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AS Tallinna Sadam unaudited financial results for 2022 and Q4

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In  2022, revenue increased  to 121.7 million  euros (+11%),  adjusted EBITDA to
55.8 million  euros  (+3.3%)  and  profit  was  25.6 million  euros (-0.1%). The
adjusted  EBITDA  margin  decreased  by  3.2 percentage  points;  the  volume of
investments was 13.9 million euros (-5.9%).

Last year's results were most affected by lifting of restrictions related to the
pandemic,  which boosted the activity  of passenger ports, and  the start of the
Russian-Ukraine  war and sanctions,  which led to  a decrease in cargo harbours'
volumes.  The number of  passengers increased by  98% to 7.0 million passengers,
but  the cargo volume decreased by 20.7% to 17.8 million tons. At the same time,
the number of vessel calls was relatively stable, decreasing by only 3% to 7130
visits.  High energy prices, rising service  prices and wage pressures increased
operating costs.

In the fourth quarter, revenue was 28.2 million euros (-1%), adjusted EBITDA was
8.9 million  euros (-30%) and  profit was 1.6 million  euros (-75%). The decline
was  influenced by the  reduced number of  vessel calls, the  lowering of vessel
dues  in passenger harbours, the drop  in cargo volumes resulting from sanctions
and  the shorter charter period of Botnica. The ferry segment showed an increase
in both revenue and profit margin due to the effect of fee indexation.

According  to Valdo  Kalm, chairman  of the  management board of Tallinna Sadam,
despite  the impact of the war and sanctions on the cargo business and the rapid
increase in input prices, the company was still able to increase its revenue and
adjusted  EBITDA,  which  once  again  proves  the  effectiveness  of a balanced
business  model. "The recovery  of the passenger  business from the pandemic has
been  faster  than  expected,  and  in  the  cargo  business, in addition to the
negative  effects of the war  to the liquid bulk,  we also see opportunities for
the growth of other types of cargo. We continued with investments and opened the
front  square of  the passenger  terminal D,  with which  we are  moving towards
developing  the  port  area  into  a  more  human-friendly and attractive living
environment.  In the real estate business, a very important step forward was the
public  display of the sketches of the detailed plans of the Old City Harbour at
the  end of the year. Looking to  the future, we also started the implementation
of  the offshore wind farm  construction quay and back  area project in Paldiski
South  Harbour. I believe that  ports will play an  important role in supporting
green  energy  production  and  infrastructure  development in the future," said
Kalm.

Tallinna  Sadam management will present the financial  results of the Group at a
webinars  on 28 February, including webinar  in Estonian starting at 13.00 (EET)
(link       to      EST      webinar      (https://teams.microsoft.com/l/meetup-
join/19%3ameeting_ZjUyMTZkYTktZWE1YS00NGFkLTg0ZjItZTE4NTBkYWU3NzEy%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))        and
webinar   in   English   starting   at   14.00 (EET)   (link   to   ENG  webinar
(https://teams.microsoft.com/l/meetup-
join/19%3ameeting_YWNmYTk5NjUtYTM1YS00MTIwLTk0ZTItOGY5YzVhMDg5NmY3%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)).

Key figures (in million EUR):

                              Q4      Q4     +/-                    +/-

                            2022    2021       %    2022    2021      %

  Revenue                   28.2    28.5    -1.0   121.7   110.1   10.6

  Adjusted EBITDA            8.9    12.8   -30.2    55.8    54.0    3.3

  Adjusted EBITDA margin   31.7%   44.9%   -13.2   45.9%   49.1%   -3.2

  Operating profit           2.6     6.6   -60.7    30.8    29.8    3.5

  Income tax                -0.1     0.0       -    -4.2    -3.3   28.0

  Profit for the period      1.6     6.5   -75.0    25.6    25.6   -0.1

  Investments                1.4     4.5   -68.2    13.9    14.7   -5.9


                          31.12.2022   31.12.2021     +/-

  Total assets                 621.2        629.5   -1.3%

  Interest bearing debt        187.4        203.3   -7.8%

  Other liabilities             52.9         45.3   16.6%

  Equity                       381.0        380.9    0.0%

  Number of shares             263.0        263.0    0.0%

Major events in Q4:

  * Implementation of additional sanctions on liquid bulk at the beginning of
    December
  * We reached 72% of the number of passengers from the pre-pandemic level
  * Tallinn City Government put on public display four sketches of the detailed
    plan of the Old City Harbour area
  * We opened the city square in front of the passenger terminal D
  * We extended the icebreaker Botnica's summer work contract with Baffinland
  * Changes in the management board of OÜ TS Laevad, a subsidiary of AS Tallinna
    Sadam
  * The air quality study of the Old City Harbour was completed

