Aktsiaselts Infortar Unaudited Consolidated Interim Report for second quarter of 2024

Infortar will organize a webinar for introducing 2. quarter 2024 results today. Please join the webinar via the following links:

5 May 2024 at 12:00 (EET) Estonian webinar

5 May 2024 at 14:00 (EET) English webinar

In the first half of the year, Infortar's sales volumes increased by 40 percent, reaching 576 million euros. The company's net profit amounted to 73 million euros. The value of Infortar's assets reached 1.5 billion euros, and investments totalled 41 million euros.

"In the first half of the year, we have strengthened our positions in the Finnish and Baltic energy markets, gained additional market share, increased sales, and filled gas storage capacities for the next season – our fundamental indicators are strong and liquidity position is solid, this is a good platform for continuing our investments," noted Infortar's Chairman of the Board, Ain Hanschmidt.

"The results of Infortar's main investments are strongly linked with seasonality – the energy sector delivers high numbers during the cold period, whereas maritime transportation’s passenger numbers peak in the summer," Hanschmidt added.

In the first half of this year, Infortar invested 41.3 million euros. The company increased its shareholding in Tallink by 4.5 percent to 46.8 percent, acquired a majority shareholding in the Halinga farm in Pärnumaa, and commissioned a solar park in Nica, Latvia. The focus is on expanding operations in Poland and Germany, as well as gaining access to the wholesale gas market in the Netherlands and Belgium. The construction of the RIMI logistics centre and the new bridge in Pärnu have progressed according to planned schedule.

Infortar’s subsidiary Eesti Gaas (Elenger in foreign markets), which is the largest privately owned energy company in the region, increased its sales volume by 40 percent compared to the same period last year, reaching a total of 10 TWh. The company's gas sales market share in the Finnish-Baltic market stands at 25.4 percent.

The number of Tallink passengers on the Helsinki route has increased compared to last year, while the number of travellers between Finland and Sweden has decreased compared to the same period last year. In June, Infortar announced a voluntary takeover offer to Tallink's shareholders. Although the offer applies equally to all investors, it primarily enhances market liquidity, thereby providing a potential exit opportunity for larger investors who might otherwise face difficulties due to low trading volumes on the stock exchange.

As of June 30 of 2024, Infortar's equity amounted to 840 million euros, and its total assets reached 1.5 billion euros. Compared to the results from the six-month period last year, Infortar's EBITDA and net profit decreased by 11 million euros. For the first six months of 2024, EBITDA was 76 million euros, and net profit was 73 million euros.

KEY FIGURES OF FINANCIAL YEAR	6 months 2024	6 months 2023	Q2 2024	Q2 2023
Revenue (in thousands of EUR)	576 139	560 352	203 555	212 872
Gross profit (in thousands of EUR)	53 089	88 351	3 085	22 346
EBITDA (in thousands of EUR)	75 510	86 571	1 506	34 011
EBITDA margin %	13%	15%	0,7%	16%
Operating profit (in thousands of EUR)	63 395	80 427	-4 229	30 748
Net profit (in thousands of EUR)	73 017	83 683	10 955	36 906
Earnings per share (EUR)*	3,6	4,1	0,5	1,8
Total equity (in thousands of EUR)	840 216	575 783
Total liabilities (in thousands of EUR)	448 387	300 217

* Earnings per share have been calculated for all reported periods based on the following formula: net profit for the reporting year divided by the number of issued shares as of June 30, 2024 (6 months 2024 = (72´839 * 1,000) / (21,166,239-945´000) = 3.6 euros per share). In 2023 and 2024, share splits and the issuance of new shares occurred. For comparability purposes, the formula uses the currently valid number of shares each time.

Sales Revenue

In the first half of the 2024 financial year, the group's consolidated sales revenue increased by 15.8 million euros, reaching 576.14 million euros (compared to 560.35 million euros in the first half of 2023). The significant positive impact was due to the growth in the regional gas sales market share to 25.4 percent, which allowed for an increase in sales revenue compared to the previous year.

EBITDA and Segment Reporting

Energy Segment: The EBITDA for the energy segment in the first half of the 2024 financial year was 73 million euros (compared to 82 million euros in the first half of 2023).

Maritime transport Segment: The EBITDA for the maritime transport segment in the first half of the 2024 financial year was 81 million euros (compared to 96 million euros in the first quarter of the 2023 financial year). Infortar consolidates the results of AS Tallink Grupp using the equity method, meaning that results of AS Tallink Grupp are reflected in the segment reporting according to Infortar's ownership percentage in AS Tallink Grupp. In segment reporting, 100% of AS Tallink Grupp results (including 100% EBITDA) are accounted for in accordance with applicable accounting rules.

