Results of operations - for the 2nd quarter 2007 (EEK)

Tallinn, ESTONIA


MANAGEMENT REPORT                                                               
RESULTS OF OPERATIONS - FOR THE 2nd QUARTER 2007, EEK 

Overview                                                                        

During the 2nd quarter of 2007 sales to residential customers increased by 11.7%
year on year, sales to commercial customers within the service area increased by
9.2% year on year, and sales to commercial customers outside of the service area
reached 524 000 m3 or 3.9 mln EEK. The Company's quarterly operating profit was 
89.7 mln EEK, which is a 9.6 mln EEK increase compared to the 2nd quarter of    
2006. The Company launched to the market a new trademark Veemees, under which   
maintenance, emergency and construction services related to water supply and    
sewerage services will be offered to owners of private houses, housing          
associations, apartment owners, real estate developers and construction         
companies.                                                                      

--------------------------------------------------------------------------------
| EEK                   |  II Q  |  II Q  | Chang |   1H   |   1H   |  Change  |
|                       |  2007  |  2006  |   e   |  2007  |  2006  |          |
--------------------------------------------------------------------------------
| Sales                 |  176.4 |  160.5 |  9.9% |  381.8 |  336.5 |    13.4% |
--------------------------------------------------------------------------------
| Main operating        |  164.4 |  148.5 | 10.7% |  325.5 |  295.7 |    10.1% |
| activities            |        |        |       |        |        |          |
--------------------------------------------------------------------------------
| Other operating       |   12.0 |   12.1 | -0.5% |   56.3 |   40.9 |    37.7% |
| activities            |        |        |       |        |        |          |
--------------------------------------------------------------------------------
| Gross profit          |  108.8 |   95.0 | 14.5% |  229.6 |  189.8 |    20.9% |
--------------------------------------------------------------------------------
| Gross profit margin % |  61.7% |  59.1% |  4.3% |  60.1% |  56.4% |     6.6% |
--------------------------------------------------------------------------------
| Operating profit      |   89.7 |   80.1 | 12.0% |  195.5 |  185.1 |     5.6% |
--------------------------------------------------------------------------------
| Operating profit      |  50.9% |  49.9% |  2.0% |  51.2% |  55.0% |    -6.9% |
| margin %              |        |        |       |        |        |          |
--------------------------------------------------------------------------------
| Profit before taxes   |   79.2 |   69.3 | 14.2% |  174.5 |  164.4 |     6.1% |
--------------------------------------------------------------------------------
| Profit before taxes   |  44.9% |  43.2% |  3.9% |  45.7% |  48.8% |    -6.4% |
| margin %              |        |        |       |        |        |          |
--------------------------------------------------------------------------------
| Net profit            |   23.9 |   22.4 |  6.5% |  119.2 |  117.5 |     1.5% |
--------------------------------------------------------------------------------
| ROA %                 |   1.0% |   0.9% |  6.5% |   4.9% |   5.0% |    -1.7% |
--------------------------------------------------------------------------------
| Debt to total capital |  55.8% |  56.6% | -1.5% |  55.8% |  56.6% |    -1.5% |
| 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 2007                                                                

Sales                                                                           

In the 2nd quarter of 2007 the Company's total sales increased, year on year, by
9.9% to 176.4 mln EEK.  Sales from the Company's main operating activities were 
164.4 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 services area, and fees received from the City of     
Tallinn for operating and maintaining the stormwater system.                    

Sales of water and wastewater treatment were 152.9 mln EEK, a 10.7% increase    
compared to the second quarter of 2006, resulting from the 10.8% increase in    
tariffs from 1 January 2007 for the Company's residential and commercial        
customers.                                                                      

Included within this amount were the following increases by sector: Sales to    
residential customers increased by 11.7% to 79.8 mln EEK. Sales to commercial   
customers within the service area increased by 9.2% to 65.5 mln EEK. Sales to   
commercial customers outside of the service area - primarily bulk volumes of    
wastewater treatment services provided to the surrounding municipalities -      
reached 524 000 m3 or 3.9 mln EEK. Overpollution fees received were 0.7 mln EEK 
higher than in the 2nd quarter of 2006.                                         

In the 2nd quarter of 2007 sales from the operation and maintenance of the      
stormwater and firehydrant system increased by 10.4% to 9.1 mln EEK compared to 
the same period in 2006. This is in accordance with the terms and conditions of 
the contract whereby the stormwater and firehydrant costs are invoiced based on 
actual volumes treated. This is contractually agreed up to 2015.                

