Tallink Grupp AS · OMXTSE:TAL1T
Tallink Grupp AS — AS Tallink Grupp — Investor Presentation (March 2016)
28 slides from Tallink Grupp AS's investor presentation, Mar 30, 2016
Slide 1: Company presentation
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Slide 2: AS Tallink Grupp
AS Tallink Grupp The company — Tallink is the leading European provider of leisure and business travel and sea transportation services in the Baltic Sea region Operations — Fleet of 16 vessels — Operating five hotels Key facts — Revenue of EUR 945 million in 2015 — Operating EUR 1.5 billion asset ba
Slide 3: Tallink's business model
Tallink’s business model Product offering Overnight cruises & passenger transportation Shuttle service Revenue structure in 2015 49,6% On-board tax-free shopping Cargo transportation Hotel & travel packages City break 3
Slide 4: Cruise ferry
Cruise ferry 927 cabins, 2800 passengers Buffet Nightclub Tango lounge Conference Sauna Shops, pubs, restaurants Car deck Show bar 4
Slide 5: Tallink's position in the global ferry market
Tallink’s position in the global ferry market The World's top Duty free & Travel Retail Shops Ranking by actual and estimated retail sales in 2014 Rank Company Gross tons Rank Location 1 Stena Line 933,618 Sales > US $ 1,000 million 2 Grimaldi Lines 694,597 1 Seoul – Incheon Int'l Airport, South Kor
Slide 6: Tallink's vision
Strategic plan Tallink’s vision — 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 vol
Slide 7: Tallink's passenger market share is 46% of the Northern Baltic Sea
Tallink’s passenger market share is 46% of the Northern Baltic Sea Revenue by routes EUR 945 million, 2015 Passengers 9.0 million, 2015 Northern Baltic passenger market ~ 20 million passengers 7
Slide 8: Market shares
Market shares Passenger operations Tallinn – Helsinki Tallinn – Stockholm 5% 7% 4% 7% 14% 13% 13% 12% 14% 17% 17% 13% 10% 13% 15% 15% 25% 24% 24% 24% 25% 25% 24% 22% 19% 19% 100% 100% 100% 100% 100% 100% 100% 55% 57% 58% 60% 58% 55% 56% 44% 45% 50% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2
Slide 9: We are targeting new customers from a wider country base
We are targeting new customers from a wider country base More than 10% of our passengers come from outside of our home markets Web sales sites in 17 language China Finland Italy Lithuania Poland Russia 9 Denmark France Netherlands Spain Japan International Estonia Germany Latvia Noway Sweden
Slide 10: Highlights and milestones
Highlights and milestones Operations Finland-Sweden Riga-Stockholm St. Petersburg Finland-Germany Estonia-Sweden Estonia-Finland Hotel operations Newbuilt vessels € 1,020 m Silja Line Baltic Queen Acquisitions € 780 m Superfast ferries Baltic Princess New generation LNG fast ferry order Rights
Slide 11: Tallink's performance after the management buyout
Tallink’s performance after the management buyout EUR million million passengers 11
Slide 12: 2015 highlights
2015 highlights — Adoption to the new EU Sulphur Directive — Positive feedback from upgraded vessels — Positive effect from charters and re-routings — Sale of vessels Silja Festival and Regina Baltica — Start of production of the new generation LNG powered fast ferry — Sale and charter-back of fast
Slide 13: 2016 outlook
2016 outlook — Silja Europa return to Tallinn-Helsinki route — Group-wide public areas renovation program continues — The new logistics center start of operations — Developments in Tallinn, Helsinki and Stockholm ports — Nordic economies remain weak — Geopolitical events in Europe 13
Slide 14: Focus on public areas modernisation
Focus on public areas modernisation — Expansion of shop areas and modernizing restaurant areas to improve the performance through retail space — Modern retail environment visual — Wider selection of the products — Developing on-board areas with the goal: approachable, comfortable and customer friend
Slide 15: Ready to take the next step on the Tallinn – Helsinki route
Ready to take the next step on the Tallinn – Helsinki route LNG powered fast ferry for the Tallinn – Helsinki Shuttle service Specifications Financing — Built in Meyer Turku Shipyard — The vessel cost is approximately EUR 230 million — Gross tonnage 49,000 — 20% will be paid during the construction
Slide 16: Results
Results Quarterly seasonality breakdown Passengers (millions) Cargo (th. units) 10 350 9.1 9.3 9.1 8.9 9.0 301 310 308 9 300 283 284 8 2.1 2.1 2.1 Q4 2.1 2.1 78 78 250 79 7 71 70 6 2.7 2.8 200 Q3 2.7 2.6 2.7 77 76 70 69 76 5 150 4 2.3 2.4 2.4 2.4 72 79 79 79 Q2 3 2.4 100 76 2 50 1 2.0 2.0 1.9 1.9 1.
