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Pealkiri

AS Tallinna Sadam financial results for 2022 Q3 and 9 months

Teade

In the third quarter, Tallinna Sadam Group's revenue, adjusted EBITDA and profit
increased  year-on-year. Group revenue  amounted to EUR  36 million in the third
quarter,  increasing by 13% compared  to the same  period last year. The group's
adjusted EBITDA in the third quarter was EUR 18 million (+5%) and the profit was
EUR  12 million (+11%). In  the 9-month summary,  the revenue was EUR 93 million
(+15%), the adjusted EBITDA was EUR 47 million (+14%) and the profit was EUR 24
million (+26%).

The  Group's  results  were  strongly  affected  by the lifting of the COVID-19
restrictions and recovery of passenger numbers, as well as the continued decline
in  cargo  volumes.  As  a  result  of  lifting  the  restrictions and increased
passenger  confidence, the number  of passengers more  than doubled in 9 months,
especially  on the  Helsinki route  (+137%), in  addition, the  number of cruise
passengers  more than  tripled. However,  compared to  the pre-pandemic level of
2019, we  are still 40% below in passenger numbers. The decline in cargo volumes
is  mainly due  to the  fourth consecutive  quarter of  decline in  dry bulk and
liquid  bulk cargo volumes. In shipping,  the strong third quarter was supported
by additional voyages of ferry Regula based on growing demand; and chartering of
Botnica at 100% utility rate.

The  revenue and profit growth in both 9 months and the third quarter was driven
by  the continued strong recovery of  the passenger business, which also covered
the negative effects of the sanctions on cargo business. The 9-month revenue and
adjusted  EBITDA of the  passenger harbours segment  even exceeded the segment's
result  of  full  year  2021. At  the  same  time,  the pressure of inflation on
operating  and labor  costs strengthened,  which reduced  the EBITDA margin. The
negative  impact of  the imposed  sanctions has  turned out  to be  smaller than
expected, in 2022 it is estimated at EUR 2.5 million, as the sanctions have been
implemented gradually during the year.

Tallinna  Sadam management will present the financial  results of the Group at a
webinars  on 10 November, including webinar  in Estonian starting at 10.00 (EET)
(link       to      EST      webinar      (https://teams.microsoft.com/l/meetup-
join/19%3ameeting_M2I1ZTY1MDItOWE1ZS00ZDg4LWJhMmUtOWRlMjI1NDZlMGEw%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
webinar   in   English   starting   at   11.00 (EET)   (link   to   ENG  webinar
(https://teams.microsoft.com/l/meetup-
join/19%3ameeting_ZTgwZGZmNjQtMzYzOC00NWFkLWFkODAtNDk0YTViMGYwMTY2%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 (in million EUR):

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

                            2022    2021      %    2022    2021      %

  Revenue                   36.3    32.3   12.6    93.5    81.5   14.7

  Adjusted EBITDA           18.0    17.1    5.4    46.9    41.2   13.7

  Adjusted EBITDA margin   49.6%   52.9%   -3.3   50.2%   50.6%   -0.4

  Operating profit          11.8    10.7   11.0    28.2    23.1   21.9

  Income tax                   0       0      0    -4.1    -3.3   25.5

  Profit for the period     11.7    10.6   10.7    24.0    19.1   25.6

  Investments                3.5     2.3   51.3    12.4    10.2   21.6


                          30.09.2022   31.12.2021      +/-

  Total assets                 622.4        629.5    -1.1%

  Interest bearing debt        159.5        203.3   -21.5%

  Other liabilities             47.1         45.3     3.9%

  Equity                       379.3        380.9    -0.4%

  Number of shares             263.0        263.0     0.0%

Major events in Q3:

  * Closing of operations in Paljassaare Harbour
  * The Competition Authority terminated supervision proceedings regarding the
    contractual penalty of Worldwide Cargo Establishment
  * The state will not exercise the option to purchase the ferries
  * New composition of the supervisory board took office in July, changes on the
    audit committee and remuneration committee
  * Changes in the supervisory boards of TS Shipping and Green Marine
  * AS Tallinna Sadam investor day 'In the Winds of the Future'

