|
AS Tallink Grupp and its subsidiaries (hereinafter also referred to as “the Group”) first full financial year with the previous financial year's big investments on board has ended with the strong and healthy result which assures that the business of the significantly grown company is sound and effective. During the last twelve month period the Group revenues increased by 88% to 11,903 million EEK (761 million EUR). Excluding the 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, 63.5% more than in the year before.
In the fourth quarter the Group's EBITDA increased by 33% to 1,302 million EEK (83 million EUR). The EBITDA margin increased from 29.8% to 36.7% in the fourth quarter of 2006/2007 financial year.
AS Tallink Grupp CEO Mr. Enn Pant is pleased with the result: “I am very satisfied that finally in October 2007 we have launched probably world's most sophisticated booking and check-in system on the modern IT platform. The new system connects all our offices in six countries, hundreds of travel agencies across the Scandinavia and Europe and includes the advanced internet booking module. This new system was developed by Silja already for many years and was originally due for launch in autumn 2006, but since it didn't meet our needs the system's further development continued during the past year.
I believe that together with the transition and unification of the many supporting IT systems we can report the end of Silja integration process by the end of 2007.
During the new 2007/2008 financial year we will continue with the restructuring of the operations to maximize the company's profitability. First steps have already been made towards the change of vessels on the Turku-Stockholm route. Given the fact that during the first full year after the acquisition of Silja the positive impact of synergies is hardly seen yet and expecting the positive result from the operations restructuring the following years will have great upside potential.”
12 MONTHS KEY FIGURES
| |
01.09.2006-31.08.2007 |
01.09.2005-31.08.2006 |
change % |
| |
EEK |
EUR |
EEK |
EUR |
|
| Net sales (million) |
11,903.3 |
760.8 |
6,330.9 |
404.6 |
88.0% |
| EBITDA excluding non-recurring costs (million) |
2,737.7 |
175,0 |
1,466.2 |
93.7 |
86.7% |
| Net Profit excluding non-recurring costs & negative goodwill (million) |
1,299.6 |
83.1 |
774.8 |
49.5 |
91.7% |
| Non-recurring integration costs (million) |
250.3 |
16.0 |
|
|
|
| EBITDA (million) |
2,487.3 |
159.0 |
1,466.2 |
93.7 |
69.6% |
| Net profit for the period (million) |
1,049.3 |
67.1 |
1,485.3 |
94.9 |
-29.4% |
| EBITDA margin (%) |
20.9% |
|
23.2% |
|
|
| Net profit margin (%) |
8.8% |
|
23.5% |
|
|
| |
|
|
|
|
|
| Depreciation (million) |
925.5 |
59.1 |
419.7 |
26.8 |
120.5% |
| Investments (million) |
2,203.5 |
140.8 |
16,259.0 |
1,039.1 |
-86.4% |
| |
|
|
|
|
|
Weighted average number of ordinary shares outstanding ordinary shares outstanding
during 12 months* |
673,817,040 |
521,527,764 |
29.2 |
| Earnings per share |
1.56 |
0.100 |
2.85 |
0.182 |
-45.3% |
| |
|
|
|
|
|
| Number of passengers |
6,873,339 |
4,203,163 |
63.5% |
| Cargo units |
359,781 |
188,330 |
91.0% |
| Average number of employees |
6,227 |
3,463 |
79.8% |
| |
|
|
|
|
|
| |
31.08.2007 |
31.08.2006 |
change % |
| Total assets (million) |
26,570.9 |
1,698.2 |
25,931.6 |
1,657.3 |
2.5% |
| Total liabilities (million) |
16,436.0 |
1,050.4 |
16,856.3 |
1,077.3 |
-2.5% |
| Interest-bearing liabilities (million) |
14,831.7 |
947.9 |
14,955.6 |
955.8 |
-0.8% |
| Total equity (million) |
10,134.9 |
647.7 |
9,075.3 |
580.0 |
11.7% |
| Equity ratio (%) |
38.1% |
|
35.0% |
|
|
| |
|
|
|
|
|
| Number of ordinary shares outstanding* |
673,817,040 |
673,817,040 |
0.0 |
| Shareholders' equity per share |
15.04 |
0.96 |
13.47 |
0.86 |
11.7% |
Net profit margin - Net profit / Net sales;
EBITDA - Earnings before net financial items, share of profit of associates, taxes, depreciation and amortization, income from negative goodwill;
EBITDA margin - EBITDA / Net sales;
Equity ratio - Total Equity / Total Assets;
Earnings per share - Net Profit / Weighted average number of shares outstanding;
Shareholders' equity per share - Shareholder's equity / Number of shares outstanding;
* share numbers have been adjusted in connection with the share bonus issue in January 2007
SALES AND EARNINGS
Net sales of the Group amounted to 11,903.3 million EEK (760.8 million EUR) in the 12 months of 2006/2007 financial year (September 01, 2006 - August 31, 2007) compared to 6,330.9 million EEK (404.6 million EUR) with the 12 months of 2005/2006 financial year (September 01, 2005 - August 31, 2006). The increase in sales is largely the effect of the 2006 year investments: Silja Line, Superfast vessels, Galaxy cruise ferry and new Riga-Stockholm route. The passenger related revenues per passenger have increased 17% which is a positive impact from the recent investments.
