Tallinna Sadam

Quarterly Report • May 10, 2023

Company AS TALLINNA SADAM

Type Company Release

Category Management interim statement or quaterly financial report

Disclosure time 10 May 2023 08:00:00 +0300

Attachments:

• Presentation Tallinna Sadam Q1 2023 webinar ENG.pdf (http://oam.fi.ee/en/download?id=7398)
• Tallinna Sadam Financial Results Q1 2023 Data.xlsx (http://oam.fi.ee/en/download?id=7399)
• Tallinna Sadam Q1 2023 interim report ENG.pdf (http://oam.fi.ee/en/download?id=7400)
• Presentatsioon Tallinna Sadama Q1 2023 veebiseminar.pdf (http://oam.fi.ee/en/download?id=7401)
• Tallinna Sadam Financial Results Q1 2023 Data.xlsx (http://oam.fi.ee/en/download?id=7402)
• Tallinna Sadam Q1 2023 vahearuanne EST.pdf (http://oam.fi.ee/en/download?id=7403)

Currency

Title

AS Tallinna Sadam financial results for 2023 Q1

In the first quarter, revenue increased to 28.4 million euros (+6%) and adjusted EBITDA to 13.6 million euros (+0.6%), and profit was 5.7 million euros (-21%). The adjusted EBITDA margin was 48% and the volume of investments 1.5 million euros (-67%).

In the passenger business, strong growth continued both in the number of passengers and in passenger vessel calls, including a record for vessel calls on the Tallinn-Helsinki line. The cargo volumes of liquid bulk and dry bulk decreased due to the sanctions imposed on goods of Russian origin, but its economic impact was significantly smaller than the decrease in volume, as the volume of goods with a lower tariff rate decreased in particular. In shipping, both ferries and the icebreaker Botnica showed growth. Rising service prices and wage pressure increased operating costs, financial costs also increased.

Tallinna Sadam management will present the financial results of the Group at a webinars on 10 May, including webinar in Estonian starting at 13.00 (EET) (link to EST webinar (https://teams.microsoft.com/l/meetupjoin/19%3ameeting_MzQ0ZmFiMTQtNjU3ZC00MTczLWFkZTQtNGUzZmU4NjFiZGNi%40thread.v2/0 ?context=%7B%22Tid%22%3A%223c572f71-c808-4685-aa00- 2ca59a11c7e2%22%2C%22Oid%22%3A%22a6492212-75ef-498f-8735-75f88c5d463a%22%2C%22Is BroadcastMeeting%22%3Atrue%2C%22role%22%3A%22a%22%7D&btype=a&role=a)) and webinar in English starting at 14.00 (EET) (link to ENG webinar (https://teams.microsoft.com/l/meetupjoin/19%3ameeting_MmNjMDVlOWItMWNjZS00NWYzLWFkMzctOTM1ODRhY2Y3NTAy%40thread.v2/0 ?context=%7B%22Tid%22%3A%223c572f71-c808-4685-aa00- 2ca59a11c7e2%22%2C%22Oid%22%3A%22a6492212-75ef-498f-8735-75f88c5d463a%22%2C%22Is

Key figures (in million EUR):

	Q1 2023	Q1 2022	+/-	%
Revenue	28.4	26.8	1,6	6.1
Adjusted EBITDA	13.6	13.5	0.1	0.6
Adjusted EBITDA margin	47.8%	50.4%	-2.6	-
Operating profit	6.8	7.2	-0.4	-5.8
Profit for the period	5.7	7.2	-1.5	-20.7
Investments	1.5	4.7	-3.2	-67.2
	31.03.2023	31.12.2022		+/-
Total assets	627.2		621.2	1.0%
Interest bearing debt	184.4		187.4	-1.6%
Other liabilities	56.2		52.9	6.2%
Equity	386.7		381.0	1.5%
Number of shares	263.0		263.0	0.0%

Major events in Q1:

• * Record vessel calls on Tallinn-Helsinki line
• * Icebreaker Botnica contract with Baffinland for 2023 summer
• * Positive court ruling to end the legal dispute with SLK and Väinamere Lines
• * MOU with OÜ Utilitas Wind for the development of offshore wind farms
• * Announcement of the passenger terminal A architecture competition
• * Public discussion of sketch designs of the detail plans of Old City Harbour

Revenue

Revenue for the first quarter grew by EUR 1.6 million (+6.1%) year on year. All revenue streams showed growth, except cargo charges and sale of electricity. Passenger fee revenue grew the most, increasing by EUR 0.7 million (+47%) in connection with an increase in the number of passengers, the effect of which was lowered by a 10% reduction in the fee rate for passengers arriving at or departing from Old City Harbour on regularly operated ferry routes as from March 2022. Decline in cargo charges (-9%) was significantly lower than the decrease in cargo volumes (-31%) as volumes decreased mostly for cargo with lower charge

rates. Revenue grew in the Passenger harbours segment, the Ferry segment and in the segment Other, but decreased in the Cargo harbours segment by EUR 1.7 million due to lower cargo volumes.

The revenue of the Passenger harbours segment grew by EUR 2.0 million (33%) mainly through higher revenue from vessel dues and passenger fees (+EUR 1.0 million and +EUR 0.7 million, respectively), which increased due to growth in vessel calls and passenger numbers. Lease income grew (+EUR 0.2 million) due to the addition of new premises as well as higher income from the cruise terminal. Revenue from other services was mainly supported by revenue on the sale of advertising space.

In the Cargo harbours segment, revenue decreased by EUR 1.7 million (-18%) due to a decline in cargo volumes and the number of vessel calls. Revenue from vessel dues (-EUR 1.0 million), electricity sales (-EUR 0.4 million) and cargo charges (-EUR 0.2 million) decreased the most. The decline in electricity sales revenue was attributable to both lower electricity prices and smaller consumption due to lower operating volumes.

The revenue of the Ferry segment grew by EUR 1.0 million (13%), driven by a rise in the contractual fee rates (due to an increase in the Estonian fuel cost, employment cost and consumer price indices) and supported by a higher number of trips.

The revenue of the segment Other grew by EUR 0.4 million (10%) in connection with a higher charter fee rate for the icebreaking season, which took effect in December 2022 under a new agreement signed with the Estonian Transport Administration.

EBITDA

Adjusted EBITDA grew by EUR 0.082 million because revenue growth exceeded growth in expenses excluding depreciation, amortisation and impairment, although profit on the investment in the equity-accounted associate AS Green Marine decreased. In terms of segments, adjusted EBITDA grew in the Passenger harbours segment, the Ferry segment and the segment Other and decreased in the Cargo harbours segment. Adjusted EBITDA margin declined from 50.4% to 47.8%.

Profit

Profit before tax decreased by EUR 1.49 million (-20.7%) to EUR 5.7 million. Net profit for the period was also EUR 5.7 million, EUR 1.49 million smaller than a year earlier.

Investments

The Group invested EUR 1.5 million in the first three months of 2023, EUR 3.2 million less than a year earlier. The largest investments were made in completing the reconstruction of the outdoor area around terminal D and increasing the capacity of Muuga Harbour to serve ro-ro cargo.

Interim condensed consolidated statement of financial position:

In thousands of euros 31 March 2023 31 December 2022

----------------------------------------------------------------------- ASSETS

Current assets
Cash and cash equivalents	51 957		44 387
Trade and other receivables	11 264		7 477
Contract assets	215		0
Inventories	735		749
Non-current assets held for sale	0		100
----------------------------------------------------------------------- Total current assets -----------------------------------------------------------------------	64 171		52 713
Non-current assets
Investments in associates	2 138		2 099
Other long-term receivables	303		303
Property, plant and equipment	558 806	564 379
Intangible assets	1 812		1 735
Total non-current assets	563 059	568 516
----------------------------------------------------------------------- Total assets -----------------------------------------------------------------------	627 230	621 229

LIABILITIES

Current liabilities
Loans and borrowings	15 916	15 916
Provisions	543	2 013
Government grants	8 240	8 578

