Tallink Grupp — Earnings Release 2021

Feb 22, 2022

Q4 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 (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
• 4 785 employees (end of Q4 2021)
• 2.9 million loyalty program members
• 37 334 shareholders and FDR-holders of which 27 763 on

Tallinn Stock Exchange and 9 571 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

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

Q4 2021 OVERVIEW – COVID-19 & TRAVEL RESTRICTIONS

Q4 Selected Key Figures (financials in million euros)	2021	2020	Change
Number of passengers	1 122 892	462 859	142.6%
Number of cargo units	101 486	81 861	24.0%
Number of passenger cars	171 037	134 196	27.5%
Revenue Gross profit / loss EBITDA	166.6 20.0 25.1	79.3 -18.4 1.2	110.1% 209.1% 2 019.3%
EBIT	0.9	-24.2	103.6%
Net result for the period	-3.3	-26.9	87.6%
Capital expenditures	9.2	4.8	91.0%
As at:	31.12.21	30.09.21	Change
Total assets	1 585.9	1 616.7	-1.9%
Total equity	692.5	695.9	-0.5%
Interest-bearing liabilities	779.9	802.8	-2.8%
Net debt	652.4	659.7	-1.1%
2021 unaudited

• Revenue EUR 166.6m (EUR +87.3m or 110.1% vs LY)

• Extensive impact from COVID-19 related travel restrictions imposed by the end of the quarter in Finland and Sweden
• Rise in infection rates caused by new COVID-19 variant Omicron resulted in lower demand for travelling
• 12% more departures compared to Q4 2020

• Costs & support

• Cost of sales increased by 50% or EUR 48.9m
• Administrative & marketing cost increased by 9% or EUR 1.9m
• Very limited government support in Q4 2021 EUR 1.4m (EUR 14.7m in Q4 2020)
• EBITDA of EUR 25.1m (EUR +23.9m vs LY)
• Net loss of EUR 3.3m (EUR +23.5m vs LY)

2021 OVERVIEW – COVID-19 & TRAVEL RESTRICTIONS

Selected Key Figures (financials in million euros)	2021	2020	Change
Number of passengers	2 961 975	3 732 102	-20.6%
Number of cargo units	369 170	359 811	2.6%
Number of passenger cars	602 033	702 702	-14.3%
Revenue	476.9	442.9	7.7%
Gross profit / loss	21.7	-43.5	149.8%
EBITDA	58.3	8.0	624.9%
EBIT	-37.0	-92.6	60.0%
Net result for the period	-56.6	-108.3	47.8%
Capital expenditures	20.2	100.1	-79.8%
As at:	31.12.21	31.12.20	Change
Total assets	1 585.9	1 516.2	4.6%
Total equity	692.5	714.3	-3.1%
Interest-bearing liabilities	779.9	705.1	10.6%
Net debt	652.4	677.3	-3.7%
2021 unaudited

• Revenue EUR 476.9m (EUR +34.0m or +7.7% vs LY)

• Extensive impact from COVID-19 related travel restrictions
• Increased demand for travelling in second half of the year
• 2% less departures compared to 2020

• Cost reduction & support

• Cost of sales reduced by 6% or EUR 31m
• Marketing & administrative cost reduced by 13% or EUR 11m
• Net direct financial support of EUR 12.8m (EUR 36.6m in 2020)
• Positive EBITDA of EUR 58.3m (EUR +50.2m vs LY)
• Net loss of EUR 56.6m (EUR +51.7m vs LY)

