Financial Statements Release 2019 13 February 2020 Jani Nieminen, - PowerPoint PPT Presentation

Financial Statements Release 2019 13 February 2020 Jani Nieminen, CEO Kojamo plc Erik Hjelt, CFO

Agenda • Summary of year 2019 • Financial development • Updated strategy • Outlook and dividend policy Kojamo plc's Financial Statements Release 2019 2

Summary of year 2019 Kojamo plc's Financial Statements Release 2019 3

Operating environment Business environment key figures 6.7 6.5 6.4 6.4 General operating environment 1.6 1.6 1.6 1.0 • The trend of urbanisation is continuing even stronger 1.3 1.2 than expected, and the significance of the largest urban 1.1 1.1 2019E 2020E 2021E 2022E areas will increase GDP growth, % Unemployment, % Inflation, % • The situation in the world economy remains uncertain in spite of some signs of stabilisation Population growth forecast 2019 – 2030 • The growth of private consumption will continue at a steady rate. The growth of disposable household Helsinki 11.7% Capital region* income will be supported by higher income levels and 13.0% Helsinki region** 10.5% continued high employment Jyväskylä 7.1% Kuopio 2.9% Lahti 0.3% Oulu 7.3% Tampere 11.7% Turku 8.5% Other areas -6.4% Kojamo plc's Financial Statements Release 2019 * Helsinki, Espoo, Kauniainen, Vantaa ** Capital region, Hyvinkää, Järvenpää, Kerava, Kirkkonummi, Mäntsälä, Nurmijärvi, Pornainen, Sipoo, Tuusula, Vihti 4 Sources: General operating environment, Business environment key figures: Ministry of Finance, Economic Survey 12/2019; Population growth forecast: Statistics Finland, Population forecast 2019

Operating environment Industry key figures 2020E 2019 Residential start-ups, units 32,000 38,000 Building permits granted, annual*, units n/a 37,013 Construction costs, % 1.0 1.2 Residential production and price development Prices of old dwellings in the whole country, change, % 1.0 1.2 • The number of residential start-ups is estimated to Prices of old dwellings in the capital decline from record-high levels towards more normal region, change, % 1.0 – 3.1 0.5 – 3.4 production volumes, the majority of the drop in the Rents of non-subsidised rental dwellings in volume of residential construction will take place in the the whole country, change, % 1.6 1.4 latter half of 2020 Rents of non-subsidised rental dwellings in • As the rate of economic growth declines, new the capital region, change, % 1.6 – 1.8 1.6 – 2.0 construction is estimated to focus increasingly on the largest urban areas Housing production need 2015 – 2040 • In spite of slower economic growth, the continued trend of urbanisation will maintain the need for new Helsinki 16% apartments. The level of residential production is Tampere 2% 3% Oulu estimated to be sufficient in Finland’s growth regions in 4% Turku 48% 2019 and 2020, but there are concerns regarding the Jyväskylä 7% adequacy of supply thereafter Kuopio 9% Lahti • The polarisation of trends in apartment prices is Muu Suomi 11% becoming even more pronounced than before Kojamo plc's Financial Statements Release 2019 * Rolling 12 months, November 2019 Sources: Residential production and price development: Pellervo Economic Research PTT, Housing market 2020 forecast and Confederation of 5 Finnish Construction Industries RT’s business survey, October 2019; Industry key figures: PTT, Statistics Finland: Building and dwelling production 2019, November, RT; Housing production need: VTT, Need for housing 2015-2040

Operating environment Development of household sizes (% of all households) 45% 40% The popularity of rental housing increases 35% • In spite of strong growth in supply, migration in 30% particular is maintaining high demand for rental 25% apartments 20% • The significance of location and services is becoming 1985 1996 2007 2018 increasingly highlighted in people’s housing needs 1 person 2 persons 3+ persons • People are increasingly attracted by the freedom Development of rental household-dwelling provided by rental housing units (% of all households) • Households living in rental homes outnumber those living in owner-occupied housing in Helsinki, in Tampere 49.3% 48.3% 48.2% 47.1% and Turku in the near future as well. This is a strong 43.8% 43.0% 42.2% sign of the acceleration of urbanisation on the one hand 40.6% 40.7% 40.4% 40.2% 39.6% 37.7% and the change in housing preferences on the other 37.3% 36.5% 36.7% hand Helsinki Helsinki Jyväskylä Kuopio Lahti Oulu Tampere Turku region* 2010 2018 * Helsinki, Espoo, Kauniainen, Vantaa, Hyvinkää, Järvenpää, Kerava, Kirkkonummi, Mäntsälä, Nurmijärvi, Pornainen, Sipoo, Tuusula, Vihti Kojamo plc's Financial Statements Release 2019 Sources: The popularity of rental housing increases: MDI’s population forecast 2040 and Pellervo Economic Research PTT, Housing markets 2020 forecast; 6 Development of household sizes and rental household-dwelling units: Statistics Finland, Dwellings and housing conditions 2018

