Osuuskunta KPY in Brief May 2016
Osuuskunta KPY Mission, vision and values Vision The leading longterm owner and investor in Eastern Finland Osuuskunta KPY Increasing the shareholder value Profitability Patience Regionalism Mission Values 2
Osuuskunta KPY Group 31.12.2015 Osuuskunta KPY Investments in non-listed companies Property investments Financial investments ICT-services Enfo Oyj Infra services Voimatel Oy Health and care Vetrea Terveys Oy Property Technopolis Kuopio Oy Kiinteistöt Property Koy Siilinjärven Lentokapteeni Investments in securities KPY Sijoitus Oy
Osuuskunta KPY s growth story Transformation from a local teleoperator to a leading long term investor with well diversified business portfolio Voimatel Oy joined the Group Real estate KOy Siilinjärven Lentokapteeni completed Vetrea Terveys Oy acquired 2010 Hoivakymppi Oy acquired 2013 2013 DNA Oy s shares sold Technopolis Kuopio Oy Acquired (40%) 2013 2015 KPY acquired Tietosavo Oy (currently Enfo Oyj) KPY involved in establishing DNA Oy 2000 2007 2008 KPY was established 1883 4
Non-listed portfolio in brief Business area ICT services Financial process services Maintenance services of power distribution and data networks Industrial maintenance services Health and care services Geographical area Nordic Finland Central and Eastern Finland Net sales 141 m 82 m 37 m No of personnel 900 500 500 Management CEO Arto Herranen CEO Sami Huusko CEO Soile Lahti KPY ownership 85% 100% 100%
Property investments in brief Technopolis Kuopio Oy Koy Siilinjärven Lentokapteeni Asset class Office Office Rentable area 67.000 m2 4.200 m2 Location Kuopio Savilahti Kuopio Airport area Year completed KPY ownership 2000-15 2011 40 % 100 %
Net asset value 12/2015 59 20 44 117 25 72 Non-listed companies Property investments Financial investments Enfo Voimatel Vetrea Source: NAG value analysis 12/2015
Osuuskunta KPY Group key financials (MEUR) 2015 2014 Change % Net sales 319,7 323,6-1,2 % EBITDA 19,1 16,8 + 13,9 % Net profit 9,9-1,7 n.m 8
Strategic targets 2020 Will continue as a cooperative based long term owner and investor headquartered in Kuopio Seeks profitable growth principally in the current sectors and from existing subsidiaries Evaluates opportunities to expand its operations to a new sector Will invest only in well-established, profitable companies; will not target new businesses or start-ups Seeks a total annual return* of at least five (5) per cent in the long term (beyond business cycles) Will create wealth through its business activities, the interest paid and the increased value of the share. * Here, total annual return means the fluctuation of the net asset value of Osuuskunta KPY (calculated in market values) plus the interest paid to shareholders 9
Board of Directors and CEO Tarja Tikkanen Chair of the Board Mikko Isotalo Vice chair of the Board Tuija Keinonen Member of the Board Kuopion Seudun Hengityssäätiö, foundation CEO, Master of Laws CEO at Lujatalo Oy, Master of Science (Eng.), Master of Science (Econ.) CEO at Oy Medfiles Ltd Group, Doctor of Science (Pharmacy) Mikko Räsänen Member of the Board Anssi Lehikoinen Member of the Board Lauri Kerman CEO Ilmarinen Mutual Pension Insurance Company Head of Private Equity, Master of Science (Eng.) Rocsole Oy, Chair of the Board Professor of Practice, D.Ph, M.Sc (Eng.) Master of Science (Econ.) 10
Organisation of Osuuskunta KPY Representative council - 30 members - Chair: Pekka Kantanen Board of Directors - five members - Chair: Tarja Tikkanen Investment Team - Chair: Tarja Tikkanen - Lauri Kerman Personnel - Lauri Kerman, CEO - Miika Natunen, CFO - Leena Koistinen, assistant 11
Osuuskunta KPY as an investment Parent company Osuuskunta KPY is a cooperative owned by its members The number of shares outstanding is 5,548,102 One vote per one owner In total 21,000 owners - majority of the shares owned by local private individuals and households Shares can be traded; trading prices are quoted by Privanet Securities Ltd and others An independent valuation professional concludes a value analysis of KPY s net asset value twice a year. The analysis is available on KPY website (www.kpy.fi) The highest decision making body is the representative council consisting of 30 members 12
Euros Return% 5,0 4,5 4,0 3,5 Return on KPY share 2012-16 20,9 % 25% 20% 3,0 2,5 3,00 10,8 % 15% 2,0 1,5 1,0 0,5 1,00 7,5 % 6,6 % 1,40 1,50 1,60 1,70 1,40 6,1 % 10% 5% 0,0 2012 2013 2014 2015 2016 Interest Extra ordinary interest Return 0% The average annual interest return on market price has been 10.4%