Aktsiaselts Tallink Grupp - NASDAQ OMX Baltic

FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED AUGUST 31, 2004
NOTES TO THE FINANCIAL STATEMENTS—(Continued)
Note 16 INTEREST BEARING LOANS AND BORROWINGS (Continued)
* The group is allowed to use bank overdraft with limitation of EEK 200,000 thousand (including EEK 150,000 thousand granted to the
parent company) and EUR 1,009 thousand . Bank overdrafts are secured with commercial pledge (in the total amount of
EEK 151,250 thousand) and ship mortgages. In 2003/2004 the average effective interest rate of bank overdrafts is EURIBOR+2.17% for
overdrafts from Estonian commercial banks and EURIBOR+1.25% from Finnish commercial bank. As of August 31, 2004 and 2003
there were no outstanding overdraft balances.
* In 2003/2004 the weighted average interest rate of secured bank loan was EURIBOR +1.44% (EURIBOR + 1.34% for the parent company).
* Interest rates of other secured loans, which is a loan from the parent company of the group—Infortar—in the amount of EEK 98,530
thousands at August 31, 2004, has a fixed interest rate 7%.
* As of August 31, 2004 bonds with the book value of EEK 99,310 thousands (as at Aug 31, 2003: EEK 76,487 thousands) have the fixed
interest rate of 0%. The total nominal value of these bonds is EEK 100,000 thousands (2003: EEK 80,390 thousands). The difference
between the nominal value and the received amount is expensed during the loan period—it means that average effective interest rate is
approx. 3.0% (2003: 6.6%).
* Interest rate of long-term loan from Vana Tallinn Line Ltd is 0%. In the opinion of the management of Tallink Grupp there is not a
material impact on the financial statements from not using the effective interest rate, as Vana Tallinn Line Ltd is a subsidiary of Tallink
Grupp AS. Therefore, the specified loan carrying amount has not been corrected based on the effective interest rate in the both
companies’ financial statements.
* Lease liability of the group as of August 31, 2004 is related to office equipment in Sweden. Lease liability of the parent company is
related to the charters of ships from its subsidiaries. The future minimum lease payments under finance lease and the present value (PV)
of the net minimum lease payments are as follows:
The Group
minimum
payments
2003/2004 2002/2003
PV of
payments minimum
payments
PV of
payments
Within one year ........................................... 406 380 270 253
After 1 year, but not more than 5 years ......................... 1,492 1,397 1,785 1,671
Total minimum lease payments ............................... 1,898 2,055
Future financial charges ..................................... (121) (131)
PV of minimum lease payments ............................... 1,777 1,777 1,924 1,924
Book value of leased assets as at August 31, 2003 ......................................... 1,909
Additions, incl. exchange rate difference ................................................. 451
Depreciation for the financial year ...................................................... (682)
Book value of leased assets as at August 31, 2004 ......................................... 1,678
—atcosts ...................................................................... 3,024
—accumulated depreciation ....................................................... (1,346)
Parent Company
minimum
payments
2003/2004 2002/2003
PV of
payments
minimum
payments
PV of
payments
Within one year ...................................... 569,870 448,991 597,812 427,756
After 1 year, but not more than 5 years .................... 1,392,513 1,069,585 1,443,419 1,078,529
More than 5 years .................................... 1,237,805 1,104,109 1,537,635 1,342,216
Total minimum lease payments ......................... 3,200,188 3,578,866
Future financial charges ............................... (577,503) (730,365)
PV of minimum lease payments ......................... 2,622,685 2,622,685 2,848,501 2,848,501
Book value of leased assets as at August 31, 2003 ....................................... 2,815,303
Additions......................................................................... 233,794
Depreciation for the financial year ..................................................... (420,821)
Book value of leased assets as at August 31, 2004 ....................................... 2,628,276
—atcosts .................................................................... 4,054,452
—accumulated depreciation ...................................................... (1,426,176)
For additional information about currency structure of borrowings see Note 21.
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