Börsiteade

Pealkiri

AS Tallink Grupp Unaudited Consolidated Interim Report Q3 2019

Teade

In the third quarter (1 July - 30 September) of the 2019 financial year Tallink
Grupp AS and its subsidiaries (the Group) carried 3.0 million passengers, which
is 0.9% more than in the third quarter last year. The Group's unaudited revenue
for the third quarter increased by 1.5% to a total of EUR 287.8 million.
Unaudited EBITDA for the third quarter was EUR 83.2 million (EUR 71.1 million in
Q3 2018) and unaudited net profit was EUR 54.6 million (net profit of EUR 46.1
million in Q3 2018), being the all-time high third quarter net profit of the
Group.

In the third quarter, the Group's revenue and operating result were impacted by
the following operational factors:

  * A record number of passengers travelling on Group's ships in July and
    August;
  * 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 1 July 2019;
  * Lower bunkering prices.

Sales and segments

In the third quarter of 2019, the Group's total revenue increased by EUR 4.2
million and amounted to EUR 287.8 million. The revenue in the third quarter of
2018 and 2017 was EUR 283.6 and EUR 282.7 million, respectively.

  * The total revenue from the shipping operations in the Baltic Sea (core
    business) increased by 1.4% or EUR 3.8 million to 268.4 million.
  * The revenue from the other segment, including intra-group eliminations,
    increased by a total of EUR 0.4 million and amounted to EUR 19.4 million.
    The increase was driven by higher on-shore shop sales.

In the third quarter of 2019, The Group's ships carried a total of 1.5 million
passengers on the Estonia-Finland routes, which is a 2.0% increase compared to
last year. The number of transported cargo units on the routes decreased by
2.3%, while the total market volume decreased by 4.4%. On the Tallinn - Helsinki
route, added capacity by competitors further increased pressure on ticket and
cargo prices. The Estonia-Finland segment revenue increased by EUR 1.4 million
and amounted to EUR 102.2 million. The segment result increased by EUR 1.7
million and amounted to EUR 33.0 million.

The Finland-Sweden routes' revenue increased by EUR 2.5 million and amounted to
EUR 106.4 million. The segment result of Finland-Sweden routes increased by
30.3% or EUR 4.8 million and amounted to EUR 20.6 million. The increase in the
segment result was supported by higher revenue per passenger, lower fuel cost
and overall strong cost control.

While the number of passengers carried on the Estonia-Sweden routes decreased by
1.3% and the number of transported cargo units decreased by 7.3%, the routes'
revenue decreased only by 0.3% and amounted to EUR 36.0 million. At the same
time, the segment result of Estonia-Sweden routes increased by 13.3% or EUR 0.8
million and amounted to EUR 7.1 million. The increase in the segment result was
supported by higher revenue per passenger and lower fuel cost as well as strong
cost control.

The Latvia-Sweden route's third quarter revenue was on level with the last year
revenue, while the segment result increased by EUR 0.9 million, which is a
19.9% increase. The increase in the segment result was supported by lower fuel
cost and strong cost control.

Earnings

In the third quarter of 2019, which is also the high season, the Group earned an
all-time high third quarter net profit of EUR 54.6 million, the net profit
increased by EUR 8.5 million or 18.5% compared to the same period last year.

The Group's gross profit increased by EUR 8.2 million compared to the same
period last year, amounting to EUR 86.7 million. Third quarter EBITDA increased
by EUR 12.1 million and amounted to EUR 83.2 million, third quarter comparable
EBITDA, i.e. without IFRS 16 adoption effect, increased by EUR 7.6 million
compared to the same period last year and was EUR 78.7 million.

The Group's third quarter result was impacted positively by lower fuel cost,
port charges and overall strong cost control. 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 bunkering prices.

Amortisation and depreciation expense increased by EUR 3.9 million to EUR 23.8
million compared to the third quarter of 2018. The increase was a result of the
IFRS 16 adoption effect in the amount of EUR 3.9 million.

