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AS Tallink Grupp Unaudited Consolidated Interim Report for the Q1 2025

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The results of AS Tallink Grupp for the Q1 2025 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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kindly ask participants to provide their questions latest by 11:00 am by email
to: [email protected] (https://www.globenewswire.com/Tracker?data=sPXC0PO4t9B-
uBXRwzpCc9_urHLPH-
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Further details are available in a previously published announcement
(https://view.news.eu.nasdaq.com/view?id=1356677&lang=en).

In  the first quarter (1  January - 31 March) of  2025, AS Tallink Grupp and its
subsidiaries   (hereinafter   referred  to  as  "the  Group")  carried  970 359
passengers, which is 12.0% less than in the first quarter of 2024. The number of
cargo units transported decreased by 31.9% year-on-year amounting to 57 830. The
number  of passenger vehicles  was down by  10.9% compared to the  same period a
year ago and amounted to 135 829.

The  Group's unaudited consolidated  revenue amounted to  EUR 137.3 million (EUR
160.4 million in Q1 2024), down by 14.4% year-on-year. Unaudited negative EBITDA
was  EUR 3.8 million  (positive EBITDA  of EUR  34.5 million in Q1 2024) and the
unaudited  net loss for the period was  EUR 33.2 million (net profit of EUR 2.6
million in Q1 2024).

The  following operational  factors impacted  the Group's  revenue and operating
results in the first quarter of 2025:

  * Demand continued to be affected by low consumer and business confidence
    levels, the economic challenges in the Group's core markets and global
    geopolitical tensions.
  * As at the end of the quarter, the Group operated 14 vessels including 2
    shuttle vessels, 6 passenger vessels, 2 vessels that were chartered out and
    4 vessels that were in lay-up.
  * The Group closed its stand-alone restaurant Flavore in Tallinn and a Burger
    King restaurant in Vienibase shopping centre in Riga in March 2025.
  * During the quarter total investments amounted to EUR 13.3 million majority
    of which were made to upgrading the cruise ferries Baltic Princess and Silja
    Serenade. The planned maintenance works totalling 68 days in the first
    quarter of 2025 affected the passenger and cargo levels in Finland-Sweden
    routes.
  * The Group operated 3 hotels in Tallinn and 1 in Riga.
  * The Group's net debt was EUR 569.1 million as at the end of the first
    quarter of 2025 (EUR 537.7 million as at 31 December 2024) bringing the net
    debt to EBITDA ratio to 4.2 as at 31 March 2025.
  * In the first quarter of 2025, total loan repayment and related interest
    expense amounted to
    EUR 20.8 million.
  * The Group continues to focus on cost efficiencies from the previously
    implemented measures and maintaining 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 first quarter of 2025, the Group's  total revenue decreased by EUR 23.1
million to EUR 137.3 million compared to EUR 160.4 million year ago.

Revenue from route operations (the Group's core business) decreased by EUR 16.7
million  to EUR 110.5 million compared to the first quarter of 2024. The segment
result  from route operations (the Group's core  business) amounted to a loss of
EUR  13.4 million compared to a loss of  EUR 2.1 million in the first quarter of
2024.

The  number  of  passengers  carried  on  the Estonia-Finland route decreased by
10.9% in   year-on-year  comparison.  The  number  of  transported  cargo  units
decreased by 34.7%. Revenue from the Estonia-Finland route decreased by EUR 8.4
million  to EUR 57.0 million and the segment result decreased by EUR 6.7 million
to  EUR 2.9 million,  year-on-year. The  segment reflects  the operations of two
shuttle  vessels, MyStar and  Megastar, and the  cruise ferry Victoria I. During
the quarter, the shuttle vessel Megastar did not operate on the Tallinn-Helsinki
route for 3 days due to scheduled maintenance.

In  the  first  quarter  of  2025, the  year-on-year  decrease  in the number of
passengers  on Finland-Sweden routes was  17.0%. The number of transported cargo
units  decreased by 23.5%. The  routes' revenue decreased  by EUR 6.7 million to
EUR 37.6  million and the segment loss increased by EUR 2.5 million to a loss of
EUR  10.8 million,  year-on-year.  The  segment  reflects  the operations of one
cruise  ferry on  the Turku-Stockholm  and two  cruise ferries  on the Helsinki-
Stockholm  route. During  the quarter,  the cruise  ferry Silja Serenade did not
operate  on the Helsinki-Stockholm route for 30 days and the cruise ferry Baltic
Princess on the Turku-Stockholm route for 21 days due to scheduled maintenance.

