Company presentation February 2010

Tallink in brief




Tallink is the leading European provider of leisure and business travel and sea transportation services in the Baltic Sea.




Fleet of 19 vessels




Operating four hotels in Tallinn




Revenues EUR 792 million




EUR 2 billion asset base




6,800 employees




Over 8 million passengers annually




252 thousand cargo units annually




Listed on OMX Tallinn – TAL1T

Over 50 years of operating and cruising experience 2

Tallink business model

Product offering 1-2 overnight cruises & passenger transportation

Conferences

Revenues structure (financial year 2008/09)

Other 7%

On-board Tax-Free Shopping

City break

Cargo 14%

49,6%

24,9%

Restaurant & shops sales 54%

Hotel & travel packages

Cargo Transportation

Ticket sales 25%

43,3% 12,4%

26,1%

3

The market

Total market (passengers, millions) 18

9m

16

5m

Aland-Sw e 14 12

Fin-Sw e

10

Sw e-Lat 8

1.5m

6

Sw e-Est

4

2.6m

Fin-Est

2 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Revenues structure

9

(financial year 2008/09)

8 7

Other Lat-Swe 6% 6%

6 5

Fin-Ger 5% Est-Swe 11%

4

Fin-Swe 44%

Tallink revenue structure

Tallink’s passenger volume development

3 2 1 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

4

Est-Fin 27%

Market shares Passenger operations FIN - EST / Helsinki - Tallinn Linda Line Nordic Jetline

7%

7%

20%

20%

12%

11%

5% 25%

7%

8%

19%

18%

14%

15%

15%

15%

12%

Eckerö Line Viking Line

5% 7%

13%

10%

15%

SuperSeaCat

22%

20%

16%

Tallink

+8%* 37%

+3%* 39%

42%

38%

42%

3% 4% 7%

5%

6% 14%

13%

15%

25% 22%

19%

44%

19%

45%

50%

55% -12%*

On Estonia-Sweden & Latvia-Sweden routes Tallink is the only provider of short cruises and daily

2001

2002

2003

2004

2005

2006

FIN - SWE / Helsinki -Stockholm

47%

47%

2007

2008

2009

FIN - SWE / Turku -Stockholm

47%

45%

46%

43%

Viking Line Tallink Silja

5

53%

53%

53%

55%

54%

57%

2007

2008

2009

2007

2008

2009

Passenger transportation

Highlights and milestones

Revenues (m€) 800

Routes

Finland-Sweden

St. Petersburg

700

Riga-Stockholm

600

Finland-Germany

500 400

Tallinn-Stockholm

300

Estonia-Finland

200 100

Newbuilt vessels – investment € 1020 mln

Baltic Queen

0 04/05

Baltic Princess Superstar Galaxy

05/06

06/07

07/08

08/09

07/08

08/09

EBITDA (m€)

Star 160

Victoria I Romantika

140 120

Acquisitions - € 780 mln

IPO Silja Line Superfast ferries

Private Placement

Tallink Taxi

100 80

Tallink Express Hotel

60

Pirita Top Spa Hotel

40

Tallink Spa & Conference Hotel

20

Tallink City Hotel

0 04/05

2001 6

2002

2003

2004

2005

2006

2007

2008

2009

2010

05/06

06/07

Tallink´s position in the global ferry market

Operators by Gross Tons Rank Company 1 Stena Line 2 Tallink 3 P&O Ferries 4 Tirrenia 5 ANEK lines

Gross tons 760 715 600 995 502 924 386 967 342 861

Operators by revenues (2008) Rank Company Revenue (mEuro) 1 P&O Ferries 1 030,0 2 Stena Line 945,8 3 Tallink 786,8 4 Finnlines 735,7 5 Scandlines 584,0 Data: Ro/pax / ferries above 1,000 GT Source: ShipPax MARKET:09 7

Operators by beds Rank Company 1 Tallink 2 Stena Line 3 Tirrenia 4 Viking Line 5 Grandi Navi Veloci

Beds 27 798 14 374 14 288 13 754 11 960

Operators by no. of employees Rank Company 1 Tallink 2 Stena Line 3 P&O Ferries 4 DFDS Seaways 5 Color Line

Staff 6 093 5 700 5 000 4 215 3 827

Tallink in the world

8

Source: Generation Research - www.generation.se

Strategy




Fleet renewal investment program completed – focusing on core operations to realize past investments




Improve the profitability by optimal fleet deployment — chartering/selling old & non profitable vessels




Reduction of net debt




Maintain & improve the excellence in operations to broaden the customer base and strengthen the market position




Follow the customer expectations & changed trends to maximize revenues — flexible product offering - justified target group products and pricing combinations to meet the customer expectations

9

Results quarterly seasonality breakdown

Passengers (millions)

