Technopolis Plc Q3 Review
Technopolis Group OULU KUOPIO JYVÄSKYLÄ LAPPEENRANTA TAMPERE PIETARI CAPITAL CITY AREA Specializing in business environments for high-tech companies The only STP chain in Europe Strong growth and earnings A unique concept
The Technopolis Concept The Art of Innovation Ecosystems
The Technopolis STP Network 1.174 customers employing roughly 16.000 people 15 science and technology parks (STPs) operating as a chain 481.000 m 2 of space in use and under construction High-quality business environments from 10 m 2 to 40.000 m 2 Office space makes up more than 90 % of total
Breakdown of Properties by Region Tampere 7,8 % Lappeenranta 5,3 % Pietari 1,2 % Kuopio 11,6 % Oulu 38,0 % Jyväskylä 11,0 % Capital city area 25,2 % Fair Market Value of Investment Properties and Other Owned Properties 30.9.2008 MEUR 600
Largest Customers Customer ARK Therapeutics Aspocomp Oulu Oy Digia Oyj Fazer Amica Oy Honeywell Oy Inion Oy Jyväskylän yliopisto Kemira Oyj Logica Suomi Oy Metso Paper Oy Customer NetHawk Oy Nokia Asset Management Oy Oulun kaupunki PKC Group Oyj Pöyry konserni SWECO Industry Oy Teknillinen korkeakoulu TeliaSonera Finland Oyj TietoEnator Oyj VTT - As of 30.9.2008 the 20 largest customers were renting 46% of the company s space. - No single company generates more than 9,3% of the company s rental revenue.
Largest Investments Project City Year m 2 Investment MEUR Technopolis Kuopio Oy acquisition Kuopio 2008 47 800 67,3 Hermia 12 constructed Tampere 2008 5 092 9,0 City 1. vaihe constructed Lappeenranta 2008 3 149 6,5 Helsinki-Vantaa 5th stage under construction Vantaa 2008 5 107 15,0 Ruoholahti 1st stage under construction Helsinki 2008 6 600 20,0 Kontinkangas 3rd and 4th stage under construction Oulu 2008 6 993 12,5 Kontinkangas 5th stage under construction Oulu 2009 3 504 7,2 Hermia 15, 1st stage* under construction Tampere 2009 4 910 14,5* Yliopistonrinne 1st stage** under construction Tampere 2009 11 700 33,3** Ohjelmakaari 2nd stage under construction Jyväskylä 2009 3 780 7,7 Pietari, Pulkovo 1st stage under construction Russia 2010 19 000 50,0 Total 117 635 243,0 * Includes 300 parking spaces ** Includes land acquisitions totaling 5,6Meur
Business Services ICT services Reception Restaurant & catering Security Office cleaning Conference services Video conferencing Office services Moving and office planning Facility management
Business Development Services Born Global Growth Services MoneyTalks Growth Funding Services Discovery & Open Innovation Bodyguard Sparring & Mentoring Discovery Assessment Go/No Go Company founded Year 1 Year 2 Year 3
Business Development Services Start-Up Operations* 2004 2005 2006 2007 9/2008 Start-up assessments 234 232 309 344 325 New business development contracts 52 68 72 78 70 Class-A start-ups 9 19 36 52 55 Risk investments for clients (deals) Risk financing for clients (MEUR) 14 22 25 20 32 NA NA 12 15 35 Early stage Risk financing deals avg. (MEUR) NA Total # of start-ups in programs 129 149 183 197 250 NA 0.48 0.7 1.1 * 2004-2007 pro forma, Tampere and Kuopio from 2007
Q3 Highlights
Technopolis Ruoholahti Phase 1: 6 600 m2 Occupancy rate: Binding leases 94%
Oulu Kontinkangas C & D C Building 3104 m 2 Valmistuminen 8/2008 käyttöaste 100% D Building 3319 m 2 Valmistuminen 9/2008 käyttöaste 100%
Technopolis Kontinkangas C
Technopolis Kontinkangas D
Sales & Earnings Net Sales, Meur 60,0 50,0 40,0 30,0 20,0 10,0 0,0 +28,9 % 2005 2006 2007 Q3/07 Q3/08 Operating Margin, Meur 30,0 25,0 20,0 15,0 10,0 5,0 0,0 +30,2% 2005 2006 2007 Q3/07 Q3/08 Operating Profit, Meur 45,0 40,0 35,0 30,0 25,0 20,0 15,0 10,0 5,0 0,0-5,0 2005 2006 2007 Q3/07 Q3/08 Change in fair value of investment properties Operating profit without change in fair value
Balance Sheet Total assets & liabilities, Meur 700,0 600,0 500,0 400,0 300,0 200,0 100,0 0,0 +28,3 % 2005 2006 2007 Q3/07 Q3/08 Fair market value of investment properties, Meur 600,0 500,0 400,0 300,0 200,0 100,0 0,0 +24,1 % 2005 2006 2007 Q3/07 Q3/08 Equity ratio -% 50 40 30 20 10 0 2005 2006 2007 Q3/07 Q3/08
Occupancy & Net Rental Yield Financial occupancy, % Net rental yield, % 97,0 96,5 96,0 95,5 95,0 94,5 94,0 93,5 93,0 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 7,80 7,70 7,60 7,50 7,40 7,30 7,20 7,10 7,00 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08
Relative Share Price Performance 1.10.2007-17.10.2008 EUR/share 7,00 6,00 5,00 4,00 3,00 2,00 1,00 0,00 1.10.2007 1.1.2008 1.4.2008 1.7.2008 1.10.2008 Technopolis Citycon Sponda
Domestic shareholders Major Finnish Shareholders City of Oulu OP-Pohjola Group City of Tampere Varma Mutual Pension Insurance Company Ilmarinen Mutual Pension Insurance Company Finnish Cultural Foundation Odin Fortvaltning AS SITRA, the Finnish Innovation Fund City of Vantaa City of Espoo Total % of Share Capital 5,3 5,3 3,4 1,7 1,3 1,2 1,2 1,2 1,1 0,9 22,6 Number of Shares 3 062 925 3 016 202 1 956 649 974 740 737 725 712 693 707 200 666 036 600 000 538 548 12 972 718 Foreign and nominee reigistered 58,7 33 638 410
Year-end Prospects Demand expected to remain satisfactory Technopolis occupancies, revenues and earnings expected to remain satisfactory despite financial crisis Group net sales and operating margin forecast raised to 22-26 % growth for 2008
Technopolis Vision 2012 Operating in all leading Finnish innovation hot spots, plus Russia and 2-3 other international markets Most attractive and competitive STP chain in Europe 15% average growth per annum Continue robust, controlled growth
Thank You! Keith.silverang@technopolis.fi +358 40 566 7787