Sales revenues from other operating activities, at 12 mln EEK  (mainly          
connections and stormwater construction) remained at a similar level to the 2nd 
quarter of 2006.                                                                

Cost of Goods Sold and Gross Margin                                             

The cost of goods sold for the main operating activity was 57.1 mln EEK in the  
2nd quarter of 2007, an increase of 2.7 mln EEK or 5% from the equivalent period
in 2006.                                                                        

In the 2nd quarter of 2007 the Company has for the second successive quarter    
recorded zero failures in all pollution measures taken, and as a result the     
amount of pollution tax payable reduced by 2.2. mln EEK.                        

The Company continues to face increasing pressure on chemical prices            
especially coagulant. However these price increases have been partially offset  
by lower polymer dosages used, which resulted in a total quarterly charge of 5.3
mln EEK for chemical costs, which represents an 8.8% increase compared to the   
corresponding period in 2006.                                                   

Salaries increased by 0.9 mln EEK or 7.7%. As a consequence of the highly       
competitive labour market and rapidly growing salaries. In late 2006 all        
salaries were reviewed and increased to ensure competitiveness in the market and
retain key personnel.  However, the figure also reflects the efficiencies made  
from improvements in working practices that have led to a decrease in the       
headcount.  In the 2nd quarter of 2007, the average number of people working for
the Company was 305 people, compared to 326 people in the 2nd quarter of 2006.  

Other cost of goods sold in the main operating activity increased by 3 mln EEK, 
or 37% year on year. In the 2nd quarter of 2007 the company made a provision of 
1.3 mln EEK for the possible payment of servitude fees for the tolerance of     
technological structure on the private land. According to the new law that came 
in force in March 2007, the owners of the land can apply for the payment of a   
tolerance fee, if technological structures are established on their land. In    
addition, other costs increased due to a one-off increase in gas expenditures   
and increased costs on a number of support services contracts, such as          
transport, and security services reflecting the significant increase in labour  
costs in Tallinn.                                                               

As a result of all of the above the Company's gross profit for the 2nd quarter  
of 2007 was 108.8 mln EEK, which represents an increase of 13.8 mln EEK, or     
14.5%, compared to the gross profit of 95.0 mln EEK for the 2nd quarter of 2007.

Operating Costs and Operating Margin                                            

Marketing expenses increased by 1.1 mln EEK to 3.3 mln EEK during the 2nd       
quarter of 2007 compared to the corresponding period in 2006.  At the beginning 
of the 2nd quarter, the company formed a new business unit focusing on new      
business development. The related costs, including the preparation works for    
launching the new Veemees trademark (Waterman), have been accounted under       
marketing costs. The increase in depreciation charges accounted within marketing
expenses is due to the inclusion of the depreciation related to the completion  
of the last stage of implementation of the Customer Information and Billing     
system (KLIF).                                                                  

General administration expenses increased by 2.8 mln EEK to 15.3 mln EEK in the 
2nd quarter of 2007 as a consequence of an increase in salaries and other       
general administration expenses. Approximately 0.8 mln EEK accounted for        
switching from owning the computers into the lease contracts as well as         
outsource the maintenance of software development - a corresponding reduction   
can be found in the depreciation charge.  In addition a lower proportion of     
administrative salaries were capitalised due to the completion of the final     
stage of the Customer Information and Billing system (KLIF).                    

Included within the above cost categories are staff costs. These totaled 19.1   
mln EEK in the 2nd quarter of 2007, which is a 2.2 mln EEK or 12.7% increase    
compared to the same period in 2006, which as mentioned earlier was due to of   
the company wide revision of salaries.                                          

Other net income/expenses totaled a cost of 0.4 mln EEK in the 2nd quarter of   
2007 compared to a cost of 0.2 mln EEK in the 2nd quarter of 2006.              

