Tallink Grupp

Quarterly Report • Oct 27, 2022

Q3 2022

TALLINK GRUPP AS

TALLINK GRUPP

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

OPERATIONS

• Fleet of 14 vessels
• Seven ferry routes (1 suspended)
• Operating four hotels (1 closed)

KEY FACTS

• Revenue of EUR 477 million in 2021
• Served 3.0 million passengers in 2021
• Transported 369 thousand cargo units
• Operating EUR 1.6 billion asset base
• 4 916 employees (end of Q3 2022)
• 3.0 million loyalty program members
• 39 786 shareholders and FDR-holders of which 30 497 on Tallinn Stock Exchange and 9 289 on Helsinki Stock Exchange

STRONG BRANDS

STRATEGIC PLAN

CURRENTLY THE STRATEGIC FOCUS IS ON MANAGING COSTS AND CASH FLOWS TO ENSURE SUSTAINABILITY AND TO BRING TALLINK GRUPP THROUGH THE GLOBAL CRISIS

TALLINK'S VISION

GRUPP

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

LONG TERM OBJECTIVES TOWARD INCREASING THE COMPANY VALUE AND PROFITABILITY

• Strive for the highest level of customer satisfaction
• Increase volumes 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
• Ensure cost efficient operations
• TALLINK • Manage the optimal debt level that will allow sustainable dividends

CURRENT STRATEGIC CORNERSTONES AND COMPETITIVE ADVANTAGES

MOST MODERN	STRONG MARKET SHARE
FLEET	& BRAND AWARENESS
WIDE ROUTE NETWORK	HIGH SAFETY LEVEL & ENVIRONMENTAL STANDARDS 3

Q3 2022 OVERVIEW – RECOVERY FROM COVID-19 RESTRICTIONS

Q3 Selected Key Figures (financials in million euros)	2022	2021	Change
Number of passengers	1 893 603	1 144 092	65.5%
Number of cargo units	102 399	90 538	13.1%
Number of passenger cars	277 747	229 468	21.0%
Revenue Gross profit / loss EBITDA	255.6 66.0 67.7	170.5 30.3 35.1	49.9% 117.8% 92.7%
EBIT	43.9	11.5	283.6%
Net result for the period Capital expenditures	37.9 5.5	5.5 3.7	586.1% 49.2%
As at:	30.09.22	30.06.22	Change
Total assets	1 535.3	1 550.1	-1.0%
Total equity	690.2	652.3	5.8%
Interest-bearing liabilities	711.5	746.5	-4.7%
Net debt	608.7	655.9	-7.2%
2022 unaudited

• Revenue EUR 255.6m (EUR +85.1m or 49.9% vs LY)

• Recovery in passenger numbers from COVID-19 related travel restrictions, limited somewhat by impacts of war in Ukraine
• 115% increase in revenues from chartering
• Strong recovery in hotel, shops & shore restaurant segment

• Costs & support

• Cost of sales increased by 35% or EUR 49.4m
• Fuel cost increased by more than 100% or by nearly EUR 22m
• EBITDA of EUR 67.7m (EUR +32.6m vs LY)
• Net profit of EUR 37.9m (EUR +32.4m vs LY)

Q3 2022 SALES & RESULTS BY GEOGRAPHICAL SEGMENTS

Route	Key Figures (financials in EUR million)	2022	2021	Change	No COVID-19 restrictions in 2022; high restrictions & limited operations in 2021
Estonia Finland	Passengers (thousands)	1 083	649	66.9%
	Cargo units (thousands)	76	61	24.8%	The segment reflects operations of two shuttle vessels, a cruise ferry,
	Revenue	93.5	63.2	48.0%	and a cargo vessel
	Segment result	26.7	10.1	164.7%
Finland Sweden	Passengers (thousands)	658	379	73.6%
	Cargo units (thousands)	15	18	-15.9%	The results reflect the operations of Turku-Stockholm and Helsinki
	Revenue	93.8	60.9	53.9%	Stockholm routes
	Segment result	10.9	6.3	72.0%
Estonia	Passengers (thousands)	152	116	31.5%
Sweden	Cargo units (thousands)	12	12	-4.1%	The results reflect operations of one cargo vessel (Paldiski-Kapellskär)
	Revenue	23.5	18.6	26.5%	and one cruise ferry on Tallinn-Stockholm route
	Segment result	1.5	1.6	-4.7%
Other	Revenue	46.8	28.2	66.2%	Increase mainly driven by chartering of vessels and accommodation
	Segment result	17.5	4.0	334.2%	sales, to a lesser extent by various retail activities; includes expenses
	Intersegment revenue	-2.1	-0.4	-475.2%	previously reported under Latvia-Sweden segment