Real Estate Segment: The profitability assessment considers the EBITDA of individual real estate companies. The EBITDA for the real estate segment in the first half of the 2024 financial year was 7 million euros (compared to 6 million euros in the first half of 2023).

Net Profit

The consolidated net profit for the first half of the 2024 financial year was 73 million euros (compared to 84 million euros in the first half of the 2023 financial year).

Financing

Loan and lease liabilities amounted to 448.4 million euros in the first half of the 2024 financial year (compared to 300.2 million euros in the first quarter of the 2023 financial year). The company's net debt decreased by 90.9 million euros compared to the end of 2023, totalling 263 million euros. The net debt to EBITDA ratio is 2.1.

Numbers presented in thousands of euros	Q2 2024	Q2 2023	6 m 2024	6 m 2023
Sales Revenue	203 555	212 872	576 139	560 352
Cost of Sales	-200 420	-183 766	-522 993	-465 051
Impairment of Receivables	-50	-6 760	-57	-6 950
Gross Profit	3 085	22 346	53 089	88 351
Marketing Expenses	-423	-369	-838	-715
General Administrative Expenses	-7 018	-5 145	-14 256	-8 588
Profit (Loss) from Biological Assets	-27	0	-27	0
Loss on Changes in Fair Value of Investment Properties	0	0	156	0
Profit (Loss) from Derivative Instruments	-137	13 717	24 522	687
Other Operating Income	481	230	1 081	757
Other Operating Expenses	-190	-31	-332	-65
Operating Profit	-4 229	30 748	63 395	80 427
Profit from Investments Accounted for Using the Equity Method	16 885	14 724	18 885	15 447
Financial Income and Expenses
Income from Financial Investments	2 738	0	2 738	-24
Interest Expense	-6 381	-4 529	-13 126	-8 484
Interest Income	1 760	1 188	3 004	1 833
Profit (Loss) from Foreign Exchange Rate Changes	-2	-8	-4	-137
Other Financial Income and Expenses	-6	0	-2	0
Total Financial Income and Expenses	-1 891	-3 349	-7 390	-6 812
Profit Before Tax	10 765	42 123	74 890	89 062
Corporate Income Tax	190	-5 217	-1 873	-5 379
Profit (Loss) for the Reporting Period	10 955	36 906	73 017	83 683
Including:
Profit (Loss) Attributable to Owners of the Parent Company	10 921	36 906	72 983	83 888
Profit (Loss) Attributable to Non-controlling Interests	34	0	34	-205
Other Comprehensive Income for the Reporting Period			-33 134	-69 667
Total Comprehensive income for the Reporting Period Including:			39 883	14 016
Comprehensive Income (Loss) Attributable to Owners of the Parent Company			39 849	14 221
Comprehensive Income (Loss) Attributable to Non-controlling Interests			34	-205
Basic Earnings per Share			3,61	13,32
Diluted Earnings per Share			3,48	13,17

* 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.

Numbers presented in thousands of euros
ASSETS			30.06.24		30.06.23		31.12.2023
CURRENT ASSETS
Cash			185 243		136 026		87 115
Short-term Financial Investments			1		1		0
Short-term Derivative Instruments			2 511		12 618		28 728
Receivables from Realized Derivative Instruments			1 316		365		5 958
Receivables from Customers			84 856		72 006		162 575
Tax Prepayments			1 014		951		925
Other Receivables and Prepayments			11 285		13 066		20 185
Prepayments for Inventories			4 288		1 238		3 493
Inventories			137 177		124 418		146 884
Biological Assets			425		0		0
Total Current Assets			428 116		360 689		455 863
NON-CURRENT ASSETS
Investments in Associates			386 702		315 434		346 014
Long-term Derivative Instruments			2 172		3 959		1 125
Long-term Loans and Other Receivables			7 418		9 892		9 072
Investment Properties			184 476		165 815		176 024
Property, Plant, and Equipment			456 339		151 780		446 748
Intangible Assets			14 624		9 054		14 366
Right-of-use Assets			12 498		9 384		11 300
Biological Assets			2 797		0		0
Total non-current assets			1 067 026		665 318		1 004 649
TOTAL ASSETS			1 495 142		1 026 007		1 460 512
CURRENT LIABILITIES
Loan Liabilities			129 674		107 937		184 259
Lease Liabilities			1 734		1 136		1 766
Payables to Suppliers			88 009		67 704		74 751
Tax Liabilities			12 193		14 955		32 822
Customer Prepayments			479		1 037		3 099
Realized Derivative Instruments			7 081		6 200		1 463
Other Short-term Liabilities			11 367		4 783		10 851
Short-term Derivative Instruments			14 065		44		3 659
Total Current Liabilities			264 602		203 796		312 670
NON-CURRENT LIABILITIES
Long-term Provisions			10 371		7 492		8 399
Deferred Income Tax Liability			33 435		30 268		33 233
Other Long-term Liabilities			29 302		17 524		30 679
Long-term Derivative Instruments			237		0		186
Loan liabilities			306 571		183 082		246 410
Lease liabilities			10 408		8 062		8 725
TOTAL NON-CURRENT LIABILITIES			390 324		246 428		327 632
TOTAL LIABILITIES			654 926		450 224		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			5 781		2 595		3 864
Hedging Reserve*			-9 103		12 623		24 118
Unrealized Exchange Differences			48		20		-39
Reserve for Post-employment Benefit Obligations			-44		0		-44
Retained Earnings			729 579		474 015		466 140
Profit for the Reporting Period			72 983		83 888		293 778
Equity Attributable to Owners of the Parent Company			832 942		575 236		819 376
Non-controlling Interests
			7 274		547		834
TOTAL EQUITY			840 216		575 783		820 210
TOTAL EQUITY AND LIABILITIES			1 495 142		1 026 007		1 460 512

