Company presentation. April 2011

Transcription

1 Company presentation April 211

2 Tallink Tallink is the leading European provider of leisure and business travel and sea transportation services in the Baltic Sea Fleet of 19 vessels Operating five hotels Revenues EUR 814 million EUR 1.9 billion asset base 6612 employees Over 8.4 million passengers annually 258 thousand cargo units annually Listed on Nasdaq OMX Baltic TAL1T Over 5 years of operating and cruising experience 2

3 Tallink business model Product offering 1-2 overnight cruises & passenger transportation Conferences Revenue structure (Financial year 29/1) 49,6% On-board Tax-Free Shopping City break Cargo 12% Other 7% 24,9% Restaurant & shop sales 54% Hotel & travel packages Cargo Transportation Ticket sales 27% 12,4% 43,3% 26,1% 3

4 Cruise ferry 927 cabins, 28 passengers Nightclub Buffet Tango lounge Conference Sauna Car deck 4 Show bar Shops, pubs, restaurants

5 Tallink s passenger market share is 46% of the Northern Baltic Sea (814M) Northern Baltic passenger market Other Eckerö line 18.2 million passengers 12 1 Viking line (8.4M) million passengers /6 6/7 7/8 8/9 9/1 Tallink

6 Market shares Passenger operations Est - Fin / Tallinn - Helsinki 3% 6% 6% 7% 7% 5% 7% 8% 5% 21% 19% 13% 19% 2% 2% 25% 19% 18% 5% 6% 5% 4% 7% 7% 14% 13% 1% 13% 1% 1% 1% 12% 11% 12% 14% 15% 15% 15% 22% 25% 25% 23% 22% 22% 22% 2% 16% 15% 15% 19% 19% On Estonia-Sweden & +8%* 4% 42% 41% 37% 39% 38% +3%* 42% 42% 44% 45% 5% -12%* 55% 57% Latvia-Sweden routes Tallink is the only provider of short cruises and daily Passenger transportation Tallink Viking Line Eckerö Line SuperSeaCat Nordic Jetline Linda Line FIN - SWE / Helsinki -Stockholm FIN - SWE / Turku - Stockholm 47% 47% 47% 46% 43% 43% 53% 53% 53% 54% 57% 57%

7 Highlights and milestones OPERATIONS Tallinn-Stockholm Estonia-Finland St. Petersburg Hotel operations Finland-Sweden Riga-Stockholm Finland-Germany Newbuilt vessels 12 m Acquisitions 78 m Romantika Private Placement Victoria I IPO Galaxy Silja Line Superfast ferries Star Superstar Baltic Princess Baltic Queen

8 Tallink s position in the global ferry market The World's top 25 Duty free & Travel Retail Shops 29 Ranking by actual and estimated retail sales in US$ millions. Rank Location Sales> US$ 1,. million 1 Dubai - Dubai International Airport, U.A.E. 2 London - Heathrow Airport, UK Sales> US$ 9. million 3 Seoul - Incheon Int'l Airport, South Korea Sales> US$ 8. million 4 Singapore - Changi Airport Sales> US$ 6. million 5 Frankfurt - Frankfurt-Main Airport, Germany Sales> US$ 5. million 6 Tallink Silja Line 7 Paris - Charles de Gaulle Airport, France 8 Hong Kong - Hong Kong International Airport 9 Bangkok - Suvarnabhumi Airport, Thailand Sales> US$ 4. million 1 Amsterdam - Schipol Airport, Netherlands Sales> US$ 3. million 11 Oslo - Gardermoen Airport, Norway 12 London - Gatwick Airport, UK 13 Sao Paulo - Guarulhos Int l Airport, Brazil 14 Tel Aviv - Ben Gurion Int l Airport, Israel 15 Manchester - Int l Airport, UK Remarks FERRY SHOPS Source: Generation Research 21 Ferry operator by gross tons Rank Company 1 Stena Line 2 Tallink 3 P&O Ferries 4 Tirrenia 5 Grandi Navi Veloci Ferry operator by beds Rank Company 1 Tallink 2 Tirrenia 3 Stena Line 4 Viking Line 5 Grand Navi Veloci Ferry operator by revenues (meur) Rank Company 1 P&O Ferries 2 Stena Line 3 DFDS 4 Tallink 5 Color Group Data: Ro/pax / ferries above 1, GT Gross tons Beds Revenue 13* Source: ShipPax MARKET:1, 9* 8

