Tallink Grupp As · OMXTSE:TAL1T
Tallink Grupp As — Shareholder Meeting (May 2019)
37 slides from Tallink Grupp As's shareholder meeting presentation, May 23, 2019
Slide 1: Annual General Meeting
ANNUAL GENERAL MEETING 23 MAY 2019
Slide 2: Agenda of the Annual General Meeting
AGENDA OF THE ANNUAL GENERAL MEETING 1. Approval of the annual report of the financial year 2018 2. Proposal on distribution of profits 3. Amendment of the Articles of Association 4. Reduction of share capital 5. Extension of authority of the members of the supervisory board 6. Election of the membe
Slide 3: Tallink Grupp Today
TALLINK GRUPP TODAY 9.8 MILLION 14 SHIPS 4 HOTELS 7 201 EMPLOYEES PASSENGERS • 11 in core passenger • 3 hotels in Tallinn • 5 047 at sea • 4.4 million operations • 1 hotel in Riga • 1.9 million • 498 in hotels • 2 dedicated to cargo • 321 thousand stays • 1.1 million service • 1 656 in onshore • 0.4
Slide 4: Supervisory Board
SUPERVISORY BOARD Enn Pant - Chairman of the Supervisory Board Born in 1965, with the company since 1996 Chairman of the Supervisory Board since 2015 CEO of AS Tallink Grupp in 1996-2015 Toivo Ninnas Kalev Järvelill Born in 1940, Born in 1965, with the Supervisory with the Supervisory Board since 19
Slide 5: Management Board
MANAGEMENT BOARD Paavo Nõgene – Chairman of the Management Board Born in 1980, with the company since 2018 CEO since May, 2018 Previously: – Secretary-General at Ministry of Culture of the Republic of Estonia – General Manager at Vanemuine Theatre Lembit Kitter Kadri Land Born in 1964, Born in 1953,
Slide 6: Group of Strong Brands
GROUP OF STRONG BRANDS → EST-FIN, EST-SWE, LAT-SWE, cargo routes → FIN-SWE routes → Hotels in Tallinn and Riga → Loyalty programme with 2.5m members 6 TALLINK GRUPP
Slide 7: Wide Range of Dining Concepts on Our Ships
WIDE RANGE OF DINING CONCEPTS ON OUR SHIPS OWN BRANDS AND INTERNATIONAL PREMIUM BRANDS BUFFET RESTAURANTS À LA CARTE RESTAURANTS FINE DINING RESTAURANTS QUICK SERVICE RESTAURANTS TALLINK GRUPP 7
Slide 8: Core Retail Brands On-board Our Ships
CORE RETAIL BRANDS ON-BOARD OUR SHIPS In addition different brand stores in Tallinn and Tartu: 8 TALLINK GRUPP
Slide 9: Global Position
GLOBAL POSITION OPERATORS BY GROSS TONS OPERATORS BY BEDS OPERATORS BY REVENUE (2018) Revenue Company Gross tons Company Beds Company (mEuro) 1 Stena Line 935 898 1 Tallink 24 328 1 DFDS Group 2 109 2 Grimaldi Lines 732 232 2 Moby Lines 19 066 2 Stena Line 1 345 3 Moby Lines 550 580 3 Stena Line 17
Slide 10: Business Environment
BUSINESS ENVIRONMENT TRAVEL & LEISURE INDUSTRY DEMOGRAPHICS • Growth from new markets globally • Ageing population • Growth in Europe and Nordics • More people have free time • Growth in domestic travel CONSUMER SENTIMENT RETAIL SALES • Decline in consumer confidence in Finland • Modest inflation an
Slide 11: External Factors
EXTERNAL FACTORS LAND BASED COMPETITION DIRECT COMPETITION • New ways to spend free time • Pricing • New business concepts • Investments • New restaurants, shops etc. • Changes in Tallinn-Helsinki route MAIN MARKETS ECONOMY • Less passengers from Finland and Sweden • Robust economies in all markets
Slide 12: Strategy
STRATEGY THE MAIN GOALS OF THE STRATEGY DIRECTED TOWARD INCREASING TALLINK’S VALUE AND PROFITABILITY: → Strive for the highest level of customer satisfaction → Increase the volumes and strengthen the market position in the region → Develop a wide range of quality services for different customers and
Slide 13: Tallink Grupp 2018
TALLINK GRUPP 2018 → All time high annual passenger number → Strong growth of the cargo business → Lengthy scheduled maintenance of cruise ferry Baltic Princess in Q1 → Group-wide ship renovation program continues → Lower chartering revenues compared to last year → Higher fuel costs due to an increa
