Börsiteade

Pealkiri

AS Tallinna Sadam financial results for 2023 Q3 and 9 months

Teade

Tallinna  Sadam earned 31 million euros in revenue and 6 million euros in profit
in the third quarter. The nine-month revenue was 89 million euros and the profit
reached  13 million  euros.  In  the  third  quarter,  the volume of investments
increased to nearly 5 million euros, since the beginning of the year we invested
a total of 11 million euros.

In  the third quarter, both revenue (-14%), adjusted EBITDA (-25%) and profit (-
49%) decreased  year-on-year. Operating expenses in  the third quarter decreased
mainly  due to  the drop  in energy  prices. In  the 9 months total, the revenue
decreased by 5%, and due to the pressure of cost growth, adjusted EBITDA (-17%)
and profit (-46%) fell.

Nine  months in total, the number of passengers increased by 15%, but there were
fewer  passenger ship calls.  Compared to the  previous year, fewer cruise ships
visited  our harbours,  although the  occupancy of  the ships  was significantly
higher. The decrease in cargo volumes continued due to sanctions and the general
decrease  in freight volumes,  which led to  a decrease in  revenue and adjusted
EBITDA.  In shipping, both ferries and the icebreaker Botnica showed growth, but
regular  dock  work  and  costs  related  to  the new charter contracts affected
Botnica's  profitability. As a result  of wage pressure and  the rise in Euribor
interest  rates, personnel costs  and financial costs  increased the most on the
cost side.

Valdo  Kalm, chairman  of the  management board  of Tallinna  Sadam, states that
times  are difficult,  and we  have moved  from one  crisis to  another, but the
company  continues to make  a decent profit.  The various business areas balance
each  other, making the group as a whole  resistant to the risks of the external
environment,  which is why we  are ready to pay  dividends next year as well and
simultaneously  continue with  investments. "At  the moment,  there is  a strong
focus  on cost savings and on the development and launch of new growth projects,
such  as the construction of the Paldiski  offshore wind farm quay and the cost-
benefit  analysis of  the maintenance  fleet and  the start  of operation of the
Pakrineeme harbor LNG quay," said Kalm.

The  management  board  of  Tallinna  Sadama  will present the group's financial
results  in webinars on  10 November, including a  webinar in Estonian at 10:00
a.m.   (EET)   (link   to   EST  webinar  (https://teams.microsoft.com/l/meetup-
join/19%3ameeting_MThkOGM0NjYtYTI0Ni00NWI4LWEwMTctNjYxMDgyMzNiYTAx%40thread.v2/0
?context=%7B%22Tid%22%3A%223c572f71-c808-4685-aa00-
2ca59a11c7e2%22%2C%22Oid%22%3A%22a6492212-75ef-498f-8735-75f88c5d463a%22%2C%22Is
BroadcastMeeting%22%3Atrue%2C%22role%22%3A%22a%22%7D&btype=a&role=a))    and   a
webinar    in    English    at   11:00 a.m.   (EET)   (link   to   ENG   webinar
(https://teams.microsoft.com/l/meetup-
join/19%3ameeting_NzVmMDRmMzAtZjg0My00NjUwLTk2NGEtNGY1NTIwYjI4NWI2%40thread.v2/0
?context=%7B%22Tid%22%3A%223c572f71-c808-4685-aa00-
2ca59a11c7e2%22%2C%22Oid%22%3A%22a6492212-75ef-498f-8735-75f88c5d463a%22%2C%22Is
BroadcastMeeting%22%3Atrue%2C%22role%22%3A%22a%22%7D&btype=a&role=a)).

