Tallink Grupp

Investor Presentation • Aug 23, 2021

INVESTOR PRESENTATION

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PAAVO NÕGENE CHAIRMAN OF THE MANAGEMENT BOARD

HARRI HANSCHMIDT MEMBER OF THE MANAGEMENT BOARD

MARGUS SCHULTS MEMBER OF THE MANAGEMENT BOARD

JOONAS JOOST FINANCIAL DIRECTOR

This presentation is an advertisement for securities within the meaning of the Regulation No 2017/1129/EU of 14 June 2017 of the European Parliament and of the Council European Parliament and does not constitute an offer to sell shares or invitation to subscribe to shares. An offer to subscribe for shares should be made and each investor should make any decision to invest in the shares only on the basis of the information contained in the Prospectus and the summary of the Prospectus and if necessary, consult with an expert.

The prospectus is available here - https://www.tallink.com/investors/stock-exchange/2021-offering-enter. The approval of a Prospectus by the Financial Supervision and Resolution Authority is not considered to be a recommendation for shares.

The information contained in this presentation is not intended to be published, distributed or transmitted, in whole or in part, directly or indirectly, in the United States, Australia, Canada, Hong Kong, Japan, Singapore, South Africa, or in any other country or circumstance where publication, sharing or transmission would be unlawful.

The new shares will be publicly offered only in Estonia and Finland and the sale or offer of the shares shall not take place in any jurisdiction where such offer, invitation or sale would be unlawful without the exception or qualification of law.

TABLE OF CONTENTS

1	COMPANY OVERVIEW
---	------------------

• 1. BUSINESS OVERVIEW
• 1. FINANCIALS
• 1. PUBLIC SHARE OFFERING

OVERVIEW OF TALLINK GRUPP

OPERATIONS

• Fleet of 15 vessels
• 7 ferry routes (1 suspended)
• Operating 4 hotels (1 closed until high season of 2022)

KEY FACTS/KPIs

• Revenue of EUR 86m in Q2 2021 (EUR 65m in Q2 2020) and EUR 443m in 2020 (EUR 949m in 2019)
• Served 427 767 passengers in Q2 2021 (388 212 in Q2 2020)
• Transported 91 990 cargo units in Q2 2021 (86 755 in Q2 2020)
• EUR 1 525m asset base
• 4 352 employees as at 30.06.2021

COMPANY IN POSITION TO EFFECTIVELY OVERCOME DIFFICULTIES IMPOSED BY COVID-19

• 1. Sustainable and cost efficient operations
  2. ‒ Company has effectively managed to reduce cost base during the crisis
  3. ‒ Number of personnel decreased by 45% in Q2 2021 versus Q2 2019
  4. ‒ Enables to use more flexible personnel structure going forward which is also favourable due to seasonable nature of the business
• 1. New business lines and ad-hoc routes keeping business operations active and diversified
  2. ‒ 6 new ad-hoc routes or special cruises in 2020 and 2021
  3. ‒ Extension of on-shore business operations by opening 10 new Burger King restaurants during 2020-2021 H1
  4. ‒ Webshop revenue up to EUR 6.5m in 2020 from EUR 1.0m in 2019
  5. ‒ Chartering vessels, currently 3 (Atlantic Vision, Victoria I, Romantika)
• 1. Solid liquidity buffer
  2. ‒ Company has liquidity buffer of EUR 116.7m as at 30.06.2021
  3. ‒ In addition, undrawn part of EUR 90m of the EUR 100m working capital loan from NIB

