Tallinn, 2012-05-11 18:00 CEST (GLOBE NEWSWIRE) -- CORRECTION: Audited Annual Report of the 2010/2011 Financial Year
CORRECTION: added Management Board's Declaration to the Financial Statements, page 82
Due to the change of the financial year the Group’s 2010/2011 financial year was 16 months (01.09.2010-31.12.2011). The comparative financial year 2009/2010 was 12 months (01.09.2009-31.08.2010). The financial years are therefore not entirely comparable.
In the 2010/2011 financial year (01.09.2010-31.12.2011) the Group successfully followed the set strategy. Customer satisfaction improved in several main categories. The Group increased its traffic volumes and market shares throughout the financial year. During the 2010/2011 financial year the volume of passengers transported by the Group vessels was 11.8 million (8.4 million in 2009/2010).
The solution for non-profitable Finland-Germany route was found. In August 2011 two Superfast ships from the route were chartered to a third party and the operations on the route were discontinued.
From continuing operations the Group’s revenue was 1,153.0 million EUR (791.5 million EUR in 2009/2010) gross profit was 251.4 million EUR (180.2 million EUR in 2009/2010) and net profit was 51.7 million EUR (36.5 million EUR in 2009/2010).
Including the discontinued operations the total revenue for the 2010/2011 financial year was 1,178.3 million EUR (813.9 million EUR in 2009/2010). Total gross profit was 238.7 million EUR (168.1 million EUR in 2009/2010) and EBITDA was 199.1 million EUR (145.1 million EUR in 2009/2010). Due to longer 16-months financial year the results include twice the autumn low season whereas only one high season which is visible in the lower gross profit and EBITDA margins than in the previous financial year.
The Group’s target for the 2010/2011 financial year was to outperform previous year results. The target was met both in 16-month as well as 12-month comparison. Net profit for the 2010/2011 financial year was 37.5 million EUR (21.9 million EUR in 2009/2010).
The key highlights for the 2010/2011 financial year were the following:
· Continuous focus on the cost savings
· Improved revenue management with the continuous enhancement of dynamic & flexible pricing
· Ending the operations on the non performing Finland-Germany route
· Increased passenger number and market share
· Increased revenue per passenger
· Reduction of debt
The Management continues to focus on cost efficiency and on the Group’s profitability. The Management estimates that no major changes are foreseen in the Group operations in the 2012 financial year whereas the uncertainties in the overall economic environment and high fuel prices are remaining. The Group’s results are estimated to improve in the 2012 financial year. The developments such as enhancements in the online booking environment, CRM system and dynamic pricing are supporting to reach the targets. A positive impact is expected from the closure of the Finland-Germany route which previous negative result will change to positive result from chartering of ships.
KEY FIGURES OF THE FINANCIAL YEAR 2010/2011
|
01.09.2010- 31.12.2011 |
01.09.2009- 31.08.2010 |
|
| Continuing operations | EUR | EUR |
| Revenue from continuing operations (million) | 1,153.0 | 791.5 |
| Gross profit from continuing operations (million) | 251.4 | 180.2 |
| Net profit from continuing op. (million) | 51.7 | 36.5 |
| Group total including the discontinued operations | ||
| Revenue (million) | 1,178.3 | 813.9 |
| Gross profit (million) | 238.7 | 168.1 |
| Net profit for the period (million) | 37.5 | 21.9 |
| EBITDA (million) | 199.1 | 145.1 |
| Depreciation and amortization (million) | 95.3 | 73.2 |
| Investments (million) | 13.3 | 6.1 |
| Weighted average number of ordinary shares outstanding | 669,882,040 | 669,882,040 |
| Earnings per share | 0.06 | 0.03 |
| Number of passengers | 11,818,870 | 8,428,055 |
| Number of cargo units | 382,869 | 258,773 |
| Average number of employees | 6,720 | 6,612 |
