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Pealkiri

AS Tallink Grupp Unaudited Consolidated Interim Report Q4 2020

Teade

In the 2020 financial year (1 January - 31 December), Tallink Grupp AS and its
subsidiaries (the Group) carried a total of 3 732 102 passengers, which is 62%
passengers less compared to the 2019 financial year. The number of cargo units
transported decreased by 5.2% compared to the previous financial year. The
Group's unaudited consolidated revenue amounted to EUR 442.9 million (EUR 949.1
million in 2019). Unaudited EBITDA was EUR 8.0 million (EUR 171.1 million,
2019) and unaudited net loss for the financial year was EUR 108.3 million or EUR
0.16 per share (net profit of EUR 49.7 million or EUR 0.07 per share, 2019).

Impact of Covid-19 and travel restrictions
In the 2020 financial year, the Group's operations and operating results were
strongly influenced by the Covid-19 situation, restrictions on international
travel and communications advising against travelling by state authorities. As a
result of changes in the operating schedules there were 20% less trips compared
to last year. Other limitations included restrictions on maximum capacity on
vessels.

Travelling restrictions on all routes were in force from March until June and
again starting from September. While the restrictions remained limited in most
markets during the summer months, the restrictions for international passenger
traffic to and from Sweden have been continuously in force effectively since
March 2020. During the summer, vessel operations were flexibly rerouted to other
routes and operated various special cruises. From mid-December the Group
operates the shuttle and cargo service on Estonia-Finland route, Turku-Stockholm
route and Paldiski-Kapellskär cargo route with the operation of other routes and
vessels suspended.

Several operational changes were effective in 2020:

  * Daily operations of the Tallinn-Stockholm, Riga-Stockholm and Helsinki-
    Stockholm routes were suspended from mid-March 2020.
  * Tallink City Hotel was closed from March 2020, Riga Hotel was from since
    October 2020.

Throughout the year our vessels were flexibly rerouted to other routes:

  * The cruise ferry Victoria I was temporarily rerouted to the Tallinn-Helsinki
    route from June until late December. It also operated a limited number of
    special cruises to various destinations. In autumn, the ferry operated also
    weekly Tallinn-Stockholm-Riga roundtrip.
  * During summer season and until the end of September, the cruise ferry Baltic
    Queen operated special cruises from Tallinn to Mariehamn and from Tallinn to
    Turku. In addition to that, the cruise ferry also operated special return
    trips on the Tallinn-Stockholm route and special cruises on the Helsinki-
    Riga route.
  * From mid-March until mid-April the shuttle vessel Star was temporarily
    rerouted to Paldiski-Sassnitz route.
  * In spring, the cruise ferry Romantika operated special return trips on the
    Riga-Stockholm route in order to secure transport of cargo. During summer
    season and until the end of September the ferry operated special cruises
    from Riga to Mariehamn and from Riga to Helsinki.
  * The cruise ferry Isabelle operated temporarily on the Paldiski-Kapellskär
    route from June to October.
  * The cruise ferry Silja Serenade operated on the Helsinki-Riga route during
    summer season.
  * From July until the end of October the cruise ferry Silja Symphony operated
    special cruises from Stockholm to Visby and special cruises from Stockholm
    to Härnösand.

The Estonia-Finland routes shuttle vessels Megastar, cargo vessel Seawind, the
Paldiski-Kapellskär route cargo vessel Regal Star and the Turku-Stockholm route
cruise ferries Baltic Princess and Galaxy continued operating on their regular
routes. Shuttle vessel Star returned to Tallinn-Helsinki route operations from
mid-May. From July 2020, cargo vessel Sailor started operating on Paldiski-
Kapellskär route in addition to cargo vessel Regal Star.

Changes concerning personnel
Due to the Covid-19 situation the following changes relating to personnel were
in force in the financial year of 2020:

  * During spring the workload and remuneration of all Latvian and Estonian
    personnel was reduced to 70% for two and three months, respectively.
  * In autumn the workload and remuneration of a portion of Estonian personnel
    was reduced to 70% until spring 2021.
  * Most of the Finnish personnel were temporarily laid off, except the staff on
    duty.
  * The workload of Swedish personnel was reduced to varying extent.
  * Reorganisation and collective redundancies concerned both shore and sea
    personnel in all markets.

