MANAGEMENT REPORT
RESULTS OF OPERATIONS - FOR THE 1st HALF-YEAR 2010
Overview
During the first six months of 2010 the Company's total sales increased, year on
year, by 1.4% to 387.0 mln EEK. The Company's underlying operating profit for
the first six months of 2010, from water and wastewater related activities,
decreased by 6.0% to 196.6 mln EEK compared to the six months of 2009. Profits
from other activities (mainly construction and developments) increased by 140.6%
to 20.9 mln EEK compared to the same six months of 2009. The Company's profit
before taxes was 172.9 mln EEK, which is on the same level compared to the same
six months of 2009.
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| mln EEK | 2 Q | 2 Q | Change | 6 months |6 months | Change |
| | 2010 | 2009 | | 2010 | 2009 | |
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| Sales | 195,6 | 189,0 | 3,5% | 387,0 | 381,7 | 1,4% |
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| Gross profit | 114,6 | 121,0 | -5,2% | 233,7 | 247,0 | -5,4% |
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| Gross profit margin% | 58,6 | 64,0 | -8,4% | 60,4 | 64,7 | -6,7% |
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| Operating profit | 112,4 | 107,0 | 5,0% | 217,5 | 217,9 | -0,2% |
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| Operating profit - | 95,9 | 101,8 | -5,8% | 196,6 | 209,2 | -6,0% |
| main business | | | | | | |
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| Operating profit | 57,5 | 56,6 | 1,4% | 56,2 | 57,1 | -1,5% |
| margin % | | | | | | |
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| Profit before taxes | 91,0 | 74,5 | 22,1% | 172,9 | 172,9 | 0,0% |
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| Net profit | -41,9 | 13,4 | -413,1%| 40,0 | 111,8 | -64,2% |
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| Net profit margin % | -21,4 | 7,1 | -402,5%| 10,3 | 29,3 | -64,7% |
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| ROA % | -1,6 | 0,5 | -391,0%| 1,5 | 4,5 | -66,7% |
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| Debt to total | 65,5 | 53,6 | 22,2% | 65,5 | 53,6 | 22,2% |
| capital employed | | | | | | |
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Gross profit margin - Gross profit / Net sales
Operating profit margin - Operating profit / Net sales
Net Profit margin - Net Profit / Net sales
ROA - Net profit /Total Assets
Debt to Total capital employed - Total Liabilities / Total capital employed
Main business - water and wastewater activities, excl. connections profit and
government grants
Profit and Loss Statement
2nd quarter 2010
Sales
In the 2nd quarter of 2010 the Company's total sales increased, year on year, by
3.5% to 195.6 mln EEK. Included within this is a contribution of 6.2 mln EEK
from Maardu, a contract which commenced in the 3rd quarter of 2009. Without
Maardu, total sales would have been down by 3.2% compared to the 2nd quarter of
2009. Sales in the main operating activity principally comprise of sales of
water and treatment of wastewater to domestic and commercial customers within
and outside of the service area, and fees received from the City of Tallinn for
operating and maintaining the storm water system.
Sales of water and wastewater services were 178.6 mln EEK, a 2.7% increase
compared to the 2nd quarter of 2009, resulting from the factors described below
which were partially offset by the 0.9% decrease in tariffs from 1 January 2010
for the Company's residential and commercial customers.
Within the service area, sales to residential customers decreased by 2.2% to
92.6 mln EEK. Sales to commercial customers decreased by 1.4% to 67.9 mln EEK.
Sales to customers outside of the service area increased by 117.3% to 14.3 mln
EEK, which now includes the Maardu operating contract which commenced from 1st
July 2009. Over pollution fees received were 3.8 mln EEK, a 0.01% increase
compared to the 2nd quarter of 2009.
In the 2nd quarter of 2010, the volumes sold to residential customers dropped
1.3%. We believe that this is due to the combination of the ongoing effect of
the difficult economic conditions experienced during the last year and the fact
that people have continued to move to the surrounding areas of Tallinn.
