Technopolis Plc Roadshow with Nordea

Transcription

1 Technopolis Plc Roadshow with Nordea Zürich, Geneva and Paris June, 2017

2 Technopolis in Brief We are an international chain of multiuser business campuses established in 1982 in Oulu, Finland We believe in efficiencyenhancing solutions, not square meters We provide the best premises for companies to operate and succeed We operate in 6 countries and 12 cities in the Nordic-Baltic region We want our campuses to be growth communities where people and business transact together We re are passionate about superior service

3 Technopolis by the Numbers * Key Indicators MEUR 1,624.2 Fair Value** 93.4% FOCR >120 Buildings MEUR Net Sales 746,400 m 2 Rentable Area 20 Campuses Geographic Distribution of Fair Value, % 8% 8% 12% Helsinki 6% 5% Oulu 20% Tampere 7% 1,624.2 MEUR 7% 13% Division of Net Sales, % 14% Jyväskylä Kuopio Oslo Gothemburg Tallinn Vilnius St Petersburg 1,700 Customers 100% Service Attitude 50,000 People 13% MEUR Real Estate Services * 12/2016 ** Completed properties June, %

4 Technopolis Is a Growth Company Net Sales and EBITDA , MEUR CAGR : 16.1% 140 CAGR : 15.9% Net Sales EBITDA Balance Sheet , MEUR CAGR : 19.3% June,

5 Technopolis Timeline Founded in Oulu 1999 Listed in Helsinki stock exchange Becomes international ST. PETERSBURG TALLINN 2016 GOTHENBURG 80 s 90 s Growth in Oulu 2300 % st domestic acquisition outside Oulu 2013 VILNIUS OSLO June,

6 Ruoholahti Campus Helsinki, Finland CBD fringe Leasable area: 14,400 m 2 Yliopistorinne, Tampere, Finland CBD Leasable area: 28,000 m 2 Examples of Our Campuses Fornebu Campus, Oslo, Norway, CBD fringe Leasable area: 68,400 m 2 Ulemiste Campus, Tallinn, Estonia Airport Leasable area: 72,700 m 2

7 Reception Services Distribution of Service Income 2016, % 23% 23% 22.4 MEUR 31% Cleaning Conferences Reception Other* 23% Examples of Our Services * E.g. workplace design, ICT, coworking, other Restaurant Services Meeting rooms and video conferences

8 UMA Coworking Network Professional working environment for businesses of all sizes - an extension of office enhancing mobility, flexibility and networking UMA network in numbers: 12 UMA workspaces > 200 Customers > 500 Members > 70 NPS Flagship UMA in the heart of Helsinki, Finland Opened in May 2016 Expansion in May June,

9 Revised Strategy

10 The Primary Focus of the Revised Strategy Is Shareholder Value Creation Enhancement of the Technopolis service concept Accelerated organic expansion of current campuses Exploiting value-creating acquisition opportunities in the Nordic- Baltic region Expansion & increasing profitability of our service business Significant expansion of the UMA co-working network Execution of the strategy and investments without new equity issues June,

11 Enhancement of the Technopolis Concept Technopolis Core Competences Brand and reputation Flexible Workspace Solutions Customer Experience Management Scalable operating model Deeply embedded in local markets Effective Concept Deployment High occupancy Premium customer value and rental rates High customer satisfaction = Differentiating capability = Supporting capability June,

12 Accelerated Organic Expansion of Current Campuses We expect to spend EUR million on development by 2020, including new projects OULU KUOPIO TAMPERE OSLO (option) ESPOO HELSINKI VANTAA TALLINN GOTHENBURG = On-going expansion = Expansion in pipeline VILNIUS June,

13 Value-Creating Acquisition Opportunities in the Nordic-Baltic Region We expect to spend EUR million on acquisitions by 2020, but only if a compelling value creation opportunity presents itself New investment criteria framework set up for evaluating acquisition opportunities in different markets. Equity Ratio, % 45 41,5 42, ,5 39,3 38,0 Target >35% * Q1/2016 Q1/2017 * Share issue June,