Revenue

9

6,87

761

133

7,07

227 2,70

6

2,33

Q4

400

405

185

159

1,81 1,57

81

0,60

51

1,79

1,81

0,74

167

10

06/07

07/08

08/09

09/10

05/06

27

Q3

14 17

21

15

33

29

30

27

06/07

07/08

08/09

09/10

Q2

15 190

187

194

181 0

0 05/06

25

50

63

-

74

176

200

0,84 1,51

175

49

94

63

2,03

1,62

188

1,63 210

1,36

84 100

1,83 1,56

255

2,36

4,20 4

237

600

5

1

150 126

7

2

159

792

8,12

8

3

787

800

EBITDA (EUR millions)

(EUR millions)

06/07

07/08

08/09

09/10

11

05/06

Q1

Consolidated Income Statement

(in € million)

2005/2006

Sales

2006/2007

2007/2008

2008/2009

405

761

786

792

(288)

(560)

(622)

(627)

(50)

(114)

(111)

(101)

94

159

126

133

Margin (%)

23.2%

20.9%

16.0%

16.8%

Net Profit (2)

50

67

19

-8.2

0.09

0.10

0.03

-0.01

Cost of sales (1) Marketing, general & admin (1) EBITDA

EPS (2)

Notes: (1) Includes depreciation and amortization (2) 2005/2006 Net Profit adjusted with exclusion of negative goodwill

11

Financial year 2008/2009 results

840 +38

820 800

+7

+6

792

+7

786

-52

780

In addition the negative 760

impact of weak SEK/EUR

Revenue changes

740

exchange rate was approximately

720

EUR 20 million.

700 EUR m Revenue 2007/08

Tickets

Restaurant & shops

Cargo

Charter

Other

Revenue 2008/09

180 160 140

+44 126

-27 133

+6 -7

-6

-3

Staff

Other

120 100 80

EBITDA impact

60 40 20 0

EUR m EBITDA 07/08

12

Revenue change

Fuel cost

Cost of goods

Ships opex

EBITDA 08/09

Dynamics of fuel oil price and EUR/SEK rate

FY 2007/08

FY2009/10 600

11,5

500

11,0

400

10,5

300

10,0

200

9,5

100

9,0 01.09.2006

0 01.09.2007

EURSEK 13

FY 2008/09

01.09.2008

Fuel Oil 1% FOB NWE Cargoes

01.09.2009

Fuel oil in EUR

EUR SEK

FY 2006/07 12,0

Passenger traffic

2,70

2,5

1,5

2,36

2,33

2,0 1,62

1,56

1,51

1,36

1,0

1,57

1,79

1,63

1,81

1,83

Passengers

1,81

0,5 0,0

Revenues in EUR millions.

Q1 06/07

Q2 06/07

Q3 06/07

Q4 06/07

Q1 Q2 Q3 Q4 revenues 07/08 Passenger 07/08 07/08 07/08

Q1 08/09

Q2 08/09

Q3 08/09

Q4 08/09

100 90

200

80

212

70

184

182

150

60 140

100

133

130

131

150

137

132

144

137

50 40

112

30 50

20 10

0

0 Q1 06/07

14

Q2 06/07

Q3 06/07

Q4 06/07

Q1 07/08

Q2 07/08

Total ticket, restaurants & shops revenues

Q3 07/08

Q4 07/08

Q1 08/09

Q2 08/09

Q3 08/09

Q4 08/09

Q1 09/10

Ticket, restaurants & shops revenues per passenger

change

3,17

2,86

10,8%

Est-Fin

3,49

2,93

18,8%

Est-Swe

0,85

0,77

10,0%

Lat-Swe

0,52

0,36

45,6%

Fin-Ger

0,10

0,14

-31,6%

Total millions

8,12

7,07

14,9%

Q1 09/10

250

FY 08/09 FY 0708

Fin-Swe

Revenue per passenger EUR.

Millions

Passenger number quarterly development 3,0

Consumer Confidence Index

FY 2005/06

FY 2006/07

FY 2007/08

FY 2008/09

30

90

20

80

10

70

0

60

-10

50

-20

40

-30

30

-40

20 Mar-06

Sep-06

Mar-07

Sep-07

Mar-08

Sep-08

Estonia Finland Sweden Euro-area Spending per passenger (€, 3-months rolling average, right scale) CCI indicates the difference between the percentages of respondents assessing the next 12-months-period outlook “better” and the respondents assessing it “worse”.

Source: Statistic Boards of the respective countries

15

Mar-09

Cargo traffic

Nr. units in thousands

Cargo units Finland - Sweden Estonia - Finland Estonia - Sweden Latvia - Sweden Finland - Germany

331 102 118 44 13 52

FY 2008/09

151 949 526 353 262 061

252 035 87 625 94 321 31 271 13 587 25 231

Cargo units & revenues

100 80

change -23,9% -14,9% -20,4% -29,5% 2,5% -51,5%

95

93

92

89

83

100 80

85

79

76

75

60

57 40 40

35

39

40

60

68

60 59

40

44

40

37

39

20

35 23

25

24

28

Q2 08/09

Q3 08/09

Q4 08/09

Q1 09/10

0

0 Q1 06/07

Q2 06/07

Q3 06/07

Q4 06/07

Q1 07/08

Q2 07/08

Q3 07/08

Cargo units 16

20

Q4 07/08

Q1 08/09

Cargo revenues

Cargo revenue in EUR millions.

