Börsiteade

Pealkiri

Tallinna Vesi's third-quarter sales reached €18.2 million

Teade

The  sales of AS Tallinna Vesi in  the third quarter of 2025 were EUR18.2 million,
increasing  10.8% compared to the same period last year. Revenue growth was most
affected by a change in price due to the need for critical investments.

Aleksandr  Timofejev,  CEO  of  Tallinna  Vesi,  said that the third quarter was
characterised by continued progress with planned investments and a commitment to
the  continuity of the  vital service. "Summer  is the busiest  time of year for
water  and sewer pipeline construction  projects, and our team  made the most of
it.  Four  important  stormwater  receiving  systems  have been completed or are
nearing  completion in various districts of Tallinn. This creates the conditions
necessary  for developing a  stormwater network," he  said. Timofejev noted that
creating  modern stormwater  solutions is  essential for  the functioning of the
city  in changing climatic  conditions. He also  highlighted the installation of
generators  at  pumping  stations  as  a  significant investment made during the
quarter  to  ensure  the  continuity  of  the  vital  service. The total planned
investment for 2025 is approximately EUR60 million.

"The summer heat in the third quarter also warmed up our main source of drinking
water,  Lake Ülemiste, which meant our  company's specialists had to work harder
to  ensure good  water quality.  However, it  should be  noted that high-quality
drinking water reaches taps through the cooperation of the water company and the
customer.  For example, after  returning from a  long summer holiday, one should
open  the tap and let the water run for a while to replace the stagnant water in
the  pipes with  fresh water,"  said Timofejev.  During the quarter, the company
took  more than 800 water samples and drinking  water met over 98 percent of all
quality  requirements. According to Timofejev, clean  tap water has been ensured
through an efficient water treatment process and regular monitoring of the water
distribution  network, as well as  ongoing preventive maintenance activities and
timely investments.

The  company also supplied fresh tap water to participants in the Song and Dance
Celebration  "Iseoma" that  took place  this summer.  During the  song and dance
celebrations,  approximately 3 million  litres of  tap water  were consumed from
taps and tanks at the festival grounds and accommodation sites, thus allowing to
avoid tens of thousands of plastic bottles from being produced.

Throughout the quarter, the operation of the wastewater treatment was excellent,
with  the  quality  of  the  treated  effluent  discharged  into  the Baltic Sea
outperforming statutory standards for all parameters.

The  company's  third-quarter  sales  were  up  10.8%, or EUR1.77 million. Revenue
growth  was most affected by a change  in prices due to the critical investments
made.

Revenues  from the  sale of  water services  increased by  EUR1.35 million, with a
decrease  in water  services provided  to business  customers and an increase in
water services provided to private customers. The change in the revenue from the
sale  of  water  services  came  mainly  from  the  new price for water services
effective  from  1 May,  which  took  into  account both the legal obligation to
harmonise  the price of the service for private and business customers by 1 July
2026, and  the  need  for  investment  to  ensure  the  sustainability  of water
services.

The  company's net profit in the third  quarter of 2025 was EUR4.96 million, which
is  EUR1.03 million  more than  in the  same period  of the previous year. The net
profit  for the  nine-month period  was EUR9.76  million, which  is an increase of
6.9% compared  to the same period  last year. The growth  in net profit has been
driven by operational efficiency and the justified return on investments made to
ensure a clean environment and service continuity.

"The   successful  operation  of  the  cogeneration  plant  made  a  significant
contribution  to the company's financial results - in 9 months, we have produced
as  much  energy  from  wastewater  as  we  planned to produce in a whole year,"
explained  Aleksandr Timofejev. The  result was also  positively impacted by the
efficient  running of the treatment  processes and significant contribution from
the subsidiary Watercom through the provision of construction services.

Tallinn  Vesi aims to develop the resilience of its infrastructure and to ensure
the  continuity of the vital service it  provides, all the while keeping some of
the  lowest  prices  for  service  in  Estonia.  At  the  water treatment plant,
procurement  activities for the  reconstruction of the  ozonation system and the
design of the new building continue.

