Company overview and 2018 results Tallin allinn 11 11.04.2019 - PowerPoint PPT Presentation

Company overview and 2018 results Tallin allinn 11 11.04.2019

How we operate Limited liability company, 67% state-owned Listed in Nasdaq Tallinn SE from 13.06.2018 As a landlord port , we own: • Infrastructure in our 5 harbours: o land, quays and sea approaches; o superstructure provided by operators. • 5 ferries and a multi-functional ice-breaker, which we also operate • Land for real estate development in the Tallinn Old City Harbour

Group companies AS Tall AS allin inna Sadam Port services for passengers and cargo OÜ TS La Laevad ad OÜ TS Shi hipping AS Green Mar arin ine 100% 00% 100% 00% 51% 51% Ferry service to Saaremaa Icebreaker Botnica charter Waste management and Hiiumaa

Ice-breaker Where we operate Botnica T allinn FROM HARBOURS Muuga Harbour TO VESSEL OPERATIONS Old City Harbour Old City Marina PaldiskiSouth Harbour Ferry transfer to islands Saaremaa Harbour

MUUGA HARBOUR TERRITORY 567 ha AQUATORY 682 ha TOTAL L LENGTH OF OF BE BERTHS 6,4 km Estonia’s Biggest Cargo Harbour NUMBER OF OF BE BERTHS 29 MAX. DEPT PTH 18 m MAX. LENGTH OF OF A VESSEL 300+ m Containers, liquid bulk, solid bulk, general cargo, Ro-Ro

PALDISKI SOUTH HARBOUR Ro-Ro, general cargo, solid bulk, liquid bulk Port of Tallinn’s Second Biggest Cargo Harbour TERRITORY 119 ha AQUATORY 147 ha TOTAL L LENGTH OF OF BE BERTHS 1,85 km NUMBER OF OF BE BERTHS 10 MAX. DEPT PTH 14,5 m MAX. LENGTH OF OF A VESSEL 230 m

OLD CITY HARBOUR TER ERRITORY 55.3 55. 3 ha ha AQUATORY 94 ha 94 ha TOTAL L LENGTH OF OF BE BERTHS 5 km 5 Estonia’s Biggest Tourism Gateway NU NUMBER OF OF BE BERTHS 24 24 MAX. DEPT PTH 10. 10.7 7 m MAX. LENGTH OF OF A VESSEL 340+ 340+ m Passengers (ferries, cruises, yachts), Ro-Ro

CALLS PER YEAR (2018) - 348 Cruises PASSENGERS PER YEAR (2018) - 638 000

Business Fields Pass assengers Real eal Estate 10.6 m Shipp Shippin ing passengers Cargo Ca Muuga Industrial Park 76 ha Paldiski Industrial Park 34 ha 5 ferries: Tallinn Old City Harbour real 20.6 m 2 m passengers & estate development 16 ha 1 m vehicles; tons Ice-breaker Botnica

Revenue Structure & Main Customers Revenue Passenger harbours Cargo harbours Cruise Regular lines Terminal operators Shipping lines 32% 38% 7% 23% (2) Adjusted EBITDA Other Ferries Botnica Clients 32% 44% 18% Republic of Estonia Republic of Estonia 6%

Marine and logistics sector Megatrends and vision e-tr trade VISION MEGATRENDS Indu ndustry 4. 4.0 Unmanned vessels Larger vessels Logis Lo istic ics 5. 5.0 Fully automated terminals and multimodality Cost efficiency New Ne TEXT TEXT technol ologie ies Digital data exchange Digitalisation and Com ompetit itio ion automation Green port Coo ooperatio tion of f Environmental Client experience logis istic ic chain hain requirements

Revenue model Passenger harbours 2018 Contribution 2018 Revenue Breakdown Revenue Rental Income 38% 4% • Fixed lease income from operators using PoT’s land 3% 3% premises (commercial operators e.g. shops, restaurants) Adjusted EBITDA Cargo Charges • Pre-agreed tariffs for ro-ro cargo carried on ROPAX 34% 44% vessels Passenger Fees • Passenger fees per passenger based on public price list Key Customers Cruise • Line and Cruise passenger fees are based on similar Regular Lines model, but have diferent tariffs Vessel Charges 55% • Tonnage charges based on gross tonnage separately for each call of the vessel based on public price list Cruise • Waste fee based on vessel gross tonnage for each vessel call, in case of passenger ships for one call per day • Mooring charge based on the gross tonnage of the vessel

Revenue model Cargo harbours 2018 Contribution 2018 Revenue Breakdown Revenue 32% 3% Sales of Electricity • Calculated based on the readings of customers electricity 12% meters Adjusted EBITDA Rental Income 32% 22% • Fixed lease income from operators using PoT’s land and facilities Cargo Charges 14% • Pre-agreed tariff based charges (volume x tariff = charge) Key Customers Cruise • Cargo charges agreed separately from operator to operator Terminal Operators • Contractual penalties if terminal operators fail to handle pre- agreed minimum amounts of cargo 50% Vessel Charges Shipping Lines • Tonnage charges based on vessel gross tonnage • Waste fee • Mooring

