Market announcement

Title

AS Tallinna Sadam financial results for 2022 Q2 and 6 months

Message

In  the  second  quarter,  Tallinna  Sadam  Group's revenue, adjusted EBITDA and
profit  increased year-on-year. Group revenue amounted  to EUR 30 million in the
second  quarter, increasing  by 25% compared  to the  same period last year. The
group's  adjusted EBITDA in the second quarter was EUR 15 million (+38%) and the
profit  was EUR 5.1 million  (+205%). In the  half-year summary, the revenue was
EUR  57 million (+16%),  the adjusted  EBITDA was  EUR 16 million (+31%) and the
profit was EUR 12 million (+44%).

The  Group's results for  the first half  of 2022 were strongly  affected by the
easing   of   the  COVID-19 restrictions  and  a  continuing  decline  in  cargo
throughput.  As a  result of  lifting the  restrictions and  increased passenger
confidence,  the number of passengers increased  nearly threefold in six months,
especially  on the Helsinki route. The decline in cargo volumes is mainly due to
the  third consecutive quarter  of a decline  in dry bulk  and liquid bulk cargo
volumes.  At  the  same  time,  ro-ro  and container goods showed a considerable
increase.  In shipping,  the strong  second quarter  was supported by additional
voyages  of ferry Regula based  on growing demand; and  chartering of Botnica at
the same level as last year.

Valdo  Kalm, chairman of the management board of Tallinna Sadam, is pleased that
despite  the difficult circumstances, the company  paid a dividend to the extent
promised by the dividend policy. "We continued with the planned investments, and
in  order to secure future business, we  decided to invest in the Paldiski South
Harbour  by  building  a  new  quay  for  the construction and servicing of wind
farms," said Kalm.

Tallinna  Sadam will present the financial results  of the Group at a webinar on
10 August     at     11:00 (EET),     to     attend,     please    click    here
(https://teams.microsoft.com/l/meetup-
join/19%3ameeting_YzcyMzA2OWEtZTQzYi00YzE5LTkwNzctZjUwM2QwNGIyYWVi%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%2C%22role%22%3A%22a%22%7D&btype=a&role=a).        The
webinar will be held in English.

Key figures (in million EUR):

                              Q2      Q2     +/-      6M      6M    +/-

                            2022    2021       %    2022    2021      %

  Revenue                   30.4    24.3    25.2    57.1    49.3   16.0

  Adjusted EBITDA           15.4    11.1    38.2            24.2

  Adjusted EBITDA margin   50.7%   45.9%     4.8   50.5%   49.0%    1.5

  Operating profit           9.1     5.2    74.6    16.3    12.4   31.3

  Income tax                -4.1    -3.3    25.5    -4.1    -3.3   25.5

  Profit for the period      5.1     1.7   205.4    12.3     8.5   44.1

  Investments                4.3     4.3    -0.5     9.0     7.9   13.1


                          30.06.2022   31.12.2021     +/-

  Total assets                 618.6        629.5   -1.7%

  Interest bearing debt        199.9        203.3   -1.7%

  Other liabilities             51.0         45.3   12.6%

  Equity                       367.6        380.9   -3.5%

  Number of shares             263.0        263.0    0.0%

Major events in Q2:

  * Investment decision to build a new quay in the Paldiski South Harbour to
    serve the wind farms
  * Record volume in ro-ro cargo (3.5 million tonnes in 6 months)
  * Termination of Worldwide Cargo Establishment's contractual penalty lawsuit
  * Voting on the resolutions of the general meeting on 5-25 April 2022,
    including election of new supervisory board
  * AS Tallinna Sadam paid the shareholders a dividend of EUR 0.097 per share,
    i.e. a total of EUR 25.5 million for 2021 (100% of previous year's profit)
  * AS Tallinna Sadam and the Port of Gdynia signed a letter of intent on
    cooperation in the field of developing hydrogen solutions

