Tallinna Sadam As · OMXTSE:TSM1T
Tallinna Sadam As — Port of Tallinn — Investor Presentation (September 2021)
40 slides from Tallinna Sadam As's investor presentation, Sep 5, 2021
Slide 1: Unique asset for investment
Unique asset for investment Marko Raid, CFO Marju Zirel, IR
Slide 2: Resilient infrastructure business model
Resilient infrastructure business model DIVERSIFICATION PROFITABILITY STABLE CLIENT BASE 2020 Revenue 2020 Adjusted EBITDA Margin Peers Average 8% 27% 28% 54% €107m 32% 15% -6% 37% Passenger H Cargo H Ferry Other Ferry Republic of Estonia Airports Ports STRONG DIVIDEND PROFILE min 70% of net profit
Slide 3: Dividend stock
Dividend stock Equity story Dividends paid (mln EUR) 120 450% 397% 400% • Expectations of the State as the 100 105 350% majority shareholder for continuous stable dividends 80 300% 250% 60 200% 113% 144% DIVIDEND POLICY 40 48 150% 35 35 71% 100% • Min EUR 30M annually in 2019 and 2020 20 122% 30 70%
Slide 4: Where we operate
Where we operate ESTONIA • Part of EU, eurozone, OECD and NATO • Currency EUR • Next door to Russia, Scandinavia, Baltics • Stable credit rating outlook A1 (Moody’s) and AA- (S&P) • Consistently lowest government debt level in EU 4
Slide 5: A Well Balanced Business Profile
A Well Balanced Business Profile Business segments Passenger Harbours Cargo Harbours International ferry lines, cruise, ro-ro Liquid bulk, Ro-Ro, dry bulk, Old City Harbour (main) containers, general cargo, industrial • International PAX lines to Helsinki, parks, PAX with vehicles Stockholm, St.Pete
Slide 6: Where we operate
Where we operate from harbours to vessel operations Ice-breaker Botnica Port of Tallinn doesn’t by Muuga far mean ports in the city Harbour limits of Tallinn. Tallinn: Port of Tallinn is a port Old City Harbour & Old City Marina complex with harbours located all over Estonia. Paldiski South Harbour
Slide 7: Revenue Structure & Main Customers
Revenue Structure & Main Customers Revenue 2020 Cargo harbours Passenger harbours Regular lines Cruise 37% Terminal operators Shipping lines 27% 8% 28% (2) Adj. EBITDA 2020 Other Ferry 43% Botnica Clients 26% 24% Republic of Estonia Republic of Estonia 7% 7
Slide 8: Revenue model: Passenger harbours
Revenue model Passenger harbours 2020 Contribution Revenue 27% Cargo Charges 4% 5% • Pre-agreed tariffs for ro-ro cargo carried on ROPAX vessels 6% Adjusted EBITDA Rental Income 26% • Fixed lease income from operators using PoT’s land premises 24% (commercial operators e.g. shops, restaurants) Passe
Slide 9: Revenue model: Cargo harbours
Revenue model Cargo harbours 2020 Contribution Revenue 3% Sales of Electricity 37% 10% • Calculated based on the readings of customers electricity meters Adjusted EBITDA Rental Income 23% • Fixed lease income from operators using PoT’s land and facilities 43% Cargo Charges 14% • Pre-agreed tariff ba
Slide 10: Revenue model: Ferry business
Revenue model Ferry business 2020 Contribution Contract Means of Voyage Fee (per each voyage) Revenue Income Payments • Coverage of variable ope- 28% rating cost (mostly fuel) ~ 20% • Indexed quarterly to fuel price (90%) and annually to ~ 36% Ticket Sales Adjusted EBITDA CPI (10%) 24% ~ 30% Indexed
Slide 11: COVID-19 impact
COVID-19 impact Passengers • Strong downturn from March 2020, min cruise Shipping calls. Temporary Cargo Real estate • Ferry: no significant impact restrictions for passenger • Continuous volume • MPSV Botnica summer charter • Investments continue. movement, ro-ro cargo growth (ro-ro and dry ongoing
Slide 12: Competitive position and strategy
Competitive position and strategy
Slide 13: 3rd biggest passenger port in Northern Europe
3rd biggest passenger port in Northern Europe Finland PAX: consecutive growth for 12 years before COVID-19 Norway Oslo Sweden Helsinki St. Petersburg Stockholm Tallinn 12 000 10 000 Estonia 10 560 10 619 10 639 10 173 9 000 Russia 10 000 • 2h voyages to Helsinki 10-15x per day Latvia 1 013 1009 8 00
Slide 14: TOP cargo port in the eastern part of the Baltic Sea