As a result of all of the above the Company's operating profit for the 2nd      
quarter of 2007 was 89.7 mln EEK, an increase of 9.6 mln EEK compared to an     
operating profit of 80.1 mln EEK achieved in the 2nd quarter of 2006.           

Financial expenses                                                              

Net Financial expenses were 10.6 mln EEK in the 2nd quarter of 2007, which is a 
decrease of 0.2 mln EEK or 1.8% compared to the 2nd quarter of 2006. The        
Company`s interest costs have increased by 18% compared to the 2nd quarter of   
2006. This is due to the fact that half of the Company`s loans are connected to 
the 6 month Euribor rate, which has increased from 2.643% at the beginning of   
2006 up to 4.315% at the end of the 2nd quarter of 2007. The increase in        
interest expenses is offset by an increase in financial income earned during the
2nd quarter of 2007, as a result of improved cash management which led to more a
favourable cash position, and increasing interest rates.                        

With current rising interest rates the Company`s loans have quite favourable    
terms, with 37.5 mln EUR (586.7 mln EEK) fixed at 4.19% plus risk margin (48    
bps), 37.5 mln EUR (586.7 mln EEK) has a floating rate at six months Euribor    
plus risk margin (24 bps), from which 20.4 mln EUR (319.2 mln EEK) is hedged    
with a collar interest rate swap, where the Company pays 4% if the six months   
Euribor rate is between 4-5%.                                                   

Profit Before Tax                                                               

The Company's profit before taxes for the 2nd quarter of 2007 was 79.2 mln EEK, 
which is 9.8 mln EEK higher than the profit before taxes of 69.3 mln EEK for the
2nd quarter of 2006.                                                            

Results for the first six months of 2007                                        

During the first six months of 2007 the Company's total sales increased, year on
year, by 13.4% to 381.8 mln EEK.  Sales from the Company's main operating       
activities were 325.5 mln EEK. Sales of water and wastewater treatment were     
303.2 mln EEK, a 10.7% increase compared to the first half of 2006.             

The Company's profit before taxes for the first six months of 2007 was 174.5 mln
EEK, which is 10.1 mln EEK higher than the profit before taxes of 164.4 mln EEK 
in the relevant period in 2006. The results fo the first 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. The results for the first half of   
2006 were impacted by the sale of excess land in Paljassaare worth 24.1 mln EEK.
When eliminating these one-offs, the underlying profit before tax has increased 
by 21 mln EEK to 161 mln EEK i.e. 15% year-on-year.                             

Balance sheet                                                                   

During the six months of 2007 the Company invested 88.3 mln EEK into fixed      
assets. Tangible, intangible and unfinished assets were 2,134.2 mln EEK at 30   
June 2007. Current assets decreased by 36.3 mln EEK in the first six months of  
the year, which was largely attributable to a decrease in cash reflecting the   
dividend payout.                                                                

Current liabilities increased by 36.1 mln EEK to 189.2 mln EEK in the first six 
months of the year. This was mainly due to increased investment payables.       

The company continues to maintain its leverage level within its target range of 
50-60% with total liabilities to total capital employed of 56% as at 30 June    
2007. Long-term liabilities stood at 1,166.6 mln EEK at the end of June 2007,   
consisting almost entirely of the outstanding balance on the two long-term bank 
loans.                                                                          

Cash flow                                                                       

During the first six months of 2007, the Company generated 173.2 mln EEK of cash
flows from operating activities, an increase of 10.1 mln EEK compared to the    
corresponding period in 2006. Operating profit continues to be main driver for  
growth.                                                                         

In the 2nd quarter of 2007 net cash outflows from investing activities were 25.7
mln EEK, which is 19.7 mln EEK more than in 2006. This was mainly due to        
increased investment levels. In first six months of the year, the company       
invested 88.3 mln EEK - 49.7 mln EEK networks extension and rehabilitation, 27.4
mln EEK Paljassaare wastewater treatment plant and wastewater treatment, 6 mln  
EEK water quality (Ülemiste water treatment plant and raw water) and 5.2 mln EEK
other investments (IT, capital maintenance, meters, etc).                       

