Market announcement

Title

AS Tallinna Sadam financial results for 2021 Q1

Message

As a result of the ongoing global virus crisis, the revenue, adjusted EBITDA and
profit of AS Tallinna Sadam (hereafter: "the Group") decreased in Q1 compared to
the  same pre-crisis  period. Revenue  amounted to  EUR 25 million decreasing by
10% in  Q1 year-on-year. The adjusted EBITDA of Q1 was EUR 13 million (-20%) and
the profit amounted to EUR 6.8 million (-31%).

In  the first quarter, revenue decreased  by EUR 2.9 million and adjusted EBITDA
and  profit both by EUR  3.1 million, while adjusted EBITDA  and profit in 2020
included  a one-time  transaction profit  from the  sale of  Paljassaare harbour
assets  in the amount of EUR 1.6 million.  Thus, without taking into account the
one-time  effect, adjusted  EBITDA and  profit have  decreased by  only EUR 1.5
million,  i.e. we compensated for  half of the decrease  in Q1 revenue with cost
savings.

According to Valdo Kalm, Chairman of the Management Board of Tallinna Sadam, the
Group's  financial  results  continued  to  be  affected  by  the  pandemic  and
restrictions  on movement, especially  in the passenger  harbours' segment. "The
decline  in the passenger business  is partly offset by  the continued growth in
cargo  volumes in several  types of cargo  and the stable  position in shipping.
Stable  cash flow and faith in the  recovery of the passenger business have also
made  it possible to continue  investing in the crisis  and to submit a dividend
proposal  to the general meeting in accordance  with the dividend policy even in
the current global crisis," explained Kalm.

The management of Tallinna Sadam will present the financial results of the Group
at  a webinar  on 10 May  at 11:00 Estonian  time, to  attend, please click here
(https://teams.microsoft.com/dl/launcher/launcher.html?url=%2F_%23%2Fl%2Fmeetup-
join%2F19%3Ameeting_MGU5ZmU4MzAtZDhkZC00NmE3LTgyZTEtMmUwNjdiOGUzZTZk%40thread.v2
%2F0%3Fcontext%3D%257b%2522Tid%2522%253a%25223c572f71-c808-4685-aa00-
2ca59a11c7e2%2522%252c%2522Oid%2522%253a%2522f76c4208-aa18-403e-b244-
12d29bf7e0d0%2522%252c%2522IsBroadcastMeeting%2522%253atrue%257d%26btype%3Da%26r
ole%3Da%26anon%3Dtrue&type=meetup-join&deeplinkId=665e1b54-01cc-45c5-9dad-
d960c8e15958&directDl=true&msLaunch=true&enableMobilePage=true&suppressPrompt=tr
ue). The webinar will be held in English.

Key figures (in million EUR):

                           Q4 2020   Q4 2019    +/-       %

  Revenue                     25.0      27.9   -2.9   -10.4

  Adjusted EBITDA             13.0      16.2   -3.1   -19.5

  Adjusted EBITDA margin     52.1%     58.0%   -5.9       -

  Operating profit             7.2      10.5   -3.2   -31.3

  Profit for the period        6.8      10.0   -3.1   -31.4

  Investments                  3.6       8.8   -5.1   -58.4


                          31.03.2021   31.12.2020     +/-

  Total assets                 634.4        628.1    1.0%

  Interest bearing debt        208.6        211.6   -1.4%

  Other liabilities             43.5         41.1   -5.8%

  Equity                       382.3        375.4    1.4%

  Number of shares             263.0        263.0    0.0%

Major events in Q1:

  * The impact of the COVID-19 pandemic continued
  * Extension of term of office of Guldar Kivro, member of the management board
    of OÜ TS Laevad until 08.12.2024
  * A ten-year contract was signed with the Transport Administration for
    chartering the icebreaker Botnica in winter periods during
    20.12.2022-20.04.2032
  * Confirmation from Baffinland to charter the icebreaker Botnica in summer
    2021
  * Nasdaq Baltic Awards 2021 recognized Tallinna Sadam as the company with the
    best investor relations in the Baltics
  * Digital Construction Cluster awards Deed of the Year and Organization of the
    Year in connection with the construction solutions in passenger terminal D
  * Opening of the parking house of the passenger terminal D
  * Agreement was signed for full transition to renewable energy consumption
  * Tallink filed a claim against Tallinna Sadam
  * Merike Saks became a new member of the nomination committee as a
    representative of the Ministry of Finance
  * The management board proposed the general meeting to pay a dividend of EUR
    0.077 per share, i.e. 20.251 million in total (71% of the profit for the
    previous financial year), in 2021

Revenue
Revenue  for Q1  of 2021 decreased  by EUR  2.9 million, i.e.  10%, year on year
mainly  due to decline  in passenger volumes.  Revenue decreased the sharpest in
passenger  fees (-76%) and vessel dues  (-12%), revenues increased from the sale
of  electricity (29%) and cargo charges (4%). The decline is mainly attributable
to  fall  in  international  lines  passenger  numbers, as well as reduced ferry
timetables  and increasing competition for the  volume of liquid cargo left over
from Russian ports.
The  revenue  of  the  Passenger  harbours  segment  decreased by 37% due to the
decline  in passenger volume (-76%) in connection with COVID-19 related mobility
restrictions, which only affected the reference period of the previous year from
the second half of March.
The  revenue of the Cargo harbours segment  grew by EUR 0.2 million (+3%) mainly
through  growth  in  revenue  from  the  sale  of  electricity  and  electricity
distribution  service  due  to  the  combined  effect  of  an  increase  in both
consumption and the electricity price.
The  revenue of the  Ferry segment decreased  by EUR 0.2 million (-3%) primarily
because the impact of a decrease in annual fee rates.
The revenue of the segment Other decreased slightly because last year was a leap
year and thus there was an extra charter day along with related revenue.

