Yearbook 2017 As Tallink Grupp Yearbook 2017 Table of Contents
Total Page:16
File Type:pdf, Size:1020Kb
YEARBOOK 2017 AS TALLINK GRUPP YEARBOOK 2017 TABLE OF CONTENTS STATEMENT OF THE SUPERVISORY BOARD 6 SECTION IV: FINANCIAL STATEMENTS 95 2017 HIGHLIGHTS 8 KEY FIGURES OF THE FINANCIAL YEAR 2017 96 CONSOLIDATED FINANCIAL STATEMENTS 97 SECTION I: ABOUT US 10 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 101 TALLINK GRUPP AT A GLANCE 11 NOTE 1 CORPORATE INFORMATION 101 COMPANY OVERVIEW 12 NOTE 2 BASIS OF PREPARATION 101 WHO WE ARE 12 NOTE 3 SIGNIFICANT ACCOUNTING POLICIES 106 WHAT WE DO 12 NOTE 4 SEGMENT INFORMATION 118 BRAND ARCHITECTURE 22 NOTE 5 OPERATING EXPENSES AND FINANCIAL ITEMS 120 BRANDED SERVICES AND CONCEPTS 23 NOTE 6 INCOME TAX 122 OUR BUSINESS PHILOSOPHY AND GUIDING CORE VALUES 24 NOTE 7 EARNINGS PER SHARE (EPS) 125 TALLINK GRUPP VALUES 26 NOTE 8 CASH AND CASH EQUIVALENTS 125 GROUP STRUCTURE 28 NOTE 9 TRADE AND OTHER RECEIVABLES 126 OUR FLEET AND ROUTES 29 NOTE 10 PREPAYMENTS 126 ROUTEMAP 30 NOTE 11 INVENTORIES 127 OUR FLEET 32 NOTE 12 PREPAYMENTS 127 NOTE 13 OTHER FINANCIAL ASSETS 128 NOTE 14 PROPERTY, PLANT AND EQUIPMENT 128 SECTION II: STRATEGIC REPORT 35 NOTE 15 INTANGIBLE ASSETS 130 NOTE 16 INTEREST-BEARING LOANS AND BORROWINGS 131 MANAGEMENT REPORT 36 NOTE 17 TRADE AND OTHER PAYABLES 133 OUR STRATEGY 42 NOTE 18 DEFERRED INCOME 133 CORPORATE RESPONSIBILITY REPORT 43 NOTE 19 SHARE CAPITAL AND RESERVES 134 I SAFETY AND SECURITY 45 NOTE 20 SHARE OPTION PROGRAMME 135 II PEOPLE 48 NOTE 21 CONTINGENCIES AND COMMITMENTS 136 III ENVIRONMENT 56 NOTE 22 RELATED PARTY DISCLOSURES 137 IV MARKET 66 NOTE 23 GROUP ENTITIES 139 V COMMUNITY 72 NOTE 24 CONTINGENCIES AND COMMITMENTS 140 NOTE 25 CORRECTION OF ERRORS 147 SECTION III: GOVERNANCE REPORT 79 NOTE 26 SUBSEQUENT EVENTS 149 NOTE 27 PRIMARY FINANCIAL STATEMENTS OF THE PARENT 149 SHARES AND SHAREHOLDERS 80 SUPERVISORY BOARD 84 INDEPENDENT AUDITOR’S REPORT 154 MANAGEMENT BOARD 86 RISKS AND OPPOPRTUNITIES 93 GRI CONTENT INDEX 160 CONTACTS 166 Throughout the year, we continued modernising and The most important resolutions were the following: upgrading our ships through our ongoing group-wide STATEMENT • Approving the budget for financial year 2018; ship renewal programme to ensure our vessels are the safest, most comfortable and with the greatest range • Approving the statute of audit committee; OF THE of amenities and services. We developed, tested and • Granting consent to the sale of passenger ferries implemented a number of e-solutions to better serve Stena Superfast VII and Stena Superfast VIII; our customers in an increasingly digital world. We SUPERVISORY • Appointing advisers for exploring strategic options; continued to work on the strategy and improvements to our Hotels. • Approving the anti-corruption policy of AS Tallink BOARD Grupp. The Supervisory Board has examined and approved All this with the aim of the Annual Report and profit distribution of the 2017 “offering our customers the financial year. best Tallink Grupp can offer On behalf of the Supervisory Board, I would like to on the Baltic Sea and in the thank the members of the Management Board and Baltics. And all this as a result all Tallink Grupp’s employees for delivering this great result. of great teamwork from over 7,300 committed employees Dear shareholders, customers, partners and In addition, in 2017 most of our routes continued to in the six countries Tallink I am convinced that with employees of AS Tallink Grupp, grow and develop well, particularly our Riga-Stockholm Grupp operates in. the recent addition of Paavo route, which is growing significantly now that two “ ships are once again operating on the route, and our Nõgene as the new CEO for 2017 was a record year for Tallink Grupp in more areas Stockholm-Tallinn route, which reached one million than one: we transported more passengers than ever our group, a strengthened passengers in one year for the first time ever. I am pleased to note that in accordance with the (9.8 million), our cargo business continued to go from Group’s strategy, the strong financial position allows Management Board and a strength to strength on all our routes, delivering a record us to continue paying dividends. The Management number of cargo units transported in one year (nearly great team with passion for Of course, challenges Board and the Supervisory Board will propose to the 365,000 units) and our newest fleet member, Megastar, shareholders’ Annual General Meeting on 12 June 2018 offering our customers only transported 2 million passengers in its first year - more remain and tough “ a dividend distribution of EUR 0.03 per share, i.e. EUR the best, we can achieve even than any of our vessels have ever transported in one competition on the Baltic 20 096 000 in aggregate. year. These are just a few of the highlights from 2017. more and