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During the nine months of the 2006/2007 financial year the revenues of AS Tallink Grupp increased by 174% compared to the same period of previous financial year. The Group's EBITDA before non-recurring integration costs increased nearly 172% and reached 1,326 million EEK (85 million EUR).
Mr. Enn Pant, CEO of AS Tallink Grupp said: “During the nine months of current financial year Tallink has gone thru many of the operational changes, replacing and rerouting vessels, delivering new vessel, reorganizing and integrating the onshore organisations in Sweden and Finland and opening of new Tallink SPA & Conference hotel in Tallinn. The business concept of ferry travel between Estonia and Finland was changed and a new industry standard was set in April when we delivered our new vessel “Star”. Despite the associated integration and startup costs the company has made good result. It is even more pleasing that operationally Tallink outperformed last year result which shows that the past investments and the development of the underlying business have been productive.”
The integration of Silja has been successful and the most crucial areas have been covered. With little addition still to be reported in Q4 we have so far incurred total of approximately 141 million EEK (9 million EUR) integration related non-recurring costs during the 9 months of current financial year. While the onshore cost benefit of the integration is not fully reported yet we may however report that the ships contribution between Finland and Sweden has improved approximately by 156 million EEK (10 million EUR) compared with the pro-forma management accounts of nine months of 2005/2006.
In addition to the non-recurring costs of Silja integration, the Group's results were also influenced by the start-up costs arising from the launch of new vessel “Star”, launch of new Tallink Spa & Conference hotel and extension of the stevedoring activities in Finland.
It is important to state that our main geographic segments have improved the result and also the operational margins have increased. Excluding the one time integration costs, the Group's net profit would have exceeded the last year's level.
KEY EVENTS IN 3rd QUARTER
Delivery of M/S Star;
M/S Vana Tallinn to Riga-Stockholm route - two vessel operations;
the opening of Tallink Spa & Conference Hotel operations in Tallinn;
ordering of new vessel, sister ship to M/S Galaxy and Cruise 4.
9 MONTHS KEY FIGURES
|
|
01.09.2006-31.05.2007 |
01.09.2005-31.05.2006 |
change |
| |
EEK |
EUR |
EEK |
EUR |
% |
| Net sales (million) |
8,351.3 |
533.7 |
3,049.3 |
194.9 |
173.9 |
| EBITDA pre non-recurring items (million) |
1,326.1 |
84.8 |
487.6 |
31.2 |
172.0 |
| Net Profit excluding non-recurring items (million) |
182.2 |
11.6 |
131.7 |
8.4 |
38.3 |
| Non-recurring integration items (million) |
140.8 |
9.0 |
0 |
0 |
|
| EBITDA (million) |
1,185.3 |
75.8 |
487.6 |
31.2 |
143.1 |
| Net profit for the period (million) |
41.4 |
2.6 |
131.7 |
8.4 |
-68.6 |
| EBITDA margin (%) |
14.2 |
|
16.0 |
|
|
| Net profit margin (%) |
0.5 |
|
4.3 |
|
|
| Depreciation (million) |
712.0 |
45.5 |
230.5 |
14.7 |
207.2 |
| Investments (million) |
2,145.0 |
137.1 |
7,516.4 |
480.4 |
-71.5 |
| Weighted average number of ordinary shares outstanding during nine months* |
673,817,040 |
507,948,716 |
32.7 |
| Earnings per share |
0.06 |
0.004 |
0.26 |
0.016 |
-76.1 |
| Number of passengers |
4,541,160 |
|
2,176,360 |
|
108.7 |
| Cargo units |
270,912 |
|
116,784 |
|
132.0 |
| Average number of employees |
6,093 |
|
2,775 |
|
119.6 |
| |
|
|
|
|
|
|
|
31.05.2007 |
31.05.2006 |
change % |
| Total assets (million) |
26,408.9 |
1,687.8 |
15,182.5 |
970.3 |
73.9 |
| Total liabilities (million) |
17,254.1 |
1,102.7 |
10,340.9 |
660.9 |
66.9 |
| Interest-bearing liabilities (million) |
15,576.6 |
995.5 |
9,625.3 |
615.2 |
61.8 |
| Total equity (million) |
9,154.8 |
585.1 |
4,841.6 |
309.4 |
89.1 |
| Equity ratio (%) |
34.7 |
|
31.9 |
|
|
| Number of ordinary shares outstanding* |
673,817,040 |
|
546,000,000 |
|
23.4 |
| Shareholders' equity per share |
13.59 |
0.87 |
8.87 |
0.57 |
53.2 |
SALES AND EARNINGS
Net sales of the Group amounted to 8,351 million EEK (534 million EUR) in the nine months of 2006/2007 financial year (September 01, 2006 - May 31, 2007) compared to 3,049 million EEK (195 million EUR) with the nine months of 2005/2006 financial year (September 01, 2005 - May 31, 2006). During the previous financial year the Group made large investments into new and existing businesses, which in the current financial year have increased the sales by 5,302 mil EEK (399 mil EUR) or 174%.
