Market announcement

Title

AS Tallink Grupp Unaudited Consolidated Interim Report Q2 2020

Message

In the second quarter (1 April - 30 June) of the 2020 financial year, Tallink
Grupp AS and its subsidiaries (the Group) carried 388 thousand passengers, which
is 85.4% less than in the second quarter last year. The number of cargo units
transported decreased by 12.8% in the same comparison. The Group's unaudited
consolidated revenue decreased by 74.6% or EUR 191.1 million to a total of EUR
65.0 million. Unaudited EBITDA was EUR 2.4 million (EUR 50.7 million in Q2
2019) and unaudited net loss was EUR 27.4 million (net profit of EUR 14.9
million in Q2 2019).

In the second quarter, the Group's revenue and operating results were impacted
by the following operational factors:

  * Covid-19 and related travel restrictions.
  * 978 trips less due to suspended operations.
  * Restrictions on maximum capacity.

Impact of Covid-19 and travel restrictions

Due to the global outbreak of Covid-19, the state of emergency was declared in
most of the Group's home markets in mid-March together with imposing travelling
and movement restrictions. The restrictions were gradually removed starting from
mid-May. However, the restrictions remain in force for international passenger
traffic to and from Sweden.

The impact of the Covid-19 on the Group's second quarter operations and results
has been very extensive. The combined passenger volume of April and May was down
by 93% compared to last year. There was a slight recovery in June following
Finland lifting its travel restrictions. Still, the number of passengers carried
in the month was 72% lower compared to June 2019. Customer profiles changed from
a mix of home and foreign markets to mainly home.

In the situation of extensive travel restrictions and lower demand, the focus
was shifted to cost and cash flow management to ensure the sustainability of the
Group's core business. Thus, non-critical costs and investments were scaled down
and several operational changes were made.

  * Operations of the Tallinn-Stockholm route with vessels Victoria I and Baltic
    Queen has been suspended since 15 March.
  * Daily operations of the Riga-Stockholm route with vessels Romantika and
    Isabelle has been suspended since 16 March.
  * Operations of the Tallinn-Helsinki route cruise ferry Silja Europa were
    suspended from 17 March to 12 June and shuttle vessel Star from 18 March to
    14 May.
  * Operations of the Helsinki-Stockholm route with vessels Silja Serenade and
    Silja Symphony has been suspended since 19 March.
  * Operations of Tallink Hotel Riga and Tallink Spa & Conference Hotel, which
    were suspended from 18 March, were reopened on 1 and 12 June, respectively.
    Tallink Express Hotel in Tallinn remained open in limited capacity in the
    second quarter. Tallink City Hotel has remained closed since 18 March.

Throughout the quarter our vessels have been flexibly rerouted to other routes.

  * In cooperation with Estonian Ministry of Economic Affairs and Communication,
    the shuttle vessel Star was rerouted to the Paldiski-Sassnitz route from 19
    March to 18 April to ensure continuing transportation of goods between the
    Baltic and the Nordics and western Europe.
  * The cruise ferry Victoria I was rerouted to the Tallinn-Helsinki route from
    7 June and the cruise ferry Baltic Queen to the Tallinn-Mariehamn route to
    perform 2 special cruises in June.
  * The cruise ferry Romantika operated 6 special return trips in the second
    quarter on the Riga-Stockholm route to transport cargo and commuters. The
    cruise ferry Isabelle was rerouted to the Paldiski-Kapellskär route from 7
    June.
  * The cruise ferry Silja Serenade was rerouted to the Helsinki-Riga route from
    26 June.

The Estonia-Finland routes shuttle vessel Megastar and cargo vessel Seawind, the
Paldiski-Kapellskär route cargo vessel Regal Star and the Turku-Stockholm route
cruise ferries Baltic Princess and Galaxy continued operating to ensure
international movement of cargo.

Changes concerning workload and remuneration of personnel
Due to the Covid-19 situation the following changes relating to personnel were
in force in the second quarter of 2020:

  * The workload and remuneration of all Estonian personnel was reduced to 70%
    for three months.
  * Most of the Finnish personnel were on unpaid leave, except the staff on
    duty.
  * The workload of Swedish personnel was reduced to 40% in April and to 20% in
    May and June, except for the staff on duty on vessels.
  * The workload and remuneration of all Latvian personnel was reduced to 70%
    for two months.
  * The Members of Supervisory Board of Tallink Grupp AS waived their
    remuneration for three months.
  * The Chairman of the Management Board requested his salary to be reduced to
    50% and other Management Board Members' salaries were reduced to 70% for
    three months.

