Market announcement

Title

AS Tallink Grupp Unaudited Consolidated Interim Report for the Q4 and 12 months of 2024

Message

The results of AS Tallink Grupp for the Q4 and 12 months 2024 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_MDcwMmQ5OTEtYjI5OC00YjZkLTlmMzUtODUxOTY1ZTEyOWY4%40thread.v2/0
?context=%7b%22Tid%22%3a%2286359415-f0d5-4ea5-bb32-
42128c4493be%22%2c%22Oid%22%3a%22fbc24b3a-8623-42c6-8311-65b8899e63dd%22%7d) we
kindly ask participants to provide their questions latest by 11:00 am by email
to: [email protected] (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=1342622&lang=en).

In  the financial year 2024 (1 January -  31 December), AS Tallink Grupp and its
subsidiaries  (hereinafter  referred  to  as  "the  Group")  carried  5 580 016
passengers,  which is 2.2% less  than in the  financial year 2023. The number of
cargo  units  transported  decreased  by  6.4% compared  to  the  previous  year
amounting to 303 234. The number of passenger vehicles was down by 7.5% year-on-
year and amounted to 777 592.

The  Group's unaudited consolidated  revenue amounted to  EUR 785.8 million (EUR
835.3 million  in the financial year 2023), down by 5.9% year-on-year. Unaudited
EBITDA  was EUR 175.2 million (EUR 214.5 million in the financial year 2023) and
the  unaudited net profit for the  period was EUR 40.3 million (EUR 78.9 million
in the financial year 2023).

The  following operational  factors impacted  the Group's  revenue and operating
results in the financial year 2024:

  * Demand continued to be affected by low consumer and business confidence
    levels, the economic challenges in the Group's core markets and global
    geopolitical tensions.
  * As at the end of the financial year, the Group operated 14 vessels including
    2 shuttle vessels, 2 cargo vessels, 5 operating cruise ferries, 3 vessels
    that were chartered out (4 at the beginning of the year) and 2 vessels that
    were in lay-up.
  * The Group extended the charter agreement of the cruise ferry Galaxy I until
    October 2025 with the extension option of 6+6 months and signed an agreement
    for chartering of the cruise ferry Silja Europa until June 2025 with the
    extension option of 7+6+6 months at the end of the agreement term.
  * The Group sold the cruise ferry Isabelle in January 2024.
  * The Group operated 3 hotels in Tallinn and 1 in Riga.
  * The Group's net debt was EUR 537.7 million as at the end of the financial
    year (EUR 555.7 million as at 30 September 2024) bringing the net debt to
    EBITDA ratio to 3.07 as at 31 December 2024.
  * In the financial year 2024, total loan repayment and related interest
    expense amounted to EUR 116.1 million.
  * Payment of dividends in the amount of EUR 44.6 million and related income
    tax expense in the amount of EUR 9.2 million.
  * As a result of the voluntary takeover bid, the shareholding of AS Infortar,
    the core shareholder of the Group, increased from 46.8% to 68.5% as at 9
    August 2024. AS Tallink Grupp continues as an independent listed company
    also after AS Infortar become the majority shareholder of the Group.
  * The Group continues to focus on cost efficiencies from the 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 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 2024, the  Group's total  revenue decreased by EUR 49.5
million to EUR 785.8 million compared to EUR 835.3 million in the financial year
2023.

Revenue  from route operations (the Group's core business) decreased by EUR 6.9
million  to EUR 638.9 million  compared to the  financial year 2023. The segment
result  from route operations (the Group's  core business) amounted to EUR 81.5
million, down by EUR 25.7 million compared to the financial year 2023.

The number of passengers carried on the Estonia-Finland route increased by 2.5%
in  year-on-year comparison. The number of  transported cargo units decreased by
5.1%. Revenue  from the Estonia-Finland  route increased by  EUR 14.8 million to
EUR  312.8 million and  the segment  result increased  by EUR 2.3 million to EUR
81.3 million,  year-on-year. The segment reflects  the operations of two shuttle
vessels,  MyStar and Megastar, and  the cruise ferry Victoria  I except for from
31 May 2024 until 31 August 2024 when the Tallinn-Helsinki route was operated by
two  shuttle  vessels  as  the  cruise  ferry  Victoria  I operated the Tallinn-
Stockholm route.

