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Viking Supply Ships

Quarterly Report May 15, 2013

3212_10-q_2013-05-15_c5856da5-da96-4b33-9904-14a8e4acb9d1.pdf

Quarterly Report

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Interim Report January-March 2013

Delårsrapport januari-mars 2013

May 15, 2013 from Rederi AB TransAtlantic (publ)

Interim Report 2013, January - March

First quarter 2013

  • Net revenues amounted to SEK 685 M (861)
  • Result before capital costs, EBITDA, amounted to SEK -18 M (-15)
  • Result before tax amounted to SEK -138 M (-132)
  • Result after tax amounted to SEK -137 M (-132)
  • Earnings per share after tax amounted to SEK -1.2 (-1.2)

Significant events during the quarter

  • Viking Supply Ships implements, with effect from July 1, 2013, a new organizational structure to centralize all support functions as well as operational management at the head office in Copenhagen.
  • Swedish Maritime Administration decided not to extend the charter contracts for AHTS icebreakers Tor Viking and Balder Viking. The vessels will be available for contracts after Q1 2014 and Q1 2015 respectively.
  • Viking Supply Ships entered into a time charter contract for one of its AHTS icebreaker vessels with a major oil company.
  • Viking Supply Ships completed a tap issue of SEK 87 M (tranche 2) under the existing bond agreement.
  • The company works with lending banks to ensure a stable short and long-term financing. TransAtlantic has received waivers for the first quarter, 2013, in conjunction with the Group failing to fulfill some of the loan agreements on financial key figures.

Key figures

January-March
2013 2012
Net sales, SEK M 685 861
Operational result before tax, SEK M ¹ -138 -151
Result before tax, SEK M -138 -132
Result after tax, SEK M -137 -132
Earnings per share after tax, SEK -1.2 -1.2
Shareholders' equity, SEK/share 16.6 21.1
Return on equity, % -27.9 -21.8
Return on capital employed, % -6.3 -6.9
Equity/asset ratio at balance day, % 34.2 36.1
  1. Operational result: Earnings before tax, restructuring costs and acquisition effects.

CEO's statement

Profit before tax before restructuring cost for the first quarter amounted to SEK -138 M which is unsatisfactory. Profit before tax for the group is split into SEK -76 M (-88) for Viking Supply Ships and SEK -62 M (-63) for Industrial Shipping.

As stated in the 2012 Annual Report that was published during the first quarter, the Group's liquidity is strained and exposed to risks. As we have previously communicated, initiatives to strengthen the company's profitability and liquidity have been initiated and we also continue to work proactively with lenders to ensure a stable short and long-term financing.

In addition, the company's Board of Directors in April unanimously decided to seek shareholders' approval for a capital increase through a rights issue of SEK 150 M. This is in order to improve the funding structure, liquidity and ultimately the operational performance of the Industrial Shipping division in an even quicker fashion than earlier planned. RABT will seek approval for this rights issue at an extraordinary shareholders meeting, date to be announced later.

Industrial Shipping

The market situation has deteriorated both in terms of volumes and rates during the first quarter and as Industrial Shipping's customers experience lower demands from the European market, the volumes decrease for TransAtlantic. This effect is compounded by the strengthening of the Swedish krona. We currently see no signs of recovery for the remainder of the year. This calls for deeper actions in order to get a competitive structure and every stone is turned in order to streamline the organization while still maintaining focus on customers and commercial incentives. The division has recently appointed Birna Ödefors as new CCO and we believe her experience and background will be of great benefit for further developing Industrial Shipping to become significantly more dynamic and competitive.

Viking Supply Ships

Viking Supply Ships (VSS) has started to centralize all support functions as well as operational management at the headquarters in Copenhagen.

This means that the Kristiansand office will proceed as a commercial office and the VSS Gothenburg office will be closed. The reorganization will be implemented by July 1, 2013.

During the quarter, Viking Supply Ships completed a tap issue of SEK 87 M (tranche 2) under the existing bond agreement. We also announced that the Swedish Maritime Administration decided to not extend the charter contracts for AHTS icebreakers Tor Viking and Balder Viking and that one of these vessels quickly entered into a time charter contract with a major oil company.

