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AS Tallink Grupp Unaudited Consolidated Interim Report for the Q2 2025

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The results of AS Tallink Grupp for the Q2 2025 will be introduced at an
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Further details are available in a previously published announcement
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In  the second  quarter (1  April -  30 June) of  2025, AS Tallink Grupp and its
subsidiaries  (hereinafter  referred  to  as  "the  Group")  carried  1 488 128
passengers, which is 2.5% more than in the second quarter of 2024. The number of
cargo units transported decreased by 22.8% year-on-year amounting to 67 038. The
number  of passenger vehicles was up by  1.4% compared to the same period a year
ago and amounted to 212 782.

The  Group's unaudited consolidated  revenue amounted to  EUR 207.0 million (EUR
210.0 million  in Q2 2024). Unaudited EBITDA was EUR 37.4 million (EBITDA of EUR
46.6 million  in Q2 2024) and the unaudited net loss for the period was EUR 2.5
million (net profit of EUR 6.1 million in Q2 2024).

The  following operational  factors impacted  the Group's  revenue and operating
results in the second 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 13 vessels including 2
    shuttle vessels, 6 passenger vessels, 3 vessels that were chartered out and
    2 vessels that were in lay-up.
  * The Group signed and executed the sale-purchase agreement with Irish
    Continental Group plc for the sale of the passenger vessel Star I in April
    2025.
  * The Group operated 3 hotels in Tallinn and 1 in Riga.
  * Income tax on dividends in the amount of EUR 11.4 million was recorded in
    the second quarter of 2025.
  * The Group's net debt was EUR 459.7 million as at the end of the second
    quarter of 2025 (EUR 569.1 million as at 31 March 2025) bringing the net
    debt to EBITDA ratio to 3.6 as at 30 June 2025.
  * In the second quarter of 2025, total loan repayment and interest payment
    amounted to EUR 53.6 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 second quarter of 2025, the Group's  total revenue decreased by EUR 3.1
million to EUR 207.0 million compared to EUR 210.0 million a year ago.

Revenue  from route operations (the Group's core business) decreased by EUR 1.0
million to EUR 167.8 million compared to the second quarter of 2024. The segment
result  from route operations (the Group's  core business) amounted to EUR 21.2
million compared to EUR 25.6 million in the second quarter of 2024.

The number of passengers carried on the Estonia-Finland route increased by 4.9%
in  year-on-year comparison. The number of  transported cargo units decreased by
23.9%. Revenue  from the Estonia-Finland route held  steady compared to the same
period  a year  ago and  amounted to  EUR 84.6 million  while the segment result
decreased  by  EUR  4.5 million  to  EUR 20.5 million, year-on-year. The segment
reflects  the operations  of two  shuttle vessels,  MyStar and Megastar, and the
cruise  ferry Victoria I. A  year ago, the cruise  ferry Victoria I operated the
Tallinn-Stockholm route from 31 May until 31 August 2024.

In  the  second  quarter  of  2025, the  year-on-year  increase in the number of
passengers  on Finland-Sweden routes  was 2.8%. The number  of transported cargo
units  decreased by 32.4%. The  routes' revenue increased  by EUR 1.8 million to
EUR 60.4 million and the segment result increased by EUR 0.4 million to EUR 1.9
million,  year-on-year. The segment reflects the  operations of one cruise ferry
on the Turku-Stockholm (the cruise ferry Baltic Princess) and two cruise ferries
on  the Helsinki-Stockholm  route (the  cruise ferries  Silja Serenade and Silja
Symphony).

On Estonia-Sweden routes the number of carried passengers decreased by 10.9% and
the  number of  transported cargo  units decreased  by 6.1% compared to the same
period  a year ago. Year-on-year, the revenue of Estonia-Sweden routes decreased
by  EUR 2.9 million to EUR 22.9 million. The  segment loss increased by EUR 0.3
million  to a loss  of EUR 1.1 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 the passenger vessel Star I until 12
April  and from thereon the route was operated by the passenger vessel Superfast
IX.  During  the  same  period  a  year  ago,  the Paldiski-Kapellskär route was
operated  by  two  cargo  vessels  -  Sailor  and Regal Star. Also, the Tallinn-
Stockholm route was operated by two cruise ferries, Baltic Queen and Victoria I,
from 31 May to 31 August 2024.