Cash outflows from financing activities were 196.5 mln EEK during the first six 
months of the year compared to cash outflow of 157.7 mln EEK during the first   
six months of 2006, reflecting increased dividend payments.                     

As a result of all of the above factors, the total cash outflow in the six      
months of 2007 was 48.9 mln EEK compared to a cash outflow of 0.1 mln EEK in the
first six months of 2006. Cash and cash equivalents stood at 200.5 mln EEK as at
31 June 2007.                                                                   

Employees                                                                       

In the second quarter of 2007 the average number of employees was 305 people.   

Dividends and share performance                                                 

Based on the results of the 2006 financial year, the Annual General Meeting of  
shareholders of AS Tallinna Vesi voted to pay 196,010,000 EEK of dividends. Of  
this 10 000 EEK was paid to the owner of the B-share and 196 000 000 EEK, i.e.  
9.8 EEK per share to the owners of the A-shares.  Dividends were paid on 15 June
2007.                                                                           

As of 30 June 2007 AS Tallinna Vesi shareholders, with a holding over 5%, were: 

--------------------------------------------------------------------------------
| United Utilities (Tallinn) BV                     |                    35.3% |
--------------------------------------------------------------------------------
| City of Tallinn	                                  |                    34.7% |
--------------------------------------------------------------------------------
| Morgan Stanley + Co International Equity client   |                    7.55% |
| account                                           |                          |
--------------------------------------------------------------------------------

At the end of the reporting period, 30 June 2007, the closing price of the AS   
Tallinna Vesi share was 207.32 EEK (13.25 EUR), which is a 12% decrease since   
the beginning of the year. This was partially due to fact that the company paid 
out dividends on June 15th as well as on June 29th over 100 000 shares were     
block traded at 8% below the market price. On the following trading day July    
2nd, the share price increased by 5.66% to 219.10 EEK (14.00 EUR)               

Operational achievements in 2007                                                

The work on the new Paljassaare sludge processing building continues and will be
completed in the 3rd quarter of 2007. The project will allow for the more       
effective and efficient operation and maintenance of this equipment and realise 
further benefits in the operation of the wastewater and sludge treatment        
processes. The sludge composting fields are to be completed in July 2007. These 
projects enable the Company to continue with its environmentally friendly and   
cost effective policy of disposing zero sludge to landfill. The total cost of   
the project is over 40 mln EEK.  
                                               
In the 2nd quarter, as in 1st quarter, all outfall effluent samples at all      
locations complied with requirements and as a consequence the environmental     
charges for the quarter attracted a 50% reduction.                              

In the 2nd quarter, the company's ISO and EMAS procedures were audited by DNV   
and the continued accreditation is confirmed. At the same time the company      
applied for OHSAS accreditation, the outcome of this audit was positive and     
OHSAS accreditation is expected to be awarded in the 3rd quarter of 2007.       

The Company launched to the market a new trademark Veemees, under which         
maintenance, emergency and construction services related to water supply and    
sewerage services will be offered to owners of private houses, housing          
associations, apartment owners, real estate developers and construction         
companies.                                                                      

