AS Tallinna Vesi Interim results 12 months ended 31. December 2016 - PowerPoint PPT Presentation

AS Tallinna Vesi Interim results 12 months ended 31. December 2016

Hosted by Karl Brookes CEO, Member of the Management Board Riina Käi CFO, Member of the Management Board

Operations Update Water quality 99.93% compliant, according 24,140 analyses of the 2,948 samples taken. Final effluent leaving the Paljassaare wastewater treatment plant is fully compliant, with no pollution incidents. Cumulative w ater network leakage rate for 2016 is 15.07%. Repair of the collector at Stroomi beach and Tondi water pipe was finished.

Tariff Dispute Local Court Case • Dispute ongoing in the Estonian Courts since 2011 On 5 th June 2015, Tallinn Administrative Court dismissed AS Tallinna • Vesi’s claim On the 11 th of November 2015, the company filed it’s appeal to the • District Court District Court hearing took place on 23 rd of November 2016 • The negative opinion was received on 26 th January 2017 • International Arbitration • International arbitration proceedings (ICSID) commenced in October 2014 Hearings were held in Paris in 7 th - 11 th and 14 th - 15 th of • November 2016 • The decision expected from the Arbitration Panel in the first half of 2017.

Financial Highlights Q4 Q4 12 months 12 months Change € Change EUR million Change % 2016 2015 2016 2015 % Sales 14,5 14,5 -0,1% 59,0 55,9 3,1 5,5% Gross profit 8,2 8,2 0,8% 33,3 32,2 1,0 3,1% Operating profit 5,4 6,7 -20,5% 24,6 25,6 -0,9 -3,7% Operating profit - main Business 5,5 6,7 -17,3% 24,4 25,3 -0,8 -3,3% Net profit 5,5 6,2 -12,6% 18,4 19,9 -1,5 -7,4% 40 30 20 EUR million 33,3 32,2 19,9 18,4 24,6 10 25,6 0 Gross profit Operating profit Net profit 12 months 2016 12 months 2015

Water & Wastewater revenues in 4 th quarter Revenues Volumes EUR million million m 3 7 8 2015;6,2 7 6 2015;7,2 6 5 5 2015; 4,9 4 6,4 2015; 2,5 5,1 4 3 3 2015; 1,6 2015; 1,1 2 2 7,3 2015; 0,1 2,6 1 1 2015; 0,2 1,0 1,4 0,2 0,1 0 0 Domestic Commercial Outside area Outside area Overpollution Domestic W&S Commercial Outside area W&S W&S W&S stormwater W&S W&S 2015 2016 2015 2016

Total costs in 4 th quarter Total cost variances Q4 2016 Q4 2015Change % 12 months 12 months Change € Change % EUR million 2016 2015 Total Cost of Goods Sold (incl.) 6,3 6,4 -1,2% 25,7 23,7 2,0 8,6% Chemicals 0,3 0,4 -16,0% 1,3 1,5 -0,2 -14,6% Electricity 0,8 0,7 8,3% 3,1 3,0 0,1 2,4% Pollution tax 0,2 0,2 2,1% 1,1 1,0 0,1 8,9% Staff costs 1,6 1,5 5,9% 5,7 5,6 0,1 2,2% Depreciation 1,4 1,4 -1,7% 5,9 5,7 0,2 3,0% Construction service, design and asphalting 0,6 1,0 -35,1% 4,0 2,4 1,6 67,1% Other cost of goods sold 1,3 1,1 17,2% 4,6 4,4 0,2 4,5% Marketing, General admin costs 2,5 1,4 86,6% 8,2 6,5 1,6 25,2% TOTAL cost of goods sold, Marketing, Overhead 8,8 7,7 14,3% 33,9 30,2 3,7 12,2% Net other expenses -0,3 -0,1 370,8% -0,5 -0,2 -0,3 213,3% Net financial expenses 0,1 -0,5 -117,7% -1,7 -1,2 -0,5 42,4%

Thousands 10,0 20,0 30,0 40,0 50,0 60,0 Cash position 0,0 Cash balance EUR 3.83 million euros lower y-o-y 35,3 CF open Q4'15 7,9 Operating 4,9 Investing 0,5 Financing CF end Q4'15 / 37,8 open Q1'16 8,8 Operating 2,1 Investing 0,4 Financing CF end Q1'16 / 44,2 open Q2'16 7,6 Operating Investing 2,3 18,6 Financing CF end Q2'16 / 30,8 open Q3'16 7,3 Operating 2,9 Investing 4,8 Financing CF end Q3'16 / 30,4 open Q4'16 8,2 Operating 4,2 Investing 0,5 Financing 34,0 CF end Q4'16

Thank You! Regulatory & political questions Karl Brookes Karl.Brookes@tvesi.ee IR & financial questions Riina Käi riina.kai@tvesi.ee Operational questions Aleksandr Timofejev aleksandr.timofejev@tvesi.ee Company ph., +372 62 62 200, E-mail tvesi@tvesi.ee