Börsiteade
AS TALLINNA VESI
Kategooria
Majandusaasta aruanne
Manused
Kuupäev
12.03.2008 08:00:00
Pealkiri
2007.A. MAJANDUSTULEMUSED, AUDITEERITUD
Teade
JUHATUSE ESIMEHE PÖÖRDUMINE 2007. aasta tulemused olid AS-i Tallinna Vesi (edaspidi Ettevõte) jaoks head, Ettevõte liikus stabiilselt strateegiliste eesmärkide täitmise suunas. Paranenud on klienditeeninduse tase - seda näitavad sõltumatu rahulolu-uuringu tulemused; tõusnud on Ettevõtte tootmisefektiivsus - oleme saavutanud läbi aegade parima joogivee ja puhastatud heitvee kvaliteedi; alustatud on uute ettevõtmistega - soovime jätkuvalt kasvada; suutsime tagada tugevad majandustulemused - saavutasime kasvu nii käibes kui kasumis. Klienditeeninduse kõrge tase Kõrgel tasemel klienditeeninduse pakkumine on Ettevõtte peamine eesmärk. Meil on hea meel, et 2007. aasta lõpus sõltumatu uuringufirma TNS Emori poolt läbiviidud kliendirahulolu-uuring näitas märkimisväärseid edusamme kliendisuhetes. Kliendirahulolu tähistav indeks oli 100-pallisel skaalal tõusnud 73-lt 79-le, mis asetab Ettevõtte teiste maailma kommunaalteenuste pakkujatega võrreldes esimese 10% hulka. Sellele on eelnenud palju tööd. Lisaks kliendikesksuse vajalikkuse rõhutamisele, oleme Ettevõttes välja töötanud ja rakendanud täiendavaid vahendeid ning teinud ümberkorraldusi kogu organisatsioonis. Pärast uue kliendihaldussüsteemi kasutuselevõtmist 2006. aastal töötasime 2007. aasta alguses välja veebipõhise iseteeninduse, võimaldades klientidel lihtsamini oma kontot hallata. Uute arvelduse funktsionaalsustega (otsekorraldus, e-arve) iseteenindus on osutunud väga edukaks. Samuti oleme üle vaadanud ettevõttesisese töökorralduse. Hinnates meie tegevust klientide seisukohast, oleme analüüsinud klienditeenindusega seotud protsesse ning täiustanud kliendi- ja süsteemihaldusega seotud tegevusi. Seeläbi suudame igakülgselt toetada sisemisi tegevusi, mis on aluseks kvaliteetsele klienditeenindusele. Ettevõttena, kelle toode mõjutab ühe kolmandiku Eesti elanikkonna igapäevaelu, on meil väga eriline vastutus klientide, ühiskonna ja keskkonna ees. Kvaliteetsete toodete ja teenuste osutamise kõrval jätkame panustamist ühiskonda, toetades sotsiaal- ja haridusprojekte. Sel aastal valmis veeringlusest jutustav, hariv arvutimäng ‘Rändur Tilk', mida jagatakse kõikidele koolidele üle Eesti, eesmärgiga tõsta noorte keskkonnateadlikkust. Tootmistulemuste kõrge kvaliteet Ettevõtte meeskonda tuleb 2007. aastal tunnustada mitmete kordaminekute eest, mis tõstsid oluliselt tootmistegevuse kvaliteeti ja efektiivsust. Klientideni jõudva joogivee kvaliteet oli läbi aegade parim ning see näitaja on üks olulisimaid kliendirahulolu mõjutajaid. Ettevõte jätkuvaks eesmärgiks on tõsta joogivee kvaliteeti kogu puhastusprotsessi ulatuses: alates valgalast ja veepuhastusjaamast kuni veevõrgu opereerimiseni otsivad meie meeskonnad kõikvõimalikke viise joogivee kvaliteedi jätkuvaks parandamiseks. Ka puhastatud heitvee kvaliteet oli 2007. aastal kõrgem kui eales varem. Tänu viimaste aastate ulatuslikele investeeringutele reoveepuhastusjaamas (eriti lämmastikueralduse tõhustamiseks ja reoveesette töötlemise täiustamiseks) ja meeskonna professionaalsetele oskustele suudab Ettevõte puhastada pealinna ja ümberkaudsete valdade reovett tasemel, mis vastab täielikult Euroopa Liidu standarditele. Töötajate töötervishoid ja -ohutus on meie jaoks esmane. Pärast edukat auditit 2007. aasta maikuus pälvis Ettevõte rahvusvahelise töötervishoiu ja -ohutuse juhtimissüsteemi (OHSAS) sertifikaadi. See on suurepärane tunnustus töötingimuste parendamise suunal tehtud tööle, kuid enamgi veel annab rõõmustamiseks põhjust asjaolu, et 2007. aastal ei toimunud Ettevõttes ühtegi tööõnnetust. Oleme saavutanud efektiivsuse tõusu tootmises peamiselt kahe teguri koosmõjul: meie töötajate pühendumine ning 2007. ja eelnevatel aastatel täidetud investeeringute kava. Eelmisel aastal jätkasime suuremahuliste investeeringute (285 miljonit krooni) suunamisega joogivee kvaliteeti. Need investeeringud hõlmasid valgalal ja veepuhastusjaamas tehtud parendusi ning veevõrgu pidevat uuendamist. Samuti investeerisime reovee puhastamisesse, viies lõpule lämmastikuprojekti, mis pälvis ka Keskkonnaministeeriumi heakskiidu. Edukalt lõpetatud lämmastikuprojekt ja valminud reoveesettekäitluse hoone võimaldavad meil hoida puhastatud reovee kvaliteeti kontrolli all. Eelpoolmainitud investeeringute abil tõstsime tootmisefektiivsust ja meie toote kvaliteeti, mis toob kaasa keskkonnamõjude vähenemise. See väljendub Tallinna lahte juhitava puhastatud heitvee kõrges kvaliteedis ja täielikus nõuetega vastavuses, kogu reoveesette ümbertöötlemises reoveesetteseguks, veeressursside paremas kasutamises ning kontrollis leketest tuleneva veekao hulga üle. Keskkonnast hoolimine on oluliseks osaks meie igapäevasest tegevusest nii praegu kui ka tulevikus. Ettevõtte tegevuse laiendamine Meie sooviks on laiendada Ettevõtte tegevust, kasutades seejuures ära meie peamisi kompetentse vee- ja kanalisatsioonirajatiste haldamisel. 2007. aastal tõi Ettevõte turule kaubamärgi ‘Veemees', mille teenused on tihedalt seotud meie põhitegevusega. ‘Veemees' tegutseb klientide torustikel, andes majaomanikele nõu torustike hooldamiseks ning teostades väikesemahulisi kinnistu- ja majasiseseid torustike ehitustöid. 