The quarter was characterized by positioning in the spot market and sales activities towards longer term contracts. We believe Viking Supply Ships to be well positioned in its market with a growing number of opportunities for longer term contracts in VSS' areas of expertise.

Viking Supply Ships cost structure is competitive, while that of Industrial Shipping needs to be improved in order to react to deteriorating market conditions.

For the RABT group, the next quarter will continue to be challenging because of the same underlying market conditions as in recent quarters. The key is to try to offset a deteriorating market in Industrial Shipping with operational and structural savings as well as market share gains.

Gothenburg, May 15, 2013

Henning E. Jensen, CEO

Consolidated earnings for January-March

Consolidated net sales for the quarter amounted to SEK 685 M (861). The Group reported a result after tax of SEK -137 M (-132), of which restructuring costs and acquisition effects amounted total SEK - M (19). The result before tax amounted to SEK -138 M (-132).

Group
Jan-Mar Full Year
SEK M 2013 2012 2012
Net sales 685 861 3 274
Result before capital costs, EBITDA -18 -15 120
Operating result -78 -97 -143
Result before tax -138 -132 -356
Profit margin -20.2% -15.3% -10.9%
Profit before tax by business area
Viking Supply Ships business area -76 -88 -119
Industrial Shipping business area -62 -63 -208
Total operational result -138 -151 -327
Restructuring items - 19 -35
Acquisition effects - - 6
Result before tax -138 -132 -356
Tax 1 0 -37
Result -137 -132 -393
SEK per share
Result after current tax -1.2 -1.2 -3.2
Result after full tax -1.2 -1.2 -3.5

For further information, please see tables on page 11-17.

Financial position, investments and divestments

The table below summarizes changes in cash and cash equivalents for the period:

Consolidated cash-flow statement

Full Year
SEK M 2013 2012 2012
Cash flow from current activities before changes in
working capital
-88 -95 -119
Changes in working capital 6
3
-27 2
8
Cash flow from current operations -25 -122 -91
Cash flow from investing activities -19 -264 2
6
Cash flow from financing activities -7 315 -115
Change in cash and cash equivalents -51 -71 -180
Opening cash flow 361 548 548
Exchange-rate difference in cash and cash equivalents -6 -2 -7
CASH AND CASH EQUIVALENTS AT END OF PERIOD 304 475 361

Consolidated cash and cash equivalents at the end of the period amounted to SEK 304 M (475). Cash assets include client funds on SEK 60 M. The Group has in a loan agreement agreed to ensure that cash is never less than the highest amount of either 5% of the Group's interest-bearing debt or equivalent NOK 150 M, deducting unused overdraft.

At the end of March, the Group's shareholders' equity amounted to SEK 1 839 M (equivalent to 16.6 SEK/ share), of which non-controlling interest in equity amounted to SEK 11 M (equivalent to 0.10 SEK/ share). The Groups' equity has during Q1 2013 decreased by SEK -266 M (per share SEK -2,40), mainly related to SEK -137 M (per share

SEK -1,24) from the income statement and SEK -134 M (per share SEK -1,21) from currency exchange rate effects related to net investments in subsidiaries.

Viking Supply Ships completed during the quarter a tap issue of SEK 87 M (tranche 2) under the existing bond agreement.

Gross investments during the quarter amounted to SEK 19 M (420) before deducting financing. These consisted mainly of complementary investments in vessels in Viking Supply Ships.

Financial position

March December
At the close of each period 2013 2012
Total assets, SEKM 5 370 5 745
Shareholders' equity, SEKM 1 839 2 105
Equity/assets ratio, % 34.2% 36.6%
Debt/equity ratio, % 139.0% 124.7%
Cash and cash equivalents, SEKM 304 361
Number of shares outstanding 110 902 700 110 902 700
Shareholders' equity per share, SEK1 16.6 19.0

1) Please see paragraph above.

Industrial Shipping business area

The first quarter was marked by a tough market with excess capacity and further reduced demand. The weak euro has affected earnings negatively, while the weak dollar has contributed to a positive effect. The operational result for the business for the first quarter is SEK -62 million (-63).

