Tallinna Vesi's first-quarter sales were €16 million

AS Tallinna Vesi's sales amounted to €16 million in the first quarter of 2025, growing due to an increase in consumption volumes and the impact of a price change in the second half of the year.

Sales increased by 5.9% compared to the first quarter of 2024. Sales from water services provided to business customers in the first quarter of 2025 in the main service area of Tallinna Vesi were €4.16 million, which is 2.8% less than the year before. Sales from water services provided to private customers increased by 17.6% in the first quarter compared to the same period of the previous year and totalled €7.3 million. These trends in sales are linked to the obligation imposed by law to harmonize the price of the service for private and business customers.

The company's net profit in the first quarter of 2025 was €3.44 million, which is €0.43 million more than in the same period of the previous year. Net profit was impacted by the change in the price for water services and lower interest costs due to the lower Euribor.

Tallinna Vesi is moving towards a more sustainable operating model and a reduction of its environmental footprint, supported by new investments such as the launch of a combined heat and power (CHP) plant. "In the first quarter, we produced 2.2 GWh of energy at the CHP plant from biogas generated during wastewater treatment, which will help reduce costs by by €250,000 and provide water services at prices consumers can afford," said Aleksandr Timofejev, CEO of Tallinna Vesi.

In the first quarter, the company continued to invest as planned to future-proof its infrastructure and ensure the continuity of the vital service it provides. The total investment planned for this year amounts to €61 million. "Investment is essential to ensure the sustainability of water infrastructure and to cope with changing climatic conditions – for example, exceptionally heavy rains in January brought one and a half times the usual amount of water to the wastewater treatment plant. To ensure the smooth functioning of life in the city, it is necessary to continue investing in the development of separate stormwater systems," explained Aleksander Timofejev. He says the construction and rehabilitation of water, sewer and stormwater systems will peak during the summer months, and the company aims to carry out all the work with as little disruption to traffic and people's lives as possible.

In 2025, investment projects will continue in the treatment plants, for example, emergency generators were installed in the pumping stations in the first quarter to ensure continuity of service in the event of a major power cut.

At the wastewater treatment plant, the treatment process will be upgraded by reconstructing the existing screens at the plant and installing new screens at the main pumping station. This will improve the capability to remove debris in the first treatment stage, making the whole treatment process more efficient.

In the first quarter of 2025, tap water quality was excellent, similar to the previous year, meeting 100% of all quality requirements. "We work hard every day to provide our customers and consumers with the highest quality tap water. Throughout the year, we have continued to make significant investments in the water network and have cleaned more than 140 kilometres of water pipes using ice-pigging technology," said Timofejev. In the first quarter, an outage map was made available on Tallinna Vesi's website, giving consumers an overview of planned and emergency water interruptions, ice-pigging areas and the location of temporary water tanks.

In the first quarter of 2025, Tallinna Vesi continued to explain the principles of water service as a vital service and to promote the benefits of drinking tap water to the public. The company also participated in career fairs organized at universities to present the job and internship opportunities available at the company.

Tallinna Vesi's long-standing commitment to environmental sustainability was recognized in a Kantar Emor survey published in March, which ranked the company among the top five green infrastructure companies.

During the quarter, preparations began for the opening of more than fifty public drinking water taps, which will be available to citizens from May to October.

In the first quarter of 2025, the quality of the treated effluent from the Paljassaare Wastewater Treatment Plant exceeded the effluent standards. To maintain a clean Baltic Sea, the company uses efficient treatment processes that removed more than 240 tonnes of debris, 40 tonnes of sand, 479 tonnes of nitrogen and 59 tonnes of phosphorus from wastewater during the first quarter of 2025.

The water loss rate in the water distribution network fell to 15.88% in the first quarter of the year, compared with 16.55% a year earlier. In order to keep water loss rates low, the company carries out continuous online monitoring of the water network and continues with its planned water network rehabilitation programme.

By the end of the first quarter of 2025, Tallinna Vesi had rehabilitated and constructed ca 7 kilometres of pipelines, more than half of which (4 km) using no-dig methods.

