Tallinna Sadam As · OMXTSE:TSM1T
Tallinna Sadam As — Port of Tallinn — IPO Roadshow (May 2018)
35 slides from Tallinna Sadam As's IPO roadshow presentation, May 2018
Slide 1: Port of Tallinn: An Essential Baltic Marine Infrastructure Hub
Port of Tallinn An Essential Baltic Marine Infrastructure Hub May 2018
Slide 2: Disclaimer
Disclaimer By attending this meeting where this presentation is made, or by reading the presentation slides or by accepting delivery of this document, you agree to be bound by the following limitations. These materials have been prepared by Aksiaselts TALLINNA SADAM (the “Company”) and comprises the
Slide 3: Disclaimer (cont’d)
Disclaimer (cont’d) Any statement, estimate or projection included in these materials (or upon which any of the conclusions contained herein are based) with respect to anticipated future performance (including, without limitation, any statement, estimate or projection with respect to the condition (
Slide 4: Port of Tallinn: Landlord Port Supporting a Strong Dividend Profile
Port of Tallinn: Landlord Port Supporting a Strong Dividend Profile I. Introduction to Port of Tallinn 2 II. Key Investment Highlights 8 Further Detail: Deep Dive on Select Themes 19 Further Detail: Historical Operational and Financial Results 23
Slide 5: An Attractive Investment Proposition – Delivering Shareholder Value
An Attractive Investment Proposition – Delivering Shareholder Value Resilient landlord infrastructure business model DIVERSIFICATION PROFITABILITY CASH FLOW GENERATION 2017 Revenue Breakdown: 2017 Adjusted EBITDA Margin 2017 Cash Conversion(3) €121m Peers Average(2) 76% Peers Average(2) 55% 52% 48%
Slide 6: An Essential Baltic Marine Infrastructure Hub
An Essential Baltic Marine Infrastructure Hub Strategic Geographical Location Key Highlights Multimodal marine infrastructure connecting with sea, road, rail and FINLAND air NORWAY Turku N Primorsk Helsinki Oslo St. Petersburg 10.6m(2) passengers serviced in 2017, including 0.6m cruise tourists 82km
Slide 7: A Well Balanced Business Profile
A Well Balanced Business Profile 1 3 5 4 Estonia 2 5 Passenger Harbours Cargo Harbours(1) Ferry 5 • Provision of infrastructure for vessels and • Provision of infrastructure for vessels and • Infrastructure provider between servicing of passengers and vehicles cargo operators Estonian mainland and t
Slide 8: Passenger Harbours Business Model – Maritime Gateway into Estonia
Passenger Harbours Business Model – Maritime Gateway into Estonia 2017 Revenue Breakdown 2017 Contribution Revenue 4% (1) Rental Income 4% • Fixed lease income from operators using PoT’s land and 41% 3% premises (commercial operators e.g. shops, restaurants) Cargo Charges Adjusted EBITDA 34% • Pre-a
Slide 9: Cargo Harbours Business Model – Landlord Infrastructure Provider
Cargo Harbours Business Model – Landlord Infrastructure Provider 2017 Revenue Breakdown 2017 Contribution Revenue 2%(1) Sales of Electricity 12% • Calculated based on the readings of customers electricity 33% meters(3) Rental Income Adjusted EBITDA 24% • Fixed lease income from operators using PoT’s
Slide 10: Ferry Business Model – Fully Subsidised Revenue Stream
Ferry Business Model – Fully Subsidised Revenue Stream Ferry Service Business Model 2017 Contribution Revenue Contract Means of 22% Voyage Fee Income Payments • Coverage of flexible cost, EUR/voyage ~ 20% • Indexed to fuel price (90%) and CPI Adjusted EBITDA (10%) ~ 40% Ticket Sales 13% Variable Fee
Slide 11: Port of Tallinn: Landlord Port Supporting a Strong Dividend Profile
Port of Tallinn: Landlord Port Supporting a Strong Dividend Profile I. Introduction to Port of Tallinn 2 II. Key Investment Highlights 8 Further Detail: Deep Dive on Select Themes 19 Further Detail: Historical Operational and Financial Results 23
Slide 12: Key Investment Highlights
Key Investment Highlights 1 Attractive Macro and Industry Dynamics Driving Continued Regional Demand for Port Infrastructure Multimodal Marine Infrastructure with a Strong Competitive Position Supported by Nordic 2 Links 3 Track Record of Operational Excellence and Innovation 4 Landlord Port with Di
