Börsiteade

Pealkiri

AS Tallink Grupp Audited Annual Report of the 2020 Financial Year

Teade

Letter to shareholders

Dear shareholders

The past year has undoubtedly been a challenging one not only for Tallink Grupp
and the global tourism and transport industries, but for the whole world. The
sudden shock of the COVID-19 pandemic breaking out in March 2020 and the
lockdowns, restrictions and the global health and economic crisis that followed,
have had a clear and significant impact on our business and many others. Despite
our own tremendous efforts throughout the year to keep our nose above water and
all the external support we have so gratefully received from the authorities and
our partners, 2020 will go down in history as the year of unprecedented
reductions, decreases and losses on all fronts.

Although we had limited control over our fortunes in these circumstances, we
focused on what we could influence and what was in our power to change, leaving
no stone unturned to reduce the negative impacts of the global crisis on Tallink
Grupp and to secure the liquidity and long-term sustainability of the Company.
From the outset of the pandemic, the natural priority for us was the health,
safety and well-being of all our people - employees, passengers, partners.
Extremely rigorous protocols for hygiene, disinfecting and virus control were
introduced across the Group already in February, even before the global crisis
broke. This is probably why we have managed to avoid any outbreaks of the virus
on our vessels and in our hotels and offices despite continued operations and we
must give credit for the significant effort all our crew members have made to
ensure this.

In addition to safety, our immediate focus was also on tightening our control of
all costs. Over the year we scrutinised and negotiated many cost items with our
partners - in most cases with success, in others with various degrees of success
- and postponed all non-critical investments.

From a long-term sustainability perspective, it made sense to suspend some of
our normal operations during periods of extremely low market demand to reduce
costs, while offering our customers several creative alternative travel options
during summer 2020, when restrictions eased for a period and travellers in the
region were yearning for some distraction from the crisis. If nothing else, the
crisis has certainly shown us that we are far more agile, flexible and quick-
thinking than we, as a large company, would have imagined.

The toughest part of the year, however, lay ahead for us after the summer. Once
it transpired that the virus was returning, it became clear that more long-term
and significant cost-cutting was necessary. This was something we had hoped to
avoid. New restrictions from September onwards and the second wave of the
pandemic meant we had no option but to say goodbye to many of our professional
and dedicated employees. By the end of the year, the number of our staff had
decreased by 42%, that is by more than 3 000, and the number of people on
payroll was just close to 3 800. In this crisis we witnessed the flexibility or
rigidity of labour legislation having a direct impact on the need for
redundancies - most took place in Estonia and Latvia while the setup in Finland
and Sweden has allowed more flexibility to retain staff. There was, however, a
small positive development from the personnel perspective in 2020 as well, with
the Estonian government approving payroll tax incentives for seafarers,
something which has been in place in all our other home markets already for
years.

Overall, we are very grateful to all our home market governments and authorities
for all the support we have received. Together with the support from the
financial institutions, the liquidity management efforts have been successful,
with the total liquidity buffer at the end of 2020 improving compared to the
start of the year. In addition, the decision by our good shareholders not to
distribute dividends in 2020, provided significant support for our liquidity.

When times are hard, keep your focus and sights on the future. This was also
what we did, and it helped keep us motivated and focused. The key project that
we moved on with in 2020 was the construction of our new LNG fuelled high-speed
ro-pax ferry MyStar, which will start operating on the Tallinn-Helsinki route in
a year and, together with its sister-vessel and also LNG-based Megastar, will
establish a "green bridge" between the capital cities of Estonia and Finland.

The crisis also brought the need for the diversification of our business into
sharper focus and the need for urgent development and investments in certain
areas. It is no surprise then that the areas we quickly homed in on and
developed were our online shop - providing our customers, who were trapped and
locked-down at home, with great contactless opportunities to still purchase
their favourite travel retail products and much more; and adding cargo capacity
between our countries with the acquisition of the ro-pax ferry Sailor, as cost-
effective cargo transportation continued to be vital during the crisis.

