Tallinna Sadam As · OMXTSE:TSM1T
Tallinna Sadam As — Shareholder Meeting (April 2024)
65 slides from Tallinna Sadam As's shareholder meeting presentation, Apr 25, 2024
Slide 1: Tallinna Sadam Annual General Meeting
Tallinna Sadam Annual General Meeting 25.04.2024
Slide 2: Agenda
Agenda 1. Greetings from the majority shareholder– Kristen Michal, Minister of Climate 2. Overview of the activities of the supervisory board– Riho Unt, chairman of the supervisory board 3. Annual review and future outlook– Valdo Kalm, CEO 4. Financial results and dividend proposal– Andrus Ait, CFO
Slide 3: Resolutions of the shareholders
Resolutions of the shareholders 1. Approval of the Annual Report 2023 2. Profit allocation 3. Election of members of the Nomination Committee 4. Determination of remuneration for the members of the Nomination Commitee 5. Approval of the shareholders’ expectations
Slide 4: Overview of the activities of the supervisory board
Overview of the activities of the supervisory board Riho Unt Chairman of the supervisory board
Slide 5: Supervisory board
Supervisory board Riho Unt Veiko Sepp Maarika Honkonen Ain Tatter (chairman, finance and investments ) (chairman of the (tourism) (representative of major remuneration shareholder, transport and committee, technology) logistics) Kaur Kajak Risto Mäeots Marek Helm (representative of the major shareho
Slide 6: Activities of the supervisory board in 2023
Major decisions: Activities • Updating the group strategy 2023-2027; of the • Extension of the contract of the chairman of the board, Valdo Kalm for the next three-year term starting from 01.03.2024; supervisory • Evaluation of the fulfillment of the goals set for the board for 2022, setting board i
Slide 7: Corporate strategy
Corporate strategy • We want to be the most innovative port in the Baltic Sea, because innovation and environmental friendliness create a competitive advantage. • We meet the expectations of the owners in terms of efficiency and performance and fulfill the dividend promise. • We are working towards
Slide 8: Impact and mitigation of risks
Impact and mitigation of risks Major risks Mitigation Unstable global economy and war conflicts Balanced, crisis-proof business model Changing environmental requirements and Environment-friendly investments and solutions regulations Continued decline in product volumes, loss of a key New trade corri
Slide 9: Managers & motivated personnel
Managers & motivated personnel • Discussion of the appropriate composition of the board according to the changed market situation and the need to promote new business areas • Extension of the powers of Valdo Kalm, chairman of the board 01.03.2024-28.02.2027 • Initiating succession planning for key e
Slide 10: Why are the shares of Tallinna Sadam attractive?
Why are the shares of Tallinna Sadam attractive? • Stable infrastructure company • Balanced business model: four business areas make the company more resilient to crises • Strong cash flow – EBITDA margin averaging 45% • Several growth projects are in the works and new business opportunities • Divid
Slide 11: Successful year: recognitions 2023
Successful year: recognitions 2023 • Ringing the Nasdaq Stock Exchange Bell in New York (Best Investor Relations Company of 2021) • Gold label of the Responsible Business Forum • Green Key environmental label of the cruise terminal • Tourism Promoter of the Year TOP3 • Best Smart Port Award for intr
Slide 12: Annual review and future outlook
Annual review and future outlook Valdo Kalm CEO
Slide 13: Balanced Business Model
Balanced Business Model Segments PASSENGER CARGO HARBOURS HARBOURS Handling of goods, International passenger passengers by car, lines, cruise, ro-ro industrial parks Tallinn Old City Harbour Muuga Harbour Saaremaa Harbour Paldiski South Harbour OTHER FERRIES Ice breaker Botnica Saaremaa & Hiiumaa •
Slide 14: 2023 Major Events
PORT OF & TALLINN 2023 Major Events
Slide 15: We laid the cornerstone of the new quay
We laid the cornerstone of the new quay in Paldiski South Harbour
Slide 16: Estonian-Finnish green corridor collaboration