Revenue
The  annual revenue grew by EUR 11.7 million (+10.6%) year on year to EUR 121.7
million.  Revenue grew in all revenue streams except vessel dues. Growth was the
fastest  in passenger fee revenue,  which grew by EUR  4.6 million (+81%) to EUR
10.2 million.  Ferry service revenue  grew by EUR  3.8 million (+13%), rising to
EUR 33.6 million. The only revenue stream that decreased was revenue from vessel
dues,  which declined by  EUR 0.2 million (-0.5%)  to EUR 37.2 million  due to a
smaller  number of  vessel calls  and a  lower tonnage  charge rate  for ferries
visiting Old City Harbour.
Revenue  for the fourth quarter of 2022 declined by EUR 0.3 million (-1%) to EUR
28.2 million. The main reasons were a decrease in vessel dues (EUR -1.8 million,
-19.2%),  primarily through fewer vessel calls in the Passenger harbours and the
Cargo harbours segments, and the lowering of port dues for all ferry operators.
The  annual revenue of  the Passenger harbours  segment increased through higher
passenger  numbers. Passenger  fee revenue  grew by  EUR 4.6 million  due to the
lifting  of  the  COVID-19 restrictions.  Passenger  traffic  increased  both on
regular  routes and in cruise travel. Revenue  from the sale of electricity grew
due  to a sharp rise in electricity  prices and higher consumption. Lease income
increased  through letting  of premises  in the  cruise terminal, higher parking
charge income and termination of rent concessions. The fourth quarter revenue of
the  Passenger harbours segment  decreased by EUR  0.3 million (-4%) to EUR 8.1
million.
The  annual revenue  of the  Cargo harbours  segment dropped  mainly due  to the
impact  of vessel  dues revenue,  which declined  because sanctions  reduced the
number  of  vessel  calls.  Fewer  vessel  calls also lowered revenue from other
services.  Despite  smaller  cargo  volumes,  cargo charge revenue grew slightly
because  cargo with lower charge rates was  replaced by cargo with higher charge
rates.  Rising electricity prices  supported growth in  revenue from electricity
sales.  In addition to sanctions, the  performance of the Cargo harbours segment
was  affected by the sale of the electricity distribution network at Paljassaare
Harbour  at the end  of 2021. The fourth  quarter revenue of  the Cargo harbours
segment decreased by EUR 0.5 million (-5%) to EUR 9.9 million.
The annual revenue of the Ferry segment grew mostly due to the indexation of the
contractual  fee rates and a  higher number of trips  made. The segment's fourth
quarter revenue grew by EUR 0.9 million (+12%) to EUR 8.3 million.
The  revenue  of  the  segment  Other  grew,  although the summer charter of the
icebreaker  Botnica was shorter  than a year  earlier when the Canadian customer
extended  the charter.  Revenue growth  was supported  by the  indexation of the
icebreaking  and summer charter fee rates  to the inflation index. The segment's
fourth  quarter revenue decreased  by EUR 0.4 million  (-16%) to EUR 1.9 million
(there were more charter days in the fourth quarter a year earlier).

EBITDA
Adjusted  EBITDA  grew  by  EUR  1.8 million  (+3.3%) to EUR 55.8 million due to
adjusted  EBITDA growth in the Passenger harbours segment and the Ferry segment.
Adjusted  EBITDA margin decreased  from 49.1% to 45.9%. Adjusted  EBITDA for the
fourth quarter fell by EUR 3.9 million (-30%).

Profit
The  Group's net profit for 2022 amounted to  EUR 25.6 million, which is EUR 20
thousand  (-0.1%) smaller than a year earlier. Net profit for the fourth quarter
was EUR 1.6 million (EUR -4.9 million, -75%).

Investments
The  Group's capital investments in 2022 totalled EUR 13.9 million, which is EUR
0.9 million  (6%) less  than in  the prior  year and  the past six years' lowest
level.
The  main capital investments in 2022 were again made at Old City Harbour, where
the  largest completed project (the last works were completed in early 2023) was
the reconstruction of the outdoor area around Terminal D which began in 2020. At
Muuga Harbour, the largest investments were related to developing the conditions
for ro-ro traffic and improving traffic conditions in the harbour area. No major
works  were carried  out on  the icebreaker  Botnica. In  the Ferry segment, the
largest  works  included  scheduled  dry-dock  maintenance  of  the  ferries and
upgrades to the customer service and ticket sale systems.
The fourth quarter capital investments amounted to EUR 1.4 million, which is EUR
3.1 million less than in the fourth quarter of 2021.