On  Estonia-Sweden routes  the number  of carried  passengers decreased by 6.1%
while  the number of transported cargo  units decreased by 22.9% compared to the
same  period  a  year  ago.  Year-on-year,  the revenue of Estonia-Sweden routes
decreased  by EUR 1.6 million to EUR 16.0 million. The segment loss increased by
EUR  2.1 million  to  a  loss  of  EUR  5.5 million.  The Estonia-Sweden segment
reflects  the operations  of the  Tallinn-Stockholm and  the Paldiski-Kapellskär
routes.  The Tallinn-Stockholm  route was  operated by  the cruise  ferry Baltic
Queen.  The Paldiski-Kapellskär  route was  operated by  cargo vessel Regal Star
until  9 February 2025 after  which the  route was  operated by passenger vessel
Star  I  (formerly  Star,  now  James  Joyce).  The  cargo vessel Sailor stopped
operating  the Paldiski-Kapellskär  route on  15 January 2025. The cargo vessels
Sailor and Regal Star remain in lay-up.

Revenue  from the  segment Other  decreased by  a total  of EUR  6.6 million and
amounted  to  EUR  27.5 million.  The  segment  loss amounted to EUR 1.7 million
decreasing  by  EUR  7.8 million  compared  to  the  same period a year ago. The
decrease  was mainly driven  by fewer vessels  on charter. As  at the end of the
first quarter of 2025, the Group had 2 vessels on charter (Q1 2024: 4 vessels on
charter).  In January 2025, the charter agreement  of the passenger vessel James
Joyce  (formerly Star) ended as  the charterer decided not  to use the extension
option  the  agreement.  The  vessel  operated  Paldiski-Kapellskär  route  from
February  until the  agreement was  signed between  the subsidiary of AS Tallink
Group, Tallink Hansaway Limited, and Irish Continental Group plc for the sale of
the vessel in April 2025.

At the end of the first quarter of 2025, the following vessels were chartered
out:

  * The cruise ferry Galaxy I was chartered out in September 2022. In October
    2024, the agreement was extended by 12 months until October 2025 with the
    option of extending the agreement at the end of the agreement period by 6+6
    months.
  * The cruise ferry Silja Europa was chartered out in August 2022. The new
    charter agreement from December 2024 is effective from 1 January 2025 for
    six months. The agreement includes the option of extending the agreement at
    the end of the agreement period by another 7+6+6 moths.

Earnings

In  the first quarter of 2025, the Group generated gross loss of EUR 4.7 million
compared  to gross profit of EUR 13.8 million  in the first quarter of 2024. The
Group  generated  negative  EBITDA  of  EUR  3.8 million in the first quarter of
2025. In  the first quarter of 2024, the  Group's EBITDA of EUR 34.5 million was
impacted by non-recurring income from the sale of the cruise vessel Isabelle.

Amortisation  and depreciation expense decreased by EUR 1.3 million to EUR 23.3
million year-on-year.

As  a result of decreased outstanding  loan balance and declining interest rates
net finance costs declined by EUR 1.4 million year-on-year to EUR 6.1 million in
the first quarter of 2025 (EUR 7.5 million in the first quarter of 2024).

The  Group's unaudited  net loss  for the  first quarter  of 2025 was  EUR 33.2
million  or EUR 0.045 per share. The  Group's profitability was largely impacted
by  4 vessels in lay-up. By excluding the  loss generated from vessels in lay-up
the  Group's quarterly  result was  comparable to  the pre-crisis  first quarter
result of 2019. In the first quarter of 2024, the Group earned net profit of EUR
2.6 million or EUR 0.003 per share.

Investments

The  Group's  investments  in  the  first  quarter of 2025 amounted to EUR 13.3
million  (EUR 6.3 million in the first quarter of 2024). Majority of investments
were  maintenance and refurbishment works in  the cruise ferries Baltic Princess
and  Silja  Serenade  including  significant  technical and electronic upgrades.
During  the  dry  docking  of  the  cruise  ferry  Silja Serenade the underwater
components, such as the bow thrusters and rudders, were serviced, and the vessel
was  partly repainted. In  addition, extensive refurbishment  of passenger areas
was done on the cruise ferry Baltic Princess.

Financial Position

At  the end of the  first quarter of 2025, the  Group's net debt amounted to EUR
569.1 million,  up by EUR 31.4 million compared to the end of the financial year
2024. The  net debt to EBITDA  ratio was 4.16 at the  reporting date (3.07 as at
31 December 2024).

