Market announcement

Title

AS Tallink Grupp Unaudited Consolidated Interim Report Q1 2024

Message

The Q1 2024 results of AS Tallink Grupp 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_NjFhODczODQtYWIwNy00NDZjLWFjNTQtM2IxMzkxMWY0MjI0%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 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=b4a83bd4debc1c075dd46b86343c09588&lang=
en&src=listed).

In  the first quarter (1 January -  31 March) of 2024 financial year, AS Tallink
Grupp  and its subsidiaries  (the Group) carried  1 102 738 passengers, which is
5.0% more  than in the first quarter 2023. The number of cargo units transported
decreased  by 2.1% compared to the same period a year ago. The Group's unaudited
consolidated  revenue  amounted  to  EUR  160.4 million (EUR 171.2 million in Q1
2023), down  by 6.3%. Unaudited EBITDA was EUR 34.5 million (EUR 27.1 million in
Q1  2023) and the unaudited net  profit for the period  was EUR 2.6 million (net
loss of EUR 5.4 million in Q1 2023).

The  following operational  factors impacted  the Group's  revenue and operating
results in the first quarter of 2024:

  * Demand was affected by low consumer and business confidence levels, and the
    weak economic environment in all of the Group's core markets as well as
    global geopolitical instability.
  * The Group sold the cruise ferry Isabelle in January 2024.
  * As at the end of the quarter, the Group operated 14 vessels including 2
    shuttle vessels, 2 cargo vessels and 5 operating cruise ferries as well as
    4 vessels that were chartered out (2 vessels on long-term and 2 vessels on
    short-term charter) and 1 vessel in lay-up.
  * The Group operated 3 hotels in Tallinn and 1 in Riga.
  * The Group's net debt to EBITDA ratio was 2.6 as at the end of the quarter
    (2.8 at the end of the financial year 2023). Net debt was down to EUR 581.0
    million euros as at the end of the quarter (EUR 607.3 million at the end of
    the financial year 2023).
  * The Group continues to focus on cost efficiencies from previously
    implemented measures and maintaining 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 seek new chartering options for
    vessels not used on the main routes, as well as working to extend the
    existing charter agreements.

Sales and Segments

In  the first quarter of 2024, the Group's  total revenue decreased by EUR 10.8
million to EUR 160.4 million, compared to EUR 171.2 million a year ago.

Revenue  from route operations  (core business) increased  by EUR 2.7 million to
EUR  127.3 million compared to Q1 2023. The segment result from route operations
(core  business) amounted to a  loss of EUR 2.1 million  compared to a profit of
EUR 1.3 million in the first quarter of 2023.

The  number  of  passengers  carried  on  the Estonia-Finland route increased by
14.6% year-on-year.  The number of transported cargo  units remained on the same
level  as in the first quarter  2023. The revenue from the Estonia-Finland route
increased by EUR 7.9 million to EUR 65.4 million. The segment result improved by
EUR  3.5 million to EUR 9.7 million. The  segment reflects the operations of two
shuttle  vessels and one cruise ferry.  The shuttle vessel Oscar Wilde (formerly
Star) stopped operating on the route in May 2023 due to a charter agreement. The
cruise ferry Victoria I was added to the route in October 2023.

In  the first  quarter of  2024, the number  of passengers decreased by 10.5% on
Finland-Sweden  routes  year-on-year.  The  number  of  transported  cargo units
increased  by 5.5%. The routes' revenue decreased by EUR 3.3 million to EUR 44.3
million  and the segment result dropped by EUR 5.0 million to a loss of EUR 8.3
million.  The segment reflects the operations of  one cruise ferry on the Turku-
Kapellskär and two cruise ferries on the Helsinki-Stockholm route.