9 Strategic plan Tallink s vision is to be the market pioneer in Europe by offering excellence in leisure and business travel and sea transportation services Long term objectives toward increasing the company value and profitability: - Strive for the highest level of customer satisfaction - Increase volumes and strengthen the leading position on our home markets - Develop a wide range of quality services directed at different customers and pursue new growth opportunities - Reach a optimal debt level that will allow sustainable dividends Current strategic cornerstones and competitive advantages: Most modern Wide route Strong market share & High safety level & fleet network brand awareness environmental standards 9

10 Future actions The Group s focus is on the core operations to realize past investments. No significant investments are planned. Aggressive sales and marketing activities are directed to the home markets. Strategic development towards key markets. Follow and adjust according to the clients expectations and change of habits, to maximize profit. Continuous innovation in product development. Flexible product offering, special offers and pricing to key customers further development of the CRM system. Improved revenue and capacity management of the ships. Further development of dynamic pricing to the cruise product, currently only in use on the Shuttle vessels. Development of pro-active sales culture in the whole of the organization. Continuous focus on cost efficiency. 1

11 Results quarterly seasonality breakdown Passengers (millions) Cargo (th. units) Revenue (EUR millions) EBITDA (EUR millions) /7 7/8 8/9 9/1 1/ /7 7/8 8/9 9/1 1/ /7 7/8 8/9 9/1 1/ /7 7/8 8/9 9/1 1/11 Q4 Q3 Q2 Q1 11

12 The dynamics of high seasonality on the profit level in EUR million 5 4 Net loss 8M Net profit/loss by quarters Net profit 22M Summer Autumn Winter Spring Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 8/9 9/1 1/11 Typical to the Tallink business model is that the result is made in Q4, the summer high season 12

13 Passenger traffic Passenger number quarterly development Q1 7/8 Q2 7/8 Q3 7/8 Q4 7/8 Q1 8/9 Q2 8/9 Q3 8/9 Q4 8/9 Q1 9/1 Q2 9/1 Q3 9/1 Q4 9/1 Q2 1/11 Passenger revenues Millions Q2 7/8 Q3 7/8 Q4 7/8 Q1 8/9 Q2 8/9 Q3 8/9 Q4 8/9 Q1 9/1 Q2 9/1 Q3 9/1 Q4 9/1 Q1 1/11 Q2 1/11 Total ticket, restaurants & shops revenues Ticket, restaurants & shops revenues per passenger Q1 7/8 Revenues in EUR m Revenue per pax EUR

14 Cargo traffic Cargo units & revenues Units in th Revenue in EUR m Q1 7/8 Q2 7/8 Q3 7/8 Q4 7/8 Q1 8/9 Q2 8/9 Q3 8/9 Q4 8/9 Q1 9/1 Q2 9/1 Q3 9/1 Q4 9/1 Q1 1/11 Q2 1/11 Cargo units Cargo revenues 14

15 Consolidated Income Statement Full year September - August 6 months September - February (in EUR million) 28/29 29/21 29/21 21/211 Sales Cost of sales (1) (627) (646) (292) (332) Marketing, general & admin (1) (11) (94) (46) (5) EBITDA Margin (%) 16.8% 17.8% 11.% 11.65% Net Profit (8.2) 22 (17.5) (8.3) EPS (.1).3 (.3) (.1) Notes: (1) Includes depreciation and amortization 15

16 Costs breakdown Structure Costs in EUR(th) 28/29 29/21 28/29 29/21 change Cost of goods 22% 21% % Staff costs 15% 15% % Marketing & Administrative expenses (1) 12% 11% % Port & stevedoring costs 11% 12% % Fuel cost 11% 14% % Ship operating expenses 8% 8% % Other costs 3% 4% % Total costs from operations % Depreciation and amortisation 9% 9% % Net finance cost 9% 6% % (1) amortisation and depreciation excluded 16

17 Consolidated Cash Flow Statement Full year September - August 6 months September - February (in EUR million) 28/29 29/21 29/21 21/211 Operating cash flow Capital expenditure (163) (6) (4) (4) Asset disposal Free cash flow (16) Debt financing 59 (17) (38) (36) Equity financing Interests & other financial items (6) (5) (25) (21) Change in cash (17) 8 (16) (17) 17

18 Consolidated Statement of Financial Position (in EUR million) Total assets 1,898 1,947 1,871 1,822 Non-current assets 1,723 1,815 1,741 1,71 Current assets of which cash Total liabilities 1,247 1,34 1,23 1,163 Interest bearing liabilities 1,12 1,181 1,68 1,33 Other liabilities Shareholders equity Gearing (1) 63% 65% 62% 61% Equity/assets ratio 34% 33% 36% 36% BVPS (2) (in EUR) Note: (1) Gearing represents interest bearing liabilities / (interest bearing liabilities + shareholders equity) (2) Shareholders equity / number of shares outstanding 18

