Tallink Grupp

AS Tallink Grupp Unaudited Consolidated Interim Report Q1 2016

Tallinn, 2016-05-12 08:50 CEST (GLOBE NEWSWIRE) --

AS Tallink Grupp Unaudited Consolidated Interim Report Q1 2016

In the first quarter (1 January - 31 March) of the 2016 financial year AS

Tallink Grupp and its subsidiaries (the Group) carried 2.0 million passengers

which is 8.9% more compared to the first quarter last year. The Group?s

unaudited revenue for the first quarter increased by EUR 2.7 million or 1.4% to

the total of EUR 192.8 million. Unaudited EBITDA decreased by EUR 3.2 million

or 16.3% to the total of EUR 16.3 million, unaudited net result improved by EUR

1.3 million or 9.9% compared to the same period last year and net loss amounted

to EUR 12.0 million.

In the first quarter,which is also the low season, the number of passengers

increased in all operated routes. The Group also increased the total revenue

mainly from higher on-board sales despite less departures due to maintenance

and lower revenue from the chartering activity. Compared to the same period

last year the first quarter result was affected by noticeably lower revenues

from chartering related to the sale of vessels Regina Baltica and Silja

Festival, and termination of cruise ferry Silja Europa charter. However, the

Group was able to exceed the reduction of charter revenues with higher revenues

from main routes. The first quarter profitability was influenced also by

onetime expenses from cruise ferry Silja Europa start of operations on

Estonia-Finland route. The fast ferry Superstar sale and charter back

transaction will impact the result of the current financial year. As a result

of these operational changes, in the first quarter there are lower amortization

and finance costs but higher operating costs, which resulted lower EBITDA and

improved net result.

The Estonia-Finland routes first quarter revenue increased by 4.1% compared to

same period last year. The increase is driven mainly by growth in the passenger

number, cargo volume was on level with last year. The cruise ferry Silja Europa

started daily operations on Tallinn-Helsinki route cruise service on 13th of

March 2016. The Estonia-Finland segment result for the first quarter was lower

compared to the same period last year due to the cost of charter of the fast

ferry Superstar and also onetime costs related to the preparations of the

cruise ferry Silja Europa return to the route.

The Finland-Sweden routes first quarter revenue increased by 5.0% compared to

same period last year, the increase is supported by a 6.8% growth in the

passenger number. The number of cargo units transported increased by 4.0%.

The Estonia-Sweden route revenue increase of 15.5% was mainly driven by a 13.3%

increase of passenger number and higher cargo volume. The Latvia-Sweden route

showed slightly higher revenue compared with the first quarter last year.

In the first quarter the Group?s restaurants and shop sales increased by EUR

8.8 million or 8.7%, compared to the same period last year. The sales growth is

supported mainly by the higher number of passengers travelling with the Group?s

operated ships.

The revenue from the leases of vessels has reduced by EUR 6.8 million or 43.2%

in the first quarter due to fewer ships are chartered out, compared to the same

period last year.

The Group has continuous focus on improving the public areas and cabins in

ships to support the customer satisfaction and revenue growth. In the first

quarter, the capital expenditure amounted to total of EUR 12.7 million. Along

with the routine maintenance of vessels, number of investments were made to the

shops, restaurants and cabins on the cruise ferries Silja Symphony and Silja

Europa. On the Tallink Shuttle ferry Star the world?s first floating BURGER

KING® restaurant was opened.

In the first quarter of the 2016 financial year the Group?s gross profit

amounted to EUR 26.5 million which is on level compared to the same period last

year and EBITDA decreased by EUR 3.2 million to the total of EUR 16.3 million.

The first quarter profitability was impacted by lower total fuel cost but also

higher marketing costs, cost of charter of the fast ferry Superstar and onetime

costs related to changes in operations. Onetime costs from operations were

related to preparations of the cruise ferry Silja Europa return to the route

and launching of the Group operated Tallink Logistics Center.

In the first quarter, the depreciation and amortization cost reduced by EUR 0.8

due to the sale of three vessels in 2015. Total finance costs decreased by EUR

2.3 million mainly due to lower interest cost from regular repayment of loans

and also repayment of loans related to sale of ships.

The unaudited net loss for the first quarter of the 2016 financial year was EUR

12.0 million or EUR 0.018 per share compared to the net loss of EUR 13.3

million or EUR 0.020 per share in the same period last year.