On  Estonia-Sweden routes  the number  of carried  passengers decreased by 5.1%
year-on-year.  The number of transported cargo units decreased by 19.3% compared
to the same period a year ago. The revenue of Estonia-Sweden routes decreased by
EUR  1.9 million  to  EUR  17.6 million  and  segment result dropped by EUR 2.0
million to a loss of EUR 3.4 million. Estonia-Sweden routes reflect operation of
two cargo vessels and one cruise ferry in the first quarter of 2024.

Revenue from the segment Other decreased by EUR 13.7 million and amounted to EUR
34.1 million.  The  segment  result  declined  year-on-year  by  EUR 8.2 million
amounting  to EUR  6.1 million. The  decrease was  mainly driven  by having less
vessels  on charter. In  the first quarter  of 2024, the Group  had 5 vessels on
charter,  of which 3 were on long-term  and 2 on short-term charter (Q1 2023: 6
vessels). During the quarter, the charter agreement of the cruise ferry Isabelle
ended due to sale of the vessel at the end of January 2024.

At the end of the first quarter of 2024, long-term charters were as follows:

  * The vessel Atlantic Vision has been charted out to Canada since November
    2008. The current agreement runs until May 2024 and will not be extended.
  * The shuttle vessel Oscar Wilde (formerly Star) was chartered out from 5 May
    2023 for 20 months with an option to extend the charter by 2+2 years and an
    option to purchase the vessel.

At the end of the first quarter of 2024, short-term charters were as follows:

  * The cruise ferry Galaxy I was chartered out in September 2022. In March
    2024, the agreement was extended by six months until October 2024 with the
    option of extending the agreement at the end of the agreement period.
  * The cruise ferry Silja Europa was chartered out in August 2022. In October
    2023, the charter agreement was extended until the end of 2024.

Earnings

In  the first  quarter of  2024, the Group's  gross profit  dropped by EUR 11.0
million  to EUR 13.8 million. EBITDA improved by EUR 7.4 million and amounted to
EUR 34.5 million.

Amortisation  and depreciation expense decreased by EUR 0.6 million to EUR 24.6
million compared to the first quarter of the financial year 2023.

Net  finance costs amounted to EUR 7.5 million  remaining on the same level (EUR
7.6 million) as in first quarter 2023.

The Group's unaudited net profit for the first quarter of 2024 was EUR 2.6
million or EUR 0.003 per share compared to a net loss of EUR 5.4 million or EUR
0.007 per share in Q1 2023.

Investments

The  Group's  investments  in  the  first  quarter  of 2024 amounted to EUR 6.3
million.

Main  investments  in  vessels  included  maintenance  and  repair  works  i.e.,
technical works as well as interior upgrades. The Group also continued to invest
in the improvement of its IT systems.

Financial Position

At  the end of the  first quarter of 2024, the  Group's net debt amounted to EUR
581.0 million having decreased by EUR 26.3 million compared to the end of 2023.
The  net debt  to EBITDA  ratio was  2.6 at the  reporting date  (2.8 as  at 31
December 2023).

As at 31 March 2024, the Group's cash and cash equivalents amounted to EUR 48.9
million  (EUR 41.9 million as  at 31 December 2023) and  the Group had EUR 75.0
million  in unused credit  lines (EUR 75.0 million  as at 31 December 2023). The
total  liquidity buffer  (cash, cash  equivalents and  unused credit facilities)
amounted to EUR 123.9 million (EUR 116.9 million as at 31 December 2023). In the
first  quarter of 2024, the Group repaid loans  in the total amount of EUR 16.0
million (EUR 19.3 million the during first of 2023). The current trade and other
payables amounted to EUR 90.0 million (EUR 85.4 million as at 31 December 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.

The  Management Board of the Group has prepared a proposal to the Annual General
Meeting of Shareholders to be held on 7 May 2024 to pay a dividend of 0.06 euros
per share in 2024 for the financial year of 2023.