The biggest development challenge during the year proved to be the launch of the
Burger King franchise in the Baltics during the restrictions imposed on the food
and beverage sectors and the ongoing travel restrictions. It is testament to the
utter determination, drive and excellence of the Tallink Grupp team, that by the
end of the year the contractually agreed eight restaurants were opened in the
three Baltic countries, against all odds and despite all obstacles. The past
year was the launch of the start-up phase for the Burger King franchise with
more substantial contribution to growth and results to be yielded in the coming
years.

As travel restrictions continue in early 2021, nearly half of our fleet is
currently still suspended in ports in our home markets, but we remain hopeful
that they will return to the seas in summer 2021 as soon as the restrictions are
lifted. Until then we continue to seek possible alternatives to put these assets
into use with chartering being our key focus.

Dear shareholders,

We are clearly not out of the woods yet, as the saying goes. No doubt 2021 will
still bring many challenges for us and the world, but as a result of the
measures we took in 2020, we believe we are far more efficient, lean, agile and
flexible as a company today and in a strong position to move forward in 2021 and
beyond. The pandemic has unexpectedly given us an opportunity to take stock of
where we are and where we need to be as a business and has enabled us to
restructure ourselves in a way that positions us well for post-COVID market
recovery.

No one still knows how 2021 will unfold in detail, but we are quietly hopeful
and optimistic that the vaccine roll-out, digital travel passport development
initiatives and many other steps currently being taken across the world, will
soon lead to a new dawn and move us into the recovery period. We are monitoring
the situation carefully, preparing for both positive and negative development
scenarios and evaluating the best course of action for returning to our
scheduled services once the situation normalises. One thing is for sure and our
customers tell us this every day - when the virus retreats, people WILL want to
travel.

With all the above in mind, it is probably not surprising to any of you that the
Management Board has proposed not to distribute dividends in 2021 and it will
remain the case until we are back on a more solid footing with our cash flows
once again. On our part we will continue to take every step to control costs
and, in constructive cooperation with the financing institutions and the group
of our lender banks, we are confident that we will manage to retain the
necessary liquidity for sustainable long-term operations.

The year 2020 forced us to become a more lean, efficient, dynamic and flexible
organization, prepared and ready to take on any challenges that might come our
way. We are grateful to all our employees, customers, partners and shareholders
for your continued faith and trust in us and in our future. Our team at Tallink
Grupp is working with all hands on deck, keeping our sights on the horizon and
is ready to prove that our ships will continue to sail steadily after this
storm.

Yours sincerely,

Paavo Nõgene
Chairman of the Management Board



AS Tallink Grupp Audited Annual Report of the 2020 Financial Year
The Group carried a total of 3 732 102 passengers in 2020, which is 62%
passengers less than in 2019. The number of cargo units transported decreased by
5.2% compared to 2019. The Group's revenue amounted to EUR 442.9 million (EUR
949.1 million in 2019). EBITDA was EUR 8.0 million (EUR 171.1 million in 2019)
and net loss EUR 108.3 million or EUR 0.16 per share (net profit of EUR 49.7
million or EUR 0.07 per share in 2019).

In 2020, the Group's total revenue decreased by EUR 506.2 million to EUR 442.9
million. Total revenue for 2019 and 2018 amounted to EUR 949.1 million and EUR
949.7 million, respectively. Revenue from route operations (core business)
decreased by EUR 483.0 million to EUR 400.2 million.

In 2020, the Group's revenue and operating results were significantly affected
by the COVID-19 situation and the imposed travel restrictions. The significant
events in 2020 include:

  * COVID-19 and restrictions related temporary suspensions of vessel and hotel
    operations
  * Rerouting vessels to new routes
  * Extensive reorganization and reduction in the number of employees by 3 040
  * Signing EUR 260 million worth of new overdraft and working capital loan
    agreements
  * Receiving EUR 36.6 million in net direct financial support through the state
    aid measures in our home markets
  * Completion of pre-payments for MyStar and start of the construction of the
    vessel
  * Purchase of a ro-pax vessel Sailor
  * Renovation of Tallink City Hotel
  * Opening of the first Burger King restaurants in Estonia, Latvia and
    Lithuania.

