Market announcement

Title

AS Tallink Grupp Unaudited Consolidated Interim Report Q4 2019

Message

In the 2019 financial year (1 January - 31 December), Tallink Grupp AS and its
subsidiaries (the Group) carried a record number, a total of 9 763 210
passengers, which is 6 599 passengers more compared to the 2018 financial year.
The number of cargo units transported decreased by 1.4% compared to the previous
financial year. The Group's unaudited consolidated revenue amounted to EUR
949.1 million (EUR 949.7 million in 2018). Unaudited EBITDA was EUR 171.1
million (EUR 142.8 million, 2018) and unaudited net profit for the financial
year was EUR 49.7 million or EUR 0.07 per share (EUR 40.0 million or EUR 0.06
per share, 2018).

In the 2019 financial year, the Group's revenue and operating result were
impacted by the following operational factors:

  * The number of passengers travelling on the Group's ships increased in almost
    all geographical segments (Estonia-Finland, Finland-Sweden and Latvia-
    Sweden).
  * Planned dockings of seven ships. Among other ships, the maintenance and
    repair of cruise ferry Baltic Queen lasted for 42 days, which affected the
    Estonia-Sweden segment's first quarter carriage volumes and financial
    result.
  * The competition on the maritime traffic between Estonia and Finland puts
    pressure on ticket and cargo prices.
  * Lowered alcohol excise tax in Estonia effective from 01 July 2019.
  * Lower bunkering prices from lower global prices and fuel price agreements.
  * Tight cost control, investments to vessels' energy efficiency and automation
    projects.

Sales and segments

In 2019, the Group's total revenue decreased by EUR 0.6 million and amounted to
EUR 949.1 million. The total revenue in 2018 amounted to EUR 949.7 million and
in 2017 EUR 967.0 million. The total revenue from the route operations (core
business) decreased by EUR 0.6 million to EUR 883.2 million.

The core business was heavily affected by the weaker than expected cargo market,
being mainly influenced by the uncertainty surrounding the UK's withdrawal from
the EU, the labour strikes in Finland in the fourth quarter of 2019 and
increased competition through added capacity.

In 2019, The Group's ships carried a total of 5.1 million passengers on the
Estonia-Finland routes, which is 0.7% increase compared to last year and the
number of transported cargo units on the routes decreased by 1.5%. Due to
pressure on ticket and cargo prices resulting from increased competition,
Estonia-Finland routes' revenue decreased by EUR 2.0 million and amounted to EUR
354.0 million. However, the segment result was supported by strong cost control,
improved operational efficiency and lower fuel cost. The segment result
increased by EUR 0.1 million and amounted to EUR 80.4 million.

The Finland-Sweden routes' revenue increased by EUR 6.9 million and amounted to
EUR 344.4 million. The segment's result increased by EUR 10.6 million, compared
to the previous year, and amounted to EUR 26.8 million. The positive
developments were affected by the absence of lengthy maintenance and repair
works cruise ferry Baltic Princess had in the first quarter of 2018 as well as
supported by lower fuel cost and tight cost control.

The Estonia-Sweden routes' revenue decreased by EUR 6.7 million, compared to the
previous year, and amounted to EUR 112.3 million. The routes' carriage volumes
and financial result were affected by the maintenance and repair works of cruise
ferry Baltic Queen in the first quarter of 2019 financial year.

The Latvia-Sweden route's revenue increased by EUR 1.2 million, compared to the
previous year. The growth was supported by a 0.5% higher passenger number and a
3.4% increase in the number of transported cargo units. Supported by lower fuel
cost and tight cost control, the segment's result increased by EUR 1.6 million,
which exceeded the route's revenue growth.

The revenue from the other segment decreased by a total of EUR 1.1 million and
amounted to EUR 73.7 million. The main reason for the decrease in other segment
revenue was lower revenue from hotels, as Tallink Pirita Spa Hotel in Tallinn
ceased operations from November 2018 due to sale of the hotel property by its
owner. Unlike the accommodation sales, there was an increase in onshore shop
sales, being supported by the lower excise tax in Estonia effective from 01 July
2019 as well as the new brand shops on land.

