Post on 11-Feb-2017
January-June 2016ResultsAugust 26, 2016
26.8.2016 2
First Half 2016 Performance
Q2 occupancy up to 93.4% from 92.5% in Q1
Year-on-year net sales were up 1.2% & EBITDA was down0.9% excluding FX & non-recurring items
Service income grew by 10.0%, penetration now at 13.0%
Cash flow from operations/ share EUR 0.33 (0.28)
Organic growth boosting NAV / share (EPRA) 4.81 (4.59)
Equity ratio 36.5% (37.9%), LTV 59.4% (63.1%)
Guidance for 2016 unchanged
26.8.2016 3
Unit Occupancy
91,4% 90,4%
97,2% 97,1%92,5%
96,0%99,8% 100,0% 99,1%
81,3%
93,5%
85,4%
95,6% 96,6%
93,5%95,5%
98,5% 100,0% 99,9%
84,5%
70%
75%
80%
85%
90%
95%
100%
Q2-2015 Q2-2016
GroupQ2/1693.4%
26.8.2016 4
Service Business Growing
70,3 80,7 93,0 111,1 144,8 150,3 73,3
11,2 12,114,2
15,2
16,9 20,3
11,0
13,7%
13,0%
13,2%12,0%
10,4%
11,9%
13,0%
0%
2%
4%
6%
8%
10%
12%
14%
16%
0
50
100
150
200
2010 2011 2012 2013 2014 2015 H1/2016
Rental income Service income Services of net sales
EUR million
26.8.2016 5
Technopolis Gårda CampusIn the inner city of Gothenburg,Sweden
A growing market with strongeconomic indicators
Built 1999 (A-C) and 2004 (D)
Flexible, relatively modern andgood quality property
Occupancy rate 94%
Customers: Telia, Fujitsu,GoExcellent
Execution of strategy with entry tothe prioritized and publiclycommunicated next target market
26.8.2016 6
Gårda - Key Transaction Figures
Guaranteed NOI until 31.12.2017
Max MEUR 2.1 additional purchase price for new building rights
Seller to cooperate and assist in zoning process
Closing in July 2016
Significant upside potential through rent hikes, conversion and organicexpansion
KPI Key Figure
Price MEUR 126.6
Market yield requirement 4.75% (Gårda)
Cash-flow yield, initial 5.0%
Cash-flow yield, stabilized 6.0%
GLA (m2) 34,300
Office GLA (m2) 27,900
26.8.2016 7
Area Name m² EURmillion
Stabilizedyield, % *
Financial OCR/Pre -OCR, %
Completion
Tallinn Löötsa 5 9,200 17.0 8.8 100 1/2016
Tampere Yliopist. 3&4 11,900 40.5 7.2 80.5 7/2016
Vilnius Delta 21,600 35.4 9.8 57.9 12/2016
Helsinki Ruoholahti 3 10,300 33.2 7.0 35.7 07/2018
Organic Growth Projects
On June 30, 2016, the projects in progress totaled EUR 109.1 million
Projects in grey are not completed as per June 30, 2016 i.e. financial occupancy is pre-let rate.
* Stabilized yield = estimated net operating income / cost** The rentable area of Ruoholahti 3 has been revised upwards after the announcement of the investment decision. A largerrentable area has lowered the pre-let rate.
826.8.2016
Ruoholahti 3
26.8.2016 9
Financing
H1/2016 2015 2014
Interest bearing debt, EUR million 905.0 864.8 841.9
Fixed rate, % 61.8 71.3 60.0
Average interest rate, % * 2.39 2.60 2.43
Capital weighted loan maturity,years
5.5 5.9 6.1
Interest cover ratio, % 4.8 4.3 4.8
Loan to value, % 59.4 58.8 59.7
Equity ratio, % 36.5 39.3 38.5
Cash and equivalents, EUR million 26.1 39.4 28.3* Excluding the hybrid loan
26.8.2016 10
2016 Review on Strategy to 2020
Business strategy & concept working well at home & abroad
Strategic territory still the Nordic-Baltic region
Focus on targets with optimal strategic fit
Campuses & locations where we can add maximum value
11
TECHNOPOLISCOMPETITIVEADVANTAGE
Value-Adding Servicesƒ Cut the square metersƒ Buy services on demandƒ From cradle to graveƒ 5-star service delivery
Direct Customer Managementƒ In sales and marketingƒ In service providingƒ In property maintenance &
management
International chain advantagesƒ Branding advantagesƒ Increasing scale-driven efficienciesƒ Rapid deployment of best practicesƒ Increasing Group-wide solution sales
Cool, Flexible Workplacesƒ Less m2/personƒ Shared Infra & Servicesƒ Flexible, scalable up & downƒ Cool, fun & tribalƒ Access to the whole network
The Technopolis ConceptThis is Our DNA
26.8.2016 12
Technopolis Campus Network 2016We Have Successfully Copy-Pasted our Concept
Oulu
Vantaa
Espoo
Tampere
Jyväskylä
Kuopio
