Title: Investor presentation
1- Investor presentation
- October 2006 Riga
2Financial Year 2005/2006
- KEY EVENTS
- Successful IPO and listing on the Tallinn Stock
Exchange in December 2005 - Ordering of a new cruise ferry, a sister vessel
of M/S Galaxy - The delivery of M/S Galaxy
- Starting operations between Riga and Stockholm
- The acquisition of Superfast vessels and the
launch of Finland - Germany service - The sale of M/S Autoexpress
- M/S Fantaasia chartered to Mediterranean from
- Acquisition of Silja ferry business
- Rights Issue to the shareholders.
3Financial year 2005/2006 9 months Key Figures
(in million) 01.09.2005- 31.05.2006 01.09.2004- 31.05.2005 Change
Net sales 194.9 181.5 7.4
Net profit for the period 8.4 11.9 -29.1
Net profit margin () 4.3 6.5
EBITDA 31.1 32.7 -4.9
EBITDA margin () 15.9 18.0
Depreciation 14.7 12.9 13.9
Capital Expenditure 480.4 20.0 2,300.0
Number of passengers (millions) 2.2 2.2 -3.0
Cargo units (thousands) 116.8 96.5 21.0
Average number of employees (thousands) 2.8 2.7 2.5
31.05.2006 31.08.2005 Change
Total assets 970.3 442.7 119.2
Total liabilities 660.9 273.0 142.1
Interest-bearing liabilities 615.2 245.2 150.9
Total equity 309.4 169.7 82.3
Equity/assets ratio () 31.9 38.3 -16.7
Weighted average number of shares outstanding 126,987,179 110,000,000 15.4
Shareholders equity per share 2.44 1.54 57.9
4Tallinks vesselsHigh-quality, flexible fleet
High-speedFerries
Cruise Ferries
Romantika
Victoria I
Galaxy
AutoExpress 2
Meloodia I
Regina Baltica
Fantaasia
Vana Tallinn
Ro-ro Cargo Ferries
Fast Ro-pax
AutoExpress 3
Regal Star
AutoExpress 4
Superfast VII , Superfast VIII , Superfast IX
Kapella
As a result of its ongoing investment and fleet
renewal program, Tallink deploys some of the
most advanced cruise ferries in the region.
5Siljas vesselsHigh-quality, flexible fleet
Cruise Ferries
Ro-paxFerries
Silja Serenade
Silja Symphony
Sky Wind
Silja Europa
Silja Festival
Sea Wind
As a result of its ongoing investment and fleet
renewal program, Tallink deploys some of the
most advanced cruise ferries in the region.
6Share price December 2005 September 2006
- Since listed on the Tallinn Stock Exchange, a
large proportion of turnover is derived directly
from trading Tallinks shares - 34.9 of Tallinn Stock Exchange share turnover
(09.12.05 18.09.06) - 20.0 of Total Baltic Market share turnover
(09.12.05 18.09.06)
Tallink
6.0
600
Baltix
5.5
550
5.0
500
4.5
450
4.0
400
3.5
350
3.0
300
March
May
July
January
September
December
February
April
June
August
Source Tallinn Stock Exchange
7Tallink in brief
- Tallink is the biggest ferry operator in Northern
Baltic Sea offering mini-cruise, passenger
transportation and ro-ro cargo transportation
services. - 21 vessels linking 10 ports on seven routes
between - Finland and Estonia
- Finland and Sweden
- Sweden and Estonia
- Sweden and Latvia
- Finland and Germany.