Given the different labour regulations in our home markets most efficient
immediate response to the changes in the environment was possible on the Finnish
flagged vessels. The situation was the most difficult in Estonia and Latvia
where the rigid legislation did not enable to combine unpaid leave with other
salary support measures to the employee. Therefore, lengthy redundancies
processes were first initiated in Estonia and Latvia but were carried out in
Finland and Sweden later in the year. After completion of the processes some
support functions were migrated to Estonia.

As a result of changes in the business and processes regarding personnel,
including collective redundancies processes, the number of employees at the end
of the year decreased by 3 040 compared to the beginning of the year. The
average number of employees during the year and the number of employees at the
end of the year were, respectively, 16.0% and 42.0% lower compared to the same
period last year.

Support measures
In the second quarter of 2020 the Group used temporary salary compensation
measures offered by the states.

In the second quarter of 2020, the Estonian Parliament approved the change in
legislation granting exemption from ships' fairway dues for twelve months
starting from April 2020. The effect of the exemption amounted to EUR 3.4
million in the 2020 financial year.

During the year the Group received a net total of EUR 36.6 million in direct
financial support from various government grants from all home markets.

Activities to improve liquidity
On 30 July 2020, the shareholders' annual general meeting decided not to pay
dividends from net profit for 2019.

In order to relieve the liquidity issues caused by the Covid-19 situation, the
Group's companies were allowed to postpone the tax payments. At the end of the
year, the postponed tax liability amounted to EUR 5.4 million and will be paid
by autumn 2021.

During the year the Group negotiated with existing and new financial
institutions financing and payment terms including waivers of loan covenants,
deferral of loan principal repayments for the year 2020 and new loan agreements.
As a result, the Group's liquidity improved in great extent.

Sales and segments
In 2020, the Group's total revenue decreased by EUR 506.2 million and amounted
to EUR 442.9 million. The total revenue in 2019 amounted to EUR 949.1 million
and in 2018 to EUR 949.7 million.

Revenue from route operations (core business) decreased by EUR 483.0 million to
EUR 400.2 million. The passenger operations and segment results on all routes
were significantly affected by the Covid-19 situation and imposed travel
restrictions.

In 2020, The Group's ships carried a total of 2.4 million passengers on the
Estonia-Finland routes, which is a 52.3% decrease compared to last year. The
number of transported cargo units on the routes increased by 1.0%. Estonia-
Finland routes' revenue decreased by EUR 153.5 million and amounted to EUR
200.4 million. The segment result decreased by EUR 77.0 million to EUR 3.5
million. The Estonia-Finland routes' results include also the operations of the
Tallinn-Turku, Tallinn-Mariehamn and Paldiski-Sassnitz routes.

The Finland-Sweden routes' revenue decreased by EUR 194.9 million and amounted
to EUR 149.5 million. The segment result decreased by EUR 80.7 million to EUR
-53.9 million. The Finland-Sweden routes' results include also the operations of
the Helsinki-Riga route and the special cruises from Stockholm to Visby and to
Härnösand.

The Estonia-Sweden routes' revenue decreased by EUR 77.4 million, compared to
the previous year, and amounted to EUR 34.9 million. The segment result
decreased by EUR 22.6 million to EUR -17.9 million. The Estonia-Sweden routes'
results reflect the operations of the Paldiski-Kapellskär route and the limited
operations of the Tallinn-Stockholm route.

The Latvia-Sweden route's revenue decreased by EUR 57.1 million, compared to the
previous year and amounted to EUR 15.4 million. The segment result decreased by
EUR 18.1 million to EUR -17.5 million. The Latvia-Sweden route's results include
the limited operations of the Riga-Stockholm route as well as the special
cruises from Riga to Helsinki and to Mariehamn.

Revenue from the segment other decreased by a total of EUR 28.5 million and
amounted to EUR 45.2 million. The decrease was mainly driven by significantly
lower accommodation sales and lower revenue from services provided at the
hotels. The segment revenue was positively impacted by an increase in online
shop sales, opening of Burger King restaurants and revenue from providing
mooring services at the Tallinn Old City Harbour.

Earnings
In 2020, the Group's gross profit decreased by EUR 240.3 million compared to
last year, amounting to EUR -43.5 million. The Group's EBITDA decreased by EUR
163.1 million and amounted to EUR 8.0 million.