Net finance costs decreased by EUR 0.4 million compared to the third quarter
last year. The change includes a decrease of EUR 1.4 million in interest costs
compared to same period the previous year and EUR 0.4 million less profit from
foreign exchange differences and the revaluation of cross currency and interest
rate derivatives. In addition, in Q3 there is EUR 0.6 million interest expense
from right-of-use assets liabilities (IFRS 16 adoption effect).

The Group's unaudited net profit for the third quarter of 2019 was EUR 54.6
million or EUR 0.082 per share compared to a net profit of EUR 46.1 million or
EUR 0.069 per share in the third quarter of 2018 and compared to a net profit of
EUR 47.8 million or EUR 0.071 per share in the third quarter of 2017.

Results of the first 9 months of 2019

In the first 9 months (1 January - 30 September) of the 2019 financial year the
Group carried 7.5 million passengers which is 0.4% less compared to the same
period last year. The Group's unaudited revenue for the period decreased by
0.1% and was EUR 722.7 million. Unaudited EBITDA for the first 9 months was EUR
137.7 million (EUR 118.8 million, 9M 2018) and unaudited net profit was EUR
44.2 million (EUR 41.8 million, 9M 2018 net profit).

The financial result of the first 9 months of 2019 was impacted by following
factors:

  * Planned dockings of seven ships in the first quarter resulted in 50 trips
    less compared to last year. Among other ships, the maintenance and repair of
    the cruise ferry Baltic Queen lasted for 42 days, which affected the
    Estonia-Sweden segment's carriage volumes and financial result.
  * High competition on the maritime traffic between Estonia and Finland, which
    puts pressure on ticket prices.
  * Higher income tax due to increase in dividends compared to last year.
  * The first instalment of the prepayment for the new ship in the amount of EUR
    12.4 million paid in April 2019.

Investments

In the third quarter of 2019 financial year the Group's investments amounted to
EUR 7.1 million. Most of the investments were made to the ships' technical
maintenance and innovative energy efficiency solutions as well as to the
development of the 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
will be paid out in December 2019. The list of entitled shareholders was fixed
on 20 June 2019.

Financial position

In the third quarter, the Group's net debt decreased by EUR 10.5 million to EUR
526.6 million and the net debt to EBITDA ratio was 3.3 at the reporting date.

At the end of the third quarter, total liquidity (cash, cash equivalents and
unused credit facilities) amounted to EUR 108.1 million (EUR 168.0 million at
30 September 2018) providing a strong financial position for sustainable
operations.

At 30 September 2019, the Group's cash and cash equivalents amounted to EUR
38.2 million (EUR 93.0 million at 30 September 2018) and the Group had EUR 69.8
million in unused credit lines (EUR 75.0 million at 30 September 2018).

Economic Environment

The Group considers Finland, Sweden, Estonia and Latvia its home markets as
these are the countries to and from the shipping routes are operated. In terms
of exposure to economic conditions, the Group is exposed the most to
developments in Finland as nearly half of the passenger originate from that
country. Exposure is also high to economic developments in Estonia (19% of total
passengers in 2018) and Sweden (11%). The number of passengers from Latvia
accounted for 5% of the total passengers in 2018 while the remaining 19% came
from the rest of the world, mainly Europe.

The common theme for the economic environment across all home markets in the
third quarter of 2019 was slowing economic growth combined with a still robust
labour market. The continued streak of weakening of Swedish Krona (SEK)
continued to hurt our sales to the Swedish market. The developments in the
economic environment reflected in the contraction of the cargo market while
passenger operations, despite clearly lower demand from Swedish customers,
remained more robust with the help of customers from outside home markets.

In contrast to the abovementioned headwinds, the decrease in global energy
prices supported our third quarter results among with the lower alcohol excises
in Estonia, effective from July. Given the economic environment and tight
competition we consider the third quarter's 1.5% revenue growth achieved on a
mature market a good result. We are even happier about the fact that the
improvement in the net result was not driven by lower fuel cost alone.