--------------------------------------------------------------------------------
| INCOME STATEMENT                         |           |           |           |
--------------------------------------------------------------------------------
| (thousand EEK)                           |  6 months |  6 months | 12 months |
|                                          |      2007 |      2006 |      2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sales from main operating activities     |   325,496 |   295,656 |   589,176 |
--------------------------------------------------------------------------------
| Revenues from other operating activities |    56,257 |    40,854 |   104,048 |
--------------------------------------------------------------------------------
| Net sales                                |   381,753 |   336,510 |   693,224 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Costs of goods sold (main operating      |  -102,005 |  -109,242 |  -220,537 |
| activities)                              |           |           |           |
--------------------------------------------------------------------------------
| Costs of goods sold (other operating     |   -50,157 |   -37,424 |   -97,096 |
| activities)                              |           |           |           |
--------------------------------------------------------------------------------
|                                          |           |           |           |
--------------------------------------------------------------------------------
| GROSS PROFIT                             |   229,591 |   189,844 |   375,591 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Marketing expenses                       |    -6,493 |    -4,803 |    -9,578 |
--------------------------------------------------------------------------------
| General administration expenses          |   -29,543 |   -25,061 |   -51,319 |
--------------------------------------------------------------------------------
| Other income/ expenses (-)               |     1,971 |    25,109 |    23,229 |
--------------------------------------------------------------------------------
|                                          |           |           |           |
--------------------------------------------------------------------------------
| OPERATING PROFIT                         |   195,526 |   185,089 |   337,923 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income / expenses (-)          |   -21,073 |   -20,729 |   -42,981 |
--------------------------------------------------------------------------------
|                                          |           |           |           |
--------------------------------------------------------------------------------
| PROFIT BEFORE TAXES                      |   174,453 |   164,360 |   294,942 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income tax on dividends                  |   -55,285 |   -46,896 |   -46,896 |
--------------------------------------------------------------------------------
|                                          |           |           |           |
--------------------------------------------------------------------------------
| NET PROFIT FOR THE PERIOD                |   119,168 |   117,464 |   248,046 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to:                         |           |           |           |
--------------------------------------------------------------------------------
| Equity holders of A-shares               |   119,158 |   117,454 |   248,036 |
--------------------------------------------------------------------------------
| B-share holder                           |        10 |        10 |        10 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share in kroons             |         6 |         6 |        12 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BALANCE SHEET                            |           |           |           |
--------------------------------------------------------------------------------
| (thousand EEK)                           |30.06.2007 |30.06.2006 | 31.12.2006|
|                                          |           |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS                                   |           |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT ASSETS                           |           |           |           |
--------------------------------------------------------------------------------
| Cash at bank and in hand                 |   200,475 |   206,433 |   249,413 |
--------------------------------------------------------------------------------
| Customer receivables                     |    85,559 |    72,047 |    71,490 |
--------------------------------------------------------------------------------
| Accrued income and prepaid expenses      |     3,293 |     7,477 |     4,756 |
--------------------------------------------------------------------------------
| Inventories                              |     4,055 |     3,364 |     3,142 |
--------------------------------------------------------------------------------
| Assets for sale                          |       783 |     1,643 |     1,648 |
--------------------------------------------------------------------------------
| TOTAL CURRENT ASSETS                     |   294,165 |   290,964 |   330,449 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS                       |           |           |           |
--------------------------------------------------------------------------------
| Tangible assets                          | 1,922,686 | 1,814,159 | 1,877,105 |
--------------------------------------------------------------------------------
| Intangible assets                        |    50,181 |    40,701 |    52,595 |
--------------------------------------------------------------------------------
| Unfinished assets - non connections      |    63,994 |   118,530 |    91,676 |
--------------------------------------------------------------------------------
| Unfinished pipelines - new connections   |    97,318 |    88,342 |   117,162 |
--------------------------------------------------------------------------------
| Prepayments for fixed assets             |     3,106 |     3,192 |     2,795 |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT ASSETS                 | 2,137,285 | 2,064,924 | 2,141,333 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL ASSETS                             | 2,431,450 | 2,355,888 | 2,471,782 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LIABILITIES                              |           |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT LIABILITIES                      |           |           |           |
--------------------------------------------------------------------------------
| Current portion of long-term borrowings  |         0 |       946 |       473 |
--------------------------------------------------------------------------------
| Trade and other payables, incl.          |    68,156 |    47,158 |    85,250 |
| dividends                                |           |           |           |
--------------------------------------------------------------------------------
| Taxes payable, incl. dividends           |    77,286 |    83,981 |    30,508 |
--------------------------------------------------------------------------------
