ANNUAL GENERAL MEETING
Y TALLINK
. . . . . . . . . . . . . . . . . . .
Friday's Mill
TALLINK Shuttle
- Approval of the Annual Report of the financial year 2017 of AS $\rightarrow$ Tallink Grupp
- Proposal on distribution of profits $\longrightarrow$
- Extension of authorities of the member of the supervisory board $\longrightarrow$
- Appointment of an auditor for the financial year 2018 and the $\rightarrow$ determination of the procedure of remuneration of an auditor
TALLINK GRUPP TODAY
| 14 SHIPS |
5 HOTELS |
7 291 EMPLOYEES |
9.8 MILLION
PASSENGERS |
11 in core passenger
$\bullet$
operations
2 dedicated to cargo
$\bullet$
service
1 chartered out
$\bullet$
9966 trips
$\bullet$ |
4 hotels in Tallinn
$\bullet$
1 hotel in Riga
$\bullet$
311 000 stays
$\bullet$ |
5114 on the sea
552 in hotels
1625 in onshore
organisation |
┿
4.6 million
$\bullet$
$\frac{1}{2} \sum_{i=1}^n \frac{1}{2} \sum_{j=1}^n \frac{1}{2} \sum_{j=1}^n \frac{1}{2} \sum_{j=1}^n \frac{1}{2} \sum_{j=1}^n \frac{1}{2} \sum_{j=1}^n \frac{1}{2} \sum_{j=1}^n \frac{1}{2} \sum_{j=1}^n \frac{1}{2} \sum_{j=1}^n \frac{1}{2} \sum_{j=1}^n \frac{1}{2} \sum_{j=1}^n \frac{1}{2} \sum_{j=1}^n \frac{1}{2} \sum_{j=1}^n \frac{1}{2} \sum_{j=$
1.9 million
$\bullet$
▚▙
1.1 million
$\bullet$
$\overline{\phantom{a}}$
0.4 million
$\bullet$
1.8 million other
countries |
47% PASSENGER MARKET SHARE OF THE NORTHERN BALTIC SEA
GROUP OF STRONG BRANDS
V TALLINK $\rightarrow$ EST-FIN, EST-SWE, LAT-SWE, cargo routes SILJA LINE $\mathbb{R}$ $\rightarrow$ FIN-SWE routes V TALLINK Hotels $\rightarrow$ Hotels in Tallinn and Riga $\mathbf{v} \sim \mathbf{CLUBONE}$ $\rightarrow$ Loyalty programme with 2.4 million members
WIDE RANGE OF DINING CONCEPTS ON OUR SHIPS OWN BRANDS AND INTERNATIONAL PREMIUM BRANDS
CORE RETAIL BRANDS ON-BOARD OUR SHIPS
In addition three ESPRIT brand stores in Tallinn and Tartu $\rightarrow$
OPERATORS BY GROSS TONS
| Company |
Gross tons |
|
|
| Stena Line |
1064790 |
|
|
| Grimaldi Lines |
701340 |
|
|
| Tallink |
512 817 |
|
|
| DFDS Seaways |
438 479 |
|
|
| P&O Ferries |
409 659 |
|
|
|
|
|
|
OPERATORS BY BEDS
|
Company |
Beds |
|
Tallink |
24 821 |
| $\overline{2}$ |
Stena Line |
16985 |
| 3 |
Viking Line |
14 0 26 |
| 4 |
Grand Navi Veloci |
13 3 28 |
| 5 |
Corsica ferries |
11 676 |
OPERATORS BY REVENUE (2017)
| Company |
|
Revenue
(mEuro) |
| 1 |
DFDS Group |
1925 |
| $\overline{2}$ |
Steng Line |
1322 |
| 3 |
Tallink |
967 |
| 4 |
Finnlines |
536 |
| 5 |
Viking Line |
523 |
Source: ShipPax MARKET:17, company reports
BUSINESS ENVIRONMENT
TRAVEL & LEISURE INDUSTRY
- Growth from new markets globally $\bullet$
- Growth in Europe and Nordics $\bullet$
- Growth in domestic travel $\bullet$
DEMOGRAPHICS
More people have free time
DISPOSABLE INCOME
- Growth in all countries $\bullet$
- More spend devoted to free time $\bullet$
RETAIL SALES
Modest inflation and continuous growth in $\bullet$ total retail spending
EXTERNAL FACTORS
LAND BASED COMPETITION
- New ways to spend free time $\bullet$
- New business concepts $\bullet$
- New restaurants, shops etc. $\bullet$
DIRECT COMPETITION
- Investments
