INTERIM REPORT, NOVEMBER 1, 2005 - JANUARY 31, 2006

SALES AND EARNINGS

During the period November 1, 2005 – January 31, 2006, consolidated sales of the Viking Line Group totaled 87.21 million euro (year-earlier period: 84.58 million euro). Operating profit was EUR -5.46 M (-7.05). Consolidated profit before taxes totalled EUR -5.08 M (-7.12). Profit after taxes was EUR -3.85 M (-5.81).

Consolidated sales rose by 3.1 per cent due to more service days and higher passenger volume. Repair and maintenance costs were lower during the report period while bunker (vessel fuel) costs were substantially higher than in the year-earlier period.
 

TRAFFIC AND VOLUME

The Group’s vessels served the same main routes as during 2004/2005.

During the first three months of fiscal 2005/2006, the number of passengers on the Group’s vessels totalled 1,201,667. This was 2.6 per cent higher than in the year-earlier period. Viking Line’s cargo volume rose by 4.9 per cent to 23,241 cargo units.
 

INVESTMENTS AND FINANCING

The Group’s investments during the period totalled EUR 6.84 M (1.16). On January 31, 2006, the equity/assets ratio was 54.1 per cent, compared to 51.8 per cent on the same date in 2005.

On January 31, 2006, the Group’s liquid assets amounted to EUR 28.06 M (26.95). Net cash flow from business operations amounted to EUR -4.24 M (-7.43).

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).

On January 24, 2006, Viking Line submitted an indicative bid for the purpose of acquiring Silja Line.
 

ORGANISATION AND PERSONNEL

The average number of Group employees was 2,788 (2,784). Of these, 1,988 (1,690) worked for the parent company. Land-based personnel totalled 690 (701) and shipboard personnel 2,098 (2,083).
 

CHANGE IN ACCOUNTING PRINCIPLES

A deferred tax claim attributable to the earnings for the report period has been reported as a reduction in deferred tax liabilities. The deferred tax income has been reported in the income statement for the period. Comparative year figures have been adjusted accordingly.
 

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.
 

OUTLOOK FOR THE FULL 2005/2006 FISCAL YEAR

The Group’s earnings are not generated evenly throughout the year. These earnings are highly dependent on volume and price developments during the remainder of the fiscal year. Developments to date do not justify a change in the outlook published in the latest financial statements, i.e. that the Group’s earnings in fiscal 2005/2006 are expected to be at about the same level as its earnings in fiscal 2004/2005.

This Interim Report is unaudited.

The Interim Report for November 2005 – April 2006 will be published on June 15, 2006 and for November 2005 – July 2006 on September 14, 2006. The Group’s press release on results for fiscal 2005/2006 will be published on December 21, 2006.

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

Mariehamn, Åland, March 13, 2006
 

VIKING LINE ABP
The Board of Directors

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