MANAGEMENT REPORT RESULTS OF OPERATIONS - FOR THE 1st HALF-YEAR 2008 Overview In the 1st six months of 2008 the Company's total sales increased, year on year, by 16.6% to 28.4 mln EUR. Total water and sewerage services sale volumes increased in the 1st six months of 2008 by 0.2% compared to the same six months of 2007, respective sales increased by 10.5%. Within the service area sales to residential customers increased by 9.4% year on year, sales to commercial customers increased by 8.3% year on year, and sales to customers outside of the service area increased by 47.3% year on year, reaching 1.7 mln m3 or 0.78 mln EUR. The Company's profit before taxes was 11.5 mln EUR, which is a 3.2% increase compared to the same six months of 2007. Eliminating the one-off nitrogen provision release in the 1st quarter of 2007, profit before tax in the 1st six months of 2008 increased by 11.8%. The Company invested 6.3 mln EUR, of which 4.9 mln EUR was invested in network extension and rehabilitation. -------------------------------------------------------------------------------- | mln EUR | 6 | 6 | Change | 6 months | Change | | | months | months | | 2007 | | | | 2008 | 2007 | | underlying | | -------------------------------------------------------------------------------- | Sales | 28,4 | 24,4 | 16,6% | 24,4 | 16,6% | -------------------------------------------------------------------------------- | Main operating | 23,2 | 20,8 | 11,6% | 20,8 | 11,6% | | activities | | | | | | -------------------------------------------------------------------------------- | Other operating | 5,2 | 3,6 | 45,6% | 3,6 | 45,6% | | activities | | | | | | -------------------------------------------------------------------------------- | Gross profit | 15,1 | 14,7 | 3,2% | 13,8 | 9,6% | -------------------------------------------------------------------------------- | Gross profit margin | 53,3 | 60,1 | -11,5% | 56,7 | -6,0% | | % | | | | | | -------------------------------------------------------------------------------- | Operating profit | 12,9 | 12,5 | 3,3% | 11,6 | 10,8% | -------------------------------------------------------------------------------- | Operating profit | 45,4 | 51,2 | -11,4% | 47,7 | -5,0% | | margin % | | | | | | -------------------------------------------------------------------------------- | Profit before taxes | 11,5 | 11,1 | 3,2% | 10,3 | 11,8% | -------------------------------------------------------------------------------- | Profit before taxes | 40,5 | 45,7 | -11,5% | 42,2 | -4,2% | | margin | | | | | | -------------------------------------------------------------------------------- | Net profit | 7,3 | 7,6 | -4,4% | 6,8 | 7,6% | -------------------------------------------------------------------------------- | ROA % | 4,6 | 4,9 | -6,4% | 4,4 | 5,4% | -------------------------------------------------------------------------------- | Debt to total | 55,7% | 55,8% | -0,1% | 55,8% | -0,1% | | capital employed | | | | | | -------------------------------------------------------------------------------- Gross profit margin - Gross profit / Net sales Operating profit margin - Operating profit / Net sales Profit before taxes margin - Profit before taxes / Net sales ROA - Net profit /Total Assets Debt to Total capital employed - Total Liabilities / Total capital employed Profit and Loss Statement 2nd quarter 2008 Sales In the 2nd quarter of 2008 the Company's total sales increased, year on year, by 32.6% to 14.9 mln EUR. Sales from the Company's main operating activities were 11.7 mln EUR. Sales in the main operating activity principally comprise of sales of water and treatment of wastewater to domestic and commercial customers within and outside of the service area, and fees received from the City of Tallinn for operating and maintaining the storm water system. Sales of water and wastewater services were 10.6 mln EUR, an 8.9% increase compared to the 2nd quarter of 2007, excluding the over pollution the increase was 9.2%, resulting from the 11.7% increase in tariffs from 1 January 2008 for the Company's residential and commercial customers combined with the factors described below. Included within this amount were the following increases by sector: within the service area sales to residential customers increased by 9.2% to 5.6 mln EUR. Sales to commercial customers increased by 6.6% to 4.5 mln EUR. Sales to customers outside of the service area - primarily bulk volumes of wastewater treatment services provided to the surrounding municipalities - increased by 52.0% reaching 821 thousand m3 or 0.38 mln EUR. Over pollution fees received were 0.23 mln EUR, same level as in the 2nd quarter of 2007. In the 2nd quarter of 2008, the volumes sold to residential customers dropped 2.3% or 171 thousand m3. We believe that this is mainly related to the fact that people are moving to the surrounding areas of Tallinn. The volumes sold to commercial customers inside the service area decreased compared to the relevant period in 2007 due to several factors combined. Part of the reduction in sales volumes in Tallinn is due to companies moving to the surrounding