Revenue  from the  segment Other  decreased by  a total  of EUR  2.2 million and
amounted  to EUR  40.7 million. The  segment result  amounted to EUR 6.3 million
decreasing  by  EUR  3.1 million  compared  to  the  same period a year ago. The
decrease in revenues and result was mainly driven by fewer vessels on charter in
the  beginning of the quarter  compared to the same  period a year ago since the
cruise  ferry Romantika was chartered out at the  end of May 2025. As at the end
of  the second quarter  of 2025, the Group  had 3 vessels on  charter. Until May
2024, 4 vessels  were in charter when the passenger vessel Superfast IX returned
from  long-term charter from Canada. At the  end of the second quarter of 2024,
the Group had 3 vessels on charter.

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

  * The cruise ferry Romantika was chartered out in May 2025 to the Algerian
    state-owned enterprise Madar Maritime Company EPE/SPA for 9 months with an
    option to extend the agreement by 6+6 months upon its expiration.
  * The cruise ferry Galaxy I was chartered out in September 2022 to
    Slaapschepen Public BV, an organisation nominated by Centraal Orgaan Opvang
    Asielzoekers (COA) in the Netherlands. 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 Slaapschepen
    Public BV, an organisation nominated by Centraal Orgaan Opvang Asielzoekers
    (COA) in the Netherlands. The charter agreement from December 2024 was
    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. After the end of the initial term, the agreement was
    extended until the end of January 2026.

Earnings

In  the second quarter  of 2025, the Group's  gross profit declined  by EUR 7.8
million  to EUR 39.1 million compared to  EUR 46.8 million in the second quarter
of 2024. The Group generated EBITDA of EUR 37.4 million in the second quarter of
2025 compared to EUR 46.6 million a year ago.

Amortisation  and depreciation expense decreased by EUR 1.5 million to EUR 22.8
million year-on-year. The decline was partly driven by the sale of the passenger
vessel Star I in April 2025.

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 5.7 million in
the second quarter of 2025 (EUR 7.1 million in the second quarter of 2024).

The  Group's unaudited  net loss  for the  second quarter  of 2025 was  EUR 2.5
million  or EUR 0.003 per  share. Among other  factors the Group's profitability
was  impacted by the vessels in lay-up. In the second quarter of 2024, the Group
earned net profit of EUR 6.1 million or EUR 0.008 per share.

Investments

The  Group's  investments  in  the  second  quarter of 2025 amounted to EUR 8.4
million (EUR 4.6 million in the second quarter of 2024). Majority of investments
in  vessels included the maintenance and refurbishment works on the cruise ferry
Baltic Princess. The Group also continued to invest in the improvement of its IT
systems.

Financial Position

At  the end of the second quarter of  2025, the Group's net debt amounted to EUR
459.7 million, down by EUR 89.2 million compared to the end of the first quarter
of  2025. The net debt to EBITDA ratio was 3.6 at the reporting date (4.16 as at
31 March 2025).

As  at 30 June 2025, the Group's cash and cash equivalents amounted to EUR 36.0
million  (EUR  15.9 million  as  at  31 March  2025) and the Group had EUR 92.0
million in unused credit lines (EUR 54.7 million as at 31 March 2025). The total
liquidity  buffer (cash, cash equivalents and unused credit facilities) amounted
to EUR 128.0 million (EUR 70.5 million as at 31 March 2025).

During the quarter, the Group repaid loans and interest expense in the amount of
EUR 53.6 million (EUR 24.9 million in the second 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.

The  Annual  General  Meeting  of  Shareholders  held  on  20 May 2025 adopted a
resolution  to pay a dividend of EUR  0.06 per share in 2025 in the total amount
of  EUR 44.6 million.  In 2025 the  dividends are  paid in  two instalments. The
first  instalment of EUR 0.03 per share in  the total amount of EUR 22.3 million
was paid out on 2 July 2025 and the second instalment of EUR 0.03 per share will
be paid out on 25 November 2025.

Key Figures

 For the                                               Jan-Jun     Jan-Jun     Jan-Jun
 period            Q2 2025     Q2 2024     Q2 2023        2025        2024        2023

 Revenue (EUR
 million)            207.0       210.0       229.7       344.2       370.4       400.9

 Gross
 profit/loss
 (EUR million)        39.1        46.8        66.5        34.3        60.6        91.3

 EBITDA¹ (EUR
 million)             37.4        46.6        68.5        33.6        81.1        95.6

 EBIT¹ (EUR
 million)             14.5        22.3        43.3       -12.6        32.1        45.1

 Net
 profit/loss
 for the
 period (EUR
 million)             -2.5         6.1        33.4       -35.7         8.7        28.0



