issue in
January 2007
SALES AND EARNINGS
Net sales of the Group amounted to 11,903.3 million EEK (760.8 million EUR) in
the 12 months of 2006/2007 financial year (September 01, 2006 - August 31,
2007) compared to 6,330.9 million EEK (404.6 million EUR) with the 12 months
of 2005/2006 financial year (September 01, 2005 - August 31, 2006). The
increase in sales is largely the effect of the 2006 year investments: Silja
Line, Superfast vessels, Galaxy cruise ferry and new Riga-Stockholm route. The
passenger related revenues per passenger have increased 17% which is a
positive impact from the recent investments.
During the 12 months of 2006/2007 financial year the Group's EBITDA increased
by 69.6% to 2,487.3 million EEK (159.0 million EUR). The net profit decreased
by 29.4% from 1,485.3 million EEK (94.9 million EUR) to 1,049.3 million EEK
(67.1 million EUR). Basic earnings per share and diluted earnings per share
were 1.56 EEK (0.10 EUR) in the 12 months of 2006/2007 financial year, a
decrease of 45.3% compared to 2.85 EEK (0.182 EUR) in the corresponding period
in 2005/2006 financial year. Excluding negative goodwill and non recurring
costs the effective comparable net profit increased 91.7% to 1,299.6 million
EEK (83.1 million EUR) and the earnings per share on the same basis rose 30.0%
to 1.93 EEK (0.12 EUR).
During the last 12 months the Group's earnings were decreased by several non-
recurring Silja Line integration and restructuring related costs in the total
amount of 250 million EEK (16 million EUR) causing the high numbers in the
marketing and administrative costs. The start-up costs in third quarter
arising from the launch of new vessel Star, the launch of new Tallink Spa &
Conference hotel and the extension of the stevedoring activities in Finland,
have had an impact to the Group's result as well. Influential to the Group's
earnings, especially in the fourth quarter, were rapidly increasing interest
rates and from the operational side fuel price higher than expected.
We believe that the Bronze Soldier incidents and related disorders in Tallinn
in the end of April had negative impact to the passenger volumes on our routes
in May and June and therefore also negatively impacted the Group's earnings.
Despite the increased costs on the overheads and also in the operations the
Group's EBITDA in the fourth quarter increased by 33.1% to 1,302.1 million EEK
(83.2 million EUR) which is 323.5 million EEK (20.7 million EUR) more than in
the last year's fourth quarter. The Group's EBITDA margin in the fourth
quarter was 36.7% compared to 29.8% a year earlier.
CONSOLIDATED CONDENSED INCOME STATEMENT
(unaudited, in thousands of EEK)
01.06.07- 01.06.06- 01.09.06- 01.09.05-
31.08.07 31.08.06 31.08.07 31.08.06
Net sales 3,552,013 3,281,601 11,903,286 6,330,911
Cost of sales -2,254,045 -2,073,429 -8,766,651 -4,498,940
Gross profit 1,297,968 1,208,172 3,136,635 1,831,971
Marketing expenses -147,165 -189,591 -792,381 -454,520
Administrative and general -243,196 -220,317 -997,361 -329,798
expenses
Other operating items 179,794 -7,559 207,265 -1,128
Income from negative goodwill 0 710,496 689 710,496
Financial income 56,718 25,887 203,884 44,854
Financial expenses -222,942 -173,854 -801,219 -316,571
Income from associates 1,205 0 7,698 0
Profit from normal operation 922,382 1,353,234 965,210 1,485,304
before income tax
Income tax 85,525 342 84,077 -33
Net profit for the period 1,007,907 1,353,576 1,049,287 1,485,271
Attributable to:
Equity holders of the parent 1,007,907 1,353,416 1,049,287 1,484,206
Minority interests 0 160 0 1,065
Earnings per share
(in EEK per share)
- basic 1.56 2.85
- diluted 1.56 2.85
CONSOLIDATED CONDENSED INCOME STATEMENT
(unaudited, in thousands of EUR)
01.06.07- 01.06.06- 01.09.06- 01.09.05 -
31.08.07 31.08.06 31.08.07 31.08.06
Net sales 227,015 209,733 760,759 404,619
Cost of sales -144,060 -132,517 -560,291 -287,535
Gross profit 82,955 77,216 200,468 117,084
Marketing expenses -9,406 -12,117 -50,643 -29,049
Administrative and general expenses -15,543 -14,081 -63,743 -21,078
Other operating items 11,490 -483 13,246 -72
Income from negative goodwill 0 45,409 44 45,409
Financial income 3,625 1,655 13,031 2,867
Financial expenses -14,248 -11,112 -51,207 -20,233
Income from associates 77 0 492 0
Profit from normal operation before 58,950 86,487 61,688 94,928
income tax
Income tax 5,467 22 5,374 -2
Net profit for the period 64,417 86,509 67,062 94,926
Attributable to:
Equity holders of the parent 64,417 86,499 67,062 94,858
Minority interests 0 10 0 68
Earnings per share
(in EUR per share)
- basic 0.10 0.18
- diluted 0.10 0.18
CONSOLIDATED CONDENSED BALANCE SHEET
(unaudited, in thousands of EEK)
ASSETS 31.08.2007 31.08.2006
Current assets
Cash and cash equivalents 1,303,609 1,407,608
Receivables 815,093 843,456
Prepayments 106,144 235,890
Derivatives 1,799 11,633
Tax assets 17,990 17,644
Inventories 272,352 237,228
Total current assets 2,516,987 2,753,459
Non-current assets
Investments in associates 3,242 9,044
Other financial assets and prepayments 9,279 8,240
Deferred tax assets 153,102 0
Pension assets 0 45,234
Investment property 4,694 0
Property, plant and equipment 22,600,001 21,857,153
Intangible assets 1,283,592 1,258,432
Total non-current assets 24,053,910 23,178,103
TOTAL ASSETS 26,570,897 25,931,562
LIABILITIES AND EQUITY
Current liabilities
Current portion of interest-bearing liabilities 2,247,390 1,228,098
Payables 1,287,671 1,593,026
Deferred income 121,008 146,042
Derivatives 7,980 24,159
Tax liabilities 120,698 112,061
Total current liabilities 3,784,747 3,103,386
Non-current liabilities
Interest bearing loans and borrowings 12,584,261 13,727,497
Deferred income tax liability 63,463 69
Pension liability 3,489 25,332
Total non-current liabilities 12,651,213 13,752,898
TOTAL LIABILITIES 16,435,960 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 premium 0 1,475,727
Reserves 1,202,991 1,158,714
Retained earnings 2,183,777 3,012,254
Total equity attributable to equity holders of the 10,134,937 9,074,089
parent
TOTAL EQUITY 10,134,937 9,075,278
TOTAL LIABILITIES AND EQUITY 26,570,897 25,931,562
CONSOLIDATED CONDENSED BALANCE SHEET
(unaudited, in thousands of EUR)
ASSETS 31.08.2007 31.08.2006
Current assets
Cash and cash equivalents 83,315 89,963
Receivables 52,094 53,906
Prepayments 6,784 15,076
Derivatives 115 743
Tax assets 1,150 1,128
Inventories 17,407 15,162
Total current assets 160,865 175,978
Non-current assets
Investments in associates 207 578
Other financial assets and prepayments 594 527
Deferred tax assets 9,785 0
Pension assets 0 2,891
Investment properties 300 0
Property, plant and equipment 1,444,403 1,396,927
Intangible assets 82,036 80,428
Total non-current assets 1,537,325 1,481,351
TOTAL ASSETS 1,698,190 1,657,329
LIABILITIES AND EQUITY
Current liabilities
Current portion of interest-bearing liabilities 143,634 78,490
Payables 82,297 101,813
Deferred income 7,734 9,334
Derivatives 510 1,544
Tax liabilities 7,714 7,162
Total current liabilities 241,889 198,343
