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For AS Tallink Grupp and its subsidiaries (hereinafter also referred to as “the Group”), the first full financial year with the previous financial year's big investments on board ended with a strong and healthy result which is assuring that the business of the significantly grown company is sound and effective.
During the 2006/2007 financial year, the Group's revenues increased by 88% to 11,903 million EEK (761 million EUR). Excluding non-recurring costs the Group's EBITDA increased by 87% to 2,738 million EEK (175 million EUR). The Group transported 6.9 million passengers, which is 63.5% more than in the previous financial year.
During the 2006/2007 financial year, the Group's focus was on the restructuring and integration of the acquired Silja Line business. Many overlapping positions in onshore organisations were reduced and many administration, sales and procurement related duties were centralized. Pension fund management was transferred out from the Group and several unfavourable service contracts were terminated. Furthermore, delays in the implementation of a new Group-wide booking system and the centralization of back office activities resulted in extra costs caused by the temporary application of parallel IT systems and related support functions. Non recurring integration and restructuring costs totalled approximately 250 million EEK (16 million EUR).
Given the fact that during the first full post-acquisition year the positive impact of Silja's synergies is hardly visible, the following years have great upside potential.
AUDITED CONSOLIDATED INCOME STATEMENT
for the year ended 31 August
| |
in thousands
of EEK |
in thousands
of EUR |
| |
2007 |
2006 |
2007 |
2006 |
| Revenue |
11,903,286 |
6,330,911 |
760,759 |
404,619 |
| Cost of sales |
-8,766,651 |
-4,498,940 |
-560,291 |
-287,535 |
| Gross profit |
3,136,635 |
1,831,971 |
200,468 |
117,084 |
| |
|
|
|
|
| Marketing expenses |
-792,381 |
-454,520 |
-50,643 |
-29,049 |
Administrative
expenses |
-997,361 |
-329,798 |
-63,743 |
-21,078 |
| Other income |
209,029 |
8,293 |
13,359 |
530 |
| Other expenses |
-1,764 |
-9,421 |
-113 |
-602 |
Income from
negative goodwill |
689 |
710,496 |
44 |
45,409 |
| Financial income |
203,884 |
44,854 |
13,031 |
2,867 |
| Financial expenses |
-801,219 |
-316,571 |
-51,207 |
-20,233 |
Share of profit
of associates |
7,698 |
0 |
492 |
0 |
Profit before
income tax |
965,210 |
1,485,304 |
61,688 |
94,928 |
| |
|
|
|
|
Income tax
expense/income |
84,077 |
-33 |
5,374 |
-2 |
Net profit for the
financial year |
1,049,287 |
1,485,271 |
67,062 |
94,926 |
| Attributable to: |
|
|
|
|
Equity holders
of the Parent |
1,049,287 |
1,484,206 |
67,062 |
94,858 |
| Minority interests |
0 |
1,065 |
0 |
68 |
| |
|
|
|
|
Basic and diluted
earnings per share
(in EEK/EUR per share) |
1.56 |
2.85 |
0.10 |
0.18 |
AUDITED CONSOLIDATED BALANCE SHEET
as of 31 August
| |
in thousands
of EEK |
in thousands
of EUR |
| |
2007 |
2006 |
2007 |
2006 |
| ASSETS |
|
|
|
|
| Current assets |
|
|
|
|
| Cash and cash equivalents |
1,303,609 |
1,407,608 |
83,315 |
89,963 |
| Receivables |
815,093 |
843,456 |
52,094 |
53,906 |
| Prepayments |
124,134 |
253,534 |
7,934 |
16,204 |
| Derivatives |
1,799 |
11,633 |
115 |
743 |
| Inventories |
272,352 |
237,228 |
17,407 |
15,162 |
| |
2,516,987 |
2,753,459 |
160,865 |
175,978 |
| Non-current assets |
|
|
|
|
| Investments in associates |
3,242 |
9,044 |
207 |
578 |
| Other financial assets and prepayments |
9,279 |
8,240 |
594 |
527 |
| Deferred income tax assets |
153,102 |
0 |
9,785 |
0 |
| Pension assets |
0 |
45,234 |
0 |
2,891 |
| Investment property |
4,694 |
0 |
300 |
0 |
| Property, plant and equipment |
22,600,001 |
21,857,153 |
1,444,403 |
1,396,927 |
| Intangible assets |
1,283,592 |
1,258,432 |
82,036 |
80,428 |
| |
24,053,910 |
23,178,103 |
1,537,325 |
1,481,351 |
| TOTAL ASSETS |
26,570,897 |
25,931,562 |
1,698,190 |
1,657,329 |
| |
|
|
|
|
| LIABILITIES AND EQUITY |
|
|
|
|
| Current liabilities |
|
|
|
|
| Interest-bearing loans and borrowings |
2,247,390 |
1,228,098 |
143,634 |
78,490 |
| Payables |
1,408,369 |
1,705,087 |
90,011 |
108,975 |
| Deferred income |
121,008 |
146,042 |
7,734 |
9,334 |
| Derivatives |
7,980 |