- Changes in Tallinn-Helsinki route
GEOPOLITICAL SITUATION
- Free movement of travellers $\bullet$
- The number of passengers from Russia $\bullet$ remains low
- The number of Asian passengers continues $\bullet$ to grow
ECONOMY
Strong economies in all markets but $\bullet$ unfavourable tax changes
THE MAIN GOALS OF THE STRATEGY THAT IS DIRECTED TOWARD INCREASING TALLINK'S VALUE AND PROFITABILITY:
- Increase the volumes and strengthen the market $\rightarrow$ position in the region
- Cost efficient operations $\rightarrow$
- Strive for the highest level of customer satisfaction $\longrightarrow$
- Develop a wide range of quality services for different $\rightarrow$ customers and to pursue new growth opportunities
- Regular investments to improve and diversify the $\rightarrow$ service quality of the passenger area
- Optimal debt level that allows sustainable dividends $\rightarrow$
CAPITAL DISTRIBUTION
TALLINK GRUPP HAS MADE A TOTAL OF EUR 141 MILLION PAYMENTS FROM EQUITY TO SHAREHOLDERS IN THE PERIOD 2013-2017
DIVIDEND POLICY
- In May 2018, the Management Board of Tallink Grupp AS decided to raise the $\rightarrow$ minimum dividend rate by 50% to EUR 0.03 per share. The management board of Tallink Grupp AS states that the company is working to ensure that Tallink Grupp AS is a stable dividend payer and that the dividend paid to investors will increase over time.
- To the annual general meeting of 2018 the Management Board will propose a $\rightarrow$ dividend of EUR 0.03 per share from the net profit for 2017.
TALLINK GRUPP 2017
- All time high annual passenger number $\rightarrow$
- Strong growth of the cargo business $\rightarrow$
- New LNG fast ferry Megastar started on Tallinn Helsinki route $\rightarrow$
- New Helsinki passenger terminal taken into use $\rightarrow$
- Lower chartering revenues compared to last year $\rightarrow$
- Scheduled maintenances of five ships in Q1 $\rightarrow$
- Group-wide ship renovation program continues $\rightarrow$
- Increased competition on Tallinn Helsinki route $\rightarrow$
- Lower costs from termination of the fast ferry Superstar charter $\rightarrow$
- Effects from re-routing of vessels in December 2016 $\longrightarrow$
- One cruise ferry on Tallinn Helsinki route $\rightarrow$
- Two cruise ferries on Riga Stockholm route $\rightarrow$
- Sale of two Superfast vessels $\longrightarrow$
Tallink Grupp's passenger market share is 47% of the
Northern Baltic Sea
LNG SHUTTLE FERRY MEGASTAR DEVELOPMENT OF THE TALLINN-HELSINKI SHUTTLE SERVICE
SPECIFICATIONS
- Gross tonnage 49 000
- Length 212 meters
- Capacity 2 800 passengers $\bullet$
- Lane meters 3 600 $\bullet$
- Dual fuel engine
- Service speed 27 knots
- · Built in Meyer Turku Shipyard
LNG POWERED SHUTTLE FERRY MEGASTAR CARRIED MORE THAN 2 MILLION PASSENGERS DURING THE FIRST YEAR OF OPERATIONS ON THE TALLINN-HELSINKI SHUTTLE SERVICE
LNG SHUTTLE FERRY MEGASTAR A SAFER SHIP WITH A SMALLER ECOLOGICAL FOOTPRINT
TECHNICAL INNOVATIONS DELIVER IMPROVED SAFETY, HIGH ENERGY EFFICIENCY AND ENVIRONMENTAL SAVINGS
- Safe Return to Port (SRtP) compliant ship
