Börsiteade

Pealkiri

Tallinna Vesi’s fourth-quarter sales reached €18.9 million

Teade

The sales of AS Tallinna Vesi in the fourth quarter of 2025 were EUR18.9 million,
up by 5.9% compared to the same period last year. Growth in revenue was mainly
affected by price changes related to investments.

In the fourth quarter, investments amounted to EUR18.6 million, which is 15.6%
more than in the same period of 2024. Aleksandr Timofejev, the CEO of Tallinna
Vesi, said that in the fourth quarter the company moved ahead with planned
investments and was reassured that its earlier environmental investments had put
it on the right track. "The Green Company of the Year award we received at the
end of the year shows that we are making an impact and that we are on the right
track in investing for the future. When planning investments, we must consider
not only future trends and operational continuity, but also the affordability of
water services for consumers. At Tallinna Vesi, we are responsible for providing
drinking water to about half a million people, as well as ensuring that
wastewater is treated in an environmentally friendly way and returned to
nature," said Timofejev. In 2025, Tallinna Vesi invested a total of EUR56 million.

"On the last day of 2025, an exceptional natural event put our crisis plan to
the test, but the team quickly resolved the disruptions that occurred. Once
again, we apologise that many people in Tallinn had to spend New Year's Eve
stocking up on water, which was otherwise readily available from their taps for
all the other 364 days of the year. The water supply was restored to all
consumption points during New Year's Eve. We are analysing technologies to
mitigate the impact of similar natural events and improve customer service based
on this experience," said Aleksandr Timofejev.

The quality of drinking water remained excellent throughout the fourth quarter,
meeting 99.9% of all quality requirements. During the quarter, the company took
1,019 water samples. According to Timofejev, clean tap water is ensured by an
efficient water treatment process, regular monitoring of the water distribution
network and ongoing preventive maintenance activities, as well as timely
investment. Revenue from the sale of water services increased by 7.3% year-on-
year, or EUR1.11 million, to EUR16.33 million. Revenues from the sale of water
services decreased for water services to business customers and increased for
water services to private customers. The change in the sales of water services
was mainly due to the new prices for water services introduced on 1 May. These
prices took into account both the legal obligation to harmonise prices for
private and business customers by 1 July 2026, and the need for investment to
ensure the sustainability of water services.

Tallinna Vesi's annual return on assets was 4.2%. The company's net profit for
the fourth quarter of 2025 was EUR4.51 million, which is an increase of EUR0.36
million compared to the same period the previous year. The growth in net profit
has been driven by operational efficiency and the justified return on
investments made to ensure a clean environment and service continuity.

"The services provided by our subsidiary Watercom and the successful start-up of
the cogeneration plant, which produced 100% of the heat and 59% of the
electricity needed for wastewater treatment, made a significant contribution to
the company's financial results," explained Aleksander Timofejev. The effective
management of treatment processes also had a positive effect on this result.

Tallinna Vesi aims to provide an excellent customer experience, future-proof its
infrastructure and ensure the continuity of the vital service it provides, all
the while keeping the price for the service affordable for consumers.

At the water treatment plant, activities related to the reconstruction of the
osonation stage and the procurement of the new building design are ongoing.

In wastewater treatment, the installation of primary and secondary screens in
the mechanical treatment, upgrading of the biological treatment, reconstruction
of the sludge treatment, and renovation of the secondary clarifiers have been
completed. Investments in the wastewater treatment plant amounted to EUR15.3
million in 2025.

By the end of the fourth quarter, we had rehabilitated and constructed 45.1
kilometres of pipes. Almost half of these, or 22 kilometres, were built using
environmentally friendly no-dig methods. We are working closely with the City of
Tallinn and other partners so that we can complete as much work as possible at
the same time.

