Tallinna Sadam

Interim / Quarterly Report • Aug 10, 2021

Company AS TALLINNA SADAM

Type Company Release

Category Management interim statement or quaterly financial report

Disclosure time 10 Aug 2021 08:00:00 +0300

Attachments:

• Tallinna Sadam Q2 2021 ENG.pdf (http://oam.fi.ee/en/download?id=5688)
• Tallinna Sadam Q2 2021 webinar presentation ENG.pdf (http://oam.fi.ee/en/download?id=5689)
• Tallinna Sadam Q2 2021 webinar presentation ENG.pdf (http://oam.fi.ee/en/download?id=5690)
• Tallinna Sadam Q2 2021 EST.pdf (http://oam.fi.ee/en/download?id=5691)

Currency

Title

AS Tallinna Sadam financial results for 2021 Q2

In the second quarter, the revenue, adjusted EBITDA and profit of AS Tallinna Sadam (hereafter: "the Group") increased year on year. Revenue amounted to EUR 24 million in Q2, increasing by 8% year-on-year. The adjusted EBITDA of Q2 was EUR 11 million (+9%) and the profit was EUR 1.7 million instead of the EUR 0.8 million loss of the comparison period. In the first half of the year, revenue was EUR 49 million (-2%), adjusted EBITDA EUR 24 million (-9%) and profit EUR 9 million (-7%).

The Group's results were still strongly influenced by cross-border travel restrictions between countries put in place due to the COVID-19 pandemic, which had a particularly strong effect on the performance of the Passenger harbours segment. In the second quarter, we saw an improvement in the number of passengers, but the decline continued in 6 months, as there were practically no restrictions in the first quarter of last year. The number of port calls by ferries grew somewhat year on year but, like last year, there were no port calls by cruise ships in the first half of the year. Cargo throughput continued to grow vigorously through growth in dry bulk and ro-ro cargo.

Valdo Kalm, Chairman of the Management Board of Tallinna Sadam, is pleased that despite the difficult circumstances, the company paid a dividend according to the dividend policy. "We continued with investments and we are also happy with the growth of ro-ro and dry bulk volumes to a record level," said Kalm.

The management of Tallinna Sadam will present the financial results of the Group at a webinar on 10 August at 11:00 Estonian time (UTC+3), to attend, please click here (https://www.globenewswire.com/Tracker?data=dApgizER8UNKgXxLGHNnKJJaEHWD8x5n4Pmn DmHw63uJ8W44rSRbox9msarekHptr_eg8dbDvITDkBvVclG_OyYFQdKmIbD5Bz7X6F0pgdSsuUQQ7jY5

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Key figures (in million EUR):

	Q2	Q2	+/-	6M	6M	+/-
	2021	2020	%	2021	2020	%
Revenue	24.3	22.4	8.3	49.3	50.3	-2.1
Adjusted EBITDA	11.1	10.2	8.9	24.2	26.4	-8.5
Adjusted EBITDA margin		45.9% 45.6%		0.3 49.0% 52.5%		-3.5
Operating profit	5.2	4.6	13.5	12.4		15.1 -17.7
Income tax	-3.3	-4.9	-33.3	-3.3		-4.9 -33.3
Profit or loss for the period	1.7		-0.8 -299.4	8.5	9.2	-7.1
Investments	4.3	8.6	-50.3	7.9		17.4 -54.4
	30.06.2021		31.12.2020		+/-

Total assets	618.6	628.1	-1.5%
Interest bearing debt	208.2	211.6	-1.6%
Other liabilities	46.7	41.1	13.6%
Equity	363.8	375.4	-3.1%
Number of shares	263.0	263.0	0.0%

Significant events in Q2:

• * Record volumes of ro-ro and dry bulk cargo
• * The supervisory board extended the term of office of member of management board Margus Vihman
• * The state decided to change the financing of the construction of a new ferry and shall order the ferry through the Transport Administration, not via OÜ TS Laevad, as was the initial intention

• * Transport Administration will order 536 additional trips to be made by the ferry Regula on the Virtsu-Kuivastu route in summer period
• * Voting on the resolutions of the annual general meeting on 18 24 May 2021
• * On 10 July 2021, AS Tallinna Sadam paid the shareholders a dividend of EUR 0.077 per share, that is EUR 20.251 million in total, for the year 2020 (71% of the previous year's profit)
• * AS Tallinna Sadam achieved again and OÜ TS Laevad achieved for the first time the silver level in the Estonian Responsible Business Forum's Corporate Social Responsibility Index
• * Tallinna Sadam adopted stricter environmental measures for the vessels calling its harbours
• * Completion of an interim report "Heritage and Community" on a cooperation project with the Estonian Academy of Arts.