Interim condensed consolidated statement of financial position:

  In thousands of euros               31 December 2022   31 December 2021
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  ASSETS



  Current assets

  Cash and cash equivalents                     44 387             34 840

  Trade and other receivables                    7 477             14 151

  Inventories                                      749                399

  Non-current assets held for sale                 100                  0
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  Total current assets                          52 713             49 390
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  Non-current assets

  Investments in associates                      2 099              1 559

  Other long-term receivables                      303                896

  Property, plant and equipment                564 379            575 563

  Intangible assets                              1 735              2 130

  Total non-current assets                     568 516            580 148
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  Total assets                                 621 229            629 538
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  LIABILITIES



  Current liabilities

  Loans and borrowings                          15 916             15 916

  Provisions                                     2 013              1 572

  Government grants                              8 578              1 223

  Taxes payable                                  1 060                890

  Trade and other payables                       9 832             10 291

  Contract liabilities                          37 399                 57

  Total current liabilities                     15 916             29 949
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  Non-current liabilities

  Loans and borrowings                         171 482            187 398

  Government grants                             30 156             29 835

  Other payables                                 1 216              1 461

  Total non-current liabilities                202 854            218 694
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  Total liabilities                            240 253            248 643
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  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                         25 592             25 612
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  Total equity                                 380 976            380 895
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  Total liabilities and equity                 621 229            629 538
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Interim condensed consolidated statement of profit or loss:



 In thousands of euros                         Q4 2022  Q4 2021    2022    2021
-------------------------------------------------------------------------------


 Revenue                                        28 243   28 540 121 703 110 051

 Other income                                      301      742   1 441   1 779

 Operating expenses                            -12 152  -10 508 -43 418 -35 962

 Personnel expenses                             -6 955   -5 807 -23 165 -20 920

 Depreciation, amortisation and impairment      -6 609   -6 258 -25 312 -24 761

 Other expenses                                   -213      -60    -462    -429

 Operating profit                                2 615    6 649  30 787  29 758
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 Finance income and costs

 Finance income                                    119       35     216      95

 Finance costs                                  -1 002     -296  -2 013  -1 378

 Finance costs - net                              -883     -261  -1 797  -1 283
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 Share of profit of an associate accounted
 for under the equity method                       -19      146     795     412

 Profit before income tax                        1 713    6 534  29 785  28 887
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 Income tax                                        -82        0  -4 193  -3 275

 Profit for the period                           1 631    6 534  25 592  25 612
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 Attributable to owners of the Parent            1 631    6 534  25 592  25 612
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 Basic and diluted earnings per share (in
 euros)                                           0.01     0.02    0.10    0.10

 Basic and diluted earnings per share
  - continuing operations (in euros)              0.01     0.02    0.10    0.10
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Interim condensed consolidated statement of cash flows:



  In thousands of euros                                     2022      2021
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  Cash receipts from sale of goods and services          130 099   117 001

  Cash receipts related to other income                      188       144

  Payments to suppliers                                  -53 548   -44 427

  Payments to and on behalf of employees                 -19 899   -18 665

  Payments for other expenses                               -368      -451

  Income tax paid on dividends                            -4 335    -3 440

  Cash from operating activities                          52 137    50 162
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  Purchases of property, plant and equipment             -15 189   -14 535

  Purchases of intangible assets                            -455      -641

  Proceeds from sale of property, plant and equipment        191     2 573

  Proceeds from government grants related to assets       15 001       409

  Dividends received                                         255         0

  Interest received                                           83         3

  Cash used in investing activities                         -114   -12 191
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  Redemption of debt securities                           -7 650         0

  Repayments of loans received                            -8 266    -8 266

  Dividends paid                                         -25 287   -20 085

  Interest paid                                           -1 264    -1 458

  Other payments related to financing activities              -9        -1

  Cash from/used in financing activities                 -42 476   -29 810
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  NET CASH FLOW                                            9 547     8 161
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  Cash and cash equivalents at beginning of the period    34 840    26 679

  Change in cash and cash equivalents                      9 547     8 161

  Cash and cash equivalents at end of the period          44 387    34 840
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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.

Additional information:

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

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