Börsiteade

Pealkiri

Tallinna Vesi increased its sales and profit in the second quarter

Teade

AS  Tallinna Vesi's  sales increased  to EUR15.41  million and operating profit to
EUR4.13  million in the second quarter.  According to the Company's interim report
for  the  second  quarter  of  2023, the  increase  in sales resulted from price
increase to cover higher production costs.

In  the second quarter, sales  from water services provided  to both private and
commercial  customers increased.  Sales revenue  from water  services sold to AS
Tallinna  Vesi's commercial customers  was EUR4.42 million  in the second quarter,
which  is 4.1% more than  last year. Sales  from water services  sold to private
customers  increased 23.2%t compared  to the  same period  last year and totaled
EUR6.15 million.

The  Company's  operating  profit  was  EUR4.13  million  in  the  second quarter.
Operating  profit grew by EUR1.05  million compared to the  second quarter of last
year. The operating profit for the six months of 2023 was EUR8.20 million, showing
an increase of EUR2.11 million from the previous year.

The  Company's net profit was EUR2.31 million in the second quarter of 2023, which
is EUR1.36 million more than in the same period last year.

According  to Aleksandr Timofejev, Chief Executive Officer of Tallinna Vesi, the
increase in net profit is related to the change of price for water services that
was  applied from the fourth  quarter of last year.  "The recovery in net profit
was  driven by the  increase in production  costs being reflected  in sales," he
explained.

The  quality indicators remaining  stable at high  levels indicate that Tallinna
Vesi  provides  reliable  water  and  wastewater  services - water samples taken
during  the six months of  2023 confirmed that tap water  meets 100% of the high
quality  standards established for drinking  water. "High quality drinking water
is  a valuable resource that  cannot be taken for  granted. Behind the excellent
water  quality, there  are many  people, a  lot of  strategic work and science,"
Timofejev said.

Clean  tap  water  has  been  ensured  by  an efficient water treatment process,
regular  monitoring  and  ongoing  preventative  maintenance  work  on the water
network.  "At the beginning of 2023, we introduced the ice pigging technique for
the  maintenance of water pipes, and in six months we have washed 73 km of water
network  with ice," Timofejev pointed out. Ice pigging is a unique pipe cleaning
technology in which an ice slurry made of water and table salt is pumped through
the pipeline.

Early in July this year, Tallinna Vesi provided clean drinking water at the XIII
Youth  Song and Dance Festival  "Püha on maa" ("Sacred  is the land"), by taking
more  than 100,000 litres of pure drinking  water to the festival rehearsals and
performances.  This way, Aleksandr Timofejev says,  the singers, dancers and the
audience  together managed  to avoid  the spending  of resources  related to the
production, transport and handling of more than 200 thousand plastic bottles. At
the  Song and Dance  Festival, water was  provided from water  tanks, as well as
from  drinking water taps that were set  up at the Tallinn Song Festival Grounds
and  Kalev Stadium. These taps  are stationary and remain  at the service of the
people of Tallinn and its visitors.

Wastewater  analyses confirmed that the wastewater treated in the second quarter
contained  significantly less pollutants than required by law. This indicator is
important  as the quality of treated effluent  has a direct impact on the Baltic
Sea  and on the environment. "In the  six months of 2023, we have taken 355 tons
of  debris, 89 tons of grit, 938 tons of nitrogen and 126 tons of phosphorus out
of the wastewater," Timofejev pointed out.

The  level of  water loss  in the  water network  dropped in the second quarter.
Ongoing  rehabilitation of water  pipes contribute to  reducing water losses. In
2023, Tallinna  Vesi has  rehabilitated 14 kilometers  of networks and extensive
reconstruction works continue over the summer as planned.

The   biggest   project  at  the  Wastewater  Treatment  Plant  in  2023 is  the
reconstruction  of digesters, which will result  in Tallinna Vesi producing even
more  biogas from sludge  generated during the  wastewater treatment process. In
parallel,  construction works are currently underway at the Wastewater Treatment
Plant  at Paljassaare for  the construction of  a cogeneration plant, which will
allow  to produce  not only  the heat  energy, but  also most of the electricity
needed  for  the  wastewater  treatment  process  from biogas in the future. The
cogeneration plant is scheduled to be launched in the fourth quarter.