Key figures (million EUR):

                              Q3      Q3      +/-      9M      9M     +/-

                            2023    2022        %    2023    2022       %

  Revenue                   31.4    36.3    -13.5    88.6    93.5    -5.2

  Adjusted EBITDA           13.5    18.0    -24.9    38.8    46.9   -17.2

  Adjusted EBITDA margin   43.0%   49.6%     -6.6   43.8%   50.2%    -6.4

  Operating profit           7.4    11.8   - 37.1    20.0    28.2   -29.0

  Income tax                   0       0        -    -3.0    -4.1   -27.4

  Profit for the period      6.0    11.7    -49.1    13.0    24.0   -45.6

  Investments                4.8     3.5     37.4    10.9    12.4   -12.3


                          30.09.2023   31.12.2022     +/-

  Total assets                 612.7        621.2   -1.6%

  Interest bearing debt        180.0        187.4   -3.9%

  Other liabilities             57.9         52.9    9.6%

  Equity                       374.8        381.0   -1.6%

  Number of shares             263.0        263.0    0.0%

Major events in Q3:

  * Additional trips by the ferry Regula in September 2023
  * Changes on the management board of AS Tallinna Sadam's subsidiary OÜ TS
    Shipping
  * The administrator of the state shares in AS Tallinna Sadam from July 2023 is
    the Ministry of Climate
  * Icebreaker Botnica 2023 summer charters - Equinor, British Petroleum and
    Baffinland
  * The cruise terminal of Tallinn Old City Harbour obtains the international
    Green Key certificate.
  * 30th anniversary of Paldiski South Harbour and laying the cornerstone for a
    new quay
  * Crevex2023 evacuation exercise at Muuga.

Revenue
Revenue for nine months decreased by EUR 4.8 million (-5.2%) year on year to EUR
88.6 million.  The decline  is attributable  to lower  revenue from vessel dues,
electricity  sales, cargo  charges and  other services,  which was not offset by
higher  revenue from  ferry service  between Estonia's  mainland and two largest
islands,  passenger  fees,  the  charter  fees  of the icebreaker Botnica in the
segment Other and operating leases.
In  terms of revenue  streams, the biggest  change in nine  months was in vessel
dues  revenue, which declined  by EUR 5.5 million  (-18.6%) to EUR 24.1 million.
This  was mainly attributable to  fewer calls by cargo  ships and ro-pax vessels
due  to the decrease in cargo volumes as well  as a drop in the number of cruise
ship  calls (-44.9%). In  terms of segments,  the decrease in nine-month revenue
posted  by the Cargo  harbours and the  Passenger harbours segments exceeded the
revenue  growth  delivered  by  the  Ferry  segment  and  the segment Other (the
icebreaker Botnica).

The  nine-month revenue of the Passenger  harbours segment decreased by EUR 1.0
million  (-3.2%) year  on year,  mainly due  to fewer  cruise ship  calls, which
lowered  the  segment's  vessel  dues  revenue  (-EUR 2.1 million). In the third
quarter,  revenue decreased by 17.2% year on year to EUR 10.7 million (-EUR 2.2
million),  mainly  due  to  fewer  cruise  ship calls, which lowered vessel dues
revenue.
The  nine-month revenue  of the  Cargo harbours  segment decreased  year on year
(-EUR 6.1 million, -21.2%). Vessel dues revenue dropped significantly (-EUR 3.5
million)  because the  number of  vessel calls  decreased due  to the decline in
cargo volumes. Cargo charge revenue decreased (-EUR 0.6 million) because volumes
contracted  for all cargo  types with the  exception of non-marine. Revenue from
the  sale  of  electricity  decreased  (-EUR  1.9 million)  because  consumption
declined  due to lower  cargo volumes and  electricity prices were  lower than a
year  earlier. Lease  income and  revenue from  the sale  of other services also
declined.  The third-quarter revenue of the  Cargo harbours segment decreased by
EUR  2.2 million (-23.4%)  year on  year, mainly  due to  lower vessel  dues and
electricity sales revenue.
The  nine-month revenue  of the  Ferry segment  grew by EUR 1.7 million (+6.5%),
driven  by growth in ferry service revenue. Ferry service revenue grew through a
rise  in  contractual  fees  due  to  an  increase  in  the  Estonian fuel cost,
employment cost and consumer price indices. In the third quarter, the revenue of
the Ferry segment grew by EUR 0.2 million (+1.6%) year on year.
The  nine-month revenue  of the  segment Other  grew by EUR 0.5 million (+6.0%).
Revenue  grew due to the additional summer charter of the icebreaker Botnica and
higher charter fee revenue for the icebreaking season, both in the first half of
the  year. Revenue for  the third quarter  fell because the  utilisation rate of
Botnica  was lower. Last year, the charter to Baffinland started earlier and the
vessel had no idle days in the third quarter. In the third quarter of this year,
the  vessel was chartered to BP Exploration Operating Company and the charter to
Baffinland  in Canada  started in  early September,  i.e. later  than last year.
Revenue for the third quarter dropped by EUR 0.6 million (-17.0%).

