Tallink Grupp

Investor Presentation • Feb 22, 2024

Q4 & 12 months 2023 AS Tallink Grupp

February 2024

Tallink Grupp

The leading European provider of leisure and business travel and sea transportation services in the Baltic Sea region.

STRONG BRANDS

KEY FACTS ABOUT TALLINK GRUPP as at 31 DEC 2023

15 vessels 13 passenger vessels 2 cargo vessels

5 vessels in charter Both long-term and short-term

4 hotels 3 in Tallinn 1 in Riga

2 stand-alone restaurants in Tallinn

4900+ employees Estonia, Finland, Germany, Sweden, Latvia and Lithuania

21 Burger King restaurants Estonia, Latvia, Lithuania

5 regular routes on the Baltic Sea

Club One members

3.1 million

Shopping on-board, on-shore, on-line

2

Strategic plan

TALLINK'S VISION

To be the market pioneer in Europe by offering excellence in leisure and business travel and sea transportation services

LONG TERM OBJECTIVES TOWARDS INCREASING THE COMPANY VALUE AND PROFITABILITY

• Strive for the highest level of customer satisfaction
• Improve profitability and strengthen the leading position on our home markets
• Develop a wide range of quality services directed at different customers and pursue new growth opportunities
• Based on the demand on the core routes, manage optimal capacity by operating or chartering out vessels
• Ensure cost efficient operations
• Manage the optimal debt level that will allow sustainable dividends

CURRENT STRATEGIC CORNERSTONES AND COMPETETIVE ADVANTAGES

Tallink Grupp in 2023

• Revenue of EUR 835.5 million
• EBITDA of EUR 214.5 million
• Net profit of EUR 78.9 million
• Served 5.7 million passengers
• Transported 324 thousand cargo units
• Operated EUR 1.6 billion asset base
• 4,912 employees at the end of FY 2023
• 3.1 million loyalty program members
• 38,894 shareholders and FDRholders of which 30,563 on Tallinn Stock Exchange and 8,331 on Helsinki Stock Exchange

Key takeaways

WRAP-UP OF THE YEAR – Q4 2023

• EBITDA of EUR 36.8 million
• Net debt to EBITDA ratio 2.8
• Impact of low fuel market prices set off partly by high logistics cost component in fuel price, interest rates and inflation
• Chartering of vessels supporting stable cash flows. As at 31 December 2023 5 vessels on charter (3 long-term & 2 short-term)
• Loan refinancing agreement in the amount of EUR 298 million signed in December 2023 to repay outstanding balances of 5 lending facilities
• Extension of the charter agreement of the cruise ferry Silja Europa until the end of 2024
• The cruise ferry Victoria I added to the Tallinn-Helsinki route from October 2023

EVENTS AFTER REPORTING DATE

• Sale of the cruise vessel Isabelle

Routes & passengers

Fleet by routes and chartered vessels

el tupe	Cruise ferry
/renovated	2002
r information	In lay-up

Q4 2023 revenues

• Revenue EUR 193.7m (EUR -9.9m or -4.9% vs LY)
• 39.0% decrease in chartering revenues due to less vessels on charter
• Strong result in accommodation and ticket sales segment
• Costs
• Lower global prices supported a 17.3% drop in fuel cost to EUR 24.7m (EUR -5.2m vs LY)
• Net finance costs increased by EUR 3.1m year-on-year mainly due to increased Euribor and transaction costs related to refinancing
• EBITDA of EUR 36.8m (EUR -13.6m or -26.9% vs LY)
• Net profit of EUR 2.2m (EUR -14.6m or -87.1% vs LY)
• CAPEX of EUR 5.9m (EUR -173.8m or-96.7% vs LY)
• Majority of investments were related to maintenance and repair of vessels

Selected Key Figures (financials in million euros)	Q4 2022	Q4 2023(1)	Change
Number of passengers	1,296,047	1,338,921	3.3%
Number of cargo units	96,052	76,198	-20.7%
Number of passenger cars	175,539	172,972	-1.5%
Revenue	203.7	193.7	-4.9%
Gross profit	41.8	34.9	-16.5%
EBITDA	50.4	36.8	-26.9%
EBIT	23.5	11.4	-51.6%
Net result for the period	16.7	2.2	-87.1%
Capital expenditures	179.7	5.9	-96.7%
As at:	31.09.23	31.12.23(1)	Change
Total assets	1,597.4	1,555.2	-2.6%
Total equity	783.7	785.8	0.3%
Interest-bearing liabilities	684.8	649.3	-5.2%
Net debt	620.4	607.3	-2.1%

