MANAGEMENT REPORT RESULTS OF OPERATIONS - FOR THE 3rd QUARTER 2010 Overview During the first nine months of 2010 the Company's total sales increased, year on year, by 2.1% to 582.3 mln EEK. The Company's underlying operating profit for the first nine months of 2010, from water and wastewater related activities, decreased by 6.8% to 292.0 mln EEK compared to the nine months of 2009. Profits from other activities (mainly construction and developments) increased by 87.6% to 26.7 mln EEK compared to the same nine months of 2009. The Company's profit before taxes was 265.5 mln EEK, which is a decrease of 3.6% or 10.0 mln EEK, compared to the same nine months of 2009. -------------------------------------------------------------------------------- | mln EEK | 3 Q | 3 Q | Change | 9 | 9 | Change | | | 2010 | 2009 | | months | months | | | | | | | 2010 | 2009 | | -------------------------------------------------------------------------------- | Sales | 195,8| 189,0 | 3,6% | 582,3 | 570,6 | 2,1% | -------------------------------------------------------------------------------- | Gross profit | 113,4| 119,2 | -4,8% | 346,8 | 366,0 | -5,2% | -------------------------------------------------------------------------------- | Gross profit margin %| 57,9 | 63,1 | -8,1% | 59,6 | 64,1 | -7,2% | -------------------------------------------------------------------------------- | Operating profit | 101,5| 109,8 | -7,6% | 318,7 | 327,7 | -2,7% | -------------------------------------------------------------------------------- | Operating profit - | 95,7 | 104,3 | -8,2% | 292,0 | 313,5 | -6,8% | | main business | | | | | | | -------------------------------------------------------------------------------- | Operating profit | 51,9 | 58,1 | -10,8% | 54,7 | 57,4 | -4,7% | | margin % | | | | | | | -------------------------------------------------------------------------------- | Profit before taxes | 92,9 | 102,6 | -9,5% | 265,5 | 275,5 | -3,6% | -------------------------------------------------------------------------------- | Net profit | 92,9 | 102,6 | -9,5% | 132,6 | 214,4 | -38,1% | -------------------------------------------------------------------------------- | Net profit margin % | 47,5 | 54,3 | -12,6% | 22,8 | 37,6 | -39,4% | -------------------------------------------------------------------------------- | ROA % | 3,5 | 4,0 | -13,2% | 5,0 | 8,4 | -40,7% | -------------------------------------------------------------------------------- | Debt to total | 61,7 | 50,7 | 21,9% | 61,7 | 50,7 | 21,9% | | 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 3rd quarter 2010 Sales In the 3rd quarter of 2010 the Company's total sales increased, year on year, by 3.6% to 195.8 mln EEK. Included within this is a contribution of 6.2 mln EEK from Maardu, a contract which commenced in the 3rd quarter of 2009. Sales in the main operating activity principally comprise of sales of water and treatment of wastewater to domestic and commercial customers within and outside of the service area, and fees received from the City of Tallinn for operating and maintaining the storm water system. Sales of water and wastewater services were 174.2 mln EEK, a 0.1% increase compared to the 3rd quarter of 2009, resulting from the factors described below which were partially offset by the 0.9% decrease in tariffs from 1 January 2010 for the Company's residential and commercial customers. Within the service area, sales to residential customers decreased by 0.1% to 91.3 mln EEK. Sales to commercial customers increased by 1.5% to 66.9 mln EEK. Sales to customers outside of the service area increased by 0.7% to 12.7 mln EEK, which includes the Maardu operating contract which commenced from 1st July 2009. Over pollution fees received were 3.3 mln EEK, a 20.7% decrease compared to the 3rd quarter of 2009. In the 3rd quarter of 2010, the volumes sold to residential customers rose 0.8%. We believe that this is mainly due to the combination of the economic conditions getting gradually better during the last year, supported by the hot summer and the increased need for the gardening water. The volumes sold to commercial customers inside the service area increased by 2.4% compared to the same period in 2009. The rise in sales can be attributed to better economic conditions and leisure sector picking up. Total selling volumes to the industrial sector are decreasing due to Coca-Cola's leave from our service area, eliminating its consumption also some increase can be noticed from the industrial sector. Excluding Maardu volumes, then outside service area volumes were 5.7% lower than in the 3rd quarter of 2009. The main factor in this decrease was lower storm water volumes in the 3rd quarter of 2010 compared to 2009. The sales from the operation and maintenance of the storm water and fire-hydrant system increased by 51.2% to 17.0 mln EEK in the 3rd quarter of 2010 compared to the same period in 2009. 