Market announcement

Title

AS Tallink Grupp unaudited consolidated Interim Report for the fourth quarter and 12 months of 2023

Message

The results of AS Tallink Grupp for the fourth quarter and 12 months 2023 will
be introduced at an Investor Webinar held today at 12:00 (EEST). To participate,
please join via the following link; (https://teams.microsoft.com/l/meetup-
join/19%3ameeting_MzA0Y2RkOTgtYWY2NS00YmY1LWFlMDgtY2FhOWI4Nzk4ZDFh%40thread.v2/0
?context=%7B%22Tid%22%3A%2286359415-f0d5-4ea5-bb32-
42128c4493be%22%2C%22Oid%22%3A%22fbc24b3a-8623-42c6-8311-65b8899e63dd%22%2C%22Is
BroadcastMeeting%22%3Atrue%2C%22role%22%3A%22a%22%7D&btype=a&role=a) we kindly
ask participants to provide their questions latest by 11:00 am by email
to: investor@tallink.ee (https://www.globenewswire.com/Tracker?data=sPXC0PO4t9B-
uBXRwzpCc9_urHLPH-
XBcIT5f9VgaHjBgmHJXdMG7Jg3xYPMniStxcjyWGB1jA5Xo_gPeGTNxXf9rfqgQqnrBPw6kdbTEdo=).
Further details are available in a previously published announcement
(https://view.news.eu.nasdaq.com/view?id=bcf273c629d85b0e4d8cd25cbe30832bd&lang=
et&src=listed).

In  the financial year 2023 (1 January -  31 December), AS Tallink Grupp and its
subsidiaries  (hereinafter  referred  to  as  "the  Group")  carried  5 705 600
passengers,  which is 4.5% more  than in the  financial year 2022. The number of
cargo  units transported decreased  by 20.9% compared to  the previous financial
year.  The Group's unaudited consolidated  revenue amounted to EUR 835.3 million
(EUR  771.4 million  in  the  financial  year  2022), up  by  8.3% year-on-year.
Unaudited  EBITDA  was  EUR  214.5 million  (EUR 135.8 million in 2022 financial
year)  and the  unaudited net  profit for  the period  was EUR 78.9 million (EUR
13.9 million in 2022 financial year), up by 58.0% and 466.0%, respectively.

The  following operational  factors impacted  the Group's  revenue and operating
results in the financial year 2023:

  * The volume of cargo and passenger transportation was impacted by less
    vessels in operations due to chartering and by less trips made compared to
    the same period a year ago.
  * The demand was also impacted by low consumer and business confidence levels,
    and weak economic environment in all Group's core markets but also by global
    geopolitical instability.
  * As at the end of the financial year, the Group operated 15 vessels including
    2 shuttle vessels, 2 cargo vessels and 5 cruise ferries as well as 5 vessels
    that were chartered out (3 vessels on long-term and 2 vessels on short-term
    charter) and one in lay-up.
  * During the financial year, 2 charter agreements ended. The charter agreement
    of the cruise vessel Romantika was terminated in September 2023 prior to the
    agreement's expiration date. The short-term charter agreement of the cruise
    ferry Victoria I ended in July 2023. In addition, the Group extended the
    charter agreements of cruise vessels Galaxy I and Silja Europa until April
    2024 and end of 2024, respectively. The shuttle vessel Oscar Wilde (former
    Star) was chartered out in May 2023 for 20 months with the option to extend
    the charter period by 2+2 years and purchase option.
  * The planned maintenance works of vessels totalled to 61 days.
  * The Group operated 3 hotels in Tallinn and 1 in Riga.
  * Declining global fuel prices, the optimal fleet size and strict cost control
    had a positive impact on the Group's cost base. However, while the fuel
    prices have dropped the fuel transportation cost component has increased.
  * The Group repaid loans in the amount of EUR 487.6 million, which includes
    refinancing of loans in the amount of EUR 298 million. The net repayment of
    interest-baring loans was EUR 189.6 million.
  * The Group's net debt to EBITDA ratio amounted to 2.8 as at the end of the
    financial year 2023 compared to 5.4 as at the end of the financial year
    2022.
  * The Group continues to focus on cost efficiency from previously implemented
    measures and retaining profitable operations on its core routes.
  * The Group regularly monitors the developments on its core routes including
    the capacity of each route and continues to look for new chartering options
    for vessels not used on the main routes and to work on extending the
    existing chartering agreements.