Earnings

In 2019, the Group's gross profit increased by EUR 13.1 million compared to last
year, amounting to EUR 196.9 million. The Group's EBITDA increased by EUR 28.3
million and amounted to EUR 171.1 million, 2019 financial year comparable
EBITDA, i.e. without IFRS 16 adoption effect, increased by EUR 11.0 million
compared to last year and was EUR 153.7 million. The Group's profitability was
impacted mainly by the following factors:

  * Total EUR 12.9 million lower fuel cost. The fuel cost saving resulted from
    agreements with the fuel suppliers to fix the price for 41% of total fuel
    purchasing volume for the 2019 financial year and from savings on total fuel
    consumption, through various energy efficiency initiatives. In addition to
    that, the fuel cost was also positively affected by lower global bunkering
    prices.
  * Higher income tax due to increase in dividends compared to last year.
  * Positive impact to EBITDA from increase of revenue from shops on land (in
    port area) due to lowered alcohol excise tax in Estonia effective from 01
    July 2019.
  * Negative impact to EBITDA from nonrecurring costs in the amount of EUR 2.4
    million including tax related to the Managerial Personnel termination
    benefits.

Amortisation and depreciation expense increased by EUR 17.0 million to EUR 96.2
million compared to last year. The increase was a result of the IFRS 16 adoption
effect in the amount of EUR 15.0 million.

Net finance costs decreased by EUR 1.2 million compared to last year. The change
includes a decrease of EUR 4.5 million in interest costs compared to same period
the previous year and EUR 0.9 million less profit from foreign exchange
differences and the revaluation of cross currency and interest rate derivatives.
In addition, in 2019 there was EUR 2.3 million interest expense from right-of-
use assets liabilities (IFRS 16 adoption effect).

The Group's unaudited net profit for 2019 financial year was EUR 49.7 million or
EUR 0.074 per share compared to a net profit of EUR 40.0 million or EUR 0.060
per share in 2018 and net profit of EUR 46.5 million or EUR 0.069 per share in
2017.

Investments

In the 2019 financial year the Group's investments amounted to EUR 60.9 million.
Majority of the investments were made to technical dockings of seven vessels:
Baltic Queen, Galaxy, Regal Star, Star, Silja Symphony, Victoria I, Isabelle.
During the dockings, a number of investments were made to upgrade the ships
restaurants, shops and other public areas. On cruise ferry Baltic Queen the Fast
Lane restaurant was built, Grande Buffet and show bar Starlight were renewed. On
cruise ferry Galaxy the Fast Lane restaurant was built, Grande Buffet and show
bar Starlight were renewed, on the Fashion Street the SuperDry shop in shop was
added and kids area Silja Land was renewed. On cruise ferry Silja Symphony the
Starlight show bar was refurbished according to a new concept, restaurant Grill
House, Bon Vivant and Sea Pub were renewed, the new Tommy Hilfiger shop was
added and cabin renovation project was concluded.

In addition to dockings, investments were also made to the ships' technical
maintenance to keep the ships in good technical working condition and innovative
energy efficiency solutions were introduced, like upgrade of HVAC systems, fuel
monitoring systems, preparations for high voltage shore power connections and
hybrid battery solutions.

The Group's investments also included a prepayment for new LNG shuttle vessel
MyStar in the amount of EUR 12.4 million paid in the second quarter of the 2019
financial year.

Investments were also made to the development of the online booking and sales
systems.

Dividends

In May 2019 the shareholders' annual general meeting decided to pay a dividend
of EUR 0.05 per share from net profit for 2018. The total dividend amount of EUR
33.5 million was paid out on 03 July 2019. In addition, to improve the Company's
capital structure, the shareholders' annual general meeting decided to reduce
the Company's share capital by EUR 0.07 per share or by EUR 46.9 million, which
was paid out on 03 December 2019.