Despite the difficult market, the first quarter results is in line with last year, though slightly worse than expected. This means that despite an unimproved result, costs have been cut and market shares are won. Activities to further increase focus on customers and sales are ongoing in parallel with efficiency and cost-cutting measures which include reflagging, bunker savings, changed crew policy and consolidation of offices.

RoRo

Regular services have been conducted between Finland and Sweden / Germany / Belgium with four lines, TransLumi Line (TLL), TransBothnia Line (TBL), TransFeeder North (TFN) and TransBothnia Container Line (TBCL). TBCL, acquired in 2012, has been integrated and further enhanced the business area's offering in the Gulf of Bothnia. The division's volumes declined during the quarter due to the prevailing economic conditions. Focused

sales aktivities has resulted in new business that has partially offset the volume decline within the existing customer base.

Container

The container-based shipping route to England, (TransPal Line) and feeder traffic to Germany (TransFeeder South) experienced a mild winter but economic conditions, combined with excess capacity has affected the division lines negatively through lower freight rates and lower volumes.

Bulk

The weak market with declining freight rates has persisted from the previous year in both large bulk and small bulk segments. The ice-classed vessels have not seen the premier freight rates, which have been customary in previous years, partly because of the late and relatively mild winter.

During the next quarter beneficial effects of accelerated growth and cost improvement initiatives is expected although the continued weak market with low demand is likely to partially counteract the impact of those initiatives.

Industrial Shipping

January-March Full year
SEK M 2013
2012
2012
Net sales 489 648 2 212
Result before capital costs, EBITDA -44 -27 -125
Operational result -62 -63 -208
Profit margin -12.7% -9.7% -9.4%

Net Sales Industrial Shipping, SEK M

2012

Q2 Q3 Q4 Q1

2013

Q3 Q4 Q1

-80

Q2 2011

Viking Supply Ships business area

Traditionally Q1 is a season of low activity, however due to periods with poor weather the spot market saw some periods with increased rates. As a whole, the quarter was characterized by soft market conditions. The first quarter resulted in an operational loss of SEK -76 M.

Anchor Handling Tug Supply vessels (AHTS

During the first quarter of 2013 two vessels were on term charters, while six were traded in the North Sea spot market. The vessels on term charters obtained an average fixture rate of NOK 348.000. The vessels on the spot market obtained an average fixture rate of NOK 169.000 and a utilization of 57%. For the first quarter the AHTS fleet as a whole obtained an average fixture rate of NOK 232.300 and a utilization of 67%.

Tor Viking and Balder Viking have been on stand-by duties for the Swedish Maritime Administration during the quarter. The 15 year contract with the Swedish Maritime Administration (SMA) for the AHTS icebreakers Tor Viking and Balder Viking was not extended, and the vessels will end the contract after Q1 2014 and Q1 2015 respectively. The release enables VSS to offer the vessels for long term contract opportunities.

During the quarter VSS signed a time charter of one of its AHTS icebreaker vessels with a major oil company. The charter agreement applies to the 2014 and 2015 drilling seasons in sub-Arctic waters with options for 2016 and 2017.

The duration of each season will be approximately 7 months including mobilization and demobilization with commencement around May 1st each year. The commencement of Magne Viking's charter to Chevron has been delayed and likely departure from the North Sea is during June.

Platform Supply Vessels (PSV)

Two of the vessels were on medium term contracts during the first quarter, while four vessels were traded in the North Sea spot market. The vessels on term contracts obtained an average fixture rate of GBP 11.100. The vessels on the spot market obtained an average fixture rate of GBP 8.200 against a utilization of 45%. For the first quarter the PSV fleet as a whole obtained an average fixture rate of GBP 9.700 and a utilization of 63%.

Supply of AHTS vessels in the North Sea has been gradually reduced during the quarter and is likely to remain unchanged in the next quarter. With new rigs commencing work in the near future, it is expected that the market will tighten towards the summer and autumn. For the PSV segment, demand has shown a strong capability of absorbing new tonnage. With several new rigs also commencing contracts in the North Sea during the next few months it is expected that the PSV market will gradually improve as the summer-season approaches.

