Market announcement

Title

Results of operations for the 1st half-year 2009 (EEK)

Message

MANAGEMENT REPORT                                                               
RESULTS OF OPERATIONS - FOR THE 1st HALF-YEAR 2009                              


Overview                                                                        

During the first six months of 2009 the Company's total sales increased, year on
year, by 3.6% to 381.7 mln EEK. The Company's profit before taxes was 172.9 mln 
EEK, which is a 4.0% decrease compared to the same six months of 2008. The fall 
in profit was due to the payment of a one off financial cost that was necessary 
to secure the financing for the comprehensive network extension program during  
2008 to 2010. The costs of the program will be compensated to the Company over  
10 years. In 2009 the Company invested 85.5 mln EEK, of which 62.2 mln EEK was  
invested in network extension and rehabilitation.                               


--------------------------------------------------------------------------------
| mln EEK             |  2 Q  |  2 Q  | Change | 6 months | 6 months | Change  |
|                     | 2009  | 2008  |        |   2009   |   2008   |         |
--------------------------------------------------------------------------------
| Sales               | 189,0 | 182,3 |   3,6% |    381,7 |    363,2 |    5,1% |
--------------------------------------------------------------------------------
| Gross profit        | 121,0 | 114,1 |   6,0% |    247,0 |    228,9 |    7,9% |
--------------------------------------------------------------------------------
| Gross profit margin%|  64,0 |  62,6 |   2,3% |     64,7 |     63,0 |    2,7% |
--------------------------------------------------------------------------------
| Operating profit    | 107,0 | 101,7 |   5,2% |    217,9 |    201,9 |    7,9% |
--------------------------------------------------------------------------------
| Operating profit    |  56,6 |  55,8 |   1,6% |     57,1 |     55,6 |    2,7% |
| margin %            |       |       |        |          |          |         |
--------------------------------------------------------------------------------
| Profit before taxes |  74,5 |  90,6 | -17,7% |    172,9 |    180,1 |   -4,0% |
--------------------------------------------------------------------------------
| Net profit          |  13,4 |  24,4 | -45,2% |    111,8 |    113,9 |   -1,9% |
--------------------------------------------------------------------------------
| Net profit margin % |   7,1 |  13,4 | -47,1% |     29,3 |     31,4 |   -6,6% |
--------------------------------------------------------------------------------
| ROA %               |   0,5 |   1,0 | -45,7% |      4,5 |      4,6 |   -2,7% |
--------------------------------------------------------------------------------
| Debt to total       |  53,6 |  55,7 |  -3,9% |     53,6 |     55,7 |   -3,9% |
| capital employed    |       |       |        |          |          |         |
--------------------------------------------------------------------------------

Gross profit margin - Gross profit / Net sales                                  
Operating profit margin - Operating profit / Net sales                          
Net Profit margin - Net Profit / Net sales                                      
ROA - Net profit /Total Assets                                                  
Debt to Total capital employed - Total Liabilities / Total capital employed     


Profit and Loss Statement                                                       

2nd quarter 2009                                                                

Sales                                                                           

In the 2nd quarter of 2009 the Company's total sales increased, year on year, by
3.6% to 189.0 mln EEK. Sales in the main operating activity principally comprise
of sales of water and treatment of wastewater to domestic and commercial        
customers within and outside of the service area, and fees received from the    
City of Tallinn for operating and maintaining the storm water system.           

Sales of water and wastewater services were 174.0 mln EEK, a 4.5% increase      
compared to the 2nd quarter of 2008, resulting from the 12.8% increase in       
tariffs from 1 January 2009 for the Company's residential and commercial        
customers combined with the factors described below.                            

Included within this amount were the following changes by sectors. Within the   
service area, sales to residential customers increased by 8.7% to 94.8 mln EEK. 
Sales to commercial customers decreased by 1.3% to 68.9 mln EEK. Sales to       
customers outside of the service area - primarily bulk volumes of wastewater    
treatment services provided to the surrounding municipalities - increased by    
10.7% to 6.6 mln EEK. Over pollution fees received were 3.8 mln EEK, a 5.2%     
increase compared to the 2nd quarter of 2008.                                   