In 2020 the Group's profitability was impacted mainly by the following factors:

  * Significant cut in operating expenses, including significant decrease in
    personnel expenses as a result of collective redundancies, state support
    measures and remuneration cuts.
  * Negative impact from one-off costs related to redundancies processes in the
    amount of EUR 9.0 million. Positive financial impact from the redundancy
    processes is expected to start from 2021.
  * Positive impact from various government grants in total net amount of EUR
    36.6 million.
  * Positive impact from exemption from ships' fairway dues in Estonia in the
    amount of EUR 3.4 million.

Amortisation and depreciation expense increased by EUR 4.4 million to EUR 100.7
million compared to last year.

Compared to last year, net finance costs increased by EUR 0.2 million to EUR
17.8 million. The change includes a decrease of EUR 0.3 million in interest
costs compared to same period the previous year and EUR 0.5 million net loss
from foreign exchange differences.

The Group's unaudited net loss for 2020 financial year was EUR 108.3 million or
EUR 0.162 per share compared to a net profit of EUR 49.7 million or EUR 0.074
per share in 2019 and net profit of EUR 40.0 million or EUR 0.060 per share in
2018.

Investments
In the 2020 financial year the Group's investments amounted to EUR 100.1
million. The Group's investments mainly reflect prepayments for a new LNG
shuttle vessel MyStar in the total amount of EUR 61.8 million and a purchase of
a ro-pax vessel Sailor in the amount of EUR 8.5 million.

Investments were made in the ships' technical maintenance and completion of
energy efficiency and emissions reduction projects. Due to the changed economic
environment and suspension of vessel operations, ship-related investments were
kept to minimum and only critical maintenance and repair works were performed.

Investments were also made in the development of the online booking and sales
systems as well as other administrative systems and in relation to the opening
of Burger King restaurants.

Results of the Q4 of 2020
In the fourth quarter (1 October - 31 December) of 2020, the Group's revenue
decreased by EUR 147.1 million compared to same period last year and amounted to
EUR 79.3 million.

Restaurant and shop sales on-board and onshore decreased by EUR 96.2 million,
ticket revenue decreased by EUR 35.5 million and, as a result of 12.6% less
transported cargo units, cargo revenue decreased by EUR 8.1 million.

The fourth quarter EBITDA decreased by EUR 32.2 million to EUR 1.2 million and
net loss for the period was EUR 26.9 million.

In the fourth quarter of 2020, the Group's revenue and operating result were
impacted by following factors:

  * Changes in operations of vessels and hotels due to the Covid-19 situation
    and the travel restrictions.
  * Negative impact from one-off costs related to redundancies process in the
    amount of EUR 3.9 million.
  * Positive impact from various government grants in the total net amount of
    EUR 14.7 million.

Dividends
Due to a deteriorated operating environment and considering the Company's long-
term interests, the Management will propose not to pay dividends for the
financial year 2020.

Financial position
In the fourth quarter, the Group's net debt increased by EUR 138.3 million to
EUR 677.3 million (EUR 539.0 million at 31 December 2019) and the net debt to
EBITDA ratio was 84.2 at the reporting date (3.1 at 31 December 2019).

At the end of the fourth quarter, total liquidity buffer (cash, cash equivalents
and unused credit facilities) amounted to EUR 147.1 million (EUR 128.9 million
at 31 December 2019).

At 31 December 2020, the Group's cash and cash equivalents amounted to EUR 27.8
million (EUR 38.9 million at 31 December 2019) and the Group had EUR 119.3
million in unused credit lines (EUR 90.0 million at 31 December 2019).

Economic Environment
The Group considers Finland, Sweden, Estonia and Latvia its home markets with
the most exposure to the economic developments in Finland. The Group has also
high exposure to the economic developments in Estonia and Sweden. In the fourth
quarter of 2020, the Group's economic environment was dominated by the second
wave of Covid-19 pandemic and the restrictions related to international
travelling.

Despite the stabilisation of confidence of the Finnish and Swedish consumers the
overall demand in passenger traffic remained low due to hindrances in
travelling. The international travel restrictions and reduced air traffic also
effectively meant the absence of demand from the customers from outside our home
markets and the state-level travelling and border-crossing restrictions
effectively allowed to offer only international cargo operations to and from
Sweden.

In the fourth quarter, the cargo market fared somewhat better relative to the
passenger business, supported by the recovering business confidence on all the
home markets. Yet the market conditions regarding price competition remained
challenging resulting in an overall decline both in the number of carried cargo
units and in the average revenue per unit.