Viking Supply Ships January-March Full year
SEK M 2013 2012 2012
Net sales 196 213 1 062
Result before capital costs, EBITDA 2) 19 12 245
Operational result -76 -88 -119
Profit margin -38.8% -41.3% -11.2%

Net sales Viking Supply Ships, SEKM

Parent company

Earnings and financial position

The Parent Company's result before tax for the quarter amounted to SEK -40 M (67). The result after tax for the period amounted to SEK -40 M (76).

The Parent Company's total assets amounted to SEK 2 567 M (2 607 on Dec 31, 2012). The equity/assets ratio on the balance-sheet date was 74 % (75 on Dec 31, 2012). Cash and cash equivalents at the end of the period amounted to SEK 53 M (84).

Number of shares

Share distribution on March 31, 2013 is presented below:

Number of Series A shares 7 271 842
Number of Series B shares, listed 103 630 858
Total number of shares 110 902 700

See also Changes in Group's shareholders' equity, page 14.

Other

Corporate tax

The general situation for the Group is that taxes payable are highly limited. Accordingly, recognized corporate tax mainly comprises deferred tax. The recognized net deferred tax asset for the Swedish operations amounted by the end of the quarter to SEK 74 M (74, on Dec 31, 2012). The recognized deferred tax liability for the operations outside Sweden amounted to SEK -11 M (-18, on Dec 31, 2012).

Transactions with closely related parties

Kistefos has, through an extended consulting contract, been compensated for their management work by the SEK 2 M paid for the period January-March 2013.

TransAtlantic has during the quarter extended the lease for a container ship, TransAlrek, owned by a German shipping company, in which TransAtlantic's Vice Chairman Folke Patriksson has a minority interest via his company Enneff Rederi AB. The agreement is on market terms and will run until 2014 with a quarterly rent for 2013 of SEK 3 M.

Vessel operations for three of the Group's Dutchowned ships is operated by an external company, partly owned by Felix Feleus, who is also the CEO of TransAtlantic Netherlands BV. Fees for vessel operations are on commercial terms and amounted to SEK 246 T for the three vessels during the quarter. Agreement has been terminated and ceased as of the end of March. There were no other significant transactions.

Risks and uncertainties

TransAtlantic is a Group characterized by a high degree of international operations, thereby exposed to a number of operational and financial risks. TransAtlantic works actively to identify, assess and manage these risks. Risk management is included as an element of the ongoing reviews of the operations. The company's liquidity is strained. Accordingly, the company has defined and initiated tangible measures to strengthen the company's profitability and liquidity. In parallel, active efforts are in progress with banks to secure short and longterm stable financing.

The 2012 Annual Report (page 20) includes a report on the relevant risks facing TransAtlantic.

Accounting policies

This interim report, for the Group, was prepared in accordance with the application of IAS 34 Interim Financial Reporting and applicable rules in the Swedish Annual Accounts Act and for the Parent Company, in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation FRF 2 Accounting for Legal Entities. Unless otherwise noted, the same accounting policies for both the Group and the Parent Company have been applied as those used in the most recent Annual Report.

The revised IAS 19, Employee Benefits, entered into force on January 1, 2013, with retrospective application. The biggest change is the option to defer actuarial gains and losses using the corridor approach disappears, they should on a current basis instead be included in other comprehensive income. Pension liabilities have been restated accordingly and included debt has been reduced by about SEK 2 M, with corresponding positive impact on equity capital.

Viking Supply Ships will publish a separate report which is demanded due to the issued bond. Some values in that report are not comparable since there are different acquisition values and depreciation plans in VSS and the Group. VSS has from Q3 in 2011 been built through Group-internal transfers of vessels and operations at then current marketing prices, why disparities have arisen.

Number of employees

The number of employees in the Group at the end of the year was 879 (2012-03-31: 967).

Events after the close of the reporting period

Birna Ödefors, currently Managing Director at CMA CGM, has been appointed new CCO of TransAtlantic, effective June 15, 2013.

Viking Supply Ships Ltd entering into a contract with BP UK for two Platform Supply Vessels.

The Board of Directors decided to seek shareholders' approval for a capital increase through a rights issue of SEK 150 M in order to strengthen its short term funding and liquidity.