2007. aastal jäi tegevusmaht tagasihoidlikuks, kuid eeldame selle kasvamist lähtuvalt klientide nõudlusest. 2007. aastal jätkasime Tallinna vee- ja kanalisatsioonitorustike laiendamist, kokku rajasime 14,9 km uut torustikku. Samuti jätkasime sademeveevõrgu laiendamisega, rajades lisaks 10,4 km torustikku. Selline ehitustegevus parandab klientidele pakutavat teenust, laiendab meie tegevusala ja aitab kaitsta keskkonda. Ettevõtte arendustegevus hõlmab koostööd Tallinna ümberkaudsete valdadega. Meie vee- ja reoveepuhastusjaamadel on kasutamata võimsust, mistõttu saame lähivaldadele pakkuda suurel hulgal Euroopa Liidu standarditele vastavaid kvaliteetseid joogiveega varustamise ning reovee ärajuhtimise ja puhastamise teenuseid. Seni oleme neid teenuseid osutanud Ettevõtte vee- ja kanalisatsioonivõrgu ning valdade territooriumite vahele rajatud liitumispunktide kaudu. Järgnevatel aastatel oleme valmis laiendama senist koostööd, et aidata Tallinna lähivaldadel oma arenguplaane ellu viia. Ettevõtte väärtuse suurendamine 2007. aastal tehti muudatused Ettevõtte ja Tallinna linna õigusi ja kohustusi sätestavas Teenuslepingus. Need muudatused kiirendavad oluliselt veevarustuse ja kanalisatsiooni väljaehitamist ning tagavad Tallinna kanaliseerimise 2011. aasta märtsiks (hetkel on kanaliseeritud 97% linnast). Lepingumuudatused seavad vastutuse kava täitmise eest Ettevõttele. Ühtlasi on kuni lepingu kehtivuse pikendatud tähtaja, 2020. aastani, fikseeritud K-koefitsient, mille kaudu on tagatud Ettevõtte kasumlikkuse taseme järjepidevus ja tulude ennustatavus. 2007. aasta majandustulemused olid head ja püsivas arengus, võrreldes 2006. aastaga kasvas Ettevõtte käive 18,4% võrra ja maksustamiseelne kasum suurenes 12,9%. Kuigi Ettevõtte müügimahud eraklientidele ei muutunud ja seoses tootmiskliendi ümberasumisega Tallinnast väljapoole toimus väike langus äriklientide suunal, liikusid Tallinna lähivaldade müügimahud tõusvas suunas, peegeldades nendes valdades toimuvat aktiivset arendustegevust. Liitumistegevus on samuti olnud väga dünaamiline - vastav käive kasvas 2007. aastal 65,7%. Kokku kasvas Ettevõtte müügitulu 820,8 miljoni kroonini. Ettevõte hoidis vaatamata kõrgele inflatsioonile edukalt kulusid kontrolli all ning müüdud toodete ja teenuste kulu vähenes 1,75% võrra. Arvestamata mitteperioodilisi tulusid ja kulusid, oleks põhitegevusega seotud müüdud toodete ja teenuste kulud kasvanud 4,5%. See on märkimisväärselt hea tulemus, arvestades mõnede kulukirjetega, nagu näiteks palgad, seotud kõrget inflatsiooni taset Eestis. Selline tulemus saavutati tänu tõhusale kulukontrollile ning pidevale efektiivsuse suurendamisele. Ettevõtte poolt aktsionäridele väljamakstavad dividendid kasvasid 2007. aastal 25%. Samuti on hea meel tõdeda, et Ettevõtet tegevus pälvis asjatundjate tunnustuse. Eesti Kaubandus- ja Tööstuskoda ning Eesti Tööandjate Keskliit valisid Ettevõtte ‘Konkurentsivõimelisimaks teenindusettevõtteks' Eestis. Pühendume jätkuvalt kõrgete juhtimisstandardite saavutamisele. Meie eesmärk on olla läbipaistev oma tegevuses, juhtimises, tulemuste avaldamises ning suhetes aktsionäridega ja huvigruppidega. Sarnaselt varasematele aastatele, pälvisime ka 2007. aastal rahandusringkondade tunnustuse - OMX Balti Börsid tõstsid Ettevõtte esile meie investorsuhete kvaliteedi poolest. Meeskondlik panus Kõik eelpoolmainitu on saanud võimalikuks ainult tänu Ettevõtte meeskonna suurepärasele panusele. Siinkohal soovin avaldada tunnustust meie töötajatele nende pühendumuse eest. 2007. aastal läbiviidud uuring näitas, et töötajate pühendumine on kasvanud 10%. See on väga positiivne tulemus, mis innustab meid tegelema edasi personalistrateegiaga, et tulemuste paranemise trend ka järgmistel aastatel jätkuks. 2007. aastal investeerisime olulisel määral aega ja energiat personalistrateegiasse ja -poliitikasse ning sõnastasime uued Ettevõtte väärtused, milleks on: Pühendumine Kliendikesksus Meeskonnatöö Loovus Usume, et uute väärtustega kooskõlas oleva käitumisega suudame saavutada Ettevõtte strateegilised eesmärgid. 2008. aasta algusest rakendub uus sooritusel põhinev tasustamissüsteem, mis võtab arvesse ka seda, kuidas töötajad väärtusi järgivad. Meil on selge visioon Ettevõtte tulevikust. Selle visiooni saavutamiseks oleme pannud paika pikaajalised strateegilised eesmärgid. Nendest tulenevad aasta eesmärgid, mis omakorda jaotatakse töötajate individuaalseteks eesmärkideks. Ettevõtte töösoorituse hindamise süsteem hõlmab kõiki eelnimetatud etappe. Kuna see lähenemine on heade tulemuste saavutamisel osutunud vägagi edukaks, jätkame selle rakendamist ka 2008. aastal. Kokkuvõttes oli 2007. aastal Ettevõtte jaoks hea, millele viitavad ka tugevad majandustulemused. Tänu sellele on meil kindel stardipositsioon uueks aastaks ja tugevam vundament kaugemaks tulevikuks. Ka 2008. aastal keskendume Ettevõtte strateegilistele eesmärkidele ja meie sihiks on saavutada suurepärased tulemused kõikidel tegevussuundadel. -------------------------------------------------------------------------------- | KASUMIARUANNE (tuhat EEK) | 2007 | 