AS  Tallinna Vesi entered  into loan agreements  totaling EUR131 million. The loan
agreements  concluded  will  facilitate  AS  Tallinna  Vesi's capital investment
program  during 2023-2025. In 2023, the Company will  invest EUR35 million to meet
the Company's strategy and the objectives set out in the Public Water Supply and
Sewerage  System Development Plan adopted by  the City. The loan agreements will
facilitate  the  following  major  projects:  reconstruction  of  digesters  and
construction  of a  combined heat  and power  plant at  the Wastewater Treatment
Plant,  reconstruction of filters  and clarifiers at  the Water Treatment Plant,
and investments to the reconstruction and construction of networks.

On May 17-19, the very first ISO/IEC 27001:2013 certification took place and the
certificate  issued certifies  that our  information security  management system
meets  the  requirements  of  ISO/IEC  27001:2013. The  certificate issued to AS
Tallinna Vesi is valid until 26/06/2026.

AS  Tallinna Vesi is the largest water utility in Estonia, providing services to
more  than 24,900 private customers and  businesses and 470,000 end consumers in
Tallinn  and its surrounding municipalities. Tallinna Vesi is listed on the main
list  of the  Nasdaq Tallinn  Stock Exchange.  The largest  shareholdings in the
Company  are held by the City of  Tallinn (55.06%) and the energy group Utilitas
(20.36%). 24.58% of the Company's shares are free floating on the Nasdaq Tallinn
stock exchange.


Main financial indicators

 EUR million       Quarters 2                      6 months
 except key                        Variance                        Variance
 ratios          2023  2022  2021  2023/ 2022    2023  2022  2021  2023/ 2022
-------------------------------------------------------------------------------
 Sales           15.41 13.00 12.97         18.5% 30.01 25.05 24.75        19.8%

 Gross profit     5.80  4.42  5.23         31.3% 11.52  8.80 10.41        30.8%

 Gross profit
 margin %        37.66 33.98 40.34         10.8% 38.38 35.12 42.07         9.3%

 Operating
 profit before
 depreciation
 and
 amortisation     6.10  4.69  6.80         29.9% 12.11  9.34 13.03        29.8%

 Operating
 profit before
 depreciation
 and
 amortisation
 margin %        39.57 36.09 52.44          9.6% 40.37 37.26 52.63         8.4%

 Operating
 profit           4.13  3.08  5.20         34.0%  8.20  6.09  9.86        34.7%

 Operating
 profit - main
 business         3.81  2.83  4.96         34.9%  7.73  5.74  9.46        34.5%

 Operating
 profit margin % 26.79 23.70 40.09         13.1% 27.33 24.29 39.83        12.5%

 Profit before
 taxes            3.41  2.98  5.11         14.5%  6.93  5.88  9.68        17.9%

 Profit before
 taxes margin %  22.12 22.88 39.40         -3.3% 23.11 23.48 39.10        -1.6%

 Net profit       2.31  0.96  3.07        141.8%  5.81  3.84  7.62        51.6%

 Net profit
 margin %        15.02  7.36 23.70        104.1% 19.37 15.31 30.80        26.6%

 ROA %            0.90  0.38  1.21        137.4%  2.27  1.52  2.22        48.8%

 Debt to total
 capital
 employed %      57.66 57.09 57.20          1.0% 57.66 57.09 57.20         1.0%

 ROE %            2.06  0.85  2.75        142.0%  5.26  3.46  5.27        52.1%

 Current ratio    1.31  1.81  2.75        -27.6%  1.31  1.81  2.75       -27.6%

 Quick ratio      1.24  1.75  2.69        -29.1%  1.24  1.75  2.69       -29.1%

 Investments
 into fixed
 assets           5.77  2.85  5.57         16.6% 10.44  7.73  5.63        35.1%

