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AS Tallink Grupp Unaudited Consolidated Interim Report Q3 2023

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The Q3 2023 results of AS Tallink Grupp will be introduced at an Investor
Webinar held today at 12:00 (EEST). To participate, please join via the
following link; (https://teams.microsoft.com/l/meetup-
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to: investor@tallink.ee (https://www.globenewswire.com/Tracker?data=sPXC0PO4t9B-
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Further details are available in a previously published announcement
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en&src=listed).

In the third quarter (1 July - 30 September) of the 2023 financial year, AS
Tallink Grupp and its subsidiaries (the Group) carried 1 775 821 passengers,
which is 6.2% less than in the third quarter of 2022. The number of cargo units
transported decreased by 26.1% compared to the same period a year ago. The
Group's unaudited consolidated revenue amounted to EUR 240.7 million (EUR 255.6
million in Q3 2022), down by 5.8% year-on-year. Unaudited EBITDA was EUR 82.1
million (EUR 67.7 million in Q3 2022) and the unaudited net profit for the
period was EUR 48.7 million (EUR 37.9 million in Q3 2022), up by 21.3% and
28.5%, respectively.

The following operational factors impacted the Group's revenue and operating
results in the third quarter of 2023:

  * The volume of cargo and passenger transportation was impacted by less
    vessels in operations due to chartering and by 17% less trips made compared
    to the same period a year ago.
  * The demand was also impacted by low consumer confidence levels, and weak
    economic environment in all Group's core markets but also by global
    geopolitical instability.
  * As at the end of the quarter the Group operated 15 vessels including 2
    shuttle vessels, 2 cargo vessels and 4 cruise ferries as well as 5 vessels
    that were chartered out (3 vessels on long-term and 2 vessels on short-term
    charter). During the quarter, 2 charter agreements ended. The charter
    agreement of the Group's vessel Romantika was terminated in September 2023
    prior to the agreement's expiration date. The short-term charter agreement
    of the cruise ferry Victoria I ended in July 2023.
  * The planned dry docking of the cruise ferry Baltic Queen for 12 days in
    September 2023.
  * The Group operated 3 hotels in Tallinn and 1 in Riga.
  * Declining global fuel prices and the optimal fleet size had a positive
    impact on the Group's cost base. However, while the fuel prices have dropped
    the fuel transportation cost component has increased.
  * The Group's net debt to EBITDA ratio was down to 2.7 as at 30 September
    2023 compared to 3.1 as at 30 June 2023.
  * The Group continues to focus on cost efficiency from previously implemented
    measures and retaining profitable operations on its core routes.
  * The Group regularly monitors the developments on its core routes including
    the capacity of each route and continues to look for new chartering options
    for vessels not used on the main routes and to work on extending the
    existing chartering agreements.

Sales and Results by Segments
In the third quarter of 2023, the Group's total revenue decreased by EUR 14.9
million to EUR 240.7 million compared to EUR 255.6 million in the third quarter
of 2022.

Revenue from route operations (core business) amounted to EUR 195.7 million,
which is EUR 15.1 million less than in the third quarter of 2022. The segment
result from route operations (core business) amounted to EUR 55.0 million
compared to EUR 39.1 million in the third quarter of 2022.

The number of passengers carried on the Estonia-Finland route decreased by 0.6%
year-on-year. The number of transported cargo units decreased by 27.0%. While
the revenue from the Estonia-Finland route decreased by EUR 7.1 million to EUR
86.4 million, the segment result improved by EUR 5.6 million to EUR 32.3
million. The decline in passenger numbers, cargo volumes and revenue were mostly
driven by less vessels in operations and less trips made compared to the same
period a year ago. In the third quarter of 2023, the segment reflects the
operations of two shuttle vessels, compared to two shuttle vessels and one
cruise ferry in the third quarter of 2022. The cruise ferry Silja Europa stopped
operating on the Estonia-Finland route in August 2022 due to a charter
agreement. During the third quarter of 2022, the Tallinn-Helsinki route was
operated by the shuttle vessels Megastar and Oscar Wilde (formerly Star). The
shuttle vessel Oscar Wilde stopped operating the route in May 2023 due to a
charter agreement. In the third quarter of 2023, a route was operated by shuttle
vessel Megastar and a new shuttle vessel MyStar that was launched to the
Tallinn-Helsinki route in December 2022.

