TECHNOPOLIS GROUP Q3/2011

Transcription

1 TECHNOPOLIS GROUP Q3/2011

2 Technopolis Group Value-added real estate & services Focus on smart business centers Scalable for international growth Geographic focus on Nordic-Baltic customers employing roughly people 18 knowledge-intensive campuses operating as a chain m 2 of space in use and under construction

3 Highlights Demand remained strong in Q3 Occupancy, net sales and EBITDA on good level and Like-for-like rental growth 6,0 % % sales & earnings growth guidance solid Pulkovo full - pre-let rate now at 100 % Helsinki Ruoholahti picking up speed prospect base rising

4 Financial Occupancy Rate 100,0% 97,5% 95,0% 95,7% 95,8% 94,7% 95,3% 96,9% 97,4% 95,6% 98,0% 94,4% 95,3% 92,5% 90,0% 87,5% 85,0% GROUP FINLAND Oulu HMA Jyväskylä Kuopio Lappeenranta Q Q Q Q Q Tampere TALLINN ST. PETERS- BURG HMA = Helsinki Metropolitan Area

5 Key Figures Q3/2011 Net sales EUR 68,0 million (EUR 58,4 million in Q3/2010), growth 16,5 % EBITDA EUR 34,7 million (EUR 31,1 million), growth 11,5 % Financial occupancy rose in Finland to 95,8 % and Estonia to 94,4 %. Pulkovo at 95,3 % Equity ratio at 36,2 % (38,8 %) Net rental revenue of investment properties was 7,7 % (7,7 %) Earnings per share (diluted) rose to EUR 0,56 (EUR 0,24) Net cash flow per share was EUR 0,34 (EUR 0,36)

6 Development Projects Under Construction Type Area Floor-m 2 Investment EUR million Pre-let rate Sept 30, 2011 Prel-let rate Nov 1, 2011 Due for Completion Finn-Medi Campus Campus Tampere ,5 100% 100% 11/2011 Ruoholahti 2 Downtown Helsinki ,7 20% 44% 5/2012 Yliopistonrinne 2 Downtown Tampere ,5 39% 39% 9/2012 Innova 2 Downtown Jyväskylä ,8 61% 61% 2/2012 Hermia 15B Campus Tampere ,8 88% 88% 1/2012 Viestikatu 2B Campus Kuopio ,9 78% 78% 1/2012 Total ,2 Campus = University campus proximity

7 Sales & Earnings Net Sales, EUR million 68,0 58, EBITDA, EUR million 31,1 34,7 100% 80% 60% 40% 20% 0 0 Q3/2010 Q3/2011 8,0 % Net Rental Revenue % Q3/2010 Q3/2011 EBITDA % 7,70 % 0% 6,0 % 4,0 % 2,0 % 0,0 % Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Net Rental Revenue % = Total Rental Income from Investment Properties-Direct Costs Fair Market Value of Investment Properties

8 Equity & Debt Interest Coverage Ratio Loan to Value 6,0 5,0 4,0 3,0 2,0 1,0 0,0 5,3 3,8 Q3/2010 Q3/ ,0 % 40,0 % 20,0 % 0,0 % 56,2 % 59,2 % Q3/2010 Q3/2011 Equity Ratio % Average Interest Rate 40,0 3,0 % 38,0 36,0 34,0 32,0 30,0 38,8 36,2 Q3/2010 Q3/2011 2,0 % 1,0 % 0,0 % 2,85 % 2,18 % Q3/2010 Q3/2011

9 Technopolis Sites by Region 6 % 7% 3 % Oulu 24 % 9 % 10 % 27 % HMA Tampere Kuopio Jyväskylä 67 % 10 % 15 % 21 % Lappeenranta St. Petersburg Tallinn Oulu HMA Lappeenranta Q4/2005 Fair market value of investment properties EUR 249,3 million Q3/2011 Fair market value of investment properties and properties under construction EUR 863,2 million Net market yield of investment properties ,0 % Fair market value change impact on operating profit: EUR 25,7 million

10 Customer Breakdown 4% 14% 16% 11% 21% 18% Other industries Services Electronics Public Sector IT Services Software Life Science 16%

11 Largest Customers 2012 Customer Estimated Share of Group Net Sales Jan 1 31, 2012 Tieto 3,0 % University of Jyväskylä 2,7 % Nokia 2,7 % Renesas Mobile Europe 2,3 % Aalto University 1,8 %

12 Largest Customers Customer Aalto University ARK Therapeutics Aspocomp Oulu Digia Finland Exfo (Nethawk) Exigen Services Honeywell Kemira Kesko Logica Finland Customer Nokia PKC Group Ramboll Finland Renesas Mobile Europe Savonia Unversity of Applied Sciences TeliaSonera Finland Tieto University of Eastern Finland University of Jyväskylä VTT Technical Research Center of Finland - As of the 20 largest customers were renting 35 % of the company s space - No single company generated more than six per cent of the company s revenue

13 2011 Outlook Markets stable, uncertainty in financial markets Demand is stable guidance is solid Growth opportunities at home & abroad % net sales & EBITDA guidance is solid

14 Sales & EBITDA * EUR million 100 Net Sales EUR million 50 EBITDA Net Sales Net Sales guidance 11-13% EBITDA EBITDA guidance 11-13% * 2011 figures are the announced guidance for 2011

15 Strategic Targets Net sales and EBITDA growth 15 % on average per annum Net sales outside Finland over EUR 50 million by 2016 At least 6 % return on capital employed per annum Equity ratio over 35 % over the cycle Dividend payout % of net profit (excluding fair value changes)