Taxes payable	1 044		1 060
Trade and other payables	8 984		9 770
Contract liabilities	3 072		62
Total current liabilities -----------------------------------------------------------------------	37 799		37 399
Non-current liabilities
Loans and borrowings	168 482	171 482
Government grants	32 905		30 156
Other payables	622		449
Contract liabilities	745		767
Total non-current liabilities -----------------------------------------------------------------------	202 754	202 854
Total liabilities -----------------------------------------------------------------------	240 553	240 253
EQUITY
Share capital at par value	263 000	263 000
Share premium	44 478		44 478
Statutory capital reserve	22 115		22 115
Retained earnings (prior periods)	51 383		25 791
Profit for the period -----------------------------------------------------------------------	5 701		25 592
Total equity -----------------------------------------------------------------------	386 677	380 976
Total liabilities and equity -----------------------------------------------------------------------	627 230	621 229

Interim condensed consolidated statement of profit or loss:

In thousands of euros		Q1 2023 Q1 2022
	-------------------------------------------------------------------------------

Revenue	28 405	26 771
Other income	341	295
Operating expenses	-9 145	-8 663
Personnel expenses	-5 621	-4 771
Depreciation, amortisation and impairment	-7 038	-6 287
Other expenses	-145	-128
Operating profit	6 797	7 217
-------------------------------------------------------------------------------
Finance income and costs
Finance income	258	31
Finance costs	-1 393	-284
Finance costs - net	-1 135	-253
-------------------------------------------------------------------------------
Share of profit of an associate accounted for under the equity method	39	227
Profit before income tax	5 701	7 191
-------------------------------------------------------------------------------
Profit for the period	5 701	7 191
------------------------------------------------------------------------------- Attributable to owners of the Parent	5 701	7 191
-------------------------------------------------------------------------------
------------------------------------------------------------------------------- Basic and diluted earnings per share (in euros)	0.02	0.03
Basic and diluted earnings per share - continuing operations (in euros) -------------------------------------------------------------------------------	0.02	0.03

Interim condensed consolidated statement of cash flows:

--------------------------------------------------------------------------- Cash receipts from sale of goods and services 32 199 31 849 Cash receipts related to other income 28 20 Payments to suppliers -13 307 -12 493 Payments to and on behalf of employees -5 373 -4 359 Payments for other expenses -148 -146 Cash from operating activities 13 399 14 871 --------------------------------------------------------------------------- Purchases of property, plant and equipment -1 630 -5 318 Purchases of intangible assets -176 -50 Proceeds from sale of property, plant and equipment 0 28 Government grants received 242 1 Interest received -1 564 -5 339 Cash used in investing activities --------------------------------------------------------------------------- Repayments of loans received -3 000 -3 000 Interest paid -1 263 -356 Other payments related to financing activities -2 -2 Cash from/used in financing activities -4 265 -3 358 --------------------------------------------------------------------------- NET CASH FLOW 7 570 6 174 --------------------------------------------------------------------------- Cash and cash equivalents at beginning of the period 44 387 34 840 Change in cash and cash equivalents 7 570 6 174 Cash and cash equivalents at end of the period 51 957 41 014 ---------------------------------------------------------------------------	In thousands of euros	Q1 2023	Q1 2022

Tallinna Sadam is one of the largest cargo- and passenger port complexes in the Baltic Sea region, which serves annually 10 million passengers and 20 million tons of cargo in average. In addition to passenger and freight services, Tallinna Sadam group also operates in shipping business via its subsidiaries - OÜ TS Laevad provides ferry services between the Estonian mainland and the largest islands, and OÜ TS Shipping charters its multifunctional vessel Botnica for icebreaking and construction services in Estonia and offshore projects abroad. Tallinna Sadam group is also a shareholder of an associate AS Green Marine, which provides waste management services.

Additional information:

Marju Zirel Head of Investor Relations Tel. +372 5342 6591

m.zirel@ts.ee (mailto:m.zirel@ts.ee)