Market announcement

Title

AS Tallinna Sadam financial results for 2021 Q4 and 12 months

Message

In  the fourth  quarter, both  sales revenue  (+13%), adjusted  EBITDA (+6%) and
profit  (+14%) increased. Growth  in passenger volume  and ferry calls increased
revenue  in the Passenger harbours segment,  which made the biggest contribution
to  the improvement in the Group's financial performance. However, profitability
indicators  improved less  than revenue  because surging  energy prices and some
major maintenance and repair works

In  2021, the Group's revenue increased to  EUR 110.1 million (+3%) supported by
all  segments, adjusted EBITDA  was EUR 54 million  (-8%) and profit amounted to
EUR  25.6 million  (-10%).  Adjusted  EBITDA  margin decreased by 5.3 percentage
points; the volume of investments was EUR 14.7 million (-60%). Due to the impact
of  the ongoing global COVID-19 crisis, the number of passengers passing through
the Group's harbours in 2021 decreasing to EUR 3.5 million (-18%), cargo volume,
on  the other hand,  reached the past  six years' highest  level of 22.4 million
tonnes (+5%).

According to Valdo Kalm, Chairman of the Management Board of Tallinna Sadam, the
company  was able to increase revenue in all business areas despite the negative
impact  of the  pandemic. In  addition to  the corona  virus crisis, the Group's
financial results were also affected by the energy crisis. "However, in the last
quarter  of the year we already saw a sharp increase in the number of passengers
and passenger ship calls, which is a sign that the impact of the pandemic on the
passenger  business  is  starting  to  recede.  We  welcome the return of cruise
passengers  and the reopening of the  Tallinn-Stockholm route. In terms of cargo
volume, we made a record volume in the last six years and we continued at steady
course  in shipping.  We believe  that in  the coming  years, the  pandemic will
affect our business less and less," said Kalm.

"Despite  the  crisis,  we  continued  to  invest  and  in the summer the cruise
terminal,  the promenade and the  Admiral Bridge were completed  in the Old City
Harbour,  which will connect the harbour area with the urban space and create an
attractive  environment for the real estate  development of the Old City Harbour
in the near future," Kalm noted. "Last year, we continued to reduce the negative
footprint  of our business - greenhouse gas emissions from our direct sources of
pollution decreased by 10%. The shipping companies connected their ships calling
at  the  Old  City  Harbour  to  onshore power, and automated mooring operations
started  from December, reducing air pollution and noise in the Old City Harbour
and  saving valuable  time. At  the beginning  of last  year, we switched to the
consumption of electricity produced only from renewable sources, and in business
development we are intensively engaged in the development of offshore wind farms
and the application of hydrogen technology in port operations."

Tallinna  Sadam will present the financial results  of the Group at a webinar on
28 February     at     11:00 (EET),     to    attend,    please    click    here
(https://teams.microsoft.com/l/meetup-
join/19%3ameeting_N2RjNDk3ZWMtYTJkYS00N2Y5LThkMjgtZjYxODU2NDI3OWVk%40thread.v2/0
?context=%7b%22Tid%22%3a%223c572f71-c808-4685-aa00-
2ca59a11c7e2%22%2c%22Oid%22%3a%22a6492212-75ef-498f-8735-75f88c5d463a%22%2c%22Is
BroadcastMeeting%22%3atrue%7d&btype=a&role=a).  The  webinar  will  be  held  in
English.

Key figures (in million EUR):

                              Q4      Q4     +/-    2021    2020     +/-

                            2021    2020       %                       %

  Revenue                   28.5    25.3    12.8   110.1   107.4     2.5

  Adjusted EBITDA           12.8    12.1     5.7    54.0    58.4    -7.5

  Adjusted EBITDA margin   44.9%   47.9%    -3.0   49.1%   54.4%    -5.3

  Operating profit           6.6     6.3     6.3    29.8    35.6   -16.3

  Income tax                 0,0     0.0       -    -3.3    -4.9   -33.3

  Profit for the period      6.5     5.7    14.2    25.6    28.5   -10.2

  Investments                4.5     8.2   -45.2    14.7    37.1   -60.4


                          31.12.2021   31.12.2020     +/-

  Total assets                 629.5        628.1    0.2%

  Interest bearing debt        203.3        211.6   -3.9%

  Other liabilities             45.3         41.1   10.3%

  Equity                       380.9        375.4    1.5%

  Number of shares             263.0        263.0    0.0%

Major events in Q4:

  * The impact of the COVID-19 pandemic continued
  * Past six years' record cargo volume in 2021 - 22.4 million tons
  * Increase in the number of passengers in Q4 +93% year-on-year due to lifting
    of travel restrictions
  * Establishment of a remuneration committee
  * Worldwide Caro Establishment's appeal denied by court
  * Rene Pärt was appointed as a new member of the supervisory board of OÜ TS
    Laevad
  * Court dispute over port dues with AS Tallink Grupp (compromise agreement
    reached in the beginning of 2022)
  * Cruise terminal and promenade was awarded as "Tallinn Development Project
    2021"
  * Admiral Bridge was awarded as "Structure of the Year 2021"
  * Automated mooring system started to serve ships sailing on the Tallinn-
    Helsinki route

Revenue
Revenue  for 2021 was EUR 110.1 million, EUR  2.7 million (+2.5%) up from a year
earlier.  Most revenue  streams showed  growth. The  increase was the largest in
electricity  sales, which grew by EUR 1.8 million  (+40%), mainly due to a sharp
rise  in the electricity price  and the launch of  onshore power supply service.
Passenger  fee revenue decreased the most,  dropping by 1.4 million euros (-19%)
to EUR 5.7 million consistent with the decrease in the number of passengers.
Revenue  for the fourth quarter of 2021 grew to EUR 28.5 million (+13%). Revenue
growth  was mainly attributable to a rise  in the number of passengers and ferry
calls,  which increased passenger  fee and vessel  due revenues in the Passenger
harbours  segment, and  growth in  the charter  fee revenue  from the icebreaker
Botnica.
Annual  revenue of the Passenger harbours  segment remained stable year on year.
Passenger  fee revenue  decreased by  EUR 1.4 million  due to  a decline  in the
number of passengers due to the COVID-19 restrictions. This was offset by growth
in  revenue from  vessel dues  on cruise  ship calls  (there were no cruise ship
calls  in 2020). The  fourth quarter  revenue of  the Passenger harbours segment
grew to EUR 8.4 million (+36%).
Annual revenue of the Cargo harbours segment increased mainly through the effect
of  revenue from the sale of electricity, which  grew due to a sharp rise in the
electricity  price. Cargo charge revenue increased  in connection with growth in
cargo  volumes. Revenue  from vessel  dues decreased,  particularly due to lower
volumes  of liquid  bulk cargo  and stiff  competition that lowered margins. The
fourth  quarter revenue  of the  Cargo harbours  segment decreased  to EUR 10.4
million (-1.7%).
Annual  revenue  of  the  Ferry  segment  grew  mostly through the effect of the
indexation of the contractual fee rates to the price indices and a higher number
of  trips made (in spring 2020 the number of trips was reduced due to the COVID-
19 restrictions). The fourth quarter revenue grew to EUR 7.4 million (+6.7%).
Annual  revenue of the segment Other grew because at the request of the Canadian
customer  the summer  charter of  the icebreaker  Botnica was  extended. Revenue
growth was supported by the indexation of the icebreaking and summer charter fee
rates to the inflation index. The fourth quarter revenue grew to EUR 2.3 million
(+45%).

EBITDA
Adjusted  EBITDA dropped by EUR 4.4 million (-7.5%) to EUR 54.0 million due to a
decrease  in the Cargo harbours, Passenger harbours and Ferry segments. Adjusted
EBITDA  margin  declined  from  54.4% to  49.1%. Adjusted  EBITDA for the fourth
quarter grew by EUR 0.7 million (+5.7%) year on year.

Profit
The  Group's net profit for 2021 amounted to EUR 25.6 million, which is EUR 2.9
million  (-10%) less than a year earlier.  Net profit for the fourth quarter was
EUR 6.5 million (+14%).

Investments
The  Group's capital investments in 2021 totalled EUR 14.7 million (-60%), which
is  the past five  years' lowest level  because most major  works carried out in
recent  years were completed in 2020. The  main capital investments in 2021 were
again  made at Old  City Harbour, where  the largest completed projects included
the  construction of a cruise terminal with a promenade and a movable footbridge
across  the canal of the  Admiralty Basin. The Group  started to reconstruct the
outdoor  area surrounding  Terminal D.  The largest  works at Muuga Harbour were
related  to developing  the conditions  of ro-ro  traffic and  improving traffic
conditions in the harbour area. In the Ferry segment, the largest works included
scheduled   dry-dock  maintenance  of  ferries  and  development  of  electronic
interfaces  for customer service.  The investment in  the sixth ferry, which was
planned  a year earlier, was not made, as  the state decided to order the vessel
not  through  OÜ  TS  Laevad,  but  through the Transport Administration. On the
icebreaker Botnica, the machinery control system was renewed and other technical
systems were upgraded.
Fourth quarter capital investments amounted to EUR 4.5 million (-45%).