To the shareholders' annual general meeting in 2020 the management board will
propose a dividend of EUR 0.06 per share from the financial year 2019 net
profit.

Results of the Q4 of 2019

In the fourth quarter (1 October - 31 December) of 2019, the Group's revenue
decreased by EUR 0.2 million compared to same period last year and amounted to
EUR 226.4 million. Restaurant and shop sales on-board and onshore increased by
EUR 3.7 million, ticket revenue decreased by EUR 0.9 million and, as a result of
4.7% less transported cargo units, cargo revenue decreased by EUR 3.1 million.

The fourth quarter EBITDA increased by EUR 9.4 million to EUR 33.4 million and
net profit for the period was EUR 5.5 million. The positive development was
affected by lower fuel cost and tight cost control as well as the absence of
nonrecurring costs made in the fourth quarter of 2018.

In the fourth quarter of 2019, the Group's revenue and operating result were
also impacted by the support strike in Finland, which resulted in 6 cancelled
departures on Finland-Sweden routes. Due to the Postal and Logistics Union
strike, the Christmas Gift cards on the Finnish market were received with a
delay, shifting a portion of the expected revenue from December to January.

Financial position

In the fourth quarter, the Group's net debt increased by EUR 12.4 million to EUR
539.0 million (EUR 428.0 at 31 December 2018) and the net debt to EBITDA ratio
was 3.1 at the reporting date (3.0 at 31 December 2018).

At the end of the fourth quarter, total liquidity (cash, cash equivalents and
unused credit facilities) amounted to EUR 128.9 million (EUR 157.2 million at
31 December 2018) providing a strong financial position for sustainable
operations.

At 31 December 2019, the Group's cash and cash equivalents amounted to EUR 38.9
million (EUR 82.2 million at 31 December 2018) and the Group had EUR 90.0
million in unused credit lines (EUR 75.0 million at 31 December 2018).

Economic Environment

The group operates shipping routes to and from Finland, Sweden, Estonia and
Latvia and therefore considers these countries its home markets. As nearly half
of the passengers are Finns the Group is exposed the most to economic
developments in Finland. Exposure is also high to economic developments in
Estonia (19% of total passengers in 2019) and Sweden (11%). The number of
passengers from Latvia accounted for 4% of the total passengers in 2019 with the
remaining 21% from the rest of the world, mainly Europe.

The business confidence (OECD measure) slipped throughout the year, including
fourth quarter of 2019, across all the home markets, and remains currently
clearly below the long-term averages. This dynamic of high uncertainty reflects
also in the development of the number of transported cargo units. In addition,
our cargo operations were adversely affected also by increased competition,
specific issues within certain industries and strikes in Finland. Despite the
average confidence remaining lower than a quarter ago, the monthly developments
in the fourth quarter 2019 looked more encouraging, particularly in Latvia and
Estonia but also in Finland.

The confidence of Estonian and Latvian consumers continued to increase in the
fourth quarter of 2019, both over the previous quarter and over last year's
level. The confidence of Finnish and Swedish consumers remained on par with the
recent results (third quarter of 2019) which is a good development given the
consistent erosion seen over the past years. On the Estonia-Finland route, the
on-board sales were further supported by the lowering of Estonian excises taxes
in July 2019. The strengthening of Swedish Krona from mid-October onwards was
another supportive factor to our passenger operations.

As was the case throughout the year the labour market situation continued to be
challenging also in the fourth quarter of 2019, particularly in Estonia - low
unemployment and high expectations on salaries. Seasonally lower staff need in
the last quarter of the year eased the situation somewhat compared to the
summer.

