Tallinna Sadam As · OMXTSE:TSM1T
Tallinna Sadam As — Investor Presentation (August 2019)
35 slides from Tallinna Sadam As's investor presentation, Aug 15, 2019
Slide 1: Company overview and latest results
Company overview and latest results Tallinn 15.08.2019
Slide 2: How we operate
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 4 harbours: o land, quays and sea approaches; o superstructure provided by indipendent operators. • 5 ferries and a multi-functional ice-breaker,
Slide 3: Group companies
Group companies AS Tallinna Sadam Port services for passengers and cargo OÜ TS Laevad OÜ TS Shipping 100% AS Green Marine 100% 51% Ferry service to Saaremaa Icebreaker Botnica charter Waste management and Hiiumaa
Slide 4: Where we operate
Ice-breaker Where we operate Botnica FROM HARBOURS Tallinn TO VESSEL OPERATIONS Muuga Harbour Old City Harbour Old City Marina PaldiskiSouth Harbour Ferry transfer to islands Saaremaa Harbour
Slide 5: Muuga Harbour
MUUGA HARBOUR TERRITORY 567 ha AQUATORY 682 ha TOTAL LENGTH OF BERTHS 6,4 km Estonia’s Biggest Cargo Harbour NUMBER OF BERTHS 29 MAX. DEPTH 18 m MAX. LENGTH OF A VESSEL 300+ m Containers, liquid bulk, solid bulk, general cargo, Ro-Ro
Slide 6: Paldiski South Harbour
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 LENGTH OF BERTHS 1,85 km NUMBER OF BERTHS 10 MAX. DEPTH 14,5 m MAX. LENGTH OF A VESSEL 230 m
Slide 7: Old City Harbour
OLD CITY HARBOUR TERRITORY AQUATORY 55.3 ha 94 ha Estonia’s Biggest Tourism Gateway TOTAL LENGTH OF BERTHS 5 km NUMBER OF BERTHS 24 MAX. DEPTH 10.7 m MAX. LENGTH OF A VESSEL 340+ m Passengers (ferries, cruises, yachts), Ro-Ro
Slide 8: Cruises
CALLS PER YEAR (2018) - 348 Cruises PASSENGERS PER YEAR (2018) - 638 000
Slide 9: Business Fields
Business Fields Passengers Real Estate 10.6 m passengers Cargo Shipping 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 tons 1 m vehicles; Ice-breaker Botnica
Slide 10: Revenue Structure & Main Customers
Revenue Structure & Main Customers Passenger harbours Revenue 2018 Cargo harbours Regular lines Cruise Terminal operators Shipping lines 38% 32% (2) 7% 23% Adj. EBITDA 2018 Other Ferries Botnica Clients 32% 44% Republic of Estonia 18% Republic of Estonia 6%
Slide 11: Marine and logistics sector megatrends and vision
Marine and logistics sector Megatrends and vision e-trade MEGATRENDS VISION Industry 4.0 Larger Unmanned vessels vessels Logistics 5.0 Fully automated terminals and Cost efficiency multimodality TEXT New TEXT technologies Digital data exchange Digitalisation and automation Competition Green port Env
Slide 12: Revenue model: Passenger harbours
Revenue model Passenger harbours 2018 Contribution 2018 Revenue Breakdown Revenue 4% Rental Income 38% 3% • Fixed lease income from operators using PoT’s land 3% premises (commercial operators e.g. shops, restaurants) Adjusted EBITDA Cargo Charges 34% • Pre-agreed tariffs for ro-ro cargo carried on
Slide 13: Revenue model: Cargo harbours
Revenue model Cargo harbours 2018 Contribution 2018 Revenue Breakdown Revenue 32% 3% Sales of Electricity 12% • Calculated based on the readings of customers electricity meters Adjusted EBITDA Rental Income 32% 22% • Fixed lease income from operators using PoT’s land and facilities 14% Cargo Charges
Slide 14: Revenue model: Ferry business
Revenue model Ferry business 2018 Contribution Revenue 23% Adjusted EBITDA 18% Customer State of Estonia
Slide 15: Smart Port solution
if, Whi GY 4 - verre —=<e\ Smart Port solution
Slide 16: Logistics X-Road & Single Window
Logistics X-Road & Single Window
Slide 17: Opportunities: Passengers
Opportunities: • Line traffic and cruise business development – Muuga-Vuosaari line Passengers • Asian clients • Passenger terminals renovation • Cruise terminal construction • Smart Port and traffic management systems, automooring OLD CITY HARBOUR Main tourism gate of Estonia
Slide 18: Opportunities: Cargo
Opportunities: • North-South direction trade increase (incl. Rail Baltica) • Cargo • Chinese silk road branch (e-trade, distribution center) LNG and container goods market growth • Conscious development of the competitiveness of freight corridors passing through Estonia together with other participa
Slide 19: Opportunities: Shipping