municipalities, supplemented by companies implementing different efficiency measures or reducing their production. Particularly the sales in 2nd quarter of 2008 compared to the 2nd quarter of 2007 were impacted by the fact that one of the Company's biggest industrial customers moved its facilities out of our area in the second half of 2007, this resulted in a water and sewage volumes loss of 56 thousand m3 in the 2nd quarter of 2008 compared to 2007. The real estate market stays relatively unchanged from last year. Although slightly lower than in 2007, the number of new apartments and business buildings being constructed this year in Tallinn remains high. A large share of new buildings still remain vacant as commercial customers as well as people in need of space are moving to surrounding areas due to more affordable real estate prices. This trend is also reflected in the Company's sales to surrounding areas, which has increased by 52.0% in the 2nd quarter of 2008 compared to the same period last year. This reflects the success of the Company's strategy to re-capture customers leaving Tallinn. The Company is actively looking for the further expansion opportunities into the neighboring municipalities. The sales from the operation and maintenance of the storm water and fire-hydrant system increased by 37.5% to 0.80 mln EUR in the 2nd quarter of 2008 compared to the same period in 2007. This is in accordance with the terms and conditions of the contract whereby the storm water and fire hydrant costs are invoiced based on actual costs and volumes treated. This is contractually agreed up to 2020. Sales revenues from other operating activities, mainly connections and storm water construction, totaled 3.3 mln EUR which is 2.5 mln EUR more than in the 2nd quarter of 2007. Before 2008 a considerable amount of works and revenues were confirmed and recorded in the first quarter. According to the new contract concluded with the City of Tallinn on 30th November 2007, the revenue flow is more even throughout the year. Starting from March 2008 the revenue in this line is mainly calculated using the Tallinn domestic water sales volumes and fixed development rate per cubic meter. This revenue line goes in pairs with the Cost of goods sold from other operating activities, where the respective costs of the constructions are recorded. Cost of Goods Sold and Gross Margin The cost of goods sold for the main operating activity was 4.4 mln EUR in the 2nd quarter of 2008, an increase of 0.71 mln EUR or 19.4% from the equivalent period in 2007. In the 2nd quarter of 2008 the Company did not achieve the beneficial 0.5 coefficient for pollution tax, and as a result the amount of pollution tax payable was 0.33 mln EUR compared to 0.06 mln EUR in 2nd quarter of 2007. The 2nd quarter of 2007 included also the reduction of the rates in 1st quarter of 2007 as the environmental body confirmed it only in 2nd quarter of 2007. Without the reduction 2007 2nd quarter cost would have been 0.09 mln EUR. Increase in pollution tax is due to the combination of the coefficient and increase in tax rates year on year by 20%, supplemented by volume and pollution impact. Despite the fact that the pollution level of the incoming sewerage does vary and the company does not have full control over storm water outlets regarding the pollution, we are working hard to use the optimum level of chemicals to achieve the 0.5 coefficient in the following quarters of 2008. The chemical costs were 0.42 mln EUR, this represents an 24.5% increase compared to the corresponding period in 2007. This result is the combination of volumes treated, chemicals dosed and the price inflation. Electricity costs increased by 0.01 mln EUR or 3.5% in the 2nd quarter of 2008 compared to the 2nd quarter of 2007 due to higher electricity prices combined with volumes treated. Salary expenses increased in the 2nd quarter of 2008, year on year, by 0.20 mln EUR or 25.0% due to a number of factors. Firstly, increased headcount from the new services launched. Secondly, a highly competitive labour market has led to significant salary inflation. Finally in the 1st quarter of 2008 the Company restructured and combined departments which resulted in transferring cost from one line to an other. Eliminating these structural changes would give us 17.0% increase in salaries. This is in line with the increase in average salaries in the Estonian market. Depreciation charges increased in the 2nd quarter of 2008 by 0.12 mln EUR or 10.4% year on year due to new sludge treatment building commissioned in the end of 2007. Also in the beginning of 2008 the depreciation rates were revised to correspond with the useful life of assets. Other cost of goods sold in the main operating activity increased by 0.02 mln EUR, or 2.4% year on year. This was due to higher costs on a number of support service contracts, such as transport, security services, maintenance cost, reflecting the significant increase in labour and services costs in Tallinn. But on the other hand it reflects Company's achievements to reduce costs by optimizing operations. The cost pressure