Tallink Grupp — Earnings Release 2021

Jul 29, 2021

Q2 2021

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 15 vessels
• Seven ferry routes (3 suspended)
• Operating four hotels (1 closed)

KEY FACTS

• Revenue of EUR 443 million in 2020
• Served 3.7 million passengers in 2020
• Transported 360 thousand cargo units
• Operating EUR 1.5 billion asset base
• 4 352 employees (end of Q2 2021)
• 2.8 million loyalty program members

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

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
• 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

Q2 2021 OVERVIEW – COVID-19 & TRAVEL RESTRICTIONS

2021	2020	Change
427 767	388 212	10.2%
91 990	86 755	6.0%
125 713	102 479	22.7%
86.1 -8.7 4.4 -19.4 -24.3	65.0 -21.9 2.4 -22.7 -27.4	32.5% 60.2% 80.4% 14.7% 11.1%
3.1	14.4	-78.2%
30.06.21	31.03.21	Change
1 524.7	1 492.5	2.2%
655.7	680.1	-3.6%
744.5	728.3	2.2%
706.7	713.5	-1.0%

• Revenue EUR 86.1m (EUR +21.1m or 32.5% vs LY)

• Extensive impact from COVID-19 related travel restrictions
• More limited impact on cargo operations
• 18% more departures compared to Q2 2020

• Costs & support

• Cost of sales increased by 9% or EUR 7.9m
• Costs relating to re-employment of vessels in Q2 2021
• Administrative & marketing cost increased by 3% or EUR 0.4m
• Reduced remuneration in Q2 2020
• Total impact of various support measures: EUR 10.6m in Q2 2021 (EUR -17.1m vs LY)
• EBITDA of EUR 4.4m (EUR +1.9m vs LY)
• Net loss of EUR 24.3m (EUR +3.0m vs LY)

TALLINK GRUPP

Q2 2021 SALES & RESULTS BY GEOGRAPHICAL SEGMENTS

Route	Key Figures (financial in EUR million)	2021	2020	Change	All routes affected by COVID-19, travel restrictions & suspension of operations
Estonia	Passengers (thousands)	336	323	4.1%
Finland	Cargo units (thousands)	64	60	7.9%	The results reflect the operations of the Estonia-Finland two shuttle
	Revenue	41.1	33.6	22.2%	vessels, a cargo vessel and two cruise ferries in June
	Segment result	0.2	-2.4	110.3%
Finland	Passengers (thousands)	82	54	52.3%
Sweden Revenue	Cargo units (thousands)	17	18	-8.2%	The results reflect the operations of two cruise ferries on Turku
		18.8	16.2	15.8%	Stockholm route and suspended Helsinki-Stockholm route cruise ferries
	Segment result	-11.5	-18.4	37.6%
Estonia	Passengers (thousands)	10	8	17.8%
Sweden	Cargo units (thousands)	11	9	28.2%	The results reflect the operations of two cargo vessels on Paldiski
	Revenue	6.1	5.2	17.2%	Kapellskär route and two suspended cruise ferries
	Segment result	-4.3	-4.9	12.1%
Latvia	Passengers (thousands) 0		3	-100.0%
Sweden	Cargo units (thousands)	0	0	-100.0%	The Latvia-Sweden route result reflects expenses of two suspended
	Revenue	0.1	1.3	-91.8%	cruise ferries
	Segment result	-3.5	-4.2	16.6%
Other	Revenue	20.0	8.7	130.4%
	Segment result	3.4	0.6	506.7%	Effectively only one hotel operated; increase from various retail
	Intersegment revenue	0.0	-0.1	80.1%	activities and charter revenue

GRUPP Segment result is the result before administrative expenses, finance costs and taxes 2021 unaudited

Q2 2021 SALES & RESULTS BY OPERATIONAL SEGMENTS

Revenue (EUR million)	2021	2020	Change
Restaurant and shop sales on-board and onshore	40.0	26.2	52.4%
Ticket sales	13.4	12.9	3.9%
Sales of cargo transportation	23.7	22.4	5.9%
Accommodation sales	0.1	0.2	-26.5%
Income from charter of vessels	5.7	2.5	126.2%
Other sales	3.2	0.7	335.3%
Total revenue	86.1	65.0	32.5%

• Restaurant and shop sales on-board and onshore increased due to various retail activities and higher volume of purchases by travelling passengers
• Relatively low increase in ticket sales due to absence of several ad hoc routes/services which were operated in in Q2 2020
• High competition in cargo transportation market
• Effectively only one hotel operated in Q2 2021
• Short-term charter of Silja Europa in June 2021

REVENUE STRUCTURE IN Q2 2021

TALLINK 2021 unaudited

RESULTS QUARTERLY SEASONALITY BREAKDOWN

2.6 2.7 0.4 0.4 2.9 3.0 1.3 2.2 2.3 0.5 2019 2020 2021 9.8 9.8 3.7

PASSENGERS (MILLIONS)

REVENUE (EUR MILLION)

CARGO (TH. UNITS)

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 THE SUMMER, THE HIGH SEASON

2021 Q2 DEVELOPMENTS AND KEY FACTS

OPERATING ENVIRONMENT

• Extensive impact of COVID-19 and suspension of cruise ferries operations continued
• Restrictions imposed by the governments

ACTIVITIES AND EVENTS

• Continuous cost control to ensure efficiency and savings from previously implemented measures
• Appointment of the new Management Board member Margus Schults
• Changes in loan agreements
• Short-term charter agreements for Silja Europa, Victoria I and Romantika
• Opening of third Burger King restaurant in Latvia
• Completion of renovation and reopening of Tallink City Hotel on 30 June 2021

Silja Europa at the port of Falmouth

EVENTS AFTER THE REPORTING PERIOD & OUTLOOK

Restaurant at renovated Tallink City Hotel

• Christening of the new LNG powered shuttle vessel MyStar in Rauma shipyard in August 2021. The godmother of the new vessel will be the President of the Republic of Estonia Kersti Kaljulaid.
• Continuing preparations for opening new Burger King restaurants in 2021. In the second half of the year altogether six new restaurants are planned to be opened in Latvia and Lithuania.

