TALLINK GRUPP IS THE LEADING SHORT CRUISE AND FERRY OPERATOR WWW.TALLINK.COM OVERNIGHT CRUISE & ONBOARD TAX-FREE CARGO GROUP OF STRONG BRANDS LEISURE & CITY BREAK 5 HOTELS PASSENGER TRANSPORTATION SHOPPING & CATERING TRANSPORTATION AS TALLINK GRUPP | Sadama 5/7 | Reg. Nr.:10238429 | Phone: +372 6 409 800 | Fax: +372 6 409 810 | E-mail: [email protected] | JULY 2018 | Investor Relations | E-mail: [email protected] | Phone: +372 640 9914 STRATEGIC PLAN WE OPERATE 7 ROUTES Tallink’s vision is to be the market pioneer in Europe by offering excellence in 5.5 m Other RUS Restaurant & shop Finland-Estonia leisure and business travel and sea transportation services 13% FINLAND LIT 2% 56% 36% 2% Turku Helsinki Long term objectives toward increasing the company value and profitability: LAT Mariehamn 4% SWEDEN Vuosaari Cargo - Strive for the highest level of customer satisfaction Kapellskär 12% - Increase volumes and strengthen the leading position on our home markets Swedish PASSENGERS Finnish Muuga 2017 Stockholm Tallinn - Develop a wide range of quality services directed to different customers and 12% 48% Paldiski 10.0 m ESTONIA REVENUE 2% Accom. REVENUE pursue new growth opportunities BALTIC SEA 1.3 m STRUCTURE 2% Leases BY ROUTES - Ensure cost efficient operations Estonian 3% Other Other - Manage the optimal debt level that will allow sustainable dividends 19% Riga Finland-Sweden 12% LATVIA 2.0 m Current focus is on core operations to realize past investments. Along with the 37% optimal fleet deployment the emphasis is on the profitability improvement and Ticket Swe-Est LITHUANIA 25% Swe-Lat 7% deleveraging. THE PASSENGER MARKET SHARE OF TALLINK GRUPP IS 47% 9% Current strategic cornerstones and competitive advantages: IN THE NORTHERN BALTIC SEA BELARUS Staff Marketing 17% & Admin Total market 13% 20 POLAND 20.5 million MOST MODERN WIDE ROUTE STRONG MARKET SHARE HIGH SAFETY LEVEL & GERMANY Other passengers FLEET NETWORK & BRAND AWARENESS ENVIRONMENTAL STANDARDS 18 Eckerö Line Port 16 11% 14 Viking COST KEY INFORMATION 2017 Line 12 STRUCTURE Goods Fuel 10 9.8 million Passengers transported 9 755 720 P/E 18 passengers 25% 8% 8 Sales 967 mil EUR ROA 4.3% Ship EBITDA 158 mil EUR ROE 5.7% 6 Tallink operating 4 Grupp 10% Net Profit 46 mil EUR Equity Ratio 54% Amortization Average number of employees 7 406 EBITDA Margin 16% 2 3% 9% 4% 0 Financial Other EPS 0.069 Book value per share 1.25 EUR 2014 2015 2016 2017 HISTORY 1883 1910 1928 1957 1965 1989 1990 1996 2001 2002 2003 2004 2005 2006 2009 2011 2015 2017 Finnish Service between Service between One vessel. Hotel Rights Issue. Over 1.3 billion euros invested Steamship Turku & Helsinki & Silja Line Tallinn-Helsinki Tallink 166 th Management Tallinn-Stockholm First newbuilt Private operation IPO Tallink and Silja during the fleet investment program. 