EBITDA
Adjusted EBITDA for nine months dropped by EUR 8.1 million (-17.2%) year on year
to  EUR 38.8 million. Adjusted  EBITDA decreased the  most in the Cargo harbours
segment  (-EUR 4.7 million), where revenue decreased and expenses  increased. In
the  segment Other, the  decline in adjusted  EBITDA (-EUR 3.4 million) resulted
from  higher expenses and lower profit on the investment in the equity-accounted
associate. The adjusted EBITDA of the Passenger harbours segment decreased (-EUR
0.9 million)  due to lower revenue, which was slightly offset by lower expenses.
Adjusted  EBITDA grew  only in  the Ferry  segment (+EUR 0.9 million), driven by
revenue  growth. Adjusted  EBITDA for  the third  quarter decreased  by EUR 4.5
million  (-24.9%) year on year. Adjusted EBITDA decreased in all segments except
the  Ferry segment. Adjusted EBITDA margin for nine months dropped from 50.2% to
43.8% and  adjusted EBITDA margin for the  third quarter decreased from 49.6% to
43.0%.

Profit
Profit before tax for nine months fell by EUR 12.1 million (-43.0%) year on year
to  EUR 16.0 million.  Profit decreased  more than  operating profit because the
profit from the equity-accounted associate AS Green Marine decreased by EUR 0.4
million  and finance costs  (net) grew (+EUR  3.5 million). Profit for the first
nine  months decreased by EUR 10.9 million  (-45.6%) year on year. Third-quarter
profit was EUR 6.0 million (-EUR 5.7 million, -49.1%).

Investments
In  the first nine months of 2023, the Group invested EUR 10.9 million, EUR 1.5
million  less than  a year  earlier. The  largest investments  were made  in the
regular  dry  docking  works  and  ice  class upgrade of the icebreaker Botnica,
building  a new quay in Paldiski South Harbour, reconstructing a quay and a quay
ramp  and completing the reconstruction of the outdoor area around terminal D in
Old  City Harbour, increasing the capacity of Muuga Harbour to serve ro-ro cargo
(second floor ramp), and software. Investments of the third quarter totalled EUR
4.8 million (EUR 3.5 million in the third quarter of 2022).

Interim condensed consolidated statement of financial position:

  in thousands of euros               30.09.2023   31.12.2022
--------------------------------------------------------------
  ASSETS



  Current assets

  Cash and cash equivalents               37,912       44,387

  Trade and other receivables             14,074        7 477

  Contract assets                            582            0

  Inventories                                387          749

  Non-current assets held for sale             0          100

  Total current assets                    52,955       52,713



  Non-current assets

  Investments in associates                2 137        2,099

  Other long-term receivables                 29          303

  Property, plant and equipment          555,660      564 379

  Intangible assets                        1 968        1 735

  Total non-current assets               559,794      568,516
--------------------------------------------------------------
  Total assets                           612,749      621 229
--------------------------------------------------------------

--------------------------------------------------------------
  LIABILITIES



  Current liabilities

  Loans and borrowings                    13,916       15,916

  Provisions                                 978        2 013

  Government grants                        8 131        8,578

  Taxes payable                            1 726        1,060

  Trade and other payables                 9,598        9,770

  Contract liabilities                     1,650           62

  Total current liabilities               35,999       37,399
--------------------------------------------------------------


  Non-current liabilities

  Loans and borrowings                   166,099      171,482

  Government grants                       32,552       30 156

  Other payables                             529          449

  Contract liabilities                     2,765          767

  Total non-current liabilities          201,945      202,854
--------------------------------------------------------------
  Total liabilities                      237,944      240 253
--------------------------------------------------------------