TransAtlantic was awarded a two-year contract jointly with Outokumpu Stainless Oy and Outokumpu Chrome Oy for transportation of both import and export cargoes to and from the plant in Tornio.

The Annual General meeting was held on April 24, 2013 at the Hotel 11, Eriksberg, Gothenburg, Sweden.

Rederi AB TransAtlantic appointed Tomas Bergendahl as CFO, effective from July 15, 2103.

Report Q1 2013, January - March

Press and analyst conference

In conjunction with the publication of the Q1-report 2013, an earnings call will take place on May 15, 2013 at 01.00 pm (GMT + 1) with TransAtlantic's CEO, Henning E. Jensen. In connection with the conference, a presentation will be available at the

company's website, www.rabt.se. Please see Investor Relations/Q1 Report 2013.

This information is such that TransAtlantic is obligated to publish in accordance with the Swedish Securities Act and/or the Swedish Financial Instruments Trading Act. This report has been prepared in both Swedish and English versions. In case of variations in the content between the two versions, the Swedish version shall govern. This report was submitted for publication at 8:30 a.m. on May 15, 2013.

The Board of Directors and the CEO confirm that the year-end report gives an accurate summary of the Company's and the Groups' activities, position and results and describes the noteworthy risks and uncertainty faced by the Company and companies that are includes within the Group.

Gothenburg, May 15, 2013

The Board of Directors of Rederi AB TransAtlantic

For further information, please contact Head of Corporate Communications Carina Dietmann +46 (0) 31-763 2334.

Financial calendar 2013

February 26 Year-end report 2012
April 24 Annual General Meeting
May 15 Interim report January – March
August 7 Interim report January-June
October 30 Interim report January – September

The Year-end report is available in its entirety on the company's website.

Consolidated income statement

January - March Full year
All amounts in SEK M 2013 2012 2012
Net sales 685 861 3 274
Other operating revenue 0 11 28
Direct voyage cost -355 -431 -1 489
Personnel costs -151 -164 -670
Other costs -197 -292 -1 024
Depreciation/impairment -60 -82 -263
Operating result -78 -97 -144
Net financial items -60 -35 -212
Result before tax -138 -132 -356
Tax on result for the period 1 0 -37
Result for the period -137 -132 -393
Attributable to:
Parent Company's shareholders -138 -133 -392
Non-controlling interests 1 1 -1
INCOME FOR THE PERIOD -137 -132 -393
Earnings per share, attributable to Parent Company's
shareholders, per share in SEK (before and after dilution) -1.2 -1.2 -3.5

Consolidated statement of comprehensive income

January - March Full year
All amounts in SEK M 2013 2012 2012
Result for the period -137 -132 -393
Other comprehensive income for the period:
Change in hedging reserve, net 5 2 0
Change in translation reserve, net -134 -26 3
Other comprehensive income -129 -24 3
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD -266 -156 -390
Total comprehensive income attributable to:
Parent Company's shareholders -266 -156 -387
Non-controlling interests 0 0 -3
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD -266 -156 -390

Net sales by business area

January - March Full year
All amounts in SEK M 2013 2012 2012
Viking Supply Ships business area 196 213 1 062
Industrial Shipping business area 489 648 2 212
TOTAL NET SALES 685 861 3 274

Result before tax by business area

January - March Full year
All amounts in SEK M 2013 2012 2012
Viking Supply Ships -76 -88 -119
Industrial Shipping -62 -63 -208
OPERATIONAL RESULT BEFORE TAX -138 -151 -327
Restructuring items - 19 -35
Acquisition effects - - 6
RESULT BEFORE TAX -138 -132 -356
Attributable to:
Parent Company's shareholders -139 -133 -355
Non-controlling interests 1 1 -1

Assets allocated by business area

All amounts in SEK M 31.3.2013 31.12.2012
Viking Supply Ships 4 563 4 777
Industrial Shipping 807 968
TOTAL ASSETS 5 370 5 745

Consolidated balance sheet

All amounts in SEK M 31.3.2013 31.12.2012
Vessels 4 325 4 608
Other tangible fixed assets 39 50
Intangible fixed assets 33 34
Financial assets 209 207
Total fixed assets 4 606 4 899
Current assets 764 846
TOTAL ASSETS 5 370 5 745
Shareholders' equity 1 839 2 105
Long-term liabilities 2 696 2 785
Current liabilities 835 855
TOTAL SHAREHOLDERS' EQUITY,
PROVISIONS AND LIABILITIES 5 370 5 745