At  the wastewater  treatment plant,  the installation  of primary and secondary
screens  has been  completed, while  the installation  of a  new air blower, the
reconstruction of the sludge dewatering unit and the renovation of the secondary
clarifiers  are  underway.  The  investments  in  the wastewater treatment plant
planned for 2025 amount to EUR8 million.

By  the  end  of  the  third  quarter,  we had rehabilitated and constructed 32
kilometres of pipelines, of which almost half, or over 14 kilometres, were built
using  the environmentally friendly no-dig techniques.  We work closely with the
City  of  Tallinn  and  other  partners  in  order  to carry out as many work as
possible at the same time.

In  the third quarter, major pipeline  works started in the following locations:
construction  of a  strategic stormwater  receiving system  in North  Tallinn on
Kolde  Avenue, construction of Peterburi and  Bornhöhe roads in cooperation with
the  City of Tallinn,  and construction work  on Retke Road.  Work is ongoing on
Värvi  and Mustjõe streets, Tuukri and  Uus-Sadama streets, Paljassaare Road and
on the construction of the Nõlvaku collector.

In the third quarter, the renovation of the water pipeline on Tammsaare Road and
the construction of the emergency overflow and stormwater outlet on Kopli Street
and Paljassaare Road were completed. Works were also completed on Jaama, Raudtee
and  Vilmsi streets. The  plan is to  construct and rehabilitate  a total on 44
kilometres of pipeline by the end of this year.

A  scheme for  the construction  of a  separate stormwater  network in  the city
centre  has been finalised, and work is  underway on a stormwater scheme for the
Mustamäe  area. Both schemes apply near-natural solutions, which aim to ensure a
longer  retention time  for stormwater  and create  a greener urban environment.
These stormwater solutions help to reduce the risk of flooding during periods of
heavy rainfall.

In  the  third  quarter  of  2025, the  quality  of  the effluent treated at the
Paljassaare  Wastewater Treatment Plant outperformed  the effluent standards. To
keep  the Baltic Sea clean, the  company uses efficient treatment processes that
helped  to remove  approximately 200 tonnes  of solid  waste, 63 tonnes of grit,
476 tonnes  of nitrogen and  62 tonnes of phosphorus  from wastewater during the
third quarter of 2025.

The  quality of tap water  in the third quarter  was high, similar to last year,
meeting 98% of all quality requirements.

The  water loss  rate in  the water  distribution network  fell to 12.24% in the
third quarter from 12.47% a year earlier. In order to keep water loss rates low,
the  company carries out continuous online  monitoring of the water distribution
network and continues with its planned water network rehabilitation programme.

By  the end  of the  third quarter  of 2025, Tallinna  Vesi had  installed smart
meters  for 79% of  its customers.  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. Customer  feedback on the switch  to smart meters has
been  very positive, and  the meters give  the water company  a good overview of
water consumption in the service area.

As  a vital service  provider, Tallinna Vesi  believes it is  important to raise
consumer  awareness  of  the  benefits  of  fresh  tap  water  and environmental
protection.  As a  summer period,  the third  quarter is  an active time for the
company in terms of participation in events and promotion of water issues. As an
example,  we took part in Baltic Sea  Day, an information day for kindergartens,
the  IRONMAN  race,  the  Kõrvemaa  Run,  and the 53rd Run around Lake Ülemiste,
hosted  by  Tallinna  Vesi,  by  providing  drinking water and introducing water
services at these events.

At  the beginning of  the summer, Tallinna  Vesi opened 60 public drinking water
taps across Tallinn, which remain open for the use of residents until the end of
October.

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.