2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Põhitegevuse tulud | 648 335 | 589 176 | -------------------------------------------------------------------------------- | Põhitegevusega seotud muud tulud | 172 437 | 104 048 | -------------------------------------------------------------------------------- | Müügitulu | 820 772 | 693 224 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Müüdud toodete/teenuste kulud | -216 677 | -220 537 | -------------------------------------------------------------------------------- | Põhitegevusega seotud muud kulud | -158 187 | -97 096 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | BRUTOKASUM | 445 908 | 375 591 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Turustuskulud | -13 547 | -9 578 | -------------------------------------------------------------------------------- | Üldhalduskulud | -56 849 | -51 319 | -------------------------------------------------------------------------------- | Muud äritulud/-kulud (-) | 1 850 | 23 229 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ÄRIKASUM | 377 362 | 337 923 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Finantstulud/-kulud (-) | -44 237 | -42 981 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | KASUM ENNE TULUMAKSUSTAMIST | 333 125 | 294 942 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Dividendide tulumaks | -55 285 | -46 896 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | PERIOODI PUHASKASUM | 277 840 | 248 046 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Jaotatav: | | | -------------------------------------------------------------------------------- | A- aktsia omanikele | 277 830 | 248 036 | -------------------------------------------------------------------------------- | B- aktsia omanikule | 10 | 10 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Kasum aktsia kohta kroonides | 13,89 | 12,40 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | BILANSS (tuhat EEK) | 2007 | 2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | VARAD | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | KÄIBEVARA | | | -------------------------------------------------------------------------------- | Raha ja raha ekvivalendid kokku | 178 420 | 249 413 | -------------------------------------------------------------------------------- | Nõuded ostjate vastu | 185 223 | 71 490 | -------------------------------------------------------------------------------- | Viitlaekumised ja ettemaksed | 5 179 | 4 756 | -------------------------------------------------------------------------------- | Varud | 3 645 | 3 142 | -------------------------------------------------------------------------------- | Varad müügiks | 1 120 | 1 648 | -------------------------------------------------------------------------------- | KOKKU KÄIBEVARA | 373 587 | 330 449 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | PÕHIVARA | | | -------------------------------------------------------------------------------- | Materiaalne põhivara | 1 992 978 | 1 877 105 | -------------------------------------------------------------------------------- | Immateriaalne põhivara | 49 137 | 52 595 | -------------------------------------------------------------------------------- | Lõpetamata varad - v.a. liitumis-ehitused | 48 034 | 91 676 | -------------------------------------------------------------------------------- | Lõpetamata torustikud - uued liitumised | 90 057 | 117 162 | -------------------------------------------------------------------------------- | Ettemaksed materiaalse põhivara eest | 5 399 | 2 795 | -------------------------------------------------------------------------------- | KOKKU PÕHIVARA | 2 185 605 | 2 141 333 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | VARAD KOKKU | 2 559 192 | 2 471 782 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | KOHUSTUSED JA OMAKAPITAL | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | LÜHIAJALISED KOHUSTUSED | | | -------------------------------------------------------------------------------- | Pikaajaliste laenukohustuste lühiajaline osa | 41 486 | 473 | -------------------------------------------------------------------------------- | Hankijate ja muud võlad | 86 966 | 85 250 | -------------------------------------------------------------------------------- | Maksuvõlad | 26 486 | 30 508 | -------------------------------------------------------------------------------- | Lühiajalised eraldised | 2 231 | 538 | -------------------------------------------------------------------------------- | Tulevaste perioodide tulud | 42 099 | 36 325 | -------------------------------------------------------------------------------- | LÜHIAJALISED KOHUSTUSED KOKKU | 199 268 | 153 094 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | PIKAAJALISED KOHUSTUSED | | | -------------------------------------------------------------------------------- | Laenukohustused | 1 125 491 | 1 166 098 | -------------------------------------------------------------------------------- | Muud võlad | 113 | 100 | -------------------------------------------------------------------------------- | PIKAAJALISED KOHUSTUSED KOKKU | 1 125 604 | 1 166 198 | -------------------------------------------------------------------------------- | KOKKU KOHUSTUSED | 1 324 872 | 1 319 292 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | OMAKAPITAL | | | -------------------------------------------------------------------------------- | Aktsiakapital | 200 001 | 200 001 | -------------------------------------------------------------------------------- | Ülekurss | 387 000 | 387 000 | -------------------------------------------------------------------------------- | Kohustuslik reservkapital | 20 000 | 20 000 | -------------------------------------------------------------------------------- | Eelmiste perioodide kogunenud kasum | 349 479 | 297 443 | -------------------------------------------------------------------------------- | Perioodi puhaskasum | 277 840 | 248 046 | -------------------------------------------------------------------------------- | KOKKU OMAKAPITAL | 1 234 320 | 1 152 490 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | KOHUSTUSED JA OMAKAPITAL KOKKU | 2 559 192 | 2 471 782 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | RAHAKÄIBE ARUANNE (tuhat EEK) | 2007 | 2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ÄRITEGEVUSE RAHAKÄIVE | | | -------------------------------------------------------------------------------- | Ärikasum | 377 362 | 337 923 | -------------------------------------------------------------------------------- | Korrigeerimine kulumiga | 79 241 | 81 047 | -------------------------------------------------------------------------------- | Korrigeerimine rajamistulude ja -kuludega | -14 250 | -6 952 | -------------------------------------------------------------------------------- | Muud finantstulud ja -kulud | -1 585 | -536 | -------------------------------------------------------------------------------- | Kasum põhivara müügist | -2 422 | -24 917 | -------------------------------------------------------------------------------- | Kuluks kantud põhivarad | 476 | 1 106 | -------------------------------------------------------------------------------- | Tegevuskuludest kapitaliseeritud põhivaraks | -19 764 | -20 921 | -------------------------------------------------------------------------------- | Äritegevusega seotud käibevara muutus | -32 062 | -4 142 | -------------------------------------------------------------------------------- | Äritegevusega seotud kohustuste muutus | -327 | 5 994 | -------------------------------------------------------------------------------- | Makstud intressid | -52 986 | -48 051 | -------------------------------------------------------------------------------- | Rahajäägi muutus äritegevusest | 333 683 | 320 551 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | INVESTEERIMISTEGEVUSE RAHAKÄIVE | | | -------------------------------------------------------------------------------- | Põhivara soetamine, sh liitumisehitised | -265 951 | -192 048 | -------------------------------------------------------------------------------- | Rajamistasudest finantseeritavate torustike eest | 101 840 | 112 662 | | laekumine | | | -------------------------------------------------------------------------------- | Põhivara müügitulu ja saadud/tagastatud(-) | 390 | -1 293 | | ettemaksed | | | -------------------------------------------------------------------------------- | Müügiootel vara ja kinnisvarainvesteeringu | 242 | 1 107 | | müügitulu | | | -------------------------------------------------------------------------------- | Saadud intressid | 10 571 | 6 545 | -------------------------------------------------------------------------------- | Rahajäägi muutus investeerimistegevusest | -152 908 | -73 027 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | FINANTSEERIMISTEGEVUSE RAHAKÄIVE | | | -------------------------------------------------------------------------------- | Tasutud kapitalirendi maksed | -473 | -1 282 | -------------------------------------------------------------------------------- | Tasutud dividendid | -196 010 | -157 000 | -------------------------------------------------------------------------------- | Tulumaks dividendidelt | -55 285 | -46 896 | -------------------------------------------------------------------------------- | Rahajäägi muutus finantseerimistegevusest | -251 768 | -205 178 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Rahajäägi kogumuutus | -70 993 | 42 346 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | RAHA JA RAHA EKVIVALENDID PERIOODI ALGUSES | 249 413 | 207 067 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | RAHA JA RAHA EKVIVALENDID PERIOODI LÕPUS | 178 420 | 249 413 | -------------------------------------------------------------------------------- Lisainformatsioon: Siiri Lahe Finantsdirektor +372 6262 262 siiri.lahe@tvesi.ee
Pealkiri
AUDITED RESULTS OF OPERATIONS - 2007
Teade
