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As a result of the ongoing global virus crisis, the revenue, adjusted EBITDA and profit of AS Tallinna Sadam (hereafter: “the Group”) decreased in Q4. Revenue amounted to EUR 25.3 million decreasing by 15.7% in Q4 year-on-year. The adjusted EBITDA of Q4 was EUR 12.1 million (–18.3%) and the profit amounted to EUR 5.7 million (–32.3%). In 2020, the annual revenue was EUR 107.4 million (–17.8%) and adjusted EBITDA amounted to EUR 58.4 million (–21.4%). Despite the pandemic, the profit for 2020 was EUR 28.5 million (–35.8%). Adjusted EBITDA margin decreased by 2.5 percentage points, but the volume of investments increased to EUR 37.1 million (+26%). According to Valdo Kalm, Chairman of the Management Board of Tallinna Sadam, the negative impact of the pandemic on the company's financial results was particularly noticeable in the Passenger harnours segment, but the overall impact of the virus on the Group's finances was smaller than feared and the year ended with a strong profit given the circumstances. „The year 2020 proved that the business strategy with diversified risks and the contribution to the four business directions is justified. In a situation where the business related to passengers decreased by almost half, we are able to meet the expectations of investors and continue with the promised dividend policy, i.e. pay at least 70% of the previous year's profit for dividends," explained Kalm. Kalm says that the large drop in the number of passengers has been compensated by the highest cargo volume of the last five years, the sales revenue of passenger ferries and icebreaker Botnica, which have all remained at levels comparable to 2019. “The resulting stable cash flow and confidence in the recovery of the passenger business have also enabled us to continue investing in passenger services and infrastructure despite the crisis, especially in the Old City Harbour, where we have introduced innovative environmentally friendly solutions such as automatic mooring and on-shore power supply. This year, despite the slump in the passenger segment, several passenger service and real estate development projects in the Old City Harbour will be completed or continued, including the cruise terminal, the front square of the Terminal D and the pedestrian bridge of the Admiralty Canal,” added Kalm. Please also see Valdo Kalm’s video message. The management of Tallinna Sadam will present the financial results of the Group at a webinar on 26 February at 11:00, to attend, please click here. The webinar will be held in English. Key figures (in million EUR): Q4 Q4 +/– 2020 2019 +/– 2020 2019 % % Revenue 25.3 30.0 –15.7 107.4 130.5 –17.8 Adjusted EBITDA 12.1 14.8 –18.3 58.4 74.3 –21.4 Adjusted EBITDA margin 47.9% 49.5% –1.6 54.4% 56.9% –2.5 Operating profit 6.3 9.1 –31.1 35.6 51.7 –31.2 Income tax 0.0 0.0 – –4.9 –5.8 –14.8 Profit for the period 5.7 8.5 –32.3 28.5 44.4 –35.8 Investments 8.2 10.7 –23.0 37.1 29.5 26.0 31.12.2020 31.12.2019 +/– Total assets 628.1 625.5 0.4% Interest bearing debt 211.6 207.8 1.8% Other liabilities 41.1 40.7 1.0% Equity 375.4 377.0 –0.4% Number of shares 263.0 263.0 0.0% Major events in Q4: The impact of the COVID-19 pandemic continuedCompromise with ESTEVE to end legal disputesAppointment of Indrek Randveer as chairman of the Management Board of TS Laevad OÜEnlight Research started covering Tallinna SadamThe supervisory board approved the company strategy for 2021–2025The results of the mapping of the ecological footprint of Tallinna SadamAndo Leppiman was elected chairman of the Tallinna Sadam nomination committeeCompletion of the parking structure of passenger terminal DPast five years’ record cargo volume in 2020 – 21.3 million tons RevenueRevenue for Q4 of 2020 decreased by EUR 4.7 million, i.e. 15.7%, year on year mainly due to decline in passenger volumes. Annually, the revenue decreased in total by 17.8% to EUR 