PRESS RELEASE ON THE RESULTS FOR THE FISCAL YEAR NOV. 1, 2001 - OCT. 31,
2002
MARKET DEVELOPMENTS
The market for passenger ferry services between Sweden and
Finland plus services between Finland and the Baltic states rose by 0.8 per cent
to 15,511,332 passengers. The number of passengers on Viking Line’s vessels fell
by 3.7 per cent to 5,186,385.
The total number of cargo units in the service area rose by
1.0 per cent to 352,051. On Viking Line’s vessels, the quantity of cargo rose by
0.2 per cent to 78,045 units.
Viking Line’s share of passengers in the entire service area
amounted to 33.4 per cent (35.0). In terms of route segments, its market share
was distributed as follows: Helsinki (Finland)–Stockholm (Sweden), 42.5 per cent
(43.4); Turku (Finland)–Stockholm/Kapellskär (Sweden); 43.9 per cent (45.8),
services to the Åland Islands (Finland), 40.6 per cent (42.2); and
Helsinki-Baltic states 20.4 per cent (21.8).
VESSELS AND ROUTES
The decrease in Viking Line’s passenger volume was partly due
to the Isabella’s accident. The Isabella ran aground on December 20, 2001 and
resumed service on February 13, 2002. During this period, the Rosella was placed
in service on the Turku-Åland-Stockholm route, while the vessel’s “Dancing
Queen” cruises on the Stockholm-Mariehamn (Åland) route were cancelled. During
the summer, the Cinderella provided weekend cruises on the Helsinki–Riga (Latvia)
route. Otherwise the Group’s vessels served the same routes as during 2000/2001.
The Group’s seven vessels have a book value of 189.6 million
euros, while their insurance value amounts to EUR 492.4 M. In addition, all
vessels have protection and indemnity (P&I) insurance.
SALES AND EARNINGS
Consolidated sales of the Viking Line Group amounted to EUR
402.4 M (fiscal 2000/2001: EUR 420.8 M). Operating profit was EUR 28.7 M (38.1).
Consolidated profit before taxes amounted to EUR 29.3 M (34.8). Net profit for
the fiscal year was EUR 20.3 M (24.4).
Group sales fell during the report period, mainly due to
lower passenger volume during the first half of the fiscal year. Overall
revenues per passenger were largely unchanged. More than half of the decrease in
volume was due to the Isabella’s accident and subsequent absence from service.
In addition, the number of other dry-docking and idle days was larger than
during fiscal 2000/2001. The decrease in sales, together with high repair and
maintenance expenses, resulted in lower operating profit. Personnel expenses
were reduced, mainly as a consequence of government restitution.
The increased repair and maintenance expenses were mainly
related to quality-enhancement measures. The repair and maintenance expenses
owing to the Isabella’s accident were mainly covered by the vessel’s insurance.
The main reason for the improvement in the Group’s net
financial items was that the Swedish krona strengthened, compared to its
exchange rate at the beginning of the fiscal year.
CAPITAL SPENDING AND FINANCE
The Group’s investments in fixed assets totalled EUR 9.8 M
(8.2).
On October 31, 2002, the equity/assets ratio stood at 51.0
per cent, compared to 47.9 per cent a year earlier. The Group’s long-term
liabilities decreased during fiscal 2001/2002 to EUR 41.6 M (50.5).
At the close of fiscal 2001/2002, the Group’s liquid assets
amounted to EUR 43.8 M (56.0). Net cash flow from business operations amounted
to EUR 24.8 M (41.2).
OPERATING CONDITIONS
In order to strengthen its position in the Swedish cruise
market, Viking Line will place the Cinderella in service on the
Stockholm-Mariehamn route during the autumn of 2003. At the same time, the
company intends to move the Rosella to the Helsinki-Tallinn (Estonia) route with
the aim of continuing to maintain cargo services to Estonia. Viking Line will
also endeavour to participate in services to Estonia in the future, which will
probably become more transport-oriented. This change in vessel allocation is
also one element of the adjustment to the operating conditions that will apply
starting in 2004, when the Baltic states become European Union (EU) members.
In the present situation, it represents a major competitive
disadvantage to operate Finnish-registered vessels, since the manning expenses
for vessels under the Finnish flag are considerably higher than for vessels
registered elsewhere. Unlike such countries as Sweden, Finland has not followed
EU guidelines on subsidies to the shipping industry, under which withholding
taxes and social security payments on seafarers’ income may be refunded in their
entirety to the shipping company.
PERSONNEL
The average number of Viking Line employees was 2,792
(2,780), of whom 2,089 (2,086) worked for the parent company. Land-based
personnel totalled 706 (700) and shipboard personnel totalled 2,086 (2,080). THE BOARD'S PROPOSAL FOR DISTRIBUTION OF PROFIT
According to the balance sheet of the Viking Line Group on October 31, 2002,
unrestricted equity totalled EUR 40,444,463.92. The unrestricted equity of the
parent company totalled EUR 49,437,664.46.