During the 12 months of 2006/2007 financial year the Group's EBITDA increased by 69.6% to 2,487.3 million EEK (159.0 million EUR). The net profit decreased by 29.4% from 1,485.3 million EEK (94.9 million EUR) to 1,049.3 million EEK (67.1 million EUR). Basic earnings per share and diluted earnings per share were 1.56 EEK (0.10 EUR) in the 12 months of 2006/2007 financial year, a decrease of 45.3% compared to 2.85 EEK (0.182 EUR) in the corresponding periood in 2005/2006 financial year. Excluding negative goodwill and non recurring costs the effective comparable net profit increased 91.7% to 1,299.6 million EEK (83.1 million EUR) and the earnings per share on the same basis rose 30.0% to 1.93 EEK (0.12 EUR).
During the last 12 months the Group's earnings were decreased by several non-recurring Silja Line integration and restructuring related costs in the total amount of 250 million EEK (16 million EUR) causing the high numbers in the marketing and administrative costs. The start-up costs in third quarter arising from the launch of new vessel Star, the launch of new Tallink Spa & Conference hotel and the extension of the stevedoring activities in Finland, have had an impact to the Group's result as well. Influential to the Group's earnings, especially in the fourth quarter, were rapidly increasing internest rates and from the operational side fuel price higher than expected.
We believe that the Bronze Soldier incidents and related disorders in Tallinn in the end of April had negative impact to the passenger volumes on our roites in May and June and therefore also negatively impacted the Group's earnings.
Despite the increased costs on the overheads and also in the operations the Group's EBITDA in the fourth quarter increased by 33.1% to 1,302.1 million EEK (83.2 million EUR) which is 323.5 million EEK (20.7 million EUR) more than in the last year's fourth quarter. The Group's EBITDA margin in the fourth quarter was 36.7% compared to 29.8% a year earlier.