We started collaboration to establish the Estonian-Finnish green corridor
Slide 17: Architectural competition for Terminal A
We carried out the architectural competition for the Terminal A
Slide 18: Double ramp in Muuga Harbor
In Muuga Harbor, we introduced a double ramp designed for ro-ro vessels
Slide 19: New warehouse complex at Muuga Harbor
A new warehouse complex was opened at the Muuga Harbor
Slide 20: LNG terminal at Pakrineeme
Port of Tallinn started operating the LNG terminal at Port of Pakrineeme
Slide 21: Estonian Hydrogen Valley established
To accelerate the development of the hydrogen economy, we established the Estonian Hydrogen Valley
Slide 22: CREVEX exercise in Muuga Harbour
The large-scale joint exercise CREVEX took place in Muuga Harbour
Slide 23: Code of Ethics
We described the most important ethical principles in the Code of Ethics
Slide 24: A record year for TS Laevad and new customers
A record year for TS Laevad and new customers for TS Shipping and Green Marine
Slide 25: Maritime megatrends and vision
Maritime megatrends and vision MEGATRENDS VISION 2030+ Transformation of global • Moving production back closer to the consumer supply chains • Consolidation • Electric and alternative fuel ships Environmentally friendly and • Green port and green corridors sustainable solutions • Production, storag
Slide 26: Passenger Harbours
Passenger Harbours Development and growth projects
Slide 27: Recovery of passenger business
Recovery of passenger business • 2023 vs. 2022, the number of passengers increased by +12.7% • Continued growth trend (Q1 +4.9%) • Visits of cruise ships both in Tallinn and Saaremaa will continue, the expected number of cruise ships and occupancy will be higher
Slide 28: Estonian-Finnish Green Corridor
• Port of Tallinn, Port of Helsinki: infrastructure, bunkering facilities, climate-neutral facilities, circular economy, renewable energy, means of Estonian- transport, auxiliary fleet Finnish • Shipping company(s): green fuels, onboard service, circular Green Corridor economy • Cities of Tallinn &
Slide 29: Climate neutral customer journey
CLIMATE NEUTRAL CUSTOMER JOURNEY Green Corridor Tallinn S ] CIRCULAR ECONOMY é SUSTAINABLE 4 ONBOARD SERVICE GREEN FUEL ON-SHORE POWER SUPPLY = 4 7 o = AUTOMOORING tf Shipping companies 4 AAAAAA —GLMATE-NEUTRAL ON-SHORE POWER SUPPLY ~ x > TERMINAL oO WV | AUTOMOORING Sy, Port of Helsinki GREEN PUBLI
Slide 30: Old City Harbour
Old City Harbour real estate development: oldcityharbour.ee Values and principles • Opening the city to the sea • A diverse, carefully designed public space • A promenade passing through the area with abundant greenery • A new level of mobility service • Smart and innovative solutions • Use of ren
Slide 31: Detailed plans in process
Detailed plans in process Terminal A & Cruise Termina Northern Part Southern Part Terminal D Old City Marina area Tuukri Str 17, 19, 19a etc
Slide 32: A-terminal quarter winning entry
A-terminal quarter winning entry Authors: Molumba & Mareld
Slide 33: Passenger Harbours 4.0
Vision 2030 Passenger Harbours 4.0 • Estonian-Finnish and Estonian- Swedish green corridors • Cruise ships powered by alternative fuels • Pollution-free ships in port (green fuel or shore power) • Modern and environmentally friendly passenger terminals • Intelligent ticket-free multimodal travel ser
Slide 34: Cargo Harbours
Cargo Harbours Development and growth projects
Slide 35: Rail Baltic cargo terminal in Muuga
Rail Baltic cargo terminal in Muuga North-South multimodal logistics center • Project completed in 2022 (Sweco Projekt AS) • Loading options from sea, road and rail transport • Construction planned for 2024-2027 • Capacity 4-5 million tons of goods per year • Financed from the funds of the Connectin
Slide 36: Ro-Ro development: Double ramp in Muuga Harbour
Ro-Ro development: Double ramp in Muuga Harbour • Second floor ramp – faster and more environmentally friendly service • Redirection of trucks from the city center to Muuga • Increasing North-South trade flows • Eckerö Line's Finbo Cargo additional trip per day