Lappeenranta
St. Petersburg 2008
Helsinki
Tallinn 2010
Vilnius 2013
Oslo 2013
Gothenburg 2016
26.8.2016 13
Rights Issue
EGM on August 31
The Board proposes a ca. EUR 125 million rightsissue
Pursuant to the shareholders’ pre-emptivesubscription price
Varma and Ilmarinen have indicated that they willparticipate pro-rata
26.8.2016 14
How We Will Use Rights Issue Proceeds
Gårda acquisition
Oslo minority shareholding
Organic growth project pipeline
Future campus acquisitions
Strengthen the balance sheet
www.technopolis.fi Find us on: facebook.com/TechnopolisPlc
twitter.com/TechnopolisPlc
Thank you
Appendices: Additional Data
26.8.2016 17
Group1-6/2016 1-6/2015 2015
Rentable space, m² * 740,300** 738,100 740,400**
Rent, €/m²/mo. avg.* 16.73 16.87 16.99
Financial occupancy rate, %* 93.4** 94.1 94.6**
Net rental income, EUR million 73.3 79.1 150.3
Net sales, EUR million 84.3 89.1 170.6
EBITDA, EUR million 45.4 50.2 93.0
Market yield requirement, avg., % * 7.69 7.81 7.73
Fair value of investment properties,EUR million * 1,457.9 1,410.6 1,426.0
* At the end of the period.** Under renovation Q2/2016: 13,500 m², 12/2015: 16,700 m²
26.8.2016 18
Finland1-6/2016 1-6/2015 2015
Rentable space, m² * 527,140** 534,200 526,900**
Rent, €/m²/mo. avg.* 17.18 16.51 17.02
Financial occupancy rate, % * 91.7** 92.4 92.9**
Net rental income, EUR million 51.9 57.6 107.4
Net sales, EUR million 61.0 66.4 125.0
EBITDA, EUR million 33.5 38.1 69.0
Market yield requirement, avg., % * 7.8 7.9 7.8
Fair value of investment properties,EUR million * 998.2 958.8 984.8* At the end of the period.** 6/2016: 10,500 m² under renovation. 12/2015: 16,700 m² under renovation.
26.8.2016 19
Baltic Rim
1-6/2016 1-6/2015 2015
Rentable space, m² * 148,650 139,100 147,000
Rent, €/m²/mo. avg. * 14.16 14.42 15.15
Financial occupancy rate, % * 99.3 99.6 99.5
Net rental income, EUR million 13.0 12.5 25.1
Net sales, EUR million 14.4 13.2 26.8
EBITDA, EUR million 7.5 7.1 14.2
Market yield requirement, avg., % * 8.7 8.9 8.7
Fair value of investment properties,EUR million *
260.1 245.1 246.7
* At the end of the period.
26.8.2016 20
Scandinavia1-6/2016 1-6/2015 2015
Rentable space, m² * 64,500** 64,800 66,500**
Rent, €/m²/mo. avg. * 19.56 22.05 21.50
Financial occupancy rate, % * 95.6** 97.2 97.1**
Net rental income, EURmillion
8.3 9.1 17.8
Net sales, EUR million 8.9 9.5 18.8
EBITDA, EUR million 4.4 4.9 9.9
Market yield requirement,avg., % *
6.1 6.3 6.1
Fair value of investmentproperties, EUR million *
199.6 207.1 194.4
* At the end of the period.** 6/2016: 3,000 m2 under renovation, 12/2015: None.
26.8.2016 21
LeasesLease stock, % of spaceMaturity in years
June 30,2016
2015 2014
<1 17 22 17
1-3 22 20 23
3-5 15 15 12
>5 18 19 22
Open-end leases 28 24 26
Av. lease term in months 36 36 39
Lease stock, EUR million 437.4 429.7 455.9
The ten largest customers let approximately 18.0 % of rented space andaccounted for 16.4% of rental income.The single largest customer accounted for 4.0% of rented space and 2.2% ofrental income.
26.8.2016 22
2015-2020 Strategic Financial Targets
Average net sales and EBITDA growth 10% p.a.
Service penetration 15% by 2020 for like-for-like real estate
5.5% return on capital employed p.a.
Equity ratio above 35% over the cycle
2326.8.2016
Investment Criteria
Sufficient scale
Good quality assets
Flexibility & adaptability
Location & connections
Service infrastructurepotential
Customer mix potential
Competitive valuation withattractive risk-adjustedreturn
26.8.2016 24
Fair Value Changes 1-6/2016
EUR million MarketYield
Related
OccupancyAssumption Modernization
OtherChanges
Projectsin
Progress
Total
Finland 5.9 -1.1 -6.9 -0.9 0.7 -2.3
Baltic Rim 2.6 -1.1 1.3 -1.2 2.2 3.8
Scandinavia 1.5 0.0 -1.5 -3.0* 0.0 -3.0
Total 10.0 -2.2 -7.1 -5.1* 2.9 -1.5
* Mainly contract changes. In Norway, some revenues were allocated to services and were thus removed from fair value calculation.