The volumes sold to commercial customers inside the service area decreased by
0.4% compared to the same period in 2009. The majority of the reduction in
commercial sales volumes in Tallinn is a result of one of the most sizeable
clients within the industrial sector, Coca-Cola, reducing their production in
Tallinn from the beginning of the year, with this contributing an 83.4% decrease
from the same period in 2009 for the client. Coca-Cola ceased production in
Tallinn completely from April 2010. This decrease in industrial sector is mostly
offset by sales picking up in other commercial sectors, such as leisure and
tourism.
Excluding Maardu volumes, then outside service area volumes were 60.3% higher
than in the 2nd quarter of 2009. The main factor in this increase was higher
storm water volumes in April and May following the commencement of the thaw and
wet weather but additionally sewage volumes were also higher in the current
year.
The sales from the operation and maintenance of the storm water and fire-hydrant
system increased by 2.1% to 12.5 mln EEK in the 2nd quarter of 2010 compared to
the same period in 2009. This is in accordance with the terms and conditions of
the contract whereby the storm water and fire hydrant costs are invoiced based
on actual costs and volumes treated.
Cost of Goods Sold and Gross Margin
The cost of goods sold for the main operating activity was 80.9 mln EEK in the
2nd quarter of 2010, an increase of 12.9 mln EEK or 19.0% from the equivalent
period in 2009 of which Maardu added 4.2 mln EEK.
In the 2nd quarter of 2010 the Company did not achieve the beneficial 0.5
coefficient for pollution tax, and the amount of pollution tax payable was 11.0
mln EEK compared to 5.7 mln EEK in the 2nd quarter of 2009. In the 2nd quarter
of 2009 we did not achieve the 0.5 coefficient also, so the higher pollution tax
payable in 2010 is generated by the increase in tax rates year on year by 19%
and by the increase in treatment volumes. In the 3rd quarter of 2009 an
investment into an additional stage of waste water treatment was approved for
which the procurement process was finalized in the 2nd quarter of 2010.
Chemical costs were 5.2 mln EEK, representing a 3.9% decrease compared to the
corresponding period in 2009. Although higher volumes were treated and chemicals
dosed the lower price of the chemicals led to the decrease in chemicals costs.
Electricity costs increased by 2.9 mln EEK or 36.2% in the 2nd quarter of 2010
compared to the 2nd quarter of 2009 due to higher electricity prices as a result
of three sites buying electricity from the open market and also because of
higher volumes treated and pumped.
Salary expenses increased in the 2nd quarter of 2010, year on year, by 0.05 mln
EEK or 0.3%.
Depreciation charges decreased in the 2nd quarter of 2010 by 0.4 mln EEK or 1.8%
year on year.
Transport costs increased by 0.2 mln EEK, or 5.7% year on year, due to the
combination of the increase in fuel prices and increased usage of rented
machines.
Other cost of goods sold in the main operating activity increased 4.6 mln EEK,
or 72.6% year on year, mainly due to the costs of operating in Maardu as this
was not operational in the 2nd quarter of 2009.
As a result of all of the above the Company's gross profit for the 2nd quarter
of 2010 was 114.6 mln EEK, which is a decrease of 6.3 mln EEK, or 5.2%, compared
to the gross profit of 121.0 mln EEK for the 2nd quarter of 2009.
Operating Costs and Operating Margin
Marketing expenses increased by 0.2 mln EEK to 2.8 mln EEK during the 2nd
quarter of 2010 compared to the corresponding period in 2009. This is mainly the
result of a slight increase in salary expenses compared to corresponding period
in 2009.
In the 2nd quarter of 2010 the General administration expenses increased by 1.2
mln EEK year on year to 14.0 mln EEK.
Other net income/expenses
The majority of the income in Other net income/expenses relates to constructions
and government grants. The driver for this income stream is the connections
activity in Tallinn. Income and expenses from constructions and government
grants totaled a net income of 16.5 mln EEK in the 2nd quarter of 2010 compared
to a net income of 5.2 mln EEK in the 2nd quarter of 2009. This was primarily
due to a revision on the accounting for the contract.
The rest of the other income/expenses totaled an expense of 2.0 mln EEK in the
2nd quarter of 2010 compared to an expense of 3.8 mln EEK in the 2nd quarter of
2009, mainly from lower provisioning of doubtful debt compared to 2009. In
addition it should be noted that more than 99% of debt is collected in a timely
manner.
