Börsiteade

Pealkiri

Results of operations for the 3rd quarter 2008 (EUR)

Teade

MANAGEMENT REPORT                                                               
RESULTS OF OPERATIONS - FOR THE 3rd QUARTER 2008                                


Overview                                                                        

In the 1st nine months of 2008 the Company's total sales increased, year on     
year, by 21.8% to 42.8 mln EUR. Total water and sewerage services sale volumes  
increased in the 1st nine months of 2008 by 0.5% compared to the same nine      
months of 2007, respective sales increased by 10.4%. Within the service area    
sales to residential customers increased by 9.0% year on year, sales to         
commercial customers increased by 8.3% year on year, and sales to customers     
outside of the service area increased by 52.6% year on year, reaching 2.7 mln m3
or 1.2 mln EUR. The Company's profit before taxes was 17.2 mln EUR, which is a  
7.2% increase compared to the same nine months of 2007. Eliminating the one-off 
nitrogen provision release in the 1st quarter of 2007, profit before tax in the 
1st nine months of 2008 increased by 13.2%. The Company invested 12.8 mln EUR,  
of which 11.1 mln EUR was invested in network extension and rehabilitation.     


--------------------------------------------------------------------------------
| mln EUR             | 3 Q  |  3 Q  | Change  |9 months | 9 months |  Change  |
|                     | 2008 | 2007  |         |   2008  |   2007   |          |
--------------------------------------------------------------------------------
| Sales               | 14,4 |  10,8 |   33,6% |    42,8 |     35,2 |    21,8% |
--------------------------------------------------------------------------------
| Main operating      | 11,1 |  10,0 |   10,7% |    34,3 |     30,8 |    11,3% |
| activities          |      |       |         |         |          |          |
--------------------------------------------------------------------------------
| Other operating     |  3,3 |   0,7 |  344,5% |     8,5 |      4,3 |    96,5% |
| activities          |      |       |         |         |          |          |
--------------------------------------------------------------------------------
| Gross profit        |  7,4 |   6,7 |    9,9% |    22,5 |     21,4 |     5,3% |
--------------------------------------------------------------------------------
| Gross profit margin | 51,1 |  62,1 |  -17,7% |    52,5 |     60,7 |   -13,5% |
| %                   |      |       |         |         |          |          |
--------------------------------------------------------------------------------
| Operating profit    |  6,4 |   5,7 |   12,4% |    19,3 |     18,1 |     6,1% |
--------------------------------------------------------------------------------
| Operating profit    | 44,1 |  52,4 |  -15,8% |    45,0 |     51,6 |   -12,9% |
| margin %            |      |       |         |         |          |          |
--------------------------------------------------------------------------------
| Profit before taxes |  5,7 |   4,9 |   16,3% |    17,2 |     16,1 |     7,2% |
--------------------------------------------------------------------------------
| Profit before taxes | 39,6 |  45,5 |  -12,9% |    40,2 |     45,6 |   -12,0% |
| margin              |      |       |         |         |          |          |
--------------------------------------------------------------------------------
| Net profit          |  5,7 |   4,9 |   15,3% |    13,0 |     12,5 |     3,7% |
--------------------------------------------------------------------------------
| ROA %               |  3,6 |   3,1 |   15,3% |     8,3 |      8,0 |     3,7% |
--------------------------------------------------------------------------------
| Debt to total       | 53,1 | 52,9% |    0,3% |   53,1% |    52,9% |     0,3% |
| capital employed    |    % |       |         |         |          |          |
--------------------------------------------------------------------------------

Gross profit margin - Gross profit / Net sales                                  
Operating profit margin - Operating profit / Net sales                          
Profit before taxes margin - Profit before taxes / Net sales                    
ROA - Net profit /Total Assets                                                  
Debt to Total capital employed - Total Liabilities / Total capital employed     


Profit and Loss Statement                                                       

3rd quarter 2008                                                                

Sales                                                                           

In the 3rd quarter of 2008 the Company's total sales increased, year on year, by
33.6% to 14.4 mln EUR. Sales from the Company's main operating activities were  
11.1 mln EUR. Sales in the main operating activity principally comprise of sales
of water and treatment of wastewater to domestic and commercial customers within
and outside of the service area, and fees received from the City of Tallinn for 
operating and maintaining the storm water system.                               