| Short-term provisions                    |     2,231 |       414 |       538 |
--------------------------------------------------------------------------------
| Deferred income                          |    41,491 |    35,608 |    36,325 |
--------------------------------------------------------------------------------
| TOTAL CURRENT LIABILITIES                |   189,164 |   168,107 |   153,094 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES                  |           |           |           |
--------------------------------------------------------------------------------
| Finance lease                            |         0 |       114 |         0 |
--------------------------------------------------------------------------------
| Bank loans                               | 1,166,538 | 1,165,659 | 1,166,098 |
--------------------------------------------------------------------------------
| Other payables                           |       100 |       100 |       100 |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT LIABILITIES            | 1,166,638 | 1,165,873 | 1,166,198 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES                        | 1,355,802 | 1,333,980 | 1,319,292 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 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                       |   349,479 |   297,443 |   297,443 |
--------------------------------------------------------------------------------
| Net profit for the period                |   119,168 |   117,464 |   248,046 |
--------------------------------------------------------------------------------
| TOTAL EQUITY CAPITAL                     | 1,075,648 | 1,021,908 | 1,152,490 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL LIABILITIES AND EQUITY CAPITAL     | 2,431,450 | 2,355,888 | 2,471,782 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOW STATEMENT                      |           |           |           |
--------------------------------------------------------------------------------
| (thousand EEK)                           |  6 months |  6 months |           |
|                                          |      2007 |      2006 |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOWS FROM OPERATING ACTIVITIES                 |           |           |
--------------------------------------------------------------------------------
| Operating profit                         |   195,526 |   185,089 |           |
--------------------------------------------------------------------------------
| Adjustment for depreciation              |    39,735 |    39,859 |           |
--------------------------------------------------------------------------------
| Adjustment for income and expenses from  |    -6,099 |    -3,429 |           |
| constructions                            |           |           |           |
--------------------------------------------------------------------------------
| Other financial income and expenses      |      -366 |      -794 |           |
--------------------------------------------------------------------------------
| Profit from sale of fixed assets         |        12 |   -24,680 |           |
--------------------------------------------------------------------------------
| Expensed fixed assets                    |         0 |       631 |           |
--------------------------------------------------------------------------------
| Capitalization of operating expenses     |    -9,082 |   -10,418 |           |
--------------------------------------------------------------------------------
| Movement in current assets involved in   |    -9,890 |    -7,542 |           |
| operating activities                     |           |           |           |
--------------------------------------------------------------------------------
| Movement in liabilities involved in      |   -10,788 |     7,495 |           |
| operating activities                     |           |           |           |
--------------------------------------------------------------------------------
| Interest paid                            |   -25,849 |   -23,159 |           |
--------------------------------------------------------------------------------
| Total cash flow from operating           |   173,199 |   163,052 |           |
| activities                               |           |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOWS FROM INVESTING ACTIVITIES                 |           |           |
--------------------------------------------------------------------------------
| Acquisition of fixed assets (incl        |   -92,104 |   -55,592 |           |
| pipelines construction)                  |           |           |           |
--------------------------------------------------------------------------------
| Proceeds from pipelines financed by      |    60,789 |    48,311 |           |
| construction income                      |           |           |           |
--------------------------------------------------------------------------------
| Proceeds from sale of and prepayments    |        17 |    -3,137 |           |
| received for fixed assets                |           |           |           |
--------------------------------------------------------------------------------
| Proceeds from sale of assets and real    |       233 |     1,107 |           |
| estate investments                       |           |           |           |
--------------------------------------------------------------------------------
| Interest received                        |     5,411 |     3,320 |           |
--------------------------------------------------------------------------------
| Total cash flow from investing           |   -25,654 |    -5,991 |           |
| activities                               |           |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOWS FROM FINANCING ACTIVITIES                 |           |           |
--------------------------------------------------------------------------------
| Finance lease payments                   |      -473 |      -695 |           |
--------------------------------------------------------------------------------
| Dividends paid                           |  -196,010 |  -157,000 |           |
--------------------------------------------------------------------------------
| Total cash flow from financing           |  -196,483 |  -157,695 |           |
| activities                               |           |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash and bank accounts         |   -48,938 |      -634 |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH AND EQUIVALENTS AT THE BEGINNING OF |   249,413 |   207,067 |           |
| THE PERIOD                               |           |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH AND EQUIVALENTS AT THE END OF THE   |   200,475 |   206,433 |           |
| PERIOD                                   |           |           |           |
--------------------------------------------------------------------------------

Additional information:                                                         
Eteri Harring                                                                   
Head of Treasury and Investor Relations                                         
+372 6262 225                                                                   
eteri.harring@tvesi.ee

Attachments

astv 6m eek eng.pdf