sets the challenge to the management to identify the further efficiency opportunities through review of processes, procedures and procurements. As a result of all of the above the Company's gross profit for the 2nd quarter of 2008 was 7.6 mln EUR, which is an increase of 0.64 mln EUR, or 9.3%, compared to the gross profit of 7.0 mln EUR for the 2nd quarter of 2007. Operating Costs and Operating Margin Marketing expenses decreased by 0.02 mln EUR to 0.20 mln EUR during the 2nd quarter of 2008 compared to the corresponding period in 2007. This is partly the result of the structural changes, balanced by the increase in depreciation charges. General administration expenses decreased by 0.07 mln EUR to 0.91 mln EUR in the 2nd quarter of 2008 year on year, mainly as a consequence of structural changes. Included within all the above cost categories are staff costs. These totaled 1.4 mln EUR in the 2nd quarter of 2008, which is a 0.18 mln EUR or 14.9% increase compared to the same period in 2007. As mentioned earlier this was mainly due to the wide revision of salaries at the beginning of 2008. Other net income/expenses totaled an income of 0.01 mln EUR in the 2nd quarter of 2008 compared to an expense of 0.03 mln EUR in the 2nd quarter of 2007. As a result of all of the above the Company's operating profit for the 2nd quarter of 2008 was 6.5 mln EUR, an increase of 0.77 mln EUR compared to an operating profit of 5.7 mln EUR achieved in the 2nd quarter of 2007. Compared to the operating profit in the 2nd quarter of 2007, the operating profit has increased 13.3%. Financial expenses Net Financial expenses were 0.71 mln EUR in the 2nd quarter of 2008, which is an increase of 0.03 mln EUR or 4.6% compared to the 2nd quarter of 2007. The Company's interest costs have increased by 19.5% compared to the 2nd quarter of 2007. This is due to the increase in the 6 month Euribor rate. The increase in interest expenses is partially offset by an increase in financial income earned during the 2nd quarter of 2008, as a result of a more favourable cash position and increasing interest rates. Profit Before Tax The Company's profit before taxes for the 2nd quarter of 2008 was 5.8 mln EUR, which is 0.73 mln EUR higher than the profit before taxes of 5.1 mln EUR for the 2nd quarter of 2007. The Company recorded 4.2 mln EUR income tax as the result of 15.9 mln EUR dividends distributed in the 2nd quarter of 2008. Results for the 1st six months of 2008 During the 1st six months of 2008 the Company's total sales increased, year on year, by 16.6% to 28.4 mln EUR. Sales from the Company's main operating activities were 23.2 mln EUR. Sales of water and wastewater treatment were 21.4 mln EUR, a 10.5% increase compared to the 1st half of 2007. The Company's profit before taxes for the 1st six months of 2008 was 11.5 mln EUR, which is 0.36 mln EUR higher than the profit before taxes of 11.1 mln EUR in the relevant period in 2007. The results for the 1st half of 2007 were impacted by the fact that the Ministry of Environment gave final approval to the success of the nitrogen project, which resulted in the release of a provision worth 0.85 mln EUR for environmental taxes. Looking at the underlying profit before taxes for the 1st six months of 2007, it shows a 1.2 mln EUR or 11.8% increase in 2008 for the same period. Balance sheet During the 1st six months of 2008 the Company invested 6.3 mln EUR into fixed assets. Non-current assets were 138.3 mln EUR at 30 June 2008. Current assets decreased by 3.5 mln EUR to 20.4 mln EUR in the six months of the year, customer receivables decreased by 5.1 mln EUR. During the 1st six months of 2008 cash at bank increased by 0.86 mln EUR. Current liabilities increased by 6.4 mln EUR to 19.1 mln EUR in the six months of the year. This was mainly due to increases in Current portion of long-term borrowings by 2.7 mln EUR, as result of the reclassification of the loan based on repayment schedule and Taxes payable by 4.5 mln EUR. Increase in taxes payable reflects the income tax on dividends. The company continues to maintain its leverage level within its target range above 50% with total liabilities to total capital employed of 55.7% as of 30 June 2008. Long-term liabilities stood at 69.3 mln EUR at the end of June 2008, consisting almost entirely of the outstanding balance on the two long-term bank loans. Cash flow During the 1st six months of 2008, the Company generated 14.2 mln EUR of cash flows from operating activities, an increase of 3.1 mln EUR compared to the corresponding period in 2007. Underlying operating profit continues to be the main driver for growth, supplemented by debt collection in six months of 2008. In the six months of 2008 net cash inflows from investing activities were 2.6 mln EUR, which is 4.2 mln EUR more than in 2007. This was mainly due to some large construction revenue invoices that were due and paid in the 1st quarter 2008, offset by increased investment payments. In the 1st six months the company invested 6.3 mln EUR - 4.9 mln EUR on networks (including 3.4 mln EUR on extension and developments), 0.65 mln EUR at