  EQUITY

  Share capital at par value             263,000      263,000

  Share premium                           44,478       44,478

  Statutory capital reserve               22,858       22 115

  Retained earnings (prior periods)       31 441       25,791

  Profit for the period                   13,028       25,592
--------------------------------------------------------------
  Total equity                           374,805      380,976
--------------------------------------------------------------
  Total liabilities and equity           612,749      621 229
--------------------------------------------------------------

Interim condensed consolidated statement of profit or loss:



 in thousands of euros                          Q3 2023 Q3 2022 9M 2023 9M 2022
-------------------------------------------------------------------------------


 Revenue                                         31,426  36,325  88,615  93,460

 Other income                                       371     412   1 231   1 140

 Operating expenses                             -11,910 -12,763 -31,977 -31,267

 Personnel expenses                              -6,254  -5,885 -18,229 -16,210

 Depreciation, amortisation and impairment       -6 129  -6 191 -19,356 -18,703

 Other expenses                                     -55     -55    -280    -249

 Operating profit                                 7 449  11,843  20,004  28 171
-------------------------------------------------------------------------------


 Finance income and costs

 Finance income                                     330      32     916      97

 Finance costs                                   -2,073    -404  -5,303  -1 011

 Finance costs - net                             -1 743    -372  -4,387    -914
-------------------------------------------------------------------------------


 Share of profit of an associate accounted
 for under the equity method                        258     237     396     814

 Profit before income tax                         5,964  11,708  16,013  28,071
-------------------------------------------------------------------------------


 Income tax                                           0       0  -2,985  -4 111

 Profit for the period                            5,964  11,708  13,028  23,960
-------------------------------------------------------------------------------
 Attributable to owners of the Parent             5,964  11,708  13,028  23,960
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
 Basic and diluted earnings per share (in
 euros)                                            0.02    0.04    0.05    0.09

 Basic and diluted earnings per share
  - continuing operations (in euros)               0.02    0.04    0.05    0.09
-------------------------------------------------------------------------------

Interim condensed consolidated statement of cash flows



  in thousands of euros                                  9M 2023   9M 2022
---------------------------------------------------------------------------


  Cash receipts from sale of goods and services           94,692   101,077

  Cash receipts related to other income                      247       135

  Payments to suppliers                                  -38,900   -38,682

  Payments to and on behalf of employees                 -18,511   -14,673

  Payments for other expenses                               -253      -296

  Income tax paid on dividends                            -3,264    -4,335
---------------------------------------------------------------------------
  Cash from operating activities                          34,011    43,226
---------------------------------------------------------------------------


  Purchases of property, plant and equipment             -10,063   -12,932

  Purchases of intangible assets                            -627      -346

  Proceeds from sale of property, plant and equipment         28        91

  Proceeds from government grants related to assets            0     4,924

  Dividends received                                         357       255

  Interest received                                          875         3

  Cash used in investing activities                       -9,430    -8,005
---------------------------------------------------------------------------


  Repayments of loans received                            -7,383    -7,383

  Dividends paid                                         -19,012   -25,287

  Interest paid                                           -4,654      -968

  Other payments related to financing activities              -7        -7
---------------------------------------------------------------------------
  Cash from/used in financing activities                 -31,056   -33,645
---------------------------------------------------------------------------
  NET CASH FLOW                                           -6,475   1 576
---------------------------------------------------------------------------
  Cash and cash equivalents at beginning of the period    44,387   34,840

  Change in cash and cash equivalents                     -6,475   1 576

  Cash and cash equivalents at the end of the period      37,912   36,416
---------------------------------------------------------------------------

Tallinna  Sadam is one of the largest cargo- and passenger port complexes in the
Baltic Sea region. 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  offshore services in  Estonia and projects  abroad. Tallinna Sadam group is
also  a  shareholder  of  an  associate  AS  Green  Marine, which provides waste
management services.

Additional information:

Marju Zirel
Head of Investor Relations
Tel. +372 53 42 6591
E-mail: m.zirel@ts.ee (mailto:m.zirel@ts.ee)