E s t r a v E l I a n n u a l r E p o r t 2 0 1 3

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addrEss by thE managIng dIrEctor 3

managEmEnt rEportFInancIal hIghlIghts oF EstravEl as 5

summarIsEd salEs oF EstravEl group 6

salEs brEaKdoWn by product 7

pacKagE tour salEs by opErator 7

FErry tIcKEt salEs by carrIEr 7

salEs by gEographIcal arEas 8

salEs brEaKdoWn by customEr group 8

FInancIal statEmEntbalancE shEEt 9

IncomE statEmEnt 11

statEmEnt oF comprEhEnsIvE IncomE 11

statEmEnt oF cash FloWs 12

rEcEIvablEs and prEpaymEnts 14

tradE rEcEIvablEs 14

alloWancE For doubtFul rEcEIvablEs 15

prEpaId taxEs and taxEs payablE 16

othEr rEcEIvablEs 17

InvEstmEnts In subsIdIarIEs 18

payablEs and advancEs rEcEIvEd 19

audItors’ rEport 20

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2013 can be considered a successful year in every way for Estravel. despite competition growing ever more fierce we managed to achieve all of our main goals. the year was a busy one, but also celebratory, as we ran several events and campaigns to mark our 25th anniversary.

Estravel received three awards in 2013 of which we are very proud. the Estonian chamber of commerce and Industry and the Estonian Employers confederation compiled the Estonian companies com-petitiveness ranking, based on which Estravel was awarded the title of most competitive travel agency in 2013. In a study conducted by cv-Keskus, Estravel was named one of the most valued employers in the country, and we were also the only travel company in the top ten. Finally, the supervisory board of the Estonian business school awarded anne samlik, the managing director of Estravel, with the title of business manager of the year.

2013 was a success for us in financial terms, too. We boosted our posi-tion as the largest travel agency in Estonia and increased our turnover and sales revenue. our technical sales turnover increased by nearly 12% compared to last year, reaching 64.7 million euros. our sales rev-enue increased at the same time to more than 6.7 million euros, which represents nearly 3% growth. our net profit was, however, 0.9 million euros, which is slightly less than last year.

among all client groups on Estonian market sales to private customers grew most in 2013, increasing by 7.4% compared to the previous year.

dear reader,

Venice

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previous favourite destinations turkey, greece and the canary Islands gained even more popularity. the numbers of people travelling to thailand and the united arab Emirates has also grown, as visiting these places is now easier thanks to simplified visa conditions. In terms of products sold, plane ticket and accommodation sales pro-vided the greatest turnover. as a trend we can highlight sales via elec-tronic channels, since the largest increase occurred in online sales of travel services. this is not particularly surprising, as similar trends can be seen in nearly all areas. Implementing a variety of convenient new e-solutions cemented Estravel’s success.

as a successful company, we continued supporting many undertak-ings and organisations in Estonia in 2013. probably the most notable of these was our sponsorship partnership with the Estonian olympic committee. Estravel was also the official Estonian vendor for tickets to the sochi Winter olympics, which meant that we were responsible for taking care of Estonian tourists’ wellbeing in sochi, which struggled with minor issues here and there.

We also supported several charity projects, such as the sinilill support centre for children with special needs, the Estonian national sympho-ny orchestra and the get-together of the Friends of Estonia club, and helped out a number of student organisations in arranging trips abroad.

at the end of 2013 Estravel employed 139 people in Estonia, making it the largest employer in the field of tourism services in the country. In addi-tion, we have 17 employees in latvia and 25 employees in the subsidiary uab Estravel vilnius in lithuania. the company has 11 offices in seven Estonian towns and cities and three offices in the other baltic states.

all of our achievements in 2013 were the result of years of hard work by the Estravel team. We are fully committed to providing our clients in Estonia and our neighbouring countries with the best possible trav-el service.

thank you, dear clients, for recognising our efforts and entrusting us with your purchases and orders!

aIvo taKIsMember of the Board

annE samlIKMember of the Board, Managing Director

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FInancIal hIghlIghtsoF EstravEl as(in millions of euros)