| 31.12.2011 | 31.08.2010 | |
| Total assets (million) | 1,799.5 | 1,871.3 |
| Total liabilities (million) | 1,094.5 | 1,203.6 |
| Interest-bearing liabilities (million) | 959.6 | 1,067.9 |
| Net debt (million) | 884.2 | 1,010.4 |
| Total equity (million) | 705.1 | 667.7 |
| Equity ratio (%) | 39.2% | 35.7% |
| Number of ordinary shares outstanding1 | 669,882,040 | 669,882,040 |
| Shareholders’ equity per share | 1.05 | 1.00 |
| Ratios 2 | ||
| Gross margin (%) | 20.3% | 20.7% |
| EBITDA margin (%) | 16.9% | 17.8% |
| Net profit margin (%) | 3.2% | 2.7% |
| Return on assets (ROA) | 5.7% | 3.8% |
| Return on equity (ROE) | 5.5% | 3.3% |
| Return on capital employed (ROCE) | 6.5% | 4.2% |
| Net debt to EBITDA | 5.4 | 6.9 |
EBITDA: Earnings before net financial items, share of profit of equity accounted investees, taxes, depreciation and amortization;
Earnings per share: net profit / weighted average number of shares outstanding;
Equity ratio: total equity / total assets;
Shareholder’s equity per share: shareholder’s equity / number of shares outstanding;
Gross margin: gross profit / net sales;
EBITDA margin: EBITDA / net sales;
Net profit margin: net profit / net sales;
ROA: Earnings before net financial items, taxes /Average of total assets;
ROE: Net profit/Average shareholders’ equity;
ROCE: Earnings before net financial items, taxes / (Total assets – Current liabilities (average for the period));
Net debt: Interest bearing liabilities less cash and cash equivalents;
Net debt to EBITDA: Net debt / 12-months trailing EBITDA.
1 Share numbers exclude own shares
2 Calculations are made using the Group’s total numbers which include discontinued operations
SALES
The Group’s consolidated revenue from continuing operations amounted to 1,153.0 million EUR in the 2010/2011 financial year (1 September 2010 – 31 December 2011). Restaurant and shop sales on-board and on mainland in the amount of 636 million EUR contribute more than half of the revenue. Ticket sales amounted to nearly 314 million EUR and sales of cargo transport were 142 million EUR. The distribution of sales between operational segments has remained about same when compared to the previous financial year.
Geographically nearly 41% or 475 million EUR of the revenue from continuing operations came from the Finland-Sweden route and 32% or 371 million EUR from the Estonia-Finland route. The faster growth in the latter has had impact to the geographical sales distribution when compared to the previous financial year. The revenue on the Sweden-Estonia route was 140 million EUR and on the Sweden-Latvia route 80 million EUR. In August 2011 the Group ceased operations on the Finland-Germany route which segment is classified as discontinued operations in the Group’s financial statements. The revenue from the Finland-Germany route in the 2010/2011 financial year was 25 million EUR and in the 2009/2010 financial year 22 million EUR.
EARNINGS
From continuing operations the Group’s gross profit was 251.4 million EUR (180.2 million EUR in 2009/2010) and net profit was 51.7 million EUR (36.5 million EUR in 2009/2010). Including the discontinued operations the total gross profit for the 2010/2011 financial year was 238.7 million EUR (168.1 million EUR in 2009/2010) and EBITDA was 199.1 million EUR (145.1 million EUR in 2009/2010).
Net profit from continuing operations was 51.7 million EUR (36.5 million EUR in 2009/2010). The net profit for the period was 37.5 million EUR (21.9 million in 2009/2010). Basic and diluted earnings per share were 0.06 EUR (0.03 EUR in 2009/2010) and basic and diluted earnings per share from continuing operations were 0.08 EUR (0.05 EUR in 2009/2010).
Driven by the overall cost inflation in food and retail products in the region and the Group’s higher shops and restaurant sales the cost of goods, the largest operating cost, amounted to 252.9 million EUR (170.0 million EUR in 2009/2010). However, the Group was able to maintain the profit margin on the goods.