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 82.4 mln EEK in the 3rd quarter of 2010, an increase of 12.6 mln EEK or 18.0% from the equivalent period in 2009 of which Maardu added 4.3 mln EEK compared to 4.9 mln EEK in 2009. In the 3rd quarter of 2010 the Company did not achieve the beneficial 0.5 coefficient for pollution tax, and the amount of pollution tax payable was 9.6 mln EEK compared to 4.7 mln EEK in the 3rd quarter of 2009. In the 3rd quarter of 2009 we achieved the 0.5 coefficient. In addition to coefficient increase the higher pollution tax payable in 2010 is generated by the increase in tax rates year on year by 19%. To mitigate the tax risk we have started with the investment into an additional stage of waste water treatment and according to the construction schedule the works should be completed by the end of the 2nd quarter of 2011. Chemical costs were 6.2 mln EEK, representing an 8.6% increase compared to the corresponding period in 2009. Although lower volumes were treated the main contributor to higher chemical costs are dosed methanol and other chemicals quantities related to the need to treat the increased pollution concentration in incoming sewerage. Electricity costs increased by 2.9 mln EEK or 36.0% in the 3rd quarter of 2010 compared to the 3rd quarter of 2009 due to higher electricity prices as a result of three sites buying electricity from the open market. Salary expenses decreased in the 3rd quarter of 2010, year on year, by 1.7 mln EEK or 11.1% mainly due to the reduced headcount. Transport costs increased by 1.6 mln EEK, or 35.6% year on year, due to the combination of the increase in fuel prices and one-off increased usage of rented machinery to substitute the broken center-press technology. Other cost of goods sold in the main operating activity increased 4.5 mln EEK, or 52.9% year on year, mainly due to the additional costs of repair services resulting from new city act related to the asphalting and exceptional maintenance costs related to biofilter project. As a result of all of the above the Company's gross profit for the 3rd quarter of 2010 was 113.4 mln EEK, which is a decrease of 5.8 mln EEK, or 4.8%, compared to the gross profit of 119.2 mln EEK for the 3rd quarter of 2009. Operating Costs and Operating Margin Marketing expenses increased by 0.5 mln EEK to 3.0 mln EEK during the 3rd quarter of 2010 compared to the corresponding period in 2009. This is mainly the result of a slight increase in expenses due to OÜ Watercom start-up compared to corresponding period in 2009. In the 3rd quarter of 2010 the General administration expenses increased by 2.2 mln EEK year on year to 14.4 mln EEK mainly due to the need for the consultancies related to the implication of the Anti Monopoly Bill and attempts to improve the image of the company insisting on the quality aspects. Other net income/expenses The majority of the income in Other net income/expenses relates to constructions and government grants. The driver for this income stream is the connections activity in Tallinn. Income and expenses from constructions and government grants totaled a net income of 5.8 mln EEK in the 3rd quarter of 2010 compared to a net income of 5.6 mln EEK in the 3rd quarter of 2009. The rest of the other income/expenses totaled an expense of 0.3 mln EEK in the 3rd quarter of 2010 compared to an expense of 0.2 mln EEK in the 3rd quarter of 2009, mainly from less received penalties and interest of arrears compared to 2009. In addition it should be noted 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 3rd quarter of 2010 totaled 95.7 mln EEK compared to 104.3 mln EEK in the corresponding quarter in 2009. In total then the Company's operating profit for main and other activities for the 3rd quarter of 2010 was 101.5 mln EEK, a decrease of 8.3 mln EEK compared to an operating profit of 109.8 mln EEK achieved in the 3rd quarter of 2009. Year on year the operating profit for the 3rd quarter has decreased 7.6%. Financial expenses Net Financial expenses were 8.6 mln EEK in the 3rd quarter of 2010, which is an