Company Presentation: October 2009

Company Presentation October 2009

Tallink in brief



Tallink is the leading European provider of leisure and business travel and sea transportation services in the Baltic Sea.



Fleet of 20 vessels



Operating four hotels in Tallinn



Revenues EUR 787 million (FY07/08)



EUR 2.0 billion asset base



More than 6,800 employees



Over 8 million passengers annually



252 thousand cargo units annually



Listed on OMX Tallinn – TAL1T

Over 50 years of operating and cruising experience

The size of the market 20

Total market (passengers, millions)

18 16 14 Aland-Swe Fin-Swe Lat-Swe Est-Swe Tal-Hel

12 10

9m

8

5m

6 4 2 0

1.5m

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Tallink’s passenger volume development (millions)

2.6m

8 7 6 5 4 3 2 1 0 1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Tallink business model

Product offering 1-2 overnight cruises & passenger transportation

Conferences

Operational segments Others 5,2%

Cargo 20,2%

49,6%

Restaurants & shop sales 49,6%

24,9%

On-board Tax-Free Shopping

City break

Ticket sales 24,9%

Geographical segments Lat-Swe 4,5%

Other 4,7%

Fin-Ger 9,0%

Hotel & travel packages

Cargo Transportation 43,3%

Est-Swe 12,4%12,4%

26,1% Est-Fin 26,1% Data: Financial year 2007/08

Fin-Swe 43,3%

Competition

Market shares (passengers)

Finland-Sweden

Tallinn-Helsinki

Finland-Germany

Linda Line 6% Eckerö 14%

54%

55%

VikingLine 25%

-13%*

+3%*

+8%*

Finnlines VikingLine

40%

60%

46%

On Estonia-Sweden & Latvia-Sweden routes Tallink is the only provider of daily passenger transportation

The market share improved on the main routes Tallinn – Helsinki and Finland-Sweden

* - change of market share from last year Source: Tallink; publicly available information on competitors; Port of Tallinn

Tallink´s position in the global ferry market

Operators by Gross Tons Rank Company 1 Stena Line 2 Tallink 3 P&O Ferries 4 Tirrenia 5 ANEK lines

Gross tons 760 715 600 995 502 924 386 967 342 861

Operators by revenues (2008) Rank Company Revenue (mEuro) 1 P&O Ferries 1 030,0 2 Stena Line 945,8 3 Tallink 786,8 4 Finnlines 735,7 5 Scandlines 584,0

Data: Ro/pax / ferries above 1,000 GT Source: ShipPax MARKET:09

Operators by beds Rank Company 1 Tallink 2 Stena Line 3 Tirrenia 4 Viking Line 5 Grandi Navi Veloci

Beds 27 798 14 374 14 288 13 754 11 960

Operators by no. of employees Rank Company 1 Tallink 2 Stena Line 3 P&O Ferries 4 DFDS Seaways 5 Color Line

Staff 6 093 5 700 5 000 4 215 3 827

Tallink in the world

Source: Generation Research - www.generation.se

Highlights and milestones

Revenue (€ mln) 800

Routes

787

761

Finland-Sweden Riga-Stockholm

600 550

534

Finland-Germany

St. Petersburg Tallinn-Stockholm

405

400

Estonia-Finland

260

200

Newbuilt vessels – investment € 1020 mln

Baltic Queen Baltic Princess Galaxy

Victoria I

Romantika

195

182

Star

0 04/05 05/06

Superstar

06/07

07/08

EBITDA (€ mln) 180 159

Acquisitions - € 780 mln

IPO Silja Line Superfast ferries Private Placement

Tallink Taxi Tallink Express Hotel

140

127

100

94

Pirita Top Spa Hotel

Tallink Spa & Conference Hotel

60

58

Tallink City Hotel 20

2001

2002

2003

2004

2005

200

2007 6

2008

2009 04/05

05/06 06/07

07/08

Fleet renewal program (2002-2009) is completed

The newbuilding Baltic Queen was delivered in April 2009

Baltic Queen - EUR 180 million Delivery: April 2009 Passengers: 2,800

Outlook 

Modern cruise ferry prices have increased significantly



After the delivery of Baltic Queen, Tallink has most modern and competitive fleet



Currently no more new orders are planned



The need for further newbuildings and new standards will become clear in 3-5 years.

0

Recent development - Passenger traffic

Monthly passenger volume (th.) 1 200 1 000

Annual growth +1 million (+15%) 800 600 400 200 Sep.

Oct.

Nov.

Dec.

Jan.

Feb. 2007/08

Mar.

Apr.

