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Tallinna Vesi's first-quarter sales were €16 million

Teade

AS Tallinna Vesi's sales amounted to EUR16 million in the first quarter of 2025,
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 5.9% compared to the first quarter of 2024. Sales from water
services provided to business customers in the first quarter of 2025 in the main
service area of Tallinna Vesi were EUR4.16 million, which is 2.8% less than the
year before. Sales from water services provided to private customers increased
by 17.6% in the first quarter compared to the same period of the previous year
and totalled EUR7.3 million. These trends in sales are linked to the obligation
imposed by law to harmonize the price of the service for private and business
customers.

The company's net profit in the first quarter of 2025 was EUR3.44 million, which
is EUR0.43 million more than in the same period of the previous year. Net profit
was impacted by the change in the price for water services and lower interest
costs due to the lower Euribor.

Tallinna Vesi is moving towards a more sustainable operating model and a
reduction of its environmental footprint, supported by new investments such as
the launch of a combined heat and power (CHP) plant. "In the first quarter, we
produced 2.2 GWh of energy at the CHP plant from biogas generated during
wastewater treatment, which will help reduce costs by by EUR250,000 and provide
water services at prices consumers can afford," said Aleksandr Timofejev, CEO of
Tallinna Vesi.

In the first quarter, the company continued to invest as planned to future-proof
its infrastructure and ensure the continuity of the vital service it provides.
The total investment planned for this year amounts to EUR61 million. "Investment
is essential to ensure the sustainability of water infrastructure and to cope
with changing climatic conditions - for example, exceptionally heavy rains in
January brought one and a half times the usual amount of water to the wastewater
treatment plant. To ensure the smooth functioning of life in the city, it is
necessary to continue investing in the development of separate stormwater
systems," explained Aleksander Timofejev. He says the construction and
rehabilitation of water, sewer and stormwater systems will peak during the
summer months, and the company aims to carry out all the work with as little
disruption to traffic and people's lives as possible.

In 2025, investment projects will continue in the treatment plants, for example,
emergency generators were installed in the pumping stations in the first quarter
to ensure continuity of service in the event of a major power cut.

At the wastewater treatment plant, the treatment process will be upgraded by
reconstructing the existing screens at the plant and installing new screens at
the main pumping station. This will improve the capability to remove debris in
the first treatment stage, making the whole treatment process more efficient.

In the first quarter of 2025, tap water quality was excellent, similar to the
previous year, meeting 100% of all quality requirements. "We work hard every day
to provide our customers and consumers with the highest quality tap water.
Throughout the year, we have continued to make significant investments in the
water network and have cleaned more than 140 kilometres of water pipes using
ice-pigging technology," said Timofejev. In the first quarter, an outage map was
made available on Tallinna Vesi's website, giving consumers an overview of
planned and emergency water interruptions, ice-pigging areas and the location of
temporary water tanks.

In the first quarter of 2025, Tallinna Vesi continued to explain the principles
of water service as a vital service and to promote the benefits of drinking tap
water to the public. The company also participated in career fairs organized at
universities to present the job and internship opportunities available at the
company.

Tallinna Vesi's long-standing commitment to environmental sustainability was
recognized in a Kantar Emor survey published in March, which ranked the company
among the top five green infrastructure companies.

During the quarter, preparations began for the opening of more than fifty public
drinking water taps, which will be available to citizens from May to October.

In the first quarter of 2025, the quality of the treated effluent from the
Paljassaare Wastewater Treatment Plant exceeded the effluent standards. To
maintain a clean Baltic Sea, the company uses efficient treatment processes that
removed more than 240 tonnes of debris, 40 tonnes of sand, 479 tonnes of
nitrogen and 59 tonnes of phosphorus from wastewater during the first quarter of
2025.

The water loss rate in the water distribution network fell to 15.88% in the
first quarter of the year, compared with 16.55% a year earlier. In order to keep
water loss rates low, the company carries out continuous online monitoring of
the water network and continues with its planned water network rehabilitation
programme.

By the end of the first quarter of 2025, Tallinna Vesi had rehabilitated and
constructed ca 7 kilometres of pipelines, more than half of which (4 km) using
no-dig methods.

