POHJOLA’S CORPORATE BOND SEMINAR

Technopolis is Different A Nordic Baltic Approach

• A focused real estate

company with service DNA

• We develop, own & operate

dynamic, smart campuses

• Profitable growth, geographic

diversification, chain thinking

• Multiuser facilities, shared,

bundled services

• Hands-on sales & account

management

2

3

Smart Business Environments

Net Sales, Q1-Q3/2013

Technopolis’ business idea is to combine premises and services into a carefully thought-out

offering that supports the growth and success of customers

0

10

20

30

40

50

60

70

80

90

Rental income Service income

EU

R m

illio

n

Service Portfolio

Sales and

Support

Team at

the

Property

Sales and

Support

Team at

the

Property

Property Portfolio

Broker(s)

Sales Manager(s)

Sales and

Support

Team at

the

Property

Property Property Property

4

A Sales Driven Approach

• Dedicated account managers for every campus located on site for fast response

• Incentives aim to maximize occupancy, revenue/sqm and customer satisfaction

• Low volatility in occupancy over the cycle shows that the concept works

Property Investor

Company

Property Portfolio

Company

Portfolio Manager

17%

19%

13% 8%

8% 2%

7%

7%

4%

15%

Oulu

HMA

Tampere

Kuopio

Jyväskylä

Lappeenranta

St. Petersburg

Tallinn

Vilnius

Oslo

22%

17%

17%

10%

10%

2% 8%

8% 6%

Oulu

HMA

Tampere

Kuopio

Jyväskylä

Lappeenranta

St. Petersburg

Tallinn

Vilnius

Market Segments, in Fair Value

5

After Investments, before Year-end 2013 Current Portfolio, Sept 30, 2013

“After investments before year-end 2013” calculation method:

Fair value September 30, 2013 + purchase price or estimated investment cost

A Diversified Customer Mix

14%

22%

3% 7% 8%

4%

7%

11%

2%

8%

14%

ProfessionalServicesInformation andCommunicationPublic Sector

Real Estate

Education

Food Services

Financial Services

Manufacturing

Healthcare

Wholesale andRetailOther

Top 20 Customers Customer Segments

As of 30 September 2013 the 20 largest customers were renting ca. 38% of the company’s space

7

Lease Portfolio

• Long-term leases boosted the average lease length and lease stock

• At the end of the period the average lease period was 43 (25) months

• Lease stock was EUR 347.2 (238.2) million

% of lease stock Lease length in months

0

5

10

15

20

25

30

35

40

45

50

0%

10%

20%

30%

40%

50%

60%

0-3 mo 3-6 mo 6-9 mo 9-12 mo Over 12 mo

1-9/2012 1-9/2013 LEASE LENGTH, MO

Strategic Financial Targets

Target 2014-2016 1-9/2013

Net sales +15% p.a. y/y 16.5%

EBITDA +15% p.a. y/y 17.1%

International net sales EUR 50 million by 2016 EUR 10.6 million

ROCE >6% p.a. 6.1%*

Equity Ratio >35% over the cycle 39.4%

Dividend policy avg. 1/3 of net income 50.6% of net income

8

* Calculated from EPRA EBIT, rolling 12 months

Strategy and Financials

1

1 Net Sales and EBITDA

growth rates according to

strategy plan. Equity ratio

assumption >35%

3

2 Interest rates are

assumed to increase

moderately

2

4 Net CAPEX

€180m/y in average.

Dividend pay-out ca.

33%

4

3 No FV-changes in investment

properties are assumed for the

forecast period

5 Solid financial

outstanding requires

capital injection

5

*) FV changes of investment properties may cause significant fluctuations to ROE-%

NOTE:

This is for illustrative

purposes only – not a

guidance!

