Tallink Group - Tallink SiljaRail Baltica Growth Corridor - RBGC Interregional roundtable
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Presentation
�Company presentation – key values
�Passenger traffic - market areas and figures
�Cargo traffic - market areas and figures
�Strategic plans and visions
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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
� Revenues EUR 814 million
� EUR 1.9 billion asset base
� 6612 employees
� Over 8.4 million passengers annually
� 258 thousand cargo units annually
� Listed on Nasdaq OMX Baltic – TAL1T
Over 50 years of operating and cruising experience
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Tallink business model
On-board Tax-Free Shopping
1-2 overnight cruises &
passenger transportation
Cargo Transportation
Conferences
City break
Hotel & travel packages
Product offering
49,6%
24,9%
43,3%
26,1%
12,4%
Revenue structure(Financial year 2009/10)
Ticket sales
27%
Cargo
12%
Restaurant &
shop sales
54%
Other
7%
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Tallink’s passenger market share is 46% of the Northern
Baltic Sea
Northern Baltic passenger market
0
2
4
6
8
10
12
14
16
18
05/06 06/07 07/08 08/09 09/10
18.2 million passengers
8.4 million passengers
Ta
llin
kViking
line
Eckerö line
Other
(814M)
(8.4M)
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Highlights and milestones
2002 2003 2004 2005 2006 2007 2008
Operations
Newbuilt vessels – investment € 1020 m
Estonia-Finland
Acquisitions € 780 m
2009
Tallinn-Stockholm
RomantikaVictoria I
Galaxy
Star
Superstar
Baltic Princess
Silja Line
Riga-Stockholm
St. Petersburg
Hotel operations
Superfast ferries
Finland-Germany
Finland-Sweden
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IPO
����
����Private Placement
Baltic Queen
2010 2011
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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 Certificate
� MARPOL Oil Pollution Prevention Certificate
� Document of Compliance for Anti-Fouling System
� MARPOL Garbage Pollution Prevention Attestation
� Passenger Ship Safety certificate
� International Ship Security Certificate
� Safety Management Certificate
� Document for Dangerous Goods
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Passenger traffic - market areas and figures
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Market shares
Passenger operations
+3%*+8%*
-12%*
On Estonia-Sweden &
Latvia-Sweden routes
Tallink is the only provider
of short cruises and daily
Passenger transportation
FIN - SWE / Helsinki -Stockholm
53% 53% 53%
47% 47% 47%
2008 2009 2010
FIN - SWE / Turku - Stockholm
54% 57% 57%
46% 43% 43%
2008 2009 2010
40% 42% 41%37% 39% 38%
42% 42% 44% 45%50%
55% 57%
23% 22% 22%22% 20%
16%15% 15%
19% 19%
22%
25% 25%10% 10% 10%12% 11%
12%14% 15%
15% 15%
13%
14% 13%21% 19% 19%
20% 20% 25% 19% 18%
13%10%
7%
3% 6% 6% 7% 7% 5% 7% 8% 5%7%
5% 6% 5%4%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Tallink Viking Line Eckerö Line SuperSeaCat Nordic Jetline Linda Line
Est - Fin / Tallinn - Helsinki
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Market VolumesPassenger operations
Est - Fin / Tallinn - Helsinki
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Market VolumesPassanger Operations – CAR product
Est - Fin / Tallinn - Helsinki
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1.62 1.99 1.81 1.79 1.51
1.36
2.00 1.62 1.81
1.57
1.56
2.16
1.63
1.83
2.33
2.84 2.70
2.36
0
1
2
3
4
5
6
7
8
9
06/07 07/08 08/09 09/10 10/11
8.12
7.076.87
8.43
Passengers (millions)
187 194 181
175 167158
185 188 176 202
227237 255 272
203190
159
0
200
400
600
800
06/07 07/08 08/09 09/10 10/11
792787
761
814
33 29 30 27
21 1510
25 27
14 30
84
4974
78
28
17
0
50
100
150
06/07 07/08 08/09 09/10 10/11
126133
159145
Revenue (EUR millions) EBITDA (EUR millions)
93 9276 68
79
5754
9585
60 69
89
75
59 67
77
64
0
50
100
150
200
250
300
350
06/07 07/08 08/09 09/10 10/11
331
252
360
Cargo (th. units)
258
Resultsquarterly seasonality breakdown
Q1
Q2
Q3
Q4
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Passenger traffic visions
� What we think about the market� The cruising-concept and short voyages will continue to increase
� We are continuously developing different themes
� The current overall uncertainness makes short-term voyages more popular
• job safety – can I go for long trip?
• all tsunamis etc
� There are limitations for growing:� The high seasons fully booked and no place for increased figures.
� To gain major increase in traffic the capacity must also increase.
� To have the possibility to invest in more capacity the “low season” must be made profitable.
� Possible threats � The infrastructure in harbor must meet the concept (ex. Shuttle)
• If not the customers will find other routes
� Possible opportunities� Technology can help us to achieve smooth and seamless boarding (automated check-in etc.)
� The social media helps us to inform the customers about events and special offers.
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Cargo traffic - market areas and figures
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Cargo Volumes diveded per market area
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Cargo-Market sharesCargo operations
Est - Fin / Tallinn - Helsinki
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Cargo VolumesCargo Opertion
Est - Fin / Tallinn - Helsinki
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Cargo Traffic, Helsinki - Tallinn
� Different market areas
• 70 % of traffic within the North Estonia region
• 30 % of traffic Via Baltica and Central Europe
• Russian transito still very small but continuously growing
� Transport modes
• The amount of semitrailers rapidly decreasing (unaccompanied goods)
• The 2 hours crossings made the TruckTrailer mode more interesting and affordable
• ~ 5-7% of our traffic Semi trailers (2007 abt 20%)
• ~ 5% of our traffic “VAN:s” –> an increasing product
• The 2 hour crossing’s like a bridge substitute
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Cargo Traffic visions
� What we think about the market:• Finland – Sweden market, estimated annual growth +6-8%
• Estonia - Finland market, estimated annual growth +10-15%
• Estonia – Sweden market, estimated annual growth +15-20%
� Possible threats..• MarPol Annex VI
• Major impact on the traffic within the Baltic
• Possible modal change from Sea to Road 25 – 30%
• Seafreight increase with +30-50%
• Via Baltica's influence on the market will grow dramatically
� Possible opportunities…• North East passage (Northern Sea Route-Northern Maritime Corridor)
• Central Europe's Asia traffic via Arctic Corridor?
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Strategic Plans
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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 for profitable operations:
- Strive for the highest level of customer satisfaction
- Increase volumes and strengthen the leading position on our home markets
- Develop wide range of quality services for different customers and pursue new growth opportunities
- Reach a optimal debt level that will allow sustainable dividends
Current focus is on core operations to realize past investments. Along with the optimal
fleet deployment the emphasis is on the profitability improvement and deleveraging.
Current strategic cornerstones and competitive advantages:
Most modern
fleet
Wide route
network
Strong market share &
brand awareness
High safety level &
environmental standards
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Our fleet is ISO 14 001 certified
“With us you can protect the environment
and still arrive faster”