Revenue model Ferry business 2018 Contribution Revenue 23% Adjusted EBITDA 18% Customer State of Estonia

Smart Port solution

Logistics X-Road & Single Window

Opportunities: • Li Line e traf affic and d crui uise se busi sine ness s development • Asian an clients Passengers • Passen ssenger er termina nals renovation • Cruise se termina nal construction • Smar art Port and traffic management systems, automooring ng OLD CITY HARBOUR Main tourism gate of Estonia

Opportunities: • No North-Sout uth h direction trade increase (incl. Rail Baltica) • Cargo Chines nese silk road d branch (e-trade, distribution center) • LN LNG and cont ntainer ner go good ods s market growth • Conscious development of the compe petitiven eness ess of frei eigh ght corrido dors passing through Estonia together with other participants of the logistics chain • Digi gital alisa sation of the logistics chain MUUGA HARBOUR Largest cargo harbour in Estonia

Opportunities: Shipping TS Laevad: • third d ship on Saaremaa line (for summer) • improvement of service qual ality • effective oper eration on TS Shipping: • MPSV Botnica summer chart arter er

MPSV Botnica Subsidiary TS Shipping OÜ

Opportunities: Real Estate • Execution of the Old City Harbour development plan Ma Mast ster erpl plan an 2030 30+ • Starting detai ail plans ans and generating business models • Improvement of Old City Harbour attractiveness as a tourism sm and d main n marine ne gat ate, excellent service experience • Development of the indu dustrial al parks s and providing addi dition onal al value ue

Real estate development In the Old City Harbour • Masterplan 2030 • MOU with Tallinn City • Total build-up area of 460,000 gross m 2 above ground (including 160,000m 2 extension possibility by land reclamation) • Detail plans are in the process of being initiated by the city

Trading of the share TSM1T on Nasdaq Tallinn SE Share price (EUR) 2,20 1000 2,15 950 • Market capitalisation EUR 571 mln 2,10 2,05 900 2,00 850 1,95 • Listed since 13.06.18, 263 mln shares 1,90 800 TSM1T (left) OMXBBGI (right) • Free float 33%, i.e. 86.7 million shares Monthly volume and turnover 12 000 25 Thousands Millions • Share price has traded up 28% 10 000 20 8 000 15 6 000 (compared to offer price) 10 4 000 5 2 000 0 0 Volume (left) Turnover mEUR (right)

Shareholder structure At the end of March 2019 EST PF&IF BALTIC funds 6% (6%) (LV, LT) 2% (2%) TOP 5 shareholders: EST retail 8% (7%) 1. Republic of Estonia 67.0% 2. JP Morgan Chase Bank 3.7% 3. EBRD 3.6% 4. SEB progressive PF 2.5% State 67% (67%) 5. LHV pension fund L 1.97% INT funds 17% (18%) *Compared to 12.06.2018 in brackets

Dividend stock Equity story ✓ Expectations of the State as the majority shareholder for continuous stable dividends Dividends paid (mEUR) ✓ Stable EBITDA and cashflow 120 105 100 DIVIDEND POLICY 80 60 • Min EUR 30M annually in 2019 and 2020 48 35 35 40 31 • starting 2021 at least 70% of net profit 20 Proposal for 2019 EUR 35,242M 0 2015 2016 2017 2018 2019 (EUR 0,134 per share) proposal

Successful year 2018 • IPO in May 2018 • Passengers: ✓ Record high cruise season ✓ 11th annual record in PAX numbers ✓ Smart Port solution completion ✓ Start of D terminal reconstruction ✓ Masterplan 2030, MOU with City of Tallinn

Successful year 2018 • Cargo: ✓ Liquid bulk growth in tight competition ✓ Oilseed factory cooperation agreement ✓ Paldiski LNG terminal MOU with Alexela ✓ LNG bunkering station in Muuga agreement with Vopak ✓ HHLA - new owner of Muuga container terminal • Ferry: Additional ferry on Saaremaa line • Other: Botnica agreement with Baffinland

Cargo Volume by cargo type 6 25,0 2018 2019 Q1 -6,0% 5,0 +7,4% 20,6 4,7 5 19,2 0,2 0,6 20,0 0,2 0,4 1,9 0,6 0,5 1,9 4 0,9 3,9 0,8 15,0 4,1 Million tons Million tons 3 1,3 5,3 1,3 10,0 5,1 2 5,0 2,2 8,8 1 2,0 7,4 0,0 0 2017 2018 2018 Q1 2019 Q1 Liquid bulk Ro-Ro Dry bulk Containers General cargo

Number of Passengers by routes 2500 12000 2019 Q1 2018 +0,6% 10 560 10 619 -7,0% 100 90 638 566 1924 10000 2000 1790 1013 1009 85 83 19 216 20 0 151 0 8000 2 2 Thousand PAX 1500 Thousand PAX 2 6000 2 1000 8798 8797 1686 4000 1616 500 2000 0 0 Q1 2018 Q1 2019 2017 2018 Tallinn-Helsinki Tallinn-Stockholm Tallinn-St.Petersburg Cruise (traditional) Other