9M passengers 1.3M 2.0M Club One New generation LNG Co founded Stockholm Stockholm established route founded passengers buyout route cruise ferry placement starts Line merged 8M passengers reached Club One members members Shuttle ferry OUR FLEET CONSISTS OF 14 ICE CLASS SHIPS AND HAS A VALUE OF EUR 1.5 BILLION AGE OF FLEET BY VALUE WE OPERATE 5 HOTELS (1300 ROOMS) Megastar Baltic Queen Galaxy Silja Europa Isabelle Built: 2017 Built: 2009 Built: 2006 Built: 1993 Built: 1989 Tallink City Pirita Top Spa Length: 212 m Length: 212m Length: 212m Length: 202m Length: 171m Rooms: 332 Rooms: 267 Passengers: 2800 Passengers: 2800 Passengers: 2800 Passengers: 3123 Passengers: 2480 25+ Conference Wellness & MediSPA Tallinn-Helsinki Lanemeters: 3600 Tallinn-Stockholm Lanemeters: 1130 Turku-Stockholm Lanemeters: 1130 Tallinn-Helsinki Lanemeters: 932 Riga-Stockholm Lanemeters: 850 years Tallinn Nightclub Tallinn National Heritage Star Victoria I Silja Symphony Regal Star Atlantic Vision 16-25 Built: 2007 Built: 2004 Built: 1991 Built: 1999 Built: 2002 years 1-10 Tallink Spa & Length: 186 m Length: 193m Length: 203m Length: 157m Length: 203.3m years Conference Tallink Express Passengers: 2080 Passengers: 2500 Passengers: 2852 Passengers: 80 Passengers: 728 Rooms: 275 Rooms: 163 Tallinn-Helsinki Lanemeters: 2000 Tallinn-Stockholm Lanemeters: 1030 Helsinki-Stockholm Lanemeters: 950 Paldiski-Kapellskär Lanemeters: 2087 Chartered out Lanemeters: 1900 11-15 Tallinn Aqua Spa TallinnTallinn Resto & Bar Tempo Baltic Princess Romantika Silja Serenade Sea Wind years Tallink Hotel Built: 2008 Built: 2002 Built: 1990 Built: 1972 Riga 30% of the hotel guests Length: 212m Length: 193m Length: 203m Length: 155.0m Rooms: 256 arrive with Tallink ships Passengers: 2800 Passengers: 2500 Passengers: 2852 Passengers: 260 Conference Turku-Stockholm Lanemeters: 1130 Riga-Stockholm Lanemeters: 1030 Helsinki-Stockholm Lanemeters: 950 Tallinn-Helsinki Lanemeters: 1100 Riga GYM CORPORATE FACTSHEET WWW.TALLINK.COM FINANCIALS OUR POSITION IN THE WORLD SHARE PRICE DEVELOPMENT R 2015 2016 2017 1600 U E FERRY OPERATOR BY GROSS TONS THE WORLD'S TOP DUTY FREE & TRAVEL RETAIL SHOPS 2016 n o Cash s i Revenue 945 938 967 Other Rank Company Gross tons Rank Location Country Channel 1.3 45 ill Intangibles ion M 1 Stena Line 1 064 790 Sales > US$ 1,500.0 million 1400 ill Cost of sales 722 745 772 M Other 2 Grimaldi Lines 701 340 1 SEOUL - Incheon Int'l Airport South Korea Airport Shops 1.2 40 3 Tallink 512 817 2 DUBAI - Dubai International Airport UAE Airport Shops UR Marketing & GA expanses 111 123 125 TAL1T 35 E 1200 4 DFDS Seaways 438 479 3 SINGAPORE - Changi Airport Singapore Airport Shops 1.1 EBITDA 181 149 158 5 P&O Ferries 409 659 Sales > US$ 1,000.0 million 30 Share- 4 LONDON - Heathrow Airport UK Airport Shops 1 EBITDA margin 19% 16% 16% holders FERRY OPERATOR BY BEDS 5 BANGKOK - Suvarnabhumi Airport Thailand Airport Shops 1000 25 Equity Rank Company Beds Sales > US$ 800.0 million 0.9 Net Profit 59 44 46 1 Tallink 24 821 6 HONG KONG - International Airport Hong Kong Airport Shops 20 2 Stena Line 16 985 7 SHANGHAI - Pudong Airport China Airport Shops 0.8 Cash flow from operations 192 147 136 800 3 Viking Line 14 026 8 TOKYO - Narita Airport Japan Airport Shops 15 Investments 44 68 219 4 Grand Navi Veloci 13 328 Sales > US$ 600.0 million 0.7 10 5 Corsica ferries 