May

June

July

Passengers Finland - Sweden Estonia - Finland Estonia - Sweden Latvia - Sweden Finland - Germany

2007/08 7 070 264 2 860 278 2 934 674 772 811 357 533 144 968

2008/09 8 124 412 3 169 370 3 485 321 850 087 520 493 99 141

change 14,9% 10,8% 18,8% 10,0% 45,6% -31,6%

Passenger cars Finland - Sweden Estonia - Finland Estonia - Sweden Latvia - Sweden Finland - Germany

671 537 164 059 363 194 52 839 51 652 39 793

862 982 181 127 528 662 56 915 68 754 27 524

28,5% 10,4% 45,6% 7,7% 33,1% -30,8%

Aug.

2008/09

The number of passengers grew on all routes, except Finland-Germany where the traffic capacity was reduced

1

Recent development - Cargo traffic

Monthly cargo volume (th. units) 35

Annual decrease -24%

30 25

Cargo units Finland - Sweden Estonia - Finland Estonia - Sweden Latvia - Sweden Finland - Germany

20 15 10 5 Sep.

Oct.

Nov.

Dec.

Jan.

Feb. 2007/08

Mar.

Apr.

May

June

July

Aug.

2008/09

Cargo volumes have stabilized on a new, but lower level. The volumes are lower on all routes, except Latvia-Sweden

2007/08 331 151 102 949 118 526 44 353 13 262 52 061

2008/09 252 035 87 625 94 321 31 271 13 587 25 231

change -23,9% -14,9% -20,4% -29,5% 2,5% -51,5%

2

Consolidated Income Statement

(in € million)

2005/2006

Sales Cost of sales (1) Marketing, general & admin (1) EBITDA Margin (%) Integration related one-off costs Net Profit (2) EPS (2)

Notes: (1) Includes depreciation and amortization (2) 2005/2006 Net Profit adjusted with exclusion of negative goodwill

2006/2007

2007/2008

405

761

787

(288)

(560)

(622)

(50)

(114)

(111)

94

159

127

23.2%

20.9%

16.1%

0

(16)

0

50

67

20

0.09

0.10

0.03

3

Consolidated Balance Sheet

(in € million) Total assets

31.08.2006

31.08.2007

31.08.2008

1,657

1,698

1,898

1,481

1,537

1,723

176

161

175

90

83

67

1,077

1,050

1,234

Interest bearing liabilities

956

948

1,120

Other liabilities

121

102

114

580

648

664

Gearing (1)

62.2%

59.4%

62.8%

Equity/assets ratio

35.0%

38.2%

35.0%

0.86

0.96

0.99

Non-current assets Current assets - of which cash Total liabilities

Shareholders’ equity

BVPS (2) (in EUR) Note: (1) Gearing represents interest bearing liabilities / (interest bearing liabilities + shareholders’ equity) (2) Shareholders’ equity / number of shares outstanding

4

Consolidated Cash Flow Statement

(in € million) Net income

2005/2006

2006/2007

2007/2008

95

67

20

27

59

62

(43)

9

27

79

135

109

(562)

(141)

(271)

Asset disposal

12

44

29

Free cash flow

(471)

38

(133)

Debt financing

327

(9)

171

Equity financing

226

0

(4)

Interests & other financial items

(12)

(36)

(51)

69

(7)

(17)

Depreciation and amortization Other Operating cash flow Capital expenditure

Change in cash

5

Fleet loans

Fleet loans & loan balance projection



Average of 10-year scheduled repayment profile No high bullet repayments before 2013

12 00 EUR Millions



10 00

80 0

60 0

40 0

20 0

FY 0

2008/2009

20 08

2009/2010

2 00 9

2010/2011

2 01 0

2011/2012

2 01 1

Estimated market value of the fleet is ca EUR 2 billion.

2012/2013

20 12

2013/2014

20 13

20 14

6

CONFIDENTIAL

Ownership structure

Shareholders of AS Tallink Grupp

Infortar 40% Infortar AS 39%

Top 10 shareholders Institutional investors Retail investors

Ten largest shareholders on Sept.15, 2009

%

Infortar

40,0%

ING Luxembourg S.A.

10,1%

Nordea Bank Finland Plc / Non-resident legal entities

9,8%

Citigroup Venture Capital International Jersey Ltd

7,3%

State Street Bank / Trust Omnibus Account A Fund No.OM01

4,3%

Skandinaviska Enskilda Banken AB Clients

3,5%

JP Morgan Chase clients / Vanguard Marketing Corp.

1,8%

Firebird Republics Fund Ltd

1,2%

BNYM / ING BANK SLASKI AC LM AKCJI FIO

1,2%

Firebird Avora Fund Ltd

1,1%