Sales of water and wastewater services were 10.2 mln EUR, a 10.2% increase      
compared to the 3rd quarter of 2007, resulting from the 11.7% increase in       
tariffs from 1 January 2008 for the Company's residential and commercial        
customers combined with the factors described below.                            

Included within this amount were the following increases by sector: within the  
service area sales to residential customers increased by 8.2% to 5.4 mln EUR.   
Sales to commercial customers increased by 8.5% to 4.2 mln EUR. Sales to        
customers outside of the service area - primarily bulk volumes of wastewater    
treatment services provided to the surrounding municipalities - increased by    
62.3% reaching 1.04 mln m3 or 0.47 mln EUR. Over pollution fees received were   
0.20 mln EUR, 20.5% increase compared to the 3rd quarter of 2007.               

In the 3rd quarter of 2008, the volumes sold to residential customers dropped   
3.1% or 224 thousand m3. We believe that this is mainly related to the fact that
people are moving to the surrounding areas of Tallinn.                          

The volumes sold to commercial customers inside the service area decreased by   
2.9% compared to the relevant period in 2007 due to several factors combined.   
Part of the reduction in sales volumes in Tallinn is due to companies moving to 
the surrounding municipalities, supplemented by companies implementing different
efficiency measures or reducing their production.                               
                                                                                
The real estate market stays relatively unchanged from last year. Although      
slightly lower than in 2007, the number of new apartments and business buildings
being constructed this year in Tallinn remains high. A large share of new       
buildings still remain vacant as commercial customers as well as people in need 
of space are moving to surrounding areas due to more affordable real estate     
prices.                                                                         

This trend is also reflected in the Company's sales to surrounding areas, which 
has increased by 62.3% in the 3rd quarter of 2008 compared to the same period   
last year. This reflects the success of the Company's strategy to re-capture    
customers leaving Tallinn. The Company is actively looking for the further      
expansion opportunities into the neighboring municipalities.                    

The sales from the operation and maintenance of the storm water and fire-hydrant
system increased by 10.7% to 0.73 mln EUR in the 3rd quarter of 2008 compared to
the same period in 2007. This is in accordance with the terms and conditions of 
the contract whereby the storm water and fire hydrant costs are invoiced based  
on actual costs and volumes treated. This is contractually agreed up to 2020.   

Sales revenues from other operating activities, mainly connections and storm    
water construction, totaled 3.3 mln EUR which is 2.5 mln EUR more than in the   
3rd quarter of 2007. Before 2008 a considerable amount of works and revenues    
were confirmed and recorded in the first quarter. According to the new contract 
concluded with the City of Tallinn on 30th November 2007, the revenue flow is   
more even throughout the year. Starting from March 2008 the revenue in this line
is mainly calculated using the Tallinn domestic water sales volumes and fixed   
development rate per cubic meter, supplemented by the fee payable for the storm 
water constructions. This revenue line goes in pairs with the Cost of goods sold
from other operating activities, where the respective costs of the constructions
are recorded.                                                                   


Cost of Goods Sold and Gross Margin                                             

The cost of goods sold for the main operating activity was 4.1 mln EUR in the   
3rd quarter of 2008, an increase of 0.59 mln EUR or 16.6% from the equivalent   
period in 2007.                                                                 

In the 3rd quarter of 2008 the Company did not record any non-compliant         
wastewater samples and as a result of this achieved the beneficial 0.5          
coefficient for pollution tax. The pollution tax payable for the 3rd quarter of 
2008 was 0.13 mln EUR compared to 0.11 mln EUR in 3rd quarter of 2007. This     
increase in pollution tax is due to the combination of the beneficial           
coefficient and increase in tax rates year on year by 20%, supplemented by      
volume and pollution impact. Despite the fact that the pollution level of the   
incoming sewerage does vary and the company does not have full control over     
storm water outlets regarding the pollution, we are working hard to use the     
optimum level of chemicals to achieve the 0.5 coefficient in the fourth quarter 
of 2008.                                                                        

The chemical costs were 0.42 mln EUR, this represents an 19.9% increase compared
to the corresponding period in 2007. This result is the combination of volumes  
treated, chemicals dosed and the price inflation.                               