CHAIRMAN'S STATEMENT In 2007, Tallinna Vesi made steady progress on its route towards its strategic objectives and delivered good results. Customer service has improved as clearly demonstrated by the results of the independent satisfaction survey, operational efficiency has improved with the achievement of our best ever water and treated effluent quality, the Company has launched a new activity demonstrating its will to grow, and finally a solid set of financial results, with growth in turnover and profit. Customer Service Excellence Providing our Customers with excellent service is a prime objective for the Company. We are pleased that the customer satisfaction survey independently carried out by TNS Emor at the end of 2007 demonstrated a significant improvement regarding customer relationships. The index indicating customer satisfaction has increased from 73 to 79 on a scale of 100, this places the company in the top 10% of world utility companies. A lot has been done to achieve this improvement. Beside the educational message continuously circulated across the Company about the need for customer focus, we have developed and implemented some additional tools and restructured our organization. Following the new Customer Management System that went live in 2006, we developed in early 2007 a web based interface, giving our clients more possibilities to easily manage their accounts. This interface, along with new billing functionalities (direct debit, e-invoice) has had tremendous success. The internal organization has also been reviewed. Looking at our activities from a customer point of view, client related processes have been analysed and the customer and network management activities have been reorganized to better support these processes and deliver better customer service. Being an environmental company and dealing with a product that impacts the life of one third of the Estonian population every day, we have a very special responsibility towards our clients, the Community and the Environment. Besides focusing on the quality of product and the quality of service, we have further engaged with the Community, supporting social and educational projects. We have this year completed ‘Randur Tilk' a computer based educational game about water. This game will be distributed to all schools in Estonia with the aim to raise the environmental awareness of the younger generation. Operational Excellence The team greatly improved the quality and efficiency of operation and can be credited with several real successes. The water quality delivered to our customers was the highest ever achieved. We know that this is one of the most important factors for the satisfaction of our clients. Each day, throughout the process: from catchment area to water network operation via water treatment plant in a joint effort the teams are looking for every possible way to improve the water quality even further. The quality of the treated effluent was also the highest ever achieved. The large investments carried out during the last years in the wastewater treatment plant (particularly to treat nitrogen pollution and to improve sludge processing) coupled with the highly professional skills of the team enable us to treat the pollution of the Capital city and its surrounding municipalities to a level that is fully compliant with EU standards. Health and Safety of our people is of paramount importance for us. In 2007, international occupational health and safety management system (OHSAS) certificate was awarded to the Company after a successful audit in May. This is great recognition for the work that has been done to improve the working conditions of our staff, but we are even more proud of the fact that in 2007 there were simply no work accidents. Being able to improve our operation efficiency results from a combination of two factors: the commitment of our people and the large investment programme that we have carried out in 2007 and during the previous years. In 2007 we have continued to invest heavily (285 mln kroons) on water quality, with improvements made in the catchment area, the water treatment plant and continuous renewal of our distribution network. We have also invested in wastewater treatment with the completion of the nitrogen treatment project. This project received the final approval of the Ministry of Environment and together with the completion of the sludge treatment plant we are able to keep under control the quality of the treated effluent. These investments give us the possibility to improve our operational efficiency and the quality of our product, and in addition they also help us to reduce our environmental impact. This is apparent in the high quality and fully compliant treated effluent discharged to Tallinn Bay, full reuse of sludge as soil conditioner and better use of the water resource with control of the amount of water lost in leakages. Taking care of the environment is something that we have included in our actions and will continue to do in the future. Growing the activity of the Company One of our ambitions is to grow the activity of the Company by focussing on our core competences and developing our core business: management of water and wastewater assets. In 2007 we have launched the trademark ‘Veemees' (Waterman). This activity is very closely linked to our core activity. Veemees is operating on the private side of the connection and proposes to our clients to take care of their plumbing problems, small pipe construction works inside their plots and houses. The volume