Revenue
Revenue  for the 9 months of 2022 grew by EUR 11.9 million (+14.7%) year on year
to  EUR  93.5 million.  Growth  was  driven  by 25% revenue growth in the second
quarter,  supported by an increase in the number of passengers as well as higher
revenue  from the operation of ferry  service between Estonia's mainland and two
largest  islands. All revenue streams increased  except cargo charge, which fell
slightly.  The most  increase came  from passenger  fee (+111%), operating lease
(+13%), vessel dues (+6%) and ferry service revenue (+13%).
The  nine-month revenue  of the  Passenger harbours  segment grew by 46% year on
year, mainly due to growth in passenger fee revenue through a surge in passenger
numbers  and growth in vessel dues. The  segment also increased its lease income
by leasing out new premises and electricity sales revenue which was supported by
a  rise in electricity prices. In the third quarter, revenue grew by 34% year on
year to EUR 13.0 million.
The  nine-month  revenue  of  the  Cargo  harbours segment decreased by EUR 1.4
million  year on year (-4.6%). The segment's  vessel dues revenue dropped by EUR
2.0 million  (-13%) due to  a decline in  dry bulk and  liquid bulk cargo. Cargo
charges  decreased (EUR -143 thousand) as well  but the decline in cargo charges
was  significantly smaller than the decrease  in cargo throughput due to changes
in  the cargo structure. Lease income grew by EUR 281 thousand due to changes in
lease rates and electricity sales revenue increased by EUR 659 thousand.
In the third quarter, the revenue of the Cargo harbours segment decreased by EUR
1.5 million year on year.
The nine-month revenue of the Ferry segment grew by EUR 3.2 million (+13.7%) due
to  growth in both ferry service revenue and lease income. 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  and growth in  the number of
trips.  In the third quarter, the revenue of  the Ferry segment grew by EUR 1.6
million year on year (+18.5%).
The  revenue of the segment Other grew by  10.2% in the first nine months and by
22.2% in  the third quarter. Revenue growth was supported by the revision of the
contractual fee due to the indexation of the fee rates.

EBITDA
Adjusted  EBITDA for the first nine months grew by EUR 5.6 million (+13.7%) year
on  year  to  EUR  46.9 million.  The  strongest contributors were the Passenger
harbours segment (EUR +6.7 million) and the Ferry segment (EUR +1.4 million). In
the  Cargo harbours segment, adjusted EBITDA decreased by EUR 3.2 million due to
smaller  cargo throughput. In the third  quarter, EBITDA grew by EUR 0.9 million
(+5.4%)  year  on  year.  The  strongest  contributor was the Passenger harbours
segment (EUR +2.1 million). The adjusted EBITDA margin for nine months decreased
from  50.6% to  50.2% and  the  adjusted  EBITDA  margin  for  the third quarter
decreased from 52.9% to 49.6% compared with the same period last year.

Profit
Profit  for the  first nine  months amounted  to EUR 24.0 million, exceeding the
profit  for the  comparative period  by EUR  4.9 million (+25.6%). Third-quarter
profit  was EUR 11.7 million (EUR +1.1 million). Profit before tax for the first
nine  months grew by EUR 5.7 million (+25.6%) compared with the same period last
year, rising to EUR 28.1 million.

Investments
In  the first nine months of 2022, the Group invested EUR 12.4 million, EUR 2.2
million more than a year earlier. Investments were mainly made in reconstructing
the   outdoor   area  around  Terminal  D,  upgrading  the  quay  equipment  and
reconstructing  the shoreline reinforcements in  Old City Harbour and increasing
the  capacity of Muuga  Harbour to serve  ro-ro cargo. Investments  of the third
quarter totalled EUR 3.5 million (Q3 2021: EUR 2.3 million).