The Board of Directors proposes the following:
Of the net profit
for the fiscal year, totalling |
EUR |
22,722,067.53 |
a dividend of EUR
1.35 per share shall be paid, totalling |
EUR |
14,580,000.00 |
To be carried
forward |
EUR |
8,142,067.53 |
OUTLOOK FOR 2003
Competition in Viking Line’s market area is intensifying, but
during fiscal 2002/2003 no major changes in operating conditions are expected.
During 2003, Viking Line will again carry out an extensive dry-docking programme.
Fiscal 2002/2003 earnings are expected to be at about the
level of 2001/2002 earnings.
CONSOLIDATED SUMMARY
INCOME STATEMENT, EUR M |
2001/2002 |
2000/2001 |
| Sales |
402.45 |
420.78 |
| Other operating revenues |
0.50 |
0.49 |
| Other operating expenses |
354.88 |
364.42 |
| Depreciation |
19.37 |
18.79 |
| Operating profit |
28.71 |
38.06 |
| Financial items |
0.56 |
-3.24 |
| Profit before taxes |
29.27 |
34.82 |
| Direct taxes |
-8.99 |
-10.43 |
| Net profit for the fiscal year |
20.27 |
24.40 |
CONSOLIDATED SUMMARY
BALANCE SHEET, EUR M |
Oct. 31, 2002 |
Oct. 31, 2001 |
| ASSETS |
| Fixed assets |
| Intangible assets |
0.38 |
0.86 |
| Tangible assets |
203.34 |
212.42 |
| Shares and participations |
0.07 |
0.07 |
| Current and financial assets |
| Current assets |
8.86 |
7.90 |
| Receivables |
28.74 |
17.66 |
| Cash and bank balances |
43.76 |
55.96 |
| Total assets |
285.15 |
294.85 |
| SHAREHOLDERS’ EQUITY AND LIABILITIES |
| Shareholders’ equity |
| Share capital |
1.82 |
1.82 |
| Legal reserve |
0.02 |
0.02 |
| Share of accumulated appropriations |
104.53 |
103.93 |
| Other shareholders’ equity |
38.94 |
35.45 |
| Deferred tax liability |
42.08 |
42.69 |
| Long-term liabilities |
41.63 |
50.46 |
| Current liabilities |
56.14 |
60.50 |
| Total shareholders’ equity and liabilities |
285.15 |
294.85 |
When rounding off items to the nearest EUR 1,000,000, rounding-off differences of EUR ± 0.01 M have
occured.
| PLEDGED ASSETS AND OTHER CONTINGENT LIABILITIES, EUR M |
2001/2002 |
2000/2001 |
| Assets pledged for own debt |
57.85 |
66.83 |
| Leasing liabilities |
0.89 |
0.51 |
| FINANCIAL RATIOS AND STATISTICS |
2001/2002 |
2000/2001 |
| Earnings per share, EUR1 |
1.88 |
2.26 |
| Shareholders’ equity per share, EUR2 |
13.45 |
13.07 |
| Dividend per share, EUR |
1.35 |
1.50 |
| Number of shares, October 31 |
10,800,000 |
10,800,000 |
| Return on equity (ROE)3 |
14.2% |
18.3% |
| Return on investment (ROI)4 |
15.8% |
19.8% |
| Equity/assets ratio5 |
51.0% |
47.9% |
1) (Profit before extraordinary items – direct taxes) / Average number of shares
2) Shareholders’ equity / Number of shares on October 31
3) (Profit before extraordinary items – direct taxes) / Shareholders’ equity (average for the year)
4) (Profit before extraordinary items + interest and other financial expenses) / (Total assets – interest-free liabilities [average for the year])
5) Shareholders’ equity / (Total assets – advances received)
The above figures from the financial statements have been audited. Shareholders’ meeting
The annual meeting of shareholders in Viking Line Abp will be
held at 12 noon on Wednesday, February 5, 2003 at the Hotel Arkipelag,
Strandgatan 31 in Mariehamn, Åland, Finland.
The Annual Report for fiscal 2001/2002 will be published
during the week of January 20 in Swedish and shortly thereafter in Finnish and
English.
Financial information
During fiscal 2002/2003, Viking Line Abp will issue interim
reports for the periods November 1, 2002 to January 31, 2003, November 1, 2002
to April 30, 2003 and November 1, 2002 to July 31, 2003. These interim reports
will be published in March, June and September 2003, respectively.
Mariehamn, December 19, 2002 VIKING LINE ABP
THE BOARD OF DIRECTORS
Nils-Erik Eklund
Managing Director
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