In the 2nd quarter of 2009, the volumes sold to residential customers dropped   
3.6%. We believe that this is due to the combination of the economic recession  
and the fact that people have continued to move to the surrounding areas of     
Tallinn.                                                                        

The volumes sold to commercial customers inside the service area decreased by   
12.5% compared to the relevant period in 2008. The majority of the reduction in 
sales volumes in Tallinn is a result of the macroeconomic impact of companies   
reducing their production volumes and implementing efficiency measures,         
supplemented by companies moving to surrounding municipalities.                 

The sales from the operation and maintenance of the storm water and fire-hydrant
system decreased by 10.0% to 11.2 mln EEK in the 2nd quarter of 2009 compared to
the same period in 2008 as result of low storm water volumes compared to 2008.  
This is in accordance with the terms and conditions of the contract whereby the 
storm water and fire hydrant costs are invoiced based on actual costs and       
volumes treated.                                                                


Cost of Goods Sold and Gross Margin                                             

The cost of goods sold for the main operating activity was 68.0 mln EEK in the  
2nd quarter of 2009, a decrease of 0.2 mln EEK or 0.3% from the equivalent      
period in 2008.                                                                 

In the 2nd quarter of 2009 the Company did not achieve the beneficial 0.5       
coefficient for pollution tax, and the amount of pollution tax payable was 5.7  
mln EEK compared to 5.1 mln EEK in 2nd quarter of 2008.  This increase in       
pollution tax was mainly due to the increase in tax rates year on year by 20%,  
partly offset by the reduction in treatment volumes. As the pollution level of  
the incoming sewerage has continued to increase the Company is actively         
analysing a range of alternatives to improve the waste water treatment processes
and to use the optimum level of chemicals to achieve the 0.5 coefficient in the 
forthcoming quarters.                                                           

Chemical costs were 5.4 mln EEK, representing a 17.7% decrease compared to the  
corresponding period in 2008. This result is the combination of volumes treated,
chemicals dosed and the favorable price impact.                                 

Electricity costs increased by 1.5 mln EEK or 24.0% in the 2nd quarter of 2009  
compared to the 2nd quarter of 2008 due to higher electricity prices.           

Salary expenses decreased in the 2nd quarter of 2009, year on year, by 0.6 mln  
EEK or 3.5% due to some reduction in the performance related pay accrual.       

Depreciation charges increased in the 2nd quarter of 2009 by 0.1 mln EEK or 0.2%
year on year.                                                                   

Transport costs decreased by 0.8 mln EEK, or 16.6% year on year, due to the     
combination of the reduction in fuel prices and reduced rates for rental        
machines.                                                                       

Other cost of goods sold in the main operating activity stayed on the same level
year on year. As a result of the successful negotiation of long term contracts  
the applicable unit rates were reduced for a number of support services and     
maintenance contracts.                                                          

As a result of all of the above the Company's gross profit for the 2nd quarter  
of 2009 was 121.0 mln EEK, which is an increase of 6.9 mln EEK, or 6.0%,        
compared to the gross profit of 114.1 mln EEK for the 2nd quarter of 2008.      

Operating Costs and Operating Margin                                            

Marketing expenses decreased by 0.5 mln EEK to 2.6 mln EEK during the 2nd       
quarter of 2009 compared to the corresponding period in 2008. This is partly the
result of the cost savings, balanced by the minor increase in depreciation      
charges.                                                                        

Mainly as a consequence of lower services costs the General administration      
expenses decreased by 1.4 mln EEK to 12.8 mln EEK in the 2nd quarter of 2009    
year on year.                                                                   

Via successful negotiation of a range of outsourced service contracts new,      
beneficial rates have been achieved for the most of the cost items. The         
management's target is to achieve further efficiencies through a thorough review
of processes and work organization.                                             

Other net income/expenses                                                       

Income/expenses from constructions and government grants totaled a net income of
5.2 mln EEK, in the 2nd quarter of 2009 compared to a net income of 4.7 mln EEK 
in the 2nd quarter of 2008. The rest of the other income/expenses totaled an    
expense of 3.8 mln EEK in the 2nd quarter of 2009 compared to an income of 0.1  
mln EEK in the 2nd quarter of 2008, mainly due to slightly worsened debt        
collection. Still more than 99% of debt is collected in a timely manner.        