Paljassaare wastewater treatment plant and sludge treatment, 0.23 mln EUR on water quality (Ülemiste water treatment plant and raw water) and 0.48 mln EUR for other investments (IT, capital maintenance, meters, etc). The cash outflows from financing activities were 15.9 mln EUR during the 1st six months of 2008 compared to cash outflow of 12.6 mln EUR during the same six months of 2007, representing the dividend payouts of respective years. As a result of all of the above factors, the total cash inflow in the six months of 2008 was 0.86 mln EUR compared to a cash outflow of 3.1 mln EUR in the six months of 2007. Cash and cash equivalents stood at 12.3 mln EUR as at 30 June 2008. Employees At the end of the 2nd quarter of 2008, the number of employees was 316, compared to 319 at the end of the 2nd quarter of 2007. Dividends and share performance Based on the results of the 2007 financial year, the company paid 15,914,640 EUR of dividends. Of this 639 EUR was paid to the owner of the B-share and 15,914,000 EUR, i.e. 0.80 EUR per share to the owners of the A-shares. The dividends were paid out on 13 June 2008, based on the list of shareholders, which was fixed on 30 May 2008. As of 30 June 2008 AS Tallinna Vesi shareholders, with a direct holding over 5%, were: -------------------------------------------------------------------------------- | United Utilities (Tallinn) BV | 35.3% | -------------------------------------------------------------------------------- | City of Tallinn | 34.7% | -------------------------------------------------------------------------------- | Nordea Bank Finland Plc clients account trading | 8.72% | -------------------------------------------------------------------------------- | Morgan Stanley + Co International Equity client | 6.81% | | account | | -------------------------------------------------------------------------------- At the end of the quarter, 30 June 2008, the closing price of the AS Tallinna Vesi share was 11.81 EUR, which is a 5.5% decrease compared to the closing price of 12.50 EUR at the beginning of quarter, this is still outperforming the market as the OMX Tallinn index dropped by 8.5% during the quarter. Operational highlights in the six months of 2008 The company implemented the development component in the 1st quarter of 2008 according to the Services Agreement Amendment, which was signed with the City of Tallinn on 30 November 2007. The Services Agreement is extended until 2020 and the k-coefficient is also fixed until 2020 - 2% in years 2009 to 2010 and 0% in years 2011 to 2020. No extra capital expenditures (in addition to maintenance capex and extensions program agreed in the contract) can be imposed on the company until 2020. According to the agreement the network extension constructions must be completed by March 2011. To compensate the Company for the construction and financing costs, a specific development component is included into the Tallinn domestic water tariff starting from 1 March 2008 to the end of 2017, and the City of Tallinn will compensate 0.28 mln EUR every month for the storm water constructions until the end of 2011. The development component shall be compensated to the customers with direct payment to the company by the City of Tallinn. The component is bigger during the construction period (0.58 euros per m3 until 31 December 2011 and 0.39 euros per m3 in years 2012 to 2017). From the beginning of the year water and wastewater tariffs increased as approved by the City Council in 2007. The tariff increase was 11.7% in the main service area and was similar outside the main service area, depending on individual contracts with the municipalities. The usage of the web based self service has increased by 3 times compared to 2007, around 12% of invoices were issued via web. We are pleased to report the compliance with all requirements of the Levels of Services established by the contract with City of Tallinn. Additional information: Siiri Lahe Chief Financial Officer +372 6262 262 siiri.lahe@tvesi.ee -------------------------------------------------------------------------------- | INCOME STATEMENT | 6 months | 6 months | 12 months | -------------------------------------------------------------------------------- | (thousand EUR) | 2008 | 2007 | 2007 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Sales from main operating activities | 23 215 | 20 803 | 41 436 | -------------------------------------------------------------------------------- | Revenues from other operating activities | 5 234 | 3 595 | 11 021 | -------------------------------------------------------------------------------- | Net sales | 28 449 | 24 398 | 52 457 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Costs of goods sold (main operating | -8 588 | -6 519 | -13 848 | | activities) | | | | -------------------------------------------------------------------------------- | Costs of goods sold (other operating | -4 711 | -3 206 | -10 110 | | activities) | | | | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | GROSS PROFIT | 15 150 | 14 674 | 28 499 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Marketing