Tallink Grupp AS · OMXTSE:TAL1T
Tallink Grupp AS — AS Tallink Grupp — Investor Presentation (October 2011)
25 slides from Tallink Grupp AS's investor presentation, October 2011
Slide 1: Company presentation
Company presentation 2011 October
Slide 2: Tallink
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 Revenue EUR 897 million EUR 1.9 billion asset base 6 755 employees Over 9 million passengers annually 287 thousand cargo units a
Slide 3: Tallink business model
Tallink business model Product offering 1-2 overnight cruises & passenger transportation Conferences Revenue structure (Financial year 2010/11, 12 months) 49,6% 24,9% On-board Tax-Free Shopping City break Hotel & travel packages Cargo Transportation 43,3% 12,4% 26,1% 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 passenger market share is 48% of the Northern Baltic Sea
Tallink’s passenger market share is 48% of the Northern Baltic Sea (897 (897M) MEUR) Northern Baltic passenger market 20 18.9 million passengers 18 Other Eckerö 16 14 Viking 12 line (9.1M) 9.1 million passengers 10 8 Tallink 6 4 2 5 0 06/07 07/08 08/09 09/10 10/11
Slide 6: Market shares
Market shares Passenger operations Est - Fin / Tallinn - Helsinki 3% 6% 6% 5% 6% 5% 7% 7% 5% 7% 8% 5% 4% 7% 7% 14% 13% 21% 19% 13% 10% 19% 20% 20% 25% 19% 18% 13% 15% 15% 10% 10% 10% 25% 25% 12% 11% 14% 15% 12% 22% 22% 22% 19% 19% 23% 22% 20% 15% 15% 16% On Estonia-Sweden & +3%* -12%* Latvia-Sweden
Slide 7: Highlights and milestones
Highlights and milestones Finland-Sweden OPERATIONS Riga-Stockholm St. Petersburg Finland-Germany Estonia-Sweden Estonia-Finland Hotel operations Newbuilt vessels € 1020 m Silja Line Baltic Queen Acquisitions € 780 m Superfast ferries SuperstarBaltic Princess Private Placement IPO Star Galaxy Victor
Slide 8: 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 2010 Ranking by actual and estimated retail sales in US$ millions. Ferry operator by gross tons Rank Company Gross tons Rank Location Remarks 1 Stena Line 826 323 Sales> US$ 1,000.0 million 2 Grimaldi Lines
Slide 9: Strategic plan
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 v
Slide 10: Future actions
Future actions The Group’s focus is on the core operations — No significant investments are planned Aggressive sales and marketing — directed to home markets Continuous innovation in product development — flexible product offering — special offers and pricing to key customers — development of the CR
Slide 11: Results
Results quarterly seasonality breakdown Q4 Q3 Q2 Q1 11
Slide 12: The dynamics of high seasonality on the profit level
The dynamics of high seasonality on the profit level Net result by quarters 2008/2009 2009/2010 2010/2011 12 months Net loss 8M Net profit 22M Net profit 38M Summer Autumn Winter Spring Typical to the Tallink business model is that the result is made in Q4, the summer high season 12
Slide 13: Passenger traffic
Passenger traffic Passenger number quarterly development 3.5 Millions 3.0 2.84 2.98 2.5 2.70 2.0 2.36 2.16 2.10 1.99 2.00 1.5 1.79 1.81 1.83 1.81 1.51 1.57 1.63 1.62 1.0 0.5 0.0 Passenger revenues Revenue per pax EUR Revenues in EUR m 300 100 250 80 200 247 212 225 60 150 184 165 160 152 167 40 100
Slide 14: Cargo traffic
Cargo traffic Cargo units & revenues Revenue in EUR m 80 100 70 Units in th 92 60 80 85 79 75 76 77 76 50 68 69 70 60 67 44 64 40 60 59 40 39 57 37 54 35 30 40 30 29 28 27 25 24 25 26 23 23 20 20 20 10 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 07/08 07/08 07/08 07/08 08/09 08/09 08/09 08/0
Slide 15: Passengers, revenue and result by segments