While more flexible labour regulations in Finland and Sweden had previously
allowed to employ temporary lay-offs as opposed to the extensive redundancy
processes in the Group's Estonian and Latvian subsidiaries, in the fourth
quarter the Group initiated sizeable redundancy process also in its Finnish and
Swedish organisations in the face of the persistently weak outlook of the
operational environment and following the negotiations with the unions.

Measured in euros the global fuel prices declined, on average, by 37% in the
fourth quarter of 2020 compared to last year. The Group's overall fuel cost
declined by 50% compared to the same period last year. In addition to the
decrease in the fuel market price, the cost was affected by the changes in the
operating schedule as well as an existing fuel price agreement with the price
fixed above the market level.

For the foreseeable future, the key risk has to do with global and regional
developments with the Covid-19 situation and related restrictions on travel and
other economic activities, its economic damage and its impact on local and
international trade.

Events in Q4
Prepayment for the new shuttle vessel MyStar
The last prepayment instalment for the new LNG shuttle vessel MyStar in the
total amount of EUR 12.4 million was made in the fourth quarter of 2020. The
completion and delivery of the vessel is expected in early 2022 and the arrival
of MyStar will make Tallinn-Helsinki shuttle route Tallink's first service
operated by only environmentally friendly LNG fuelled vessels.

Signing of the loan agreement
On 27 November 2020, Tallink Silja OY and Nordic Investment Bank signed a term
loan agreement for financing of working capital. The total amount of the loan
limit is EUR 100 million and the loan can be drawn in EUR 10-40 million
disbursements. The loan carries Euribor based floating interest rate and has
final maturity of four years.

The loan is secured by the mortgages on the vessels Megastar and Baltic Queen,
ranking after the existing creditors and the corporate guarantee of AS Tallink
Grupp. The Government of the Republic of Finland has issued a state guarantee in
favour of Nordic Investment Bank regarding the loan facility.

Extensive reorganisation
In October and November 2020, the Group's Finnish and Swedish subsidiaries had
cooperation negotiations with the employee representatives which resulted in
agreement of changes in the organisational structure, redundancies, reduction in
working hours and temporary lay-offs.

During the quarter, additional redundancies affected both shore and sea
personnel in all home markets.

Opening of Burger King restaurants
During the quarter first Burger King restaurants were opened in Latvia and
Lithuania, and one restaurant in Tallinn Old Town.

Suspended operations of Tallink Hotel Riga
The operations of Tallink Hotel Riga were suspended from 18 October 2020. The
hotel will be closed until spring 2021 unless the operating environment does not
improve sooner.

Events after the reporting period and outlook
Opening of Burger King restaurants
In January 2021, second Burger King restaurant was opened in Latvia. The Group
continues preparations for opening additional Burger King restaurants.

Earnings
The Group's earnings are not generated evenly throughout the year. The summer
period is the high season in the Group's operations. In management's opinion and
based on prior experience most of the Group's earnings are generated during the
summer (June-August).

Due to the ongoing Covid-19 situation the earnings outlook has become uncertain
and continues to be largely subject to external factors such as the progress of
vaccinations, states' decisions regarding the timing of lifting of the travel
restrictions, allowing passenger traffic as well as the duration of the recovery
period.

Research and development projects
Tallink Grupp AS does not have any substantial ongoing research and development
projects. The Group is continuously seeking opportunities for expanding its
operations in order to improve its results.

The Group is continuously looking for innovative ways to upgrade the ships and
passenger area technology to improve its overall performance through modern
solutions. The most recent technical projects are focusing on the solutions for
reduction of the ships CO2 footprint.

Risks
The Group's business, financial position and operating results could be
materially affected by various risks. These risks are not the only ones we face.
Additional risks and uncertainties not presently known to us, or that we
currently believe are immaterial or unlikely, could also impair our business.
The order of presentation of the risk factors below is not intended to be an
indication of the probability of their occurrence or of their potential effect
on our business.

  * Covid-19 situation and developments
  * Governmental restrictions on business activities
  * Accidents, disasters
  * Macroeconomic developments
  * Changes in laws and regulations
  * Relations with trade unions
  * Increase in the fuel prices and interest rates
  * Market and customer behaviour



Key figures

 For the period                                    Q4 2020     Q4 2019 Change %
-------------------------------------------------------------------------------
 Revenue (million euros)                              79.3       226.4   -65.0%

 Gross profit/loss (million euros)                   -18.4        39.1  -147.0%

 EBITDA¹ (million euros)                               1.2        33.4   -96.5%

 EBIT¹ (million euros)                               -24.2         9.0  -369.6%

 Net profit/loss for the period (million
 euros)                                              -26.9         5.5  -590.5%