expenses | -411 | -415 | -866 | -------------------------------------------------------------------------------- | General administration expenses | -1 836 | -1 888 | -3 633 | -------------------------------------------------------------------------------- | Other income/ expenses (-) | 2 | 126 | 118 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | OPERATING PROFIT | 12 905 | 12 496 | 24 118 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Financial income / expenses (-) | -1 394 | -1 347 | -2 827 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | PROFIT BEFORE TAXES | 11 511 | 11 150 | 21 291 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Income tax on dividends | -4 231 | -3 533 | -3 533 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | NET PROFIT FOR THE PERIOD | 7 280 | 7 616 | 17 757 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Attributable to: | | | | -------------------------------------------------------------------------------- | Equity holders of A-shares | 7 280 | 7 616 | 17 757 | -------------------------------------------------------------------------------- | B-share holder | 0,64 | 0,64 | 0,64 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Earnings per share in euros | 0,36 | 0,38 | 0,89 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | BALANCE SHEET | | | | -------------------------------------------------------------------------------- | (thousand EUR) |30.06.2008|30.06.2007 |31.12.2007 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | ASSETS | | | | -------------------------------------------------------------------------------- | CURRENT ASSETS | | | | -------------------------------------------------------------------------------- | Cash at bank and in hand | 12 264 | 12 813 | 11 403 | -------------------------------------------------------------------------------- | Commercial paper | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Customer receivables | 6 775 | 5 468 | 11 838 | -------------------------------------------------------------------------------- | Accrued income and prepaid expenses | 1 023 | 210 | 331 | -------------------------------------------------------------------------------- | Inventories | 262 | 259 | 233 | -------------------------------------------------------------------------------- | Assets for sale | 71 | 50 | 72 | -------------------------------------------------------------------------------- | TOTAL CURRENT ASSETS | 20 396 | 18 801 | 23 877 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | NON-CURRENT ASSETS | | | | -------------------------------------------------------------------------------- | Tangible assets | 128 271 | 122 882 | 127 375 | -------------------------------------------------------------------------------- | Intangible assets | 2 864 | 3 207 | 3 140 | -------------------------------------------------------------------------------- | Unfinished assets - non connections | 2 712 | 4 090 | 3 070 | -------------------------------------------------------------------------------- | Unfinished pipelines - new connections | 4 314 | 6 220 | 5 756 | -------------------------------------------------------------------------------- | Prepayments for fixed assets | 127 | 199 | 345 | -------------------------------------------------------------------------------- | TOTAL NON-CURRENT ASSETS | 138 289 | 136 597 | 139 686 | -------------------------------------------------------------------------------- | TOTAL ASSETS | 158 685 | 155 398 | 163 562 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | LIABILITIES | | | | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | CURRENT LIABILITIES | | | | -------------------------------------------------------------------------------- | Current portion of long-term borrowings | 5 301 | 0 | 2 651 | -------------------------------------------------------------------------------- | Trade and other payables, incl. dividends | 4 428 | 4 356 | 5 558 | -------------------------------------------------------------------------------- | Taxes payable | 6 167 | 4 939 | 1 693 | -------------------------------------------------------------------------------- | Short-term provisions | 159 | 143 | 143 | -------------------------------------------------------------------------------- | Deferred income | 3 058 | 2 652 | 2 691 | -------------------------------------------------------------------------------- | TOTAL CURRENT LIABILITIES | 19 113 | 12 090 | 12 736 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | NON-CURRENT LIABILITIES | | | | -------------------------------------------------------------------------------- | Bank loans | 69 311 | 74 555 | 71 932 | -------------------------------------------------------------------------------- | Other payables | 8 | 6 | 7 | -------------------------------------------------------------------------------- | TOTAL NON-CURRENT LIABILITIES | 69 318 | 74 562 | 71 939 | -------------------------------------------------------------------------------- | TOTAL LIABILITIES | 88 432 | 86 652 | 84 675 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | EQUITY