Good day and welcome to our webinar. My name is Valdo Kalm, and here is Andrus Ait, our CFO.

I would like to start then with summary from Q1 and the main events. Q1 was quite tough.

Revenue remained at the same level, but some volume decrease due to the heavy winter and and also many many docks in on passenger vessels. Also, there was cost increase mainly due to the higher energy and fuel cost.

Then in in Q1, that was one positive influence from last year by one-off insurance payment for Botnica repair works almost €1 million. Then to the to the main events.

As I mentioned, there was decrease in volumes mainly in cargo segment due to the winter conditions, and we saw the decrease in liquid bulk. Then we had several three docks of passenger vessels.

We also signed agreement to use our ferry Regula until the end of 2028. That means the that we have to invest a bit, but all in all, the agreement is is good for us.

That means that Regula will be in operation till the end of 2028. We finished our new quay in Paldiski South Harbour, and also we got or received use permit, and also, what is more important, we received first ship calls.

Here on a slide, you see quite a big vessel carrying the the elements of wind farms, and we serve just now via Paldiski and via already this new quay Latvian onshore wind farm. That means that key is in a in a use already.

It's very multifunctional. The ramp is carrying very heavy cargo, therefore there are a lot of possibilities.

We also already saw first military ships on a on a quay, and we see increase of that also of military. Positive is that cruise season started very early, already in March.

We also got some huge vessels, and overall prognosis for cruise season is very good, some 20% more ships. Then we also believe the increase of passengers at least 20%, therefore that's that's definitely supports our passenger volumes.

There was also one civil court proceeding agreement against former management board members. The trends in business segments, as I mentioned, there was decrease in passenger numbers, but more in even in vessels due to the three-ship dock.

That that was all planned. We we need that our operators investing to the to the ships, and it's quite natural.

Now we hope that at least we don't see any big docks in head for the for the entire year. On cargo, the biggest decrease was in liquid bulk.

At the same time, we managed to have growth in Ro-Ro, that's our biggest cargo segment that shows positive trend on on export-import. We believe that we we hope that that will continue, and that's most important because Ro-Ro is nowadays the far biggest segment.

Ferry segment shows very stable numbers, and also Botnica, under the other segment, showed the same number of charter days as as last year. Here are the passenger volumes, as we mentioned, and there you see on left or or right side of the slide the yearly-based numbers.

There is most important number, of course, is the vessel calls to keep it on a on a very stable level. That's that's our aim, and then step-by-step, to increase the passenger numbers.

On cargo side, I mentioned, yeah, decrease in liquid bulk, increase in Ro-Ro, and again, yearly basis, we would like to see stable or or tiny growth on cargo vessel calls and in cargo volumes. Shipping did Ferry segment did very stable Q1 and same for Botnica.

Here you see the yearly numbers also. We believe that this year shows better number of utilization rate or or charter days, and we signed the first agreement with Swedish company on a North Sea.

If everything goes well, then Botnica starts in the beginning of of June the first summer job. There is continuous negotiation with some other summer jobs.

Future outlook very briefly. We believe that we will have also we will see the the tiny increase of passenger numbers.

That's mainly due to the prognosis for the cruise business. As I mentioned, we see quite a good increase of bookings of vessels, and the vessels are bigger and bigger, they carry more passengers.

Therefore, we believe in increase of passenger numbers also. Definitely, it's important to to to negotiate and try to find new Ro-Ro or container lines.

If that will happen, we definitely report that. There are ongoing two, three negotiations for Muuga and then Paldiski ports.

We introduced already Finnish corridor, and and then on November last year, we signed with Port of Stockholm Swedish corridor to increase the volumes between Tallinn-Stockholm and Kapellskär-Paldiski. Now we are going to sign new agreement with Hamburg and Lübeck.

There are already vessels call vessel calls between our ports, but there are room for increase to introduce better our capabilities, and therefore we traveling now in the middle of May to Germany. In delegation, there are also shipping lines with with us.

We are we believe that there are room for for increase the capacity in sustainable way, of course. As I mentioned, important is to now utilize more multifunctional functional quay in Paldiski.

It's already in use, but we negotiating also with with some other deals to to the quay and to the backyard of the quay. If that will happen with with bigger volumes, we again will will announce about via stock exchange.

We just recently started a new industrial park campaign in Muuga. We got back the area showed all here on a slide about 20 hectares with excellent quay.

There is no need for additional investment, just we have to find right operator or constructing company or or producer. This time, this campaign is really international.

We also hope that there will be certain interest from Scandinavia. Preparation for the real estate business is is ongoing, and our plan is now introduce the tender in early autumn for the two areas, and we preparing now for for that.

Finally, efficiency, efficiency, efficiency. That's what we working in long term and short term and continuous.

I would like to give floor to Andrus for for more precise comments about our results and numbers.