increase of 1.4 mln EEK or 19.5% compared to the 3rd quarter of 2009. Of this variance 1.0 mln EEK relates to a less received interest income in the 3rd quarter of 2010 due to lower interest rates. The Company's interest costs have increased by 8.7% compared to the 3rd quarter of 2009 from 10.8 mln EEK to 11.7 mln EEK as a combined result of positive impact from the reduction in Euribor rates and adverse impact from negative value of and fixed rate payments based on swap agreements. The Company mitigated partly the long term floating interest risk with 3 interest swap agreements, each with a principal value of 15 mln EUR. For a base amount of 30 mln EUR the forward start date began on 30 November 2009, and for a base amount of 15 mln EUR the forward start date began on 28 May 2010. At this point in time the estimated fair value of these swap contracts is negative, totaling 52.8 mln EEK, with a further devaluation in the 3rd quarter 2010 in the amount of 1.7 mln EEK which more than offsets the interest costs savings and the financial income earned during the 3rd quarter of 2010 thus contributing to a net financial expense. Profit Before Tax The Company's profit before taxes for the 3rd quarter of 2010 was 92.9 mln EEK, which is 9.7 mln EEK lower than the profit before taxes of 102.6 mln EEK for the 3rd quarter of 2009. Results for the nine months of 2010 During the nine months of 2010 the Company's total sales increased, year on year, by 2.1% to 582.3 mln EEK. Sales of water and wastewater treatment were 528.9 mln EEK, a 0.7% increase compared to the nine months of 2009. The underlying operating profit from the Company's main business activity, sales of water and wastewater, for the nine months of 2010 decreased by 6.8% to 292.0 mln EEK compared to the nine months of 2009. The Company's profit before taxes for the nine months of 2010 was 265.5 mln EEK, which is a 3.6% decrease compared to the profit before taxes in the relevant period in 2009. The Company's net profit for the nine months of 2010 was 132.6 mln EEK, which is 81.8 mln EEK lower than the net profit of 214.4 mln EEK in the equivalent period in 2009. Balance sheet During the nine months of 2010 the Company invested 129.8 mln EEK into fixed assets. Non-current assets were 2,226.2 mln EEK at 30 September 2010. Current assets decreased by 39.0 mln EEK to 449.8 mln EEK in the nine months of the year, with customer receivables increasing by 3.9 mln EEK and cash at bank decreasing by 42.9 mln EEK. Current liabilities increased by 73.8 mln EEK to 188.9 mln EEK in the nine months of the year. This was mainly due to a 14.4 mln EEK increase in Trade payables and also due to 58.4 mln EEK increase in Current portion of long-term borrowings. The Company has a leverage level as expected of approximately 62% with the future target range within 60%. Long-term liabilities stood at 1,463.3 mln EEK at the end of September 2010, consisting almost entirely of the outstanding balance of three long-term bank loans. During 2nd quarter of 2010 we drew down an additional 20 mln EUR, and at the end of the 3rd quarter of 2010 the total loan balance is 95 mln EUR, which is the total available loan facility. The weighted average interest margin for the total available facility is 0.67%. Cash flow During the nine months of 2010, the Company generated 319.6 mln EEK of cash flows from operating activities, an increase of 17.9 mln EEK compared to the corresponding period in 2009. 2010 operating cash flows were above 2009 cash flows mainly due to the payment of unwinding costs in 2009, whereby in the nine month of 2010 the financial expenses included the one-off correction with non-cash fair value of the swap agreements. Underlying operating profit still continues to be the main contributor to operating cash flows. In the nine months of 2010 net cash outflows from investing activities were 42.5 mln EEK, which is 56.6 mln EEK more than in 2009. This is mainly due to reduced inflow due to timing of compensations received for construction of pipelines. To date in 2010 the cash outflows in relation to fixed asset investments are 121.1 mln EEK. The cash outflows from financing activities were 320.0 mln EEK during the nine months of 2010 compared to a cash outflow of 293.8 mln EEK during the same nine months of 2009, representing the payouts of the dividends and income tax on dividends and received loans following the loan drawdown. As a result of all of the above factors, the total cash outflow in the nine