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AS Tallink Grupp Stock Exchange Release 30.10.2006
2005/2006 FINANCIAL YEAR PRELIMINARY UNAUDITED RESULTS
Sales increase 55.8%
EBITDA increase 62.8%
Net Profit increase 213.7%
INVESTMENTS ARE SHOWING RESULTS
As Tallink Grupp is happy and proud to announce its first annual results as a listed company. While the effects of past fiscal year’s large investment projects are visible only in part gradually the improved financial performance of the Group is starting to reach targeted levels.
During the eventful 2005/2006 financial year AS Tallink Grupp performance was good. The sales increased by 55.8% to EEK 6.3 billion (EUR 404.6 million) and the net profit was EEK 1.5 billion (EUR 94.9 million) which is 213.8% higher than in a previous year.
Mr. Enn Pant, Chairman of the Management Board and CEO of AS Tallink Grupp said: „With 21 vessels and 7 routes Tallink has become the largest shipping company in the region as well as the largest enterprise in Estonia. The strategy which we have followed for years has led to a good result. Last year Tallink invested close to 1 billion euros and we believe that these investments will deliver good return in the coming years. The IPO and listing in December 2005, acquisition of Silja Line, Superfast vessels and Galaxy are significant milestones for the company. Hereby, I would also like to thank all of our existing and new shareholders for their support of the company’s activities by injecting more than 240 million EUR in new equity. I sincerely hope that the result we have made in the financial year ended is satisfactory for the shareholders.”
Mr. Kustaa Äima, Member of the Supervisory Council of AS Tallink Grupp and fund manager at Danske Capital Finland Ltd. added: „We have seen that the management has the ability not only to develop the company but also to deliver good results. The trust and belief in the management and their latest investments is clearly seen through the support in which major shareholders Amber Trust, CVCI and Infortar together added more than EUR 60 million during the rights issue in August”.
BRIGHT FORECAST FOR THE NEXT YEAR
For the 2006/2007 financial year the management estimates revenues to reach around EEK 11.7 billion (EUR 750 million) and EBITDA approximately EUR 180 million. The projected EPS target is 8.5 EEK (0.54 EUR). The projections and the growth will largely result from the impact of 2005/2006 investments and business extensions as most of them which contributed only a few months last year will now have an impact to the results of the full 12 month period in the new 2006/2007 financial year. Also the new generation ro-pax ferry between Tallinn and Helsinki as well as the new hotel operation will help to improve the results starting from spring 2007.
As the company’s business is seasonal the majority of the result will be made on the second half of the financial year
KEY FIGURES
01.09.2005- 01.09.2004- Change
31.08.2006 31.08.2005 %
EEK EUR EEK EUR
Net sales (million) 6,330.9 404.6 4,063.0 259.7 55.8
Net profit for the 1,484.2 94.9 473.2 30.2 213.7
period (million)
Net profit margin (%) 23.4 11.6
EBITDA (million) 1,466.4 93.7 900.7 57.6 62.8
EBITDA margin (%) 23.2 22.2
Earnings per share 11.38 0.73 4.30 0.23 164.6
(EPS)*
Depreciation (million) 412.1 26.3 271.9 17.4 51.6
Number of passengers 4 203 163 3 274 177 28.4
Cargo units 188 330 131 349 43.4
Average number of 3,463 2,710 27.8
employees
31.08.2006 31.08.2005 Change
%
EEK EUR EEK EUR
Total assets (million) 25,931.5 1,657.3 6,927.2 442.7 274.3
Total liabilities 16,856.3 1,077.3 4,271.3 273.0 294.6
(million)
Interest-bearing 14,955.6 955.8 3,836.3 245.2 289.8
liabilities (million)
Total equity (million) 9,075.2 580.0 2,655.8 169.7 241.7
Equity/assets ratio 35.0 38.3 38.3 -8.6
(%)
Weighted average 130,381,941 110,000,000 18.5
number of shares outstanding
Number of shares 168,454,260 110,000,000 53.1
outstanding at the end of year
Shareholders equity 53.9 3.44 24.14 1.54 123.2
per share*
* Shareholders’ equity per share is calculated on the basis of the number of shares at the year end whereas earnings per share is calculated on the weighted average number of shares.
The company’s net sales increase of 55.8% to EEK 6330.9 million was resulted mainly from the new investments and business extensions. Riga- Stockholm route impact is in the results from 06.04.2006, Superfast ferries and Finland-Germany operations impact is from 12.04.2006, delivery of Galaxy and operations from 01.05.2006 and Silja Oy Ab together with the Finland-Sweden operations from 01.07.2006. Due to the above factors company’s operating profit rose 67.7% to EEK 1054 million and EBITDA increased to 62.8% to EEK 1466 million. On the acquisition of Silja’s business, fair values are attributed to the net assets acquired. Negative goodwill aroused as the fair value of the consideration given for Silja’s business was less than net assets. Purchased negative goodwill in amount of EEK 702.9 million EEK is recognized in the net profit according to the IFRS.
Total assets at the end of financial year were EEK 25931.5 million (EUR 1657.3 million) The increase of total assets was mainly resulted from the purchase of vessels and acquisition of Silja Oy Ab.
Shareholders’ equity rose 242% up to EEK 9075.2 million (EUR 580 million). The increase in the shareholdes’ equity was mainly resulted from the share capital increases during the financial year, on the account of net profit and on the account of revaluation reserve which results from the fact that the vessels were revalued and measured at their fair value in the balance sheet.
