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Tallink Grupp
Investor Presentation • Oct 26, 2023
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Q3 2023 Results Webinar AS Tallink Grupp
October 2023
PRESENTERS
PAAVO NÕGENE CHAIRMAN OF THE MANAGEMENT BOARD
MARGUS SCHULTS MEMBER OF THE MANAGEMENT BOARD
2
The leading European provider of leisure and business travel and sea transportation services in the Baltic Sea region.
STRONG BRANDS
TALLINK GRUPP OPERATIONS AT 30 SEPT 2023
- Fleet of 15 vessels (5 chartered out)
- Six ferry routes (1 suspended)
- Four hotels (3 in Tallinn and 1 in Riga)
KEY FACTS 9 MONTHS 2023
- Revenue of EUR 641.6 million
- Served 4.4 million passengers
- Transported 248 thousand cargo units
- Operated EUR 1.6 billion asset base
- 4,619 employees at the end of Q3 2023
- 3.1 million loyalty program members
- 39,254 shareholders and FDR-holders of which 30,671 on Tallinn Stock Exchange and 8,583 on Helsinki Stock Exchange
Listed on Nasdaq Tallinn (TAL1T) and Nasdaq Helsinki (TALLINK)
KEY TAKEAWAYS Q3 – THE HIGH SEASON
- EBITDA of EUR 82.1 million
- Net debt to EBITDA ratio 2.7
- 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:
- 5 vessels on charter as at 30 Sept 2023 (3 long-term & 2 short-term):
- 1 charter agreement extended (Galaxy I)
- 2 charter agreements ended in Q3 (Romantika and Victoria I)
- 5 vessels on charter as at 30 Sept 2023 (3 long-term & 2 short-term):
- All Group hotels certified with the international Green Key ecolabel
EVENTS AFTER REPORTING DATE
• Extension of the charter agreement of the cruise ferry Silja Europa
FLEET BY ROUTES AND CHARTERED VESSELS AS AT 30 SEPT 2023
| CHARTERED | |
|---|---|
| Long-term | Short-term |
| Atlantic Vision Isabelle Oscar Wilde (ex. Star) |
Galaxy I Silja Europa |
Silja Europa
Q3 2023 OVERVIEW
| Selected Key Figures (financials in million euros) |
Q3 2022 | Q3 2023(1) | Change |
|---|---|---|---|
| Number of passengers | 1,893,603 | 1,775,821 | -6.2% |
| Number of cargo units | 102,399 | 75,701 | -26.1% |
| Number of passenger cars | 277,747 | 273,514 | -1,5% |
| Revenue | 255.6 | 240.7 | -5.8% |
| Gross profit | 66.0 | 77.7 | 17.6% |
| EBITDA | 67.7 | 82.1 | 21.3% |
| EBIT | 43.9 | 56.8 | 29.3% |
| Net result for the period | 37.9 | 48.7 | 28.5% |
| Capital expenditures | 5.5 | 6.1 | 11.2% |
| As at: | 30.06.23 | 30.09.23 | Change |
| Total assets | 1,613.6 | 1,597.4 | 4.0% |
| Total equity | 735.2 | 783.7 | 13.5% |
| Interest-bearing liabilities | 722.5 | 684.8 | -3.7% |
| Net debt | 664.9 | 620.4 | 1.9% |
• Revenue EUR 240.7m (EUR -14.9m or 5.8% vs LY)
- Less vessels in operations and lower number of trips
- Early termination of the charter agreement of Romantika in September 2023
- Costs
- Cost of sales decreased by 14.0% or EUR 26.6m vs LY — of which fuel cost decreased by 45.2% or EUR 19.6m
- EBITDA of EUR 82.1m (EUR +14.4m or 21.3% vs LY)
- Net profit of EUR 48.7m (EUR +10.8m or 28.5% vs LY)
- CAPEX of EUR 6.1m (EUR +0.6m or 11.2% vs LY)
- Main investments related to:
- planned docking of the cruise vessel Baltic Queen in September
- preparing the cruise vessel Victoria I for launching Tallinn-Helsinki cruise service
- Main investments related to:
Q3 2023 SALES & RESULTS BY GEOGRAPHICAL SEGMENTS
SALES (in million euros)
Estonia-Finland
The segment reflects operations of two shuttle vessels – MyStar and Megastar. The cruise ferry Silja Europa has been chartered out since August 2022.
Estonia-Sweden
The results reflect operations of two cargo vessel (Paldiski-Kapellskär) and one cruise ferry on the Tallinn-Stockholm route. The cruise ferry Baltic Queen did not operate for 12 days due to planned dry docking in September 2023.
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.