During the nine months of 2006/2007 financial year the EBITDA increased by 143.1% to 1,185.3 million EEK (75.8 million EUR). The net profit decreased by 68.6% from 131.7 million EEK (8.4 million EUR) to 41.4 million EEK (2.6 million EUR). Basic earnings per share and diluted earnings per share were 0.06 EEK (0.004 EUR) in the nine months of 2006/2007 financial year, a decrease of 76.1% compared to 0.26 EEK (0.016 EUR) in the corresponding period in 2005/2006 financial year.
During the nine months the Group's earnings were decreased by several non-recurring integration related costs in the total amount of 141 million EEK (9 million EUR). These costs are mainly related to the redundancies at our Finnish and Swedish shore organisation and also include the cost of transfer of the pension fund and related assets and liabilities from the group, to be managed by 3rd party. It is estimated that these non recurring integration costs will lead to approximately 188 million EEK (12 million EUR) yearly savings on overhead costs. The above costs are reported within the administrative costs in the income statement.
The outlook for the last quarter is positive. The changes in operations that have been made are showing positive operational performance.
CONSOLIDATED CONDENSED INCOME STATEMENT
| (unaudited, in thousands of EEK) |
01.03.07-31.05.07 |
01.03.06-31.05.06 |
01.09.06-31.05.07 |
01.09.05-31.05.06 |
| Net sales |
2,902,495 |
1,263,287 |
8,351,273 |
3,049,310 |
| Cost of sales |
-2,218,578 |
-985,019 |
-6,512,606 |
-2,425,511 |
| Gross profit |
683,917 |
278,268 |
1,838,667 |
623,799 |
| Marketing expenses |
-241,528 |
-104,496 |
-645,216 |
-264,929 |
| Administrative and general expenses |
-274,926 |
-41,145 |
-754,165 |
-109,481 |
| Other operating items |
19,221 |
5,990 |
27,471 |
6,431 |
| Income from negative goodwill |
0 |
0 |
689 |
0 |
| Financial income |
56,121 |
8,220 |
147,166 |
18,967 |
| Financial expenses |
-210,728 |
-70,572 |
-578,277 |
-142,717 |
| Income from associates |
6,493 |
0 |
6,493 |
0 |
| Profit from normal operation before income tax |
38,570 |
76,265 |
42,828 |
132,070 |
| Income tax |
205 |
213 |
-1,448 |
-375 |
| Net profit for the period |
38,775 |
76,478 |
41,380 |
131,695 |
| Attributable to: |
|
|
|
|
| Equity holders of the parent |
38,775 |
76,192 |
41,380 |
130,790 |
| Minority interests |
0 |
286 |
0 |
905 |
| Earnings per share (in EEK per share) |
|
|
|
|
| - basic |
|
|
0.06 |
0.26 |
| - diluted |
|
|
0.06 |
0.26 |
CONSOLIDATED CONDENSED INCOME STATEMENT
| (unaudited, in thousands of EUR) |
01.03.07-31.05.07 |
01.03.06-31.05.06 |
01.09.06-31.05.07 |
01.09.05-31.05.06 |
| Net sales |
185,504 |
80,738 |
533,744 |
194,886 |
| Cost of sales |
-141,793 |
-62,954 |
-416,231 |
-155,018 |
| Gross profit |
43,711 |
17,784 |
117,513 |
39,868 |
| Marketing expenses |
-15,437 |
-6,678 |
-41,237 |
-16,932 |
| Administrative and general expenses |
-17,571 |
-2,630 |
-48,200 |
-6,997 |
| Other operating items |
1,229 |
383 |
1,756 |
411 |
| Income from negative goodwill |
0 |
0 |
44 |
0 |
| Financial income |
3,587 |
525 |
9,406 |
1,212 |
| Financial expenses |
-13,468 |
-4,510 |
-36,959 |
-9,121 |
| Income from associates |
415 |
0 |
415 |
0 |
| Profit from normal operation before income tax |
2,466 |
4,874 |
2,738 |
8,441 |
| Income tax |
13 |
14 |
-93 |
-24 |
| Net profit for the period |
2,479 |
4,888 |
2,645 |
8,417 |
| Attributable to: |
|
|
|
|
| Equity holders of the parent |
2,479 |
4,869 |
2,645 |
8,359 |
| Minority interests |
0 |
19 |
0 |
58 |
| Earnings per share (in EUR per share) |
|
|
0.004 |
0.016 |
| - basic |
|
|
0.004 |
0.016 |
| - diluted |
|
|
|
|