CONSOLIDATED CONDENSED INCOME STATEMENT
(unaudited, in thousands of EEK)
| |
01.06.07-31.08.07 |
01.06.06-31.08.06 |
01.09.06-31.08.07 |
01.09.05-31.08.06 |
|
| Net sales |
3,552,013 |
3,281,601 |
11,903,286 |
6,330,911 |
|
| Cost of sales |
-2,254,045 |
-2,073,429 |
-8,766,651 |
-4,498,940 |
|
| Gross profit |
1,297,968 |
1,208,172 |
3,136,635 |
1,831,971 |
|
| |
|
|
|
|
|
| Marketing expenses |
-147,165 |
-189,591 |
-792,381 |
-454,520 |
|
| Administrative and general expenses |
-243,196 |
-220,317 |
-997,361 |
-329,798 |
|
| Other operating items |
179,794 |
-7,559 |
207,265 |
-1,128 |
|
| Income from negative goodwill |
0 |
710,496 |
689 |
710,496 |
|
| Financial income |
56,718 |
25,887 |
203,884 |
44,854 |
|
| Financial expenses |
-222,942 |
-173,854 |
-801,219 |
-316,571 |
|
| Income from associates |
1,205 |
0 |
7,698 |
0 |
|
| |
|
|
|
|
|
| Profit from normal operation before income tax |
922,382 |
1,353,234 |
965,210 |
1,485,304 |
|
| Income tax |
85,525 |
342 |
84,077 |
-33 |
|
| |
|
|
|
|
|
| Net profit for the period |
1,007,907 |
1,353,576 |
1,049,287 |
1,485,271 |
|
| Attributable to: |
|
|
|
|
|
| Equity holders of the parent |
1,007,907 |
1,353,416 |
1,049,287 |
1,484,206 |
|
| Minority interests |
0 |
160 |
0 |
1,065 |
|
| |
|
|
|
|
|
| Earnings per share (in EEK per share) |
|
|
|
|
|
| - basic |
|
|
1.56 |
2.85 |
|
| - diluted |
|
|
1.56 |
2.85 |
|
CONSOLIDATED CONDENSED INCOME STATEMENT
(unaudited, in thousands of EUR)
| |
01.06.07-31.08.07 |
01.06.06-31.08.06 |
01.09.06-31.08.07 |
01.09.05-31.08.06 |
|
| Net sales |
227,015 |
209,733 |
760,759 |
404,619 |
|
| Cost of sales |
-144,060 |
-132,517 |
-560,291 |
-287,535 |
|
| Gross profit |
82,955 |
77,216 |
200,468 |
117,084 |
|
| |
|
|
|
|
|
| Marketing expenses |
-9,406 |
-12,117 |
-50,643 |
-29,049 |
|
| Administrative and general expenses |
-15,543 |
-14,081 |
-63,743 |
-21,078 |
|
| Other operating items |
11,490 |
-483 |
13,246 |
-72 |
|
| Income from negative goodwill |
0 |
45,409 |
44 |
45,409 |
|
| Financial income |
3,625 |
1,655 |
13,031 |
2,867 |
|
| Financial expenses |
-14,248 |
-11,112 |
-51,207 |
-20,233 |
|
| Income from associates |
77 |
0 |
492 |
0 |
|
| |
|
|
|
|
|
| Profit from normal operation before income tax |
58,950 |
86,487 |
61,688 |
94,928 |
|
| Income tax |
5,467 |
22 |
5,374 |
-2 |
|
| |
|
|
|
|
|
| Net profit for the period |
64,417 |
86,509 |
67,062 |
94,926 |
|
| Attributable to: |
|
|
|
|
|
| Equity holders of the parent |
64,417 |
86,499 |
67,062 |
94,858 |
|
| Minority interests |
0 |
10 |
0 |
68 |
|
| |
|
|
|
|
|
| Earnings per share (in EEK per share) |
|
|
|
|
|
| - basic |
|
|
0.10 |
0.18 |
|
| - diluted |
|
|
0.10 |
0.18 |
|
CONSOLIDATED CONDENSED BALANCE SHEET
(unaudited, in thousands of EEK)
| |
31.08.2007 |
31.08.2006 |
| ASSETS |
|
|
| |
|
|
| Current assets |
|
|
| Cash and cash equivalents |
1,303,609 |
1,407,608 |
| Receivables |
815,093 |
843,456 |
| Prepayments |
106,144 |
235,890 |
| Derivatives |
1,799 |
11,633 |
| Tax assets |
17,990 |
17,644 |
| Inventories |
272,352 |
237,228 |
| Total current assets |
2,516,987 |
2,753,459 |
| |
|
|
| Non-current assets |
|
|
| Investments in associates |
3,242 |
9,044 |
| Other financial assets and prepayments |
9,279 |
8,240 |
| Deferred tax assets |
153,102 |
0 |
| Pension assets |
0 |
45,234 |
