AS Tallinna Sadam (TSM1T) investor relations material

Executive summary

• Q2 revenue increased by 5.4%, driven by strong offshore ship performance, more cruise ship visits, and higher electricity service sales, with cruise passenger numbers rising nearly 48%.

• Profitability was negatively impacted by higher fuel, electricity, and maintenance costs, severe winter conditions, and the absence of last year's one-off land sale gain.

• Last year's Q2 included a one-time land sale gain (reported as €1 million or €0.9 million), absent this year, affecting year-over-year profit comparison.

• Cargo volumes declined by up to 5.0%, mainly due to a sharp drop in liquid bulk, while ferry and ro-ro segments remained stable or increased.

• Dividends were distributed as promised, and significant progress was made in real estate development with new detailed plans adopted.

Financial highlights

• Q2 revenue rose 5.4% to €31.1 million, with six-month revenue at €59.3 million (+2.4% year-over-year).

• Adjusted EBITDA for Q2 was €14.2 million (down 10.7–13.5%), with margin dropping to 45.7–46.7%.

• Operating profit declined 20–25.7% to €7.9–13.6 million; profit for the period down 41.7–60% to €1.4–6.0 million.

• Investments totaled €2.3–3.5 million for the period, a sharp decrease from the prior year.

• Free cash flow for six months was €17.7–17.8 million; net debt at period end was €145–145.8 million.

Outlook and guidance

• Cruise season expected to remain strong with more vessels and passengers; good bookings anticipated through year-end.

• Negotiations ongoing for new ro-ro and container lines, especially at Paldiski and Muuga, with potential new contracts by year-end.

• Annual investment level projected at around €20 million, including development of onshore power supply.

• Focus on industrial park expansion and real estate development in Old City Harbour.

• Rising energy prices and global instability pose risks to fuel costs and cargo volumes.