Börsiteade

Pealkiri

Results of operations for the 4th quarter 2009 (EUR)

Teade

MANAGEMENT REPORT                                                               
RESULTS OF OPERATIONS - FOR THE 4th QUARTER 2009                                


Overview                                                                        

During the twelve months of 2009 the Company's total sales increased, year on   
year, by 7.3% to 49.4 mln EUR. The Company's underlying operating profit for    
twelve months of 2009, from water and wastewater related activities, increased  
by 9.8% to 26.5 mln EUR compared to the twelve months of 2008. Profits from     
other activities (mainly construction and developments) increased by 70.2% to   
3.0 mln EUR compared to the twelve months of 2008. The Company's profit before  
taxes was 25.6 mln EUR, which is a 10.7% increase compared to the same twelve   
months of 2008. In 2009 the Company invested 16.1 mln EUR.                      


--------------------------------------------------------------------------------
| mln EUR              | 4 Q  |  4 Q  | Change |    12    |    12    | Change  |
|                      | 2009 | 2008  |        |  months  |  months  |         |
|                      |      |       |        |   2009   |   2008   |         |
--------------------------------------------------------------------------------
| Sales                | 12,9 |  11,7 |  10,4% |     49,4 |     46,0 |    7,3% |
--------------------------------------------------------------------------------
| Gross profit         |  7,8 |   6,9 |  12,6% |     31,2 |     28,6 |    9,2% |
--------------------------------------------------------------------------------
| Gross profit margin  | 60,7 |  59,5 |   1,9% |     63,2 |     62,1 |    1,8% |
| %                    |      |       |        |          |          |         |
--------------------------------------------------------------------------------
| Operating profit     |  8,6 |   6,6 |  29,1% |     29,5 |     25,9 |   14,0% |
--------------------------------------------------------------------------------
| Operating profit -   |  6,5 |   5,7 |  12,4% |     26,5 |     24,1 |    9,8% |
| main business        |      |       |        |          |          |         |
--------------------------------------------------------------------------------
| Operating profit     | 66,5 |  56,9 |  16,9% |     59,8 |     56,3 |    6,2% |
| margin %             |      |       |        |          |          |         |
--------------------------------------------------------------------------------
| Profit before taxes  |  8,0 |   5,9 |  35,2% |     25,6 |     23,1 |   10,7% |
--------------------------------------------------------------------------------
| Net profit           |  8,0 |   5,9 |  35,2% |     21,7 |     18,9 |   14,9% |
--------------------------------------------------------------------------------
| Net profit margin %  | 62,2 |  50,8 |  22,5% |     44,0 |     41,1 |    7,0% |
--------------------------------------------------------------------------------
| ROA %                |  4,7 |   3,6 |  29,0% |     12,7 |     11,6 |    9,6% |
--------------------------------------------------------------------------------
| Debt to total        | 48,1 |  49,9 |  -3,6% |     48,1 |     49,9 |   -3,6% |
| capital employed     |      |       |        |          |          |         |
--------------------------------------------------------------------------------

Gross profit margin - Gross profit / Net sales                                  
Operating profit margin - Operating profit / Net sales                          
Net Profit margin - Net Profit / Net sales                                      
ROA - Net profit /Total Assets                                                  
Debt to Total capital employed - Total Liabilities / Total capital employed     
Main business - water and wastewater activities, excl. connections profit and   
government grants                                                               


Profit and Loss Statement                                                       

4th quarter 2009                                                                

Sales                                                                           

In the 4th quarter of 2009 the Company's total sales increased, year on year, by
10.4% to 12.9 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. Starting  
from 1 July 2009 the sales to the outside service area includes sales from a 30 
year O&M contract signed with the city of Maardu.                               

Sales of water and wastewater services were 11.7 mln EUR, an 11.2% increase     
compared to the 4th quarter of 2008, resulting from the 12.8% increase in       
tariffs from 1 January 2009 for the Company's residential and commercial        
customers combined with the factors described below.                            