Electricity costs increased by 0.08 mln EUR or 18.0% in the 3rd quarter of 2008 
compared to the 3rd quarter of 2007 due to higher electricity prices combined   
with volumes treated.                                                           

Salary expenses increased in the 3rd quarter of 2008, year on year, by 0.19 mln 
EUR or 27.3% due to a number of factors. Firstly, increased headcount from the  
new services launched. Secondly, a highly competitive labour market has led to  
significant salary inflation. Finally in the 1st quarter of 2008 the Company    
restructured and combined departments which resulted in transferring cost from  
one line to an other. Eliminating these structural changes would give us 19.0%  
increase in salaries. This is in line with the increase in average salaries in  
the Estonian market.                                                            

Depreciation charges increased in the 3rd quarter of 2008 by 0.15 mln EUR or    
13.1% year on year due to new sludge treatment building commissioned in the end 
of 2007. Also in the beginning of 2008 the depreciation rates were revised to   
correspond with the useful life of assets.                                      

Other cost of goods sold in the main operating activity increased by 0.08 mln   
EUR, or 11.6% year on year. This was due to higher costs on a number of support 
service contracts, such as transport, security services, maintenance cost,      
reflecting the significant increase in labour and services costs in Tallinn. But
on the other hand it reflects Company's achievements to reduce costs by         
optimizing operations.                                                          

The cost pressure sets the challenge to the management to identify the further  
efficiency opportunities through review of processes, procedures and            
procurements.                                                                   

As a result of all of the above the Company's gross profit for the 3rd quarter  
of 2008 was 7.4 mln EUR, which is an increase of 0.66 mln EUR, or 9.9%, compared
to the gross profit of 6.7 mln EUR for the 3rd quarter of 2007.                 

Operating Costs and Operating Margin                                            

Marketing expenses decreased by 0.03 mln EUR to 0.18 mln EUR during the 3rd     
quarter of 2008 compared to the corresponding period in 2007. This is partly the
result of the structural changes, balanced by the increase in depreciation      
charges.                                                                        

General administration expenses decreased by 0.01 mln EUR to 0.76 mln EUR in the
3rd quarter of 2008 year on year, mainly as a consequence of structural changes.

Included within all the above cost categories are staff costs. These totaled 1.2
mln EUR in the 3rd quarter of 2008, which is a 0.20 mln EUR or 19.6% increase   
compared to the same period in 2007. As mentioned earlier this was mainly due to
the wide revision of salaries at the beginning of 2008.                         

Other net income/expenses totaled an expense of 0.06 mln EUR in the 3rd quarter 
of 2008 compared to an expense of 0.07 mln EUR in the 3rd quarter of 2007.      

As a result of all of the above the Company's operating profit for the 3rd      
quarter of 2008 was 6.4 mln EUR, an increase of 0.70 mln EUR compared to an     
operating profit of 5.7 mln EUR achieved in the 3rd quarter of 2007. Compared to
the operating profit in the 3rd quarter of 2007, the operating profit has       
increased 12.4%.                                                                

Financial expenses                                                              

Net Financial expenses were 0.65 mln EUR in the 3rd quarter of 2008, which is a 
decrease of 0.10 mln EUR or 12.9% compared to the 3rd quarter of 2007. The      
Company's interest costs have increased by 7.6% compared to the 3rd quarter of  
2007. This is due to the increase in the 6 month Euribor rate. The increase in  
interest expenses is partially offset by an increase in financial income earned 
during the 3rd quarter of 2008, as a result of a more favourable cash position  
and increasing interest rates. Also favorable interest SWAP position had a      
positive effect of 0.10 mln EUR in the 3rd quarter of 2008.                     

Profit Before Tax                                                               

The Company's profit before taxes for the 3rd quarter of 2008 was 5.7 mln EUR,  
which is 0.80 mln EUR higher than the profit before taxes of 4.9 mln EUR for the
3rd quarter of 2007.                                                            


Results for the 1st nine months of 2008                                         

During the 1st nine months of 2008 the Company's total sales increased, year on 
year, by 21.8% to 42.8 mln EUR.  Sales from the Company's main operating        
activities were 34.3 mln EUR. Sales of water and wastewater treatment were 31.6 
mln EUR, a 10.4% increase compared to the 1st nine months of 2007.              