In the third quarter of 2023, the year-on-year decrease in the number of
passengers on Finland-Sweden routes was 18.1%. The number of transported cargo
units decreased by 41.0%. The routes' revenue decreased by EUR 10.0 million to
EUR 83.7 million while the segment result improved by EUR 8.0 million to EUR
18.9 million, year-on-year. The decline in passenger numbers, cargo volumes and
revenue were mostly driven by less vessels in operations and less trips made
compared to the same period a year ago. In the third quarter of 2023, the
segment reflects the operations of one cruise ferry on Turku-
Stockholm/Kapellskär routes and two cruise ferries on the Helsinki-Stockholm
route. The cruise ferry Galaxy I stopped operating on the Turku-Stockholm route
from September 2022 due to a charter agreement.

On Estonia-Sweden routes the number of carried passengers increased by 5.3%
while the number of transported cargo units decreased by 1.1% compared to the
third quarter of 2022. The revenue of Estonia-Sweden routes increased by EUR
2.0 million to EUR 25.5 million and segment result improved by EUR 2.3 million
to EUR 3.9 million, year-on-year. Estonia-Sweden routes reflect the operation of
two cargo vessels on the Paldiski-Kapellskär route and one cruise ferry on the
Tallinn-Stockholm route.

Revenue from the segment Other increased by a total of EUR 0.6 million and
amounted to EUR 47.4 million. The segment result declined year-on-year by EUR
5.2 million amounting to EUR 12.2 million. As at the end of third quarter 2023,
the Group had 5 vessels on charter including 3 on long-term and 2 on short-term
charter. During the quarter, the charter agreements of 2 vessels ended. The
agreement for chartering out the cruise ferry Romantika, signed in March 2022,
was terminated on 1 September 2023. The cruise ferry Victoria I, the charter
agreement of which ended in July, started operating the Tallinn-Helsinki route
on 12 October 2023.

In the third quarter of 2023, long-term charters included:

  * The vessel Atlantic Vision was chartered to Canada in November 2008. The
    current agreement has been signed until May 2024 with an extension option
    for another 12 months.
  * The shuttle vessel Oscar Wilde (formerly Star) was chartered out from 5 May
    2023 for 20 months with the option of extending the charter by 2+2 year and
    the option of purchasing the shuttle.
  * The cruise ferry Isabelle has been on long-term charter since 1 July 2023
    and the charter agreement includes a purchase option.

In the third quarter of 2023, short-term charters included:

  * The cruise ferry Galaxy I was chartered out in September 2022. In September
    2023, the agreement was extended for six months until April 2024.
  * The cruise ferry Silja Europa was chartered out in August 2022. In October
    2023, the charter agreement was extended until the end of 2024.

Earnings
In the third quarter of 2023, the Group's gross profit improved by EUR 11.6
million to EUR 77.7 million compared to EUR 66.0 million in the third quarter of
2022. EBITDA improved by EUR 14.4 million and amounted to EUR 82.1 million.

Amortisation and depreciation expense increased by EUR 1.5 million to EUR 25.2
million compared to the third quarter of the financial year 2022.

As a result of increased interest rates and increased financing obligations
related to the shuttle-vessel Mystar, net finance costs increased by EUR 2.1
million year-on-year to EUR 8.4 million in the third quarter of 2023.

The Group's unaudited net profit for third quarter 2023 was EUR 48.7 million or
EUR 0.065 per share compared to a EUR 37.9 million or EUR 0.051 per share in Q3
2022.

Investments
The Group's investments in the third quarter of 2023 amounted to EUR 6.1
million.

Majority of the investments were related to the maintenance and repair works of
the vessels. The cruise ferry Victoria I was prepared for operating a 22-hour
cruise service between Tallinn and Helsinki from October 2023.

During the planned docking of the cruise ferry Baltic Queen both technical works
as well as interior upgrades were carried out. The ferry's propellers were re-
bladed to enhance the speed of the ferry and to make the ferry more energy
efficient. The expected fuel-saving from the re-blading is more than 13%.
Additionally, the graphite paint was piloted on the cruise ferry Baltic Queen
for hull painting to significantly reduce the water resistance of the vessel's
hull and thus increase the vessel's efficiency.

Financial Position
At the end of the third quarter 2023, the Group's net debt amounted to EUR
620.4 million, a decrease of EUR 44.5 million compared to the end of second
quarter of 2023. The net debt to EBITDA ratio was 2.7 at the reporting date (3.1
as at 30 June 2023).