Included within this amount were the following changes by sectors. Within the   
service area, sales to residential customers increased by 10.6% to 6.2 mln EUR. 
Sales to commercial customers increased by 3.2% to 4.4 mln EUR. Sales to        
customers outside of the service area increased by 110.3% to 0.93 mln EUR,      
mainly due to the implementation of the Maardu's operating contract. Over       
pollution fees received were 0.19 mln EUR, a 15.8% decrease compared to the 4th 
quarter of 2008.                                                                

In the 4th quarter of 2009, the volumes sold to residential customers dropped   
1.9%. We believe that this is due to the combination of the economic recession  
and the fact that people have continued to move to the surrounding areas of     
Tallinn.                                                                        

The volumes sold to commercial customers inside the service area decreased by   
8.5% compared to the relevant period in 2008. The majority of the reduction in  
sales volumes in Tallinn is a result of the macroeconomic impact of companies   
reducing their production volumes and implementing efficiency measures,         
supplemented by companies moving to surrounding municipalities.                 

The sales from the operation and maintenance of the storm water and fire-hydrant
system increased by 1.1% to 0.98 mln EUR in the 4th quarter of 2009 compared to 
the same period in 2008. 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.                                            


Cost of Goods Sold and Gross Margin                                             

The cost of goods sold for the main operating activity was 5.1 mln EUR in the   
4th quarter of 2009, an increase of 0.35 mln EUR or 7.3% from the equivalent    
period in 2008.                                                                 

In the 4th quarter of 2009 the Company achieved the beneficial 0.5 coefficient  
for pollution tax, and the amount of pollution tax payable was 0.20 mln EUR     
compared to 0.45 mln EUR in 4th quarter of 2008.  In the 4th quarter of 2008 we 
did not achieved the 0.5 coefficient. Pollution tax payable is also impacted by 
the increase in tax rates year on year by 20%, partly offset by the reduction in
treatment volumes. As the pollution level of the incoming sewage has continued  
to increase the Company has analyzed a range of alternatives to improve the     
waste water treatment processes and to use the optimum level of chemicals to    
achieve the 0.5 coefficient in the forthcoming quarters. In the 3rd quarter of  
2009 an investment into an additional stage of waste water treatment was        
approved, which will enable the increasing pollution load to be treated to the  
levels required to achieve these standards.                                     

Chemical costs were 0.33 mln EUR, representing a 0.2% decrease compared to the  
corresponding period in 2008. This result is the combination of volumes treated,
chemicals dosed and the particularly favorable price impact.                    

Electricity costs increased by 0.07 mln EUR or 13.9% in the 4th quarter of 2009 
compared to the 4th quarter of 2008 due to higher electricity prices.           

Salary expenses increased in the 4th quarter of 2009, year on year, by 0.33 mln 
EUR or 30.0% mainly due to the take over of 23 employees from Maardu Vesi.      

Depreciation charges decreased in the 4th quarter of 2009 by 0.12 mln EUR or    
6.0% year on year.                                                              

Transport costs decreased by 0.03 mln EUR, or 9.1% year on year, due to the     
combination of the reduction in fuel prices and reduced rates for rented        
machines.                                                                       

Other cost of goods sold in the main operating activity increased 0.28 mln EUR, 
or 60.4% year on year, due to the costs of operating in Maardu.                 

As a result of all of the above the Company's gross profit for the 4th quarter  
of 2009 was 7.8 mln EUR, which is an increase of 0.88 mln EUR, or 12.6%,        
compared to the gross profit of 6.9 mln EUR for the 4th quarter of 2008.        

Operating Costs and Operating Margin                                            

Marketing expenses decreased by 0.02 mln EUR to 0.18 mln EUR during the 4th     
quarter of 2009 compared to the corresponding period in 2008. This is mainly the
result of the efficiency program, which via the implementation of a new         
structure, reallocated part of the costs to the cost of goods sold and general  
administration expenses in 2009.                                                

In the 4th quarter of 2009 the General administration expenses increased by 0.04
mln EUR to 0.93 mln EUR year on year.                                           

Via successful negotiation of a range of outsourced service contracts new,      
beneficial rates have been achieved for most of the cost items. The management's
target is to achieve further efficiencies through a thorough review of processes
and work organization.                                                          

Other net income/expenses                                                       

The majority of the income in Other net income/expenses relates to constructions
and government grants. This driver for this income stream is the connections    
activity in Tallinn. Income/expenses from constructions and government grants   
totaled a net income of 2.1 mln EUR, in the 4th quarter of 2009 compared to a   
net income of 0.91 mln EUR in the 4th quarter of 2008. This was primarily due to
the significant increase in the number of connections finalized.                