Sales and Results by Segments

In  the financial  year 2023, the  Group's total  revenue increased by EUR 63.9
million to EUR 835.3 million compared to EUR 771.4 million in the financial year
2022.

Revenue  from route  operations (core  business) amounted  to EUR 645.8 million,
which  is EUR 16.9 million more than during the financial year 2022. The segment
result  from  route  operations  (core  business)  amounted to EUR 107.2 million
compared to EUR 39.7 million in the financial year 2022.

In  the financial year 2023, the Group's  vessels carried a total of 3.5 million
passengers on the Estonia-Finland route, up by 10.8% year-on-year. The number of
transported cargo units decreased by 20.4%. The revenue from the Estonia-Finland
route  increased by EUR 20.2 million to EUR 298.0 million and the segment result
improved  by EUR 27.3 million to EUR  79.0 million. In the financial year 2023,
the segment reflects the operations of the following vessels:

  * 1 January - 2 May 2023: the shuttle vessels MyStar, Megastar and Oscar Wilde
    (formerly Star). The latter stopped operating the route in May 2023 due to a
    charter agreement.
  * 2 May - 11 October 2023: the shuttle vessels MyStar and Megastar.
  * 12 October - 31 December 2023: the shuttle vessels MyStar and Megastar and
    the cruise ferry Victoria I that was added to the route in October 2023.

The  cruise ferry Silja Europa stopped operating on the Estonia-Finland route in
August 2022 due to a charter agreement.

In  the financial year 2023, the Group carried a total of 1.7 million passengers
on  Finland-Sweden routes, down by  9.9% year-on-year. The number of transported
cargo  units  decreased  by  41.6%. The  routes'  revenue decreased by EUR 17.2
million  to EUR 257.1  million while  the segment  result improved  by EUR 24.7
million  to EUR 23.8 million, year-on-year. The decline in passenger numbers and
cargo  volumes were  mostly driven  by less  vessels in  operations, 26% of less
trips  made compared to  the financial year  2022 and change of  route to Turku-
Kappelskär.  In the financial year 2023, the  segment reflects the operations of
one  cruise ferry on Turku-Stockholm/Kapellskär routes and two cruise ferries on
the Helsinki-Stockholm route. The cruise ferry Galaxy I stopped operating on the
Turku-Stockholm route from September 2022 due to a charter agreement.

On  Estonia-Sweden routes the number of carried passengers increased by 19.0% in
the  financial year 2023 and amounted to  0.6 million. The number of transported
cargo units increased by 3.0% year-on-year. The revenue of Estonia-Sweden routes
increased by EUR 13.9 million to EUR 90.8 million and segment result improved by
EUR 15.5 million to EUR 4.5 million, year-on-year. Estonia-Sweden routes reflect
the  operation of  two cargo  vessels on  the Paldiski-Kapellskär  route and one
cruise ferry on the Tallinn-Stockholm route.

Revenue  from the  segment Other  increased by  a total  of EUR 48.6 million and
amounted  to EUR  196.0 million. The  segment result  was up by EUR 19.5 million
year-on-year  amounting to EUR 54.5 million. As at the end of the financial year
2023, the  Group  had  5 vessels  on  charter  including 3 on long-term and 2 on
short-term charter.

As at the end of the 2023 financial year, the long-term charters included:

  * The vessel Atlantic Vision was chartered to Canada in November 2008. The
    current agreement has been signed until May 2024 with an extension option
    for another 12 months.
  * The shuttle vessel Oscar Wilde (formerly Star) was chartered out from 5 May
    2023 for 20 months with the option of extending the charter by 2+2 year and
    the option of purchasing the shuttle.
  * The cruise ferry Isabelle has been on long-term charter since 1 July 2023
    and the charter agreement includes a purchase option.

As at the end of the 2023 financial year, the short-term charters included:

  * The cruise ferry Galaxy I was chartered out in September 2022. In September
    2023, the agreement was extended for six months until April 2024.
  * The cruise ferry Silja Europa was chartered out in August 2022. In October
    2023, the charter agreement was extended until the end of 2024.