FINANCIAL INDICATORS

                   Quarter 3                   9 months
 EUR million                                                       Variance
 except key ratios 2025  2024  2023  2025/2024 2025  2024  2023  2025/2024
-------------------------------------------------------------------------------
 Sales             18.17 16.39 15.77     10.8% 53.57 47.22 46.06          13.4%

 Gross profit       7.86  6.92  6.65     13.6% 21.60 19.33 18.19          11.7%

 Gross profit
 margin %          43.26 42.21 42.19      2.5% 40.32 40.93 39.48          -1.5%

 Operating profit
 before
 depreciation and
 amortisation       8.70  7.44  7.26     16.9% 23.28 20.48 19.65          13.7%

 Operating profit
 before
 depreciation and
 amortisation
 margin %          47.87 45.40 46.04      5.4% 43.46 43.36 42.65           0.2%

 Operating profit   5.95  5.13  5.10     15.9% 15.57 13.71 13.30          13.5%

 Operating profit
 - main business    5.61  4.78  4.72     17.4% 14.62 13.11 12.44          11.5%

 Operating profit
 margin %          32.74 31.29 32.32      4.6% 29.07 29.04 28.86           0.1%

 Profit before
 taxes              5.04  4.07  4.20     24.1% 12.76 10.51 11.13          21.4%

 Profit before
 taxes margin %    27.76 24.80 26.64     11.9% 23.82 22.26 24.17           7.0%

 Net profit         4.96  3.93  4.05     26.2%  9.76  9.13  9.87           6.9%

 Net profit margin
 %                 27.29 23.97 25.71     13.9% 18.22 19.34 21.42          -5.8%

 ROA %              1.47  1.33  1.54     10.6%  2.97  3.12  3.76          -4.7%

 Debt to total
 capital employed
 %                 65.20 61.82 57.42      5.5% 65.20 61.82 57.42           5.5%

 ROE %              4.24  3.45  3.62     23.2%  8.15  7.84  8.77           4.0%

 Current ratio      0.83  0.83  1.09      0.0%  0.83  0.83  1.09           0.0%

 Quick ratio        0.76  0.78  1.03     -2.6%  0.76  0.78  1.03          -2.6%

 Investments into
 fixed assets      14.47 15.38 12.40     -5.9% 37.11 33.42 22.84          11.0%

 Payout ratio %        - 79.80 79.41               - 79.80 79.41
-------------------------------------------------------------------------------

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
                                                       30 September 31 December
 ASSETS                                           Note 2025                2024

 CURRENT ASSETS
-------------------------------------------------------------------------------
   Cash and cash equivalents                       3          5,369       3,589

   Trade receivables, accrued income and prepaid
   expenses                                                  10,786      10,746

   Inventories                                                1,399       1,180
-------------------------------------------------------------------------------
 TOTAL CURRENT ASSETS                                        17,554      15,515



 NON-CURRENT ASSETS
-------------------------------------------------------------------------------
   Property, plant, and equipment                  4        322,757     296,264

   Intangible assets                               5          2,531       2,062
-------------------------------------------------------------------------------
 TOTAL NON-CURRENT ASSETS                                   325,288     298,326
-------------------------------------------------------------------------------
 TOTAL ASSETS                                               342,842     313,841



 LIABILITIES AND EQUITY



 CURRENT LIABILITIES
-------------------------------------------------------------------------------
   Current portion of long-term lease
   liabilities                                                  783         875

   Current portion of long-term loans                         3,407       3,441

   Trade and other payables                                  14,109      13,581

   Prepayments                                                2,885       2,646
-------------------------------------------------------------------------------
 TOTAL CURRENT LIABILITIES                                   21,184      20,543



 NON-CURRENT LIABILITIES
-------------------------------------------------------------------------------
   Deferred income from connection fees                      51,610      50,106

   Leases                                                     1,638       2,178

   Loans                                                    142,496     114,241

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

   Deferred tax
   liability                                                    505         494

   Other payables                                                76         108
-------------------------------------------------------------------------------
 TOTAL NON-CURRENT LIABILITIES                              202,343     173,145
-------------------------------------------------------------------------------
 TOTAL LIABILITIES                                          223,527     193,688



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

   Share premium                                             24,734      24,734

   Statutory legal reserve                                    1,278       1,278

   Retained earnings                                         81,303      82,141
-------------------------------------------------------------------------------
 TOTAL EQUITY                                               119,315     120,153
-------------------------------------------------------------------------------
 TOTAL LIABILITIES AND EQUITY                               342,842     313,841


