Tallink Grupp

AS Tallink Grupp Unaudited Consolidated Interim Report Q1 2015

Tallinn, 2015-05-14 08:50 CEST (GLOBE NEWSWIRE) --

AS Tallink Grupp Unaudited Consolidated Interim Report Q1 2015

In the first quarter (1 January- 31 March) of the 2015 financial year AS

Tallink Grupp and its subsidiaries? (the Group) carried nearly 1.8 million

passengers which is 5.9% less compared to the same period last year. The

Group?s unaudited revenue for the first quarter of 2015 increased by EUR 1.9

million or 1.0% year on year to the total of EUR 190.2 million, EBITDA

increased by EUR 15.0 million or 335.0% to the total of EUR 19.5 million,

compared to the same period last year.The Group made various changes to the

operations during the past year and these affected the first quarter with

decreased passenger volumes but increased revenue and profitability. The

reduction of operating costs from the measures taken has the highest effect to

the first quarter profitability, which is also the low season.

In the first quarter the Estonia-Finland route showed positive developments

with revenue increasing by 2.7% driven by a 21.3% growth in cargo units. The

increase to the cargo volume was partly from Sea Wind switching from the

Finland-Sweden routes to the Estonia-Finland route. The Estonia-Sweden route,

where capacity is lower than last year, experienced a 9.9% decrease in

passengers and a 10.4% decrease in cargo volumes. The Latvia-Sweden route

showed a decline with passenger?s numbers decreasing by 41.2%, cargo units

transported decreased by 59.6%, passenger vehicles transported decreased by

33.0% and the sales decreased by 39.4%. The decline in passenger and cargo

volumes on the Latvia-Sweden route is due to Isabelle operating as the only

vessel on the route since the beginning of August 2014.Throughout the first

quarter price pressure from competitors remained visible on all routes. The

passenger volumes have been affected by the drop of Russian passengers since

the second quarter last year and has continued to this date.

In the first quarter altogether 6 vessels were chartered out. Due to the

increased number of chartered vessels the revenue from charters increased by

EUR 7.3 million or 85.9% to the total of EUR 15.7 million. Two of the vessels

Silja Festival and Regina Baltic are to be sold in the second quarter of the

2015 financial year.

The upgrades of the public areas and improvements to restaurant and shop

concept throughout the fleet combined with the operational changes have

resulted in a 3.5% increase in on-board revenue per passenger. Due to the

changes in operations the segment result improved on all segments and was EUR

14.9 million higher than in the same period last year.

In the first quarter of the 2015 financial year the Group?s gross profit

amounted to EUR 26.1 million and EBITDA to EUR 19.5 million being respectively

EUR 14.3 million and EUR 15.0 million more compared to the same period last

year. The increase in the Group?s results is mainly attributed to the decreased

costs related to operations.

The unaudited net loss for the first quarter of the 2015 financial year was EUR

13.3 million or EUR 0.02 per share compared to the net loss of EUR 23.4 million

or EUR 0.03 per share in the same period last year.

Cash flow from operations increased by EUR 19.2 million when compared to the

same period last year.The total liquidity, cash and unused credit facilities at

the end of the first quarter were EUR 68.8 million providing a strong position

for sustainable operations. At the end of the first quarter 2015 the Group had

EUR 66.3 million in cash and equivalents and the total of unused credit lines

were at EUR 2.5 million.

Q1 KEY FIGURES 2015 2014 Change

Jan-Mar Jan-Mar

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Revenue EUR million 190.2 188.2 1.0%

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Gross profit EUR million 26.1 11.8 121.5%

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Gross margin (%) 13.7% 6.3%

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EBITDA EUR million 19.5 4.5 335.0%

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EBITDA margin (%) 10.2% 2.4%

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Net profit for the EUR million -13.3 -23.4 42.9%

period

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Net profit margin (%) -7.0% -12.4%

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Depreciation and EUR million 20.4 19.7 3.4%

amortization

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Investments EUR million 3.6 14.1 74.4%

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

outstanding

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Earnings per share EUR -0.02 -0.03 42.9%

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Number of passengers 1 793 414 1 905 555 -5.9%

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Number of cargo units 75 172 76 791 -2.1%

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Average number of 6 642 6 867 -3.3%

employees

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

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

31.03.2015 31.12.2014

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Total assets EUR million 1 674.5 1 685.6 -0.7%