Due to the ongoing COVID-19 situation the earnings outlook is uncertain and continues to be strongly affected by external factors such as the progress of vaccination, states' decisions regarding the timing of the lifting of travel restrictions and allowing passenger traffic as well as the duration of the recovery period.

Management expects the passenger traffic between Estonia and Finland to recover rapidly after the restrictions and authorities' advice against travelling have been lifted.

CONSOLIDATED INCOME STATEMENT

(EUR million)	2019	2020	Q2 2020	(3) Q2 2021
Sales	949	443	65	86
Cost of sales (1)	(752)	(486)	(87)	(95)
Marketing & administrative cost (1)	(125)	(86)	(17)	(17)
Other operating items, net (2)	2	37	16	7
EBITDA	171	8	2	4
Margin (%)	18.0%	1.8%	3.7%	5.1%
Net Result	50	(108)	(27)	(24)
EPS	0.074	(0.162)	(0.041)	(0.036)

Totals may not sum due to rounding

(1) Includes depreciation and amortization

(2) Q2 2021 includes EUR 6.1m direct government assistance; Q2 2020 includes EUR 16.1m direct government assistance; 2020 includes EUR 36.6m net direct government assistance

(3) Unaudited

TALLINK GRUPP

CONSOLIDATED CASH FLOW STATEMENT

(EUR million)	2019	2020	Q2 2020	(1) Q2 2021
Operating cash flow	175	(7)	4	30
Capital expenditure	(61)	(100)	(14)	(3)
Asset disposal	0	0	0	0
Free cash flow	114	(107)	(10)	27
Debt financing (net effect)	(52)	112	19	0
Interests & other financial items	(17)	(16)	(3)	(4)
Dividends & reduction of share capital	(80)	0	0	0
Income tax on dividends paid	(8)	0	0	0
Change in cash	(43)	(11)	5	23

Totals may not sum due to rounding (1) Unaudited

TALLINK GRUPP

CASH FLOW GENERATION AFFECTED BY COVID-19

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(EUR million)	31.12.2019	30.06.2020	31.12.2020	(2) 30.06.2021
Total assets	1 533	1 506	1 516	1 525	1500	Cash Intangibles	Other liabilities
Non-current assets	1 412	1 414	1 427	1 407		Other assets
Current assets	121	92	89	118
- of which cash	39	22	28	38			Share holders' equity
Total liabilities	710	741	802	869	1000
Interest bearing liabilities	578	616	705	745
Other liabilities	132	125	97	125
Shareholders' equity	823	765	714	656		Ships
					500
Net debt/EBITDA	3.1x	5.0x	84.2x	143.2x			Loans
Net debt	539	594	677	707
Equity/assets ratio	54%	51%	47%	43%
(1) BVPS (in EUR)	1.23	1.14	1.07	0.98	0	Assets	Liabilities &
Totals may not sum due to rounding							Equity

(1) Shareholders' equity / number of shares outstanding

(2) Unaudited

TALLINK GRUPP

TOTAL LIQUIDITY OF EUR 116.7 MILLION + EUR 90.0 MILLION UNDRAWN WORKING CAPITAL LOAN

DEBT STRUCTURE

LONG TERM BANK LOANS

• EUR 573 million as at 30.06.2021
• 7 loan agreements outstanding: syndicated loans, amortizing project and working capital loans
• Maturities 1-8 years
• EUR denominated, fixed and EURIBOR floating

OVERDRAFTS (as at 30.06.2021)

• EUR 56 million used
• EUR 79 million unused

SIGNED, NOT YET DRAWN

• EUR 198 million from KfW IPEX-Bank GmbH (MyStar)
• EUR 90 million undrawn of EUR 100 million working capital loan from Nordic Investment Bank

Total EUR 745 million interest bearing liabilities as at 30.06.2021

2021 unaudited

PRINCIPAL PAYMENTS UNDER EXISTING LOAN AGREEMENTS POSTPONED

CORPORATE GOVERNANCE

Enn Pant - Chairman of the Supervisory Board

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

Born in 1965, with the Supervisory Board since 2019

Born in 1961, with the Supervisory Board since 2005

Born in 1965,

with the Supervisory Board since 2007

Colin Douglas Clark

Born in 1974, with the Supervisory Board since 2013

SHAREHOLDERS AND SHARE PERFORMANCE

• Institutional investors
• Retail investors 0.50

SHAREHOLDERS OF AS TALLINK GRUPP TEN LARGEST SHAREHOLDERS AS OF 30.06.2021

Infortar AS	39%
Baltic Cruises Holding, L.P.	16%
ING Luxembourg S.A. AIF Account	7%
Baltic Cruises Investment L.P.	6%
Nordea Bank Abp / Clients FDR	3%
Citigroup Venture Capital International G.P	2%
Clearstream Banking AG	1%
LHV Pensionifond L	1%
State Street Bank And Trust Omnibus Account A Fund No OM01	1%
Mersok OÜ	1%

Share Price in EUR FDR Price in EUR

TALLINK GRUPP

28,715 SHAREHOLDERS AND FDR-HOLDERS AT THE END OF THE QUARTER

THANK YOU

AS Tallink Grupp Sadama 5, 10111, Tallinn, Estonia investor@tallink.ee