Börsiteade

Pealkiri

Tallinna Vesi's third-quarter sales were €16.22 million

Teade

AS Tallinna Vesi's sales for the third quarter of this year amounted to EUR16.22
million, which is 3.9% more than in the same period last year. Net profit was
EUR3.93 million, decreasing by EUR0.12 million mainly due to the increase in
interest costs.

Aleksandr  Timofejev, Chief Executive  Officer of Tallinna  Vesi, said the third
quarter  was  characterised  by  continued  progress  with  planned investments.
"Summer  is the only time  of year for many  investment related projects and our
team made the most of it. The aim was to carry out the work in the city with the
least  possible disruption  to residents,  for example  by using environmentally
friendly  no-dig methods  and working  closely with  the city  and other utility
owners,"  he  said.  Timofejev  pointed  out  that  the  positive  impact of the
investments  made so far to ensure vital water services at affordable prices for
consumers  can already be seen. The  total capital expenditure planned for 2024
was over EUR60 million, with some projects to be completed in early 2025. Based on
the  revised timetables, EUR50 million of  fixed asset investments will be carried
out  this year, and by the end of the third quarter EUR33.4 million of investments
had been completed.

"The early summer kept the waters of Lake Ülemiste warm from May to October, and
this  presented challenges in  ensuring high drinking  water quality. Throughout
the quarter, ensuring high water quality was one of the priorities that our team
successfully  addressed. We took more than  700 water samples during the quarter
and  drinking  water  met  98.9 percent  all  quality  requirements,"  Timofejev
explained.  He said that clean tap water  has been ensured by an efficient water
treatment process and regular monitoring of the distribution network, as well as
ongoing preventive maintenance activities and timely investments.

Wastewater  treatment also  worked very  well, with  the quality  of the treated
effluent  discharged into  the Baltic  Sea exceeding  the legal standards in all
parameters.

In  the third  quarter of  2024, the company  pumped 7.04 million  m(3) of clean
drinking  water into the  distribution network and  treated nearly 11.11 million
m(3)  of wastewater. New prices for  water services, approved by the Competition
Authority, came into effect at the beginning of the third quarter of 2024 in the
Tallinn,  Saue and Maardu areas and affected  sales in this quarter. Besides the
continued  need to invest in water and sewerage infrastructure and to reduce the
environmental  impact, the need  for water price  adjustments also resulted from
the  obligation under the Public  Water Supply and Sewerage  Act to move towards
harmonized water prices for private and business customers.

The  company's  operating  profit  for  the  third  quarter  was  EUR5.13 million,
remaining at the same level as the year before. Operating profit was impacted by
an   increase   in  the  cost  of  securing  the  service  and  maintaining  the
infrastructure.  Net profit was EUR3.93 million,  which is EUR0.12 million less than
in  the same period of the previous year.  The decrease in net profit was mainly
driven by the increase in interest costs.

For  more than a year, a new and  efficient ice pigging technology has been used
to  maintain water pipes, using an ice slurry  made from a solution of water and
table  salt, which is  pumped through the  pipeline. More than  a quarter of the
water  pipeline (nearly 250 km) have now  been cleaned using the new technology,
which helps to maintain the high quality of water. In addition, water quality is
supported  by investments made in recent  years in water pumping stations, which
allow secondary chlorination in various parts of the city.

One  of the objectives of the company's  customer service is to notify customers
of  water interruptions  well in  advance. In  the third quarter, customers were
notified  at least 1 hour before the unplanned water interruption in 100% of the
cases,  and one interruption lasted an average  of 2 hours and 36 minutes - this
is 16 minutes better than the year before. To reduce the inconvenience caused by
water  interruptions, AS Tallinna Vesi continues installing additional isolation
valves on the water network.

In  the  third  quarter  of  2024, the  effluent from the Paljassaare Wastewater
Treatment  Plant met  all requirements  in place.  The excellent  quality of the
treated  effluent is demonstrated by pollutant  levels well below the limits set
by  law. During the third  quarter of 2024, the company  took out more than 170
tons of debris, 65 tons of grit, 452 tons of nitrogen, and 61 tons of phosphorus
from the wastewater.