months of 2010 was 42.9 mln EEK compared to a cash inflow of 22.0 mln EEK in the nine months of 2009. Cash and cash equivalents stood at 249.6 mln EEK as at 30 September 2010 which is 2.3 mln EEK lower than at the corresponding period of 2009. Employees At the end of the 3rd quarter of 2010, the total number of employees was 319 compared to 349 at the end of the 3rd quarter of 2009. The full time equivalent (FTE) was respectively 305 in 2010 compared to the 336 in 2009. The decrease in FTE is primarily due to reorganization in various departments at the end of 2009. Corporate structure At the end of the quarter, 30 September 2010, the Group consisted of 2 companies. The subsidiary Watercom OÜ is wholly owned by AS Tallinna Vesi and consolidated to the results of the Company. Dividends and share performance Based on the results of the 2009 financial year, the Company paid 500,010,000 EEK of dividends. Of this 10,000 EEK was paid to the owner of the B-share and 500,000,000 EEK, i.e. 25.00 EEK per share to the owners of the A-shares. The dividends were paid out on 11 June 2010, based on the list of shareholders, which was fixed on 01 June 2010. AS Tallinna Vesi is listed on OMX Main Baltic Market with trading code TVEAT and ISIN EE3100026436. As of 30 September 2010 AS Tallinna Vesi shareholders, with a direct holding over 5%, were: -------------------------------------------------------------------------------- | United Utilities (Tallinn) BV | 35.3% | -------------------------------------------------------------------------------- | City of Tallinn | 34.7% | -------------------------------------------------------------------------------- We have seen the next two biggest shareholders Parvus AM and AKO Capital reducing their holdings in the Company in the quarter. Parvus AM has declared that their shareholding in the clients' accounts is below 10% and AKO Capital has declared their indirect ownership below 5% of the share capital. At the end of the quarter, 30 September 2010, the closing price of the AS Tallinna Vesi share was 111.09 EEK (7.10 EUR), which is a 12.02% decrease compared to the closing price of 126.27 EEK (8.07 EUR) at the beginning of the quarter. During the same period the OMX Tallinn index rose by 15.99%. Operational highlights in the first nine months of 2010 Company's overall operating performance is continuously good, most of the quality aspects exceeding the level of 2009 as described in TSE notice on 20 October 2010. Baltic Corporate Governance Institute awarded the Company as the best Corporate Governance in Estonia. In the 3rd quarter the Anti Monopoly Bill (AMB) was passed by the Parliament and approved by the President. The key impact for the Company will be related to the fact that from 1 November onwards the tariff approval process of the Company will be transferred from the City of Tallinn to the Competition Authority (CA). The main aim of the AMB is to control the profits of the water companies. The CA has issued a first draft of their recommendations how to calculate the allowed return and revenues for the water companies. The early draft presented by the Competition Authority does not define the full objectives of regulation. The Company finds it regrettable that the regulator-to-be has yet only considered the price sensitivity of the customers and ignored fully their expectations regarding the product and service quality. Furthermore, the current regulation suggests that any appeal against a decision for the Competition Authority needs to be made to the Competition Authority, which is in clear violation of any best practice governance principles. Another major issue arising from the proposed draft methodology for calculating water and wastewater tariffs concerns one of the primary objectives of any regulator - to guarantee an acceptable return on invested capital for investors. Within the current methodology it appears that the Competition Authority is excluding the privatisation value of the Company from the calculation of justified profitability, which since 2001 has been included in the calculation of justified profitability of the Company under current regulation within the Services Agreement signed with the City of Tallinn. Therefore to be in accordance with best practice regulation for privatized utilities, such as that favoured by Ofwat in the UK, ASTV has requested that the Competition Authority should expand the definition of regulated asset base to include the privatisation value of the