Thank you, Valdo. These are the financial results of the group for the first quarter.

The results were impacted by severe ice conditions, docking works, and high energy prices. In addition to that, the last year in the first quarter, we received the indemnity payment for icebreaker Botnica, this also impacted the results or the comparison period.

The revenue decreased by a bit less than 1% and amounted to €28.2 million. The decrease came mainly from the vessel dues because we had less vessel calls in cargo harbours.

The reason was mainly the severe ice conditions. In passenger ports, three ships which are regularly operating between Tallinn-Helsinki and between Stockholm were in docking works.

For example, the Eckerö Line ship, Finlandia was off from the line more than three weeks, this impacted the vessel calls in passenger harbours. In connection with that, the number of passengers also decreased, and therefore we had lower revenue from passenger fees.

Cargo charges also decreased because lower cargo volumes. The offsetting effect, the revenues came from the sale of electricity because of the cold weather and high electricity prices, the revenue increased.

Starting from March this year, we also implemented the new price list for electricity network service, this also helped to offset the decline in revenues. Adjusted EBITDA decreased by 17% and amounted to €11.6 million.

The decline in euros was €2.3 million. This can be explained by three factors.

Firstly, already mentioned, in first quarter last year, we received the insurance indemnity in amount of €900,000, the cost level last year was due to this one-off impact €900,000 lower. Ice conditions caused the higher fuel consumption and also the fuel price went up, this impacted the fuel costs in ferry segment.

The fuel costs were higher about €800,000, and also the cost of electricity increased by half a million euros. Therefore, these were the main cost items which impacted the operating costs and also EBITDA.

Adjusted EBITDA margin declined by 8 percentage points down to 41%. First quarter, we didn't pay any dividends, therefore we didn't have any income tax dividend payout.

We will make the second quarter in May. Net financial costs decreased because the outstanding amount of loan has decreased and also the Euribor level was lower this year.

Profit for the period decreased by 1/3 and amounted to 4. 4.6 million euros.

First quarter, we invested €1.3 million. We completed the construction of the multifunctional quay in Paldiski South Harbour.

This was the main investment project. The quay itself got the use permit in February, the first months, we made the final investment there.

Also bought some new equipment for the ferries. When we move on with the results divided by the segments, we see that the revenue decreased in the cargo harbours and passenger harbours.

Ferry harbours was there was some increase due to the indexation. In segment Other, the revenue was stable.

Passenger harbour, the revenue was impacted by lower number of vessel calls and passenger numbers. Actually, the cargo fees in passenger harbours increased because of increase in Ro-Ro, which is the main cargo type for the passenger ports.

On EBITDA level in passenger harbours, there was decline because of increase in operating costs. We made more repair works this year and also there was increase in salaries or personnel expenses.

In cargo harbours, there were also impact from the vessel dues, less vessel calls. The cargo charges decreased because we had less cargo, especially the liquid bulk decreased.

On EBITDA level, the decline was lower than in revenues because we made less repair works in the cargo harbours. In the ferry segment, revenue was quite stable, a small increase, and decline on EBITDA level can be explained by higher fuel costs mainly.

Also the personnel expenses were a bit higher because we had to bring the Regula on the route because of the ice conditions. Usually, for Regula, in winter period, we have smaller crew.

This year, we had to hire the full crew there and so therefore this was the explanation for the higher personnel expenses. In the segment Other, the EBITDA was impacted by the insurance indemnity last year, which decreased the cost level 2025.

Other costs were quite similar, and Botnica costs aren't impacted by higher fuel costs or consumption because the icebreaker was chartered out for the full quarter and the fuel costs are fully covered by charterer or by the state. On cash flow side, cash from operating activities decreased because of lower revenues and higher costs.

We also made a one prepayment for our client returned actually the advance payment, and last year was also impacted by the insurance indemnity here, which was €900,000. Cash used in investing activities was positive, almost €1 million, to explain that this year we received EU grant money in amount of 5.

more than €5 million. Last year, it was €2.6 million, and this grant money which we got this year was in connection with the OPS, or onshore power supply, project in during Old City Harbour.

We also invested less than last year in the first quarter. Free cash flow was €12.9 million.

Cash used in financing activities was lower because Euribor levels were lower and the outstanding loan was also lower, due to that we pay the less interests. Net cash flow was €11 million, and net debt at the end of the period was €130 million, and decline here was more than €19 million.

We had more cash on bank accounts and also that the level of outstanding loans has decreased compared to the first quarter last year. Financial position, we see that compared to the year-end period, the cash on bank accounts has increased because of the positive net cash flow.

Non-current assets decreased because the amortization exceeded the investments in first quarter. Equity was impacted by the profit of the period.

Other liabilities increased because of that we received the EU grant money, and the debt decreased because of the loan repayments in the first quarter. This is all from our side, but always we have also some extra slides about the revenue and EBITDA generations.