Impact of COVID-19 and travel restrictions
In 2020, the Group's operations and results were strongly influenced by the
COVID-19 situation, the restrictions on international travel and the
authorities' advice against travel. As a result of changes in the operating
schedules there were 20% less trips compared to 2019. Other limitations included
restrictions on the maximum number of passengers on vessels.

Travel restrictions on all routes were in force from March to 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 since March 2020.

During the summer, the Group flexibly rerouted vessels to other routes and
operated various special cruises.

From mid-December the Group provides shuttle and cargo service on the Estonia-
Finland route, the Turku-Stockholm route and the Paldiski-Kapellskär cargo route
with the operation of other routes and vessels suspended.

Several operational changes were made 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 and Tallink Hotel Riga from
    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 to late December. It also operated a limited number of
    special cruises to various destinations. In autumn, it operated weekly the
    Tallinn-Stockholm-Riga roundtrip.

  * During the 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, the cruise ferry operated special return
    trips on the Tallinn-Stockholm route and special cruises on the Helsinki-
    Riga route.
  * From mid-March to mid-April the shuttle vessel Star was temporarily rerouted
    to the 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 the
    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
    the summer season.
  * From July to 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 vessel 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. The shuttle vessel Star returned to the Tallinn-Helsinki route from mid-
May. From July 2020, the cargo vessel Sailor started operating on the Paldiski-
Kapellskär route in addition to the cargo vessel Regal Star.

Changes concerning personnel
Due to the COVID-19 situation the following changes relating to personnel were
made in 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 part 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 the Swedish personnel was reduced to varying extents.
  * Reorganization and collective redundancies were carried out which concerned
    both shore and sea personnel in all markets.

Given the different labour regulations in our home markets the 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 allow combining unpaid leave with other
salary support measures. Therefore, lengthy redundancy processes were first
initiated in Estonia and Latvia and carried out in Finland and Sweden later in
the year. After the completion of the processes some support functions were
migrated to Estonia.

As a result of changes in the business and the processes involving personnel,
including collective redundancies, the number of employees at the end of the
year decreased by 3 040 compared to the beginning of the year. The annual
average number of employees and the number of employees at the end of the year
were, respectively, 16.0% and 42.0% lower than in 2019.

Support measures
In the second quarter of 2020, the Group used temporary salary compensation
measures offered by the countries where it operates.

In the second quarter of 2020, the Estonian parliament approved a 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 2020.

During the year the Group received a net total of EUR 36.6 million in direct
financial support through various government aid measures in all its home
markets.


Key figures

 For the year ended 31 December                    2020        2019        2018
-------------------------------------------------------------------------------
 Revenue (EUR million)                            442.9       949.1       949.7

 Gross loss/profit (EUR million)                  -43.5       196.9       183.8

 EBITDA¹ ² (EUR million)                            8.0       171.1       142.8

 EBIT¹ (EUR million)                              -92.6        74.9        63.5

 Net loss/profit for the period (EUR
 million)                                        -108.3        49.7        40.0



 Depreciation and amortisation² (EUR
 million)                                         100.7        96.2        79.3

 Capital expenditures¹ ³(EUR million)             100.1        73.2        36.4

 Weighted average number of ordinary shares
 outstanding                                669,882,040 669,881,045 669,882,040

 Earnings per share¹                             -0.162       0.074       0.060



 Number of passengers¹                        3,732,102   9,763,210   9,756,611

 Number of cargo units¹                         359,811     379,634     384,958

 Average number of employees¹                     6,104       7,270       7,430



 As at 31 December                                 2020        2019        2018
-------------------------------------------------------------------------------
 Total assets (EUR million)                     1,516.2     1,533.0     1,500.9

