Aktsiaselts Infortar Unaudited Consolidated Interim Report for third quarter of 2024

Aktsiaselts Infortar (Infortar) will organize a webinar for introducing third quarter 2024 results today. Please join the webinar via the following links:4. November at 12.00 (EET)Estonian webinar 4. November at 14.00 (EET) English webinar Following the acquisition of a majority stake in Aktsiaselts Tallink Grupp (Tallink), Infortar's total assets have reached €2.5 billion. For the first nine months of this year, the company's consolidated revenue amounted to €926 million, net profit...

Tallinn, 04/11/2024 (informazione.it - comunicati stampa - servizi)

Aktsiaselts Infortar (Infortar) will organize a webinar for introducing third quarter 2024 results today. Please join the webinar via the following links:

4. November at 12.00 (EET) Estonian webinar

4. November at 14.00 (EET) English webinar

Following the acquisition of a majority stake in Aktsiaselts Tallink Grupp (Tallink), Infortar's total assets have reached €2.5 billion. For the first nine months of this year, the company's consolidated revenue amounted to €926 million, net profit reached €187 million, and investments totaled €138 million.

"We've grown into Estonia's largest investment company in the third quarter—our consolidated asset volume has increased by €1 billion within just nine months. Infortar's structure and outlook have transformed significantly over a short period; we're literally fuelled by growth," remarked Ain Hanschmidt, Chairman of Infortar's Management Board.

"Infortar actively seeks and invests in growth across various sectors and beyond borders. When we went public last year, we committed to invest €110 million from 2023 to 2025, yet we have already invested €138 million in the current year alone," said Hanschmidt.

In the third quarter of 2024, Infortar increased its shareholding in Tallink to 68.5% through a public share offering. Alongside with other investors, Infortar envisions a strong and stable future for Tallink. The voluntary takeover offer attracted those who wished to exit the region for various reasons.

In the third quarter of 2024, Tallink transported a total of 1,715,496 passengers, with the company's ships completing 1,840 departures. Compared to the same period last year, Tallink´s unaudited sales revenue decreased by 3.7%, totalling €231.9 million, with a net profit of €36.8 million.

AS Eesti Gaas, the largest private energy company in the Finnish and Baltic region, increased its sales volume of natural gas and electricity by 27% year-on-year, reaching 13.9 TWh and a market share of 25.7%. Operating under the Elenger brand in foreign markets, the company is focused on expanding its energy business in Poland and Germany and establishing access to the wholesale gas market in the Netherlands and Belgium.

The construction of Rimi's logistics centre and the new Pärnu bridge are going according to the schedule. In July, the bridge arch was installed, introducing new engineering solutions to Estonia.

At the end of the third quarter, Infortar announced plans to acquire Tallinna Raamatutrükikoda, in addition to the printing houses Printon and Vaba Maa. This acquisition aims to enhance synergies and bolster the company's extensive experience in the printing sector.

KEY FIGURES	9 months 2024	9 months 2023	Q3 2024	Q3 2023
Revenue (in thousands of EUR)	925 607	746 892	349 468	186 540
Gross profit (in thousands of EUR)	93 758	107 238	40 669	18 887
EBITDA (in thousands of EUR)	117 384	105 865	41 874	19 294
EBITDA margin %	12,7%	14,2%	12,0%	10,3%
Operating profit (in thousands of EUR)	83 817	94 661	20 422	14 234
Net profit (in thousands of EUR)	187 339	269 624	114 322	185 941
Profit attributable to the owners of the parent company (in thousands of EUR)	184 122	269 546	111 105	185 658
Earnings per share (EUR)*	9,1	13,3	5,5	9,2

Total equity (in thousands of EUR)	1 223 058	771 700
Total liabilities (in thousands of EUR)	961 419	480 816

* For the period ending 30.09.2024, earnings per share (EPS) in euros have been calculated using a share count of 21,166,239, with company´s own shares deducted for comparability.

Revenue

During the first nine months of 2024, Infortar's consolidated revenue increased by €178.7 million, reaching €925.6 million, compared to €746.9 million in the same period in 2023. This growth was significantly impacted by the line-by-line consolidation of Tallink results into Infortar's financial statements.

EBITDA and Segment Reporting

The acquisition of a majority stake in Tallink does not significantly impact segment reporting; Infortar's management continues to monitor business segments using existing principles.

Energy Segment: Nine-month EBITDA for 2024 was €79.5 million, down from €99.1 million in 2023.

Maritime transportation segment: nine-month EBITDA for 2024 was €149,5 million, compared to €177.7 million in 2023. Until 31.07.24, Infortar consolidated Tallink results by the equity method according to its ownership percentage, switching to line-by-line reporting as of 01.08.24.

Real Estate Segment: EBITDA for real estate in the first nine months of 2024 reached €12 million, up from €11 million in the same period of 2023.