 Depreciation and amortisation (million euros)        25.4        24.5     3.7%

 Capital expenditures¹ ²(million euros)                4.8        10.0   -52.0%

 Weighted average number of ordinary shares
 outstanding                                   669,882,040 669,882,040     0.0%

 Earnings/loss per share¹                           -0.040       0.008  -590.5%



 Number of passengers                              462,859   2,280,805   -79.7%

 Number of cargo units                              81,861      93,645   -12.6%

 Average number of employees                         4,707       7,197   -34.6%



 As at                                          31.12.2020  30.09.2020 Change %
-------------------------------------------------------------------------------
 Total assets (million euros)                      1,516.2     1,542.9    -1.7%

 Total liabilities (million euros)                   801.9       801.4     0.1%

 Interest-bearing liabilities (million euros)        705.1       671.2     5.1%

 Net debt¹ (million euros)                           677.3       640.5     5.7%

 Net debt to EBITDA¹                                  84.2        15.9   429.9%

 Total equity (million euros)                        714.3       741.5    -3.7%

 Equity ratio¹ (%)                                     47%         48%



 Number of ordinary shares outstanding         669,882,040 669,882,040     0.0%

 Equity per share¹                                    1.07        1.11    -3.7%



 Ratios¹                                           Q4 2020     Q4 2019
-------------------------------------------------------------------------------
 Gross margin (%)                                   -23.2%       17.3%

 EBITDA margin (%)                                    1.5%       14.8%

 EBIT margin (%)                                    -30.5%        4.0%

 Net profit/loss margin (%)                         -33.9%        2.4%



 ROA (%)                                             -6.1%        4.8%

 ROE (%)                                            -14.1%        6.0%

 ROCE (%)                                            -7.2%        5.7%

(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 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 margin: gross profit / net sales
EBITDA margin: EBITDA / net sales
EBIT margin: EBIT / net sales
Net profit 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-Dec  Jan-Dec
 Unaudited, in thousands of EUR              Q4 2020  Q4 2019     2020     2019
-------------------------------------------------------------------------------
 Revenue (Note 3)                             79,295  226,375  442,934  949,119

 Cost of sales                               -97,658 -187,305 -486,388 -752,234
-------------------------------------------------------------------------------
 Gross loss/profit                           -18,363   39,070  -43,454  196,885



 Sales and marketing expenses                 -7,289  -16,365  -37,817  -67,727

 Administrative expenses                     -13,301  -14,375  -48,391  -56,783

 Other operating income                       14,974      723   37,339    2,599

 Other operating expenses                       -205      -83     -298     -106
-------------------------------------------------------------------------------
 Result from operating activities            -24,184    8,970  -92,621   74,868



 Finance income (Note 4)                           0        4        1      995

 Finance costs (Note 4)                       -4,983   -4,228  -17,843  -18,674

 Share of profit/loss of equity-accounted
 investees                                      -158       -4     -158       -4

 Loss before income tax                      -29,325    4,742 -110,621   57,185



 Income tax                                    2,474      732    2,313   -7,467



 Net loss for the period                     -26,851    5,474 -108,308   49,718

 Net loss for the period attributable to
 equity holders of the Parent                -26,851    5,474 -108,308   49,718



 Other comprehensive income

 Items that may be reclassified to profit or
 loss

 Exchange differences on translating foreign
 operations                                     -320     -295     -193      161
-------------------------------------------------------------------------------
 Other comprehensive income for the period      -320     -295     -193      161



 Total comprehensive loss for the period     -27,171    5,179 -108,501   49,879

 Total comprehensive loss for the period
 attributable to equity holders of the
 Parent                                      -27,171    5,179 -108,501   49,879



 Loss per share (in EUR, Note 5)              -0.040    0.008   -0.162    0.074
-------------------------------------------------------------------------------



Consolidated statement of financial position

 Unaudited, in thousands of EUR                      31.12.2020 31.12.2019
--------------------------------------------------------------------------
 ASSETS

 Cash and cash equivalents                               27,834     38,877

 Trade and other receivables                             25,463     37,606

 Prepayments                                              6,340      6,805

 Prepaid income tax                                           0         67

 Inventories                                             28,707     37,255
--------------------------------------------------------------------------
 Current assets                                          88,344    120,610