 Total liabilities (EUR million)                  801.9       710.1       644.0

 Interest-bearing liabilities (EUR million)       705.1       577.9       510.1

 Net debt¹ (EUR million)                          677.3       539.0       428.0

 Net debt to EBITDA¹ ²                            84.25        3.15        3.00

 Total equity (EUR million)                       714.3       822.8       856.9

 Equity ratio¹ (%)                                47.1%       53.7%       57.1%



 Number of ordinary shares outstanding      669,882,040 669,882,040 669,865,540

 Equity per share¹                                 1.07        1.23        1.28



 Ratios¹                                           2020        2019        2018
-------------------------------------------------------------------------------
 Gross margin (%)                                 -9.8%       20.7%       19.4%

 EBITDA margin (%)²                                1.8%       18.0%       15.0%

 EBIT margin (%)                                 -20.9%        7.9%        6.7%

 Net loss/profit margin (%)                      -24.5%        5.2%        4.2%



 ROA (%)                                          -6.1%        4.8%        4.1%

 ROE (%)                                         -14.1%        6.0%        5.6%

 ROCE (%)                                         -7.2%        5.7%        5.2%

 Current ratio                                     0.43        0.54        0.79

¹ Alternative performance measures based on ESMA guidelines are disclosed in the
"Alternative performance measures" section of the report.

(2) 2018 without IFRS 16 adoption effect.
(3) Does not include additions to right-of-use assets.

Sales and segments
The Group's revenue amounted to EUR 442.9 million in 2020 (949.1 million in
2019). Restaurant and shop sales on board and on shore of EUR 228.5 million in
total (536.6 million in 2019) contributed more than a half of total revenue.
Ticket sales amounted to EUR 95.6 million (240.7 million in 2019) and sales of
cargo transport to EUR 94.0 million (119.1 million in 2019).

Geographically, 45.3% or EUR 200.4 million of revenue was generated by the
Estonia-Finland routes and 33.7% or EUR 149.5 million by the Finland-Sweden
routes. Revenue from the Estonia-Sweden routes was EUR 34.9 million or 7.9% and
from the Latvia-Sweden route EUR 15.4 million or 3.5%. The share of revenue
generated by other geographical segments increased to 10.2% or EUR 45.2 million.

In 2020, the Group's ships carried a total of 2.4 million passengers on the
Estonia-Finland routes, a 52.3% decrease compared to 2019, but the number of
cargo units transported on the routes increased by 1.0%. Estonia-Finland routes'
revenue decreased by EUR 153.5 million to EUR 200.4 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 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 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 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, the opening of Burger King restaurants and revenue from providing
mooring services at Tallinn Old City Harbour.

Earnings
Gross loss for 2020 was EUR 43.5 million (gross profit of EUR 196.9 million in
2019) and EBITDA EUR 8.0 million (EUR 171.1 million in 2019). Net loss for 2020
was EUR 108.3 million (net profit of EUR 49.7 million in 2019). Net loss per
share was EUR 0.16 (net profit per share was EUR 0.07 in 2019).

The Group's profitability was mainly influenced by the following factors:

  * A significant cut in operating expenses, including a significant decrease in
    personnel expenses as a result of collective redundancies, state support
    measures and remuneration cuts.
  * A negative impact from one-off costs related to redundancies in the amount
    of EUR 9.0 million. The redundancies are expected to have a positive
    financial impact starting from 2021.
  * A positive impact from various government support measures in the total net
    amount of EUR 36.6 million.
  * A positive impact from the exemption from ships' fairway dues in Estonia in
    the amount of EUR 3.4 million.

The cost of goods sold at shops and restaurants amounted to EUR 116.6 million
(EUR 221.1 million in 2019).