In  recent years, the wastewater treatment  plant has seen continuous investment
to   ensure  a  sustainable  high  quality  of  treatment  performance.  Planned
investments in the wastewater treatment plant amount to EUR8 million in 2024.

Investments   are  ongoing  to  improve  the  biological  treatment  process  by
reconstructing the secondary clarifiers at the wastewater treatment plant. Major
multi-annual projects also include the installation of mechanical screens at the
headworks upstream of the plant and the replacement of screens at the wastewater
treatment  plant, which are important environmental  projects to keep the Baltic
Sea clean.

The  test period for the  start-up of the cogeneration  plant at the Paljassaare
Wastewater  Treatment  Plant  continued  in  the  third  quarter. In addition to
thermal  energy,  the  cogeneration  plant  allows  to  produce  from  biogas  a
significant part of the electricity needed for the wastewater treatment process.

At  the  water  treatment  plant,  one  of  the  most  important projects is the
renovation  of the  high-speed filters,  which is  now in  the final stages. The
preparation  of design to upgrade the  ozone production technology used in water
treatment will continue until the end of 2024.

The  water loss rate in the distribution  network was a good 12.48% in the third
quarter.  However, this  is higher  than last  year's exceptionally low level. A
year  ago, the quarterly water loss rate  was 9.98%. In order to reduce the rate
of  water loss and ensure high drinking  water quality, it is important to carry
on  the continuous online  monitoring of the  water distribution network and the
timely implementation of the network rehabilitation programme.

By  the end of the third quarter,  the company had rehabilitated and constructed
more  than 36 kilometers  of pipelines,  of which  more than  16 kilometers were
built  using environmentally  friendly no-dig  methods. The  company was working
closely  with the  City of  Tallinn and  other cooperation  partners, such as AS
Utilitas  Tallinn, to carry  out as many  works as possible  at the same time to
ensure  environmental sustainability  and minimise  disruption to  city life and
traffic.

By  the end of  the third quarter,  the company had  installed over 12,800 smart
meters, meaning that more than 57 percent of our customers now have remote water
meters.

By the end of 2024, the company aims to have 60 per cent of its customers with a
smart  meter, and by  the end of  2026 at the latest,  all customers in Tallinna
Vesi's service area to have their water meters replaced with smart meters.

The  company  strives  to  provide  its  customers and consumers with a reliable
service,  part of which  is the availability  of important information about the
service and the speed at which the enquiries are answered. In the third quarter,
99.8% of written enquiries were responded to within 2 days, which remains a high
level.

Throughout  the summer,  nearly 60 public  water taps  in Tallinn provided clean
drinking  water for everyone.  In addition, Tallinna  Vesi supported a number of
community and sports events, such as the Investment Festival and Ironman Tallinn
-  just to name those  with the largest number  of visitors - by providing tanks
with fresh water.

In  August, the company  took part in  the Opinion Festival  for the first time,
leading  a  discussion  on  sustainable  consumption  on the "Energetic Economy"
stage.  In the same month, a sporting event  with a long tradition took place by
Lake Ülemiste - the 52nd run around Lake Ülemiste hosted by Tallinna Vesi.

As  a supporter of the Estonian Paralympic Committee, the company wholeheartedly
cheered  for the Estonian paralympic athletes  at the Paralympic Games in Paris,
which took place from 28 August to 8 September.

As  a result  of the  co-operation project  with the  students from the Estonian
Academy  of Arts, an eye-catching street art  was designed and produced that now
decorate the facades of the four pumping stations operated by the company.

AS  Tallinna Vesi is the largest water utility in Estonia, providing services to
nearly 25,000 private and business customers and nearly 500,000 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  freely floating on the Nasdaq
Tallinn Stock Exchange.

