Tallink Grupp

12 months unaudited results of the 2013 financial year

Tallinn, 2014-02-27 15:35 CET (GLOBE NEWSWIRE) --

12 months unaudited results of the 2013 financial year

AS Tallink Grupp and its subsidiaries (the Group) carried a total of 9.11

million passengers in the 2013 financial year which is 1.6% less than the year

before. The Group?s unaudited consolidated revenue remained on the previous

year?s level with EUR 942.0 million. Gross profit was EUR 190.2 million, EBITDA

EUR 156.2 million. Unaudited net profit amounted to EUR 43.3 million or EUR

0.06 per share, which is a 23.1% decrease compared to the previous year.

In the fourth quarter (1 October - 31 December) of the 2013 financial year the

Group carried 2.1 million passengers, 1% more compared to the same period last

year. The Group?s consolidated revenue amounted to EUR 224.0 million, EUR 1.2

million more compared to the same period last year. The Group?s EBITDA amounted

to EUR 29.8 million, 7.1% less compared to the same period last year. The

unaudited net profit for the fourth quarter increased by 31.8% to EUR 7.5

million.

The 2013 financial year ticket and cargo sales showed a 3.4% and 2.7% increase

respectively. Due to the decline in the passenger numbers on the Finland-Sweden

routes caused by increased competition and structural changes the shop and

restaurant sales experienced a 2.0% decline. Although there was a slight

decrease in shop and restaurant sales, spending per passenger stayed on last

year?s level. As a result of upgrading the fleet growth continued on the

Riga-Stockholm route in the 2013 financial year, showing an 8.4% increase in

revenue and the result for the financial year was positive for the first time

since the route was opened in 2006.

During the 2013 financial year the Group?s operations were affected by an

overall weak macroeconomic environment in the region. The Nordic countries

which are the Group?s main markets continue to experience noticeable slowdown

in their economies and there is an impact to the Group?s passengers? spending

behaviour. Net profit was also affected by a tax expense of EUR 3.8 million.

The lower fuel price levels throughout the year had a positive effect on the

2013 results, the Group?s overall fuel cost was circa 10% or EUR 14 million

lower compared to the same period last year. Meanwhile there was raise in the

ships operating costs and port fees.

The Group was successful in generating a higher cash flow from operating

activities both in the fourth quarter and for the twelve months 48.4 million

and 168.4 million respectively compared to the same period last year. The total

liquidity, cash and unused credit facilities at the end of the fourth quarter

were EUR 104 million providing a strong position for sustainable operations. At

the end of the fourth quarter 2013 the Group had EUR 72 million in cash and

equivalents and the total of unused credit lines were at EUR 32 million.

The Group successfully continued the deleveraging strategy and the net debt

decreased by EUR 52 million to a total of EUR 722 million in the 2013 financial

year.

The 2013 financial year result did not meet the management?s expectations. Due

to adverse macroeconomic developments in the region and the increased

competition on Finland-Sweden routes the results for this year did not reach

the previous year?s level. With an aim to increase revenue generation

improvements in product development are being made, emphasis is on retail sales

and upgrades to the public areas on selected vessels. Cost reductions in some

areas are processed in order to adapt with the changed economic environment.

The management expects an improvement in the results for the 2014 financial

year.

In management?s opinion, the Group?s financial position allows the Group to pay

dividends. Management will propose to the shareholders? general meeting a

dividend distribution of EUR 0.03 per share, i.e. EUR 20,096,461 in aggregate.

Q4 KEY FIGURES 2013 2012 Change

Oct-Dec Oct-Dec

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

Revenue EUR million 224.0 222.8 0.5%

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Gross profit EUR million 37.1 40.0 -7.1%

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Gross margin (%) 16.6% 17.9%

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

EBITDA EUR million 29.8 32.1 -7.1%

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EBITDA margin (%) 13.3% 14.4%

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

Net profit for the EUR million 7.5 5.7 31.8%

period

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

Net profit margin (%) 3.36% 2.56%

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

Depreciation and EUR million 18.6 17.9 4.0%

amortization

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

Investments EUR million 5.0 0.6 800.0%

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

Weighted average number of ordinary shares 669 882 040 669 882 040

outstanding

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Earnings per share EUR 0.01 0.01 31.8%

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Number of passengers 2 148 204 2 133 163 0.7%

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Number of cargo units 78 771 70 457 6.2%

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Average number of 6 898 6 799 1.5%

employees

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

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

31.12.2013 30.09.2013

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Total assets EUR million 1 722.1 1 723.1 -0.1%

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

Interest-bearing EUR million 794.3 808.1 -1.7%

liabilities

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

Net debt EUR million 722.3 758.1 -4.7%

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

Total equity EUR million 771.1 763.4 1.0%

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

Equity ratio (%) 44.8% 44.3%

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

Net debt to EBITDA 4.6 4.8

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Number of ordinary 669 882 040 669 882 040 0%

shares outstanding1

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

Shareholders? equity per EUR 1.15 1.14 1.0%

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

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 01.10.2013- 01.10.2012- 01.01.2013- 01.01.2012-