Slide 14: New LNG Shuttle Ferry
NEW LNG SHUTTLE FERRY FURTHER DEVELOPMENT OF THE TALLINN–HELSINKI SHUTTLE SERVICE CONSTRUCTION CONTRACT SIGNED FOR NEW LNG POWERED SHUTTLE FERRY • Shipyard: Rauma Marine Constructions • The vessel cost is approximately EUR 250 million • 30% paid during construction, 70% at delivery (financing terms
Slide 15: Results of the 2018 Financial Year
RESULTS OF THE 2018 FINANCIAL YEAR PASSENGERS (MILLIONS) CARGO UNITS (THOUSANDS) 10.0 400 +0.0% +5.7% 375 9.5 350 9.0 325 8.5 300 9.8 9.8 385 364 275 8.0 250 7.5 225 7.0 200 2017 2018 2017 2018 15 TALLINK GRUPP
Slide 16: Results of the 2018 Financial Year
RESULTS OF THE 2018 FINANCIAL YEAR INCOME STATEMENT REVENUE (EUR MILLION) 2017 2018 (EUR million) 1 000 -1.8% 950 Revenue 967 950 900 Gross profit 195 184 850 967 950 EBITDA(1) 158 143 800 Net profit/-loss 46 40 750 EPS (EUR) 0.069 0.060 700 2017 2018 (1) EBITDA – earnings before net financial items
Slide 17: Results of the 2018 Financial Year
RESULTS OF THE 2018 FINANCIAL YEAR + + Cargo revenue growth EUR 7 M − Less Chartering revenue EUR 11 M + Less depreciation & amortisation EUR 7 M − Less Accommodation revenue EUR 2 M − Less Shop & Restaurant sales on-board + Less ship’s operating cost EUR 4 M ships and on land, net COGS EUR 2 M + Le
Slide 18: Results of the 2018 Financial Year
RESULTS OF THE 2018 FINANCIAL YEAR CASH FLOW STATEMENT (EUR million) 2017 2018 Cash flows from operating activities 136 157 Investments -219 -36 Asset disposal 132 0 New loans 184 110 Redemption of loans -174 -190 Interests & other financial items -25 -24 Dividends & tax -24 -24 Total net cash flow
Slide 19: Results of the 2018 Financial Year
RESULTS OF THE 2018 FINANCIAL YEAR 1 500 Other Cash FINANCIAL POSITION Liabilities 31.12.2017 31.12.2018 change Other (EUR million) Assets Assets 1 559 1 501 -3.7% 1 000 Sharehol ders’ Equity Interest bearing liabilities 561 644 -9.1% Ships Shareholders’ equity 836 857 2.5% 500 Shareholders’ equity
Slide 20: Shareholders' Equity per Share
SHAREHOLDERS’ EQUITY PER SHARE EUR per share 1.35 1.30 1.28 1.25 1.25 1.23 1.21 1.20 1.16 1.14 1.15 1.15 1.10 1.05 1.05 1.00 1.00 0.96 0.97 0.96 0.95 0.90 0.86 0.85 0.80 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 20 TALLINK GRUPP
Slide 21: Net Debt/EBITDA
NET DEBT 1 400 000 12 Net debt/EBITDA Net debt EUR thousand 10.9 1 200 000 10 8.7 8.8 8.3 8.5 8.5 1 000 000 7.6 8 7.0 6.8 6.7 800 000 6.5 5.8 5.4 5.5 6 5.1 5.1 5.0 4.9 4.9 4.8 600 000 4.7 4.8 4.7 4.8 4.6 4.5 4.3 4.1 4.0 3.4 4 3.2 400 000 3.0 2.9 3.1 3.0 3.1 2.9 2.9 3.0 2.6 2.7 2 200 000 0 0 2008/200
Slide 22: Interesting Facts for 2018
INTERESTING FACTS FOR 2018 Megastar 11.0m saved 23.6 thousand 8.3m purchases in tons of CO2 and purchases restaurants 436 tons of SOx in stores Tallink Hotels and bars provided 321 204 overnight stays 12.2m meals 3.2% served lower fuel on ships consumption Tallink Takso per nautical provided ca 700
Slide 23: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY • CO2 reductions • Waste & sewage • Diversity & equal management opportunities • Energy efficiency • Focus on training & • Reducing water education consumption • Occupational health • Protecting & safety biodiversity ENVIRONMENT OUR PEOPLE ECONOMY & • Compliance, ethi
Slide 24: Distributions to Shareholders
DISTRIBUTIONS TO SHAREHOLDERS Dividend policy: at least EUR 0.05 per share, if the economic performance enables it Management is working to ensure that Tallink Grupp is a stable dividend payer and the dividends will increase over time 0.14 11.8% Proposal to the shareholders: EUR 0.12 9.3% 0.10 Divid
Slide 25: I Quarter Results of the 2019 Financial Year