MAIN FINANCIAL INDICATORS

                   3rd quarter                 9 months
 EUR million                                                             Variance
 except key ratios  2024  2023  2022 2024/2023  2024  2023  2022      2024/2023
-------------------------------------------------------------------------------
 Sales             16.22 15.61 13.48      3.9% 46.71 45.62 38.53           2.4%

 Gross profit       6.91  6.64  3.58      4.0% 19.30 18.16 12.38           6.3%

 Gross profit
 margin %          42.60 42.54 26.53      0.1% 41.32 39.80 32.12           3.8%

 Operating profit
 before
 depreciation and
 amortisation       7.28  7.12  4.15      2.2% 19.99 19.23 13.49           4.0%

 Operating profit
 before
 depreciation and
 amortisation
 margin %          44.86 45.57 30.80     -1.6% 42.81 42.15 35.00           1.5%

 Operating profit   5.13  5.10  2.44      0.7% 13.71 13.30  8.52           3.1%

 Operating profit
 - main business    4.78  4.72  2.06      1.4% 13.12 12.44  7.81           5.4%

 Operating profit
 margin %          31.63 32.64 18.07     -3.1% 29.36 29.15 22.12           0.7%

 Profit before
 taxes              4.07  4.20  2.32     -3.2% 10.51 11.13  8.21          -5.6%

 Profit before
 taxes margin %    25.07 26.90 17.24     -6.8% 22.51 24.40 21.30          -7.8%

 Net profit         3.93  4.05  2.22     -3.1%  9.13  9.87  6.05          -7.4%

 Net profit margin
 %                 24.23 25.96 16.44     -6.7% 19.55 21.63 15.70          -9.6%

 ROA %              1.33  1.54  0.89    -13.2%  3.12  3.79  2.40         -17.6%

 Debt to total
 capital employed
 %                 61.82 57.42 56.37      7.7% 61.82 57.42 56.37           7.7%

 ROE %              3.45  3.62  2.06     -4.8%  7.84  8.77  5.41         -10.7%

 Current ratio      0.83  1.09  1.59    -23.9%  0.83  1.09  1.59         -23.9%

 Quick ratio        0.78  1.03  1.52    -24.3%  0.78  1.03  1.52         -24.3%

 Investments into
 fixed assets      15.38 12.40  7.93     24.0% 33.42 22.84 15.66          46.3%

 Payout ratio %        - 79.41 78.52               - 79.41 78.52
-------------------------------------------------------------------------------

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

 EUR thousand

                                                                    as of 31
                                             as of 30                December
 ASSETS                                 Note September 2024              2023



 CURRENT ASSETS
------------------------------------------------------------------------------
   Cash and cash equivalents             3              6,364          14,736

   Trade receivables, accrued income
   and prepaid expenses                                10,168           8,608

   Inventories                                          1,204           1,137
------------------------------------------------------------------------------
 TOTAL CURRENT ASSETS                                  17,736          24,481



 NON-CURRENT ASSETS
------------------------------------------------------------------------------
   Property, plant, and
   equipment                             4            283,025         256,108

   Intangible assets                     5              1,434           1,293
------------------------------------------------------------------------------
 TOTAL NON-CURRENT ASSETS                             284,459         257,401
------------------------------------------------------------------------------
 TOTAL ASSETS                                         302,195         281,882



 LIABILITIES AND EQUITY



 CURRENT LIABILITIES
------------------------------------------------------------------------------
   Current portion of long-term
   lease liabilities                                      887             697

   Current portion of long-term
   loans                                                3,467           3,594

   Trade and other payables                            14,439          10,886

   Prepayments                                          2,905           3,604
------------------------------------------------------------------------------
 TOTAL CURRENT LIABILITIES                             21,698          18,781



 NON-CURRENT LIABILITIES
------------------------------------------------------------------------------
   Deferred income from
   connection fees                                     49,535          44,653

   Leases                                               2,368           1,892

   Loans                                              106,092          92,835

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

   Deferred tax
   liability                                              378             505

   Other payables                                         102             128
------------------------------------------------------------------------------
 TOTAL NON-CURRENT LIABILITIES                        164,493         146,031
------------------------------------------------------------------------------
 TOTAL LIABILITIES                                    186,191         164,812



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

   Share premium                                       24,734          24,734

   Statutory legal reserve                              1,278           1,278

   Retained earnings                                   77,992          79,058
------------------------------------------------------------------------------
 TOTAL EQUITY                                         116,004         117,070
------------------------------------------------------------------------------