During  the year, the  charter agreements of  2 vessels ended. The agreement for
chartering  out the cruise ferry Romantika, signed in March 2022, was terminated
on 1 September 2023. The cruise ferry Victoria I, the charter agreement of which
ended in July, started operating the Tallinn-Helsinki route on 12 October 2023.

Earnings

In  the  financial  year  2023, the  Group's  gross profit improved by EUR 90.4
million  amounting to  EUR 203.8 million  compared to  EUR 113.5 million  in the
financial  year 2022. EBITDA  improved by  EUR 78.7 million  and amounted to EUR
214.5 million.

Amortisation and depreciation expense increased by EUR 3.1 million to EUR 101.2
million year-on-year.

As  a result  of increased  interest rates  and increased  financing obligations
related  to the shuttle-vessel Mystar, net  finance costs increased by EUR 10.9
million year-on-year to EUR 35.5 million in financial year 2023.

The  Group's unaudited net profit  as at the end  of the 2023 financial year was
EUR  78.9 million or EUR 0.106 per  share compared to a  EUR 13.9 million or EUR
0.019 per share as at the end of the 2022 financial year.

Investments

The Group's investments in the financial year 2023 amounted to EUR 28.2 million.

Majority  of the investments were related to the maintenance and repair works of
the  vessels which lasted for a total of 61 days during the financial year. Main
investments  in vessels included the preparation  of cruise ferry Victoria I for
cruise  service operations between Tallinn and Helsinki, technical works as well
as  interior  upgrades  of  the  cruise  ferry  Baltic Queen and maintenance and
repairs  of  the  cruise  ferries  Silja  Serenade,  Silja  Symphony  and Baltic
Princess.

During  the financial  year, the  Group opened  3 new Burger King restaurants in
Riga and Kaunas. Additionally, the hotel in Riga was re-opened in April 2023.

Financial Position

At  the end  of the  financial year  2023, the Group's  net debt amounted to EUR
607.3 million,  a  decrease  of  EUR  13.0 million  compared to the end of third
quarter of 2023. The net debt to EBITDA ratio was 2.8 at the reporting date (2.7
as at 30 September 2023).

As  at the end of the financial year 2023, the Group's cash and cash equivalents
amounted  to EUR  41.9 million (EUR  64.4 million as  at 30 September 2023). The
Group's  available credit lines were scaled back  from EUR 135 million as at 30
September  2023 to the pre-COVID-19 levels of EUR  75.0 million as at the end of
the  reporting period.  The total  liquidity buffer  (cash, cash equivalents and
unused credit facilities) amounted to EUR 116.9 million (EUR 199.4 million as at
30 September  2023). During the financial  year 2023, the Group  repaid loans in
the  total amount of  EUR 487.6 million, which  includes refinancing of loans in
the  amount of  EUR 298.0 million.  The net  repayment of interest-bearing loans
amounted  to EUR 189.6 million in the  financial year 2023. During the financial
year  2022, the  Group  repaid  loans  in  the  amount of EUR 110.1 million. The
current  trade and other payables amounted to EUR 85.4 million (EUR 83.6 million
as at 30 September 2023).

Dividends

In  2018, the Group adopted  a dividend policy  subject to which  dividends of a
minimum  amount of EUR 0.05 per share would  be paid if the economic performance
enables it.

Due to continued global uncertainties the Annual General Meeting of Shareholders
held on 13 June 2023 decided not to pay dividends for the financial year 2022.

Concorded  with the Supervisory Board of the  Group, the Management Board of the
Group  has decided to prepare a proposal  to the General Meeting of Shareholders
to pay a dividend of 6 cents per share in 2024 for the financial year of 2023.

Results of the Q4 2023

In  the fourth  quarter 2023 (1  October -  31 December), the Group carried 1.3
million passengers which is 3.3% more compared to the same period last year.

The  restaurant and shop sales on-board and onshore increased by EUR 1.0 million
and  ticket revenue by EUR 2.4 million year-on-year. The cargo revenue decreased
EUR 2.4 million year-on-year. Revenues from hotel operations were up by EUR 0.5
million  and  other  revenues  by  EUR  1.0 million  year-on-year. Revenues from
chartering  decreased by EUR 12.3 million compared to fourth quarter 2022 due to
less vessels being chartered out.

