PRESS RELEASE ON THE RESULTS FOR THE FISCAL YEAR NOV. 1, 2004 - OCT. 31,
2005
SALES AND EARNINGS
Consolidated sales of the Viking Line Group during fiscal
2004/2005 amounted to EUR 382.7 M (fiscal 2003/2004: EUR 385.2 M). Operating
profit was EUR 2.3 M (13.2). Net financial items were EUR -0.8 M (-0.2).
Consolidated profit before taxes amounted to EUR 1.5 M (13.0). Net profit for
the fiscal year was EUR 0.8 M (13.0).
The number of passengers rose by 4.3 per cent, but the
Group’s sales were 0.7 per cent lower than in fiscal 2003/2004. Net sales
revenues per passenger declined due to the adjustment of shipboard prices for
those goods on which the price level was affected by the lowering of the tax
level in Finland and by Estonia’s accession to the European Union (EU).
Furthermore, stiff competition led to lower ticket revenue per passenger.
Operating expenses rose due to the higher passenger volume.
In addition, bunker (vessel fuel) costs were substantially higher than in fiscal
2003/2004. The expansion of the government’s system for restitution of the
social security fees for Finnish shipboard personnel led to lower manning costs.
VESSELS AND SERVICES
The Group’s vessels served the same main routes as during
2003/2004. During the period June-August 2005 the Viking Cinderella made a total
of nine (year-earlier period: eight) cruises between Stockholm (Sweden) and Riga
(Latvia).
The number of passengers on Viking Line vessels totalled
5,372,645 during fiscal 2004/2005, which was 4.3 per cent higher than in fiscal
2003/2004. Viking Line’s cargo volume rose by 4.3 per cent to 87,293 cargo units.
The Group’s seven vessels have a book value of EUR 149.3 M.
The vessels have hull and machinery and increased value insurance totalling EUR 484.8 M. In
addition, all vessels have protection and indemnity (P&I) insurance.
INVESTMENTS AND FINANCING
The Group’s investments totalled EUR 5.9 M (4.5).
On October 31, 2005, the equity/assets ratio stood at 54.5
per cent, compared to 53.7 per cent a year earlier. The Group’s long-term
liabilities decreased during fiscal 2004/2005 to EUR 15.5 M (24.3).
At the close of fiscal 2004/2005, the Group’s liquid assets
amounted to EUR 38.9 M (46.1). Net cash flow from business operations amounted
to EUR 18.0 M (33.6).
On November 29, 2005, Viking Line ordered a new high-speed
passenger ferry from Aker Finnyards for delivery in January 2008. The investment
will total between EUR 120 M and 130 M. The contract contains an option for two
additional vessels. Viking Line plans to place the vessel in service between
Helsinki (Finland) and Tallinn (Estonia).
IFRS
The Viking Line Group will switch to reporting in compliance
with International Financial Reporting Standards (IFRS) starting with the
financial statements for fiscal 2005/2006.
ORGANISATION AND PERSONNEL
The merger of the wholly-owned subsidiary Viking Line
Marketing Ab Oy with the parent company, Viking Line Abp, entered into force on
November 1, 2005.
The average number of Viking Line employees was 2,886
(2,828), of whom 1,728 (1,733) worked for the parent company. Land-based
personnel totalled 730 (704) and shipboard personnel totalled 2,156 (2,124).
OUTLOOK FOR 2006
Developments in Viking Line’s service area during the
2005/2006 fiscal year are difficult to assess at the moment, but Viking Line
anticipates continued stiff competition. Provided that no major changes occur in
the market area, the Group’s earnings in fiscal 2005/2006 are expected to be at
about the same level as its earnings in fiscal 2004/2005.
THE BOARD'S PROPOSAL ON DISTRIBUTION OF EARNINGS
According to the balance sheet of the Viking Line Group on
October 31, 2005 the unrestricted equity of the Group totalled EUR
34,797,513.37. The unrestricted equity of the parent company totalled EUR
44,803,019.78.
After a vote, the Board of Directors proposes that no
dividend be paid for the fiscal year 2004/2005 and that the parent company's net
profit of EUR 8,463,495.56 be carried forward.
