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Tallink Grupp

Earnings Release Aug 26, 2015

2225_iss_2015-08-26_96c4c6c0-42b3-4c22-9958-bd5d638cfd39.pdf

Earnings Release

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AS Tallink Grupp | Sadama 5/7 | Reg. Nr.:10238429 | Phone: +372 640 9800 | Fax: +372 640 9810 | E-mail: [email protected] August 2015 Investor Relations | E-mail: [email protected] | Phone: +372 640 9914

We operate 6 routes

Our fleet consists of 16 ice class ships and has a value of EUR 1.4 billion

Tallinn Tallinn Riga

60% of the hotel guests arrive with Tallink ships

Tallink is the leading short cruise and ferry operator

Tallink's vision is to be the market pioneer in Europe by offering excellence in leisure and business travel and sea transportation services

Long term objectives toward increasing the company value and profitability:

The passenger market share of Tallink is 46% in the northern Baltic Sea Amsterdam Brussels Warsaw

  • Strive for the highest level of customer satisfaction
  • Increase volumes and strengthen the leading position on our home markets
  • Develop a wide range of quality services directed to different customers and pursue new growth opportunities
  • Ensure cost efficient operations
  • Manage the optimal debt level that will allow sustainable dividends

Current focus is on core operations to realize past investments. Along with the optimal fleet deployment the emphasis is on the profitability improvement and deleveraging.

Current strategic cornerstones and competitive advantages:

Key points

Key information 2014

Silja Line
established
Tallink
founded
One vessel Management
buyout
Private place- ment IPO Rights Issue Over 1.3 billion euros invested
during the fleet investment
program
Tallink Hotel
Riga
History 1883 1910 1928 1957 1965 1989 1990 1996 2001 2002 2003 2004 2005 2006 2008 2009 2010 2011 2014
Finnish
Steamship
Co founded
Service between
Turku &
Stockholm
Service between
Helsinki &
Stockholm
Tallinn-Helsinki
route
166 th
passengers
Tallinn-Stockholm
route
First newbuilt
cruise ferry
Hotel
operation
starts
Tallink and Silja
Line merged
7M passengers
reached
8M passengers reached 9M passengers 1.3M
Club One members
1.7M Club One
members
Passengers 8 881 732 P/E 2 1
Sales 921 mil EUR ROA 4.1%
EBITDA 151 mil EUR ROE 3.6%
Net Profit 27 mil EUR Equity Ratio 46%
Average number of employees 6 952 EBITDA Margin 16%
EPS 0.04 Book value per share 1.16 EUR

Tallink City Rooms: 332 Conference Nightclub

Tallink Hotel Riga Rooms: 256 Conference GYM

Tallink Spa & Conference Rooms: 275 Aqua Spa

Pirita Top Spa Rooms: 267 Wellness & MediSPA National Heritage

Tallink Express Rooms: 163 Express Cafe

Corporate factsheet www.tallink.com

Janek Stalmeister Andres Hunt Lembit Kitter Kadri Land

Segment result by routes 2014 Ownership & Management

Quarterly seasonality

23%

Our position in the world

Share price development

EUR

Passenger revenue

EUR

Million EUR

214

0

200

400

600

800

908

Chairman of the Management Board, CEO Vice Chairman of the Management Board Member of the Management Board Member of the Management Board

Baltic Cruises Holding 17% Nordea Bank Finland PLC, clients 8% ING Luxemburg S.A. AIF account 4% ING Luxembourg client account 3% State Street Bank and Trust Omnibus fund NO OM01 2% JP Morgan Chase Bank 1% Firebird Republics fund Ltd. 1% Skandinaviska Enskilda Banken 1% Skandinaviska Enskilda Banken S.A. 1% The Bank of New York Mellon 1%

Tallink has been a leading stock on the Baltic market in liquidity, market capitalization and has

a retail shareholder base around 11 000 shareholders

Quarterly passenger spending, highs and lows

Infortar 36%

25%

The world's top duty free & travel retail shops 2014 Rank Location Sales> US\$ 1,000.0 million 1 Seoul – Incheon Int'l Airport, South Korea AIRPORT SHOPS

The world's top duty free & travel retail shops 2014
Rank Company Remarks
1 Stena Line 933 618
Grimaldi Lines 694 597 AIRPORT SHOPS
3 Tallink 466 960 AIRPORT SHOPS
4 P&O Ferries 409 659 AIRPORT SHOPS
5 Tirrenia 373 911 AIRPORT SHOPS
Ferry operator by beds AIRPORT SHOPS
Rank Company Beds AIRPORT SHOPS
1 Tallink 18 963 AIRPORT SHOPS
2 Stena Line 17 069
3 Viking Line 14 026 AIRPORT SHOPS
4 Grand Navi Veloci 13 680
5 Tirrenia 10 442 AIRPORT SHOPS
AIRPORT SHOPS
Rank Company Revenue
1 DFDS Group 1 714 FERRIES
2 Stena Line 1 340 AIRPORT SHOPS
Tallink 921
4 Finnlines 533 AIRPORT SHOPS
5 Viking Line 527 AIRPORT SHOPS
AIRPORT SHOPS
AIRPORT SHOPS
Source: Generation Research 2015
Ferry operator by gross tons
Gross tons
Ferry operator by revenues (EUR million)
Source: ShipPax MARKET: 15, Company reports
Rank Location
Sales> US\$ 1,000.0 million
1 Seoul – Incheon Int'l Airport, South Korea
2 Dubai – Dubai International Airport, U.A.E.
3 Singapore – Changi Airport
4 London – Heathrow Airport, UK
5 Hong Kong – Hong Kong International Airport
6 Shanghai – Pudong Airport, China P.R
7 Bangkok – Suvarnabhumi Airport, Thailand
Sales> US\$ 800.0 million
8 Paris – Charles de Gaulle Airport, France
Sales> US\$ 700.0 million
9 Beijing – Capital Airport, China P.R.
10 Frankfurt – Frankfurt-Main Airport, Germany
Sales> US\$ 600.0 million
11 Tallink/Silja Line
12 Taipei – Taoyuan International Airport, Taiwan
Sales> US\$ 500.0 million
13 Tokyo – Narita Airport, Japan
14 Sao Paulo – Guarulhos Int'l Airport, Brazil
15 Oslo – Gardermoen Airport, Norway
16 Amsterdam – Schipol Airport, Netherlands
2 Dubai – Dubai International Airport, U.A.E. AIRPORT SHOPS
3 Singapore – Changi Airport AIRPORT SHOPS
4 London – Heathrow Airport, UK AIRPORT SHOPS
5 Hong Kong – Hong Kong International Airport AIRPORT SHOPS
6 Shanghai – Pudong Airport, China P.R AIRPORT SHOPS
7 Bangkok – Suvarnabhumi Airport, Thailand AIRPORT SHOPS
Sales> US\$ 800.0 million
8 Paris – Charles de Gaulle Airport, France AIRPORT SHOPS
Sales> US\$ 700.0 million
9 Beijing – Capital Airport, China P.R. AIRPORT SHOPS
10 Frankfurt – Frankfurt-Main Airport, Germany AIRPORT SHOPS
Sales> US\$ 600.0 million
11 Tallink/Silja Line FERRIES
12 Taipei – Taoyuan International Airport, Taiwan AIRPORT SHOPS
Sales> US\$ 500.0 million
13 Tokyo – Narita Airport, Japan AIRPORT SHOPS
14 Sao Paulo – Guarulhos Int'l Airport, Brazil AIRPORT SHOPS

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