These slides we won't comment separately, and you can submit questions by Teams. We have also some questions sent up front, these questions we address at first, and we are back in a couple of minutes to answer the questions.

See you soon.

We are back with our answers, and the first question looks as follows: Updates on leasing success at Muuga and Paldiski Industrial Park. As I mentioned, we just started with a new international campaign in Muuga, but from the previous, more local campaign, we got one very interesting partner.

Negotiations are ongoing, but no contracts yet. Same applies for Paldiski.

Definitely, we already working on a new quay and on the backyard with onshore wind parks in Latvia, but at the same time, we negotiating already new deals. Second question: The current status of MPG AgroProduction campaign?

That's basically the same area as I described. That's this 20 hectares of backyard of quay, and that's the campaign what we just started.

Therefore, any results yet. Any progress on securing new lines of agreement for the Paldiski South Harbour new quay?

As again I mentioned, there are also ongoing discussions with shipping lines, and sometimes these shipping lines are connected for the bigger project, therefore there are a couple of negotiations ongoing. Definitely, we would like to and we have to utilize this new investment and the very good conditions what we have on this multifunctional quay in Paldiski.

What about status in the Jetgas LNG project in Muuga? Good news is that Jetgas got their license or permission to build the terminal.

If everything goes well, they will start this year. There is demand on a market for bio-LNG, that's no doubt on industry side, but also from shipping companies, therefore we are quite positive that they will start investment and there is a market for the LNG.

Next question regarding the drop in lease income: We can explain it to the fact that the drop was caused mainly because of the fact that we got back the land, the same land from the Muuga AgroProduction, where we arranged the new competition or tender. Last year, we recorded this income in revenues and immediately estimated it uncollectible, there wasn't any impact on EBITDA level.

This year, we got back the land and don't see any revenue from that, and we don't have also any write-offs as well. On EBITDA level, this is zero impact.

What are the plans for increasing cargo volumes in the future? Definitely, our cargo volumes are dependency of Estonian export-import, that means the global economic situation.

We see at least already we have seen in March increase of Ro-Ro. That means that we see the small increase of Estonian export.

That's definitely positive trend. We're working heavily with corridors.

As I mentioned, we are going to add new corridor agreement with Lübeck and Hamburg ports, plus we're working with shipping lines. That's what we can do, and of course, that's not only good for the Port of Tallinn, but also for the Estonian economy, to introduce more export possibilities and export logistic possibilities and increases the competition among them.

Next question regarding the Botnica charter calendar this year: We can say that the first summer charter project agreement we already signed, and if everything goes well, that the charter work starts in June this year and lasts up to 26 days. There are some projects under negotiation currently, we definitely aim to the level of 2025 or even more, it was 220 charter days or more for the full year.

This is our target currently, and we working on it. Next question regarding the real estate development in Old City Harbour and about the cash flows: In the 2nd of April this year, the city council adopted the detailed plans for the D-terminal surrounding area and A-terminal area.

During the summer, the city government should arrange the public displays, and after that they are probably beginning of autumn ready to finally impose the development plans for those two areas. After that, we plan to come out with the tenders, it means that positive cash flow should be in coming years and not in 2026.

Are there any new developments regarding Kazakh grain? Yes, there was one important event: a big delegation, high-level delegation, visited Muuga Harbour.

There was also president of the company, it's the state-owned company from Kazakh, with whom we signed the agreement and they studied the possibilities of our grain terminal and the port, and I would say it went very successfully, but no cargo yet.

Now questions from Teams: "Have you income or yield expectations from new Paldiski quay now lower than during original investment decision?" No, the expectations and the target level are similar as in initial projects.

"Would adjusted EBITDA be down also in quarter two year-on-year in the ferry segment due to the fuel costs?" Actually not, because the indexation model in this contract foresees that the revenues are indexed based on the data of previous quarter, in the second quarter, there should be some indexation already taken into account, the revenues also are increasing.

Because we don't have any extra consumption, there won't be any impact from the fuel in the second quarter in case that the fuel price remains stable.

Would it be possible to get an update on the planned investment for 2026 and also the expected positive government contribution to the investment? Our expected investment level is for this year €25 million all together.

Of course, there are always possibility to gain some EU money, but not governmental support. Does Botnica have any alternative contracts for autumn 2026?

As Andrus already mentioned, there are some four, five negotiation project in a pipeline. We believe that this year will be longer period for Botnica as last year, that means we are quite positive to gain some additional summer work or autumn work for the Botnica.

Have you already seen the growth in cargo volumes in April, May this year?

As I mentioned, I can only say that we see some positive trends in Ro-Ro, but yeah, it's a little bit too early to comment other flows.

There was question also about the fuel cost compensations. This one we already commented, I update the questions.

It seemed that all the questions we addressed, thank you for the participation and see you next time.

Thank you for listening and for your interest.