- 350 room hotel operation in the center of Tallinn
- Annual revenue base over 620 million euro
- Over 6,000 employees
- More than 6.5 million passengers annually
- Combined with the 12 months pro forma figures
of the acquired Silja Line ferry business
8Tallink The strongest in the Baltic Sea
- Outstanding macro fundamentals
- Strong market position
- High-quality, flexible fleet
- Broad product offering
- Strong brands
- Competitive cost base
- Experienced management team
The biggest Northern Baltic shipping group
providing high-quality mini-cruise and passenger
transport services, as well as a leading provider
of ro-ro cargo services on selected routes
9Tallink business model
Product Offering
Success Story and Growth Drivers
- Broad transportation, leisure and retail product
complete mini-cruise and overnight hotel spa
packages, city-break day trips, high-speed ferry
and cargo - Highly popular mini-cruise product across
Scandinavia and the Baltics with extensive
onboard retail and entertainment facilities - Our destinations are attractive and lucrative for
tourism and shopping destination - Significant demand from business customers,
tourism and cargo traffic boosted by EU accession
High-speed, Passenger and Cargo Traffic
10Tallink passenger growthStrong passenger growth
over the past decade
Total Tallink Passenger Volumes
Over the past decade, Tallink has outperformed a
fast-growing home market and is set to capitalise
further on Tallinns growing attractiveness as a
tourist destination.
10
11The Baltic ferry sector in a global
contextTallink Positioned at the heart of an
exciting growth market
Passenger Traffic Global
Passenger Traffic Baltic and Scandinavia
15,0
600
16
20
536
14
16
500
12
12
9,4
400
10
8,5
(in million)
(in million)
8
291
6,2
8
300
4,1
4
CAGR 1996-2004
187
6
166
2,6
200
133
0
4
1,3
100
0,9
-4
0,7
2
0,6
24
0
-8
0
DK-SE
FI-SE
DK-D
FI-E
DK-N
D-SE
N-SE
PL-SE
SE-E
D-N
Asia
America
Baltic
Med
North Sea
Pacific
Trailer Traffic Global
Trailer Traffic Baltic and Scandinavia
12
1,0
20
10
0,8
10
16
0,8
7
8
7
0,6
12
(in million)
0,6
(in million)
6
8
0,4
4
0,4
CAGR 1996-2004
4
4
0,3
0,2
0,2
0,1
0,04
0,2
1.0
2
0
0,1
0,03
0.4
0,0
-4
0
D-SE
DK-SE
DK-D
FI-SE
PL-SE
FI-E
DK-N
SE-E
D-N
N-SE
North Sea
Med
Baltic
Asia
America
Pacific
Note Red Sea region excluded due to negligible
volumes North Sea includes Inland Lakes Europe
Domestic Baltic and Scandinavian markets
excluded DK Denmark SE Sweden FI Finland
D Germany E Estonia N Norway PL
Poland DK-SE includes data from Oresund bridge
crossing Source ShipPax, 2004 1996 data
12Tallink routes
- Tallink operates between
- Helsinki and Tallinn
- Stockholm and Tallinn
- Paldiski and Kapellskär
- Stockholm and Riga
- Hanko and Rostock
- Helsinki and Stockholm
- Turku and Stockholm/Kapellskär.
- Northern Baltic Sea region 17 million passenger
market
13Finland EstoniaHelsinki Tallinn
Market Share
Customers and Products
- Helsinki Tallinn
- Revenues mainly from onboard and ticket sales
- Approximately 80 of the passengers are Finnish
- 3.5 hour trip with day ferry
- 1 hour 40 minute trip with high-speed ferry
- 22 hour over-night cruise with Galaxy
- Investments
- In 2002 and 2006 two brand new vessels
- In 2007 brand new Ro-pax ferry will be introduced
Key Words
- Developing passenger market
- Increased cargo demand
Galaxy
Meloodia
Regal Star
Auto Express 2
Auto Express 3
Auto Express 4
14Finland SwedenHelsinki Stockholm Turku
Stockholm/Kapellskär
Market Share
Customers and Products
- Helsinki Stockholm
- Revenues mainly from onboard and ticket sales
- Approximately 65 passengers are Finnish
- Over-night cruise
Silja Symphony
Silja Serenade
- Turku Stockholm/Kapellskär
- Revenues mainly from cargo and ticket sales
- Majority of passengers are Finnish
- Over-night and day trips
Key Words
- Tax-free status (via Aland islands)
- Strong brand Silja
- Loyal passenger base
- Increased cargo demand
- Overnight cruise
- City-break
- Hotel package sales
Silja Europa
Silja Festival
Sea Wind / Sky Wind
