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31.07.2019Media Releases

Financial Review January–June 2019 (unaudited)

EMANUELE GRIMALDI, PRESIDENT AND CEO, IN CONJUNCTION WITH THE REVIEW:

“The Finnlines Group’s revenue for January–June 2019 was EUR 295.5 million, which was an increase of 2% compared to the corresponding period last year. The result for the reporting period was EUR 46.7 million – a 10% increase compared to EUR 42.3 million in January–June 2018. Earnings before interest, taxes, depreciation and amortisation, EBITDA, was EUR 83.5 (78.3 in 2018) million. Our financial performance has improved regardless of the fact that the growth of the Finnish economy has slowed down to some extent during the first half of the year.

We have made along the years substantial operational and financial efficiency improvements. These include also major investments in our existing fleet, both environmental and capacity related. We have invested in emission abatement technology covering almost all our vessels and also lengthened six of our vessels in order to benefit from economies of scale. These investments have contributed to our sustainable development and e.g. the fuel consumption per transported tonne has decreased when considerably more cargo can be loaded on board a ship. Other efforts to reduce energy consumption and emissions include changing of propeller blades, timetable planning, route optimisations as well as optimising speed, load and trim.

IMO’s (International Maritime Organization) goal is to reduce CO2 emissions by at least 50% by 2050 compared to 2008. EU has recently published its CO2 emissions data on shipping sector for 2018. CO2 emissions have been measured and our emissions have been certified by official certification society line by line. Based on common accepted calculation method, it can be seen that we have reduced CO2 emission between 2008 and 2018 by approximately 30%. However, while our past record in emission reduction is superb, we are looking beyond the IMO requirements. With regulators stimulating the debate on low-carbon fuels, we pledge not to lose our focus on sustainability: we will continue to improve and are on the right path. This focus on sustainability requires further investments. We have recently ordered three new green ro-ros, which will be built to produce zero emission in ports and aimed at pushing beyond the green scores of ro-ro in the Baltic region. We are also about to further order two Superstar class ro-pax vessels, in order to strengthen our well developing passenger business growth. These vessels will be the best and most environmentally friendly units in their category, carrying 5,800 lane metres of cargo and close to 1,000 passengers.

We are on track on our financial performance and Finnlines Group’s financial solidity is sound. Thanks to this and all the above systematic and strategic actions, especially in economies of scale and in environmental footprint of the fleet, and moreover, our coming EUR 500 million investments in those new vessels, we can wholeheartedly say that Finnlines’ shipping operations are the most sustainable way of transportation. Also the whole sector plays an important role in developing solutions to reduce emissions and promote environmental efficiency. Thus it can be said – while shipping is already the most environmentally friendly mode of transport – our drive towards sustainability has and will ensure that Finnlines keeps its green title as a forerunner of the sector in the Baltic Sea region.”

FURTHER INFORMATION

Tom Pippingsköld, Chief Financial Officer, tel. +358 40 519 5041, tom.pippingskold@finnlines.com

Finnlines is a leading shipping operator of ro-ro and passenger services in the Baltic Sea, the North Sea and the Bay of Biscay. The Company is a part of the Grimaldi Group, one of the world’s largest operators of ro-ro vessels and the largest operator of the Motorways of the Sea in Europe for both passengers and freight. This affiliation enables Finnlines to offer liner services to and from any destination in the Mediterranean, West Africa as well as the Atlantic coast of both North and South America.

Finnlines Financial Review January–June 2019