As a result the Company's underlying operating profit from sales of water and
wastewater for the 2nd quarter of 2010 totaled 95.9 mln EEK compared to 101.8
mln EEK in the corresponding quarter in 2009. In total then the Company's
operating profit for main and other activities for the 2nd quarter of 2010 was
112.4 mln EEK, an increase of 5.3 mln EEK compared to an operating profit of
107.0 mln EEK achieved in the 2nd quarter of 2009. Year on year the operating
profit for the 2nd quarter has increased 5.0%.
Financial expenses
Net Financial expenses were 21.3 mln EEK in the 2nd quarter of 2010, which is a
decrease of 11.1 mln EEK or 34.3% compared to the 2nd quarter of 2009. Of this
variance 15.6 mln EEK relates to a loss on the fair value of swap contracts in
the 2nd quarter of 2010. However we experienced a 27.6 mln EEK loss in the 2nd
quarter of 2009 in relation to loan transaction losses which increased the prior
year financial expense. Taking into account these expenses the underlying
business financial expenses increased by 0.8 mln EEK in total compared to 2009.
The Company's interest costs have decreased by 100.9% compared to the 2nd
quarter of 2009 from 11.9 mln EEK to 5.7 mln EEK as a result of the reduction in
Euribor rates and the replacement of our fixed interest rate loan (4.19% + risk
margin), by loans with floating interest rates in 2009. The Company decided to
mitigate the long term floating interest risk and in May 2009 concluded 3
interest swap agreements, each with a principal value of 15 mln EUR. All
contracts have forward start dates, for a base amount of 30 mln EUR the forward
start date began on 28 November 2009, and for a base amount of 15 mln EUR the
forward start date began on 28 May 2010. At this point in time the estimated
fair value of these swap contracts is negative, totaling 51.1 mln EEK, with a
further devaluation in 2nd quarter 2010 in the amount of 15.6 mln EEK which more
than offsets the interest costs savings and the financial income earned during
the 2nd quarter of 2010 thus contributing to a net financial expense.
Profit Before Tax
The Company's profit before taxes for the 2nd quarter of 2010 was 91.0 mln EEK,
which is 16.5 mln EEK higher than the profit before taxes of 74.5 mln EEK for
the 2nd quarter of 2009.
Results for the six months of 2010
During the six months of 2010 the Company's total sales increased, year on year,
by 1.4% to 387.0 mln EEK. Sales of water and wastewater treatment were 354.7 mln
EEK, a 1.1% increase compared to the six months of 2009.
The underlying operating profit from the Company's main business activity, sales
of water and wastewater, for the six months of 2010 decreased by 6.0% to 196.6
mln EEK compared to the six months of 2009.
The Company's profit before taxes for the six months of 2010 was 172.9 mln EEK,
which is at the same level as the profit before taxes in the relevant period in
2009.
The Company's net profit for the six months of 2010 was 40.0 mln EEK, which is
71.8 mln EEK lower than the net profit of 111.8 mln EEK in the equivalent period
in 2009.
Balance sheet
During the six months of 2010 the Company invested 42.9 mln EEK into fixed
assets. Non-current assets were 2,186.6 mln EEK at 30 June 2010. Current assets
increased by 19.1 mln EEK to 508.0 mln EEK in the six months of the year, with
customer receivables decreasing by 12.3 mln EEK and cash at bank increasing by
31.2 mln EEK.
Current liabilities increased by 219.9 mln EEK to 334.9 mln EEK in the six
months of the year. This was mainly due to a 160.8 mln EEK increase in Trade
payables largely due to outstanding interest payable and outstanding income tax
payable on dividends and also due to 56.5 mln EEK increase in Current portion of
long-term borrowings.
The Company has a leverage level as expected of approximately 65% with the
future target range within 60%. Long-term liabilities stood at 1,428.5 mln EEK
at the end of June 2010, consisting almost entirely of the outstanding balance
of three long-term bank loans. During 2nd quarter of 2010 we have drawn down an
additional 20 mln EUR, and at the end of the 2nd quarter of 2010 the total loan
balance is 95 mln EUR, which is the total available loan facility. The weighted
average interest margin for the total available facility is 0.67%.