- Dual fuel ship uses environmentally friendly LNG as main fuel
- LNG produces 25% less CO2, 85% less NOx and almost zero SOx and particles
- Improved ship hull hydrodynamics enable very low hull resistance and high propulsion efficiency to further minimise fuel consumption and emissions
- Ship's Green Passport improved waste management and recycling
The Shippax Technology and Design Award 2017 was given to Megastar for being the world's most advanced ro-pax ferry
MEGASTAR COMPLIES WITH THE CURRENT AND KNOWN FUTURE EMISSION REGULATIONS FOR THE EMISSION CONTROL AREAS, INCLUDING THE BALTIC SEA
PASSENGERS (MILLIONS)
| Income statement |
2016 |
2017 |
|
|
|
|
|
| Revenue (EUR million) |
938 |
967 |
|
| Gross profit (EUR million) |
193 |
195 |
|
| EBITDA (1) (EUR million) |
149 |
158 |
|
| Net profit/-loss (EUR million) |
44 |
46 |
|
| EPS |
0.066 |
0.069 |
|
(1) EBITDA - earnings before net financial items, share of profit of equity accounted investees, taxes, depreciaton and amortization.
REVENUE (EUR MILLION)
25
| Cash flow statement |
|
2016 |
2017 |
|
(EUR million) |
|
|
| Cash flows from operating activities |
|
147 |
136 |
| Investments |
|
$-68$ |
$-219$ |
| Asset disposal |
|
$\overline{0}$ |
132 |
| New loans |
|
280 |
184 |
| Redemption of loans |
|
$-277$ |
$-174$ |
| Interests & other financial items |
|
$-31$ |
$-25$ |
| Dividends & tax |
|
-54 |
$-24$ |
| Total net cash flow |
|
$-3$ |
10 |
| Cash at the end of period |
|
79 |
89 |
| Financial position |
31.12.2016 |
31.12.2017 |
change |
1500 |
Cash
Other Assets |
Other
Liabilities |
| Assets (EUR million) |
1539 |
1559 |
1.3% |
|
|
|
Interest bearing liabilities (EUR
million) |
559 |
561 |
0.0% |
1000 |
|
Shareholders
Equity |
| Shareholder's equity (EUR million) |
810 |
836 |
3.2% |
|
Ships |
|
| Shareholder's equity per share (EUR) |
1.21 |
1.25 |
3.2% |
500 |
|
Loans |
| Equity ratio |
53% |
54% |
|
|
|
|
|
|
|
|
$\Omega$ |
Assets |
Liabilities & Equity |
EUR per share
NET DEBT
TALLINK GRUPP
INTERESTRING FACTS FOR 2017
- Customers made a total of 8.6 million purchases in Tallink Grupp's stores $\rightarrow$
- Customers made a total of 12.1 million purchases in Tallink Grupp's $\rightarrow$ restaurants and bars
- Tallink Grupp ships served 10.3 million meals $\rightarrow$
- Tallink Hotels provided 311 000 overnight stays $\longrightarrow$
- Tallink Grupp ships carried 5790 km of vehicles and cargo $\longrightarrow$
- Tallink Takso provided 839 000 taxi rides $\longrightarrow$
- LNG Megastar produces 25% less CO2 and 85% less nitrogen dioxide, $\rightarrow$ which in turn saves the environment
-
Among other products, 24 tonnes of herring, 47 tonnes of shrimp, 124 $\rightarrow$ tonnes of salmon, 715 tonnes of potatoes and 397 000 litres of milk were consumed on ships
-
- Approval of the Annual Report of the financial year 2017 of AS Tallink Grupp
- Proposal on distribution of profits $\longrightarrow$
- Extension of authorities of the member of the supervisory board $\rightarrow$
- Appointment of an auditor for the financial year 2018 and the $\rightarrow$ determination of the procedure of remuneration of an auditor