During the reporting period, collective redundancies process was carried out,
including among others hotel personnel and onboard personnel. To date the
redundancies have affected approximately 500 employees. Additional collective
redundancies process has commenced in the second quarter, which potentially
affects another 700 employees by the end of the third quarter.

The average number of employees during the quarter and the number of employees
at the end of quarter were, respectively, 10.7% and 15.0% lower compared to the
same period a year ago.

Combination of changes relating to personnel and salary compensation support
measures offered by the states resulted in a decrease by EUR 29.7 million in
personnel expenses in the second quarter of 2020 compared to same period last
year.

Support measures
Starting from March the Group has received a total of EUR 17 million in various
direct financial support. Majority of the support was received in the second
quarter of 2020.

The Group used temporary salary compensation measures offered by the states.

From 19 March to 18 June, the operations of Megastar on the Tallinn-Helsinki
route and the Turku-Stockholm route two vessels were backed by Finland's
National Emergency Supply Agency's to ensure the cargo supply. The support was
of crucial help in covering the operating expenses, which were already reduced
to minimum, and thereby reducing the operating losses.

Estonian parliament approved the change in legislation granting exemption from
ships' fairway dues for twelve months starting from April 2020.

Activities to improve liquidity
The Supervisory Board proposed to the shareholders' annual general meeting not
to pay dividends from net profit for 2019.

An instalment for the construction of the shuttle vessel MyStar, originally
scheduled for the second quarter of 2020, was postponed to the third quarter of
2020 after negotiations with the shipyard.

In order to relieve the liquidity issues caused by the Covid-19 situation, the
Group's companies were allowed to postpone the tax payments. At the end of the
second quarter, the postponed tax liability amounted to EUR 11.1 and will be
paid in even amounts until autumn 2021.

During the quarter the Group negotiated with existing and new financial
institutions financing and payment terms including waivers of loan covenants,
deferral of loan principal repayments for the year 2020 and new loan agreements.
As a result, the Group's liquidity improved in great extent and therefore the
financial report has been prepared according to going concern principle.

Sales and segments

In the second quarter of 2020, the Group's total revenue decreased by EUR 191.1
million to EUR 65.0 million. Total revenue in the second quarter of 2019 and
2018 was EUR 256.1 million and EUR 255.4 million, respectively.

Revenue from route operations (core business) decreased by EUR 179.5 million to
EUR 56.4 million. The passenger operations and segment results on all routes
were significantly affected by Covid-19 situation and travel restrictions.

The number of passengers carried on the Estonia-Finland routes decreased by
76.7% compared to last year and the number of transported cargo units decreased
by 6.9%. Estonia-Finland routes' revenue decreased by EUR 61.3 million to EUR
33.6 million. The segment result decreased by EUR 23.9 million to EUR -2.4
million. The Estonia-Finland routes' results include also the operations of the
Paldiski-Sassnitz and the Tallinn-Mariehamn routes. The Finland's National
Emergency Supply Agency support to partially cover the operating expenses of the
shuttle vessel Megastar is reported as other operating income.

The number of passengers carried on the Finland-Sweden routes decreased by
93.0%, while the number of transported cargo units decreased only by 8.7%. The
route's revenue decreased by EUR 73.4 million to EUR 16.2 million and the
segment result decreased by EUR 27.6 million to EUR -18.4 million. Finland-
Sweden results include also the operations of the Helsinki-Riga route as well as
the expenses related to the suspended Helsinki-Stockholm route. The Finland's
National Emergency Supply Agency support to partially cover the operating
expenses of the Turku-Stockholm route operations is reported as other operating
income.

On the Estonia-Sweden routes the number of passengers carried decreased by
96.9% and the number of transported cargo units decreased by 25.1%. The segment
revenue decreased by EUR 26.1 million to EUR 5.2 million and the segment result
decreased by EUR 7.2 million to EUR -4.9 million. Estonia-Sweden routes' results
reflect the operations of the Paldiski-Kapellskär route and the expenses related
to the suspended operations of the Tallinn-Stockholm route.