The rest of the other income/expenses totaled an expense of 0.26 mln EUR in the 
4th quarter of 2009 compared to an expense of 0.12 mln EUR in the 4th quarter of
2008, from a combination of slightly worsened debt collection balanced by       
received penalties in 2009. It should be noted however that, more than 99% of   
debt is collected in a timely manner.                                           

As a result the Company's underlying operating profit from sales of water and   
wastewater for the 4th quarter of 2009 totaled 6.5 mln EUR compared to 5.7 mln  
EUR in the corresponding quarter in 2008. As a result of all of the above the   
Company's operating profit for main and other activities for the 4th quarter of 
2009 was 8.6 mln EUR, an increase of 1.9 mln EUR compared to an operating profit
of 6.6 mln EUR achieved in the 4th quarter of 2008. Year on year the operating  
profit has increased 29.1%.                                                     


Financial expenses                                                              

Net Financial expenses were 0.56 mln EUR in the 4th quarter of 2009, which is a 
decrease of 0.16 mln EUR or 22.0% compared to the 4th quarter of 2008. The      
Company's interest costs have decreased by 60.7% compared to the 4th quarter of 
2008 as a result of the reduction in Euribor rates and the replacement of the   
loan with a fixed interest rate (4.19% + risk margin), by loans with floating   
interest rates. The Company decided to mitigate the long term floating interest 
risk and in May 2009 concluded 3 interest swap agreements, each with a principal
value of 15 mln EUR. All contracts have forward start dates, for a base amount  
of 30 mln EUR, the forward start date begins on 28 November 2009, and for a base
amount of 15 mln EUR the forward start date begins on 28 May 2010. At this point
in time the estimated fair value of these swap contracts is negative, therefore 
the provisions related to the Swap fair value partly offset the interest costs  
savings and the increase in financial income earned during the 4th quarter of   
2009.                                                                           
                                                                                

Profit Before Tax                                                               

The Company's profit before taxes for the 4th quarter of 2009 was 8.0 mln EUR,  
which is 2.1 mln EUR higher than the profit before taxes of 5.9 mln EUR for the 
4th quarter of 2008.                                                            


Results for the twelve months of 2009                                           

During the twelve months of 2009 the Company's total sales increased, year on   
year, by 7.3% to 49.4 mln EUR. Sales of water and wastewater treatment were 45.2
mln EUR, a 7.5% increase compared to the twelve months of 2008.                 

The underlying operating profit from the Company's main business activity, sales
of water and wastewater, for the twelve months of 2009 increased by 9.8% to 26.5
mln EUR compared to the twelve months of 2008.                                  

The Company's profit before taxes for the twelve months of 2009 was 25.6 mln    
EUR, which is 2.5 mln EUR higher than the profit before taxes of 23.1 mln EUR in
the relevant period in 2008.                                                    

The Company's net profit for the twelve months of 2009 was 21.7 mln EUR, which  
is 2.8 mln EUR higher than the net profit of 18.9 mln EUR in the equivalent     
period in 2008.                                                                 


Balance sheet                                                                   

During the twelve months of 2009 the Company invested 16.1 mln EUR into fixed   
assets. Non-current assets were 140.2 mln EUR at 31 December 2009. Current      
assets increased by 9.0 mln EUR to 31.2 mln EUR in the twelve months of the     
year, with customer receivables increasing by 5.0 mln EUR and cash at bank      
increasing by 4.0 mln EUR.                                                      

Current liabilities decreased by 5.0 mln EUR to 7.3 mln EUR in the twelve months
of the year. This was mainly due to decreases in the Current portion of         
long-term borrowings by 5.2 mln EUR, as a result of the repayment and           
replacement of the EBRD loan in May 2009, a 0.68 mln EUR increase in Trade      
payables, and a decrease in Customer prepayments of 0.52 mln EUR.               

The Company continues to maintain its leverage level within its target range of 
50% with total liabilities to total capital employed of 48.1% as of 31 December 
2009. Long-term liabilities stood at 75.2 mln EUR at the end of December 2009,  
consisting almost entirely of the outstanding balance of three long-term bank   
loans. The current total available loan facility is 95 mln EUR, from which we   
have drawn down 75 mln EUR. The current weighted average interest margin is     
0.55%, for the total available facility the margin is 0.67%.                    