Valuation of financial assets and liabilities

The valuation of financial assets and liabilities in the balance sheet are based on aquisition value or fair value. The valuation of FX derivatives and interest rate derivatives are based on fair value. The balance items "Current assets" includes derivatives by SEK 5 M (0), "Long-term liabilities" by SEK 41 M (43) and "Current liabilities" by SEK 0 M (2). Valuation of other financial assets and liabilities items in the balance sheets are based on aquisition value.

Assessment of fair value of financial instruments

The input used in the valuation of financial instruments base the three level classification: Level 1, fair values based on market values, where the instruments are traded on an active market, are available. Level 2, no market values based on an active market are available, valuations are instead based on measurements of discounted cash flows. Level 3, at least one variable is based on own assessments. The fair value valuation of the Group´s FX- and intrerest rate instruments are based on input according to level 2.

January - March Full year
MSEK 2013 2012 2012
Cash flow from operations before changes in working
capital -88 -95 -119
Changes in working capital 63 -27 28
Cash flow from current operations -25 -122 -91
Cash flow from investing activities -19 -264 26
Cash flow from financing activities -7 315 -115
Changes in cash and cash equivalents -51 -71 -180
Cash flow at beginning of period 361 548 548
Exchange-rate difference in cash and cash equivalents -6 -2 -7
CASH AND CASH EQUIVALENTS AT END OF PERIOD 304 475 361

Consolidated cash-flow statement

Changes in the Group's shareholders' equity

January - March
All amounts in SEK M 2013 2012 2012
Equity at beginning of period 2 105 2 493 2 493
Effect of change in accounting principles - 2 2
Adjusted equity at beginning of period 2 105 2 495 2 495
Total comprehensive income for the period -266 -156 -390
SHAREHOLDERS' EQUITY AT END OF PERIOD 1 839 2 339 2 105
January - March Full year
Share capital in SEK M 2013 2012 2012
Share capital at beginning of period 111 1 109 1 109
Reduction of the share capital - -998 -998
Share capital at end of period 111 111 111
January - March Full year
Number of shares ('000) 2013 2012 2012
Number of outstanding shares at beginning of period 110 903 110 903 110 903
Total number of shares at end of period 110 903 110 903 110 903
Average number of shares outstanding (´000) 110 903 110 903 110 903

Data per share

January - March Full year
All amounts in SEK 2013 2012 2012
Earnings before capital expenses (EBITDA) -0.2 -0.1 1.1
Operating result (EBIT) -0.7 -0.9 -1.3
Result after current tax -1.2 -1.2 -3.2
Result after full tax -1.2 -1.2 -3.5
Shareholders' equity end of period incl. non-controlling interests 16.6 21.1 19.0
Operating cash flow -0.7 -0.6 -0.8
Total cash flow -0.5 -0.6 -1.6

Key data

January - March Full year
2013 2012 2012
Earnings before capital expenses (EBITDA) SEK M -18 -15 120
Operating result (EBIT) SEK M -78 -97 -143
Shareholders' equity SEK M 1 839 2 337 2 105
Net indebtedness SEK M 2 556 2 916 2 623
Operating cash flow SEK M -79 -69 -94
Total cash flow SEK M -51 -71 -180
Return on capital employed % -6.3 -6.9 -2.7
Return on shareholders' equity % -27.9 -21.8 -17.1
Equity/assets ratio % 34.2 36.1 36.6
Debt/equity ratio % 139.0 127.7 124.7
Profit margin % -20.2 -15.3 -10.9

Parent Company income statement

January - March Full year
All amounts in SEK M 2013 2012 2012
Net sales 283 292 1 247
Other operating revenue 0 11 18
Direct voyage costs -136 -135 -486
Personnel costs -42 -44 -166
Other costs -147 -147 -695
Depreciation/impairment -1 -1 -3
Operating result -43 -24 -85
Net financial items 3 91 -126
Result before tax -40 67 -211
Tax on result for the year 0 9 -67
RESULT FOR THE PERIOD -40 76 -278
Other comprehensive income - - -
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD -40 76 -278