As a result of all of the above the Company's operating profit for the 2nd      
quarter of 2009 was 107.0 mln EEK, an increase of 5.3 mln EEK compared to an    
operating profit of 101.7 mln EEK achieved in the 2nd quarter of 2008. Compared 
to the operating profit in the 2nd quarter of 2008, the operating profit has    
increased 5.2%.                                                                 

Financial expenses                                                              

Net Financial expenses were 32.5 mln EEK in the 2nd quarter of 2009, which is an
increase of 21.4 mln EEK or 193.4% compared to the 2nd quarter of 2008. The     
Company's interest costs have decreased by 23.5% compared to the 2nd quarter of 
2008 as result of the reduction in Euribor rates. The financial costs were      
higher than in 2008 due to a one off payment of unwinding costs of 27 mln EEK,  
as explained below. The increase in expenses is partially offset by an increase 
in financial income earned during the 2nd quarter of 2009, as a result of a more
favourable cash position and higher deposit rates.                              

The Company finalised the loan negotiations and concluded a 313 mln EEK (equal  
to 20 mln EUR), 10-year maturity loan agreement with the Nordic Investment Bank 
on the 9th of April. The necessity for this additional loan resource was        
triggered by the comprehensive 3-year network expansion program, the costs of   
which will be compensated to the Company over a period of ten years. The new    
capex loan agreement triggered the full repayment of the EBRD loan in May 2009. 
The EBRD loan was hedged with a fixed interest rate, therefore we incurred      
unwinding costs of 27 mln EEK related to the early repayment of the loan and low
Euribor rates.                                                                  

All loan agreements are currently based on a floating interest rate. To mitigate
the interest rate risk the Company concluded fixed interest rate swap agreements
worth 45 mln EUR with forward start dates in the 2nd quarter of 2009. For a base
amount of 30 mln EUR the forward start date activates on 29 November 2009 and   
for the balance of 15 mln EUR the forward start date activates on 28 May 2010.  

The current total available loan facility is 95 mln EUR, from which we have     
drawn down 75 mln EUR. The current weighted average interest margin is 0.55%,   
for the total available facility the margin is 0.67%.                           
                                                                                

Profit Before Tax                                                               

The Company's profit before taxes for the 2nd quarter of 2009 was 74.5 mln EEK, 
which is 16.1 mln EEK lower than the profit before taxes of 90.6 mln EEK for the
2nd quarter of 2008.                                                            

The Company recorded 61.1 mln EEK income tax as the result of 230.0 mln EEK     
dividends distributed in the 2nd quarter of 2009.                               


Results for the 1st six months of 2009                                          

During the first six months of 2009 the Company's total sales increased, year on
year, by 5.1% to 381.7 mln EEK. Sales of water and wastewater treatment were    
351.0 mln EEK, a 4.8% increase compared to the six months of 2008.              

The Company's profit before taxes for the six months of 2009 was 172.9 mln EEK, 
which is 7.2 mln EEK lower than the profit before taxes of 180.1 mln EEK in the 
relevant period in 2008. Lower profit before taxes for the six months of 2009   
compared to 2008 is due to the one-off impact of the financial costs discussed  
above, worth 27 mln EEK.                                                        

The Company's net profit for the six months of 2009 was 111.8 mln EEK, which is 
2.1 mln EEK lower than the net profit of 113.9 mln EEK in the equivalent period 
in 2008.                                                                        