Revenue

Revenue for the first six months of 2021 was EUR 49.2 million, EUR 1.0 million (-2.1%) down from a year earlier. The decrease is attributable to the first quarter because there were no COVID-19-related restrictions or impacts at the beginning of last year. Revenue for the second quarter grew by EUR 1.9 million (8.3%).

Revenue decreased the sharpest in passenger fees (-53%) and vessel dues (-2%), revenues from other streams increased, mainly from the sale of electricity (28%) and cargo charges (7,3%).

The six-month revenue of the Passenger harbours segment decreased by EUR 1.9 million (-15%) year-on-year, mainly because passenger fees revenue dropped due to a decline in the number of passengers (primarily in the first quarter) in connection with COVID-19-related travel restrictions. In Q2 the revenue of the Passenger harbours segment increased by EUR 1.1 million year-on-year (+23%).

The six-month revenue of the Cargo harbours segment grew by EUR 0.6 million (+3%) due to the combined effect of various revenue items but mostly through growth in electricity sales (as an agent) and cargo charge revenue. The Q2 revenue of the Cargo harbours segment grew by EUR 0.4 million for the same reasons.

The revenue of the Ferry segment grew by EUR 0.2 million (+1,6%) through slight growth in ferry service revenue as well as lease revenue which in the comparative period was lowered by a decline in passenger traffic caused by travel restrictions. The Q2 revenue of the Ferry segment grew by EUR 0.4 million.

The revenue of the segment Other decreased somewhat, mostly because last year was a leap year and thus there was an extra charter day along with related revenue in February. There was no significant change in the revenue for Q2.

EBITDA

Adjusted EBITDA for the second quarter increased by EUR 0.9 million (+8.9%), mainly due to the Ferry segment (EUR 0.6 million). Adjusted EBITDA for first six months declined by EUR 2.2 million (-8.5%) year on year. In segment terms, adjusted EBITDA for Q2 decreased slightly in the Ferry segment and increased in all other segments, the most in the Passenger harbours segment. Adjusted EBITDA margin declined in 6 months from 52.5% to 49.0%. In Q2 the margin grew slightly

Profit Profit for the second quarter comparative period (a loss) by EUR 2.5 million, while profit before tax exceeded the figure for the comparative period tax for the first six months decreased by EUR 2.3 million (-16%) year on year to EUR 11.8 million.	(EUR 1.7 million)	exceeded the figure for the by around EUR 0.9 million. Profit before
Investments Investments of Q2 totalled EUR first six months of 2021, the Group invested EUR 7.9 million, significantly less than in the same period last year (EUR 17.4 million). Investments of the period were mostly related to the completion of and a promenade and the construction of a footbridge at Old City Harbour.	4.3 million (Q2	2020: EUR 8.6 million).In the the construction of a cruise terminal
Interim condensed consolidated statement of financial position:
In thousands of euros	31 March 2021	31 December 2020
----------------------------------------------------------------------- ASSETS
Current assets
Cash and cash equivalents	20,391	26,679
Trade and other receivables	10,396	10,183
Contract assets	335	0
Inventories	327	360
Non-current assets held for sale	98	114
----------------------------------------------------------------------- Total current assets	31,547	37,336
-----------------------------------------------------------------------
Non-current assets
Investments in associates	1,188	1,147
Other long-term receivables	454	0
Property, plant and equipment	583,205	587,506
Intangible assets	2,237	2,104

Finantsinspektsioon http://www.fi.ee

from 45.6% to 45.9%.