In  the  financial  year  2024, the  year-on-year  decrease  in  the  number  of
passengers  on Finland-Sweden routes was  15.4%. The number of transported cargo
units  increased by 3.4%. The  routes' revenue decreased  by EUR 28.3 million to
EUR 228.7  million and the  segment result decreased  by EUR 20.9 million to EUR
2.8 million,  year-on-year. The  segment reflects  the operations  of one cruise
ferry on the Turku-Kapellskär route until 31 May 2024 and on the Turku-Stockholm
route  from 31 May 2024 as well as  two cruise ferries on the Helsinki-Stockholm
route.

On  Estonia-Sweden routes  the number  of carried  passengers increased by 8.0%
while  the number of transported cargo  units decreased by 19.6% compared to the
financial   year   2023. Year-on-year,  the  revenue  of  Estonia-Sweden  routes
increased by EUR 6.6 million to EUR 97.4 million. The segment result declined by
EUR  7.1 million to a loss of EUR 2.6 million. Estonia-Sweden routes reflect the
operation  of two cargo vessels on  the Paldiski-Kapellskär route and one cruise
ferry  on the  Tallinn-Stockholm route.  However, during  the summer peak season
from  31 May  to  31 August  2024 the  Tallinn-Stockholm  route  was operated in
addition to cargo vessels with two cruise ferries - Victoria I and Baltic Queen.

Revenue  from the  segment Other  decreased by  a total  of EUR 43.2 million and
amounted to EUR 152.8 million. The decrease was mainly driven by less vessels on
charter.  As at the end  of the financial year  2024, the Group had 3 vessels on
charter (end of the financial year 2023: 5 vessels on charter).

At the end of the financial year 2024, the following vessels were chartered out:

  * The shuttle vessel James Joyce (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. As the charterer decided not to use the
    extension option the agreement expired in January 2025. Starting from
    February 2025 the shuttle vessel operates the Paldiski-Kapellskär route.
  * The cruise ferry Galaxy I was chartered out in September 2022. In October
    2024, the agreement was extended by 12 months until October 2025 with the
    option of extending the agreement at the end of the agreement period by 6+6
    months.
  * The cruise ferry Silja Europa was chartered out in August 2022. The new
    charter agreement from December 2024 is effective from 1 January 2025 for
    six months. The agreement includes the option of extending the agreement at
    the end of the agreement period by another 7+6+6 moths.

Earnings

In  the  financial  year  2024, the  Group's  gross profit declined by EUR 50.3
million to EUR 153.6 million compared to EUR 203.8 million in the financial year
2023. EBITDA declined by EUR 39.3 million and amounted to EUR 175.2 million.

Amortisation  and depreciation expense decreased by EUR 3.5 million to EUR 97.8
million year-on-year.

As  a result of decreased outstanding  loan balance and declining interest rates
net  finance costs declined by EUR  7.3 million year-on-year to EUR 28.3 million
in the financial year 2024 (EUR 35.5 million in the financial year 2023).

The  Group's  unaudited  net  profit  for  the financial year 2024 was EUR 40.3
million  or EUR  0.054 per share  compared to  EUR 78.9 million or EUR 0.106 per
share in the financial year 2023.

Investments

The  Group's investments in the financial year 2024 amounted to EUR 22.4 million
(EUR  28.2 million  in  the  financial  year  2023). 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  financial year  2024, the Group's  net debt amounted to EUR
537.7 million,  down by EUR 18.0 million compared to the end of third quarter of
2024. The  net debt to EBITDA  ratio was 3.07 at the  reporting date (2.98 as at
30 September 2024).

As  at 31 December 2024, the  Group's cash and  cash equivalents amounted to EUR
18.7 million  (EUR 32.6 million as  at 30 September 2024) and  the Group had EUR
75.0 million in unused credit lines (EUR 75.0 million as at 30 September 2024).
The total liquidity buffer (cash, cash equivalents and unused credit facilities)
amounted to EUR 93.7 million (EUR 107.6 million as at 30 September 2024).