Balance sheet                                                                   

During the six months of 2009 the Company invested 85.5 mln EEK into fixed      
assets. Non-current assets were 2,175.7 mln EEK at 30 June 2009. Current assets 
decreased by 18.0 mln EEK to 329.4 mln EEK in the first six months of the year, 
customer receivables increased by 5.3 mln EEK. During the six months of 2009    
cash at bank decreased by 22.5 mln EEK.                                         

Current liabilities decreased by 25.1 mln EEK to 167.3 mln EEK in the first six 
months of the year. This was mainly due to decreases in the Current portion of  
long-term borrowings by 78.9 mln EEK, as a result of the repayment of the loan, 
an increase in Trade payables by 40.4 mln EEK, and an increase in Customer      
prepayments by 1.2 mln EEK.                                                     

The Company continues to maintain its leverage level within its target range of 
50% with total liabilities to total capital employed of 53.6% as of 30 June     
2009. Long-term liabilities stood at 1,174.8 mln EEK at the end of June 2009,   
consisting almost entirely of the outstanding balance of three long-term bank   
loans.                                                                          

Cash flow                                                                       

During the six months of 2009, the Company generated 194.6 mln EEK of cash flows
from operating activities, a decrease of 39.6 mln EEK compared to the           
corresponding period in 2008. The reduction in operating cash flows was         
explained by the payment of the discussed one off financial costs, in addition  
the first quarter of 2008 was positively impacted by proceeds of some big       
services invoices issued at end of 2007. Underlying operating profit still      
continues to be the main driver for growth.                                     

In the first six months of 2009 net cash inflows from investing activities were 
13.3 mln EEK, which is 15.1 mln EEK less than in 2008. This was mainly due to   
the change in constructions compensation mechanism that resulted from the 30    
November 2007 agreement signed with the local municipality. In the 1st quarter  
of 2008 the Company received compensation for 2007 constructions.  In 2009 the  
Company invested 85.5 mln EEK - 62.2 mln EEK on networks (including 43.9 mln EEK
on extension and developments), 7.8 mln EEK at Paljassaare wastewater treatment 
plant and sludge treatment, 3.0 mln EEK on water quality (Ülemiste water        
treatment plant and raw water) and 12.5 mln EEK for other investments (IT,      
capital maintenance, meters, etc).                                              

The cash outflows from financing activities were 230.3 mln EEK during the first 
six months of 2009 compared to a cash outflow of 249.0 mln EEK during the same  
six months of 2008, representing the payouts of the dividend. The Company repaid
and fully refinanced the loan of EBRD due to the need to finance the extensive  
network extension program and related investment outflows until 2011, as        
explained above.                                                                

As a result of all of the above factors, the total cash outflow in the six      
months of 2009 was 22.5 mln EEK compared to a cash inflow of 13.5 mln EEK in the
six months of 2008. Cash and cash equivalents stood at 207.4 mln EEK as at 30   
June 2009.                                                                      

Employees                                                                       

At the end of the 2nd quarter of 2009, the total number of employees was 332    
compared to 314 at the end of the 2nd quarter of 2008. The full time equivalent 
(FTE) was respectively 315 in 2009 compared to the 303 in 2008. The increase in 
FTE is due to the design, project management and supervision needs of the       
network extension program and partly supplemented by the need for the employees 
to provide the extra services under the trademark “Veemees” launched in 2008.   

Dividends and share performance                                                 

Based on the results of the 2008 financial year, the Company paid 230,010,000   
EEK of dividends. Of this 10,000 EEK was paid to the owner of the B-share       
and 230,000,000 EEK, i.e. 11.50 EEK per share to the owners of the A-shares. The
dividends were paid out on 12 June 2009, based on the list of shareholders,     
which was fixed on 01 June 2009.                                                

AS Tallinna Vesi is listed on OMX Main Baltic Market with trading code TVEAT and
ISIN EE3100026436.                                                              

As of 30 June 2009 AS Tallinna Vesi shareholders, with a direct holding over 5%,
were:                                                                           

