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TSM1T - Tallinna Sadam AS News Story

€1.98 -0.0  -0.2%

Last Trade - 16/04/21

Mid Cap
Market Cap £451.2m
Enterprise Value £611.4m
Revenue £93.0m
Position in Universe 72nd / 795

AS Tallinna Sadam financial results for 2020 Q4 and 12 months

Fri 26th February, 2021 7:00am
For best results when printing this announcement, please click on link below:

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 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 continued
* Compromise with ESTEVE to end legal disputes
* Appointment of Indrek Randveer as chairman of the Management Board of TS
Laevad OÜ
* Enlight Research started covering Tallinna Sadam
* The supervisory board approved the company strategy for 2021–2025
* The results of the mapping of the ecological footprint of Tallinna Sadam
* Ando Leppiman was elected chairman of the Tallinna Sadam nomination
* Completion of the parking structure of passenger terminal D
* Past five years’ record cargo volume in 2020 – 21.3 million tons
Revenue 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%).

Adjusted 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%.

The 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
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).

Q4 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  
 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           
 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           
 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 Zirel
Head of Investor Relations
Tel. +372 5342 6591
E-mail: m.zirel@ts.ee

*     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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