107.4 million. Revenue decreased in all revenue streams, the sharpest in passenger fees (–59%) and vessel dues (–20%). The decline is mainly attributable to the cancellation of the cruise season as well as reduced ferry timetables and a slight decrease in the volumes of general, dry bulk and container cargo. Growth in the volume of liquid bulk cargo had a positive effect on revenue.The revenue of the Passenger harbours segment decreased because the number of passengers declined in connection with COVID-19 related mobility restrictions, which led to the reduction of ferry timetables and the cancellation of the cruise season. The fourth quarter revenue of the Passenger harbours segment decreased to EUR 6.2 million (–41%)Q4 revenue of the Cargo harbours segment grew by EUR 0.2 million (+2.1%) to EUR 10.6 million. Annually, the revenue of the Cargo harbours segment decreased only slightly because cargo throughput grew by 7%. Cargo volume increased primarily due to liquid bulk, but the increase in the volume of liquid bulk with lower charge did not cover the effect of the decrease in the volume of other types of cargo in total cargo charge revenue.The revenue of the Ferry segment decreased mostly during the summer season when the customer (the state) ordered a smaller number of extra trips and did not order an additional ferry to be put in service. Fourth quarter revenue decreased to EUR 6.9 million (–1.7%).The revenue of the segment Other decreased both in Q4 and annually, because of the shorter summer charter period of the icebreaker Botnica due to COVID-19 related restrictions, which disrupted the production operations of the Canadian charterer. The indexation of the ice-breaking and charter fee rates to the inflation index had a slight positive effect on revenue. Revenue for the fourth quarter decreased to EUR 1.6 million (–27%). EBITDAAdjusted EBITDA for Q4 declined by EUR 2.7 million (–18.3%) year on year. The annual adjusted EBITDA decreased to EUR 58.4 million (–21.4%) due to a fall in the Passenger harbours segment. Adjusted EBITDA margin declined from 56.9% to 54.4%. ProfitThe Group’s net profit for 2020 amounted to EUR 28.5 million, EUR 15.9 million less than a year earlier. Net profit for Q4 was EUR 5.7 million (–32.3%). Profit before tax decreased by EUR 16.7 million to EUR 33.4 million (–33.4%) in 2020. Profit before tax for the fourth quarter decreased by EUR 2.7 million, year on year. Income tax expense decreased by EUR 0.9 million due to a smaller dividend distribution (EUR 30.2 million) compared with dividend paid in 2019 (EUR 35.2 million). InvestmentsQ4 capital investments amounted to EUR 8.2 million, capital investments in 2020 totalled EUR 37.1 million, which is 26% more than in the prior year and the past few years’ highest figure. The main investments were again made at the Old City Harbour, where despite the crisis the Group continued to invest in major improvements to the environment and travel conditions. The largest completed projects were the reconstruction of Terminal D and the construction of a nearby multi-storey parking structure. The installation of on-shore power supply systems and auto-mooring equipment for ferries reached the final phase and the construction of a cruise terminal and a footbridge across the canal of the Admiralty Basin was started. The largest works at the Muuga Harbour were related to improving the conditions of ro-ro traffic. Dredging works were carried out in the turning basin and approach canal of the Paldiski South Harbour. The largest projects in the Ferry segment were the installation of battery bank energy solution on the ferry Tõll in order to achieve energy savings and make the ferry more environmentally friendly and scheduled smaller-scale dry dock maintenance of ferries. On the icebreaker Botnica, the second part of the machinery control system was renewed and other technical systems were also upgraded. Interim condensed