 Investments in equity-accounted investees                  245        403

 Other financial assets and prepayments                   2,233      1,619

 Deferred income tax assets                              21,146     18,674

 Investment property                                        300        300

 Property, plant and equipment (Note 6)               1,363,485  1,347,093

 Intangible assets (Note 7)                              40,448     44,264
--------------------------------------------------------------------------
 Non-current assets                                   1,427,857  1,412,353

 TOTAL ASSETS                                         1,516,201  1,532,963



 LIABILITIES AND EQUITY

 Interest-bearing loans and borrowings (Note 8)         111,601     89,198

 Trade and other payables                                73,477     98,926

 Payables to owners                                           6          6

 Income tax liability                                        10          0

 Deferred income                                         23,253     33,314
--------------------------------------------------------------------------
 Current liabilities                                    208,347    221,444



 Interest-bearing loans and borrowings (Note 8)         593,518    488,682

 Non-current liabilities                                593,518    488,682
--------------------------------------------------------------------------
 Total liabilities                                      801,865    710,126



 Share capital (Note 9)                                 314,844    314,844

 Share premium                                              663        663

 Reserves                                                69,854     69,608

 Retained earnings                                      328,975    437,722
--------------------------------------------------------------------------
 Equity attributable to equity holders of the Parent    714,336    822,837

 Total equity                                           714,336    822,837
--------------------------------------------------------------------------
 TOTAL LIABILITIES AND EQUITY                         1,516,201  1,532,963



Consolidated statement of cash flows

                                                               Jan-Dec  Jan-Dec
 Unaudited, in thousands of EUR               Q4 2020 Q4 2019     2020     2019
-------------------------------------------------------------------------------


 CASH FLOWS FROM OPERATING ACTIVITIES

 Net loss for the period                      -26,851   5,474 -108,308   49,718

 Adjustments                                   29,188  28,428  117,305  122,260

 Changes in:

 Receivables and prepayments related to
 operating activities                           2,950  15,108   10,822    4,740

 Inventories                                    3,799   3,185    8,548   -1,514

 Liabilities related to operating activities  -21,343  -3,480  -35,307     -311
-------------------------------------------------------------------------------
 Changes in assets and liabilities            -14,594  14,813  -15,937    2,915

 Cash generated from operating activities     -12,257  48,715   -6,940  174,893

 Income tax repaid/paid                           -21     -29     -107     -317
-------------------------------------------------------------------------------
 NET CASH FROM OPERATING ACTIVITIES           -12,278  48,686   -7,047  174,576



 CASH FLOWS FROM INVESTING ACTIVITIES

 Purchase of property, plant, equipment and
 intangible assets (Notes 6, 7)               -17,163 -10,031 -100,024  -60,887

 Proceeds from disposals of property, plant,
 equipment                                         37     -20      115      192

 Interest received                                  0       0        1        1
-------------------------------------------------------------------------------
 NET CASH USED IN INVESTING ACTIVITIES        -17,126 -10,051  -99,908  -60,694



 CASH FLOWS FROM FINANCING ACTIVITIES

 Proceeds from loans received (Note 8)         70,000  45,000  125,000   45,000

 Repayment of loans received (Note 8)               0 -23,375  -14,667  -79,750

 Change in overdraft (Note 8)                 -34,937  -5,157   15,736        0

 Payments for settlement of derivatives             0       0        0   -1,029

 Payment of lease liabilities (Note 8)         -3,704  -3,888  -12,565  -14,822

 Interest paid                                 -4,122  -3,069  -16,290  -16,717

 Payment of transaction costs related to
 loans                                           -670    -636   -1,302   -1,431

 Dividends paid (Note 10)                           0      15        0  -33,443

 Reduction of share capital                         0 -46,888        0  -46,888

 Income tax on dividends paid                       0       3        0   -8,100
-------------------------------------------------------------------------------
 NET CASH FROM/USED IN FINANCING ACTIVITIES    26,567 -37,995   95,912 -157,180



 TOTAL NET CASH FLOW                           -2,837     640  -11,043  -43,298
-------------------------------------------------------------------------------


 Cash and cash equivalents at the beginning
 of period                                     30,671  38,237   38,877   82,175

 Change in cash and cash equivalents           -2,837     640  -11,043  -43,298
-------------------------------------------------------------------------------
 Cash and cash equivalents at the end of
 period                                        27,834  38,877   27,834   38,877



Joonas Joost
Financial director

AS Tallink Grupp
Sadama 5
10111 Tallinn, Estonia
E-mail [email protected]