Q1 2023

AS TALLINK GRUPP RESULTS WEBINAR

PRESENTERS

PAAVO NÕGENE CHAIRMAN OF THE MANAGEMENT BOARD

HARRI HANSCHMIDT MEMBER OF THE MANAGEMENT BOARD

TALLINK GRUPP

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

OPERATIONS

Fleet of 15 vessels (6 chartered out)
Six ferry routes (1 suspended)
Operated 4 hotels (1 suspended)

KEY FACTS

Revenue of EUR 771.4 million in 2022
Served 5.5 million passengers in 2022
Transported 410 thousand cargo units in 2022
Operated EUR 1.7 billion asset base as at 31 December 2022
4,924 employees as at 31 March 2023
3.0 million loyalty program members
39,796 shareholders and FDR-holders of which 30,704 on Tallinn Stock Exchange and 9,092 on Helsinki Stock Exchange as at 31 March 2023

STRONG BRANDS

LISTED ON NASDAQ TALLINN (TAL1T) AND NASDAQ HELSINKI (TALLINK) 3

Q1 2023 DEVELOPMENTS AND KEY FACTS

OPERATING ENVIRONMENT

Consumer and business confidence in home markets improved compared to all time low in September 2022
Slowdown of increase in global fuel and energy prices as well as prices of food products and materials
Rising interest rates
Geopolitical situation and ongoing war in Ukraine

ACTIVITIES AND EVENTS

Extension of two short-term charter agreements:
- Cruise vessel Silja Europa agreement with Centraal Orgaan Opvang Asielzoekers (COA) in the Netherlands until June 2023
- Cruise vessel Galaxy until October 2023
New collective agreement with Estonian Seamen's Independent Union signed for the next 4 years MyStar arriving in Tallinn, December ²⁰²²

Q1 2023 OVERVIEW

Q1 Selected Key Figures (financials in million euros)	Q1 2022	Q1 2023	Change
Number of passengers	720,261	1,049,777	45.7%
Number of cargo units	101,938	86,732	-14.9%
Number of passenger cars	140,380	157,639	12.3%
Revenue	106.1	171.2	61.3%
Gross profit	-19.9	24.8	224.5%
EBITDA	-11.0	27.1	347.2%
EBIT	-34.6	1.9	105.4%
Net result for the period	-40.0	-5.4	86.4%
Capital expenditures	8.9	11.5	29.5%
As at:	31.12.22	31.03.23	Change
Total assets	1,691.6	1,672.1	-1.2%
Total equity	706.9	701.6	-0.8%
Interest-bearing liabilities	853.5	831.8	-2.5%
Net debt	738.6	735.4	-0.4%
2023 unaudited

• Revenue EUR 171.2m (EUR +65.1m or 61.3% vs LY)

Recovery in passenger numbers from COVID-19 related travel restrictions
EUR 27.5m increase in chartering revenues
Strong recovery in hotel, shops & shore restaurant segment

• Costs & support

Cost of sales increased by 16.2% or EUR 20.4m
Fuel cost decreased by 6.0% or by EUR 1.7m
EBITDA of EUR 27.1m (EUR +38.1m or 347.2% vs LY)
Net loss of EUR 5.4m (EUR +34.6m or 86.4% vs LY)
CAPEX of EUR 11.5m (EUR +2.6m or 4.0% vs LY)
- Maintenance and repair works amounted for majority of CAPEX (45 days in total)

Q1 2023 REVENUE DEVELOPMENT BY OPERATING SEGMENTS (EUR MILLION)

Restaurant and shop sales onboard and onshore increased mainly due to higher number of passengers

Increase in ticket sales attributable to increased demand and pricing

Demand is driving the increase in accommodation sales

Delivery of MyStar to the Tallinn-Helsinki route

High competition in cargo transportation market

Total of 6 vessels chartered out in Q1 2023

REVENUE STRUCTURE IN Q1 2023

TALLINK GRUPP 2023 unaudited

Q1 2023 REVENUE DEVELOPMENT BY GEOGRAPHICAL SEGMENTS (EUR MILLION)

Overall increase in demand and pricing

Estonia-Finland Segment reflects operations of three shuttle vessels

Estonia-Sweden

Results reflect operations of two cargo vessels (Paldiski-Kapellskär) and one cruise ferry on the Tallinn-Stockholm route

Finland-Sweden

Results reflect the operations of one cruise ferry on the Turku-Stockholm and two cruise ferries on the Helsinki-Stockholm route

Other

Increase was mainly driven by chartering of vessels and accommodation sales, to a lesser extent by various catering and retail activities