Fuel cost in the 2010/2011 financial year was 182.7 million EUR (110.8 million EUR in 2009/2010). Higher consumption due to the longer financial year but also the increase in the fuel price have been main drivers for the fuel cost. When measured in euros the average market price of the reference fuel (Fuel oil 1%) in 2011 was approximately 33% higher than in 2010.
The Group’s personnel expenses amounted to 227.6 million EUR (161.2 million EUR in 2009/2010). The average number of employees for the 2010/2011 financial year was 6,720 (6,612 in 2009/2010).
The administrative expenses in 2010/2011 financial year amounted to 55.0 million EUR and marketing expenses to 78.2 million EUR (respectively 40.2 and 51.7 million EUR in 2009/2010).
The depreciation and amortisation of the Group’s assets was 95.3 million EUR (73.2 million EUR in 2009/2010). There were no changes in the depreciation policies in the 2010/2011 financial year. There was no impairment loss related to the Group’s tangible assets.
In the 2010/2011 financial year the Group’s net finance cost amounted to 65.0 million EUR (47.4 million EUR in 2009/2010). Interest expense is the largest component in the financial cost. In 2010/2011 financial year interest expense was 56.2 million EUR (39.6 million EUR in 2009/2010). In 2010/2011 expenses from derivatives amounted to 13.2 million EUR (13.1 million EUR in 2009/2010).
The Group’s exposure to credit risk, liquidity risk and market risks and financial risk management activities are described in the notes to the financial statements.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December and 31 August
| in thousands of EUR | ||
|
01.09.2010- 31.12.2011 |
01.09.2009- 31.08.2010 |
|
| Continuing operations | ||
| Revenue | 1,152,994 | 791,530 |
| Cost of sales | -901,597 | -611,286 |
| Gross profit | 251,397 | 180,244 |
| Marketing expenses | -78,172 | -51,738 |
| Administrative expenses | -54,988 | -40,259 |
| Other income | 1,291 | 906 |
| Other expenses | -1,326 | -2,236 |
| Results from operating activities | 118,202 | 86,917 |
| Finance income | 4,277 | 5,238 |
| Finance costs | -69,324 | -52,661 |
| Share of loss of equity accounted investees | -157 | -373 |
| Profit before income tax | 52,998 | 39,121 |
| Income tax | -1,302 | -2,634 |
| Net profit from continuing operations | 51,696 | 36,487 |
| Profit from discontinued operations | -14,220 | -14,637 |
| Net profit for the period | 37,476 | 21,850 |
| Other comprehensive income | ||
| Exchange differences on translating foreign operations | 76 | 709 |
| Changes in fair value of cash flow hedges | -705 | 732 |
| Revaluation of property, plant and equipment | 0 | 1,730 |
| Other comprehensive income/-expense for the period | -629 | 3,171 |
| Total comprehensive income for the period | 36,847 | 25,021 |
| Profit attributable to: | ||
| Equity holders of the Parent | 37,476 | 21,850 |
| Total comprehensive income attributable to: | ||
| Equity holders of the parent | 36,847 | 25,021 |
|
Basic and diluted earnings per share (in EUR per share) |
0.056 | 0.033 |
|
Basic and diluted earnings per share – continuing operations (in EUR per share) |
0.077 | 0.054 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| as of 31 December and 31 August | in thousands of EUR | |
|
31.12.2011 |
31.08.2010 |
|
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 75,421 | 57,488 |
| Trade and other receivables | 35,152 | 42,040 |
| Prepayments | 7,087 | 9,752 |