 Payout ratio %      - 78.52 80.42                   - 78.52 80.42
-------------------------------------------------------------------------------

Gross profit margin - Gross profit / Net sales
Operating profit margin - Operating profit / Net sales
Operating profit before depreciation and amortisation - Operating profit +
depreciation and amortisation
Operating profit before depreciation and amortisation margin - Operating profit
before depreciation and amortisation / Net sales
Net profit margin - Net profit / Net sales
ROA - Net profit / Average Total assets for the period
Debt to Total capital employed - Total liabilities / Total capital employed
ROE - Net profit / Average Total equity for the period
Current ratio - Current assets / Current liabilities
Quick ratio - (Current assets - Stocks) / Current liabilities
Payout ratio - Total Dividends per annum/ Total Net Income per annum
Main business - water services related activities, excl. connections profit and
government grants, construction services, doubtful receivables


CONSOLIDATED STATEMENT OF FINANCIAL POSITION

                                                               As     As of 31
 EUR thousand                              of 30 June                    December

 ASSETS                             Note    2023             2022          2022



 CURRENT ASSETS
-------------------------------------------------------------------------------
   Cash and cash
   equivalents                       3    12,952           23,541        12,650

   Trade receivables, accrued
   income and prepaid expenses             8,601            6,643         8,989

   Inventories                             1,246              982         1,197
-------------------------------------------------------------------------------
 TOTAL CURRENT ASSETS                     22,799           31,166        22,836



 NON-CURRENT ASSETS
-------------------------------------------------------------------------------
   Property, plant, and
   equipment                         4   236,263          215,830       229,869

   Intangible
   assets                            5       817              637           688
-------------------------------------------------------------------------------
 TOTAL NON-CURRENT ASSETS                237,080          216,467       230,557
-------------------------------------------------------------------------------


 TOTAL ASSETS                            259,879          247,633       253,393



 LIABILITIES AND EQUITY



 CURRENT LIABILITIES
-------------------------------------------------------------------------------
   Leases                                    955              662           883

   Loans                                   3,615            3,630         3,630

   Trade and other
   payables                                9,555            9,665        10,225

   Prepayments                             3,313            3,296         3,749
-------------------------------------------------------------------------------
 TOTAL CURRENT LIABILITIES                17,438           17,253        18,487



 NON-CURRENT LIABILITIES
-------------------------------------------------------------------------------
   Deferred income from
   connection fees                        41,190           38,130        39,150

   Leases                                  2,105            1,063         1,607

   Loans                                  82,739           78,540        76,708

   Provision for possible
   third-party claims                6     6,018            6,018         6,018

   Deferred tax
   liability                                 264              303           496

   Other payables                             84               70           101
-------------------------------------------------------------------------------
 TOTAL NON-CURRENT
 LIABILITIES                             132,400          124,124       124,080
-------------------------------------------------------------------------------
 TOTAL LIABILITIES                       149,838          141,377       142,567



 EQUITY
-------------------------------------------------------------------------------
   Share capital                          12,000           12,000        12,000

   Share premium                          24,734           24,734        24,734

   Statutory legal reserve                 1,278            1,278         1,278

   Retained
   earnings                               72,029           68,244        72,814
-------------------------------------------------------------------------------
 TOTAL EQUITY                            110,041          106,256       110,826
-------------------------------------------------------------------------------


 TOTAL LIABILITIES AND
 EQUITY                                  259,879          247,633       253,393


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

                                                                   For the year
 EUR                                                                    ended 31
 thousand                          Quarter 2      6 months             December

                            Note   2023   2022    2023    2022             2022



 Revenue                     7   15,405 13,002  30,005  25,054           54,558

 Cost of goods and services
 sold                        9   -9,603 -8,583 -18,490 -16,254          -37,660
-------------------------------------------------------------------------------
 GROSS PROFIT                     5,802  4,419  11,515    8,80           16,898