As at 31 March 2025, the Group's cash and cash equivalents amounted to EUR 15.9
million  (EUR 18.7 million as  at 31 December 2024) and  the Group had EUR 54.7
million  in unused credit  lines (EUR 75.0 million  as at 31 December 2025). The
total  liquidity buffer  (cash, cash  equivalents and  unused credit facilities)
amounted to EUR 70.5 million (EUR 93.7 million as at 31 December 2025).

During  the quarter, the Group repaid loans  and related interest expense in the
amount of EUR 20.8 million (EUR 22.4 million in the first quarter of 2024).

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.

Concorded  with the Supervisory Board of the  Group, the Management Board of the
Group  has decided to prepare a proposal  to the General Meeting of Shareholders
to pay a dividend of EUR 0,06 per share in 2025.

Key Figures

 For the period                                 Q1 2025     Q1 2024     Q1 2023
                                           ------------------------------------
 Revenue (EUR million)                            137.3       160.4       171.2

 Gross profit/loss (EUR million)                   -4.7        13.8        24.8

 EBITDA¹ (EUR million)                             -3.8        34.5        27.1

 EBIT¹ (EUR million)                              -27.1         9.8         1.9

 Net profit/loss for the period (EUR
 million)                                         -33.2         2.6        -5.4



 Depreciation and amortisation (EUR
 million)                                          23.3        24.6        25.2

 Capital expenditures¹ ²(EUR million)              13.3         6.3        11.5

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

 Earnings/loss per share¹ (EUR)                  -0.045       0.003      -0.007



 Number of passengers                           970 359   1 102 738   1 049 777

 Number of cargo units                           57 830      84 950      86 732

 Average number of employees                      4 773       4 888       4 914



 As at                                       31.03.2025  31.12.2024  31.03.2024
                                           ------------------------------------
 Total assets (EUR million)                     1 470.5     1 463.9     1 548.6

 Total liabilities (EUR million)                  721.4       711.5       760.0

 Interest-bearing liabilities (EUR million)       584.9       556.4       629.9

 Net debt¹ (EUR million)                          569.1       537.7       581.0

 Net debt to EBITDA¹                                4.2         3.1         2.6

 Total equity (EUR million)                       749.1       782.3       788.6

 Equity ratio¹ (%)                                  51%         53%         51%



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

 Shareholders' equity per share (EUR)              1.01        1.05        1.06



 Ratios¹                                        Q1 2025     Q1 2024     Q1 2023
                                           ------------------------------------
 Gross margin (%)                                 -3.5%        8.6%       14.5%

 EBITDA margin (%)                                -2.8%       21.5%       15.8%

 EBIT margin (%)                                 -19.8%        6.1%        1.1%

 Net profit/loss margin (%)                      -24.2%        1.6%       -3.2%



 ROA (%)                                           2.7%        7.6%        4.6%

 ROE (%)                                           0.6%       11.4%        7.1%

 ROCE (%)                                          3.2%        9.1%        6.0%

1 Alternative performance measures based on ESMA guidelines are disclosed in the
Alternative Performance Measures section of 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

 Unaudited, in thousands of EUR                                Q1 2025  Q1 2024
-------------------------------------------------------------------------------
 Revenue                                                       137 278  160 402

 Cost of sales                                                -142 026 -146 603
-------------------------------------------------------------------------------
 Gross profit/loss                                              -4 748   13 799



 Sales and marketing expenses                                  -10 299   -9 769

 Administrative expenses                                       -12 842  -12 745

 Other operating income                                            844   19 377

 Other operating expenses                                          -89     -827
-------------------------------------------------------------------------------
 Result from operating activities                              -27 134    9 835



 Finance income                                                     32      228

 Finance costs                                                  -6 099   -7 683
-------------------------------------------------------------------------------
 Profit/loss before income tax                                 -33 201    2 380



 Income tax                                                          0      192



 Net profit/loss for the period                                -33 201    2 572

 Net profit/loss for the period attributable to equity
 holders of the Parent                                         -33 201    2 572



 Other comprehensive income

 Items that may be reclassified to profit or loss

 Exchange differences on translating foreign operations           -158      191
-------------------------------------------------------------------------------
 Other comprehensive income for the period                        -158      191



 Total comprehensive profit/loss for the period                -33 359    2 763

 Total comprehensive profit/loss for the period attributable
 to equity holders of the Parent                               -33 359    2 763



 EPS (in EUR)                                                   -0.045    0.003

 Diluted EPS (in EUR)                                           -0.044    0.003
-------------------------------------------------------------------------------