EUR)

31.12.2013 31.12.2012 31.12.2013 31.12.2012

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

Revenue 223,982 222,816 941,983 943,868

Cost of sales -186,859 -182,836 -751,827 -742,669

Gross profit 37,123 39,980 190,156 201,199

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

Marketing expenses -13,650 -17,183 -63,292 -65,407

Administrative expenses -12,679 -10,626 -45,148 -44,081

Other income 1,035 2,806 2,120 3,659

Other expenses -664 -802 -805 -1,654

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

Results from operating 11,165 14,175 83,031 93,716

activities

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Finance income 5,757 2,735 21,547 5,269

Finance costs -14,538 -13,991 -57,503 -46,249

Profit from the sale of a 0 0 0 783

subsidiary

Share of profit/-loss from 17 19 17 19

equity accounted investees

Profit/-loss before income 2,401 2,938 47,092 53,538

tax

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

Income tax 5,117 2,764 -3,786 2,764

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

Net profit/-loss for the 7,518 5,702 43,306 56,302

period

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

Other comprehensive

income/-expense

Exchange differences on 34 -442 114 -563

translating foreign

operations

Other comprehensive 34 -442 114 -563

income/-expense for the

period

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

Total comprehensive 7,552 5,260 43,420 55,739

income/-expense for the

period

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

Profit/-loss attributable

to:

Equity holders of the 7,518 5,702 43,306 56,302

parent

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

Total comprehensive

income/-expense

attributable to:

Equity holders of the 7,552 5,260 43,420 55,739

parent

Earnings per share (in EUR

per share)

- basic 0.01 0.01 0.06 0.08

- diluted 0.01 0.01 0.06 0.08

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

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(unaudited, in thousands of EUR)

ASSETS 31.12.2013 31.12.2012

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

Current assets

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

Cash and cash equivalents 72,012 65,600

Trade and other receivables 40,608 42,555

Prepayments 3,121 5,151

Derivatives 679 0

Inventories 33,457 29,426

Total current assets 149,877 142,732

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Non-current assets

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

Investments in equity-accounted investees 262 245

Other financial assets 385 296

Deferred income tax assets 17,413 12,264

Investment property 300 300

Property, plant and equipment 1,495,895 1,526,995

Intangible assets 57,925 58,999

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

Total non-current assets 1,572,180 1,599,099

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

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

TOTAL ASSETS 1,722,057 1,741,831

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

LIABILITIES AND EQUITY

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

Current liabilities

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

Interest bearing loans and borrowings 106,014 103,685

Trade and other payables 97,387 92,988

Deferred income 28,315 25,458

Derivatives 30,888 22,102

Total current liabilities 262,604 244,233

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

Non-current liabilities

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

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

Interest bearing loans and borrowings 688,327 736,699

Other liabilities 63 69

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

Total non-current liabilities 688,390 736,768

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

TOTAL LIABILITIES 950,994 981,001

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

EQUITY

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

Equity attributable to equity holders of the parent

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

Share capital 404,290 404,290

Share premium 639 639

Reserves 70,262 69,091

Retained earnings 295,872 286,810

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

Total equity attributable to equity holders of the 771,063 760,830

parent

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

TOTAL EQUITY 771,063 760,830

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

TOTAL LIABILITIES AND EQUITY 1,722,057 1,741,831

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CONSOLIDATED CASH FLOW STATEMENT

(unaudited, in thousands of EUR) 01.01.2013 - 01.01.2012-

31.12.2013 31.12.2012

Cash flows from operating activities

Net profit/-loss for the period 43,306 56,302

Adjustments 118,619 109,768

Changes in assets related to operating activities 198 -9,796

Changes in liabilities related to operating 6,649 6,782

activities

Income tax paid -378 -40

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168,394 163,016

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Cash flow used for investing activities

Purchase of property, plant and equipment and -43,291 -9,449

intangible assets

Proceeds from disposals of property, plant and 1,318 50

equipment

Proceeds from subsidiaries 0 1,992

Payments for settlement of derivatives -4,451 -3,976

Acquisition of other investments 0 -34

Interest received 114 297

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-46,310 -11,120

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

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

Cash flow from (+)/ used for (-) financing activities

Proceeds from loans 24,000 440,000

Redemption of loans -198,126 -557,848

Change in overdraft 18,456 0

Proceeds from bonds 115,487 0

Repayment of finance lease liabilities -96 -56

Interest paid -32,439 -36,434

Payment of transaction costs related to loans -557 -7,379

Dividends paid -33,494 0

Income tax on dividends paid -8,903 0

-115,672 -161,717

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TOTAL NET CASH FLOW 6,412 -9,821

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

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

Cash and cash equivalents:

- at the beginning of period 65,600 75,421

- increase (+) / decrease (-) 6,412 -9,821

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Cash and cash equivalents at the end of period 72,012 65,600

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Harri Hanschmidt

Head of the Financial Department

AS Tallink Grupp

Sadama 5/7. 10111 Tallinn

Tel +372 640 8981

E-mail [email protected]

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12 months unaudited results of the 2013 financial year

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