Results of operations - for the year 2014

For a second year in a row, Nasdaq Baltic stock exchange awarded us for “The Best Investor Relations in the Baltic Market.” In addition, we got the title of “The Most Attractive Company for Retail Investors on the Nasdaq Baltic Market.”

Responsible Business Forum in Estonia recognized us with a Silver Marking for the responsible and socially and environmentally sustainable activity in 2014.

In 2014, we had the best drinking water quality of all time. A record-shattering 99.80% of all the water samples taken from customers’ tap were fully compliant. The quality of tap water continues to be on the same level as drinking water in Western Europe, and it is safe to drink the tap water.

In 2014, we diligently also continued working towards raising the public awareness of the tap water quality, by using a slogan „Tap Water IS Drinking Water.“ Nearly 85% of people drank tap water in 2014, while just few years ago, in 2011 only 48% of people trusted tap for drinking.

Within the framework of Gulf of Finland Year 2014, once again, we draw the public attention on the topic „Don’t Clog the Toilet.” The figure of SAPO or Sanitary Police explained people what can be thrown into the toilet and what may cause blockages in the pipelines. SAPO also got a silver prize on the Estonian National Advertising festival Golden Egg.

In February, the Minister of Culture Ms Urve Tiidus recognized the companies who have long supported the Estonian culture. We received a valuable title “Friend of the Culture 2014.”

Good results get started from people. Therefore, we deem it important to be a good employer to our staff. In 2014, the TRI*M index measuring our employees’ commitment and satisfaction was 71 points. This is an excellent feedback from our team, as the index is higher than the Estonian average result of 66 points and the average 58 points of the European manufacturing and service companies. Also the customer satisfaction TRI*M index was high in 2014, reaching 85 points, which is the highest of all times and indicates very strong customer relations. For years now, our customer relations are among the top 10% of the European manufacturing industry.

The level of leakages has been dropping from year to year. Compared to 2013, the amount of water saved in 2014 was 200,000 m3. This is the average amount of water that Tallinners drink in three days. In 2014, the level of leakages in the distribution network was 16.14%, while year ago, in 2013, this number was 16.98%.

This has been achieved mainly through preventive activities that improve the reliability of the service provided.

It is essential to ensure the availability of services to the population for 24/7. Therefore, we focus on increasing the security of supply. The numbers of customer inquiries and complaints have reduced remarkably in 2014, compared to the previous year. The number of customer inquiries related to the issues of water quality, water interruptions and water pressure have reduced by 30%. This shows that our customers can rely on us.

We continued cooperation with the educational institutions in order to explain children how the cycle of water works and why it is important to protect the environment.

In 2014, nearly 1,500 visitors came to see the operating of the water treatment plant and the wastewater treatment plant.

In August 2014, the doors open day at Ülemiste Water Treatment Plant attracted the record-shattering 800 people who also participated in the concurrent sport event.

Det Norske Veritas confirmed the compliance of the management systems of AS Tallinna Vesi and our subsidiary OÜ Watercom with ISO 9001, ISO 1400 and OHSAS 18001 standards. Compliance with the EMAS (Eco-Management Audit Scheme) requirements was confirmed as well.