The Company's profit before taxes for the 1st nine months of 2008 was 17.2 mln  
EUR, which is 1.2 mln EUR higher than the profit before taxes of 16.1 mln EUR in
the relevant period in 2007. The results for the 1st nine months of 2007 were   
impacted by the fact that the Ministry of Environment gave final approval to the
success of the nitrogen project, which resulted in the release of a provision   
worth 0.85 mln EUR for environmental taxes. Looking at the underlying profit    
before taxes for the 1st nine months of 2007, it shows a 2.0 mln EUR or 13.2%   
increase in 2008 for the same period.                                           


Balance sheet                                                                   

During the 1st nine months of 2008 the Company invested 12.8 mln EUR into fixed 
assets. Non-current assets were 140.5 mln EUR at 30 September 2008. Current     
assets decreased by 2.5 mln EUR to 21.4 mln EUR in the nine months of the year, 
customer receivables decreased by 4.6 mln EUR. During the 1st nine months of    
2008 cash at bank increased by 2.1 mln EUR.                                     

Current liabilities increased by 3.9 mln EUR to 16.6 mln EUR in the nine months 
of the year. This was mainly due to increases in Current portion of long-term   
borrowings by 2.7 mln EUR, as result of the reclassification of the loan based  
on repayment schedule.                                                          

The company continues to maintain its leverage level within its target range    
above 50% with total liabilities to total capital employed of 53.1% as of 30    
September 2008. Long-term liabilities stood at 69.3 mln EUR at the end of       
September 2008, consisting almost entirely of the outstanding balance on the two
long-term bank loans.                                                           


Cash flow                                                                       

During the 1st nine months of 2008, the Company generated 20.6 mln EUR of cash  
flows from operating activities, an increase of 3.4 mln EUR compared to the     
corresponding period in 2007. Underlying operating profit continues to be the   
main driver for growth, supplemented by debt collection in nine months of 2008. 

In the nine months of 2008 net cash inflows from investing activities were 1.6  
mln EUR, which is 7.9 mln EUR more than in 2007. This was mainly due to some    
large construction revenue invoices that were due and paid in the 1st quarter   
2008, offset by increased investment payments. In the 1st nine months the       
company invested 12.8 mln EUR - 11.1 mln EUR on networks (including 7.6 mln EUR 
on extension and developments), 0.76 mln EUR at Paljassaare wastewater treatment
plant and sludge treatment, 0.38 mln EUR on water quality (Ülemiste water       
treatment plant and raw water) and 0.57 mln EUR for other investments (IT,      
capital maintenance, meters, etc).                                              

The cash outflows from financing activities were 20.1 mln EUR during the 1st    
nine months of 2008 compared to cash outflow of 16.1 mln EUR during the same    
nine months of 2007, representing the payouts of the dividend and the income tax
on dividends of respective years.                                               

As a result of all of the above factors, the total cash inflow in the nine      
months of 2008 was 2.1 mln EUR compared to a cash outflow of 5.1 mln EUR in the 
nine months of 2007. Cash and cash equivalents stood at 13.5 mln EUR as at 30   
September 2008.                                                                 


Employees                                                                       

At the end of the 3rd quarter of 2008, the number of employees was 323, compared
to 316 at the end of the 3rd quarter of 2007.                                   


Dividends and share performance                                                 

Based on the results of the 2007 financial year, the company paid 15,914,640 EUR
of dividends. Of this 639 EUR was paid to the owner of the B-share              
and 15,914,000 EUR, i.e. 0.80 EUR per share to the owners of the A-shares.  The 
dividends were paid out on 13 June 2008, based on the list of shareholders,     
which was fixed on 30 May 2008.                                                 

As of 30 September 2008 AS Tallinna Vesi shareholders, with a direct holding    
over 5%, were:                                                                  

--------------------------------------------------------------------------------
| United Utilities (Tallinn) BV                         | 35.3%                |
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| City of Tallinn	                                | 34.7%                |
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| Nordea Bank Finland Plc clients account trading       | 12.24%               |
--------------------------------------------------------------------------------
| Credit Suisse Securities (Europe) Ltd Prime Brokerage | 5.76%                |
| A/C Prime Brokerage Clients                           |                      |
--------------------------------------------------------------------------------

At the end of the quarter, 30 September 2008, the closing price of the AS       
Tallinna Vesi share was 10.31 EUR, which is a 12.7% decrease compared to the    
closing price of 11.81 EUR at the beginning of quarter,  this is still          
outperforming the market as the OMX Tallinn index dropped by 19.3% during the   
quarter.                                                                        