In the fourth quarter, major pipe construction work was carried out on Kolde
Avenue as part of the development of a strategic stormwater receiving system for
the North Tallinn area, on Peterburi Road in cooperation with the City of
Tallinn, and on Retke Road in cooperation with Utilitas. Pipe construction also
continued on Paljassaare Road. Construction of the Nõlvaku collector is in its
final stages, with the final works to upgrade ventilation systems underway. Work
started on the reconstruction of water and sewer pipes in Lauteri Street and at
the intersection of Endla and Tehnika streets. The renovation of the water pipes
on Bornhöhe Road, as well as the construction work in Tuukri and Uus-Sadama
streets as part of the extension to the stormwater collector starting from Reidi
Road, has been completed. In cooperation with the City of Tallinn and Utilitas,
the renovation of Värvi and Mustjõe streets was completed.

A stormwater scheme is being developed for the Mustamäe area. The scheme uses
nature-based solutions to ensure longer retention times for stormwater and
create a greener urban environment. These stormwater solutions help to reduce
the risk of flooding during periods of heavy rainfall.

In the fourth quarter, the quality of treated effluent from the Paljassaare
wastewater treatment plant outperformed the effluent standards. To keep the
Baltic Sea clean, the company uses efficient treatment processes that helped to
remove approximately 326 tonnes of solid waste, 55 tonnes of grit, 511 tonnes of
nitrogen and 64 tonnes of phosphorus from wastewater during the fourth quarter
of 2025.

The water loss rate in the water distribution network fell to 11.87% in the
fourth quarter from 12.67% a year earlier. In order to keep water loss rates
low, the company carries out continuous online monitoring of the water
distribution network and continues with its planned water network rehabilitation
programme.

By the end of the fourth quarter of 2025, Tallinna Vesi had installed smart
meters for more than 80 per cent of its customers, with the project due to be
completed in 2026. The new meters provide information on water consumption,
allowing leaks in customers' pipes to be detected as early as possible. This
will help to protect the environment and minimise the risk of property damage
caused by water accidents. The switch to smart meters has received very positive
feedback from customers, and the meters provide the water company with a clear
picture of water consumption in the service area.

As a vital service provider, Tallinna Vesi recognises the importance of raising
consumer awareness of the benefits of fresh tap water and of environmental
protection. In the fourth quarter, we took part in the Impact Day sustainability
festival, and opened the doors of the water treatment plant to the public as
part of the Open House Tallinn architecture event.

We were awarded the title of Green Company of the Year at the Estonian
Successful Companies Awards. The Estonian Waterworks Association recognised two
of our employees and named our cogeneration plant the Water Achievement of the
Year.

AS Tallinna Vesi is the largest water utility in Estonia, providing services to
approximately 25,000 private and business customers and approximately 500,000
end consumers in Tallinn and its surrounding municipalities. Tallinna Vesi is
listed on the main list of the Nasdaq Tallinn Stock Exchange. The largest
shareholdings in the company are held by the City of Tallinn (55.06%) and the
energy group Utilitas (20.36%). 24.58% of the company's shares are freely
floating on the Nasdaq Tallinn Stock Exchange.

Additional information:

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

MAIN FINANCIAL INDICATORS

                   Quarter 4                   12 months
 EUR million                                                       Variance
 except key ratios 2025  2024  2023  2025/2024 2025  2024  2023  2025/2024
-------------------------------------------------------------------------------
 Sales             18.92 17.86 15.68      5.9% 72.48 65.08 61.75          11.4%

 Gross profit       7.93  7.39  5.92      7.3% 29.52 26.72 24.11          10.5%

 Gross profit
 margin %          41.91 41.37 37.76      1.3% 40.73 41.05 39.04          -0.8%

 Operating profit
 before
 depreciation and
 amortisation       8.19  7.52  6.17      9.0% 30.95 27.51 25.40          12.7%

 Operating profit
 before
 depreciation and
 amortisation
 margin %          43.30 42.10 39.37      2.9% 42.70 42.27 41.14           1.0%

 Operating profit   5.65  5.27  4.05      7.2% 21.22 18.98 17.35          11.8%

 Operating profit
 - main business    5.25  4.76  3.55     10.3% 19.87 17.88 15.99          11.1%