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 1965,

Colin Douglas Clark

Born in 1974, with the Supervisory Board since 2013

SHAREHOLDERS AND TRADING UPDATE

TEN LARGEST SHAREHOLDERS AS AT 30.06.2021 SHAREHOLDERS OF TALLINK

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%

28 715 shareholders and FDR holders on 30 June 2021

TRADING UPDATE

TABLE OF CONTENTS

1 COMPANY OVERVIEW

1. BUSINESS OVERVIEW

2. 1. FINANCIALS
3. 1. PUBLIC SHARE OFFERING

COVID-19 IMPACT

OVERVIEW OF COVID-19 IMPACT ON BUSINESS OPERATIONS

PASSENGERS

Estonia –	Finland
Finland –	Sweden
Estonia –	Sweden
Latvia –	Sweden
CARGO
	Open		Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	Jan	Feb	Mar	Apr	May	Jun	Jul
	Limited capacity			Q1			Q2			Q3			Q4			Q1			Q2
	Closed								2020									2021
		2019 figures		1 856			2 652			2 975			2 281
				1,567						1,314
	PASSENGERS Thousand						388						463			267			428
				Q1 2020			Q2 2020			Q3 2020			Q4 2020			Q1 2021			Q2 2021
		2019 figures		93			100			93			94
	CARGO			100			87			92			82			85			92
	Number of units, thousand
TALLINK				Q1 2020			Q2 2020			Q3 2020			Q4 2020			Q1 2021			Q2 2021

GRUPP

ASSET BASE - VESSELS

OVERVIEW OF VESSELS (AS AT 31.07.2021)

Vessel name	Vessel type	Built/renovated	Original route	Status
Star	High-speed ro-pax	2007	Finland-Estonia	Active
Megastar	High-speed ro-pax	2017	Finland-Estonia	Active
Silja Europa	Cruise ferry	1993/2006	Finland-Estonia	Active
Sea Wind	Ro-ro cargo vessel	1972/1989	Finland-Estonia	Active
Baltic Queen	Cruise ferry	2009	Sweden-Estonia	Active
Regal Star	Ro-ro cargo vessel	1999	Sweden-Estonia	Active
Sailor	Ro-ro cargo vessel	1987	Sweden-Estonia	Active
Galaxy	Cruise ferry	2006	Finland-Sweden	Active
Baltic Princess	Cruise ferry	2008	Finland-Sweden	Active
1 Silja Symphony	Cruise ferry	1991	Finland-Sweden	Active
2 Silja Serenade	Cruise ferry	1990	Finland-Sweden	Active
Atlantic Vision	High-speed ro-pax	2002	Canada	Long-term charter
Victoria I	Cruise ferry	2004	Sweden-Estonia	Short-term charter
Romantika	Cruise ferry	2002	Sweden-Latvia	Short-term charter
Isabelle	Cruise ferry	1989	Sweden-Latvia	Inactive

Silja Symphony

1

• Swedish domestic cruises in July and August
• Re-scheduled to Helsinki-Stockholm from 27.08.2021 onward

Silja Serenade 2

• Started on Tallinn-Helsinki on 4.06.2021
• On Helsinki-Aland from 24.06.2021
• Re-scheduled to Helsinki-Stockholm route on 1.08.2021

ASSET BASE - HOTELS

Tallink City Hotel

• Operations suspended from mid-March 2020 due to renovation
• Hotel opened on 30.06.2021

Tallink Express Hotel

• Operational in limited capacity during mid-March 2020 until mid-June 2020 and from autumn 2020 until February 2021
• Operational in high season of 2020
• Limited capacity operations from mid-March 2021, opened in July 2021

TALLINK GRUPP

Tallink Spa & Conference Hotel

• Operations suspended from mid-March 2020
• Operational from mid-June 2020 until late autumn 2020 and in limited capacity from autumn 2020 until February 2021
• Operations effectively suspended from March 2021 and opened on 25.06.2021

Tallink Hotel Riga

• Operations suspended from mid-March 2020
• Operational from mid-June 2020 until mid-October 2020
• Hotel operations suspended from mid-October 2020 and throughout 2021

KEY EVENTS DURING 2020 - YTD 2021

2020

YTD 2021(1)