11 676 9 BEIJING - Capital Airport China Airport Shops Loan repayments 198 4 -6 600 10 PARIS - Charles de Gaulle Airport France Airport Shops 0.6 5 Ships FERRY OPERATOR BY REVENUES (EUR MILLION) 11 FRANKFURT - Frankfurt-Main Airport Germany Airport Shops Dividends 13 54 20 Rank Company Revenue Sales > US$ 500.0 million 0.5 0 400 1 DFDS Group 1 925 12 TALLINK/SILJA LINE - All Routes Estonia Ferries 2014 2015 2016 2017 2018 Cash position 82 79 89 2 Stena Line 1 322 13 TAIPEI - Taoyuan International Airport Taiwan Airport Shops Dividend Share Price Total assets 1 539 1 539 1 559 Loans 3 Tallink 967 Sales > US$ 400.0 million 200 4 Finnlines 536 14 AMSTERDAM - Schiphol Airport Netherlands Airport Shops Ships 1 270 1 235 1 296 5 Viking Line 523 15 ISTANBUL - Atatürk Airport Turkey Airport Shops Interest bearing loans 549 559 561 TALLINK HAS BEEN A LEADING STOCK ON THE BALTIC MARKET IN LIQUIDITY, 0 MARKET CAPITALIZATION AND HAS A RETAIL SHAREHOLDER BASE AROUND 11 000 SHAREHOLDERS Assets Liabilities & Source: ShipPax MARKET: 17, Company reports Source: Generation Research 2017 Shareholders' equity 821 810 836 Equity SEGMENT RESULT BY ROUTES 2017 PASSENGER REVENUE OWNERSHIP & MANAGEMENT Sales Result Passengers R U Infortar AS 38% 90.0 E 81.3 81.2 80.3 80.2 Baltic Cruises Holding L.P. 16% Finland-Sweden 18 2 918 850 80.0 Total Baltic Cruises Investment L.P. 6% 70.0 ING Luxembourg S.A. AIF Account 4% Estonia -Finland 78 ING Luxembourg S.A. Client Account 3% 5 062 635 60.0 51.6 52.2 51.4 51.4 Infortar 38% Nordea Bank AB Finland Branch Clients 3% 50.0 Onboard Citigroup Venture Capital International G.P. 2% 11 Estonia -Sweden 1 030 490 40.0 State Street Bank and Trust Omnibus Fund OM01 2% 29.7 29.0 28.9 28.8 Bank of New York Mellon S.A. Clients 1% 30.0 H Clearstream Banking Luxembourg S.A. Clients 1% i -1 g 24% Latvia-Sweden h 74 3 74 5 20.0 s e Ticket 10 935 shareholders a s 10.0 o Others 18 n 0.0 Million Eur 0 50 100 150 200 250 300 350 400 2014 2015 2016 2017 Paavo Nõgene Chairman of the Management Board, CEO Andres Hunt Member of the Management Board Janek Stalmeister Member of the Management Board THE SEGMENT RESULT IS THE RESULT BEFORE ADMINISTRATIVE EXPENSES, Lembit Kitter Member of the Management Board FINANCIAL EXPENSES AND TAXES QUARTERLY PASSENGER SPENDING, HIGHS AND LOWS PASSENGERS CARGO UNITS REVENUE EBITDA QUARTERLY SEASONALITY R U E 300 R R illion U U n M E E 9.8 200 ts 400 967 illio 10 9.5 1000 on 945 938 on 250 uni Q4 M 181 illi illi d 364 n M 9.0 M 9 sa 2.3 328 hou 158 200 T 30 2.2 228 226 232 160 8 2.1 308 97 800 149 300 85 29 150 7 30 274 274 283 78 Q3 254 245 260 120 228 226 233 6 2.9 2.9 600 283 100 190 193 192 2.7 91 274 274 77 184 5 200 81 76 75 50 80 67 4 400 Q2 2.4 2.6 2.6 92 254 260 0 3 2.4 79 84 245 100 55 Revenue Net profit 40 -50 2 200 36 49 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2.0 1.9 1.9 84 91 190 Q1 1 1.8 75 77 193 192 184 2015 2016 2017 2018 19 16 0 0 0 0 5 4 TYPICAL TO THE TALLINK BUSINESS MODEL IS THAT MOST OF THE RESULT IS MADE IN THE 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 SUMMER HIGH SEASON .