CONSOLIDATED CONDENSED BALANCE SHEET
(unaudited, in thousands of EEK)
| ASSETS |
31.05.2007 |
31.08.2006 |
| Current assets |
|
|
| Cash and cash equivalents |
706,203 |
1,407,608 |
| Receivables |
818,829 |
843,456 |
| Prepayments |
176,157 |
235,890 |
| Derivatives |
80,083 |
11,633 |
| Tax assets |
25,447 |
17,644 |
| Inventories |
263,419 |
237,228 |
| Total current assets |
2,070,138 |
2,753,459 |
| Non-current assets |
|
|
| Investments in associates |
7,948 |
9,044 |
| Other financial assets and prepayments |
8,063 |
8,240 |
| Pension assets |
0 |
45,234 |
| Property, plant and equipment |
23,052,025 |
21,857,153 |
| Intangible assets |
1,270,679 |
1,258,432 |
| Total non-current assets |
24,338,715 |
23,178,103 |
| TOTAL ASSETS |
26,408,853 |
25,931,562 |
| LIABILITIES AND EQUITY |
|
|
| Current liabilities |
|
|
| Current portion of interest-bearing liabilities |
2,439,631 |
1,228,098 |
| Payables |
1,349,261 |
1,593,026 |
| Deferred income |
203,364 |
146,042 |
| Derivatives |
7,119 |
24,159 |
| Tax liabilities |
112,542 |
112,061 |
| Total current liabilities |
4,111,917 |
3,103,386 |
| Non-current liabilities |
|
|
| Interest bearing loans and borrowings |
13,137,008 |
13,727,497 |
| Deferred income tax liability |
1,438 |
69 |
| Pension liability |
3,740 |
25,332 |
| Total non-current liabilities |
13,142,186 |
13,752,898 |
| TOTAL LIABILITIES |
17,254,103 |
16,856,284 |
| EQUITY |
|
|
| Minority interests |
0 |
1,189 |
| Equity attributable to equity holders of the parent |
|
|
| Share capital |
6,738,170 |
1,415,000 |
| Share premium |
9,999 |
2,012,394 |
| Unregistered share capital with share premium |
0 |
1,475,727 |
| Reserves |
1,272,206 |
1,158,714 |
| Retained earnings |
1,134,375 |
3,012,254 |
| Total equity attributable to equity holders of the parent |
9,154,750 |
9,074,089 |
| TOTAL EQUITY |
9,154,750 |
9,075,278 |
| TOTAL LIABILITIES AND EQUITY |
26,408,853 |
25,931,562 |
CONSOLIDATED CONDENSED BALANCE SHEET
(unaudited, in thousands of EUR)
| ASSETS |
31.05.2007 |
31.08.2006 |
| Current assets |
|
|
| Cash and cash equivalents |
45,135 |
89,963 |
| Receivables |
52,333 |
53,906 |
| Prepayments |
11,258 |
15,076 |
| Derivatives |
5,118 |
743 |
| Tax assets |
1,626 |
1,128 |
| Inventories |
16,836 |
15,162 |
| Total current assets |
132,306 |
175,978 |
| Non-current assets |
|
|
| Investments in associates |
508 |
578 |
| Other financial assets and prepayments |
515 |
527 |
| Pension assets |
0 |
2,891 |
| Property, plant and equipment |
1,473,293 |
1,396,927 |
| Intangible assets |
81,211 |
80,428 |
| Total non-current assets |
1,555,527 |
1,481,351 |
| TOTAL ASSETS |
1,687,833 |
1,657,329 |
| LIABILITIES AND EQUITY |
|
|
| Current liabilities |
|
|
| Current portion of interest-bearing liabilities |
155,921 |
78,490 |
| Payables |
86,233 |
101,813 |
| Deferred income |
12,997 |
9,334 |
| Derivatives |
455 |
1,544 |
| Tax liabilities |
7,193 |
7,162 |
| Total current liabilities |
262,799 |
198,343 |
| Non-current liabilities |
|
|
| Interest bearing loans and borrowings |
839,608 |
877,347 |
| Deferred income tax liability |
92 |
4 |
| Pension liability |
239 |
1,619 |
| Total non-current liabilities |
839,939 |
878,970 |
| TOTAL LIABILITIES |
1,102,738 |
1,077,313 |
| EQUITY |
|
|
| Minority interests |
0 |
76 |
| Equity attributable to equity holders of the parent |
|
|
| Share capital |
430,648 |
90,435 |
| Share premium |
639 |
128,615 |
| Unregistered share capital with share premium |
0 |
94,316 |
| Reserves |
81,308 |
74,056 |
| Retained earnings |
72,500 |
192,518 |
| Total equity attributable to equity holders of the parent |
585,095 |
579,940 |
| TOTAL EQUITY |