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

                                                         for the 9 months ended
 EUR thousand                                  Quarter 3             30 September

                               Note     2025      2024     2025            2024

 Revenue                       1, 7   18,167    16,393  53,566           47,222

 Cost of goods and services
 sold                          1, 9  -10,307    -9,473 -31,970          -27,985
-------------------------------------------------------------------------------
 GROSS PROFIT                  1       7,860     6,920  21,596           19,327

 Marketing expenses              9      -222      -205    -716             -680

 General administration
 expenses                        9    -1,596    -1,514  -4,982           -4,539

 Other income and expenses     1, 10     -95       -71    -327             -394
-------------------------------------------------------------------------------
 OPERATING PROFIT                      5,947     5,130  15,571           13,714

 Financial income               11        25        19      89              168

 Financial expenses             11      -928    -1,083  -2,898           -3,368
-------------------------------------------------------------------------------
 PROFIT BEFORE TAXES                   5,044     4,066  12,762           10,514

 Income tax                              -86      -136  -3,000           -1,380

 NET PROFIT FOR THE PERIOD             4,958     3,930   9,762            9,134
-------------------------------------------------------------------------------
 COMPREHENSIVE INCOME FOR THE PERIOD   4,958     3,930   9,762            9,134
-------------------------------------------------------------------------------
 Attributable profit to:
-------------------------------------------------------------------------------
 Equity holders of A-shares            4,958     3,930   9,762            9,134

 Earnings per A share (in
 euros)                         13      0.25      0.20     0.49            0.46

CONSOLIDATED STATEMENT OF CASH FLOWS

                                                               for the 9 months
 EUR thousand                                                  ended 30 September

                                                           Note    2025    2024

 CASH FLOWS FROM OPERATING ACTIVITIES
-------------------------------------------------------------------------------
   Operating profit                                              15,571  13,714

     Adjustment for depreciation/amortisation               9     7,191   6,279

     Adjustment for revenues from connection fees           7      -580    -516

     Other non-cash adjustments                                      26     -88

     Profit (-)/loss (+) from sale of property, plant and
     equipment, and intangible assets                               -57     -63

   Change in current assets involved in operating activities       -258  -1,627

   Change in liabilities involved in operating activities           -66     147
-------------------------------------------------------------------------------
 TOTAL CASH FLOWS FROM OPERATING ACTIVITIES                      21,827  17,846

 CASH FLOWS USED IN INVESTING ACTIVITIES
-------------------------------------------------------------------------------
   Acquisition of property, plant, and equipment,
   and intangible assets                                        -38,702 -25,955

   Proceeds from targeted funding of property, plant, and
   equipment.                                              4      5,528       0

   Compensations received for construction of pipelines,
   incl connection fees                                           1,523   1,517

   Proceeds from sale of property, plant and equipment,
   and intangible assets                                             58     111

   Interest received                                       11        89     168
-------------------------------------------------------------------------------
 TOTAL CASH FLOWS USED IN INVESTING ACTIVITIES                  -31,504 -24,159



 CASH FLOWS USED IN FINANCING ACTIVITIES
-------------------------------------------------------------------------------
   Interest and loan financing costs paid                        -2,505  -2,617

   Lease payments                                                  -662    -916

   Loans received                                                30,000  15,000

   Repayment of loans                                            -1,786  -1,818

   Dividends paid                                          12   -10,600 -10,069

   Withheld income tax paid on dividends                   12         0    -131

   Income tax paid on dividends                            12    -2,990  -1,508
-------------------------------------------------------------------------------
 TOTAL CASH FLOWS USED IN FINANCING ACTIVITIES                   11,457  -2,059


-------------------------------------------------------------------------------
 CHANGE IN CASH AND CASH EQUIVALENTS                              1,780  -8,372


-------------------------------------------------------------------------------
 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     5,369   6,364

Additional information:

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