Parent Company balance sheet

All amounts in SEK M 31.3.2013 31.12.2012
Tangible fixed assets 3 3
Intangible fixed assets 22 23
Financial fixed assets 2 819 2 793
Total fixed assets 2 844 2 819
Current asstes 620 647
TOTAL ASSETS 3 464 3 466
Shareholders' equity 2 567 2 607
Provisions 7 7
Longterm liabilities 593 584
Current liabilities 297 268
TOTAL SHAREHOLDERS' EQUITY,
PROVISIONS AND LIABILITIES 3 464 3 466

Changes in Parent Company's shareholders' equity

January - March Full year
All amounts in SEK M 2013 2012 2012
Shareholders' equity at beginning of period 2 605 2 883 2 883
Effect of change in accounting principles 2 2 2
Adjusted equity at beginning of period 2 607 2 885 2 885
Total comprehensive income for the period -40 76 -278
SHAREHOLDERS' EQUITY AT END OF PERIOD 2 567 2 961 2 607

Definitions

Capital employed

Interest-bearing liabilities and shareholders' equity.

Debt/equity ratio

Interest-bearing liabilities minus cash and cash equivalents divided by shareholders' equity.

Disinvestment

Divestment of fixed assets.

Dividend yield

Dividend per share divided by the closing share price at year-end.

Earnings per share

Profit after financial items less 1) current tax, 2) tax on profit for the year (current and deferred tax) in accordance with the consolidated income statement.

EBIT

Earnings before interest and taxes, corresponding to operating profit/loss.

EBITDA

Earnings before interest, taxes, depreciation and amortization, corresponding to profit/loss before capital expenses and tax.

Equity/assets ratio

Shareholders' equity divided by total assets.

Equity per share

Equity divided by the number of shares outstanding.

Hedging

A general term for financial measures taken to avoid undesirable effects on earnings due to variations in interest rates, exchange rates, etc.

IFRS

International Financial Reporting Standards – an international accounting standard used by all listed companies. Some older standards included in IFRS include IAS (International Accounting Standards).

Interest coverage ratio

Operating profit/loss before depreciation plus interest income divided by interest expense.

Net indebtedness

Interest-bearing liabilities less cash and cash equivalents.

Operating cash flow

Profit/loss after financial income/expense adjusted for capital gains/losses, depreciation/amortization and impairment.

Operating profit/loss (before tax)

Profit/loss before tax and before restructuring costs.

Operational profit/loss per business area

Profit/loss after financial items and before Groupwide expenses and central/Group-wide net financial income/expenses.

Operating profit/loss

Profit/loss before financial items and tax, and before restructuring costs.

Profit margin

Profit after financial items divided by net sales.

Return on equity

Profit after financial items less tax on profit for the year, divided by average shareholders' equity.

Return on capital employed

Profit before depreciation and amortization (EBIT) divided by average capital employed.

Restructuring costs

Includes revenues and expenses of a non-recurring nature, such as capital gains/losses from the sale of vessels, impairment of vessels and costs related to personnel cutbacks.

Share of interest-bearing capital

Equity and deferred tax (including minority share) divided by total assets.

Total cash flow

Cash flow from operating activities, investing activities and financing activities

Rederi AB TransAtlantic (RABT) is a leading Swedish shipping company with headquarters in Gothenburg, Sweden, and additional offices in Europe. TransAtlantic is organized into two business areas: Industrial Shipping and Viking Supply Ships. Viking Supply Ships, which is active in offshore and icebreaking, is also a wholly owned subsidiary of RABT. The Industrial Shipping business area consists of three divisions: Bulk, Container and RoRo. The Group has about 800 employees and generated sales of SEK 3,274 M in 2012. The company's Series B shares are listed on the NASDAQ OMX Stockholm, Small Cap segment. www.rabt.com

Rederi AB TransAtlantic (publ) Visiting address: Lindholmsallén 10 Box 8809, SE-402 71 Gothenburg, Sweden Tel: +46 31–763 23 00 E-mail: [email protected] www.rabt.com

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