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Tallink Grupp

Earnings Release Mar 17, 2015

2225_iss_2015-03-17_db804818-5ce2-4bfa-af27-47a9478f0be6.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] March 2015 Investor Relations | E-mail: [email protected] | Phone: +372 640 8981

We operate 6 routes

Our fleet consists of 18 ice class ships and has a value of 1.5 billion EUR

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 pur-
  • sue new growth opportunities
  • 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, unaudited

Silja Line
established
Tallink founded One vessel Management
buyout
Private
placement
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 0.06 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

Kadri Land Member of the Management Board

Skandinaviska Enskilda Banken Finnish Clients 1% Nordea Bank Finland PLC / non-resident legal entities % ING Luxemburg S.A. 7% Baltic Cruises Holding 17% Skandinaviska Enskilda Banken S.A. 2% State Street Bank and Trust Omnibus fund 2% JP Morgan Chase London Clients account, Vanguard Marketing Corporation 1% Firebird Republics fund Ltd. 1% Luksusjaht AS 1%

Tallink has been a leading stock on the Baltic market in liquidity, market capitalization and has a retail shareholder base over 11 000 shareholders

Source: Generation Research 2014

1 Stena Line 878 919 Sales> US\$ 1,000.0 million
1 Tallink 24 428 Sales> US\$ 800.0 million
4 Tirrenia 10 442 Sales> US\$ 600.0 million
2 Stena Line 1 090 Sales> US\$ 300.0 million
Source: ShipPax MARKET: 14

83.3 83.6 84.3 81.3

33.3 30.5 31.7 29.7

50.0 53.1 52.6 51.6

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0

Ticket

Onboard

Total

2011

High season

2012 2013 2014

Segment result by routes 2014 Ownership & Management

Quarterly seasonality

Financials Share price development

Passenger revenue

Ferry operator by gross tons The world's top duty free & travel retail shops 2013 Rank Company Gross tons Rank Location Remarks

1 Stena Line 878 919 Sales> US\$ 1,000.0 million
2 Grimaldi Lines 750 089 1 Dubai International Airport, U.A.E. AIRPORT SHOPS
3 Tallink 537 232 2 Seoul - Incheon Int'l Airport AIRPORT SHOPS
4 P&O Ferries 436 092 3 Singapore - Changi Airport AIRPORT SHOPS
5 Scandlines 363 341 4 London - Heathrow Airport / All Shops, UK AIRPORT SHOPS
Ferry operator by beds 5 Bangkok - Suvarnabhumi Airport, Thailand AIRPORT SHOPS
Rank Company Beds 6 Hong Kong - Hong Kong International Airport AIRPORT SHOPS
1 Tallink 24 428 Sales> US\$ 800.0 million
2 Viking Line 16 562 7 Shanghai - Pudong Airport, China P.R. AIRPORT SHOPS
3 Stena Line 15 619 8 Beijing - Capital Airport, China P.R AIRPORT SHOPS
4 Tirrenia 10 442 Sales> US\$ 600.0 million
5 Grand Navi Veloci
10 434
9 Paris - Charles de Gaulle Airport, France AIRPORT SHOPS
Ferry operator by revenues (mEUR) 10 Frankfurt – Frankfurt-Main Airport, Germany AIRPORT SHOPS
Rank Company Revenue 11 Tallink/Silja Line FERRIES
1 DFDS Group 1 625 12 Taipei - Taoyuan International Airport, Taiwan AIRPORT SHOPS
2 Stena Line 1 090 Sales> US\$ 300.0 million
3 Tallink 942 13 Sao Paulo - Guarulhos Int'l Airport AIRPORT SHOPS
4 Scandlines 564 14 Amsterdam - Schipol Airport, Netherlands AIRPORT SHOPS

Passengers Cargo units Revenue EBITDA 27 30 78 0 50 100 150 145 68 67 73 67 77 54 76 72 80 79 69 70 69 76 77 67 71 70 79 78 0 100 200 300 09/10 2011 2012 2013 2014 259 283 Thousand units 284 302 310 1.8 2.0 2.0 1.9 1.9 1.6 2.3 2.4 2.4 2.4 2.2 2.7 2.8 2.7 2.6 2.8 2.1 2.1 2.1 2.1 0 1 2 3 4 5 6 7 8 9 10 09/10 2011 2012 2013 2014 8.4 9.1 9.3 9.1 8.9 Million 181 183 194 191 188 158 238 245 249 246 202 272 282 278 263 272 214 223 224 224 0 200 400 600 800 814 908 Million EUR 944 921 942

5 Finnlines 505 15 Oslo - Gardermoen Airport AIRPORT SHOPS

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