of activity remained modest in 2007 but we expect it to grow because it corresponds to a real demand from clients. Our work to bring public water and sewerage network to the citizens of Tallinn has continued in 2007, and we have laid down another 14.9 km of pipe. We have also continued to extend the stormwater network by an additional 10.4 km. This construction activity will improve the service to customers, enlarge our area of activity but also improve the protection of the environment. Our cooperation with the municipalities surrounding Tallinn is an important component of our development activity. With spare capacity at our plants, we can provide the surrounding municipalities with a large quantity of good quality, EU compliant water and we can collect their effluent and treat it to EU standards. Physical connections have been built between our network and the territories of the municipalities, we are already providing water and receiving wastewater and we are ready to accompany the surrounding municipalities in their development during the following years. Delivering Shareholder Value An important milestone was delivered in 2007 with the signing of the amendment to the Services Agreement which sets the rights and obligation of the Company and the City of Tallinn. The amendments shall significantly accelerate the construction of the sewerage network and ensure its provision for the City by March 2011 (currently 97% of the City is covered with sewerage network). The amendment to the Agreement places the responsibility for the delivery of the programme on the Company. This amendment ensures an excellent visibility for the revenue of the company until 2020, extended term of the agreement, and sustainability of the profitability level as the K-coefficient is fixed until the end of the contract period. The financial results of 2007 have been good, in steady progress compared to 2006, with turnover increased by 18.4% and profit before tax increased by 12.9%. In terms of revenue, the volumes sold to domestic customers were almost constant and a small decrease was registered from the commercial customers mainly due to one industrial consumer leaving Tallinn. The volumes from the surrounding municipalities have shown a good increase reflecting the intense development of these areas. The connection activity was also very dynamic generating a 65.7% increase in turnover. Overall the total revenue increased to 820.8 mln kroons. The Company has been successful in managing its cost despite an inflationary environment. Cost of goods sold has decreased by 1.75%. When taking out the exceptional items, the underlying increase of cost of goods sold would have been 4.5%, which is a remarkable performance considering the inflationary situation of some items (especially wages) in Estonia. This was achieved by a strong cost control culture and a constant focus on efficient improvement. In 2007, the Company increased its dividend payment to shareholder by 25%. It was great that the Company was recognized by its peers and awarded the title of ‘Most Competitive Service Company' in Estonia by the Estonian Chamber of Commerce and Industry and the Estonian Employer's Confederation. The Company stays committed to achieve high standards of corporate governance. Our aim is to be transparent in our ways of working, corporate disclosures and relation with shareholders and stakeholders. Once again in 2007 this was recognized by the financial community as the Company was nominated by the OMX Baltic Stock Exchange for the quality of its investor relations. A Team effort All this has only been possible because of the fantastic effort the team has put into the Company and I want to pay tribute to them for their commitment. The employee opinion survey carried out in 2007 has seen the index increasing by 10%. This is a very positive result, and we will continue to work on our human resource strategy to improve further this result. In 2007, we invested significant time and energy on our human resource strategy and policy and have developed a set of values: Commitment Customer Focus Teamwork Creativity We do believe that behaving according to these values will strongly support the achievement of our strategic objectives. A new remuneration system, based on performance achievement, will be implemented from the beginning of 2008. It includes an assessment on behaviour and how we live our values. We have a clear vision for the future of the Company. To achieve this vision we have set clear long term strategic objectives. We set every year Company's annual objectives derived from the strategic objectives, and finally we cascade down these company's objectives into individual objectives. This is the heart of our performance management system and it has proven to be an efficient way to drive the Company towards success. We will continue to use this methodology in 2008. All in all, in 2007, the Company performed well and delivered good results. This is another step in building a strong foundation for the future. In 2008, with our strategic objectives as a target, we will continue to stay focussed on delivering a high level of