15Sweden EstoniaStockholm Tallinn Kapellskär
Paldiski
Market Share
Customers and Products
- Stockholm Tallinn route
- Revenues mainly from onboard and ticket sales
- Approximately 70 of passengers are Swedish
- Over-night cruise
- Tallink is the only provider of daily passenger
and ro-ro cargo services on the routes between
Sweden and Estonia
Key Words
- Tax-free status (via Aland islands)
- High development potential
- Overnight cruises
- City-breaks
- Hotel package sales
Romantika
Victoria
- Paldiski Kapellskär route
- Revenues mainly from cargo and ticket sales
- Approximately 70 of passengers are Estonian
- 11,5 hour trip
Vana Tallinn
Kapella
16Sweden LatviaStockholm Riga
Market Share
Customers and Products
- Stockholm Riga route
- Revenues mainly from onboard and ticket sales
- Approximately 70 of passengers are Swedish
- Over-night cruise
- Tallink is the only provider of regular passenger
and ro-ro cargo services on the route between
Sweden and Latvia
Key Words
- High growth potential
- Overnight cruise
- City-break
- Hotel package sales
Regina Baltica
17Finland GermanyHanko Rostock
Freight Market Share in 2005
Customers and Products
- Hanko Rostock route
- Revenues mainly from cargo sales
- 24 hour trip
Superfast VII
Superfast VIII
Superfast IX
- High quality fast ice-classed vessels
Key Words
- The fastest link between Finland and Germany
- High cargo space utilization
- Potential in passenger transportation
18Proven strategyMarket leadership and investment
for profitable growth
- Continue to invest in our fleet
- Central to maintaining market leadership and
growing our business - Enhanced efficiency and profitability
- Increased per-passenger spend from a wider
demographic customer base - Further strengthening of the Tallink Silja
brands - Build upon strong positions on existing routes
- Strengthen overall market share and volumes
- Further increase strong brand recognition
- Broader customer base
- Enhanced mini-cruise experience and promotion of
our different travel destinations - Pursue new growth opportunities in the North
Europe region - Potential route expansion
- Travel-related products, services and packages
- Maintain profitability through efficient and
flexible management while seeking revenue growth
19High quality fleetSophisticated and modern
vessels
Ferries Built for the Region
New Cruise Ferry II
Europa
High-speed ro-pax II
Superfast VII and VIII
Gabriella
Symphony
High-speed ro-pax I
Victoria I
Galaxy
Serenade
Superfast IX
Cinderella
Paradise
Romantika
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
Year
Cruise Ferries
High-speed Ro-pax Ferries
- Fleet renewal
- Higher quality of onboard facilities
- Increased passenger, cargo and retail capacity
- Increased profitability through lower cost per
passenger
- HelsinkiTallinn in less than 2 hours
- Increased passenger, cargo and retail capacity
- Expanded onboard consumption and retail
facilities - Reduce seasonality through ice-class specification
Note Pure cruise vessel with no separate cargo
or passenger car deck
20Strong operational and financial track
recordSignificant growth momentum across all key
indicators
Passenger Growth Since 02/03
Revenue Growth Since 02/03
Cargo Growth Since 02/03
Note Excludes revenue from cargo
operations EEK/ pegged since 1999 (EEK15.6466
1)
Profitable growth is key to Tallinks success
this has been demonstrated over the past three
years and will remain central to its investment
case going forward.
21Group financial data
2002/2003
2003/2004
2004/2005
(in million)
Sales 191 218 260
EBITDA 51 46 58
Margin () 26.8 21.1 22.2
Net Profit 24 20 30
Operating Cash Flow 54 51 57
Capital expenditure (40) (153) (23)
Total assets 291 442 443
Total liabilities 197 302 273
Shareholders equity 94 139 170
ROE (1) 30 17 20
Equity assets ratio (2) 32 31 38
Note (1) ROE represents net profit / average
equity for the period (2) Equity Asset ratio
shareholders equity / total assets EEK/ pegged
since 1999 (EEK15.6466 1)
22- Investor presentation
- October 2006 Riga