In the first quarter, the work that started last year continued on Lastekodu
Street and on Paljassaare and Kopli streets. In co-operation with the City of
Tallinn, work has started on Värvi, Mustjõe and Vesivärava streets, where the
stormwater pipeline is crucial both for draining stormwater from the Rail Baltic
terminal and the Peterburi Road, and for mitigating stormwater floodings during
heavy rainfall in the car tunnel on Järvevana Road. On Sõle Street, a critical
water main supplying the North Tallinn area was rehabilitated.

Particular attention was paid to the construction of separate stormwater systems
to separate stormwater from wastewater so that it does not need to be discharged
to a wastewater treatment plant.

At the beginning of the year, the subsidiary company Watercom started to
rehabilitate pipelines with new equipment that allows the rehabilitation to be
carried out using a no-dig method, i.e. without excavating trenches. Most of the
work using this new method will be carried out in the spring and summer.

By the end of the first quarter of 2025, Tallinna Vesi had installed smart
meters for 67% 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, enabling the
detection of leaks in the customer's pipes as early as possible. This saves the
environment and minimizes potential damage to property due to water emergencies.

AS Tallinna Vesi is the largest water utility in Estonia, providing services to
approximately 25,000 private and business customers and approximately 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

                                           1st quarter
 EUR million
 except key ratios                          2025 2024  2023  Variance 2025/2024
                                          -------------------------------------
 Sales                                     16.00 15.11 14.74               5.9%

 Gross profit                               6.59  6.07  5.72               8.6%

 Gross profit margin %                     41.18 40.19 38.81               2.5%

 Operating profit before depreciation and
 amortisation                               6.95  6.23  6.02              11.6%

 Operating profit before depreciation and
 amortisation margin %                     43.41 41.21 40.82               5.3%

 Operating profit                           4.49  4.13  4.07               8.7%

 Operating profit - main business           4.31  4.17  3.91               3.5%

 Operating profit margin %                 28.04 27.32 27.62               2.6%

 Profit before taxes                        3.49  3.03  3.53              15.2%

 Profit before taxes margin %              21.80 20.05 23.92               8.8%

 Net profit                                 3.44  3.01  3.50              14.1%

 Net profit margin %                       21.47 19.93 23.73               7.7%

 ROA %                                      1.08  1.06  1.38               2.3%

 Debt to total capital employed %          61.43 58.11 55.19               5.7%

 ROE %                                      2.82  2.54  3.11              11.0%

 Current ratio                              1.08  1.44  1.46             -25.0%

 Quick ratio                                1.01  1.37  1.38             -26.3%

 Investments into fixed assets              6.76  6.65  4.67               1.7%

 Payout ratio %                               na    na    na
-------------------------------------------------------------------------------

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          as of
                                                         31 March 31 December
 ASSETS                                             Note 2025            2024



 CURRENT ASSETS
------------------------------------------------------------------------------
   Cash and cash equivalents                         3      8,922       3,589

   Trade receivables, accrued income and prepaid
   expenses                                                 9,419      10,746

   Inventories                                              1,304       1,180
------------------------------------------------------------------------------
 TOTAL CURRENT ASSETS                                      19,645      15,515



 NON-CURRENT ASSETS
------------------------------------------------------------------------------
   Property, plant, and equipment                    4    298,798     296,264

   Intangible assets                                 5      1,962       2,062
------------------------------------------------------------------------------
 TOTAL NON-CURRENT ASSETS                                 300,760     298,326
------------------------------------------------------------------------------
 TOTAL ASSETS                                             320,405     313,841



 LIABILITIES AND EQUITY



 CURRENT LIABILITIES
------------------------------------------------------------------------------
   Current portion of long-term lease
   liabilities                                                841         875

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

   Trade and other payables                                11,841      13,581

   Prepayments                                              2,104       2,646
------------------------------------------------------------------------------
 TOTAL CURRENT LIABILITIES                                 18,227      20,543



 NON-CURRENT LIABILITIES
------------------------------------------------------------------------------
   Deferred income from connection fees                    50,672      50,106