Cash flow
During the six months of 2010, the Company generated 226.1 mln EEK of cash flows
from operating activities, an increase of 31.5 mln EEK compared to the
corresponding period in 2009. The increase in operating cash flows is mainly due
to the increased liability balance in the six months of 2010. Underlying
operating profit still continues to be the main contributor to operating cash
flows.
In the six months of 2010 net cash outflows from investing activities were 7.8
mln EEK, which is 21.0 mln EEK more than in 2009. This is mainly due to reduced
inflow due to timing of compensations received for construction of pipelines. To
date in 2010 the cash outflows in relation to fixed asset investments are 64.1
mln EEK.
The cash outflows from financing activities were 187.1 mln EEK during the six
months of 2010 compared to a cash outflow of 230.3 mln EEK during the same six
months of 2009, representing the payouts of the dividends and received loans
following the loan drawdown.
As a result of all of the above factors, the total cash inflow in the six months
of 2010 was 31.2 mln EEK compared to a cash outflow of 22.5 mln EEK in the six
months of 2009. Cash and cash equivalents stood at 323.7 mln EEK as at 30 June
2010 which is 116.3 mln EEK higher than at the corresponding period of 2009.
Employees
At the end of the 2nd quarter of 2010, the total number of employees was 319
compared to 332 at the end of the 2nd quarter of 2009. The full time equivalent
(FTE) was respectively 303 in 2010 compared to the 316 in 2009. The decrease in
FTE is primarily due to reorganization in various departments at the end of
2009.
Corporate structure
At the end of the quarter, 30 June 2010, the Group consisted of 2 companies. The
subsidiary Watercom OÜ is wholly owned by ASTV.
Dividends and share performance
Based on the results of the 2009 financial year, the Company paid 500,010,000
EEK of dividends. Of this 10,000 EEK was paid to the owner of the B-share
and 500,000,000 EEK, i.e. 25.00 EEK per share to the owners of the A-shares. The
dividends were paid out on 11 June 2010, based on the list of shareholders,
which was fixed on 01 June 2010.
AS Tallinna Vesi is listed on OMX Main Baltic Market with trading code TVEAT and
ISIN EE3100026436.
As of 30 June 2010 AS Tallinna Vesi shareholders, with a direct holding over 5%,
were:
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| United Utilities (Tallinn) BV | 35.3% |
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| City of Tallinn | 34.7% |
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We have seen the next two biggest shareholders Parvus AM and AKO Capital
reducing their holdings in the Company in the quarter. Parvus AM has declared
that their shareholding in the clients' accounts is below 10% and AKO Capital
has declared their indirect ownership below 5% of the share capital.
At the end of the quarter, 30 June 2010, the closing price of the AS Tallinna
Vesi share was 126.27 EEK (8.07 EUR), which is a 24.65% decrease compared to the
closing price of 167.58 EEK (10.80 EUR) at the beginning of the quarter. During
the same period the OMX Tallinn index dropped by 9.07%.
Operational highlights in the first six months of 2010
AS Tallinna Vesi's overall operating performance in the first half of 2010 was
good. The Company is pleased to report that the key indicator of water quality
is at its highest ever level. Other indicators in the first half of 2010 were
impacted by the extreme weather conditions, which greatly affected leakage
levels and the number of service interruptions. The Company is however pleased
to report that the action plans it put in place during April have delivered
significant benefits and the performance in the 2nd quarter of 2010 showed a
significant improvement from the 1st quarter. AS Tallinna Vesi is on target to
achieve its required levels of service and quality standards agreed with the
City of Tallinn in the Services Agreement by the end of 2010.
