TECHNOPOLIS PLC FINANCIAL STATEMENTS RELEASE February 14, 2014 at 8:00 a.m. Technopolis Group Statements Report for 2013 A Year of Strong Growth for Technopolis - Net sales rose to EUR 126.3 (107.3) million, up 17.7% - EBITDA rose to EUR 64.1 (55.8) million, up 15.0% - The financial occupancy rate was 93.6% (95.3%) - Earnings per share were EUR 0.30 (0.33), including changes in fair value and unrealized exchange rate losses - Direct result (EPRA) rose to EUR 40.5 (29.9) million, up 35.6% - Direct result per share (EPRA) was EUR 0.47 (0.38) - Net asset value per share (EPRA) was EUR 4.90 (5.12) - The Board of Directors proposes a dividend of EUR 0.10 per share The company estimates that its net sales for 2014 will grow by 27% - 32% and EBITDA by 35% 40% compared to the previous year. During 2013, the company increased its rentable area by acquiring 165,600 sqm of space, with another 77,900 sqm were under construction. Non-recurring expenses of EUR 2.3 million related to acquisitions and additional purchase prices of previous acquisitions reduced EBITDA. The net profit for the period was EUR 31.6 (27.0) million. Fair value changes of EUR -17.6 (-5.7) million and unrealized exchange rate losses of EUR -5.7 (0.6) million reduced operating earnings while a change in Finnish tax rates increased the net profit for the period by EUR 7.0 million. The EPRA-based (European Public Real Estate Association) direct result was EUR 40.5 (29.9) million, an increase of 35.6%. The change was mainly due to the increase in EBITDA. The EPRA-based direct result does not include unrealized exchange rate gains or losses or fair value changes.
| 10-12/ | 10-12/ | 1-12/ | 1-12/ | |
| Key Indicators | 2013 | 2012 | 2013 | 2012 |
| Net sales, EUR million | 34.7 | 28.7 | 126.3 | 107.3 |
| EBITDA, EUR million | 16.9 | 15.4 | 64.1 | 55.7 |
| Operating profit, EUR million | 11.6 | 15.2 | 43.9 | 48.0 |
| Net result for the period, EUR million | 14.7 | 8.7 | 28.8 | 25.8 |
| Earnings/share, undiluted, EUR | 0.16 | 0.11 | 0.30 | 0.33 |
| Earnings/share, diluted, EUR | 0.16 | 0.11 | 0.30 | 0.33 |
| Cash flow from operations/share, EUR | 0.53 | 0.50 | ||
| Equity ratio, % | 40.2 | 36.2 | ||
| Equity/share, EUR | 4.62 | 4.46 |
Earnings and balance sheet figures per share have been adjusted for the share issue.
| EPRA-based | 10-12/ | 10-12/ | 1-12/ | 1-12/ |
| Key Indicators | 2013 | 2012 | 2013 | 2012 |
| Direct result, EUR million | 11.2 | 10.0 | 40.5 | 29.9 |
| Direct result/share, diluted, EUR | 0.13 | 0.13 | 0.47 | 0.38 |
| Net asset value/share, EUR | 4.90 | 5.12 | ||
| Net rental yield, % | 7.6 | 7.8 | ||
| Financial occupancy rate, % | 93.6 | 95.3 |
Keith Silverang, CEO: “We have worked consistently to develop Technopolis into an international real estate company while targeting strong profitability and a healthy capital structure. We have not yet achieved our targeted scale, but 2014 took us much closer to our target, and we therefore have good reason to be satisfied with the company’s performance. In 2013 we invested roughly a half billion euros in new campuses at home and abroad. The spurt started in February when we acquired the Peltola campus in Oulu, followed by the Vilnius acquisition in May, and then Falcon in Espoo and finally Oslo. Each acquisition offered an attractive risk-return ratio and an excellent fit for the Technopolis concept and real estate portfolio. And every one of them bring opportunities to generate short and long term yield premiums by boosting occupancy, service revenues and raising the value of the campuses. For instance, we added more than 20% to Peltola’s occupancy in first 10 months after the acquisition. In Vilnius we completed and filled a new building while integrating the campus. We were able to partner with powerful Norwegian and Finnish entities in establishing our new Oslo joint venture. And we funded it all with a balance sheet strengthening 75 million euro hybrid bond issue and a 100 million euro rights issue, as well as debt arrangements with solid Nordic banking partners. In the mean time it was business as usual in operations, with every business unit working hard to boost occupancy, customer satisfaction and earnings. We completed challenging construction projects in Tallinn, Jyväskylä and Kuopio, and our Pulkovo 2 project in St. Petersburg proceeding as planned. Technopolis ended the year with 17.7% revenue growth, 15% EBITDA growth and financial occupancy increased from 92% in Q3 to 93.6% at the year-end. The company’s equity ratio is over 40% and total shareholder return was approximately 30% for the year. These figures speak for themselves. Technopolis will focus in 2014 on digesting acquisitions, managing integration effectively, building occupancy and improving profitability. Given the acquisitions at the end of 2013 the company’s net sales and EBITDA will grow robustly in 2014. International revenues are approaching our 2016 target of 50 million euros and there are still plenty of profitable growth opportunities in neighboring markets. The company still has a lot of potential. We will continue to work very hard to improve the scalability of our concept and to boost productivity and efficiency. We will continue to streamline our portfolio, which will mean not only new campuses but also the divestiture of properties and campuses that are no longer good fit with concept. Our goal is to be able to achieve excellent customer satisfaction, high occupancy and continuous profitable growth on every campus. We are cautiously optimistic about the future. We’re finally starting to get some help from gradually improving macroeconomic conditions. We have an authentically pan-Nordic-Baltic campus network. We have a great service concept that differentiates us from competitors. Technopolis has an excellent platform from which to continue its journey as a profitable international growth company.” Full version of Technopolis Plc’s financial statements 2013 attached. Additional information: Keith Silverang CEO tel. +358 40 566 7785 Distribution: NASDAQ OMX Helsinki, main news media, www.technopolis.fi About Technopolis: Technopolis provides the best addresses for companies to operate and succeed in five countries in the Nordic-Baltic region. The company develops, owns and operates a chain of 21 smart business parks that combine services with flexible and modern office space. The company’s core value is to continuously exceed customer expectations by providing outstanding solutions to 1,500 companies and their 32,000 employees in Finland, Norway, Estonia, Russia and Lithuania. The Technopolis Plc share (TPS1V) is listed on NASDAQ OMX Helsinki.