On a more positive side, the pace of inflation slowed in the fourth quarter of
2019 to the lowest quarterly level seen in 2019 on all the home markets, except
Sweden. In the fourth quarter of 2019 inflation, according to Eurostat, remained
fairly close to the ECB long-term target rate of 2% in Estonia, Latvia and
Sweden. Inflation continued to be the lowest in Finland falling as low as 0.9%
in the last quarter of 2019.

The effective market prices of the relevant fuels (in euros) remained more than
4% lower relative to the fourth quarter of 2018. However, in December the prices
were higher than a year ago. As we continue to have exposure to market prices
the fuel price hikes remain one of the characteristic risks of our operations.

Other key risks to the home markets' environment continue to be related to
global uncertainties (including trade tensions between China and the US and in
particular to the UK's withdrawal from the EU) and deferral of investments
leading to decreasing trade for all of the open economies around the Baltic Sea.
The persisting global uncertainties appear to already drive declining business
confidence and lower investments leading to the most relevant markets in Europe
flirting with recession as well as weakening of our cargo operations. Also,
subject to the persistence and extent, the coronavirus outbreak could lead to
lower demand for passengers from Asia.

Events in Q4

Capital reduction
In May 2019, the shareholders' general meeting decided to reduce the Company's
share capital by EUR 0.07 per share or by EUR 46.9 million, in order to improve
the Company's capital structure. The share capital reduction was paid out on 03
December 2019.

Changes in the Group structure
In November 2019, Tallink Fast Food OÜ, a wholly-owned subsidiary of Tallink
Grupp AS, registered a wholly-owned subsidiary in Lithuania - Tallink Fast Food
Lithuania UAB- which is the Group's first subsidiary in Lithuania, and a wholly-
owned subsidiary in Latvia - Tallink Fast Food Latvia SIA. The purpose of
founding the subsidiaries is operation of Burger King restaurants in Lithuania
and Latvia.

Change in Tallink Grupp AS loan obligations
In November 2019, Tallink Grupp AS signed a revolving credit facility agreement
in the amount of EUR 60 million. The financing provided by Swedbank AS carries
Euribor based floating interest rate and has a final maturity of four years.

The loan can be drawn on demand and proceeds could be used for general corporate
purposes. As a result of the transaction, the Group's liquidity buffers are
strengthened. The new loan is guaranteed by Baltic SF VII Ltd., a subsidiary of
Tallink Grupp AS and is secured by the mortgage on vessel Silja Europa belonging
to the same subsidiary.

Events after the reporting period and outlook

Fuel price risk management
The Group has agreed with its fuel suppliers to fix prices for a substantial
portion of its total fuel purchasing volume for the 2020 financial year.

Ship dockings
The modernisation of the Group's fleet continues in 2020 and in the first
quarter there are planned dockings of five vessels: Seawind, Megastar,
Romantika, Silja Europa and Silja Symphony.

The investments will be made to ship's technical maintenance, upgrades to public
areas and a number of energy efficiency projects as well as projects to reduce
emissions such as the trial of the wind-assisted ship propulsion unit for Regal
Star, the installation of the Ballast Water Treatment System and replacement of
the vessel's provision cooling system on Silja Europa. The planned service
breaks of five vessels will total to 69 days in the first months of 2020.

Prepayments for new shuttle vessel MyStar
In the first quarter of 2020, another prepayment in the amount of EUR 12.4
million will be made for new shuttle vessel MyStar. During the 2020 financial
year, two additional prepayments will be made in the second and the third
quarter, each in the amount of EUR 24.7 million.

Changes in the Group structure
In February 2020, Hansatee Cargo AS, a wholly-owned subsidiary of Tallink Grupp
AS, was merged with the Group company Tallink AS and thereafter deleted from the
Commercial Registry.

Earnings
The Group's earnings are not generated evenly throughout the year. The summer
period is the high season in the Group's operations. In management's opinion and
based on prior experience most of the Group's earnings are generated during the
summer period (June-August).

Research and development projects
Tallink Grupp AS does not have any substantial ongoing research and development
projects. The Group is continuously seeking opportunities for expanding its
operations in order to improve the results.