There were no daily operations on the Latvia-Sweden route during the quarter.
The results reflect 6 return trips performed with permission from the
authorities as well as incurred operating expenses of the suspended route. The
number of transported passengers and cargo units decreased by 98.5% and 89.4%,
respectively. The route's revenue decreased by EUR 18.7 million compared to last
year and amounted to EUR 1.3 million. The segment result decreased by EUR 4.5
million to EUR -4.2 million.

Revenue from the segment other decreased by a total of EUR 13.5 million and
amounted to EUR 8.7 million. The decrease was mainly driven by the suspended
operations of 3 hotels, which resulted in 95.8% lower accommodation sales, and
significantly lower revenue from services provided at the hotels. The segment
revenue was positively impacted by a significant increase in online shop sales,
opening of the first four Burger King restaurants and revenue from providing
mooring services at the Tallinn Old City Harbour.

Earnings

In the second quarter of 2020, the Group's gross profit decreased by EUR 82.5
million compared to the same period last year, amounting to EUR -21.9 million.
EBITDA decreased by EUR 48.3 million and amounted to EUR 2.4 million.

The Group's second quarter financial result was impacted by the following
factors:

  * Significant cut in operating expenses, including significant decrease in
    personnel expenses as a result of collective redundancies, state support
    measures and remuneration cuts.
  * Positive impact from support measures.
  * Positive impact from the absence of dividend payment related corporate
    income tax expense in the amount of EUR 8.1 million as in the second quarter
    last year.

Amortisation and depreciation expense increased by EUR 1.8 million to EUR 25.2
million compared to last year. Net finance costs increased by EUR 0.2 million
compared to the second quarter last year.

The Group's unaudited net loss for the second quarter of 2020 was EUR 27.4
million or EUR 0.041 per share compared to a net profit of EUR 14.9 million or
EUR 0.022 per share in 2019 and net profit of EUR 15.3 million or EUR 0.023 per
share in 2018.

Results of the first 6 months of 2020

In the first 6 months (1 January - 30 June) of the 2020 financial year the Group
carried 2.0 million passengers which is 56.6% less compared to the same period
last year. The Group's unaudited revenue for the period decreased by 49.4% and
amounted to EUR 219.9 million. Unaudited EBITDA for the first 6 months was EUR
1.2 million (EUR 54.5 million, 6 months 2019) and unaudited net loss was EUR
57.6 million (EUR 10.4 million, 6 months 2019 net loss).

The financial result of the first 6 months of 2020 was impacted by following
factors:

  * Suspended operations of vessels and hotels due to the Covid-19 situation and
    the travel restrictions from mid-March.
  * Dockings of six ships totalling 79 days (total of 121 docking days in the
    first 6 months of 2019)

Investments

The Group's investments in the second quarter of 2020 amounted to EUR 14.4
million with the majority arising from the EUR 8.5 million purchase of a ro-pax
vessel Sailor. Investments were made in the ships' technical maintenance,
including works performed during Silja Serenade 10 docking days in April.

Investments were also made in the development of the online booking and sales
systems as well as other administrative systems and in relation to the opening
of four Burger King restaurants.

Dividends

Due to a deteriorated operating environment and considering the Company's long-
term interests, the Supervisory Board proposed to the shareholders' annual
general meeting not to pay dividends from net profit for 2019. On 30 July 2020
(third quarter), the shareholders' annual general meeting decided not to pay
dividends from net profit for 2019.

Financial position

In the second quarter, the Group's net debt increased by EUR 19.2 million to EUR
593.8 million and the net debt to EBITDA ratio was 5.0 at the reporting date.

At the end of the second quarter, total liquidity buffer (cash, cash equivalents
and unused overdraft facilities) amounted to EUR 104.9 million (EUR 123.1
million at 30 June 2019).

At 30 June 2020, the Group's cash and cash equivalents amounted to EUR 21.9
million (EUR 67.1 million at 30 June 2019) and the Group had EUR 83.0 million in
unused overdraft facilities (EUR 56.0 million at 30 June 2019).

Economic Environment

The Group considers Finland, Sweden, Estonia and Latvia its home markets with
the most exposure to the economic developments in Finland. The Group has also
high exposure to the economic developments in Estonia and Sweden.