 Depreciation
 and
 amortisation
 (EUR million)        22.8        24.3        25.3        46.2        49.0        50.5

 Capital
 expenditures¹
 ²(EUR
 million)              8.4         4.6         4.7        21.7        10.9        16.2

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

 Earnings/loss
 per share¹
 (EUR)              -0.003       0.008       0.045      -0.048       0.012       0.038



 Number of
 passengers      1 488 128   1 451 768   1 541 081   2 458 487   2 554 506   2 590 858

 Number of
 cargo units        67 038      86 813      85 359     124 868     171 763     172 091

 Average
 number of
 employees           5 050       5 060       4 973       4 912       4 974       4 938



 As at          30.06.2025  31.03.2025  31.12.2024  30.06.2025  30.06.2024  30.06.2023

 Total assets
 (EUR million)     1 413.7     1 470.5     1 463.9     1 413.7     1 567.0     1 613.6

 Total
 liabilities
 (EUR million)       715.6       721.4       681.6       715.6       816.6       878.4

 Interest-
 bearing
 liabilities
 (EUR million)       495.7       584.9       556.4       495.7       619.8       722.5

 Net debt¹
 (EUR million)       459.7       569.1       537.7       459.7       548.9       664.9

 Net debt to
 EBITDA¹               3.6         4.2         3.1         3.6         2.7         3.1

 Total equity
 (EUR million)       698.1       749.1       782.3       698.1       750.4       735.2

 Equity ratio¹
 (%)                   49%         51%         53%         49%         48%         46%



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

 Shareholders'
 equity per
 share (EUR)          0.94        1.01        1.05        0.94        1.01        0.99



 Ratios¹                                               Jan-Jun     Jan-Jun     Jan-Jun
                   Q2 2025     Q2 2024     Q2 2023        2025        2024        2023

 Gross margin
 (%)                 18.9%       22.3%       28.9%       10.0%       16.4%       22.8%

 EBITDA margin
 (%)                 18.1%       22.2%       29.8%        9.8%       21.9%       23.8%

 EBIT margin
 (%)                  7.0%       10.6%       18.8%       -3.7%        8.7%       11.3%

 Net
 profit/loss
 margin (%)          -1.2%        2.9%       14.6%      -10.4%        2.3%        7.0%



 ROA (%)              2.2%        6.4%        7.0%        2.2%        6.4%        7.0%

 ROE (%)             -0.5%        7.7%       11.8%       -0.5%        7.7%       11.8%

 ROCE (%)             2.7%        7.7%        8.9%        2.7%        7.7%        8.9%

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                                 Jan-Jun Jan-Jun
                                                Q2 2025 Q2 2024    2025    2024



 CASH FLOWS FROM OPERATING ACTIVITIES

 Net profit/loss for the period                  -2 486   6 106 -35 687   8 678

 Adjustments                                     40 638  40 547  70 102  54 410

 Changes in:

 Receivables and prepayments related to
 operating activities                            -6 723   2 299 -22 150  -6 909

 Inventories                                        923  -7 903     529 -10 165

 Liabilities related to operating activities     28 028  14 560  38 853  26 185

 Changes in assets and liabilities               22 228   8 956  17 232   9 111

 Cash generated from operating activities        60 380  55 609  51 647  72 199

 Income tax repaid/paid                             -75     -18     -76     -25

 NET CASH FROM/USED OPERATING ACTIVITIES         60 305  55 591  51 571  72 174



 CASH FLOWS FROM INVESTING ACTIVITIES

 Purchase of property, plant, equipment and
 intangible assets                               -8 415  -4 435 -21 705 -10 762

 Proceeds from disposals of property, plant,
 equipment                                       64 617      54  64 617  24 490

 Interest received                                   62     261      94     489

 NET CASH USED IN INVESTING ACTIVITIES           56 264  -4 120  43 006  14 217



 CASH FLOWS FROM FINANCING ACTIVITIES

 Repayment of loans received                    -47 535 -16 482 -63 505 -32 452

 Change in overdraft                            -37 382      26   7 956      26

 Payment of lease liabilities                    -4 864  -4 467  -9 722  -9 136

 Interest paid                                   -6 048  -8 465 -11 416 -15 437

 Payment of transaction costs related to loans     -616     -92    -616    -450

 NET CASH FROM/USED IN FINANCING ACTIVITIES     -96 445 -29 480 -77 303 -57 449



 TOTAL NET CASH FLOW                             20 124  21 991  17 274  28 942



 Cash and cash equivalents at the beginning of
 period                                          15 855  48 872  18 705  41 921