The  Group's unaudited revenue for the period decreased by 4.9% year-on-year and
amounted  to EUR 193.7 million. Unaudited EBITDA  of the fourth quarter 2023 was
EUR 36.8 million (EUR 50.4 million in the fourth quarter 2022) and unaudited net
profit was EUR 2.2 million (net profit of EUR 16.7 million in the fourth quarter
2022).

The financial result of the fourth quarter of 2023 was impacted by the following
factors:

  * The chartering of vessels supporting the stability of cash flows.
  * The cruise vessel Romantika remained in lay-up during the Q4 2023.
  * Repayment of long-term loans in the amount of EUR 332.1 million, which
    includes refinancing of loans in the amount of EUR 298.0 million.
  * Higher financing costs due to increased Euribor and transaction costs
    related to refinancing.

Key Figures

 For the                                               Jan-Dec     Jan-Dec     Jan-Dec
 period            Q4 2023     Q4 2022     Q4 2021        2023        2022        2021
              ------------------------------------------------------------------------
 Revenue (EUR
 million)            193.7       203.7       166.6       835.3       771.4       476.9

 Gross
 profit/loss
 (EUR million)        34.9        41.8        20.0       203.8       113.5        21.7

 EBITDA¹ (EUR
 million)             36.8        50.4        25.1       214.5       135.8        58.3

 EBIT¹ (EUR
 million)             11.4        23.5         0.9       113.3        37.7       -37.0

 Net
 profit/loss
 for the
 period (EUR
 million)              2.2        16.7        -3.3        78.9        13.9       -56.6



 Depreciation
 and
 amortisation
 (EUR million)        25.5        27.0        24.2       101.2        98.1        95.3

 Capital
 expenditures¹
 ²(EUR
 million)              5.9       179.7         9.2        28.2       203.3        20.2

 Weighted
 average
 number of
 ordinary
 shares
 outstanding   743 569 064 743 569 064 743 569 064 743 569 064 743 569 064 694 444 381

 Earnings/loss
 per share¹
 (EUR)               0.003       0.022      -0.004       0.106       0.019      -0.081



 Number of
 passengers      1 338 921   1 296 047   1 122 892   5 705 600   5 462 085   2 961 975

 Number of
 cargo units        76 198      96 052     101 486     323 990     409 769     369 170

 Average
 number of
 employees           4 879       4 947       4 743       4 879       5 023       4 360



 As at          31.12.2023  30.09.2023              31.12.2023  31.12.2022  31.12.2021
              ------------------------------------------------------------------------
 Total assets
 (EUR million)     1 555.2     1 597.4                 1 555.2     1 691.6     1 585.9

 Total
 liabilities
 (EUR million)       769.5     1 152.0                   769.5       984.7       893.4

 Interest-
 bearing
 liabilities
 (EUR million)       649.3       684.8                   649.3       853.5       779.9

 Net debt¹
 (EUR million)       607.3       620.4                   607.3       620.4       652.4

 Net debt to
 EBITDA¹               2.8         2.7                     2.8         2.7        11.2

 Total equity
 (EUR million)       785.8       783.7                   785.8       706.9       692.5

 Equity ratio¹
 (%)                   51%         49%                     51%         42%         44%



 Number of
 ordinary
 shares
 outstanding   743 569 064 743 569 064             743 569 064 743 569 064 743 569 064

 Shareholders'
 equity per
 share (EUR)          1.06        1.05                    1.06        0.95        0.93



                                                       Jan-Dec     Jan-Dec     Jan-Dec
 Ratios¹           Q4 2023     Q4 2022     Q4 2021        2023        2022        2021
              ------------------------------------------------------------------------
 Gross margin
 (%)                 18.0%       20.5%       12.0%       24.4%       14.7%        4.5%

 EBITDA margin
 (%)                 19.0%       24.8%       15.1%       25.7%       17.6%       12.2%

 EBIT margin
 (%)                  5.9%       11.5%        0.5%       13.6%        4.9%       -7.8%

 Net
 profit/loss
 margin (%)           1.1%        8.2%       -2.0%        9.4%        1.8%      -11.9%



 ROA (%)              7.0%        2.4%       -2.4%        7.0%        2.4%       -2.4%

 ROE (%)             10.6%        2.1%       -8.2%       10.6%        2.1%       -8.2%

 ROCE (%)             8.4%        3.1%       -2.8%        8.4%        3.1%       -2.8%

1 Alternative performance measures based on ESMA guidelines are disclosed in the
Alternative Performance Measures section of this Interim Report.
2 Does not include additions to right-of-use assets.