The  decline in cash and cash equivalents  in the financial year 2024 was driven
by  the payment of dividends (EUR 44.6 million) and related income tax (EUR 4.9
million)  as well as  the repayment of  loans and related  interest expense (EUR
116.1 million).  In the financial year 2023 the  net repayment of loans amounted
to EUR 189.6 million.

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  Annual  General  Meeting  of  Shareholders  held  on  7 May  2024 adopted a
resolution  to pay  dividends of  EUR 0.06 per  share for  the financial year of
2023. The  dividends in the amount  of EUR 44.6 million were  paid out on 3 July
2024.

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 2025 for the financial year of 2024.

Results of the Q4 2024

In  the fourth  quarter 2024 (1  October -  31 December), the Group carried 1.3
million passengers which is down by 2.2% compared to the same period last year.

The  Group's unaudited revenue for the  period decreased by 5.3% and amounted to
EUR 183.5 million (EUR 193.7 million in October-December 2023). Unaudited EBITDA
was  EUR 25.7 million (EUR 36.8 million  in October-December 2023) and unaudited
net  loss was EUR 5.2 million (net profit of EUR 2.2 million in October-December
2023).

The financial results of Q4 2024 were impacted by the following factors:

  * Low consumer and business confidence in the home markets and geopolitical
    tensions.
  * Two vessels in lay-up including the cruise vessel Romantika the charter
    agreement of which was prematurely terminated in September 2023 and MV
    Superfast IX (formerly Atlantic Vision) the charter agreement of which ended
    in May 2024. The Group has not been able to find profitable operations for
    both vessels in lay-up.
  * Repayment of long-term loans and related interest expenses in the amount of
    EUR 34.5 million.
  * In October 2024, the charter agreement of the cruise ferry Galaxy I was
    extended by 12 months until October 2025 with the option of extending the
    agreement at the end of the agreement period by another 6+6 months.


Key Figures

 For the                                               Jan-Dec     Jan-Dec     Jan-Dec
 period            Q4 2024     Q4 2023     Q4 2022        2024        2023        2022
              ------------------------------------------------------------------------
 Revenue (EUR
 million)            183.5       193.7       203.7       785.8       835.3       771.4

 Gross
 profit/loss
 (EUR million)        25.9        34.9        41.8       153.6       203.8       113.5

 EBITDA¹ (EUR
 million)             25.7        36.8        50.4       175.2       214.5       135.8

 EBIT¹ (EUR
 million)              1.3        11.4        23.5        77.4       113.3        37.7

 Net
 profit/loss
 for the
 period (EUR
 million)             -5.2         2.2        16.7        40.3        78.9        13.9



 Depreciation
 and
 amortisation
 (EUR million)        24.4        25.5        27.0        97.8       101.2        98.1

 Capital
 expenditures¹
 ²(EUR
 million)              5.9         5.9       179.7        22.4        28.2       203.3

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

 Earnings/loss
 per share¹
 (EUR)              -0.007       0.003       0.022       0.054       0.106       0.019



 Number of
 passengers      1 310 014   1 338 921   1 296 047   5 580 016   5 705 600   5 462 085

 Number of
 cargo units        64 606      76 198      96 052     303 234     323 990     409 769

 Average
 number of
 employees           4 844       4 879       4 948       4 964       4 879       5 023



 As at          31.12.2024  30.09.2024  30.09.2023  31.12.2024  31.12.2023  31.12.2022
              ------------------------------------------------------------------------
 Total assets
 (EUR million)     1 463.9     1 498.9     1 597.4     1 463.9     1 555.2     1 691.6

 Total
 liabilities
 (EUR million)       681.6       711.5       813.7       681.6       769.5       984.7

 Interest-
 bearing
 liabilities
 (EUR million)       556.4       588.3       684.8       556.4       649.3       853.5

 Net debt¹
 (EUR million)       537.7       555.7       620.4       537.7       607.3       738.6