Q3 2022 SALES & RESULTS BY OPERATIONAL SEGMENTS

Revenue (EUR million)	2022	2021	Change
Restaurant and shop sales on-board and onshore	120.9	86.2	40.3%
Ticket sales	75.4	43.8	72.0%
Sales of cargo transportation	25.3	22.5	12.7%
Accommodation sales	4.1	1.7	142.3%
Income from charter of vessels	21.4	10.0	114.5%
Other sales	8.3	6.3	31.5%
Total revenue	255.6	170.5	49.9%

• Restaurant and shop sales on-board and onshore increased mainly due to higher number of passengers
• Increase in ticket sales attributable to increased demand and increased supply of overnight services
• High competition in cargo transportation market
• Three vessels chartered out in Q3 2022 (total of 6 vessels chartered)

REVENUE STRUCTURE IN Q3 2022

GRUPP

RESULTS QUARTERLY SEASONALITY BREAKDOWN

1.9 1.6 0.7 2.7 1.6 3.0 1.3 1.1 1.9 2.3 1.1 02468 10 2019 2020 2021 2022 9.8 3.7 3.0 (1)

PASSENGERS (MILLIONS)

REVENUE (EUR MILLION)

CARGO (TH. UNITS)

EBITDA (EUR MILLION)

TALLINK GRUPP

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

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

2022 Q3 DEVELOPMENTS AND KEY FACTS

OPERATING ENVIRONMENT

• Geopolitical situation and war in Ukraine since February
• High inflation of global fuel and energy prices as well as prices of food products and materials
• Raising interest rates
• Consumer and business confidence in home markets in decline

ACTIVITIES AND EVENTS

• Additional short-term charters of Victoria I, Silja Europa and Galaxy
• Extension of vessel charter agreement of Atlantic Vision for 18 months (+ optional 12 months)
• Successful sea trials of MyStar in September 2022
• Riga-Stockholm route not operated in 2022

Victoria I arriving in Leith locks

EVENTS AFTER THE REPORTING PERIOD & OUTLOOK

Victoria I in Scotland, July 2022

• Continuously exploring options for chartering out vessels
• The new dual fuel (LNG, MGO) shuttle vessel MyStar is expected to be delivered and start operations on the Tallinn-Helsinki route in November 2022
• Successful launch of new cruise concept on Turku Kapellskär route

CONSOLIDATED INCOME STATEMENT

(EUR million)	2020	2021	Q3 2021	(2) Q3 2022
Sales	443	477	170	256
Cost of sales (1)	(486)	(455)	(140)	(190)
Marketing & administrative cost (1)	(86)	(75)	(20)	(22)
Other operating items, net	37	16	1	(1)
EBITDA	8	58	35	68
Margin (%)	1.8%	12.2%	20.6%	26.5%
Net Result	(108)	(57)	6	38
EPS	(0.162)	(0.081)	0.008	0.051

(1) Includes depreciation and amortization

GRUPP (2) 2022 unaudited

TALLINK

Totals may not sum due to rounding

CONSOLIDATED CASH FLOW STATEMENT

(EUR million)	2020	2021	Q3 2021	(1) Q3 2022
Operating cash flow	(7)	59	24	60
Capital expenditure	(100)	(20)	(4)	(6)
Asset disposal	0	1	0	0
Free cash flow	(107)	40	21	55
Debt financing (net effect)	112	44	55	(36)
Interests & other financial items	(16)	(19)	(6)	(7)
Increase of share capital	0	35	35	0
Change in cash	(11)	100	105	12