EBITDA
Adjusted  EBITDA declined  by EUR  3.1 million (-20%)  year on  year. In segment
terms,  adjusted EBITDA  grew in  the segment  Other and  decreased in all other
segments. The decrease was the sharpest in the Passenger harbours segment due to
a fall in revenue. Adjusted EBITDA margin declined from 58.0% to 52.1%.

Profit
Profit before tax decreased by EUR 3.1 million (-31%) to EUR 6.8 million. Profit
for  the  period  was  also  EUR  6.8 million,  EUR 3.1 million less than in the
comparative period.

Investments
The  Group's investments in the first  quarter of 2021 totalled EUR 3.6 million,
EUR  5.1 million less than  in the comparative  period when investments totalled
EUR   8.8 million.  Investments  of  the  period  were  mostly  related  to  the
construction  of a cruise terminal  at Old City Harbour  and a footbridge across
the canal of the Admiralty Basin.



Interim condensed consolidated statement of financial position:

  In thousands of euros               31 March 2021   31 December 2020
-----------------------------------------------------------------------
  ASSETS



  Current assets

  Cash and cash equivalents                  33,443             26,679

  Trade and other receivables                11,611             10,183

  Contract assets                               191                  0

  Inventories                                   383                360

  Non-current assets held for sale           33,443                114
-----------------------------------------------------------------------
  Total current assets                       45,726             37,336
-----------------------------------------------------------------------


  Non-current assets

  Investments in associates                   1,136              1,147

  Other long-term receivables                   303                  0

  Property, plant and equipment             584,956            587,506

  Intangible assets                           2,272              2,104

  Total non-current assets                  588,667            590,757
-----------------------------------------------------------------------
  Total assets                              634,393            628,093
-----------------------------------------------------------------------


  LIABILITIES



  Current liabilities

  Loans and borrowings                       17,266             17,266

  Derivative financial instruments               64                102

  Provisions                                    585              1,289

  Government grants                           1,815              1,919

  Taxes payable                                 943                744

  Trade and other payables                    8,225              9,149

  Total current liabilities                   3,215             30,469
-----------------------------------------------------------------------


  Non-current liabilities

  Loans and borrowings                      191,314            194,314

  Government grants                          26,979             26,145

  Other payables                                792                841

  Contract liabilities                          881                892

  Total non-current liabilities             219,966            222,192
-----------------------------------------------------------------------
  Total liabilities                         252,079            252,661
-----------------------------------------------------------------------


  EQUITY

  Share capital at par value                263,000            263,000

  Share premium                              44,478             44,478

  Statutory capital reserve                  20,262             20,262

  Hedge reserve                                 -64               -102

  Retained earnings (prior periods)          47,794             19,276

  Profit for the period                       6,844             28,518
-----------------------------------------------------------------------
  Total equity                              382,314            375,432
-----------------------------------------------------------------------
  Total liabilities and equity              634,393            628,093
-----------------------------------------------------------------------

Interim condensed consolidated statement of profit or loss:



 In thousands of euros                                          Q1 2021 Q1 2020
-------------------------------------------------------------------------------


 Revenue                                                         24,988  27,890

 Other income                                                       324   1,767

 Operating expenses                                              -7,302  -8,327

 Personnel expenses                                              -4,644  -4,677

 Depreciation, amortisation and impairment                       -6,022  -5,989

 Other expenses                                                    -123    -150

 Operating profit                                                 7,221  10,514
-------------------------------------------------------------------------------


 Finance income and costs

 Finance income                                                      10      11

 Finance costs                                                     -376    -386

 Finance costs - net                                               -366    -375
-------------------------------------------------------------------------------


 Share of profit of an associate accounted for under the
 equity method                                                      -11    -157

 Profit before income tax                                         6,844   9,982
-------------------------------------------------------------------------------


 Profit for the period                                            6,844   9,982
-------------------------------------------------------------------------------
 Attributable to owners of the Parent                             6,844   9,982
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
 Basic and diluted earnings per share (in euros)                   0.03    0.04

 Basic and diluted earnings per share - continuing operations
 (in euros)                                                        0.03    0.04
-------------------------------------------------------------------------------

Interim condensed consolidated statement of cash flows:



  In thousands of euros                                  Q1 2021   Q1 2020
---------------------------------------------------------------------------


  Cash receipts from sale of goods and services           29,620    30,041

  Cash receipts related to other income                       14        13

  Payments to suppliers                                   -9,956    -8,047

  Payments to and on behalf of employees                  -4,552    -3,661

  Payments for other expenses                               -111      -138

  Cash from operating activities                          15,015    18,208
---------------------------------------------------------------------------


  Purchases of property, plant and equipment              -4,662    -6,859

  Purchases of intangible assets                            -218       -96

  Proceeds from sale of property, plant and equipment        119     1,099

  Government grants received                                   0       581

  Interest received                                            1         5

  Cash used in investing activities                       -4,760    -5,270
---------------------------------------------------------------------------
  Repayments of loans received                            -3,000    -3,000

  Interest paid                                             -491      -516

  Cash from/used in financing activities                  -3,491    -3,516
---------------------------------------------------------------------------
  NET CASH FLOW                                            6,764     9,422
---------------------------------------------------------------------------
  Cash and cash equivalents at beginning of the period    26,679    35,183

  Change in cash and cash equivalents                      6,764     9,422

  Cash and cash equivalents at end of the period          33,443    44,605
---------------------------------------------------------------------------

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. The  group's sales in 2020
totalled  EUR  107.4 million,  adjusted  EBITDA  EUR 58.4 million and profit EUR
28.5 million.

Additional information:

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

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