Key Figures

 For the period                                 Q1 2024     Q1 2023     Q1 2022
-------------------------------------------------------------------------------
 Revenue (EUR million)                            160.4       171.2       106.1

 Gross profit/loss (EUR million)                   13.8        24.8       -19.9

 EBITDA¹ (EUR million)                             34.5        27.1       -11.0

 EBIT¹ (EUR million)                                9.8         1.9       -34.6

 Net profit/loss for the period (EUR
 million)                                           2.6        -5.4       -40.0



 Depreciation and amortisation (EUR
 million)                                          24.6        25.2        23.7

 Capital expenditures¹ ²(EUR million)               6.3        11.5         0.0

 Weighted average number of ordinary shares
 outstanding                                743 569 064 743 569 064 743 569 064

 Earnings/loss per share¹ (EUR)                   0.003      -0.007      -0.054



 Number of passengers                         1 102 738   1 049 777     720 261

 Number of cargo units                           84 950      86 732     101 938

 Average number of employees                      4 888       4 883       4 634



 As at                                       31.03.2024  31.03.2023  31.03.2022
-------------------------------------------------------------------------------
 Total assets (EUR million)                     1 548.6     1 672.1     1 560.2

 Total liabilities (EUR million)                  760.0       970.5       907.6

 Interest-bearing liabilities (EUR million)       629.9       831.8       789.5

 Net debt¹ (EUR million)                          581.0       735.4       688.5

 Net debt to EBITDA¹                                2.6         4.2        12.8

 Total equity (EUR million)                       788.6       701.6       652.5

 Equity ratio¹ (%)                                  51%         42%         42%



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

 Shareholders' equity per share (EUR)              1.06        0.94        0.88



 Ratios¹                                        Q1 2024     Q1 2023     Q1 2022
-------------------------------------------------------------------------------
 Gross margin (%)                                  8.6%       14.5%      -18.7%

 EBITDA margin (%)                                21.5%       15.8%      -10.3%

 EBIT margin (%)                                   6.1%        1.1%      -32.6%

 Net profit/loss margin (%)                        1.6%       -3.2%      -37.7%



 ROA (%)                                           7.6%        4.6%       -2.7%

 ROE (%)                                          11.4%        7.1%       -9.2%

 ROCE (%)                                          9.1%        6.0%       -3.3%

(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

 Unaudited, in thousands of EUR                                Q1 2024  Q1 2023
-------------------------------------------------------------------------------
 Revenue                                                       160 402  171 245

 Cost of sales                                                -146 603 -146 463
-------------------------------------------------------------------------------
 Gross profit/loss                                              13 799   24 782



 Sales and marketing expenses                                   -9 769   -9 090

 Administrative expenses                                       -12 745  -14 112

 Other operating income                                         19 377      285

 Other operating expenses                                         -827       -8
-------------------------------------------------------------------------------
 Result from operating activities                                9 835    1 857



 Finance income                                                    228      355

 Finance costs                                                  -7 683   -7 957
-------------------------------------------------------------------------------
 Profit/loss before income tax                                   2 380   -5 745



 Income tax                                                        192      321



 Net profit/loss for the period                                  2 572   -5 424

 Net profit/loss for the period attributable to equity
 holders of the Parent                                           2 572   -5 424



 Other comprehensive income

 Items that may be reclassified to profit or loss

 Exchange differences on translating foreign operations            191       74
-------------------------------------------------------------------------------
 Other comprehensive income for the period                         191       74



 Total comprehensive profit/loss for the period                  2 763   -5 350

 Total comprehensive profit/loss for the period attributable
 to equity holders of the Parent                                 2 763   -5 350



 Basic and diluted profit/loss per share (in EUR)                0.003   -0.007
-------------------------------------------------------------------------------



Consolidated statement of financial position

 Unaudited, in thousands of EUR                31.03.2024 31.03.2023 31.12.2023
-------------------------------------------------------------------------------
 ASSETS