Revenue
Revenue for the six months of 2022 grew by EUR 7.9 million (+16.0%) to EUR 57.1
million.  Most of the growth resulted from  the second quarter when revenue grew
by 25.2%, supported by an increase in the number of passengers as well as higher
revenue  from the operation of ferry  service between Estonia's mainland and two
largest  islands. All  revenue streams  increased, the  most being passenger fee
(+163%),  operating lease (+14%),  vessel dues (+12%)  and ferry service revenue
(+10%).
The  six-month revenue  of the  Passenger harbours  segment grew  by 57% year on
year,  mainly due  to a  rise in  passenger fee  revenue due  to rapid growth in
passenger numbers and an increase in vessel dues. The segment also increased its
lease  income (EUR  +0.46 million) by  leasing out  new premises and electricity
sales  revenue. In the second  quarter, revenue grew by  88% year on year to EUR
10.7 million.
The  six-month revenue of the Cargo harbours  segment remained at the same level
as  a year earlier (+0.6%).  Its vessel dues revenue  dropped (EUR -0.5 million)
due  to the decline  in dry bulk  and liquid bulk  cargo. The decrease in vessel
dues was offset by the growth in cargo charges (EUR +0.3 million) due to changes
in  the cargo structure, an  increase in lease income  (EUR +0.2 million) due to
changes  in  lease  rates  and  growth  in  electricity sales revenue (EUR +0.3
million).  In the second quarter, the revenue of the Cargo harbours segment grew
by EUR 32 thousand year on year.
The  six-month revenue of the Ferry segment grew by EUR 1.6 million (+10.9%) due
to  growth in both ferry service revenue and lease income. Ferry service revenue
increased  through a rise in contractual fees due to an increase in the Estonian
fuel  cost, employment cost and consumer price  indices and growth in the number
of  trips. In the second  quarter, the revenue of  the Ferry segment grew by EUR
1.0 million year on year (+12.8%).
The  revenue of the segment Other grew by 2% in the first half-year and by 3.9%
in  the second  quarter. Revenue  growth was  supported by  the revision  of the
contractual fee due to a rise in the Estonian consumer price index.

EBITDA
Adjusted  EBITDA for the first half of the year grew by EUR 4.7 million (+19.5%)
to  EUR  28.9 million.  The  strongest  contributors  to  EBITDA growth were the
Passenger  harbours segment (EUR +4.5 million) and  the Ferry segment (EUR +0.7
million). In the second quarter, EBITDA grew by EUR 4.3 million (+38.2%) year on
year.  Thus 90% of the  growth in six-month  EBITDA was delivered  in the second
quarter.  The  adjusted  EBITDA  margin  for  the first half-year increased from
49.0% to  50.5% and the adjusted EBITDA margin  for the second quarter increased
from 45.9% to 50.7%.

Profit
Profit  for the  first six  months amounted  to EUR  12.3 million, exceeding the
profit for the comparative period by EUR 3.8 million (+44.1%), profit before tax
for  the first six months  grew by EUR 4.6 million  (+39%) year on year. Second-
quarter profit was EUR 5.1 million (EUR +3.4 million) and profit before tax grew
by EUR 4.2 million.

Investments
In  the first six months  of 2022, the Group invested  EUR 9.0 million, EUR 1.0
million  more  than  a  year  earlier.  The  largest  investments  were  made in
reconstructing  the outdoor area around Terminal D, upgrading the quay equipment
and  reconstructing  the  shoreline  reinforcements  in  Old City Harbour and in
increasing  the capacity of  Muuga Harbour to  serve ro-ro cargo. Investments of
the  second quarter totalled EUR 4.3 million (in the second quarter of 2021 also
EUR 4.3 million).

Interim condensed consolidated statement of financial position:

  In thousands of euros               30 June 2022   31 December 2021
----------------------------------------------------------------------
  ASSETS



  Current assets

  Cash and cash equivalents                 31,110             34,840

  Trade and other receivables                9,453             14,151

  Contract assets                              575                  0

  Inventories                                  565                399
----------------------------------------------------------------------
  Total current assets                      41,703             49,390
----------------------------------------------------------------------


  Non-current assets

  Investments in associates                  1,881              1,559

  Other long-term receivables                  896                896

  Property, plant and equipment            572,082            575,563

  Intangible assets                          2,042              2,130

  Total non-current assets                 576,901            580,148
----------------------------------------------------------------------


  Total assets                             618,604            629,538
----------------------------------------------------------------------