Q4 2021 SALES & RESULTS BY GEOGRAPHICAL SEGMENTS

Route	Key Figures (financials in EUR million)	2021	2020	Change	All routes affected by COVID-19, travel restrictions
Estonia	Passengers (thousands)	578	338	70.9%
Finland	Cargo units (thousands)	67	56	19.6%	The results reflect operations of two shuttle vessels, one cruise ferry
	Revenue	55.5	37.4	48.3%	and one cargo vessel
	Segment result	6.6	-0.8	946.5%
Finland	Passengers (thousands)	431	112	283.1%
Sweden	Cargo units (thousands)	20	15	34.4%	The results reflect the operations of Turku-Stockholm and Helsinki
	Revenue	64.2	21.7	195.1%	Stockholm routes
	Segment result		-17.3	116.7%
Estonia	Passengers (thousands)	114	10	1009.1%
Sweden	Cargo units (thousands)	15	11	40.8%	The results reflect the operations of two cargo vessels on Paldiski Kapellskär route and one cruise ferry on Tallinn-Stockholm route, as
	Revenue	19.4	7.5	159.6%	well as expenses of a suspended cruise ferry Victoria I
	Segment result	-1.1	-4.8	76.3%
Latvia	Passengers (thousands)	0	2	-100.0%
Sweden	Cargo units (thousands)	0	1	-100.0%	The Latvia-Sweden route result reflects expenses of suspended cruise
	Revenue	0.1	1.2	-88.6%	ferries Isabelle and Romantika after conclusion of charter period
	Segment result	-3.6	-4.5	19.4%
Other	Revenue	27.9	11.5	142.7%
	Segment result	6.3	1.8	255.6%	Increase from charter revenue and from various retail activities; three hotels operated in Tallinn
TALLINK	Intersegment revenue	-0.5 -0.1 -734.1%

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

Q4 2021 SALES & RESULTS BY OPERATIONAL SEGMENTS

Revenue (EUR million)	2021	2020	Change
Restaurant and shop sales on-board and onshore	87.0	37.6	131.6%
Ticket sales	34.3	15.5	121.9%
Sales of cargo transportation	26.5	20.9	26.5%
Accommodation sales	1.4	0.2	477.1%
Income from charter of vessels	12.3	2.4	405.6%
Other sales	5.1	2.6	92.5%
Total revenue	166.6	79.3	110.1%

• Restaurant and shop sales on-board and onshore increased due to various retail activities and higher volume of purchases by travelling passengers
• Increase in ticket sales mainly attributable to increased demand and supply of overnight routes to and from Stockholm
• High competition in cargo transportation market
• Operation of three hotels in Q4 2021 (two hotels were open in Q4 2020)
• Short-term charter of Silja Europa and Romantika in Q4 2021

REVENUE STRUCTURE IN Q4 2021

TALLINK 2021 unaudited

GRUPP

RESULTS QUARTERLY SEASONALITY BREAKDOWN

1.9 1.9 1.6 2.6 2.7 2.9 3.0 1.3 1.1 2.2 2.3 1.1 2019 2020 2021 9.8 9.8 3.7 3.0

PASSENGERS (MILLIONS)

REVENUE (EUR MILLION)

CARGO (TH. UNITS)

EBITDA (EUR MILLION)

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 Q4 DEVELOPMENTS AND KEY FACTS

OPERATING ENVIRONMENT

• Extensive impact of COVID-19 and suspension of cruise ferries operations continued
• Strong beginning of the quarter, demand for travelling was high in October and November
• New COVID-19 variant, tighter border restrictions set in Finland and Sweden by the end of the quarter resulting in lower demand

ACTIVITIES AND EVENTS

• Short-term charter agreement for Silja Europa and Romantika as accommodation vessels in Scotland in October and November
• Opening of three new Burger King restaurants in Lithuania

Silja Europa in Glasgow

EVENTS AFTER THE REPORTING PERIOD & OUTLOOK

MyStar at Rauma Shipyard, November 2021

• One new Burger King Restaurant opened in Riga in January 2022.
• In February 2022 travel restrictions were lifted in Finland and Sweden contributing to the increase in number of bookings.
• Compromise for termination of dispute with Port of Tallinn in February 2022
• The new LNG-based shuttle vessel MyStar is expected to be delivered during spring 2022, in operations from June 2022.
• Continuously exploring options for chartering out vessels.

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 or imposing of travel restrictions and allowing passenger traffic, passengers' willingness to travel as well as the duration of the recovery period.

TALLINK Management expects the passenger traffic between Estonia and Finland to recover more rapidly from the second quarter of 2022, when greater immunity is expected to be reached for most of the population on Group's home markets and hospitalisation rates are decreasing.

