Börsiteade

Pealkiri

Comment: Impact of Government decisions on marine traffic

Teade

In the late evening of 12 March 2020, the Estonian Government proclaimed a state
of  emergency until  1 May and  has established  special measures to prevent the
spread  of  coronavirus.  Specific  measures  directly  affecting Tallinna Sadam
include:  ban on cruise ship calls  until 1 May, suspension of Tallinn-Stockholm
cruise  line sales, reintroduction  of border control  and ban on  the entry for
foreign  nationals from 17 March, ban on visiting Estonian islands for two weeks
from 14 March. The restrictions apply only to passenger traffic and do not apply
to freight.

Passenger  operator Tallink has announced the  temporary closure of the Tallinn-
Stockholm  line  as  of  15 March,  with  freight  being  diverted  to Paldiski-
Kapellskär. Due to this decision, at this point one Swedish line vessel call per
day will be canceled.

It  is vital  that the  passenger traffic  between Estonia  and Finland  on both
Tallinn-Helsinki  and Muuga-Vuosaari routes continues,  to ensure that Estonians
can  return  home  via  Finland  and  people living in neighboring countries can
return  via the Estonian transit  corridor; and freight is  ensured also. Due to
the  decline in passenger numbers, it is likely that schedules of the ships will
be  cut by the  passenger operators. As  freight traffic is  maintained and ship
calls  continue,  interruptions  in  passenger  transport only concern passenger
charges,  which represent a  smaller proportion of  the revenue in the Passenger
Harbours business segment.

The ban on cruise ship calls until 1 May directly concerns the cancellation of
four scheduled ship calls. As of today, the cruise companies have not informed
us of the cancellation of any more visits, but given global developments, they
are likely to arrive.

Regarding  the  Cargo  Harbours  segment,  the  special measures can most likely
affect  ro-ro cargo, as all  passenger ships are ro-pax  type vessels, i.e. they
carry both passengers and ro-ro cargo and are thus directly affected by possible
downtime  and  reduced  schedules  of  passenger  lines.  In containers we see a
longer-term negative impact due to the slowdown in trade.

The  domestic  ferry  lines  of  Saaremaa  and  Hiiumaa operated by TS Laevad, a
subsidiary  of Tallinna Sadam, will continue to  operate on a sparse schedule in
order  to  ensure  the  island  residents'  return  home and continuity of cargo
traffic.   The   management  estimates  that  the  changes  resulting  from  the
restrictions  will not have a significant impact on Tallinna Sadam, as the fixed
fee,  which is irrespective  of the number  of voyages, stipulated  in the ferry
agreement  covers all fixed costs of the vessels and their operations (including
salaries of the crew) and ensures planned profitability.

The impact of the coronavirus pandemic on Tallinna Sadam will be significant due
to  disruptions in passenger traffic and the general economic downturn following
the  disruption of the  virus, but this  cannot be objectively  assessed at this
time.  Tallinna Sadam will take the  necessary measures and cooperate fully with
the  authorities to achieve a common global goal of preventing the spread of the
virus  and protecting  human lives  and health.  Together with the operators, we
analyze  the impact of current developments  and prepare for different scenarios
of  the crisis.  We offer  our passenger  operators the  opportunity to  use the
quayside  without charge for the ships of the passenger lines departing from the
Old City Harbor while they are away from the line due to the crisis.

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 unaudited 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.


Valdo Kalm
Chairman of the Management Board

Additional information:

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