The Group is looking for innovative ways to upgrade our ships and passenger area
technology to improve the overall performance of our company through modern
solutions. The most recent project, in collaboration with ports in the Baltic
Sea area, involves making the preparations for the use of high-voltage shore
connection during the vessels' port stays. Another ongoing collaboration with
the Tallinn University of Technology (TalTech) involves the development of
?Smart Car Deck" solutions.

In addition, the Group is participating in a programme, funded by the European
Space Agency, with a goal to develop techniques for autonomous navigation for
ships, using a combination of different sensors, machine learning and artificial
intelligence.

Risks
The Group's business, financial position and operating results could be
materially affected by various risks. These risks are not the only ones we face.
Additional risks and uncertainties not presently known to us, or that we
currently believe are immaterial or unlikely, could also impair our business.
The order of presentation of the risk factors below is not intended to be an
indication of the probability of their occurrence or of their potential effect
on our business.

  * Accidents, disasters
  * Macroeconomic developments
  * Changes in laws and regulations
  * Relations with trade unions
  * Increase in the fuel prices and interest rates
  * Market and customer behaviour


Key figures

 For the period                                    Q4 2019     Q4 2018 Change %
-------------------------------------------------------------------------------
 Revenue (million euros)                             226.4       226.6    -0.1%

 Gross profit (million euros)                         39.1        34.6    12.8%

 EBITDA¹ ² (million euros)                            33.4        24.0    39.3%

 EBIT¹ (million euros)                                 9.0         3.7   144.3%

 Net profit/loss for the period (million
 euros)                                                5.5        -1.8   411.0%



 Depreciation and amortisation³ (million
 euros)                                               24.5        20.3    20.4%

 Capital expenditures¹ ?(million euros)               10.0        16.0

 Weighted average number of ordinary shares
 outstanding                                   669 882 040 669 791 219     0.0%

 Earnings/loss per share¹                            0.008      -0.003   411.0%



 Number of passengers¹                           2 280 805   2 247 226     1.5%

 Number of cargo units¹                             93 645      98 286    -4.7%

 Average number of employees¹                        7 197       7 228    -0.4%



 As at                                            31.12.19    30.09.19 Change %
-------------------------------------------------------------------------------
 Total assets³ (million euros)                     1 533.0     1 564.2    -2.0%

 Total liabilities (million euros)                   710.1       746.5    -4.9%

 Interest-bearing liabilities? (million euros)       577.9       564.8     2.3%

 Net debt¹ (million euros)                           539.0       526.6     2.4%

 Net debt to EBITDA¹                                   3.1         3.3    -3.3%

 Total equity (million euros)                        822.8       817.7     0.6%

 Equity ratio¹ (%)                                     54%         52%



 Number of ordinary shares outstanding         669 882 040 669 882 040     0.0%

 Equity per share¹                                    1.23        1.22     0.6%



 Ratios¹                                           Q4 2019     Q4 2018
-------------------------------------------------------------------------------
 Gross margin (%)                                    17.3%       15.3%

 EBITDA margin (%)                                   14.8%       10.6%

 EBIT margin (%)                                      4.0%        1.6%

 Net profit/loss margin (%)                           2.4%       -0.8%



 ROA (%)                                              4.8%        4.1%

 ROE (%)                                              6.0%        4.8%

 ROCE (%)                                             5.7%        5.2%


(1) Alternative performance measures based on ESMA guidelines are disclosed in
the Alternative Performance Measures section of this Interim Report.
(2) EBITDA adjusted for Q4 2019 without IFRS 16 adoption effect was EUR 28.9
million.
(3) Please see note 6 for IFRS 16 adoption effect on assets.
(4) Please see note 8 for IFRS 16 adoption effect on interest-bearing
liabilities.
(5) Does not include additions to right-of-use assets.