Key Indicatorors 2012A 2013F 2014F 2015F 2016F

Turnover Growth, % 15,6 % 15,6 % 37,7 % 8,5 % 16,3 %

EBITDA Growth 17,3 % 15,1 % 40,3 % 9,4 % 17,6 %

EBITDA-% 51,9 % 51,7 % 52,7 % 53,1 % 53,7 %

Equity Ratio-% 36% 40% 40% 38% 40%

Gearing, % 156% 140% 142% 154% 142%

Loan to Value, % 60% 59% 59% 61% 60%

Avg. Int. rate for debts 1,8 % 2,1 % 2,3 % 2,3 % 2,3 %

ROE-% 7,4 % 3,9 % 7,9 % 8,2 % 8,1 %

Cash Flow (m€) 2012A 2013F 2014F 2015F 2016F

EBITDA 55,8 64,2 90,0 98,5 115,8

Net Financial Expenses 13,6 17,7 21,4 23,6 26,7

Taxes 7,5 6,1 13,1 14,2 17,0

Other adjustements 4,5 3,0 -5,2 -1,5 -3,2

Operating CF 39,2 43,3 50,3 59,2 68,9

Net Investments 116,6 494,5 94,0 168,4 267,7

CF After Investments -77,4 -451,3 -43,7 -109,2 -198,9

Chage in IB Liabilities 59,0 250,0 56,0 129,2 129,0

"Capital injection" 34,5 175,0 ,0 ,0 100,0

Dividends -12,7 -15,1 -13,5 -18,3 -19,9

Change in cash 3,3 -41,4 -1,2 1,7 10,2

Income statement (m€) 2012A 2013F 2014F 2015F 2016F

Turnover 107,3 124,0 170,8 185,3 215,5

EBITDA 55,8 64,2 90,0 98,5 115,8

FV Gains/Losses (Inv. Prop.) -5,7 -13,0 ,0 ,0 ,0

Depreciations 2,0 2,7 3,2 3,6 4,1

EBIT 48,0 48,5 86,9 94,8 111,7

Net Financial Expenses 13,6 17,7 21,4 23,6 26,7

Profit (loss) before taxes 34,4 30,7 65,4 71,2 85,0

Taxes 7,5 6,1 13,1 14,2 17,0

Net loss/profit 26,9 24,6 52,4 57,0 68,0

Balance Sheet (m€) 2012A 2013F 2014F 2015F 2016F

Investment properties 1014,1 1504,1 1593,1 1756,0 2017,7

Other Non-Current Assets 34,5 36,4 38,2 40,1 42,0

Current Assets 18,4 21,3 28,9 31,1 35,8

Cash 15,7 11,3 6,5 3,7 9,4

Total assets 1082,7 1573,0 1666,7 1830,8 2104,9

Equity 389,5 549,0 584,2 618,4 762,0

Hybrid bond 0 75,0 75,0 75,0 75,0

IB Liabilities 637,5 887,5 943,5 1072,7 1201,7

Non IB Liabilities 55,7 61,6 64,0 64,7 66,2

Total Equity and Liabilities 1082,7 1573,0 1666,7 1830,8 2104,9

Financials in Brief

14 15

22 21

25

30

34

7 7 9

11 13

15 13

48%

45% 40%

51% 51% 51%

38%

0%

10%

20%

30%

40%

50%

60%

0

5

10

15

20

25

30

35

40

2007 2008 2009 2010 2011 2012 2013

Direct result (m€) Dividends (m€) Dividends / Direct result-%

57

73 76

81

93

107

124

29 37 40 41

48 56

64

0

20

40

60

80

100

120

140

2007 2008 2009 2010 2011 2012 2013

Net Sales (m€) EBITDA (m€) Linear (Net Sales (m€)) Linear (EBITDA (m€))

89

143

66

134 150 116

494

0

100

200

300

400

500

600

2007 2008 2009 2010 2011 2012 2013

Gross Capex (m€) Linear (Gross Capex (m€))

39% 41% 37% 37% 36% 36% 40%

10%

7%

2%

6%

9%

5%

4%

0%

2%

4%

6%

8%

10%

12%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2007 2008 2009 2010 2011 2012 2013

Equity Ratio-% (left scale) ROI-% (right scale)

Linear (Equity Ratio-% (left scale)) Linear (ROI-% (right scale))

NOTE:

2013 figures are based on analysts’

consensus and are only illustrative

- not a guidance!