TOP 10 cargo port in the eastern part of the Baltic Sea Largest cargo ports Resilient volume growth and vessel calls on the eastern shores of the Baltic Sea 25 3 000 120 21 103 2019 2020 21 21 20 2 500 100 20 19 2 2 2 2 2 4 2 000 80 4 4 5 15 Vessel calls 1 791 1 754 1 744 1 743 mln tons 60 mln tons
Slide 15: Cargo logistics chain developments
Cargo logistics chain developments Rail Baltica 2029 http://www.railbaltica.org/ • A shift from East-West to North- South cargo flows • New operators/owners and business models • Cooperation with Helsinki and other ports • EU TEN-T network connection • China Belt and Road connection • Digitalisation
Slide 16: Muuga Harbour
New: MPG AgroProduction (oil Vopak E.O.S.→ seed complex), in Liwathon E.O.S. New: Bulk&Tank progress (liquid bulk) (dry bulk, break bulk), in progress Oiltanking→ Olerex New: PK Terminal (liquid bulk) (dry bulk, break bulk) Transiidikeskus → HHLA TK (containers) Stivis→ Baltic Maritime Logistics Gro
Slide 17: Ferry business
Ferry business 3,0 Ferry traffic 2,4 thousand 2,5 2,2 2,3 2,0 2,0 • Subsidiary TS Laevad 1,5 1,0 1,0 1,0 1,0 • Operating 5 vessels on 2 routes 1,0 0,4 0,5 0,2 • Agreement with the State until 0,0 3M 2016 2017 2018 2019 2020 Sept 2026 Passengers Vehicles • Additional trips on summer peak- time Estoni
Slide 18: MPSV Botnica charter
MPSV Botnica charter 14 300 MPSV Botnica 12 250 Revenue mln EUR 10 200 Charter days 8 150 6 100 4 • Subsidiary TS Shipping 2 50 0 0 • Agreement with the State for 2013 2014 2015 2016 2017 2018 2019 2020 Charter days Revenue icebreaking in winter until Apr 2032 • Summer charters (May-Nov): o 2018-202
Slide 19: Sustainable development and ESG
Sustainable development and ESG • Strategy, action plan, indicators • Main goals: climate neutrality 2050 and clean Baltic Sea • Cooperation with the universities • Represented on the Nasdaq ESG and CDP platforms • Silver quality label in CSR
Slide 20: Green solutions
Green solutions • Dues discount for vessels based on ESI index • Consuming renewable energy • 93% of ship generated waste reused in the circular economy • Waste water reception via pipeline • On-shore Power Supply • Auto-mooring system • Hybrid ferry Tõll • LNG bunkering for ROPAX ships • E-nose sme
Slide 21: Maritime and logistics sector
Maritime and logistics sector MEGATRENDS VISION Port as green Climate change and infrastructure hub, H2 green solutions Unmanned vessels, Digitalization and automated terminals, automation digital data Changes in global Nearshoring, multimodality, supply chains alternative routes Growing expectation
Slide 22: Growth opportunities: Passengers
Growth opportunities Passengers • Recovery of passenger flows • Line traffic development – Muuga-Vuosaari line • New line operators • Increased terminal capacity • Raising service speed and quality - Smart Port and traffic management systems, auto-mooring, tramline 22
Slide 23: Growth opportunities: Cargo
Growth opportunities Cargo • Trade increase Scandinavia- Mediterranean (incl. Rail Baltica) • Belt and Road (e-trade, distribution center) • Nearshoring • Green energy and container goods market growth – offshore windparks, H2 • Increased cooperation and further digitalization of the logistics chain
Slide 24: Growth opportunities: Shipping
Growth opportunities Shipping Ferry service: • Growing demand on existing lines – new ferry? • Efficiency of operations • New routes Icebreaking/offshore: • MPSV Botnica summer charter (increasing demand) 24
Slide 25: Growth opportunities: Real estate
Growth opportunities Prime Real Estate in Tallinn City Centre - Real estate Tallinn Old City Harbour development plan Masterplan 2030+ Plot 2 Old City Harbour • Detail planning process ongoing Plot 1 with 5 areas • Total build up area of 240 000 m2 Plot 3 gross area + extension possibility by Plot 5
Slide 26: Tallinn Old City Harbour Masterplan 2030+
Tallinn Old City Harbour „Masterplan 2030+“ Future vision by Zaha Hadid Architects 26
Slide 27: Trading of the share