Consolidated statement of financial position

 Unaudited, in thousands of EUR                31.03.2025 31.03.2024 31.12.2024
-------------------------------------------------------------------------------
 ASSETS

 Cash and cash equivalents                         15 855     48 872     18 705

 Trade and other receivables                       31 380     30 718     25 268

 Prepayments                                       18 083     22 411      8 764

 Prepaid income tax                                     0        193          0

 Inventories                                       47 250     42 192     48 083
-------------------------------------------------------------------------------
      Short-term intangible assets                  8 128      1 481      6 901

 Current assets                                   120 696    145 867    107 721



 Other financial assets and prepayments               514        499        518

 Deferred income tax assets                        21 840     21 840     21 840

 Investment property                                  300        300        300

 Property, plant and equipment                  1 304 584  1 353 435  1 310 000

 Intangible assets                                 22 606     26 663     23 562
-------------------------------------------------------------------------------
 Non-current assets                             1 349 844  1 402 737  1 356 220

 TOTAL ASSETS                                   1 470 540  1 548 604  1 463 941



 LIABILITIES AND EQUITY

 Interest-bearing loans and borrowings            150 344    104 486    104 549

 Trade and other payables                          96 242     89 969     95 146

 Payables to owners                                     6          6          6

 Income tax liability                                   6         10          7

 Deferred income                                   40 251     40 163     30 102
-------------------------------------------------------------------------------
 Current liabilities                              286 849    234 634    229 810



 Interest-bearing loans and borrowings            434 565    525 381    451 825
-------------------------------------------------------------------------------
 Non-current liabilities                          434 565    525 381    451 825
-------------------------------------------------------------------------------
 Total liabilities                                721 414    760 015    681 635



 Share capital                                    349 477    349 477    349 477

 Share premium                                        663        663        663

 Reserves                                          65 410     66 807     65 901

 Retained earnings                                333 576    371 642    366 265
-------------------------------------------------------------------------------
 Equity attributable to equity holders of the
 Parent                                           749 126    788 589    782 306

 Total equity                                     749 126    788 589    782 306
-------------------------------------------------------------------------------
 TOTAL LIABILITIES AND EQUITY                   1 470 540  1 548 604  1 463 941



Consolidated statement of cash flows

 Unaudited, in thousands of EUR                                 Q1 2025 Q1 2024
-------------------------------------------------------------------------------


 CASH FLOWS FROM OPERATING ACTIVITIES

 Net profit/loss for the period                                 -33 201   2 572

 Adjustments                                                     29 464  13 863

 Changes in:

 Receivables and prepayments related to operating activities    -15 427  -9 208

 Inventories                                                       -394  -2 262

 Liabilities related to operating activities                     10 825  11 625
-------------------------------------------------------------------------------
 Changes in assets and liabilities                               -4 996     155

 Cash generated from operating activities                        -8 733  16 590

 Income tax repaid/paid                                              -1      -7
-------------------------------------------------------------------------------
 NET CASH FROM/USED OPERATING ACTIVITIES                         -8 734  16 583



 CASH FLOWS FROM INVESTING ACTIVITIES

 Purchase of property, plant, equipment and intangible assets
 (Notes 6, 7)                                                   -13 290  -6 327

 Proceeds from disposals of property, plant, equipment                0  24 436

 Interest received                                                   32     228
-------------------------------------------------------------------------------
 NET CASH USED IN INVESTING ACTIVITIES                          -13 258  18 337



 CASH FLOWS FROM FINANCING ACTIVITIES

 Repayment of loans received (Note 8)                           -15 970 -15 970

 Change in overdraft (Note 8)                                    45 338       0

 Payment of lease liabilities (Note 8)                           -4 858  -4 669

 Interest paid                                                   -5 368  -6 972

 Payment of transaction costs related to loans                        0    -358

 NET CASH FROM/USED IN FINANCING ACTIVITIES                      19 142 -27 969



 TOTAL NET CASH FLOW                                             -2 850   6 951
-------------------------------------------------------------------------------


 Cash and cash equivalents at the beginning of period            18 705  41 921

 Change in cash and cash equivalents                             -2 850   6 951
-------------------------------------------------------------------------------
 Cash and cash equivalents at the end of period                  15 855  48 872



Anneli Simm
Investor Relations Manager

AS Tallink Grupp
Sadama 5
10111 Tallinn, Estonia
E-mail [email protected] (mailto:[email protected])
Phone: +372 56157170