Tallink Grupp — AGM Information 2015

Jun 9, 2015

Annual General Meeting

1. June 2015

2. 1. Approval of the Annual Report of 01.01.2014 - 31.12.2014 of AS Tallink Grupp

3. 2. Distribution of profits
4. 3. Nomination of an auditor and determination of the procedure of remuneration of an auditor
5. 4. Approval of the Share Option Program of AS Tallink Grupp
6. 5. Amending the Articles of Association
7. 6. Authorizing the acquisition of own shares

Tallink today

17 ships

10 in core passenger operations

• 2 dedicated for cargo service
• 1 to be sold soon
• 4 chartered out

6654 employees

4525 on the sea 608 in hotels 1521 onshore organisation

8.9 million passengers

921 million EUR revenue 27 million EUR profit

Our position in the global ferry market Operators by Gross Tons

Rank	Company	Gross tons
1	Stena Line	878 919
2	Grimaldi Lines	750 089
3	Tallink Grupp	537 232
4	P&O Ferries	436 092
5	Scandlines	363 341

Operators by revenue (2013)

Rank	Company	Revenue (mEuro)
1	DFDS Group	1 625,0
2	Stena Line	1090,0
3	Tallink Grupp	942,0
4	Scandlines	564,0
5	Finnlines	505,0

Data: Ro/pax / ferries above 1,000 GT Source: ShipPax MARKET:14

Operators by beds

Rank	Company	Beds
1	Tallink Grupp	24 428
2	Stena Line	15 619
3	Tirrenia	10 442
4	Viking Line	16 562
5	Grandi Navi Veloci	10 434

Fundamentals for new growth

Travel & leisure industry

Growth golobally Growth in Europe Growth in Nordic Growth in domestic travel

Demographics

Ageing population more people have free time

Disposable income

Growth in all countries More spend devoted for free time

Retail sales

Deflation, but continuous growth in total retail spending

External factors

Land based competition

New ways to spend free time New business concepts New restaurants shops etc.

Direct competition

Pricing Investments

Geopolitical situation

Decline of Russian passengers

Economy

No GDP growth

The main goals of the strategy that is directed toward increasing Tallink's value and profitability:

• Increase the volumes and strengthen the market position in the region
• Strive for the highest level of customer satisfaction
• Develop a wide range of quality services for different customers and to pursue new growth opportunities
• Cost efficient operating
• Optimal debt level that allows sustainable dividends

Tallink's passenger market share is 46% of the Northern Baltic Sea

• Increase in cargo volumes
• Decrease of passenger numbers
• Weak economic environment in the region
• Changed competitive landscape
• Upgrades of vessels
• Additional charters
• Re-routing of vessels
• Drop in fuel prices at the end of the year
• Continuous debt reduction

Results of the 2014 financial year

Results of the 2014 financial year

			+ Drop in fuel prices + Silja Europa charter effect + Lower costs
Q1	Q2	Q3	Q4
-Silja Serenade upgrade works -Maintenance of vessels	-Repairworks Baltic Princess, Galaxy and Star -Isabelle maintenance	-Ship re-routings -Isabelle continus as a single vessel on the Latvia-Sweden route
	-Geopolitical events	- Drop of passengers - Silja Symphony	from Russia upgrade works

	EUR million	2013	2014
Cash flows from operating activities		168	151
Investments		-43	-49
New loans		158	44
Redemption of loans		198	94
Dividends		33	20
Total net cash flow		6	(7)
Cash at the end of period		72	65

Results of the 2014 financial year

Financial position	31.12.2013	31.12.2014	change
Assets (EUR million)	1 722	1 686	-2.1%	1500	Cash Other assets	Other liabilities
Intrest bearing liabilities (EUR million)	794	743	-6.4%			Share holders
				1000		equity
Shareholder's equity (EUR million)	771	771	0.9%
				500
Shareholder's equity per share					Ships	Loans
	1,15	1,16	0.9%
Equity ratio	45%	46%		0	Assets	Liabilities & Equity

Shareholders' equity per share

Net Debt Net Debt/EBITDA

The net debt of Tallink has decresed by over EUR 500 million since the peak of 2009

• 1. Approval of the Annual Report of 01.01.2014 - 31.12.2014 of AS Tallink Grupp.
• 2. Distribution of profits.
• 3. Nomination of an auditor and determination of the procedure of remuneration of an auditor.
• 4. Approval of the Share Option Program of AS Tallink Grupp.
• 5. Amending the Articles of Association.