Slide 13: Attractive Macro and Industry Dynamics Driving Continued Regional Demand for Port Infrastructure
Attractive Macro and Industry Dynamics Driving Continued 1 Regional Demand for Port Infrastructure Attractive Regional Macro Outlook Large Scale Investment Driving Demand for Port Infrastructure 2016-2020E GDP CAGR(1) North – South Initiatives Leading Institution / Baltic Sea Region Country 3.7% 3.5
Slide 14: Multimodal Marine Infrastructure with a Strong Competitive Position Supported by Nordic Links
Multimodal Marine Infrastructure with a Strong Competitive 2 Position Supported by Nordic Links One of the Largest Passenger Ports in Europe Largest Cargo Infrastructure Provider in Estonia TallinnCity Tallinn CityCentre Centre Estonian Ports’ N Up to 18m natural depth 2017 Cargo Volumes(2) Finland
Slide 15: Track Record of Operational Excellence and Innovation
3 Track Record of Operational Excellence and Innovation Long Track Record of Operational Excellence and Innovation… … Leads to Significant Benefits to Both Customers and PoT 2012 Jan 2017 Digitalisation of logistics chain Increased focus on enhancing Single Window IT and documentation co-op agreemen
Slide 16: Landlord Port with Diversified and Stable Revenue Streams
4 Landlord Port with Diversified and Stable Revenue Streams High Visibility Income Diversified Revenue Streams from Blue-Chip Customers 2017 Revenue Breakdown Landlord owner of port facilities with no concession renewal limitations for its harbours PAX(4) Cargo(4) Attractive competitive position as
Slide 17: Substantial Cash Flow Generation
5 Substantial Cash Flow Generation Strong Margins… …with Major Investments Completed in Recent Years… Capex Adjusted EBITDA(1) ✓ 4 newbuild ferries & Margin €65m Moderate EBITDA growth driven by Passenger €43m €66m €67m ✓ €36m ✓ 5th ferry acquisition (used) €63m Harbours and introduction of the Ferr
Slide 18: Broad Range of Attractive Strategic Initiatives to Maximise Existing Portfolio Value
Broad Range of Attractive Strategic Initiatives to Maximise 6 Existing Portfolio Value Additional Revenue Potential in the Passenger / Cruise Segment Limited capex Initiatives driving continued growth in number of passengers & expansion of service exposure: ✓ offering Planned Ongoing Renovation of p
Slide 19: Highly Experienced Management and a Supportive Governance Framework
Highly Experienced Management and a Supportive Governance 7 Framework Experienced Management Overseen by a Supervisory Board Supportive Majority Shareholder Management Board Established and stable sovereign majority shareholder ✓ Valdo Kalm Marko Raid Margus Vihman CEO CFO CCO Joined: 2016 Joined: 1
Slide 20: Q1 2018 Operational Update – Continued Liquid Bulk Stabilisation
Q1 2018 Operational Update – Continued Liquid Bulk Stabilisation Traffic Statistics Recent Developments YoY(1) # of passengers (th) Q1 2017 Q1 2018 Change Total 1,921 1,924 0.2% Tallinn – Helsinki 1,682 1,686 0.3% Tallinn – Stockholm 211 216 2.7% Tallinn – St. Petersburg 7 2 (66.7%) Docking of vesse
Slide 21: Q1 2018 Financial Update – Significant Cash Flow Generation
Q1 2018 Financial Update – Significant Cash Flow Generation Revenue €m Q1 2017 Q1 2018 Q1 Change Group Revenue 29.8 29.4 (1.5%) Change in fleet mix on the PAX lines Passenger Harbours 9.3 8.8 (5.0%) Cargo Harbours 10.8 10.5 (3.2%) Ferry 6.3 6.7 4.9% Other 3.4 3.4 2.0% Shift in cargo mix Adjusted EBI
Slide 22: An Attractive Investment Proposition – Delivering Shareholder Value
An Attractive Investment Proposition – Delivering Shareholder Value Resilient landlord infrastructure business model DIVERSIFICATION PROFITABILITY CASH FLOW GENERATION 2017 Revenue Breakdown: 2017 Adjusted EBITDA Margin 2017 Cash Conversion(3) €121m Peers Average(2) 76% Peers Average(2) 55% 52% 48%
Slide 23: Port of Tallinn: Landlord Port Supporting a Strong Dividend Profile
Port of Tallinn: Landlord Port Supporting a Strong Dividend Profile I. Introduction to Port of Tallinn 2 II. Key Investment Highlights 8 Further Detail: Deep Dive on Select Themes 19 Further Detail: Historical Operational and Financial Results 23
Slide 24: Potential Value Upside from Non-Operated Real Estate Portfolio