Interim condensed consolidated statement of financial position:

  In thousands of euros               30 September 2022   31 December 2021
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  ASSETS



  Current assets

  Cash and cash equivalents                      36 416             34 840

  Trade and other receivables                    11 117             14 151

  Contract assets                                   457                  0

  Inventories                                       507                399
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  Total current assets                           48 497             49 390
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  Non-current assets

  Investments in associates                       2 118              1 559

  Other long-term receivables                       379                896

  Property, plant and equipment                 569 384            575 563

  Intangible assets                               2 006              2 130

  Total non-current assets                      573 887            580 148
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  Total assets                                  622 384            629 538
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  LIABILITIES



  Current liabilities

  Loans and borrowings                           15 916             15 916

  Provisions                                      1 253              1 572

  Government grants                                 551              1 223

  Taxes payable                                   1 603                890

  Trade and other payables                       10 159             10 291

  Contract liabilities                            1 839                 57

  Total current liabilities                      31 321             29 949
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  Non-current liabilities

  Loans and borrowings                          180 015            187 398

  Government grants                              30 422             29 835

  Other payables                                    504                652

  Contract liabilities                              778                809

  Total non-current liabilities                 211 719            218 694
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  Total liabilities                             243 040            248 643
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  EQUITY

  Share capital at par value                    263 000            263 000

  Share premium                                  44 478             44 478

  Statutory capital reserve                      22 115             21 271

  Retained earnings (prior periods)              25 791             26 534

  Profit for the period                          23 960             25 612
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  Total equity                                  379 344            380 895
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  Total liabilities and equity                  622 384            629 538
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Interim condensed consolidated statement of profit or loss:



 In thousands of euros                         Q3 2022  Q3 2021 9M 2022 9M 2021
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 Revenue                                        36 325   32 263  93 460  81 511

 Other income                                      412      379   1 140   1 037

 Operating expenses                            -12 763  -10 081 -31 267 -25 454

 Personnel expenses                             -5 885   -5 370 -16 210 -15 114

 Depreciation, amortisation and impairment      -6 191   -6 405 -18 703 -18 502

 Other expenses                                    -55     -116    -249    -369

 Operating profit                               11 843   10 670  28 171  23 109
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 Finance income and costs

 Finance income                                     32       23      97      60

 Finance costs                                    -404     -341  -1 011  -1 082

 Finance costs - net                              -372     -318    -914  -1 022
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 Share of profit of an associate accounted
 for under the equity method                       237      224     814     265

 Profit before income tax                       11 708   10 576  28 071  22 352
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 Income tax                                          0        0  -4 111  -3 275

 Profit for the period                          11 708   10 576  23 960  19 077
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 Attributable to owners of the Parent           11 708   10 576  23 960  19 077
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 Basic and diluted earnings per share (in
 euros)                                           0.04     0.04    0.09    0.07

 Basic and diluted earnings per share
  - continuing operations (in euros)              0.04     0.04    0.09    0.07
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Interim condensed consolidated statement of cash flows:



  In thousands of euros                                  9M 2022   9M 2021
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  Cash receipts from sale of goods and services          101 077    87 777

  Cash receipts related to other income                      135        83

  Payments to suppliers                                  -38 682   -30 919

  Payments to and on behalf of employees                 -14 673   -13 877

  Payments for other expenses                               -296      -376

  Income tax paid on dividends                            -4 335    -3 440

  Cash from operating activities                          43 226    39 248
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  Purchases of property, plant and equipment             -12 932   -11 516

  Purchases of intangible assets                            -346      -525

  Proceeds from sale of property, plant and equipment         91       523

  Proceeds from government grants related to assets        4 924         0

  Dividends received                                         255         0

  Interest received                                            3         2

  Cash used in investing activities                       -8 005   -11 516
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  Repayments of loans received                            -7 383    -7 383

  Dividends paid                                         -25 287   -20 085

  Interest paid                                             -968    -1 218

  Other payments related to financing activities              -7        -1

  Cash from/used in financing activities                 -33 645   -28 687
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  NET CASH FLOW                                            1 576      -955
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  Cash and cash equivalents at beginning of the period    34 840    26 679

  Change in cash and cash equivalents                      1 576      -955

  Cash and cash equivalents at end of the period          36 416    25 724
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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.  According  to  unaudited
financial  results, the group's sales in 2021 totalled EUR 110 million, adjusted
EBITDA EUR 54 million and profit EUR 26 million.

Additional information:

Marju Zirel
Head of Investor Relations
Tel. +372 5342 6591

[email protected] (mailto:[email protected])