Aktsiaselts Infortar Unaudited Consolidated Interim Report for fourth quarter and 12 months of 2023

In 2023 Estonia´s largest investment holding company Aktsiaselts Infortar (hereinafter referred to as “Infortar”) increased its revenue to 1,084.6 million euros with profit reaching to 293.8 million euros. As of 31^st of December, the Total assets of Infortar amounted to 1,462.2 million euros. The key drivers of the group’s financial performance are described below.

The chairman of the board of Infortar Ain Hanschmidt comments:

„All three core business segments performed well, achieving the best results in all financial indicators. Although the energy prices in the region stabilized at lower levels, Eesti Gaas, as one of the few energy companies, was able to significantly increase its volumes. Key factors driving our success include cross-border growth, ongoing investments in expansion, and the adaptability of our group companies. We have diversified risks across multiple segments in our investment portfolio and have successfully turned market challenges into opportunities. Record-breaking financial results enable us to proceed with extensive investment plans and the board proposes to pay one of the largest dividends of today's Tallinn Stock Exchange-listed companies in history to our more than 5200 shareholders, “noted Hanschmidt.

Webinar to present the results of Q4 2023

Today, February 26, 2023, at 12.00 EEST Infortar will host a webinar in Estonian and at 14.00 EEST in English to present and discuss its Q4 2023 results. To participate, please follow this www.infortar.ee

*Major events *

*Energy*

· The group's electricity and gas sales volumes doubled in 2023, reaching a total of 15.9 TWh in Finland, Estonia, Latvia, Lithuania, and Poland.
· The most substantial investment in 2023 was the acquisition of Gaso, which owns the gas distribution network in Latvia. This led to a significant expansion in the infrastructure segment, complementing energy sales and production.

*Maritime transport*

· In the maritime transport sector, Infortar continued to increase its shareholding in AS Tallink Grupp, and as of February 26, 2024, the ownership in AS Tallink Grupp stands at 42.33%.
*Real estate*

· In the real estate sector, Infortar group major development projects included the construction of the logistics center in Saue and the new bridge in Pärnu, and the expansion of the Tallink logistics center.

*KEY FIGURES OF FINANCIAL YEAR*

*Key figures* *Q4 2023* *Q4 2022* *12-month 2023* *12-month 2022*
Sales revenue, m€ 337,734 442,596 1 084,626 1 053,712
Gross profit, m€ 42,235 14,412 149,473 126,537
EBITDA, m€ 37,418 10,000 143,283 120,046
EBITDA margin (%) 11,1% 2,3% 13,2% 11,4%
Net profit, EBIT, m€ 28,967 -2,946 123,628 99,140
Total profit, m€ 24,206 -1,674 293,830 96,124
Net profit from recurring business operations  - - 144,830* 107,124**
EPS (euros)*** - - 14.63 5.13
Total equity 821, 946 568, 677 821, 946 568, 677
Total liabilities 441,160 427,205 441,160 427,205
Net debt 354,045 367,203 354,045 367,203
Long-term debt / EBITDA 821, 946 1.7x 821, 946 1.7x

* Includes a one-time profit of 159 million euros from the acquisition of Gaso, and in 2023, additional revaluations were made for newly added objects. With the revaluation of new objects, the impact of revaluations in 2023 is -10 million euros.
** Includes -11 million euros from the revaluation results of real estate portfolio assets that were fully operational in 2022.
*** The calculation is based on the number of shares as of 31.12.2023, totaling to 21 045 000 shares, from which the number of treasury shares, totaling to 945 000 shares, has been deducted. 

*Revenue*

2023, the group's consolidated revenue increased by 30.9 million euros to 1,084.6 million euros (consolidated revenue for 2022 was 1,053.7 million euros). Revenue growth was driven by the increase in gas sales volumes and the expanded market share in the Baltic-Finnish region, reaching to 25%.

*EBITDA and segment reporting*

The annual EBITDA of the Energy segment was 135,9 million euros in 2023 (106.3 million euros in 2022). The profitability is not connected to the volatility of energy prices but rather to the increase in market share and the doubling of sales volumes. The group's subsidiary, AS Eesti Gaas, actively manages market price risks by utilizing regional natural gas storage options and using relevant financial derivative instruments        

The annual EBITDA of the Shipping segment was 214.5 million euros in the 2023 (135.8 million euros in 2022). Infortar consolidates the results of AS Tallink Grupp using the equity method, in accordance with its percentage of ownership in AS Tallink Grupp. However, in segment reporting, the results of Tallink Grupp AS, include 100% of the EBITDA, as it is in accordance with applicable accounting rules.

