INTERIM REPORT, NOVEMBER 1, 2002 - JANUARY 31, 2003

SALES AND EARNINGS

During the period November 1, 2002–January 31, 2003, the consolidated sales of the Viking Line Group totalled 88.25 million euro (year-earlier period: 88.42 million euro). Operating profit was EUR –0.98 M (0.92). Consolidated profit before taxes was EUR –1.22 M (1.99). Profit after taxes was EUR –1.22 M (1.32).

Although the number of service days was considerably higher, sales were largely at the same level as during the corresponding period of fiscal 2001/2002. Net sales revenues per passenger were lower. Among other operating expenses, vessel fuel (bunkering) costs rose significantly due to the ice situation and higher vessel fuel prices. Operating profit was thus lower than in the year-earlier period.

The Group’s net financial items for the report period were negative, which also contributed to lower earnings than in the year-earlier period. During the corresponding period of fiscal 2001/2002, the valuation of Swedish krona holdings on the balance sheet date resulted in a sizeable exchange gain, which led to positive net financial items.

TRAFFIC AND MARKET CONDITIONS

Competition in Viking Line’s service area (Finland-Sweden and Finland-Baltic countries) is becoming increasingly keen, especially from shipping companies with vessels that sail under a foreign flag and have lower manning expenses. In the service area, two Swedish-registered vessels have been added. The range of cruises under the Estonian flag also expanded, due to Tallink’s large new passenger vessel, which began service last year.

The Group’s vessels served the same main routes as during 2001/2002. The number of service days during the period was higher than during the corresponding period of fiscal 2001/2002. The Ålandsfärjan was removed from service for upgrades between January 7 and February 6, 2003. During the previous fiscal year, the Ålandsfärjan was out of service between January 2 and February 14, 2002 and the Isabella between December 20, 2001 and February 12, 2002.

During the first three months of fiscal 2002/2003, the number of passengers on the Group’s vessels totalled 1,079,483. This represented a 1.7 per cent increase, compared to the year-earlier period. The total passenger volume in Viking Line’s service area was unchanged, compared to the year-earlier period. Viking Line’s cargo volume declined by 2.1 per cent to 18,422 cargo units.

Viking Line’s share of the passenger traffic in its entire service area amounted to 35.0 per cent (34.5). Its market share on each respective route was as follows: Helsinki (Finland)-Stockholm (Sweden), 41.1 per cent (42.1); Turku (Finland)-Stockholm/Kapellskär (Sweden), 42.5 per cent (40.9); services to the Åland Islands (Finland), 42.7 per cent (37.6); and Helsinki-Baltic countries, 24.7 per cent (25.8). Viking Line’s share of the cargo market totalled 21.4 per cent (23.1).

CAPITAL SPENDING AND FINANCING

The Group’s investments in fixed assets during the report period totalled EUR 0.58 M (1.17) On January 31, 2003, the equity/assets ratio was 51.3 per cent, compared to 48.8 per cent on the same date last year.

At the close of the report period, the Group’s liquid assets amounted to EUR 47.48 M (57.07). Net cash flow from business operations amounted to EUR 4.26 M (4.50).

PERSONNEL

OUTLOOK FOR THE FULL 2002/2003 FISCAL YEAR

This Interim Report is unaudited.

The next Interim Report (November 1, 2002 to April 30, 2003) will be published on June 4, 2003.

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

Mariehamn, Åland, February 21, 2003
 

VIKING LINE ABP
The Board of Directors

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