Notes: (1) 2023 unaudited

Sales & results by geographical segments Q4 2023

ESTONIA-FINLAND

The segment reflects operations of two shuttle vessels – MyStar and Megastar and the cruise ferry Victoria I since October 2023

ESTONIA-SWEDEN

The results reflect operations of two cargo vessel (Paldiski-Kapellskär) and one cruise ferry on the Tallinn-Stockholm route

FINLAND-SWEDEN

The results reflect the operations of one cruise ferry on the Turku-Kapellskär, and two on the Helsinki-Stockholm route

OTHER

The segment reflects the chartering of vessels, accommodation sales and retail activities

SALES (in million euros)

RESULTS (in million euros)

Notes: (1) 2023 unaudited

Sales by operational segments Q4 2023

• As at the end of Q4 2023 total of 5 vessels on charter compared to 6 vessels in Q4 2022
• High competition in cargo transportation market
• Revenue from operations related to travelling, shopping, restaurants and accommodation services up by EUR 3.9 million compared to Q4 2022

REVENUE STRUCTURE Q4 2023(1)

FY2023 revenues

• Revenue EUR 835.3m (EUR +63.9m or 8.3% vs LY)
• 53.7% increase in chartering revenues
• Strong result in accommodation and ticket sales segment
• Costs
• Lower global prices supported a 32.6% drop in fuel cost to EUR 97.2m (EUR -47.0m vs LY)
• Net finance costs increased by EUR 10.9m year-on-year mainly due to increased Euribor
• EBITDA of EUR 214.5m (EUR +78.7m or 58.0% vs LY)
• Net profit of EUR 78.9m (EUR +64.9m or 466.0% vs LY)
• CAPEX of EUR 28.2m (EUR -175.1m vs LY)
• Majority of investments were related to maintenance and repair of vessels

Selected Key Figures (financials in million euros)	2022	2023(1)	Change
Number of passengers	5,462,085	5,705,600	4.5%
Number of cargo units	409,769	323,990	-20.9%
Number of passenger cars	819,229	840,881	2.6%
Revenue	771.4	835.3	8.3%
Gross profit	113.5	203.8	79.6%
EBITDA	135.8	214.5	58.0%
EBIT	37.7	113.3	200.8%
Net result for the period	13.9	78.9	466.0%
Capital expenditures	203.3	28.2	-86.1%
As at:	31.12.22	31.12.23(1)	Change
Total assets	1,691.6	1,555.2	-8.1%
Total equity	706.9	785.8	11.2%
Interest-bearing liabilities	853.5	649.3	-23.9%
Net debt	738.6	607.3	-17.8%

Notes: (1) 2023 unaudited

Dynamics of seasonality

Passenger (millions) Cargo (th. units)

Revenue (in million euros) EBITDA (in million euros)

Notes: (1) 2023 unaudited

Dynamics of seasonality

Quarterly net result (in million euros)

Notes: (1) 2023 unaudited

Most of profits are typically earned in summer, the high season

Sales & results by geographical segments FY2023

ESTONIA-FINLAND

The segment reflects operations of two shuttle vessels – MyStar and Megastar and the cruise ferry Victoria I since October 2023. The cruise ferry Silja Europa has been chartered out since August 2022 and shuttle vessel Oscar Wilde since 5 May 2023.

ESTONIA-SWEDEN

The results reflect operations of two cargo vessel (Paldiski-Kapellskär) and one cruise ferry on the Tallinn-Stockholm route.

FINLAND-SWEDEN

The results reflect the operations of one cruise ferry on the Turku-Stockholm/Kapellskär, and two on the Helsinki-Stockholm route. The cruise ferry Galaxy I has been chartered out since September 2022.

OTHER

The segment reflects the chartering of vessels, accommodation sales and retail activities.

SALES (in million euros)

RESULTS (in million euros)

Notes: (1) 2023 unaudited

Sales by operational segments FY2023

• Chartering of vessels supporting stability of revenues
• High competition in cargo transportation market
• Revenue from operations related to travelling, shopping, restaurants and accommodation services up by EUR 43 million compared to FY2022

Consolidated income statement

In million euros

	2022	(2) 2023	Q4 2022	(2) Q4 2023
Sales	771	835	204	194
Cost of sales (1)	-658	-631	-162	-159
Marketing & administrative cost (1)	-87	-95	-24	-26
Other operating items, net	11	4	6	3
EBITDA	136	215	50	37
Margin (%)	17.6%	23.8%	24.8%	19.0%
Net Result	14	79	17	2
EPS	0.019	0.106	0.022	0.003