--------------------------------------------------------------------------------
| United Utilities (Tallinn) BV                         | 35.3%                |
--------------------------------------------------------------------------------
| City of Tallinn	                                | 34.7%                |
--------------------------------------------------------------------------------
| Credit Suisse Securities (Europe) Ltd Prime Brokerage | 5.76%                |
| A/C Prime Brokerage Clients                           |                      |
--------------------------------------------------------------------------------
| HSBC Bank Plc Re Parvus European Absolute             | 5.46%                |
| Opportunities Master Fund                             |                      |
--------------------------------------------------------------------------------

Parvus AM has declared that their shareholding in the clients' accounts exceeds 
10% and AKO Capital has declared their indirect ownership above 5% of the share 
capital.                                                                        

At the end of the quarter, 30 June 2009, the closing price of the AS Tallinna   
Vesi share was 131.43 EEK (8.40 EUR), which is a 6.7% decrease compared to the  
closing price of 140.82 EEK (9.00 EUR) at the beginning of quarter. During the  
same period the OMX Tallinn index rose by 11.6% during the quarter.             


Operational highlights in the six months of 2009                                


The Company secured the long term loan facility in the 2nd quarter of 2009. The 
comprehensive negotiations with commercial banks and investment banks started a 
year ago and were finalised with the securities transfer agreements at the end  
of May 2009. We have increased the available loan facility from 1,173 mln EEK   
(equal to 75 mln EUR) to 1,486 mln EEK (equal to 95 mln EUR). The necessity for 
this additional loan resource was triggered by the extensive 3-year network     
expansion program, the costs of which will be compensated to the Company over a 
period of ten years.                                                            

By the end of the 2nd quarter the Company signed all needed appendixes to       
implement the 30-years Maardu's operating agreement from 1st July 2009, to      
provide water, wastewater and operations and maintenance. This will provide the 
citizens of Maardu with an access to Tallinna Vesi's EU compliant water and     
wastewater. This contract is the first of its kind and demonstrates the         
willingness of other cities and municipalities to partner with Tallinna Vesi for
the benefit of their communities.                                               

In June the IR Magazine UK and Continental Europe Awards named the Company the  
best listed company in the field of investor relations among the companies      
listed on the Tallinn Stock Exchange.                                           

The Company has shared the 1st and 2nd place within the Corporate Social        
Responsibility ranking of 49 Estonian companies achieving a magnificent 93%     
score. This is a great accolade for the high quality service offered, the       
knowledge sharing and experience of employees and excellent results in          
environmental and work environment performance.                                 

Due to fall in sales volumes it has been a challenging half-year for the        
Company. We are still pleased to report that the cost efficiency programs we    
have initiated and successful contract negotiations have enabled us to          
compensate the fall in revenues.                                                


Additional information:                                                         
Siiri Lahe                                                                      
Chief Financial Officer                                                         
+372 6262 262                                                                   
siiri.lahe@tvesi.ee


                                                             
--------------------------------------------------------------------------------
| STATEMENT OF COMPREHENSIVE INCOME         | 6 months | 6 months  | 12 months |
--------------------------------------------------------------------------------
| (thousand EEK)                            |   2009   |   2008    |   2008    |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| Revenue                                   |  381 717 |   363 231 |   719 923 |
--------------------------------------------------------------------------------
| Costs of goods sold                       | -134 686 |  -134 376 |  -272 752 |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| GROSS PROFIT                              |  247 031 |   228 855 |   447 171 |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| Marketing expenses                        |   -6 010 |    -6 434 |   -12 310 |
--------------------------------------------------------------------------------
| General administration expenses           |  -26 898 |   -28 721 |   -54 546 |
--------------------------------------------------------------------------------
| Other income/ expenses (-)                |    3 746 |     8 215 |    25 045 |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| OPERATING PROFIT                          |  217 869 |   201 915 |   405 360 |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| Financial income                          |   11 917 |     9 201 |    15 606 |
--------------------------------------------------------------------------------
| Financial expenses                        |  -56 863 |   -31 011 |   -58 805 |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| PROFIT BEFORE TAXES                       |  172 923 |   180 105 |   362 161 |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| Income tax on dividends                   |  -61 142 |   -66 193 |   -66 193 |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| NET PROFIT FOR THE PERIOD                 |  111 781 |   113 912 |   295 968 |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| Attributable to:                          |          |           |           |
--------------------------------------------------------------------------------
| Equity holders of A-shares                |  111 771 |   113 902 |   295 958 |
--------------------------------------------------------------------------------
| B-share holder                            |       10 |        10 |        10 |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| Earnings per A share (in kroons)          |     5,59 |      5,70 |     14,80 |
--------------------------------------------------------------------------------
| Earnings per B share (in kroons)          |   10 000 |    10 000 |    10 000 |
--------------------------------------------------------------------------------