RESULTS QUARTERLY SEASONALITY BREAKDOWN

PASSENGERS (MILLIONS)

REVENUE (EUR MILLION)

CARGO (TH. UNITS)

EBITDA (EUR MILLION)

THE DYNAMICS OF HIGH SEASONALITY ON THE PROFIT LEVEL

NET PROFIT BY QUARTERS (EUR MILLION)

MOST OF THE PROFITS ARE TYPICALLY EARNED IN SUMMER, THE HIGH SEASON

CONSOLIDATED INCOME STATEMENT

(EUR million)	2021	2022	Q1 2022	(2) Q1 2023
Sales	477	771	106	171
Cost of sales (1)	-455	-658	-126	-146
Marketing & administrative cost (1)	-75	-87	-18	-23
Other operating items, net	16	11	4	0
EBITDA	58	136	-11	27
Margin (%)	12.2%	17.6%	-10.3%	15.8%
Net Result	-57	14	-40	-5

EPS	-0.081	0.019	-0.054	-0.007

Totals may not sum due to rounding

(1) Includes depreciation and amortization

GRUPP (2) 2023 unaudited

TALLINK

CONSOLIDATED CASH FLOW STATEMENT

(EUR million)	2021	2022 (1)	Q1 2022	(1) Q1 2023
Operating cash flow	59	144	-18	26
Capital expenditure	-20	-203	-9	-12
Asset disposal	1	3	0	0
Free cash flow	40	-56	-27	15
Debt financing (net effect)	45	69	7	-25
Interests & other financial items	-20	-25	-6	-8
Increase of share capital	35	0	0	0
Change in cash	100	-13	-27	-18

Totals may not sum due to rounding (1) 2023 unaudited

TALLINK GRUPP

CASH FLOW GENERATION SUPPORTED BY MARKET RECOVERY

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(EUR million)	31.12.2021	31.03.2022	30.12.2022	(2) 31.03.2023	1750
Total assets	1,586	1,560	1,692	1,672		Cash Intangibles	Other
Non-current assets	1,383	1,372	1,496	1,485	1400	Other	liabilities
Current assets	203	188	196	187		assets
- of which cash	128	101	115	96			Share
Total liabilities	893	908	985	970	1050		holders' equity
Interest bearing liabilities	780	789	854	831
Other liabilities	113	118	131	139
Shareholders' equity	693	653	707	702	700	Ships

Net debt/EBITDA	11.2x	12.8x	5.4x	4.2x	350		Loans
Net debt	652	688	739	735
Equity/assets ratio	44%	42%	42%	42%
(1) BVPS (in EUR)	0.93	0.88	0.95	0.94	0	Assets	Liabilities
Totals may not sum due to rounding							& Equity

(1) Shareholders' equity / number of shares outstanding

(2) 2023 unaudited

TALLINK GRUPP

TOTAL LIQUIDITY (CASH + UNUSED OVERDRAFT) OF EUR 231.5 MILLION

DEBT STRUCTURE

LONG TERM BANK LOANS

EUR 726 million as at 31 March 2023
7 loan agreements outstanding: syndicated loans, amortizing project and working capital loans
Maturities 0.6–12 years
EUR denominated, fixed and EURIBOR floating

OVERDRAFTS (as at 31 March 2023)

— EUR 135.0 million unused

2023 unaudited

TOTAL INTEREST BEARING LIABILITIES EUR 831.8 MILLION AS AT 31 MARCH 2023

EUR million

EVENTS AFTER THE REPORTING PERIOD & OUTLOOK

MyStar arrival, December 2022

Long-term bareboat charter agreement with Canadian entity Bridgemans Floatel LP/Bridgemans Services Group LP was signed for chartering the cruise vessel Isabelle from 1 July 2023. The multiyear charter agreement includes a purchase option.
Long-term bareboat charter agreement with Irish Continental Group plc was signed for chartering the shuttle vessel Star. The charter agreement that includes a purchase option was signed for 20 months with the possibility to extend the charter by 2+2 years.
Charter agreement for the cruise vessel Victoria I was extended until 15 July 2023.
On 14 April 2023, Tallink Hotel Riga was re-opened to customers after 2 ½ years of suspended operations.
On 20 April 2023, the flag state of the cruise vessel Galaxy was changed from Sweden to Latvia. As a result, the new name of the cruise vessel is Galaxy I.
On 24 April 2023, the Group started the collective redundancy process of up to 400 crew members in Estonia and up to 100 crew members in Latvia.

QUESTIONS & ANSWERS