In the second quarter of 2020 the Group's economic environment was dominated by
the Covid-19 pandemic outbreak and the related restrictions set by governments.
According to the OECD data, the confidence of both the consumers and the
businesses plummeted across all our home markets during the quarter,
particularly in Estonia and Latvia.

For the Group the weaker consumer confidence reflected mainly in the lower
demand for travelling. The demand was also hindered by the imposed travelling
and movement restrictions. The international travel restrictions and reduced air
traffic also effectively meant the absence of demand from the customers from
outside our home markets.

The Covid-19 situation improved enough for gradually lifting the majority of the
restrictions on all our other home markets, except for Sweden, allowing to
restart of some of our passenger operations toward the end of the quarter. The
state-level travelling and border-crossing restrictions effectively allowed to
offer only international cargo operations to and from Sweden.

Although the cargo market fared somewhat better relative to the passenger
business the Covid-19 impact is felt in this area too. Along with the tight
competition, the decreased business confidence materialised as decline both in
the number of cargo units and in the average revenue per unit.

Measured in euros the global fuel prices declined, on average, by 54% in the
second quarter of 2020 compared to a year ago. The Group's overall fuel cost
declined by 56% compared to the same period last year. In addition to the change
in the fuel market price, the change in the cost was affected by the number and
timing of trips as well as an existing fuel price agreement with the price fixed
above the market level.

For the foreseeable future, the key risk has to do with global and regional
developments with the Covid-19 situation and related restrictions on travel and
other economic activities, its economic damage and its impact on local and
international trade.

Events in Q2

Start of construction of the new shuttle vessel MyStar
The physical production process of MyStar started on 6 April 2020 in Rauma
shipyard in Finland with a traditional steel cutting ceremony.

Changes in the Audit Committee
Luke Staniczek was recalled from the Audit Committee and from 17 April, the
Audit Committee continued with three members including Meelis Asi (Chairman of
the Audit Committee), Ain Hanschmidt and Mare Puusaag.

Changes in the Group structure
In April 2020, TLG Agent OÜ, a wholly-owned subsidiary of the Group, was renamed
LNG Shipmanagement OÜ. The main activity of the subsidiary is to provide crewing
service.

In June 2020, Tallink Latvija AS, a wholly-owned subsidiary of the Group,
registered a wholly-owned subsidiary in Latvia - SIA BK Properties. The purpose
of founding the subsidiary is acquisition and holding of real estate properties
for the operation of Burger King restaurants in Latvia.

Charter agreement extension
In May 2020, Baltic SF IX Limited, a wholly-owned subsidiary of the Group, and
Marine Atlantic Inc, a Canadian company with the state participation therein,
concluded to extend the current charter agreement of MV Atlantic Vision (ex.
Superfast IX) for two years, until November 2022. The vessel has been on the
long-term bareboat charter since 14 November 2008.

Increase of overdraft limit
In the second quarter, the Group extended its existing overdraft facility with
Danske Bank A/S by EUR 20.0 million and Nordea Bank Abp by EUR 20.0 million.
After the reporting date, in July 2020, extension of overdraft facility with SEB
Pank AS by EUR 20.0 million was finalized. The increase of the overdraft
facilities helps to improve the Group's liquidity.

Changes in loan agreements
Amendments to loan facility agreements signed by Tallink Grupp AS and all its
lending banks whereby loan principal repayments in the amount of EUR 61 million
for the year 2020 are deferred and added to the last payment of each respective
loan facility came into force on 29 May 2020. The loans' final maturities and
interest margins remained unchanged. Request for waivers of loan covenants were
also approved.

The repayment rescheduling improved significantly the Group's liquidity position
and increased flexibility to maintain sufficient working capital in challenging
economic environment.

Signing of the loan agreement
On 8 June 2020, Tallink Grupp AS and KredEx SA signed a working capital loan
agreement. The total amount of the loan limit is EUR 100 million and the loan
can be drawn in EUR 10-40 million tranches. The interest rate of the three-year
maturity loan is 12-month Euribor +2%.

The loan is secured by mortgages on five vessels ranking after the existing
creditors.