FY 2007/08

Costs breakdown

Structure

Costs in EUR

2007/2008

2008/2009

2007/2008

2008/2009

change

Cost of goods

20%

24%

-147 079

-174 145

16%

Port & stevedoring costs

12%

12%

-91 469

-90 947

-1%

Fuel cost

19%

12%

-135 080

-90 576

-49%

Staff costs

23%

22%

-163 856

-164 045

0%

Ship operating expenses

8%

10%

-57 376

-64 736

11%

Depreciation and amortisation

8%

9%

-61 078

-70 489

13%

Cost of package sales

2%

2%

-13 194

-13 241

0%

Other costs (1)

2%

2%

-11 879

-13 241

11%

Marketing & Administrative expenses

6%

7%

-48 409

-49 938

3%

(1)

17

amortisation & staff costs excluded

Consolidated Cash Flow Statement

2006/2007

79

135

109

146

(562)

(141)

(271)

(163)

Asset disposal

12

44

29

1

Free cash flow

(471)

38

(133)

(16)

Debt financing

327

(9)

171

59

Equity financing

226

0

(4)

0

Interests & other financial items

(12)

(36)

(51)

(60)

69

(7)

(17)

(17)

Operating cash flow Capital expenditure

Change in cash

18

2007/2008

2008/2009

2005/2006

(in € million)

Consolidated Balance Sheet

31.08.2009

1,698

1,898

1,947

1,909

1,537

1,723

1,815

1,792

161

175

132

117

83

67

50

41

1,050

1,247

1,304

1,267

Interest bearing liabilities

948

1,120

1,181

1,145

Other liabilities

102

127

123

122

648

651

643

642

Gearing (1)

59%

63%

65%

64%

Equity/assets ratio

38%

34%

33%

34%

BVPS (2) (in EUR)

0.96

0.97

0.96

0.96

Total assets Non-current assets Current assets - of which cash Total liabilities

Shareholders’ equity

31.08.2007

Note: (1) Gearing represents interest bearing liabilities / (interest bearing liabilities + shareholders’ equity) (2) Shareholders’ equity / number of shares outstanding

19

30.11.2009

31.08.2008

(in € million)

Q1 unaudited

Loans

Scheduled loan balance (as of August 31st of the financial year) 1750

1 750

1500

1 500

1250

1 250

1000

1 000

750

750

500

500

250

250

0

0 08/09

09/10

10/11

11/12

12/13

Loan balance 20

13/14

14/15

15/16

16/17

17/18

Estimated fleet value @ -3% p.a

18/19

19/20

Tallink’s Fleet

Vessel Built Passengers Cabins Lane meters Speed (knots) Length (meters)

Galaxy, Baltic Queen,

Romantika,

Baltic Princess

Victoria I

2006-2009

2002-2004

2007

2008

1993

2001-2002

2,800

2,500

1,900

2,080

3,123

717-728

927

691-739

131

187

1,152

179-196

1,130

1,000

2,000

1,930

932

1,891

22-24.5

22

27.5

29

21.5

27.9

212

193

185

175

202

203

Silja Europa

Superfast vessels SF VII, SF VIII, SF IX

Sea Wind

Regal Star

Regina Baltica

Vana Tallinn

Kapella

1990-1991

1986

1972

1999

1980

1974

1974

2,852

2,023

260

80

1,500

800

36

986-995

588

98

38

504

228

24

Lane meters

950

885

1,000

2,087

840

730

590

Speed (knots)

21

22

17.3

15.5

19

18

14.5

Length (meters)

203

171

155

157

145

154

110

Silja Symphony Built Passengers Cabins

21

Superstar

Festival

Vessel

Silja Serenade,

Star

Age of fleet

Age of fleet by value (EUR m) Tallink Grupp ships age (value-weighted average): 20+ years 62 11-20 years 344




Tallink + Silja core fleet – 6.7 years




Superfast fleet – 7.6 years




Ships out of core operations and cargo vessels – 21 years

1-5 years 895

World-wide ships age*: 6-10 years 424




Passenger ships – 21.3 years




Cargo passenger - 23.3 years

* - source: Institute of Shipping Economics and Logistics, 2008 22

Ownership structure

Shareholders of AS Tallink Grupp

Infortar 40% Infortar AS 39%

Top 10 shareholders Institutional investors Retail investors

23

Ten largest shareholders on 11.01.2010

%

Infortar

40.0%

Nordea Bank Finland Plc / Non-resident legal entities

10.2%

ING Luxembourg S.A.

10.1%

Citigroup Venture Capital International Jersey Ltd

7.3%

State Street Bank / Trust Omnibus Account A Fund No.OM01

3.3%

Skandinaviska Enskilda Banken AB Clients

2.8%

JP Morgan Chase Bank / London Client's account

2.5%

Firebird Republics Fund Ltd

1.2%

BNYM / ING BANK SLASKI AC LM AKCJI FIO

1.2%

Firebird Avora Fund Ltd

1.1%