Tallink Grupp AS · OMXTSE:TAL1T

Tallink Grupp AS — Investor Presentation (November 2008)

29 slides from Tallink Grupp AS's investor presentation, November 2008

  1. Slide 1: Company Presentation November 2008

    Company Presentation November 2008

  2. Slide 2: Tallink in brief

    Tallink in brief „ Tallink is the leading European ferry operator offering mini-cruise, passenger transportation and cargo transportation services in the Baltic Sea. „ Fleet of 19 vessels „ Operating three hotels in Tallinn „ Revenues EUR 787 million „ EUR 1.9 billion asset base „ More than 6,800 em

  3. Slide 3: Tallink business model

    Tallink business model Product offering „ Broad transportation, leisure and retail product: 1-2 overnight cruises & complete mini-cruise and overnight hotel & spa passenger transportation Conferences packages, city-break day trips, shuttle ferry transportation and cargo „ Highly popular mini-cruise

  4. Slide 4: Passengers market and revenue split

    17 million passengers market Revenue split Lat - Swe Other Fin - Ger 5% 5% 9m 5m 9% Est - Swe Fin - Swe 12% 43% Est - Fin 26% 1.5m Revenue sources 2.6m Other income 4% Passenger income Cargo income 74% 22% 2007/2008 12 months Tallink’s strong customer base includes nearly half-million households in

  5. Slide 5: Passenger traffic market shares

    Passenger traffic market shares Estonia – Finland route Tallink’s passenger volume development 7 Millions Nordic Jet Linda Line Line* 4% 6 6% Sea 5 Containers* 9% 4 47% 3 Eckerö Line 2 13% 1 Viking Line 21% * Two competitors have ceased the operations in October 2008 0 1998 1999 2000 2001 2002 2003

  6. Slide 6: History: highlights & milestones

    History Highlights & milestones Routes Finland-Sweden Riga-Stockholm St. Petersburg Finland-Germany Tallinn-Stockholm Estonia-Finland Newbuilt vessels Cruise 5 € 843 million new fleet investments Baltic Princess Superstar Star Galaxy Victoria I Romantika Acquisitions & other 3 Tallink Taxi 3 IPO 3 S

  7. Slide 7: One more vessel to be delivered

    One more vessel to be delivered The newbuilding Cruise 5 will be delivered in 2009 Tallink Cruise 5 - EUR 180 million Delivery: 2009 Passengers: 2,800 Outlook „ Modern cruise ferry prices have increased significantly „ After the delivery of Cruise 5 in 2009 Tallink will have modern and most competit

  8. Slide 8: New Vessels' rerouting

    New Vessels’ rerouting TAL – HEL TUR – STO TAL – STO RIGA – STO Baltic Princess Built: 2008 Cabins: 927 9 July 2008 Galaxy Built: 2006 Cabins: 927 August 2008 Silja Festival Built: 1986 Cabins: 588 August 2008 Vana Tallinn Available for Built: 1974 Cabins: 228 sale or charter “Cruise 5” Built: 2009

  9. Slide 9: Operational and financial track record

    Operational and financial track record Passengers Revenue EBITDA 865 7,070 800 787 180 175 7,000 6,873 761 159 600 140 Passengers (in '000) 127 (in € million) 5,000 550 12m 534 (in € million) 4,203 405 100 94 400 3,274 3,000 260 58 60 200 195 182 9m 1,000 20 0 04/05 05/06 06/07 07/08 04/05 05/06 06/

  10. Slide 10: Outlook

    Outlook Known factors which will impact 2008/2009 FY operations „ The new booking reservation and check-in system running at its full functionality „ Baltic Princess delivery and related vessels’ route changes successfully implemented „ Increased passenger bookings for the autumn „ Restructuring of

  11. Slide 11: Consolidated Income Statement

    Consolidated Income Statement 2005/2006 2006/2007 2007/2008* 2008/2009 (in € million) targets Sales 405 761 787 865 Cost of sales (1) (288) (560) (622) Marketing, general & admin (1) (50) (114) (111) EBITDA 94 159 127 175 Margin (%) 23.2% 20.9% 16.1% 20.2% Integration related one-off costs 0 (16) 0

  12. Slide 12: Consolidated Balance Sheet

    Consolidated Balance Sheet (in € million) 31.08.2006 31.08.2007 31.08.2008* Total assets 1,657 1,698 1,898 Non-current assets 1,481 1,537 1,723 Current assets 176 161 175 - of which cash - 90 83 67 Total liabilities 1,077 1,050 1,234 Interest bearing liabilities 956 948 1,120 Other liabilities 121 1

  13. Slide 13: Consolidated Cash Flow Statement

    Consolidated Cash Flow Statement (in € million) 2005/2006 2006/2007 2007/2008* Net income 95 67 20 Depreciation and amortization 27 59 62 Other (43) 9 27 Operating cash flow 79 135 109 Capital expenditure (562) (141) (271) Asset disposal 12 44 29 Free cash flow (471) 38 (133) Debt financing 327 (9)

  14. Slide 14: Fleet loans & loan balance projection

    Fleet loans Fleet loans & loan balance projection „ Average of 10-year scheduled 1200 E U R M illio n s repayment profile 1000 „ No high bullet repayments before 2013 800 „ Not expecting the need for the 600 refinancing 400 „ 80% financing for the 2009 “Cruise 5” contracted. 200 0 FY 2008 2008/2009

