Tallinn, 2013-04-22 05:55 CEST (GLOBE NEWSWIRE) -- Audited Annual Report of the 2012 Financial Year
The Group’s 2012 financial year lasted for 12 months (1 January 2012 - 31 December 2012). Due to the change of the financial year, the comparative financial year, 2011, lasted for 16 months (1 September 2010 - 31 December 2011). The financial years are therefore not directly comparable. In the Management Report, the 2011 comparative figures also include discontinued operations.
In 2012 the Group continued stable growth. In accordance with the strategy, the Group increased volumes and strengthened its market share. Together with improved customer satisfaction, higher revenue per passenger was achieved. Overall, the Group’s profitability increased and financial ratios improved.
During the 2012 financial year a total of 9.26 million passengers travelled on the Group’s vessels. The Group’s consolidated revenue for 2012 was EUR 943.9 million (EUR 1,178.3 million in 2011). Gross profit was EUR 201.2 million (EUR 238.7 million in 2011), EBITDA EUR 165.5 million (EUR 199.1 million in 2011). Net profit for 2012 was EUR 56.3 million (EUR 37.5 million in 2011), representing earnings per share of EUR 0.084 (EUR 0.056 in 2011).
During 2012 the Group focused on upgrading and improving its visibility and appearance in the electronic sales channels. The Group’s new consumer marketing web pages were upgraded. Throughout the year, a new version of the online booking engine was developed. The emphasis was on making the online booking system simple, easy to use and convenient and its prices transparent. Tallink’s mobile booking application was launched for the Android and Apple mobile platforms.
In December 2012 the Group signed a new five-year loan agreement in the amount of EUR 440 million to refinance several of its older loans. In result of the refinancing the Group’s total loan repayment schedule for the next four years was reduced to ensure a stronger liquidity position.
The key highlights of the 2012 financial year were the following:
- Adverse weather in the first half of the year, which impacted the attractiveness of travelling
- Development of the online sales channels
- Increased revenue per passenger
- Sale of cargo vessel Kapella and the holding company
- Refinancing of a significant portion of debt
In management’s opinion, the Group’s financial position has improved to a level which allows the Group to pay dividends. Management will propose to the shareholders’ general meeting a dividend distribution of EUR 0.05 per share, i.e. EUR 33,494,102 in aggregate.
KEY FIGURES OF THE FINANCIAL YEAR 2012
| 2012 | 2011 | |
| Continuing operations | EUR | EUR |
| Revenue from continuing operations (million) | 943.9 | 1,153.0 |
| Gross profit from continuing operations (million) | 201.2 | 251.4 |
| Net profit from continuing operations (million) | 56.3 | 51.7 |
| Group total including discontinued operations | ||
| Revenue (million) | 943.9 | 1,178.3 |
| Gross profit (million) | 201.2 | 238.7 |
| Net profit for the period (million) | 56.3 | 37.5 |
| EBITDA (million) | 165.5 | 199.1 |
| Depreciation and amortization (million) | 71.0 | 95.3 |
| Investments (million) | 9.4 | 13.3 |
| Weighted average number of ordinary shares outstanding | 669,882,040 | 669,882,040 |
| Earnings per share | 0.084 | 0.056 |
| Number of passengers | 9,264,561 | 11,818,870 |
| Number of cargo units | 283,973 | 382,869 |
| Average number of employees | 6,868 | 6,720 |
| 31.12.2012 | 31.12.2011 | |
| Total assets (million) | 1,741.8 | 1,799.5 |
| Total liabilities (million) | 981.0 | 1,094.5 |
| Interest-bearing liabilities (million) | 840.4 | 959.6 |
| Net debt (million) | 774.8 | 884.2 |
| Total equity (million) | 760.8 | 705.1 |
| Equity ratio (%) | 43.7% | 39.2% |
| Number of ordinary shares outstanding1 | 669,882,040 | 669,882,040 |
| Shareholders’ equity per share | 1.14 | 1.05 |
| Ratios2 | ||
| Gross margin (%) | 21.3% | 20.3% |
| EBITDA margin (%) | 17.5% | 16.9% |
| Net profit margin (%) | 6.0% | 3.2% |
| Return on assets (ROA) | 5.4% | 5.7% |
| Return on equity (ROE) | 7.8% | 5.5% |
| Return on capital employed (ROCE) | 6.4% | 6.5% |
| Net debt to EBITDA | 4.7 | 5.4 |
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 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 for the comparative financial year have been made using the total figures which include discontinued operations
SALES
The Group’s consolidated revenue amounted to EUR 943.9 million in 2012. Restaurant and shop sales on-board and on mainland of EUR 517.5 million contributed more than half of total revenue. Ticket sales amounted to EUR 241.0 million and sales of cargo transport to EUR 102.8 million. The distribution of sales between operational segments remained more or less stable compared to the previous financial year.