In the first quarter, the work that started last year continued on Lastekodu Street and on Paljassaare and Kopli streets. In co-operation with the City of Tallinn, work has started on Värvi, Mustjõe and Vesivärava streets, where the stormwater pipeline is crucial both for draining stormwater from the Rail Baltic terminal and the Peterburi Road, and for mitigating stormwater floodings during heavy rainfall in the car tunnel on Järvevana Road. On Sõle Street, a critical water main supplying the North Tallinn area was rehabilitated.

Particular attention was paid to the construction of separate stormwater systems to separate stormwater from wastewater so that it does not need to be discharged to a wastewater treatment plant.

At the beginning of the year, the subsidiary company Watercom started to rehabilitate pipelines with new equipment that allows the rehabilitation to be carried out using a no-dig method, i.e. without excavating trenches. Most of the work using this new method will be carried out in the spring and summer.

By the end of the first quarter of 2025, Tallinna Vesi had installed smart meters for 67% of its customers. The company plans to replace the water meters of all customers in its service area with smart meters by the end of 2026 at the latest. The new meters provide information on water consumption, enabling the detection of leaks in the customer's pipes as early as possible. This saves the environment and minimizes potential damage to property due to water emergencies.

AS Tallinna Vesi is the largest water utility in Estonia, providing services to approximately 25,000 private and business customers and approximately 500,000 end consumers in Tallinn and its surrounding municipalities. Tallinna Vesi is listed on the main list of the Nasdaq Tallinn Stock Exchange. The largest shareholdings in the company are held by the City of Tallinn (55.06%) and the energy group Utilitas (20.36%). 24.58% of the company's shares are freely floating on the Nasdaq Tallinn Stock Exchange.

MAIN FINANCIAL INDICATORS

€ million except key ratios	1st quarter			Variance 2025/2024
	2025	2024	2023
Sales	16.00	15.11	14.74	5.9%
Gross profit	6.59	6.07	5.72	8.6%
Gross profit margin %	41.18	40.19	38.81	2.5%
Operating profit before depreciation and amortisation	6.95	6.23	6.02	11.6%
Operating profit before depreciation and amortisation margin %	43.41	41.21	40.82	5.3%
Operating profit	4.49	4.13	4.07	8.7%
Operating profit - main business	4.31	4.17	3.91	3.5%
Operating profit margin %	28.04	27.32	27.62	2.6%
Profit before taxes	3.49	3.03	3.53	15.2%
Profit before taxes margin %	21.80	20.05	23.92	8.8%
Net profit	3.44	3.01	3.50	14.1%
Net profit margin %	21.47	19.93	23.73	7.7%
ROA %	1.08	1.06	1.38	2.3%
Debt to total capital employed %	61.43	58.11	55.19	5.7%
ROE %	2.82	2.54	3.11	11.0%
Current ratio	1.08	1.44	1.46	-25.0%
Quick ratio	1.01	1.37	1.38	-26.3%
Investments into fixed assets	6.76	6.65	4.67	1.7%
Payout ratio %	na	na	na

Gross profit margin – Gross profit / Net sales
Operating profit margin – Operating profit / Net sales
Operating profit before depreciation and amortisation – Operating profit + depreciation and amortisation
Operating profit before depreciation and amortisation margin – Operating profit before depreciation and amortisation / Net sales
Net profit margin – Net profit / Net sales
ROA – Net profit / Average Total assets for the period
Debt to Total capital employed – Total liabilities / Total capital employed
ROE – Net profit / Average Total equity for the period
Current ratio – Current assets / Current liabilities
Quick ratio – (Current assets – Stocks) / Current liabilities
Payout ratio – Total Dividends per annum/ Total Net Income per annum
Main business – Water services related activities, excl. connections profit and government grants, construction services, doubtful receivables