There is no data yet available for the GDP for the third quarter of 2019,
however, the apparent census of various sources for the full-year of 2019 has
projected slowing real GDP growth rates for all the home markets. The first
half-year's GDP developments and nine month business confidence developments
across all home markets corroborate such expectations.

Further, the GDP growth rates of the first half of 2019 were in-line with the
annual expectations in Latvia. The growth pace in Finland and Sweden was slower
relative to the full-year consensus estimates. In Estonia, however, the first
half-year GDP growth rate still ahead of the expected pace for the full-year.

According to the OECD data, the business confidence continued to decline across
all of the home markets also throughout the third quarter of 2019. The trend of
particularly steep decline continued in Estonia and the business confidence
remained the highest in Latvia. The Estonian and Swedish business confidence
reached as low levels as last seen in 2010 and 2013, respectively.

While the confidence of Swedish consumers had remained low, but unchanged,
throughout 2019 so far, the confidence took a hit in the third quarter of 2019.
This follows both the continuously weakening SEK but also the poor economic
performance seen in the second quarter of 2019.

The consumer confidence was the weakest in Finland, also weakest in the year-
over-year comparison. However, while the confidence had been in a distinct slide
for the past 12 months the slippage stopped and plateaued in the third quarter
of 2019.

Helped by the labour market situation the confidence of both Estonian and
Latvian consumers, the highest of our home markets, remained steadily buoyant in
the third quarter as well.

Helped by a decrease in global energy prices inflation in the third quarter of
2019 slowed across all home markets relative to the inflation in the second
quarter of 2019, according to Eurostat's harmonised indices of consumer prices.
The annual inflation remained most substantial in Latvia at 2.8% while the
increase in both Finland and Sweden was more subdued at 1.1% and 1.4%,
respectively. The inflation fell close to the ECB target rate of 2% in Estonia.
The slowing in inflation was highest in Estonia, supported also by reduces
levels of alcohol excises mid-quarter.

The labour market situation has remained challenging in the first nine months of
the year reflecting the recent low unemployment rates in the home markets,
particularly in Estonia. The situation of the Estonian labour market has also
contributed to the growing divergence between business and consumer confidence
developments, which has steepened well during 2019.

Following a steady long-term decline in Swedish unemployment, the trend was
broken with the reversal to a somewhat higher level in the third quarter of
2019. The unfavourable developments of unemployment and SEK likely impacted the
demand of Swedish passengers as we have seen a decrease in the number of Swedish
passengers.

Measured in euros the effective market prices of relevant fuels remained, on
average, nearly 9% lower relative to the third quarter of 2018.

Key risks to the economic environment in all of the home markets have to do with
uncertainties from increasing protectionist tendencies (including trade tensions
between China and the US, 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 early signs
of economic recession in the most relevant markets in Europe, as well as our
cargo markets.

While in Finland and Sweden the GDP growth in the first half of 2019 was slower
relative to the full-year consensus estimates, it is worth noting that the
forecast issued by European Commission and OECD are more optimistic compared to
the more modest expectations of local experts' forecast. For the above reasons,
the economic environment is not likely to improve markedly soon, rather the
opposite.

Also, global fuel prices are expected to remain volatile due to uncertainties in
the global economy and politics.

Events in Q3

Changes in the Supervisory Board
On 23 May 2019, the shareholder's general meeting decided to elect Raino Paron
as the new member of the supervisory board of Tallink Grupp AS. The 3-year term
of office of Mr Paron started on 18 September 2019. The term of office of the
supervisory board member Lauri Kustaa Äimä was not extended and was terminated
on 17 September 2019.

Signing of the loan agreement
Tallink Superfast Ltd., a subsidiary of Tallink Grupp AS, and KfW IPEX-Bank GmbH
signed a loan agreement in the amount of EUR 197.6 million to finance the new
EUR 247 million LNG powered fast ferry currently under construction in Rauma
Marine Constructions Oy.

