INTERIM REPORT Nov 1, 2001 - Jan 31, 2002

SALES AND EARNINGS

During the period November 1, 2001-January 31, 2002, consolidated sales of the Viking Line Group amounted to 88.42 million euro (year-earlier period: 94.44 million euro). Operating profit was EUR 0.92 M (0.52). Consolidated profit before taxes was EUR 1.99 M (–0.33).

Profit after taxes was EUR 1.32 M (–0.33). Taxes for the period were calculated on the basis of the reported earnings of Group companies.

Group sales fell during the period. This was mainly due to the Isabella’s accident and subsequent absence from service, which also led to lower expenses. Revenues per passenger were largely unchanged. Operating profit was somewhat better due to lower operating expenses. The Finnish government’s partial restitution of shipboard personnel’s taxes was taken into account as a reduction in expenses.

The strengthening of the Swedish krona during the latter part of the report period resulted in positive net financial items, which also contributed to higher earnings than in the corresponding period of fiscal 2000/2001.

TRAFFIC AND MARKET CONDITIONS

During the first quarter of fiscal 2001/2002, the number of passengers on the Group’s vessels totalled 1,061,584. This represented a 7.0 per cent decrease, compared to the year-earlier period. The total passenger market in Viking Line’s service area (Finland-Sweden and Finland-Estonia) declined by 2.1 per cent, compared to the year-earlier period. Viking Line’s cargo volume declined by 1.1 per cent to 18,823 cargo units.

Viking Line’s share of the passenger traffic in its entire service area amounted to 34.5 per cent (36.3). Its market share on each respective route was as follows: Helsinki (Finland)-Stockholm (Sweden), 42.1 per cent (44.4); Turku (Finland)-Stockholm/Kapellskär (Sweden), 40.9 per cent (47.4); services to the Åland Islands (Finland), 37.6 per cent (41.6); and Helsinki-Estonia, 25.8 per cent (24.8). Viking Line’s share of the cargo market totalled 23.1 per cent (21.8).

The decline in Viking Line’s passenger volume was largely due to the fact that during half of the report period, the Group had one vessel less in service 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 route were cancelled. Otherwise the Group’s vessels served the same routes as during 2000/2001.

CAPITAL SPENDING AND FINANCING

The Group’s investments in fixed assets during the report period totalled EUR 1.17 M (1.71) On January 31, 2002, the equity/assets ratio was 48.8 per cent, compared to 44.2 per cent on the same date last year.

PERSONNEL

The average number of Group employees during the report period was 2,656 (2,702). Of these, 2,003 (2,056) worked for the parent company. Land-based personnel totalled 673 (664) and shipboard personnel totalled 1,983 (2,038).

OUTLOOK FOR THE FULL FISCAL YEAR

The Group’s traffic volume and sales for the full 2001/2002 fiscal year are expected to be somewhat lower than in 2000/2001. However, the Group’s earnings are not generated evenly throughout the year. Earnings for the full fiscal year are highly dependent on volume and price developments during the summer. Developments to date give no reason to change the outlook published in the most recent annual accounts, i.e. that fiscal year 2001/2002 earnings will be better than 2000/2001 earnings.

This Interim Report is unaudited.

The next Interim Report (November 1, 2001 to April 30, 2002) will be published on June 6, 2002.

When rounding off items to the nearest EUR 1,000,000, rounding-off differences of EUR M ± 0.01 have arisen.


Mariehamn, Åland, March 11, 2002

VIKING LINE ABP
The Board of Directors

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