• 6. Authorizing the acquisition of own shares.

• 1. Approval of the Annual Report of 01.01.2014 - 31.12.2014 of AS Tallink Grupp.

• 2. Distribution of profits.
• 3. Nomination of an auditor and determination of the procedure of remuneration of an auditor.
• 4. Approval of the Share Option Program of AS Tallink Grupp.
• 5. Amending the Articles of Association.

• 6. Authorizing the acquisition of own shares.

• 1. Approval of the Annual Report of 01.01.2014 - 31.12.2014 of AS Tallink Grupp.

• 2. Distribution of profits.
• 3. Nomination of an auditor and determination of the procedure of remuneration of an auditor.
• 4. Approval of the Share Option Program of AS Tallink Grupp.
• 5. Amending the Articles of Association.
• 6. Authorizing the acquisition of own shares.

		Q1 2014	Q1 2015	Change
Number of passengers	thousand	1 906	1 793	-5.9%
Cargo Units	thousand	77	75	-2.1%
Net Sales	(EUR million)	188	190	1.0%
EBITDA	(EUR million)	4	19	335.0%
Net profit/-loss	(EUR million)	-23	-13

		Q1 2014	Q1 2015	Change
Cash flows from operating activities	(EUR million)	-1.5	18
Investments	(EUR million)	14.1	4	-744.2%
Redemption of loans	(EUR million)	-15	5
Cash at the end of period	(EUR million)	63	66	5.9%
Net debt (as of the end of the 1st quarter)	(EUR million)	749	675	-4.8%

The dynamics of high seasonality on the profit level Net result by quarters

Typical to the Tallink business model the result is made in the summer high season

Cash outflow 2014

• + -
• Cashflow from operations
• Sale of Regina Baltica
• Sale of Silja Festival

• Credit lines

• New vessel downpayments EUR 23 million

• Capital expenditure and maintenance
• Scheduled loan re-payments EUR 90 million
• Interest
• Dividends

New LNG vessel

• Increase volumes and strengthen the market position
• Increase customer satisfaction
• Offer a wide range of quality services and develop new growth opportunities

The vessel will be ready in 2017

Cost of the vessel is EUR 230 million

Financed 80% with bank loan upon delivery of the vessel

• 1. Approval of the Annual Report of 01.01.2014 - 31.12.2014 of AS Tallink Grupp.
• 2. Distribution of profits.
• 3. Nomination of an auditor and determination of the procedure of remuneration of an auditor.
• 4. Approval of the Share Option Program of AS Tallink Grupp.
• 5. Amending the Articles of Association.

• 6. Authorizing the acquisition of own shares.

• 1. Approval of the Annual Report of 01.01.2014 - 31.12.2014 of AS Tallink Grupp.

• 2. Distribution of profits.
• 3. Nomination of an auditor and determination of the procedure of remuneration of an auditor.
• 4. Approval of the Share Option Program of AS Tallink Grupp.
• 5. Amending the Articles of Association.

• 6. Authorizing the acquisition of own shares.

• 1. Approval of the Annual Report of 01.01.2014 - 31.12.2014 of AS Tallink Grupp.

• 2. Distribution of profits.
• 3. Nomination of an auditor and determination of the procedure of remuneration of an auditor.
• 4. Approval of the Share Option Program of AS Tallink Grupp.
• 5. Amending the Articles of Association.

• 6. Authorizing the acquisition of own shares.

• 1. Approval of the Annual Report of 01.01.2014 - 31.12.2014 of AS Tallink Grupp.

• 2. Distribution of profits.
• 3. Nomination of an auditor and determination of the procedure of remuneration of an auditor.
• 4. Approval of the Share Option Program of AS Tallink Grupp.
• 5. Amending the Articles of Association.
• 6. Authorizing the acquisition of own shares.