Geographically, 38% or EUR 364.0 million of revenue came from the Finland-Sweden route and 32% or EUR 308 million from the Estonia-Finland route. Revenue from the Sweden-Estonia route was EUR 115 million or 12% and from the Sweden-Latvia route EUR 66 million or 7%. Revenue from lease of vessels that were previously on the Finland-Germany route and stronger sales at the mainland shops thanks to higher passenger traffic increased the share of revenue generated by other geographical segments to 10.4% (EUR 99.3 million).
EARNINGS
Gross profit was EUR 201.2 million (EUR 238.7 million in 2011), EBITDA EUR 165.5 million (EUR 199.1 million in 2011). Net profit for 2012 was EUR 56.3 million (EUR 37.5 million in 2011). Basic and diluted earnings per share were EUR 0.084 (EUR 0.056 in 2011).
The cost of goods related to sales at shops and restaurants, which is the largest operating cost item, amounted to EUR 213.7 million (EUR 252.9 million in 2011). The cost of goods as a percentage of sales has increased slightly due to changes in the structure of geographical sales. Accordingly, the proportion of sales on the Finland-Estonia route, where the cost of goods is higher, has increased, whereas the share of the Finland-Sweden routes, where the cost of goods is more favourable, has decreased.
Fuel costs for 2012 were EUR 143.9 million (EUR 168.4 million in 2011). Fuel costs were impacted by smaller fuel consumption due to the discontinuance of the Finland-Germany route and an increase in fuel price. Measured in euros, in 2012 the average market price of the reference fuel (Fuel oil 1%) was approximately 13% higher than in the 2011 calendar year.
The Group’s personnel expenses amounted to EUR 180.5 million (EUR 227.6 million in 2011). The average number of employees in the 2012 financial year was 6,868 (6,720 in 2011).
Administrative expenses for 2012 amounted to EUR 44.1 million and marketing expenses to EUR 65.4 million (EUR 55.0 million and 78.2 million respectively in 2011).
Depreciation and amortisation of the Group’s assets was EUR 71.0 million (EUR 95.3 million in 2011). There were no changes in depreciation policies in 2012. There were no impairment losses related to the Group’s property, plant, equipment and intangible assets.
The Group’s net finance costs for 2012 amounted to EUR 41.0 million (EUR 65.0 million in 2011). Interest expense is the largest component in finance costs. In 2012, interest expense was EUR 39.9 million (EUR 56.2 million in 2011). Expenses from derivatives amounted to EUR 6.3 million (EUR 13.2 million in 2011).
The Group’s exposure to credit risk, liquidity risk and market risks, and its financial risk management activities are described in the notes to the financial statements.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December
| In thousands of EUR | |||
|
2012 |
2011 |
||
| Continuing operations | |||
| Revenue | 943,868 | 1,152,994 | |
| Cost of sales | -742,669 | -901,597 | |
| Gross profit | 201,199 | 251,397 | |
| Marketing expenses | -65,407 | -78,172 | |
| Administrative expenses | -44,081 | -54,988 | |
| Other income | 3,659 | 1,291 | |
| Other expenses | -1,654 | -1,326 | |
| Result from operating activities | 93,716 | 118,202 | |
| Finance income | 5,269 | 4,277 | |
| Finance costs | -46,249 | -69,324 | |
| Profit from the sale of a subsidiary | 783 | 0 | |
| Share of profit/loss of equity-accounted investees | 19 | -157 | |
| Profit before income tax | 53,538 | 52,998 | |
| Income tax | 2,764 | -1,302 | |
| Net profit from continuing operations | 56,302 | 51,696 | |
| Loss from discontinued operations | 0 | -14,220 | |
| Net profit for the period | 56,302 | 37,476 | |
| Other comprehensive income | |||
| Exchange differences on translating foreign operations | -563 | 76 | |
| Changes in fair value of cash flow hedges | 0 | -705 | |
| Other comprehensive income/expense for the period | -563 | -629 | |
| Total comprehensive income for the period | 55,739 | 36,847 | |