Approval of the Annual Report of the financial year 2017 of AS Tallink $\rightarrow$ Grupp
- Proposal on distribution of profits
- Extension of authorities of the member of the supervisory board $\rightarrow$
- Appointment of an auditor for the financial year 2018 and the $\rightarrow$ determination of the procedure of remuneration of an auditor
CHANGES ON THE MANAGEMENT BOARD
- In March 2018, the Supervisory Board of Tallink Grupp AS appointed Mr $\rightarrow$ Paavo Nõgene as the Chairman of the Management Board from 1 May 2018 for a period of 3 years
- Since 1 May 2018, Tallink Grupp AS has had a four-member $\rightarrow$ Management Board, consisting of Mr Paavo Nõgene, Mr Janek Stalmeister, Mr Andres Hunt and Mr Lembit Kitter
I QUARTER RESULTS OF THE 2018 FINANCIAL YEAR 1 JANUARY - 31 MARCH 2018
|
|
Q1 2017 |
Q1 2018 |
Change |
| Number of passengers |
(Thousand) |
1940 |
1930 |
$-0.5%$ |
| Cargo Units |
(Thousand) |
84 |
91 |
8.2% |
| Net Sales |
(EUR million) |
191.5 |
184.2 |
$-3.9%$ |
| EBITDA |
(EUR million) |
5.3 |
4.2 |
$-20.3%$ |
| Net profit/-loss |
(EUR million) |
$-20.3$ |
$-19.6$ |
3.7% |
THE DYNAMICS OF HIGH SEASONALITY ON THE PROFIT LEVEL
NET RESULT BY QUARTERS
TYPICAL TO THE TALLINK BUSINESS MODEL IS THAT MOST OF THE RESULT IS MADE IN THE SUMMER, THE HIGH SEASON
I QUARTER RESULTS OF THE 2018 FINANCIAL YEAR 1 JANUARY - 31 MARCH 2018
|
|
Q1 2017 |
Q1 2018 |
Change |
| Cash flows from operating activities |
(EUR million) |
$-3$ |
8 |
|
| Investments |
(EUR million) |
204 |
8 |
|
| New long term loan |
(EUR million) |
184 |
$\mathbf 0$ |
|
| Redemption of loans |
(EUR million) |
10 ° |
15 |
|
| Cash at the end of period |
(EUR million) |
72 |
70 |
|
| Net debt (as of the end of the 1st quarter) |
(EUR million) |
691 |
481 |
$-30.4%$ |
CASH FLOW IN 2018
╇
DIVIDEND
PROPOSAL ON DISTRIBUTION OF PROFITS
dividends to the shareholders $\rightarrow$ 0.03 euros per share, in the total amount of EUR 20 096 000
TALLINK GRUPP HAS MADE A TOTAL OF EUR 141 MILLION DIVIDEND PAYMENTS TO SHAREHOLDERS IN THE PERIOD 2013 - 2017
EUR
Approval of the Annual Report of the financial year 2017 of AS Tallink $\rightarrow$ Grupp
- Proposal on distribution of profits
- Extension of authorities of the member of the supervisory board $\rightarrow$
-
Appointment of an auditor for the financial year 2018 and the $\rightarrow$ determination of the procedure of remuneration of an auditor
-
Approval of the Annual Report of the financial year 2017 of AS Tallink $\rightarrow$ Grupp
-
Proposal on distribution of profits $\longrightarrow$
-
Extension of authorities of the member of the supervisory board
-
Appointment of an auditor for the financial year 2018 and the $\rightarrow$ determination of the procedure of remuneration of an auditor
-
Approval of the Annual Report of the financial year 2017 of AS Tallink $\rightarrow$ Grupp
- Proposal on distribution of profits $\longrightarrow$
- Extension of authorities of the member of the supervisory board $\rightarrow$
Appointment of an auditor for the financial year 2018 and the determination of the procedure of remuneration of an auditor