12 months unaudited results of the 2008/2009 financial year

The Group (AS Tallink Grupp and its subsidiaries) unaudited revenues in the 12 months of the 2008/2009 financial year were EUR 792 million (EEK 12 390 million) which is 0.8% increase compared to the 12 months in the previous financial year. Passengers related revenues increased more than EUR 51 million (EEK 806 million) largely as an effect of the 15% increase in passenger volumes compared to the 12 months period in the previous financial year. Throughout the 2008/2009 financial year the cargo volumes decreased year-on-year basis which impact resulted EUR 52 million (EEK 815 million) decrease in cargo revenues.

In the 4th quarter (June-August) of the 2008/2009 financial year the Group revenues increased by EUR 18.6 million (EEK 291 million) or 8% compared to the 4th quarter of the previous financial year. The growth was resulted from the increased passenger operations which are at significantly higher volumes in the 4th quarter high season and hence the drop in the cargo revenues was not dominating.

The Group was able to stabilize the decrease in ticket revenues per passenger in 4th quarter whereas compared to the 2nd and 3rd quarters the aggressive discount campaigns were not necessary in the high season. In the fourth quarter the average passenger spending improved and slightly exceeded the levels of the fourth quarter in the previous financial year. However, given the first nine months slowdown in passenger spending, weaker SEK/EUR exchange rate, and lower overall average pricing the total 12 months ticket and onboard spending shows EUR 5.3 (EEK 83) decrease per passenger.

EBITDA of 2008/2009 financial year was EUR 133.1 million (EEK 2083 million) being 6% higher than in the 2007/2008 financial year. In the fourth quarter of 2008/2009 financial year the Group's EBITDA reached EUR 76.6 million (EEK 1152 million) which is 51% or EUR 24.9 million (EEK 389 million) year-on-year increase. The 4th quarter EBITDA margin increased to 29% from 21% year ago. The positive impact to the EBITDA improvement in the fourth quarter resulted largely from the lower fuel price and thereby EUR 18 million (EEK 282 million) decreased fuel costs, but also from the different cost savings which the Group initiated during the past 12 months.

In the fourth quarter of 2008/2009 financial year, the net profit reached EUR 31.7 million (EEK 496 million) which is 11% better than a year ago. The unaudited net loss for the 12 months of 2008/2009 financial year was EUR 8.2 million (EEK 127.9 million).

The Group's earnings reflect one time provisions and write offs in total of EUR 3.4 million (EEK 53 million) recorded under cost of sales, administrative and general expenses and EUR 14.6 million (EEK 228 million) expenses resulting from interest rate derivatives mark to market revaluation, recorded under financial items in the fourth quarter.

The Group's fourth quarter development assured that the fundamentals of the Group business model are strong. Considering the overall weak macroeconomic situation the Group was still able to outperform its historical numbers in many areas. However, the management is not pleased with the Group's 12 months total result in the 2008/2009 financial year. Despite that there have been improvements in some areas, the surrounding weak macroeconomic environment continues add uncertainties to Group's operations. The focus is being kept on cost cuttings in the Group operations. The sales or charters of older vessels have high priority. The Group's target is to be in the pofit in the 2009/2010 financial year.

12 MONTHS KEY FIGURES

Net profit margin - net profit / net sales;
EBITDA - Earnings before net financial items, share of profit of associates, taxes, depreciation and amortization;
EBITDA margin - EBITDA / net sales;
Gross margin - gross profit / net sales
Equity ratio - total equity / total assets;
Earnings per share - net profit / weighted average number of shares outstanding;
Shareholder's equity per share - shareholder's equity / number of shares outstanding.
* Share numbers exclude own shares.

SEK exchange rate against Euro has been highly volatile during the 12 months of the 2008/2009 financial year, being at the lowest point nearly 25% weaker compared to the previous financial year. The estimated negative impact to the Group sales from weak SEK/EUR exchange rate was nearly EUR 20 million (EEK 313 million) during the 12 months period.

The Group's administrative, general and marketing expenses, excluding the year end provisions and write offs decreased by EUR 10.4 million (EEK 163 million) during the 12 months which is 10% lower from the same period in the previous financial year.

The depreciation and amortisation of the Group assets in the 12 months period increased by EUR 8.3 million (EEK 90.8 million) mainly due to three new vessels MS Superstar, MS Baltic Princess and MS Baltic Queen.

