Aktsiaselts Tallink Grupp - NASDAQ OMX Baltic

TABLE OF CONTENTS
Summary .............................................................................. 1
Risk Factors ........................................................................... 7
RisksRelatingtoOurBusiness .......................................................... 7
Risks Relating to Our Industry ........................................................... 10
Risks Relating to Doing Business in Estonia and in the Baltic Region ............................ 12
RisksRelatingtotheOffering ........................................................... 13
Terms and Conditions of the Retail Offering .................................................. 15
InstructionstoInvestorsinEstonia ......................................................... 20
InstructionstoInvestorsinFinland ......................................................... 22
Use of Proceeds ........................................................................ 24
Capitalization .......................................................................... 24
Background and Reasons for the Offering .................................................... 25
Dividends and Dividend Policy ............................................................ 26
Exchange Rates ......................................................................... 27
Selected Financial Information ............................................................. 28
Operating and Financial Review and Prospects ................................................ 30
Overview ............................................................................ 30
Recent Developments and Outlook ....................................................... 31
Factors Affecting Results of Operations ................................................... 32
Results of Operations .................................................................. 33
Financial Year Ended August 31, 2005 Compared to Financial Year Ended August 31, 2004 .......... 34
Financial Year Ended August 31, 2004 Compared to Financial Year Ended August 31, 2003 .......... 36
LiquidityandCapitalResources.......................................................... 37
Off-Balance Sheet Guarantees ........................................................... 41
Critical Accounting Policies ............................................................. 41
ContractualObligations ................................................................ 42
MarketRiskDisclosure ................................................................ 43
Industry Overview ...................................................................... 44
European Mini-Cruise and Transport Ferry Markets .......................................... 44
Our Geographical Market Area .......................................................... 45
Business .............................................................................. 48
Overview ............................................................................ 48
Key Strengths ........................................................................ 48
Strategy............................................................................. 49
History ............................................................................. 50
Operational Segments .................................................................. 51
Routes Operated ...................................................................... 51
Products ............................................................................ 53
SalesandMarketing ................................................................... 56
Fleet ............................................................................... 58
Competition ......................................................................... 60
Regulation ........................................................................... 62
Trademarks .......................................................................... 63
MaterialContracts .................................................................... 64
Insurance ............................................................................ 64
Employees and Labor Relations .......................................................... 65
Legal Proceedings ..................................................................... 65
Real Estate and Premises ............................................................... 66
Organization ......................................................................... 66
RelatedPartyTransactions .............................................................. 68
Management ........................................................................... 69
Structure of Our Management ........................................................... 69
Managements Holdings ................................................................ 72
Management Remuneration and Benefits ................................................... 73
Principal and Selling Shareholders .......................................................... 74
Owner Structure ...................................................................... 74
Infortar ............................................................................. 74
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