As at 30 September 2023, the Group's cash and cash equivalents amounted to EUR
64.4 million (EUR 57.6 million as at 30 June 2023) and the Group had EUR 135.0
million in unused credit lines (EUR 135.0 million as at 30 June 2023). The total
liquidity buffer (cash, cash equivalents and unused credit facilities) amounted
to EUR 199.4 million (EUR 192.6 million as at 30 June 2023). In the third
quarter of 2023, the Group repaid loans in the total amount of EUR 30.9 million
compared to EUR 105.3 million in the second quarter of 2023. The current trade
and other payables amounted to EUR 83.6 million (EUR 96.3 million as at 30 June
2023).

Dividends
In 2018, the Group adopted a dividend policy subject to which dividends of a
minimum amount of
EUR 0.05 per share would be paid if the economic performance enables it.

Due to continued global uncertainties the Annual General Meeting of Shareholders
held on 13 June 2023 decided not to pay dividends for the financial year 2022.

Results of the first 9 months of 2023
In the first 9 months (1 January - 30 September) of the 2023 financial year, the
Group carried 4.4 million passengers which is 4.8% more compared to the same
period last year. The Group's unaudited revenue for the period increased by
13.0% and amounted to EUR 641.6 million. Unaudited EBITDA for the first 9 months
was EUR 177.7 million (EUR 85.4 million in January-September 2022) and unaudited
net profit was EUR 76.7 million (net loss of EUR 2.8 million in January-
September 2022).

The financial result of the first 9 months of 2023 was impacted by the following
factors:

  * The volume of cargo and passenger transportation was impacted by less
    vessels available due to chartering of vessels resulting in 12% less trips
    made compared to the same period a year ago.
  * The chartering of vessels supporting the stability of cash flows.
  * Planned maintenance works of 57 days which affected both the Finland-Sweden
    segment's first quarter and the Estonia-Sweden segment's third quarter
    passenger and cargo levels as well as the financial result.
  * Repayment of long-term loans in the amount of EUR 155.5 million compared to
    EUR 71.0 million in 9 months 2022.
  * The lower operating cost base compared to the same period in 2022 arising
    from chartering of vessels but also lower global fuel costs.

Key Figures

                                                            Jan-Sep     Jan-Sep
 For the period                     Q3 2023     Q3 2022        2023        2022
                               ------------------------------------------------
 Revenue (EUR million)                240.7       255.6       641.6       567.7

 Gross profit/loss (EUR
 million)                              77.7        66.0       168.9        71.6

 EBITDA¹ (EUR million)                 82.1        67.7       177.7        85.4

 EBIT¹ (EUR million)                   56.8        43.9       101.9        14.2

 Net profit/loss for the period
 (EUR million)                         48.7        37.9        76.7        -2.8



 Depreciation and amortisation
 (EUR million)                         25.2        23.7        75.7        71.2

 Capital expenditures¹ ²(EUR
 million)                               6.1         5.5        22.3        23.6

 Weighted average number of
 ordinary shares outstanding    743 569 064 743 569 064 743 569 064 743 569 064

 Earnings/loss per share¹ (EUR)       0.065       0.051       0.103      -0.004



 Number of passengers             1 775 821   1 893 603   4 366 679   4 166 038

 Number of cargo units               75 701     102 399     247 792     313 717

 Average number of employees          4 756       5 256       4 878       5 048



 As at                           30.09.2023  30.06.2023  30.09.2022  31.06.2022
                               ------------------------------------------------
 Total assets (EUR million)         1 597.4     1 613.6     1 535.3     1 550.1

 Total liabilities (EUR
 million)                             813.7       878.4       845.1       897.8

 Interest-bearing liabilities
 (EUR million)                        684.8       722.5       711.5       746.5

 Net debt¹ (EUR million)              620.4       664.9       608.7       655.9

 Net debt to EBITDA¹                    2.7         3.1         5.5         8.4

 Total equity (EUR million)           783.7       735.2       690.2       652.3

 Equity ratio¹ (%)                      49%         46%         45%         42%



 Number of ordinary shares
 outstanding                    743 569 064 743 569 064 743 569 064 743 569 064

 Shareholders' equity per share
 (EUR)                                 1.05        0.99        0.93        0.88



                                                            Jan-Sep     Jan-Sep
 Ratios¹                            Q3 2023     Q3 2022        2023        2022
                               ------------------------------------------------
 Gross margin (%)                     32.3%       25.8%       22.8%        1.8%

 EBITDA margin (%)                    34.1%       26.5%       23.8%        5.7%

 EBIT margin (%)                      23.6%       17.2%       11.3%       -9.5%

 Net profit/loss margin (%)           20.2%       14.8%        7.0%      -13.0%



 ROA (%)                               7.7%        1.0%        7.7%        1.0%

 ROE (%)                              12.9%       -0.9%       12.9%       -0.9%

 ROCE (%)                              9.6%        1.2%        9.6%        1.2%



1 Alternative performance measures based on ESMA guidelines are disclosed in the
Alternative Performance Measures section of this Interim Report.
2 Does not include additions to right-of-use assets.