EBITDA: result from operating activities before net financial items, share of
profit of equity-accounted investees, taxes, depreciation and amortization
EBIT: result from operating activities
Earnings/loss per share: net profit or loss/ weighted average number of shares
outstanding
Equity ratio: total equity / total assets
Shareholder's equity per share: shareholder's equity / number of shares
outstanding
Gross profit/loss margin: gross profit / net sales
EBITDA margin: EBITDA / net sales
EBIT margin: EBIT / net sales
Net profit/loss margin: net profit or loss / net sales
Capital expenditure: additions to property, plant and equipment - additions to
right-of-use assets + additions to intangible assets
ROA: earnings before net financial items, taxes 12-months trailing / average
total assets
ROE: net profit 12-months trailing / average shareholders' equity
ROCE: earnings before net financial items, taxes 12-months trailing / (total
assets - current liabilities (average for the period))
Net debt: interest-bearing liabilities less cash and cash equivalents
Net debt to EBITDA: net debt / EBITDA 12-months trailing



Consolidated statement of profit or loss and other comprehensive income

                                                               Jan-Dec  Jan-Dec
 Unaudited, in thousands of EUR              Q4 2023  Q4 2022     2023     2022
-------------------------------------------------------------------------------
 Revenue (Note 3)                            193 737  203 661  835 325  771 387

 Cost of sales                              -158 809 -161 827 -631 491 -657 917
-------------------------------------------------------------------------------
 Gross profit/loss                            34 928   41 834  203 834  113 470



 Sales and marketing expenses                -11 381  -11 399  -42 162  -38 796

 Administrative expenses                     -14 978  -12 658  -52 472  -47 708

 Other operating income                        2 893    5 759    4 275   10 871

 Other operating expenses                       -103      -80     -171     -164
-------------------------------------------------------------------------------
 Result from operating activities             11 359   23 456  113 304   37 673



 Finance income (Note 4)                         528      167    1 332      215

 Finance costs (Note 4)                      -10 061   -7 024  -36 864  -24 871
-------------------------------------------------------------------------------
 Share of profit/loss of equity-accounted
 investees                                       -75      -90      -75      -90
-------------------------------------------------------------------------------
 Profit/loss before income tax                 1 751   16 509   77 697   12 927



 Income tax                                      413      214    1 175    1 008



 Net profit/loss for the period                2 164   16 723   78 872   13 935

 Net profit/loss for the period
 attributable to equity holders of the
 Parent                                        2 164   16 723   78 872   13 935



 Other comprehensive income

 Items that may be reclassified to profit
 or loss

 Exchange differences on translating
 foreign operations                             -201      -11     -172      480
-------------------------------------------------------------------------------
 Other comprehensive income for the period      -201      -11     -172      480



 Total comprehensive profit/loss for the
 period                                        1 963   16 712   78 700   14 415

 Total comprehensive profit/loss for the
 period attributable to equity holders of
 the Parent                                    1 963   16 712   78 700   14 415



 Basic and diluted profit/loss per share
 (in EUR, Note 5)                              0.003    0.022    0.106    0.019
-------------------------------------------------------------------------------



Consolidated statement of financial position

 Unaudited, in thousands of EUR                      31.12.2023 31.12.2022
--------------------------------------------------------------------------
 ASSETS

 Cash and cash equivalents                               41 921    114 935

 Trade and other receivables                             31 766     31 380

 Prepayments                                              7 661      9 379

 Prepaid income tax                                         193         37

 Inventories                                             41 411     39 965
--------------------------------------------------------------------------
 Current assets                                         122 952    195 696