EBITDA: result from operating activities before net financial items, share of
profit of equity-accounted investees, taxes, depreciation and amortization
EBIT: result from operating activities
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
EBIT margin: EBIT / net sales
Net profit margin: net profit / net sales
Capital expenditure: additions to property, plant and equipment - additions to
right-of-use assets + additions to intangible assets
ROA: earnings before net financial items, taxes 12-months trailing / average
total assets
ROE: net profit 12-months trailing / average shareholders' equity
ROCE: earnings before net financial items, taxes 12-months trailing / (total
assets - current liabilities (average for the period))
Net debt: interest-bearing liabilities less cash and cash equivalents
Net debt to EBITDA: net debt / EBITDA 12-months trailing


Consolidated statement of profit or loss and other comprehensive income

                                                               Jan-Dec  Jan-Dec
 Unaudited, in thousands of EUR              Q4 2019  Q4 2018     2019     2018
-------------------------------------------------------------------------------
 Revenue (Note 3)                            226 375  226 550  949 119  949 723

 Cost of sales                              -187 305 -191 928 -752 234 -765 892
-------------------------------------------------------------------------------
 Gross profit                                 39 070   34 622  196 885  183 831



 Sales and marketing expenses                -16 365  -16 714  -67 727  -69 315

 Administrative expenses                     -14 375  -16 371  -56 783  -55 495

 Other operating income                          723    2 134    2 599    4 633

 Other operating expenses                        -83        0     -106     -153
-------------------------------------------------------------------------------
 Result from operating activities              8 970    3 671   74 868   63 501



 Finance income (Note 4)                           4      864      995    8 631

 Finance costs (Note 4)                       -4 228   -5 376  -18 674  -27 552

 Share of profit/loss of equity-accounted
 investees                                        -4        4       -4        4
-------------------------------------------------------------------------------
 Profit/loss before income tax                 4 742     -837   57 185   44 584



 Income tax                                      732     -923   -7 467   -4 535



 Net profit/loss for the period                5 474   -1 760   49 718   40 049

 Net profit/loss for the period
 attributable to equity holders of the
 Parent                                        5 474   -1 760   49 718   40 049



 Other comprehensive income

 Items that may be reclassified to profit
 or loss

 Exchange differences on translating
 foreign operations                             -295      -35      161      267
-------------------------------------------------------------------------------
 Other comprehensive income for the period      -295      -35      161      267



 Total comprehensive income for the period     5 179   -1 795   49 879   40 316

 Total comprehensive income for the period
 attributable to equity holders of the
 Parent                                        5 179   -1 795   49 879   40 316



 Earnings/loss per share (in EUR, Note 5)      0.008   -0.003    0.074    0.060
-------------------------------------------------------------------------------


Consolidated statement of financial position

 Unaudited, in thousands of EUR                      31.12.2019 31.12.2018
--------------------------------------------------------------------------
 ASSETS

 Cash and cash equivalents                               38 877     82 175

 Trade and other receivables                             37 606     43 805

 Prepayments                                              6 805      6 084

 Prepaid income tax                                          67         46

 Inventories                                             37 255     35 741
--------------------------------------------------------------------------
 Current assets                                         120 610    167 851



 Investments in equity-accounted investees                  403        407

 Other financial assets and prepayments                   1 619        320

 Deferred income tax assets                              18 674     17 934

 Investment property                                        300        300

 Property, plant and equipment (Note 6)               1 347 093  1 267 928

 Intangible assets (Note 7)                              44 264     46 164
--------------------------------------------------------------------------
 Non-current assets                                   1 412 353  1 333 053

 TOTAL ASSETS                                         1 532 963  1 500 904



 LIABILITIES AND EQUITY

 Interest-bearing loans and borrowings (Note 8)          89 198     78 658

 Trade and other payables                                98 926    100 682

 Derivatives                                                  0        918

 Payables to owners                                           6          2

 Income tax liability                                         0        116

 Deferred income                                         33 314     32 113
--------------------------------------------------------------------------
 Current liabilities                                    221 444    212 489



