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Tallinna Vesi’s fourth-quarter sales were €17.67 million

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AS Tallinna Vesi's sales amounted to EUR17.67 million in the fourth quarter of
2024, growing due to an increase in consumption volumes and the impact of a
price change in the second half of the year.

Sales increased by 13.8% compared to the fourth quarter of 2023. Sales from
water services provided to business customers in the fourth quarter of 2024 in
the main service area of Tallinna Vesi were EUR4.3 million, which is 7.3% less
than the year before. Sales from water services provided to private customers
increased by 19.3% in the fourth quarter compared to the same period of the
previous year, totalling EUR7.39 million. These trends in sales are linked to the
obligation imposed by law to synchronize the price of the service for private
and business customers.

The company's operating profit for the fourth quarter was EUR5.27 million.
Operating profit increased by 1.22 million euros compared to the year before.
The operating profit for 2024 was EUR18.98 million, an increase of EUR1.63 million
compared to the previous year. The main drivers were the implementation of
investments, the reduction in the cost of purchased energy and the start of
energy production from wastewater.

According to Aleksandr Timofejev, CEO of Tallinna Vesi, the positive effects of
commissioning the combined heat and power (CHP) plant are already apparent. "By
producing heat and electricity from biogas at the CHP plant, we have been able
to meet over 15% of our total energy needs with energy produced by ourselves,
which has increased the sustainability of our operations," said Timofejev. With
the new investments, the company is moving towards an increasingly sustainable
operating model and is reducing its impact on the environment, he added.

The company's net profit in the fourth quarter of 2024 was EUR4.2 million, which
is EUR1.2 million more than in the same period of the previous year. The Group's
profit before tax for the twelve months of the year was 14.78 million euros, an
increase of 4% or 0.57 million euros, compared to the same period last year. Net
profit for the twelve months was EUR13.28 million, an increase of 3.4% or EUR0.44
million compared to 2023.

The Group's net financial expenses were 1.00 million euros in the fourth
quarter, which is 0.22 million euros more than in the same period last year. The
increase in financial costs was due to higher interest costs.

The quality of tap water was excellent throughout 2024, meeting 99.6% of all
quality requirements. The compliance in the fourth quarter was 99.5%. "We work
hard every day to provide our customers and consumers with the highest quality
tap water. Throughout the year, we continued to make significant investments in
the water network and cleaned more than 140 kilometres of water pipes using ice-
pigging technology," said Timofejev.

In the fourth quarter of 2024, Tallinna Vesi continued to explain to the public
how the vital water services work and to promote the benefits of drinking tap
water. The company participated in the Impact Day sustainability festival and
opened the doors of its water treatment plant to the public during the Open
House Tallinn architecture weekend.

The effluent treated at the Paljassaare Wastewater Treatment Plant met all
requirements during the twelve months of 2024. The good quality of the treated
effluent is demonstrated by pollutant levels well below the limits set by law.
During 2024, we took out more than 730 tonnes of debris, 200 tonnes of grit,
1800 tonnes of nitrogen and 240 tonnes of phosphorus from wastewater.

The water loss rate in the distribution network remained at a low level of
12.67% in the fourth quarter of the year, although it was higher than the year
before (11.35%). In the twelve months of 2024, the water loss rate was 13.67%,
compared to 12.93% in the previous year. To keep water losses low, the company
is carrying out continuous online monitoring of the distribution network and is
continuing with its planned water network rehabilitation programme.

By the end of the fourth quarter of 2024, Tallinna Vesi had rehabilitated more
than 45 kilometres of network, 18 km of which was done using no-dig methods.

In 2024, major works were carried out in all the largest districts of the city.
In Lasnamäe, one of the main water pipelines in Tondiloo Park was replaced. In
Mustamäe and Õismäe, the pipelines supplying booster pumping stations in Tondi
and Siili streets were reconstructed. In the city centre, water pipelines were
rehabilitated in Järvevana Road and Masina, Lastekodu, Liivalaia and Suur-
Ameerika streets. Extensive works were also carried out in Põhja-Tallinn,
covering Paljassaare Road, Kopli and Paavli streets, Putukaväil, Kolde Avenue
and Ehte Street.

Particular attention has been paid to the construction of separate sewer
systems, which will allow stormwater to be discharged directly into the sea,
rather than to the wastewater treatment plant.

In 2024, investment projects continued at the treatment plants, such as the
renovation of the clarifiers at the Ülemiste Water Treatment Plant and the
preparation of two major projects, one to upgrade and reconstruct the ozone
production used in water treatment and the other to replace the sedimentation
technology currently used in the clarifiers with flotation technology. These
projects aim to reduce the energy consumption and increase the reliability of
the treatment plant and to increase its production capacity.

