TECHNOPOLIS The Art of Innovation Ecosystems OULU JYVÄSKYLÄ KUOPIO LAPPEENRANTA TAMPERE ST. PETERSBURG GREATER HELSINKI Only STP Chain in Europe Hi-tech customer service specialist Fast growth, strong earnings Solid assets, equity ratio Best Nordic Nasdaq OMX real estate services performer 1
The Technopolis Concept Discovery Start-Up Growth Maturity Anchor 2
A Chain of the Hottest Hot Spots 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 445,000 m 2 facilities in use and under development Efficient innovation ecosystem management is key driver Covers all clusters from ICT to life sciences and KIBS 3
Breakdown of Properties by Region Lappeenranta 5,3 % Tampere 7,8 % St. Petersburg 1,2 % Kuopio 11,6 % Oulu 38,0 % Jyväskylä 11,0 % Greater Helsinki 25,2 % 4
Business Services ICT services Reception Restaurant & catering Security Office cleaning Conference services Video conferencing Office services Moving and office planning Facility management 5
Business Development Services Discovery & Open Innovation Bodyguard Sparring & Mentoring MoneyTalks Growth Funding Services Born Global Growth Services Discovery Assessmen t Go/No Go Company founded Year 1 Year 2 Year 3 6
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) Early stage Risk financing deals avg. (MEUR) Total # of start-ups in programs 14 22 25 20 32 NA NA 12 15 35 NA NA 0.48 0.7 1.1 129 149 183 197 250 * 2004-2007 pro forma, Tampere and Kuopio from 2007 7
Technopolis Ventures A-Clients have raised 48 million in private capital in 2008 Type Euros (m) # ** Avg Size % of ( m) Total Angels 3.0 9 0.3 6% Finnish VCs 15.0 23 0.7 32% Int'l VCs 27.4 11 2.5 57% Others 2.3 2 1.1 5% Total 47.616 45 1.058 100% Includes 45 investments into 31 companies Data based on publicly available information & conversations with company management and investors. 8
Largest Customers Customer ARK Therapeutics Aspocomp Oulu Oy Digia Plc Fazer Amica Oy Honeywell Oy Inion Oy University of Jyväskylä Kemira Group Logica Suomi Oy Metso Paper Oy Customer NetHawk Oy Nokia Asset Management Oy City of Oulu PKC Group Oyj Pöyry PLC SWECO Industry Oy Helsinki University of Technology TeliaSonera Finland Oyj TietoEnator Corporation 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. 9
Largest Investments Site Area Year m 2 MEUR Technopolis Kuopio Oy acquired Kuopio 2008 47 800 67,3 Hermia 12 complete Tampere 2008 5 092 9,0 Vapauden aukio 1 complete Lappeenranta 2008 3 149 6,5 Helsinki-Vantaa 5 in progress Vantaa 2008 5 107 15,0 Ruoholahti 1 complete Helsinki 2008 6 600 20,0 Kontinkangas 3 & 4 complete Oulu 2008 6 993 12,5 Kontinkangas 5. phase in progress Oulu 2009 3 504 7,2 Hermia 15 1. phase * in progress Tampere 2009 4 910 14,5* Yliopistonrinne 1. phase** in progress Tampere 2009 11 700 33,3** Ohjelmakaari 2. phase in progress Jyväskylä 2009 3 780 7,7 Pietari, Pulkovo 1. phase in progress Venäjä 2010 19 000 50,0 Total 117 635 243,0 * Includes 300 parking spaces ** Includes land acquisitions totaling 5,6Meur 10
TECHNOPOLIS ST.PETERSBURG City Center TECHNOPOLIS PULKOVO TECHNOLOGY PARK Good transport connection to city centre 10 min to closest metro TECHNOPOLIS INNOVATION CENTER of St. PETERSBURG 10 min to airport 5 min to Ring road 11
Sales & Earnings 60,0 50,0 40,0 30,0 20,0 10,0 0,0 Net Sales, Meur +28,9 % Operating Margin, Meur +30,2% 2005 2006 2007 Q3/07 Q3/08 30,0 25,0 20,0 15,0 10,0 5,0 0,0 2005 2006 2007 Q3/07 Q3/08 45,0 40,0 35,0 30,0 25,0 20,0 15,0 10,0 5,0 0,0-5,0 Operating Profit, Meur 2005 2006 2007 Q3/07 Q3/08 Change in fair value of investment properties Operating profit without change in fair value 12
Balance Sheet 700,0 600,0 500,0 400,0 300,0 200,0 100,0 0,0 Total assets & liabilities, Meur +28,3 % 2005 2006 2007 Q3/07 Q3/08 50 40 30 20 10 Equity ratio -% 600,0 500,0 400,0 300,0 200,0 100,0 0,0 Fair market values, Meur +24,1 % 2005 2006 2007 Q3/07 Q3/08 0 2005 2006 2007 Q3/07 Q3/08 13
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 14
The Power of International Ownership 9 8 7 6 2006: Foreign Share 51.2% 2007: Foreign Share 55.7% 5 4 2004: Foreign Share 9.8% 2005: Foreign Share 40.4% 3 2 2003: Foreign Share 0.2% 1 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 15
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 T echnopolis Citycon Sponda 16
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 17
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 18
Technopolis Road to Global Growth The Challenges: The threat of recession Group-wide integration The need for scale Technopolis international growth International owners & customers Our Response: Back to basics efficiency & productivity Fully integrated operations Standardization, integration, localization Rules, tools & people A new kind of Technopolis culture 19
Thank You! Keith.silverang@technopolis.fi 20