--------------------------------------------------------------------------------
| STATEMENT OF FINANCIAL POSITION           |          |           |           |
--------------------------------------------------------------------------------
| (thousand EEK)                            |30.06.2009| 30.06.2008| 31.12.2008|
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| ASSETS                                    |          |           |           |
--------------------------------------------------------------------------------
| CURRENT ASSETS                            |          |           |           |
--------------------------------------------------------------------------------
| Cash and equivalents                      |  207 364 |   191 892 |   229 860 |
--------------------------------------------------------------------------------
| Customer receivables, accrued income and  |  117 894 |   122 021 |   112 638 |
| prepaid expenses                          |          |           |           |
--------------------------------------------------------------------------------
| Inventories                               |    3 111 |     4 107 |     3 760 |
--------------------------------------------------------------------------------
| Non-current assets held for sale          |    1 057 |     1 109 |     1 140 |
--------------------------------------------------------------------------------
| TOTAL CURRENT ASSETS                      |  329 426 |   319 129 |   347 398 |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS                        |          |           |           |
--------------------------------------------------------------------------------
| Property, plant and equipment             |    2 130 | 2 118 935 | 2 168 225 |
|                                           |      584 |           |           |
--------------------------------------------------------------------------------
| Intangible assets                         |   45 131 |    44 813 |    43 428 |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT ASSETS                  |2 175 715 | 2 163 748 | 2 211 653 |
--------------------------------------------------------------------------------
| TOTAL ASSETS                              |2 505 141 | 2 482 877 | 2 559 051 |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| LIABILITIES                               |          |           |           |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| CURRENT LIABILITIES                       |          |           |           |
--------------------------------------------------------------------------------
| Current portion of long-term borrowings   |    3 937 |    82 942 |    82 843 |
--------------------------------------------------------------------------------
| Trade and other payables                  |  127 627 |   165 778 |    87 270 |
--------------------------------------------------------------------------------
| Short-term provisions                     |    3 693 |     2 486 |     2 486 |
--------------------------------------------------------------------------------
| Prepayments and deferred income           |   32 045 |    47 854 |    19 797 |
--------------------------------------------------------------------------------
| TOTAL CURRENT LIABILITIES                 |  167 302 |   299 060 |   192 396 |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES                   |          |           |           |
--------------------------------------------------------------------------------
| Borrowings                                |1 174 055 | 1 084 474 | 1 084 642 |
--------------------------------------------------------------------------------
| Other payables                            |      735 |       121 |       735 |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT LIABILITIES             |1 174 790 | 1 084 595 | 1 085 377 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES                         |1 342 092 | 1 383 655 | 1 277 773 |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| EQUITY CAPITAL                            |          |           |           |
--------------------------------------------------------------------------------
| Share capital                             |  200 001 |   200 001 |   200 001 |
--------------------------------------------------------------------------------
| Share premium                             |  387 000 |   387 000 |   387 000 |
--------------------------------------------------------------------------------
| Statutory legal reserve                   |   20 000 |    20 000 |    20 000 |
--------------------------------------------------------------------------------
| Retained earnings                         |  556 048 |   492 221 |   674 277 |
--------------------------------------------------------------------------------
| TOTAL EQUITY CAPITAL                      |1 163 049 | 1 099 222 | 1 281 278 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES AND EQUITY CAPITAL      |2 505 141 | 2 482 877 | 2 559 051 |
--------------------------------------------------------------------------------