Purchase of ro-pax vessel Sailor
On 30 June 2020, Baltic SF VIII Ltd, a subsidiary of the Group purchased a ro-
pax vessel Sailor from Navirail OÜ. The ship is registered in the Cyprus Ship
Registry and is going to sail under the Estonian flag. The purchase of the ro-
pax vessel will strengthen the Group fleet's cargo capacity.

Fuel price risk management
In the first quarter of 2020, the Group entered into agreements with its main
fuel suppliers and fixed the purchase price of fuel equivalent to about 65% of
its total estimated fuel volume for 2020. Due to the Covid-19 situation, more
flexible terms were negotiated and agreed with one of the fuel suppliers in
April.

Opening of Burger King restaurants
The Group opened its first three Burger King restaurants in Tallinn on 20 May
2020. The fourth restaurant was opened on 15 June 2020. The Group has secured
the locations of its first Burger King restaurants in Latvia and Lithuania, to
be opened in the second half of 2020.

Events after the reporting period and outlook

Prepayment for the new shuttle vessel MyStar
The last prepayment instalments for the new shuttle vessel MyStar in the total
amount of EUR 49.4 million will be made in the third quarter of 2020.

Dividends
On 30 July 2020, the shareholders' general meeting decided not to pay dividend
from net profit for 2019.

Renovation of Tallink City Hotel
Tallink City Hotel in Tallinn will undergo a full-scale renovation from
September 2020. The renovation works are estimated to be finalised by the end of
May 2021 and the hotel reopened in June next year.

Earnings
The Group's earnings are not generated evenly throughout the year. The summer
period is the high season in the Group's operations. In management's opinion and
based on prior experience most of the Group's earnings are generated during the
summer (June-August).

Due to the ongoing Covid-19 situation the earnings outlook for 2020 has become
uncertain and will be largely subject to external factors such as the states'
decisions regarding the timing of lifting of the travel restrictions, allowing
passenger traffic as well as the duration of the recovery period. In the opinion
of the Management Board the Group will not earn profits in 2020 financial year.

Research and development projects
Tallink Grupp AS does not have any substantial ongoing research and development
projects. The Group is continuously seeking opportunities for expanding its
operations in order to improve its results.

The Group is continuously looking for innovative ways to upgrade the ships and
passenger area technology to improve its overall performance through modern
solutions. The most recent project, in collaboration with ports in the Baltic
Sea area and supported by the Connecting Europe Facility (CEF) fund, involves
making preparations for the use of high-voltage shore connection during the
vessels' port stays. Another ongoing collaboration project with Tallinn
University of Technology (TalTech) involves the development of smart car deck
solutions.

In addition, the Group is participating in a programme, funded by the European
Space Agency, with a goal to develop techniques for autonomous navigation for
ships, using a combination of different sensors, machine learning and artificial
intelligence.

Risks
The Group's business, financial position and operating results could be
materially affected by various risks. These risks are not the only ones we face.
Additional risks and uncertainties not presently known to us, or that we
currently believe are immaterial or unlikely, could also impair our business.
The order of presentation of the risk factors below is not intended to be an
indication of the probability of their occurrence or of their potential effect
on our business.

  * Covid-19 situation and developments
  * Accidents, disasters
  * Macroeconomic developments
  * Changes in laws and regulations
  * Relations with trade unions
  * Increase in the fuel prices and interest rates
  * Market and customer behaviour


Key figures

 For the period                                    Q2 2020     Q2 2019 Change %
-------------------------------------------------------------------------------
 Revenue (million euros)                              65.0       256.1   -74.6%

 Gross profit/loss (million euros)                   -21.9        60.6  -136.1%

 EBITDA¹ (million euros)                               2.4        50.7   -95.2%

 EBIT¹ (million euros)                               -22.7        27.4  -183.0%

 Net profit/loss for the period (million
 euros)                                              -27.4        14.9  -283.8%



 Depreciation and amortisation (million euros)        25.2        23.3     7.9%

 Capital expenditures¹ ²(million euros)               14.4        18.5   -22.0%

 Weighted average number of ordinary shares
 outstanding                                   669 882 040 669 882 040     0.0%

 Earnings/loss per share¹                           -0.041       0.022  -283.8%



 Number of passengers                              388 212   2 651 843   -85.4%

 Number of cargo units                              86 755      99 546   -12.8%

 Average number of employees                         6 578       7 363   -10.7%



 As at                                          30.06.2020  31.03.2020 Change %
-------------------------------------------------------------------------------
 Total assets (million euros)                      1 505.9     1 517.8    -0.8%