Net Profit

Consolidated net profit for the first nine months of 2024 was €187.3 million, compared to €269.6 million for the same period in 2023. The previous year's results included a one-time profit from the AS Gaso acquisition.

Financing

Loan and lease obligations totalled €961.4 million for the first nine months of 2024, up from €480.8 million in 2023 due to the consolidation of Tallink liabilities. The net debt-to-EBITDA ratio, considering Tallink's full-year EBITDA for 2024, stands at 2.4.

Income statement, in thousands of EUR	Q3 2024	Q3 2023	9 months 2024	9 months 2023
Sales Revenue	349 468	186 540	925 607	746 892
Cost of Sales	-308 803	-169 764	-831 796	-634 815
Impairment of Receivables	4	2 111	-53	-4 839
Gross Profit	40 669	18 887	93 758	107 238
Marketing Expenses	-7 789	-394	-8 627	-1 109
General Administrative Expenses	-13 423	-3 975	-27 679	-12 563
Profit (Loss) from Biological Assets	44	0	17	0
Loss on Changes in Fair Value of Investment Properties	-3 047	0	-2 891	0
Profit (Loss) from Derivative Instruments	52	380	24 574	1 067
Other Operating Income	4 368	308	5 449	1 065
Other Operating Expenses	-452	-972	-784	-1 037
Operating Profit	20 422	14 234	83 817	94 661
Profit from Investments Accounted for Using the Equity Method	3 243	22 254	22 128	37 701
Financial Income and Expenses
Income from Financial Investments	69 782	-34	72 520	-58
Interest Expense	-11 340	-5 520	-24 466	-14 004
Interest Income	1 215	467	4 219	2 300
Profit (Loss) from Foreign Exchange Rate Changes	160	-23	156	-160
Other Financial Income and Expenses	-393	159 216	-395	159 216
Total Financial Income and Expenses	59 424	154 106	52 034	147 294
Profit Before Tax	83 089	190 594	157 979	279 656
Corporate Income Tax	31 233	-4 653	29 360	-10 032
Profit (Loss) for the Reporting Period	114 322	185 941	187 339	269 624
Including:
Profit (Loss) Attributable to Owners of the Parent Company	111 105	185 658	184 122	269 546
Profit (Loss) Attributable to Non-controlling Interests	3 217	283	3 217	78
Other Comprehensive Income for the Reporting Period			-33 463	-60 195
Total Comprehensive income for the Reporting Period			153 876	209 429
Including:
Comprehensive Income (Loss) Attributable to Owners of the Parent Company			150 659	209 351
Comprehensive Income (Loss) Attributable to Non-controlling Interests			3 217	78
Basic Earnings per Share			9,11	13,20
Diluted Earnings per Share			8,78	12,80

^{* The non-cash revaluations of derivative instruments in comprehensive income do not affect the profitability or cash flow generating ability of AS Eesti Gaas or Infortar's core business operations.}

Balance sheet, in thousands of EUR

ASSETS	30.09.24	30.09.23	31.12.2023
CURRENT ASSETS
Cash	95 863	90 456	87 115
Short-term Financial Investments	1	1	0
Short-term Derivative Instruments	2 246	21 216	28 728
Receivables from Realized Derivative Instruments	2 773	1 279	5 958
Receivables from Customers	115 992	91 071	162 575
Tax Prepayments	4 161	1 192	925
Other Receivables and Prepayments	31 098	20 228	20 185
Prepayments for Inventories	2 885	29 354	3 493
Inventories	221 174	177 824	146 884
Biological Assets	420	0	0
Total Current Assets	476 613	432 621	455 863
NON-CURRENT ASSETS
Investments in Associates	15 756	341 490	346 014
Long-term Derivative Instruments	1 451	3 485	1 125
Long-term Loans and Other Receivables	29 668	9 771
Investment Properties	67 791	171 046	9 072
Property, Plant, and Equipment	1 816 338	449 014	176 024
Intangible Assets	39 276	13 474	446 748
Right-of-use Assets	47 548	10 421	14 366
Biological Assets	2 840	0	11 300

Total non-current assets	2 020 668	998 701	1 004 649
TOTAL ASSETS	2 497 281	1 431 322	1 460 512