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| Operation Performance | 6 months | 6 months |
| | 2009 | 2010 |
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| Water | | |
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| Water compliance at customer's premises % | 99,72 | 99,86 |
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| Total number of customer interruptions | 281 | 269 |
| (unplanned) | | |
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| Average unplanned interruption time per | 3.38 | 4.11 |
| property hrs | | |
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| Number of customer contacts regarding water | 4 | 7 |
| pressure | | |
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| Loss of water in distribution system % | 17.18 | 21,10 |
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| Wastewater | | |
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| Number of sewer blockings | 571 | 725 |
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| Number of sewer collapses | 57 | 55 |
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| Wastewater treatment compliance % | 100 | 100 |
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| Sludge used in reclamation projects % | 100 | 100 |
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| Network Extension Program | | |
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| Network Extension Program completion per | | |
| annual plan % | | |
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| Number of properties given access to public | 76 | 29 |
| sewerage network | | |
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Water
99.86% of water samples taken from the taps of the customers of AS Tallinna Vesi
were compliant with the requirements in the first half of 2010, making this the
best water quality result ever. This was achieved through the refurbishing of
the company's ozone generators, which are among the largest in the world and
have greatly improved the quality of drinking in water in Tallinn.
Water quality remains on a very similar level to last year and there have not
been any signs of residue from the accident that occurred on March 18th.
Water quality in Lake Ülemiste is affected by rising water temperatures, but
remains on a similar level as in last year. The Company monitors the situation
in the lake closely in order to be able to take prompt actions to ensure the
best water quality.
Network
The Company's objective has always been to repair the leakages as quickly as
possible, but this year special attention was paid to notifying the customers of
repair works prior to commencing, thus greatly reducing the number of unplanned
interruptions to 269, despite the increased number of pipe bursts.
The level of leakages has increased in the water and wastewater network due to
pipe bursts in the winter, but an action plan has been devised and implemented
to reduce leakages even further. The quality regulation in Tallinn requires AS
Tallinna Vesi to reduce water loss in the network to 26%, but despite the severe
winter the Company's level of leakages in the first half of the year was 21.1%.
Wastewater Treatment Plant
Excessive snowmelt in the beginning of the 2nd quarter had minimal impact on the
environment, as the wastewater treatment plant in Paljassaare treated more load
than ever before. The quality of effluent after treatment in Paljassaare is of
high standard and complies with stringent environmental requirements. However,
due to risk of failing to meet the parameters for nitrogen removal in the
future, the Company will be building an additional treatment stage at the
wastewater treatment plant. The construction of the biofilter will commence in
July this year and will be completed by July 2011.
Network Extension Program
The Company is committed to delivering the network extension program by the year
2011 as agreed with the City of Tallinn and as required by the European Union
directive for wastewater collection. The start of the construction season was
delayed by the winter lasting well into April, but nearly a half of the planned
network for 2010 has been built already. AS Tallinna Vesi will be constructing
5.1 kilometres of water pipes, 39.4 kilometres of wastewater pipes and 12.5
kilometres of storm water pipes in 2010. This construction programme will give
over 1,100 homes the opportunity to connect to the wastewater network.
Maardu
July 1st marked the anniversary of the beginning of cooperation between the City
of Maardu and AS Tallinna Vesi, whereby AS Tallinna Vesi is now operating the
assets of AS Maardu Vesi.
AS Maardu Vesi has now received the designs for connection pipes between Maardu
and Tallinn for the delivery of quality surface water from Lake Ülemiste to
Maardu and to remove Maardu's wastewater for treatment at the Paljassaare
wastewater treatment plant. Designs have also been completed for giving more
than 3,000 properties in Muuga access to the public water and wastewater system,
for reconstructing sewerage pipes in Vana-Narva road area and for rebuilding the
pipes network in Kallavere. The connection pipes between Maardu and Tallinn will
be built by the second half of 2011 and the Muuga network will be completed by
the end of 2012.
Customers and Community
The Company held its annual open door day at the Paljassaare wastewater
treatment plant in May, attracting over 240 people and more than 30 children.
The visitors were treated to a tour of the facilities.
The Company has sold over 10,000 tons of soil reconditioner, which is a
by-product created in the wastewater treatment process and is used for
reforestation and landscaping. The Company also distributed nearly 1,200 tons of
soil reconditioner as part of a community project in the districts of Mustamäe
and Northern Tallinn in cooperation with local municipalities to restore the
regions' greenness after the winter.