14 EUR million Expansion & Increasing Profitability of the Service Business Target is to: Increase services like-for-like share of net sales above 20% on all campuses Increase EBITDA-margin of services to 20%+ in 2020 Total Income (MEUR) and Service Penetration (%) ,0% 13,5% 12,6% 16,9 20,3 22, ,9% ,4% 50 5,2 6, Q1/16 Q1/17 Rental income Service income Service penetration 16% 14% 12% 10% 8% 6% 4% 2% 0% June,

15 Significant Expansion of the UMA Concept EUR 30 million capex allocated over the next five years Expansion in both current Technopolis cities and new ones A dedicated team will be created for this activity June,

16 New Strategic Financial Targets Set EPS Growth of 8-10% p.a. (EPRA earnings basis) ROE > 8% p.a. (EPRA basis) NAV per Share Growth >5% p.a. (EPRA basis) Equity Ratio >35% June,

17 The Board s Perspective New dividend policy: Technopolis aims to pay out an increasing annual dividend of 40-60% of the EPRA-based direct result (EPRA earnings). Execution of the strategy and investments without new equity issues Management incentive schemes both long-term and short-term will be updated during the second half of 2017 to reflect the value creation targets June,

18 Drive Service Integrity Technopolis - A World-Class Workspace Provider

19 APPENDIX Group Financial Performance Q1/2017

20 Highlights Q (1/2) Financial performance was strong Net sales up 7.8% and EBITDA 7.7%* Earnings per share EUR 0.10 (0.09) Financial occupancy rate at 93.5% (92.5%) Service income growing steadily EBITDA margin for services 11.7% (7.9%), accounted for already 13.5% of total sales (12.6%). EBITDA margin for rental operations steady at 64.8% (64.8%). * On a constant currency basis, net sales up 5.8 % and EBITDA 5.2% June,

21 Highlights Q (2/2) Organic growth continued Office property under construction acquired in Vilnius in April Expansion projects in Helsinki and Tallinn progressing Financial position remained solid Fair value changes of investment properties EUR +6.0 million (EUR -5.9 million) Equity ratio 42.8% (38.0%) Loan to value 53.4% (56.7%) June,

22 Unit Occupancy Group Occupancy rate Q1/ % 100% 97,2% 99,3% 98,5% 100,0% 100,0% 95% 92,5% 93,5% 92,5% 91,9% 90% 85% 80% 75% 92,5% 85,2% 82,4% 95,8% 96,5% 92,7% 96,4% 98,5% 99,5% 99,7% 10 year average 94.3% 70% Q Q1-2017

23 Key Indicators, IFRS 1-3/ / Net sales, EUR million EBITDA, EUR million EBITDA %, Rental operations EBITDA %, Services Operating profit, EUR million Net Result, EUR million EPS, EUR CF from operations / share, EUR Equity Ratio, % Equity / share, EUR June,

24 Key Indicators, EPRA 1-3/ / Direct result, EUR million Direct result / share, EUR (diluted) NAV / share, EUR Net rental yield, % FOCR, % 93.5* 92.5* 93.4* * 3/2017: 16,000 m² under renovation; 3/2016: 15,250 m² under renovation June,

25 Group 1-3/ / Rentable space, m² * 751,550** 740,400** 746,400** Rent, /m²/mo. avg.* Financial occupancy rate, %* 93.5** 92.5** 93.4** Rental income, EUR million Net sales, EUR million EBITDA, EUR million Market yield requirement, avg., % * Fair value of investment properties, EUR million * 1, , ,624.2 * At the end of period. ** Under renovation Q1/2017: 16,000 m², 12/2016: 15,250 m² June,

26 Fair Value Changes in Q1 17 EUR million Market Yield Related Occupancy Assumption ** Modernization Other Changes * Projects in Progress Total Finland Baltic Rim Scandinavia Total * Other changes include changes in market rents, operative expenses and capital expenditures as well as inflation assumptions June,

27 Finland 1-3/ / Rentable space, m² * 483,700** 530,650** 486,500** Rent, /m²/mo. avg.* Financial occupancy rate, % * 91.3** 90.5** 90.7** Rental income, EUR million Net sales, EUR million EBITDA, EUR million Market yield requirement, avg., % * Fair value of investment properties, EUR million * * At the end of period. ** 3/2017: 10,350 m² under renovation; 3/2016: 11,800 m² under renovation June,

