Tallinna Vesi — Earnings Release 2021

Oct 20, 2021

Company Type Category Disclosure time AS TALLINNA VESI Company Release Other corporate action 20 Oct 2021 09:00:00 +0300

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AS Tallinna Vesi's operational performance in the 3rd quarter and during the first 9 months of

AS Tallinna Vesi achieved good operational results again in the 3(rd) quarter and during the first nine months of 2021. The company reconstructed 6,600 m of water pipes and 5,800 m of sewers during the first nine months of 2021. The reconstruction of mechanical treatment stage at the wastewater treatment plant was completed. It was the largest investment that the Company has made in the wastewater treatment plant during the past decade, with a total cost of 7.8 million euros.

Increasing investments in the networks

The quality of tap water remained good in the third quarter and during the first nine months of 2021. A total of 2,243 water samples have been collected during this year, of which 99.6% met all quality requirements. In the third quarter of the year, the quality of tap water was somewhat lower (98.8%) due to microbiological water quality problems in the Lasnamäe region. In order to restore water quality in the area, we regularly carried out thorough flushing and further local water disinfection and cooperated with customers to ensure continuous flow in the property pipelines.

We want to minimise disruption to our customers and consumers, which is why we monitor the average duration of the water interruption. During the first nine months of 2021, the average water disruption lasted for 3 hours and 8 minutes. One of the objectives of the company is also to notify customers of interruptions to water supply as early as possible. During the first nine months of 2021, the customers received notices of unplanned interruptions at last 1 hour before in 98.6% of cases.

The leakage rate in the third quarter (14.1%) was higher than for the same period in 2020. Also, for the period of nine months the level of water losses has been higher (14.69%). This has been caused by major leakages in Mere pst and in Mustamäe tee where it took more time than usual to detect the leakage.

The volume of investments to renovating the pipes in 2021 is 5.15 million euros,

which is the largest investment made during the last decade. In the first nine months of 2021 the company had reconstructed 6,600 m of water pipes and 5,800 m of sewers. Reconstruction works were done in cooperation with the City of Tallinn e.g., on Poska, Sirbi, Võidujooksu and Madala streets and on Kadaka and Kõivu road and elsewhere. Together with the energy group Utilitas, renovation works are currently underway on Kohila, Leevikese and Mustjõe streets. Works on Kadaka road and Kohila street include renovating large-diameter and strategically important pipelines that will positively impact a significant number of consumers.

Reduced number of sewer collapses

During the third quarter of 2021, 7% less blockages occurred on sewers than at the same time last year. Also, the number of sewer collapses has been good during the nine months and in the third quarter - last quarter, we had 26% less sewer collapses than in the same period last year. Decrease in the number of sewer collapses was related to the continuous reconstruction program and to milder weather conditions. The reconstruction works on sewer pipes have mainly been carried out by using environment-friendly no-dig methods, which allow to avoid excavating the roads.

In the third quarter and during the first nine months of 2021, the final effluent treated at the Paljassaare Wastewater Treatment Plant was fully compliant with all quality requirements. With the purpose of assessing the treatment efficiency and the quality of wastewater, we continuously monitor for pollutants, in both the incoming wastewater and final treated effluent leaving the plant. In the third quarter of 2021, the effluent parameters were at excellent level, as indicated by extremely low levels of nitrogen and phosphorus discharged to the sea.

The major project of reconstructing the mechanical treatment stage at Paljassaare Wastewater Treatment Plant was completed in September. With these large-scale construction works the facilities and equipment of the first and most important stage of the wastewater treatment plant were renovated. It was the largest investment that the Company has made in the wastewater treatment plant during the past decade, with a total cost of 7.8 million euros. The investments made allow to maintain the excellent quality of effluent discharged to the sea, to keep the Baltic Sea clean, and to ensure resilient and efficient wastewater treatment for Tallinners.

Decreasing number of customer complaints

Providing customers and consumers with high-quality and reliable water and wastewater services at all times is crucial for Tallinna Vesi. We also consider it important to maintain a high level of customer service and regularly measure the satisfaction of our customers and keep track of the promises made to them. In the third quarter of 2021, we failed to keep two of the promises made to customers, related to informing customers. However, the number of customer complaints has decreased significantly both in the third quarter and during the

first nine months of 2021. In nine months, the number of customer complaints has decreased 33% compared to the same period last year.

We are also constantly monitoring the speed at which the customers receive answers to their questions. In the first nine months of 2021, we responded to written requests within at least 2 working days in 98.9% of cases, which is a somewhat lower result than a year ago. Replies to written contacts have been delayed due to the construction activity that started to increase with the summer season. This increased the number of applications for technical specifications and project approvals and slowed down the speed of response to these applications.

In the third quarter, we supported various events with our water tanks, helping to prevent unnecessary waste and improve environmental awareness among the community. In the 2021 summer season, the water tanks of Tallinna Vesi were present at about 40 events, including various sports and youth festivals and other public and community events, such as for example, Ironman Tallinn, weekly Stamina health run and lake runs, Investment festival, Gymnastics festival, musical production "Ocean", Tallinn Old Town Days, Sail Tallinn, etc. We will continue providing water tanks also next year.

+----------------------------------------------+----+------+--------+----+-----+ Indicator		2021 9 Unit months	2020 9 months Q3	2021 2020	Q3
+----------------------------------------------+----+----+-+--------+----++----+ Drinking water
+----------------------------------------------+----+----+----------+-----+----+ Compliance of water quality at the customers' tap	%		99.6 99.8	98.8 99.3
+----------------------------------------------+----+----+----------+-----+----+ Water loss in the water distribution network	%		14.7 12.5	14.1 9.6
+----------------------------------------------+----+----+----------+-----+----+ Average duration of water interruptions per property in hours	h		3.13 2.99	3.18 2.83
+----------------------------------------------+----+----+----------+-----+----+ Wastewater
+----------------------------------------------+----+----+----------+-----+----+ Number of sewer blockages	No	397 338		103	111
+----------------------------------------------+----+----+----------+-----+----+ Number of sewer collapses	No	50	61	14	19
+----------------------------------------------+----+----+----------+-----+----+ Wastewater treatment compliance with environmental standards	%	100 100		100	100

OPERATIONAL INDICATORS FOR THE 3(RD) QUARTER AND FIRST NINE MONTHS OF 2021

+----------------------------------------------+----+----+----------+-----+----+ Customer Service
+----------------------------------------------+----+----+----------+-----+----+ Number of complaints	No	24	36	7	8
+----------------------------------------------+----+----+----------+-----+----+ Number of customer contacts regarding water quality +----------------------------------------------+----+----+----------+-----+----+	No	238 270		166	106
Number of customer contacts regarding water pressure +----------------------------------------------+----+----+----------+-----+----+	No	262 245		125	96
Number of customer contacts regarding blockages and leading off stormwater +----------------------------------------------+----+----+----------+-----+----+	No	733 687		238	214
Responding to written customer contacts within at least 2 working days	%	98.9 100		98.5 100
+----------------------------------------------+----+----+----------+-----+----+ Number of cases of failed promises	No	3	0	2	0
+----------------------------------------------+----+----+----------+-----+----+ Notification of unplanned water interruptions at least 1h before the interruption +----------------------------------------------+----+----+----------+-----+----+	%		98.6 99.2	98.2 99.3

Laura Korjus

laura.korjus@tvesi.ee Head of Communication AS Tallinna Vesi (+372) 626 2271