 Total liabilities (million euros)                   740.5       724.5     2.2%

 Interest-bearing liabilities (million euros)        615.7       591.0     4.2%

 Net debt¹ (million euros)                           593.8       574.5     3.3%

 Net debt to EBITDA¹                                   5.0         3.5    45.7%

 Total equity (million euros)                        765.3       793.2    -3.5%

 Equity ratio¹ (%)                                     51%         52%



 Number of ordinary shares outstanding         669 882 040 669 882 040     0.0%

 Equity per share¹                                    1.14        1.18    -3.5%



 Ratios¹                                           Q2 2020     Q2 2019
-------------------------------------------------------------------------------
 Gross margin (%)                                   -33.7%       23.7%

 EBITDA margin (%)                                    3.7%       19.8%

 EBIT margin (%)                                    -35.0%       10.7%

 Net profit/loss margin (%)                         -42.1%        5.8%



 ROA (%)                                              1.3%        4.0%

 ROE (%)                                              0.3%        4.1%

 ROCE (%)                                             1.5%        4.9%

(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 per share: net profit / 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 margin: gross profit / net sales
EBITDA margin: EBITDA / net sales
EBIT margin: EBIT / net sales
Net profit margin: net profit / 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-Jun  Jan-Jun
 Unaudited, in thousands of EUR              Q2 2020  Q2 2019     2020     2019
-------------------------------------------------------------------------------
 Revenue (Note 3)                             64 962  256 103  219 892  434 973

 Cost of sales                               -86 857 -195 469 -241 959 -363 840
-------------------------------------------------------------------------------
 Gross loss/profit                           -21 895   60 634  -22 067   71 133



 Sales and marketing expenses                 -7 320  -19 212  -21 268  -36 254

 Administrative expenses                      -9 605  -14 443  -23 029  -29 511

 Other operating income                       16 138      439   17 670    1 163

 Other operating expenses                        -57      -11      -79      -25
-------------------------------------------------------------------------------
 Result from operating activities            -22 739   27 407  -48 773    6 506



 Finance income (Note 4)                           0       93        1    1 095

 Finance costs (Note 4)                       -4 588   -4 506   -8 700   -9 837

 Loss before income tax                      -27 327   22 994  -57 472   -2 236



 Income tax                                      -44   -8 104      -97   -8 129



 Net loss for the period                     -27 371   14 890  -57 569  -10 365

 Net loss for the period attributable to
 equity holders of the Parent                -27 371   14 890  -57 569  -10 365



 Other comprehensive income

 Items that may be reclassified to profit or
 loss

 Exchange differences on translating foreign
 operations                                     -504      257       81      422
-------------------------------------------------------------------------------
 Other comprehensive income for the period      -504      257       81      422



 Total comprehensive loss for the period     -27 875   15 147  -57 488   -9 943

 Total comprehensive loss for the period
 attributable to equity holders of the
 Parent                                      -27 875   15 147  -57 488   -9 943



 Loss per share (in EUR, Note 5)              -0.041    0.022   -0.086   -0.015
-------------------------------------------------------------------------------


Consolidated statement of financial position

 Unaudited, in thousands of EUR                30.06.2020 30.06.2019 31.12.2019
-------------------------------------------------------------------------------
 ASSETS

 Cash and cash equivalents                         21 892     67 070     38 877

 Trade and other receivables                       22 434     53 270     37 606

 Prepayments                                       10 641     12 134      6 805

 Prepaid income tax                                     0         46         67

 Inventories                                       37 035     39 326     37 255
-------------------------------------------------------------------------------
 Current assets                                    92 002    171 846    120 610



 Investments in equity-accounted investees            403        407        403

 Other financial assets and prepayments             1 866        326      1 619

 Deferred income tax assets                        18 674     17 934     18 674

 Investment property                                  300        300        300

 Property, plant and equipment (Note 6)         1 349 733  1 373 420  1 347 093

 Intangible assets (Note 7)                        42 898     45 640     44 264
-------------------------------------------------------------------------------
 Non-current assets                             1 413 874  1 438 027  1 412 353