 Operating profit
 margin %          29.85 29.51 25.85      1.2% 29.27 29.17 28.10           0.4%

 Profit before
 taxes              4.67  4.27  3.07      9.5% 17.43 14.78 14.21          18.0%

 Profit before
 taxes margin %    24.70 23.89 19.59      3.4% 24.05 22.71 23.01           5.9%

 Net profit         4.51  4.15  2.98      8.7% 14.27 13.28 12.84           7.4%

 Net profit margin
 %                 23.84 23.24 18.98      2.6% 19.69 20.41 20.80          -3.5%

 ROA %              1.28  1.34  1.08     -5.1%  4.21  4.46  3.30          -5.6%

 Debt to total
 capital employed
 %                 66.02 61.71 58.47      7.0% 66.02 61.71 58.47           7.0%

 ROE %              3.71  3.51  2.58      5.6% 11.70 11.20  7.43           4.5%

 Current ratio      0.93  0.76  1.30     22.4%  0.93  0.76  1.30          22.4%

 Quick ratio        0.89  0.70  1.24     27.1%  0.89  0.70  1.24          27.1%

 Investments into
 fixed assets      18.63 16.11 12.09     15.6% 55.74 49.53 34.93          12.5%

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

Gross profit margin - Gross profit / Net sales
Operating profit margin - Operating profit / Net sales
Operating  profit  before  depreciation  and  amortisation  - Operating profit +
depreciation and amortisation
Operating  profit before depreciation and amortisation margin - Operating profit
before depreciation and amortisation / Net sales
Net profit margin - Net profit / Net sales
ROA - Net profit / Average Total assets for the period
Debt to Total capital employed - Total liabilities / Total capital employed
ROE - Net profit / Average Total equity for the period
Current ratio - Current assets / Current liabilities
Quick ratio - (Current assets - Stocks) / Current liabilities
Payout ratio - Total Dividends per annum/ Total Net Income per annum
Main  business - Water services related activities, excl. connections profit and
government grants, construction services, doubtful receivables

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 EUR thousand

                                                      as of             as of
                                                      31 December 31 December
 ASSETS                                          Note 2025               2024



 CURRENT ASSETS
------------------------------------------------------------------------------
   Cash and cash equivalents                      3        11,294       3,589

   Trade receivables, accrued income and
   prepaid expenses                                        10,762      10,746

   Inventories                                              1,163       1,180
------------------------------------------------------------------------------
 TOTAL CURRENT ASSETS                                      23,219      15,515



 NON-CURRENT ASSETS
------------------------------------------------------------------------------
   Property, plant, and equipment                 4       338,654     296,264

   Intangible assets                              5         2,699       2,062
------------------------------------------------------------------------------
 TOTAL NON-CURRENT ASSETS                                 341,353     298,326
------------------------------------------------------------------------------
 TOTAL ASSETS                                             364,572     313,841



 LIABILITIES AND EQUITY



 CURRENT LIABILITIES
------------------------------------------------------------------------------
   Current portion of long-term lease
   liabilities                                                765         875

   Current portion of long-term loans                       3,742       3,441

   Trade and other payables                                17,604      13,581

   Prepayments                                              2,781       2,646
------------------------------------------------------------------------------
 TOTAL CURRENT LIABILITIES                                 24,892      20,543



 NON-CURRENT LIABILITIES
------------------------------------------------------------------------------
   Deferred income from connection fees                    52,112      50,106

   Leases                                                   1,502       2,178

   Loans                                                  155,391     114,241

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

   Deferred tax
   liability                                                  697         494

   Other payables                                             165         108
------------------------------------------------------------------------------
 TOTAL NON-CURRENT LIABILITIES                            215,885     173,145
------------------------------------------------------------------------------
 TOTAL LIABILITIES                                        240,777     193,688



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

   Share premium                                           24,734      24,734

   Statutory legal reserve                                  1,278       1,278

   Retained earnings                                       85,783      82,141
------------------------------------------------------------------------------
 TOTAL EQUITY                                             123,795     120,153
------------------------------------------------------------------------------
 TOTAL LIABILITIES AND EQUITY                             364,572     313,841