 Net debt to
 EBITDA¹               3.1         3.0         2.7         3.1         2.8         5.4

 Total equity
 (EUR million)       782.3       787.4       783.7       782.3       785.8       706.9

 Equity ratio¹
 (%)                   53%         53%         49%         53%         51%         42%



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

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



                                                       Jan-Dec     Jan-Dec     Jan-Dec
 Ratios¹           Q4 2024     Q4 2023     Q4 2022        2024        2023        2022
              ------------------------------------------------------------------------
 Gross margin
 (%)                 14.1%       18.0%       20.5%       19.5%       24.4%       14.7%

 EBITDA margin
 (%)                 14.0%       19.0%       24.8%       22.3%       25.7%       17.6%

 EBIT margin
 (%)                  0.7%        5.9%       11.5%        9.9%       13.6%        4.9%

 Net
 profit/loss
 margin (%)          -2.8%        1.1%        8.2%        5.1%        9.4%        1.8%



 ROA (%)              5.1%        7.0%        2.4%        5.1%        7.0%        2.4%

 ROE (%)              5.2%       10.6%        2.1%        5.2%       10.6%        2.1%

 ROCE (%)             6.0%        8.4%        3.1%        6.0%        8.4%        3.1%


1 Alternative performance measures based on ESMA guidelines are disclosed in the
Alternative Performance Measures section of 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 2024  Q4 2023     2024     2023
-------------------------------------------------------------------------------
 Revenue                                     183 505  193 737  785 822  835 325

 Cost of sales                              -157 571 -158 809 -632 266 -631 491
-------------------------------------------------------------------------------
 Gross profit/loss                            25 934   34 928  153 556  203 834



 Sales and marketing expenses                -11 502  -11 381  -43 849  -42 162

 Administrative expenses                     -13 837  -14 978  -52 846  -52 472

 Impairment loss on receivables

 Other operating income                          816    2 893   21 684    4 275

 Other operating expenses                       -114     -103   -1 115     -171
-------------------------------------------------------------------------------
 Result from operating activities              1 297   11 359   77 430  113 304



 Finance income                                  305      528      938    1 332

 Finance costs                                -6 822  -10 061  -29 198  -36 864
-------------------------------------------------------------------------------
 Share of profit/loss of equity-accounted
 investees                                         0      -75        0      -75
-------------------------------------------------------------------------------
 Profit/loss before income tax                -5 220    1 751   49 170   77 697



 Income tax                                        0      413   -8 896    1 175



 Net profit/loss for the period               -5 220    2 164   40 274   78 872

 Net profit/loss for the period
 attributable to equity holders of the
 Parent                                       -5 220    2 164   40 274   78 872



 Other comprehensive income

 Items that may be reclassified to profit
 or loss

 Exchange differences on translating
 foreign operations                              -26     -201      332     -172
-------------------------------------------------------------------------------
 Other comprehensive income for the period       -26     -201      332     -172



 Total comprehensive profit/loss for the
 period                                       -5 246    1 963   40 606   78 700

 Total comprehensive profit/loss for the
 period attributable to equity holders of
 the Parent                                   -5 246    1 963   40 606   78 700



 EPS (in EUR)                                 -0.007    0.003    0.054    0.106

 Diluted EPS (in EUR)                         -0.007    0.003    0.054    0.106
-------------------------------------------------------------------------------


Consolidated statement of financial position

 Unaudited, in thousands of EUR                      31.12.2024 31.12.2023
--------------------------------------------------------------------------
 ASSETS

 Cash and cash equivalents                               18 705     41 921

 Trade and other receivables                             25 268     31 766

 Prepayments                                              8 764      7 661

 Prepaid income tax                                           0        193

 Inventories                                             48 083     41 411

 Short-term intangible assets                             6 901          0
--------------------------------------------------------------------------
 Current assets                                         107 721    122 952



 Investments in equity-accounted investees                    0          0

 Other financial assets and prepayments                     518      4 794

 Deferred income tax assets                              21 840     21 840

 Investment property                                        300        300

 Property, plant and equipment                        1 310 000  1 377 664

 Intangible assets                                       23 562     27 671
--------------------------------------------------------------------------
 Non-current assets                                   1 356 220  1 432 269