EBITDA: result from operating activities before net financial items, share of
profit of equity-accounted investees, taxes, depreciation and amortization
EBIT: result from operating activities
Earnings/loss per share: net profit or loss/ weighted average number of shares
outstanding
Equity ratio: total equity / total assets
Shareholder's equity per share: shareholder's equity / number of shares
outstanding
Gross profit/loss margin: gross profit / net sales
EBITDA margin: EBITDA / net sales
EBIT margin: EBIT / net sales
Net profit/loss margin: net profit or loss / net sales
Capital expenditure: additions to property, plant and equipment - additions to
right-of-use assets + additions to intangible assets
ROA: earnings before net financial items, taxes 12-months trailing / average
total assets
ROE: net profit 12-months trailing / average shareholders' equity
ROCE: earnings before net financial items, taxes 12-months trailing / (total
assets - current liabilities (average for the period))
Net debt: interest-bearing liabilities less cash and cash equivalents
Net debt to EBITDA: net debt / EBITDA 12-months trailing

Consolidated statement of profit or loss and other comprehensive income

                                                               Jan-Sep  Jan-Sep
 Unaudited, in thousands of EUR              Q3 2023  Q3 2022     2023     2022
-------------------------------------------------------------------------------
 Revenue                                     240 668  255 555  641 588  567 726

 Cost of sales                              -163 013 -189 536 -472 682 -496 090
-------------------------------------------------------------------------------
 Gross profit/loss                            77 655   66 019  168 906   71 636



 Sales and marketing expenses                -10 399   -9 455  -30 781  -27 397

 Administrative expenses                     -11 175  -12 156  -37 494  -35 050

 Impairment loss on receivables

 Other operating income                          789     -463    1 382    5 112

 Other operating expenses                        -35        0      -68      -84
-------------------------------------------------------------------------------
 Result from operating activities             56 835   43 945  101 945   14 217



 Finance income                                  133     -133      804       48

 Finance costs                                -8 507   -6 188  -26 803  -17 847
-------------------------------------------------------------------------------
 Share of profit/loss of equity-accounted
 investees                                         0        0        0        0
-------------------------------------------------------------------------------
 Profit/loss before income tax                48 461   37 624   75 946   -3 582



 Income tax                                      222      248      762      794



 Net profit/loss for the period               48 683   37 872   76 708   -2 788

 Net profit/loss for the period
 attributable to equity holders of the
 Parent                                       48 683   37 872   76 708   -2 788



 Other comprehensive income

 Items that may be reclassified to profit
 or loss

 Exchange differences on translating
 foreign operations                             -244       43       29      491
-------------------------------------------------------------------------------
 Other comprehensive income for the period      -244       43       29      491



 Total comprehensive profit/loss for the
 period                                       48 439   37 915   76 737   -2 297

 Total comprehensive profit/loss for the
 period attributable to equity holders of
 the Parent                                   48 439   37 915   76 737   -2 297



 Basic and diluted profit/loss per share
 (in EUR)                                      0.065    0.051    0.103   -0.004
-------------------------------------------------------------------------------



Consolidated statement of financial position

 Unaudited, in thousands of EUR                30.09.2023 30.09.2022 31.12.2022
-------------------------------------------------------------------------------
 ASSETS

 Cash and cash equivalents                         64 433    102 813    114 935

 Trade and other receivables                       34 577     39 988     31 380

 Prepayments                                       11 485     14 522      9 379

 Prepaid income tax                                     1          1         37

 Inventories                                       39 758     39 757     39 965
-------------------------------------------------------------------------------
 Current assets                                   150 254    197 081    195 696



 Investments in equity-accounted investees             75        165         75

 Other financial assets and prepayments             4 510      3 377      3 622

 Deferred income tax assets                        21 840     21 840     21 840

 Investment property                                  300        300        300

 Property, plant and equipment                  1 391 682  1 279 659  1 438 286

 Intangible assets                                 28 734     32 878     31 823
-------------------------------------------------------------------------------
 Non-current assets                             1 447 141  1 338 219  1 495 946