| Investment property |
4,694 |
0 |
| Property, plant and equipment |
22,600,001 |
21,857,153 |
| Intangible assets |
1,283,592 |
1,258,432 |
| Total non-current assets |
24,053,910 |
23,178,103 |
| |
|
|
| TOTAL ASSETS |
26,570,897 |
25,931,562 |
| |
|
|
| LIABILITIES AND EQUITY |
|
|
| |
|
|
| Current liabilities |
|
|
| Current portion of interest-bearing liabilities |
2,247,390 |
1,228,098 |
| Payables |
1,287,671 |
1,593,026 |
| Deferred income |
121,008 |
146,042 |
| Derivatives |
7,980 |
24,159 |
| Tax liabilities |
120,698 |
112,061 |
| Total current liabilities |
3,784,747 |
3,103,386 |
| |
|
|
| Non-current liabilities |
|
|
| Interest bearing loans and borrowings |
12,584,261 |
13,727,497 |
| Deferred income tax liability |
63,463 |
69 |
| Pension liability |
3,489 |
25,332 |
| Total non-current liabilities |
12,651,213 |
13,752,898 |
| TOTAL LIABILITIES |
16,435,960 |
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 |
1,202,991 |
1,158,714 |
| Retained earnings |
2,183,777 |
3,012,254 |
| Total equity attributable to equity holders of the parent |
10,134,937 |
9,074,089 |
| TOTAL EQUITY |
10,134,937 |
9,075,278 |
| |
|
|
| TOTAL LIABILITIES AND EQUITY |
26,570,897 |
25,931,562 |
CONSOLIDATED CONDENSED BALANCE SHEET
(unaudited, in thousands of EUR)
| |
31.08.2007 |
31.08.2006 |
| ASSETS |
|
|
| |
|
|
| Current assets |
|
|
| Cash and cash equivalents |
83,315 |
89,963 |
| Receivables |
52,094 |
53,906 |
| Prepayments |
6,784 |
15,076 |
| Derivatives |
115 |
743 |
| Tax assets |
1,150 |
1,128 |
| Inventories |
17,407 |
15,162 |
| Total current assets |
160,865 |
175,978 |
| |
|
|
| Non-current assets |
|
|
| Investments in associates |
207 |
578 |
| Other financial assets and prepayments |
594 |
527 |
| Deferred tax assets |
9,785 |
0 |
| Pension assets |
0 |
2,891 |
| Investment property |
300 |
0 |
| Property, plant and equipment |
1,444,403 |
1,396,927 |
| Intangible assets |
82,036 |
80,428 |
| Total non-current assets |
1,537,325 |
1,481,351 |
| |
|
|
| TOTAL ASSETS |
1,698,190 |
1,657,329 |
| |
|
|
| LIABILITIES AND EQUITY |
|
|
| |
|
|
| Current liabilities |
|
|
| Current portion of interest-bearing liabilities |
143,634 |
78,490 |
| Payables |
82,297 |
101,813 |
| Deferred income |
7,734 |
9,334 |
| Derivatives |
510 |
1,544 |
| Tax liabilities |
7,714 |
7,162 |
| Total current liabilities |
241,889 |
198,343 |
| |
|
|
| Non-current liabilities |
|
|
| Interest bearing loans and borrowings |
804,281 |
877,347 |
| Deferred income tax liability |
4,056 |
4 |
| Pension liability |
223 |
1,619 |
| Total non-current liabilities |
808,560 |
878,970 |
| TOTAL LIABILITIES |
1,050,449 |
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 |
76,885 |
74,056 |
| Retained earnings |
139,569 |
192,518 |
| Total equity attributable to equity holders of the parent |
647,741 |
579,940 |
| TOTAL EQUITY |
647,741 |
580,016 |
| |
|
|
| TOTAL LIABILITIES AND EQUITY |
1,698,190 |
1,657,329 |
CONSOLIDATED CONDENSED CASH FLOW STATEMENT
(unaudited, in thousands of EEK)
| CONSOLIDATED CONDENSED CASH FLOW STATEMENT |
01.09.2006-31.08.2007 |
01.09.2005-31.08.2006 |
| (unaudited, in thousands of EEK) |
|
|
| |
|
|
| Cash flows from operating activities |
|
|
| Net profit for the period |
1,049,287 |
1,485,271 |
| Adjustments |
1,252,817 |
-17,689 |