585,095 |
580,016 |
| TOTAL LIABILITIES AND EQUITY |
1,687,833 |
1,657,329 |
CONSOLIDATED CONDENSED CASH FLOW STATEMENT
| (unaudited, in thousands of EEK) |
01.09.06-31.05.07 |
01.09.05-31.05.06 |
| Cash flows from operating activities |
|
|
| Net profit for the period |
41,380 |
131,695 |
| Adjustments |
1,129,215 |
348,492 |
| Changes in assets related to operating activities |
129,412 |
-163,884 |
| Changes in inventories |
-26,031 |
-52,983 |
| Changes in liabilities related to operating activities |
-194,544 |
264,103 |
| Income tax repaid |
-268 |
-372 |
|
1,079,164 |
527,051 |
| Cash flow used for investing activities |
|
|
| Purchase of property, plant, equipment and intangible assets |
-2,145,034 |
-7,516,436 |
| Proceeds from disposals of property, plant, equipment |
243,222 |
165,067 |
| Acquisition of minority interests and subsidiary |
-1,157 |
-10,081 |
| Interest received |
85,701 |
20,712 |
|
-1,817,268 |
-7,340,738 |
| Cash flow from (+)/ used for (-) financing activities |
|
|
| Issue of shares |
0 |
2,053,793 |
| Transaction costs of issue of shares |
-6,520 |
0 |
| Proceeds from loans and bonds |
1,357,847 |
6,404,805 |
| Redemption of loans and bonds) |
-985,765 |
-604,794 |
| Change in overdraft |
266,989 |
-18,249 |
| Repayment of finance lease liabilities |
-30,562 |
-730 |
| Interest paid |
-565,290 |
-123,586 |
| Dividends paid to minority interests |
0 |
-150 |
| Income tax on dividends |
0 |
-149 |
|
36,699 |
7,710,940 |
| TOTAL NET CASH FLOW |
-701,405 |
897,253 |
| Cash and cash equivalents: |
|
|
| - at the beginning of period |
1,407,608 |
326,786 |
| - increase (+) / decrease (-) |
-701,405 |
897,253 |
| Cash and cash equivalents at end of period |
706,203 |
1,224,039 |
CONSOLIDATED CONDENSED CASH FLOW STATEMENT
(unaudited, in thousands of EUR)
| (unaudited, in thousands of EUR) |
01.09.06-31.05.07 |
01.09.05-31.05.06 |
| Cash flows from operating activities |
|
|
| Net profit for the period |
2,645 |
8,417 |
| Adjustments |
72,170 |
22,273 |
| Changes in assets related to operating activities |
8,271 |
-10,474 |
| Changes in inventories |
-1,664 |
-3,386 |
| Changes in liabilities related to operating activities |
-12,434 |
16,879 |
| Income tax repaid |
-17 |
-24 |
| |
68,971 |
33,685 |
| Cash flow used for investing activities |
|
|
| Purchase of property, plant, equipment and intangible assets |
-137,092 |
-480,388 |
| Proceeds from disposals of property, plant, equipment |
15,545 |
10,550 |
| Acquisition of minority interests and subsidiary |
-74 |
-644 |
| Interest received |
5,477 |
1,324 |
| |
-116,144 |
-469,158 |
| Cash flow from (+)/ used for (-) financing activities |
|
|
| Issue of shares |
0 |
131,261 |
| Transaction costs of issue of shares |
-417 |
0 |
| Proceeds from loans and bonds |
86,782 |
409,342 |
| Redemption of loans and bonds) |
-63,002 |
-38,653 |
| Change in overdraft |
17,064 |
-1,166 |
| Repayment of finance lease liabilities |
-1,954 |
-47 |
| Interest paid |
-36,128 |
-7,899 |
| Dividends paid to minority interests |
0 |
-10 |
| Income tax on dividends |
0 |
-10 |
| |
2,345 |
492,818 |
| TOTAL NET CASH FLOW |
-44,828 |
57,345 |
| Cash and cash equivalents: |
|
|
| - at the beginning of period |
89,963 |
20,885 |
| - increase (+) / decrease (-) |
-44,828 |
57,345 |
| Cash and cash equivalents at end of period |
45,135 |
78,230 |
Janek Stalmeister
Financial Director
AS Tallink Grupp
Tel. +372 6409 800
Email: janek.stalmeister@tallink.ee
Attachment: Unaudited Interim Consolidated Condensed Financial Statements for the nine months of the financial year 2006/2007 ended May 31, 2007
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