Slide 37: Paldiski: Energy HUB & base port for wind farms
Paldiski: Energy HUB & base port for wind farms Wind LNG & solar Renewable terminal park energy & quay storage Ammonia production Development areas for the manufacture A custom-built multifunctional quay and storage of wind for installation vessels for the wind farms farm components
Slide 38: Paldiski South Harbour Energy Hub
Paldiski Paldiski– South EnergyHarbour Hub Berth 6A in Quay development 6A kai development (09.04.2024) (09.04.2024) Development areas for wind farms A custom-built multifunctional quay support for installation vessels for the wind farms
Slide 39: Vision 2030 Cargo Harbours 4.0
Vision 2030 Cargo Harbours 4.0 • A multimodal port • Rail Baltica and the north-south corridor • Construction and maintenance port of wind farms • Terminals for alternative fuels • Automatic mooring and shore power on regular lines • Regionalization (near-shoring) and new trade corridors • Productio
Slide 40: Shipping
Shipping Development and growth projects
Slide 41: Passenger ferries TS Laevad
Passenger ferries TS Laevad • Record year (passengers +4.9%, trips +0.6% and vehicles +3.3%) • Tender win for the new period (2026-2036) in April 2024 • Electrification of ferries • Search and analysis of growth opportunities • Keeping customers and employees satisfied
Slide 42: Icebreaker Botnica TS Shipping
Icebreaker Botnica TS Shipping • Icebreaker Botnica works 2023: Transport Administration, Equinor, British Petroleum, Baffinland • BP May to July 2024 in the North Sea • Charter contract in the Canadian Arctic from September to November 2024-2028 • Opportunities for servicing offshore wind farms • C
Slide 43: Growth Opportunities
Growth Opportunities: Fleet – for the construction and maintenance of offshore wind farms CTV ship SOV ship (ice-class & helideck) Hovercraft for harsh winters
Slide 44: Sustainable development
PORT OF & TALLINN Sustainable development
Slide 45: Scope areas of CO2 emission
Scope areas of CO₂ emission related to the activities of the Port of Tallinn (Scope) Tallinna Sadam, TS Laevad, TS Shipping Operators, tenants, ships calling
Slide 46: Greenhouse gas emissions of Port of Tallinn Group 2019-2023
Greenhouse gas emissions of Port of Tallinn Group 2019-2023 (Scope 1-2) 40 000 35 000 30 000 25 000 tonni CO2 ekv 20 562 Heat consumption 20 000 18 783 Movable equipment 15 000 20 713 21 090 10 000 18 877 Vessels owned by Tallinna Sadam 5 000 11 080 7 519 Electricity consumption 1 553 1 321 1 378 0
Slide 47: Reducing the ecological footprint
Reducing the ecological footprint • Energy production and consumption from emission-free sources • Port fee concessions for environmentally friendly ships • Automooring devices and shore power for regular liners • Planning of shore power for cruise ships in Old City Harbour • Wastewater reception fa
Slide 48: Financial results & dividend proposal
Financial results & dividend proposal Andrus Ait Member of the Management Board / CFO
Slide 49: Passengers & PAX ship calls
Passengers & PAX ship calls Stable number of ship visits 11 10,6 10000 Increase in the 9 0,9 number of 7,9 8000 Other 7,0 passengers by 7 0,5 6 111 6000 Cruise 13% Ship calls 5 451 5 679 5 672 5 727 5 4,3 Muuga-Vuosaari 8,8 3,5 7,0 4000 3 6,2 Tallinn-Stockholm 4,0 3,0 2000 Tallinn-Helsinki 1 -1 0 Sh
Slide 50: Cargo & cargo ship calls
Cargo & cargo ship calls Decrease Kaubamahu langus sanktsioonide in cargo mõjul Laevakülastuste arv stabiilsemvolume due to sanctions 25 5000 22,4 21,3 19,9 1,9 Number of ship 20 1,8 4000 General cargo 1,8 17,8 calls more stable 4,4 4,7 Ship calls 4,5 2,1 Containers 15 3000 mln tons 2,9 12,6 5,6 6,5
Slide 51: Shipping operating volumes
Shipping Operating volumes of Chartering of MPSV Botnica passenger ferries 3,0 45 000 300 100% 261 267 40 000 249 249 2,5 250 231 80% 35 000 millions of passengers/vehicles 2,4 2,4 72% 73% 2,3 200 68% 68% 2,0 2,2 30 000 63% 60% Reiside arv 2,0 Days 25 000 1,5 22 842 22 972 150 21 518 21 010 20 118 2
Slide 52: Financial results