CONSOLIDATED INCOME STATEMENT
(in thousand EEK, unaudited)
2005/2006 2004/2005
Net sales 6,330,911 4,062,961
Cost of sales -4,528,247 -2,979,506
Gross profit 1,802,664 1,083,455
Marketing expenses -454,279 -336,203
Administrative and general -314,918 -119,944
expenses
Other operating income 22,735 2,039
Other operating expenses -1,833 -573
Operating profit 1,054,369 628,774
Income from negative goodwill 702,860
Net financial expense (-)/ income -271,717 -158,706
Income from associates 0 3,643
Profit from normal operation 1,485,512 473,711
Income tax -274 -356
Net profit for the financial year 1,485,238 473,355
Attributable to:
Equity holders of the parent 1,484,173 473,171
Minority interests 1,065 184
Earnings per share (in EEK per share)
- basic 11.38 4.30
- diluted 11.38 4.30
CONSOLIDATED INCOME STATEMENT
(in thousand EUR, unaudited)
2005/2006 2004/2005
Net sales 404,619 259,671
Cost of sales -289,408 -190,425
Gross profit 115,211 69,245
Marketing expenses -29,034 -21,487
Administrative and general expenses -20,127 -7,666
Other operating income 1,453 130
Other operating expenses -117 -37
Operating profit 67,386 40,186
Income from negative goodwill 44,921
Net financial expense (-)/ income -17,366 -10,143
Income from associates 0 233
Profit from normal operation 94,942 30,276
Income tax -18 -23
Net profit for the financial year 94,924 30,253
Attributable to:
Equity holders of the parent 94,856 30,241
Minority interests 68 12
Earnings per share (in EEK per share)
- basic 0.728 0.275
- diluted 0.728 0.275
CONSOLIDATED BALANCE SHEET
(in thousand EEK, unaudited)
ASSETS
31.08.2006 31.08.2005
Current assets
Cash and cash equivalents 1,407,608 326,786
Trade receivables 468,112 114,173
Refundable taxes 70,295 4,512
Other receivables and prepaid expenses 558,584 83,855
Other financial assets 11,633 0
Inventories 237,228 84,900
Total current assets 2,753,460 614,226
Non-current assets
Investments in associates 9,044 0
Other financial assets 53,474 72
Property, plant and equipment 21,857,153 6,136,720
Intangible assets 1,258,400 176,153
Total non-current assets 23,178,071 6,312,945
TOTAL ASSETS 25,931,531 6,927,171
LIABILITIES AND EQUITY
31.08.2006 31.08.2005
Current liabilities
Current portion of interest-bearing 1,228,098 690,473
liabilities
Trade payables 697,490 229,729
Tax liabilities 112,061 70,805
Other payables and prepaid income 1,065,498 134,149
Total current liabilities 3,103,147 1,125,156
Non-current liabilities
Interest bearing loans and borrowings 13,727,497 3,145,864
Deferred income tax 25,642 329
Total non-current liabilities 13,753,139 3,146,193
TOTAL LIABILITIES 16,856,286 4,271,349
EQUITY
Minority interests 1,189 274
Equity attributable to equity holders
of the parent
Issued capital 1,415,000 1,100,000
Share premium 2,012,394 0
Unregistered capital with share 1,475,727 0
premium
Unrealised exchange differences 23 0
Revaluation reserve 1,131,191 0
Reserves 27,500 27,500
Retained earnings 3,012,221 1,528,048
Total equity attributable to equity 9,074,056 2,655,548
holders of the parent
TOTAL EQUITY 9,075,245 2,655,822
TOTAL EQUITY AND LIABILITIES 25,931,531 6,927,171
CONSOLIDATED BALANCE SHEET
(in thousand EUR, unaudited)
ASSETS
31.08.2006 31.08.2005
Current assets
Cash and cash equivalents 89,963 20,885
Trade receivables 29,918 7,297
Refundable taxes 4,493 288
Other receivables and prepaid expenses 35,700 5,359
Other financial assets 743 0
Inventories 15,162 5,426
Total current assets 175,978 39,256
Non-current assets
Investments in associates 578 0
Other financial assets 3,418 5
Property, plant and equipment 1,396,927 392,208
Intangible assets 80,426 11,258
Total non-current assets 1,481,349 403,471
TOTAL ASSETS 1,657,327 442,727
LIABILITIES AND EQUITY
31.08.2006 31.08.2005
Current liabilities
Current portion of interest-bearing 78,490 44,129
liabilities
Trade payables 44,578 14,682
Tax liabilities 7,162 4,525
Other payables and prepaid income 68,098 8,574
Total current liabilities 198,327 71,910
Non-current liabilities
Interest bearing loans and borrowings 877,347 201,057
Deferred income tax 1,639 21
Total non-current liabilities 878,986 201,078
TOTAL LIABILITIES 1,077,313 272,988
EQUITY
Minority interests 76 18
Equity attributable to equity holders of
the parent
Issued capital 90,435 70,303
Share premium 128,615 0
Unregistered capital with share premium 94,316 0
Unrealised exchange differences 1 0
Revaluation reserve 72,296 0
Reserves 1,758 1,758
Retained earnings 192,516 97,660
Total equity attributable to equity 579,938 169,721
holders of the parent
TOTAL EQUITY 580,014 169,739
TOTAL EQUITY AND LIABILITIES 1,657,327 442,727
The audited annual report will be published within two weeks.
Janek Stalmeister
Financial Director
AS Tallink Grupp
Tel. +372 6409 800 |