Completion of pre-payments for MyStar and start of the construction of the vessel	Cost cutting and extensive reorganisation enabling more efficient business operations	Opening of two Burger King restaurants in Latvia	Re-opening of Tallink City Hotel
Tallink webshop achieved significant growth during 2020 from July	Additional cargo vessel Sailor acquired and started operating on the Paldiski-Kapellskär route	Re-start of Tallinn Stockholm & Helsinki Stockholm routes	New destination added to Swedish domestic routes: Stockholm-Ystad
8 Burger King restaurants opened across the Baltic states by the	Renovation of Tallink City Hotel	Short-term time-charter agreements for the vessels Victoria I and Romantika, which will operate on international shipping routes in the Mediterranean
end of 2020		Christening of MyStar	on 12.08.2021
3 temporary pop-up routes and a number of special cruises operated during 2020	Helsinki-Riga Stockholm-Härnösand Tallinn-Turku Helsinki-Saaremaa Stockholm-Visby Tallinn-Riga special cruises	Sold 100% of shares in its subsidiary Baltic Retail OÜ, which focuses on onshore fashion retail business

TALLINK GRUPP Notes: (1) 1 January 2021 – 17 August 2021

TABLE OF CONTENTS

1. BUSINESS OVERVIEW

3. FINANCIALS

1. PUBLIC SHARE OFFERING

SALES AND RESULTS BY GEOGRAPHICAL SEGMENTS

Route	Key figures (financials in EURm)	Q2 2021(1)	Q2 2020	Q2 2019	Comments
Estonia-Finland	Passengers (thousands)	336	323	1 385	• For 2021, the results reflect the operations of the Estonia-Finland two shuttle
	Cargo units (thousands)	64	60	64	vessels, a cargo vessel and two cruise ferries in June
	Revenue	41.1	33.6	94.9	• The results include also the operations of the Paldsiki-Sassnitz (Q2 2020) and the
	Costs	-40.9	-36.0	-73.4	Tallinn-Mariehamn routes but do not reflect Finland's National Emergency
	Segment results(1)	0.2	-2.4	21.5	Supply Agency support
Finland-Sweden	Passengers (thousands)	82	54	772	• The results reflect the operations of two cruise ferries on Turku-Stockholm route
	Cargo units (thousands)	17	18	20	and suspended Helsinki-Stockholm route cruise ferries
	Revenue	18.8	16.2	89.6	• Also include the operations of the Helsinki-Riga route (Q2 2020) as well as the
	Costs	-30.3	-34.6	-80.3	expenses related to the suspended Helsinki-Stockholm route but do not reflect
	Segment results(1)	-11.5	-18.4	9.3	Finland's National Emergency Supply Agency support
Estonia-Sweden	Passengers (thousands)	10	8	271
	Cargo units (thousands)	11	9	12
	Revenue	6.1	5.2	31.3	• The results reflect the operations of the Paldiski-Kapellskär route and the expenses related to the suspended operations of the Tallinn-Stockholm route
	Costs	-10.4	-10.1	-29.0
	Segment results(1)	-4.3	-4.9	2.3
Latvia-Sweden	Passengers (thousands)	0	3	223
	Cargo units (thousands)	0	0	4
	Revenue	0.1	1.3	20.0	• Results include also limited operations of the Riga-Stockholm route as well as the special Cruises from Riga to Helsinki and Mariehamn (Q2 2020)
	Costs	-3.6	-5.5	-19.7
	Segment results(1)	-3.5	-4.2	0.3
Other	Revenue	20.0	8.7	22.2
	Costs	-16.6	-8.1	-14.2	• Effecitvely only one hotel operated, positive impact from short-term charter
	Segment result(1)	3.4	0.6	8.0	agreement, online shop sales, first Burger King restaurants and mooring services
	Intersegment revenue	-0.0	-0.1	-1.9

TALLINK

Notes:

GRUPP

SALES BY OPERATIONAL SEGMENTS

Revenue (financials in EURm)	Q2 2021(1)	Q2 2020	Q2 2019
Restaurant and shops sales on-board and onshore	40.0	26.2	142.3
Ticket sales	13.4	12.9	66.2
Sales of cargo transportation	23.7	22.4	31.7
Accommodation sales	0.1	0.2	4.8
Income from charter of vessels	5.7	2.5	2.0
Other sales	3.2	0.7	9.0
Total revenue	86.1	65.0	256.1

