Tallinna Vesi (TVE1T) investor relations material

Executive summary

• Sales revenue for Q1 2026 rose 12.4% year-over-year to €18.0 million, with net profit reaching €4.3 million, supported by operational efficiency and investment returns.

• Investments totaled €7.86 million in Q1, focusing on infrastructure, water quality, and service continuity, with a full-year plan of €60 million.

• Customer service enhancements included a new CRM system, updated website, and expanded self-service options; customer satisfaction scored 4.1 out of 5.

• Over 85% of customers now use smart meters, with full rollout expected by year-end 2026.

• Tap water and wastewater effluent quality remained at 100% compliance.

Financial highlights

• Net profit for Q1 2026 was €4.3 million, up €0.8 million year-over-year; sales revenue increased 12.4% to €18.0 million.

• Revenue from water services increased 8.7% to €16.14 million; construction services revenue surged 75.9%.

• Gross profit rose 15.4% to €7.63 million; gross margin improved to 42.38%.

• Cash and cash equivalents at quarter-end were approximately €15 million.

• Cost of goods and services sold rose 10.3% to €10.4 million, mainly due to higher construction service costs.

Outlook and guidance

• Full-year investment target is €60 million, with main activities in Q2–Q4 and 86% expected to impact the Regulated Asset Base.

• Price harmonization between private and business customers to be completed in 2026, with future pricing based on pollution loads.

• Dividend of €0.57 per share (80% payout ratio) approved for payment in May 2026, in line with policy.