Interim condensed consolidated statement of financial position:

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



  Current assets

  Cash and cash equivalents                     34,840             26,679

  Trade and other receivables                   14,151             10,183

  Inventories                                      399                360

  Non-current assets held for sale                   0                114
--------------------------------------------------------------------------
  Total current assets                          49,390             37,336
--------------------------------------------------------------------------


  Non-current assets

  Investments in associates                      1,559              1,147

  Other long-term receivables                      896                  0

  Property, plant and equipment                575,563            587,506

  Intangible assets                              2,130              2,104

  Total non-current assets                     580,148            590,757
--------------------------------------------------------------------------


  Total assets                                 629,538            628,093
--------------------------------------------------------------------------


  LIABILITIES



  Current liabilities

  Loans and borrowings                          15,916             17,266

  Derivative financial instruments                   0                102

  Provisions                                     1,572              1,289

  Government grants                              1,223              1,919

  Taxes payable                                    890                744

  Trade and other payables                      10,348              9,149

  Total current liabilities                     29,949             30,469
--------------------------------------------------------------------------


  Non-current liabilities

  Loans and borrowings                         187,398            194,314

  Government grants                             29,835             26,145

  Other payables                                 1,461              1,733

  Total non-current liabilities                218,694            222,192
--------------------------------------------------------------------------


  Total liabilities                            248,643            252,661
--------------------------------------------------------------------------


  EQUITY

  Share capital at par value                   263,000            263,000

  Share premium                                 44,478             44,478

  Statutory capital reserve                     21,271             20,262

  Hedge reserve                                      0               -102

  Retained earnings (prior periods)             26,534             19,276

  Profit for the period                         25,612             28,518
--------------------------------------------------------------------------
  Total equity                                 380,895            375,432
--------------------------------------------------------------------------


  Total liabilities and equity                 629,538            628,093
--------------------------------------------------------------------------

Interim condensed consolidated statement of profit or loss:



 In thousands of euros                         Q4 2021  Q4 2020    2021    2020
-------------------------------------------------------------------------------


 Revenue                                        28,540   25,303 110,051 107,358

 Other income                                      742      223   1,779   3,015

 Operating expenses                            -10,508   -7,576 -35,962 -30,858

 Personnel expenses                             -5,807   -5,426 -20,920 -19,491

 Depreciation, amortisation and impairment      -6,258   -6,199 -24,761 -24,094

 Other expenses                                    -60      -68    -429    -368

 Operating profit                                6,649    6,257  29,758  35,562
-------------------------------------------------------------------------------


 Finance income and costs

 Finance income                                     35        7      95      36

 Finance costs                                    -296     -410  -1,378  -1,705

 Finance costs - net                              -261     -403  -1,283  -1,669
-------------------------------------------------------------------------------


 Share of profit of an associate accounted
 for under the equity method                       146     -130     412    -462

 Profit before income tax                        6,534    5,724  28,887  33,431
-------------------------------------------------------------------------------


 Income tax                                          0        0  -3,275  -4,913

 Profit for the period                           6,534    5,724  25,612  28,518
-------------------------------------------------------------------------------
 Attributable to owners of the Parent            6,534    5,724  25,612  28,518
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
 Basic and diluted earnings per share (in
 euros)                                           0.02     0.02    0.10    0.11

 Basic and diluted earnings per share
  - continuing operations (in euros)              0.02     0.02    0.10    0.11
-------------------------------------------------------------------------------

Interim condensed consolidated statement of cash flows:



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


  Cash receipts from sale of goods and services          117,001   114,378

  Cash receipts related to other income                      144        94

  Payments to suppliers                                  -44,427   -41,354

  Payments to and on behalf of employees                 -18,665   -15,713

  Payments for other expenses                               -451      -376

  Other payments                                               0    -2,600

  Income tax paid on dividends                            -3,440    -4,913

  Cash from operating activities                          50,162    49,516
---------------------------------------------------------------------------


  Purchases of property, plant and equipment             -14,535   -35,811

  Purchases of intangible assets                            -641      -661

  Proceeds from sale of property, plant and equipment      2,573     2,863

  Government grants received                                 409     3,561

  Interest received                                            3        15

  Cash used in investing activities                      -12,191   -30,033
---------------------------------------------------------------------------
  Redemption of debt securities                                0    -9,000

  Loans received                                               0    20,000

  Repayments of loans received                            -8,266    -7,266

  Dividends paid                                         -20,085   -30,008

  Interest paid                                           -1,458    -1,694

  Other payments related to financing activities              -1       -19

  Cash from/used in financing activities                 -29,810   -27,987
---------------------------------------------------------------------------
  NET CASH FLOW                                            8,161    -8,504
---------------------------------------------------------------------------
  Cash and cash equivalents at beginning of the period    26,679    35,183

  Change in cash and cash equivalents                      8,161    -8,504

  Cash and cash equivalents at end of the period          34,840    26,679
---------------------------------------------------------------------------

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  unaudited
financial  results, the group's sales in 2021 totalled EUR 110 million, adjusted
EBITDA EUR 54 million and profit EUR 26 million.

Additional information:

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

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