Total non-current assets	587,084	590,757
----------------------------------------------------------------------- Total assets -----------------------------------------------------------------------	618,631	628,093

LIABILITIES

Current liabilities	17,266
Loans and borrowings	64	17,266
Derivative financial instruments	585	102
Provisions	1,815	1,289
Government grants	943	1,919
Taxes payable	8,225	744
Trade and other payables	3,215	9,149
Total current liabilities -----------------------------------------------------------------------	35,563	30,469

Non-current liabilities

Loans and borrowings	190,931	194,314
Government grants	26,764	26,145
Other payables	748	841
Contract liabilities	870	892
Total non-current liabilities	219,313	222,192
----------------------------------------------------------------------- Total liabilities	254,876	252,661
-----------------------------------------------------------------------

EQUITY

Share capital at par value	263,000	263,000
----------------------------	---------	---------

Share premium	44,478	44,478
Statutory capital reserve	21,271	20,262
Hedge reserve	-29	-102
Retained earnings (prior periods)	26,534	19,276
Profit for the period	8,501	28,518
----------------------------------------------------------------------- Total equity	363,755	375,432
----------------------------------------------------------------------- Total liabilities and equity	618,631	628,093
-----------------------------------------------------------------------

Interim condensed consolidated statement of profit or loss:

In thousands of euros -------------------------------------------------------------------------------		Q2 2021 Q2 2020	2021	2020
Revenue	24,260	22,399	49,248	50,289
Other income	335	219	659	1,970
Operating expenses	-8,070		-7,210 -15,372 -15,537
Personnel expenses	-5,100	-4,807	-9,744	-9,484
Depreciation, amortisation and impairment	-6,076		-5,924 -12,098 -11,912
Other expenses	-130	-79	-254	-213
Operating profit	5,219	4,598	12,439	15,113
-------------------------------------------------------------------------------
Finance income and costs
Finance income	27	13	37	24
Finance costs	-365	-427	-741	-814
Finance costs - net	-338	-414	-704	-790
-------------------------------------------------------------------------------

Share of profit of an associate accounted for under the equity method	52	-102	41	-259
Profit before income tax	4,933	4,082	11,776	14,064
-------------------------------------------------------------------------------
Income tax	-3,275	-4,913	-3,275	-4,913
Profit/loss for the period	1,658	-831	8,501	9,151
------------------------------------------------------------------------------- Attributable to owners of the Parent	1,658	-831	8,501	9,151
-------------------------------------------------------------------------------
------------------------------------------------------------------------------- Basic and diluted earnings per share (in euros)	0.01	0.00	0.03	0.03
Basic and diluted earnings per share - continuing operations (in euros) -------------------------------------------------------------------------------	0.01	0.00	0.03	0.03
Interim condensed consolidated statement of cash flows:
In thousands of euros ---------------------------------------------------------------------------		6M 2021	6M 2020
Cash receipts from sale of goods and services		55 753	55 328
Cash receipts related to other income		34		21
Payments to suppliers		-19 123	-20 587
Payments to and on behalf of employees		-9 064	-7 956
Payments for other expenses		-271		-196
Cash from operating activities ---------------------------------------------------------------------------		27 329	26 610
Purchases of property, plant and equipment		-9 255	-16 162
Purchases of intangible assets		-426		-272
Proceeds from sale of property, plant and equipment		263	1 101

Government grants received	0	2 061
Interest received	1	15
Cash used in investing activities	-9 417	-13 257
--------------------------------------------------------------------------- Repayments of loans received
Dividends paid	-3 383	-3 383
Interest paid	-20 082	0
Cash from/used in financing activities ---------------------------------------------------------------------------	-734	-816
NET CASH FLOW	-1	-6
--------------------------------------------------------------------------- Cash and cash equivalents at beginning of the period	-24 200	-4 205
Change in cash and cash equivalents	-6 288	9 148
Cash and cash equivalents at end of the period ---------------------------------------------------------------------------	20 391	44 331

Tallinna Sadam is one of the largest cargo- and passenger port complexes in the Baltic Sea region, which serves annually 10 million passengers and 20 million tons of cargo in average. In addition to passenger and freight services, Tallinna Sadam group also operates in shipping business via its subsidiaries - OÜ TS Laevad provides ferry services between the Estonian mainland and the largest islands, and OÜ TS Shipping charters its multifunctional vessel Botnica for icebreaking and construction services in Estonia and offshore projects abroad. Tallinna Sadam group is also a shareholder of an associate AS Green Marine, which provides waste management services. The group's sales in 2020 totalled EUR 107.4 million, adjusted EBITDA EUR 58.4 million and profit EUR 28.5 million.

Additional information:

Marju Zirel Head of Investor Relations Tel. +372 5342 6591

m.zirel@ts.ee (mailto:m.zirel@ts.ee)