In the Real Estate segment, the profitability is assessed based on the EBITDA of separate real estate companies’ results. In 2023, the total annual EBITDA of real estate was 12.3 million euros (in 2022, the total annual EBITDA of real estate was 11.4 million euros). In 2023, three new buildings were added to the portfolio at the addresses Liivalaia 9, Tähesaju 9, and Tähesaju 11.

*Net profit*

The consolidated net profit for the year 2023 is 293.8 million euros (compared to 96.1 million euros in the year 2022). One-time significant transactions impacting the net profit include the acquisition of the Latvian gas distribution company Gaso and the effects of property revaluation. Non-recurring items affecting previous year net profit include the extraordinary profit booked from acquisition of the Latvian gas distribution company Gaso and the revaluation of the real estate portfolio. Infortar’s net profit from recurring operations (excluding non-recurring items, which affect comparability) is 144,8 million euros.

The consolidated operating profit for 2023 was 123.6 million euros (compared to 99.1 million euros in 2022).

*Investments*

In the past three years (2021-2023), Infortar Group has invested approximately 265 million euros, with the largest investment being the acquisition of Gaso in 2023.

Infortar will continue its investments in the future. Investments already planned for the years 2024 and 2025 totaling approximately 110 million euros. The major ongoing development projects include the establishment of a logistics center in Saue and the construction of a 4MW solar power plant in Latvia.

*Financing*

The total loan and leasing obligations in 2023 amounted to 441.2 million euros (compared to 427.2 million euros in 2022). Financing activities cash flow also includes the proceeds from the initial public offering, which amounted to 31.2 million euros.

*Dividends*

According to the dividend policy confirmed on October 31, 2023, the objective is to pay dividends of at least 1 euro per share per fiscal year. Dividend payments are made semi-annually. Infortar Group’s management proposes to pay a dividend of 3 euros per share for the 2023 fiscal year results. According to the proposal, the first payout is planned to be made no later than June, and the second payout in December 2024. The dividend consists of three parts:

· 1 euro per share, as per the dividend policy.
· Carried-over dividend from AS Tallink Grupp, which is rounded upwards.
· Additional dividend based on the high deliveries of the financial results in 2023.
AS Infortar has a total of 21,166,239 shares, of which 945,000 are company´s own shares. Dividends are therefore paid for 20,221,239 shares, which amounts to approximately 61 million euros.

*Consolidated statement of profit or loss and other comprehensive income*

*Unaudited, **€ thousand*

*Q4 2023*

*Q4 2022*

*12-month 2023 *

*12-months*
*2023 *

 
Revenue 337 734 442 596 1 084 626 1 053 712  
Cost of sales -295 499 -428 184 -935 153 -927 175  
*Gross profit/ loss* *42 235* *14 412* *149 473* *126 537*  
Marketing expenses -511 -413 -1 620 -1 408  
Administrative expenses -9 522 -6 838 -22 085 -17 520  
Other operating income 1 458 483 2 523 2 275  
Other operating expenses -4 693 -10 590 -4 663 -10 744  
*Operating profit/ loss* *28 967* *-2 946* *123 628* *99 140*  
Financial income 519 2 206 2 761 2 632  
Financial expenses -8 640 -4 017 136 412 -8 227  
Profit (loss) from investments in the equity method 1 938 7 302 39 639 8 157  
Profit (loss) before tax 22 784 2 545 302 440 101 702  
Income tax expense 1 422 -4 219 -8 610 -5 578  
*Net profit of the financial year* *24 206* *-1 674* *293 830* *96 124*  
Equity holders of the Parent 24 232 -1 853 293 778 95 943  
Minority interests -26 179 52 181  
*Other comprehensive income*          
Cash flow hedges - the effective portion of a change in fair value *     -58 233 94 772  
Exchange rate differences from the translation of foreign subsidiaries     -42 3  
*Total comprehensive income / loss for the financial year*     *235 555* *190 899*  
Attributable to:     * * * *  
Equity holders of the Parent     235 503 190 718  
Minority interests

    52 181  
Ordinary earnings per share (in euros)

    14,62 15,23  
Diluted earnings per share (in euros)     14,56 15,22  

* The revaluations of non-monetary derivative instruments in consolidated profits do not affect the profitability or cash flow generation ability of AS Eesti Gaas or Infortar's main business activities.

