Tallinna Sadam As · OMXTSE:TSM1T
Tallinna Sadam As — ERSTE CEE Investor Conference 2022
32 slides from Tallinna Sadam As's conference presentation, Oct 6, 2022
Slide 1: Unique asset for investment
Unique asset for investment Andrus Ait, CFO Marju Zirel, IR
Slide 2: Resilient infrastructure business model
Resilient infrastructure business model DIVERSIFICATION PROFITABILITY STABLE CLIENT BASE 2021 Revenue 2021 Adjusted EBITDA Margin Peers Average 9% 26% 49% 28% €110m 35% 27% 10% 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) 120 500% • Expectations of the State as the 450% majority shareholder for continuous 100 105 397% 400% stable dividends 350% 80 300% DIVIDEND POLICY 60 250% • starting 2021 at least 70% of net profit 144% 200% 40 68% 150% 35 100% Income tax 20% or
Slide 4: Well Balanced Business Profile
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.Peters
Slide 5: Revenue Structure & Main Customers
Revenue Structure & Main Customers Passenger harbours Cargo harbours Revenue 2021 Regular lines Cruise Terminals Shipping lines 37% 26% (2) 9% 28% Adj. EBITDA 2021 Other Ferry 41% Botnica Ferry passengers 25% 23% Eesti Vabariik Republic of Estonia 11%
Slide 6: 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 12 9 000 Stockholm Tallinn 10,6 10,6 10,6 Estonia 8 000 Russia 10 1,0 1,0 0,9 7 000 • 2h voyages to Helsinki 10-15x per day Latvia • Mini-cruises to S
Slide 7: TOP cargo port in the Eastern part of the Baltic Sea
TOP 10 cargo port in the Eastern part of the Baltic Sea Resilient volume growth ad vessel calls Largest cargo ports on the Eastern shores of the 25 7000 Baltic Sea 22 70 21 21 19 20 6000 58 2021 2022 20 60 6,5 vessel calls 5,3 5,6 5000 Million tonnes 5,1 5,4 Million tonnes 50 15 1,9 1,8 1,9 4000 1,9
Slide 8: Ukrainian war impact
Ukrainian war impact • Direct impact on cargo business and restructuring of supply chains • Decrease in liquid bulk and fertilizer volumes related to Russia • New opportunities – increase in ro-ro and container volumes • Financial impact smaller than expected in 2022
Slide 9: Ferry business
Ferry business Ferry traffic 3,0 2,3 2,4 2,2 2,2 2,0 • Subsidiary TS Laevad thousand 2,0 1,0 1,0 1,0 1,0 1,1 1,0 1,0 • Operating 5 vessels on 2 routes 0,5 0,0 • Agreement with the State until 2017 2018 2019 2020 2021 2022 6M Sept 2026 PAX Vehicles • Additional trips on summer peak- time Estonia Main
Slide 10: Icebreaker Botnica
Icebreaker Botnica Subsidiary TS Shipping • Agreement with the State for icebreaking in winter (Dec-Apr) until 2032 • Summer charters (May-Nov) 2018- 2022 Baffinland Iron Mines. Ice management and escort service for iron ore shipments from Baffin island. MPSV Botnica charter 300 261 249 267 100% 242
Slide 11: 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 12: Sustainable solutions
Sustainable solutions • Tallinna Sadam consumes renewable energy • Dues discount for environment friendly vessels based on ESI index • Auto-mooring system and on- shore power supply (OPS) for regular line vessels in Old City Harbour • Planning on-shore power supply for cruise vessels in Old City Har
Slide 13: Sustainable solutions
Sustainable solutions • Waste water reception in Old City Harbour • ship generated waste reused in the circular economy • Collection of waste from underwater cleaning of ships • Electrification of ferry fleet • Solar panels, seawater-powered heating and cooling system • Conservation of biodiversity
Slide 14: Maritime and logistics sector
Maritime and logistics sector MEGATRENDS VISION Alternative fuels, energy Climate change and production and storage (H2), green solutions offshore wind farms, Unmanned vessels, Digitalization and automated terminals, automation digital data Changes in global Nearshoring, multimodality, supply chains
Slide 15: Growth projects
Growth projects • Base harbor for offshore wind farms in Paldiski - construction and maintenance • Rail Baltic Muuga freight station • Alternative fuels – hydrogen, LNG and other sources • Old City Harbour real estate development Masterplan 2030+
Slide 16: Base harbor for offshore wind farms in Paldiski