Of the apartments ’ fair value 98.8 % in the seven largest Finnish growth centres Apartment distribution, % 4.1% 2.3% Helsinki 4.7% Number of region commercial 5.0% Number Fair Fair value Fair premises Financial Tampere of apart- value, (EUR value 6.3% Region and other occupancy region ments, (EUR thousand (EUR / leased rate, % 5.2% units million) / unit) sqm) premises, Turku region units 14.0% Helsinki region 20,565 311 4,284 205 3,635 98.0% 58.3% Oulu Tampere region 4,942 126 627 124 2,400 96.5% Turku region 1,848 17 213 114 1,977 97.7% Fair value distribution, % Jyväskylä Oulu 2,220 19 183 82 1,548 96.5% 2.5% 1.2% 2.8% Jyväskylä 1,771 2 186 105 1,995 93.6% 3.2% Kuopio region 3.1% Kuopio region 1,674 47 163 95 1,773 94.5% 3.6% Lahti region 1,436 4 149 103 1,843 95.1% Lahti region 10.7% Others 816 20 71 84 1,504 95.6% Total 35,272 546 5,875 1) 164 2,970 97.2% Others Others 386 2) 72.9% Total portfolio 35,272 546 6,261* 164 2,970 97.2% Kojamo plc's Financial Statements Release 2019 1) The figures reflect income-generating portfolio assets, which excludes ongoing projects, plots owned by the company and ownership of certain assets through shares. 7 2) Fair value of ongoing projects, plots owned by the company and ownership of certain assets through shares and IFRS 16 right-of-use assets.

Key figures 2019 net rental income funds from operations (FFO) total revenue 247.3 140.7 375.3 M€ M€ M€ (EUR 358.8 million, (EUR 234.0 million, (EUR 116.4 million, +5.7%) +20.9%) +4.6%) fair value of investment profit excluding properties changes in value 1) gross investments profit before taxes 6.3 158.8 M€ 1,031.3 M€ 259.9 M€ Bn € (EUR 5.1 billion, (EUR 365.2 million, (EUR 149.8 million, (EUR 277.3 million, +22.9%) +6.0%) +271.9%) -28.8%) Kojamo plc's Financial Statements Release 2019 1) Changes in value = Profit/loss on fair value of investment properties 8

The apartment portfolio is growing • During the financial year, 520 (1,908) apartments were sold, 260 (1,049) acquired and 816 (1,258) completed During the year, construction of 1,066 (797) apartments was started. • Additionally, agreements on the construction of over 900 apartments in the next years were signed Development of apartment portfolio, units Apartments under construction, units +1.6% +23.7% 1,536 1,525 41,153 1,316 35,272 34,974 34,713 34,383 1,189 12,437 1,229 3,866 3,365 1,064 33,484 31,108 31,018 28,716 1,189 1,536 1,525 1,064 1,316 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Lumo segment VVO segment Kojamo Kojamo plc's Financial Statements Release 2019 9

Estimated completions of Kojamo’s 1,316 apartments under construction as at 31 December 2019 2021 → Q1/2020 Q3/2020 Q4/2020 119 units 290 units 123 units 784 units As Oy Vantaan Lauri As Oy Espoon As Oy Helsingin As Oy Hyvinkään As Oy Järvenpään As Oy Helsingin As Oy Espoon Uuno Tenderinlenkki 8 Korpisen katu 8 Niittykatu 15 Astreankatu 27 Pajalantie 23 F Karibiankuja 4 Kailaan katu 6 As Oy Helsingin As Oy Espoon As Oy Turun As Oy Helsingin As Oy Helsingin As Oy Helsingin As Oy Helsingin Keinulaudantie 2b Hippoksentie 31G Kirkkojärventie 10 C Bahamankatu 8 Vinsentinaukio 4 Keinulaudantie 2a Fregatti Dygdenin kuja 5 As Oy Helsingin As Oy Helsingin As Oy Espoon Luotsikatu 1a Niittykummuntie Höyrykatu 8 Q2/2020 Kojamo estimates, that in total 532 apartments will 12 B & 12 E be completed in 2019 0 units In addition, Kojamo has signed agreements with SRV and Hausia on the construction of 905 apartments in total. The first 42 apartments were completed in 2019 and 47 are under construction. The construction of rest of the apartments hasn’t started yet, and they will be completed during 2020 – 2023 Kojamo plc's Financial Statements Release 2019 10