Aktsiaselts Tallink Grupp - NASDAQ OMX Baltic

FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED AUGUST 31, 2005
NOTES TO THE FINANCIAL STATEMENTS—(Continued)
Note 10 INVESTMENTS IN SUBSIDIARIES (Continued)
During the reporting period, the Group established five new subsidiaries (four with 100% ownership and one
with 70% ownership). The payments into the share capital of these subsidiaries in the total amount of EEK 794,000
including EEK 90,000 paid in by minority interests and EEK 40,000 paid in by a subsidiary of the Parent were made
in cash.
In August 2005 the Parent increased the share capital of Hansatee Cargo AS and Tallink AS both by
EEK 1,000 and share premiums of EEK 204,000,000 and EEK 96,000,000, respectively. The investments into
share capital of the subsidiaries were made in cash.
During the previous reporting period the Group established three new subsidiaries (all with 100% ownership).
The payments into the share capital of the subsidiaries in the total amount of EEK 59,000 were made in cash.
Additionally, in December 2003 the Group acquired 100% of the shares of Downtown Travel Club OÜ (renamed to
Tallink Travel Club OÜ) from Infortar AS (the parent company of the Group) for EEK 800,000, EEK 754,000 of
the purchase price was offset between the Parent, Infortar and Downtown Travel Club OÜ and the remaining
(EEK 46,000) was paid in cash. The new subsidiary operates as a travel agent company.
The fair value of the identifiable assets and liabilities of Tallink Travel Club OÜ at the date of acquisition
are as follows:
Current receivables ...................................................................... 754
Equipments ............................................................................ 13
Payables to the Parent .................................................................... (14)
Other current payables ................................................................... (2)
Fair value of net assets .................................................................. 751
Goodwill 1 ............................................................................. 49
Consideration .......................................................................... 800
1 Goodwill arising from the purchase of the new subsidiary was immediately expensed as an immaterial item.
Assets and liabilities of Tallink Travel Club OÜ as of August 31, 2004 and its income and expenses for the
period of January 2004 to August 2004 do neither affect the financial position of the Group at the reporting date
nor the results of the Group for the reporting period significantly.
Note 11 INVESTMENTS IN ASSOCIATES
The Group had one associate HT Valuuta AS with 25% ownership and EEK 100,000 of acquisition cost
during 2004/2005. HT Valuuta has been registered in Estonia. On August 30, 2005 HT Valuuta was sold to
Infortar AS. The receivable from the sale of the shares of HT Valuuta was settled in September 2005. The
following changes have been made in the Group’s investments into associates:
Year ended
August 31, 2005
Year ended
August 31, 2004
Investments at the beginning of financial year ............................ 2,557 1,997
Dividends received ................................................. (1,200) (800)
Share of profit of associates accounted for under equity method .............. 645 1,360
Salespriceofshares................................................. (5,000) 0
Gainfromsaleofshares ............................................. 2,998 0
Investments at the end of year ....................................... 0 2,557
Note 12 OTHER FINANCIAL ASSETS AND PREPAYMENTS
as of August 31
The Group The Parent
2005 2004 2005 2004
Receivables from subsidiaries ................................. 0 0 467,997 617,627
Other receivables and prepaid expenses ......................... 72 2,113 266,357 2,041
Total other financial assets and prepayments ................... 72 2,113 734,354 619,668
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