LHV Institutional Baltic Insight, May 11th, 2020

Please find attached today's edition of the Baltic Insight.
* Despite the coronavirus situation and lockdown measures imposed in Estonia, Coop Pank (‘CPA’ or the ‘Group’) continued to expand its operating volumes and the number of customers in April 2020, with revenue and operating profit numbers sharply higher compared to the same month last year. However, rapidly deteriorating economic conditions in Estonia led to rising loan impairments, dragging down the bottom line. Furthermore, there is a lot of uncertainty ahead, as the coronavirus induced economic setback may restrain CPA’s growth prospects and profitability going forward. So far, CPA has managed to capitalise on the growing awareness of the COOP brand, the Group’s close cooperation with Coop Estonia’s retail network of 340 stores across the country and new product offerings. Following the IPO in November 2019, CPA decided to publish its key operating figures every month. Please also refer to the tables in the attachment.
* Klaipedos Nafta (‘KNF’ or the ‘Company’) managed to generate decent revenues from its oil terminals last month, while also continuing steady performance at its LNG terminals. In total, KNF generated revenues of EUR 6.7m in April 2020, 18.3% less than a year ago. Similar to earlier months of this year, the drop in total sales was caused by sharply lower revenues from the regulated LNG activities, based on the Floating Storage and Regasification Unit (FSRU) vessel, primarily related to the changed financing structure of the FSRU effective from this year. Please also refer to the tables in the attachment.
* Tallink Group (‘TAL’ or the ‘Group’) is among the companies severely impacted by the coronavirus situation. TAL’s near to medium term outlook remains uncertain, mostly due to the unknown period of the health crisis and travel restrictions, which also affects the period of recovery after the restrictions are lifted. On 8th May, the Estonian government finally approved the terms of a working capital loan to TAL. According to the announcement, the total amount of the loan limit is EUR 100m, and the loan can be issued in several EUR 10-40m tranches. The interest rate of this three-year maturity loan is 12-month Euribor + 2%. Please also refer to the tables in the attachment.