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 445.1 mln EEK. 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 12.2 mln EEK. The Company's profit before taxes was 180.1 mln EEK, 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 98.1 mln EEK, of which 76.9 mln EEK was invested in network extension and rehabilitation. -------------------------------------------------------------------------------- | mln EEK | 6 | 6 | Change | 6 months | Change | | | months | months | | 2007 | | | | 2008 | 2007 | | underlying | | -------------------------------------------------------------------------------- | Sales | 445,1 | 381,8 | 16,6% | 381,8 | 16,6% | -------------------------------------------------------------------------------- | Main operating | 363,2 | 325,5 | 11,6% | 325,5 | 11,6% | | activities | | | | | | -------------------------------------------------------------------------------- | Other operating | 81,9 | 56,3 | 45,6% | 56,3 | 45,6% | | activities | | | | | | -------------------------------------------------------------------------------- | Gross profit | 237,0 | 229,6 | 3,2% | 216,3 | 9,6% | -------------------------------------------------------------------------------- | Gross profit margin % | 53,3 | 60,1 | -11,5% | 56,7 | -6,0% | -------------------------------------------------------------------------------- | Operating profit | 201,9 | 195,5 | 3,3% | 182,2 | 10,8% | -------------------------------------------------------------------------------- | Operating profit | 45,4 | 51,2 | -11,4% | 47,7 | -5,0% | | margin % | | | | | | -------------------------------------------------------------------------------- | Profit before taxes | 180,1 | 174,5 | 3,2% | 161,2 | 11,8% | -------------------------------------------------------------------------------- | Profit before taxes | 40,5 | 45,7 | -11,5% | 42,2 | -4,2% | | margin % | | | | | | -------------------------------------------------------------------------------- | Net profit | 113,9 | 119,2 | -4,4% | 105,9 | 7,6% | -------------------------------------------------------------------------------- | ROA % | 4,6 | 4,9 | -6,4% | 4,4 | 5,4% | -------------------------------------------------------------------------------- | Debt to total capital | 55,7% | 55,8% | -0,1% | 55,8% | -0,1% | | 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 233.9 mln EEK. Sales from the Company's main operating activities were 182.3 mln EEK. 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 166.6 mln EEK, 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 87.2 mln EEK. Sales to commercial customers increased by 6.6% to 69.9 mln EEK. 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 5.9 mln EEK. Over pollution fees received were 3.6 mln EEK, 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 12.5 mln EEK 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 51.5 mln EEK which is 39.5 mln EEK 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 68.2 mln EEK in the 2nd quarter of 2008, an increase of 11.1 mln EEK 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 5.1 mln EEK compared to 0.9 mln EEK 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 1.5 mln EEK. 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 6.6 mln EEK, 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 0.2 mln EEK 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 3.2 mln EEK 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 1.9 mln EEK 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 0.3 mln EEK, 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 118.8 mln EEK, which is an increase of 10.0 mln EEK, or 9.3%, compared to the gross profit of 108.8 mln EEK for the 2nd quarter of 2007. Operating Costs and Operating Margin Marketing expenses decreased by 0.3 mln EEK to 3.1 mln EEK 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 1.1 mln EEK to 14.2 mln EEK 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 22.0 mln EEK in the 2nd quarter of 2008, which is a 2.8 mln EEK 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 0.1 mln EEK in the 2nd quarter of 2008 compared to an expense of 0.4 mln EEK 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 101.7 mln EEK, an increase of 12.0 mln EEK compared to an operating profit of 89.7 mln EEK 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 11.1 mln EEK in the 2nd quarter of 2008, which is an increase of 0.5 mln EEK 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 90.6 mln EEK, which is 11.4 mln EEK higher than the profit before taxes of 79.2 mln EEK for the 2nd quarter of 2007. The Company recorded 66.2 mln EEK income tax as the result of 249.0 mln EEK 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 445.1 mln EEK. Sales from the Company's main operating activities were 363.2 mln EEK. Sales of water and wastewater treatment were 335.0 mln EEK, 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 180.1 mln EEK, which is 5.6 mln EEK higher than the profit before taxes of 174.5 mln EEK 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 13.3 mln EEK for environmental taxes. Looking at the underlying profit before taxes for the 1st six months of 2007, it shows an 18.9 mln EEK or 11.8% increase in 2008 for the same period. Balance sheet During the 1st six months of 2008 the Company invested 98.1 mln EEK into fixed assets. Non-current assets were 2,164 mln EEK at 30 June 2008. Current assets decreased by 54.5 mln EEK to 319.1 mln EEK in the six months of the year, customer receivables decreased by 79.2 mln EEK. During the 1st six months of 2008 cash at bank increased by 13.5 mln EEK. Current liabilities increased by 99.8 mln EEK to 299.1 mln EEK in the six months of the year. This was mainly due to increases in Current portion of long-term borrowings by 41.5 mln EEK, as result of the reclassification of the loan based on repayment schedule and Taxes payable by 70.0 mln EEK. 