Financial results Thousand EUR 2023 2022 +/- Revenue 116 646 121 703 -4,2% Adjusted EBITDA 49 170 55 817 -11,9% Adjusted EBITDA margin 42.2% 45.9% -3,7 Operating profit 24 630 30 787 -20,0% Income tax -2 985 -4 193 -28,8% Profit 15 882 25 592 -37,9% Investments 20 727 13 856 49,6%
Slide 53: Revenue and profitability
Revenue and profitability 140 131 90% 122 80% 120 117 Revenue 107 110 70% 100 60% 57% 80 54% Adjusted EBITDA 49% 50% Mln EUR 46% 74 42% 40% 60 58 56 30% 54 40 49 Adjusted EBITDA 20% margin 20 10% 0 0% 2019 2020 2021 2022 2023
Slide 54: Results by segment
Results by segment (mEUR) Passenger H 19,6 37,5 18,6 37,9 Cargo H 11,3 30,8 16,8 38,8 Ferry 15,3 36,6 14,6 34,8 Other 3,0 11,7 5,7 10,3 0 5 10 15 20 25 30 35 40 45 Adj. EBITDA 2023 Adj. EBITDA 2022 Revenue 2023 Revenue 2022
Slide 55: Approval of the Annual Report 2023
Voting on agenda item 1: Approval of the Annual Report 2023 To approve the Annual Report 2023 of AS Tallinna Sadam, as presented to the general meeting
Slide 56: Dividend proposal
Dividend proposal Dividends paid (mEUR) 35 180% • Dividend policy: 30 160% 30 to pay at least 70% of the previous 26 140% 25 year’s profit starting from 2021 121% 120% 20 19 19 20 • Dividend proposal EUR 0.073 EUR 100% 100% per share (EUR 19.199 million) 15 75% 80% 68% 71% 60% • Change of the rights
Slide 57: Profit allocation
Voting on agenda item 2: Profit allocation 2.1. To approve the net profit of the financial year of 2023 in the amount of 15, 882,328 euros and the retained earnings (including 2023 profit) of 47,323,521 euros. 2.2. Transfer to statutory capital reserve 446,084 euros. 2.3. To pay dividends to the sha
Slide 58: Election of members of the Nomination Committee
Election of members of the Nomination Committee of AS Tallinna Sadam • The members of AS Tallinna Sadam's nomination committee have been elected for five years in 2019. • The Nomination Committee has five members, including two representatives of minority shareholders and three representatives of th
Slide 59: Voting on agenda item 3: Election of Nomination Committee members
Voting on agenda item 3: Election of members of the Nomination Committee of AS Tallinna Sadam To extend the powers of European Bank for Reconstruction and Development (EBRD) and AS SEB Varahaldus, the representatives of minority shareholders of the Nomination Committee of AS Tallinna Sadam, for the
Slide 60: Determination of remuneration for the Nomination Committee
Determination of remuneration for the members of the Nomination Committee To determine a remuneration for the members of the Nomination Committee of AS Tallinna Sadam for participating on the meetings of the Nomination Committee as follows: • to the member of the Nomination Committee, 200 euros per
Slide 61: Voting on agenda item 4: Nomination Committee remuneration
Voting on agenda item 4: Determination of remuneration for the members of the Nomination Committee To determine a remuneration for the members of the Nomination Committee of AS Tallinna Sadam for participating on the meetings of the Nomination Committee as follows: • to the member of the Nomination
Slide 62: Approval of the shareholders' expectations of AS Tallinna Sadam
Approval of the shareholders’ expectations of AS Tallinna Sadam Pursuant to section 88 subsection 71 of the State Assets Act and clause 4.2.5.4 of AS Tallinna Sadam Articles of Association, the general meeting is competent to establish the owners’ expectations of AS Tallinna Sadam AS Tallinna Sadam
Slide 63: Voting on agenda item 5
Voting on agenda item 5: Approval of the shareholders’ expectations of AS Tallinna Sadam To approve the shareholders’ expectations of AS Tallinna Sadam as presented to the general meeting.
Slide 64: Disclaimer
Disclaimer The presentation has been prepared for informational purposes only. By opening, In addition, even if the results and financial condition of the Port of Tallinn and the downloading, reading or otherwise making available any part or all of the presentation in development of the business sec
Slide 65: Thank you for attending!
Thank you for attending! ts.ee • ts.ee/investor • portoftallinn