The net financial costs increased by EUR 21.5 million (EEK 336.8 million) during the 12 months of the 2008/2009 financial year. Interest expenses decreased by EUR 6 million (EEK 93.7 million) whereas the expenses from derivative transactions - interest rate swaps and fuel swaps, increased by EUR 22.5 million (EEK 352 million). The net expenses from derivative transactions include the mark to market revaluation in amount of  EUR 14.6 million (EEK 228 million). The respective cash flows from all interest and fuel derivatives during the 12 months of 2008/2009 financial year were negative by EUR 4 million (EEK 62 million).

The Group made changes in it's accounting according to IFRIC 13.  The Group adopted IFRIC 13 “Customer Loyalty Programmes” during financial year and comparative figures have also been provided [1]. For customer loyalty programme, the fair value of the consideration received or receivable in respect of the initial sale is allocated between award credits (Club One points) and ticket sale. As a result the Group has deferred income EUR 13.4 million (EEK 210 million) at 31 August 2009. In the 2007/2008 financial year balance sheet EUR 13.1 million (EEK 205 million) deferred income was recorded. The revenues, EBITDA and net profit of the previous 2007/2008 financial year were lowered by EUR 0.9 million (EEK 14 million).

CONSOLIDATED CONDENSED INCOME STATEMENT

CONSOLIDATED CONDENSED INCOME STATEMENT
(unaudited, in thousands of EUR)	01.06.2009-30.08.2009	01.06.2008-31.08.2008[1]	01.09.2008--31.08.2009	01.09.2007-31.08.2008[1]
Net sales	254,854	236,266	791,863	785,855
Cost of sales	-174,549	-184,801	-627,104	-621,802
Gross profit	80,305	51,465	164,759	164,053
Marketing expenses	-11,494	-16,750	-51,327	-54,388
Administrative and general expenses	-14,188	-12,526	-49,506	-56,841
Other income	93	10,339	356	12,748
Other expenses	-251	-1,108	-544	-1,173
Financial income	-2,906	6,064	4,738	9,147
Financial expenses	-19,930	-14,464	-76,767	-59,650
Loss of associates from equity accounted associates	-533	-196	-483	-196
Profit/-loss from normal operation before income tax	31,096	22,824	-8,774	13,700
Income tax	599	5,735	599	5,724
Net profit/-loss for the period	31,695	28,559	-8,175	19,424
Attributable to:
Equity holders of the parent	31,695	28,559	-8,175	19,424
Earnings per share (in EUR per share)	0.05	0.04	-0.01	0.03
- basic	0.05	0.04	-0.01	0.03
- diluted

CONSOLIDATED CONDENSED BALANCE SHEET
(unaudited, in thousands of EEK)

ASSETS	31.08.2009	31.08.2008[1]
Current assets
Cash and cash equivalents	782,043	1,043,785
Receivables	797,762	1,177,342
Prepayments	179,892	111,522
Derivatives	75,698	51,884
Inventories	297,527	358,480
Total current assets	2,132,922	2,743,013
Non-current assets
Investments in associates	0	2,222
Other financial assets and prepayments	7,664	7,700
Deferred income tax assets	193,968	199,851
Investment property	4,694	4,694
Property, plant and equipment	27,049,393	25,518,298
Intangible assets	1,134,738	1,226,023
Total non-current assets	28,390,457	26,958,788
TOTAL ASSETS	30,523,379	29,701,801
LIABILITIES AND EQUITY
Current liabilities
Current portion of interest-bearing liabilities	2,586,555	2,200,220
Payables	1,415,763	1,621,711
Deferred income	331,323	343,837
Derivatives	235,559	5,351
Total current liabilities	4,569,200	4,171,119
Non-current liabilities
Interest bearing loans and borrowings	15,896,832	15,324,355
Deferred income tax liability	0	16,147
Other liability	1,330	1,643
Total non-current liabilities	15,898,162	15,342,145
TOTAL LIABILITIES	20,467,362	19,513,264
EQUITY
Equity attributable to equity holders of the parent
Share capital	6,738,170	6,738,170
Share premium	9,999	9,999
Reserves	1,124,409	1,151,071
Retained earnings	2,183,439	2,289,297
Total equity attributable to equity holders of the parent	10,056,017	10,188,537
TOTAL EQUITY	10,056,017	10,188,537
TOTAL LIABILITIES AND EQUITY	30,523,379	29,701,801

CONSOLIDATED CONDENSED BALANCE SHEET 
(unaudited, in thousands of EUR)

