SATO CORPORATION Financial statements information 30 Jan Erkka Valkila Financial statements information

Transcription

1 1 SATO CORPORATION Financial statements information 30 Jan Erkka Valkila Financial statements information

2 Contents 2 1. SATO in brief 2. The housing market 3. Strategy 4. SATO's year Operating environment Notes Financial statements information

3 1 3 SATO in brief Financial statements information

4 SATO in brief Financial statements information

5 2 5 The housing market Financial statements information

6 The housing market becoming differentiated 6 Permanent demand for rented homes in growth centres SATO concluded 8,100 new lease agreements in 2013 The supply of rental homes changes slowly The need for small rental apartments manyfold compared to supply In 2013, average increases in rents 3 to 4% Considerable area-specific differences Moderate increases in apartment prices, 1 to 2% Considerable area-specific differences Transaction numbers over 10% lower than in the previous year New players on the market Steady profits created by apartments are attractive New property-investing funds Financial statements information

7 More rented apartments needed 7 Urbanisation Immigration Growth in the number of people living alone Greying population Increasing differences in income and wealth Growth and development in St. Petersburg Financial statements information

8 Helsinki region in need of special measures 8 Each year, 2,000 apartments too few are completed in the Helsinki Metropolitan Area Management of the Metropolitan Area as a whole would boost the planning of land use, traffic and services Housing production costs must be decreased Relax building regulations Opportunity to innovate new solutions Faster urban planning process

9 Trend in housing rent and price levels 9

10 3 10 Strategy

11 Mission and vision 11 VISIO Asunnot ovat intohimomme asunnoissamme tyytyväistä asukasta 2020

12 Renewing strategy 12 Increasing ownership value Faster growth Good profitability Creating value for customers Focus on customer experience Inspiring company culture Trust, openness, initiative Corporate responsibility Decreasing our carbon footprint Prevention of grey economy % Change in reporting practice Change in the fair value of investment properties in the profit and loss account

13 Strategic goals Increasing ownership value Total return > 12% Increasing ownership value Housing property > 4 billion Creating value for customers Net Promoter Score NPS 40 Inspiring company culture Personnel satisfaction index > benchmark +10%

14 4 14 SATO s year 2013

15 Significant improvement in result 15 17% 70million 822million

16 Strong investment year 16 Investments 191million 1,250 rental apartments under construction

17 Good rental occupancy rate % 8%

18 Trend in the housing portfolio Housing portfolio Housing portfolio 2,3billion 24,000apartments

19 19 Regional distribution of the housing portfolio 31 Dec 2013 Housing portfolio 2,3billion Helsinki Metropolitan Area 80% Helsinki 1billion

20 SATO in St. Petersburg Investment properties 240completed Investments properties 220under construction Value of housing portfolio 112million Landmarks: A. Finland Station (Finlyandsky) B. Moscow Station (Moskovsky) C. State Hermitage Museum

21 Building land inventory ,000 floor sq.m. For building 3,700 apartments 70% in the Helsinki region

22 5 22 Operating environment

23 Trends increasing demand for rental apartments 23

24 24 NOTES

25 Taloudelliset tunnusluvut KEY INDICATORS FOR FINANCIAL TREND Net sales m Operating profit m Net financing expenses m Profit before taxes m Balance sheet total m 1,418 1,472 1,717 1,855 2,005 Return on equity, % (ROE) Return on investment, % (ROI) Equity ratio, % at fair values Gross investments in fixed assets m Net worth m at fair values KEY INDICATORS FOR SHARES Earnings per share Dividend per share * Dividend m * Total return (%) Adjusted number of shares, average 45,269,689 50,841,842 50,841,842 50,841,842 50,841,842 *) Dividend for 2013 based on Board's proposal; in addition, capital repayment of 0.42 per share proposed.

26 Effect of the change in reporting practice on SATO s income statement 26 Income statement 1 Jan-31 Dec 2013 IAS 40 adjustment Adjusted income statement 1 Jan-31 Dec 2013 NET SALES Profit on sales of investment properties Valuation of investment properties Share of results of associated companies Other operating income Materials and services Personnel expenses Depreciation, amortization and impairment charges Loss on sales of Investment properties Other operating expenses OPERATING PROFIT Financial income Financial expenses PROFIT BEFORE TAXES Income taxes PROFIT

27 Effect of the change in reporting practice on SATO s statement of financial position 27 ASSETS Non-current assets Statement of financial position 31 Dec 2013 IAS 40 adjustment Adjusted statement of financial position 31 Dec 2013 Investment properties 1, ,316.0 Property, plant and equipment Intangible assets Investments in associated companies Available-for-sale financial assets Receivables Deferred tax assets , ,357.6 Current assets Inventories Accounts receivable and other receivables Deferred tax assets Cash and cash equivalents TOTAL ASSETS 2, ,609.4 Statement of financial position 31 Dec 2013 IAS 40 adjustment Adjusted statement of financial position 31 Dec 2013 SHAREHOLDERS EQUITY AND LIABILITIES Equity attributable to Equity holders of the parent Share capital Fair value reserves Reserve fund Reserve for invested non-restricted equity Other funds Retained earnings Non-controlling interests TOTAL SHAREHOLDERS EQUITY LIABILITIES Non-current liabilities Deferred tax liabilities Provisions Other non-current liabilities Long term interest bearing liabilities 1, , , Current liabilities Accounts payable and other liabilities Deferred tax liabilities Short term interest bearing liabilities TOTAL LIABILITIES 1, ,786.6 TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES, TOTAL 2, ,609.4

28 28 Homes will always be needed. Additional information: President and CEO Erkka Valkila, tel Chief Financial Officer Esa Neuvonen, tel