A major contributing factor to sewer blockages is the low awareness of consumers
about what is disposable in the sewerage system and what isn't. For this purpose
the Company launched an awareness campaign in June, informing the public of the
correct maintenance of the sewerage system.
AS Tallinna Vesi will be holding its annual open door days at the Ülemiste water
treatment plant on August 28th, inviting everyone to see the process of water
treatment and enjoy a fun family day that coincides with the running competition
around Lake Ülemiste. Last year more than 700 people participated in the tours
and over 2,000 runners took part in the race.
Additional information:
Stephen Howard
Chief Financial Officer
+372 6262 262
stephen.howard@tvesi.ee
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| STATEMENT OF | II | II | 6 months | 6 months | 12 |
| COMPREHENSIVE INCOME | quarter | quarter | | | months |
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| (thousand EEK) | 2010 | 2009 | 2010 | 2009 | 2009 |
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| | | | | | |
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| Revenue | 195 562 | 188 959 | 387 006 | 381 717 | 772 446 |
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| Costs of goods sold | -80 931 | -68 004 | -153 351 | -134 686 | -284 064 |
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| | | | | | |
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| GROSS PROFIT | 114 631 | 120 955 | 233 655 | 247 031 | 488 382 |
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| | | | | | |
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| Marketing expenses | -2 803 | -2 597 | -5 989 | -6 010 | -11 213 |
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| General administration | -13 988 | -12 758 | -26 775 | -26 898 | -53 493 |
| expenses | | | | | |
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| Other income/ expenses | 14 519 | 1 424 | 16 614 | 3 746 | 38 264 |
| (-) | | | | | |
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| | | | | | |
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| OPERATING PROFIT | 112 359 | 107 024 | 217 505 | 217 869 | 461 940 |
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| | | | | | |
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| Financial income | 3 499 | 5 993 | 7 248 | 11 917 | 25 267 |
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| Financial expenses | -24 848 | -38 491 | -51 851 | -56 863 | -86 131 |
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| | | | | | |
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| PROFIT BEFORE TAXES | 91 010 | 74 526 | 172 902 | 172 923 | 401 076 |
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| | | | | | |
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| Income tax on dividends | -132 | -61 142 | -132 914 | -61 142 | -61 142 |
| | 914 | | | | |
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| | | | | | |
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| NET PROFIT FOR THE | -41 904 | 13 384 | 39 988 | 111 781 | 339 934 |
| PERIOD | | | | | |
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| | | | | | |
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| Attributable to: | | | | | |
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| Equity holders of | 0 | 13 374 | 39 978 | 111 771 | 339 924 |
| A-shares | | | | | |
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| B-share holder | 0 | 10 | 10 | 10 | 10 |
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| | | | | | |
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| Earnings per A share | 0,00 | 0,67 | 2,00 | 5,59 | 17,00 |
| (in kroons) | | | | | |
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| Earnings per B share | 0 | 10 000 | 10 000 | 10 000 | 10 000 |
| (in kroons) | | | | | |
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| STATEMENT OF FINANCIAL POSITION | | | |
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| (thousand EEK) |30.06.2010| 30.06.2009| 31.12.2009|
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| | | | |
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| ASSETS | | | |
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| CURRENT ASSETS | | | |
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| Cash and equivalents | 323 689 | 207 364 | 292 474 |
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| Customer receivables, accrued income and | 178 978 | 117 894 | 191 317 |
| prepaid expenses | | | |
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| Inventories | 4 096 | 3 111 | 3 819 |
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| Non-current assets held for sale | 1 201 | 1 057 | 1 209 |
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| TOTAL CURRENT ASSETS | 507 964 | 329 426 | 488 819 |
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| | | | |
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| NON-CURRENT ASSETS | | | |
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| Property, plant and equipment |2 151 031 | 2 130 584 | 2 152 952 |
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| Intangible assets | 35 596 | 45 131 | 40 319 |
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| TOTAL NON-CURRENT ASSETS |2 186 627 | 2 175 715 | 2 193 271 |
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| TOTAL ASSETS |2 694 591 | 2 505 141 | 2 682 090 |
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| | | | |
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| LIABILITIES | | | |
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| | | | |
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| CURRENT LIABILITIES | | | |