11

*) total value of the Vilnius deal including all phases

**) pre-let rate October 30, 2013

***) commissioning in phases

Investments in Last 12 Months

Area Name

Occupancy

rate, % sqm

EUR

million

Stabilized

yield, % Completion

Acquired

Tampere Tohloppi 100.0 32,000 23.3 11.8 10/2012

Oulu Peltola 73.6 37,600 31.7 11.2 02/2013

Vilnius Alfa & Beta 99.8 31,200 62.6 *) 9.6 05/2013

Completed

Tampere Yliopistonrinne 2 97.5 7,500 22.5 7.6 10/2012

Kuopio Viestikatu 7B&C 93.2 9,300 17.4 9.2 02/2013

Tallinn Löötsa 8C 95.4 6,200 8.3 9.1 03/2013

Under construction **)

Vilnius Gamma 85.0 11,000 62.6 *) 8.8 10/2013

Tallinn Löötsa 8A&B 81.5 16,300 24.3 9.1 10/13-02/14***)

St. Petersburg Pulkovo 2 32.7 18,700 42.0 12.6 10/2013

Jyväskylä Innova 4 91.0 8,900 23.7 8.1 10/2013

Signed investments

HMA Falcon 97.0 26,300 77.5 7.8 11-12/2013e

Oslo Fornebu 90.0 70,500 153.8 7.7 12/2013e

Total 275.5 487.1

Equity Issues

12

Excludes minor compensation share issues and option subscriptions

*) Hybrid bond issue

5,9 4,2 0,5

6,9 5,7 6,3

19,9

2,3 8,5 10,3

5,3 10,5 11,3

59,6

19,4

32,1

74,3*

98,6

0

10

20

30

40

50

60

70

80

90

100

Interest Rates

13

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

5,0

1.1

2.0

8

1.2

.09

1.4

.09

1.6

.09

1.8

.09

1.1

0.0

9

1.1

2.0

9

1.2

.10

1.4

.10

1.6

.10

1.8

.10

1.1

0.1

0

1.1

2.1

0

1.2

.11

1.4

.11

1.6

.11

1.8

.11

1.1

0.1

1

1.1

2.1

1

1.2

.12

1.4

.12

1.6

.12

1.8

.12

1.1

0.1

2

1.1

2.1

2

1.2

.13

1.4

.13

1.6

.13

1.8

.13

1.1

0.1

3

Technopolis average interest rate ECB refinance rate3-month Euribor 5-year swap10-year swap

Technopolis

average

interest rate

2.51%

(Q4/08 – Q3/13)

Sources: Bloomberg and Technopolis interim reports.

Method: Technopolis interest rates are quarterly average interest rates include

interest rate swaps. For Q4/13 the company has used the interest rates reported in

Q3/13

Breakdown of Debts (1/3)

• Total IBD EUR 658.3 million at Q3/2013

• Banks are main IBD funding source, but the loan portfolio is well-

diversified

• Annual amortization are well-diversified easing the refinancing

43

106

118

60

332

0

100

200

300

400

500

600

700

2013 2014 2015 2016 2017+

€m

Interest bearing liabilitiesEIB * 31%

SHB 12%

Nordea 11%

OP 9%

Danske 8%

Swedbank 8%

SEB 7%

Ilmarinen 6%

EBRD 5%

DNB 2%

Others 1%

Breakdown of Debts (2/3)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Floating-rate loans (0-12 months) Fixed-rate loans (> 12 months) Hedging ratio

Breakdown of Debts (3/3)

25%

26% 28%

3%

18%

Loans without Covenants or Bank Guarantees

Loans with Covenants (equity ratio)

Loans Requiring Bank Guarantees with Covenants

Loans Requiring Bank Guarantees without Covenants

Loans with Covenants

85,5%

5,5%

7,2% 1,7%

Bank Loan Leasing Debt

Commercial Paper Credit Lines + other

Loan Maturities

17

• The Group’s loan maturities on average is 8.1 (9.0) years

• Within 12 months EUR 130.2 million of loans are coming due

• EUR 116.7 (110.3) million untapped credit facilities