Cash flow from operations was EUR 16.7 million in first quarter, which is a EUR

1.0 million lower compared to the same period last year. The total liquidity,

cash and unused credit facilities, at the end of the first quarter was EUR

136.3 million (EUR 68.8 million, 31 March 2015) providing a strong financial

position for sustainable operations. The Group had EUR 91.7 million (EUR 66.3

million, 31 March 2015) in cash and equivalents and the total of unused credit

lines were at EUR 44.6 million (EUR 2.5 million, 31 March 2015).

Q1 KEY FIGURES

2016 2015 Change

Jan-Mar Jan-Mar

------------------------------------------------------

Revenue EUR million 192.8 190.2 1.4%

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Gross profit EUR million 26.5 26.1 1.4%

--------------------------------------------------------------------------------

Gross margin 13.7% 13.7%

--------------------------------------------------------------------------------

EBITDA EUR million 16.3 19.5 -16.3%

--------------------------------------------------------------------------------

EBITDA margin 8.4% 10.2%

--------------------------------------------------------------------------------

Net profit for the EUR million -12.0 -13.3 9.9%

period

--------------------------------------------------------------------------------

Net profit margin -6.2% -7.0%

adjusted

--------------------------------------------------------------------------------

Depreciation and EUR million 19.6 20.4 -3.7%

amortization

--------------------------------------------------------------------------------

Investments EUR million 12.6 3.6 251.0%

--------------------------------------------------------------------------------

Weighted average number of ordinary shares 669,882,040 669,882,040 0.0%

outstanding 1

--------------------------------------------------------------------------------

Earnings per share EUR -0.02 -0.02 9.9%

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Number of passengers 1,953,070 1,793,414 8.9%

--------------------------------------------------------------------------------

Number of cargo 77,279 75,172 2.8%

units

--------------------------------------------------------------------------------

Average number of 6,886 6,642 3.7%

employees

--------------------------------------------------------------------------------

----------------------------------------------- -------

--------------------------

31.03.2016 31.12.2015

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Total assets EUR million 1,554.8 1,538.8 1.0%

--------------------------------------------------------------------------------

Interest-bearing EUR million 564.1 549.3 2.7%

liabilities

--------------------------------------------------------------------------------

Net debt EUR million 472.4 467.4 1.1%

--------------------------------------------------------------------------------

Total equity EUR million 812.3 824.4 -1.5%

--------------------------------------------------------------------------------

Equity ratio 52.2% 53.6%

--------------------------------------------------------------------------------

Net debt to EBITDA 2.7 2.6

--------------------------------------------------------------------------------

Number of ordinary shares outstanding 1 669,882,040 669,882,040 0.0%

--------------------------------------------------------------------------------

Shareholders? equity EUR 1.21 1.23 -1.5%

per share

--------------------------------------------------------------------------------

EBITDA: Earnings before net financial items, taxes, depreciation and

amortization;

Earnings per share: net profit / weighted average number of shares outstanding;

Equity ratio: total equity / total assets;

Shareholder?s equity per share: shareholder?s equity / number of shares

outstanding;

Gross margin: gross profit / net sales;

EBITDA margin: EBITDA / net sales;

Net profit margin: net profit / net sales;

Net debt: Interest bearing liabilities less cash and cash equivalents;

Net debt to EBITDA: Net debt / 12-months trailing EBITDA.

1 Share numbers exclude own shares.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(unaudited, in thousands of euros) 01.01.2016- 01.01.2015-

31.03.2016 31.03.2015

\================================================================================

Revenue (Note 3) 192,821 190,153

Cost of sales -166,343 -164,049

Gross profit 26,478 26,104

--------------------------------------------------------------------------------

Sales and marketing expenses -18,292 -15,235

Administrative expenses -12,018 -11,715

Other operating income 500 123

Other operating expenses -16 -191

--------------------------------------------------------------------------------

Result from operating activities -3,348 -914

--------------------------------------------------------------------------------

Finance income (Note 4) 2,596 5,676

Finance costs (Note 4) -11,273 -16,608

Profit/-loss before income tax -12,025 -11,846

--------------------------------------------------------------------------------

Income tax -2 -1,500

--------------------------------------------------------------------------------

Net profit/-loss for the period -12,027 -13,346

--------------------------------------------------------------------------------

Other comprehensive income/-expense

Items that may be reclassified to profit or loss

Exchange differences on translating foreign operations -58 -82

Other comprehensive income/-expense for the period -58 -82

--------------------------------------------------------------------------------

Total comprehensive income/-expense for the period -12,085 -13,428

--------------------------------------------------------------------------------

Earnings per share (in EUR per share)