*Consolidated statement of financial position*

*Unaudited, **€ thousand* *31.12.2023* *31.12.2022*
ASSETS    
Cash and cash equivalents 87 115 60 002
Trade and other receivables 197 261 193 115
Prepayments 26 339 125 571
Prepayments for inventories 146 883 76 752
*Total current assets* *457 598* *455 440*    
Investments to associates 346 014 296 061
Derivative and other financial assets 1 125 12 866
Long-term loans 9 065 15 716
Long-term requirements 8 20
Investment property 176 024 160 540
Property, plant and equipment 446 748 147 724
Intangible assets 14 366 8 853
Right-of-use assets 11 300 10 192
*Total non-current assets* *1 004 650* *651 972*
*TOTAL ASSETS* *1 462 248* *1 107 412*    
LIABILITIES AND EQUITY    
Interest-bearing loans and borrowings 185 868 266 308
Payables to suppliers 74 751 19 845
Tax obligations 32 822 31 135
Buyers' advances 3 099 10 169
Other current liabilities 15 973 6 766
*Total current liabilities* *312 513* *334 223*
* * * * * *
Interest-bearing loans and borrowings 255 292 160 897
Other long-term liabilities 30 865 18 076
Long-term provisions 8 399 649
Deferred taxes 33 233 24 890
*Total non-current liabilities* *327 789* *204 512*
*Total liabilities* *640 302* *538 735*    
Share capital 2 105 1 985
Own shares -95 -95
Share premium 31 080
Reserve capital 28 143 84 162
risk hedging reserve* 24 074 82 307
Unrealized currency translation differences -39 3
Retained earnings 466 140 385 947
Net profit of the financial year 293 778 95 943
Total equity attributable to equity holders of the Parent 821 112 567 945
Minority interests 834 732
*Total equity* *821 946* *568 677*
*TOTAL LIABILITIES AND EQUITY* *1 462 248* *1 107 412*

*This represents a change in the accounting for risk management positions, which affects the consolidated profit result.

*Consolidated statement of cash flows*

*Unaudited, € thousand*

*12-month 2023 *

*12-month 2022 *

 
*Cash flows from operating activities*      
Net profit of the financial year 302 440 101 702  
Adjustments: -104 374 -39 818        
Income tax paid -267 -4 051  
Changes in assets related to op.activities 52 804 -116 072  
Changes in inventories -61 915 3 667  
Changes in liabilities related to op.activities -591 55 611  
*Net cash from operating activities* *188 097* *1 039*  
* *      
*Cash flows from investing activities*      
Acquisition / reduction of capital of associates -113 727 -4 895  
Given loans -6 438  
Paybacks from given loans, and interest gain 9 342 992  
Purchases of property, plant and equipment -18 144 -14 250  
Purchases Investment property -18 556 -23 881  
*Net cash used in investing activities* *-141 085* *-48 472*        
*Cash flows from financing activities*      
Received government grants 3 251  
Changes in overdraft 14 349 -9 456  
Proceeds from borrowings 130 567 193 397  
Repayments of borrowings -155 808 -98 833  
Repayment of finance lease liabilities -2 233 -2 037  
Interest paid -22 224 -7 960  
Dividends paid -15 750 -16 110  
Proceeds from share emission 31 200  
*Net cash used in financing activities* *-19 899* *62 252*        
*TOTAL NET CASH FLOW* *27 113* *14 819*        
Cash at the beginning of the year 60 002 45 183  
Cash at the end of the period 87 115 60 002  
Net (decrease)/increase in cash 27 113 14 819        

Infortar operates in five countries, the company's main fields of activity are energy, maritime transport, and real estate. Infortar owns a 42,3% stake in AS Tallink Grupp, a 100% stake in AS Eesti Gaas and a versatile and modern real estate portfolio of approx. 110,000 m2. In addition to the three main areas of activity, Infortar also operates in construction and mineral resources, printing, taxi business and other areas. A total of 103 companies belong to the Infortar group: 47 subsidiaries, 5 affiliated companies and 50 subsidiaries of affiliated companies. Excluding affiliates, Infortar employs 1,308 people.

Additional information:
Kadri Laanvee
Investor Relations Manager
Phone: + 372 5156662
e-mail: kadri.laanvee@infortar.ee
www.infortar.ee/en/investor


*Attachments*

· Infortar_aruanne 31.12.2023_ENG
· Infortar - Q4 and 12 months 2023 results_ENG