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Compromise agreement with AS Tallink Grupp to end the court dispute

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AS Tallink Grupp and AS Tallinna Sadam have today, 11 February, reached a
compromise agreement, which ends the court dispute between the two parties which
started in March 2021 over the port dues offered to passenger ferries in the Old
City Harbour.  According to the compromise agreement, AS Tallink Grupp will
waive all submitted claims against AS Tallinna Sadam in this case and AS
Tallinna Sadam will change the port dues applied to passenger ferries operating
regular routes to and visiting the Old City Harbour. New port dues will apply to
all ferry operators operating regular routes to the port. More detailed
information about the dispute can be found in the stock exchange announcements
of AS Tallinna Sadam published on 1 March 2021
(https://view.news.eu.nasdaq.com/view?id=b113fdc182500dd7410f83bd72ae34500&lang=
en), 15 April 2021
(https://view.news.eu.nasdaq.com/view?id=beecd4c37bfe9c817308365629a13e93e&lang=
en) and 23 December 2021
(https://view.news.eu.nasdaq.com/view?id=bcdc91772b2d4ac8eb60899d9957a0b60&lang=
en).

As  a result  of the  compromise agreement,  AS Tallinna  Sadam will  reduce the
tonnage  charge and passenger fee for the regular lines passenger ferries in the
Old  City Harbour by 10% and will increase the discount offered to vessels based
on  their Environmental Ship Index (ESI) (to 14% for passenger vessels whose ESI
value  is  80 or  higher,  and  to  8% for  passenger vessels whose ESI value is
between  65 and 79.9). The mooring charges, waste fees and vehicle cargo charges
will not change.

From  2025 onwards, AS Tallinna  Sadam has the  right to increase  the port dues
that  are a part of this agreement in the event of changes in the Consumer Price
Index  (CPI) as follows: in the  event of the CPI increasing  by up to 6% to the
extent  of the CPI change, but no more than 2% annually; in the event of the CPI
increase by more than 6% the increase may be 2% plus those percentage points for
which  the  CPI  annual  increase  is  higher  than  6%. In the event of the CPI
decreasing,  AS Tallinna Sadam does  not have the obligation  to reduce the port
dues  covered by  this compromise  agreement, except  in the  event that the CPI
decreases  by more than 6% compared to the previous calendar year, in which case
AS Tallinna Sadam will reduce the port dues covered by this compromise agreement
by  at least 2% annually  and additionally by  those percentage points where the
CPI decrease is greater than 6%.

As  an exception to the above, AS Tallinna Sadam has the right to change mooring
charges  and waste fees, if the cost  of providing these services changes beyond
the  control of  AS Tallinna  Sadam, in  which case  the difference  between the
original  charge and the  new charge will  be taken into account proportionally.
The  changed fees  and charges  will be  applied from  the next  month after the
compromise  takes effect  and the  agreement applies  for 10 years following the
date from which the court order confirming the compromise is effective from.

?As  a responsible  and strategic  company in  maritime business, Tallinna Sadam
contributes  to the recovery of the international passenger transport sector and
to  the tourism sector in wider  respect from the significant deterioration that
has  resulted from the COVID-19 pandemic, in  order to secure the sustainability
and survival of these sectors and in order to enable free movement of people and
goods  between Estonia and  other countries around  the Baltic Sea.   It is also
important  to us  that we  have reached  this agreement  with one of our largest
clients  and we can look  towards the future together,"  said Valdo Kalm, CEO of
ASTallinna Sadam commented on the agreement.

Based  on 2021 passenger traffic  volumes, AS Tallinna  Sadam estimates that the
calculated negative impact of the transaction on the company's financial results
in  2022 will be nearly 2 million  euros. The exact economic  impact on the next
years is difficult to assess due to the ongoing pandemic. The compromise has not
taken  effect yet and it will be confirmed by the court with a court order. Once
the  court confirms the compromise, it will also terminate the court proceedings
of this case.

Tallinna  Sadam is one of the largest cargo- and passenger port complexes in the
Baltic  Sea region, which  serves annually 10 million  passengers and 20 million
tons  of  cargo  in  average.  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. The  group's sales in 2020
totalled  EUR  107.4 million,  adjusted  EBITDA  EUR 58.4 million and profit EUR
28.5 million.

Additional information:

Sirle Arro
Head of Marketing and Communication
Tel. +372 5130979
E-mail: [email protected] (mailto:[email protected])