CONSOLIDATED SUMMARY
INCOME STATEMENT, EUR M |
2004/2005 |
2003/2004 |
| Sales |
382.69 |
385.20 |
| Other operating revenues |
0.43 |
0.39 |
| Other operating expenses |
360.44 |
352.08 |
| Depreciation |
20.42 |
20.33 |
| Operating profit |
2.26 |
13.18 |
| Financial items |
-0.80 |
-0.23 |
| Profit before taxes |
1.45 |
12.95 |
| Income tax on actual operations |
-3.11 |
-6.16 |
| Change in deferred tax liability |
2.47 |
6.22 |
| Minority share |
0.00 |
0.00 |
| Net profit for the fiscal year |
0.82 |
13.01 |
CONSOLIDATED SUMMARY
BALANCE SHEET, EUR M |
Oct. 31, 2005 |
Oct. 31, 2004 |
| ASSETS |
| Fixed assets |
| Intangible assets |
0.51 |
0.66 |
| Group goodwill |
0.37 |
0.47 |
| Tangible assets |
162.69 |
177.11 |
| Shares and participations |
0.10 |
0.10 |
| Current and financial assets |
| Current assets |
8.38 |
8.22 |
| Receivables |
23.85 |
24.02 |
| Cash and bank balances |
38.89 |
46.15 |
| Total assets |
234.79 |
256.73 |
| SHAREHOLDERS’ EQUITY AND LIABILITIES |
| Shareholders’ equity |
| Share capital |
1.82 |
1.82 |
| Legal and share premium reserve |
0.02 |
0.02 |
| Share of accumulated appropriations |
91.20 |
98.23 |
| Other shareholders’ equity |
34.80 |
37.69 |
| Minority share |
0.03 |
0.03 |
| Deferred tax liability |
32.35 |
34.82 |
| Long-term liabilities |
15.50 |
24.31 |
| Current liabilities |
59.07 |
59.80 |
| Total shareholders’ equity and liabilities |
234.79 |
256.73 |
| PLEDGED ASSETS AND OTHER CONTINGENT LIABILITIES, EUR M |
Oct. 31, 2005 |
Oct. 31, 2004 |
| Assets pledged for own debt |
29.50 |
44.82 |
| Leasing liabilities |
0.76 |
0.81 |
|
STATEMENT OF CHANGES IN FINANCIAL POSITION, EUR M |
2004/2005 |
2003/2004 |
| Net cash flow from business
operations |
17.99 |
33.64 |
| Cash flow from capital spending |
-5.77 |
-4.45 |
| Financial items |
|
|
| Increase in long-term
liabilities |
0.19 |
0.14 |
| Decrease in long-term
liabilities |
-8.98 |
-8.83 |
| Change in long-term
receivables |
0.03 |
-0.04 |
| Dividend to shareholders |
-10.80 |
-21.60 |
| Translation difference |
0.09 |
0.01 |
| Total financial items |
-19.48 |
-30.32 |
| Change in liquid assets |
-7.26 |
-1.14 |
| Liquid assets, November 1 |
46.15 |
47.28 |
| Liquid assets, October 31 |
38.89 |
46.15 |
| FINANCIAL RATIOS AND STATISTICS |
2004/2005 |
2003/2004 |
| Earnings per share, EUR1 |
0.08 |
1.20 |
| Shareholders’ equity per share, EUR2 |
11.84 |
12.76 |
| Dividend per share, EUR |
- |
1.00 |
| Number of shares, October 31 |
10,800,000 |
10,800,000 |
| Return on equity (ROE)3 |
0.6% |
9.2% |
| Return on investment (ROI)4 |
1.7% |
7.8% |
| Equity/assets ratio5 |
54.5% |
53.7% |
When rounding off items to the nearest EUR 1,000,000, rounding-off differences of EUR ± 0.01 M have
occured.
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
+ minority share (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 + minority share) / (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 8, 2006 at the Hotel Arkipelag,
Strandgatan 31 in Mariehamn, Åland, Finland.
The Annual Report for fiscal 2004/2005 will be published
during the week of January 23 in Swedish and shortly thereafter in Finnish and
English.
Financial information
During fiscal 2005/2006, Viking Line Abp will issue interim
reports for the periods November 1, 2005 to January 31, 2006; November 1, 2005
to April 30, 2006; and November 1, 2005 to July 31, 2006. These interim reports
will be published during March, June and September 2006, respectively.
Mariehamn, December 19, 2005 VIKING LINE ABP
THE BOARD OF DIRECTORS
Nils-Erik Eklund
Managing Director
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