SIX-MONTH REPORT, NOVEMBER 1, 2003 - APRIL 30, 2004

SALES AND EARNINGS

During the period November 1, 2003 -April 30, 2004, the consolidated sales of the Viking Line Group totalled 169.95 million euro (year-earlier period: 178.30 million euro). Operating profit was EUR -2.84 M (-0.88). Consolidated profit before taxes totalled EUR -3.09 M (-1.24). Profit after taxes was EUR -3.09 M (-1.29).

Due to lower passenger volume and lower net sales revenues per passenger, the Group’s sales fell and operating profit was lower than in the same period of fiscal 2002/2003. Net sales revenues per passenger declined due to the adjustment of shipboard prices for those goods on which the tax level in Finland has been lowered.
 

TRAFFIC AND MARKET CONDITIONS

The Group’s vessels served the same main routes as during 2002/2003. Starting in September, the Cinderella was placed in cruise service on the Stockholm (Sweden)-Mariehamn (Åland Islands) route. The vessel previously provided cruises between Helsinki (Finland) and Tallinn (Estonia). Since mid-August, the Rosella has operated in scheduled service between Helsinki and Tallinn. The vessel previously provided cruise service between Stockholm and Mariehamn.

During the first six months of fiscal 2003/2004, the number of passengers on the Group’s vessels totalled 2,197,958. This was 2.7 per cent lower than in the year-earlier period. Total passenger volume in Viking Line’s service area rose by 1.0 per cent compared to the year-earlier period. Viking Line’s cargo volume rose by 5.2 per cent to 42,268 cargo units.

During the period, Viking Line increased its passenger volume and market share in Sweden-Åland Islands (Finland)-Finnish mainland services. On the Helsinki-Tallinn route, passenger volume declined, while cargo volume rose. Viking Line’s share of passenger traffic in its entire service area totalled 33.1 per cent (34.4). Its market share on each respective route was as follows: Helsinki-Stockholm, 41.9 per cent (42.8); Turku (Finland)-Stockholm/Kapellskär (Sweden), 42.4 per cent (43.2); services to the Åland Islands, 49.9 per cent (41.8); and Helsinki-Baltic countries 14.8 per cent (24.6). Viking Line’s share of the cargo market totalled 22.0 per cent (22.0).
 

INVESTMENTS AND FINANCING

The Group’s investments during the report period totalled EUR 2.58 M (3.95). On April 30, 2004, the equity/assets ratio was 50.5 per cent, compared to 49.1 per cent on the same date last year.

On April 30, 2004, the Group’s liquid assets amounted to EUR 19.89 M (27.91). Net cash flow from business operations amounted to EUR 3.47 M (9.35).

On May 18, 2004, Viking Line acquired a majority of the shares in Sundqvist Buss Ab, which provides scheduled service and organises bus trips using twelve buses based in Åland.
 

ORGANISATION AND PERSONNEL

On May 17, 2004, the Board of Directors decided to draft a plan for a merger of the wholly-owned subsidiary Viking Line Marketing Ab Oy with the parent company, Viking Line Abp.

The average number of Group employees during the report period was 2,707 (2,739). Of these, 1,696 (2,096) worked for the parent company. Land-based personnel totalled 665 (662) and shipboard personnel totalled 2,042 (2,077).
 

OUTLOOK FOR THE FULL 2003/2004 FISCAL YEAR

The Group’s earnings are not generated evenly throughout the year. Earnings, which are especially difficult to predict this year, are highly dependent on volume and price developments during the remainder of the fiscal year. The changes in the rules on personal imports of taxed alcoholic beverages, the enlargement of the EU, the lowering of Finnish excise taxes on alcoholic beverages and the increased competition in Viking Line’s service area are expected to have an adverse impact on the Group’s earnings. Developments to date indicate that earnings during the 2003/2004 fiscal year will be lower than 2002/2003 earnings.

This Interim Report is unaudited.

The next Interim Report (November 1, 2003 - July 31, 2004) will be published on September 9, 2004.
 

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

Mariehamn, Åland, June 3, 2004
 

VIKING LINE ABP
The Board of Directors

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