Cash flow                                                                       

During the twelve months of 2009, the Company generated 26.3 mln EUR of cash    
flows from operating activities, a decrease of 1.3 mln EUR compared to the      
corresponding period in 2008. The reduction in operating cash flows is due to   
the payment of the one off financial costs of 1.7 mln EUR related to the        
repayment of the EBRD loan as discussed in the 2nd quarter report. In addition  
the first quarter of 2008 was positively impacted by proceeds of some big       
services invoices issued at end of 2007. Underlying operating profit still      
continues to be the main driver for growth in operating cash flows.             

In the twelve months of 2009 net cash outflows from investing activities were   
3.5 mln EUR, which is 0.66 mln EUR less than in 2008. This is mainly due to the 
lower construction prices. In 2009 the Company invested 16.1 mln EUR - 13.3 mln 
EUR on networks (including 9.2 mln EUR on extension and developments), 1.1 mln  
EUR at Paljassaare wastewater treatment plant and sludge treatment, 0.41 mln EUR
on water quality (Ülemiste water treatment plant and raw water), 1.2 mln EUR for
other investments (IT, capital maintenance, meters, etc) and 0.03 mln EUR       
outside the Services area in the municipality of Maardu.                        

The cash outflows from financing activities were 18.8 mln EUR during the twelve 
months of 2009 compared to a cash outflow of 20.1 mln EUR during the same twelve
months of 2008, representing the payouts of the dividend and associated taxes.  
The Company repaid and fully refinanced the loan from the EBRD in May 2009 due  
to the need to finance and construct the extensive network extension program and
related investment outflows by 2011.                                            

As a result of all of the above factors, the total cash inflow in the twelve    
months of 2009 was 4.0 mln EUR compared to a cash inflow of 3.3 mln EUR in the  
twelve months of 2008. Cash and cash equivalents stood at 18.7 mln EUR as at 31 
December 2009.                                                                  

Employees                                                                       

At the end of the 4th quarter of 2009, the total number of employees was 336    
compared to 326 at the end of the 4th quarter of 2008. The full time equivalent 
(FTE) was respectively 322 in 2009 compared to the 317 in 2008. The increase in 
FTE is primarily due to taking on staff from Maardu Vesi when Company commenced 
operations in July.                                                             


Dividends and share performance                                                 

Based on the results of the 2008 financial year, the Company paid 14,700,318 EUR
of dividends. Of this 639 EUR was paid to the owner of the B-share              
and 14,699,679 EUR, i.e. 0.73 EUR per share to the owners of the A-shares. The  
dividends were paid out on 12 June 2009, based on the list of shareholders,     
which was fixed on 01 June 2009.                                                

AS Tallinna Vesi is listed on OMX Main Baltic Market with trading code TVEAT and
ISIN EE3100026436.                                                              


As of 31 December 2009 AS Tallinna Vesi shareholders, with a direct holding over
5%, were:                                                                       

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| United Utilities (Tallinn) BV                         | 35.3%                |
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| City of Tallinn	                                | 34.7%                |
--------------------------------------------------------------------------------
| Credit Suisse Securities (Europe) Ltd Prime Brokerage | 5.67%                |
| A/C Prime Brokerage Clients                           |                      |
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Parvus AM has declared that their shareholding in the clients' accounts exceeds 
10% and AKO Capital has declared their indirect ownership above 5% of the share 
capital.                                                                        

At the end of the quarter, 31 December 2009, the closing price of the AS        
Tallinna Vesi share was 10.00 EUR, which is a 4.76% decrease compared to the    
closing price of 10.50 EUR at the beginning of quarter. During the same period  
the OMX Tallinn index dropped by 9.2%.                                          



Operational highlights in the twelve months of 2009                             


AS Tallinna Vesi's operating indicators were very good in 2009 and the company
has consistently exceeded the product and service quality standards it
committed to in 2001. The company achieved its all time highest water quality
compliance level and witnessed improvements across the full range of
performance indicators. 

99.3 per cent of water samples taken from the taps of the customers of AS
Tallinna Vesi were compliant with the requirements, demonstrating an increase
of 1.3 per cent over 2008. 
The quality of drinking water provided to Tallinners is nearly on the same
level as in Western Europe. Although there is no comparative quality data
available for other cities in Estonia, the Company is convinced that the water
quality in Tallinn is the best in the Baltics. 