 TOTAL LIABILITIES AND EQUITY                         302,195         281,882

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 EUR thousand



                                                  for the 9 months
                                                         ended 30
                               Note     Quarter 3        September

                                      2024   2023    2024     2023

 Revenue                        7   16,217 15,614  46,706   45,619

 Cost of goods and services
 sold                           9   -9,308 -8,972 -27,410  -27,462
-------------------------------------------------------------------
 GROSS PROFIT                        6,909  6,642  19,296   18,157



 Marketing expenses             9     -205   -182    -680     -603

 General administration
 expenses                       9   -1,514 -1,267  -4,539   -3,887

 Other income (+)/ expenses
 (-)                            10     -60    -96    -363     -371
-------------------------------------------------------------------
 OPERATING PROFIT                    5,130  5,096  13,714   13,296



 Financial income               11      19     36     168       72

 Financial expenses             11  -1,083   -933  -3,368   -2,235
-------------------------------------------------------------------
 PROFIT BEFORE TAXES                 4,066  4,199  10,514   11,133



 Income tax                           -136   -146  -1,380   -1,267



 NET PROFIT FOR THE PERIOD           3,930  4,053   9,134    9,866
-------------------------------------------------------------------
 COMPREHENSIVE INCOME FOR THE
 PERIOD                              3,930  4,053   9,134    9,866
-------------------------------------------------------------------


 Attributable profit to:
-------------------------------------------------------------------
 Equity holders of A-shares          3,930  4,053   9,134    9,866

 Earnings per A share (in
 euros)                         13    0.20   0.20    0.46     0.49

CONSOLIDATED STATEMENT OF CASH FLOWS

                                                   for the 9 months ended 30
 EUR thousand                                                         September

                                            Note    2024                 2023

 CASH FLOWS FROM OPERATING ACTIVITIES
------------------------------------------------------------------------------
   Operating profit                               13,714               13,296

     Adjustment for
     depreciation/amortisation              9,10   6,279                5,935

     Adjustment for revenues from
     connection fees                         10     -516                 -445

     Other non-cash adjustments                      -88                 -131

     Profit (-)/loss (+) from sale of
     property, plant and equipment, and
     intangible assets                               -63                  -22

   Change in current assets involved in operating
   activities                                     -1,627                  143

   Change in liabilities involved in
   operating activities                              147                  323
------------------------------------------------------------------------------
 TOTAL CASH FLOWS FROM OPERATING ACTIVITIES       17,846               19,099



 CASH FLOWS USED IN INVESTING ACTIVITIES
------------------------------------------------------------------------------
   Acquisition of property, plant, and
   equipment,
   and intangible assets                         -25,955              -20,414

   Compensations received for construction
   of pipelines, including connection fees         1,517                2,966

   Proceeds from sale of property, plant and
   equipment,
   and intangible assets                             111                   24

   Interest received                                 168                   73
------------------------------------------------------------------------------
 TOTAL CASH FLOWS USED IN INVESTING ACTIVITIES   -24,159              -17,351



 CASH FLOWS USED IN FINANCING ACTIVITIES
------------------------------------------------------------------------------
   Interest and loan financing costs paid         -2,617               -1,289

   Lease payments                                   -916                 -902

   Received loans                                 15,000               45,500

   Repayment of loans                             -1,818              -39,318

   Dividends paid                            12  -10,069               -6,515

   Withheld income tax paid on dividends     12     -131                  -85

   Income tax paid on dividends              12   -1,508               -1,352
------------------------------------------------------------------------------
 TOTAL CASH FLOWS USED IN FINANCING ACTIVITIES    -2,059               -3,961


------------------------------------------------------------------------------
 CHANGE IN CASH AND CASH EQUIVALENTS              -8,372               -2,213


------------------------------------------------------------------------------
 CASH AND CASH EQUIVALENTS AT THE
 BEGINNING OF THE PERIOD                     3    14,736               12,650


------------------------------------------------------------------------------
 CASH AND CASH EQUIVALENTS AT THE END
 OF THE PERIOD                               3     6,364               10,437


Additional information:

Taavi Gröön
Chief Financial Officer
AS Tallinna Vesi
(372) 62 62 200
[email protected]