Fuel costs for 2020 totalled EUR 56.3 million (EUR 89.6 million in 2019). Fuel
costs were impacted by changes in the operating schedule as well as fuel price
agreements with the main suppliers, and lower global prices. Fuel price fixing
agreements were entered into in the first quarter of 2020 but more flexible
terms were negotiated and agreed later in the year. As a result, annual fuel
costs decreased by 37.1%. The Group makes continuous efforts to improve and
optimise its day-to-day operations and lower the fleet's fuel costs.

The Group's personnel expenses amounted to EUR 116.8 million (EUR 163.1 million
in 2019). The average number of employees in 2020 was 6 104 (7 270 in 2019).

Administrative expenses for the period amounted to EUR 48.4 million and sales
and marketing expenses to EUR 37.8 million (EUR 56.8 million and 67.7 million,
respectively, in 2019).

Depreciation and amortisation totalled EUR 100.7 million (EUR 96.2 million in
2019). There were no impairment losses related to the Group's property, plant
and equipment and intangible assets.

Net finance costs increased by EUR 0.2 million to EUR 17.8 million compared to
2019. The change includes a decrease of EUR 0.3 million in interest expenses
compared to 2019 and a net loss of EUR 0.5 million from foreign exchange
differences.

The Group's exposure to credit risk, liquidity risk and market risks, and its
financial risk management activities are described in the notes to the financial
statements.

Liquidity and cash flow
The Group's net operating cash flow for 2020 was negative at EUR 7.0 million
(positive at EUR 174.6 million in 2019).

Cash used in investing activities was EUR 99.9 million (EUR 60.7 million in
2019) reflecting mainly prepayments for a new LNG shuttle vessel MyStar and the
purchase of a ro-pax vessel Sailor.

In 2020, the Group's loan repayments totalled EUR 14.7 million (EUR 79.8 million
in 2019). Interest payments were EUR 16.3 million (EUR 16.7 million in 2019).

At 31 December 2020, the Group's cash and cash equivalents totalled EUR 27.8
million (EUR 38.9 million at 31 December 2019). In addition, available unused
overdraft credit lines amounted to EUR 119.3 million (EUR 90.0 million in
2019). At 31 December 2020, EUR 10.0 million of the EUR 100.0 million facility
agreement with Nordic Investment Bank had been drawn. In management's opinion,
the Group has sufficient liquidity to support its operations. Activities to
ensure the sustainability of operations and liquidity are described in more
detail in Note 24.


Consolidated statement of profit or loss and other comprehensive income

 For the year ended 31 December, in thousands of EUR              2020     2019
-------------------------------------------------------------------------------
 Revenue (Note 4)                                              442,934  949,119

 Cost of sales (Note 5)                                       -486,388 -752,234

 Gross loss/profit                                             -43,454  196,885



 Sales and marketing expenses (Note 5)                         -37,817  -67,727

 Administrative expenses (Note 5)                              -48,263  -56,555

 Impairment loss on receivables (Note 23)                         -128     -228

 Other operating income (Note 24)                               37,339    2,599

 Other operating expenses                                         -298     -106

 Result from operating activities                              -92,621   74,868



 Finance income (Note 5)                                             1      995

 Finance costs (Note 5)                                        -17,843  -18,674

 Share of loss of equity-accounted investees (Note 12)            -158       -4

 Loss/profit before income tax                                -110,621   57,185



 Income tax (Note 6)                                             2,313   -7,467



 Net loss/profit                                              -108,308   49,718

 Net loss/profit attributable to equity holders of the Parent -108,308   49,718



 Other compherensive income

 Items that may be reclassified to profit or loss



 Exchange differences on translating foreign operations           -193      161

 Other comprehensive income                                       -193      161



 Total comprehensive income                                   -108,501   49,879

 Total comprehensive income attributable to equity holders of
 the Parent                                                   -108,501   49,879



 Basic and diluted earnings per share (in EUR, Note 7)          -0.162    0.074


Consolidated statement of financial position

  As at 31 December, in thousands of EUR                      2020        2019
-------------------------------------------------------------------------------
  ASSETS