The number of unplanned interruptions is reducing and the duration of these is
also reducing, the water supply to the Company's customers is more stable and
AS Tallinna Vesi resolves any interruptions faster ensuring any interruptions
are minimized. 
The number of unplanned interruptions in 2009 decreased by four per cent
compared to 2008, while the number of properties affected by these
interruptions decreased by 17 per cent. The total length of interruptions
decreased from over 40.000 hours to less than 30.000 hours. 
Our customers expect to have access to high quality drinking water at the right
pressure and waste water removal 24 hours a day and 365 days a year. The number
of customer contacts and complaints regarding water pressure decreased
significantly in 2009 compared to 2008, respectively to 1223 from 1568 and to
10 from 21. 

The way the Company manages its network and monitors its performance together
with the speed of response to leakages and bursts have helped AS Tallinna Vesi
to keep the leakage levels low and decrease it further over the last 3 years.
In 2001 the leakage rate was over 32 per cent and because of the Company's
efforts the resource is being managed now in a much more sustainable manner
with far less waste. 
The level of water leakages has decreased to 16,6 per cent, this means a save
of 40 swimming pools of clean drinking water per day compared to 2008.
Altogether 24 kilometers of water pipes and 6.4 kilometers of sewerage pipes
were reconstructed last year. 
The customers are experiencing less issues with blocked pipes and drains and
the potential flooding and pollution problems that they can cause. This
reduction is due to the targeted jet washing of sewers that AS Tallinna Vesi
undertakes and the improvements that have been made to the sewer network over
the years. The increased level of remote monitoring allows the Company to react
faster to any events and prevent them developing into problems. The number of
sewer collapses has remained the same over the period and demonstrates that the
sewer pipes are in a stable condition. 
The wastewater treatment plant at Paljassaare is each year removing more and
more pollution load in order to meet the environmental requirements and ensure
the future health of the Baltic Sea and Tallinn Bay for all to enjoy. To keep
delivering the outputs the company has recognized that in the near future an
additional treatment stage is required to help remove these increasing amounts
of pollution. Design for this additional treatment stage is complete and
construction will start soon. 
Sludge is produced as a byproduct of wastewater treatment and the business
converts this to soil conditioner that is then used for landscaping. All the
sludge produced is recycled and no sludge in the last 3 years has been taken to
landfill. 
Based on these indicators it is clear that that AS Tallinna Vesi's impact on
surrounding environment has improved significantly during past years and this
will continue to be a top priority for the Company in coming years as well. 

Not all customers in Tallinn are connected to the public water and wastewater
supply system. In 2008 to 2010 the company is constructing over 150 km of new
pipes that will provide over 3000 connection opportunities to our customers.
Enabling more to connect to the network to have their wastewater taken away in
a more sustainable manner and reduce local pollution problems. 
The Company laid 4.6 kilometers of new water pipes in 2009 instead of the
planned 3.3 kilometers and 43 kilometers of new sewerage pipes instead of the
planned 39 kilometers. Additionally 5.9 kilometers of sewerage pipes planned
for 2010 were laid as well. Over 2500 properties and 9000 people now have
access to modern and environmentally sustainable public sewerage networks. 




Additional information:                                                         
Stephen Howard                                                                  
Chief Financial Officer                                                         
+372 6262 262                                                                   
stephen.howard@tvesi.ee                                                         