Trading 2,40 Share price (EUR) 2000 of the share 2,20 2,00 1500 1000 Listed on Nasdaq Baltic Main list 1,80 1,60 500 1,40 0 • Among most traded shares in the Baltics TSM1T (L) OMXBBGI (R) • Stable shareholder structure • Market capitalisation EUR 502 mln (03.10.2021) EST PF&IF 7% (6%) BALTIC funds (
Slide 28: Experienced Management and a Supportive Governance Framework
Experienced Management and a Supportive Governance Framework Management Board Main objectives of the State as majority shareholder: To function as the maritime vehicle and the Strategic driver of strategic initiatives in the Estonian logistics sector To operate efficiently and profitably in order Fi
Slide 29: Substantial Cash Flow Generation
Substantial Cash Flow Generation Strong Margins… …with Major Investments Completed Adjusted EBITDA(1) & Margin in Recent Years Capex In million € In million € 74 € 74 € 66 € 67 € 58 € 52 € 58 € 64% 37 € 43 29 € 36 14 € 57% 57% 55% 54% 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Ferries Other i
Slide 30: Volumes and financial results
Volumes and financial results
Slide 31: Recent events in 2021
Recent events in 2021 • Record volume of ro-ro and 10 year record of dry bulk cargo • Cruise vessels and tourists returning • MPSV Botnica 10-year agreement with the state (20.12.2022–20.04.2032) • Stricter environmental measures adopted for vessels • Transition to green electricity consumption • Op
Slide 32: Passenger volume
Passenger volume Full year 6 months 12 000 2 500 10 639 2 083 10 000 2 000 933 136 -59% -54% 8 000 Thousand PAX Thousand PAX 1 500 6 000 4 333 969 1 000 1 883 4 000 8 798 2 000 500 878 3 987 0 0 2019 2020 2020 2021 Tallinn-Helsingi Tallinn-Stockholm Muuga-Vuosaari Tallinn-Helsingi Tallinn-Stockholm
Slide 33: Cargo volume
Cargo volume Full year 6 months 25 12 +9% 11 +7% 21 10 20 1 10 20 2 1 2 2 4 8 2 Million tons Million tons 15 5 6 6 3 3 10 5 4 5 9 5 4 8 2 0 0 2019 2020 2020 2021 Liquid bulk Ro-Ro Dry bulk Liquid bulk Ro-Ro Dry bulk Containers General cargo Containers General cargo
Slide 34: Shipping volumes
Shipping volumes Ferries MPSV Botnica 3000 100% 140 2500 2396 120 115 114 80% 72% Thousand PAX/vehicles 68% 1976 2000 100 63% 60% 63% 80 days 1500 1046 963 60 40% 1000 853 681 40 455 20% 500 351 20 0 0 0% 2019 2020 6M 2020 6M 2021 2019 2020 6M 2020 6M 2021 passengers vehicles charter days utilizatio
Slide 35: Results of the Group (1/2)
Results of the Group (1/2) In thousand EUR 2020 2019 6M 2021 6M 2020 Revenue 107 358 130 536 49 248 50 289 Operating profit 35 562 51 679 12 439 15 133 Adjusted EBITDA 58 423 74 292 24 153 26 394 Depreciation, amortisation and -24 094 -23 037 -12 098 -11 912 impairment Income tax -4 913 -5 764 -3 27
Slide 36: Results of the Group (2/2)
Results of the Group (2/2) In thousand EUR 2020 2019 6M 2021 6M 2020 Operating profit/revenue 33.1% 39.6% 25.3% 30.1% Adjusted EBITDA/revenue 54.4% 56.9% 49.0% 52.5% Profit for the period/revenue 26.6% 34.0% 17.3% 18.2% EPS: Profit for the period/weighted average number 0.11 0.17 0.03 0.03 of shares
Slide 37: Cash Flow and Financial Position
Cash Flow and Financial Position Cash Flow statement Financial position 700 In thousands 2019 2020 6M 2020 6M 2021 600 Cash from operating 63 419 49 516 26 610 27 329 activities 500 Cash used in investing 375 364 -28 244 -30 033 –13 257 –9 417 400 activities 591 587 300 Free cash flow (FCF) 35 175 1
Slide 38: Results by business segments
Results by business segments Full year segments (mEUR) 6 months segments (mEUR) Passenger H 15,1 28,8 Passenger H 4,3 10,7 32,8 49,8 5,9 12,5 Cargo H 25,4 39,7 Cargo H 11,0 19,4 22,2 40,1 12,0 18,7 Ferry 14,1 29,7 Ferry 6,4 14,6 13,9 30,8 6,7 14,4 Other 3,8 9,2 Other 2,4 4,5 5,3 9,8 1,8 4,6 0 10 20
Slide 39: Revenue generation by segments
Revenue generation by segments Passenger harbours Cargo harbours 60 100% 60 100% 50 80% 50 63,9% 80% 40 50 65,8% 52,6% 40 55,5% 60% 63,9% 60% 30 30 40 40 33 46,8% 40% 29 40% 20 20 25 20% 22 19 20% 10 15 13 6 10 12 0 0% 0 0% 2019 2020 2021 6M 2019 2020 2021 6M Revenue Adj. EBITDA EBITDA margin Revenu
Slide 40: Thank You!
Thank You! PORT OF @ TALLINN www.ts.ee ASDAQ. "= ALTIC AWARDS
Port of Tallinn — Investor Presentation (September 2021) on 6ix