performance. -------------------------------------------------------------------------------- | INCOME STATEMENT (thousand EEK) | 2007 | 2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Sales from main operating activities | 648 335 | 589 176 | -------------------------------------------------------------------------------- | Revenues from other operating activities | 172 437 | 104 048 | -------------------------------------------------------------------------------- | Net sales | 820 772 | 693 224 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Costs of goods sold (main operating activities) | -216 677 | -220 537 | -------------------------------------------------------------------------------- | Costs of goods sold (other operating activities) | -158 187 | -97 096 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | GROSS PROFIT | 445 908 | 375 591 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Marketing expenses | -13 547 | -9 578 | -------------------------------------------------------------------------------- | General administration expenses | -56 849 | -51 319 | -------------------------------------------------------------------------------- | Other income/ expenses (-) | 1 850 | 23 229 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | OPERATING PROFIT | 377 362 | 337 923 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Financial income / expenses (-) | -44 237 | -42 981 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | PROFIT BEFORE TAXES | 333 125 | 294 942 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Income tax on dividends | -55 285 | -46 896 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET PROFIT FOR THE PERIOD | 277 840 | 248 046 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Attributable to: | | | -------------------------------------------------------------------------------- | Equity holders of A-shares | 277 830 | 248 036 | -------------------------------------------------------------------------------- | B-share holder | 10 | 10 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share in kroons | 13,89 | 12,40 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | BALANCE SHEET (thousand EEK) | 2007 | 2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ASSETS | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CURRENT ASSETS | | | -------------------------------------------------------------------------------- | Cash and equivalents | 178 420 | 249 413 | -------------------------------------------------------------------------------- | Customer receivables | 185 223 | 71 490 | -------------------------------------------------------------------------------- | Accrued income and prepaid expenses | 5 179 | 4 756 | -------------------------------------------------------------------------------- | Inventories | 3 645 | 3 142 | -------------------------------------------------------------------------------- | Assets for sale | 1 120 | 1 648 | -------------------------------------------------------------------------------- | TOTAL CURRENT ASSETS | 373 587 | 330 449 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NON-CURRENT ASSETS | | | -------------------------------------------------------------------------------- | Tangible assets | 1 992 978 | 1 877 105 | -------------------------------------------------------------------------------- | Intangible assets | 49 137 | 52 595 | -------------------------------------------------------------------------------- | Unfinished assets - non connections | 48 034 | 91 676 | -------------------------------------------------------------------------------- | Unfinished pipelines - new connections | 90 057 | 117 162 | -------------------------------------------------------------------------------- | Prepayments for fixed assets | 5 399 | 2 795 | -------------------------------------------------------------------------------- | TOTAL NON-CURRENT ASSETS | 2 185 605 | 2 141 333 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | TOTAL ASSETS | 2 559 192 | 2 471 782 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | LIABILITIES AND EQUITY | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CURRENT LIABILITIES | | | -------------------------------------------------------------------------------- | Current portion of long-term borrowings | 41 486 | 473 | -------------------------------------------------------------------------------- | Trade and other payables | 86 966 | 85 250 | -------------------------------------------------------------------------------- | Taxes payable | 26 486 | 30 508 | -------------------------------------------------------------------------------- | Short-term provisions | 2 231 | 538 | -------------------------------------------------------------------------------- | Deferred income | 42 099 | 36 325 | -------------------------------------------------------------------------------- | TOTAL CURRENT LIABILITIES | 199 268 | 153 094 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NON-CURRENT LIABILITIES | | | -------------------------------------------------------------------------------- | Borrowings | 1 125 491 | 1 166 098 | -------------------------------------------------------------------------------- | Other