Market announcement

Title

AS Tallinna Vesi’s operational performance in the 1st quarter of 2018

Message

The 1(st) quarter of 2018 saw improvements in several operational indicators, of
AS Tallinna Vesi, compared to previous years. Consistently high standards were
achieved regarding the parameters reflecting the quality of both drinking water
and treated effluent, as well as customer service.

Reliable water service

The  quality of drinking water remained excellent in the 1(st) quarter of 2018.
Water  samples  taken  from  customers'  taps  were  99.87% compliant  with  all
requirements.  The professionalism of specialists managing the treatment process
at  Ülemiste Water Treatment Plant, as well  as renewal and maintenance of water
network,  are instrumental in  ensuring high quality  water to our customers. We
are  delighted to see a  reduction in the number  of customer contacts regarding
water quality year on year.

We  work tirelessly  to provide  our customers  and end  users with a stable and
uninterrupted   service.  Our  proactive  approach  in  preventing  disruptions,
directly  reduces the need  for customers to  contact the company, and therefore
reduces  the overall  number of  contacts. We  are also  pleased to see that the
average water disruption time to individual properties, has further reduced from
3 hour 1 minute to 2 hours 52 minutes.

We  continue  to  make  targeted  capital  investments, renovating and replacing
assets  based on previous condition surveys  and performance data, to ensure the
continued  reliability of the  infrastructure. In the  1(st) quarter of 2018, we
reconstructed  the  water  pipes  and  sewers  on  Gonsiori and Tondi streets in
collaboration  with  the  City  of  Tallinn.  The  Company  also  completed  the
reconstruction  of a sewer on  Tartu Road, close to  the Airport, as part of our
pro-active network replacement programme.

Low level of leakages

Water  losses  showed  a  slight  increase  in  the first three months of 2018,
compared  to  the  previous  year,  15.19% v  13.73%. This is still an excellent
result, with the slight decline in performance resulting from the longer winter,
which  made leakage detection difficult under the continuous blanket of snow. In
addition,  we have purchased new equipment  to facilitate a quicker detection of
leakages and we endeavour to keep up with the latest technologies.

We care for the environment

The  issues with  the sewerage  network have  reduced, and  the number  of sewer
blockages  dropped  to  156 during  the  first  three  months.  However,  we are
concerned  about the growing trend in the  volume of domestic waste ending up in
the sewerage network, which has reached record amounts in recent years. As waste
in  sewers  can  cause  serious  and  unpleasant  blockages,  or  even  lead  to
environmental  pollution, AS  Tallinna Vesi  continues to  make efforts to raise
public awareness, as to what can be put into the sewer.

In  the 1(st) quarter  of 2018, the  treated effluent  at Paljassaare Wastewater
Treatment Plant was compliant with all stipulated quality requirements. With the
purpose  to assess  the treatment  efficiency and  the quality of wastewater, we
monitor  pollutants  in  both  the  incoming  wastewater  and  treated effluent.
Wastewater  laboratory analyses the  samples taken from  different stages of the
wastewater  treatment process, and the information received thereby allows us to
further improve the treatment efficiency and effluent quality.

High service standards

Besides  outstanding  operational  performance,  the  Company  has  set itself a
strategic  objective to provide first-class customer  service. We have set clear
and  challenging targets, and  give promises to  our customers, in  terms of the
speed  of  our  response  and  problem-solving.  Should  we  fail  to keep those
promises, we proactively pay compensation to the customer. In the 1(st) quarter,
we had only three cases, when we failed to keep our promise.

We  strive to  make ongoing  improvements with  respect to  customer service. In
order to make ourselves available 24/7 in every channel, we recently updated the
Company's external website. In the future, we plan to make our self-service more
convenient,  and will soon start using text messages for communicating important
information.

 Indicator                                     Unit 2018 3 months 2017 3 months
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 Drinking water
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 Compliance of water quality at customers'
 taps                                           %          99.87%       100.00%

 Losses in the water distribution network       %          15.19%        13.73%

 Average duration of interruption to water
 supply per property                            h            2.86          3.02

 Wastewater
-------------------------------------------------------------------------------
 Sewer blockages                                No            156           195

 Sewer collapses                                No             25            39

 Wastewater treatment compliance with
 environmental standards                        %          100.0%        100.0%

 Customer Service
-------------------------------------------------------------------------------
 Written complaints                             No             21             9

 Customer contacts regarding water quality      No             14            24

 Customer contacts regarding water pressure     No             37            38

 Customer contacts regarding sewer blockages
 and storm water runoff                         No            250           269

 Responding to written customer contacts
 within at least 2 working days                 %         100.00%        99.93%

 Failed promises                                No              3             3

 Notification of unplanned interruptions to
 water supply at least 1 hour in advance        %           96.7%       100.00%