  Cash and cash equivalents (Note 8)                        27,834      38,877

  Trade and other receivables (Note 9)                      25,463      37,606

  Prepayments (Note 10)                                      7,216       6,805

  Prepaid income tax                                             0          67

  Inventories (Note 11)                                     28,707      37,255

  Current assets                                            89,220     120,610



  Investments in equity-accounted investees (Note 12)          245         403

  Other financial assets and prepayments(Note 13)            2,233       1,619

  Deferred income tax assets (Note 6)                       20,270      18,674

  Investment property                                          300         300

  Property, plant and equipment (Note 14)                1,363,485   1,347,093

  Intangible assets (Note 15)                               40,448      44,264

  Non-current assets                                     1,426,981   1,412,353

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



  LIABILITIES AND EQUITY

  Interest-bearing loans and borrowings (Notes 16, 24)     111,601      89,198

  Trade and other payables (Note 17)                        73,477      98,926

  Payables to owners                                             6           6

  Income tax liability                                          10           0

  Deferred income (Note 18)                                 23,253      33,314

  Current liabilities                                      208,347     221,444



  Interest-bearing loans and borrowings (Notes 16, 24)     593,518     488,682

  Non-current liabilities                                  593,518     488,682

  Total liabilities                                        801,865     710,126



  Share capital (Note 19)                                  314,844     314,844

  Share premium (Note 19)                                      663         663

  Reserves (Note 19)                                        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

 For the year ended 31 December, in thousands of EUR              2020     2019
-------------------------------------------------------------------------------


 CASH FLOWS FROM OPERATING ACTIVITIES

 Net loss/profit for the period                               -108,308   49,718

 Adjustments for:

 Depreciation and amortisation (Notes 14, 15)                  100,660   96,249

 Net loss/gain on disposals of property, plant and equipment       110      -80

 Net interest expense (Note 5)                                  17,273   17,644

 Net expense from derivatives (Note 5)                               0      111

 Loss from equity-accounted investees (Note 12)                    158        4

 Net unrealised foreign exchange gain/loss                        -179      107



 Treasury shares                                                     0       18

 Income tax (Note 6)                                              -717    8,207

 Adjustments                                                   117,305  122,260

 Changes in:

 Receivables and prepayments related to operating activities    10,822    4,740

 Inventories                                                     8,548   -1,514

 Liabilities related to operating activities                   -35,307     -311

 Changes in assets and liabilities                             -15,937    2,915

 Cash generated from operating activities                       -6,940  174,893

 Income tax paid                                                  -107     -317

 NET CASH USED IN/FROM OPERATING ACTIVITIES                     -7,047  174,576



 CASH FLOWS FROM INVESTING ACTIVITIES

 Purchase of property, plant and equipment and intangible
 assets                                                       -100,024  -60,887

 Proceeds from disposals of property, plant and equipment          115      192

 Interest received                                                   1        1

 NET CASH USED IN INVESTING ACTIVITIES                         -99,908  -60,694



 CASH FLOWS FROM FINANCING ACTIVITIES

 Proceeds from loans received                                  125,000   45,000

 Repayment of loans received                                   -14,667  -79,750

 Change in overdraft (Note 16)                                  15,736        0

 Payments for settlement of derivatives                              0   -1,029

 Payment of lease liabilities                                  -12,565  -14,822

 Interest paid                                                 -16,290  -16,717

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

 Dividends paid (Note 19)                                            0  -33,443

 Reduction of share capital                                          0  -46,888

 Income tax on dividends paid (Note 19)                              0   -8,100

 NET CASH FROM/USED IN FINANCING ACTIVITIES                     95,912 -157,180



 TOTAL NET CASH FLOW                                           -11,043  -43,298



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

 Change in cash and cash equivalents (Note 8)                  -11,043  -43,298

 Cash and cash equivalents at the end of period                 27,834   38,877


Joonas Joost
Financial director

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