  LIABILITIES



  Current liabilities

  Loans and borrowings                      15,916             15,916

  Provisions                                   958              1,572

  Government grants                          1,665              1,223

  Taxes payable                                829                890

  Trade and other payables                  12,953             10,291

  Contract liabilities                       3,551                 57

  Total current liabilities                 35,872             29,949
----------------------------------------------------------------------


  Non-current liabilities

  Loans and borrowings                     184,015            187,398

  Government grants                         29,741             29,835

  Other payables                               552                652

  Contract liabilities                         788                809

  Total non-current liabilities            215,096            218,694
----------------------------------------------------------------------


  Total liabilities                        250,968            248,643
----------------------------------------------------------------------
  EQUITY

  Share capital at par value               263,000            263,000

  Share premium                             44,478             44,478

  Statutory capital reserve                 22,115             21,271

  Retained earnings (prior periods)         25,791             26,534

  Profit for the period                     12,252             25,612
----------------------------------------------------------------------
  Total equity                             367,636            380,895
----------------------------------------------------------------------
  Total liabilities and equity             618,604            629,538
----------------------------------------------------------------------

Interim condensed consolidated statement of profit or loss:



 In thousands of euros                         Q2 2022  Q2 2021 6M 2022 6M 2021
-------------------------------------------------------------------------------


 Revenue                                        30,363   24,260  57,135  49,248

 Other income                                      434      335     728     659

 Operating expenses                             -9,841   -8,070 -18,504 -15,372

 Personnel expenses                             -5,554   -5,100 -10,325  -9,744

 Depreciation, amortisation and impairment      -6,225   -6,076 -12,512 -12,098

 Other expenses                                    -66     -130    -194    -254

 Operating profit                                9,111    5,219  16,328  12,439
-------------------------------------------------------------------------------


 Finance income and costs

 Finance income                                     34       27      63      37

 Finance costs                                    -323     -365    -605    -741

 Finance costs - net                              -289     -338    -542    -704
-------------------------------------------------------------------------------


 Share of profit of an associate accounted
 for under the equity method                       350       52     577      41

 Profit before income tax                        9,172    4,933  16,363  11,776
-------------------------------------------------------------------------------


 Income tax                                     -4,111   -3,275  -4,111  -3,275

 Profit for the period                           5,061    1,658  12,252   8,501
-------------------------------------------------------------------------------
 Attributable to owners of the Parent            5,061    1,658  12,252   8,501
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
 Basic and diluted earnings per share (in
 euros)                                           0.02     0.01    0.05    0.03

 Basic and diluted earnings per share
  - continuing operations (in euros)              0.02     0.01    0.05    0.03
-------------------------------------------------------------------------------

Interim condensed consolidated statement of cash flows:



  In thousands of euros                                  6M 2022   6M 2021
---------------------------------------------------------------------------


  Cash receipts from sale of goods and services           67,852    55,753

  Cash receipts related to other income                       71        34

  Payments to suppliers                                  -23,580   -19,123

  Payments to and on behalf of employees                  -9,664    -9,064

  Payments for other expenses                               -238      -271

  Income tax paid on dividends                            -4,335         0

  Cash from operating activities                          30,106    27,329
---------------------------------------------------------------------------


  Purchases of property, plant and equipment              -9,618    -9,255

  Purchases of intangible assets                            -261      -426

  Proceeds from sale of property, plant and equipment         77       263

  Proceeds from government grants related to assets        4,954         0

  Dividends received                                         255         0

  Interest received                                            2         1

  Cash used in investing activities                       -4,591    -9,417
---------------------------------------------------------------------------
  Repayments of loans received                            -3,383    -3,383

  Dividends paid                                         -25,287   -20,082

  Interest paid                                             -570      -734

  Other payments related to financing activities              -5        -1

  Cash from/used in financing activities                 -29,245   -24,200
---------------------------------------------------------------------------
  NET CASH FLOW                                           -3,730    -6,288
---------------------------------------------------------------------------
  Cash and cash equivalents at beginning of the period    34,840    26,679

  Change in cash and cash equivalents                     -3,730    -6,288

  Cash and cash equivalents at end of the period          31,110    20,391
---------------------------------------------------------------------------

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])