SIX-MONTH REPORT Nov 1, 2001 - April 30, 2002

Sales and earnings

During the period November 1, 2001-April 30, 2002, consolidated sales of the Viking Line Group amounted to 176.86 million euro (year-earlier period: 190.13 million euro). Operating profit was EUR -0.26 M (4.19). Consolidated profit before taxes was EUR 0.51 M (2.63).

Profit after taxes was EUR 0.04 M (1.68). Taxes for the period were calculated on the basis of the reported earnings of Group companies.

Group sales fell during the report period, mainly due to lower passenger volume. Revenues per passenger were largely unchanged. About 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 the year-earlier period. The decrease in sales, together with exceptionally high repair and maintenance expenses, resulted in lower operating profit. Government restitution, which on Finnish-registered vessels is limited to a portion of shipboard personnel’s taxes, was taken into account as a reduction in expenses.

The increased repair and maintenance expenses were mainly related to quality-enhancement measures. The repair expenses owing to the Isabella’s accident were mainly covered by the vessel’s insurance.

The strengthening of the Swedish krona during the report period contributed to positive net financial items.

Traffic and market conditions

During the first half of fiscal 2001/2002, the number of passengers on the Group’s vessels totalled 2,224,242. This represented a 7.3 per cent decrease, compared to the year-earlier period. The total passenger market in Viking Line’s service area (Finland-Sweden and Finland-Baltic states) declined by 1.2 per cent, compared to the year-earlier period. Viking Line’s cargo volume declined by 0.1 per cent to 38,525 cargo units.

Viking Line’s share of the passenger traffic in its entire service area amounted to 34.6 per cent (36.9). Its market share on each respective route was as follows: Helsinki (Finland)-Stockholm (Sweden), 42.3 per cent (44.0); Turku (Finland)-Stockholm/Kapellskär (Sweden), 42.2 per cent (46.8); services to the Åland Islands (Finland), 39.1 per cent (43.3); and Helsinki-Baltic states, 24.5 per cent (25.1). Viking Line’s share of the cargo market totalled 23.0 per cent (22.4).

As mentioned above, 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 route were cancelled. Otherwise the Group’s vessels served the same routes as during 2000/2001. Besides the Isabella’s absence from service, there were 35 more dry-docking and idle days during the report period than during the year-earlier period.

Capital spending and financing

The Group’s investments in fixed assets during the report period totalled EUR 4.70 M (4.25) On April 30, 2002, the equity/assets ratio was 46.8 per cent, compared to 43.8 per cent on the same date last year.

Personnel

The average number of Group employees during the report period was 2,674 (2,708). Of these, 2,022 (2,061) worked for the parent company. Land-based personnel totalled 677 (672) and shipboard personnel totalled 1,997 (2,036).

Outlook for the full 2001/2002 fiscal year

As a result of developments during the first half of the fiscal year, the Group’s traffic volume and sales for the full fiscal year are expected to be lower than in 2000/2001. 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, which are especially difficult to judge this year due to the changed competitive situation. These circumstances justify a revision of the outlook published in the most recent Interim Report, i.e. that fiscal year 2001/2002 earnings were expected to be better than 2000/2001 earnings. In the current judgement of the Board of Directors, it is uncertain whether earnings can reach the same level in fiscal 2001/2002 as in the preceding fiscal year.

This Interim Report is unaudited.

The next Interim Report (November 1, 2001 to July 31, 2002) will be published on September 5, 2002.

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


Mariehamn, Åland, June 6, 2002

VIKING LINE ABP
The Board of Directors

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