Q3 2023 SALES BY OPERATIONAL SEGMENTS IN MILLION EUROS
- Restaurant & shop sales on-board and onshore impacted by chartering of Galaxy I (August 2022) and Silja Europa (September 2022)
- High competition in cargo transportation market
- As at the end of Q3 total of 5 vessels on charter
- During the quarter charter agreement of 1 vessel ended and 1 was terminated
Notes: (1) 2023 unaudited
DYNAMICS OF SEASONALITY
REVENUE (in million euros )
100 85 102 87 87 92 109 85 92 91 82 101 2020 2021 2022 2023 369 410 CARGO (th. units )
EBITDA (in million euros )
Q1 Q2 Q3 Q4
DYNAMICS OF SEASONALITY
QUARTERLY NET RESULT (IN MILLION EUROS)
MOST OF PROFITS ARE TYPICALLY EARNED IN SUMMER, THE HIGH SEASON
CONSOLIDATED INCOME STATEMENT IN MILLION EUROS
| 2021 | 2022 Q3 2022 |
(2) Q3 2023 |
|||
|---|---|---|---|---|---|
| Sales | 477 | 771 | 256 | 241 | |
| Cost of sales (1) | -455 | -658 | -190 | -163 | |
| Marketing & administrative cost (1) | -75 | -87 | -22 | -22 | |
| Other operating items, net | 16 | 11 | -1 | -1 | |
| EBITDA | 58 | 136 | 68 | 82 | |
| Margin (%) | 12.2% | 17.6% | 26.5% | 34.1% | |
| Net Result | -57 | 14 | 38 | 49 | |
| EPS | -0.081 | 0.019 | 0.051 | 0.065 |
Notes: Totals may not sum due to rounding; (1) Includes depreciation and amortization; (2) unaudited
CONSOLIDATED CASH FLOW STATEMENT IN MILLION EUROS
| 2021 | 2022 | Q3 2022 |
(1) Q3 2023 |
|
|---|---|---|---|---|
| Operating cash flow | 59 | 144 | 60 | 60 |
| Capital expenditure | -20 | -203 | -6 | -6 |
| Asset disposal | 1 | 3 | 0 | 0 |
| Free cash flow | 40 | -56 | 55 | 54 |
| Debt financing (net effect) | 45 | 69 | -36 | -39 |
| Interests & other financial items | -20 | -25 | -7 | -8 |
| Increase of share capital | 35 | 0 | 0 | 0 |
| Change in cash | 100 | -13 | 12 | 7 |
Notes: Totals may not sum due to rounding; (1) Includes depreciation and amortization; (2) unaudited
CASH FLOW GENERATION SUPPORTED BY MARKET RECOVERY
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
IN MILLION EUROS
| 31.12.2021 | 30.09.2022 | 31.12.2022 | 30.09.2023(2) | 1750 | |||
|---|---|---|---|---|---|---|---|
| Total assets | 1,586 | 1,535 | 1,692 | 1,597 | Cash | Other | |
| Non-current assets | 1,383 | 1,338 | 1,496 | 1,447 | 1400 | Intangibles Other |
liabilities |
| Current assets | 203 | 197 | 196 | 150 | assets | ||
| - of which cash |
128 | 103 | 115 | 64 | Share | ||
| Total liabilities | 893 | 845 | 985 | 814 | 1050 | holders' equity |
|
| Interest bearing liabilities | 780 | 711 | 854 | 685 | |||
| Other liabilities | 113 | 134 | 131 | 129 | |||
| Shareholders' equity | 693 | 690 | 707 | 784 | 700 | Ships | |
| Net debt/EBITDA | 11.2x | 5.5x | 5.4x | 2.7x | 350 | Loans | |
| Net debt | 652 | 609 | 739 | 620 | |||
| Equity/assets ratio | 44% | 45% | 42% | 49% | |||
| (1) BVPS (in EUR) |
0.93 | 0.93 | 0.95 | 1.05 | 0 | ||
| Assets | Liabilities |
TOTAL LIQUIDITY (CASH + UNUSED OVERDRAFT) OF EUR 193 MILLION
& Equity
LOAN PORTFOLIO STRUCTURE
LONG-TERM BANK LOANS
- EUR 591 million as at 30 September 2023
- 7 loan agreements outstanding: syndicated loans, amortizing project and working capital loans
- Maturities 13 months 11 years
- EUR denominated, fixed and EURIBOR floating
OVERDRAFT
• As at 30 September 2023 unused overdraft of EUR 135 million
TOTAL INTEREST-BEARING LIABILITIES EUR 684.8 MILLION AS AT 30 SEPTEMBER 2023
Q & A
PAAVO NÕGENE CHAIRMAN OF THE MANAGEMENT BOARD
THANK YOU
AS Tallink Grupp Sadama 5, 10111, Tallinn, Estonia www.tallink.com/investors [email protected]