| Derivatives | 0 | 705 |
| Inventories | 25,198 | 20,035 |
| 142,858 | 130,020 | |
| Non-current assets | ||
| Investments in equity accounted investees | 226 | 214 |
| Other financial assets | 2,551 | 317 |
| Deferred income tax assets | 9,452 | 10,664 |
| Investment property | 300 | 300 |
| Property, plant and equipment | 1,583,002 | 1,663,100 |
| Intangible assets | 61,153 | 66,700 |
| 1,656,684 | 1,741,295 | |
| TOTAL ASSETS | 1,799,542 | 1,871,315 |
| LIABILITIES AND EQUITY | ||
| Current liabilities | ||
| Interest-bearing loans and borrowings | 145,261 | 63,627 |
| Trade and other payables | 86,793 | 94,054 |
| Deferred income | 25,226 | 23,965 |
| Derivatives | 22,668 | 17,634 |
| 279,948 | 199,280 | |
| Non-current liabilities | ||
| Interest-bearing loans and borrowings | 814,305 | 1,004,244 |
| Other liabilities | 198 | 74 |
| 814,503 | 1,004,318 | |
| Total liabilities | 1,094,451 | 1,203,598 |
| Equity | ||
| Equity attributable to equity holders of the Parent | ||
| Share capital | 404,290 | 430,648 |
| Share premium | 639 | 639 |
| Reserves | 70,497 | 72,607 |
| Retained earnings | 229,665 | 163,823 |
| Total equity attributable to equity holders of the Parent | 705,091 | 667,717 |
| Total equity | 705,091 | 667,717 |
| TOTAL LIABILITIES AND EQUITY | 1,799,542 | 1,871,315 |
CONSOLIDATED STATEMENT OF CASH FLOWS
| for the year ended 31 December and 31 August | in thousands of EUR | |
| 2011 | 2010 | |
| Cash flows from operating activities | ||
| Net profit/-loss for the financial year | 37,476 | 21,850 |
| Adjustments: | 164,038 | 127,208 |
| Depreciation and amortisation | 95,283 | 71,920 |
| Impairment loss | 0 | 1,257 |
| Net gain on disposals of property, plant and equipment | -56 | -344 |
| Net interest expense | 55,773 | 39,433 |
| Net expense from derivatives | 11,071 | 11,411 |
| Loss from equity accounted investees | 157 | 373 |
| Net foreign exchange gain / loss related to investing and financing activities | -19 | 524 |
| Share option programme reserve | 527 | 0 |
| Income tax | 1,302 | 2,634 |
| Changes in receivables and prepayments related to operating activities | 10,898 | 10,816 |
| Changes in inventories | -5,163 | -1,020 |
| Changes in liabilities related to operating activities | -3,711 | 5,009 |
| Income tax paid | -107 | -71 |
| 203,431 | 163,792 | |
| Cash flows used in investing activities | ||
| Purchase of property, plant, equipment and intangible assets | -13,258 | -6,112 |
| Proceeds from disposals of property, plant, equipment | 84 | 6,704 |
| Proceeds/ payments from settlement of derivatives | -7,236 | -4,460 |
| Acquisition of equity accounted investees | -169 | -587 |
| Investment | -5 | 0 |
| Interest received | 380 | 173 |
| -20,204 | -4,282 | |
| Cash flows from /used in financing activities | ||
| Redemption of loans | -112,093 | -60,348 |
| Change in overdraft | 0 | -46,115 |
| Payment of finance lease liabilities | -114 | -403 |
| Interest paid | -53,087 | -45,138 |
| -165,294 | -152,004 | |
| TOTAL NET CASH FLOW | 17,933 | 7,506 |
| Cash and cash equivalents: | ||
| - at the beginning of period | 57,488 | 49,982 |
| - increase / decrease | 17,933 | 7,506 |
| - at the end of period | 75,421 | 57,488 |
Janek Stalmeister
Member of the Management Board, CFO
AS Tallink Grupp
Tel +372 640 9800
E-mail janek.stalmeister@tallink.ee
Harri Hanschmidt
Head of Investor Relations
AS Tallink Grupp
Sadama 5/7. 10111 Tallinn
Tel +372 640 8981
E-mail harri.hanschmidt@tallink.ee