Totals may not sum due to rounding (1) 2022 unaudited

TALLINK GRUPP

CASH FLOW GENERATION SUPPORTED BY MARKET RECOVERY

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(EUR million)	31.12.2020	30.09.2021	31.12.2021	(2) 30.09.2022
Total assets	1 516	1 617	1 586	1 535	1500	Cash	Other
Non-current assets	1 427	1 389	1 383	1 338		Intangibles	liabilities
Current assets	89	227	203	197	1000	Other Assets	Share holders' equity
- of which cash	28	143	128	103
Total liabilities	802	921	893	845
Interest bearing liabilities	705	803	780	711
Other liabilities	97	118	113	134
Shareholders' equity	714	696	693	690
					500	Ships
Net debt/EBITDA	84.2x	19.2x	11.2x	5.5x			Loans
Net debt	677	660	652	609
Equity/assets ratio	47%	43%	44%	45%
(1) BVPS (in EUR)	1.07	0.94	0.93	0.93	0
Totals may not sum due to rounding (1) Shareholders' equity / number of shares outstanding						Assets	Liabilities & Equity

(2) 2022 unaudited

TALLINK GRUPP

TOTAL LIQUIDITY (CASH + UNUSED OVERDRAFT) OF EUR 226.0 MILLION

DEBT STRUCTURE

LONG TERM BANK LOANS

• EUR 593 million as at 30.09.2022
• 6 loan agreements outstanding: syndicated loans, amortizing project and working capital loans
• Maturities 0.25 7.3 years
• EUR denominated, fixed and EURIBOR floating

OVERDRAFTS (as at 30.09.2022)

• EUR 11.8 million used
• EUR 123.2 million unused

SIGNED, NOT YET DRAWN

— EUR 198 million from KfW IPEX-Bank GmbH (MyStar)

Total EUR 593 million long-term bank loans and used overdrafts as at 30.09.2022

2022 unaudited

PAYMENT OF PREVIOUSLY POSTPONED PRINCIPAL PAYMENTS UNDER EXISTING LOAN AGREEMENTS RESTARTED IN Q2 2022

EUR million

CORPORATE GOVERNANCE

Paavo Nõgene – Chairman of the Management Board

Born in 1980, with the company since 2018 CEO since May, 2018

Born in 1964, with the company since 2005.

Member of Management Board since February, 2019

Piret Mürk-Dubout

Born in 1970, with the company and Member of Management Board since April, 2019

Kadri Land Harri Hanschmidt Born in 1982, with the company since 2009.

Member of Management Board since February, 2019

Margus Schults

Born in 1966, with the company since 2008 Member of Management Board since April, 2021

Enn Pant - Chairman of the Supervisory Board

SUPERVISORY BOARD

Born in 1965, with the company since 1996 Chairman of the Supervisory Board since 2015 CEO of AS Tallink Grupp in 1996-2015

Toivo Ninnas Kalev Järvelill

Born in 1940, with the Supervisory Board since 1997

Eve Pant

Born in 1968, with the Supervisory Board since 1997

Raino Paron

with the Supervisory Board since 2019

Born in 1965,

with the Supervisory Board since 2007

Colin Douglas Clark

Born in 1974, with the Supervisory Board since 2013

MANAGEMENT BOARD

15

SHAREHOLDERS AND SHARE PERFORMANCE

SHAREHOLDERS OF AS TALLINK GRUPP TEN LARGEST SHAREHOLDERS AS OF 30.09.2022

Infortar AS	40%
Baltic Cruises Holding, L.P.	11%
ING Luxembourg S.A. AIF Account	6%
Baltic Cruises Investment L.P.	6%
Citigroup Venture Capital International G.P	4%
Nordea Bank Abp / Clients FDR	4%
Mersok OÜ	2%
Luksusjaht AS	1%
Clearstream Banking AG	1%
LHV Pensionifond L	1%

Share Price in EUR FDR Price in EUR

TALLINK GRUPP

39,786 SHAREHOLDERS AND FDR-HOLDERS AT THE END OF THE QUARTER

THANK YOU

AS Tallink Grupp Sadama 5, 10111, Tallinn, Estonia www.tallink.com/investors investor@tallink.ee