I QUARTER RESULTS OF THE 2019 FINANCIAL YEAR 1 JANUARY – 31 MARCH 2019 SELECTED KEY FIGURES Q1 2018 Q1 2019 Change Number of passengers (Thousand) 1 930 1 856 -3.9% Cargo Units (Thousand) 91 93 2.7% Net Sales (EUR million) 184.2 178.9 -2.9% EBITDA (EUR million) 4.2 3.8 -9.9% Net profit/-loss (EUR mi
Slide 26: I Quarter Results of the 2019 Financial Year
I QUARTER RESULTS OF THE 2019 FINANCIAL YEAR THE DYNAMICS OF HIGH SEASONALITY ON THE PROFIT LEVEL 2016 net profit 44 2017 net profit 46 2018 net profit 40 2019 Q1 net result (1) 50 EUR million 40 30 43 47 46 20 10 18 3 15 10 1 0 -12 -2 -10 -20 -20 -25 -20 -30 Q1 Q2 Q1 Q2 Q3 Q3 Q4 Q1Q1Q2 Q2 Q3 Q3 Q4
Slide 27: I Quarter Results of the 2019 Financial Year
I QUARTER RESULTS OF THE 2019 FINANCIAL YEAR 1 JANUARY – 31 MARCH 2019 OVERVIEW OF THE CASH FLOWS (EUR million) Q1 2018 Q1 2019 Change Cash flows from operating activities 8 7 -16.3% Investments 8 25 202% New long term loan 0 0 0% Redemption of loans 15 17 13.8% Cash at the end of period 70 48 -31.9
Slide 28: Tallink Grupp
TALLINK GRUPP
Slide 29: 1. Approval of the Annual Report of the Financial Year 2018
1. APPROVAL OF THE ANNUAL REPORT OF THE FINANCIAL YEAR 2018 To approve the annual report of the financial year 2018 of AS Tallink Grupp presented by the management board. 29 TALLINK GRUPP
Slide 30: 2. Proposal on Distribution of Profits
2. PROPOSAL ON DISTRIBUTION OF PROFITS To approve the following profit allocation proposal of AS Tallink Grupp prepared by the management board: 1. To approve the net profit of the financial year of 2018 in the sum of 40,049,000 euros; 2. To allocate 2,003,000 euros from the net profit to the mandat
Slide 31: 3. Amendment of the Articles of Association
3. AMENDMENT OF THE ARTICLES OF ASSOCIATION 3.1. To amend Article 2.1. of the Articles of Association and word it as follows: “The amount of the minimum share capital of the company shall be 310,000,000 euros. The maximum capital of the company shall be 1,240,000,000 euros.” 3.2. To amend the second
Slide 32: 4. Reduction of Share Capital
4. REDUCTION OF SHARE CAPITAL 4.1 The reason for reducing the share capital is improving the capital structure and favouring the return on equity. Company has no need to own share capital within the registered amount and the requirements that legislation imposes on share capital will also be fulfill
Slide 33: 5. Extension of Authority of the Members of the Supervisory Board
5. EXTENSION OF AUTHORITY OF THE MEMBERS OF THE SUPERVISORY BOARD Due to the expiry of the term of authority of the members of the supervisory board Ain Hanschmidt, Colin Douglas Clark, Eve Pant and Toivo Ninnas on 17.09.2019: 5.1. To extend the authorities of Ain Hanschmidt, Colin Douglas Clark, Ev
Slide 34: 6. Election of the Member of the Supervisory Board
6. ELECTION OF THE MEMBER OF THE SUPERVISORY BOARD 6.1. To elect Raino Paron as the new member of the supervisory board of AS Tallink Grupp from 18.09.2019. 34 TALLINK GRUPP
Slide 35: 7. Remuneration for Work of the Members of Supervisory Board
7. REMUNERATION FOR WORK OF THE MEMBERS OF SUPERVISORY BOARD 7.1 To remunerate the work of the members of the supervisory board pursuant to the resolution no 5 of 07.06.2012 of the Annual General Meeting of shareholders of AS Tallink Grupp. 35 TALLINK GRUPP
Slide 36: 8. Appointment of an Auditor for the Financial Year 2019
8. APPOINTMENT OF AN AUDITOR FOR THE FINANCIAL YEAR 2019 AND THE DETERMINATION OF THE PROCEDURE OF REMUNERATION OF AN AUDITOR 8.1. To appoint the company of auditors KPMG Baltics OÜ to conduct the audit of the financial year 2019. 8.2. The auditor shall be remunerated according to the audit contract
Slide 37: Tallink Grupp
TALLINK GRUPP