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Interest-bearing EUR million 742.9 743.4 -0.1%

liabilities

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Net debt EUR million 676.6 678.1 -0.2%

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Total equity EUR million 764.9 778.3 -1.7%

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

Equity ratio (%) 46.2% 45.7%

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Net debt to EBITDA 4.1 4.5

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Number of ordinary 669 882 040 669 882 040 0%

shares outstanding1

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Shareholders? equity per EUR 1.14 1.16 -1.7%

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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) 01.01.2015- 01.01.2014-

31.03.2015 31.03.2014

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

Revenue 190,153 188,206

Cost of sales -164,049 -176,419

Gross profit 26,104 11,787

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Marketing expenses -15,235 -15,798

Administrative expenses -11,715 -11,389

Other income 123 213

Other expenses -191 -48

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Result from operating activities -914 -15,235

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Finance income 5,676 3,316

Finance costs -16,608 -11,445

Profit/-loss before income tax -11,846 -23,364

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

Income tax -1,500 -10

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

Net profit/-loss for the period -13,346 -23,374

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Other comprehensive income/-expense

Items that may be reclassified to profit or loss

Exchange differences on translating foreign operations -82 59

Other comprehensive income/-expense for the period -82 59

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Total comprehensive income/-expense for the period -13,428 -23,315

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

Earnings per share (in EUR per share)

- basic -0.020 -0.035

- diluted -0.020 -0.035

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

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(unaudited, in thousands of euros)

ASSETS 31.03.2015 31.12.2014

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

Current assets

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Cash and cash equivalents 66,276 65,311

Trade and other receivables 38,333 38,210

Prepayments 12,497 5,448

Inventories 28,787 31,315

Total current assets 145,893 140,284

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Non-current assets

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Investments in equity-accounted investees 286 286

Other financial assets 331 252

Deferred income tax assets 21,338 21,338

Investment property 300 300

Property, plant and equipment 1,452,130 1,467,964

Intangible assets 54,247 55,174

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Total non-current assets 1,528,632 1,545,314

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TOTAL ASSETS 1,674,525 1,685,598

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LIABILITIES AND EQUITY

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

Current liabilities

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Interest bearing loans and borrowings 159,899 149,850

Trade and other payables 89,187 91,236

Income tax liability 2,800 1,300

Deferred income 34,723 29,408

Derivatives 39,959 41,982

Total current liabilities 326,568 313,776

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Non-current liabilities

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

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

Interest bearing loans and borrowings 583,019 593,532

Total non-current liabilities 583,019 593,532

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

TOTAL LIABILITIES 909,587 907,308

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EQUITY

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Equity attributable to equity holders of the parent

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

Share capital 404,290 404,290

Share premium 639 639

Reserves 70,123 70,129

Retained earnings 289,886 303,232

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Total equity attributable to equity holders of the 764,938 778,290

parent

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TOTAL EQUITY 764,938 778,290

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TOTAL LIABILITIES AND EQUITY 1,674,525 1,685,598

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CONSOLIDATED CASH FLOW STATEMENT

(unaudited, in thousands of euros) 01.01.2015 - 01.01.2014-

31.03.2015 31.03.2014

Cash flows from operating activities

Net profit/-loss for the period -13,346 -23,374

Adjustments 33,028 28,461

Changes in receivables and prepayments related to -4,811 -8,512

operating activities

Changes in inventories 2,528 3,302

Changes in liabilities related to operating 336 -1,391

activities

Income tax paid -33 -15

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17,702 -1,529

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Cash flow used in investing activities

Purchase of property, plant and equipment and -3,612 -14,121

intangible assets

Proceeds from disposals of property, plant and 12 97

equipment

Interest received 22 4

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-3,578 -14,020

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Cash flow used in financing activities

Repayment of loans -15,024 -15,024

Change in overdraft 10,049 30,003

Payment of finance lease liabilities -20 -70

Interest paid -6,745 -7,783

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

-13,159 6,105

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TOTAL NET CASH FLOW 965 -9,444

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Cash and cash equivalents:

- at the beginning of period 65,311 72,012

- increase (+) / decrease (-) 965 -9,444

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- at the end of period 66,276 62,568

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Harri Hanschmidt

Head of the Finance Department

AS Tallink Grupp

Sadama 5/7. 10111 Tallinn

Tel +372 640 8981

E-mail [email protected]

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AS Tallink Grupp Unaudited Consolidated Interim Report Q1 2015

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