Tallinna Vesi (TVE1T) investor relations material

Executive summary

• Q2 2026 sales revenue was €18.61 million, down 4.1% year-over-year, mainly due to lower construction services revenue, while water services revenue rose 2.7% from tariff increases and regulatory changes harmonizing prices for private and business customers.

• Net loss for Q2 2026 was €0.12 million, a decrease of €1.5 million from Q2 2025, impacted by higher income tax and interest expenses; year-to-date net profit was €4.2 million, in line with annual targets.

• Investments in Q2 totaled €16.56 million, up 4.3% year-over-year, with a full-year target of €60 million and a focus on infrastructure and environmental sustainability.

• Service quality remained high, with 100% compliance in water and effluent standards and improved response times for customer inquiries.

• Customer satisfaction dipped slightly due to IT system upgrades, but a new self-service platform was launched and improved.

Financial highlights

• Q2 2026 sales: €18.61 million (–4.1% YoY); H1 2026 sales: €36.60 million (+3.4% YoY).

• Net loss in Q2: €0.12 million (vs. €1.36 million profit in Q2 2025); H1 net profit: €4.16 million (–13.6% YoY).

• Operating profit in Q2: €4.20 million (–18.1% YoY); H1: €9.64 million (flat YoY).

• Dividend payout: €11.4 million (€0.57 per share) paid in Q2 2026.

• Staff costs increased by 6.1% year-over-year; administrative and marketing expenses up 20% due to IT and personnel.

Outlook and guidance

• Full-year investment expected to reach €60 million, with 81% included in the Regulated Asset Base, impacting future pricing.

• No significant increase in water service sales expected for 2026 due to stable consumption and macroeconomic conditions.

• Price equalization between private and business customers effective from July 2026.

• Ongoing focus on asset quality, risk minimization, and operational excellence.

• Eesti Pank forecasts 2.4% GDP growth for Estonia in 2026, with risks from rising public debt.