Market announcement

Title

MPSV Botnica's 10-year icebreaking service to the Transport Administration

Message

OÜ TS Shipping, a subsidiary of AS Tallinna Sadam, won a public tender organized
by the Estonian Transport Administration for the provision of icebreaking
services and navigation in the Gulf of Finland in the period
20.12.2022-20.04.2032. The icebreaking service in Estonian coastal waters is
provided with the multifunctional icebreaker Botnica, similarly to the previous
10-year charter agreement, annually from December 20 to April 20. The agreement
will be signed in the near future in accordance with the conditions set out in
the procurement and the offer.

The  total estimated cost of the agreement  to be concluded is EUR 54.2 million,
i.e.  EUR 5.4 million per year. From  the 2025/2026 working period, the contract
fee may be indexed with the Estonian consumer price index, but not more than 3%
annually.  The contract fee is fixed, i.e. the Transport Administration pays for
all charter days, regardless of the actual use of the icebreaker.

Compared  to the icebreaking  service agreement of  the previous 10-year period,
there  is  an  additional  condition  to  bring a replacement vessel for service
within  10 days in case  the contracted main  vessel Botnica should  fall out of
use.  Among other things, we mitigate this risk by increasing the reliability of
Botnica's vital systems.

MPSV  Botnica was  built at  Aker Finnyard  shipyard in 1998. The ICE-10 / Polar
Class  4 ice class carrying vessel is  97.3 meters long and 24.3 meters wide. In
open  water, Botnica has a maximum speed of  16.5 knots, and in ice up to 80 cm,
the  ship can move at speeds of up to 8 knots. The maximum thickness of ice that
Botnica can pass at a steady speed is 1.2 meters. During the summer periods from
June to the end of October, Botnica assists Panamax-type merchant vessels in the
Arctic  waters of  northern Canada  in the  export of  iron ore from the port of
Milne  Inlet  to  the  high  seas.  According  to the charter agreement, Botnica
provides  escort  and  ice  monitoring  vessel service, pollution monitoring and
emergency  services. The total  number of Botnica  charter days in 2020 was 249
days  and the annual utilization rate of  the ship was 68%, in 2019 261 days and
72% accordingly.

Tallinna  Sadam is one of the largest cargo- and passenger port complexes in the
Baltic  Sea region, which  serves annually 10 million  passengers and 20 million
tons  of  cargo  in  average.  In  addition  to  passenger and freight services,
Tallinna  Sadam group also operates in  shipping business via its subsidiaries -
OÜ  TS  Laevad  provides  ferry  services  between the Estonian mainland and the
largest  islands, and OÜ TS Shipping charters its multifunctional vessel Botnica
for  icebreaking  and  construction  services  in  Estonia and offshore projects
abroad.  Tallinna Sadam  group is  also a  shareholder of  an associate AS Green
Marine, which provides waste management services. According to audited financial
results,  Tallinna  Sadam  group's  sales  in  2019 totaled  EUR  130.5 million,
adjusted EBITDA EUR 74.3 million and net profit EUR 44.4 million.

Additional information:

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

[email protected] (mailto:[email protected])