Non-current liabilities
Interest bearing loans and borrowings 804,281 877,347
Deferred income tax 4,056 4
Pension liability 223 1,619
Total non-current liabilities 808,560 878,970
TOTAL LIABILITIES 1,050,449 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 premium 0 94,316
Reserves 76,885 74,056
Retained earnings 139,569 192,518
Total equity attributable to equity holders of the 647,741 579,940
parent
TOTAL EQUITY 647,741 580,016
TOTAL LIABILITIES AND EQUITY 1,698,190 1,657,329
CONSOLIDATED CONDENSED CASH FLOW STATEMENT
(unaudited, in thousands of EEK) 01.09.2006- 01.09.2005-
31.08.2007 31.08.2006
Cash flows from operating activities
Net profit for the period 1,049,287 1,485,271
Adjustments 1,252,817 -17,689
Changes in assets related to operating activities 203,468 -276,382
Changes in inventories -34,964 -46,495
Changes in liabilities related to operating -346,867 91,081
activities
Income tax repaid -4,083 -791
2,119,658 1,234,995
Cash flow used for investing activities
Purchase of property, plant, equipment and intangible -2,201,608 -7,824,715
assets
Proceeds from disposals of property, plant, equipment 687,540 181,619
Proceeds from disposals of associates 15,162 5,000
Acquisition of subsidiaries -1,157 -969,511
Acquisition of associates -1,020 0
Interest received 186,117 23,007
-1,314,966 -8,584,600
Cash flow from (+)/ used for (-) financing activities
Issue of shares 0 3,668,735
Transaction costs of issue of shares -6,520 -132,891
Proceeds from loans and bonds 1,357,847 12,609,227
Redemption of loans and bonds -1,555,385 -7,473,544
Change in overdraft 74,143 -18,249
Repayment of finance lease liabilities -27,010 -5,073
Interest paid -751,766 -217,778
-908,691 8,430,427
TOTAL NET CASH FLOW -103,999 1,080,822
Cash and cash equivalents:
- at the beginning of period 1,407,608 326,786
- increase (+) / decrease (-) -103,999 1,080,822
Cash and cash equivalents at end of period 1,303,609 1,407,608
CONSOLIDATED CONDENSED CASH FLOW STATEMENT
(unaudited, in thousands of EUR) 01.09.2006- 01.09.2005-
31.08.2007 31.08.2006
Cash flows from operating activities
Net profit for the period 67,062 94,926
Adjustments 80,070 -1,131
Changes in assets related to operating activities 13,004 -17,664
Changes in inventories -2,235 -2,971
Changes in liabilities related to operating activities -22,169 5,821
Income tax repaid -261 -50
135,471 78,931
Cash flow used for investing activities
Purchase of property, plant, equipment and intangible -140,708 -500,090
assets
Proceeds from disposals of property, plant, equipment 43,942 11,607
Proceeds from disposals of associates 969 320
Acquisition of subsidiaries -74 -61,963
Acquisition of associates -65 0
Interest received 11,895 1,470
-84,041 -548,656
Cash flow from (+)/ used for (-) financing activities
Issue of shares 0 234,475
Transaction costs of issue of shares -417 -8,493
Proceeds from loans and bonds 86,782 805,876
Redemption of loans and bonds -99,407 -477,647
Change in overdraft 4,739 -1,166
Repayment of finance lease liabilities -1,727 -324
Interest paid -48,047 -13,918
-58,077 538,803
TOTAL NET CASH FLOW -6,647 69,078
Cash and cash equivalents:
- at the beginning of period 89,963 20,885
- increase (+) / decrease (-) -6,647 69,078
Cash and cash equivalents at end of period 83,316 89,963
AS Tallink Grupp will publish the Audited Annual Report for the 2006/2007
financial year in November 2007.
Janek Stalmeister
Financial Director
AS Tallink Grupp
e-mail: janek.stalmeister@tallink.ee
Tel. +372 6409 800