Passengers, revenue and result by segments 12 months FY 2010/2011 400 4.4 Passengers in millions Revenue and result in EUR millions 350 300 3.4 250 2.4 200 4.2 366.5 150 274.5 3.2 1.4 100 Operations discontinued 50 106.0 81.5 0.9 since August 2011 0.4 0.7 61.0 63.9 37.4 12.6 11.0 0.1 25.3 0 -1.7 -14
Slide 16: Consolidated Income Statement
Consolidated Income Statement 2007/2008 2008/2009 2009/2010 2010/2011 (in EUR million) 12 months Sales 787 792 814 897 Cost of sales (1) (622) (627) (646) (711) Marketing, general & admin (1) (111) (101) (94) (101) EBITDA 126 133 145 159 Margin (%) 16.0% 16.8% 17.8% 17.7% Net Profit 19 (8.2) 22 38 E
Slide 17: Costs breakdown
Costs breakdown Cost of goods 22% -190 111 Staff costs 15% -127 227 Marketing & Administrative expenses (1) 11% -93 064 Port & stevedoring costs 11% -94 076 Fuel cost 16% -139 059 Ship operating expenses 8% -66 102 Other costs 3% -29 876 Total costs from operations -739 515 Depreciation and amortisa
Slide 18: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement (in EUR million) 2007/2008 2008/2009 2009/2010 2010/2011 12 months Operating cash flow 109 146 164 150 Capital expenditure (271) (163) (6) (10) Asset disposal 29 1 7 0 Free cash flow (133) (16) 165 140 Debt financing 171 59 (107) (59) Equity financing 4 0 0 0 Interes
Slide 19: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position (in EUR million) 31.08.2008 31.08.2009 31.08.2010 31.08.2011 Total assets 1,898 1,947 1,871 1,859 Non-current assets 1,723 1,815 1,741 1,679 Current assets 175 132 130 180 - of which cash - 67 50 57 95 Total liabilities 1,247 1,304 1,203 1,153 Interest be
Slide 20: Loan agreements have aggressive repayment schedules
Tallink’s loan agreements have aggressive repayment schedules, the vessels useful life is however longer Loan balance according to the current repayment schedules Million EUR 1750 Fleet value 1500 1250 1000 750 500 250 0 Aug 31. Aug 31. Aug 31. Aug Aug 31. Aug 31. Aug 31. Aug 31. Aug 31. Aug 31. Aug
Slide 21: Age of fleet
Age of fleet Tallink Grupp ships age (value-weighted average): Tallink + Silja core fleet – 8.6 years Superfast fleet – 9.6 years Ships out of core operations and cargo vessels – 22.3 years World-wide ships age*: Ferries – 23.6 years Cruise – 12.3 years * - source: ShipPax Market:11 Statistics, 2011
Slide 22: Tallink's Fleet
Tallink’s Fleet Baltic Queen Victoria I Built: 2009 Built: 2004 Length 212.1m Length 193.8m Passengers: 2800 Passengers: 2500 Tallinn-Stockholm Lane meters: 1130 Tallinn-Stockholm Lane meters: 1000 Baltic Princess Superfast VII/VIII/IX Built: 2008 Built: 2001/2002 Length 212.1m Length 203.3m Passeng
Slide 23: Tallink's Fleet
Tallink’s Fleet Superstar Star Built: 2008 Built: 2007 Length 175.1m Length 186m Passengers: 2080 Passengers: 1900 Tallinn-Helsinki Lane meters: 1930 Tallinn-Helsinki Lane meters: 2000 Silja Serenade Silja Symphony Built: 1990 Built: 1991 Length 202.9m Length 202.9m Passengers: 2852 Passengers: 2852
Slide 24: Ownership structure
Ownership structure Shareholders of AS Tallink Grupp Ten largest shareholders in onthe 31.08.2010 end of Q4 Infortar 40% ING Luxemburg S.A 10% Nordea Bank Finland PLC / non-resident legal entities 10% Citigroup Venture Capital International Jersey Ltd 7% Skandinaviska Enskilda Banken AB Clients (Eas
Slide 25: Safety, security and environmental protection are a high priority
Safety, security and environmental protection are a high priority Safety and Security Policy Environmental Policy ISO 14001:2004 Environmental Certificate by Lloyds Register MARPOL Sewage Pollution Prevention Certificate MARPOL Air Pollution Prevention Certificate International Anti-Fouling System C
AS Tallink Grupp — Investor Presentation (October 2011) on 6ix