Base harbor for offshore wind farms in Paldiski • Additional quay investment EUR 53M, incl. EU funding EUR 20M • Three MOUs signed • Sketch design 2021 • Tender for design and construction 2022 • Construction completed 2025 • Value proposition with industrial park areas and maintenance fleet
Slide 17: Baltic Sea eastern part has no infrastructure
Baltic Sea eastern part has no infrastructure
Slide 18: Planned offshore wind farms
Planned offshore wind farms PALDISKI SADAM 100 KM Offshore wind farms planned for Estonian sea areas SAAREMAA SADAM Possible Tallinna Sadam offshore wind farms base and maintenance ports
Slide 19: Offshore wind farms installation and maintenance fleet
Offshore wind farms installation and maintenance fleet • Potential jobs • Ships' crews and shore personnel CTV vessels SOV vessels (ice class & helideck) Hovercraft for harsh winters
Slide 20: Rail Baltic freight station and Amber Train
Rail Baltic freight station and Amber Train North-South trade • Loading options from maritime, road and rail • Design completed 2022 (Sweco Projekt AS) transport • Construction planned 2023-2025 • Annual capacity 4-5 million tonnes of cargo • Co-financed by EU from CEF I programme • Serves both 1435
Slide 21: Real estate development
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 22: Tallinn Old City Harbour Masterplan 2030+
Tallinn Old City Harbour „Masterplan 2030+“ Future vision by Zaha Hadid Architects 22
Slide 23: Revenue and profitability
Revenue and profitability 140 100% 131 131 121 90% 120 107 110 80% 100 70% 60% EUR million 80 55% 57% 57% 54% Revenue 49% 51% 50% 57 Adjusted EBITDA 60 40% Adjusted EBITDA margin 40 30% 74 74 67 58 54 20% 20 29 10% 0 0% 2017 2018 2019 2020 2021 2022 6K
Slide 24: Results by segments
Results by segments Passenger harbours Cargo harbours 60 100% 60 100% 50 80% 50 63,9% 80% 40 50 65,8% 52,6% 40 47,6% 60% 55,5% 54,8% 60% 30 52,8% 30 40 40 41 52,2% 33 40% 40% 20 29 29 20 25 20% 22 22 20 20% 10 15 14 17 9 10 10 0 0% 0 0% 2019 2020 2021 2022 6M 2019 2020 2021 2022 6M Revenue mEUR Adj.
Slide 25: Financials
PORT OF @ TALLINN Financials
Slide 26: Results of the Group (1/2)
Results of the Group (1/2) In thousand EUR 2021 2020 6M 2022 6M 2021 Revenue 110 051 107 358 57 135 49 248 Operating profit 29 758 35 562 16 328 12 439 Adjusted EBITDA 54 046 58 423 28 871 24 153 Depreciation, amortisation and -24 761 -24 094 -12 512 -12 098 impairment Income tax -3 275 -4 913 -4 11
Slide 27: Results of the Group (2/2)
Results of the Group (2/2) In thousand EUR 2021 2020 6M 2022 6M 2021 Operating profit/revenue 27.0% 33.1% 28.6% 25.3% Adjusted EBITDA/revenue 49.1% 54.4% 50.5% 49.0% Profit for the period/revenue 23.3% 26.6% 21.4% 17.3% EPS: Profit for the period/weighted average number 0.10 0.11 0.05 0.03 of shares
Slide 28: Cash Flow and Financial Position
Cash Flow and Financial Position Financial position Cash Flow statement 700 In thousands 2021 2020 6M 2022 6M 2021 600 Cash from operating 500 50 162 49 516 30 106 27 329 activities 381 368 EUR million 400 Cash used in investing –12 191 -30 033 –4 591 –9 417 580 activities 577 300 Free cash flow (FC
Slide 29: Revenue model: Passenger harbours
Revenue model Passenger harbours 2021 Contribution Revenue 26% Cargo Charges 7% • Pre-agreed tariffs for ro-ro cargo carried on ROPAX vessels 5% Adjusted EBITDA 6% Rental Income 25% • Fixed lease income from operators using PoT’s land premises 19% (commercial operators e.g. shops, restaurants) Passe
Slide 30: Revenue model: Cargo harbours
Revenue model Cargo harbours 2021 Contribution Revenue 3% Sales of Electricity 37% • Calculated based on the readings of customers electricity meters 13% Adjusted EBITDA Rental Income • Fixed lease income from operators using PoT’s land and facilities 23% 41% Cargo Charges 14% • Pre-agreed tariff ba
Slide 31: Revenue model: Ferry business
Revenue model Ferry business 2021 Contribution Contract Means of Voyage Fee (per each voyage) Revenue Income Payments • Coverage of variable ope- 28% rating cost (mostly fuel) • Indexed quarterly to fuel ~ 24,00 price (90%) and annually to ~ 40,00 Ticket Sales Adjusted EBITDA CPI (10%) 23% Indexed F
Slide 32: Thank You!
Thank You! PORT OF @ TALLINN www.ts.ee ASDAQ. "= ALTIC AWARDS
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