| Changes in assets related to operating activities |
203,468 |
-276,382 |
| Changes in inventories |
-34,964 |
-46,495 |
| Changes in liabilities related to operating activities |
-346,867 |
91,081 |
| Income tax repaid |
-4,083 |
-791 |
| |
2,119,658 |
1,234,995 |
| Cash flow used for investing activities |
|
|
| Purchase of property, plant, equipment and intangible assets |
-2,201,608 |
-7,824,715 |
| Proceeds from disposals of property, plant, equipment |
687,540 |
181,619 |
| Proceeds from disposals of associates |
15,162 |
5,000 |
| Acquisition of subsidiaries |
-1,157 |
-969,511 |
| Acquisition of associates |
-1,020 |
0 |
| Interest received |
186,117 |
23,007 |
| |
-1,314,966 |
-8,584,600 |
| Cash flow from (+)/ used for (-) financing activities |
|
|
| Issue of shares |
0 |
3,668,735 |
| Transaction costs of issue of shares |
-6,520 |
-132,891 |
| Proceeds from loans and bonds |
1,357,847 |
12,609,227 |
| Redemption of loans and bonds |
-1,555,385 |
-7,473,544 |
| Change in overdraft |
74,143 |
-18,249 |
| Repayment of finance lease liabilities |
-27,010 |
-5,073 |
| Interest paid |
-751,766 |
-217,778 |
| |
-908,691 |
8,430,427 |
| TOTAL NET CASH FLOW |
-103,999 |
1,080,822 |
| Cash and cash equivalents: |
|
|
| - at the beginning of period |
1,407,608 |
326,786 |
| - increase (+) / decrease (-) |
-103,999 |
1,080,822 |
| Cash and cash equivalents at end of period |
1,303,609 |
1,407,608 |
CONSOLIDATED CONDENSED CASH FLOW STATEMENT
(unaudited, in thousands of EUR)
| CONSOLIDATED CONDENSED CASH FLOW STATEMENT |
01.09.2006-31.08.2007 |
01.09.2005-31.08.2006 |
| (unaudited, in thousands of EEK) |
|
|
| |
|
|
| Cash flows from operating activities |
|
|
| Net profit for the period |
67,062 |
94,926 |
| Adjustments |
80,070 |
-1,131 |
| Changes in assets related to operating activities |
13,004 |
-17,664 |
| Changes in inventories |
-2,235 |
-2,971 |
| Changes in liabilities related to operating activities |
-22,169 |
5,821 |
| Income tax repaid |
-261 |
-50 |
| |
135,471 |
78,931 |
| Cash flow used for investing activities |
|
|
| Purchase of property, plant, equipment and intangible assets |
-140,708 |
-500,090 |
| Proceeds from disposals of property, plant, equipment |
43,942 |
11,607 |
| Proceeds from disposals of associates |
969 |
320 |
| Acquisition of subsidiaries |
-74 |
-61,963 |
| Acquisition of associates |
-65 |
0 |
| Interest received |
11,895 |
1,470 |
| |
-84,041 |
-548,656 |
| Cash flow from (+)/ used for (-) financing activities |
|
|
| Issue of shares |
0 |
234,475 |
| Transaction costs of issue of shares |
-417 |
-8,493 |
| Proceeds from loans and bonds |
86,782 |
805,876 |
| Redemption of loans and bonds |
-99,407 |
-477,647 |
| Change in overdraft |
4,739 |
-1,166 |
| Repayment of finance lease liabilities |
-1,727 |
-324 |
| Interest paid |
-48,047 |
-13,918 |
| |
-58,077 |
538,803 |
| TOTAL NET CASH FLOW |
-6,647 |
69,078 |
| Cash and cash equivalents: |
|
|
| - at the beginning of period |
89,963 |
20,885 |
| - increase (+) / decrease (-) |
-6,647 |
69,078 |
| Cash and cash equivalents at end of period |
83,316 |
89,963 |
AS Tallink Grupp will publish the Audited Annual Report for the 2006/2007 financial year in November 2007.
Janek Stalmeister
Financial Director
AS Tallink Grupp
e-mail: janek.stalmeister@tallink.ee
Tel. +372 6409 800 |