Potential Value Upside from Non-Operated Real Estate Portfolio Prime Real Estate in the City Centre Opportunity Overview • Strategic opportunity to develop prime real estate covering a total land N area of 16.2 ha near Old City Harbour in Tallinn city centre • Total build-up area of c.460,000 gross
Slide 25: Large Scale Investment Driving Demand for Regional Port Infrastructure
Large Scale Investment Driving Demand for Regional Port Infrastructure North – South(1) East – West(2) In addition to Rail Baltica, there are ongoing discussions to introduce a Multiple large scale initiatives (e.g. One Belt One Road, HSR Eurasia) to complete cargo model – combining all Baltic expor
Slide 26: Theoretical Tunnel Project with Unclear Economic and Technical Viability
Theoretical Tunnel Project with Unclear Economic and Technical Viability Finest’s Helsinki – Tallinn Tunnel Initiative… … Faces Challenges And Might Be Unviable On Many Levels… Helsinki Technical viability Tunnel would be twice the length (103km) of the currently ~103km longest undersea tunnel (53km
Slide 27: Landlord Port with Harbours without Concession Renewal Limitations
Landlord Port with 4 Harbours without Concession Renewal Limitations 3 Passenger Harbours Cargo Harbours(2) 1 4 1 2 3 4 Estonia 2 Old City Harbour Saaremaa Harbour Muuga Harbour Paldiski South Harbour Description • One of the busiest passenger • Potential to host regional and • Biggest cargo harbour
Slide 28: Port of Tallinn: Landlord Port Supporting a Strong Dividend Profile
Port of Tallinn: Landlord Port Supporting a Strong Dividend Profile I. Introduction to Port of Tallinn 2 II. Key Investment Highlights 8 Further Detail: Deep Dive on Select Themes 19 Further Detail: Historical Operational and Financial Results 23
Slide 29: 2017 Full Year Operational Results
2017 Full Year Operational Results Passenger Traffic Statistics Cargo Traffic Statistics Annual 2017 Total cargo traffic (th Annual 2017 # of passengers (th) 2016 2017 2016 2017 Change Share tonnes) Change Share Total 10,173 10,560 3.8% Total 20,118 19,182 (4.7%) Tallinn – Helsinki 8,477 8,798 3.8%
Slide 30: 2015 – 2017 Revenue Evolution
2015 – 2017 Revenue Evolution Passenger Harbours Cargo Harbours Ferry Other Group €m €m €m €m €m 121,3 103,2 93,8 47,5 49,9 44,3 44,9 44,8 39,8 27,1 6,3 4,6 4,6 4,6 0,0 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 • Growth mainly driven by • Loss of Russian fuel oil • F
Slide 31: 2015 – 2017 Adjusted EBITDA & Margin Evolution
2015 – 2017 Adjusted EBITDA & Margin Evolution Passenger Harbours Cargo Harbours Ferry Other Group €m €m €m €m €m 68.7% 70.8% 66.8% 65.2% 63.5% 58.7% N/A 43.8% 31.0% 63.2% 27.4% 32.6% 66.7% 64.0% 54.8% 66,1 66,5 62,5 33,6 33,3 Start-up costs that could 30,5 29,3 28,4 not be capitalized Botnica contr
Slide 32: Key Financials Overview
Key Financials Overview Consolidated Income Statement(1) IFRS €m 2015(2) 2016(2) 2016 (restated) 2017 Restatements Revenues 93.8 95.9 7.3 103.2 121.3 Other income 5.8 15.4 (7.3) 8.1 4.8 Operating expenses (23.5) (29.3) (1.1) (30.3) (41.0) Personnel expenses (12.4) (14.1) (14.1) (18.0) Depreciation,
Slide 33: Key Financials Overview (Cont’d)
Key Financials Overview (Cont’d) Consolidated Balance Sheet(1) €m 2015(3) 2016 2017 Current assets 35.2 67.6 16.5 Including cash and bank accounts 25.9 49.9 7.0 Non-current assets 545.9 571.1 580.6 Total assets 581.1 638.7 597.1 Total liabilities 238.4 291.7 271.3 Including loans, bonds etc. 196.8 2
Slide 34: Key Financials Overview (Cont’d)
Key Financials Overview (Cont’d) Consolidated Cash Flow Statement(1) €m 2015(2) 2016 2017 Cash flow from operating activities 59.3 50.5 43.4 Cash receipts for sale of goods or services 102.6 107.4 127.8 Cash receipts related to other income 1.6 0.3 0.5 Payments to suppliers (33.0) (37.3) (48.7) Paym
Slide 35: Key Financials Overview (Cont’d)
Key Financials Overview (Cont’d) Revenue and Earnings by Segment(1) €m Passenger Harbours Cargo Harbours Ferry Other Group 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 Vessel dues 25.8 27.5 21.3 18.4 - - - - 47.1 45.8 Cargo charges 1.5 1.6 7.8 6.4 - - - - 9.3 8.0 Passenger fees 16.4 17.0 0.0 0.