The loan is arranged and long-term financing is provided by KfW IPEX-Bank GmbH.
Finnish Export Credit Agency "Finnvera" guarantees 95% of this post-delivery
buyer credit.

The loan is secured by the mortgage on the new vessel and the corporate
guarantee of Tallink Grupp AS. This OECD-term export credit loan will be drawn
on the delivery of the vessel, presumably in the beginning of 2022 and has the
final maturity of twelve years from the drawdown.

Dividends and capital reduction
In May 2019 the shareholders' general meeting decided to pay a dividend of EUR
0.05 per share from net profit for 2018. The total dividend in amount of EUR
33.5 million was paid out on 03 July 2019. The dividend related income tax in
amount of EUR 8.0 million was recorded in the second quarter. 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 will be paid out from 3 December 2019 until 5
December 2019.

Acquisition of development and franchise rights of Burger King restaurant in the
Baltics
Tallink Grupp AS acquired exclusive development rights for global fast food
chain Burger King in Estonia, Latvia and Lithuania. The first Burger King
restaurants are planned to be opened in Tallinn this winter and the first
restaurants in Latvia and Lithuania in the first half of 2020. The Group plans
to open and operate restaurants across Estonia, Latvia and Lithuania and expects
the expansion to create a total of nearly 800 new jobs in the Baltic states. The
Group will hold the licence to operate each restaurant for 20 years from
opening.

Changes in the Group structure
In August 2019, OÜ Tallink Fast Food, a wholly-owned subsidiary of Tallink Grupp
AS, was established. The main activity of the subsidiary is to operate the
Burger King restaurants in Estonia, Latvia and Lithuania.

In September 2019, Tallink Asia Pte Ltd, a wholly-owned subsidiary of Tallink
Grupp AS, was established, being the Group's first subsidiary in Asia. The
purpose of founding a subsidiary in Singapore is to simplify the development and
expansion of the Group's activities in Asia.

Tallink Finland OY, a wholly-owned subsidiary of Tallink Grupp AS, was dissolved
and deleted from the Commercial Registry.

Events after the reporting period and outlook

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 (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. A collaboration with the Tallinn University of Technology (TalTech)
was started in the first quarter of 2019 to develop so-called ?Smart Car Deck"
solutions for the Group's vessels over the next two years.

In addition to that, 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                                    Q3 2019     Q3 2018 Change %
-------------------------------------------------------------------------------
 Revenue (million euros)                             287.8       283.6     1.5%

 Gross profit (million euros)                         86.7        78.4    10.5%

 EBITDA¹ ² (million euros)                            83.2        71.1    17.0%

 EBIT¹ (million euros)                                59.4        51.3    15.9%

 Net profit for the period (million euros)            54.6        46.1    18.5%



 Depreciation and amortisation³ (million
 euros)                                               23.8        19.8    19.9%

 Capital expenditures¹ ?(million euros)                7.1         5.6

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

 Earnings per share¹                                 0.082       0.069    18.5%



 Number of passengers¹                           2 974 790   2 947 610     0.9%

 Number of cargo units¹                             93 329      94 913    -1.7%

 Average number of employees¹                        7 425       7 637    -2.8%



 As at                                            30.09.19    30.06.19 Change %
-------------------------------------------------------------------------------
 Total assets³ (million euros)                     1 564.2     1 609.9    -2.8%

 Total liabilities (million euros)                   746.5       800.0    -6.7%

 Interest-bearing liabilities? (million euros)       564.8       604.2    -6.5%

 Net debt¹ (million euros)                           526.6       537.1    -2.0%

 Net debt to EBITDA¹                                   3.3         3.6    -9.3%

 Total equity (million euros)                        817.7       809.9     1.0%

 Equity ratio¹ (%)                                     52%         50%



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

 Equity per share¹                                    1.22        1.21     1.0%



 Ratios¹                                           Q3 2019     Q3 2018
-------------------------------------------------------------------------------
 Gross margin (%)                                    30.1%       27.7%