 TOTAL ASSETS                                   1 505 876  1 609 873  1 532 963



 LIABILITIES AND EQUITY

 Interest-bearing loans and borrowings (Note
 8)                                               130 066    108 190     89 198

 Trade and other payables                          86 951    107 626     98 926

 Payables to owners                                     6     33 496          6

 Income tax liability                                  10      8 049          0

 Deferred income                                   37 901     46 635     33 314
-------------------------------------------------------------------------------
 Current liabilities                              254 934    303 996    221 444



 Interest-bearing loans and borrowings (Note
 8)                                               485 593    495 970    488 682
-------------------------------------------------------------------------------
 Non-current liabilities                          485 593    495 970    488 682
-------------------------------------------------------------------------------
 Total liabilities                                740 527    799 966    710 126



 Share capital (Note 9)                           314 844    361 736    314 844

 Share premium                                        663        663        663

 Reserves                                          68 666     70 893     69 608

 Retained earnings                                381 176    376 615    437 722
-------------------------------------------------------------------------------
 Equity attributable to equity holders of the
 Parent                                           765 349    809 907    822 837

 Total equity                                     765 349    809 907    822 837
-------------------------------------------------------------------------------
 TOTAL LIABILITIES AND EQUITY                   1 505 876  1 609 873  1 532 963


Consolidated statement of cash flows

                                                                Jan-Jun Jan-Jun
 Unaudited, in thousands of EUR                 Q2 2020 Q2 2019    2020    2019
-------------------------------------------------------------------------------


 CASH FLOWS FROM OPERATING ACTIVITIES

 Net loss for the period                        -27 371  14 890 -57 569 -10 365

 Adjustments                                     29 084  36 133  58 471  65 377

 Changes in:

 Receivables and prepayments related to
 operating activities                             9 649 -11 569  11 294 -15 521

 Inventories                                      2 417  -3 021     220  -3 585

 Liabilities related to operating activities     -9 782  14 154  -7 545  21 704
-------------------------------------------------------------------------------
 Changes in assets and liabilities                2 284    -436   3 969   2 598

 Cash generated from operating activities         3 997  50 587   4 871  57 610

 Income tax repaid/paid                             -33    -136     -20    -218
-------------------------------------------------------------------------------
 NET CASH FROM OPERATING ACTIVITIES               3 964  50 451   4 851  57 392



 CASH FLOWS FROM INVESTING ACTIVITIES

 Purchase of property, plant, equipment and
 intangible assets (Notes 6, 7)                 -14 344 -18 456 -41 414 -43 718

 Proceeds from disposals of property, plant,
 equipment                                            3      64      47     142

 Interest received                                    0       0       1       1
-------------------------------------------------------------------------------
 NET CASH USED IN INVESTING ACTIVITIES          -14 341 -18 392 -41 366 -43 575



 CASH FLOWS FROM FINANCING ACTIVITIES

 Proceeds from loans received (Note 8)                0       0  15 000       0

 Repayment of loans received (Note 8)                 0 -14 834 -14 667 -31 334

 Change in overdraft (Note 8)                    19 747   9 152  32 005  19 009

 Payments for settlement of derivatives               0       0       0  -1 029

 Payment of lease liabilities (Note 8)             -999  -3 667  -4 914  -7 134

 Interest paid                                   -2 941  -3 415  -7 689  -8 434

 Payment of transaction costs related to loans        0       0    -205       0
-------------------------------------------------------------------------------
 NET CASH FROM/USED IN FINANCING ACTIVITIES      15 807 -12 764  19 530 -28 922



 TOTAL NET CASH FLOW                              5 430  19 295 -16 985 -15 105
-------------------------------------------------------------------------------


 Cash and cash equivalents at the beginning of
 period                                          16 462  47 775  38 877  82 175

 Change in cash and cash equivalents              5 430  19 295 -16 985 -15 105
-------------------------------------------------------------------------------
 Cash and cash equivalents at the end of period  21 892  67 070  21 892  67 070


Veiko Haavapuu
Financial Director

AS Tallink Grupp
Sadama 5
10111 Tallinn, Estonia
E-mail [email protected]
(https://www.globenewswire.com/Tracker?data=7cNPZVRR_uyFyhOkG_Q_eWuwpwLY1IwmkSSe
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