GRUPP

(1) Unaudited

Restaurant and shops sales on-board and onshore

• On-board shops and restaurant sales affected by very limited business operations

Ticket sales

• Ticket sales affected by very limited business operations

Sales of cargo transportation

• Cargo transportation has been operating throughout the period
• Decrease in results caused by the overall decline of volumes

Accommodation sales

• Hotel operations were suspended or operated in limited capacity for most of the period
• Tallink City Hotel under renovation from mid-March 2020

Other

• 10 Burger King restaurants opened in Estonia, Latvia and Lithuania during the period of Q2 2020 – Q2 2021
• Tallink webshop revenue increased significantly by amounting to EUR 6.5m in 2020 (vs EUR 1.0m in 2019)
• Additional revenue from short-term charter of Silja Europa

DEBT STRUCTURE

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
• EUR 90 million of NIB loan undrawn at 30.06.2021
• EUR 198 million loan for MyStar has been signed, but not yet drawn

OVERDRAFTS AS AT 30.06.2021

• EUR 56 million used
• EUR 79 million unused

GRACE PERIOD

• From the second quarter of 2021 until the end of first quarter of 2022 repayments in the total amount of EUR 82 million are deferred and added to the last payment of each respective loan facility
• The deferrals for the 2021 financial year amount to EUR 67 million

Total of EUR 629 million long-term bank loans and used overdrafts as at 30.06.2021

Loan repayments 2017 – H1 2021

LIQUIDITY DEVELOPMENT

31 December 2019 – 30 June 2021

• Total liquidity buffer (cash and equivalents + unused overdraft) amounted to EUR 117 million as at 30.06.2021
• In 2020, Company increased its right to use bank overdrafts by EUR 60 million, amounting to total of EUR 135 million
• In 2020, EUR 100 million working capital loan signed with Nordic Investment Bank (NIB)
• In addition, EUR 100 million working capital loan received from KredEx
• Undrawn part from the NIB loan amounted to EUR 90 million as at 30.06.2021
• Expected capital raise contributing additionally ~EUR 31 million (upon oversubscription possibility up to ~EUR 35 million)

(1) Combined impact of government assistance paid directly to the Group and support measures' cost reduction impact

COST EFFICIENCY

2019	2020	Q2 2019	Q2 2020	Q2 2021(1)
-752	-486	-195	-87	-95
-68	-38	-19	-7	-7
-57	-48	-14	-10	-10
-877	-572	-229	-104	-112
96	101	23	25	24
-780	-472	-206	-79	-88

• Decreases in cost base mostly related to long period of very limited business operations and cost controlling measures
• Required cost reduction gave Company the opportunity to cut unnecessary cost items
• Due to the closure of most of the business lines, Company had to conduct collective redundancies, which has reduced the number of personnel in Q2 2021 by 45% compared to Q2 2019
• Enables Company to use more flexible personnel structure going forward which is also favourable due to seasonable nature of the business

NUMBER OF PERSONNEL, AVERAGE

	Q2 2019	Q2 2020	Q2 2021(1)
Onshore	1 691	1 594	1 272
Onboard	5 142	4 588	2 647
Hotel	530	396	145
Total	7 363	6 578	4 064

SUPPORT MEASURES

COVID-19 SUPPORT MEASURES

• In 2020, Company used temporary salary compensation measures offered by the countries where it operates
• Also, Estonian parliament approved a change in legislation granting exemption from ships' fairway dues for twelve months starting from April 2020
• In 2020, Company received a net total of EUR 36.6m in direct government financial aid measures
• During H1 2021, Company has received respectively EUR 11.0m in government financial aid measures
• Group entities were allowed to postpone tax payments in 2020 and 2021 by home markets tax boards
• The postponed tax liabilities amounted to EUR 8.0 million at the end of the Q2 2021 and have different settlement dates over the coming years