 EBITDA margin (%)                                   28.9%       25.1%

 EBIT margin (%)                                     20.6%       18.1%

 Net profit margin (%)                               19.0%       16.3%



 ROA (%)                                              4.5%        4.2%

 ROE (%)                                              5.1%        5.2%

 ROCE (%)                                             5.4%        5.3%


(1) Alternative performance measures based on ESMA guidelines are disclosed in
the Alternative Performance Measures section of this Interim Report.
(2) EBITDA adjusted for Q3 2019 without IFRS 16 adoption effect was EUR 78.7
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-Sep  Jan-Sep
 Unaudited, in thousands of EUR              Q3 2019  Q3 2018     2019     2018
-------------------------------------------------------------------------------
 Revenue (Note 3)                            287 771  283 609  722 744  723 173

 Cost of sales                              -201 089 -205 160 -564 929 -573 964
-------------------------------------------------------------------------------
 Gross profit                                 86 682   78 449  157 815  149 209



 Sales and marketing expenses                -15 108  -15 959  -51 362  -52 601

 Administrative expenses                     -12 897  -12 591  -42 408  -39 124

 Other operating income                          713    1 432    1 876    2 499

 Other operating expenses                          2      -72      -23     -153
-------------------------------------------------------------------------------
 Result from operating activities             59 392   51 259   65 898   59 830



 Finance income (Note 4)                        -104    1 809      991    7 767

 Finance costs (Note 4)                       -4 609   -6 959  -14 446  -22 176
-------------------------------------------------------------------------------
 Profit before income tax                     54 679   46 109   52 443   45 421



 Income tax                                      -70      -13   -8 199   -3 612



 Net profit for the period                    54 609   46 096   44 244   41 809

 Net profit for the period attributable to
 equity holders of the Parent                 54 609   46 096   44 244   41 809



 Other comprehensive income

 Items that may be reclassified to profit
 or loss

 Exchange differences on translating
 foreign operations                               34      -91      456      302
-------------------------------------------------------------------------------
 Other comprehensive income for the period        34      -91      456      302



 Total comprehensive income for the period    54 643   46 005   44 700   42 111

 Total comprehensive income for the period
 attributable to equity holders of the
 Parent                                       54 643   46 005   44 700   42 111



 Earnings per share (in EUR, Note 5)           0.082    0.069    0.066    0.062
-------------------------------------------------------------------------------


Consolidated statement of financial position

 Unaudited, in thousands of EUR                30.09.2019 30.09.2018 31.12.2018
-------------------------------------------------------------------------------
 ASSETS

 Cash and cash equivalents                         38 237     92 978     82 175

 Trade and other receivables                       48 271     50 341     43 805

 Prepayments                                       12 775     15 417      6 084

 Prepaid income tax                                    44         49         46

 Inventories                                       40 440     37 574     35 741
-------------------------------------------------------------------------------
 Current assets                                   139 767    196 359    167 851



 Investments in equity-accounted investees            407        403        407

 Other financial assets                               326        338        320

 Deferred income tax assets                        17 934     18 718     17 934

 Investment property                                  300        300        300

 Property, plant and equipment (Note 6)         1 360 619  1 272 234  1 267 928

 Intangible assets (Note 7)                        44 844     46 435     46 164
-------------------------------------------------------------------------------
 Non-current assets                             1 424 430  1 338 428  1 333 053

 TOTAL ASSETS                                   1 564 197  1 534 787  1 500 904



 LIABILITIES AND EQUITY

 Interest-bearing loans and borrowings (Note
 8)                                                94 421    161 951     78 658