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 1,084.6 mln EEK 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 222.4 mln EEK of cash flows from operating activities, an increase of 49.2 mln EEK 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 40.1 mln EEK, which is 65.8 mln EEK 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 98.1 mln EEK - 76.9 mln EEK on networks (including 52.6 mln EEK on extension and developments), 10.1 mln EEK at Paljassaare wastewater treatment plant and sludge treatment, 3.6 mln EEK on water quality (Ülemiste water treatment plant and raw water) and 7.5 mln EEK for other investments (IT, capital maintenance, meters, etc). The cash outflows from financing activities were 249.0 mln EEK during the 1st six months of 2008 compared to cash outflow of 196.5 mln EEK 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 13.5 mln EEK compared to a cash outflow of 48.9 mln EEK in the six months of 2007. Cash and cash equivalents stood at 191.9 mln EEK 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 249,010,000 EEK of dividends. Of this 10,000 EEK was paid to the owner of the B-share and 249,000,000 EEK, i.e. 12.45 EEK 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 184.79 EEK (11.81 EUR), which is a 5.5% decrease compared to the closing price of 195.58 EEK (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 4.4 mln EEK 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 (9.00 kroons per m3 until 31 December 2011 and 6.10 kroons 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 EEK) | 2008 | 2007 | 2007 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Sales from main operating activities | 363 230 | 325 496 | 648 335 | -------------------------------------------------------------------------------- | Revenues from other operating activities | 81 900 | 56 257 | 172 437 | -------------------------------------------------------------------------------- | Net sales | 445 130 | 381 753 | 820 772 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Costs of goods sold (main operating | -134 376 | -102 005 | -216 677 | | activities) | | | | -------------------------------------------------------------------------------- | Costs of goods sold (other operating | -73 711 | -50 157 | -158 187 | | activities) | | | | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | GROSS PROFIT | 237 043 | 229 591 | 445 908 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Marketing expenses | -6 434 | -6 493 | -13 547 | -------------------------------------------------------------------------------- | General administration expenses | -28 721 | -29 543 | -56 849 | -------------------------------------------------------------------------------- | Other income/ expenses (-) | 27 | 1 971 | 1 850 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | OPERATING PROFIT | 201 915 | 195 526 | 377 362 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Financial income / expenses (-) | -21 810 | -21 073 | -44 237 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | PROFIT BEFORE TAXES | 180 105 | 174 453 | 333 125 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Income tax on dividends | -66 193 | -55 285 | -55 285 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | NET PROFIT FOR THE PERIOD | 113 912 | 119 168 | 277 840 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Attributable to: | | | | -------------------------------------------------------------------------------- | Equity holders of A-shares | 113 902 | 119 158 | 277 830 | -------------------------------------------------------------------------------- | B-share holder | 10 | 10 | 10 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Earnings per share in kroons | 5,70 | 5,96 | 13,89 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | BALANCE SHEET | | | | -------------------------------------------------------------------------------- | (thousand EEK) |30.06.2008| 30.06.2007| 31.12.2007| -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | ASSETS | | | | -------------------------------------------------------------------------------- | CURRENT ASSETS | | | | -------------------------------------------------------------------------------- | Cash at bank and in hand | 191 892 | 200 475 | 178 420 | -------------------------------------------------------------------------------- | Commercial paper | | 0 | 0 | -------------------------------------------------------------------------------- | Customer receivables | 106 011 | 85 559 | 185 223 | -------------------------------------------------------------------------------- | Accrued income and prepaid expenses | 16 010 | 3 293 | 5 179 | -------------------------------------------------------------------------------- | Inventories | 4 107 | 4 055 | 3 645 | -------------------------------------------------------------------------------- | Assets for sale | 1 109 | 783 | 1 120 | -------------------------------------------------------------------------------- | TOTAL CURRENT ASSETS | 319 129 | 294 165 | 373 587 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | NON-CURRENT ASSETS | | | | -------------------------------------------------------------------------------- | Tangible assets |2 007 000 | 1 922 686 | 1 992 978 | -------------------------------------------------------------------------------- | Intangible assets | 44 813 | 50 181 | 49 137 | -------------------------------------------------------------------------------- | Unfinished assets - non connections | 42 441 | 63 994 | 48 034 | -------------------------------------------------------------------------------- | Unfinished pipelines - new connections | 67 506 | 97 318 | 90 057 | -------------------------------------------------------------------------------- | Prepayments for fixed assets | 1 988 | 3 106 | 5 399 | -------------------------------------------------------------------------------- | TOTAL NON-CURRENT ASSETS |2 163 748 | 2 137 285 | 2 185 605 | -------------------------------------------------------------------------------- | TOTAL ASSETS |2 482 877 | 2 431 450 | 2 559 192 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | LIABILITIES | | | | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | CURRENT LIABILITIES | | | | -------------------------------------------------------------------------------- | Current portion of long-term borrowings | 82 942 | 0 | 41 486 | -------------------------------------------------------------------------------- | Trade and other payables, incl. dividends | 69 284 | 68 156 | 86 966 | -------------------------------------------------------------------------------- | Taxes payable | 96 494 | 77 286 | 26 486 | -------------------------------------------------------------------------------- | Short-term provisions | 2 486 | 2 231 | 2 231 | -------------------------------------------------------------------------------- | Deferred income | 47 854 | 41 491 | 42 099 | -------------------------------------------------------------------------------- | TOTAL CURRENT LIABILITIES | 299 060 | 189 164 | 199 268 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | NON-CURRENT LIABILITIES | | | | -------------------------------------------------------------------------------- | Bank loans |1 084 474 | 1 166 538 | 1 125 491 | -------------------------------------------------------------------------------- | Other payables | 121 | 100 | 113 | -------------------------------------------------------------------------------- | TOTAL NON-CURRENT LIABILITIES |1 084 595 | 1 166 638 | 1 125 604 | -------------------------------------------------------------------------------- | TOTAL LIABILITIES |1 383 655 | 1 355 802 | 1 324 872 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | 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 | -------------------------------------------------------------------------------- | Accumulated profit | 378 309 | 349 479 | 349 479 | -------------------------------------------------------------------------------- | Net profit for the period | 113 912 | 119 168 | 277 840 | -------------------------------------------------------------------------------- | TOTAL EQUITY CAPITAL |1 099 222 | 1 075 648 | 1 234 320 | -------------------------------------------------------------------------------- | TOTAL LIABILITIES AND EQUITY CAPITAL |2 482 877 | 2 431 450 | 2 559 192 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CASH FLOW STATEMENT | 6 months | 6 months | 12 months | -------------------------------------------------------------------------------- | (thousand EEK) | 2008 | 2007 | 2007 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | CASH FLOWS FROM OPERATING ACTIVITIES | | | | -------------------------------------------------------------------------------- | Operating profit | 201 915 | 195 526 | 377 362 | -------------------------------------------------------------------------------- | Adjustment for depreciation | 44 394 | 39 735 | 79 241 | -------------------------------------------------------------------------------- | Adjustment for income and expenses from | -8 188 | -6 099 | -14 250 | | constructions | | | | -------------------------------------------------------------------------------- | Other financial income and expenses | -803 | -366 | -1 585 | -------------------------------------------------------------------------------- | Profit from sale of fixed assets | -6 | 12 | -2 422 | -------------------------------------------------------------------------------- | Expensed fixed assets | 0 | 0 | 476 | -------------------------------------------------------------------------------- | Capitalization of operating expenses | -11 785 | -9 082 | -19 764 | -------------------------------------------------------------------------------- | Movement in current assets involved in | 18 556 | -9 890 | -32 062 | | operating activities | | | | -------------------------------------------------------------------------------- | Movement in liabilities involved in | 6 556 | -10 788 | -327 | | operating activities | | | | -------------------------------------------------------------------------------- | Interest paid | -28 275 | -25 849 | -52 986 | -------------------------------------------------------------------------------- | Total cash flow from operating activities | 222 364 | 173 199 | 333 683 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | CASH FLOWS FROM INVESTING ACTIVITIES | | | | -------------------------------------------------------------------------------- | Acquisition of fixed assets (incl | -106 754 | -92 104 | -265 951 | | pipelines construction) | | | | -------------------------------------------------------------------------------- | Proceeds from pipelines financed by | 137 039 | 60 789 | 101 840 | | construction income | | | | -------------------------------------------------------------------------------- | Proceeds from sale of and prepayments | 8 | 17 | 390 | | received for fixed assets | | | | -------------------------------------------------------------------------------- | Proceeds from sale of assets and real | 0 | 233 | 242 | | estate investments | | | | -------------------------------------------------------------------------------- | Interest received | 9 825 | 5 411 | 10 571 | -------------------------------------------------------------------------------- | Total cash flow from investing activities | 40 118 | -25 654 | -152 908 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | CASH FLOWS FROM FINANCING ACTIVITIES | | | | -------------------------------------------------------------------------------- | Finance lease payments | 0 | -473 | -473 | -------------------------------------------------------------------------------- | Dividends paid | -249 010 | -196 010 | -196 010 | -------------------------------------------------------------------------------- | Income tax on dividends | 0 | 0 | -55 285 | -------------------------------------------------------------------------------- | Total cash flow from financing activities | -249 010 | -196 483 | -251 768 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Change in cash and bank accounts | 13 472 | -48 938 | -70 993 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | CASH AND EQUIVALENTS AT THE BEGINNING OF | 178 420 | 249 413 | 249 413 | | THE PERIOD | | | | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | CASH AND EQUIVALENTS AT THE END OF THE | 191 892 | 200 475 | 178 420 | | PERIOD | | | | --------------------------------------------------------------------------------
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