2013 2012

Gross sales 64.66 57.83

Revenue and other income 6.746 6.568

Pretax profit 1.140 1.149

Profit margin 13.5% 15.1%

Share capital 0.2 0.2

Shareholders` equity 2.2 2.2

Return on assets 12.3% 14.8%

Return on equity 40.5% 44.5%

Solvency 1.4 1.4

Amsterdam

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summarIsEd salEsoF EstravEl group

accounting unit in the group sales* Internal sales total sales (Eur) (Eur) (Eur)

Estravel AS (Estonia) 58,492,232 175,346 58,316,886

Estravel AS (Latvia, dba. FTB Latvia) 6,209,390 185,611 6,023,779

Estravel Vilnius (Lithuania, dba. American Express) 11,630,902 107,530 11,523,372

Total 76,332,524 468,487 75,864,037

*technical sales

Rome

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salEs*

brEaKdoWnby product

pacKagE toursalEs*

by opErator

FErry tIcKEtsalEs*

by carrIEr

Airline tickets 59.6%

Hotel accomodation 13.2%

Package tours & cruises 12.7%

Ferry tickets 6.7%

Other services 4.9%

Insurance 1.1%

Bus & and car rental 0.9%

Rail tickets 0.5%

Visas 0.4%

Novatours 29.6%

Tez Tour 19.5%

Aurinko 18.7%

Aurinkomatkat 13.4%

Finnmatkat 11.5%

TUI Reisecenter 3.6%

Germalo Reisid 1.2%

Others 2.4%

Tallink 51.8%

Viking Line 18.9%

Eckerö Line 17.5%

Lindaliini 9.3%

Finnlines 1.1%

Others 1.5%

*technical sales

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salEs bygEographIcalarEas

destination country in sales order share c hange of share

EU countries (excl. Finland, Latvia, Lithuania, Estonia) 33.7% -1.6%

Estonia 15.9% 1.9%

Europe (excl. EU counties) 11.9% 1.2%

Asia 10.3% 0.2%

Finland 6.4% -1.1%

USA 6.4% -1.1%

Latvia 2.9% 0.3%

Lithuania 1.6% 0.1%

Other countries 10.9% 0.1%

*technical sales

salEs*

brEaKdoWnby customEr group

2013 2012

Business 41% 42%

Private persons 42% 41%

Government & non-profit 12% 12%

Resellers abroad 2% 2%

Resellers in Estonia 3% 3%

*technical sales

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balancEshEEt(in euros)

31. 12. 13 31. 12. 12

assets

current assets

Cash 537,640 342,607

Financial assets 0 2,000,000

Receivables and prepayments 6,536,094 4,019,125

Inventories 10,012 16,562

total current assets 7,083,746 6,378,294

non-current assets

Financial assets 173,607 160,687

Receivables and prepayments 3,970 0

Property, plant and equipment 88,210 109,166

Intangible assets 14,485 58,291

total non-current assets 280,272 328,144

total assets 7,364,018 6,706,438

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31. 12. 13 31. 12. 12

liabilities and equity

liabilities

Current liabilities 5,122,638 4,481,316

Total current liabilities 5,122,638 4,481,316

Equity

Share capital at par value 189,000 189,000

Share premium 28,792 28,792

Statutory capital reserve 19,173 19,173

Other reserves 24,590 24,001

Retained earnings (prior periods) 1,073,156 972,983

Profit for the period 906,669 991,173

total equity 2,241,380 2,225,122

total liabilities and equity 7,364,018 6,706,438

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IncomEstatEmEnt(in euros)

2013 2012

Revenue 6,737,447 6,553,865

Other income 8,903 13,943

Other operating expenses -1,825,568 -1,659,067

Personnel expenses -3,761,948 -3,669,742

Depreciation, amortisation and impairment losses -83,451 -90,804

Other expenses -76,110 -155,481

Operating profit 999,273 992,714

Finance income and expenses 140,274 156,358

Profit before tax 1,139,547 1,149,072

Income tax expense -232,878 -157,899

profit for the year 906,669 991,173

statEmEnt oFcomprEhEnsIvEIncomE(in euros)

2013 2012

Profit for the year 906,669 991,173

Other comprehensive income:

Exchange differences on translating foreign operations 589 -363

Total other comprehensive income 589 -363

total comprehensive income for the year 907,258 990,810

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statEmEnt oF cash FloWs(in euros)

