Scandinavian ferry market development. the Tallink expansion

Transcription

1 Scandinavian ferry market development the Tallink expansion

2 Baltic Sea Market area Global passenger traffic Tallink routes (in million) Asia America Baltic Med North Sea Pacific Annual passenger volume in Baltic Sea region: nearly 190 million 24 9m 5m 1.5m 2.6m *Note: Red Sea region excluded due to negligible volumes; North Sea includes Inland Lakes Europe; Domestic Baltic and Scandinavian markets excluded Source: ShipPax 2004 Tallink is the market leader on the Northern Baltic Sea 2

3 Mini-cruise concept Mixture of transportation, leisure and entertainment CONFERENCE OVERNIGHT CRUISE PASSENGER TRANSPORT CARS & CARGO On-board consumption (Tax-free) shopping Leisure and entertainment Mini-cruise is the most popular and profitable product 3

4 Trends of ferry shipping in the Northern Baltic Sea Facelift of the 80 s and 90 s concept Ferries have become more like entertainment centers offering wider range of recreation facilities. Adjustments in the interior Location of the consumption areas is concentrated for easier navigation; More open space; Wider range of bars and restaurants. Diversification by routes The products are fine tuned per route, per customer class; Private car boom. New products New routes and destinations. 4

5 Tallink in brief Tallink is the leading European ferry operator offering mini-cruise, passenger transportation and cargo transportation services in Baltic Sea. Fleet of 19 vessels Operating two hotels in center of Tallinn Revenues close to EUR 750 million EUR 1.6 billion asset base More than 6,300 employees Nearly 7 million passengers annually 360 thousand cargo units annually Over 50 years of operating and cruising experience 5

6 Tallink business model Product Offering Mini-cruise, Hotel and Travel Packages High-speed, Passenger and Cargo Traffic Success Story and Growth Drivers Broad transportation, leisure and retail product: complete mini-cruise and overnight hotel & spa packages, city-break day trips, high-speed ferry and cargo Highly popular mini-cruise product across Scandinavia and the Baltics with extensive onboard retail and entertainment facilities Our destinations are attractive and lucrative for tourism and shopping destination Significant demand from business customers, tourism and cargo traffic boosted by EU accession Business segments Other 3% Onboard sales 56% 6 Ticket sales 20% Based on 06/07 9m Cargo sales 21%

7 Vessels built for the Northern Baltic Sea region Sophisticated and modern vessels Ferries Built for the Northern Baltic Sea Cruise 4 Gabriella Tallink Shuttle 2 Serenade Symphony Europa Superfast VII and VIII Superfast IX Victoria I Galaxy Star Cruise 5 Cinderell a Romantika Paradise* Year Tallink is the only company investing aggressively into fleet renewal allowing us to provide: Higher quality of onboard facilities Increased passenger, cargo and retail capacity Modern onboard consumption and retail facilities Reduce seasonality through ice-class specification Increased profitability through lower cost per passenger *Note: Pure cruise vessel with no separate cargo or passenger car deck 7

8 Brand new vessels built for Tallink Vessels delivered Romantika Victoria I Galaxy Star Built: 2002 Built: 2004 Built: 2006 Built: 2007 Passengers: 2,500 Passengers: 2,500 Passengers: 2,800 Passengers: 1,900 Vessels under construction Tallink Shuttle 2 Delivery: 2008 Passengers: 2, ,000,000 Tallink Cruise 4 Delivery: 2008 Passengers: 2, ,000,000 Tallink Cruise 5 Delivery: 2009 Passengers: 2, ,000,000 8

9 Recent expansion Over 1 billion Euro investments Superfast 3 vessels on Germany-Finland route for 310 million in Spring 2006 Silja 6 vessel operations and Silja brand for 450 million and 20 million Tallink s shares in Summer 2006 Galaxy New cruise ferry to Tallinn-Helsinki route for 165 million in Spring 2006 Star New shuttle vessel to Tallinn-Helsinki route for 110 million in Spring

10 Recent expansion Riga Stockholm route Opened in April 2006 Connecting two largest Capital Cities in the Baltic Sea region Experience with similar Tallinn Stockholm route Two vessels - daily departures from April 2007 Tallink Spa & Conference Hotel in Tallinn Opened in March modern & comfortable rooms Modern conference centre with 6 conference rooms 10

11 Growth in figures Clear impact of investments seen in the results Revenues 5 year revenue CAGR* 31% 5 year EBITDA CAGR* 29% 2002/ / / / /2007 EBITDA 2002/ / / / /2007 *Note: including the official management targets for the 2006/2007 financial year 11

12 Proven strategy Market leadership and investment for profitable growth Continue to invest in our fleet Central to maintaining market leadership and growing our business; Enhanced efficiency and profitability; Increased per-passenger spend from a wider demographic customer base; Further strengthening of the Tallink & Silja brands. Build upon strong positions on existing routes Strengthen overall market share and volumes; Further increase strong brand recognition; Broader customer base; Enhanced mini-cruise experience and promotion of our different travel destinations. Pursue new growth opportunities in the North Europe region Potential route expansion; Travel-related products, services and packages including hotel operations in our destinations. Growth is key to Tallink s success this has been demonstrated over the past years and will remain central to its investment case going forward. 12

13 Tallink: The strongest in the Baltic Sea Outstanding macro fundamentals Strong market position The leading European shipping group providing high-quality mini-cruise and passenger transport services, as well as a leading provider of cargo services on selected routes High-quality, flexible fleet Broad product offering Strong brands Competitive cost base Experienced management team 13

14 14 Thank you!