  15. Slide 15: Thank you!

    W TALLINK Thank you! ° W TALLINK

  16. Slide 16: Tallink's position in the ferry market

    Tallink´s position in the ferry market Company Employees Vessels GT Beds Passengers Revenues Profit 1 Tallink 6 481 19 981 877 26 523 6 873 339 761 67 2 Stena 5 700 35 965 374 10 815 15 954 000 1 032 59 3 P&O 5 000 585 199 8 303 10 800 000 1 350 4 DFDS Group 4 427 64 790 328 9 777 1 499 000 1 114 54

  17. Slide 17: Tallink in the world

    Appendix Tallink in the world Source: Generation Research - www.generation.se 17

  18. Slide 18: Finland – Estonia: Helsinki – Tallinn

    Appendix Finland – Estonia Helsinki – Tallinn Customers and Products Market Share „ Helsinki – Tallinn Nordic Jet Linda Line Line* 4% — Revenues mainly from onboard and ticket sales Sea 6% — Approximately 66% of the passengers are Finnish Containers* — 2 hour transportation with Tallink Shuttle serv

  19. Slide 19: Finland – Sweden: Helsinki – Stockholm

    Appendix Finland – Sweden Helsinki – Stockholm; Turku – Stockholm/Kapellskär Helsinki-Stockholm Customers and Products Market Share „ Helsinki – Stockholm Helsinki-Stockholm — Revenues mainly from onboard and ticket sales Viking Line — Majority of passengers from Nordic countries 47% — Over-night cr

  20. Slide 20: Sweden – Estonia: Stockholm – Tallinn

    Appendix Sweden – Estonia Stockholm – Tallinn; Kapellskär – Paldiski Customers and Products Market Share „ Stockholm – Tallinn route „ Tallink is the only provider of daily — Revenues mainly from onboard and ticket sales passenger services on the routes between — Approximately 55% of passengers are

  21. Slide 21: Sweden – Latvia: Stockholm – Riga

    Appendix Sweden – Latvia Stockholm – Riga Customers and Products Market Share „ Stockholm – Riga route „ Tallink is the only provider of daily — Revenues mainly from onboard and ticket sales passenger and ro-ro cargo services on the — Approximately 60% of passengers from Baltics route between Sweden

  22. Slide 22: Finland – Germany: Helsinki – Rostock

    Appendix Finland – Germany Helsinki – Rostock Customers and Products Freight Market Share Scandlines „ Helsinki – Rostock route 15% — Revenues mainly from cargo sales Transfennica — 26 hour trip Finnlines Superfast VII Superfast VIII Source: Tallink; publicly available information on competitors; Po

  23. Slide 23: Other business segments

    Other business segments Adding value to our product chain „ Hotel chain in Tallinn — Tallink City Hotel with 330 rooms — Tallink Spa & Conference hotel with 275 rooms — Pirita Top Spa hotel with 267 rooms — Tallink Express Hotel with 163 rooms (Jan. 2009) — Vision to have a hotel operation in all of

  24. Slide 24: Traffic volumes

    Appendix Traffic volumes 2007/2008 2006/2007 change Passengers 7 070 266 6 873 339 2,9% Finland-Sweden 2 860 278 3 234 321 -11,6% Estonia-Finland 2 934 675 2 541 834 15,5% Estonia-Sweden 772 810 710 226 8,8% Latvia-Sweden 357 533 256 690 39,3% Finland-Germany 144 970 130 268 11,3% Cargo Units 331 13

  25. Slide 25: Revenue structure & Segment result

    Appendix Revenue structure & Segment result Geographical segments 2006/07 2007/08 change Segment result 2006/07 2007/08 change EUR thousands Total revenues 760 759 786 753 3.4% Est-Fin 168 833 205 359 22% Est-Fin 52 242 63 260 21% Est-Swe 89 953 97 290 8% Est-Swe 12 594 10 563 -22% Fin-Ger 87 762 71

  26. Slide 26: Operating costs

    Appendix Operating costs Structure Costs in EUR 2006/2007 2007/2008 2006/2007 2007/2008 change Cost of goods 23% 24% -152 517 -175 103 15% Port charges 12% 11% -84 323 -83 008 -2% Bunker cost 14% 18% -91 567 -135 080 48% Staff costs (1) 23% 22% -158 318 -163 856 3% Depreciation and amortisation (2)

  27. Slide 27: Tallink's Fleet

    Appendix Tallink’s Fleet Vessel Silja Serenade, Silja Superfast Romantika, Star Superstar Galaxy, Cruise 5, Silja Symphony Europa vessels Victoria I Baltic Princess Built 1990-1991 1993 2001-2002 2002-2004 2007 2008 2006-2009 Passengers 2,852 3,123 717-728 2,500 1,900 2,080 2,800 Cabins 986-995 1,15

  28. Slide 28: Ownership structure

    Appendix Ownership structure Shareholders of AS Tallink Grupp TOP 10 shareholders on November 17, 2008 % Infortar 40.0% Nordea Bank Finland Plc / Non-resident legal entities 9.6% ING Luxembourg S.A. 8.4% Citigroup Venture Capital International Jersey Ltd 7.3% Infortar State Street Bank / Baupost Gro

  29. Slide 29: Selection of Awards for AS Tallink Grupp in 2007-2008

    Appendix Selection of Awards for AS Tallink Grupp in 2007-2008 29

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