2013 2012

cash flows from operating activities

Operating profit 999,273 992,714

Adjustments for

Depreciation, amortisation and impairment losses 83,451 90,804

Gain/loss on sale of property, plant and equipment -358 2,267

Total adjustments 83,093 93,071

Change in receivables and prepayments -284,032 346,699

Change in inventories 6,550 6,756

Change in payables and advances received 622,301 143,771

Interest paid -4,300 -4,444

Corporate income tax paid -236,848 -157,899

Net cash used in operating activities 1,186,037 1,420,668

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2013 2012

cash flows from investing activities

Acquisition of property, plant and equipment and intangible assets -18,690 -33,888

Proceeds from sale of property, plant and equipment and intangible assets 358 10,000

Other payments from investing activities -2,249,038 -907,829

Loans granted -5,120 -40,200

Repayment of loans granted 4,633 72,834

Interest received 150,259 118,244

Other financial income 2,001,614 1,609

Net cash from investing activities -115,984 -779,230

cash flows from financing activities

Loans received 15,111 -28,992

Dividends paid -891,000 -594,000

Net cash used in financing activities -875,889 -622,992

net cash flow 194,164 18,446

cash and cash equivalents at beginning of period 342,607 328,035

change in cash equivalents 194,164 18,446

Effect of exchange rate fluctuations on cash held 869 -3,874

cash and cash equivalents at end of period 537,640 342,607

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rEcEIvablEs and prEpaymEnts(in euros)

31.12.13 31.12.12

Trade receivables 1,340,737 1,239,744

Prepaid and refundable taxes 0 1,529

Other short term receivables 4,793,961 2,562,865

Prepayments 405,366 214,987

Total receivables and prepayments 6,540,064 4,019,125

tradE rEcEIvablEs(in euros)

31.12.13 31.12.12

Trade receivables 1,323,382 1,225,207

Allowance for doubtful receivables -40,211 -37,283

Receivables from the parent and other group companies 57,566 51,820

Total trade receivables 1,340,737 1,239,744

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alloWancE For doubtFul rEcEIvablEs(in euros)

2013 2012

Allowance for doubtful receivables at beginning of period -37,283 -34,214

Recovery of items considered doubtful 6,275 1,621

Items considered doubtful in the reporting period -15,888 -7,657

Items considered irrecoverable in the reporting period 6,685 2,967

Allowance for doubtful receivables at end of period -40,211 -37,283

London

9 Hyde Park Corner

Royal Albert Hall

Trafalgar Square

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prEpaId taxEs and taxEs payablE(in euros)

31.12.13 31.12.12

payable prepayment payable

Value added tax 15,659 1,529 10,102

Personal income tax 76,161 0 72,205

Income tax on fringe benefits 2,909 0 5,104

Social tax 142,017 0 140,246

Mandatory funded pension contributions 7,623 0 6,632

Unemployment insurance contributions 11,410 0 13,041

Total 255,779 1,529 247,330

India

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othEr rEcEIvablEs(in euros)

31.12.13 31.12.12

Loan receivables 1,057 570

Interest receivable 6,252 26,751

Accrued items 83,993 104,107

Group`s cash-pool account 4,658,697 2,409,659

Other receivables 43,962 21,778

Total other receivables 4,793,961 2,562,865

Crete

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InvEstmEnts In subsIdIarIEsGENERAL INFORMATION

name of subsidiary domicile core activity shareholding shareholding 31.12.13 31.12.12

Estravel Vilnius UAB Lithuania Tourist services 100% 100%

InvEstmEnts In subsIdIarIEsDETAILED INFORMATION(in euros)

name of subsidiary 31.12.13 profit / loss under the 31.12.12 equity method

Estravel Vilnius UAB 173,607 12,920 160,687

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payablEs andadvancEs rEcEIvEd(in euros)

31.12.13 31.12.12

Trade payables 1,392,856 1,271,329

Payables to employees 265,073 283,828

Taxes payable 255,779 247,330

Other payables 288,442 337,265

Advances received 2,920,488 2,341,564

Total payables and advances received 5,122,638 4,481,316

New York

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