Tallink Grupp

Quarterly Report • Feb 22, 2022

Q4 2021

TALLINK GRUPP AS RESULTS WEBINAR

PRESENTERS

PAAVO NÕGENE CHAIRMAN OF THE MANAGEMENT BOARD

MARGUS SCHULTS MEMBER OF THE MANAGEMENT BOARD

JOONAS JOOST FINANCIAL DIRECTOR

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

STATUS OF EMPLOYMENT OF VESSELS IN 2021 H2

	Employment of vessels in second half of 2021
Megastar	Tallinn-Helsinki
Star	Tallinn-Helsinki
Silja Europa	Tallinn-Helsinki, short-term charter from mid-October to mid-November
Baltic Queen	Tallinn-Stockholm
Victoria I	Short-term charter in July-September
Silja Serenade	Helsinki-Stockholm
Silja Symphony	Helsinki-Stockholm
Galaxy	Turku-Stockholm
Baltic Princess	Turku-Stockholm
Sea Wind	Muuga-Vuosaari
Regal Star	Paldiski-Kapellskär
Sailor	Paldiski-Kapellskär
Romantika	Short-term charter in July-September and from mid-October to mid-November
Isabelle	Inactive
Atlantic Vision	Long-term charter

4

TALLINK GRUPP

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 GRUPP 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.

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	166.6 20.0	79.3 -18.4	110.1% 209.1%
EBITDA	25.1	1.2	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)

Q4 REVENUE DEVELOPMENT BY OPERATING SEGMENTS (EUR MILLION)

Restaurant and shop sales on-board and onshore increased due to various retail activities and higher volume of purchases by

Q4 REVENUE DEVELOPMENT BY GEOGRAPHICAL SEGMENTS (EUR MILLION)

Revenues of all routes negatively affected by COVID-19, travel restrictions and tight competition on cargo market

Estonia-Finland

The results reflect operations of two shuttle vessels, one cruise ferry and one cargo vessel

Estonia-Sweden

The results reflect the operations of two cargo vessels on Paldiski-Kapellskär route and one cruise ferry on Tallinn-Stockholm route, as well as expenses of a suspended cruise ferry Victoria I

Latvia-Sweden

The Latvia-Sweden route result reflects expenses of suspended cruise ferries Isabelle and Romantika after conclusion of charter period

Finland-Sweden

The results reflect the operations of Turku-Stockholm and Helsinki-Stockholm routes

Other

Increase from charter revenue and from various retail activities; three hotels operated in Tallinn

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 2468 2019 2020 2021 9.8 9.8 3.7 3.0

PASSENGERS (MILLIONS)

REVENUE (EUR MILLION)

CARGO (TH. UNITS)

EBITDA (EUR MILLION)

(1) 2021 unaudited

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

TALLINK GRUPP Notes: Totals may not sum due to rounding (1) 2021 unaudited

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)

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
Totals may not sum due to rounding						Assets	Liabilities & Equity

(1) Shareholders' equity / number of shares outstanding

(2) 2021 unaudited

TALLINK GRUPP

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

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 0.2m 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

TALLINK GRUPP

PRINCIPAL PAYMENTS UNDER EXISTING LOAN AGREEMENTS POSTPONED

900

QUESTIONS & ANSWERS

PAAVO NÕGENE CHAIRMAN 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 www.tallink.com/investors