Börsiteade

Pealkiri

Tallinna Sadam subsidiary TS Laevad and Road Administration signed an agreement for additional trips and acquiring new ferry for Virtsu-Kuivastu line

Teade

In connection with the expected increase in demand on the Virtsu-Kuivastu and
Rohuküla-Heltermaa ferry lines in the following years, OÜ TS Laevad, a
subsidiary of AS Tallinna Sadam, and the Estonian Road Administration signed an
annex to the additional public passenger service agreement with the aim of
performing at least 500 additional voyages on the Virtsu-Kuivastu route each
year in the period 01.06.2020-30.09.2026. Since it is not possible to make such
an additional number of additional voyages with the existing fleet during the
peak season, it is necessary to acquire a new additional ferry for the route.
According to the agreement, the Road Administration will order additional
voyages in 2020-2022 similarly to the summer periods of previous years -
additional voyages will be performed by M/S Regula or another suitable ferry
available, on condition that the spare vessel can be temporarily provided during
the high season. The agreement sets the goal that in the years 2023-2026
additional voyages will be made by a new-built ferry, the fee and other
conditions of which will be agreed after TS Laevad conducts a tender for the
construction of the ship and the acquisition cost and terms become clear. The
Road Administration has the option to refuse to order additional voyages if the
parties do not reach an agreement on the service charges, for example if the
possible acquisition cost of a new vessel turns out to be too high.

According  to the state's  wishes, the vessel  must be environmentally friendly,
have  an ice class and an  on-board shop, and can also  be used on the Rohuküla-
Heltermaa line with low sea level. The total length of a suitable ferry is up to
114m, draft  about  3.5m, capacity  approximately  300 passengers  and  110-120
passenger  cars or 8 semi-trailer trucks with a length of 19m. The parameters of
the  vessel to be acquired have also  been negotiated with local communities. TS
Laevad  plans to organize a tender for  the construction of the additional ferry
in the second half of 2020 after the completion of the design work.

According  to the ferry services agreement with the Estonian Road Administration
signed  on  11.12.2014, TS  Laevad  provides  ferry  services  on  the Rohuküla-
Heltermaa  and Virtsu-Kuivastu ferry lines  until 30.09.2026. TS Laevad also has
the necessary competence in the specialities of operating shipping lines and up-
to-date experience in acquiring new ferries.

More  detailed impact on the economic activities  of Tallinna Sadam Group can be
assessed  after  the  cost  of  the  additional  volume  of  the service and the
acquisition  cost of  the new  ferry have  been determined  and an  annex to the
respective agreement has been concluded with the Road Administration.

Tallinna  Sadam is one of the largest cargo- and passenger port complexes in the
Baltic  Sea region,  which in  2019 serviced 10.64 million  passengers and 19.9
million  tons of cargo. 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  audited  financial
results,  Tallinna  Sadam  group's  sales  in  2019 totaled  EUR  130.5 million,
adjusted EBITDA EUR 74.3 million and net profit EUR 44.4 million.

Additional information:

Marju Zirel
Head of Investor Relations
AS Tallinna Sadam
[email protected] (mailto:[email protected])