 Trade and other payables                          99 107    100 081    100 682

 Derivatives                                            0     26 633        918

 Payables to owners                                46 876          2          2

 Income tax liability                                   0         34        116

 Deferred income                                   35 735     34 084     32 113
-------------------------------------------------------------------------------
 Current liabilities                              276 139    322 785    212 489



 Interest-bearing loans and borrowings (Note
 8)                                               470 400    353 281    431 477

 Other liabilities                                      0         16         22
-------------------------------------------------------------------------------
 Non-current liabilities                          470 400    353 297    431 499
-------------------------------------------------------------------------------
 Total liabilities                                746 539    676 082    643 988



 Share capital (Note 9)                           314 844    361 736    361 736

 Share premium                                        663        639        662

 Reserves                                          70 415     70 038     69 474

 Retained earnings                                431 736    426 292    425 044
-------------------------------------------------------------------------------
 Equity attributable to equity holders of the
 Parent                                           817 658    858 705    856 916

 Total equity                                     817 658    858 705    856 916
-------------------------------------------------------------------------------
 TOTAL LIABILITIES AND EQUITY                   1 564 197  1 534 787  1 500 904


Consolidated statement of cash flows

                                                                Jan-Sep Jan-Sep
 Unaudited, in thousands of EUR                Q3 2019 Q3 2018     2019    2018
-------------------------------------------------------------------------------


 CASH FLOWS FROM OPERATING ACTIVITIES

 Net profit for the period                      54 609  46 096   44 244  41 809

 Adjustments                                    28 455  24 692   93 832  77 235

 Changes in:

 Receivables and prepayments related to
 operating activities                            5 153   4 647  -10 368 -13 891

 Inventories                                    -1 114   3 379   -4 699   3 101

 Liabilities related to operating activities   -18 535 -17 297    3 169   8 123
-------------------------------------------------------------------------------
 Changes in assets and liabilities             -14 496  -9 271  -11 898  -2 667

 Cash generated from operating activities       68 568  61 517  126 178 116 377

 Income tax paid                                   -70      -2     -288     -73
-------------------------------------------------------------------------------
 NET CASH FROM OPERATING ACTIVITIES             68 498  61 515  125 890 116 304



 CASH FLOWS FROM INVESTING ACTIVITIES

 Purchase of property, plant, equipment and
 intangible assets (Notes 6, 7)                 -7 138  -5 470  -50 856 -20 119

 Proceeds from disposals of property, plant,
 equipment                                          70      26      212      68

 Interest received                                   0       1        1       2
-------------------------------------------------------------------------------
 NET CASH USED IN INVESTING ACTIVITIES          -7 068  -5 443  -50 643 -20 049



 CASH FLOWS FROM FINANCING ACTIVITIES

 Repayment of loans received (Note 8)          -25 041 -21 999  -56 375 -49 333

 Change in overdraft (Note 8)                  -13 852       0    5 157       0

 Payments for settlement of derivatives              0    -876   -1 029  -2 622

 Payment of lease liabilities (Note 8)          -3 800     -27  -10 934     -79

 Interest paid                                  -5 214  -5 888  -13 648 -15 448

 Payment of transaction costs related to loans    -795  -1 047     -795  -1 047

 Dividends paid (Note 10)                      -33 458 -20 096  -33 458 -20 096

 Reduction of share capital                          0      -1        0      -1

 Income tax on dividends paid                   -8 103  -3 562   -8 103  -3 562
-------------------------------------------------------------------------------
 NET CASH USED IN FINANCING ACTIVITIES         -90 263 -53 496 -119 185 -92 188



 TOTAL NET CASH FLOW                           -28 833   2 576  -43 938   4 067
-------------------------------------------------------------------------------


 Cash and cash equivalents at the beginning of
 period                                         67 070  90 402   82 175  88 911

 Increase in cash and cash equivalents         -28 833   2 576  -43 938   4 067
-------------------------------------------------------------------------------
 Cash and cash equivalents at the end of
 period                                         38 237  92 978   38 237  92 978


Veiko Haavapuu
Financial Director

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