   Leases                                                   1,986       2,178

   Loans                                                  119,273     114,241

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

   Deferred tax
   liability                                                  547         494

   Other payables                                              91         108
------------------------------------------------------------------------------
 TOTAL NON-CURRENT LIABILITIES                            178,587     173,145
------------------------------------------------------------------------------
 TOTAL LIABILITIES                                        196,814     193,688



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

   Share premium                                           24,734      24,734

   Statutory legal reserve                                  1,278       1,278

   Retained earnings                                       85,579      82,141
------------------------------------------------------------------------------
 TOTAL EQUITY                                             123,591     120,153
------------------------------------------------------------------------------
 TOTAL LIABILITIES AND EQUITY                             320,405     313,841


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

                                          for the 3 months
  EUR thousand                                ended 31 March

                                          Note       2025     2024



  Revenue                                 1, 7     16,004   15,105

  Cost of goods and services sold         1, 9     -9,413   -9,035
--------------------------------------------------------------------
  GROSS PROFIT                                 1    6,591    6,070



  Marketing expenses                       9         -255     -235

  General administration expenses          9       -1,787   -1,494

  Other income and expenses              1, 10        -61     -213
--------------------------------------------------------------------
  OPERATING PROFIT                                  4,488    4,128



  Financial income                         11          33       82

  Financial expenses                       11      -1,032   -1,182
--------------------------------------------------------------------
  PROFIT BEFORE TAXES                               3,489    3,028



  Income tax                                          -53      -18



  NET PROFIT FOR THE PERIOD                         3,436    3,010
--------------------------------------------------------------------
  COMPREHENSIVE INCOME FOR THE PERIOD               3,436    3,010



  Attributable profit to:
--------------------------------------------------------------------
  Equity holders of A-shares                        3,436    3,010

  Earnings per A share (in euros)          12        0.17     0.15

CONSOLIDATED STATEMENT OF CASH FLOWS

                                                             for the 3 months
 EUR thousand                                                    ended 31 March

                                                          Note    2025   2024

 CASH FLOWS FROM OPERATING ACTIVITIES
------------------------------------------------------------------------------
   Operating profit                                              4,488  4,128

     Adjustment for depreciation/amortisation              9     2,281  2,097

     Adjustment for revenues from connection fees          7      -182   -168

     Other non-cash adjustments                                      0     22

     Profit (-)/loss (+) from sale of property, plant and
     equipment, and intangible assets                              -46    -41

   Change in current assets involved in operating activities     1,204   -487

   Change in liabilities involved in operating activities         -343    105
------------------------------------------------------------------------------
 TOTAL CASH FLOWS FROM OPERATING ACTIVITIES                      7,402  5,656



 CASH FLOWS USED IN INVESTING ACTIVITIES
------------------------------------------------------------------------------
   Acquisition of property, plant, and equipment,
   and intangible assets                                       -12,547 -6,176

   Proceeds from targeted funding of property, plant, and
   equipment.                                             4      5,454      0

   Compensations received for construction of pipelines,
   incl connection fees                                            207    377

   Proceeds from sale of property, plant and equipment,
   and intangible assets                                            46     66

   Interest received                                                33     82
------------------------------------------------------------------------------
 TOTAL CASH FLOWS USED IN INVESTING ACTIVITIES                  -6,807 -5,651



 CASH FLOWS USED IN FINANCING ACTIVITIES
------------------------------------------------------------------------------
   Interest and loan financing costs paid                          -32    -34

   Lease payments                                                 -230   -213

   Loans received                                                5,000      0
------------------------------------------------------------------------------
 TOTAL CASH FLOWS USED IN FINANCING ACTIVITIES                   4,738   -247


------------------------------------------------------------------------------
 CHANGE IN CASH AND CASH EQUIVALENTS                             5,333   -242


------------------------------------------------------------------------------
 CASH AND CASH EQUIVALENTS AT THE
 BEGINNING OF THE PERIOD                                   3     3,589 14,736


------------------------------------------------------------------------------
 CASH AND CASH EQUIVALENTS AT THE END
 OF THE PERIOD                                             3     8,922 14,494

Additional information:

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