Tallink Grupp

Earnings Release • Jun 13, 2017

• 1. Proposal on distribution of profits
• 1. Extension of authorities of the members of the supervisory board
• 1. Appointment of an auditor for the financial year 2017 and the determination of the procedure of remuneration of an auditor

Tallink Grupp today

16 ships

7 291 employees

• 552 in hotels
• 5 114 on the sea 1 625 onshore organisation

48% passenger market share of the Northern Baltic Sea

Operators by Gross Tons

Our	position in the Operators by Gross Tons		global ferry market
Rank	Company	Gross tons
1	Stena Line	909 412
2	Grimaldi Lines	477 667
3	Tallink Grupp	466 960
4	DFDS Seaways	412 722
5	P&O Ferries	409 659
	Operators by revenue (2016)
Rank	Company	Revenue (mEuro)
1	DFDS Group	1 852
2	Stena Line	1 330
3	Tallink Grupp	938
4	Viking Line	520

Operators by revenue (2016)

	Operators by revenue (2016)
	DFDS Group	1 852
	Stena Line	1 330
	Tallink Grupp	938
1 2 3 4	Viking Line	520

Operators by beds

	Operators by beds
Rank	Company	Beds
1	Tallink Grupp	18 963
2	Stena Line	16 847
3	Viking Line	14 026
4	Grandi Navi Veloci	13 328

Business environment

Disposable income

Demographics

Ageing population more people have free time

Growth in all countries More spend devoted for free time

Modest inflation and continuous growth in total retail spending Retail sales

External factors

New ways to spend free time New business concepts New restaurants shops etc. Geopolitical situation

Pricing Investments

Free movement of travelers The number of passengers from Russia remains low The number of Asian passenges continues to grow

Economy

Economies recovering in the market area but unfavorable tax changes ahead

The main goals of the strategy that is directed toward increasing Tallink's value and profitability:

• Increase the volumes and strengthen the market position in the region
• Strive for the highest level of customer satisfaction
• Develop a wide range of quality services for different customers and to pursue new growth opportunities
• Cost efficient operations
• Optimal debt level that allows sustainable dividends

Tallink Grupp has made total of EUR 121 million payments from equity to shareholders in period 2013-2016.

Dividend policy

— The Management Board targets to distribute at least 50% of net profit, calculated over the long term, as dividends or capital repayment, taking however the Group's financial position into account. The management estimates that for the coming years the distribution per share will be at least EUR 0.02 or higher.

Tallink Grupp 2016

• Higher passenger number and revenue
• Lower chartering revenues compared to last year
• Market share growth on routes

• Cruise ferry Silja Europa's return to Tallinn-Helsinki route — A new logistics centre launched in Maardu, Harjumaa — New passenger terminals in Stockholm and Helsinki — Ships re-rerouted in December 2016 — Group-wide ship renovation programme continued — Construction of the new LNG fast ferry Megastar

• finalized — Total of EUR 54 million distributions to shareholders

Results of the 2016 financial year

Results of the 2016 financial year

Income statement	2015	2016	Revenue	(EUR million)
Revenue (EUR million)	945	938
				-0.7%
Gross profit (EUR million)	223	193
EBITDA(1) (EUR million)	181	149
Net profit/-loss (EUR million)	59	44
EPS	0.09	0.07
(1) EBITDA – earnings before net financial items, share of profit	of equity accounted	investees,
taxes, depreciaton and amortization.
11

+ -

• Revenue growth from route operations and Silja Europa returning to operations ~EUR 29 M — Less fuel cost ~EUR 20 M — Less financial cost ~EUR 7 M

• Less revenue from chartering of ships ~EUR 37 M — Additional operating costs from

• more ships in operations and ships' renovations ~EUR 32 M — Superstar charter cost

Cash flow statement (EUR million)	2015	2016
Cash flows from operating activities	192	147
Investments	-44	-68
Asset disposal	115	0
New loans	0	280
Redemption of loans	-196	-277
Dividends	-13	-54
Total net cash flow	17	-3
Cash at the end of period	82	79

Results of the 2016 financial year

Financial position	31.12.2015	31.12.2016	change	1500	Cash	Other Liabilities
Assets (EUR million)	1 539	1 539	0.0%		Other Assets
Intrest bearing liabilities (EUR million)	549	559	1.7%	1000		Shareholders Equity
Shareholder's equity (EUR million)	824	814	-1.3%	500	Ships
Shareholder's equity per share (EUR)	1.23	1.21	-1.3%			Loans
Equity ratio	54%	53%		0	Assets	Liabilities & Equity
14

The net debt has decreased by over EUR 700 million from the peak in 2009 to EUR 480 million.

• 1. Proposal on distribution of profits
• 1. Extension of authorities of the members of the supervisory board
• 1. Appointment of an auditor for the financial year 2017 and the determination of the procedure of remuneration of an auditor
• 1. Proposal on distribution of profits
• 1. Extension of authorities of the members of the supervisory board
• 1. Appointment of an auditor for the financial year 2017 and the determination of the procedure of remuneration of an auditor

New LNG fast ferry Megastar

Specifications

• New LNG powered fast ferry for the Tallinn Helsinki Shuttle service, start of operations on 29 January 2017.

Technical innovations deliver improved safety, high energy efficiency and environmental savings

• —Safe Return to Port (SRtP) compliant ship
• —Dual fuel ship uses environmentally friendly LNG as main fuel
• —LNG produces 25% less CO2, 85% less
• enable very low hull resistance and high propulsion efficiency to further minimise
• management and recycling

Megastar will comply with the current and known future emission regulations for the Emission Control Areas, including the Baltic Sea.

• • Q-shopping self-service solution
• New garage concept with improved shop-to-car access for shop customers • a new Sitting Lounge —A playroom for the kids
• —Seven restaurants, cafes and bars
• Leveraging own brands
• Introducing international premium brands
• —Four different travel classes
• standard Star Class
• upgraded Comfort Class
• exclusive Business Lounge

On Megastar there is a floating department store where modern solutions make shopping a pleasure.

		Q1 2016	Q1 2017	Change
Number of passengers	(Thousand)	1 953	1 940	-0.7%
Cargo Units	(Thousand)	77	84	8.4%
Net Sales	(EUR million)	193	192	-0.7%
EBITDA	(EUR million)	16	5	-67.7%
Net profit/-loss	(EUR million)	-12	-20	-69.0%

The dynamics of high seasonality on the profit level

		Q1 2016	Q1 2017	Change
Cash flows from operating activities	(EUR million)	17	-3
Investments	(EUR million)	13	204
New long term loan	(EUR million)	0	184
Redemption of loans	(EUR million)	15	10
Cash at the end of period	(EUR million)	92	72	-21.7%

• -

• Dividends EUR 20 M

Proposal on distribution of profits

—dividends to the shareholders 0.03 euros per share, in the total amount of

• 1. Proposal on distribution of profits
• 1. Extension of authorities of the members of the supervisory board
• 1. Appointment of an auditor for the financial year 2017 and the determination of the procedure of remuneration of an auditor
• 1. Proposal on distribution of profits
• 1. Extension of authorities of the members of the supervisory board
• 1. Appointment of an auditor for the financial year 2017 and the determination of the procedure of remuneration of an auditor