| Profit attributable to: | |||
| Equity holders of the Parent | 56,302 | 37,476 | |
| Total comprehensive income attributable to: | |||
| Equity holders of the parent | 55,739 | 36,847 | |
|
Basic and diluted earnings per share (in EUR per share) |
0.084 | 0.056 | |
|
Basic and diluted earnings per share – continuing operations (in EUR per share) |
0.084 | 0.077 | |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| In thousands of EUR | ||
| As of 31 December |
2012 |
2011 |
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 65,600 | 75,421 |
| Trade and other receivables | 42,555 | 35,152 |
| Prepayments | 5,151 | 7,087 |
| Inventories | 29,426 | 25,198 |
| 142,732 | 142,858 | |
| Non-current assets | ||
| Investments in equity-accounted investees | 245 | 226 |
| Other financial assets | 296 | 2,551 |
| Deferred income tax assets | 12,264 | 9,452 |
| Investment property | 300 | 300 |
| Property, plant and equipment | 1,526,995 | 1,583,002 |
| Intangible assets | 58,999 | 61,153 |
| 1,599,099 | 1,656,684 | |
| TOTAL ASSETS | 1,741,831 | 1,799,542 |
| LIABILITIES AND EQUITY | ||
| Current liabilities | ||
| Interest-bearing loans and borrowings | 103,685 | 145,261 |
| Trade and other payables | 92,988 | 86,793 |
| Deferred income | 25,458 | 25,226 |
| Derivatives | 22,102 | 22,668 |
| 244,233 | 279,948 | |
| Non-current liabilities | ||
| Interest-bearing loans and borrowings | 736,699 | 814,305 |
| Other liabilities | 69 | 198 |
| 736,768 | 814,503 | |
| Total liabilities | 981,001 | 1,094,451 |
| Equity | ||
| Equity attributable to equity holders of the Parent | ||
| Share capital | 404,290 | 404,290 |
| Share premium | 639 | 639 |
| Reserves | 69,091 | 70,497 |
| Retained earnings | 286,810 | 229,665 |
| Total equity attributable to equity holders of the Parent | 760,830 | 705,091 |
| Total equity | 760,830 | 705,091 |
| TOTAL LIABILITIES AND EQUITY | 1,741,831 | 1,799,542 |
CONSOLIDATED STATEMENT OF CASH FLOWS
| For the year ended 31 December | In thousands of EUR | |
| 2012 | 2011 | |
| Cash flows from operating activities | ||
| Net profit for the period | 56,302 | 37,476 |
| Adjustments: | 109,768 | 164,038 |
| Depreciation and amortisation | 71,001 | 95,283 |
| Net gain on disposals of property, plant and equipment | -45 | -56 |
| Net interest expense | 39,637 | 55,773 |
| Net expense from derivatives | 3,410 | 11,071 |
| Profit from subsidiaries | -783 | 0 |
| Profit/loss from equity-accounted investees | -19 | 157 |
| Net foreign exchange gain/loss related to investing and financing activities | -669 | -19 |
| Share option programme reserve | 0 | 527 |
| Income tax | -2,764 | 1,302 |
| Changes in receivables and prepayments related to operating activities | -5,568 | 10,898 |
| Changes in inventories | -4,228 | -5,163 |
| Changes in liabilities related to operating activities | 6,782 | -3,711 |
| Income tax paid | -40 | -107 |
| 163,016 | 203,431 | |
| Cash flows used in investing activities | ||
| Purchase of property, plant, equipment and intangible assets | -9,449 | -13,258 |
| Proceeds from disposals of property, plant, equipment | 50 | 84 |
| Proceeds from/payments for settlement of derivatives | -3,976 | -7,236 |
| Proceeds from subsidiaries | 1,992 | 0 |
| Acquisition of equity-accounted investees | 0 | -169 |
| Acquisition of other investments | -34 | -5 |
| Interest received | 297 | 380 |
| -11,120 | -20,204 | |
| Cash flows used in/from financing activities | ||
| Proceeds from loans | 440,000 | 0 |
| Redemption of loans | -557,848 | -112,093 |
| Payment of finance lease liabilities | -56 | -114 |
| Interest paid | -36,434 | -53,087 |
| Payment of transaction costs related to loans | -7,379 | 0 |
| -161,717 | -165,294 | |
| TOTAL NET CASH FLOW | -9,821 | 17,933 |
| Cash and cash equivalents: | ||
| - at the beginning of period | 75,421 | 57,488 |
| - increase / decrease | -9,821 | 17,933 |
| - at the end of period | 65,600 | 75,421 |
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