 Change in cash and cash equivalents             20 124  21 991  17 274  28 942

 Cash and cash equivalents at the end of period  35 979  70 863  35 979  70 863

Consolidated statement of financial position

 Unaudited, in thousands of EUR                30.06.2025 30.06.2024 31.12.2024

 ASSETS

 Cash and cash equivalents                         35 979     70 863     18 705

 Trade and other receivables                       39 815     33 915     25 268

 Prepayments                                       16 528     17 046      8 764

 Prepaid income tax                                     0        193          0

 Inventories                                       46 211     48 244     48 083

 Short-term intangible assets                       8 244      3 332      6 901

 Current assets                                   146 777    173 593    107 721



 Other financial assets and prepayments               481        500        518

 Deferred income tax assets                        21 840     21 840     21 840

 Investment property                                  300        300        300

 Property, plant and equipment                  1 222 569  1 345 138  1 310 000

 Intangible assets                                 21 770     25 647     23 562

 Non-current assets                             1 266 960  1 393 425  1 356 220

 TOTAL ASSETS                                   1 413 737  1 567 018  1 463 941



 LIABILITIES AND EQUITY

 Interest-bearing loans and borrowings             83 174    104 582    104 549

 Trade and other payables                         111 007     97 108     95 146

 Payables to owners                                44 620     44 620          6

 Income tax liability                              11 417      9 211          7

 Deferred income                                   52 908     45 912     30 102

 Current liabilities                              303 126    301 433    229 810



 Interest-bearing loans and borrowings            412 506    515 214    451 825

 Non-current liabilities                          412 506    515 214    451 825

 Total liabilities                                715 632    816 647    681 635



 Share capital                                    349 477    349 477    349 477

 Share premium                                        663        663        663

 Reserves                                          60 882     66 586     65 901

 Retained earnings                                287 083    333 645    366 265

 Equity attributable to equity holders of the
 Parent                                           698 105    750 371    782 306

 Total equity                                     698 105    750 371    782 306

 TOTAL LIABILITIES AND EQUITY                   1 413 737  1 567 018  1 463 941


Consolidated statement of cash flows

                                                                Jan-Jun Jan-Jun
 Unaudited, in thousands of EUR                 Q2 2025 Q2 2024    2025    2024



 CASH FLOWS FROM OPERATING ACTIVITIES

 Net profit/loss for the period                  -2 486   6 106 -35 687   8 678

 Adjustments                                     40 638  40 547  70 102  54 410

 Changes in:

 Receivables and prepayments related to
 operating activities                            -6 723   2 299 -22 150  -6 909

 Inventories                                        923  -7 903     529 -10 165

 Liabilities related to operating activities     28 028  14 560  38 853  26 185

 Changes in assets and liabilities               22 228   8 956  17 232   9 111

 Cash generated from operating activities        60 380  55 609  51 647  72 199

 Income tax repaid/paid                             -75     -18     -76     -25

 NET CASH FROM/USED OPERATING ACTIVITIES         60 305  55 591  51 571  72 174



 CASH FLOWS FROM INVESTING ACTIVITIES

 Purchase of property, plant, equipment and
 intangible assets                               -8 415  -4 435 -21 705 -10 762

 Proceeds from disposals of property, plant,
 equipment                                       64 617      54  64 617  24 490

 Interest received                                   62     261      94     489

 NET CASH USED IN INVESTING ACTIVITIES           56 264  -4 120  43 006  14 217



 CASH FLOWS FROM FINANCING ACTIVITIES

 Repayment of loans received                    -47 535 -16 482 -63 505 -32 452

 Change in overdraft                            -37 382      26   7 956      26

 Payment of lease liabilities                    -4 864  -4 467  -9 722  -9 136

 Interest paid                                   -6 048  -8 465 -11 416 -15 437

 Payment of transaction costs related to loans     -616     -92    -616    -450

 NET CASH FROM/USED IN FINANCING ACTIVITIES     -96 445 -29 480 -77 303 -57 449



 TOTAL NET CASH FLOW                             20 124  21 991  17 274  28 942



 Cash and cash equivalents at the beginning of
 period                                          15 855  48 872  18 705  41 921

 Change in cash and cash equivalents             20 124  21 991  17 274  28 942

 Cash and cash equivalents at the end of period  35 979  70 863  35 979  70 863



Anneli Simm
Investor Relations Manager

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