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| Current portion of long-term borrowings | 60 403 | 3 937 | 1 936 |
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| Trade and other payables | 258 648 | 127 627 | 97 866 |
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| Short-term provisions | 2 668 | 3 693 | 3 570 |
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| Prepayments and deferred income | 13 194 | 32 045 | 11 687 |
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| TOTAL CURRENT LIABILITIES | 334 913 | 167 302 | 115 059 |
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| | | | |
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| NON-CURRENT LIABILITIES | | | |
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| Borrowings |1 426 703 | 1 174 055 | 1 174 034 |
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| Other payables | 1 795 | 735 | 1 795 |
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| TOTAL NON-CURRENT LIABILITIES |1 428 498 | 1 174 790 | 1 175 829 |
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| TOTAL LIABILITIES |1 763 411 | 1 342 092 | 1 290 888 |
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| | | | |
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| EQUITY CAPITAL | | | |
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| Share capital | 200 001 | 200 001 | 200 001 |
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| Share premium | 387 000 | 387 000 | 387 000 |
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| Statutory legal reserve | 20 000 | 20 000 | 20 000 |
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| Retained earnings | 324 179 | 556 048 | 784 201 |
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| TOTAL EQUITY CAPITAL | 931 180 | 1 163 049 | 1 391 202 |
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| TOTAL LIABILITIES AND EQUITY CAPITAL |2 694 591 | 2 505 141 | 2 682 090 |
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| CASH FLOW STATEMENT | 6 months | 6 months | 12 months |
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| (thousand EEK) | 2010 | 2009 | 2009 |
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| | | | |
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| CASH FLOWS FROM OPERATING ACTIVITIES | | | |
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| Operating profit | 217 505 | 217 869 | 461 940 |
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| Adjustment for depreciation/amortisation | 44 072 | 44 833 | 89 153 |
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| Adjustment for profit from government | -20 883 | -8 680 | -47 512 |
| grants and connection fees | | | |
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| Other finance expenses | -35 737 | -33 616 | -29 203 |
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| Profit from sale of property, plant and | -7 | -132 | -150 |
| equipment, and intangible assets | | | |
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| Expensed property, plant and equipment | 79 | 0 | 0 |
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| Change in current assets involved in | -10 634 | -5 984 | -14 675 |
| operating activities | | | |
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| Change in liabilities involved in | 48 721 | 6 999 | 6 160 |
| operating activities | | | |
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| Interest paid | -17 053 | -26 698 | -38 793 |
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| Total cash flow from operating activities | 226 063 | 194 591 | 426 920 |
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| | | | |
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| CASH FLOWS FROM INVESTING ACTIVITIES | | | |
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| Acquisition of property, plant and | -64 148 | -94 937 | -243 906 |
| equipment, and intangible assets | | | |
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| Compensations received for construction | 52 050 | 98 426 | 155 772 |
| of pipelines | | | |
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| Proceeds from sale of property, plant and | 18 | 121 | 238 |
| equipment, and intangible assets | | | |
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| Interest received | 4 310 | 9 648 | 15 077 |
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| Total cash flow from investing activities | -7 770 | 13 258 | -72 819 |
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| | | | |
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| CASH FLOWS FROM FINANCING ACTIVITIES | | | |
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| Received loans | 312 932 | 700 968 | 700 968 |
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| Repayment of loans | 0 | -701 303 | -701 303 |
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| Dividends paid | -500 010 | -230 010 | -230 010 |
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| Income tax on dividends | 0 | 0 | -61 142 |
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| Total cash flow from financing activities | -187 078 | -230 345 | -291 487 |
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| | | | |
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| Change in cash and bank accounts | 31 215 | -22 496 | 62 614 |
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| | | | |
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| CASH AND EQUIVALENTS AT THE BEGINNING OF | 292 474 | 229 860 | 229 860 |
| THE PERIOD | | | |
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| | | | |
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| CASH AND EQUIVALENTS AT THE END OF THE | 323 689 | 207 364 | 292 474 |
| PERIOD | | | |
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