ASSETS	31.08.2009	31.08.2008[1]
Current assets
Cash and cash equivalents	49,982	66,710
Receivables	50,986	75,246
Prepayments	11,497	7,127
Derivatives	4,838	3,316
Inventories	19,015	22,911
Total current assets	136,318	175,310
Non-current assets
Investments in associates	0	142
Other financial assets and prepayments	490	492
Deferred income tax assets	12,397	12,773
Investment property	300	300
Property, plant and equipment	1,728,771	1,630,917
Intangible assets	72,523	78,357
Total non-current assets	1,814,481	1,722,981
TOTAL ASSETS	1,950,799	1,898,291
LIABILITIES AND EQUITY
Current liabilities
Current portion of interest-bearing liabilities	165,311	140,620
Payables	90,484	103,646
Deferred income	21,175	21,975
Derivatives	15,055	342
Total current liabilities	292,025	266,583
Non-current liabilities
Interest bearing loans and borrowings	1,015,993	979,405
Deferred income tax liability	0	1,032
Other liability	85	105
Total non-current liabilities	1,016,078	980,542
TOTAL LIABILITIES	1,308,103	1,247,125
EQUITY
Equity attributable to equity holders of the parent
Share capital	430,648	430,648
Share premium	639	639
Reserves	71,862	73,566
Retained earnings	139,547	146,313
Total equity attributable to equity holders of the parent	642,696	651,166
TOTAL EQUITY	642,696	651,166
TOTAL LIABILITIES AND EQUITY	1,950,799	1,898,291

CONSOLIDATED CONDENSED CASH FLOW STATEMENT

(unaudited, in thousands of EEK)	01.09.2008-31.08.2009	01.09.2007-31.08.2008[1]
Cash flows from operating activities
Net profit/-loss for the period	-127,913	303,928
Adjustments	2,190,984	1,661,987
Changes in assets related to operating activities	305,233	-339,402
Changes in inventories	60,953	-85,110
Changes in liabilities related to operating activities	-149,507	172,427
Income tax repaid	-493	-1,800
	2,279,257	1,712,030
Cash flow used for investing activities
Purchase of property, plant, equipment and intangible assets	-2,549,838	-4,240,289
Proceeds from disposals of property, plant, equipment	16,895	453,242
Acquisition of subsidiary	0	1,885
Acquisition of associate	-6,120	-2,040
Proceeds from associates	782	0
Proceeds/-payments from settlement of derivatives	-62,514	45,879
Interest received	5,804	11,511
	-2,594,991	-3,729,812
Cash flow from (+)/ used for (-) financing activities
Repurchase of own shares	0	-65,132
Proceeds from loans and bonds	2,427,151	3,756,212
Redemption of loans and bonds	-1,699,493	-1,518,433
Change in overdraft	204,199	443,199
Repayment of finance lease liabilities	-6,619	-14,855
Interest paid	-871,246	-843,033
	53,992	1,757,958
TOTAL NET CASH FLOW	-261,742	-259,824
Cash and cash equivalents:
- at the beginning of period	1,043,785	1,303,609
- increase (+) / decrease (-)	-261,742	-259,824
Cash and cash equivalents at end of period	782,043	1,043,785

CONSOLIDATED CONDENSED CASH FLOW STATEMENT

(unaudited, in thousands of EUR)	01.09.2008-31.08.2009	01.09.2007-31.08.2008[1]
Cash flows from operating activities
Net profit/-loss for the period	-8,175	19,424
Adjustments	140,029	106,221
Changes in assets related to operating activities	19,508	-21,692
Changes in inventories	3,896	-5,439
Changes in liabilities related to operating activities	-9,555	11,020
Income tax repaid	-32	-115
	145,671	109,419
Cash flow used for investing activities
Purchase of property, plant, equipment and intangible assets	-162,964	-271,004
Proceeds from disposals of property, plant, equipment	1,080	28,967
Acquisition of subsidiary	0	120
Acquisition of associate	-391	-130
Proceeds from associates	50	0
Proceeds/-payments from settlement of derivatives	-3,995	2,933
Interest received	371	736
	-165,849	-238,378
Cash flow from (+)/ used for (-) financing activities
Repurchase of own shares	0	-4,163
Proceeds from loans and bonds	155,123	240,066
Redemption of loans and bonds	-108,618	-97,045
Change in overdraft	13,051	28,325
Repayment of finance lease liabilities	-423	-949
Interest paid	-55,683	-53,880
	3,450	112,354
TOTAL NET CASH FLOW	-16,728	-16,605
Cash and cash equivalents:
- at the beginning of period	66,710	83,315
- increase (+) / decrease (-)	-16,728	-16,605
Cash and cash equivalents at end of period	49,982	66,710

[1] Corrected

Janek Stalmeister                                                              
Member of the Management Board, CFO                                            
AS Tallink Grupp                                                               
Tel. +372 6409 800                                                             
e-mail: janek.stalmeister@tallink.ee