 Cash and cash equivalents                         48 872     96 455     41 921

 Trade and other receivables                       30 718     33 492     31 766

 Prepayments                                       22 411     15 873      7 661

 Prepaid income tax                                   193         35        193

 Inventories                                       42 192                41 411

 Short-term intangible assets                       1 481          0          0

 Current assets                                   145 867    186 698    122 952
-------------------------------------------------------------------------------


 Investments in equity-accounted investees              0         75          0

 Other financial assets and prepayments               499      3 992      4 794

 Deferred income tax assets                        21 840     21 840     21 840

 Investment property                                  300        300        300

 Property, plant and equipment                  1 353 435  1 428 058  1 377 664

 Intangible assets                                 26 663     31 089     27 671
-------------------------------------------------------------------------------
 Non-current assets                             1 402 737  1 485 354  1 432 269

 TOTAL ASSETS                                   1 548 604  1 672 052  1 555 221



 LIABILITIES AND EQUITY

 Interest-bearing loans and borrowings            104 486    169 986    104 097

 Trade and other payables                          89 969     87 668     85 406

 Payables to owners                                     6          6          6

 Income tax liability                                  10         35         10

 Deferred income                                   40 163     50 928     34 788
-------------------------------------------------------------------------------
 Current liabilities                              234 634    308 623    224 307



 Interest-bearing loans and borrowings            525 381    661 848    545 160
-------------------------------------------------------------------------------
 Non-current liabilities                          525 381    661 848    545 160
-------------------------------------------------------------------------------
 Total liabilities                                760 015    970 471    769 467



 Share capital                                    349 477    349 477    349 477

 Share premium                                        663        663        663

 Reserves                                          66 807     65 925     67 056

 Retained earnings                                371 642    285 516    368 558
-------------------------------------------------------------------------------
 Equity attributable to equity holders of the
 Parent                                           788 589    701 581    785 754

 Total equity                                     788 589    701 581    785 754
-------------------------------------------------------------------------------
 TOTAL LIABILITIES AND EQUITY                   1 548 604  1 672 052  1 555 221


Consolidated statement of cash flows

 Unaudited, in thousands of EUR                               Q1 2024 Q1 2023
-----------------------------------------------------------------------------


 CASH FLOWS FROM OPERATING ACTIVITIES

 Net profit/loss for the period                                 2 572  -5 424

 Adjustments                                                   13 863  32 502

 Changes in:

 Receivables and prepayments related to operating activities   -9 208  -8 606

 Inventories                                                   -2 262    -878

 Liabilities related to operating activities                   11 625   8 039
-----------------------------------------------------------------------------
 Changes in assets and liabilities                                155  -1 445

 Cash generated from operating activities                      16 590  25 633

 Income tax repaid/paid                                            -7     -47
-----------------------------------------------------------------------------
 NET CASH FROM/USED OPERATING ACTIVITIES                       16 583  25 586



 CASH FLOWS FROM INVESTING ACTIVITIES

 Purchase of property, plant, equipment and intangible assets  -6 327 -11 510

 Proceeds from disposals of property, plant, equipment         24 436      79

 Interest received                                                228     355
-----------------------------------------------------------------------------
 NET CASH USED IN INVESTING ACTIVITIES                         18 337 -11 076



 CASH FLOWS FROM FINANCING ACTIVITIES

 Repayment of loans received                                  -15 970 -19 307

 Change in overdraft                                                0     -15

 Payment of lease liabilities                                  -4 669  -4 435

 Interest paid                                                 -6 972  -8 121

 Payment of transaction costs related to loans                   -358  -1 112
-----------------------------------------------------------------------------
 NET CASH FROM/USED IN FINANCING ACTIVITIES                   -27 969 -32 990



 TOTAL NET CASH FLOW                                            6 951 -18 480
-----------------------------------------------------------------------------


 Cash and cash equivalents at the beginning of period          41 921 114 935

 Change in cash and cash equivalents                            6 951 -18 480
-----------------------------------------------------------------------------
 Cash and cash equivalents at the end of period                48 872  96 455



Anneli Simm
Investor Relations Manager

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