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

                                                  for the 12 months ended 31
 EUR thousand                             Quarter 4                    December

                           Note     2025    2024    2025                   2024

 Revenue                   1, 7   18,915  17,855  72,481                 65,078

 Cost of goods and
 services sold             1, 9  -10,988 -10,469 -42,958                -38,364
-------------------------------------------------------------------------------
 GROSS PROFIT              1       7,927   7,386  29,523                 26,714



 Marketing expenses          9      -257   -228     -974                   -908

 General administration
 expenses                    9    -1,788 -1,719   -6,770                 -6,261

 Other income and expenses 1, 10    -236   -171     -562                   -563
-------------------------------------------------------------------------------
 OPERATING
 PROFIT                            5,646  5,268   21,217                 18,982



 Financial income           11        16     23      106                    191

 Financial expenses         11      -991 -1,026   -3,889                 -4,394
-------------------------------------------------------------------------------
 PROFIT BEFORE TAXES               4,671  4,265   17,434                 14,779

 Income tax                         -192   -116   -3,192                 -1,496

 NET PROFIT FOR THE PERIOD         4,479  4,149   14,242                 13,283
-------------------------------------------------------------------------------
  COMPREHENSIVE INCOME FOR THE
             PERIOD                4,479  4,149   14,242                 13,283
-------------------------------------------------------------------------------


 Attributable profit to:
-------------------------------------------------------------------------------
 Equity holders of A-
 shares                            4,479  4,149   14,242                 13,283

 Earnings per A share (in
 euros)                     13      0.22   0.21      0.71                  0.66

CONSOLIDATED STATEMENT OF CASH FLOWS

                                                            for the 12 months
 EUR thousand                                                 ended 31 December

                                                         Note    2025    2024

 CASH FLOWS FROM OPERATING ACTIVITIES
------------------------------------------------------------------------------
   Operating profit                                            21,217  18,982

     Adjustment for depreciation/amortisation             9     9,735   8,526

     Adjustment for revenues from connection fees         7      -770    -701

     Other non-cash adjustments                                    28      32

     Profit (-)/loss (+) from sale of property, plant
     and equipment, and intangible assets                        -115     -62

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

   Change in liabilities involved in operating activities         730   1,652
------------------------------------------------------------------------------
 TOTAL CASH FLOWS FROM OPERATING ACTIVITIES                    30,827  26,247



 CASH FLOWS USED IN INVESTING ACTIVITIES
------------------------------------------------------------------------------
   Acquisition of property, plant, and equipment,
   and intangible assets                                      -53,231 -42,730

   Proceeds from targeted funding of property, plant,
   and equipment.                                        4      5,869       0

   Compensations received for construction of pipelines,
   incl connection fees                                         1,975   1,996

   Proceeds from sale of property, plant and equipment,
   and intangible assets                                          130     111

   Interest received                                     11       106     191
------------------------------------------------------------------------------
 TOTAL CASH FLOWS USED IN INVESTING ACTIVITIES                -45,151 -40,432



 CASH FLOWS USED IN FINANCING ACTIVITIES
------------------------------------------------------------------------------
   Interest and loan financing costs paid                      -4,934  -5,506

   Lease payments                                                -876  -1,144

   Loans received                                              45,000  25,000

   Repayment of loans                                          -3,571  -3,604

   Dividends paid                                        12   -10,600 -10,069

   Withheld income tax paid on dividends                 12         0    -131

   Income tax paid on dividends                          12    -2,990  -1,508
------------------------------------------------------------------------------
 TOTAL CASH FLOWS USED IN FINANCING ACTIVITIES                 22,029   3,038


------------------------------------------------------------------------------
 CHANGE IN CASH AND CASH EQUIVALENTS                            7,705 -11,147


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


------------------------------------------------------------------------------
 CASH AND CASH EQUIVALENTS AT THE END
 OF THE PERIOD                                            3    11,294   3,589