EUR million	2020	2021 H1(1)
Estonia	15.1	1.0
Finland	9.8	3.9
Sweden	11.7	5.7
Germany	0.1	0.05
Latvia	0	0.4
Total government assistance	36.6	11.0
COVID-19 aid paid directly to employees	10.5	6.0

TABLE OF CONTENTS

• 1. COMPANY OVERVIEW
• 1. BUSINESS OVERVIEW
• 1. FINANCIALS

• PUBLIC SHARE OFFERING

OVERVIEW OF THE PUBLIC OFFERING

Issuer	• AS Tallink Grupp
Type of transaction	• Public share offering with pre-emptive right to existing shareholders
Amount of securities	• Total number of 66 988 204 Offer shares (upon oversubscription possibility up to 73 687 024 Offer shares)
Price	• EUR 0.47
Transaction amount	• EUR 31 484 456 (upon oversubscription possibility up to EUR 34 632 901)
Timing	• Subscription period 18 August – 1 September 2021

TIMELINE

GRUPP

COMMITMENT FROM MAJOR SHAREHOLDER

• AS Infortar has issued a subscription guarantee to the Issuer under which it undertook to subscribe for the Offer Shares
• In the total amount of EUR 15m
• The subscription undertaking is unconditional and irrevocable

21

QUESTIONS & ANSWERS QUESTIONS & ANSWERS

QUESTIONS & ANSWERS

PAAVO NÕGENE CHAIRMAN OF THE MANAGEMENT BOARD

HARRI HANSCHMIDT MEMBER OF THE MANAGEMENT BOARD

MARGUS SCHULTS MEMBER OF THE MANAGEMENT BOARD

JOONAS JOOST FINANCIAL DIRECTOR

THANK YOU

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

APPENDIX

TALLINK GRUPP

COVID-19 IMPACT TO BUSINESS OPERATIONS

TALLINK GRUPP

CONSOLIDATED INCOME STATEMENT

EUR million	2019	2020	Q2 2019	Q2 2020	Q2 2021(1)
Sales	949	443	256	65	86
Cost of sales	-752	-486	-195	-87	-95
Marketing & administrative cost	-125	-86	-34	-17	-17
Other operating items, net	2	37	0	16	7
EBITDA	171	8	51	2	4
EBITDA margin (%)	18.0%	1.8%	19.8%	3.7%	5.1%
Net result	50	-108	15	-27	-24
EPS	0.074	-0.162	0.022	-0.041	-0.036
Number of passengers	9 763 210	3 732 102	2 651 843	388 212	427 767
Number of cargo units	379 634	359 811	99 546	86 755	91 990
Average number of employees	7 270	6 104	7 363	6 578	4 064

CONSOLIDATED CASH FLOW STATEMENT

EUR million	2019	2020	Q2 2019	Q2 2020	Q2 2021(1)
Operating cash flow	175	-7	50	4	30
Capital expenditure	-61	-100	-18	-14	-3
Asset disposal	0	0	0	0	0
Free cash flow	114	-107	32	-10	27
Debt financing (net effect)	-52	112	-10	19	0
Interests & other financial items	-17	-16	-3	-3	-4
Dividends & reduction of share capital	-80	0	0	0	0
Income tax & dividends paid	-8	0	0	0	0
Change in cash	-43	-11	20	5	23

CONSOLIDATED FINANCIAL POSITION

EUR million	31.12.2019	30.06.2020	31.12.2020	30.06.2021 (2)
Total assets	1 533	1 506	1 516	1 525
Non-current assets	1 412	1 414	1 427	1 407
Current assets	121	92	89	118
-of which cash	39	22	28	38
Total liabilities	710	741	802	869
Interest bearing liabilities	578	616	705	745
Other liabilities	132	125	97	125
Shareholders' equity	823	765	714	656
Net debt/EBITDA	3.1x	5.0x	84.2x	143.2x
Net debt	539	594	677	707
Equity/assets ratio	54%	51%	47%	43%
BVPS (1) (in EUR)	1.23	1.14	1.07	0.98

(1) Shareholders' equity / number of shares outstanding

(2) Unaudited