Slide 17: The dynamics of high seasonality on the profit level
The dynamics of high seasonality on the profit level Net result by quarters 2013 net profit 43 2014 net profit 27 2015 net profit 59 EUR million 50 40 30 44 45 20 36 29 10 9 8 6 8 0 -1 -13 -10 -18 -23 -20 -30 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Typical to the Tallink business model is that most of t
Slide 18: Consolidated Income Statement
Consolidated Income Statement (EUR million) 2013 2014 2015 (1) Sales 942 921 945 Cost of sales (2) (751) (740) (722) Marketing, general & admin (2) (108) (112) (111) EBITDA 156 151 181 Margin (%) 16.6% 16.3% 19.2% Net Profit 43 27 59 EPS 0.06 0.04 0.09 Notes: (1) Unaudited (2) Includes amortization
Slide 19: Costs breakdown
Costs breakdown (EUR million) 2014 2015 Change Cost of goods 211,211 215,401 2% Fuel cost 114,008 94,191 -17% Staff costs 138,660 142,368 3% Marketing & Administration (1) 103,690 102,839 -1% Port & stevedoring 95,830 92,213 -4% Ship operating expenses 77,930 76,249 -2% Other costs (2) 30,417 40,577
Slide 20: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement (EUR million) 2013 2014 2015 (1) Operating cash flow 168 151 192 Capital expenditure (43) (49) (44) Asset disposal 1 0 115 Free cash flow 126 102 263 Debt financing (net effect) (40) (46) (192) Interests & other financial items (38) (37) (38) Dividend paid (33) (20)
Slide 21: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position (EUR million) 31.12.2012 31.12.2013 31.12.2014 31.12.2015 (1) Total assets 1,742 1,722 1,686 1,539 Non-current assets 1,599 1,572 1,545 1,385 Current assets 143 150 140 154 - of which cash 66 72 65 82 Total liabilities 981 951 907 714 Interest bearing lia
Slide 22: Age of fleet
Age of fleet AS Tallink Grupp ships age — Core fleet 14.2 years — Superfast fleet 14.5 years 25+ — Cargo vessels 21.3 years years March 2016 16-25 years 1-10 years World-wide ships age 11-15 years — Ferries 23 years — Cruise 13 years Source: ShipPax MARKET: 13, 15 — Our ice-classed fleet is versatil
Slide 23: Debt structure
Debt structure EUR million Total EUR 549 million interest bearing liabilities as of 31.12.2015 Long term bank loans — 5 standalone loan agreements with bank syndicates — Amortizing project loans and commercial term loan — Maturities 2-5 years — EUR denominated — EURIBOR floating,1/3 hedged Bond — Se
Slide 24: Unrivalled suite of competitive advantages
Unrivalled suite of competitive advantages 1 Modern fleet 7 2 Extensive Sales Network • 10 core vessels have an average Extensive route network age of 14.2 years • 21 own sales offices • Ice class vessels • Variety of short cruises between key • Network of >1,800 travel agents and • Luxurious on-boa
Slide 25: Tallink's Fleet
Tallink’s Fleet Baltic Queen Victoria I Built: 2009 Built: 2004 Length: 212m Length: 193m Passengers: 2800 Passengers: 2500 Tallinn-Helsinki Lane meters: 1130 Tallinn-Stockholm Lane meters: 1030 Baltic Princess Galaxy Built: 2008 Built: 2006 Length: 212m Length: 212m Passengers: 2800 Passengers: 280
Slide 26: Tallink's Fleet
Tallink’s Fleet Superstar Star Built: 2008 Built: 2007 Length 177m Length 186m Passengers: 2080 Passengers: 2080 Tallinn-Helsinki Lane meters: 1930 Tallinn-Helsinki Lane meters: 2000 Romantika Isabelle Built: 2002 Built: 1989 Length 193m Length 171m Passengers: 2500 Passengers: 2480 Tallinn-Stockhol
Slide 27: Ownership structure
Ownership structure Shareholders of AS Tallink Grupp Ten largest shareholders as of 31.12.2015 Infortar 38% Baltic Cruises Holding 17% Nordea Bank Finland clients account 6% ING Luxemburg S.A. AIF account 4% ING Luxembourg client account 3% Infortar State Street Bank and Trust Omnibus fund OM01 2% 3
Slide 28: Safety, security and environmental protection are a high priority
Safety, security and environmental protection are a high priority Policies and certifications — Safety and Security Policy — Environmental Policy — ISO 14001:2004 Environmental Certificate by Lloyds Register — MARPOL Sewage Pollution Prevention Certificate — MARPOL Air Pollution Prevention Certifica
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