Operational highlights in the nine months of 2008                               

The company implemented the development component in the 1st quarter of 2008    
according to the Services Agreement Amendment, which was signed with the City of
Tallinn on 30 November 2007. The Services Agreement is extended until 2020 and  
the k-coefficient is also fixed until 2020 - 2% in years 2009 to 2010 and 0% in 
years 2011 to 2020. No extra capital expenditures (in addition to maintenance   
capex and extensions program agreed in the contract) can be imposed on the      
company until 2020. According to the agreement the network extension            
constructions must be completed by March 2011. To compensate the Company for the
construction and financing costs, a specific development component is included  
into the Tallinn domestic water tariff starting from 1 March 2008 to the end of 
2017, and the City of Tallinn will compensate 0.28 mln EUR every month for the  
storm water constructions until the end of 2011. The development component shall
be compensated to the customers with direct payment to the company by the City  
of Tallinn. The component is bigger during the construction period (0.58 euros  
per m3 until 31 December 2011 and 0.39 euros per m3 in years 2012 to 2017).     
The Company submitted the application for the tariff increase from 1st January  
2009 in the 3rd quarter. The City Government approved the 12.8% tariff increase 
for water and wastewater services on 1 October 2008. The tariff increase is     
applicable from 1st January 2009 and consists of 11.4% of CPI increase, 2% of   
k-coefficient and -0.6% of change of law. The 12.8% tariff increase is          
applicable in the main service area and is similar outside the main service     
area, depending still on individual contracts with the municipalities.          
The usage of the web based self service has increased by more than 2 times      
compared to 2007, around 9% of invoices were issued via web.                    
We are pleased to report the compliance with all requirements of the Levels of  
Services established by the contract with City of Tallinn.                      
In the 3rd quarter we met again all the norms for the pollutants in the waste   
water and as result of this the payable pollution tax decreased by 50% compared 
to the regular rate, giving 0.12 mln EUR positive impact to the P&L and cash    
flows of the company.                                                           
We are pleased to report that on 5th August the company concluded an operating  
agreement with Maardu City and Maardu Vesi. When the operating contract comes   
into force from 1st January 2009, AS Tallinna Vesi shall help AS Maardu Vesi to 
finance the self-financing part required within the European Union Assistance   
Project during the period 2009-2012 with approximately 1.3 mln EUR annually. The
financing commitment of AS Tallinna Vesi is up to a total of 5.1 mln EUR over   
the period. The company shall get the investment back through the capital       
component to be included in the tariff within 20 years.  On the basis of the    
cooperation of the companies and the subsidies of the European Union the        
problems regarding the water quality in Maardu shall be solved in the           
forthcoming years and in a longer perspective Maardu shall be supplied with     
drinking water from Ülemiste Water Treatment Plant.  Administrating the         
infrastructure of AS Maardu Vesi enables AS Tallinna Vesi to increase its       
customer portfolio and to grow turnover. In addition to the required            
self-financing AS Tallinna Vesi shall provide the customers of AS Maardu Vesi   
with a modern service of operating the assets with a good-quality customer      
service. There area about 20 000 residents living in the operating area of AS   
Maardu Vesi. The operating contract has been planned for the duration of 30     
years. Tallinna Vesi shall start to operate the assets and provide full service 
at the latest from 1 January 2009 after the preparation period during which the 
assets are taken over. AS Maardu Vesi shall still remain the owner of all       
assets.                                                                         


Additional information:                                                         
Siiri Lahe                                                                      
Chief Financial Officer                                                         
+372 6262 262                                                                   
[email protected]                                                             