 Marketing expenses          9     -205   -189    -419    -388             -703

 General administration      9   -1,317 -1,094  -2,620  -2,225           -4,399

 Other income (+)/ expenses
 (-)                         10    -153    -55    -275    -102             -476
-------------------------------------------------------------------------------
 OPERATING PROFIT                 4,127  3,081   8,201   6,085           11,320



 Financial
 income                      11      26      1      36       3                8

 Financial
 expenses                    11    -747   -108  -1,302    -205             -682
-------------------------------------------------------------------------------
 PROFIT BEFORE TAXES              3,406  2,974   6,935   5,883           10,646



 Income tax                  12  -1,093 -2,017  -1,121  -2,047           -2,240



 NET PROFIT FOR THE PERIOD        2,313    957   5,814   3,836            8,406
-------------------------------------------------------------------------------
 COMPREHENSIVE INCOME FOR
 THE PERIOD                       2,313    957   5,814   3,836            8,406



 Attributable profit to:
-------------------------------------------------------------------------------
 Equity holders of A-shares       2,313    957   5,814   3,836            8,406





 Earnings per A-share (in
 euros)                      13    0,12   0,05    0,29    0,19             0,42



CONSOLIDATED STATEMENT OF CASH FLOWS

                                                                   For the year
                                                                      ended 31
 EUR thousand                                         6 months           December

                                     Note           2023    2022           2022

 CASH FLOWS FROM OPERATING
 ACTIVITIES
-------------------------------------------------------------------------------
   Operating profit                                8,200   6,085         11,320

     Adjustment for
     depreciation/amortisation        4,5,9,10     3,914   3,250          6,817

     Adjustment for revenues from
     connection fees                     10         -292    -269           -544

     Other non-monetary adjustments       6         -157       0              0

     Profit (-)/loss (+) from sale of property,
     plant and equipment, and intangible assets      -22     -12            -32

   Change in current assets involved in
   operating activities                              343    -271         -2,841

   Change in liabilities involved in
   operating activities                             -526    -485            309
-------------------------------------------------------------------------------
 TOTAL CASH FLOWS FROM OPERATING
 ACTIVITIES                                       11,460   8,298         15,029



 CASH FLOWS USED IN INVESTING
 ACTIVITIES
-------------------------------------------------------------------------------
   Acquisition of property, plant, and
   equipment, and intangible assets              -10,495  -7,351        -20,701

   Compensations received for
   construction of pipelines, incl.
   connection fees                                 1,724   1,215          1,593

   Proceeds from sale of property,
   plant and equipment, and
   intangible assets                                  24      13             53

   Interest received                                  36       3              9
-------------------------------------------------------------------------------
 TOTAL CASH FLOWS USED IN INVESTING
 ACTIVITIES                                       -8,711  -6,120        -19,046



 CASH FLOWS USED IN FINANCING
 ACTIVITIES
-------------------------------------------------------------------------------
   Interest paid and loan financing
   costs, incl. swap interests                    -1,243    -218           -616

   Lease payments                                   -593    -230           -524

   Received loans                                 45,500       0              0

   Repayment of loans                            -39,318  -1,818         -3,636

   Dividends paid                        12       -6,515 -12,835        -12,835

   Withheld income tax paid on
   dividends                             12         -278     -95           -165

   Income tax paid on dividends          12            0       0          -2116
-------------------------------------------------------------------------------
 TOTAL CASH FLOWS USED IN FINANCING
 ACTIVITIES                                       -2,447 -15,196        -19,892
-------------------------------------------------------------------------------
 CHANGE IN CASH AND CASH EQUIVALENTS                 302 -13,018        -23,909
-------------------------------------------------------------------------------
 CASH AND CASH EQUIVALENTS AT THE
 BEGINNING OF THE PERIOD                          12,650  36,559         36,559
-------------------------------------------------------------------------------
 CASH AND CASH EQUIVALENTS AT THE
 END
 OF THE PERIOD                                    12,952  23,541         12,650


Marta Kuningas

Communications Specialist

AS Tallinna Vesi

(+372) 626 2200

[email protected]