28 Baltic Rim 1-3/ / Rentable space, m² * 168,550** 148,100** 161,200** Rent, /m²/mo. avg. * Financial occupancy rate, % * 99.3** 99.1** 99.7** Rental income, EUR million Net sales, EUR million EBITDA, EUR million Market yield requirement, avg., % * Fair value of investment properties, EUR million * * At the end of period. ** 3/2017: 2,900 m 2 under renovation, 3/2016: 0 m 2 ; 12/2016: the new property in Vilnius had 8,600 m2 of space, which was not yet completed June,

29 Scandinavia 1-3/ / Rentable space, m² * 99,300** 64,200** 98,700** Rent, /m²/mo. avg. * Financial occupancy rate, % * 95.4** 95.8** 96.8** Rental income, EUR million Net sales, EUR million EBITDA, EUR million Market yield requirement, avg., % * Fair value of investment properties, EUR million * * At the end of period. ** 3/2017: 2,800 m 2 under renovation, 3/2016: 3,400 m2; 12/2016: 3,300 m 2 under renovation June,

30 Leases Lease stock, % of space Maturity in years 1-3/ / < > Open-end leases Av. lease term in months Lease stock, EUR million 389.1* * * Main reason for the decreasing contract value is the divestitures. The ten largest customers let approximately 21.9 % of rented space and accounted for 20.6% of rental income. One single largest customer accounted for 4.2% of rented space and one for 4.6% of rental income June,

31 Consolidated Income Statement EUR million 1-3/ / Rent income Service income Net sales total Other operating income Premises expenses Administration costs Other operating expenses EBITDA Change in fair value of investment properties Depreciation Operating profit / loss Unrealized exchange rate profit / loss Finance income and expenses Result before taxes Deferred taxes Current taxes June, Net result for the period

32 Financial Position, Assets ASSETS EUR million 1-3/ / NON-CURRENT ASSETS Intangible assets Tangible assets Completed investment properties 1, , ,624.2 Investment properties under construction Investments Deferred tax assets Non-current assets, TOTAL 1, , ,685.3 CURRENT ASSETS Assets, TOTAL 1, , , June,

33 Financial Position, Equity SHAREHOLDERS EQUITY EUR million 1-3/ / SHAREHOLDERS EQUITY Share capital Premium fund Equity related bond Other funds Translation difference Retained earnings Net profit for the period Parent company s shareholders interest Non-controlling interest Shareholders equity, TOTAL June,

34 Financial Position, Liabilities LIABILITIES EUR million 1-3/ / NON-CURRENT LIABILITIES Interest-bearing liabilities Non-interest-bearing liabilities Deferred tax liabilities Non-current liabilities, TOTAL CURRENT LIABILITIES Interest-bearing liabilities Non-interest-bearing liabilities Current liabilities, TOTAL LIABILITIES, TOTAL 1, ,072.3 SHAREHOLDERS EQUITY AND LIABILIIES 1, , , June,

35 Customer Satisfaction 4,4 4,2 4 4,13 4,21 4,16 4,11 3,8 3,6 3,4 3,73 3,54 3,77 3,6 3,84 3,84 3,68 3,72 3, Users Decision makers June,

36 Shareholders Not including nominee-registered shareholders 31 May, 2017 # of shares % of shares Varma Mutual Pension Insurance Comp. 38,172, Ilmarinen Mutual Pension Insurance Comp. 16,634, City of Oulu 3,917, Laakkonen Mikko 2,139, Technopolis Plc 1,899, The Finnish Cultural Foundation 1,782, Jenny and Antti Wihuri s Foundation 1,107, Jyrki Hallikainen and company 1,000, Odin Eiendom 980, Etola Erkki 865, largest shareholders, total 68,498, Foreign and nominee registered, total 53,777, Others, total 36,517, June, Total amount of shares 158,793,

37 Find us on: facebook.com/technopolis twitter.com/technopolisplc