--------------------------------------------------------------------------------
| INCOME STATEMENT                          | 9 months | 9 months  | 12 months |
--------------------------------------------------------------------------------
| (thousand EUR)                            |   2008   |   2007    |   2007    |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| Sales from main operating activities      |   34 334 |    30 845 |    41 436 |
--------------------------------------------------------------------------------
| Revenues from other operating activities  |    8 513 |     4 333 |    11 021 |
--------------------------------------------------------------------------------
| Net sales                                 |   42 846 |    35 178 |    52 457 |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| Costs of goods sold (main operating       |  -12 704 |   -10 047 |   -13 848 |
| activities)                               |          |           |           |
--------------------------------------------------------------------------------
| Costs of goods sold (other operating      |   -7 634 |    -3 762 |   -10 110 |
| activities)                               |          |           |           |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| GROSS PROFIT                              |   22 509 |    21 369 |    28 499 |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| Marketing expenses                        |     -590 |      -621 |      -866 |
--------------------------------------------------------------------------------
| General administration expenses           |   -2 595 |    -2 657 |    -3 633 |
--------------------------------------------------------------------------------
| Other income/ expenses (-)                |      -65 |        58 |       118 |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| OPERATING PROFIT                          |   19 260 |    18 149 |    24 118 |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| Financial income / expenses (-)           |   -2 047 |    -2 097 |    -2 827 |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| PROFIT BEFORE TAXES                       |   17 213 |    16 052 |    21 291 |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| Income tax on dividends                   |   -4 231 |    -3 533 |    -3 533 |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| NET PROFIT FOR THE PERIOD                 |   12 982 |    12 519 |    17 757 |
--------------------------------------------------------------------------------
|                                           |          |           |           |
--------------------------------------------------------------------------------
| Attributable to:                          |          |           |           |
--------------------------------------------------------------------------------
| Equity holders of A-shares                |   12 982 |    12 518 |    17 757 |
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| B-share holder                            |     0,64 |      0,64 |      0,64 |
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|                                           |          |           |           |
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| Earnings per share in euros               |     0,65 |      0,63 |      0,89 |
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--------------------------------------------------------------------------------
| BALANCE SHEET                        |            |             |            |
--------------------------------------------------------------------------------
| (thousand EUR)                       | 30.09.2008 |  30.09.2007 | 31.12.2007 |
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|                                      |            |             |            |
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| ASSETS                               |            |             |            |
--------------------------------------------------------------------------------
| CURRENT ASSETS                       |            |             |            |
--------------------------------------------------------------------------------
| Cash at bank and in hand             |     13 490 |      10 817 |     11 403 |
--------------------------------------------------------------------------------
| Commercial paper                     |          0 |           0 |          0 |
--------------------------------------------------------------------------------
| Customer receivables                 |      7 234 |       5 216 |     11 838 |
--------------------------------------------------------------------------------
| Accrued income and prepaid expenses  |        354 |         357 |        331 |
--------------------------------------------------------------------------------
| Inventories                          |        243 |         193 |        233 |
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| Assets for sale                      |         71 |         107 |         72 |
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| TOTAL CURRENT ASSETS                 |     21 392 |      16 690 |     23 877 |
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|                                      |            |             |            |
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS                   |            |             |            |
--------------------------------------------------------------------------------
| Tangible assets                      |    128 123 |     122 664 |    127 375 |
--------------------------------------------------------------------------------
| Intangible assets                    |      2 694 |       3 085 |      3 140 |
--------------------------------------------------------------------------------
| Unfinished assets - non connections  |      3 935 |       5 784 |      3 070 |
--------------------------------------------------------------------------------
| Unfinished pipelines - new           |      5 660 |       7 981 |      5 756 |
| connections                          |            |             |            |
--------------------------------------------------------------------------------
| Prepayments for fixed assets         |        118 |         198 |        345 |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT ASSETS             |    140 530 |     139 711 |    139 686 |
--------------------------------------------------------------------------------
| TOTAL ASSETS                         |    161 921 |     156 402 |    163 562 |
--------------------------------------------------------------------------------
|                                      |            |             |            |
--------------------------------------------------------------------------------
| LIABILITIES                          |            |             |            |
--------------------------------------------------------------------------------
|                                      |            |             |            |
--------------------------------------------------------------------------------
| CURRENT LIABILITIES                  |            |             |            |
--------------------------------------------------------------------------------
| Current portion of long-term         |      5 301 |           0 |      2 651 |
| borrowings                           |            |             |            |
--------------------------------------------------------------------------------
| Trade and other payables, incl.      |      6 506 |       4 185 |      5 558 |
| dividends                            |            |             |            |
--------------------------------------------------------------------------------
| Taxes payable                        |      1 149 |         904 |      1 693 |
--------------------------------------------------------------------------------
| Short-term provisions                |        159 |         143 |        143 |
--------------------------------------------------------------------------------