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

€ thousand
ASSETS						Note	as of 31 March 2025	as of 31 December 2024
CURRENT ASSETS
	Cash and cash equivalents					3	8,922	3,589
	Trade receivables, accrued income and prepaid expenses						9,419	10,746
	Inventories						1,304	1,180
TOTAL CURRENT ASSETS							19,645	15,515
NON-CURRENT ASSETS
	Property, plant, and equipment					4	298,798	296,264
	Intangible assets					5	1,962	2,062
TOTAL NON-CURRENT ASSETS							300,760	298,326
TOTAL ASSETS							320,405	313,841
LIABILITIES AND EQUITY
CURRENT LIABILITIES
	Current portion of long-term lease liabilities						841	875
	Current portion of long-term loans						3,441	3,441
	Trade and other payables						11,841	13,581
	Prepayments						2,104	2,646
TOTAL CURRENT LIABILITIES							18,227	20,543
NON-CURRENT LIABILITIES
	Deferred income from connection fees						50,672	50,106
	Leases						1,986	2,178
	Loans						119,273	114,241
	Provision for possible third-party claims					6	6,018	6,018
	Deferred tax liability						547	494
	Other payables						91	108
TOTAL NON-CURRENT LIABILITIES							178,587	173,145
TOTAL LIABILITIES							196,814	193,688
EQUITY
	Share capital						12,000	12,000
	Share premium						24,734	24,734
	Statutory legal reserve						1,278	1,278
	Retained earnings						85,579	82,141
TOTAL EQUITY							123,591	120,153
TOTAL LIABILITIES AND EQUITY							320,405	313,841

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

€ thousand				for the 3 months ended 31 March
				Note	2025	2024
Revenue				1, 7	16,004	15,105
Cost of goods and services sold				1, 9	-9,413	-9,035
GROSS PROFIT				1	6,591	6,070
Marketing expenses				9	-255	-235
General administration expenses				9	-1,787	-1,494
Other income and expenses				1, 10	-61	-213
OPERATING PROFIT					4,488	4,128
Financial income				11	33	82
Financial expenses				11	-1,032	-1,182
PROFIT BEFORE TAXES					3,489	3,028
Income tax					-53	-18
NET PROFIT FOR THE PERIOD					3,436	3,010
COMPREHENSIVE INCOME FOR THE PERIOD					3,436	3,010
Attributable profit to:
Equity holders of A-shares					3,436	3,010
Earnings per A share (in euros)				12	0.17	0.15

CONSOLIDATED STATEMENT OF CASH FLOWS

€ thousand			for the 3 months ended 31 March
			Note			2025		2024
CASH FLOWS FROM OPERATING ACTIVITIES
	Operating profit					4,488		4,128
		Adjustment for depreciation/amortisation	9			2,281		2,097
		Adjustment for revenues from connection fees	7			-182		-168
		Other non-cash adjustments				0		22
		Profit (-)/loss (+) from sale of property, plant and equipment, and intangible assets				-46		-41
	Change in current assets involved in operating activities						1,204	-487
	Change in liabilities involved in operating activities					-343		105
TOTAL CASH FLOWS FROM OPERATING ACTIVITIES						7,402		5,656
CASH FLOWS USED IN INVESTING ACTIVITIES
	Acquisition of property, plant, and equipment, and intangible assets					-12,547		-6,176
	Proceeds from targeted funding of property, plant, and equipment.		4			5,454		0
	Compensations received for construction of pipelines, incl connection fees					207		377
	Proceeds from sale of property, plant and equipment, and intangible assets					46		66
	Interest received					33		82
TOTAL CASH FLOWS USED IN INVESTING ACTIVITIES						-6,807		-5,651
CASH FLOWS USED IN FINANCING ACTIVITIES
	Interest and loan financing costs paid					-32		-34
	Lease payments					-230		-213
	Loans received					5,000		0
TOTAL CASH FLOWS USED IN FINANCING ACTIVITIES						4,738		-247
CHANGE IN CASH AND CASH EQUIVALENTS						5,333		-242
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD			3			3,589		14,736
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD			3			8,922		14,494

Additional information:

Taavi Gröön
AS Tallinna Vesi
Chief Financial Officer
(+372) 62 62 200

Attachment

• Stock Exchange report Q1'25