 TOTAL ASSETS                                   1 597 395  1 535 300  1 691 642



 LIABILITIES AND EQUITY

 Interest-bearing loans and borrowings            126 148    249 707    165 049

 Trade and other payables                          83 593     85 257     86 934

 Derivatives                                            0          0          0

 Payables to owners                                     6          6          6

 Income tax liability                                  35         47         35

 Deferred income                                   45 237     48 299     44 222
-------------------------------------------------------------------------------
 Current liabilities                              255 019    383 316    296 246



 Interest-bearing loans and borrowings            558 659    461 765    688 465
-------------------------------------------------------------------------------
 Derivatives                                            0          0          0

 Other liabilities                                      0          0          0
-------------------------------------------------------------------------------
 Non-current liabilities                          558 659    461 765    688 465
-------------------------------------------------------------------------------
 Total liabilities                                813 678    845 081    984 711



 Share capital                                    349 477    349 477    349 477

 Share premium                                        663        663        663

 Reserves                                          67 694     66 885     66 363

 Retained earnings                                365 883    273 194    290 428
-------------------------------------------------------------------------------
 Equity attributable to equity holders of the
 Parent                                           783 717    690 219    706 931

 Total equity                                     783 717    690 219    706 931
-------------------------------------------------------------------------------
 TOTAL LIABILITIES AND EQUITY                   1 597 395  1 535 300  1 691 642



 Consolidated statement of cash flows

                                                                Jan-Sep Jan-Sep
 Unaudited, in thousands of EUR                Q3 2023 Q3 2022     2023    2022
-------------------------------------------------------------------------------


 CASH FLOWS FROM OPERATING ACTIVITIES

 Net profit/loss for the period                 48 683  37 872   76 708  -2 788

 Adjustments                                    33 283  29 671  100 721  88 590

 Changes in:

 Receivables and prepayments related to
 operating activities                            2 480   5 254   -5 282 -14 602

 Inventories                                     2 496   4 736      207  -5 126

 Liabilities related to operating activities   -27 274 -17 051   -2 703  21 033
-------------------------------------------------------------------------------
 Changes in assets and liabilities             -22 298  -7 061   -7 778   1 305

 Cash generated from operating activities       59 668  60 482  169 651  87 107

 Income tax repaid/paid                            -20     -39     -111    -115
-------------------------------------------------------------------------------
 NET CASH FROM/USED OPERATING ACTIVITIES        59 648  60 443  169 540  86 992



 CASH FLOWS FROM INVESTING ACTIVITIES

 Purchase of property, plant, equipment and
 intangible assets                              -6 083  -5 500  -22 249 -23 633

 Proceeds from disposals of property, plant,
 equipment                                         164     -38      244   2 743

 Proceeds from other financial assets                0       0        0       0

 Interest received                                 133       4      804       6
-------------------------------------------------------------------------------
 NET CASH USED IN INVESTING ACTIVITIES          -5 786  -5 534  -21 201 -20 884



 CASH FLOWS FROM FINANCING ACTIVITIES

 Proceeds from loans received                        0       0        0       0

 Repayment of loans received                   -30 858 -25 042 -155 477 -71 030

 Repayment of bonds                                  0       0        0       0

 Change in overdraft                               -15  -6 481      -15  11 646

 Payments for settlement of derivatives              0       0        0       0

 Payment of lease liabilities                   -8 219  -4 332  -17 025 -12 844

 Interest paid                                  -7 982  -6 548  -25 212 -18 022

 Payment of transaction costs related to loans       0    -298   -1 112    -601

 Dividends paid                                      0       0        0       0

 Issue of shares                                     0       0        0       0

 Income tax on dividends paid                        0       0        0       0
-------------------------------------------------------------------------------
 NET CASH FROM/USED IN FINANCING ACTIVITIES    -47 074 -42 701 -198 841 -90 851



 TOTAL NET CASH FLOW                             6 788  12 208  -50 502 -24 743
-------------------------------------------------------------------------------


 Cash and cash equivalents at the beginning of
 period                                         57 645  90 605  114 935 127 556

 Change in cash and cash equivalents             6 788  12 208  -50 502 -24 743
-------------------------------------------------------------------------------
 Cash and cash equivalents at the end of
 period                                         64 433 102 813   64 433 102 813



Anneli Simm
Investor Relations Manager

AS Tallink Grupp
Sadama 5
10111 Tallinn, Estonia
E-mail anneli.simm@tallink.ee