Opportunities: Shipping TS Laevad: • third ship on Saaremaa line (for summer) • improvement of service quality • effective operation TS Shipping: • MPSV Botnica summer charter
Slide 20: MPSV Botnica
MPSV Botnica Subsidiary TS Shipping OÜ
Slide 21: Opportunities: Real Estate
Opportunities: Real Estate • Execution of the Old City Harbour development plan Masterplan 2030+ • Starting detail plans and generating business models • Improvement of Old City Harbour attractiveness as a tourism and main marine gate, excellent service experience • Development of the industrial par
Slide 22: Real estate development
Real estate development In the Old City Harbour • Masterplan 2030 • MOU with Tallinn City • Total build-up area of 460,000 gross m2 above ground (including 160,000m2 extension possibility by land reclamation) • Detail plans are in the process of being initiated by the city
Slide 23: Trading of the share
Trading of the share First year on Nasdaq Tallinn SE Share price (EUR) 2,20 1000 2,15 • Market capitalisation EUR 519 mln 14.08.19 2,10 950 2,05 900 2,00 850 1,95 • Listed since 13.06.18, 263 mln shares 1,90 800 09.18 06.18 07.18 08.18 10.18 11.18 12.18 01.19 02.19 03.19 04.19 05.19 06.19 07.19 08.1
Slide 24: Shareholder structure
Shareholder structure 12 500 shareholders EST PF&IF 6% (6%) BALTIC funds (LV, LT) 2% (2%) TOP 5 shareholders: EST retail 9% (7%) 1. Republic of Estonia 67.0% 2. JP Morgan Chase Bank 3.7% 3. EBRD 3.6% State 4. SEB progressive PF 2.5% 67% (67%) INT funds 5. LHV pension fund L 2.0% 16% (18%) *as at 30.
Slide 25: Dividend stock
Dividend stock Equity story ✓ Expectations of the State as the majority Dividends paid (mEUR) shareholder for continuous stable dividends 120 105 ✓ Stable EBITDA and cashflow 100 80 DIVIDEND POLICY 60 48 • Min EUR 30M annually in 2019 and 2020 40 31 35 35 • starting 2021 at least 70% of net profit 2
Slide 26: Successful year 2018
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
Slide 27: Successful year 2018
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 • O
Slide 28: Latest highlights
Latest highlights In first half of 2019 • Vopak E.O.S. acquired by Liwathon • PAX vessels maintenance in Q1 decline in PAX, vessel calls and revenues • Additional ferry trips on Saaremaa line in summer • MPSV Botnica charter for summer in Baffin island • Dividend payment on 04.06.2019 (EUR 0.134 per
Slide 29: Cargo Volume
Cargo Volume by cargo type 25,0 FY 2017-2018 12,0 6M 2018-2019 +7,4% 20,6 -0,8% 10,1 10,0 20,0 19,2 0,6 10,0 0,3 0,4 0,6 1,9 1,0 0,9 1,9 3,9 8,0 1,8 2,0 15,0 4,1 Million tons Million tons 6,0 5,3 2,7 2,7 10,0 5,1 4,0 5,0 4,3 8,8 2,0 4,0 7,4 0,0 0,0 2018 6M 2019 6M 2017 2018 Liquid bulk Ro-Ro Dry bul
Slide 30: Number of Passengers
Number of Passengers by routes 12000 6000 FY 2017-2018 +0,6% 6M 2018-2019 10 560 10 619 -2,7% 10000 566 100 638 90 5000 4827 4697 1013 1009 85 244 34 83 241 43 491 416 31 28 8000 4000 Thousand PAX Thousand PAX 6000 3000 2 2 8798 8797 4000 2000 4026 3968 2000 1000 0 0 2017 2018 6M 2018 6M 2019 Tallin
Slide 31: Results of the Group
Results of the Group In thousands 2017 2018 +/- 6M 2018 6M 2019 +/- Revenue 121 295 130 635 7.7% 62 166 61 350 -1.3% Adjusted EBITDA 66 521 74 380 11.8% 35 695 35 706 0.0% Adjusted EBITDA margin 54.8% 56.9% 2.1 57.4% 58.2% 0.8 Operating profit 40 317 52 075 29.2% 24 950 24 731 -0.9% Income tax -11 9
Slide 32: Cash Flow and Financial Position
Cash Flow and Financial Position Cash Flow statement Financial position 700 In thousands 2018 6M 2019 600 Cash from operating activities 57 113 31 484 500 368 351 Cash used in investing 400 -12 325 -10 159 activities 573 572 300 Free cash flow (FCF) 44 788 21 325 42 48 200 Cash from/used in financin
Slide 33: Results on segment level
Results on segment level (in million EUR) FY 2017-2018 6 months 2018-2019 49,9 Passenger H 22,3 Passenger H 49,9 23,1 41,7 Cargo H 20,0 Cargo H 39,8 20,5 Ferry 30,1 Ferry 14,8 27,1 14,4 Other 8,9 Other 4,3 4,6 4,2 0 10 20 30 40 50 60 0 5 10 15 20 25 Revenue 2018 Revenue 2017 Revenue 2019 Revenue 201
Slide 34: Questions?
@ Questions?
Slide 35: Thank You!
Thank You! IR related questions: Marju Zirel Head of Investor Relations m.zirel@ts.ee portoftallinn.com • investor.ts.ee