payables | 113 | 100 | -------------------------------------------------------------------------------- | TOTAL NON-CURRENT LIABILITIES | 1 125 604 | 1 166 198 | -------------------------------------------------------------------------------- | TOTAL LIABILITIES | 1 324 872 | 1 319 292 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EQUITY | | | -------------------------------------------------------------------------------- | Share capital | 200 001 | 200 001 | -------------------------------------------------------------------------------- | Share premium | 387 000 | 387 000 | -------------------------------------------------------------------------------- | Statutory legal reserve | 20 000 | 20 000 | -------------------------------------------------------------------------------- | Accumulated profit | 349 479 | 297 443 | -------------------------------------------------------------------------------- | Net profit for the period | 277 840 | 248 046 | -------------------------------------------------------------------------------- | TOTAL EQUITY | 1 234 320 | 1 152 490 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | TOTAL LIABILITIES AND EQUITY | 2 559 192 | 2 471 782 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CASH FLOW STATEMENT (thousand EEK) | 2007 | 2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CASH FLOWS FROM OPERATING ACTIVITIES | | | -------------------------------------------------------------------------------- | Operating profit | 377 362 | 337 923 | -------------------------------------------------------------------------------- | Adjustment for depreciation | 79 241 | 81 047 | -------------------------------------------------------------------------------- | Adjustment for income and expenses from | -14 250 | -6 952 | | constructions | | | -------------------------------------------------------------------------------- | Other financial income and expenses | -1 585 | -536 | -------------------------------------------------------------------------------- | Profit from sale of fixed assets | -2 422 | -24 917 | -------------------------------------------------------------------------------- | Expensed fixed assets | 476 | 1 106 | -------------------------------------------------------------------------------- | Capitalization of operating expenses | -19 764 | -20 921 | -------------------------------------------------------------------------------- | Change in current assets involved in operating | -32 062 | -4 142 | | activities | | | -------------------------------------------------------------------------------- | Change in liabilities involved in operating | -327 | 5 994 | | activities | | | -------------------------------------------------------------------------------- | Interest paid | -52 986 | -48 051 | -------------------------------------------------------------------------------- | Total cash flow from operating activities | 333 683 | 320 551 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CASH FLOWS FROM INVESTING ACTIVITIES | | | -------------------------------------------------------------------------------- | Acquisition of fixed assets (incl pipelines | -265 951 | -192 048 | | construction) | | | -------------------------------------------------------------------------------- | Proceeds from pipelines financed by construction | 101 840 | 112 662 | | income | | | -------------------------------------------------------------------------------- | Proceeds from sale of and prepayments received/ | 390 | -1 293 | | repaid(-) for fixed assets | | | -------------------------------------------------------------------------------- | Proceeds from sale of assets for sale and of real | 242 | 1 107 | | estate investments | | | -------------------------------------------------------------------------------- | Interest received | 10 571 | 6 545 | -------------------------------------------------------------------------------- | Total cash flow used in investing activities | -152 908 | -73 027 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CASH FLOWS FROM FINANCING ACTIVITIES | | | -------------------------------------------------------------------------------- | Finance lease payments | -473 | -1 282 | -------------------------------------------------------------------------------- | Dividends paid | -196 010 | -157 000 | -------------------------------------------------------------------------------- | Income tax on dividends | -55 285 | -46 896 | -------------------------------------------------------------------------------- | Total cash flow used in financing activities | -251 768 | -205 178 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Change in cash and bank accounts | -70 993 | 42 346 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CASH AND EQUIVALENTS AT THE BEGINNING OF THE | 249 413 | 207 067 | | PERIOD | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CASH AND EQUIVALENTS AT THE END OF THE PERIOD | 178 420 | 249 413 | -------------------------------------------------------------------------------- Additional information: Siiri Lahe Chief Financial Officer +372 6262 262 siiri.lahe@tvesi.ee