consolidated statement of financial position: In thousands of euros 31 December 2020 31 December 2019 ASSETS Current assets Cash and cash equivalents 26,679 35,183 Trade and other receivables 10,183 10,614 Inventories 360 408 Non-current assets held for sale 114 142 Total current assets 37,336 46,347 Non-current assets Investments in associates 1,147 1,609 Other long-term receivables 0 294 Property, plant and equipment 587,506 575,267 Intangible assets 2,104 2,015 Total non-current assets 590,757 579,185 Total assets 628,093 625,532 LIABILITIES Current liabilities Loans and borrowings 17,266 16,266 Derivative financial instruments 102 243 Provisions 1,289 1,915 Government grants 1,919 193 Taxes payable 744 893 Trade and other payables 9,149 11,755 Total current liabilities 30,469 31,265 Non-current liabilities Loans and borrowings 194,314 191,580 Government grants 26,145 24,754 Other payables 1,733 915 Total non-current liabilities 222,192 217,249 Total liabilities 252,661 248,514 EQUITY Share capital at par value 263,000 263,000 Share premium 44,478 44,478 Statutory capital reserve 20,262 18,520 Hedge reserve –102 –243 Retained earnings (prior periods) 19,276 6,859 Profit for the period 28,518 44,404 Total equity 375,432 377,018 Total liabilities and equity 628,093 625,532 Interim condensed consolidated statement of profit or loss: In thousands of euros Q4 2020 Q4 2019 2020 2019 Revenue 25,303 30,005 107,358 130,536 Other income 223 229 3,015 1,017 Operating expenses –7,576 –9,212 –30,858 –36,669 Personnel expenses –5,426 –5,740 –19,491 –19,867 Depreciation, amortisation and impairment –6,199 –6,125 –24,094 –23,037 Other expenses –68 –77 –368 –301 Operating profit 6,257 9,080 35,562 51,679 Finance income and costs Finance income 7 13 36 42 Finance costs –410 –463 –1,705 –1,797 Finance costs – net –403 –450 –1,669 –1,755 Share of profit of an associate accounted for under the equity method –130 –173 –462 244 Profit before income tax 5,724 8,457 33,431 50,168 Income tax 0 0 –4,913 –5,764 Profit for the period 5,724 8,457 28,518 44,404 Attributable to owners of the Parent 5,724 8,457 28,518 44,404 Basic and diluted earnings per share (in euros) 0.02 0.03 0.11 0.17 Basic and diluted earnings per share – continuing operations (in euros) 0.02 0.03 0.11 0.17 Interim condensed consolidated statement of cash flows: In thousands of euros 2020 2019 Cash receipts from sale of goods and services 114,378 138,690 Cash receipts related to other income 94 193 Payments to suppliers –43,954 –47,210 Payments to and on behalf of employees –15,713 –16 892 Payments for other expenses –376 –377 Income tax paid on dividends –4,913 –10,985 Cash from operating activities 49,516 63,419 Purchases of property, plant and equipment –35,811 –27,965 Purchases of intangible assets –661 –550 Proceeds from sale of property, plant and equipment 2,863 39 Government grants received 3,561 0 Dividends received 0 204 Interest received 15 28 Cash used in investing activities –30,033 –28,244 Redemption of debt securities –9,000 –9,000 Loans received 20,000 10,000 Repayments of loans received –7,266 –6,766 Dividends paid –30,008 –34,970 Interest paid –1,694 –1,769 Other payments related to financing activities –19 –50 Cash from/used in financing activities –27,987 –42,555 NET CASH FLOW –8,504 –7,380 Cash and cash equivalents at beginning of the period 35,183 42,563 Change in cash and cash equivalents –8,504 –7,380 Cash and cash equivalents at end of the period 26,679 35,183 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 2020 totalled EUR 107.4 million, adjusted EBITDA EUR 58.4 million and profit EUR 28.5 million. Additional information: Marju ZirelHead of Investor RelationsTel. +372 5342 6591E-mail: m.zirel@ts.ee Attachments Tallinna Sadam results 12M 2020 ENG Tallinna Sadam Q4 2020 results presentation ENG Tallinna Sadam Financial Results Q4 and 12M 2020 Data
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