 Investments in equity-accounted investees                    0         75

 Other financial assets and prepayments                   4 794      3 622

 Deferred income tax assets                              21 840     21 840

 Investment property                                        300        300

 Property, plant and equipment                        1 377 664  1 438 286

 Intangible assets                                       27 671     31 823
--------------------------------------------------------------------------
 Non-current assets                                   1 432 269  1 495 946

 TOTAL ASSETS                                         1 555 221  1 691 642



 LIABILITIES AND EQUITY

 Interest-bearing loans and borrowings                  104 097    165 049

 Trade and other payables                                85 406     86 934

 Payables to owners                                           6          6

 Income tax liability                                        10         35

 Deferred income                                         34 788     44 222
--------------------------------------------------------------------------
 Current liabilities                                    224 307    296 246



 Interest-bearing loans and borrowings                  545 160    688 465
--------------------------------------------------------------------------
 Non-current liabilities                                545 160    688 465
--------------------------------------------------------------------------
 Total liabilities                                      769 467    984 711



 Share capital                                          349 477    349 477

 Share premium                                              663        663

 Reserves                                                67 056     66 363

 Retained earnings                                      368 558    290 428
--------------------------------------------------------------------------
 Equity attributable to equity holders of the Parent    785 754    706 931

 Total equity                                           785 754    706 931
--------------------------------------------------------------------------
 TOTAL LIABILITIES AND EQUITY                         1 555 221  1 691 642



Consolidated statement of cash flows

                                                               Jan-Dec  Jan-Dec
 Unaudited, in thousands of EUR              Q4 2023  Q4 2022     2023     2022
-------------------------------------------------------------------------------


 CASH FLOWS FROM OPERATING ACTIVITIES

 Net profit/loss for the period                2 164   16 723   78 872   13 935

 Adjustments                                  34 603   33 557  135 324  122 147

 Changes in:

 Receivables and prepayments related to
 operating activities                          6 622   10 964    1 340   -3 638

 Inventories                                  -1 653     -208   -1 446   -5 334

 Liabilities related to operating activities  -7 754   -3 618  -10 457   17 415
-------------------------------------------------------------------------------
 Changes in assets and liabilities            -2 785    7 138  -10 563    8 443

 Cash generated from operating activities     33 982   57 418  203 633  144 525

 Income tax repaid/paid                          -75     -112     -186     -227
-------------------------------------------------------------------------------
 NET CASH FROM/USED OPERATING ACTIVITIES      33 907   57 306  203 447  144 298



 CASH FLOWS FROM INVESTING ACTIVITIES

 Purchase of property, plant, equipment and
 intangible assets                            -5 882 -179 689  -28 131 -203 322

 Proceeds from disposals of property, plant,
 equipment                                       369       25      613    2 768

 Interest received                               528      209    1 332      215
-------------------------------------------------------------------------------
 NET CASH USED IN INVESTING ACTIVITIES        -4 985 -179 455  -26 186 -200 339



 CASH FLOWS FROM FINANCING ACTIVITIES

 Proceeds from loans received (Note 8)        59 972  196 290   59 972  196 290

 Repayment of loans received (Note 8)        -95 954  -39 025 -251 431 -110 055

 Change in overdraft (Note 8)                      0  -11 811      -15     -165

 Payment of lease liabilities (Note 8)        -4 494   -4 313  -21 519  -17 157

 Interest paid                                -7 615   -5 494  -32 827  -23 516

 Payment of transaction costs related to
 loans                                        -3 343   -1 376   -4 455   -1 977
-------------------------------------------------------------------------------
 NET CASH FROM/USED IN FINANCING ACTIVITIES  -51 434  134 271 -250 275   43 420



 TOTAL NET CASH FLOW                         -22 512   12 122  -73 014  -12 621
-------------------------------------------------------------------------------


 Cash and cash equivalents at the beginning
 of period                                    64 433  102 813  114 935  127 556

 Change in cash and cash equivalents         -22 512   12 122  -73 014  -12 621
-------------------------------------------------------------------------------
 Cash and cash equivalents at the end of
 period                                       41 921  114 935   41 921  114 935



Anneli Simm
Investor Relations Manager

AS Tallink Grupp
Sadama 5
10111 Tallinn, Estonia
E-mail anneli.simm@tallink.ee