One  of the major projects at the Paljassaare Wastewater Treatment Plant was the
reconstruction of the digesters, which was completed in 2024.

At  the end of  2024, the subsidiary Watercom  invested in equipment that allows
the  company  to  rehabilitate  pipelines  using  a  no-dig method, i.e. without
digging a trench. The plan is to launch that service in 2025.

By the end of the fourth quarter of 2024, Tallinna Vesi had installed smart
water meters for over 60% of its customers. The company plans to replace the
water meters of all customers in its service area with smart meters by the end
of 2026 at the latest. The new meters provide information on water consumption,
allowing us to detect leaks in customer pipes as early as possible. This helps
to protect the environment and minimises the potential damage to property caused
by water accidents.

In 2024, Tallinna Vesi invested approximately EUR50 million in its fixed assets.
This was EUR15 million more than in the year before. These investments will ensure
the continuity of water services in our service area and improve the quality of
the services we provide. The value of fixed assets totals EUR298.3 million.

Tallinna Vesi aims to continue investments to future-proof its infrastructure
and ensure the continuity of the vital services it provides at prices consumers
can afford.

The total investments planned for 2025 amount up to EUR61 million. Major
investments include improvements to the treatment process and the start of
construction of new ozone technology at the water treatment plant. In the
wastewater treatment, investments include the reconstruction of mechanical
screens and the continued reconstruction of secondary clarifiers. In 2025, the
company plans to build and rehabilitate 45 kilometres of its network.

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

                   4th quarter                 12 months
 EUR million                                                       Variance
 except key ratios 2024  2023  2022  2024/2023 2024  2023  2022  2024/2023
-------------------------------------------------------------------------------
 Sales             17.67 15.52 16.03     13.8% 64.38 61.14 54.56           5.3%

 Gross profit       7.38  5.91  4.52     24.8% 26.67 24.07 16.90          10.8%

 Gross profit
 margin %          41.74 38.07 28.21      9.6% 41.43 39.36 30.97           5.3%

 Operating profit
 before
 depreciation and
 amortisation       7.52  6.17  4.65     21.8% 27.51 25.40 18.14           8.3%

 Operating profit
 before
 depreciation and
 amortisation
 margin %          42.54 39.78 29.00      7.0% 42.73 41.55 33.24           2.8%

 Operating profit   5.27  4.05  2.80     30.0% 18.98 17.35 11.32           9.4%

 Operating profit
 - main business    4.76  3.55  2.50     34.3% 17.88 15.99 10.31          11.8%

 Operating profit
 margin %          29.82 26.12 17.45     14.2% 29.49 28.38 20.75           3.9%

 Profit before
 taxes              4.27  3.07  2.44     38.9% 14.78 14.21 10.65           4.0%

 Profit before
 taxes margin %    24.14 19.79 15.22     22.0% 22.96 23.23 19.51          -1.2%

 Net profit         4.15  2.98  2.36     39.4% 13.28 12.84  8.41           3.4%

 Net profit margin
 %                 23.49 19.18 14.70     22.5% 20.63 21.01 15.41          -1.8%

 ROA %              1.34  1.08  0.94     24.1%  4.46  4.80  3.30          -0.34

 Debt to total
 capital employed
 %                 61.71 58.47 56.26      5.5% 61.71 58.47 56.26           3.24

 ROE %              3.51  2.58  2.15     36.5% 11.20 11.27  7.43          -0.07

 Current ratio      0.76  1.30  1.24    -41.5%  0.76  1.30  1.24          -0.54

 Quick ratio        0.70  1.24  1.17    -43.5%  0.70  1.24  1.17          -0.54

 Investments into
 fixed assets      16.11 12.09  9.47     33.3% 49.53 34.93 25.13          14.60

 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 31               December
 ASSETS                                  Note December 2024              2023



 CURRENT ASSETS
------------------------------------------------------------------------------
   Cash and cash equivalents              3             3,589          14,736

   Trade receivables, accrued income
   and prepaid expenses                                10,746           8,608

   Inventories                                          1,180           1,137
------------------------------------------------------------------------------
 TOTAL CURRENT ASSETS                                  15,515          24,481



 NON-CURRENT ASSETS
------------------------------------------------------------------------------
   Property, plant, and
   equipment                              4           296,264         256,108

   Intangible assets                      5             2,062           1,293
------------------------------------------------------------------------------
 TOTAL NON-CURRENT ASSETS                             298,326         257,401
------------------------------------------------------------------------------
 TOTAL ASSETS                                         313,841         281,882



 LIABILITIES AND EQUITY



 CURRENT LIABILITIES
------------------------------------------------------------------------------
   Current portion of long-term
   lease liabilities                                      875             697