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

                                                                

Numbers presented in thousands of euros	6 months 2024		6 months 2023		2023
Cash Flows from Operating Activities
Profit for the Reporting Period	73 017		83 683		293 830
Adjustments
Depreciation and Impairment of Fixed Assets	12 271		6 144		15 581
Change in Value of Investment Properties	-156		0		4 074
Profit/Loss from Equity Investments	-18 885		-15 447		-39 639
Change in Value of Derivative Instruments	25 168		67 397		54 122
Other Financial Income/Expenses	83		-1 792		-161 965
Accrued Interest Expenses	13 126		8 484		22 573
Profit/Loss from Disposal of Fixed Assets	-173		-31		-91
Income from Targeted Financing Recognized in Revenue	-84		-313		784
Accrued Income Tax Expense	1 873		5 379		8 610
Income Tax Paid	-1 672		-1		-267
Change in Receivables and Prepayments Related to Operating Activities	91 407		151 608		54 540
Change in Inventories	9 606		-39 323		-61 914
Change in Liabilities Related to Operating Activities	-27 452		-35 529		-406
Change in Biological Assets	149		0		0
Total Cash Flows from Operating Activities	178 278		230 259		189 832
Cash Flows from investing activities
Payments for Purchase of Associates	-21 822		-3 927		-10 314
Payments for Purchase of Subsidiaries	-5 401		-4		-103 414
Repayments of Loans Granted	1 932		5 844		6 652
Interest Received	2 686		1 834		2 691
Payments for Acquisition of Investment Properties	-8 296		-5 275		-18 304
Payments for Acquisition of Property, Plant and other assets	-8 213		-8 968		-18 143
Proceeds from Sale of Investment Properties and Fixed Assets	282		33		-252
Total cash Flows from investing activities	-38 814		-10 463		-141 084
Cash Flows from Financing Activities
Change in Overdraft	-15 513		7 499		14 348
Loans Received	107 712		900		287 606
Repayments of Loans Received	-92 357		-135 094		-312 846
Repayments of Principal Portion of Lease Liabilities	-928		-922		-2 233
Interest Paid	-13 070		-8 280		-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	-41 336		-143 772		-21 635
Total cash flows	98 128		76 024		27 113
Cash and Cash Equivalents at Beginning of Period	87 115		60 002		60 002
Cash and Cash Equivalents at End of Period	185 243		136 026		87 115
Change in Cash and Cash Equivalents	98 128		76 024		27 113

Infortar operates in six countries, the company's main fields of activity are energy, maritime transport, and real estate. Infortar owns a 46,8% stake in AS Tallink Grupp, a 100% stake in AS Eesti Gaas and a versatile and modern real estate portfolio of approx. 113,000 m2. In addition to the three main areas of activity, Infortar also operates in construction and mineral resources, agriculture, printing, taxi business and many other areas. A total of 103 companies belong to the Infortar group: 48 subsidiaries, 5 affiliated companies and 50 subsidiaries of affiliated companies. Excluding affiliates, Infortar employs 1,344 people.

Additional information:

Kadri Laanvee
Investor Relations Manager
e-mail: [e-mail]
phone: [phone]
https://infortar.ee/en/investor

Attachments

• AS INFORTAR Q2 report
• Q2 2024 ENG presentation