CAPITAL | | | | -------------------------------------------------------------------------------- | Share capital | 12 782 | 12 782 | 12 782 | -------------------------------------------------------------------------------- | Share premium | 24 734 | 24 734 | 24 734 | -------------------------------------------------------------------------------- | Statutory legal reserve | 1 278 | 1 278 | 1 278 | -------------------------------------------------------------------------------- | Accumulated profit | 24 178 | 22 336 | 22 336 | -------------------------------------------------------------------------------- | Net profit for the period | 7 280 | 7 616 | 17 757 | -------------------------------------------------------------------------------- | TOTAL EQUITY CAPITAL | 70 253 | 68 746 | 78 887 | -------------------------------------------------------------------------------- | TOTAL LIABILITIES AND EQUITY CAPITAL | 158 685 | 155 398 | 163 562 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CASH FLOW STATEMENT | 6 months | 6 months | 12 months | -------------------------------------------------------------------------------- | (thousand EUR) | 2008 | 2007 | 2007 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | CASH FLOWS FROM OPERATING ACTIVITIES | | | | -------------------------------------------------------------------------------- | Operating profit | 12 905 | 12 496 | 24 118 | -------------------------------------------------------------------------------- | Adjustment for depreciation | 2 837 | 2 540 | 5 064 | -------------------------------------------------------------------------------- | Adjustment for income and expenses from | -523 | -390 | -911 | | constructions | | | | -------------------------------------------------------------------------------- | Other financial income and expenses | -51 | -23 | -101 | -------------------------------------------------------------------------------- | Profit from sale of fixed assets | 0 | 1 | -155 | -------------------------------------------------------------------------------- | Expensed fixed assets | 0 | 0 | 30 | -------------------------------------------------------------------------------- | Capitalization of operating expenses | -753 | -580 | -1 263 | -------------------------------------------------------------------------------- | Movement in current assets involved in | 1 186 | -632 | -2 049 | | operating activities | | | | -------------------------------------------------------------------------------- | Movement in liabilities involved in | 419 | -689 | -21 | | operating activities | | | | -------------------------------------------------------------------------------- | Interest paid | -1 807 | -1 652 | -3 386 | -------------------------------------------------------------------------------- | Total cash flow from operating activities | 14 212 | 11 069 | 21 326 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | CASH FLOWS FROM INVESTING ACTIVITIES | | | | -------------------------------------------------------------------------------- | Acquisition of fixed assets (incl | -6 823 | -5 887 | -16 997 | | pipelines construction) | | | | -------------------------------------------------------------------------------- | Proceeds from pipelines financed by | 8 758 | 3 885 | 6 509 | | construction income | | | | -------------------------------------------------------------------------------- | Proceeds from sale of and prepayments | 1 | 1 | 25 | | received for fixed assets | | | | -------------------------------------------------------------------------------- | Proceeds from sale of assets and real | 0 | 15 | 15 | | estate investments | | | | -------------------------------------------------------------------------------- | Interest received | 628 | 346 | 676 | -------------------------------------------------------------------------------- | Total cash flow from investing activities | 2 564 | -1 640 | -9 773 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | CASH FLOWS FROM FINANCING ACTIVITIES | | | | -------------------------------------------------------------------------------- | Finance lease payments | 0 | -30 | -30 | -------------------------------------------------------------------------------- | Dividends paid | -15 915 | -12 527 | -12 527 | -------------------------------------------------------------------------------- | Income tax on dividends | 0 | 0 | -3 533 | -------------------------------------------------------------------------------- | Total cash flow from financing activities | -15 915 | -12 558 | -16 091 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Change in cash and bank accounts | 861 | -3 128 | -4 537 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | CASH AND EQUIVALENTS AT THE BEGINNING OF | 11 403 | 15 940 | 15 940 | | THE PERIOD | | | | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | CASH AND EQUIVALENTS AT THE END OF THE | 12 264 | 12 813 | 11 403 | | PERIOD | | | | --------------------------------------------------------------------------------
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