19 Tallink s loan agreements have aggressive repayment schedules, the vessels useful life is however longer Million EUR Loan balance according to the current repayment schedules Fleet value Aug Aug Aug Aug Aug Aug Aug Aug Aug Aug Aug Aug The scheduled outstanding loan is displayed according to the agreements of the maturing loans and does not take into account future borrowings

20 Age of fleet Age of fleet by value (EUR m) 11-2 years 2+ years Tallink Grupp ships age (value-weighted average): Tallink + Silja core fleet 7.7 years Superfast fleet 8.3 years Ships out of core operations and cargo vessels 23.5 years 1-5 years 6-1 years World-wide ships age*: Ferries 21.2 years Cruise 16.2 years * - source: ShipPax Market:1 Statistics, 21 2

21 Tallink s Fleet Tallinn-Stockholm Baltic Queen Built: 29 Length 212.1m Passengers: 28 Lane meters: 113 Tallinn-Stockholm Victoria I Built: 24 Length 193.8m Passengers: 25 Lane meters: 1 Tallinn-Helsinki Baltic Princess Built: 28 Length 212.1m Passengers: 28 Lane meters: 113 Rostock-Helsinki Superfast VII/VIII/IX Built: 21/22 Length 23.3m Passengers: 717 Lane meters: 19 Silja Europa Galaxy Built: 1993 Built: 26 Length 21.8m Length 212.1m Turku-Stockholm Passengers: 3123 Lane meters: 932 Turku-Stockholm Passengers: 28 Lane meters: 113 In the last 1 years Tallink has invested 1.3 billion EUR to create a modern fleet 21

22 Tallink s Fleet Superstar Star Built: 28 Built: 27 Length 175.1m Length 186m Tallinn-Helsinki Passengers: 28 Lane meters: 193 Tallinn-Helsinki Passengers: 19 Lane meters: 2 Helsinki-Stockholm Silja Serenade Built: 199 Length 22.9m Passengers: 2852 Lane meters: 95 Helsinki-Stockholm Silja Symphony Built: 1991 Length 22.9m Passengers: 2852 Lane meters: 95 Riga-Stockholm Romantika Built: 22 Length 193.8m Passengers: 25 Lane meters: 1 Riga-Stockholm Silja Festival Built: 1986 Length 17.7m Passengers: 223 Lane meters: 885 In addition the Group has 2 ro-pax cargo vessels in operation and 3 older ferries which have been replaced and are available for charter or sale 22

23 Ownership structure Shareholders of AS Tallink Grupp Infortar 4% Infortar AS 39% Ten largest shareholders in on the end of Q2 Infortar 4% ING Luxemburg S.A 1% Nordea Bank Finland PLC / non-resident legal entities 1% Citigroup Venture Capital International Jersey Ltd 7% Skandinaviska Enskilda Banken AB Clients (East Capital) 3% JP Morgan Chase Bank / London Client s account 3% State Street Bank and Trust Omnibus fund 3% Firebird Republics Fund Ltd 1% BNYM / ING BANK Bank Slaski SLASKI AC AC LM LM AKCJI AKCJI FIO FIO 1% Mellon Skandinaviska Treaty Omnibus Enskilda Banken Finnish Clients 1% EUR Top 1 shareholders Institutional investors Retail investors 23

24 Safety, security and environmental protection are a high priority Safety and Security Policy Environmental Policy ISO 141:24 Environmental Certificate by Lloyds Register MARPOL Sewage Pollution Prevention Certificate MARPOL Air Pollution Prevention Certificate International Anti-Fouling System Certificate MARPOL Oil Pollution Prevention Certificate Document of Compliance for Anti-Fouling System MARPOL Garbage Pollution Prevention Attestation Passenger Ship Safety certificate International Ship Security Certificate Safety Management Certificate Document for Dangerous Goods 24

25 Contacts Janek Stalmeister CFO, Member of the Management Board AS Tallink Grupp Sadama 5/7, 1111 Tallinn, Estonia Tel: Direct: Fax: Andres Hunt Vice Chairman of the Management Board AS Tallink Grupp Sadama 5/7, 1111 Tallinn, Estonia Tel: Direct: Fax: Harri Hanschmidt Advisor to the Management Board, Head of Investor Relations AS Tallink Grupp Sadama 5/7, 1111 Tallinn, Estonia Tel: Direct: GSM: Skype harri.hanschmidt 25