   Current portion of long-term
   loans                                                3,441           3,594

   Trade and other payables                            13,581          10,886

   Prepayments                                          2,646           3,604
------------------------------------------------------------------------------
 TOTAL CURRENT LIABILITIES                             20,543          18,781



 NON-CURRENT LIABILITIES
------------------------------------------------------------------------------
   Deferred income from
   connection fees                                     50,106          44,653

   Leases                                               2,178           1,892

   Loans                                              114,241          92,835

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

   Deferred tax
   liability                                              494             505

   Other payables                                         108             128
------------------------------------------------------------------------------
 TOTAL NON-CURRENT LIABILITIES                        173,145         146,031
------------------------------------------------------------------------------
 TOTAL LIABILITIES                                    193,688         164,812



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

   Share premium                                       24,734          24,734

   Statutory legal reserve                              1,278           1,278

   Retained earnings                                   82,141          79,058
------------------------------------------------------------------------------
 TOTAL EQUITY                                         120,153         117,070
------------------------------------------------------------------------------
 TOTAL LIABILITIES AND EQUITY                         313,841         281,882


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 EUR thousand



                                                      for the 12 months
                                                              ended 31
                               Note      Quarter 4        December

                                       2024   2023    2024         2023

 Revenue                        7    17,670 15,522  64,377       61,141

 Cost of goods and services
 sold                           9   -10,295 -9,612 -37,705      -37,074
------------------------------------------------------------------------
 GROSS PROFIT                         7,375  5,910  26,672       24,067



 Marketing expenses             9      -228   -216    -908         -818

 General administration
 expenses                       9    -1,719 -1,391  -6,261       -5,278

 Other income (+)/ expenses
 (-)                            10     -160   -250    -521         -621
------------------------------------------------------------------------
 OPERATING PROFIT                     5,268  4,053  18,982       17,350



 Financial income               11       23     46     191          119

 Financial expenses             11   -1,026 -1,028  -4,394       -3,263
------------------------------------------------------------------------
 PROFIT BEFORE TAXES                  4,265  3,071  14,779       14,206



 Income tax                            -116    -95  -1,496       -1,362



 NET PROFIT FOR THE PERIOD            4,149  2,976  13,283       12,844
------------------------------------------------------------------------
 COMPREHENSIVE INCOME FOR THE
 PERIOD                               4,149  2,976  13,283       12,844
------------------------------------------------------------------------


 Attributable profit to:
------------------------------------------------------------------------
 Equity holders of A-shares           4,149  2,976  13,283       12,844

 Earnings per A share (in
 euros)                         13     0.21   0.15    0.66         0.64

CONSOLIDATED STATEMENT OF CASH FLOWS

                                                    for the 12 months ended
 EUR thousand                                         31 December

                                            Note     2024                2023

 CASH FLOWS FROM OPERATING ACTIVITIES
------------------------------------------------------------------------------
   Operating profit                                18,982              17,350

     Adjustment for
     depreciation/amortisation              9,10    8,526               8,055

     Adjustment for revenues from
     connection fees                         10      -701                -604

     Other non-cash adjustments                        32                 -16

     Profit (-)/loss (+) from sale of
     property, plant and equipment, and
     intangible assets                                -62                 -34

   Change in current assets involved in operating
   activities                                      -2,182                 430

   Change in liabilities involved in operating
   activities                                       1,652                -667
------------------------------------------------------------------------------
 TOTAL CASH FLOWS FROM OPERATING ACTIVITIES        26,247              24,514



 CASH FLOWS USED IN INVESTING ACTIVITIES
------------------------------------------------------------------------------
   Acquisition of property, plant, and
   equipment,
   and intangible assets                          -42,730             -28,885

   Compensations received for construction
   of pipelines, including connection fees          1,996               2,535

   Proceeds from sale of property, plant and
   equipment,
   and intangible assets                              111                  37

   Interest received                                  191                 119
------------------------------------------------------------------------------
 TOTAL CASH FLOWS USED IN INVESTING ACTIVITIES    -40,432             -26,194



 CASH FLOWS USED IN FINANCING ACTIVITIES
------------------------------------------------------------------------------
   Interest and loan financing costs paid          -5,506              -3,413

   Lease payments                                  -1,144              -1,233

   Received loans                                  25,000              57,500

   Repayment of loans                              -3,604             -41,136

   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      3,038               3,766


------------------------------------------------------------------------------
 CHANGE IN CASH AND CASH EQUIVALENTS              -11,147               2,086


------------------------------------------------------------------------------
 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     3,589              14,736

Taavi Gröön
AS Tallinna Vesi
Chief Financial Officer
(+372) 62 62 200