--------------------------------------------------------------------------------
| STATEMENT OF COMPREHENSIVE    |    IV    |    IV     | 12 months | 12 months |
| INCOME                        | quarter  |  quarter  |           |           |
--------------------------------------------------------------------------------
| (thousand EUR)                |   2009   |   2008    |   2009    |   2008    |
--------------------------------------------------------------------------------
|                               |          |           |           |           |
--------------------------------------------------------------------------------
| Revenue                       |   12 895 |    11 678 |    49 368 |    46 011 |
--------------------------------------------------------------------------------
| Costs of goods sold           |   -5 072 |    -4 728 |   -18 155 |   -17 432 |
--------------------------------------------------------------------------------
|                               |          |           |           |           |
--------------------------------------------------------------------------------
| GROSS PROFIT                  |    7 823 |     6 949 |    31 213 |    28 579 |
--------------------------------------------------------------------------------
|                               |          |           |           |           |
--------------------------------------------------------------------------------
| Marketing expenses            |     -178 |      -197 |      -717 |      -787 |
--------------------------------------------------------------------------------
| General administration        |     -928 |      -892 |    -3 419 |    -3 486 |
| expenses                      |          |           |           |           |
--------------------------------------------------------------------------------
| Other income/ expenses (-)    |    1 863 |       786 |     2 446 |     1 601 |
--------------------------------------------------------------------------------
|                               |          |           |           |           |
--------------------------------------------------------------------------------
| OPERATING PROFIT              |    8 580 |     6 647 |    29 523 |    25 907 |
--------------------------------------------------------------------------------
|                               |          |           |           |           |
--------------------------------------------------------------------------------
| Financial income              |      580 |       214 |     1 615 |       997 |
--------------------------------------------------------------------------------
| Financial expenses            |   -1 137 |      -928 |    -5 505 |    -3 758 |
--------------------------------------------------------------------------------
|                               |          |           |           |           |
--------------------------------------------------------------------------------
| PROFIT BEFORE TAXES           |    8 023 |     5 933 |    25 633 |    23 146 |
--------------------------------------------------------------------------------
|                               |          |           |           |           |
--------------------------------------------------------------------------------
| Income tax on dividends       |        0 |         0 |    -3 908 |    -4 231 |
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|                               |          |           |           |           |
--------------------------------------------------------------------------------
| NET PROFIT FOR THE PERIOD     |    8 023 |     5 933 |    21 726 |    18 916 |
--------------------------------------------------------------------------------
|                               |          |           |           |           |
--------------------------------------------------------------------------------
| Attributable to:              |          |           |           |           |
--------------------------------------------------------------------------------
| Equity holders of A-shares    |    8 023 |     5 933 |    21 725 |    18 915 |
--------------------------------------------------------------------------------
| B-share holder                |     0,64 |      0,64 |      0,64 |      0,64 |
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|                               |          |           |           |           |
--------------------------------------------------------------------------------
| Earnings per A share (in      |     0,40 |      0,30 |      1,09 |      0,95 |
| euros)                        |          |           |           |           |
--------------------------------------------------------------------------------
| Earnings per B share (in      |      639 |       639 |       639 |       639 |
| euros)                        |          |           |           |           |
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--------------------------------------------------------------------------------
| STATEMENT OF FINANCIAL POSITION                   |            |             |
--------------------------------------------------------------------------------
| (thousand EUR)                                    | 31.12.2009 |  31.12.2008 |
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|                                                   |            |             |
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| ASSETS                                            |            |             |
--------------------------------------------------------------------------------
| CURRENT ASSETS                                    |            |             |
--------------------------------------------------------------------------------
| Cash and equivalents                              |     18 692 |      14 691 |
--------------------------------------------------------------------------------
| Customer receivables, accrued income and prepaid  |     12 227 |       7 199 |
| expenses                                          |            |             |
--------------------------------------------------------------------------------
| Inventories                                       |        244 |         240 |
--------------------------------------------------------------------------------
| Non-current assets held for sale                  |         77 |          73 |
--------------------------------------------------------------------------------
| TOTAL CURRENT ASSETS                              |     31 241 |      22 203 |
--------------------------------------------------------------------------------
|                                                   |            |             |
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS                                |            |             |
--------------------------------------------------------------------------------
| Property, plant and equipment                     |    137 599 |     138 575 |
--------------------------------------------------------------------------------
| Intangible assets                                 |      2 577 |       2 776 |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT ASSETS                          |    140 176 |     141 350 |
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| TOTAL ASSETS                                      |    171 417 |     163 553 |
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|                                                   |            |             |
--------------------------------------------------------------------------------
| LIABILITIES                                       |            |             |
--------------------------------------------------------------------------------
|                                                   |            |             |
--------------------------------------------------------------------------------
| CURRENT LIABILITIES                               |            |             |
--------------------------------------------------------------------------------
| Current portion of long-term borrowings           |        106 |       5 295 |
--------------------------------------------------------------------------------
| Trade and other payables                          |      6 255 |       5 578 |
--------------------------------------------------------------------------------