deliver our ambition There were several more to feel proud of and to build on Sea, particularly on the The Supervisory Board has regularly reviewed the of being market pioneers in in the years to come. Tallinn-Helsinki route, financial results and the Management Board’s Europe in our sector. continues to put pressure economic activity overviews of the company. The The launch of the LNG-powered vessel Megastar on the cooperation with the Management Board has been Tallinn-Helsinki route was certainly a key achievement on us. The challenges, very good. of the year. The ship has delivered against all our however, simply mean we expectations and even exceeded them. Megastar is just During the past financial year, the meetings of the as efficient, comfortable and environmentally friendly need to continue to think Supervisory Board were held 4 times in total and as promised, but what’s more – our customers love it ENN PANT ahead, innovate and never without calling a meeting written resolutions were and the passenger numbers are clear evidence of that. CHAIRMAN OF THE SUPERVISORY BOARD become complacent. adopted 7 times in total. 6 | AS TALLINK GRUPP YEARBOOK 2017 AS TALLINK GRUPP YEARBOOK 2017 | 7 2017 HIGHLIGHTS TALLINK GRUPP AT A GLANCE What we do H % PASSENGER CARGO HOTELS Tallink Grupp’s TRANSPORT TRANSPORT passenger market 5 hotels share is 47% 12 vessels 2 vessels (Tallinn & Riga) in the northern Baltic Sea area. Our FIN SWE EST RUS businesses GER LAT Our brands SECTION I: (*source: Generation Research) Our position in the world Ranked ABOUT US Ranked Ranked Ranked 1st 3rd 12th 3rd in the world in the world in the world in the world among ferry among ferry among ferry among top operators by operators by operators by Duty Free & revenue gross tons number of Travel Retail beds (EUR MILLION) shops 10 | AS TALLINK GRUPP YEARBOOK 2017 AS TALLINK GRUPP YEARBOOK 2017 | 11 ABOUT US | STRATEGIC REPORT | GOVERNANCE REPORT | FINANCIAL STATEMENTS | OTHER INFORMATION from various transport and leisure products to a On our short overnight cruises between Stockholm COMPANY OVERVIEW high speed Tallink Shuttle service between Tallinn and Helsinki, Tallinn and Riga our passengers can and Helsinki. Our offering also includes complete not only enjoy the various restaurants, bars, shops, leisure and fun-filled short cruise experiences with and excellent onboard entertainment, but can also possible overnight hotel and spa stays at various purchase the various excursions that are offered in all destinations. A large proportion of our products are the cities we sail to. sold as combined services and travel packages. Travel packages are tailored to suit customer preferences All our vessels are continuously renovated and in each market as to the type of vessel, length of trip, upgraded to always offer our customers the best use of conference services, hotel accommodation experiences onboard with expanded shopping areas, and other leisure products. All our vessels are built to cosy restaurants and modern cabins. WHO WE ARE WHAT WE DO accommodate a large number of passenger vehicles as well as ro-ro cargo. We offer our customers end-to- AS Tallink Grupp with its subsidiaries (hereinafter also Our products and services end travel experiences, from joyful and easy cruises referred to as “the Group”) is a leading European or transportation between top destinations to hotel ferry operator, offering high quality mini-cruise and accommodation and taxi services. passenger transport services as well as ro-ro cargo We are the market leader services in the Baltic Sea region. The Group provides its in the Nordic and Baltic services on seven routes between Finland and Sweden, “ region in the maritime Cruises Estonia and Finland, Estonia and Sweden, and Latvia and Sweden under the brand names of “Tallink” and transport sector with the We offer a variety of short cruises on all our routes which “Silja Line”. The Group has a fleet of 14 vessels which most modern fleet and a include Helsinki-Stockholm, Turku-Stockholm, Helsinki- includes cruise ferries, high-speed ro-pax ferries and Tallinn, Stockholm-Tallinn and Riga-Stockholm. We ro-ro cargo vessels. In addition, the Group operates a variety of routes and services, also sell short day-cruises to the Aland islands from chain of five hotels - four in Tallinn and one in Riga. both Stockholm and Turku, and annually organise a few special cruises during the summer high season. On our cruises we offer our customers the full experience: top quality shopping, dining and entertainment are all available on our cruise ships and are delivered by the best team. There are numerous activities onboard our vessels. Whether it is peace and “quiet in the winter gardens or on the sun decks, or the hustle and bustle of a high street or nightclub you are looking for – our ships have got some- thing to offer to everyone.