Notes: Totals may not sum due to rounding;

(1) Includes depreciation and amortization;

(2) unaudited

Full year cost breakdown

(EUR millions)	2022	2023(5)	Change
Cost of goods	160.6	170.6	6.2%
Staff costs	120.0	131.7	9.8%
Marketing & Administration (1)(2)	74.3	83.0	11.7%
Port & Stevedoring	77.2	69.9	-9.4%
Fuel cost	144.1	97.2	-32.6%
Ship operating expenses	51.6	53.6	3.8%
Other costs (3)	18.7	19.1	2.3%
Total costs from operations	646.4	625.1	-3.3%
Depreciation & amortisation	98.1	101.2	3.1%
Net finance cost (4)	24.7	35.6	43.9%
Total costs	769.3	761.9	-1.0%

Notes: (1) Depreciation and amortisation excluded

(2) Includes marketing and administration staff costs

(3) Includes package costs

(4) Includes share of profit/loss of equity-accounted investees (5) unaudited

Consolidated cash flow statement

In million euros

	2022	2023(2)	Q4 2022	(2) Q4 2023
Operating cash flow	144	203	57	34
Capital expenditure	-203	-28	-180	-6
Asset disposal	3	1	0	0
Free cash flow	-56	177	-122	29
Debt financing (net effect)	69	-213	141	-40
Interests & other financial items	-25	-37	-7	-11
Change in cash	-13	-73	12	-23

Notes: Totals may not sum due to rounding; (1) Includes depreciation and amortization; (2) unaudited

Consolidated statement of financial position

In million euros

Notes: Totals may not sum due to rounding

(1) Shareholders' equity / number of shares outstanding

(2) 2023 unaudited

Total liquidity (cash + unused overdraft) of EUR 116.9 million

& Equity

Loan portfolio structure

LONG-TERM BANK LOANS

• EUR 555 million as at 31 December 2023
• 3 loan agreements outstanding: syndicated loan and two ship building loans
• Maturing 5 11 years
• EUR denominated, fixed and EURIBOR floating

OVERDRAFT

• As at 31 December 2023 unused overdraft of EUR 75 million

Notes: (1) 2023 unaudited

Total interest-bearing liabilities of EUR 649.3 million

Concorded with the Supervisory Board of the Group, the Management Board has decided to prepare a proposal to the General Meeting of Shareholders to pay a dividend of 6 cents per share in 2024 for the financial year of 2023

ESG focus areas is 2024

• 2023 and 2024 focus on achieving compliance with CSRD requirements and new reporting standards
• First CSRD compliant ESG report published in 2025 with limited audit assurance
• Current activities: Double Materiality finalisation, ESG target setting and policy and data review – Q1 & Q2 2024
• Key material impact areas include tackling climate change and emissions, customer safety and security, own workforce topics, supply chain management, data protection.
• Investment focus on emissions reductions

TOTAL CO² EMISSIONS

38,894 shareholders and FDR-holders at the end of 2023

Shareholders and share performance

Infortar AS	42%
Baltic Cruises Holding, L.P.	11%
Baltic Cruises Investment L.P.	6%
ING Luxembourg S.A. AIF Account	5%
Citigroup Venture Capital International G.P	4%
Nordea Bank Abp / Clients FDR	3%
Mersok OÜ	2%
Clearstream Banking AG	1%
Luksusjaht AS	1%
Enn Pant	1%
Unicredit Bank Austria AG	1%

Management board

Paavo Nõgene

Born in 1980 CEO since May 2018

Kadri Land

Born in 1964 Member of Management Board since February 2019

Harri Hanschmidt

Born in 1982 Member of Management Board since February 2019

Piret Mürk-Dubout

Born in 1970 Member of Management Board since April 2019

Margus Schults

Born in 1966 Member of Management Board since April 2021

Supervisory board

Enn Pant

Born in 1965 Chairman of Supervisory Board since 2015 CEO of AS Tallink Grupp in 1996-2015

Ain Hanschmidt

Born in 1961 with the Supervisory Board since 2005

Toivo Ninnas

Born in 1940 with the Supervisory Board since 1997

Eve Pant

Born in 1968 with the Supervisory Board since 1997

Kalev Järvelill

Born in 1965 with the Supervisory Board since 2007

Raino Paron

Born in 1965 with the Supervisory Board since 2019

Colin Douglas Clark

Born in 1974 with the Supervisory Board since 2013