| Deferred income                      |      3 519 |       2 944 |      2 691 |
--------------------------------------------------------------------------------
| TOTAL CURRENT LIABILITIES            |     16 634 |       8 176 |     12 736 |
--------------------------------------------------------------------------------
|                                      |            |             |            |
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES              |            |             |            |
--------------------------------------------------------------------------------
| Bank loans                           |     69 325 |      74 569 |     71 932 |
--------------------------------------------------------------------------------
| Other payables                       |          8 |           7 |          7 |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT LIABILITIES        |     69 332 |      74 577 |     71 939 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES                    |     85 966 |      82 752 |     84 675 |
--------------------------------------------------------------------------------
|                                      |            |             |            |
--------------------------------------------------------------------------------
| EQUITY CAPITAL                       |            |             |            |
--------------------------------------------------------------------------------
| Share capital                        |     12 782 |      12 782 |     12 782 |
--------------------------------------------------------------------------------
| Share premium                        |     24 734 |      24 734 |     24 734 |
--------------------------------------------------------------------------------
| Statutory legal reserve              |      1 278 |       1 278 |      1 278 |
--------------------------------------------------------------------------------
| Accumulated profit                   |     24 178 |      22 336 |     22 336 |
--------------------------------------------------------------------------------
| Net profit for the period            |     12 982 |      12 519 |     17 757 |
--------------------------------------------------------------------------------
| TOTAL EQUITY CAPITAL                 |     75 955 |      73 649 |     78 887 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES AND EQUITY CAPITAL |    161 921 |     156 402 |    163 562 |
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| CASH FLOW STATEMENT                       | 9 months | 9 months  | 12 months |
--------------------------------------------------------------------------------
| (thousand EUR)                            |   2008   |   2007    |   2007    |
--------------------------------------------------------------------------------
|                                           |          |           |           |
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| CASH FLOWS FROM OPERATING ACTIVITIES      |          |           |           |
--------------------------------------------------------------------------------
| Operating profit                          |   19 260 |    18 149 |    24 118 |
--------------------------------------------------------------------------------
| Adjustment for depreciation               |    4 255 |     3 789 |     5 064 |
--------------------------------------------------------------------------------
| Adjustment for income and expenses from   |     -879 |      -571 |      -911 |
| constructions                             |          |           |           |
--------------------------------------------------------------------------------
| Other financial income and expenses       |      -17 |       -16 |      -101 |
--------------------------------------------------------------------------------
| Profit from sale of fixed assets          |       -8 |         1 |      -155 |
--------------------------------------------------------------------------------
| Expensed fixed assets                     |        0 |         0 |        30 |
--------------------------------------------------------------------------------
| Capitalization of operating expenses      |   -1 127 |      -921 |    -1 263 |
--------------------------------------------------------------------------------
| Movement in current assets involved in    |    1 011 |      -359 |    -2 049 |
| operating activities                      |          |           |           |
--------------------------------------------------------------------------------
| Movement in liabilities involved in       |      -43 |    -1 150 |       -21 |
| operating activities                      |          |           |           |
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| Interest paid                             |   -1 807 |    -1 652 |    -3 386 |
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| Total cash flow from operating activities |   20 645 |    17 270 |    21 326 |
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|                                           |          |           |           |
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| CASH FLOWS FROM INVESTING ACTIVITIES      |          |           |           |
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| Acquisition of fixed assets (incl         |  -12 152 |   -11 540 |   -16 997 |
| pipelines construction)                   |          |           |           |
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| Proceeds from pipelines financed by       |   12 933 |     4 772 |     6 509 |
| construction income                       |          |           |           |
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| Proceeds from sale of and prepayments     |        9 |         1 |        25 |
| received for fixed assets                 |          |           |           |
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| Proceeds from sale of assets and real     |        0 |        15 |        15 |
| estate investments                        |          |           |           |
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| Interest received                         |      797 |       449 |       676 |
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| Total cash flow from investing activities |    1 587 |    -6 303 |    -9 773 |
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|                                           |          |           |           |
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| CASH FLOWS FROM FINANCING ACTIVITIES      |          |           |           |
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| Finance lease payments                    |        0 |       -30 |       -30 |
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| Dividends paid                            |  -15 915 |   -12 527 |   -12 527 |
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| Income tax on dividends                   |   -4 231 |    -3 533 |    -3 533 |
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| Total cash flow from financing activities |  -20 145 |   -16 091 |   -16 091 |
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|                                           |          |           |           |
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| Change in cash and bank accounts          |    2 087 |    -5 123 |    -4 537 |
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|                                           |          |           |           |
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| CASH AND EQUIVALENTS AT THE BEGINNING OF  |   11 403 |    15 940 |    15 940 |
| THE PERIOD                                |          |           |           |
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|                                           |          |           |           |
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| CASH AND EQUIVALENTS AT THE END OF THE    |   13 490 |    10 817 |    11 403 |
| PERIOD                                    |          |           |           |
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