| Short-term provisions                             |        228 |         159 |
--------------------------------------------------------------------------------
| Prepayments and deferred income                   |        747 |       1 265 |
--------------------------------------------------------------------------------
| TOTAL CURRENT LIABILITIES                         |      7 336 |      12 296 |
--------------------------------------------------------------------------------
|                                                   |            |             |
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES                           |            |             |
--------------------------------------------------------------------------------
| Borrowings                                        |     75 052 |      69 321 |
--------------------------------------------------------------------------------
| Other payables                                    |        115 |          47 |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT LIABILITIES                     |     75 167 |      69 368 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES                                 |     82 503 |      81 665 |
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|                                                   |            |             |
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| EQUITY CAPITAL                                    |            |             |
--------------------------------------------------------------------------------
| Share capital                                     |     12 782 |      12 782 |
--------------------------------------------------------------------------------
| Share premium                                     |     24 734 |      24 734 |
--------------------------------------------------------------------------------
| Statutory legal reserve                           |      1 278 |       1 278 |
--------------------------------------------------------------------------------
| Retained earnings                                 |     50 120 |      43 094 |
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| TOTAL EQUITY CAPITAL                              |     88 914 |      81 889 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES AND EQUITY CAPITAL              |    171 417 |     163 553 |
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| CASH FLOW STATEMENT                               | 12 months  |  12 months  |
--------------------------------------------------------------------------------
| (thousand EUR)                                    |    2009    |    2008     |
--------------------------------------------------------------------------------
|                                                   |            |             |
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| CASH FLOWS FROM OPERATING ACTIVITIES              |            |             |
--------------------------------------------------------------------------------
| Operating profit                                  |     29 523 |      25 907 |
--------------------------------------------------------------------------------
| Adjustment for depreciation/amortisation          |      5 698 |       5 731 |
--------------------------------------------------------------------------------
| Adjustment for profit from government grants and  |     -3 037 |      -1 784 |
| connection fees                                   |            |             |
--------------------------------------------------------------------------------
| Other finance expenses                            |     -2 222 |        -103 |
--------------------------------------------------------------------------------
| Profit from sale of property, plant and           |        -10 |         -29 |
| equipment, and intangible assets                  |            |             |
--------------------------------------------------------------------------------
| Expensed property, plant and equipment            |          0 |          -1 |
--------------------------------------------------------------------------------
| Change in current assets involved in operating    |     -2 271 |       1 456 |
| activities                                        |            |             |
--------------------------------------------------------------------------------
| Change in liabilities involved in operating       |      1 051 |          58 |
| activities                                        |            |             |
--------------------------------------------------------------------------------
| Interest paid                                     |     -2 479 |      -3 679 |
--------------------------------------------------------------------------------
| Total cash flow from operating activities         |     26 253 |      27 555 |
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|                                                   |            |             |
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| CASH FLOWS FROM INVESTING ACTIVITIES              |            |             |
--------------------------------------------------------------------------------
| Acquisition of property, plant and equipment, and |    -15 960 |     -21 245 |
| intangible assets                                 |            |             |
--------------------------------------------------------------------------------
| Compensations received for construction of        |     11 505 |      15 990 |
| pipelines                                         |            |             |
--------------------------------------------------------------------------------
| Proceeds from sale of property, plant and         |         15 |          31 |
| equipment, and intangible assets                  |            |             |
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| Interest received                                 |        964 |       1 080 |
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| Total cash flow from investing activities         |     -3 476 |      -4 143 |
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|                                                   |            |             |
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| CASH FLOWS FROM FINANCING ACTIVITIES              |            |             |
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| Received short-term loans                         |     10 000 |           0 |
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| Repayment of short-term loans                     |    -10 000 |           0 |
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| Received long-term loans                          |     34 800 |       2 700 |
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| Repayment of long-term loans                      |    -34 821 |      -2 679 |
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| Finance lease payments                            |       -146 |           0 |
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| Dividends paid                                    |    -14 700 |     -15 915 |
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| Income tax on dividends                           |     -3 908 |      -4 231 |
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| Total cash flow from financing activities         |    -18 775 |     -20 124 |
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|                                                   |            |             |
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| Change in cash and bank accounts                  |      4 002 |       3 288 |
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|                                                   |            |             |
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| CASH AND EQUIVALENTS AT THE BEGINNING OF THE      |     14 691 |      11 403 |
| PERIOD                                            |            |             |
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|                                                   |            |             |
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| CASH AND EQUIVALENTS AT THE END OF THE PERIOD     |     18 692 |      14 691 |
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