TRANSLATION OF THE ESTONIAN ORIGINAL GROUP ANNUAL REPORT 2018 1 TRANSLATION OF THE ESTONIAN ORIGINAL AS Tallinna Sadam GROUP ANNUAL REPORT 2018 Commercial Registry no. 10137319 VAT registration no. EE100068489 Postal address Sadama 25 15051 Tallinn Registered office Sadama 25 15051 Tallinn Country of incorporation Republic of Estonia Phone +372 631 8555 Fax +372 631 8166 E-mail
[email protected] Corporate website www.ts.ee Beginning of financial year 1. January End of financial year 31 December Legal form Limited company (AS) Auditor KPMG Baltics OÜ 2 TRANSLATION OF THE ESTONIAN ORIGINAL CONTENTS 1 TALLINNA SADAM AT A GLANCE 6 1.1 Business model 6 1.2 Letter from the Chairman of the Supervisory Board 8 1.3 Letter from the Chairman of the Management Board 9 1.4 Vision, mission, strategy 10 1.5 Significant events in 2018 11 1.6 Key performance indicators 13 2 BUSINESS REVIEW 15 2.1 Economic environment 15 2.1.1 Overview of the market: passengers 15 2.1.2 Overview of the market: cargo 16 2.2 Results of operations 17 2.2.1 Number of passengers 17 2.2.2 Cargo volume 18 2.2.3 Ferry service 19 2.2.4 Multifunctional icebreaker Botnica 19 2.3 Revenue and expenses 20 2.4 Net profit 22 2.5 Segment reporting 23 2.6 Investments and development prospects 24 2.7 Dividends 25 2.8 Share and shareholders 26 3 CORPORATE GOVERNANCE 29 3.1 General meeting 29 3.2 Supervisory board 30 3.3 Audit committee and internal audit unit 32 3.4 Management board 32 3.5 Supervisory and management boards of subsidiaries and associates 34 3.6 Cooperation of management and supervisory