16 Appendices: Additional Data

17 Technopolis Sites by Region Investment properties Sept 30, 2011 Fair value, EUR million Net Yield, % Floor-m 2 Finland Oulu 237,1 8, HMA 171,4 6, Kuopio 85,6 8, Tampere 84,5 7, Jyväskylä 74,0 7, Lappeenranta 29,6 8, Finland Finland, total 682,1 7, Russia St. Petersburg 47,7 10, Estonia (51% share) Tallinn 63,9 8, Group s investment properties total 793,7 8, Investment properties under construction* 69,6 several * Valued at fair value and recognized on the basis of rate of completion Net yields are market rates based on the average of two third-party appraisals

18 Estimated Office Market Q2/2011 Oulu 40 % HMA 1 % Jyväskylä 15 % Kuopio 18 % Lappeenranta 55 % Tampere 7 % 0% 20% 40% 60% 80% 100% Technopolis Other companies Source of estimated total office space in HMA & growth centers: Catella Property Market Trends 2011 Autumn)

19 Finn-Medi Campus, Tampere Started 5/2010 EUR 31,5 million cost projection including parking m 2 total space 100 % pre-lets Projected completion 11/2011

20 Yliopistonrinne 2, Tampere Started 4/2011 EUR 22,5 million cost including parking m 2 total space 39 % pre-lets Estimated completion 9/2012

21 Hermia 15B, Tampere Started 11/2010 EUR 10,8 million cost projection including parking m 2 total space 87,7 % pre-lets Projected completion 1/2012

22 Ruoholahti 2, Helsinki Started 11/2010 EUR 27,7 million cost projection including parking m 2 total space 44 % pre-lets Estimated completion 5/2012

23 Innova 2, Jyväskylä Started 1/2011 EUR 19,8 million cost projection including parking m 2 total space 61 % pre-lets Estimated completion 2/2012

24 Balance Sheet Total Assets & Liabilities, EUR million Fair Value of Investment Properties, EUR million ,9 747,9 Q3/2010 Q3/ ,3 793,7 Q3/2010 Q3/2011 Interest-bearing Liabilities, EUR million ,4 517,6 Q3/2010 Q3/2011

25 Equity Ratio 42,5 % 40,0 % 37,5 % 36,2% 35,0 % 32,5 % Q1/08 Q1/09 Q1/10 Q1/11

26 Fair Value of Investment Properties EUR million

27 Net Market Yields, % 11,0% 10,0% 9,0% 8,0% 7,0% 6,0% Group Finland Estonia / Tallinn Russia / St. Petersburg Net market yields given by two third-party appraisals

28 Lease Portfolio Structure 60 % 50 % 40 % 30 % 20 % 10 % 0 % 0-3 months 3-6 months 6-9 months 9-12 months >12 months Q3/2010 Q3/2011 At the end of the period under review, the open-ended leases that could be terminated and renegotiated during the following 12 months covered a total of 58,0 % (47,2 % Q3/2010) of the entire property portfolio. As of the end of the period the average lease period was 21 (19) months

29 Breakdown of Debts Lender Principal EUR million European Investment Bank (EIB) 122,8 Nordea 89,8 Sampo 69,8 Ilmarinen 47,9 Swedbank AS 40,2 Handelsbanken 36,8 OP-Pohjola Group and Osuuspankki 44,0 European Bank for Reconstruction and Development (EBRD) 31,6 Skandinaviska Enskilda Bank 27,5 Etelä-Karjalan Osuuspankki 3,5 NIB 2,2 Others 1,4 Grand Total 517,6 5% 7% Bank Loan Commercial papers 3% 85% Leasing Debt Cheque Limit + others

30 Maturity of Loans and Fixed-rate Loans EUR million 200,0 180,0 160,0 140,0 120,0 100,0 80,0 60,0 40,0 20,0 0,0 < 1 year 1-2 years 2-3 years 3-4 years 4-5 years over 5 years 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Repayments of interest bearing debt Maturity of credit facilities Fixed-rate loans (> 12 months) Floating-rate loans (0-12 months)

31 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Interest Rates and Loan-to-Value 6,0% 5,0% 4,0% 3,0% 2,0% 1,0% 0,0% EUR million % 90 % 80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0 % Technopolis average interest rate Euribor 3 months Interest bearing debt EUR million Loan to Value, %

32 Covenants and Bank Guarantees 5 % 8 % 19 % 51 % 18 % Loans without Covenants or Bank Guarantees Loans with Covenants (equity ratio) Loans Requiring Bank Guarantees with Covenants Loans with Covenants Loans Requiring Bank Guarantees without Covenants Total interest-bearing liabilities Q3/2011 EUR 517,6 million

33 Shareholders on Sept 30, 2011 Major Registered Shareholders % of Share Capital Number of Shares Varma Mutual Pension Insurance Company 22, Ilmarinen Mutual Pension Insurance Company 9, City of Oulu 4, City of Tampere 3, Kickoff and Jyrki Hallikainen 1, Laakkonen Mikko 1, The Finnish Cultural Foundation 1, ODIN Finland Fund 1, SITRA Finnish National Fund for Research and Development 1, City of Vantaa 0, Total 47, Cities Total 10, Nominee Registered 27, BNP Paribas Investment Partners indirect holding June 1, 2010 > 10, All Shares Total 100,

34 Ownership Structure Sept 30, 2011 % of Registered Shares and Votes 1,7 % 5,2 % 2,3 % 4,3 % 1,5 % 7,4 % 76,3 % shares, 2591 holders shares, 1479 holders shares, 214 holders shares, 141 holders shares, 13 holders shares, 22 holders Number of registered shareholders 4476 Ownership concentrated to largest shareholders shares, 16 holders ~72 % of holdings domestic and ~28 % international or nominee registered September 30, 2011 the market capitalization totaled EUR 201,6 million Technopolis is included in FTSE EPRA/NAREIT Global Real Estate Index