utility. This would ensure the privatisation contract was not unilaterally broken and would respect the investments made in good faith into Estonia by our investors on the basis of that contract. The Company has published its comments to the Competition Authority on its website and to the Tallinn Stock Exchange and will keep its investors informed of all future developments regarding the future calculation of its water and wastewater tariffs. In accordance with the signed Services Agreement the Company submitted the 2011 tariff application to the City of Tallinn. Discussions with City of Tallinn are ongoing and, as in previous years, the application is being analyzed based upon the original business plan and the Ofwat regulatory model. However, it should be noted that as a consequence of the AMB the City of Tallinn can only recommend but no longer approve the tariffs that will be applied from 1 January 2011, final approval can only be given by the CA. Therefore, at this point in time the Company is unable to say what next year's tariffs will be as it is unclear at the moment how the CA intends to analyze and proceed with the tariff applications. Additional information: Siiri Lahe Chief Financial Officer +372 6262 262 siiri.lahe@tvesi.ee -------------------------------------------------------------------------------- | STATEMENT OF | III | III | 9 months | 9 months | 12 | | COMPREHENSIVE INCOME | quarter | quarter | | | months | -------------------------------------------------------------------------------- | (thousand EEK) | 2010 | 2009 | 2010 | 2009 | 2009 | -------------------------------------------------------------------------------- | | | | | | | -------------------------------------------------------------------------------- | Revenue | 195 765 | 188 960 | 582 291 | 570 678 | 772 446 | -------------------------------------------------------------------------------- | Costs of goods sold | -82 360 | -69 790 | -235 519 | -204 698 | -284 064 | -------------------------------------------------------------------------------- | | | | | | | -------------------------------------------------------------------------------- | GROSS PROFIT | 113 405 | 119 170 | 346 772 | 365 980 | 488 382 | -------------------------------------------------------------------------------- | | | | | | | -------------------------------------------------------------------------------- | Marketing expenses | -2 971 | -2 452 | -8 960 | -8 430 | -11 213 | -------------------------------------------------------------------------------- | General administration | -14 442 | -12 265 | -41 209 | -38 973 | -53 493 | | expenses | | | | | | -------------------------------------------------------------------------------- | Other income/ expenses | 5 531 | 5 372 | 22 146 | 9 118 | 38 264 | | (-) | | | | | | -------------------------------------------------------------------------------- | | | | | | | -------------------------------------------------------------------------------- | OPERATING PROFIT | 101 523 | 109 825 | 318 749 | 327 695 | 461 940 | -------------------------------------------------------------------------------- | | | | | | | -------------------------------------------------------------------------------- | Financial income | 3 279 | 4 270 | 10 519 | 16 187 | 25 267 | -------------------------------------------------------------------------------- | Financial expenses | -11 893 | -11 479 | -63 737 | -68 342 | -86 131 | -------------------------------------------------------------------------------- | | | | | | | -------------------------------------------------------------------------------- | PROFIT BEFORE TAXES | 92 909 | 102 616 | 265 531 | 275 540 | 401 076 | -------------------------------------------------------------------------------- | | | | | | | -------------------------------------------------------------------------------- | Income tax on | 0 | 0 | -132 914 | -61 142 | -61 142 | | dividends | | | | | | -------------------------------------------------------------------------------- | | | | | | | -------------------------------------------------------------------------------- | NET PROFIT FOR THE | 92 909 | 102 616 | 132 617 | 214 398 | 339 934 | | PERIOD | | | | | | -------------------------------------------------------------------------------- | COMPREHENSIVE INCOME | 92 909 | 102 616 | 132 617 | 214 398 | 339 934 | | FOR THE PERIOD | | | | | | -------------------------------------------------------------------------------- | Attributable