EQUITY AND LIABILITIES
CURRENT LIABILITIES
Loan Liabilities	199 247	204 468	184 259
Lease Liabilities	8 499	956	1 766
Payables to Suppliers	136 017	60 687	74 751
Tax Liabilities	35 702	17 341	32 822
Customer Prepayments	34 741	3 171	3 099
Realized Derivative Instruments	222	3 395	1 463
Other Short-term Liabilities	53 351	21 374	10 851
Short-term Derivative Instruments	11 680	226	3 659
Total Current Liabilities	479 459	311 618	312 670
NON-CURRENT LIABILITIES
Long-term Provisions	9 208	7 255	8 399
Deferred Income Tax Liability	2 391	34 920	33 233
Other Long-term Liabilities	28 612	30 426	30 679
Long-term Derivative Instruments	880	11	186
Loan liabilities	713 212	265 805	246 410
Lease liabilities	40 461	9 587	8 725
TOTAL NON-CURRENT LIABILITIES	794 764	348 004	327 632
TOTAL LIABILITIES	1 274 223	659 622	640 302
EQUITY
Share Capital	2 117	1 985	2 105
Treasury Shares	-95	-95	-95
Share Premium	32 484	0	29 344
Statutory Reserve	212	205	205
Option Reserve	7 647	3 068	3 864
Hedging Reserve*	20 725	22 084	24 118
Unrealized Exchange Differences	1 114	32	-39
Reserve for Post-employment Benefit Obligations	-44	0	-44
Retained Earnings	728 559	474 015	466 140
Profit for the Reporting Period	184 122	269 546	293 778
Equity Attributable to Owners of the Parent Company	976 841	770 840	819 376

Non-controlling Interests	246 217	860	834
TOTAL EQUITY	1 223 058	771 700	820 210
TOTAL EQUITY AND LIABILITIES	2 497 281	1 431 322	1 460 512

^{* This represents the change in the accounting hedging position, which affects the comprehensive income result.}

Cash flow statement, in thousands of EUR	9 months 2024	9 months 2023	2023
Cash Flows from Operating Activities
Profit for the Reporting Period	187 339	269 624	293 830
Adjustments
Depreciation and Impairment of Fixed Assets	30 676	11 204	15 581
Change in Value of Investment Properties	2 891	0	4 074
Profit/Loss from Equity Investments	-156 017	-37 701	-39 639
Change in Value of Derivative Instruments	26 156	59 284	54 122
Other Financial Income/Expenses	-66	-161 433	-161 965
Accrued Interest Expenses	24 466	14 004	22 573
Profit/Loss from Disposal of Fixed Assets	-301	-76	-91
Income from Targeted Financing Recognized in Revenue	-319	-347	784
Accrued Income Tax Expense	-29 360	10 032	8 610
Income Tax Paid	-1 482	0	-267
Change in Receivables and Prepayments Related to Operating Activities	79 126	130 325	54 540
Change in Inventories	-22 986	-118 715	-61 914
Change in Liabilities Related to Operating Activities	35 968	-24 650	-406
Change in Biological Assets	112	0	0
Total Cash Flows from Operating Activities	176 203	151 551	189 832

Cash Flows from investing activities
Payments for Purchase of Associates	0	-7 728	-10 314
Payments for Purchase of Subsidiaries	-67 810*	-103 410	-103 414
Dividends paid	20 862	0	0
Repayments of Loans Granted	2 057	5 966	6 652
Interest Received	4 019	2 301	2 691
Payments for Acquisition of Investment Properties	-10 566	-10 506	-18 304
Payments for Acquisition of Property, Plant and other assets	-17 042	-13 972	-18 143
Proceeds from Sale of Investment Properties and Fixed Assets	707	78	-252
Total cash Flows from investing activities	-67 773	-127 271	-141 084
Cash Flows from Financing Activities
Change in Overdraft	-30 457	30 546	14 348
Loans Received	106 303	148 955	287 606
Repayments of Loans Received	-114 706	-150 790	-312 846
Repayments of Principal Portion of Lease Liabilities	-8 674	-1 562	-2 233
Interest Paid	-24 968	-13 100	-22 224
Dividends Paid	-30 332	-7 875	-15 750
Proceeds from Issuance of Shares	3 152	0	29 464
Total Cash Flows from Financing Activities	-99 682	6 174	-21 635

Total cash flows	8 748	30 454	27 113

Cash and Cash Equivalents at Beginning of Period	87 115	60 002	60 002
Cash and Cash Equivalents at End of Period	95 863	90 456	87 115
Change in Cash and Cash Equivalents	8 748	30 454	27 113

Aktsiaselts Infortar operates in seven countries, the company's main fields of activity are maritime transport, energy and real estate. Aktsiaselts Infortar owns a 68.47% stake in Aktsiaselts Tallink Grupp, a 100% stake in AS Eesti Gaas and a versatile and modern real estate portfolio of approx. 116,000 m2. In addition to the three main areas of activity, Aktsiaselts Infortar also operates in construction and mineral resources, agriculture, printing, taxi business and other areas. A total of 105 companies belong to the Aktsiaselts Infortar group: 96 subsidiaries, 4 affiliated companies and 5 subsidiaries of affiliated companies. Excluding affiliates, Aktsiaselts Infortar employs 6,108 people.

Additional information:
Kadri Laanvee
Investor Relations Manager
Phone: +372 5156662
e-mail: [email protected]
www.infortar.ee/en/investor

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