- basic (Note 5) -0.018 -0.020

- diluted (Note 5) -0.018 -0.020

--------------------------------------------------------------------------------

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(unaudited, in thousands of euros)

ASSETS 31.03.2016 31.12.2015

\================================================================================

Current assets

--------------------------------------------------------------------------------

Cash and cash equivalents 91,718 81,976

Trade and other receivables 35,354 36,583

Prepayments 13,075 5,274

Income tax prepayment 439 1,224

Inventories 36,506 29,197

Total current assets 177,092 154,254

--------------------------------------------------------------------------------

Non-current assets

--------------------------------------------------------------------------------

Investments in equity-accounted investees 350 350

Other financial assets 361 308

Deferred income tax assets 19,410 19,410

Investment property 300 300

Property, plant and equipment (Note 7) 1,305,045 1,311,418

Intangible assets (Note 8) 52,195 52,726

---------------------------------------------------------

Total non-current assets 1,377,661 1,384,512

--------------------------------------------------------------------------------

---------------------------------------------------------

TOTAL ASSETS 1,554,753 1,538,766

--------------------------------------------------------------------------------

LIABILITIES AND EQUITY

\================================================================================

Current liabilities

--------------------------------------------------------------------------------

Interest bearing loans and borrowings (Note 9) 108,851 81,889

Trade and other payables 94,287 88,480

Income tax liability 3,586 4,567

Deferred income 38,056 28,906

Total current liabilities 244,780 203,842

--------------------------------------------------------------------------------

Non-current liabilities

-----------------------

--------------------------------------------------------------------------------

Interest bearing loans and borrowings (Note 9) 455,277 467,447

Derivatives (Note 6) 42,359 42,863

Other payables 0 192

--------------------------------------------------------------------------------

Total non-current liabilities 497,636 510,502

--------------------------------------------------------------------------------

TOTAL LIABILITIES 742,416 714,344

--------------------------------------------------------------------------------

EQUITY

--------------------------------------------------------------------------------

Equity attributable to equity holders of the parent

--------------------------------------------------------------------------------

Share capital 404,290 404,290

Share premium 639 639

Reserves 65,025 65,083

Retained earnings 342,383 354,410

--------------------------------------------------------------------------------

Total equity attributable to equity holders of the 812,337 824,422

parent

--------------------------------------------------------------------------------

TOTAL EQUITY 812,337 824,422

--------------------------------------------------------------------------------

TOTAL LIABILITIES AND EQUITY 1,554,753 1,538,766

--------------------------------------------------------------------------------

CONSOLIDATED CASH FLOW STATEMENT

(unaudited, in thousands of euros) 01.01.2016- 01.01.2015-

31.03.2016 31.03.2015

Cash flows from operating activities

Net profit/-loss for the period -12,027 -13,346

Adjustments 28,192 33,028

Changes in receivables and prepayments related to -5,756 -4,811

operating activities

Changes in inventories -7,309 2,528

Changes in liabilities related to operating activities 13,719 336

Income tax paid -160 -33

--------------------------------------------------------------------------------

16,659 17,702

--------------------------------------------------------------------------------

-------------------------------------------------------

Cash flow from/used in investing activities

Purchase of property, plant and equipment and -12,709 -3,612

intangible assets (Notes 7, 8, 9)

Proceeds from disposals of property, plant and 134 12

equipment

Interest received 18 22

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-12,557 -3,578

--------------------------------------------------------------------------------

-------------------------------------------------------

Cash flows used in financing activities

Repayment of loans (Note 9) -14,728 -15,024

Change in overdraft (Note 9) 26,963 10,049

Payment of finance lease liabilities (Note 9) -24 -20

Interest paid -5,550 -6,745

Payments for settlement of derivatives -1,021 -1,419

5,640 -13,159

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TOTAL NET CASH FLOW 9,742 965

--------------------------------------------------------------------------------

------------------------------------------------------- ------------

Cash and cash equivalents:

- at the beginning of period 81,976 65,311

- increase (+) / decrease (-) 9,742 965

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- at the end of period 91,718 66,276

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Veiko Haavapuu

Finance Director

AS Tallink Grupp

Sadama 5/7. 10111 Tallinn

Tel. +372 640 9914

E-mail [email protected]

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AS Tallink Grupp Unaudited Consolidated Interim Report Q1 2016

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