to: | | | | | | -------------------------------------------------------------------------------- | Equity holders of | 92 899 | 102 606 | 132 607 | 214 388 | 339 924 | | A-shares | | | | | | -------------------------------------------------------------------------------- | B-share holder | 10 | 10 | 10 | 10 | 10 | -------------------------------------------------------------------------------- | | | | | | | -------------------------------------------------------------------------------- | Earnings per A share | 4,64 | 5,13 | 6,63 | 10,72 | 17,00 | | (in kroons) | | | | | | -------------------------------------------------------------------------------- | Earnings per B share | 10 000 | 10 000 | 10 000 | 10 000 | 10 000 | | (in kroons) | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | STATEMENT OF FINANCIAL POSITION | | | | -------------------------------------------------------------------------------- | (thousand EEK) |30.09.2010| 30.09.2009| 31.12.2009| -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | ASSETS | | | | -------------------------------------------------------------------------------- | CURRENT ASSETS | | | | -------------------------------------------------------------------------------- | Cash and equivalents | 249 553 | 251 826 | 292 474 | -------------------------------------------------------------------------------- | Customer receivables, accrued income and | 195 213 | 110 303 | 191 317 | | prepaid expenses | | | | -------------------------------------------------------------------------------- | Inventories | 3 842 | 3 331 | 3 819 | -------------------------------------------------------------------------------- | Non-current assets held for sale | 1 197 | 1 052 | 1 209 | -------------------------------------------------------------------------------- | TOTAL CURRENT ASSETS | 449 805 | 366 512 | 488 819 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | NON-CURRENT ASSETS | | | | -------------------------------------------------------------------------------- | Property, plant and equipment | 2 193 137| 2 156 580 | 2 152 952 | -------------------------------------------------------------------------------- | Intangible assets | 33 044 | 42 565 | 40 319 | -------------------------------------------------------------------------------- | TOTAL NON-CURRENT ASSETS | 2 226 181| 2 199 145 | 2 193 271 | -------------------------------------------------------------------------------- | TOTAL ASSETS | 2 675 986| 2 565 657 | 2 682 090 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | LIABILITIES | | | | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | CURRENT LIABILITIES | | | | -------------------------------------------------------------------------------- | Current portion of long-term borrowings | 60 333 | 1 671 | 1 936 | -------------------------------------------------------------------------------- | Trade and other payables | 112 244 | 81 386 | 97 866 | -------------------------------------------------------------------------------- | Short-term provisions | 2 624 | 5 298 | 3 570 | -------------------------------------------------------------------------------- | Prepayments and deferred income | 13 659 | 36 671 | 11 687 | -------------------------------------------------------------------------------- | TOTAL CURRENT LIABILITIES | 188 860 | 125 026 | 115 059 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | NON-CURRENT LIABILITIES | | | | -------------------------------------------------------------------------------- | Borrowings | 1 461 523| 1 174 230 | 1 174 034 | -------------------------------------------------------------------------------- | Other payables | 1 795 | 735 | 1 795 | -------------------------------------------------------------------------------- | TOTAL NON-CURRENT LIABILITIES | 1 463 318| 1 174 965 | 1 175 829 | -------------------------------------------------------------------------------- | TOTAL LIABILITIES | 1 652 178| 1 299 991 | 1 290 888 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | EQUITY CAPITAL | | | | -------------------------------------------------------------------------------- | Share capital | 200 001 | 200 001 | 200 001 | -------------------------------------------------------------------------------- | Share premium | 387 000 | 387 000 | 387 000 | -------------------------------------------------------------------------------- | Statutory legal reserve | 20 000 | 20 000 | 20 000 | -------------------------------------------------------------------------------- | Retained earnings | 416 807 | 658 665 | 784 201 | -------------------------------------------------------------------------------- | TOTAL EQUITY CAPITAL | 1 023 808| 1 265 666 | 1 391 202 | -------------------------------------------------------------------------------- | TOTAL LIABILITIES AND EQUITY CAPITAL | 2 675 986| 2 565 657 | 2 682 090 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CASH FLOW STATEMENT | 9 months | 9 months | 12 months | -------------------------------------------------------------------------------- | (thousand EEK) | 2010 | 2009 | 2009 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | CASH FLOWS FROM OPERATING ACTIVITIES | | | | -------------------------------------------------------------------------------- | Operating profit | 318 749 | 327 695 | 461 940 | -------------------------------------------------------------------------------- | Adjustment for depreciation/amortisation | 65 948 | 67 208 | 89 153 | -------------------------------------------------------------------------------- | Adjustment for profit from government | -26 717 | -14 241 | -47 512 | | grants and connection fees | | | | -------------------------------------------------------------------------------- | Other finance expenses | -925 | -34 338 | -29 203 | -------------------------------------------------------------------------------- | Profit from sale of property, plant and | 0 | -140 | -150 | | equipment, and intangible assets | | | | -------------------------------------------------------------------------------- | Expensed property, plant and equipment | 2 701 | 0 | 0 | -------------------------------------------------------------------------------- | Change in current assets involved in | -18 407 | -18 989 | -14 675 | | operating activities | | | | -------------------------------------------------------------------------------- | Change in liabilities involved in | 231 | 774 | 6 160 | | operating activities | | | | -------------------------------------------------------------------------------- | Interest paid | -21 988 | -26 283 | -38 793 | -------------------------------------------------------------------------------- | Total cash flow from operating activities | 319 592 | 301 686 | 426 920 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | CASH FLOWS FROM INVESTING ACTIVITIES | | | | -------------------------------------------------------------------------------- | Acquisition of property, plant and | -121 099 | -154 448 | -243 906 | | equipment, and intangible assets | | | | -------------------------------------------------------------------------------- | Compensations received for construction | 67 240 | 152 151 | 155 772 | | of pipelines | | | | -------------------------------------------------------------------------------- | Proceeds from sale of property, plant and | 18 | 129 | 238 | | equipment, and intangible assets | | | | -------------------------------------------------------------------------------- | Interest received | 11 320 | 16 220 | 15 077 | -------------------------------------------------------------------------------- | Total cash flow from investing activities | -42 521 | 14 052 | -72 819 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | CASH FLOWS FROM FINANCING ACTIVITIES | | | | -------------------------------------------------------------------------------- | Received loans | 312 932 | 700 968 | 700 968 | -------------------------------------------------------------------------------- | Repayment of loans | 0 | -701 303 | -701 303 | -------------------------------------------------------------------------------- | Dividends paid | -500 010 | -230 010 | -230 010 | -------------------------------------------------------------------------------- | Income tax on dividends | -132 914 | -61 142 | -61 142 | -------------------------------------------------------------------------------- | Total cash flow from financing activities | -319 992 | -293 772 | -291 487 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Change in cash and bank accounts | -42 921 | 21 966 | 62 614 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | CASH AND EQUIVALENTS AT THE BEGINNING OF | 292 474 | 229 860 | 229 860 | | THE PERIOD | | | | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | CASH AND EQUIVALENTS AT THE END OF THE | 249 553 | 251 826 | 292 474 | | PERIOD | | | | --------------------------------------------------------------------------------