 TOTAL ASSETS                                         1 463 941  1 555 221



 LIABILITIES AND EQUITY

 Interest-bearing loans and borrowings                  104 549    104 097

 Trade and other payables                                95 146     85 406

 Payables to owners                                           6          6

 Income tax liability                                         7         10

 Deferred income                                         30 102     34 788
--------------------------------------------------------------------------
 Current liabilities                                    229 810    224 307



 Interest-bearing loans and borrowings                  451 825    545 160
--------------------------------------------------------------------------
 Non-current liabilities                                451 825    545 160
--------------------------------------------------------------------------
 Total liabilities                                      681 635    769 467



 Share capital                                          349 477    349 477

 Share premium                                              663        663

 Reserves                                                65 901     67 056

 Retained earnings                                      366 265    368 558
--------------------------------------------------------------------------
 Equity attributable to equity holders of the Parent    782 306    785 754

 Total equity                                           782 306    785 754
--------------------------------------------------------------------------
 TOTAL LIABILITIES AND EQUITY                         1 463 941  1 555 221

Consolidated statement of cash flows

                                                               Jan-Dec  Jan-Dec
 Unaudited, in thousands of EUR               Q4 2024 Q4 2023     2024     2023
-------------------------------------------------------------------------------


 CASH FLOWS FROM OPERATING ACTIVITIES

 Net profit/loss for the period                -5 220   2 164   40 274   78 872

 Adjustments                                   30 975  34 603  117 243  135 324

 Changes in:

 Receivables and prepayments related to
 operating activities                           7 273   6 622    5 705    1 340

 Inventories                                   -4 638  -1 653  -13 573   -1 446

 Liabilities related to operating activities    2 535  -7 754    8 505  -10 457
-------------------------------------------------------------------------------
 Changes in assets and liabilities              5 170  -2 785      637  -10 563

 Cash generated from operating activities      30 925  33 982  158 154  203 633

 Income tax repaid/paid                            11     -75      164     -186
-------------------------------------------------------------------------------
 NET CASH FROM/USED OPERATING ACTIVITIES       30 936  33 907  158 318  203 447



 CASH FLOWS FROM INVESTING ACTIVITIES

 Purchase of property, plant, equipment and
 intangible assets                             -5 923  -5 882  -22 260  -28 131

 Proceeds from disposals of property, plant,
 equipment                                         39     369   24 555      613

 Interest received                                305     528      938    1 332
-------------------------------------------------------------------------------
 NET CASH USED IN INVESTING ACTIVITIES         -5 579  -4 985    3 233  -26 186



 CASH FLOWS FROM FINANCING ACTIVITIES

 Proceeds from loans received                       0  59 972        0   59 972

 Repayment of loans received                  -27 553 -95 954  -87 045 -251 431

 Change in overdraft                                0       0        0      -15

 Payment of lease liabilities                  -4 772  -4 494  -18 659  -21 519

 Interest paid                                 -6 936  -7 615  -29 095  -32 827

 Payment of transaction costs related to
 loans                                              0  -3 343     -450   -4 455

 Dividends paid                                     0       0  -44 614        0

 Income tax on dividends paid                       0       0   -4 904        0
-------------------------------------------------------------------------------
 NET CASH FROM/USED IN FINANCING ACTIVITIES   -39 261 -51 434 -184 767 -250 275



 TOTAL NET CASH FLOW                          -13 904 -22 512  -23 216  -73 014
-------------------------------------------------------------------------------


 Cash and cash equivalents at the beginning
 of period                                     32 609  64 433   41 921  114 935

 Change in cash and cash equivalents          -13 904 -22 512  -23 216  -73 014
-------------------------------------------------------------------------------
 Cash and cash equivalents at the end of
 period                                        18 705  41 921   18 705   41 921


Anneli Simm
Investor Relations Manager

AS Tallink Grupp
Sadama 5
10111 Tallinn, Estonia
E-mail [email protected] (mailto:[email protected])
Phone: +372 56157170