--------------------------------------------------------------------------------
| CASH FLOW STATEMENT                       | 6 months | 6 months  | 12 months |
--------------------------------------------------------------------------------
| (thousand EEK)                            |   2009   |   2008    |   2008    |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| CASH FLOWS FROM OPERATING ACTIVITIES      |          |           |           |
--------------------------------------------------------------------------------
| Operating profit                          |  217 869 |   201 915 |   405 360 |
--------------------------------------------------------------------------------
| Adjustment for depreciation/amortisation  |   44 833 |    44 394 |    89 669 |
--------------------------------------------------------------------------------
| Adjustment for profit from government     |   -8 680 |    -8 188 |   -27 920 |
| grants and connection fees                |          |           |           |
--------------------------------------------------------------------------------
| Other finance expenses                    |  -33 616 |      -803 |    -1 614 |
--------------------------------------------------------------------------------
| Profit from sale of property, plant and   |     -132 |        -6 |      -455 |
| equipment, and intangible assets          |          |           |           |
--------------------------------------------------------------------------------
| Expensed property, plant and equipment    |        0 |         0 |       -19 |
--------------------------------------------------------------------------------
| Change in current assets involved in      |   -5 983 |    18 556 |    22 780 |
| operating activities                      |          |           |           |
--------------------------------------------------------------------------------
| Change in liabilities involved in         |    6 999 |     6 556 |       906 |
| operating activities                      |          |           |           |
--------------------------------------------------------------------------------
| Interest paid                             |  -26 698 |   -28 275 |   -57 569 |
--------------------------------------------------------------------------------
| Total cash flow from operating activities |  194 592 |   234 149 |   431 138 |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| CASH FLOWS FROM INVESTING ACTIVITIES      |          |           |           |
--------------------------------------------------------------------------------
| Acquisition of property, plant and        |  -94 937 |  -118 539 |  -332 407 |
| equipment, and intangible assets          |          |           |           |
--------------------------------------------------------------------------------
| Compensations received for construction   |   98 426 |   137 039 |   250 190 |
| of pipelines                              |          |           |           |
--------------------------------------------------------------------------------
| Proceeds from sale of property, plant and |      121 |         8 |       480 |
| equipment, and intangible assets          |          |           |           |
--------------------------------------------------------------------------------
| Interest received                         |    9 648 |     9 825 |    16 906 |
--------------------------------------------------------------------------------
| Total cash flow from investing activities |   13 258 |    28 333 |   -64 831 |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| CASH FLOWS FROM FINANCING ACTIVITIES      |          |           |           |
--------------------------------------------------------------------------------
| Received short-term loans                 |  156 466 |         0 |         0 |
--------------------------------------------------------------------------------
| Repayment of short-term loans             | -156 466 |         0 |         0 |
--------------------------------------------------------------------------------
| Received long-term loans                  |  544 501 |         0 |    42 246 |
--------------------------------------------------------------------------------
| Repayment of long-term loans              | -544 837 |         0 |   -41 910 |
--------------------------------------------------------------------------------
| Dividends paid                            | -230 010 |  -249 010 |  -249 010 |
--------------------------------------------------------------------------------
| Income tax on dividends                   |        0 |         0 |   -66 193 |
--------------------------------------------------------------------------------
| Total cash flow from financing activities | -230 346 |  -249 010 |  -314 867 |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| Change in cash and bank accounts          |  -22 496 |    13 472 |    51 440 |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| CASH AND EQUIVALENTS AT THE BEGINNING OF  |  229 860 |   178 420 |   178 420 |
| THE PERIOD                                |          |           |           |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| CASH AND EQUIVALENTS AT THE END OF THE    |  207 364 |   191 892 |   229 860 |
| PERIOD                                    |          |           |           |
--------------------------------------------------------------------------------