 Interest-bearing loans and borrowings (Note 8)         488 682    431 477

 Other liabilities                                            0         22
--------------------------------------------------------------------------
 Non-current liabilities                                488 682    431 499
--------------------------------------------------------------------------
 Total liabilities                                      710 126    643 988



 Share capital (Note 9)                                 314 844    361 736

 Share premium                                              663        662

 Reserves                                                69 608     69 474

 Retained earnings                                      437 722    425 044
--------------------------------------------------------------------------
 Equity attributable to equity holders of the Parent    822 837    856 916

 Total equity                                           822 837    856 916
--------------------------------------------------------------------------
 TOTAL LIABILITIES AND EQUITY                         1 532 963  1 500 904


Consolidated statement of cash flows

                                                               Jan-Dec  Jan-Dec
 Unaudited, in thousands of EUR              Q4 2019  Q4 2018     2019     2018
-------------------------------------------------------------------------------


 CASH FLOWS FROM OPERATING ACTIVITIES

 Net profit/loss for the period                5 474   -1 760   49 718   40 049

 Adjustments                                  28 428   25 523  122 260  102 758

 Changes in:

 Receivables and prepayments related to
 operating activities                         15 108   16 298    4 740    2 407

 Inventories                                   3 185    1 833   -1 514    4 934

 Liabilities related to operating activities  -3 480   -1 400     -311    6 723
-------------------------------------------------------------------------------
 Changes in assets and liabilities            14 813   16 731    2 915   14 064

 Cash generated from operating activities     48 715   40 494  174 893  156 871

 Income tax paid                                 -29      -14     -317      -87
-------------------------------------------------------------------------------
 NET CASH FROM OPERATING ACTIVITIES           48 686   40 480  174 576  156 784



 CASH FLOWS FROM INVESTING ACTIVITIES

 Purchase of property, plant, equipment and
 intangible assets (Notes 6, 7)              -10 031  -15 918  -60 887  -36 037

 Proceeds from disposals of property, plant,
 equipment                                       -20      300      192      368

 Interest received                                 0        5        1        7
-------------------------------------------------------------------------------
 NET CASH USED IN INVESTING ACTIVITIES       -10 051  -15 613  -60 694  -35 662



 CASH FLOWS FROM FINANCING ACTIVITIES

 Proceeds from loans received (Note 8)        45 000  110 000   45 000  110 000

 Repayment of loans received (Note 8)        -23 375  -20 333  -79 750  -69 666

 Repayment of bonds (Note 8)                       0 -120 303        0 -120 303

 Change in overdraft (Note 8)                 -5 157        0        0        0

 Payments for settlement of derivatives            0     -947   -1 029   -3 569

 Payment of lease liabilities (Note 8)        -3 888      -29  -14 822     -108

 Interest paid                                -3 069   -3 992  -16 717  -19 440

 Payment of transaction costs related to
 loans                                          -636      -66   -1 431   -1 113

 Dividends paid (Note 10)                         15        0  -33 443  -20 096

 Reduction of share capital                  -46 888        0  -46 888       -1

 Income tax on dividends paid                      3        0   -8 100   -3 562
-------------------------------------------------------------------------------
 NET CASH USED IN FINANCING ACTIVITIES       -37 995  -35 670 -157 180 -127 858



 TOTAL NET CASH FLOW                             640  -10 803  -43 298   -6 736
-------------------------------------------------------------------------------


 Cash and cash equivalents at the beginning
 of period                                    38 237   92 978   82 175   88 911

 Change in cash and cash equivalents             640  -10 803  -43 298   -6 736
-------------------------------------------------------------------------------
 Cash and cash equivalents at the end of
 period                                       38 877   82 175   38 877   82 175


Veiko Haavapuu
Financial Director

AS Tallink Grupp
Sadama 5
10111 Tallinn, Estonia
E-mail [email protected]