24,159 |
510 |
1,544 |
| |
3,784,747 |
3,103,386 |
241,889 |
198,343 |
| Non-current liabilities |
|
|
|
|
| Interest-bearing loans and borrowings |
12,584,261 |
13,727,497 |
804,281 |
877,347 |
| Deferred income tax liabilities |
63,463 |
69 |
4,056 |
4 |
| Pension liabilities |
3,489 |
25,332 |
223 |
1,619 |
| |
12,651,213 |
13,752,898 |
808,560 |
878,970 |
| Total liabilities |
16,435,960 |
16,856,284 |
1,050,449 |
1,077,313 |
| |
|
|
|
|
| Equity |
|
|
|
|
| Minority interests |
0 |
1,189 |
0 |
76 |
| Equity attributable to equity holders of the Parent Share capital |
6,738,170 |
1,415,000 |
430,648 |
90,435 |
| Share premium |
9,999 |
2,012,394 |
639 |
128,615 |
| Unregistered share capital with share premium |
0 |
1,475,727 |
0 |
94,316 |
| Reserves |
1,202,991 |
1,158,714 |
76,885 |
74,056 |
| Retained earnings |
2,183,777 |
3,012,254 |
139,569 |
192,518 |
| Total equity attributable to equity holders of the Parent |
10,134,937 |
9,074,089 |
647,741 |
579,940 |
| |
|
|
|
|
| Total equity |
10,134,937 |
9,075,278 |
647,741 |
580,016 |
| |
|
|
|
|
| TOTAL LIABILITIES AND EQUITY |
26,570,897 |
25,931,562 |
1,698,190 |
1,657,329 |
AUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 August
| |
in thousands
of EEK |
in thousands
of EUR |
| |
2007 |
2006 |
2007 |
2006 |
| Cash flows from operating activities |
|
|
|
|
| Net profit for the financial year |
1,049,287 |
1,485,271 |
67,062 |
94,926 |
| Adjustments: |
1,252,908 |
-17,689 |
80,076 |
-1,131 |
| Depreciation and amortization |
925,485 |
419,664 |
59,150 |
26,821 |
| Net gain on disposals of property, plant and equipment |
-178,466 |
-6,180 |
-11,406 |
-395 |
| Change in fair value of investment property |
-4,412 |
0 |
-282 |
0 |
| Net interest expense |
764,585 |
274,820 |
48,866 |
17,564 |
| Net interest expense from swaps |
-162,998 |
4,470 |
-10,417 |
286 |
| Share profit of subsidiaries and associates |
-7,698 |
0 |
-492 |
0 |
| Income from negative goodwill |
-689 |
-710,496 |
-44 |
-45,409 |
| Net foreign exchange gain / loss related to investing and financing activities |
1,178 |
0 |
75 |
0 |
| Income tax expense/ income |
-84,077 |
33 |
-5,374 |
2 |
| Changes in receivables and prepayments related to operating activities |
203,468 |
-276,382 |
13,004 |
-17,664 |
| Changes in inventories |
-34,964 |
-46,495 |
-2,235 |
-2,971 |
| Changes in liabilities related to operating activities |
-346,867 |
91,081 |
-22,169 |
5,821 |
| Income tax paid |
-4,057 |
-791 |
-259 |
-50 |
| |
2,119,775 |
1,234,995 |
135,479 |
78,931 |
| Cash flows used in investing activities |
|
|
|
|
| Purchase of property, plant, equipment and intangible assets |
-2,201,608 |
-7,824,715 |
-140,708 |
-500,090 |
| Proceeds from disposals of property, plant, equipment |
687,423 |
181,619 |
43,934 |
11,607 |
| Proceeds from disposals of associates |
15,162 |
5,000 |
969 |
320 |
| Proceeds from settlement of derivatives |
164,481 |
1,790 |
10,512 |
114 |
| Acquisition of subsidiaries, net of cash acquired |
-1,157 |
-969,511 |
-74 |
-61,963 |
| Acquisition of associates |
-1,020 |
0 |
-65 |
0 |
| Interest received |
21,636 |
21,217 |
1,383 |
1,356 |
| |
-1,315,083 |
-8,584,600 |
-84,049 |
-548,656 |
| Cash flows from /used in financing activities |
|
|
|
|
| Proceeds from issue of shares |
0 |
3,668,735 |
0 |
234,475 |
| Transaction costs of issue of shares |
-6,520 |
-132,891 |
-417 |
-8,493 |
| Proceeds from loans and bonds |
1,357,847 |
12,609,227 |
86,782 |
805,876 |
| Redemption of loans and bonds |
-1,555,385 |
-7,473,544 |
-99,407 |
-477,647 |
| Change in overdraft |
74,143 |
-18,249 |
4,739 |
-1,166 |
| Repayment of finance lease liabilities |
-27,010 |
-5,073 |
-1,727 |
-324 |
| Interest paid |
-751,766 |
-217,778 |
-48,047 |
-13,918 |
| |
-908,691 |
8,430,427 |
-58,077 |
538,803 |
| TOTAL NET CASH FLOW |
-103,999 |
1,080,822 |
-6,647 |
69,078 |
| Cash and cash equivalents: |
|
|
|
|
| - at the beginning of period |
1,407,608 |
326,786 |
89,963 |
20,885 |
| - increase / decrease |
-103,999 |
1,080,822 |
-6,647 |
69,078 |
| - at the end of period |
1,303,609 |
1,407,608 |
83,316 |
89,963 |
Janek Stalmeister
Financial Director
AS Tallink Grupp
e-mail: janek.stalmeister@tallink.ee
Tel. +372 6409 800
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