Tallinna Vesi AS Class A · OMXTSE:TVE1T
Tallinna Vesi AS Class A — AS Tallinna Vesi — Investor Presentation (September 2006)
23 slides from Tallinna Vesi AS Class A's investor presentation, September 2006
Slide 1: AS Tallinna Vesi
) | >) AS Tallinna Vesi September 2006 Tallinna Vesi —
Slide 2: Speakers
Speakers Roch Cheroux, CEO, Chairman of the Management Board g 4 Ian Plenderleith, CFO, Member of the Management Board Tallinna Vesi —
Slide 3: Tallinna Vesi — Company's strengths
Ta linna Vesi — Company’s strengths
Slide 4: Shareholders and investor base
United Utilities Tallinn B.V. "" Shareholders 75% United Utilities 25% EBRD Active interest from major international investors Investor base International ~ 15% ! Baltic & Scandinavian ~ 9% # # $% & Retail ~ 6% ' %
Slide 5: Water & wastewater services to over 400 000 people
! " " " Water & Wastewater services to over 400 000 people and 98% of City of Tallinn Over 3 million tourists per annum and growing Focal point for population and commercial growth Expanding market – 14 contracts with surrounding municipalities WTP and WWTP with capacity to treat growth
Slide 6: Relationship with the City of Tallinn
( ' Regular and positive meetings held with mayor and other senior city officials Professional and successful long-term co-operation with the City of Tallinn since privatization Maintained good relations with all city governments and political parties Good working relationship with the Supervisory F
Slide 7: " ) * + , - " # ! " # %. ) %.,
" ) * + , - " # ! " # %. ) %., /01" # " 2 32 " " 3 # # # 4 ## # 5 " 6 7 # 8 - # " # &" # # %. # # % 5 # # # ' ! 4 # # ' # " # ## ' ' ' " ' #
Slide 8: Full compliance with Levels of Service
# Services Contract - Full compliance with 97 Levels of Service 2001 – 2004 Product - Water and wastewater quality fully compliant with Estonian & EU regulations Environment - ISO 9001, ISO 14001 and ISO 17025 accreditation EU EMAS (eco-management & audit scheme) certification Risk management - Prov
Slide 9: Captive and balanced customer base
– " No single customer represents more than 2% of sales Captive and balanced customer base Growth in customer connections Proactive revenue protection policies Excellent collection rate at over 98% of all debt raised
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9 ' :! " ($$ ))% )% + ',- ./ ' + 0- ./ ' ))% + ' " ./ ' * $ )% , " ./ '
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Slide 12: Potential customers for water and wastewater services
9 ' : 2 34 5 .:/= @A3 4% :B0A Today Number of potential customers - 50 000 Using our water services – 8.7% (4350 people) Using our wastewater services – 19.5% (9750 people) By 2010 Number of potential customers – 77 000 Using our water services – 9.5% (7315 people) Using our wastewater services – 43
Slide 13: Tallinn: dynamic tourism sector and developing real estate market
9 ' : $ 2 34 5 .:/= @A3 4% :B0A Tallinn A dynamic tourism sector: 400 000 inhabitants - 3 000 000+ tourists / year A developing real estate market ~ 1 000 new domestic dwellings in 2005 ~ 150 new commercial premises in 2005 A network still expanding over 3 700 new sewer customers by 2010 Consumption
Slide 14: $ # # " # # " #" # # "' # # %
$ # # " # # 8 " #" # # "' # # % (# ! " -# 8 # # ;7 7 # " #' #1' # #
Slide 15: $ # # " # # # # % ($ : : # ##
$ # # " # # 8 # # % ($ 89 : : 5 # ## 0:,"; 1 " # # %. -# % -""1 0; : -""< - : -"," - : 6 + 7 ($ $ 5 $+
Slide 16: Tallinna Vesi - Financial strengths
Tallinna Vesi - Financial strengths Visibility of revenue Profits convert Sustainable grow Tallinna Vesi ——
Slide 17: Largely fixed cost structure – profit leveraged on incremental revenue growth
( " $ (million EEK) 2003 2004 2005 2006 6 M Revenues 504,0 548,5 592,0 336,5 Operating Costs 334,2 293,6 309,5 151,4 Variable costs 55,0 54,0 55,0 33,8 Fixed costs 279,2 239,6 254,5 117,6 EBITDA 243,3 334,4 361,3 224,9 Operating Profit 169,8 254,9 282,6 185,1 Interest Charges 50,0 55,7 72,8 20,7 PBT
Slide 18: Efficient capital structure: EBRD and Nordea loans
? EBRD Loan Efficient 37.5 mln Capital EUR structure Fixed base rate 4.19% + risk margin 48 bps Grace period 3 years, maturity date 2015 Nordea Loan Efficient 37.5 structure Capital mln EUR Base rate EURIBOR + risk margin 24 bps Grace period 5 years, maturity date 2015 Rationale Efficient for restru
Slide 19: Efficient Capital structure
Efficient Efficient Capital capital structure structure mln EEK 2500 mln EEK 64% Debt to assets 57% 2500 64% 2000 Refinancing 200058% 58% completed 1500 1500 55% 57% 57% 55% 55% 55% November 2005 1000 1000 56% 56% Capital structure in 500 place for next 3 500 years 48% 48% 2003 2004 2005 2006 6M 200
Slide 20: Quality of earnings, increasing revenues, increasing operating cash flows
; # " #' Quality of earnings, increasing revenues, increasing operating cash flows… Cash flow from operating activities Operating profit 6M EEK'000 2006 – 185 mln EEK 350 000 307 074 300 000 Quality of revenue 250 000 stream – over 98% of 200 000 all billings collected 167 829 163 052 150 000 105 63
Slide 21: Main Investments are delivered by 2006
C 2 Main Investments are delivered by 2006 CAPEX* mln EEK 160 149 2001 - 2006 754 mln EEK 140 114 2007 - 2015 900 mln EEK 120 104 100 80 79 82% of water network 80 73 < 60 years 60 49 40 40 74 84% of sewerage network 20 60 54 18 < 40 years 2003 2004 2005 2006 6M * CAPEX does not include network Inve
Slide 22: Unique combination of stability and growth
D " E Unique combination of stability and growth... ! " " " ! # $ " & ' # # % # "
Slide 23: Thank You!
Thank You! Sooner or later every investor reaches for our product. a= ce el Interested in a refreshing investment? Visit us at www.tallinnavesi.ee Tallinna Vesi Tallinna Vesi —
AS Tallinna Vesi — Investor Presentation (September 2006) on 6ix