CONSOLIDATED INCOME STATEMENT

(EUR million)	2020	2021	Q4 2020	2021(3) Q4
Sales	443	477	79	167
Cost of sales (1)	(486)	(455)	(98)	(147)
Marketing & administrative cost (1)	(86)	(75)	(21)	(22)
Other operating items, net (2)	37	16	15	3
EBITDA	8	58	1	25
Margin (%)	1.8%	12.2%	1.5%	15.1%
Net Result	(108)	(57)	(27)	(3)
EPS	(0.162)	(0.081)	(0.040)	(0.004)

Totals may not sum due to rounding

(1) Includes depreciation and amortization

(2) Q4 2021 includes EUR 1.4m direct government assistance; Q4 2020 includes EUR 14.7m direct government assistance; 2020 includes EUR 36.6m net direct government assistance

(3) 2021 unaudited

TALLINK GRUPP

FULL YEAR COSTS BREAKDOWN

(EUR thousands)	(4) 2021	2020	Change
Cost of goods	110 451	116 624	-5.3%
Staff costs	86 101	116 818	-26.3%
Marketing & Administration (1)	62 075	71 797	-13.5%
Port & Stevedoring	62 998	68 100	-7.5%
Fuel cost	72 234	56 341	28.2%
Ship operating expenses	34 363	36 923	-6.9%
Other costs (2)	6 768	5 631	20.2%
Total costs from operations	434 991	472 234	-7.9%
Depreciation & amortisation	95 313	100 661	-5.3%
Net finance cost (3)	21 967	18 000	22.0%
Total costs	552 271	590 894	-6.5%

Notes:

TALLINK GRUPP

(1) Depreciation and amortisation excluded

(2) Includes package costs

(3) Includes share of profit/loss of equity-accounted investees

(4) Unaudited

CONSOLIDATED CASH FLOW STATEMENT

(EUR million)	2020	2021	Q4 2020	(1) Q4 2021
Operating cash flow	(7)	59	(12)	28
Capital expenditure	(100)	(20)	(17)	(9)
Asset disposal	0	1	0	0
Free cash flow	(107)	40	(29)	18
Debt financing (net effect)	112	44	31	(30)
Interests & other financial items	(16)	(19)	(4)	(4)
Increase of share capital	0	35	0	0
Dividends & reduction of share capital	0	0	0	0
Income tax on dividends paid	0	0	0	0
Change in cash	(11)	100	(3)	(16)

Totals may not sum due to rounding (1) 2021 unaudited

TALLINK GRUPP

CASH FLOW GENERATION AFFECTED BY COVID-19

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(EUR million)	31.12.2019	31.12.2020	30.09.2021	(2) 31.12.2021
Total assets	1 533	1 516	1 617	1 586	1500	Cash	Other liabilities
Non-current assets	1 412	1 427	1 389	1 383		Intangibles
Current assets	121	89	227	203		Other assets
- of which cash	39	28	143	128			Share holders' equity
Total liabilities	710	802	921	893	1000
Interest bearing liabilities	578	705	803	780
Other liabilities	132	97	118	113
Shareholders' equity	823	714	696	693		Ships
					500
Net debt/EBITDA	3.1x	84.2x	19.2x	11.2x			Loans
Net debt	539	677	660	652
Equity/assets ratio	54%	47%	43%	44%
(1) BVPS (in EUR)	1.23	1.07	0.94	0.93	0	Assets	Liabilities &

Totals may not sum due to rounding

(1) Shareholders' equity / number of shares outstanding

(2) 2021 unaudited

TALLINK GRUPP

TOTAL LIQUIDITY (CASH + UNUSED OVERDRAFT) OF EUR 262.4 MILLION

Equity

DEBT STRUCTURE

LONG TERM BANK LOANS

• EUR 663 million as at 31.12.2021
• 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 31.12.2021)

• EUR 0.18 million used
• EUR 134.8 million unused

SIGNED, NOT YET DRAWN

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

Total EUR 663 million long-term bank loans and used overdrafts as at 31.12.2021

2021 unaudited

PRINCIPAL PAYMENTS UNDER EXISTING LOAN AGREEMENTS POSTPONED

900

CORPORATE GOVERNANCE

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

Born in 1965, with the Supervisory Board since 2019

Born in 1961, with the Supervisory Board since 2005

Colin Douglas Clark

Ain Hanschmidt

Born in 1965,

with the Supervisory Board since 2007

Born in 1974, with the Supervisory Board since 2013

MANAGEMENT BOARD

SHAREHOLDERS AND SHARE PERFORMANCE

SHAREHOLDERS OF AS TALLINK GRUPP TEN LARGEST SHAREHOLDERS AS OF 31.12.2021

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	3%
Mersok OÜ	2%
Luksusjaht AS	1%
Clearstream Banking AG	1%
LHV Pensionifond L	1%

Share Price in EUR FDR Price in EUR

TALLINK GRUPP

37,334 SHAREHOLDERS AND FDR-HOLDERS AT THE END OF THE QUARTER

THANK YOU

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